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Exhibit 10.1

EXECUTIVE EMPLOYMENT AGREEMENT

This Executive Employment Agreement (the “Agreement”), is entered into as of May 4, 2020 (the “Effective Date”), by and between Pacira Pharmaceuticals, Inc., a California corporation (the “Company”), and Jonathan Slonin (the “Executive”).

RECITALS

WHEREAS, the Company wishes to employ the Executive, and the Executive desires to be employed by the Company, for such purpose and upon the terms and conditions hereinafter provided; and

            WHEREAS, the parties wish to establish the terms of the Executive’s future employment with the Company and set out fully their respective rights, obligations and duties.

AGREEMENT

In consideration of the promises and the terms and conditions set forth in this Agreement, the parties agree as follows:

1.         Title and Capacity.  The Company hereby agrees to continue to employ the Executive, and the Executive hereby accepts continued employment with the Company, under the terms set forth in this Agreement.  The Executive will serve as the  Senior Vice President, Strategic Accounts and shall perform such duties as are ordinary, customary and necessary in such role.  The Executive will report directly to the Chief Clinical Officer.  The Executive shall devote his full business time, skill and attention to the performance of his duties on behalf of the Company.

2.         Compensation and Benefits.

(a)       Salary.  The Company agrees to pay the Executive an annual base salary of Four Hundred Thousand Dollars ($400,000.00)  payable in accordance with Company’s customary payroll practice (the “Base Salary”).  The Executive’s Base Salary shall be reviewed periodically by the Board of Directors of the Company (the “Board”); provided, however, that any such review will not necessarily result in an adjustment to the Executive’s Base Salary.  Any change in the Executive’s Base Salary must be approved by the Board.

(b)       Bonus.  The Executive is eligible to receive, in addition to the Base Salary and subject to the terms hereof and at the full discretion of the Board, a targeted incentive bonus of Fifty Percent (50%) of  Base Salary (the “Targeted Incentive Bonus”).  The Targeted Incentive Bonus shall be based on the Executive’s and the Company’s performance during the applicable fiscal year, as determined by the Board.  The Targeted Incentive Bonus criteria or “goals” will be determined by agreement between the Board and the Executive at beginning of each fiscal year.  The award of the Target Incentive Bonus may be in an amount either above or below the amount specified by the Board at the beginning of each fiscal year based on the ultimate performance assessed by the Board.

Targeted Incentive Bonuses shall be determined and approved by the Board in its sole discretion.

All salary and bonuses shall be subject to all applicable withholdings and deductions.

(c)       Stock Options and Restricted Stock Units.  Company will grant to the Executive a stock option (“Option”) to purchase an aggregate of Thirty Seven Thousand and Five Hundred (37,500) Stock Options and Fifteen Thousand (15,000) Restricted Stock Units of the Company’s common stock, $0.001 par value per share (along with any subsequent grants, the “Option Shares”), pursuant to the Company’s Amended and Restated 2011 Stock Option/Stock Issuance (the “Plan”).  The exercise price, vesting schedule and other terms for the Option will be set forth in the notice of grant and option agreement for such Option and the Option is subject to accelerated vesting as set forth in Section 3 hereof.  Additional equity incentives, if any, shall be determined by the Board (or a 

committee thereof) in its sole discretion.  All share figures set forth herein shall be subject to adjustment for stock splits, stock dividends, stock combinations, recapitalizations and similar events.

(d)       Benefits.  The Executive (and, where applicable, the Executive’s qualified dependents) will be eligible to participate in health insurance and other employee benefit plans and policies established by the Company for its executive team from time to time on substantially the same terms as are made available to other such employees of the Company generally. The Executive’s participation (and the participation of the Executive’s qualified dependents) in the Company’s benefit plans and policies will be subject to the terms of the applicable plan documents and the Company’s generally applied policies, and the Company in its sole discretion may from time to time adopt, modify, interpret or discontinue such plans or policies.

(e)       Expenses.  The Company will reimburse the Executive for all reasonable and necessary expenses incurred by the Executive in connection with the Company’s business, in accordance with the applicable Company policy as may be amended from time to time.

(f)        Vacation and Holidays.  The Executive shall be eligible for thirty (30) days’ paid vacation/flexible time off per calendar year subject to the applicable terms and conditions of the Company’s vacation policy and applicable law. 

(g)       Termination of Benefits.  Except as set forth in Section 3 or as otherwise specified herein or in any other agreement between the Executive and the Company, if the Executive’s employment is terminated by the Company for any reason, with or without Cause (as defined below), or if the Executive resigns the Executive’s employment voluntarily, with or without Good Reason (as defined below), no compensation or other payments will be paid or provided to the Executive for periods following the date when such a termination of employment is effective, provided that any rights the Executive may have under the Company’s benefit plans shall be determined under the provisions of such plans.  If the Executive’s employment terminates as a result of the Executive’s death or disability, no compensation or payments will be made to the Executive other than those to which the Executive may otherwise be entitled under the benefit plans of the Company.

3.         Compensation and Benefits Upon Termination of Employment.  Upon termination of the Executive’s employment (such date of termination being referred to as the “Termination Date”), the Company will pay the Executive the compensation and benefits as described in this Section 3.

(a)       General Benefits Upon Termination.  The Company will pay the Executive on or about the Termination Date all salary and vacation/personal time off pay, if any, that has been earned or accrued through the Termination Date and that has not been previously paid.

(b)       Termination without “Cause” or for “Good Reason”.  In the event that the Company terminates the Executive’s employment without Cause (as defined below) after the first anniversary of the Effective Date or, in the event the Executive terminates his employment for Good Reason (as defined below), in each case, (i) the Executive shall be entitled to receive (A) continuing payments of the then effective Base Salary for a period of nine (9) months beginning on the Payment Commencement Date and payable in accordance with the Company’s payroll policies and (B) the benefits set forth in Section 3(e), and (ii) the Executive shall be entitled to acceleration of vesting of such number of Option Shares and time based restricted stock unit grants then held by Executive as would have vested in the nine (9)month period following the Termination Date had the Executive continued to be employed by the Company for such period, provided, however that in each case the receipt of such payments and benefits is expressly contingent upon the Executive’s execution and delivery of a severance and release of claims agreement drafted by and satisfactory to counsel for the Company (the “Release”) which Release must be executed and become effective within sixty (60) days following the Termination Date.  The payments and benefits shall be paid or commence on the first payroll period following the date the Release becomes effective (the “Payment Commencement Date”).  Notwithstanding the foregoing, if the 60th day following the Termination Date occurs in the calendar year following the termination, then the Payment Commencement Date shall be no earlier than January 1st of such subsequent calendar year.  The provision of payments and benefits pursuant to this Section shall be subject to the terms and conditions set forth on Exhibit A.

(c)       Termination without “Cause” or for “Good Reason” Prior to or Following a  Change of Control.  In the event that the Company terminates the Executive’s employment without Cause (as defined below) or, in the event the Executive terminates his employment for Good Reason (as defined below), in each case, within thirty (30) days prior to, or twelve (12) months following, the consummation of a Change of Control, then (i) the Executive shall be entitled to receive (A) continuing payments of the then effective Base Salary for a period of  twelve (12) months beginning on the Payment Commencement Date and payable in accordance with the Company’s payroll policies, (B) in lieu of the Targeted Incentive Bonus, a bonus payment in the amount of Fifty percent (50%) of Executive’s then current Base Salary payable in one lump sum on the Payment Commencement Date and (C) the benefits set forth in Section 3(e), and (ii) acceleration of vesting of one hundred percent (100%) of the then unvested Option Shares and time-based restricted stock unit grants then held by Executive, provided, however that in each case: (x), the receipt of such payments and benefits is expressly contingent upon the Executive’s execution and delivery of a Release as described above drafted by and satisfactory to counsel for the Company, which Release must be executed and become effective within sixty (60) days following the Termination Date.  The provision of payments and benefits pursuant to this Section shall be subject to the terms and conditions set forth in Exhibit A.

(d)       Definitions.  

            (i)        “Change of Control” means (A) a merger or consolidation of either the Company or Pacira, Inc., a Delaware corporation (“Parent”) into another entity in which the stockholders of the Company or Parent (as applicable) do not control fifty percent (50%) or more of the total voting power of the surviving entity (other than a reincorporation merger);  (B) the sale, transfer or other disposition of all or substantially all of the Company’s assets in liquidation or dissolution of the Company; or (C) the sale or transfer of more than fifty percent (50%) of the outstanding voting stock of the Company.  In the case of each of the foregoing clauses (A), (B) and (C), a Change of Control as a result of a financing transaction of the Company or Parent shall not constitute a Change of Control for purposes of this Agreement.

            (ii)       “Cause” means (A) the Executive’s failure to substantially perform his duties to the Company after there has been delivered to the Executive written notice setting forth in detail the specific respects in which the Board believes that the Executive has not substantially performed his duties and, if the Company reasonably considers the situation to be correctable, a demand for substantial performance and opportunity to cure, giving the Executive thirty (30) calendar days after he receives such notice to correct the situation; (B) the Executive’s having engaged in fraud, misconduct, dishonesty, gross negligence or having otherwise acted in a manner injurious to the Company or in intentional disregard for the Company’s best interests; (C) the Executive’s failure to follow reasonable and lawful instructions from the Board and the Executive’s failure to cure such failure after receiving twenty (20) days advance written notice; (D) the Executive’s material breach of the terms of this Agreement or the Employee Confidential Information and Inventions Assignment Agreement or any other similar agreement that may be in effect from time to time; or (E) the Executive’s conviction of, or pleading guilty or nolo contendere to, any misdemeanor involving dishonesty or moral turpitude or related to the Company’s business, or any felony.

            (iii)      “Good Reason” means the occurrence of any one or more of the following events without the prior written consent of the Executive:  (A) any material reduction of the then effective Base Salary other than in accordance with this Agreement or which reduction is not related to a cross-executive team salary reduction; (B) any material breach by the Company of this Agreement; or (C) a material reduction in the Executive’s responsibilities or duties, provided that in the case of clause (C), a mere reassignment following a Change of Control to a position that is substantially similar to the position held prior to the Change of Control transaction shall not constitute a material reduction in job responsibilities or duties; provided, however, that no such event or condition shall constitute Good Reason unless (x) the Executive gives the Company a written notice of termination for Good Reason not more than ninety (90) days after the initial existence of the condition, (y) the grounds for termination (if susceptible to correction) are not corrected by the Company within thirty (30) days of its receipt of such notice and (z) the Termination Date occurs within one (1) year following the Company’s receipt of such notice.
 

(e)       Benefits Continuation.  If the Executive’s employment is terminated pursuant to Section 3(b) or Section 3(c) and provided that the Executive is eligible for and elects to continue receiving group health and dental insurance pursuant to the federal “COBRA” law, 29 U.S.C. § 1161 et seq., the Company will, for a twelve (12) month period following the Payment Commencement Date (the “Benefits Continuation Period”), continue to pay the share of the premium for such coverage that is paid by the Company for active and similarly-situated employees who receive the same type of coverage.  The remaining balance of any premium costs shall be paid by the Executive on a monthly basis for as long as, and to the extent that, the Executive remains eligible for COBRA continuation.  Notwithstanding the above, in the event the Executive becomes eligible for health insurance benefits from a new employer during the Benefits Continuation Period, the Company’s obligations under this Section 3(e) shall immediately cease and the Executive shall not be entitled to any additional monthly premium payments for health insurance coverage.  Similarly, in the event the Executive becomes eligible for dental insurance benefits from a new employer during the Benefits Continuation Period, the Company’s obligations under this Section 3(e) shall immediately cease and the Executive shall not be entitled to any additional monthly premium payments for dental insurance.  The Executive hereby represents that he will notify the Company in writing within three (3) days of becoming eligible for health or dental insurance benefits from a new employer during the Benefits Continuation Period.

(f)        Death.  This Agreement shall automatically terminate upon the death of the Executive and all monetary obligations of Company under Section 2 of this Agreement shall be prorated to the date of death and paid to the Executive’s estate.

(g)       Disability.  The Company may terminate the Executive’s employment if the Executive is unable to perform any of the duties required under this Agreement for a period of three (3) consecutive months due to a “Total and Permanent Disability”.  The term “Total and Permanent Disability” shall mean the existence of a permanent physical or mental illness or injury, which renders the Executive incapable of performing any material obligations or terms of this Agreement.  Any dispute regarding the existence of a Total and Permanent Disability shall be resolved by a panel of three (3) physicians, one selected by Company, one selected by the Executive, and the third selected by the other two physicians.  A termination of employment pursuant to this Section 3(f) shall constitute a termination for Cause.

4.         At-Will Employment.  The Executive will be an “at-will” employee of the Company, which means the employment relationship can be terminated by either the Executive or the Company for any reason, at any time, with or without prior notice and with or without cause.  The Company makes no promise that the Executive’s employment will continue for any particular period of time, nor is there any promise that it will be terminated only under particular circumstances.  No raise or bonus, if any, shall alter the Executive’s status as an “at-will” employee or create any implied contract of employment.  Discussion of possible or potential benefits in future years is not an express or implied promise of continued employment.  No manager, supervisor or officer of the Company has the authority to change the Executive’s status as an “at-will” employee.  The “at-will” nature of the employment relationship with the Executive can only be altered by a written resolution approved by the Board.

5.         Non-Solicitation.

(a)       Non-Solicit.  The Executive agrees that during the term of the Executive’s employment with the Company, and for a period of twelve (12) months immediately following the termination of the Executive’s employment with the Company for any reason, whether with or without Cause or Good Reason, the Executive shall not either directly or indirectly solicit, induce, recruit or encourage any of the Company’s or its affiliates’ employees or consultants to terminate such employee’s or consultant’s relationship with the Company or its affiliates, or attempt to solicit, induce, recruit, encourage or take away employees or consultants of the Company or any of its affiliates, either for the Executive or for any other person or entity.  Further, during the Executive’s employment with the Company or any of its affiliates and at any time following termination of the Executive’s employment with the Company or any of its affiliates for any reason, with or without Cause or Good Reason, the Executive shall not use any confidential information of the Company or any of its affiliates to attempt to negatively influence any of the Company’s or any of its affiliates’ clients or customers from purchasing Company products or services or to solicit or influence or attempt to influence any client, customer or other person either directly or indirectly, to direct such 

person’s or entity’s purchase of products and/or services to any person, firm, corporation, institution or other entity in competition with the business of the Company or any of its affiliates.

(b)       Specific Performance.  In the event of the breach or threatened breach by the Executive of this Section 5, the Company, in addition to all other remedies available to it at law or in equity, will be entitled to seek injunctive relief and/or specific performance to enforce this Section 5.

6.         Director and Officer Liability Insurance; Indemnification.  During the term of the Executive’s employment hereunder, the Executive shall be entitled to the same indemnification and director and officer liability insurance as the Company and its affiliates maintain for other corporate officers.

7.         Confidential Information and Inventions Assignment Agreement.  The Executive has executed and delivered the Company’s standard Employee Confidential Information and Inventions Assignment Agreement or similar agreement and the Executive represents and warrants that the Executive shall continue to be bound and abide by such Employee Confidential Information and Inventions Assignment Agreement or similar agreement.

8.         Attention to Duties; Conflict of Interest.  While employed by the Company, the Executive shall devote the Executive’s full business time, energy and abilities exclusively to the business and interests of the Company, and shall perform all duties and services in a faithful and diligent manner and to the best of the Executive’s abilities. The Executive shall not, without the Company’s prior written consent, render to others services of any kind for compensation, or engage in any other business activity that would materially interfere with the performance of the Executive’s duties under this Agreement. The Executive represents that the Executive has no other outstanding commitments inconsistent with any of the terms of this Agreement or the services to be rendered to the Company.  While employed by the Company, the Executive shall not, directly or indirectly, whether as a partner, employee, creditor, shareholder, or otherwise, promote, participate or engage in any activity or other business competitive with the Company’s business. The Executive shall not invest in any company or business which competes in any manner with the Company, except those companies whose securities are listed on reputable securities exchanges in the United States or European Union. 

9.         Miscellaneous.

(a)       Severability.  If any provision of this Agreement shall be found by any arbitrator or court of competent jurisdiction to be invalid or unenforceable, then the parties hereby waive such provision to the extent that it is found to be invalid or unenforceable and to the extent that to do so would not deprive one of the parties of the substantial benefit of its bargain.  Such provision shall, to the extent allowable by law and the preceding sentence, be modified by such arbitrator or court so that it becomes enforceable and, as modified, shall be enforced as any other provision hereof, all the other provisions continuing in full force and effect.

(b)       No Waiver.  The failure by either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way affect the right to require such performance or compliance at any time thereafter.  The waiver by either party of a breach of any provision hereof shall not be taken or held to be a waiver of any preceding or succeeding breach of such provision or as a waiver of the provision itself.  No waiver of any kind shall be effective or binding, unless it is in writing and is signed by the party against whom such waiver is sought to be enforced.

(c)       Assignment.  This Agreement and all rights hereunder are personal to the Executive and may not be transferred or assigned by the Executive at any time.  The Company may assign its rights, together with its obligations hereunder, to any parent, subsidiary, affiliate or successor, or in connection with any sale, transfer or other disposition of all or substantially all of its business and assets; provided, however, that any such assignee assumes the Company’s obligations hereunder.

(d)       Withholding.  All sums payable to the Executive hereunder shall be reduced by all federal, state, local and other withholding and similar taxes and payments required by applicable law.

(e)       Entire Agreement.  This Agreement, including the agreements referred to herein (which are deemed incorporated by reference herein) constitute the entire and only agreement and understanding between the parties governing the terms and conditions of employment of the Executive with the Company and this Agreement supersedes and cancels any and all previous contracts, arrangements or understandings with governing the terms and conditions of the Executive’s employment by the Company. In the event of any conflict between the terms of any other agreement between the Executive and the Company entered into prior to the Effective Date, the terms of this Agreement shall control.

(f)        Amendment.  This Agreement may be amended, modified, superseded, cancelled, renewed or extended only by an agreement in writing executed by both parties hereto.

(g) Headings.  The headings contained in this Agreement are for reference purposes only and shall in no way affect the meaning or interpretation of this Agreement.  In this Agreement, the singular includes the plural, the plural included the singular, the masculine gender includes both male and female referents, and the word “or” is used in the inclusive sense.

(h)       Notices.  Any notices provided hereunder must be in writing and shall be deemed effective upon the earlier of personal delivery (including, personal delivery by facsimile transmission or the third day after mailing by first class mail) to the Company at its primary office location and to the Executive at his address as listed on the Company payroll (which address may be changed by written notice).

(i)        Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which, taken together, constitute one and the same agreement.

(j)         Governing Law, Forum Selection, Jury Waiver.  This Agreement and the rights and obligations of the parties hereto shall be construed in accordance with the laws of the State of California without giving effect to the principles of conflict of laws.  Any action, suit or other legal proceeding that is commenced to resolve any matter arising under or relating to any provision of this Agreement shall be commenced only in a court of the State of New Jersey (or, if appropriate, a federal court located within Southern District of Jersey), and the Company and the Executive each consents to the jurisdiction of such a court.  Both the Company and the Executive expressly waive any right that any party either has or may have to a jury trial of any dispute arising out of or in any way related to the Executive’s employment with or termination from the Company.

[Remainder of Page Intentionally Left Blank]

IN WITNESS WHEREOF, the Company and the Executive have executed this Executive Employment Agreement as of the date first above written.

PACIRA PHARMACEUTICALS, INC.:

By: /s/ Rich Kahr
Vice President, Human Resources

EXECUTIVE:

/s/ Jonathan Slonin

EXHIBIT A

Payments Subject to Section 409A

1.         Subject to this Exhibit A, any severance payments and benefits that may be due under the Agreement shall begin only upon the date of the Executive’s “separation from service” (determined as set forth below) which occurs on or after the termination of the Executive’s employment.  The following rules shall apply with respect to distribution of the severance payments and benefits, if any, to be provided to the Executive under the Agreement, as applicable:

(a)        It is intended that each installment of the severance payments and benefits under the Agreement provided under shall be treated as a separate “payment” for purposes of Section 409A.  Neither the Company nor the Executive shall have the right to accelerate or defer the delivery of any such payments or benefits except to the extent specifically permitted or required by Section 409A.

(b)        If, as of the date of the Executive’s “separation from service” from the Company, the Executive is not a “specified employee” (within the meaning of Section 409A), then each installment of the severance payments or benefits shall be made on the dates and terms set forth in the Agreement.

(c)        If, as of the date of the Executive’s “separation from service” from the Company, the Executive is a “specified employee” (within the meaning of Section 409A), then:

(i)         Each installment of the severance payments and benefits due under the Agreement that, in accordance with the dates and terms set forth herein, will in all circumstances, regardless of when the Executive’s separation from service occurs, be paid within the short-term deferral period (as defined under Section 409A) shall be treated as a short-term deferral within the meaning of Treasury Regulation Section 1.409A-1(b)(4) to the maximum extent permissible under Section 409A and shall be paid at the time set forth in the Agreement; and

(ii)       Each installment of the severance payments and benefits due under the Agreement that is not described in this Exhibit A, Section 1(c)(i) and that would, absent this subsection, be paid within the six-month period following the Executive’s “separation from service” from the Company shall not be paid until the date that is six months and one day after such separation from service (or, if earlier, the Executive’s death), with any such installments that are required to be delayed being accumulated during the six-month period and paid in a lump sum on the date that is six months and one day following the Executive’s separation from service and any subsequent installments, if any, being paid in accordance with the dates and terms set forth herein; provided, however, that the preceding provisions of this sentence shall not apply to any installment of payments and benefits if and to the maximum extent that that such installment is deemed to be paid under a separation pay plan that does not provide for a deferral of compensation by reason of the application of Treasury Regulation 1.409A-1(b)(9)(iii) (relating to separation pay upon an involuntary separation from service).  Any installments that qualify for the exception under Treasury Regulation Section 1.409A-1(b)(9)(iii) must be paid no later than the last day of the Executive’s second taxable year following the taxable year in which the separation from service occurs.

2.         The determination of whether and when the Executive’s separation from service from the Company has occurred shall be made and in a manner consistent with, and based on the presumptions set forth in, Treasury Regulation Section 1.409A-1(h).  Solely for purposes of this Exhibit A, Section 2, “Company” shall include all persons with whom the Company would be considered a single employer under Section 414(b) and 414(c) of the Code.

3.         The Company makes no representation or warranty and shall have no liability to the Executive or to any other person if any of the provisions of the Agreement (including this Exhibit) are determined to constitute deferred compensation subject to Section 409A but that do not satisfy an exemption from, or the conditions of, that section.Exhibit
4.1

 

2017
INCENTIVE STOCK PLAN

 

This
2017 Incentive Stock Plan (the “Plan”) of Titan Computer Services, Inc., make available the amount of 3,000,000 shares
of common stock authorized but unissued. It is designed to retain directors, executives and selected employees and consultants and reward
them for making major contributions to the success of the Company. These objectives are accomplished by making long-term incentive awards
under the Plan thereby providing Participants with a proprietary interest in the growth and performance of the Company. The Company,
in its sole discretion, may authorize and file a Form S-8 Registration Statement covering the shares issued under the Plan if it is eligible
to file such a plan.

 

	1.	Definitions.

 

	(a)	“Board”
                                            - The Board of Directors of the Company.

 

	(b)	“Code”
                                            - The Internal Revenue Code of 1986, as amended from time to time.

 

	(c)	“Committee”
                                            - The Compensation Committee of the Company’s Board, or such other committee of the
                                            Board that is designated by the Board to administer the Plan, composed of not less than one
                                            member of the Board all of whom are disinterested persons, as contemplated by Rule 16b-3
                                            (“Rule 16b-3”) promulgated under the Securities Exchange Act of 1934, as amended
                                            (the “Exchange Act”).

 

	(d)	“Company”
                                            - Titan Computer Services, Inc. and its subsidiaries including subsidiaries of subsidiaries.

 

	(e)	“Exchange
                                            Act” - The Securities Exchange Act of 1934, as amended from time to time.

 

	(f)	“Fair
                                            Market Value” - The fair market value of the Company’s issued and outstanding
                                            Stock as determined in good faith by the Board or Committee.

 

	(g)	“Grant”
                                            - The grant of any form of stock option, stock award, or stock purchase offer, whether granted
                                            singly, in combination or in tandem, to a Participant pursuant to such terms, conditions
                                            and limitations as the Committee may establish in order to fulfill the objectives of the
                                            Plan.

 

	(h)	“Grant
                                            Agreement” - An agreement between the Company and a Participant that sets forth the
                                            terms, conditions and limitations applicable to a Grant.

 

	(i)	“Option”
                                            - Either an Incentive Stock Option, in accordance with Section 422 of Code, or a Nonstatutory
                                            Option, to purchase the Company’s Stock that may be awarded to a Participant under
                                            the Plan. A Participant who receives an award of an Option shall be referred to as an “Optionee.”

 

	(j)	“Participant”
                                            - A director, officer, employee or consultant of the Company to whom an Award has been made
                                            under the Plan.

 

	(k)	“Restricted
                                            Stock Purchase Offer” - A Grant of the right to purchase a specified number of shares
                                            of Stock pursuant to a written agreement issued under the Plan.

 

	(l)	“Securities
                                            Act” - The Securities Act of 1933, as amended from time to time.

 

	(m)	“Stock”
                                            - Authorized and issued or unissued shares of common stock of the Company.

 

	(n)	“Stock
                                            Award” - A Grant made under the Plan in stock or denominated in units of stock for
                                            which the Participant is not obligated to pay additional consideration.

 

    	 

    	 

    

 

	2.	Administration.
                                            The Plan shall be administered by the Board, provided however, that the Board may delegate
                                            such administration to the Committee. Subject to the provisions of the Plan, the Board and/or
                                            the Committee shall have authority to (a) grant, in its discretion, Incentive Stock Options
                                            in accordance with Section 422 of the Code, or Nonstatutory Options, Stock Awards or Restricted
                                            Stock Purchase Offers; (b) determine in good faith the fair market value of the Stock covered
                                            by any Grant; (c) determine which eligible persons shall receive Grants and the number of
                                            shares, restrictions, terms and conditions to be included in such Grants; (d) construe and
                                            interpret the Plan; (e) promulgate, amend and rescind rules and regulations relating to its
                                            administration, and correct defects, omissions and inconsistencies in the Plan or any Grant;
                                            (f) consistent with the Plan and with the consent of the Participant, as appropriate, amend
                                            any outstanding Grant or amend the exercise date or dates thereof; (g) determine the duration
                                            and purpose of leaves of absence which may be granted to Participants without constituting
                                            termination of their employment for the purpose of the Plan or any Grant; and (h) make all
                                            other determinations necessary or advisable for the Plan’s administration. The interpretation
                                            and construction by the Board of any provisions of the Plan or selection of Participants
                                            shall be conclusive and final. No member of the Board or the Committee shall be liable for
                                            any action or determination made in good faith with respect to the Plan or any Grant made
                                            thereunder.

 

	3.	Eligibility.

 

	(a)	General:
                                            The persons who shall be eligible to receive Grants shall be directors, officers, employees
                                            or consultants to the Company. The term consultant shall mean any person, other than an employee,
                                            who is engaged by the Company to render services and is compensated for such services. An
                                            Optionee may hold more than one Option. Any issuance of a Grant to an officer or director
                                            of the Company subsequent to the first registration of any of the securities of the Company
                                            under the Exchange Act shall comply with the requirements of Rule 16b-3.

 

	(b)	Incentive
                                            Stock Options: Incentive Stock Options may only be issued to employees of the Company.
                                            Incentive Stock Options may be granted to officers or directors, provided they are also employees
                                            of the Company. Payment of a director’s fee shall not be sufficient to constitute employment
                                            by the Company. The Company shall not grant an Incentive Stock Option under the Plan to any
                                            employee if such Grant would result in such employee holding the right to exercise for the
                                            first time in any one calendar year, under all Incentive Stock Options granted under the
                                            Plan or any other plan maintained by the Company, with respect to shares of Stock having
                                            an aggregate fair market value, determined as of the date of the Option is granted, in excess
                                            of $100,000. Should it be determined that an Incentive Stock Option granted under the Plan
                                            exceeds such maximum for any reason other than a failure in good faith to value the Stock
                                            subject to such option, the excess portion of such option shall be considered a Nonstatutory
                                            Option. To the extent the employee holds two (2) or more such Options which become exercisable
                                            for the first time in the same calendar year, the foregoing limitation on the exercisability
                                            of such Option as Incentive Stock Options under the Federal tax laws shall be applied on
                                            the basis of the order in which such Options are granted. If, for any reason, an entire Option
                                            does not qualify as an Incentive Stock Option by reason of exceeding such maximum, such Option
                                            shall be considered a Nonstatutory Option.

 

	(c)	Nonstatutory
                                            Option: The provisions of the foregoing Section 3(b) shall not apply to any Option designated
                                            as a “Nonstatutory Option” or which sets forth the intention of the parties that
                                            the Option be a Nonstatutory Option.

 

	(d)	Stock
                                            Awards and Restricted Stock Purchase Offers: The provisions of this Section 3 shall not
                                            apply to any Stock Award or Restricted Stock Purchase Offer under the Plan.

 

	4.	Stock.

 

	(a)	Authorized
                                            Stock: Stock subject to Grants may be either unissued or reacquired Stock.

 

	(b)	Number
                                            of Shares: Subject to adjustment as provided in Section 5(i) of the Plan, the total number
                                            of shares of Stock which may be purchased or granted directly by Options, Stock Awards or
                                            Restricted Stock Purchase Offers, or purchased indirectly through exercise of Options granted
                                            under the Plan shall not exceed 3,000,000. If any Grant shall for any reason terminate or
                                            expire, any shares allocated thereto but remaining unpurchased upon such expiration or termination
                                            shall again be available for Grants with respect thereto under the Plan as though no Grant
                                            had previously occurred with respect to such shares. Any shares of Stock issued pursuant
                                            to a Grant and repurchased pursuant to the terms thereof shall be available for future Grants
                                            as though not previously covered by a Grant.

 

    	 

    	 

    

 

	(c)	Reservation
                                            of Shares: The Company shall reserve and keep available at all times during the term
                                            of the Plan such number of shares as shall be sufficient to satisfy the requirements of the
                                            Plan. If, after reasonable efforts, which efforts shall not include the registration of the
                                            Plan or Grants under the Securities Act, the Company is unable to obtain authority from any
                                            applicable regulatory body, which authorization is deemed necessary by legal counsel for
                                            the Company for the lawful issuance of shares hereunder, the Company shall be relieved of
                                            any liability with respect to its failure to issue and sell the shares for which such requisite
                                            authority was so deemed necessary unless and until such authority is obtained.

 

	(d)	Application
                                            of Funds: The proceeds received by the Company from the sale of Stock pursuant to the
                                            exercise of Options or rights under Stock Purchase Agreements will be used for general corporate
                                            purposes.

 

	(e)	No
                                            Obligation to Exercise: The issuance of a Grant shall impose no obligation upon the Participant
                                            to exercise any rights under such Grant.

 

	5.	Terms
                                            and Conditions of Options. Options granted hereunder shall be evidenced by agreements
                                            between the Company and the respective Optionees, in such form and substance as the Board
                                            or Committee shall from time to time approve. The form of Incentive Stock Option Agreement
                                            and the forms of a Nonstatutory Stock Option Agreement for employees, for directors and for
                                            consultants, shall be prepared for each issuance. Option agreements need not be identical,
                                            and in each case may include such provisions as the Board or Committee may determine, but
                                            all such agreements shall be subject to and limited by the following terms and conditions:

 

	(a)	Number
                                            of Shares: Each Option shall state the number of shares to which it pertains.

 

	(b)	Exercise
                                            Price: Each Option shall state the exercise price, which shall be determined as follows:

 

	i.	Any
                                            Incentive Stock Option granted to a person who at the time the Option is granted owns (or
                                            is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than ten percent
                                            (10%) of the total combined voting power or value of all classes of stock of the Company
                                            (“Ten Percent Holder”) shall have an exercise price of no less than 110% of the
                                            Fair Market Value of the Stock as of the date of grant; and

 

	ii.	Incentive
                                            Stock Options granted to a person who at the time the Option is granted is not a Ten Percent
                                            Holder shall have an exercise price of no less than 100% of the Fair Market Value of the
                                            Stock as of the date of grant.

 

For
the purposes of this Section 5(b), the Fair Market Value shall be as determined by the Board in good faith, which determination shall
be conclusive and binding; provided however, that if there is a public market for such Stock, the Fair Market Value per share shall be
the average of the bid and asked prices (or the closing price if such stock is listed on the NASDAQ National Market System or Small Cap
Issue Market) on the date of grant of the Option, or if listed on a stock exchange, the closing price on such exchange on such date of
grant.

 

	(c)	Medium
                                            and Time of Payment: The exercise price shall become immediately due upon exercise of
                                            the Option and shall be paid in cash or check made payable to the Company. Should the Company’s
                                            outstanding Stock be registered under Section 12(g) of the Exchange Act at the time the Option
                                            is exercised, then the exercise price may also be paid as follows:

 

	i.	in
                                            shares of Stock held by the Optionee for the requisite period necessary to avoid a charge
                                            to the Company’s earnings for financial reporting purposes and valued at Fair Market
                                            Value on the exercise date, or

 

	ii.	through
                                            a special sale and remittance procedure pursuant to which the Optionee shall concurrently
                                            provide irrevocable written instructions (a) to a Company designated brokerage firm to effect
                                            the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds
                                            available on the settlement date, sufficient funds to cover the aggregate exercise price
                                            payable for the purchased shares plus all applicable Federal, state and local income and
                                            employment taxes required to be withheld by the Company by reason of such purchase and (b)
                                            to the Company to deliver the certificates for the purchased shares directly to such brokerage
                                            firm in order to complete the sale transaction.

 

    	 

    	 

    

 

At
the discretion of the Board, exercisable either at the time of Option grant or of Option exercise, the exercise price may also be paid
(i) by Optionee’s delivery of a promissory note in form and substance satisfactory to the Company and permissible under applicable
securities rules and bearing interest at a rate determined by the Board in its sole discretion, but in no event less than the minimum
rate of interest required to avoid the imputation of compensation income to the Optionee under the Federal tax laws, or (ii) in such
other form of consideration permitted by the State of New York corporations law as may be acceptable to the Board.

 

	(d)	Term
    and Exercise of Options: Any Option granted to an employee of the Company shall become exercisable over a period of no longer
    than five (5) years and no less than twenty percent (20%) of the shares covered thereby shall become exercisable annually unless
    the Board determines otherwise. No Option shall be exercisable, in whole or in part, prior to one (1) year from the date it is granted
    unless the Board shall specifically determine otherwise, as provided herein. In no event shall any Option be exercisable after the
    expiration of ten (10) years from the date it is granted, and no Incentive Stock Option granted to a Ten Percent Holder shall, by
    its terms, be exercisable after the expiration of five (5) years from the date of the Option. Unless otherwise specified by the Board
    or the Committee in the resolution authorizing such Option, the date of grant of an Option shall be deemed to be the date upon which
    the Board or the Committee authorizes the granting of such Option. Each Option shall be exercisable to the nearest whole share, in
    installments or otherwise, as the respective Option agreements may provide. During the lifetime of an Optionee, the Option shall
    be exercisable only by the Optionee and shall not be assignable or transferable by the Optionee, and no other person shall acquire
    any rights therein. To the extent not exercised, installments (if more than one) shall accumulate, but shall be exercisable, in whole
    or in part, only during the period for exercise as stated in the Option agreement, whether or not other installments are then exercisable.

 

	(e)	Termination
                                            of Status as Employee, Consultant or Director: If Optionee’s status as an employee
                                            shall terminate for any reason other than Optionee’s disability or death, then Optionee
                                            (or if the Optionee shall die after such termination, but prior to exercise, Optionee’s
                                            personal representative or the person entitled to succeed to the Option) shall have the right
                                            to exercise the portions of any of Optionee’s Incentive Stock Options which were exercisable
                                            as of the date of such termination, in whole or in part, not less than 30 days nor more than
                                            three (3) months after such termination (or, in the event of “termination for good
                                            cause” as that term is defined in New York case law related thereto, or by the terms
                                            of the Plan or the Option Agreement or an employment agreement, the Option shall automatically
                                            terminate as of the termination of employment as to all shares covered by the Option). With
                                            respect to Nonstatutory Options granted to employees, directors or consultants, the Board
                                            may specify such period for exercise, not less than 30 days (except that in the case of “termination
                                            for cause” or removal of a director, the Option shall automatically terminate as of
                                            the termination of employment or services as to shares covered by the Option, following termination
                                            of employment or services as the Board deems reasonable and appropriate. The Option may be
                                            exercised only with respect to installments that the Optionee could have exercised at the
                                            date of termination of employment or services. Nothing contained herein or in any Option
                                            granted pursuant hereto shall be construed to affect or restrict in any way the right of
                                            the Company to terminate the employment or services of an Optionee with or without cause.

 

	(f)	Disability
                                            of Optionee: If an Optionee is disabled (within the meaning of Section 22(e)(3) of the
                                            Code) at the time of termination, the three (3) month period set forth in Section 5(e) shall
                                            be a period, as determined by the Board and set forth in the Option, of not less than six
                                            months nor more than one year after such termination.

 

	(g)	Death
                                            of Optionee: If an Optionee dies while employed by, engaged as a consultant to, or serving
                                            as a Director of the Company, the portion of such Optionee’s Option which was exercisable
                                            at the date of death may be exercised, in whole or in part, by the estate of the decedent
                                            or by a person succeeding to the right to exercise such Option at any time within (i) a period,
                                            as determined by the Board and set forth in the Option, of not less than six (6) months nor
                                            more than one (1) year after Optionee’s death, which period shall not be more, in the
                                            case of a Nonstatutory Option, than the period for exercise following termination of employment
                                            or services, or

 

    	 

    	 

    

 

(ii)
during the remaining term of the Option, whichever is the lesser. The Option may be so exercised only with respect to installments exercisable
at the time of Optionee’s death and not previously exercised by the Optionee.

 

	(h)	Nontransferability
                                            of Option: No Option shall be transferable by the Optionee, except by will or by the
                                            laws of descent and distribution.

 

	(i)	Recapitalization:
                                            Subject to any required action of shareholders, the number of shares of Stock covered by
                                            each outstanding Option, and the exercise price per share thereof set forth in each such
                                            Option, shall be proportionately adjusted for any increase or decrease in the number of issued
                                            shares of Stock of the Company resulting from a stock split, stock dividend, combination,
                                            subdivision or reclassification of shares, or the payment of a stock dividend, or any other
                                            increase or decrease in the number of such shares affected without receipt of consideration
                                            by the Company; provided, however, the conversion of any convertible securities of the Company
                                            shall not be deemed to have been “effected without receipt of consideration”
                                            by the Company.

 

In
the event of a proposed dissolution or liquidation of the Company, a merger or consolidation in which the Company is not the surviving
entity, or a sale of all or substantially all of the assets or capital stock of the Company (collectively, a “Reorganization”),
unless otherwise provided by the Board, this Option shall terminate immediately prior to such date as is determined by the Board, which
date shall be no later than the consummation of such Reorganization. In such event, if the entity which shall be the surviving entity
does not tender to Optionee an offer, for which it has no obligation to do so, to substitute for any unexercised Option a stock option
or capital stock of such surviving of such surviving entity, as applicable, which on an equitable basis shall provide the Optionee with
substantially the same economic benefit as such unexercised Option, then the Board may grant to such Optionee, in its sole and absolute
discretion and without obligation, the right for a period commencing thirty (30) days prior to and ending immediately prior to the date
determined by the Board pursuant hereto for termination of the Option or during the remaining term of the Option, whichever is the lesser,
to exercise any unexpired Option or Options without regard to the installment provisions of Paragraph 6(d) of the Plan; provided, that
any such right granted shall be granted to all Optionees not receiving an offer to receive substitute options on a consistent basis,
and provided further, that any such exercise shall be subject to the consummation of such Reorganization.

 

Subject
to any required action of shareholders, if the Company shall be the surviving entity in any merger or consolidation, each outstanding
Option thereafter shall pertain to and apply to the securities to which a holder of shares of Stock equal to the shares subject to the
Option would have been entitled by reason of such merger or consolidation.

 

In
the event of a change in the Stock of the Company as presently constituted, which is limited to a change of all of its authorized shares
without par value into the same number of shares with a par value, the shares resulting from any such change shall be deemed to be the
Stock within the meaning of the Plan.

 

To
the extent that the foregoing adjustments relate to stock or securities of the Company, such adjustments shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.

 

Except
as expressly provided in this Section 5(i), the Optionee shall have no rights by reason of any subdivision or consolidation of shares
of stock of any class or the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any
class, and the number or price of shares of Stock subject to any Option shall not be affected by, and no adjustment shall be made by
reason of, any dissolution, liquidation, merger, consolidation or sale of assets or capital stock, or any issue by the Company of shares
of stock of any class or securities convertible into shares of stock of any class.

 

The
Grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make any adjustments, reclassifications,
reorganizations or changes in 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.

 

	(j)	Rights
                                            as a Shareholder: An Optionee shall have no rights as a shareholder with respect to any
                                            shares covered by an Option until the effective date of the issuance of the shares following
                                            exercise of such Option by Optionee. No adjustment shall be made for dividends (ordinary
                                            or extraordinary, whether in cash, securities or other property) or distributions or other
                                            rights for which the record date is prior to the date such stock certificate is issued, except
                                            as expressly provided in Section 5(i) hereof.

 

    	 

    	 

    

 

	(k)	Modification,
                                            Acceleration, Extension, and Renewal of Options: Subject to the terms and conditions
                                            and within the limitations of the Plan, the Board may modify an Option, or, once an Option
                                            is exercisable, accelerate the rate at which it may be exercised, and may extend or renew
                                            outstanding Options granted under the Plan or accept the surrender of outstanding Options
                                            (to the extent not theretofore exercised) and authorize the granting of new Options in substitution
                                            for such Options, provided such action is permissible under Section 422 of the Code and applicable
                                            state securities rules. Notwithstanding the provisions of this Section 5(k), however, no
                                            modification of an Option shall, without the consent of the Optionee, alter to the Optionee’s
                                            detriment or impair any rights or obligations under any Option theretofore granted under
                                            the Plan.

 

	(l)	Exercise
                                            Before Exercise Date: At the discretion of the Board, the Option may, but need not, include
                                            a provision whereby the Optionee may elect to exercise all or any portion of the Option prior
                                            to the stated exercise date of the Option or any installment thereof. Any shares so purchased
                                            prior to the stated exercise date shall be subject to repurchase by the Company upon termination
                                            of Optionee’s employment as contemplated by Section 5(n) hereof prior to the exercise
                                            date stated in the Option and such other restrictions and conditions as the Board or Committee
                                            may deem advisable.

 

	(m)	Other
                                            Provisions: The Option agreements authorized under the Plan shall contain such other
                                            provisions, including, without limitation, restrictions upon the exercise of the Options,
                                            as the Board or the Committee shall deem advisable. Shares shall not be issued pursuant to
                                            the exercise of an Option, if the exercise of such Option or the issuance of shares thereunder
                                            would violate, in the opinion of legal counsel for the Company, the provisions of any applicable
                                            law or the rules or regulations of any applicable governmental or administrative agency or
                                            body, such as the Code, the Securities Act, the Exchange Act, applicable state securities
                                            rules, New York corporation law, and the rules promulgated under the foregoing or the rules
                                            and regulations of any exchange upon which the shares of the Company are listed. Without
                                            limiting the generality of the foregoing, the exercise of each Option shall be subject to
                                            the condition that if at any time the Company shall determine that (i) the satisfaction of
                                            withholding tax or other similar liabilities, or (ii) the listing, registration or qualification
                                            of any shares covered by such exercise upon any securities exchange or under any state or
                                            federal law, or (iii) the consent or approval of any regulatory body, or (iv) the perfection
                                            of any exemption from any such withholding, listing, registration, qualification, consent
                                            or approval is necessary or desirable in connection with such exercise or the issuance of
                                            shares thereunder, then in any such event, such exercise shall not be effective unless such
                                            withholding, listing registration, qualification, consent, approval or exemption shall have
                                            been effected, obtained or perfected free of any conditions not acceptable to the Company.

 

	(n)	Repurchase
                                            Agreement: The Board may, in its discretion, require as a condition to the Grant of an
                                            Option hereunder, that an Optionee execute an agreement with the Company, in form and substance
                                            satisfactory to the Board in its discretion (“Repurchase Agreement”), (i) restricting
                                            the Optionee’s right to transfer shares purchased under such Option without first offering
                                            such shares to the Company or another shareholder of the Company upon the same terms and
                                            conditions as provided therein; and (ii) providing that upon termination of Optionee’s
                                            employment with the Company, for any reason, the Company (or another shareholder of the Company,
                                            as provided in the Repurchase Agreement) shall have the right at its discretion (or the discretion
                                            of such other shareholders) to purchase and/or redeem all such shares owned by the Optionee
                                            on the date of termination of his or her employment at a price equal to: (A) the fair value
                                            of such shares as of such date of termination; or (B) if such repurchase right lapses at
                                            20% of the number of shares per year, the original purchase price of such shares, and upon
                                            terms of payment permissible under applicable state securities rules; provided that in the
                                            case of Options or Stock Awards granted to officers, directors, consultants or affiliates
                                            of the Company, such repurchase provisions may be subject to additional or greater restrictions
                                            as determined by the Board or Committee.

 

	6.	Stock
                                            Awards and Restricted Stock Purchase Offers.

 

	(a)	Types
                                            of Grants.

 

	i.	Stock
                                            Award. All or part of any Stock Award under the Plan may be subject to conditions established
                                            by the Board or the Committee, and set forth in the Stock Award Agreement, which may include,
                                            but are not limited to, continuous service with the Company, achievement of specific business
                                            objectives, increases in specified indices, attaining growth rates and other comparable measurements
                                            of Company performance. Such Awards may be based on Fair Market Value or other specified
                                            valuation. All Stock Awards will be made pursuant to the execution of a Stock Award Agreement.

 

    	 

    	 

    

 

	ii.	Restricted
                                            Stock Purchase Offer. A Grant of a Restricted Stock Purchase Offer under the Plan shall
                                            be subject to such (i) vesting contingencies related to the Participant’s continued
                                            association with the Company for a specified time and (ii) other specified conditions as
                                            the Board or Committee shall determine, in their sole discretion, consistent with the provisions
                                            of the Plan. All Restricted Stock Purchase Offers shall be made pursuant to a Restricted
                                            Stock Purchase Offer.

 

	(b)	Conditions
                                            and Restrictions. Shares of Stock that Participants may receive as a Stock Award under
                                            a Stock Award Agreement or Restricted Stock Purchase Offer under a Restricted Stock Purchase
                                            Offer may include such restrictions as the Board or Committee, as applicable, shall determine,
                                            including restrictions on transfer, repurchase rights, right of first refusal, and forfeiture
                                            provisions. When transfer of Stock is so restricted or subject to forfeiture provisions it
                                            is referred to as “Restricted Stock”. Further, with Board or Committee approval,
                                            Stock Awards or Restricted Stock Purchase Offers may be deferred, either in the form of installments
                                            or a future lump sum distribution. The Board or Committee may permit selected Participants
                                            to elect to defer distributions of Stock Awards or Restricted Stock Purchase Offers in accordance
                                            with procedures established by the Board or Committee to assure that such deferrals comply
                                            with applicable requirements of the Code including, at the choice of Participants, the capability
                                            to make further deferrals for distribution after retirement. Any deferred distribution, whether
                                            elected by the Participant or specified by the Stock Award Agreement, Restricted Stock Purchase
                                            Offers or by the Board or Committee, may require the payment be forfeited in accordance with
                                            the provisions of Section 6(c). Dividends or dividend equivalent rights may be extended to
                                            and made part of any Stock Award or Restricted Stock Purchase Offers denominated in Stock
                                            or units of Stock, subject to such terms, conditions and restrictions as the Board or Committee
                                            may establish.

 

	7.	Investment
                                            Intent. All Grants under the Plan are intended to be exempt from registration under
                                            the Securities Act provided by Rule 701 thereunder. Unless and until the granting of Options
                                            or sale and issuance of Stock subject to the Plan are registered under the Securities Act
                                            or shall be exempt pursuant to the rules promulgated thereunder, each Grant under the Plan
                                            shall provide that the purchases or other acquisitions of Stock thereunder shall be for investment
                                            purposes and not with a view to, or for resale in connection with, any distribution thereof.
                                            Further, unless the issuance and sale of the Stock have been registered under the Securities
                                            Act, each Grant shall provide that no shares shall be purchased upon the exercise of the
                                            rights under such Grant unless and until (i) all then applicable requirements of state and
                                            federal laws and regulatory agencies shall have been fully complied with to the satisfaction
                                            of the Company and its counsel, and (ii) if requested to do so by the Company, the person
                                            exercising the rights under the Grant shall (i) give written assurances as to knowledge and
                                            experience of such person (or a representative employed by such person) in financial and
                                            business matters and the ability of such person (or representative) to evaluate the merits
                                            and risks of exercising the Option, and (ii) execute and deliver to the Company a letter
                                            of investment intent and/or such other form related to applicable exemptions from registration,
                                            all in such form and substance as the Company may require. If shares are issued upon exercise
                                            of any rights under a Grant without registration under the Securities Act, subsequent registration
                                            of such shares shall relieve the purchaser thereof of any investment restrictions or representations
                                            made upon the exercise of such rights.

 

    	 

    	 

    

 

	8.	Amendment,
                                            Modification, Suspension or Discontinuance of the Plan. The Board may, insofar as
                                            permitted by law, from time to time, with respect to any shares at the time not subject to
                                            outstanding Grants, suspend or terminate the Plan or revise or amend it in any respect whatsoever,
                                            except that without the approval of the shareholders of the Company, no such revision or
                                            amendment shall (i) increase the number of shares subject to the Plan, (ii) decrease the
                                            price at which Grants may be granted, (iii) materially increase the benefits to Participants,
                                            or (iv) change the class of persons eligible to receive Grants under the Plan; provided,
                                            however, no such action shall alter or impair the rights and obligations under any Option,
                                            or Stock Award, or Restricted Stock Purchase Offer outstanding as of the date thereof without
                                            the written consent of the Participant thereunder. No Grant may be issued while the Plan
                                            is suspended or after it is terminated, but the rights and obligations under any Grant issued
                                            while the Plan is in effect shall not be impaired by suspension or termination of the Plan.
                                            In the event of any change in the outstanding Stock by reason of a stock split, stock dividend,
                                            combination or reclassification of shares, recapitalization, merger, or similar event, the
                                            Board or the Committee may adjust proportionally (a) the number of shares of Stock (i) reserved
                                            under the Plan, (ii) available for Incentive Stock Options and Nonstatutory Options and (iii)
                                            covered by outstanding Stock Awards or Restricted Stock Purchase Offers; (b) the Stock prices
                                            related to outstanding Grants; and (c) the appropriate Fair Market Value and other price
                                            determinations for such Grants. In the event of any other change affecting the Stock or any
                                            distribution (other than normal cash dividends) to holders of Stock, such adjustments as
                                            may be deemed equitable by the Board or the Committee, including adjustments to avoid fractional
                                            shares, shall be made to give proper effect to such event. In the event of a corporate merger,
                                            consolidation, acquisition of property or stock, separation, reorganization or liquidation,
                                            the Board or the Committee shall be authorized to issue or assume stock options, whether
                                            or not in a transaction to which Section 424(a) of the Code applies, and other Grants by
                                            means of substitution of new Grant Agreements for previously issued Grants or an assumption
                                            of previously issued Grants.

 

	9.	Tax
                                            Withholding. The Company shall have the right to deduct applicable taxes from any
                                            Grant payment and withhold, at the time of delivery or exercise of Options, Stock Awards
                                            or Restricted Stock Purchase Offers or vesting of shares under such Grants, an appropriate
                                            number of shares for payment of taxes required by law or to take such other action as may
                                            be necessary in the opinion of the Company to satisfy all obligations for withholding of
                                            such taxes. If Stock is used to satisfy tax withholding, such stock shall be valued based
                                            on the Fair Market Value when the tax withholding is required to be made.

 

	10.	Availability
                                            of Information. During the term of the Plan and any additional period during which
                                            a Grant granted pursuant to the Plan shall be exercisable, the Company shall make available,
                                            not later than one hundred and twenty (120) days following the close of each of its fiscal
                                            years, such financial and other information regarding the Company as is required by the bylaws
                                            of the Company and applicable law to be furnished in an annual report to the shareholders
                                            of the Company.

 

	11.	Notice.
                                            Any written notice to the Company required by any of the provisions of the Plan shall be
                                            addressed to the chief financial officer or to the chief executive officer of the Company,
                                            and shall become effective when it is received by the office of the chief personnel officer
                                            or the chief executive officer.

 

	12.	Indemnification
                                            of Board. In addition to such other rights or indemnifications as they may have as
                                            directors or otherwise, and to the extent allowed by applicable law, the members of the Board
                                            and the Committee shall be indemnified by the Company against the reasonable expenses, including
                                            attorneys’ fees, actually and necessarily incurred in connection with the defense of
                                            any claim, action, suit or proceeding, or in connection with any appeal thereof, to which
                                            they or any of them may be a party by reason of any action taken, or failure to act, under
                                            or in connection with the Plan or any Grant granted thereunder, and against all amounts paid
                                            by them in settlement thereof (provided such settlement is approved by independent legal
                                            counsel selected by the Company) or paid by them in satisfaction of a judgment in any such
                                            claim, action, suit or proceeding, except in any case in relation to matters as to which
                                            it shall be adjudged in such claim, action, suit or proceeding that such Board or Committee
                                            member is liable for negligence or misconduct in the performance of his or her duties; provided
                                            that within sixty (60) days after institution of any such action, suit or Board proceeding
                                            the member involved shall offer the Company, in writing, the opportunity, at its own expense,
                                            to handle and defend the same.

 

	13.	Governing
                                            Law. The Plan and all determinations made and actions taken pursuant hereto, to the
                                            extent not otherwise governed by the Code or the securities laws of the United States, shall
                                            be governed by the law of the State of New York and construed accordingly.

 

	14.	Effective
                                            and Termination Dates. The Plan shall become effective on the date it is approved
                                            by the holders of a majority of the shares of Stock then outstanding. The Plan shall terminate
                                            ten years later, subject to earlier termination by the Board pursuant to Section 8.

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