Document:

Exhibit 10.17

 

YOSHIHARU
GLOBAL CO., INC. 2022 OMNIBUS INCENTIVE PLAN

 

1.
PURPOSE

 

The
Plan is intended to enhance the Company’s and its Subsidiaries’ ability to attract and retain employees, Consultants and
Non-Employee Directors, and to motivate such employees, Consultants, and Non-Employee Directors to serve the Company and its Subsidiaries
and to expend maximum effort to improve the business results and earnings of the Company, by providing to such persons an opportunity
to acquire or increase a direct proprietary interest in the operations and future success of the Company. To this end, the Plan provides
for the grant of stock options (nonstatutory and incentive), stock appreciation rights, restricted shares, restricted stock units, other
stock-based awards, and cash awards. Any of these awards may—but need not—be made as performance incentives to reward attainment
of performance goals in accordance with the terms and conditions hereof.

 

2.
DEFINITIONS

 

For
purposes of interpreting the Plan and related documents (including Award Agreements), the following definitions will apply:

 

2.1.
“Affiliate” means any company or other trade or
business that “controls,” is “controlled by” or is “under common control with,” the Company within
the meaning of Rule 405 of Regulation C under the Securities Act, including any Subsidiary.

 

2.2.
“Award” means a grant, under the Plan, of an Option,
a SAR, Restricted Shares, RSUs, an Other Stock-Based Award, a cash award or a Substitute Award. 

 

2.3.
“Award Agreement” means a written agreement between
the Company and a Grantee, or notice from the Company or a Subsidiary to a Grantee that evidences and sets out the terms and conditions
of an Award. 

 

2.4.
“Beneficial Owner” will have the meaning assigned
to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular
Person, that Person will be deemed to have beneficial ownership of all securities that the Person has the right to acquire by conversion
or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time. The terms
“Beneficially Owns” and “Beneficially Owned” have corresponding meanings.

 

2.5.
“Board” means the Board of Directors of the Company.

 

2.6.
“Business Combination” means the consummation
of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company.

 

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2.7.
“Cause” will be defined as that term is defined
in the Grantee’s offer letter or other applicable employment agreement. If there is no such definition, “Cause” means,
as determined by the Company and unless otherwise provided in the applicable Award Agreement, (a) the commission of any act by the Grantee
constituting financial dishonesty against the Company or its Affiliates, (b) the Grantee’s engaging in any other act of dishonesty,
fraud, intentional misrepresentation, moral turpitude, illegality or harassment that would adversely affect the business or the reputation
of the Company or any of its Affiliates with their respective current or prospective customers, suppliers, lenders or other third parties
with whom such entity does or might do business or expose the Company or any of its Affiliates to a risk of civil or criminal legal damages,
liabilities or penalties, (c) the repeated failure by the Grantee to follow the directives of the chief executive officer of the Company
or any of its Affiliates or the Board or (d) any material misconduct, violation of Company or Affiliate policy, or willful and deliberate
non-performance of duty by the Grantee in connection with the business affairs of the Company or its Affiliates. A Separation from Service
for Cause will be deemed to include a determination by the Company following the Grantee’s Separation from Service that circumstances
existing prior to the Separation from Service would have entitled the Company or an Affiliate to have terminated the Grantee’s
service for Cause. All rights a Grantee has or may have under the Plan will be suspended automatically during the pendency of any investigation
by the Company, or during any negotiations between the Company and the Grantee, regarding any actual or alleged act or omission by the
Grantee of the type described in the applicable definition of Cause.

 

2.8.
“Change in Control” means, except as provided
otherwise by the Board, the occurrence of any of the following events: 

 

(1)
The acquisition by any Person of Beneficial Ownership of 50% or more of the outstanding voting power, provided that the following acquisitions
will not constitute a Change in Control for purposes of this Section 2.8(1): (A) any acquisition directly from the Company; (B) any acquisition
by the Company or any of its Subsidiaries; (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained
by the Company or any of its Subsidiaries; or (D) any acquisition by any corporation under a transaction that complies with clauses (A),
(B) and (C) of Section 2.8(3); or

 

(2)
Individuals who at the beginning of any two-year period constitute the Board (the “Incumbent Board”) cease for any reason
to constitute at least a majority of the Board, provided that any individual who becomes a director of the Company during such two-year
period and whose election, or whose nomination for election by the Stockholders, to the Board was either (A) approved by a vote of at
least a majority of the directors then comprising the Incumbent Board or (B) recommended by a nominating committee comprised entirely
of directors who are then Incumbent Board members will be considered as though such individual were a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened
election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act), other actual or threatened
solicitation of proxies or consents or an actual or threatened tender offer; or

 

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(3)
Consummation of a Business Combination, unless after the Business Combination (A) all or substantially all of the Persons who were the
Beneficial Owners, respectively, of the outstanding shares and outstanding voting securities immediately before the Business Combination
own, directly or indirectly, more than 50% of the combined voting power of the then outstanding voting securities entitled to vote generally
in the election of directors of the Company, as the case may be, of the entity resulting from the Business Combination (including an
entity that as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly
or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately before such Business Combination,
of the outstanding voting securities (provided that for purposes of this clause (A) any shares of common stock or voting securities of
such resulting entity received by such Beneficial Owners in such Business Combination other than as the result of such Beneficial Owners’
ownership of outstanding shares or outstanding voting securities immediately before such Business Combination will not be considered
to be owned by such Beneficial Owners for the purposes of calculating their percentage of ownership of the outstanding common stock and
voting power of the resulting entity); (B) no Person (excluding any entity resulting from such Business Combination or any employee benefit
plan (or related trust) of the Company or such entity resulting from the Business Combination) becomes the Beneficial Owner, directly
or indirectly, of 30% or more of the combined voting power of the then outstanding voting securities of such entity resulting from the
Business Combination unless such Person owned 30% or more of the outstanding shares or outstanding voting securities immediately before
the Business Combination; and (C) at least a majority of the members of the Board of the entity resulting from such Business Combination
were members of the Incumbent Board at the time of the execution of the initial agreement, or the action of the Board, providing for
such Business Combination; or

 

(4)
Approval by the Stockholders of a complete liquidation or dissolution of the Company.

 

For
purposes of Section 2.8(3), any Person who acquires outstanding voting securities of the entity resulting from the Business Combination
by virtue of ownership, before such Business Combination, of outstanding voting securities of both the Company and the entity or entities
with which the Company is combined will be treated as two Persons after the Business Combination, who will be treated as owning outstanding
voting securities of the entity resulting from the Business Combination by virtue of ownership, before such Business Combination of,
respectively, outstanding voting securities of the Company, and of the entity or entities with which the Company is combined.

 

Solely
to the extent required by Code § 409A, an event described above will not constitute a Change in Control for purposes of the payment
(but not vesting) terms and conditions of any Award subject to Code § 409A unless such event also constitutes a change in ownership
or effective control of the Company or a change in the ownership of a substantial portion of the Company’s assets within the meaning
of Code § 409A.

 

2.9.
“Code” means the Internal Revenue Code of 1986.

 

2.10.
“Committee” means the Compensation Committee of
the Board or any committee or other person or persons designated by the Board to administer the Plan. The Board will cause the Committee
to satisfy the applicable requirements of any securities exchange on which the Common Stock may then be listed. For purposes of Awards
to Grantees who are subject to Section 16 of the Exchange Act, Committee means all of the members of the Committee who are “non-employee
directors” within the meaning of Rule 16b-3 under the Exchange Act. All references in the Plan to the Board will mean such Committee
or the Board.

 

2.11.
“Company” means Yoshiharu Global Co., a Delaware
corporation.

 

2.12.
“Common Stock” means the Class A common stock
of the Company, par value $0.0001 per share.

 

2.13.
“Consultant” means any person, except an employee
or Non-Employee Director, engaged by the Company or any Subsidiary, to render personal services to such entity, including as an advisor,
under a written agreement and who qualifies as a consultant or advisor under Form S-8.

 

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2.14.
“Corporate Transaction” means a reorganization,
merger, statutory share exchange, consolidation, sale of all or substantially all of the Company’s assets, or the acquisition of
assets or stock of another entity by the Company, or other corporate transaction involving the Company or any of its Subsidiaries.

 

2.15.
“Detrimental Conduct” means, as determined by
the Company, the Grantee’s serious misconduct or unethical behavior, including (1) any violation by the Grantee of a restrictive
covenant agreement that the Grantee has entered into with the Company or an Affiliate (covering, for example, confidentiality, non-competition,
non-solicitation or non-disparagement), (2) any conduct by the Grantee that could result in the Grantee’s Separation from Service
for Cause, (3) the commission of a criminal act by the Grantee, whether or not performed in the workplace, that subjects, or if generally
known would subject, the Company or an Affiliate to public ridicule or embarrassment, or other improper or intentional conduct by the
Grantee causing reputational harm to the Company, an Affiliate, or a client or former client of the Company or an Affiliate, (4) the
Grantee’s breach of a fiduciary duty owed to the Company or an Affiliate or a client or former client of the Company or an Affiliate,
(5) the Grantee’s intentional violation, or grossly negligent disregard, of the Company’s or an Affiliate’s policies,
rules or procedures or (6) the Grantee taking or maintaining trading positions that result in a need to restate financial results in
a subsequent reporting period or that result in a significant financial loss to the Company or its Affiliates.

 

2.16.
“Disability” will be defined as that term is defined
in the Grantee’s offer letter or other applicable employment agreement; or, if there is no such definition, “Disability”
means, as determined by the Company and unless otherwise provided in the applicable Award Agreement, the Grantee is unable to perform
each of the essential duties of the Grantee’s position by reason of a medically determinable physical or mental impairment that
is potentially permanent in character or that can be expected to last for a continuous period of not less than 12
months, provided that with respect to rules regarding expiration of an Incentive Stock Option following termination of the Grantee’s
employment, “Disability” means “permanent and total disability” as set forth in Code § 22(e)(3).

 

2.17.
“Effective Date” means February __, 2022, the
date the Plan was approved by the Board of Directors and the sole Stockholder. 

 

2.18.
“Exchange Act” means the Securities Exchange Act
of 1934. 

 

2.19.
“Fair Market Value” of a Share as of a particular
date means (1) if the Shares are listed on a national securities exchange, the closing price of a Share as quoted on such exchange or
other comparable reporting system for the first regular trading day immediately preceding the applicable date, or (2) if the Shares are
not then listed on a national securities exchange, the closing price of a Share quoted by an established quotation service for over-the-counter
securities for the first trading day immediately preceding the applicable date, or (3) if the Shares are not then listed on a national
securities exchange or quoted by an established quotation service for over-the-counter securities, or the value of the Shares is not
otherwise determinable, such value as determined by the Board. Notwithstanding the foregoing, if the Board determines that an alternative
definition of Fair Market Value should be used in connection with the grant, exercise, vesting, settlement, or payout of any Award, it
may specify such alternative definition in the applicable Award Agreement. Such alternative definition may include a price that is based
on the opening, actual, high, low, or average selling prices of a Share on the applicable securities exchange on the given date, the
trading date preceding the given date, the trading date next succeeding the given date, or an average of trading days.

 

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2.20.
“Family Member” means a person who is a spouse,
former spouse, child, stepchild, grandchild, parent, stepparent, grandparent, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother, sister, brother-in-law, or sister-in-law, including adoptive relationships, of the applicable individual, any
person sharing the applicable individual’s household (other than a tenant or employee), a trust in which any one or more of these
persons have more than 50% of the beneficial interest, a foundation in which any one or more of these persons (or the applicable individual)
control the management of assets, and any other entity in which one or more of these persons (or the applicable individual) own more
than 50% of the voting interests.

 

2.21.
“GAAP” means U.S. Generally Accepted Accounting
Principles.

 

2.22.
“Grant Date” means the latest to occur of (1)
the date as of which the Board approves an Award, (2) the date on which the recipient of an Award first becomes eligible to receive an
Award under Section 6 or (3) such other date as may be specified by the Board in the Award Agreement. 

 

2.23.
“Grantee” means a person who receives or holds
an Award. 

 

2.24.
“Incentive Stock Option” means an Option that
is an “incentive stock option” within the meaning of Code § 422.

 

2.25.
“Non-Employee Director” means a member of the
Board who is not an employee. 

 

2.26.
“Nonstatutory Stock Option” means an Option that
is not an Incentive Stock Option.

 

2.27.
“Option” means an option to purchase one or more
Shares under the Plan. 

 

2.28.
“Option Price” means the exercise price for each
Share subject to an Option. 

 

2.29.
“Other Stock-Based Award” means Awards consisting
of Share units, or other Awards, valued in whole or in part by reference to, or otherwise based on, Common Stock, other than Options,
SARs, Restricted Shares and RSUs.

 

2.30.
“Performance Award” means an Award made subject
to the attainment of performance goals (as described in Section 12) over a performance period established by the Board. 

 

2.31.
“Person” means a person as defined in Exchange
Act § 13(d)(3).

 

2.32.
“Plan” means this Yoshiharu Global Co., Inc. 2022
Omnibus Incentive Plan. 

 

2.33.
[Intentionally Omitted]

 

2.34.
“Purchase Price” means the purchase price for
each Share under a grant of Restricted Shares. 

 

2.35.
“Restricted Period” will have the meaning set
forth in Section 10.1.

 

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2.36.
“Restricted Shares” means restricted Shares awarded
to a Grantee under Section 10.

 

2.37.
“RSU” means a restricted share unit, which is
a bookkeeping entry representing the equivalent of Shares, awarded to a Grantee under Section 10. 

 

2.38.
“SAR” means a stock appreciation right, which
is a right granted to a Grantee under Section 9.

 

2.39.
“SAR Exercise Price” means the per Share exercise
price of a SAR granted under Section 9. 

 

2.40.
“Securities Act” means the Securities Act of 1933.

 

2.41.
“Separation from Service” means the termination
of the applicable Grantee’s employment with, and performance of services for, the Company and each Affiliate. Unless otherwise
determined by the Company, if a Grantee’s employment or service with the Company or an Affiliate terminates but the Grantee continues
to provide services to the Company or an Affiliate in a non-employee director capacity or as an employee, officer, or consultant, as
applicable, such change in status will not be deemed a Separation from Service. A Grantee employed by, or performing services for, an
Affiliate or a division of the Company or an Affiliate will not be deemed to incur a Separation from Service if such Affiliate or division
ceases to be an Affiliate or division of the Company, as the case may be, and the Grantee immediately thereafter becomes an employee
of (or service provider to), or member of the board of directors of, the Company or an Affiliate or a successor company or an affiliate
or subsidiary thereof. Approved temporary absences from employment because of illness, vacation, or leave of absence and transfers among
the Company and its Affiliates will not be considered Separations from Service. Notwithstanding the foregoing, with respect to any Award
that constitutes nonqualified deferred compensation under Code § 409A, “Separation from Service” will mean a “separation
from service” as defined under Code § 409A.

 

2.42.
“Service Provider” means an employee, officer,
Non-Employee Director, or Consultant of the Company or an Affiliate. 

 

2.43.
“Share” means one share of Common Stock.

 

2.44.
“Stockholder” means a stockholder of the Company.

 

2.45.
“Subsidiary” means any corporation, partnership,
joint venture, affiliate, or other entity in which the Company owns more than 50% of the voting stock or voting ownership interest, as
applicable, or any other business entity designated by the Board as a Subsidiary for purposes of the Plan. 

 

2.46.
“Substitute Award” means any Award granted in
assumption of or in substitution for an award of a company or business acquired by the Company or a Subsidiary or with which the Company
or a Subsidiary combines. 

 

2.47.
“10% Stockholder” means an individual who owns
more than 10% of the total combined voting power of all classes of outstanding stock of the Company, its parent or any of its Subsidiaries.
In determining stock ownership, the attribution rules of Code § 424(d) will be applied.

 

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2.48.
“Termination Date” means the date that is ten
years after the Effective Date, unless the Plan is earlier terminated by the Board under Section 5.2.

 

3.
ADMINISTRATION OF THE PLAN

 

3.1.
General

 

The
Board will have such powers and authorities related to the administration of the Plan as are consistent with the Company’s articles
of incorporation and bylaws and applicable law. The Board will have the power and authority to delegate its powers and responsibilities
hereunder to the Committee, which will have full authority to act in accordance with its charter, and with respect to the authority of
the Board to act hereunder, all references to the Board will be deemed to include a reference to the Committee, to the extent such power
or responsibilities have been delegated. Except as specifically provided in Section 14 or as otherwise may be required by applicable
law, regulatory requirement, or the articles of incorporation or the bylaws of the Company, the Board will have full power and authority
to take all actions and to make all determinations required or provided for under the Plan, any Award or any Award Agreement, and will
have full power and authority to take all such other actions and make all such other determinations not inconsistent with the specific
terms and conditions of the Plan that the Board deems to be necessary or appropriate to the administration of the Plan. The Committee
will administer the Plan; provided that the Board will retain the right to exercise the authority of the Committee to the extent
consistent with applicable law and the applicable requirements of any securities exchange on which the Common Stock may then be listed.
The interpretation and construction by the Board of the Plan, any Award, or any Award Agreement will be final, binding, and conclusive.
Without limitation, the Board will have full and final authority, subject to the other terms and conditions of the Plan, to (1) designate
Grantees, (2) determine the type or types of Awards to be made to a Grantee, (3) determine the number of Shares to be subject to an Award,
(4) establish the terms and conditions of each Award (including the Option Price of any Option, the nature and duration of any restriction
or condition (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of an Award or the Shares subject
thereto, and any terms or conditions that may be necessary to qualify Options as Incentive Stock Options), (5) prescribe the form of
each Award Agreement and (6) amend, modify or supplement the terms and conditions of any outstanding Award, including the authority,
in order to effectuate the purposes of the Plan, to modify Awards to foreign nationals or individuals who are employed outside the U.S.
to recognize differences in local law, tax policy or custom.

 

To
the extent permitted by applicable law, the Board may delegate its authority as identified herein to any individual or committee of individuals
(who need not be directors), including the authority to make Awards to Grantees who are not subject to Exchange Act § 16. To the
extent that the Board delegates its authority to make Awards as provided by this Section 3.1, all references in the Plan to the Board’s
authority to make Awards and determinations with respect thereto will be deemed to include the Board’s delegate. Any such delegate
will serve at the pleasure of, and may be removed at any time by the Board.

 

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3.2.
No Repricing

 

Notwithstanding
any other term or condition of the Plan, the repricing of Options or SARs is prohibited without prior approval of the Stockholders. For
this purpose, a “repricing” means any of the following (or any other action that has the same effect as any of the following):
(1) changing an Option or SAR to lower its Option Price or SAR Exercise Price; (2) any other action that is treated as a “repricing”
under GAAP; and (3) repurchasing for cash or canceling an Option or SAR at a time when its Option Price or SAR Exercise Price is greater
than the Fair Market Value of the underlying Shares in exchange for another Award, unless the actions contemplated in clauses (1), (2)
or (3) occur in connection with a change in capitalization or similar change under Section 15. A cancellation and exchange under clause
(3) would be considered a “repricing” regardless of whether it is treated as a “repricing” under GAAP and regardless
of whether it is voluntary on the part of the Grantee.

 

3.3.
Separation from Service for Cause

 

The
Company may annul an Award if the Grantee incurs a Separation from Service for Cause.

 

3.4.
Clawbacks

 

All
awards, amounts or benefits received or outstanding under the Plan will be subject to clawback, cancellation, recoupment, rescission,
payback, reduction or other similar action in accordance with any Company clawback or similar policy or any applicable law related to
such actions. A Grantee’s acceptance of an Award will be deemed to constitute the Grantee’s acknowledgement of and consent
to the Company’s application, implementation, and enforcement of any applicable Company clawback or similar policy that may apply
to the Grantee, whether adopted before or after the Effective Date, and any applicable law relating to clawback, cancellation, recoupment,
rescission, payback, or reduction of compensation, and the Grantee’s agreement that the Company may take any actions that may be
necessary to effectuate any such policy or applicable law, without further consideration or action.

 

3.5.
Detrimental Conduct

 

Except
as otherwise provided by the Board, notwithstanding any other term or condition of the Plan, if a Grantee engages in Detrimental Conduct,
whether during the Grantee’s service or after the Grantee’s Separation from Service, in addition to any other penalties or
restrictions that may apply under the Plan, state law, or otherwise, the Grantee will forfeit or pay to the Company (a) any and all outstanding
Awards granted to the Grantee, including Awards that have become vested or exercisable, (b) any cash or Shares received by the Grantee
in connection with the Plan within the 36-month period immediately before the date the Company determines the Grantee has engaged in
Detrimental Conduct and (c) the profit realized by the Grantee from the sale, or other disposition for consideration, of any Shares received
by the Grantee in connection with the Plan within the 36-month period immediately before the date the Company determines the Grantee
has engaged in Detrimental Conduct.

 

3.6.
Deferral Arrangement

 

The
Board may permit or require the deferral of any Award payment into a deferred compensation arrangement, subject to such rules and procedures
as it may establish and in accordance with Code § 409A, which may include terms and conditions for the payment or crediting of interest
or dividend equivalents, including converting such credits into deferred units.

 

3.7.
No Liability

 

No
member of the Board will be liable for any action or determination made in good faith with respect to the Plan, any Award or Award Agreement.

 

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3.8.
Book Entry

 

Notwithstanding
any other term or condition of the Plan, the Company may elect to satisfy any requirement under the Plan for the delivery of stock certificates
through the use of book-entry.

 

4.
shares SUBJECT TO THE PLAN

 

4.1.
Authorized Number of Shares

 

Subject
to adjustment under Section 15, the total number of Shares authorized to be awarded under the Plan will not exceed 1,500,000
Shares. Shares issued under the Plan will consist in whole or in part of authorized but unissued Shares, treasury Shares, or Shares
purchased on the open market or otherwise, all as determined by the Company from time to time. Subject to adjustment under Section 15,
1,500,000 Shares available for issuance under the Plan will be available for issuance as
Incentive Stock Options.

 

4.2.
Share Counting

 

Each
Share granted in connection with an Award will be counted as one Share against the limit in Section 4.1, subject to this Sections 4.2.
Share-based Performance Awards will be counted assuming maximum performance results (if applicable) until such time as actual performance
results can be determined. Any Award settled in cash will not be counted as Shares for any purpose under the Plan. If any Award expires,
or is terminated, surrendered, or forfeited, in whole or in part, the unissued Shares covered by that Award will again be available for
the grant of Awards. In the case of any Substitute Award, such Substitute Award will not be counted against the number of Shares reserved
under the Plan.

 

The
full number of Shares with respect to which an Option or SAR is granted will count against the aggregate number of Shares available for
grant under the Plan. Accordingly, if in accordance with the Plan, a Grantee pays the Option Price for an Option by either tendering
previously owned Shares or having the Company withhold Shares, then such Shares surrendered to pay the Option Price will continue to
count against the aggregate number of Shares available for grant under the Plan set forth in Section 4.1. In addition, if in accordance
with the Plan, a Grantee satisfies any tax withholding requirement with respect to any taxable event arising as a result of the Plan
by either tendering previously owned Shares or having the Company withhold Shares, then such Shares surrendered to satisfy such tax withholding
requirements will continue to count against the aggregate number of Shares available for grant under the Plan set forth in Section 4.1.
Any Shares repurchased by the Company with cash proceeds from the exercise of Options will not be added back to the pool of Shares available
for grant under the Plan set forth in Section 4.1.

 

4.3.
Award Limits for Non-Employee Directors

 

[Intentionally
Omitted]

 

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5.
EFFECTIVE DATE, DURATION AND AMENDMENTS

 

5.1.
Term

 

The
Plan will be effective as of the Effective Date, provided that it has been approved by the Stockholders. The Plan will terminate automatically
on the ten-year anniversary of the Effective Date and may be terminated on any earlier date as provided in Section 5.2.

 

5.2.
Amendment and Termination of the Plan

 

The
Board may, at any time and from time to time, amend, suspend, or terminate the Plan as to any Awards that have not been made. An amendment
will be contingent on approval of the Stockholders to the extent stated by the Board, required by applicable law, or required by applicable
securities exchange listing requirements. Notwithstanding the foregoing, any amendment to Section 3.2 will be contingent upon the approval
of the Stockholders. No Awards may be granted after the Termination Date. The applicable terms and conditions of the Plan, and any terms
and conditions applicable to Awards granted before the Termination Date will survive the termination of the Plan and continue to apply
to such Awards. No amendment, suspension, or termination of the Plan will, without the consent of the Grantee, materially impair rights
or obligations under any Award theretofore awarded.

 

6.
AWARD ELIGIBILITY AND LIMITATIONS

 

6.1.
Service Providers

 

Awards
may be made to any Service Provider as the Board may determine and designate from time to time.

 

6.2.
Successive Awards

 

An
eligible person may receive more than one Award, subject to such restrictions as are provided herein.

 

6.3.
Stand-Alone, Additional, Tandem, and Substitute Awards

 

The
Board may grant Awards either alone or in addition to, in tandem with, or in substitution or exchange for, any other Award or any award
granted under another plan of the Company, any Subsidiary, or any business entity to be acquired by the Company or a Subsidiary, or any
other right of a Grantee to receive payment from the Company or any Subsidiary. Such additional, tandem, and substitute or exchange Awards
may be granted at any time. If an Award is granted in substitution or exchange for another Award, the Board will have the right to require
the surrender of such other Award in consideration for the grant of the new Award. Subject to Section 3.2, the Board will have the right
to make Awards in substitution or exchange for any other award under another plan of the Company, any Subsidiary, or any business entity
to be acquired by the Company or a Subsidiary. In addition, Awards may be granted in lieu of cash compensation, including in lieu of
cash amounts payable under other plans of the Company or any Subsidiary, in which the value of Shares subject to the Award is equivalent
in value to the cash compensation (for example, RSUs or Restricted Shares).

 

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7.
AWARD AGREEMENT

 

Each
Award will be evidenced by an Award Agreement, in such form or forms as the Board will from time to time determine. Without limiting
the foregoing, an Award Agreement may be provided in the form of a notice that provides that acceptance of the Award constitutes acceptance
of all terms and conditions of the Plan and the notice. Award Agreements granted from time to time or at the same time need not contain
similar terms and conditions but will be consistent with the terms and conditions of the Plan. Each Award Agreement evidencing an Award
of Options will specify whether such Options are intended to be Nonstatutory Stock Options or Incentive Stock Options, and in the absence
of such specification such options will be deemed Nonstatutory Stock Options.

 

8.
TERMS AND CONDITIONS OF OPTIONS

 

8.1.
Option Price

 

The
Option Price of each Option will be fixed by the Board and stated in the related Award Agreement. The Option Price of each Option (except
those that constitute Substitute Awards) will be at least the Fair Market Value on the Grant Date of a Share, provided that in the event
that a Grantee is a 10% Stockholder as of the Grant Date, the Option Price of an Option granted to such Grantee that is intended to be
an Incentive Stock Option will be not less than 110% of the Fair Market Value of a Share on the Grant Date. In no case will the Option
Price of any Option be less than the par value of a Share.

 

8.2.
Vesting

 

Subject
to Section 8.3, each Option will become exercisable at such times and under such terms and conditions (including performance requirements)
as may be determined by the Board and stated in the Award Agreement.

 

8.3.
Term

 

Each
Option will terminate, and all rights to purchase Shares thereunder will cease, upon the expiration of a period not to exceed ten years
from the Grant Date, or under such circumstances and on any date before ten years from the Grant Date as may be set forth in the Plan
or as may be fixed by the Board and stated in the related Award Agreement, provided that in the event that the Grantee is a 10% Stockholder,
an Option granted to such Grantee that is intended to be an Incentive Stock Option at the Grant Date will not be exercisable after the
expiration of five years from its Grant Date.

 

8.4.
Limitations on Exercise of Option

 

Notwithstanding
any other term or condition of the Plan, in no event may any Option be exercised, in whole or in part, before the date the Plan is approved
by the Stockholders as provided herein or after the occurrence of an event that results in termination of the Option.

 

8.5.
Method of Exercise

 

An
Option that is exercisable may be exercised by the Grantee’s delivery of a notice of exercise to the Company, setting forth the
number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares. To be effective, notice
of exercise must be made in accordance with procedures established by the Company from time to time.

 

    	11

    	 

    

 

8.6.
Rights of Holders of Options

 

Unless
otherwise stated in the related Award Agreement, an individual holding or exercising an Option will have none of the rights of a Stockholder
(for example, the right to receive cash or dividend payments or distributions attributable to the subject Shares or to direct the voting
of the subject Shares) until the Shares covered thereby are fully paid and issued to him. Except as provided in Section 15 or the related
Award Agreement, no adjustment will be made for dividends, distributions, or other rights for which the record date is before the date
of such issuance.

 

8.7.
Limitations on Incentive Stock Options

 

An
Option will constitute an Incentive Stock Option only if the Grantee of the Option is an employee of the Company or any Subsidiary of
the Company and to the extent that the aggregate Fair Market Value (determined at the time the Option is granted) of the Shares with
respect to which all Incentive Stock Options held by such Grantee become exercisable for the first time during any calendar year (under
the Plan and all other plans of the Grantee’s employer and its Affiliates) does not exceed $100,000. This limitation will be applied
by taking Options into account in the order in which they were granted.

 

9.
TERMS AND CONDITIONS OF SARS

 

9.1.
Right to Payment

 

A
SAR will confer on the Grantee a right to receive, upon exercise thereof, the excess of (1) the Fair Market Value of one Share on the
date of exercise over (2) the SAR Exercise Price. The Award Agreement for a SAR (except those that constitute Substitute Awards) will
specify the SAR Exercise Price, which will be fixed on the Grant Date as not less than the Fair Market Value of a Share on that date.
SARs may be granted alone or in conjunction with all or part of an Option or at any subsequent time during the term of such Option or
in conjunction with all or part of any other Award. A SAR granted in tandem with an outstanding Option after the Grant Date of such Option
will have a SAR Exercise Price that is equal to the Option Price, provided that the SAR Exercise Price may not be less than the Fair
Market Value of a Share on the Grant Date of the SAR to the extent required by Code § 409A.

 

9.2.
Other Terms

 

The
Board will determine at the Grant Date the time or times at which and the circumstances under which a SAR may be exercised in whole or
in part (including based on achievement of performance goals and/or future service requirements), the time or times at which SARs will
cease to be or become exercisable after Separation from Service or upon other terms or conditions, the method of exercise, whether or
not a SAR will be in tandem or in combination with any other Award, and any other terms and conditions of any SAR.

 

    	12

    	 

    

 

9.3.
Term of SARs

 

The
term of a SAR granted under the Plan will be determined by the Board, provided that such term will not exceed ten years.

 

9.4.
Payment of SAR Amount

 

Upon
exercise of a SAR, a Grantee will be entitled to receive payment from the Company (in cash or Shares) in an amount determined by multiplying
(1) the difference between the Fair Market Value of a Share on the date of exercise over the SAR Exercise Price by (2) the number of
Shares with respect to which the SAR is exercised.

 

10.
TERMS AND CONDITIONS OF RESTRICTED SHARES AND RSUS

 

10.1.
Restrictions

 

At
the time of grant, the Board may establish a period of time (a “Restricted Period”) and any additional restrictions
including the satisfaction of corporate or individual performance objectives applicable to an Award of Restricted Shares or RSUs in accordance
with Section 12. Each Award of Restricted Shares or RSUs may be subject to a different Restricted Period and additional restrictions.
Neither Restricted Shares nor RSUs may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the Restricted
Period or before the satisfaction of any other applicable restrictions.

 

10.2.
Restricted Share Certificates

 

The
Company will issue, in the name of each Grantee to whom Restricted Shares have been granted, stock certificates or other evidence of
ownership representing the total number of Restricted Shares granted to the Grantee, as soon as reasonably practicable after the Grant
Date.

 

10.3.
Rights of Holders of Restricted Shares

 

Unless
the Board otherwise provides in an Award Agreement and subject to Section 17.10, holders of Restricted Shares will have rights as Stockholders,
including voting and dividend rights.

 

10.4.
Rights of Holders of RSUs

 

RSUs
may be settled in cash or Shares, as determined by the Board and set forth in the Award Agreement. The Award Agreement will also set
forth whether the RSUs will be settled within the time period specified for “short term deferrals” under Code § 409A
or otherwise within the requirements of Code § 409A, in which case the Award Agreement will specify upon which events such RSUs
will be settled.

 

Unless
otherwise stated in the applicable Award Agreement and subject to Section 17.10, holders of RSUs will not have rights as Stockholders,
including no voting or dividend or dividend equivalents rights. A holder of RSUs will have no rights other than those of a general creditor
of the Company. RSUs represent an unfunded and unsecured obligation of the Company, subject to the applicable Award Agreement.

 

    	13

    	 

    

 

10.5.
Purchase of Restricted Shares

 

The
Grantee will be required, to the extent required by applicable law, to purchase Restricted Shares from the Company at a Purchase Price
equal to the greater of (1) the aggregate par value of the Restricted Shares or (2) the Purchase Price, if any, specified in the related
Award Agreement. If specified in the Award Agreement, the Purchase Price may be deemed paid by services already rendered. The Purchase
Price will be payable in a form described in Section 11 or, if permitted by the Board, in consideration for past services rendered.

 

10.6.
Delivery of Shares

 

Upon
the expiration or termination of any Restricted Period and the satisfaction of any other terms and conditions prescribed by the Board,
the restrictions applicable to Restricted Shares or RSUs settled in Shares will lapse, and, unless otherwise provided in the Award Agreement,
a stock certificate for such Shares will be delivered, free of all such restrictions, to the Grantee or the Grantee’s beneficiary
or estate, as the case may be.

 

11.
FORM OF PAYMENT FOR OPTIONS AND RESTRICTED SHARES

 

11.1.
General Rule

 

Payment
of the Option Price for an Option or the Purchase Price for Restricted Shares will be made in cash or in cash equivalents acceptable
to the Company, except as provided in this Section 11.

 

11.2.
Surrender of Shares

 

To
the extent the Award Agreement so provides, payment of the Option Price for an Option or the Purchase Price for Restricted Shares may
be made all or in part through the tender to, or withholding by, the Company of Shares that will be valued, for purposes of determining
the extent to which the Option Price or Purchase Price for Restricted Shares has been paid thereby, at their Fair Market Value on the
date of exercise or surrender. Notwithstanding the foregoing, in the case of an Incentive Stock Option, the right to make payment in
the form of already owned Shares may be authorized only at the time of grant.

 

11.3.
Cashless Exercise

 

With
respect to an Option only (and not with respect to Restricted Shares), to the extent permitted by law and to the extent the Award Agreement
so provides, payment of the Option Price may be made all or in part by delivery (on a form acceptable to the Company) of an irrevocable
direction to a licensed securities broker acceptable to the Company to sell Shares and to deliver all or part of the sales proceeds to
the Company in payment of the Option Price and any withholding taxes described in Section 17.3.

 

11.4.
Other Forms of Payment

 

To
the extent the Award Agreement so provides, payment of the Option Price or the Purchase Price for Restricted Shares may be made in any
other form that is consistent with applicable laws, regulations, and rules, including the Company’s withholding of Shares otherwise
due to the exercising Grantee.

 

    	14

    	 

    

 

12.
TERMS AND CONDITIONS OF PERFORMANCE AWARDS

 

The
right of a Grantee to exercise or receive a grant or settlement of any Award, and the timing thereof, may be subject to such performance
terms conditions as may be specified by the Board. The Board may use such business criteria and other measures of performance as it may
deem appropriate in establishing any performance terms or conditions.

 

13.
other sTOCK-based awards

 

Other
Stock-Based Awards may be granted either alone or in addition to or in conjunction with other Awards. Other Stock-Based Awards may be
granted in lieu of other cash or other compensation to which a Service Provider is entitled from the Company or may be used in the settlement
of amounts payable in Shares under any other compensation plan or arrangement of the Company. Subject to the terms and conditions of
the Plan, the Board will determine the persons to whom and the time or times at which such Awards may be made, the number of Shares to
be granted under such Awards, and all other terms and conditions of such Awards. Unless the Board determines otherwise, any such Award
will be confirmed by an Award Agreement, which will contain such terms and conditions as the Board determines to be necessary or appropriate
to carry out the intent of the Plan with respect to such Award.

 

Any
Shares subject to Awards made under this Section 13 may not be sold, assigned, transferred, pledged or otherwise encumbered before the
date on which the Shares are issued, or, if later, the date on which any applicable restriction, performance or deferral period lapses.

 

14.
REQUIREMENTS OF LAW

 

14.1.
General

 

The
Company will not be required to sell or issue any Shares under any Award if the sale or issuance of such Shares would constitute a violation
by the Grantee, any other individual, or the Company of any law or regulation of any governmental authority, including any federal or
state securities laws or regulations. If at any time the Company determines that the listing, registration, or qualification of any Shares
subject to an Award upon any securities exchange or under any governmental regulatory body is necessary or desirable as a term or condition
of, or in connection with, the issuance or purchase of Shares hereunder, no Shares may be issued or sold to the Grantee or any other
individual exercising an Option unless such listing, registration, qualification, consent or approval will have been effected or obtained
free of any terms and conditions not acceptable to the Company, and any delay caused thereby will in no way affect the date of termination
of the Award. Specifically, in connection with the Securities Act, upon the exercise of any Option or the delivery of any Shares underlying
an Award, unless a registration statement under such Act is in effect with respect to the Shares covered by such Award, the Company will
not be required to sell or issue such Shares unless the Board has received evidence satisfactory to it that the Grantee or any other
individual exercising an Option may acquire such Shares under an exemption from registration under the Securities Act. The Company may,
but will not be obligated to, register any securities covered hereby under the Securities Act. The Company will not be obligated to take
any affirmative action in order to cause the exercise of an Option or the issuance of Shares under the Plan to comply with any law or
regulation of any governmental authority. As to any jurisdiction that expressly imposes the requirement that an Option will not be exercisable
until the Shares covered by such Option are registered or are exempt from registration, the exercise of such Option (under circumstances
in which the laws of such jurisdiction apply) will be deemed conditioned upon the effectiveness of such registration or the availability
of such an exemption.

 

    	15

    	 

    

 

14.2.
Rule 16b-3

 

During
any time when the Company has a class of equity security registered under Exchange Act § 12, it is the intent of the Company that
Awards and the exercise of Options granted to officers and directors hereunder will qualify for the exemption provided by Rule 16b-3
under the Exchange Act. To the extent that any term or condition of the Plan or action by the Board does not comply with the requirements
of Rule 16b-3, it will be deemed inoperative to the extent permitted by law and deemed advisable by the Board, and will not affect the
validity of the Plan. If Rule 16b-3 is revised or replaced, the Board may modify the Plan in any respect necessary to satisfy the requirements
of, or to take advantage of any features of, the revised exemption or its replacement.

 

15.
EFFECT OF CHANGES IN CAPITALIZATION

 

15.1.
Changes in Common Stock

 

If
(1) the number of outstanding Shares is increased or decreased or the Shares are changed into or exchanged for a different number or
kind of shares or other securities of the Company on account of any recapitalization, reclassification, stock split, reverse split, combination
of shares, exchange of shares, stock dividend or other distribution payable in capital stock, or other increase or decrease in such Shares
effected without receipt of consideration by the Company occurring after the Effective Date or (2) any spin-off, split-up, extraordinary
cash dividend or other distribution of assets by the Company occurs, (A) the number and kinds of shares for which grants of Awards may
be made (including the per-Grantee maximums set forth in Section 4), (B) the number and kinds of shares for which outstanding Awards
may be exercised or settled, and (C) the performance goals relating to outstanding Awards, will be equitably adjusted by the Company;
provided that any such adjustment will comply with Code § 409A. In addition, in the event of any such increase or decease
in the number of outstanding shares or other transaction described in clause (2) above, the number and kind of shares for which Awards
are outstanding and the Option Price per share of outstanding Options and SAR Exercise Price per share of outstanding SARs will be equitably
adjusted, provided that any such adjustment will comply with Code § 409A.

 

    	16

    	 

    

 

15.2.
Effect of Certain Transactions

 

Except
as otherwise provided in an Award Agreement, in the event of a Corporate Transaction, the Plan and the Awards will continue in effect
in accordance with their respective terms, except that after a Corporate Transaction either (1) each outstanding Award will be treated
as provided for in the agreement entered into in connection with the Corporate Transaction or (2) if not so provided in such agreement,
each Grantee will be entitled to receive in respect of each Share subject to any outstanding Awards, upon exercise or payment or transfer
in respect of any Award, the same number and kind of stock, securities, cash, property, or other consideration that each Stockholder
was entitled to receive in the Corporate Transaction in respect of one Share. Unless otherwise determined by the Board, such stock, securities,
cash, property or other consideration will remain subject to all of the terms and conditions (including performance criteria) that were
applicable to the Awards before such Corporate Transaction. Without limiting the generality of the foregoing, the treatment of outstanding
Options and SARs under this Section 15.2 in connection with a Corporate Transaction in which the consideration paid or distributed to
the Stockholders is not entirely shares of common stock of the acquiring or resulting corporation may include the cancellation of outstanding
Options and SARs upon consummation of the Corporate Transaction as long as, at the election of the Board, (A) the holders of affected
Options and SARs have been given a period of at least 15 days before the date of the consummation of the Corporate Transaction to exercise
the Options or SARs (to the extent otherwise exercisable) or (B) the holders of the affected Options and SARs are paid (in cash or cash
equivalents) in respect of each Share covered by the Option or SAR being canceled an amount equal to the excess, if any, of the per Share
price paid or distributed to Stockholders in the Corporate Transaction (the value of any noncash consideration to be determined by the
Board) over the Option Price or SAR Exercise Price, as applicable. For avoidance of doubt, (i) the cancellation of Options and SARs under
clause (B) of the preceding sentence may be effected notwithstanding any other term or condition of the Plan or any Award Agreement and
(ii) if the amount determined under clause (B) of the preceding sentence is zero or less, the affected Option or SAR may be cancelled
without any payment therefore. The treatment of any Award as provided in this Section 15.2 will be conclusively presumed to be appropriate
for purposes of Section 15.1.

 

15.3.
Change in Control

 

For
any Awards outstanding as of the date of a Change in Control, either of the following provisions will apply, depending on whether, and
the extent to which, Awards are assumed, converted, or replaced by the resulting entity in a Change in Control, unless otherwise provided
by the Award Agreement:

 

(1)
To the extent such Awards are not assumed, converted or replaced by the resulting entity in the Change in Control, then upon the Change
in Control such outstanding Awards that may be exercised will become fully exercisable, all restrictions with respect to such outstanding
Awards, other than for Performance Awards, will lapse and become vested and nonforfeitable, and for any outstanding Performance Awards
the target payout opportunities attainable under such Awards will be deemed to have been fully earned as of the Change in Control based
upon the greater of (A) an assumed achievement of all relevant performance goals at the “target” level or (B) the actual
level of achievement of all relevant performance goals against target as of the Company’s fiscal quarter end preceding the Change
in Control.

 

(2)
To the extent such Awards are assumed, converted, or replaced by the resulting entity in the Change in Control, if, within 24 months
after the date of the Change in Control, the Service Provider has a Separation from Service by the Company other than for Cause (which
may include a Separation from Service by the Service Provider for “good reason” if provided in the applicable Award Agreement),
then such outstanding Awards that may be exercised will become fully exercisable, all restrictions with respect to such outstanding Awards,
other than for Performance Awards, will lapse and become vested and nonforfeitable, and for any outstanding Performance Awards the target
payout opportunities attainable under such Awards will be deemed to have been fully earned as of the Separation from Service based on
the greater of an assumed achievement of all relevant performance goals at the “target” level or the actual level of achievement
of all relevant performance goals against target as of the Company’s fiscal quarter end preceding the Change in Control.

 

    	17

    	 

    

 

15.4.
Adjustments

 

Adjustments
under this Section 15 related to Share or other securities of the Company will be made by the Board. No fractional Shares or other securities
will be issued under any such adjustment, and any fractions resulting from any such adjustment will be eliminated in each case by rounding
downward to the nearest whole Share.

 

16.
No Limitations on Company

 

The
grant of Awards will not affect or limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations,
or changes of its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or any part
of its business or assets.

 

17.
TERMS APPLICABLE GENERALLY TO AWARDS

 

17.1.
Disclaimer of Rights

 

No
term or condition of the Plan or any Award Agreement will be construed to confer upon any individual the right to remain in the employ
or service of the Company or any Subsidiary, or to interfere in any way with any contractual or other right or authority of the Company
either to increase or decrease the compensation or other payments to any individual at any time, or to terminate any employment or other
relationship between any individual and the Company. In addition, notwithstanding any other term or condition of the Plan, unless otherwise
stated in the applicable Award Agreement, no Award will be affected by any change of duties or position of the Grantee, so long as such
Grantee continues to be a Service Provider. The obligation of the Company to pay any benefits under the Plan will be interpreted as a
contractual obligation to pay only those amounts described herein, in the manner and under the terms and conditions prescribed herein.
The Plan will in no way be interpreted to require the Company to transfer any amounts to a third party trustee or otherwise hold any
amounts in trust or escrow for payment to any Grantee or beneficiary under the Plan.

 

17.2.
Nonexclusivity of the Plan

 

Neither
the adoption of the Plan nor the submission of the Plan to the Stockholders for approval will be construed as creating any limitations
on the right and authority of the Board to adopt such other incentive compensation arrangements (which arrangements may be applicable
either generally to a class or classes of individuals or specifically to a particular individual or particular individuals), including
the granting of Options as the Board determines desirable.

 

17.3.
Withholding Taxes

 

The
Company or a Subsidiary, as the case may be, will have the right to deduct from payments of any kind otherwise due to a Grantee any federal,
state, or local taxes of any kind required by law to be withheld (1) with respect to the vesting of or other lapse of restrictions applicable
to an Award, (2) upon the issuance of any Shares upon the exercise of an Option or SAR or (3) otherwise due in connection with an Award.
At the time of such vesting, lapse, or exercise, the Grantee will pay to the Company or the Subsidiary, as the case may be, any amount
that the Company or the Subsidiary may reasonably determine to be necessary to satisfy such withholding obligation. The Company or the
Subsidiary, as the case may be, may require or permit the Grantee to satisfy such obligations, in whole or in part, (A) by causing the
Company or the Subsidiary to withhold up to the maximum required number of Shares otherwise issuable to the Grantee as may be necessary
to satisfy such withholding obligation or (B) by delivering to the Company or the Subsidiary Shares already owned by the Grantee. The
Shares so delivered or withheld will have an aggregate Fair Market Value equal to such withholding obligations. The Fair Market Value
of the Shares used to satisfy such withholding obligation will be determined by the Company or the Subsidiary as of the date that the
amount of tax to be withheld is to be determined. To the extent applicable, a Grantee may satisfy his or her withholding obligation only
with Shares that are not subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements.

 

    	18

    	 

    

 

17.4.
Other Terms and Conditions and Employment Agreements

 

Each
Award Agreement may contain such other terms and conditions not inconsistent with the Plan as may be determined by the Board. In the
event of any conflict between the terms and conditions of an employment agreement and the Plan, the terms and conditions of the employment
agreement will govern.

 

17.5.
Severability

 

If
any term or condition of the Plan or any Award Agreement is determined to be illegal or unenforceable by any court of law in any jurisdiction,
the remaining terms and conditions hereof and thereof will be severable and enforceable, and all terms and conditions will remain enforceable
in any other jurisdiction.

 

17.6.
Governing Law

 

The
Plan and all Award Agreements will be construed in accordance with and governed by the laws of the State of Delaware without regard to
the principles of conflicts of law that could cause the application of the laws of any jurisdiction other than the State of Delaware.
The Plan is not intended to be subject to the Employee Retirement Income Security Act of 1974.

 

17.7.
Code § 409A

 

The
Plan is intended to comply with Code § 409A to the extent subject thereto, and, accordingly, to the maximum extent permitted, the
Plan will be interpreted and administered to be in compliance therewith. Any payments described in the Plan that are due within the “short-term
deferral period” as defined in Code § 409A will not be treated as deferred compensation unless applicable laws require otherwise.
For purposes of Code § 409A, each installment payment under the Plan will be treated as a separate payment. Notwithstanding any
other term or condition of the Plan, to the extent required to avoid accelerated taxation or tax penalties under Code § 409A, amounts
that would otherwise be payable and benefits that would otherwise be provided under the Plan during the six-month period immediately
after the Grantee’s Separation from Service will instead be paid on the first payroll date after the six-month anniversary of the
Grantee’s Separation from Service (or the Grantee’s death, if earlier). Notwithstanding the foregoing, neither the Company
nor the Board will have any obligation to take any action to prevent the assessment of any additional tax or penalty on any Grantee under
Code § 409A and neither the Company nor the Board will have any liability to any Grantee for such tax or penalty.

 

    	19

    	 

    

 

17.8.
Separation from Service

 

The
Board will determine the effect of a Separation from Service upon Awards, and such effect will be set forth in the appropriate Award
Agreement. Without limiting the foregoing, the Board may provide in the Award Agreements at the time of grant, or any time thereafter
with the consent of the Grantee, the actions that may be taken upon the occurrence of a Separation from Service, including accelerated
vesting or termination, depending upon the circumstances surrounding the Separation from Service.

 

17.9.
Transferability of Awards

 

Except
as provided in this Section 17.9, no Award will be assignable or transferable by the Grantee to whom it is granted, other than by will
or the laws of descent and distribution, and, during the lifetime of the Grantee, only the Grantee personally (or the Grantee’s
personal representative) may exercise rights under the Plan.

 

If
authorized in the applicable Award Agreement, a Grantee may transfer, not for value, all or part of an Award (other than Incentive Stock
Options) to any Family Member. For the purpose of this Section 17.9, a “not for value” transfer is a transfer that is (1)
a gift, (2) a transfer under a domestic relations order in settlement of marital property rights; or (3) a transfer to an entity in which
more than 50% of the voting interests are owned by Family Members (or the Grantee) in exchange for an interest in that entity. After
a transfer under this Section 17.9, any such Award will continue to be subject to the same terms and conditions as were applicable immediately
before transfer. Subsequent transfers of transferred Awards are prohibited except to Family Members of the original Grantee in accordance
with this Section 17.9 or by will or the laws of descent and distribution.

 

17.10.
Dividend Equivalent Rights

 

If
specified in the Award Agreement, the recipient of an Award may be entitled to receive dividend equivalent rights with respect to the
Shares or other securities covered by an Award. The terms and conditions of a dividend equivalent right may be set forth in the Award
Agreement. Dividend equivalents credited to a Grantee may be paid in cash or deemed to be reinvested in additional Shares or other securities
of the Company at a price per unit equal to the Fair Market Value of a Share on the date that such dividend was paid to Stockholders.
Notwithstanding the foregoing, dividends or dividend equivalents will not be paid on any Award or portion thereof that is unvested or
on any Award that is subject to the achievement of performance criteria before the Award has become earned and payable.

 

17.11.
Data Protection

 

A
Grantee’s acceptance of an Award will be deemed to constitute the Grantee’s acknowledgement of and consent to the collection
and processing of personal data relating to the Grantee so that the Company can meet its obligations and exercise its rights under the
Plan and generally administer and manage the Plan. This data will include data about participation in the Plan and Shares offered or
received, purchased, or sold under the Plan and other appropriate financial and other data (such as the date on which the Awards were
granted) about the Grantee and the Grantee’s participation in the Plan.

 

    	20

    	 

    

 

17.12.
Plan Construction

 

In
the Plan, unless otherwise stated, the following uses apply:

 

(1)
references to a statute or law refer to the statute or law and any amendments and any successor statutes or laws, and to all valid and
binding governmental regulations, court decisions, and other regulatory and judicial authority issued or rendered thereunder, as amended,
or their successors, as in effect at the relevant time;

 

(2)
in computing periods from a specified date to a later specified date, the words “from” and “commencing on” (and
the like) mean “from and including,” and the words “to,” “until” and “ending on” (and
the like) mean “to and including”;

 

(3)
indications of time of day will be based upon the time applicable to the location of the principal headquarters of the Company;

 

(4)
the words “include,” “includes” and “including” (and the like) mean “include, without limitation,”
“includes, without limitation” and “including, without limitation” (and the like), respectively;

 

(5)
all references to articles and sections are to articles and sections in the Plan;

 

(6)
all words used will be construed to be of such gender or number as the circumstances and context require;

 

(7)
the captions and headings of articles and sections have been inserted solely for convenience of reference and will not be considered
a part of the Plan, nor will any of them affect the meaning or interpretation of the Plan;

 

(8)
any reference to an agreement, plan, policy, form, document or set of documents and the rights and obligations of the parties under any
such agreement, plan, policy, form, document or set of documents, will mean such agreement, plan, policy, form, document or set of documents
as amended from time to time, and any and all modifications, extensions, renewals, substitutions or replacements thereof; and

 

(9)
all accounting terms not specifically defined will be construed in accordance with GAAP.

 

    	21pld-ex41_14.htm

Exhibit 4.1

 

 

Prologis, Inc.

Prologis, L.P.

 

Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934

 

At December 31, 2021, Prologis, Inc. (the “Parent”) and Prologis, L.P., meaning Prologis, L.P. and its consolidated subsidiaries (the “Operating Partnership” or “OP”), had three outstanding classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (“Exchange Act”): common stock, 3.000% Notes due 2026 and 2.250% Notes due 2029. 

 

Additionally, the OP holds a 100% indirect ownership in three finance subsidiaries, Prologis Euro Finance LLC, Prologis Yen Finance LLC and Prologis Sterling Finance LLC, which had ten outstanding classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: 0.250% Notes due 2027, 0.375% Notes due 2028, 1.875% Notes due 2029, 0.625% Notes due 2031, 0.500% Notes due 2032,1.000% Notes due 2035, 1.000% Notes due 2041, 1.500% Notes due 2049 and two sets of Floating Rate Notes due 2022. 

 

The terms “the Company,” “Prologis,” “we,” “our” or “us” means the Parent and OP collectively.

 

Description of Capital Stock

 

The following description of our common stock and Series Q preferred stock (“preferred stock”) is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to our Articles of Incorporation of Prologis and related Articles of Amendment (both “Articles of Incorporation”), our Articles Supplementary, establishing and fixing the rights and preferences of the Series Q Cumulative Redeemable Preferred Stock of Prologis and related Articles Supplementary and Articles of Amendment (both “Articles Supplementary”) and Ninth Amended and Restated Bylaws of Prologis, Inc. (“Bylaws”), each of which are incorporated by reference herein and as an exhibit to our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”). We encourage you to read our Articles of Incorporation, Articles Supplementary, Bylaws and the applicable provisions of the Maryland General Corporation Law (“MGCL”) and Delaware General Corporation Law (“DGCL”) for additional information. 

 

Authorized Capital Stock 

 

General. Our authorized capital stock consists of 2,000,000,000 shares of common stock at a par value of $0.01 per share and 100,000,000 shares of preferred stock at a par value of $0.01 per share. 

 

Common Stock

 

Shares Outstanding. The outstanding shares of our common stock are duly authorized, validly issued, fully paid and nonassessable. Our common stock is listed under the New York Stock Exchange under the symbol “PLD.” The transfer agent and securities registrar for our common stock is Computershare Trust Company, N.A.

 

Unissued Common Stock. The Articles of Incorporation authorize the board of directors (the “Board”) to reclassify any unissued shares of common stock into other classes or series of classes of stock and to establish the number of shares in each class or series and to set the preferences, conversion and other rights, voting powers, restrictions, limitations and restrictions on ownership, limitations as to dividends or other distributions, qualifications and terms or conditions of redemption for each such class or series.

 

The issuance of any shares of common stock in future financings, acquisitions or otherwise may result in dilution of voting power and relative equity interest of the holders of shares of our common stock and will subject our common stock to prior dividend and liquidation rights of the outstanding shares of the series of preferred stock.

 

Restrictions on Ownership. Prologis generally will prohibit ownership by a single stockholder to no more than 9.8% (by value or number of shares, whichever is more restrictive) of the issued and outstanding shares of common stock. 

 

Dividend Rights. The Board may declare and pay dividends on our common stock out of funds legally available for that purpose, subject to the rights of holders of preferred stock, as described below. 

 

Voting Rights. Each outstanding share of common stock will entitle the holder to one vote for all matters submitted to stockholders for a vote at every meeting of the stockholders, including the election of directors. The holders of such shares will possess the exclusive voting power, subject to any resolution adopted by the Board with respect to any other class or series of stock establishing the designation, powers, preferences and relative, participating, optional or other special rights and powers of such series. 

 

Holders may vote in person, authorize another person or persons to act by proxy. A majority of the stock issued and outstanding and entitled to vote at any meeting of stockholders, shall constitute a quorum. A quorum, once established, shall be sufficient to approve 

any matter which may properly come before the meeting. Additionally, under MGCL, we generally cannot dissolve, amend our Articles of Incorporation or Bylaws, merge, sell all or substantially all of our assets, engage in a share exchange or similar transaction in the ordinary course of business unless approved by the affirmative vote of the stockholders holding at least two-thirds of the shares entitled to vote on the matter and our Articles of Incorporation do not provide for a lesser percentage in any situation.

 

Voting for the Election of Directors. Each director is to be elected by the vote of the majority of votes cast with respect to that director’s election; provided, if the number of persons properly nominated to serve as directors exceeds the number of directors to be elected, then each director will be elected by the vote of a plurality of the shares present in person or by proxy at the meeting and entitled to vote on the election of directors.

 

Rights and Preferences. Holders of shares of common stock will not have any conversion, exchange, sinking or retirement fund, redemption or appraisal rights or any preemptive rights to subscribe for any securities of the Company or cumulative voting rights in the election of directors. 

 

Rights Upon Liquidation. Upon liquidation, the holders of our common stock are entitled to share ratably in assets available for distribution to stockholders after satisfaction of any liquidation preferences of any outstanding preferred stock. 

 

Preferred Stock

 

Shares Outstanding. The outstanding shares of our preferred stock are duly authorized, validly issued, fully paid and nonassessable. Under our Articles of Incorporation, without further stockholder action, the Board is authorized, subject to any limitations prescribed by MGCL and DGCL, to provide for the issuance of the shares of preferred stock in one or more series, to establish from time to time the number of shares to be included in such series, to fix the designation, powers, preferences and rights of the shares of each such series and any qualifications, limitations and restrictions thereof.

 

Restriction on Ownership. No person or persons acting as a group at any time may directly or indirectly acquire ownership of more than 25% of the outstanding preferred stock or Prologis may redeem such shares from the holder or holders within 10 days of becoming aware of such activity. 

 

Redemption Provisions. Prior to November 13, 2026, preferred stock will not be redeemable by Prologis, however, after this date at the option of Prologis, we may redeem the shares in whole at a redemption price of $50 per share. If full cumulative dividends on the preferred stock have not been declared and paid or declared and set apart for payment, they may not be redeemed at the option of Prologis except to enforce the ownership restrictions described above as well as to preserve its tax status.

 

Dividend Rights. The annual dividend rate is 8.54% per share and dividends are payable in arrears. Pursuant to the terms of our preferred stock, we are restricted from declaring or paying any dividend with respect to our common stock unless and until all cumulative dividends with respect to the preferred stock have been paid and sufficient funds have been set aside for dividends that have been declared for the relevant dividend period with respect to the preferred stock. 

 

Voting Rights. The voting rights of preferred stock are limited. If and whenever six quarterly dividends payable on the preferred stock is in arrears, whether or not earned or declared, the number of directors then constituting the Board will be increased by two and the holders of preferred stock, together with the holders of shares of every other class, voting as a single class, regardless of class or series will be entitled to elect two additional directors to serve at annual meeting of stockholders or special meeting held in place thereof. The affirmative vote of at least 66 2/3% of the votes entitled to be case by the holders of the preferred stock is required to approve: (i) any changes to the Articles of Incorporation or Articles Supplementary that materially and adversely affects the voting powers, rights or preferences of the preferred stock; (ii) any share exchange, consolidation, or merger that materially and adversely affects the holders of the preferred stock and; (iii) the authorization, reclassification or creation of, or the increase in the authorized amount of, any security ranking senior to the preferred stock in the distribution of assets on any liquidation, dissolution or winding up of the Company or in the payment of dividends.

 

Rights and Preferences. The preferred stock is not entitled to the benefits of any retirement of sinking fund and the holders have no conversion, redemption or preemption rights.

 

Rights Upon Liquidation. Preferred stockholders receive a liquidation preference of $50 per share.

 

Anti-takeover Effects of Certain Provisions of the Articles of Incorporation and Bylaws

 

General. Our Articles of Incorporation and Bylaws contain certain provisions, including our ability to limit the actual or constructive ownership of shares of capital stock that may be deemed to have an anti-takeover effect and may delay, deter or prevent a tender offer or take-over attempt that a stockholder might consider in its best interest, including those attempts that might result in premium over the market price for the shares held by the stockholders. 

 

Business Combinations and Control Share Acquisitions Statues. In the Prologis’ Bylaws we have elected not to be governed by the "business combination" provision of the MGCL or the "control share acquisition" provisions of the MGCL, which could have the effect of delaying or preventing a change of control of the Company. The Bylaws provide that the Company cannot at a future date determine to be governed by either such provision without the approval of a majority of the outstanding shares entitled to vote. In addition, such irrevocable resolution adopted by the Board may only be changed by the approval of a majority of the outstanding shares entitled to vote.

 

 

Description of Debt Securities of Prologis, Inc. and Prologis, L.P.

 

The following description of our debt securities is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to the Indenture, dated as of June 8, 2011 by and among the Operating Partnership, as issuer, Prologis, as guarantor, and U.S. Bank National Association, as trustee (“Base Indenture” and as supplemented by the First, Second, Third, Fourth, Fifth, Six, Seventh and Eighth Supplemental Indentures thereto, which are referred to herein as the “Indenture”) and Officers’ Certificates and Forms of Notes incorporated by reference herein and as exhibits to our most recent Annual Report on Form 10-K filed with the SEC. 

 

General

 

The following listing summarizes our six classes of notes (“Notes”) registered under Section 12 of the Exchange Act and are denominated in U.S. dollar, euro and British pound sterling and their related documents comprising their respective terms as filed with the SEC:

 

	
	
3.000% Notes due 2026

 

On June 2, 2014, we issued debt of €500,000,000 aggregate principal amount bearing an interest rate of 3.000% per annum and maturing on June 2, 2026. The notes are listed under the New York Stock Exchange under the symbol “PLD/26.” 

 

	
Related Documents Incorporated by Reference

	
Form of Officers’ Certificate related to the 3.000% Notes due 2026

Form of 3.000% Notes due 2026

 

	
2.250% Notes due 2029

 

On June 7, 2017, we issued debt of £500,000,000 aggregate principal amount bearing an interest rate of 2.250% per annum and maturing on June 30, 2029. The notes are listed under the New York Stock Exchange under the symbol “PLD/29.”  

 

	
Related Documents Incorporated by Reference

	
Form of Eighth Supplemental Indenture among Prologis, Inc., Prologis, L.P., U.S. Bank National Association and Elavon Financial Services DAC, UK Branch

Form of Officers’ Certificate related to the 2.250% Notes due 2029

Form of 2.250% Notes due 2029

 

The Indenture 

 

General. All Notes are unsecured and unsubordinated obligations of Prologis underneath the Indenture, as defined above. The Notes are issuable in registered form in the form set out in the Indenture with coupons in denominations of $100,000 and any integral multiple of $1,000 in excess thereof for U.S. dollar-denominated notes, €100,000 and any integral multiple of €1,000 in excess thereof for euro-denominated notes and £100,000 and any integral multiple of £1,000 in excess thereof for British pound sterling-denominated notes. None of the Notes are redeemable or convertible at the option of the holders. The Notes do not provide for any sinking fund or analogous provision and are not to be issued upon the exercise of debt warrants. 

 

Issuance of Additional Notes. The aggregate principal amount of the Notes which may be authenticated and delivered under the Indenture is unlimited. The Notes may be issued in one or more series. The additional series would be established pursuant to one or more Board Resolutions or supplemental indentures.

 

Trustee. The U.S. Bank National Association is the trustee for all securities issued under the Indenture, including the Notes, and is referred to herein as the Trustee. 

 

Paying Agent, Transfer Agent and Security Registrar. The U.S. dollar-denominated notes define the paying agent as any person authorized by Prologis to pay the principal of or any interest on any securities on behalf of Prologis or if no such person is authorized, the paying agent is Prologis. The U.S. dollar-denominated notes also define the transfer agent and security registrar as the Trustee. The euro-denominated notes define the European paying agent and transfer agent as Elavon Financial Services Limited, UK Branch and the European security registrar as Elavon Financial Services Limited. The British pound sterling-denominated notes define U.S. Bank National Association as the transfer agent and security registrar and Elavon Financial Services DAC, UK Branch as the paying agent. 

 

Voting Rights. To be entitled to vote at any meeting of the holders of the Notes, a person must be a holder of one or more series of Notes or a person appointed by an instrument in writing as a proxy for a holder or holders of one or more such series. At any meeting each holder will be entitled to one vote for each $1,000 principal amount of the Notes.

 

Purposes for Which Meetings May Be Called. A meeting of holders may be called at any time to make, give or take any request, demand, authorization, direction, notice, consent, waiver or other action. A quorum for a meeting is defined when there is a majority of persons entitled to vote in principal amount of the total Notes. In the absence of a quorum within thirty minutes of the appointed meeting, the meeting will be dissolved or adjourned for a period of 10 days or less. Any resolution presented to a meeting or an 

adjourned meeting for which a quorum is present may be adopted by the affirmative vote of the holders of a majority in principal amount of the Notes and may become binding for all holders, whether present, not present or represented at the meeting. 

 

The Trustee may make reasonable regulations as it may deem advisable at any meetings in regard to proof of the holding of the Notes, the appointment or proxies, the duties of inspectors of the votes, other evidence of the right to vote and other such matters concerning conduct, including the appointment of a temporary chairman.

 

Execution of Supplemental Indentures. The Trustee may enter into a supplemental indenture for the purpose of adding, changing or eliminating any provisions to the Base Indenture or related supplemental indentures or to modify the rights of the holders and any related guarantees provided. To do so, the Trustee receives the consent of the holders of not less than a majority in principal amount of all Notes. 

 

Redemption Provisions. The Notes are redeemable in whole at any time at the option of Prologis at a redemption price of equal to the greater of 100% of the principal amount (“Make-Whole Amount’) or the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed discounted to the date of the redemption on an annual basis at the applicable comparable governmental bond rate plus 20 basis points (“Redemption Price”). If the notes are redeemed on or after a certain time frame as defined in each note, the price is 100% of the principal amount.  

 

Payment of Additional Amounts Upon Redemption. All repayments of the Notes will be made by or on behalf of the Company without withholding or deduction for any present or future taxes, duties, assessments or governmental charges of whatever nature, imposed or levied by the United States (“U.S.”) or any taxing authority thereof or therein, unless such withholding or deduction is required by law. If such withholding or deduction is required by law, Prologis will pay to a holder who is not a U.S. person such additional amounts (the “Additional Amounts”) on the Notes as are necessary in order that the net payment by the Company or the paying agent of the principal of, and premium (“Tax Redemption Price”), if any, and interest on, the Notes to such holder, after such withholding or deduction, will not be less than the amount provided in the Notes to be then due and payable; provided, however, that the foregoing obligation to pay the Additional Amounts will not apply to certain items as defined in the Indenture.

 

Issuance in Euro and British Pound Sterling. Excluding the U.S. dollar-denominated notes, the principal, interest and related Additional Amounts on the euro-denominated and British pound sterling-denominated notes (or Make-Whole Amount, Redemption Price or Tax Redemption Price) is payable in euro or British pound sterling, as applicable in each note’s terms. If the euro or British pound sterling is unavailable due to the imposition of exchange controls or other circumstances beyond the Company’s control, then all payments in respect of the notes will be made in U.S. dollars until the euro or British pound sterling is again available to Prologis. The amount payable on any date in euros or British pound sterling will be converted to U.S. dollars on the second business day, which is not weekend day or a day on which banking institutions in The City of New York or London are authorized or required by law, regulation or executive order to close and on which the Trans-European Automated Real-Time Gross Settlement Express Transfer system is open. The rate used would be:

 

	
(1) 
	
the Market Exchange Rate for euro, which is the noon buying rate in The City of New York for cable transfers of euros as certified for customs; or the most recently available Market Exchange Rate on or before payment is due; or  

 

	
(2) 
	
the rate mandated by the Board of Governors of the Federal Reserve system for British pound sterling, which is based on the most recent U.S. dollar/British pound sterling exchange rate published in The Wall Street Journal. If there is no published exchange rate, the rate is determined at Prologis’ sole discretion for British pound sterling.

 

Any payment in respect of the euro-denominated and British pound sterling-denominated notes made in U.S. dollars will not constitute an Event of Default, as defined below, under the Indenture. Neither the Trustee nor the paying agent is responsible for obtaining exchange rates, effecting conversions or otherwise handling redenomination’s.

 

Covenants. Under the Indenture, Prologis must maintain specific covenants on a quarterly basis to incur additional debt and continue to perform under the Indenture and not create an Event of Default, including:

 

	
(1) 
	
all outstanding debt of Prologis on a consolidated basis in accordance with U.S. generally accepted accounting principles must be less than 60% of the sum of total assets as of the quarter covered by the Annual Report on Form 10-K or Quarterly Report on Form 10-Q;

 

	
(2) 
	
the consolidated income available for debt service, as defined in the Indenture, to the annual debt service charge for four consecutive fiscal quarters as of the most recently ended period must be greater than 1.5, on a pro forma basis after giving effect to the application of proceeds from the incurrence or refinance of additional debt had it occurred at the beginning of such period;

 

	
(3) 
	
the total unencumbered assets may not at any time be equal to or less than 150% of the aggregate outstanding principal amount of the unsecured debt; 

 

	
(4) 
	
total debt secured by any mortgage, lien, charge, pledge, encumbrance or security interest of any kind upon any of the property to total assets cannot be equal to or greater than 40% of all outstanding debt; and

 

	
(5) 
	
debt will be deemed to be incurred by the Company or subsidiary whenever the Company or subsidiary will create, assume, guarantee or otherwise become liable. 

 

 

Events of Default. As described in the Indenture, there are many reasons for events of default, including but not limited to default in payment of principal and any premium when a series of Notes is due and payable at maturity, default in the payment of interest or any Additional Amounts payable, default in performance or breach of any covenant or warranty of the Company in the Indenture, default of other indebtedness of the Company, the court entering into a final judgment or decree in an aggregate amount, excluding insurance, in excess of $50,000,000 and such charges remaining for 60 days and the court entering into an order or decree of bankruptcy law.

 

If an event of default under the Indenture with respect to a series of debt securities occurs and is continuing, then in every such case, unless the principal of the debt securities of such series shall already have become due and payable, the trustee or the holders of not less than 25% in principal amount of such series of debt securities may declare the principal and the make-whole amount on the debt securities of such series to be due and payable immediately by written notice to the Operating Partnership that payment of the debt securities is due, and to the trustee if given by the holders. 

 

Subject to provisions in the Indenture relating to its duties in case of default, the trustee is under no obligation to exercise any of its rights or powers under the Indenture at the request or direction of any holders of any series of debt securities then outstanding under the Indenture, unless such holders shall have offered to the trustee reasonable security or indemnity. The holders of not less than a majority in principal amount of the debt securities of a series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the trustee, or of exercising any trust or power conferred upon the trustee with respect to that series. However, the trustee may refuse to follow any direction which is in conflict with any law or the Indenture, which may involve the trustee in personal liability or which may be unduly prejudicial to the holders of the debt securities not joining in the proceeding.

 

Description of Debt Securities of Prologis Euro Finance LLC, Prologis Yen Finance LLC and Prologis Sterling Finance LLC 

 

In 2018, we formed finance subsidiaries as part of our operations in Europe (Prologis Euro Finance LLC), Japan (Prologis Yen Finance LLC) and the United Kingdom (Prologis Sterling Finance LLC). These entities are 100% indirectly owned by the OP and all unsecured debt issued or to be issued by each entity is or will be fully and unconditionally guaranteed by the OP. There are no restrictions or limits on the OP’s ability to obtain funds from its subsidiaries by dividend or loan. In reliance on Rule 3-10 of Regulation S-X, the separate financial statements of Prologis Euro Finance LLC, Prologis Yen Finance LLC and Prologis Sterling Finance LLC are not provided in our Annual Report on Form 10-K and Quarterly Report on Form 10-Q as the finance subsidiaries are entities bearing no assets, operations, revenues or cash flows other than those related to the issuance, administration and repayment of the securities being registered and any securities guaranteed by the OP. As the debt securities of Prologis Euro Finance LLC listed in this exhibit are unconditionally guaranteed and 100% indirectly owned by the OP we consider them other securities of the OP for purposes of this exhibit. At December 31, 2021, there were no securities issued by either Prologis Yen Finance LLC or Prologis Sterling Finance LLC that have been registered under Section 12 of the Exchange Act. 

 

The following description of our debt securities issued by Prologis Euro Finance LLC is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to the Indenture, dated as of August 1, 2018 by and among Prologis Euro Finance LLC, as issuer, the OP, as guarantor, and U.S. Bank National Association, as trustee (“Finance Subsidiary Base Indenture” and as supplemented by the First and Second Supplemental Indentures thereto, which are collectively referred to herein as the “Finance Subsidiary Indenture”) and Officers’ Certificates and Forms of Notes incorporated by reference herein and as exhibits to our most recent Annual Report on Form 10-K filed with the SEC. 

 

General

 

The following listing summarizes all notes issued by Prologis Euro Finance LLC (“Finance Subsidiary Notes”) registered under Section 12 of the Exchange Act and are denominated in euros and related documents comprising their respective terms as filed with the SEC:

 

	
	
Prologis Euro Finance LLC

 

Floating Rate Notes due 2022 (“2022 Notes – February”)

 

On February 6, 2020, we issued debt of €150,000,000 aggregate principal amount bearing an interest rate of Euribor + 0.280% per annum and maturing on February 6, 2022. The notes are listed under the New York Stock Exchange under the symbol “PLD/22B”. 

 

	
Related Documents Incorporated by Reference

	
Form of Officers’ Certificate related to the Floating Rate Notes due 2022

Form of Floating Notes due 2022

	
 

	
Floating Rate Notes due 2022 (“2022 Notes – December”)

 

On December 23, 2020, we issued debt of €300,000,000 aggregate principal amount bearing an interest rate of Euribor + 0.280% per annum and maturing on December 23, 2022. The notes are listed under the New York Stock Exchange under the symbol “PLD/22”. 

 

	
Related Documents Incorporated by Reference

	
Form of Officers’ Certificate related to the Floating Rate Notes due 2022

Form of Floating Notes due 2022

	
 

	
	
0.250% Notes due 2027 (“2027 Notes”)

 

On September 10, 2019, we issued debt of €600,000,000 aggregate principal amount bearing an interest rate of Euribor + 0.250% per annum and maturing on September 10, 2027. The notes are listed under the New York Stock Exchange under the symbol “PLD/27”. 

 

	
Related Documents Incorporated by Reference

	
Form of Officers’ Certificate related to the 0.250% Notes due 2027

Form of 0.250% Notes due 2027

	
 

	
0.375% Notes due 2028 (“2028 Notes”)

 

On February 6, 2020, we issued debt of €550,000,000 aggregate principal amount bearing an interest rate of 0.375% per annum and maturing on February 6, 2028. The notes are listed under the New York Stock Exchange under the symbol “PLD/28”. 

 

	
Related Documents Incorporated by Reference

	
Form of Officers’ Certificate related to the 0.375% Notes due 2028

Form of 0.375% Notes due 2028

	
 

	
1.875% Notes due 2029 (“2029 Notes”)

 

On August 1, 2018, we issued debt of €700,000,000 aggregate principal amount bearing an interest rate of 1.875% per annum and maturing on January 5, 2029. The notes are listed under the New York Stock Exchange under the symbol “PLD/29A”. 

 

	
Related Documents Incorporated by Reference

	
First Supplemental Indenture, dated as of August 1, 2018, among Prologis Euro Finance LLC, Prologis, L.P., U.S. Bank National Association and Elavon financial Services DAC, UK Branch.

Form of Officers’ Certificate related to the 1.875% Notes due 2029

Form of 1.875% Notes due 2029

	
 

	
0.625% Notes due 2031 (“2031 Notes”)

 

On September 10, 2019, we issued debt of €700,000,000 aggregate principal amount bearing an interest rate of 0.625% per annum and maturing on September 10, 2031. The notes are listed under the New York Stock Exchange under the symbol “PLD/31”. 

 

	
Related Documents Incorporated by Reference

	
Form of Officers’ Certificate related to the 0.625% Notes due 2031

Form of 0.625% Notes due 2031

	
 

	
0.500% Notes due 2032 (“2032 Notes”)

 

On February 16, 2021 we issued debt of €850,000,000 aggregate principal amount bearing an interest rate of 0.500% per annum and maturing on February 16, 2032. The notes are listed under the New York Stock Exchange under the symbol “PLD/32”. 

 

	
Related Documents Incorporated by Reference

	
Form of Officers’ Certificate related to the 0.500% Notes due 2032

Form of 0.500% Notes due 2032

	
 

	
1.000% Notes due 2035 (“2035 Notes”)

 

On February 6, 2020, we issued debt of €650,000,000 aggregate principal amount bearing an interest rate of 1.000% per annum and maturing on February 6, 2035. The notes are listed under the New York Stock Exchange under the symbol “PLD/35”. 

 

	
Related Documents Incorporated by Reference

 

	
Form of Officers’ Certificate related to the 1.000% Notes due 2035

Form of 1.000% Notes due 2035

	
 

	
1.000% Notes due 2041 (“2041 Notes”)

 

On February 16, 2021 we issued debt of €500,000,000 aggregate principal amount bearing an interest rate of 1.000% per annum and maturing on February 16, 2041. The notes are listed under the New York Stock Exchange under the symbol “PLD/41”. 

 

	
Related Documents Incorporated by Reference

	
Form of Officers’ Certificate related to the 1.000% Notes due 2041

Form of 1.000% Notes due 2041

 

	
	
1.500% Notes due 2049 (“2049 Notes”)

 

On September 10, 2019, we issued debt of €500,000,000 aggregate principal amount bearing an interest rate of 1.500% per annum and maturing on September 10, 2049. The notes are listed under the New York Stock Exchange under the symbol “PLD/49”. 

 

	
Related Documents Incorporated by Reference

	
Form of Officers’ Certificate related to the 1.500% Notes due 2049

Form of 1.500% Notes due 2049

 

The Finance Subsidiary Indenture 

 

General. All Finance Subsidiary Notes are unsecured and unsubordinated obligations of Prologis Euro Finance LLC. They are fully and unconditionally guaranteed by the OP pursuant to the Finance Subsidiary Indenture, as defined above. The Finance Subsidiary Notes are issuable in registered form in the form set out in the Finance Subsidiary Indenture with coupons in denominations of €100,000 and any integral multiple of €1,000 in excess thereof. None of the Finance Subsidiary Notes are redeemable or convertible at the option of the holders. The Finance Subsidiary Notes do not provide for any sinking fund or analogous provision and are not to be issued upon the exercise of debt warrants. 

 

Issuance of Additional Notes. The aggregate principal amount of the Finance Subsidiary Notes which may be authenticated and delivered under the Finance Subsidiary Indenture is unlimited. The Finance Subsidiary Notes may be issued in one or more series. The additional series would be established pursuant to one or more Board Resolutions or supplemental indentures.

 

Trustee. The U.S. Bank National Association is the trustee for all securities issued under the Finance Subsidiary Indenture, including the Finance Subsidiary Notes, and is referred to herein as the Trustee. 

 

Paying Agent, Transfer Agent and Security Registrar. The euro-denominated notes define the paying agent as Elavon Financial Services DAC, UK Branch and the transfer agent and security registrar as U.S. Bank National Association. 

 

Voting Rights. To be entitled to vote at any meeting of the holders of the Finance Subsidiary Notes, a person must be a holder of one or more series of Finance Subsidiary Notes or a person appointed by a holder in writing as a proxy for a holder or holders of one or more such series. At any meeting each holder will be entitled to one vote for each $1,000 principal amount of the Finance Subsidiary Notes.

 

Purposes for Which Meetings May Be Called. A meeting of holders may be called at any time to make, give or take any request, demand, authorization, direction, notice, consent, waiver or other action. A quorum for a meeting is defined when there is a majority of persons entitled to vote in principal amount of the total Finance Subsidiary Notes. In the absence of a quorum within thirty minutes of the appointed meeting, the meeting will be dissolved or adjourned for a period of 10 days or less. Any resolution presented to a meeting or an adjourned meeting for which a quorum is present may be adopted by the affirmative vote of the holders of a majority in principal amount of the Finance Subsidiary Notes and may become binding for all holders, whether present, not present or represented at the meeting. 

 

The Trustee may make reasonable regulations as it may deem advisable at any meetings in regard to proof of the holding of the Finance Subsidiary Notes, the appointment or proxies, the duties of inspectors of the votes, other evidence of the right to vote and other such matters concerning conduct, including the appointment of a temporary chairman.

 

Execution of Supplemental Indentures. The Trustee may enter into a supplemental indenture for the purpose of adding, changing or eliminating any provisions to the Finance Subsidiary Indenture or related supplemental indentures or to modify the rights of the holders and any related guarantees provided. To do so, the Trustee receives the consent of the holders of not less than a majority in principal amount of all Finance Subsidiary Notes affected by the proposed change. 

 

Redemption Provisions. The euro-denominated notes are redeemable in whole at any time at the option of the OP at a redemption price of equal to the greater of 100% of the principal amount (“Make-Whole Amount’) or the sum of the present values of the remaining scheduled payments of principal and interest on the euro-denominated notes to be redeemed discounted to the date of the redemption on an annual basis at the applicable comparable governmental bond rate plus 20 basis points, in the case of the 2027 notes, 15 basis points, in the case of the 2028 notes, 25 basis points, in the case of the 2029 notes, 20 basis points, in the case of the 2031 notes, 20 basis points, in the case of the 2035 notes, and 30 basis points, in the case of the 2049 notes (“Redemption Price”). If the euro-denominated notes are redeemed on or after a certain time frame as defined in each note, the price is 100% of the principal amount. 

 

Payment of Additional Amounts Upon Redemption. All repayments of the Finance Subsidiary Notes will be made by or on behalf of the finance subsidiaries without withholding or deduction for any present or future taxes, duties, assessments or governmental charges of whatever nature, imposed or levied by the U.S. or any taxing authority thereof or therein, unless such withholding or deduction is required by law. If such withholding or deduction is required by law, the finance subsidiaries will pay to a holder who is not a U.S. person such additional amounts (the “Additional Amounts”) on the Finance Subsidiary Notes as are necessary in order that the net payment by the finance subsidiary or the paying agent of the principal of, and premium (“Tax Redemption Price”), if any, and interest on, the Finance Subsidiary Notes to such holder, after such withholding or deduction, will not be less than the amount provided in the Finance Subsidiary Notes to be then due and payable; provided, however, that the foregoing obligation to pay Additional Amounts will not apply to certain items as defined in the Finance Subsidiary Indenture.

 

 

Issuance in Euro and Yen. The principal, interest and related Additional Amounts on the Finance Subsidiary Notes (or Make-Whole Amount, Redemption Price or Tax Redemption Price) is payable in euro. If the euro is unavailable due to the imposition of exchange controls or other circumstances beyond the control of Prologis Euro Finance LLC, then all payments in respect of the Finance Subsidiary Notes will be made in U.S. Dollars until the euro is again available to Prologis Euro Finance LLC. The amount payable on any date in euros will be converted to U.S. Dollars on the second business day, which is not weekend day or a day on which banking institutions in the cities of New York, London are authorized or obligated by law or executive order to close and on which the Trans-European Automated Real-Time Gross Settlement Express Transfer system is open. The rate used would be:

 

	
(1)
	
the rate mandated by the Board of Governors of the Federal Reserve System as of the close of business on the second business day prior to the relevant payment date; or

 

	
(2)
	
the most recent U.S. dollar/euro exchange rate published in The Wall Street Journal on or prior to the second business day prior to the relevant payment date if the Board of Governors of the Federal Reserve System has not announced a rate of conversion; or

 

	
(3)
	
the rate determined at the sole discretion of Prologis Euro Finance LLC on the basis of the most recently available market exchange rate for euro, in the event The Wall Street Journal has not published such exchange rate.   

 

Any payment in respect of the Finance Subsidiary Notes made in U.S. dollars will not constitute an Event of Default, as defined below, under the Finance Subsidiary Indenture. Neither the Trustee nor the paying agent is responsible for obtaining exchange rates, effecting conversions or otherwise handling redenomination’s.

 

Covenants. Under the Finance Subsidiary Indenture, the OP must maintain specific covenants to incur additional debt and continue to perform under the Finance Subsidiaries Indenture and not create an Event of Default, including:

 

	
(1) 
	
all outstanding debt of the OP on a consolidated basis in accordance with U.S. generally accepted accounting principles must be less than 60% of the sum of total assets as of the quarter covered by the Annual Report on Form 10-K or Quarterly Report on Form 10-Q;

 

	
(2) 
	
the consolidated income available for debt service, as defined in the Finance Subsidiary Indenture, to the annual debt service charge for four consecutive fiscal quarters as of the most recently ended period must be greater than 1.5, on a pro forma basis after giving effect to the application of proceeds from the incurrence or refinance of additional debt had it occurred at the beginning of such period;

 

	
(3) 
	
the total unencumbered assets may not at any time be equal to or less than 150% of the aggregate outstanding principal amount of the unsecured debt of the OP; 

 

	
(4) 
	
total debt secured by any mortgage, lien, charge, pledge, encumbrance or security interest of any kind upon any of the property to total assets cannot be equal to or greater than 40% of all outstanding debt of the OP; and

 

	
(5) 
	
debt will be deemed to be incurred by the OP or subsidiary whenever the OP or subsidiary will create, assume, guarantee or otherwise become liable. 

 

Events of Default. As described in the Finance Subsidiary Indenture, there are many reasons for events of default, including but not limited to default in payment of principal and any premium when a series of Finance Subsidiary Notes is due and payable at maturity, default in the payment of interest or any Additional Amounts payable, default in performance of any covenant of the Company in the Finance Subsidiary Indenture, default of other indebtedness of the Company, the court entering into a final judgment or decree in an aggregate amount, excluding insurance, in excess of $50,000,000 and such charges remaining for 60 days and the court entering into an order or decree of bankruptcy law.

 

If an event of default under the Finance Subsidiary Indenture with respect to a series of debt securities occurs and is continuing, then in every such case, unless the principal of the debt securities of such series shall already have become due and payable, the trustee or the holders of not less than 25% in principal amount of such series of debt securities may declare the principal and the make-whole amount on the debt securities of such series to be due and payable immediately by written notice to the Operating Partnership that payment of the debt securities is due, and to the trustee if given by the holders. 

 

Subject to provisions in the Finance Subsidiary Indenture relating to its duties in case of default, the trustee is under no obligation to exercise any of its rights or powers under the Finance Subsidiary Indenture at the request or direction of any holders of any series of debt securities then outstanding under the Finance Subsidiary Indenture, unless such holders shall have offered to the trustee reasonable security or indemnity. The holders of not less than a majority in principal amount of the debt securities of a series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the trustee, or of exercising any trust or power conferred upon the trustee with respect to that series. However, the trustee may refuse to follow any direction which is in conflict with any law or the Finance Subsidiary Indenture, which may involve the trustee in personal liability or which may be unduly prejudicial to the holders of the debt securities not joining in the proceeding.

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