Document:

ncmi-ex10238_487.htm

 

Exhibit 10.23.8

NATIONAL CINEMEDIA, INC.

2007 EQUITY INCENTIVE PLAN

2016 RESTRICTED STOCK AGREEMENT

Performance Period: Fiscal Year 2016 – Fiscal Year 2018

The Compensation Committee of the Board of Directors of National CineMedia, Inc., a Delaware corporation (the “Company”), granted shares of Restricted Stock to be issued under the National CineMedia, Inc. 2007 Equity Incentive Plan, as amended (the “Plan”), as well as the possible right to be issued additional shares of Stock (the “Additional Shares”), to the Grantee named below.  This Restricted Stock Agreement (the “Agreement”) evidences the terms of the Company’s grant of Restricted Stock, and the possible issuance of Additional Shares, to Grantee. Any capitalized term in this Agreement shall have the meaning assigned to it in this Agreement or in the Plan, as applicable.

A.  NOTICE OF GRANT

Name of Grantee:

Number of shares of Restricted Stock (calculated at 100% of the Free Cash Flow Target):

Grant Date:  

Vesting Schedule of Restricted Stock:  Except as provided otherwise in this Agreement or the Plan (including but not limited to Section 14.2 of the Plan which provides for accelerated vesting upon certain terminations in connection with a Change of Control), and subject to Grantee’s continuous Service as provided herein, the Restricted Stock shall vest and the restrictions set forth in Section 2 of this Agreement shall lapse in accordance with the following provisions.  The Restricted Stock shall vest if, and only to the extent that, the Company achieves specified cumulative “Free Cash Flow” (defined as OIBDA, subject to certain adjustments as set forth in the Plan (including, without limitation, a pre-determined adjustment for any acquisition completed during the Measuring Period), minus Capital) (“Free Cash Flow”) targets (the “Free Cash Flow Target”) at the end of the three-year period ending on the last day of the Company’s 2018 fiscal year (the “Measuring Period”).  The extent to which the Company achieves the Free Cash Flow Target shall be determined by the Compensation Committee.  The actual Free Cash Flow Target shall be established by the Committee within the time period required by Section 162(m) of the Code and the Committee shall certify in writing prior to the vesting date specified below the extent to which the Free Cash Flow Target for the Measuring Period was met.  If the Company achieves 100% of the Free Cash Flow Target at the end of the Measuring Period, Grantee shall vest in 100% of the number of shares of Restricted Stock set forth above.  If the actual Free Cash Flow is less than 80% of the Free Cash Flow Target at the end of the Measuring Period, none of the shares of Restricted Stock shall vest.  If the actual Free Cash Flow at the end of the Measuring Period is 80% of the Free Cash Flow Target, Grantee shall vest in 25% of the number of shares of Restricted Stock set forth above.  If the actual Free Cash Flow at the end of the Measuring Period is between 80% and 100% of the Free Cash Flow Target, Grantee shall vest in between 25% and 100% of the number of shares of Restricted Stock set forth above by interpolating the percentage of Free Cash Flow actually achieved as it relates to the difference between the number of shares of Restricted Stock that vest at 100% of Free Cash Flow Target and the number of shares of Restricted Stock that vest at 80% of Free Cash Flow Target.  By way of example, if the actual cumulative Free Cash Flow achieved is at 95% of Free Cash Flow Target, Grantee would vest in 90% of the number of shares of Restricted Stock set forth above.

Vesting Schedule of Additional Shares of Stock:  Except as provided otherwise in this Agreement or the Plan (including but not limited to Section 14.2 of the Plan which provides for accelerated vesting upon certain terminations in connection with a Change of Control), and subject to Grantee’s continuous Service as provided herein, the Additional Shares of Stock shall vest and the restrictions set forth in Section 2 of this Agreement shall lapse in accordance with the following provisions.  If the actual cumulative Free Cash Flow achieved at the end of the Measuring Period is in excess of 100% of Free Cash Flow Target, Grantee (if otherwise vested) shall vest in a number of shares of Additional Shares as calculated below.  If the actual cumulative Free Cash Flow achieved at the end of the Measuring Period is 110% or more of Free Cash Flow Target, Grantee (if otherwise vested) shall vest in a number of shares of Additional Shares equal to 50% of the number of shares of Restricted 

 

 

Stock set forth above.  If the actual cumulative Free Cash Flow achieved at the end of the Measuring Period is below 110% of Free Cash Flow Target but in excess of 100% of Free Cash Flow Target, Grantee (if otherwise vested) shall receive a number of shares of Additional Shares determined by interpolating between the number of shares of Restricted Stock that vest upon 100% of Free Cash Flow Target and 150% of that number of shares of Stock.  By way of example, if the actual cumulative Free Cash Flow at the end of the Measuring Period is 105% of Free Cash Flow Target, Grantee (if otherwise vested) would receive a number of shares of Additional Shares equal to 25% of the number of shares of Restricted Stock set forth above.  Grantee shall have no rights as a stockholder of the Company until Grantee becomes the holder of record of any shares of Additional Shares.  If Grantee terminates Service prior to the Vesting Date, Grantee shall be entitled to receive a portion of the Additional Shares otherwise issuable, under the same circumstances and determined in the same manner as the number of shares of Retained Shares which vest upon the Vesting Date as set forth below in Section 3 of the Restricted Stock Agreement.

Time of Vesting of Restricted Stock and Additional Shares:  If the actual cumulative Free Cash Flow at the end of the Measuring Period is at least 80% of Free Cash Flow Target, the number of shares of Restricted Stock shall vest as described above on the 60th day (the “Vesting Date”) following the last day of the Measuring Period.  If the actual cumulative Free Cash Flow exceeds 100% of Free Cash Flow Target at the end of the Measuring Period, the Additional Shares shall vest as described above.  The Additional Shares shall be issued to Grantee on or as soon as practicable after the Vesting Date and in all events no later than March 15, 2019.

B.  RESTRICTED STOCK AGREEMENT

1.Grant and Issuance of Stock.  Subject to the terms and conditions of this Agreement and the Plan, the Company granted to Grantee, the number of shares of Restricted Stock and Additional Shares set forth in the Notice of Grant, effective on the Grant Date set forth in the Notice of Grant, and subject to the terms and conditions of the Plan, which is incorporated herein by reference.  In the event of a conflict between the terms and conditions of the Plan and this Agreement, the terms and conditions of the Plan shall govern.  

2.Forfeiture Restrictions.  Grantee shall not sell, transfer, assign, pledge or otherwise encumber or dispose of, by operation of law or otherwise, the Restricted Stock or Additional Shares for the period commencing on the Grant Date and ending on the Vesting Date (the “Restriction Period”).  Upon vesting on the Vesting Date, the restrictions in this Section 2 shall lapse and Grantee may transfer the shares of Stock in accordance with applicable securities law requirements and the Company’s policies and procedures.  

3.Vesting; Lapse of Restrictions.  Except as provided otherwise in this Agreement and the Plan (including but not limited to Section 14.2 of the Plan which provides for accelerated vesting upon certain terminations in connection with a Change of Control), the Restricted Stock and Additional Shares shall vest as set forth on the Vesting Schedule in the Notice of Grant.  Grantee shall forfeit the unvested portion of the Restricted Stock and Additional Shares.  If Grantee terminates Service prior to the Vesting Date on account of death, Disability, or termination by the Company other than for Cause, Grantee shall be entitled to retain a percentage of the Restricted Stock (the “Retained Shares”) equal to the ratio that the number of days of Service of Grantee during the Vesting Period bears to the total number of days in the Vesting Period.  The Retained Shares of Restricted Stock shall vest in accordance with the vesting schedule set forth in the Notice of Grant as though the Retained Shares were the number of shares of Restricted Stock set forth in the Notice of Grant and the remaining shares of Restricted Stock shall be forfeited upon Grantee’s termination of Service.  If Grantee terminates Service prior to the Vesting Date as a result of termination by the Company for Cause or voluntary termination by Grantee, all shares of Restricted Stock and Additional Shares shall be forfeited upon Grantee’s termination of Service and Grantee shall have no right to receive any Additional Shares of Stock.

4.Leave of Absence.  For purposes of the Restricted Stock and Additional Shares, Service does not terminate when Grantee goes on a bona fide employee leave of absence that was approved by the Company or an Affiliate in writing, if the terms of the leave provide for continued Service crediting, or when continued Service crediting is required by applicable law.  However, Service will be treated as terminating 90 days after Grantee went on the approved leave, unless Grantee’s right to return to active work is guaranteed by law or by a contract.  Service terminates in any event when the approved leave ends unless Grantee immediately returns to active Service.  The Committee determines, in its sole discretion, which leaves of absence count for this purpose, and when Service terminates for all purposes under the Plan.

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5.Dividends.  During the Restriction Period, regular and special or extraordinary cash dividends declared and paid with respect to shares of Restricted Stock and Additional Shares shall be retained by the Company and shall be subject to the same vesting requirements as specified in the Notice of Grant above.  Any retained dividends to which Grantee becomes entitled upon vesting on the Vesting Date following the end of the Measuring Period shall be paid by Grantee on the Vesting Date, but in no event later than March 15, 2019. 

6.Purchase and Delivery of Shares.  Grantee shall be required, to the extent required by applicable law, to purchase the shares of Restricted Stock and Additional Shares from the Company at the aggregate par value of the shares of Stock represented by such Restricted Stock and Additional Shares (the “Purchase Price”).  The Purchase Price shall be payable in cash or in cash equivalents acceptable to the Company.  Upon the expiration or termination of the Restriction Period, the restrictions applicable to Restricted Stock and Additional Shares shall lapse, and, a certificate for such shares of Stock shall be delivered, free of all such restrictions, to Grantee or Grantee’s beneficiary or estate, as the case may be.  Notwithstanding anything in this Agreement to the contrary, the Company may elect to satisfy any requirement for the delivery of stock certificates hereunder through the use of book-entry.

7.Enforcement of Restrictions.  All certificates representing shares of Stock shall include applicable restrictive legends regarding restrictions on transfer and compliance with securities law requirements, as determined by the Committee.   

8.Tax Withholding.  The Company or any Affiliate shall have the right to deduct from payments of any kind otherwise due to Grantee, any federal, state, local or foreign taxes of any kind required by law to be withheld upon the issuance, vesting or payment of any shares of Stock or dividends.  By accepting this Agreement, Grantee hereby authorizes the Company to withhold from fully vested shares of Stock otherwise deliverable to Grantee a number of whole shares of Stock necessary to satisfy the Company’s required tax withholding with respect to the Award and to deduct any remaining amount due from any payments due to Grantee.  

Notwithstanding the foregoing, in lieu of share withholding, Grantee may irrevocably elect to satisfy the required tax withholding obligation by delivering: (a) a cashiers check or other check acceptable to the Company; or (b) whole shares of Stock already owned by Grantee, in the amount determined by the Company to satisfy the required tax withholding obligation.  Any election to deliver a check or shares shall be irrevocable, made in writing, signed by Grantee and delivered to the General Counsel of the Company at least 30 days before the scheduled vesting date, and shall be subject to any restrictions or limitations that the Company, in its sole discretion, deems appropriate.

Any shares delivered or withheld shall have an aggregate Fair Market Value not in excess of the minimum statutory total tax withholding obligation.  The Fair Market Value of the shares used to satisfy the withholding obligation shall be determined by the Company as of the date that the amount of tax to be withheld is to be determined.  Shares used to satisfy any tax withholding obligation must be vested and cannot be subject to any repurchase, forfeiture, or other similar requirements.  

9.Effect of Prohibited Transfer.  If any transfer of shares is made or attempted to be made contrary to the terms of this Agreement, the Company shall have the right to acquire for its own account, without the payment of any consideration, such shares from the owner thereof or his transferee, at any time before or after such prohibited transfer.  In addition to any other legal or equitable remedies it may have, the Company may enforce its rights to specific performance to the extent permitted by law and may exercise such other equitable remedies then available.  The Company may refuse for any purpose to recognize any transferee who receives shares contrary to the provisions of this Agreement as a stockholder of the Company and may retain and/or recover all dividends on such shares that were paid or payable subsequent to the date on which the prohibited transfer was made or attempted.

10.Investment Representations.  The Committee may require Grantee (or Grantee’s estate or heirs) to represent and warrant in writing that the individual is acquiring the shares of Stock for investment and without any present intention to sell or distribute such shares and to make such other representations as are deemed necessary or appropriate by the Company and its counsel.

11.Continued Service.  Neither the grant of shares of Restricted Stock and Additional Shares nor this Agreement gives Grantee the right to continue Service with the Company or its Affiliates in any capacity.  The Company and its Affiliates reserve the right to terminate Grantee’s Service at any time and for any reason not prohibited by law.

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12.Governing Law.  The validity and construction of this Agreement and the Plan shall be construed in accordance with and governed by the laws of the State of Delaware other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan and this Agreement to the substantive laws of any other jurisdiction. 

13.Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the Company and Grantee and their respective heirs, executors, administrators, legal representatives, successors and assigns.

14.Tax Treatment; Section 83(b); Section 409A.  Grantee may incur tax liability as a result of the vesting of shares of Restricted Stock and Additional Shares, the payment of dividends or the disposition of shares of Stock.  Grantee should consult his or her own tax adviser for tax advice.

Grantee hereby acknowledges that Grantee has been informed that he or she may file with the Internal Revenue Service, within 30 days of the Grant Date, an irrevocable election pursuant to Section 83(b) of the Code to be taxed as of the Grant Date on the amount by which the Fair Market Value of the  Stock on that date exceeds the Purchase Price.  If Grantee chooses to file an election under Section 83(b) of the Code, Grantee hereby agrees to promptly deliver a copy of any such election to the Chief Financial Officer of the Company (or his designee).  

Grantee acknowledges that the Committee, in the exercise of its sole discretion and without Grantee’s consent, may amend or modify this Agreement in any manner and delay the payment of any amounts payable pursuant to this Agreement to the minimum extent necessary to satisfy the requirements of Section 409A of the Code.  The Company will provide Grantee with notice of any such amendment or modification.

15.Amendment.  The terms and conditions set forth in this Agreement may only be amended by the written consent of the Company and Grantee, except to the extent set forth in Section 14 regarding Section 409A of the Code and any other provision set forth in the Plan.

16.2007 Equity Incentive Plan.  The shares of Stock and payment of dividends granted hereunder shall be subject to such additional terms and conditions as may be imposed under the terms of the Plan, a copy of which has been provided to Grantee.  A copy of the Prospectus for the 2007 Equity Incentive Plan shall also be provided to Grantee.

 

	
NATIONAL CINEMEDIA, INC.

	
 
	
 

	
By:
	
/s/ Andrew J. England

	
 
	
Andrew J. England

	
 
	
Chief Executive Officer

	
 
	
 

	
Date:
	
 

 

4Exhibit 10.8 

 

SURGE COMPONENTS, INC.

 

2015 EQUITY INCENTIVE PLAN

 

1.                 
Purpose. The purpose of the Surge Components, Inc. 2015 Equity Incentive Plan is to provide a means through which
the Company and its Affiliates may attract and retain key personnel and to provide a means whereby directors, officers, managers,
employees, consultants and advisors of the Company and its Affiliates can acquire and maintain an equity interest in the Company,
or be paid incentive compensation, which may (but need not) be measured by reference to the value of Common Shares, thereby strengthening
their commitment to the welfare of the Company and its Affiliates and aligning their interests with those of the Company’s
stockholders.

2.                 
Definitions. The following definitions shall be applicable throughout this Plan:

(a)               
“Affiliate” means (i) any person or entity that directly or indirectly controls, is controlled
by or is under common control with the Company and/or (ii) to the extent provided by the Committee, any person or entity in
which the Company has a significant interest as determined by the Committee in its discretion. The term “control” (including,
with correlative meaning, the terms “controlled by” and “under common control with”), as applied to any
person or entity, means the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of such person or entity, whether through the ownership of voting or other securities, by contract or otherwise.

(b)              
“Award” means, individually or collectively, any Incentive Stock Option, Nonqualified Stock Option,
Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Stock Bonus Award and Performance Compensation Award granted
under this Plan.

(c)               
“Award Agreement” means an agreement made and delivered in accordance with Section 15(a) of this
Agreement evidencing the grant of an Award hereunder.

(d)              
“Board” means the Board of Directors of the Company.

(e)               
“Business Combination” has the meaning given such term in the definition of “Change in Control.”

(f)               
“Business Day” means any day other than a Saturday, a Sunday or a day on which banking institutions
in New York City are authorized or obligated by federal law or executive order to be closed.

(g)              
“Cause” means, in the case of a particular Award, unless the applicable Award Agreement
states otherwise, (i) the Company or an Affiliate having “cause” to terminate a Participant’s employment
or service, as defined in any employment or consulting agreement or similar document or policy between the Participant and the
Company or an Affiliate in effect at the time of such termination or (ii) in the absence of any such employment or consulting
agreement, document or policy (or the absence of any definition of “Cause” contained therein), (A) a continuing material
breach or material default (including, without limitation, any material dereliction of duty) by Participant of any agreement between
the Participant and the Company, except for any such breach or default which is caused by the physical disability of the Participant
(as determined by a neutral physician), or a continuing failure by the Participant to follow the direction of a duly authorized
representative of the Company; (B) gross negligence, willful misfeasance or breach of fiduciary duty by the Participant;
(C) the commission by the Participant of an act of fraud, embezzlement or any felony or other crime of dishonesty in connection
with the Participant’s duties; or (D) conviction of the Participant of
a felony or any other crime that would materially and adversely affect: (i) the business
reputation of the Company or (ii) the performance of the Participant’s
duties to the Company. Any determination of whether Cause exists shall be made by the Committee in its sole discretion.

    	 		 

    	 

    

 

(h)              
“Change in Control” shall, in the case of a particular Award, unless the applicable Award Agreement
states otherwise or contains a different definition of “Change in Control,” be deemed to occur upon:

(i)An acquisition (whether
directly from the Company or otherwise) of any voting securities of the Company (the “Voting Securities”)
by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Securities and Exchange Act
of 1934, as amended (the “Exchange Act”)), immediately after which such Person has “Beneficial
Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than fifty percent (50%) of the
combined voting power of the Company’s then outstanding Voting Securities.

 

(ii)The individuals
who constitute the members of the Board cease, by reason of a financing, merger, combination, acquisition, takeover or other non-ordinary
course transaction affecting the Company, to constitute at least fifty-one percent (51%) of the members of the Board; or

 

(iii)Approval by the
Board and, if required, stockholders of the Company of, or execution by the Company of any definitive agreement with respect to,
or the consummation of (it being understood that the mere execution of a term sheet, memorandum of understanding or other non-binding
document shall not constitute a Change of Control):

 

(A)A merger, consolidation
or reorganization involving the Company, where either or both of the events described in clauses (i) or (ii) above would be the
result;

 

(B)A liquidation or dissolution
of or appointment of a receiver, rehabilitator, conservator or similar person for, or the filing by a third party of an involuntary
bankruptcy against, the Company; provided, however, that to the extent necessary to comply with Section 409A of the Code, the occurrence
of an event described in this subsection (B) shall not trigger the settlement or payment of any Award granted under this Plan that
constitutes non-exempt “deferred compensation” for purposes of Section 409A of the Code; or

 

(C)An agreement for the
sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a subsidiary
of the Company).

 

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(i)                
“Code” means the Internal Revenue Code of 1986, as amended, and any successor thereto. References
in this Plan to any section of the Code shall be deemed to include any regulations or other interpretative guidance under such
section, and any amendments or successor provisions to such section, regulations or guidance.

(j)                
“Committee” means a committee of at least two people as the Board may appoint to administer this
Plan or, if no such committee has been appointed by the Board, the Board. Unless altered by an action of the Board, the Committee
shall be the Compensation Committee of the Board.

(k)              
“Common Shares” means the common stock, par value $0.001 per share, of the Company (and any stock
or other securities into which such common shares may be converted or into which they may be exchanged).

(l)                
“Company” means Surge Components, Inc., a Nevada corporation, together with its successors and
assigns.

(m)            
“Date of Grant” means the date on which the granting of an Award is authorized, or such other
date as may be specified in such authorization.

(n)              
“Disability” means a “permanent and total” disability incurred by a Participant while
in the employ of the Company or an Affiliate. For this purpose, a permanent and total disability shall mean that the Participant
is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that
can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.

(o)              
“Effective Date” means the date as of which this Plan is adopted by the Board, subject to Section
3 of this Plan.

(p)              
“Eligible Director” means a person who is (i) a “non-employee director” within
the meaning of Rule 16b-3 under the Exchange Act, and (ii) an “outside director” within the meaning of Section 162(m)
of the Code.

(q)              
“Eligible Person” means any (i) individual employed by the Company or an Affiliate; provided,
however, that no such employee covered by a collective bargaining agreement shall be an Eligible Person unless and to
the extent that such eligibility is set forth in such collective bargaining agreement or in an agreement or instrument relating
thereto; (ii) director of the Company or an Affiliate; or (iii) consultant or advisor to the Company or an Affiliate,
provided that if the Securities Act applies such persons must be eligible to be offered securities registrable on Form S-8 under
the Securities Act.

(r)                
“Exchange Act” has the meaning given such term in the definition of “Change in Control,”
and any reference in this Plan to any section of (or rule promulgated under) the Exchange Act shall be deemed to include any rules,
regulations or other interpretative guidance under such section or rule, and any amendments or successor provisions to such section,
rules, regulations or guidance.

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(s)               
“Exercise Price” has the meaning given such term in Section 7(b) of this Plan.

(t)                
“Fair Market Value”, unless otherwise provided by the Committee in accordance with all applicable
laws, rules regulations and standards, means, on a given date, (i) if the Stock is listed on a securities exchange, the closing
sales price on the principal such exchange on such date or, in the absence of reported sales on such date, the closing sales price
on the immediately preceding date on which sales were reported, or (ii) if the Stock is not listed on a securities exchange, the
mean between the bid and offered prices as quoted by the applicable interdealer quotation system for such date, provided that if
the Stock is not quoted on an interdealer quotation system or it is determined that the fair market value is not properly reflected
by such quotations, Fair Market Value will be determined by such other method as the Committee determines in good faith to be reasonable
and in compliance with Section 409A of the Code.

(u)              
“Immediate Family Members” shall have the meaning set forth in Section 15(b) of this Plan.

(v)              
“Incentive Stock Option” means an Option that is designated by the Committee as an incentive stock
option as described in Section 422 of the Code and otherwise meets the requirements set forth in this Plan.

(w)            
“Indemnifiable Person” shall have the meaning set forth in Section 4(e) of this Plan.

(x)              
“Negative Discretion” shall mean the discretion authorized by this Plan to be applied by the Committee
to eliminate or reduce the size of a Performance Compensation Award consistent with Section 162(m) of the Code.

(y)              
“Nonqualified Stock Option” means an Option that is not designated by the Committee as an Incentive
Stock Option.

(z)               
“Option” means an Award granted under Section 7 of this Plan.

(aa)           
“Option Period” has the meaning given such term in Section 7(c) of this Plan.

(bb)          
“Outstanding Company Common Shares” has the meaning given such term in the definition of “Change
in Control.”

(cc)           
“Outstanding Company Voting Securities” has the meaning given such term in the definition of “Change
in Control.”

(dd)         
“Participant” means an Eligible Person who has been selected by the Committee to participate in
this Plan and to receive an Award pursuant to Section 6 of this Plan.

(ee)           
“Performance Compensation Award” shall mean any Award designated by the Committee as a Performance
Compensation Award pursuant to Section 11 of this Plan.

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(ff)            
“Performance Criteria” shall mean the criterion or criteria that the Committee shall select for
purposes of establishing the Performance Goal(s) for a Performance Period with respect to any Performance Compensation Award under
this Plan.

(gg)          
“Performance Formula” shall mean, for a Performance Period, the one or more objective formulae
applied against the relevant Performance Goal to determine, with regard to the Performance Compensation Award of a particular Participant,
whether all, some portion but less than all, or none of the Performance Compensation Award has been earned for the Performance
Period.

(hh)          
“Performance Goals” shall mean, for a Performance Period, the one or more goals established by
the Committee for the Performance Period based upon the Performance Criteria.

(ii)              
“Performance Period” shall mean the one or more periods of time, as the Committee may select,
over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant’s
right to, and the payment of, a Performance Compensation Award.

(jj)              
“Permitted Transferee” shall have the meaning set forth in Section 15(b) of this Plan.

(kk)          
“Person” has the meaning given such term in the definition of “Change in Control.”

(ll)              
“Plan” means this Surge Components, Inc. 2015 Equity Incentive Plan, as amended from time to time.

(mm)      
“Retirement” means the fulfillment of each of the following conditions: (i) the Participant is
good standing with the Company as determined by the Committee; (ii) (A) the voluntary termination by a Participant of such Participant’s
employment or service to the Company and (B) that at the time of such voluntary termination, the sum of: (1) the Participant’s
age (calculated to the nearest month, with any resulting fraction of a year being calculated as the number of months in the year
divided by 12) and (2) the Participant’s years of employment or service with the Company (calculated to the nearest month,
with any resulting fraction of a year being calculated as the number of months in the year divided by 12) equals at least 62 (provided
that, in any case, the foregoing shall only be applicable if, at the time of Retirement, the Participant shall be at least 55 years
of age and shall have been employed by or served with the Company for no less than five years).

(nn)          
“Restricted Period” means the period of time determined by the Committee during which an Award
is subject to restrictions or, as applicable, the period of time within which performance is measured for purposes of determining
whether an Award has been earned.

(oo)          
“Restricted Stock Unit” means an unfunded and unsecured promise to deliver Common Shares, cash,
other securities or other property, subject to certain restrictions (including, without limitation, a requirement that the Participant
remain continuously employed or provide continuous services for a specified period of time), granted under Section 9 of this
Plan.

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(pp)          
“Restricted Stock” means Common Shares, subject to certain specified restrictions (including,
without limitation, a requirement that the Participant remain continuously employed or provide continuous services for a specified
period of time), granted under Section 9 of this Plan.

(qq)          
“SAR Period” has the meaning given such term in Section 8(c) of this Plan.

(rr)             
“Securities Act” means the Securities Act of 1933, as amended, and any successor thereto. Reference
in this Plan to any section of the Securities Act shall be deemed to include any rules, regulations or other official interpretative
guidance under such section, and any amendments or successor provisions to such section, rules, regulations or guidance.

(ss)            
“Stock Appreciation Right” or “SAR” means an Award granted under Section 8
of this Plan which meets all of the requirements of Section 1.409A-1(b)(5)(i)(B) of the Treasury Regulations.

(tt)             
“Stock Bonus Award” means an Award granted under Section 10 of this Plan.

(uu)          
“Strike Price” means, except as otherwise provided by the Committee in the case of Substitute
Awards, (i) in the case of a SAR granted in tandem with an Option, the Exercise Price of the related Option, or (ii) in
the case of a SAR granted independent of an Option, the Fair Market Value on the Date of Grant.

(vv)          
“Subsidiary” means, with respect to any specified Person:

(i)                
any corporation, association or other business entity of which more than 50% of the total voting power of shares of Outstanding
Company Voting Securities (without regard to the occurrence of any contingency and after giving effect to any voting agreement
or stockholders’ agreement that effectively transfers voting power) is at the time owned or controlled, directly or indirectly,
by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and

(ii)              
any partnership or limited liability company (or any comparable foreign entity) (a) the sole general partner or managing
member (or functional equivalent thereof) or the managing general partner of which is such Person or Subsidiary of such Person
or (b) the only general partners or managing members (or functional equivalents thereof) of which are that Person or one or
more Subsidiaries of that Person (or any combination thereof).

(ww)      
“Substitute Award” has the meaning given such term in Section 5(e).

(xx)          
“Treasury Regulations” means any regulations, whether proposed, temporary or final, promulgated
by the U.S. Department of Treasury under the Code, and any successor provisions.

3.                 
Effective Date; Duration. The Plan shall be effective as of the Effective Date, subject to approval by the stockholders
of the Company, which approval shall be within twelve (12) months after the date this Plan is adopted by the Board. The expiration
date of this Plan, on and after which date no Awards may be granted hereunder, shall be the tenth anniversary of the Effective
Date; provided, however, that such expiration shall not affect Awards then outstanding, and the terms and
conditions of this Plan shall continue to apply to such Awards.

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4.                 
Administration.

(a)               
The Committee shall administer this Plan. To the extent required to comply with the provisions of Rule 16b-3 promulgated
under the Exchange Act (if the Board is not acting as the Committee under this Plan) or necessary to obtain the exception for performance-based
compensation under Section 162(m) of the Code, as applicable, it is intended that each member of the Committee shall, at the
time he takes any action with respect to an Award under this Plan, be an Eligible Director. However, the fact that a Committee
member shall fail to qualify as an Eligible Director shall not invalidate any Award granted by the Committee that is otherwise
validly granted under this Plan. The acts of a majority of the members present at any meeting at which a quorum is present or acts
approved in writing by a majority of the Committee shall be deemed the acts of the Committee. Whether a quorum is present shall
be determined based on the Committee’s charter as approved by the Board.

(b)              
Subject to the provisions of this Plan and applicable law, the Committee shall have the sole and plenary authority, in addition
to other express powers and authorizations conferred on the Committee by this Plan and its charter, to: (i) designate Participants;
(ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the number of Common Shares
to be covered by, or with respect to which payments, rights, or other matters are to be calculated in connection with, Awards;
(iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances
Awards may be settled or exercised in cash, Common Shares, other securities, other Awards or other property, or canceled, forfeited,
or suspended and the method or methods by which Awards may be settled, exercised, canceled, forfeited, or suspended; (vi) determine
whether, to what extent, and under what circumstances the delivery of cash, Common Shares, other securities, other Awards or other
property and other amounts payable with respect to an Award; (vii) interpret, administer, reconcile any inconsistency in,
settle any controversy regarding, correct any defect in and/or complete any omission in this Plan and any instrument or agreement
relating to, or Award granted under, this Plan; (viii) establish, amend, suspend, or waive any rules and regulations and appoint
such agents as the Committee shall deem appropriate for the proper administration of this Plan; (ix) accelerate the vesting
or exercisability of, payment for or lapse of restrictions on, Awards; and (x) make any other determination and take any other
action that the Committee deems necessary or desirable for the administration of this Plan.

(c)               
The Committee may, by resolution, expressly delegate to a special committee consisting of one or more directors who may
but need not be officers of the Company the authority, within specified parameters as to the number and types of Awards, to (i)
designate officers and/or employees of the Company or any of its Affiliates to be recipients of Awards under the Plan, and (ii)
to determine the number of such Awards to be received by any such Participants; provided, however, that such delegation of duties
and responsibilities may not be made with respect to grants of Awards to persons (i) subject to Section 16 of the Exchange
Act or (ii) who are, or who are reasonably expected to be, “covered employees” for purposes of Section 162(m)
of the Code. The acts of such delegates shall be treated as acts of the Board, and such delegates shall report regularly to the
Board and the Committee regarding the delegated duties and responsibilities and any Awards granted.

    	 	7	 

    	 

    

 

(d)              
Unless otherwise expressly provided in this Plan, all designations, determinations, interpretations, and other decisions
under or with respect to this Plan or any Award or any documents evidencing Awards granted pursuant to this Plan shall be within
the sole discretion of the Committee, may be made at any time and shall be final, conclusive and binding upon all persons or entities,
including, without limitation, the Company, any Affiliate, any Participant, any holder or beneficiary of any Award, and any stockholder
of the Company.

(e)               
No member of the Board, the Committee, delegate of the Committee or any employee, advisor or agent of the Company or the
Board or the Committee (each such person, an “Indemnifiable Person”) shall be liable for any action taken
or omitted to be taken or any determination made in good faith with respect to this Plan or any Award hereunder. Each Indemnifiable
Person shall be indemnified and held harmless by the Company against and from (and the Company shall pay or reimburse on demand
for) any loss, cost, liability, or expense (including attorneys’ fees) that may be imposed upon or incurred by such Indemnifiable
Person in connection with or resulting from any action, suit or proceeding to which such Indemnifiable Person may be a party or
in which such Indemnifiable Person may be involved by reason of any action taken or omitted to be taken under this Plan or any
Award Agreement and against and from any and all amounts paid by such Indemnifiable Person with the Company’s approval, in
settlement thereof, or paid by such Indemnifiable Person in satisfaction of any judgment in any such action, suit or proceeding
against such Indemnifiable Person, provided, that the Company shall have the right, at its own expense, to assume and defend
any such action, suit or proceeding and once the Company gives notice of its intent to assume the defense, the Company shall have
sole control over such defense with counsel of the Company’s choice. The foregoing right of indemnification shall not be
available to an Indemnifiable Person to the extent that a final judgment or other final adjudication (in either case not subject
to further appeal) binding upon such Indemnifiable Person determines that the acts or omissions of such Indemnifiable Person giving
rise to the indemnification claim resulted from such Indemnifiable Person’s bad faith, fraud or willful criminal act or omission
or that such right of indemnification is otherwise prohibited by law or by the Company’s Certificate of Incorporation or
Bylaws. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such Indemnifiable
Persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or
any other power that the Company may have to indemnify such Indemnifiable Persons or hold them harmless.

(f)               
Notwithstanding anything to the contrary contained in this Plan, the Board may, in its sole discretion, at any time and
from time to time, grant Awards and administer this Plan with respect to such Awards. In any such case, the Board shall have all
the authority granted to the Committee under this Plan.

5.                 
Grant of Awards; Shares Subject to this Plan; Limitations.

(a)               
The Committee may, from time to time, grant Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units,
Stock Bonus Awards and/or Performance Compensation Awards to one or more Eligible Persons.

    	 	8	 

    	 

    

 

(b)              
Subject to Section 12 of this Plan, the Committee is authorized to deliver under this Plan an aggregate of One Million Five
Hundred Thousand (1,500,000) Common Shares.

(c)               
Common Shares underlying Awards under this Plan that are forfeited, cancelled, expire unexercised, or are settled in cash
shall be available again for Awards under this Plan at the same ratio at which they were previously granted. Notwithstanding the
foregoing, the following Common Shares shall not be available again for Awards under the Plan: (i) shares tendered or held back
upon the exercise of an Option or settlement of an Award to cover the Exercise Price of an Award; (ii) shares that are used or
withheld to satisfy tax obligations of the Participant; and (iii) shares subject to a Stock Appreciation Right that are not issued
in connection with the stock settlement of the SAR upon exercise thereof.

(d)              
Common Shares delivered by the Company in settlement of Awards may be authorized and unissued shares, shares held in the
treasury of the Company, shares purchased on the open market or by private purchase, or a combination of the foregoing.

(e)               
Subject to compliance with Section 1.409A-3(f) of the Treasury Regulations, Awards may, in the sole discretion of the Committee,
be granted under this Plan in assumption of, or in substitution for, outstanding awards previously granted by an entity acquired
by the Company or with which the Company combines (“Substitute Awards”). The number of Common Shares
underlying any Substitute Awards shall be counted against the aggregate number of Common Shares available for Awards under this
Plan.

(f)               
Notwithstanding any provision in the Plan to the contrary (but subject to adjustment as provided in Section 12), the Committee
shall not grant to any one Eligible Person in any one calendar year Awards (i) for more than 5,000,000 Common Shares in the aggregate
or (ii) payable in cash in an amount exceeding $2,000,000 in the aggregate.

6.                 
Eligibility. Participation shall be limited to Eligible Persons who have entered into an Award Agreement or who have
received written notification from the Committee, or from a person designated by the Committee, that they have been selected to
participate in this Plan.

7.                 
Options.

(a)               
Generally. Each Option granted under this Plan shall be evidenced by an Award Agreement (whether in paper
or electronic medium (including email or the posting on a web site maintained by the Company or a third party under contract with
the Company)). Each Option so granted shall be subject to the conditions set forth in this Section 7, and to such other conditions
not inconsistent with this Plan as may be reflected in the applicable Award Agreement. All Options granted under this Plan shall
be Nonqualified Stock Options unless the applicable Award Agreement expressly states that the Option is intended to be an Incentive
Stock Option. Notwithstanding any designation of an Option, to the extent that the aggregate Fair Market Value of Common Shares
with respect to which Options designated as Incentive Stock Options are exercisable for the first time by any Participant during
any calendar year (under all plans of the Company or any Subsidiary) exceeds $100,000, such excess Options shall be treated as
Nonqualified Stock Options. Incentive Stock Options shall be granted only to Eligible Persons who are employees of the Company
and its Affiliates, and no Incentive Stock Option shall be granted to any Eligible Person who is ineligible to receive an Incentive
Stock Option under the Code. No Option shall be treated as an Incentive Stock Option unless this Plan has been approved by the
stockholders of the Company in a manner intended to comply with the stockholder approval requirements of Section 422(b)(1)
of the Code, provided that any Option intended to be an Incentive Stock Option shall not fail to be effective solely on account
of a failure to obtain such approval, but rather such Option shall be treated as a Nonqualified Stock Option unless and until such
approval is obtained. In the case of an Incentive Stock Option, the terms and conditions of such grant shall be subject to and
comply with such rules as may be prescribed by Section 422 of the Code. If for any reason an Option intended to be an Incentive
Stock Option (or any portion thereof) shall not qualify as an Incentive Stock Option, then, to the extent of such nonqualification,
such Option or portion thereof shall be regarded as a Nonqualified Stock Option appropriately granted under this Plan.

    	 	9	 

    	 

    

 

(b)              
Exercise Price. The exercise price (“Exercise Price”) per Common Share for each
Option shall not be less than 100% of the Fair Market Value of such share determined as of the Date of Grant; provided, however,
that in the case of an Incentive Stock Option granted to an employee who, at the time of the grant of such Option, owns shares
representing more than 10% of the voting power of all classes of shares of the Company or any Affiliate, the Exercise Price per
share shall not be less than 110% of the Fair Market Value per share on the Date of Grant; and, provided further, that notwithstanding
any provision herein to the contrary, the Exercise Price shall not be less than the par value per Common Share.

(c)               
Vesting and Expiration. Options shall vest and become exercisable in such manner and on such date or dates
determined by the Committee and as set forth in the applicable Award Agreement, and shall expire after such period, not to exceed
ten (10) years from the Date of Grant, as may be determined by the Committee (the “Option Period”); provided,
however, that the Option Period shall not exceed five (5) years from the Date of Grant in the case of an Incentive Stock
Option granted to a Participant who on the Date of Grant owns shares representing more than 10% of the voting power of all classes
of shares of the Company or any Affiliate; and, provided, further, that notwithstanding any vesting dates
set by the Committee, the Committee may, in its sole discretion, accelerate the exercisability of any Option, which acceleration
shall not affect the terms and conditions of such Option other than with respect to exercisability. Unless otherwise provided by
the Committee in an Award Agreement:

(i)                
an Option shall vest and become exercisable with respect to 100% of the Common Shares subject to such Option on the third
(3rd) anniversary of the Date of Grant;

(ii)              
the unvested portion of an Option shall expire upon termination of employment or service of the Participant granted the
Option, and the vested portion of such Option shall remain exercisable for:

(A)            
one year following termination of employment or service by reason of such Participant’s death or Disability (with
the determination of Disability to be made by the Committee on a case by case basis), but not later than the expiration of the
Option Period;

(B)             
for directors, officers and employees of the Company only, for the remainder of the Option Period following termination
of employment or service by reason of such Participant’s Retirement (it being understood that any Incentive Stock Option
held by the Participant shall be treated as a Nonqualified Stock Option if exercise is not undertaken within 90 days of the date
of Retirement);

    	 	10	 

    	 

    

(C)             
90 calendar days following termination of employment or service for any reason other than such Participant’s death,
Disability or Retirement, and other than such Participant’s termination of employment or service for Cause, but not later
than the expiration of the Option Period; and

(iii)            
both the unvested and the vested portion of an Option shall immediately expire upon the termination of the Participant’s
employment or service by the Company for Cause, unless the Company, in its discretion, determines otherwise.

(d)              
Method of Exercise and Form of Payment. No Common Shares shall be delivered pursuant to any exercise of an
Option until payment in full of the Exercise Price therefor is received by the Company and the Participant has paid to the Company
an amount equal to any federal, state, local and non-U.S. income and employment taxes required to be withheld. Options that have
become exercisable may be exercised by delivery of written or electronic notice of exercise to the Company in accordance with the
terms of the Award Agreement accompanied by payment of the Exercise Price. The Exercise Price shall be payable (i) in cash,
check (subject to collection), cash equivalent and/or vested Common Shares valued at the Fair Market Value at the time the Option
is exercised (including, pursuant to procedures approved by the Committee, by means of attestation of ownership of a sufficient
number of Common Shares in lieu of actual delivery of such shares to the Company); provided, however, that such Common
Shares are not subject to any pledge or other security interest and; (ii) by such other method as the Committee may permit
in accordance with applicable law, in its sole discretion, including without limitation: (A) in other property having a fair
market value (as determined by the Committee in its discretion) on the date of exercise equal to the Exercise Price or (B) if
there is a public market for the Common Shares at such time, by means of a broker-assisted “cashless exercise” pursuant
to which the Company is delivered a copy of irrevocable instructions to a stockbroker to sell the Common Shares otherwise deliverable
upon the exercise of the Option and to deliver promptly to the Company an amount equal to the Exercise Price or (C) by a “net
exercise” method whereby the Company withholds from the delivery of the Common Shares for which the Option was exercised
that number of Common Shares having a Fair Market Value equal to the aggregate Exercise Price for the Common Shares for which the
Option was exercised. Any fractional Common Shares shall be settled in cash.

(e)               
Notification upon Disqualifying Disposition of an Incentive Stock Option. Each Participant awarded an Incentive
Stock Option under this Plan shall notify the Company in writing immediately after the date he makes a disqualifying disposition
of any Common Shares acquired pursuant to the exercise of such Incentive Stock Option. A disqualifying disposition is any disposition
(including, without limitation, any sale) of such Common Shares before the later of (A) two years after the Date of Grant
of the Incentive Stock Option or (B) one year after the date of exercise of the Incentive Stock Option. The Company may, if
determined by the Committee and in accordance with procedures established by the Committee, retain possession of any Common Shares
acquired pursuant to the exercise of an Incentive Stock Option as agent for the applicable Participant until the end of the period
described in the preceding sentence.

    	 	11	 

    	 

    

 

(f)               
Compliance with Laws, etc. Notwithstanding the foregoing, in no event shall a Participant be permitted to
exercise an Option in a manner that the Committee determines would violate the Sarbanes-Oxley Act of 2002, if applicable, or any
other applicable law or the applicable rules and regulations of the Securities and Exchange Commission or the applicable rules
and regulations of any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or
traded.

8.                 
Stock Appreciation Rights.

(a)               
Generally. Each SAR granted under this Plan shall be evidenced by an Award Agreement (whether in paper or
electronic medium (including email or the posting on a web site maintained by the Company or a third party under contract with
the Company)). Each SAR so granted shall be subject to the conditions set forth in this Section 8, and to such other conditions
not inconsistent with this Plan as may be reflected in the applicable Award Agreement. Any Option granted under this Plan may include
tandem SARs. The Committee also may award SARs to Eligible Persons independent of any Option.

(b)              
Exercise Price. The Exercise Price per Common Share for each Option shall not be less than 100% of the Fair
Market Value of such share determined as of the Date of Grant.

(c)               
Vesting and Expiration. A SAR granted in connection with an Option shall become exercisable and shall expire
according to the same vesting schedule and expiration provisions as the corresponding Option. A SAR granted independent of an Option
shall vest and become exercisable and shall expire in such manner and on such date or dates determined by the Committee and shall
expire after such period, not to exceed ten years, as may be determined by the Committee (the “SAR Period”);
provided, however, that notwithstanding any vesting dates set by the Committee, the Committee may, in its sole discretion,
accelerate the exercisability of any SAR, which acceleration shall not affect the terms and conditions of such SAR other than with
respect to exercisability. Unless otherwise provided by the Committee in an Award Agreement:

(i)                
a SAR shall vest and become exercisable with respect to 100% of the Common Shares subject to such SAR on the third anniversary
of the Date of Grant; 

(ii)              
the unvested portion of a SAR shall expire upon termination of employment or service of the Participant granted the SAR,
and the vested portion of such SAR shall remain exercisable for:

(A)            
one year following termination of employment or service by reason of such Participant’s death or Disability (with
the determination of Disability to be made by the Committee on a case by case basis), but not later than the expiration of the
SARPeriod;

(B)             
for directors, officers and employees of the Company only, for the remainder of the SAR Period following termination of
employment or service by reason of such Participant’s Retirement;

(C)             
90 calendar days following termination of employment or service for any reason other than such Participant’s death,
Disability or Retirement, and other than such Participant’s termination of employment or service for Cause, but not later
than the expiration of the SAR Period; and

    	 	12	 

    	 

    

 

(iii)            
both the unvested and the vested portion of a SAR shall expire immediately upon the termination of the Participant’s
employment or service by the Company for Cause.

(d)              
Method of Exercise. SARs that have become exercisable may be exercised by delivery of written or electronic
notice of exercise to the Company in accordance with the terms of the Award, specifying the number of SARs to be exercised and
the date on which such SARs were awarded. Notwithstanding the foregoing, if on the last day of the Option Period (or in the case
of a SAR independent of an option, the SAR Period), the Fair Market Value exceeds the Strike Price, the Participant has not exercised
the SAR or the corresponding Option (if applicable), and neither the SAR nor the corresponding Option (if applicable) has expired,
such SAR shall be deemed to have been exercised by the Participant on such last day and the Company shall make the appropriate
payment therefor.

(e)               
Payment. Upon the exercise of a SAR, the Company shall pay to the Participant an amount equal to the number
of shares subject to the SAR that are being exercised multiplied by the excess, if any, of the Fair Market Value of one Common
Share on the exercise date over the Strike Price, less an amount equal to any federal, state, local and non-U.S. income and employment
taxes required to be withheld. The Company shall pay such amount in cash, in Common Shares valued at fair market value, or any
combination thereof, as determined by the Committee. Any fractional Common Share shall be settled in cash.

9.                 
Restricted Stock and Restricted Stock Units.

(a)               
Generally. Each grant of Restricted Stock and Restricted Stock Units shall be evidenced by an Award Agreement
(whether in paper or electronic medium (including email or the posting on a web site maintained by the Company or a third party
under contract with the Company)). Each such grant shall be subject to the conditions set forth in this Section 9, and to
such other conditions not inconsistent with this Plan as may be reflected in the applicable Award Agreement. Restricted Stock and
Restricted Stock Units shall be subject to such restrictions on transferability and other restrictions as the Committee may impose
(including, for example, limitations on the right to vote Restricted Stock or the right to receive dividends on the Restricted
Stock). These restrictions may lapse separately or in combination at such times, under such circumstances, in such installments,
upon the satisfaction of Performance Goals or otherwise, as the Committee determines at the time of the grant of an Award or thereafter.
Except as otherwise provided in an Award Agreement, a Participant shall have none of the rights of a stockholder with respect to
Restricted Stock Units until such time as Common Shares are paid in settlement of such Awards.

(b)              
Restricted Accounts; Escrow or Similar Arrangement. Upon the grant of Restricted Stock, a book entry in a
restricted account shall be established in the Participant’s name at the Company’s transfer agent and, if the Committee
determines that the Restricted Stock shall be held by the Company or in escrow rather than held in such restricted account pending
the release of the applicable restrictions, the Committee may require the Participant to additionally execute and deliver to the
Company (i) an escrow agreement satisfactory to the Committee, if applicable, and (ii) the appropriate share power (endorsed
in blank) with respect to the Restricted Stock covered by such agreement. If a Participant shall fail to execute an agreement evidencing
an Award of Restricted Stock and, if applicable, an escrow agreement and blank share power within the amount of time specified
by the Committee, the Award shall be null and void ab initio. Subject to the restrictions set forth in this Section 9
and the applicable Award Agreement, the Participant generally shall have the rights and privileges of a stockholder as to such
Restricted Stock, including without limitation the right to vote such Restricted Stock and the right to receive dividends, if applicable.
To the extent shares of Restricted Stock are forfeited, any share certificates issued to the Participant evidencing such shares
shall be returned to the Company, and all rights of the Participant to such shares and as a stockholder with respect thereto shall
terminate without further obligation on the part of the Company.

    	 	13	 

    	 

    

 

(c)               
Vesting; Acceleration of Lapse of Restrictions. Unless otherwise provided by the Committee in an Award Agreement:
(i) the Restricted Period shall lapse with respect to 100% of the Restricted Stock and Restricted Stock Units on the third
(3rd) anniversary of the Date of Grant; and (ii) the unvested portion of Restricted Stock and Restricted Stock
Units shall terminate and be forfeited upon termination of employment or service of the Participant granted the applicable Award.

(d)              
Delivery of Restricted Stock and Settlement of Restricted Stock Units. (i) Upon the expiration of the
Restricted Period with respect to any shares of Restricted Stock, the restrictions set forth in the applicable shall be of no further
force or effect with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow arrangement is
used, upon such expiration, the Company shall deliver to the Participant, or his beneficiary, without charge, the share certificate
evidencing the shares of Restricted Stock that have not then been forfeited and with respect to which the Restricted Period has
expired (rounded down to the nearest full share). Dividends, if any, that may have been withheld by the Committee and attributable
to any particular share of Restricted Stock shall be distributed to the Participant in cash or, at the sole discretion of the Committee,
in shares of Common Stock having a Fair Market Value equal to the amount of such dividends, upon the release of restrictions on
such share and, if such share is forfeited, the Participant shall have no right to such dividends (except as otherwise set forth
by the Committee in the applicable Award Agreement).

(ii)              
Unless otherwise provided by the Committee in an Award Agreement, upon the expiration of the Restricted Period with respect
to any outstanding Restricted Stock Units, the Company shall deliver to the Participant, or his beneficiary, without charge, one
Common Share for each such outstanding Restricted Stock Unit; provided, however, that the Committee may, in
its sole discretion and subject to the requirements of Section 409A of the Code, elect to (i) pay cash or part cash and part
Common Share in lieu of delivering only Common Shares in respect of such Restricted Stock Units or (ii) defer the delivery
of Common Shares (or cash or part Common Shares and part cash, as the case may be) beyond the expiration of the Restricted Period
if such delivery would result in a violation of applicable law until such time as is no longer the case. If a cash payment is made
in lieu of delivering Common Shares, the amount of such payment shall be equal to the Fair Market Value of the Common Shares as
of the date on which the Restricted Period lapsed with respect to such Restricted Stock Units, less an amount equal to any federal,
state, local and non-U.S. income and employment taxes required to be withheld.

    	 	14	 

    	 

    

 

10.             
Stock Bonus Awards. The Committee may issue unrestricted Common Shares, or other Awards denominated in Common Shares,
under this Plan to Eligible Persons, either alone or in tandem with other awards, in such amounts as the Committee shall from time
to time in its sole discretion determine. Each Stock Bonus Award granted under this Plan shall be evidenced by an Award Agreement
(whether in paper or electronic medium (including email or the posting on a web site maintained by the Company or a third party
under contract with the Company)). Each Stock Bonus Award so granted shall be subject to such conditions not inconsistent with
this Plan as may be reflected in the applicable Award Agreement.

11.             
Performance Compensation Awards.

(a)               
Generally. The provisions of the Plan are intended to enable Options and Stock Appreciation Rights granted
hereunder to certain Eligible Persons to qualify for an exemption under Section 162(m) of the Code. The Committee shall have the
authority, at the time of grant of any Award described in Sections 7 through 10 of this Plan, to designate any other Award
as a Performance Compensation Award intended to qualify as “performance-based compensation” under Section 162(m)
of the Code. The Committee shall have the authority to make an award of a cash bonus to any Participant and designate such Award
as a Performance Compensation Award intended to qualify as “performance-based compensation” under Section 162(m)
of the Code.

(b)              
Discretion of Committee with Respect to Performance Compensation Awards. With regard to a particular Performance
Period, the Committee shall have sole discretion to select the length of such Performance Period, the type(s) of Performance Compensation
Awards to be issued, the Performance Criteria that will be used to establish the Performance Goal(s), the kind(s) and/or level(s)
of the Performance Goals(s) that is (are) to apply and the Performance Formula. Within the first 90 calendar days of a Performance
Period (or, if longer or shorter, within the maximum period allowed under Section 162(m) of the Code, if applicable), the
Committee shall, with regard to the Performance Compensation Awards to be issued for such Performance Period, exercise its discretion
with respect to each of the matters enumerated in the immediately preceding sentence and record the same in writing.

(c)               
Performance Criteria. The Performance Criteria that will be used to establish the Performance Goal(s) shall
be based on the attainment of specific levels of performance of the Company and/or one or more Affiliates, divisions or operational
units, or any combination of the foregoing, as determined by the Committee, which criteria will be based on one or more of the
following business criteria: (i) revenue; (ii) sales; (iii) profit (net profit, gross profit, operating profit, economic profit,
profit margins or other corporate profit measures); (iv) earnings (EBIT, EBITDA, earnings per share, or other corporate earnings
measures); (v) net income (before or after taxes, operating income or other income measures); (vi) cash (cash flow, cash generation
or other cash measures); (vii) stock price or performance; (viii) total stockholder return (stock price appreciation plus reinvested
dividends divided by beginning share price); (ix) economic value added; (x) return measures (including, but not limited to, return
on assets, capital, equity, investments or sales, and cash flow return on assets, capital, equity, or sales); (xi) market share;
(xii) improvements in capital structure; (xiii) expenses (expense management, expense ratio, expense efficiency ratios or other
expense measures); (xiv) business expansion or consolidation (acquisitions and divestitures); (xv) internal rate of return or increase
in net present value; (xvi) working capital targets relating to inventory and/or accounts receivable; (xvii) inventory management;
(xviii) service or product delivery or quality; (xix) customer satisfaction; (xx) employee retention; (xxi) safety standards; (xxii)
productivity measures; (xxiii) cost reduction measures; and/or (xxiv) strategic plan development and implementation. Any one or
more of the Performance Criteria adopted by the Committee may be used on an absolute or relative basis to measure the performance
of the Company and/or one or more Affiliates as a whole or any business unit(s) of the Company and/or one or more Affiliates or
any combination thereof, as the Committee may deem appropriate, or any of the above Performance Criteria may be compared to the
performance of a selected group of comparison companies, or a published or special index that the Committee, in its sole discretion,
deems appropriate, or as compared to various stock market indices. The Committee also has the authority to provide for accelerated
vesting of any Award based on the achievement of Performance Goals pursuant to the Performance Criteria specified in this paragraph.
To the extent required under Section 162(m) of the Code, the Committee shall, within the first 90 calendar days of a Performance
Period (or, if longer or shorter, within the maximum period allowed under Section 162(m) of the Code), define in an objective
fashion the manner of calculating the Performance Criteria it selects to use for such Performance Period and thereafter promptly
communicate such Performance Criteria to the Participant.

    	 	15	 

    	 

    

 

(d)              
Modification of Performance Goal(s). In the event that applicable tax and/or securities laws change to permit
Committee discretion to alter the governing Performance Criteria without obtaining stockholder approval of such alterations, the
Committee shall have sole discretion to make such alterations without obtaining stockholder approval. The Committee is authorized
at any time during the first 90 calendar days of a Performance Period (or, if longer or shorter, within the maximum period allowed
under Section 162(m) of the Code, if applicable), or at any time thereafter to the extent the exercise of such authority at
such time would not cause the Performance Compensation Awards granted to any Participant for such Performance Period to fail to
qualify as “performance-based compensation” under Section 162(m) of the Code, in its sole discretion, to adjust
or modify the calculation of a Performance Goal for such Performance Period, based on and in order to appropriately reflect the
following events: (i) asset write-downs; (ii) litigation or claim judgments or settlements; (iii) the effect of
changes in tax laws, accounting principles, or other laws or regulatory rules affecting reported results; (iv) any reorganization
and restructuring programs; (v) extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30
(or any successor pronouncement thereto) and/or in management’s discussion and analysis of financial condition and results
of operations appearing in the Company’s annual report to stockholders for the applicable year; (vi) acquisitions or
divestitures; (vii) any other specific unusual or nonrecurring events, or objectively determinable category thereof; (viii) foreign
exchange gains and losses; and (ix) a change in the Company’s fiscal year.

(e)               
Payment of Performance Compensation Awards.

(i)                
Condition to Receipt of Payment. Unless otherwise provided in the applicable Award Agreement, a Participant
must be employed by the Company on the last day of a Performance Period to be eligible for payment in respect of a Performance
Compensation Award for such Performance Period.

(ii)              
Limitation. A Participant shall be eligible to receive payment in respect of a Performance Compensation Award
only to the extent that: (A) the Performance Goals for such period are achieved; and (B) all or some of the portion of
such Participant’s Performance Compensation Award has been earned for the Performance Period based on the application of
the Performance Formula to such achieved Performance Goals.

    	 	16	 

    	 

    

 

(iii)            
Certification. Following the completion of a Performance Period, the Committee shall review and certify in
writing whether, and to what extent, the Performance Goals for the Performance Period have been achieved and, if so, calculate
and certify in writing that amount of the Performance Compensation Awards earned for the period based upon the Performance Formula.
The Committee shall then determine the amount of each Participant’s Performance Compensation Award actually payable for the
Performance Period and, in so doing, may apply Negative Discretion.

(iv)            
Use of Negative Discretion. In determining the actual amount of an individual Participant’s Performance
Compensation Award for a Performance Period, the Committee may reduce or eliminate the amount of the Performance Compensation Award
earned under the Performance Formula in the Performance Period through the use of Negative Discretion if, in its sole judgment,
such reduction or elimination is appropriate. The Committee shall not have the discretion, except as is otherwise provided in this
Plan, to (A) grant or provide payment in respect of Performance Compensation Awards for a Performance Period if the Performance
Goals for such Performance Period have not been attained; or (B) increase a Performance Compensation Award above the applicable
limitations set forth in Section 5 of this Plan.

(f)               
Timing of Award Payments. Performance Compensation Awards granted for a Performance Period shall be paid to
Participants as soon as administratively practicable following completion of the certifications required by this Section 11,
but in no event later than two-and-one-half months following the end of the fiscal year during which the Performance Period is
completed in order to comply with the short-term deferral rules under Section 1.409A-1(b)(4) of the Treasury Regulations. Notwithstanding
the foregoing, payment of a Performance Compensation Award may be delayed, as permitted by Section 1.409A-2(b)(7)(i) of the Treasury
Regulations, to the extent that the Company reasonably anticipates that if such payment were made as scheduled, the Company’s
tax deduction with respect to such payment would not be permitted due to the application of Section 162(m) of the Code.

12.             
Changes in Capital Structure and Similar Events. In the event of (a) any dividend or other distribution (whether
in the form of cash, Common Shares, other securities or other property), recapitalization, stock split, reverse stock split, reorganization,
merger, amalgamation, consolidation, split-up, split-off, combination, repurchase or exchange of Common Shares or other securities
of the Company, issuance of warrants or other rights to acquire Common Shares or other securities of the Company, or other similar
corporate transaction or event (including, without limitation, a Change in Control) that affects the Common Shares, or (b) unusual
or nonrecurring events (including, without limitation, a Change in Control) affecting the Company, any Affiliate, or the financial
statements of the Company or any Affiliate, or changes in applicable rules, rulings, regulations or other requirements of any governmental
body or securities exchange or inter-dealer quotation system, accounting principles or law, such that in either case an adjustment
is determined by the Committee in its sole discretion to be necessary or appropriate in order to prevent dilution or enlargement
of rights, then the Committee shall make any such adjustments that are equitable, including without limitation any or all of the
following:

    	 	17	 

    	 

    

 

(i)                
adjusting any or all of (A) the number of Common Shares or other securities of the Company (or number and kind of other
securities or other property) that may be delivered in respect of Awards or with respect to which Awards may be granted under this
Plan (including, without limitation, adjusting any or all of the limitations under Section 5 of this Plan) and (B) the
terms of any outstanding Award, including, without limitation, (1) the number of Common Shares or other securities of the
Company (or number and kind of other securities or other property) subject to outstanding Awards or to which outstanding Awards
relate, (2) the Exercise Price or Strike Price with respect to any Award or (3) any applicable performance measures (including,
without limitation, Performance Criteria and Performance Goals);

(ii)              
providing for a substitution or assumption of Awards, accelerating the exercisability of, lapse of restrictions on, or termination
of, Awards or providing for a period of time for exercise prior to the occurrence of such event; and

(iii)            
subject to the requirements of Section 409A of the Code, canceling any one or more outstanding Awards and causing to be
paid to the holders thereof, in cash, Common Shares, other securities or other property, or any combination thereof, the value
of such Awards, if any, as determined by the Committee (which if applicable may be based upon the price per Common Share received
or to be received by other stockholders of the Company in such event), including without limitation, in the case of an outstanding
Option or SAR, a cash payment in an amount equal to the excess, if any, of the fair market value (as of a date specified by the
Committee) of the Common Shares subject to such Option or SAR over the aggregate Exercise Price or Strike Price of such Option
or SAR, respectively (it being understood that, in such event, any Option or SAR having a per share Exercise Price or Strike Price
equal to, or in excess of, the fair market value of a Common Share subject thereto may be canceled and terminated without any payment
or consideration therefor); provided, however, that in the case of any “equity restructuring”
(within the meaning of the Financial Accounting Standards Board Statement of Financial Accounting Standards No. 123 (revised
2004) or ASC Topic 718, or any successor thereto), the Committee shall make an equitable or proportionate adjustment to outstanding
Awards to reflect such equity restructuring. Any adjustment in Incentive Stock Options under this Section 12 (other than any
cancellation of Incentive Stock Options) shall be made only to the extent not constituting a “modification” within
the meaning of Section 424(h)(3) of the Code, and any adjustments under this Section 12 shall be made in a manner that
does not adversely affect the exemption provided pursuant to Rule 16b-3 under the Exchange Act. The Company shall give each Participant
notice of an adjustment hereunder and, upon notice, such adjustment shall be conclusive and binding for all purposes.

13.             
Effect of Change in Control. Except to the extent otherwise provided in an Award Agreement, in the event of a Change
in Control, notwithstanding any provision of this Plan to the contrary, with respect to all or any portion of a particular outstanding
Award or Awards: 

(a)               
all of the then outstanding Options and SARs shall immediately vest and become immediately exercisable as of a time prior
to the Change in Control;

(b)              
the Restricted Period shall expire as of a time prior to the Change in Control (including without limitation a waiver of
any applicable Performance Goals);

    	 	18	 

    	 

    

 

(c)               
Performance Periods in effect on the date the Change in Control occurs shall end on such date, and the Committee shall
(i) determine the extent to which Performance Goals with respect to each such Performance Period have been met based upon such
audited or unaudited financial information or other information then available as it deems relevant and (ii) cause the Participant
to receive partial or full payment of Awards for each such Performance Period based upon the Committee’s determination of
the degree of attainment of the Performance Goals, or assuming that the applicable “target” levels of performance
have been attained or on such other basis determined by the Committee.

To the extent practicable, any actions
taken by the Committee under the immediately preceding clauses (a) through (c) shall occur in a manner and at a time which allows
affected Participants the ability to participate in the Change in Control transactions with respect to the Common Shares subject
to their Awards.

14.             
Amendments and Termination.

(a) Amendment
and Termination of this Plan. The Board may amend, alter, suspend, discontinue, or terminate this Plan or any portion thereof
at any time; provided, that (i) no amendment to the definition of Eligible Person in Section 2(q), Section 5(b), Section
11(c) or Section 14(b) (to the extent required by the proviso in such Section 14(b)) shall be made without stockholder approval
and (ii) no such amendment, alteration, suspension, discontinuation or termination shall be made without stockholder approval if
such approval is necessary to comply with any tax or regulatory requirement applicable to this Plan (including, without limitation,
as necessary to comply with any rules or requirements of any securities exchange or inter-dealer quotation system on which the
Common Shares may be listed or quoted or to prevent the Company from being denied a tax deduction under Section 162(m) of
the Code); and, provided, further, that any such amendment, alteration, suspension, discontinuance
or termination that would materially and adversely affect the rights of any Participant or any holder or beneficiary of any Award
theretofore granted shall not to that extent be effective without the prior written consent of the affected Participant, holder
or beneficiary.

(c)               
Amendment of Award Agreements. The Committee may, to the extent consistent with the terms of any applicable
Award Agreement, waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate,
any Award theretofore granted or the associated Award Agreement, prospectively or retroactively; provided, however
that any such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would materially and
adversely affect the rights of any Participant with respect to any Award theretofore granted shall not to that extent be effective
without the consent of the affected Participant; and, provided, further, that without stockholder approval,
except as otherwise permitted under Section 12 of this Plan, (i) no amendment or modification may reduce the Exercise
Price of any Option or the Strike Price of any SAR, (ii) the Committee may not cancel any outstanding Option or SAR and replace
it with a new Option or SAR, another Award or cash or take any action that would have the effect of treating such Award as a new
Award for tax or accounting purposes and (iii) the Committee may not take any other action that is considered a “repricing”
for purposes of the stockholder approval rules of the applicable securities exchange or inter-dealer quotation system on which
the Common Shares are listed or quoted.

    	 	19	 

    	 

    

 

15.             
General.

(a) Award
Agreements. Each Award under this Plan shall be evidenced by an Award Agreement, which shall be delivered to the Participant
(whether in paper or electronic medium (including email or the posting on a web site maintained by the Company or a third party
under contract with the Company)) and shall specify the terms and conditions of the Award and any rules applicable thereto, including
without limitation, the effect on such Award of the death, Disability or termination of employment or service of a Participant,
or of such other events as may be determined by the Committee. The Company’s failure to specify any term of any Award in
any particular Award Agreement shall not invalidate such term, provided such terms was duly adopted by the Board or the Committee.

(b)              
Nontransferability; Trading Restrictions.

(i)                
Each Award shall be exercisable only by a Participant during the Participant’s lifetime, or, if permissible under
applicable law, by the Participant’s legal guardian or representative. No Award may be assigned, alienated, pledged, attached,
sold or otherwise transferred or encumbered by a Participant other than by will or by the laws of descent and distribution and
any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against
the Company or an Affiliate; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge,
attachment, sale, transfer or encumbrance.

(ii)              
Notwithstanding the foregoing, the Committee may, in its sole discretion, permit Awards (other than Incentive Stock Options)
to be transferred by a Participant, with or without consideration, subject to such rules as the Committee may adopt consistent
with any applicable Award Agreement to preserve the purposes of this Plan, to: (A) any person who is a “family member”
of the Participant, as such term is used in the instructions to Form S-8 under the Securities Act (collectively, the “Immediate
Family Members”); (B) a trust solely for the benefit of the Participant and his or her Immediate Family Members;
or (C) a partnership or limited liability company whose only partners or stockholders are the Participant and his or her Immediate
Family Members; or (D) any other transferee as may be approved either (I) by the Board or the Committee in its sole discretion,
or (II) as provided in the applicable Award Agreement (each transferee described in clauses (A), (B) (C) and (D) above is hereinafter
referred to as a “Permitted Transferee”); provided, that the Participant gives the Committee advance
written notice describing the terms and conditions of the proposed transfer and the Committee notifies the Participant in writing
that such a transfer would comply with the requirements of this Plan.

(iii)            
The terms of any Award transferred in accordance with the immediately preceding sentence shall apply to the Permitted Transferee
and any reference in this Plan, or in any applicable Award Agreement, to a Participant shall be deemed to refer to the Permitted
Transferee, except that (A) Permitted Transferees shall not be entitled to transfer any Award, other than by will or the laws
of descent and distribution; (B) Permitted Transferees shall not be entitled to exercise any transferred Option unless there
shall be in effect a registration statement on an appropriate form covering the Common Shares to be acquired pursuant to the exercise
of such Option if the Committee determines, consistent with any applicable Award Agreement, that such a registration statement
is necessary or appropriate; (C) the Committee or the Company shall not be required to provide any notice to a Permitted Transferee,
whether or not such notice is or would otherwise have been required to be given to the Participant under this Plan or otherwise;
and (D) the consequences of the termination of the Participant’s employment by, or services to, the Company or an Affiliate
under the terms of this Plan and the applicable Award Agreement shall continue to be applied with respect to the Participant, including,
without limitation, that an Option shall be exercisable by the Permitted Transferee only to the extent, and for the periods, specified
in this Plan and the applicable Award Agreement.

    	 	20	 

    	 

    

 

(iv)            
The Committee shall have the right, either on an Award-by-Award basis or as a matter of policy for all Awards or one or
more classes of Awards, to condition the delivery of vested Common Shares received in connection with such Award on the Participant’s
agreement to such restrictions as the Committee may determine.

(c)               
Tax Withholding.

(i)                
A Participant shall be required to pay to the Company or any Affiliate, or the Company or any Affiliate shall have the right
and is hereby authorized to withhold, from any cash, Common Shares, other securities or other property deliverable under any Award
or from any compensation or other amounts owing to a Participant, the amount (in cash, Common Shares, other securities or other
property) of any required withholding taxes in respect of an Award, its exercise, or any payment or transfer under an Award or
under this Plan and to take such other action as may be necessary in the opinion of the Committee or the Company to satisfy all
obligations for the payment of such withholding and taxes.

(ii)              
Without limiting the generality of clause (i) above, the Committee may, in its sole discretion, permit a Participant to
satisfy, in whole or in part, the foregoing withholding liability by (A) the delivery of Common Shares (which are not subject
to any pledge or other security interest) owned by the Participant having a fair market value equal to such withholding liability
or (B) having the Company withhold from the number of Common Shares otherwise issuable or deliverable pursuant to the exercise
or settlement of the Award a number of shares with a fair market value equal to such withholding liability (but no more than the
minimum required statutory withholding liability).

(d)              
No Claim to Awards; No Rights to Continued Employment; Waiver. No employee of the Company or an Affiliate,
or other person, shall have any claim or right to be granted an Award under this Plan or, having been selected for the grant of
an Award, to be selected for a grant of any other Award. There is no obligation for uniformity of treatment of Participants or
holders or beneficiaries of Awards. The terms and conditions of Awards and the Committee’s determinations and interpretations
with respect thereto need not be the same with respect to each Participant and may be made selectively among Participants, whether
or not such Participants are similarly situated. Neither this Plan nor any action taken hereunder shall be construed as giving
any Participant any right to be retained in the employ or service of the Company or an Affiliate, nor shall it be construed as
giving any Participant any rights to continued service on the Board. The Company or any of its Affiliates may at any time dismiss
a Participant from employment or discontinue any consulting relationship, free from any liability or any claim under this Plan,
unless otherwise expressly provided in this Plan or any Award Agreement. By accepting an Award under this Plan, a Participant shall
thereby be deemed to have waived any claim to continued exercise or vesting of an Award or to damages or severance entitlement
related to non-continuation of the Award beyond the period provided under this Plan or any Award Agreement, notwithstanding any
provision to the contrary in any written employment contract or other agreement between the Company and its Affiliates and the
Participant, whether any such agreement is executed before, on or after the Date of Grant.

    	 	21	 

    	 

    

 

(e)               
International Participants. With respect to Participants who reside or work outside of the United States of
America and who are not (and who are not expected to be) “covered employees” within the meaning of Section 162(m)
of the Code, the Committee may in its sole discretion amend the terms of this Plan or outstanding Awards (or establish a sub-plan)
with respect to such Participants in order to conform such terms with the requirements of local law or to obtain more favorable
tax or other treatment for a Participant, the Company or its Affiliates.

(f)               
Designation and Change of Beneficiary. Each Participant may file with the Committee a written designation
of one or more persons as the beneficiary(ies) who shall be entitled to receive the amounts payable with respect to an Award, if
any, due under this Plan upon his or her death. A Participant may, from time to time, revoke or change his or her beneficiary designation
without the consent of any prior beneficiary by filing a new designation with the Committee. The last such designation filed with
the Committee shall be controlling; provided, however, that no designation, or change or revocation thereof,
shall be effective unless received by the Committee prior to the Participant’s death, and in no event shall it be effective
as of a date prior to such receipt. If no beneficiary designation is filed by a Participant, the beneficiary shall be deemed to
be his or her spouse or, if the Participant is unmarried at the time of death, his or her estate. Upon the occurrence of a Participant’s
divorce (as evidenced by a final order or decree of divorce), any spousal designation previously given by such Participant shall
automatically terminate.

(g)              
Termination of Employment/Service. Unless determined otherwise by the Committee at any point following such
event: (i) neither a temporary absence from employment or service due to illness, vacation or leave of absence nor a transfer
from employment or service with the Company to employment or service with an Affiliate (or vice-versa) shall be considered a termination
of employment or service with the Company or an Affiliate; and (ii) if a Participant’s employment with the Company and
its Affiliates terminates, but such Participant continues to provide services to the Company and its Affiliates in a non-employee
capacity (or vice-versa), such change in status shall not be considered a termination of employment with the Company or an Affiliate.

(h)              
No Rights as a Stockholder. Except as otherwise specifically provided in this Plan or any Award Agreement,
no person shall be entitled to the privileges of ownership in respect of Common Shares that are subject to Awards hereunder until
such shares have been issued or delivered to that person.

    	 	22	 

    	 

    

 

(i)                
Government and Other Regulations.

(i)                
The obligation of the Company to settle Awards in Common Shares or other consideration shall be subject to all applicable
laws, rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions
of any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from
offering to sell or selling, any Common Shares pursuant to an Award unless such shares have been properly registered for sale pursuant
to the Securities Act with the Securities and Exchange Commission or unless the Company has received an opinion of counsel, satisfactory
to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption therefrom
and the terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation to register
for sale under the Securities Act any of the Common Shares to be offered or sold under this Plan. The Committee shall have the
authority to provide that all certificates for Common Shares or other securities of the Company or any Affiliate delivered under
this Plan shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under this Plan,
the applicable Award Agreement, the federal securities laws, or the rules, regulations and other requirements of the Securities
and Exchange Commission, any securities exchange or inter-dealer quotation system upon which such shares or other securities are
then listed or quoted and any other applicable federal, state, local or non-U.S. laws, and, without limiting the generality of
Section 9 of this Plan, the Committee may cause a legend or legends to be put on any such certificates to make appropriate
reference to such restrictions. Notwithstanding any provision in this Plan to the contrary, the Committee reserves the right to
add any additional terms or provisions to any Award granted under this Plan that it in its sole discretion deems necessary or advisable
in order that such Award complies with the legal requirements of any governmental entity to whose jurisdiction the Award is subject.

(ii)              
The Committee may cancel an Award or any portion thereof if it determines, in its sole discretion, that legal or contractual
restrictions and/or blockage and/or other market considerations would make the Company’s acquisition of Common Shares from
the public markets, the Company’s issuance of Common Shares to the Participant, the Participant’s acquisition of Common
Shares from the Company and/or the Participant’s sale of Common Shares to the public markets, illegal, impracticable or inadvisable.
If the Committee determines to cancel all or any portion of an Award in accordance with the foregoing, unless doing so would violate
Section 409A of the Code, the Company shall pay to the Participant an amount equal to the excess of (A) the aggregate fair
market value of the Common Shares subject to such Award or portion thereof canceled (determined as of the applicable exercise date,
or the date that the shares would have been vested or delivered, as applicable), over (B) the aggregate Exercise Price or
Strike Price (in the case of an Option or SAR, respectively) or any amount payable as a condition of delivery of Common Shares
(in the case of any other Award). Such amount shall be delivered to the Participant as soon as practicable following the cancellation
of such Award or portion thereof. The Committee shall have the discretion to consider and take action to mitigate the tax consequence
to the Participant in cancelling an Award in accordance with this clause.

    	 	23	 

    	 

    

 

(j)                
Payments to Persons Other Than Participants. If the Committee shall find that any person to whom any amount
is payable under this Plan is unable to care for his affairs because of illness or accident, or is a minor, or has died, then any
payment due to such person or his estate (unless a prior claim therefor has been made by a duly appointed legal representative)
may, if the Committee so directs the Company, be paid to his spouse, child, relative, an institution maintaining or having custody
of such person, or any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled
to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Company therefor.

(k)              
Nonexclusivity of this Plan. Neither the adoption of this Plan by the Board nor the submission of this Plan
to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board to adopt
such other incentive arrangements as it may deem desirable, including, without limitation, the granting of stock options or other
equity-based awards otherwise than under this Plan, and such arrangements may be either applicable generally or only in specific
cases.

(l)                
No Trust or Fund Created. Neither this Plan nor any Award shall create or be construed to create a trust or
separate fund of any kind or a fiduciary relationship between the Company or any Affiliate, on the one hand, and a Participant
or other person or entity, on the other hand. No provision of this Plan or any Award shall require the Company, for the purpose
of satisfying any obligations under this Plan, to purchase assets or place any assets in a trust or other entity to which contributions
are made or otherwise to segregate any assets, nor shall the Company maintain separate bank accounts, books, records or other evidence
of the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights
under this Plan other than as general unsecured creditors of the Company, except that insofar as they may have become entitled
to payment of additional compensation by performance of services, they shall have the same rights as other employees under general
law.

(m)            
Reliance on Reports. Each member of the Committee and each member of the Board shall be fully justified in
acting or failing to act, as the case may be, and shall not be liable for having so acted or failed to act in good faith, in reliance
upon any report made by the independent public accountant of the Company and its Affiliates and/or any other information furnished
in connection with this Plan by any agent of the Company or the Committee or the Board, other than himself.

(n)              
Relationship to Other Benefits. No payment under this Plan shall be taken into account in determining any
benefits under any pension, retirement, profit sharing, group insurance or other benefit plan of the Company except as otherwise
specifically provided in such other plan.

(o)              
Governing Law. The Plan shall be governed by and construed in accordance with the internal laws of the State
of Nevada, without giving effect to the conflict of laws provisions.

(p)              
Severability. If any provision of this Plan or any Award or Award Agreement is or becomes or is deemed to
be invalid, illegal, or unenforceable in any jurisdiction or as to any person or entity or Award, or would disqualify this Plan
or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to
the applicable laws in the manner that most closely reflects the original intent of the Award or the Plan, or if it cannot be construed
or deemed amended without, in the determination of the Committee, materially altering the intent of this Plan or the Award, such
provision shall be construed or deemed stricken as to such jurisdiction, person or entity or Award and the remainder of this Plan
and any such Award shall remain in full force and effect.

(q)              
Obligations Binding on Successors. The obligations of the Company under this Plan shall be binding upon any
successor corporation or organization resulting from the merger, amalgamation, consolidation or other reorganization of the Company,
or upon any successor corporation or organization succeeding to substantially all of the assets and business of the Company.

    	 	24	 

    	 

    

 

(r)                
Code Section 162(m) Approval. If so determined by the Committee, the provisions of this Plan regarding
Performance Compensation Awards shall be disclosed and reapproved by stockholders no later than the first stockholder meeting that
occurs in the fifth year following the year in which stockholders previously approved such provisions, in each case in order for
certain Awards granted after such time to be exempt from the deduction limitations of Section 162(m) of the Code. Nothing in this
clause, however, shall affect the validity of Awards granted after such time if such stockholder approval has not been obtained.

(s)               
Expenses; Gender; Titles and Headings. The expenses of administering this Plan shall be borne by the Company
and its Affiliates. Masculine pronouns and other words of masculine gender shall refer to both men and women. The titles and headings
of the sections in this Plan are for convenience of reference only, and in the event of any conflict, the text of this Plan, rather
than such titles or headings shall control.

(t)                
Other Agreements. Notwithstanding the above, the Committee may require, as a condition to the grant of and/or
the receipt of Common Shares under an Award, that the Participant execute lock-up, stockholder or other agreements, as it may determine
in its sole and absolute discretion.

(u)              
Section 409A. The Plan and all Awards granted hereunder are intended to comply with, or otherwise be exempt
from, the requirements of Section 409A of the Code. The Plan and all Awards granted under this Plan shall be administered, interpreted,
and construed in a manner consistent with Section 409A of the Code to the extent necessary to avoid the imposition of additional
taxes under Section 409A(a)(1)(B) of the Code. Notwithstanding anything in this Plan to the contrary, in no event shall the Committee
exercise its discretion to accelerate the payment or settlement of an Award where such payment or settlement constitutes deferred
compensation within the meaning of Section 409A of the Code unless, and solely to the extent that, such accelerated payment or
settlement is permissible under Section 1.409A-3(j)(4) of the Treasury Regulations. If a Participant is a “specified employee”
(within the meaning of Section 1.409A-1(i) of the Treasury Regulations) at any time during the twelve (12)-month period ending
on the date of his termination of employment, and any Award hereunder subject to the requirements of Section 409A of the Code is
to be satisfied on account of the Participant’s termination of employment, satisfaction of such Award shall be suspended
until the date that is six (6) months after the date of such termination of employment.

(v)              
Payments. Participants shall be required to pay, to the extent required by applicable law, any amounts required
to receive Common Shares under any Award made under this Plan.

    	 	25

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