Document:

ex_125327.htm

Exhibit 10.2

 

 

First Amendment

to the

Opportunity Bank of Montana

Amended Salary Continuation Agreement

For

Peter J. Johnson

 

This First Amendment is adopted this 11th day of October, 2018 by Opportunity Bank of Montana located in Helena, Montana (the “Bank”).

 

The Bank and Peter J. Johnson (the “Executive”) executed the Amended Salary Continuation Agreement effective as of September 3, 2015 (the “Agreement”).

 

The undersigned hereby amends the Agreement for the purpose of increasing the benefits provided therein. Therefore, the following changes shall be made:

 

Section 2.1.1 of the Agreement shall be deleted in its entirety and replaced by the following:

 

2.1.1     Amount of benefit. The annual benefit under this section 2.1 is $78,000.

 

IN WITNESS OF THE ABOVE, the Bank hereby consents to this First Amendment.

 

Opportunity Bank of Montana

 

 

	By:	/s/ Rick F. Hays	 
	 	 	 
	Title: 	Director	 
	 	 	 
	 	 	 
	Acknowledged:	 
	 	 	 
	 	 	 
	/s/ Peter J. Johnson	 
	Peter J. Johnsonex_125328.htm

Exhibit 10.3

 

 

Second Amendment

to the

Opportunity Bank of Montana

Salary Continuation Agreement

For

Laura Clark

 

This Second Amendment is adopted this 11th day of October, 2018 by Opportunity Bank of Montana located in Helena, Montana (the “Bank”).

 

The Bank and Laura Clark (the “Executive”) executed the Salary Continuation Agreement effective as of November 1, 2014, as amended by the First Amendment adopted August 20, 2015 (the “Agreement”).

 

The undersigned hereby amends the Agreement for the purpose of increasing the benefits provided therein. Therefore, the following changes shall be made:

 

Section 2.1 of the Agreement shall be deleted in its entirety and replaced by the following:

 

2.1. Normal Retirement Benefit. Upon Separation from Service after Normal Retirement Age, the Employer shall pay the Executive an annual benefit in the amount of Eleven Thousand Dollars ($11,000) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Separation from Service and continuing until the Executive’s death.

 

IN WITNESS OF THE ABOVE, the Bank hereby consents to this Second Amendment.

 

Opportunity Bank of Montana

 

 

	By:	/s/ Peter J. Johnson	 
	 	 	 
	Title:	President and Chief Executive Officer	 
	 	 	 
	 	 	 
	Acknowledged:	 
	 	 	 
	 	 	 
	/s/ Laura Clark	 
	Laura ClarkEXHIBIT 4.1

 

2016 STOCK OPTION PLAN

 

		1.	Establishment, Purpose And Term Of Plan.

 

		1.1.	Establishment. The Ark Restaurants Corp. 2016 Stock Option Plan (the “Plan”)
is hereby established effective as of January 29, 2016.

 

		1.2.	Purpose. The purpose of the Plan is to advance the interests of the Participating Company
Group and its stockholders by providing an incentive to attract, retain and reward persons performing services for the Participating
Company Group and by motivating such persons to contribute to the growth and profitability of the Participating Company Group.

 

		1.3.	Term of Plan. The Plan shall continue in effect until the earlier of its termination by
the Board or the date on which all of the shares of Stock available for issuance under the Plan have been issued and all restrictions
on such shares under the terms of the Plan and the agreements evidencing Options granted under the Plan have lapsed. However, all
Options shall be granted, if at all, within ten (10) years from the earlier of the date the Plan is adopted by the Board or the
date the Plan is duly approved by the stockholders of the Company.

 

		2.	Definitions and Construction.

 

		2.1.	Definitions. Whenever used herein, the following terms shall have their respective meanings
set forth below:

 

		(a)	“Board” means the Board of Directors of the Company. If one or more Committees
have been appointed by the Board to administer the Plan, “Board” also means such Committee(s).

 

		(b)	“Code” means the Internal Revenue Code of 1986, as amended, and any applicable
regulations promulgated thereunder.

 

		(c)	“Committee” means the Stock Option Committee or other committee of the
Board duly appointed to administer the Plan and having such powers as shall be specified by the Board. Unless the powers of the
Committee have been specifically limited, the Committee shall have all of the powers of the Board granted herein, including, without
limitation, the power to amend or terminate the Plan at any time, subject to the terms of the Plan and any applicable limitations
imposed by law. The members of the Committee must be outside directors.

 

		(d)	“Company” means Ark Restaurants Corp., a New York corporation, or any
successor corporation thereto.

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		(e)	“Director” means a member of the Board or of the board of directors of
any other Participating Company.

 

		(f)	“Disability” means the inability of the Optionee, in the opinion of a
qualified physician acceptable to the Company, to perform the major duties of the Optionee’s position with the Participating
Company Group because of the sickness or injury of the Optionee.

 

		(g)	“Employee” means any person treated as an employee (including an Officer
or a Director who is also treated as an employee) in the records of Participating Company and, with respect to any Incentive Stock
Option granted to such person, who is an employee for purposes of Section 422 of the Code; provided, however, that neither service
as a Director nor payment of a director’s fee shall be sufficient to constitute employment for purposes of the Plan. The
Company shall exercise its discretion as to whether an individual has become or has ceased to be an Employee and the effective
date of such individual’s employment or termination of employment, as the case may be. For purposes of an individual’s
rights, if any, under the Plan as of the time of the Company’s determination, all such determinations by the Company shall
be final, binding and conclusive, notwithstanding that the Company or any court of law or governmental agency subsequently makes
a contrary determination.

 

		(h)	“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

		(i)	“Fair Market Value” means, as of any date, the value of a share of Stock
or other property as determined by the Board, in its discretion, or by the Company, in its discretion, if such determination is
expressly allocated to the Company herein, subject to the following:

 

		(i)	If, on such date, the Stock is listed on a national or regional securities exchange or market system,
the Fair Market Value of a share of Stock shall be the closing price of a share of Stock (or the mean of the closing bid and asked
prices of a share of Stock if the Stock is so quoted instead) as quoted on The Nasdaq Global Market, The Nasdaq Capital Market
or such other national or regional securities exchange or market system constituting the primary market for the Stock, as reported
in The Wall Street Journal or such other source as the Company deems reliable. If the Stock is not listed or admitted to trade
on a national securities exchange, the Fair Market Value shall be the mean between the closing bid and asked price for the Stock
on such date, as furnished by the the OTC Markets Group, Inc. (the “OTC”) or similar organization. If the relevant
date does not fall on a day on which the Stock has traded on such securities exchange or market system, the date on which the Fair
Market Value shall be established shall be the last day on which the Stock was so traded prior to the relevant date, or such other
appropriate day as shall be determined by the Board, in its discretion.

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		(ii)	If, on such date, the Stock is not listed on a national or regional securities exchange or market
system, the Fair Market Value of a share of Stock shall be as determined by the Board consistent with Treasury Regulation Section
1.409A-1(b)(5)(iv) (or successor provision) in good faith without regard to any restriction other than a restriction which, by
its terms, will never lapse.

 

		(j)	“Incentive Stock Option” means an Option intended to be (as set forth
in the Option Agreement) and which qualifies as an incentive stock option within the meaning of Section 422(b) of the Code.

 

		(k)	“Insider” means an Officer, a Director of the Company or other person
whose transactions in Stock are subject to Section 16 of the Exchange Act.

 

		(l)	“Nonstatutory Stock Option” means an Option not intended to be (as set
forth in the Option Agreement) or which does not qualify as an Incentive Stock Option.

 

		(m)	“Officer” means any person designated by the Board as an officer of the
Company.

 

		(n)	“Option” means a right to purchase Stock pursuant to the terms and conditions
of the Plan. An Option may be either an Incentive Stock Option or a Nonstatutory Stock Option.

 

		(o)	“Option Agreement” means a written agreement between the Company and
an Optionee setting forth the terms, conditions and restriction of the Option granted to the Optionee and any shares acquired upon
the exercise thereof.

 

		(p)	“Optionee” means a person who has been granted one or more Options.

 

		(q)	“Parent Corporation” means any present or future “parent corporation”
of the Company, as defined in Section 424(e) of the Code.

 

		(r)	“Participating Company” means the Company or any Parent Corporation or
Subsidiary Corporation.

 

		(s)	“Participating Company Group” means, at any point in time, all corporations
collectively which are then Participating Companies.

 

		(t)	“Rule 16b-3” means Rule 16b-3 under the Exchange Act, as amended from
time to time, or any successor rule or regulation.

 

		(u)	“Securities Act” means the Securities Act of 1933, as amended.

 

		(v)	“Service” means an Optionee’s employment or service with the Participating
Company Group, whether in the capacity of an Employee or a Director. An Optionee’s Service shall not be deemed to have terminated
merely because of a change in the capacity in which the Optionee renders Service to the Participating Company Group or a change
in the Participating Company for which the Optionee renders such Service, provided that there is no interruption or termination
of the

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Optionee’s
Service. Furthermore, an Optionee’s Service with the Participating Company Group shall not be deemed to have terminated if
the Optionee takes any military leave, sick leave, or other bona fide leave of absence approved in advance in writing by the Company;
provided, however, that if any such leave exceeds ninety (90) days, on the ninety-first (91st) day of such leave the Optionee’s
Service shall be deemed to have terminated unless the Optionee’s right to return to Service with the Participating Company
Group is guaranteed by statute or contract. Notwithstanding the foregoing, unless otherwise designated by the Company or required
by law, a leave of absence shall not be treated as Service for purposes of determining vesting under the Optionee’s Option
Agreement. The Optionee’s Service shall be deemed to have terminated either upon an actual termination of Service or upon
the corporation for which the Optionee performs Service ceasing to be a Participating Company. Subject to the foregoing, the Company,
in its discretion, shall determine whether the Optionee’s Service has terminated and the effective date of such termination.

 

		(w)	“Stock” means the common stock of the Company, as adjusted from time
to time in accordance with Section 4.2.

 

		(x)	“Subsidiary Corporation” means any present or future “subsidiary
corporation” of the Company, as defined in Section 424(f) of the Code, which would constitute an “eligible issuer of
service recipient stock” under Treasury Regulation Section 1.409A-1(b)(5)(iii)(E) (or successor provision).

 

		(y)	“Ten Percent Owner Optionee” means an Optionee who, at the time an Option
is granted to the Optionee, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes
of stock of a Participating Company within the meaning of Section 422(b)(6) of the Code.

 

		2.2.	Construction. Captions and titles contained herein are for convenience only and shall not
affect the meaning or interpretation of any provision of the Plan. Except when otherwise indicated by the context, the singular
shall include the plural and the plural shall include the singular. Use of the term “or” is not intended to be exclusive,
unless the context clearly requires otherwise.

 

		3.	Administration.

 

		3.1.	Administration by the Board. The Plan shall be administered by the Board through the Committee.
All questions of interpretation of the Plan or of any Option shall be determined by the Committee, and such determinations shall
be final and binding upon all persons having an interest in the Plan or such Option. Any power of the Committee may also be exercised
by the Board of Directors, except to the extent that the grant or exercise of such authority would cause any Award or transaction
to become subject to (or lose an exemption under) the short-swing profit recovery provisions of Section 16 of the Exchange Act,
or violate the listing requirements of NASDAQ or such other exchange on which the Shares are traded. To the extent that any permitted
action taken by the Board conflicts with action taken by the Committee, the Board action shall control.

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		3.2.	Authority of Officers. Any Officer shall have the authority to act on behalf of the Company
with respect to any matter, right, obligation, determination or election which is the responsibility of or which is allocated to
the Company herein, provided the Officer has apparent authority with respect to such matter, right, obligation, determination or
election.

 

		3.3.	Powers of the Committee. In addition to any other powers set forth in the Plan and subject
to the provisions of the Plan, the Committee shall have the full and final power and authority, in its discretion:

 

		(a)	to determine the persons to whom, and the time or times at which, Options shall be granted and
the number of shares of Stock to be subject to each Option;

 

		(b)	to designate Options as Incentive Stock Options or Nonstatutory Stock Options;

 

		(c)	to determine the Fair Market Value of shares of Stock or other property;

 

		(d)	to determine the terms, conditions and restrictions applicable to each Option (which need not be
identical) and any shares acquired upon the exercise thereof, including, without limitation, (i) the exercise price of the Option,
(ii) the method of payment for shares purchased upon the exercise of the Option, (iii) the method for satisfaction of any tax withholding
obligation arising in connection with the Option or such shares, including by the withholding obligation arising in connection
with the Option or such shares, including by the withholding or delivery of shares of stock, (iv) the timing, terms and conditions
of the exercisability of the Option or the vesting, forfeiture or waiver of any shares acquired upon the exercise thereof, (v)
the time of the expiration of the Option, (vi) the effect of the Optionee’s termination of Service with the Participating
Company Group on any of the foregoing, and (vii) all other terms, conditions and restrictions applicable to the Option or such
shares not inconsistent with the terms of the Plan;

 

		(e)	to approve one or more forms of Option Agreement;

 

		(f)	to amend, modify, adjust, extend, cancel or renew any Option or to waive any restrictions or conditions
applicable to any Option or any shares acquired upon the exercise thereof;

 

		(g)	to accelerate, continue, extend or defer the exercisability of any Option or the vesting of any
shares acquired upon the exercise thereof, including with respect to the period following an Optionee’s termination of Service
with the Participating Company Group;

 

		(h)	to prescribe, amend or rescind rules, guidelines and policies relating to the Plan, or to adopt
supplements to, or alternative versions of, the Plan, including, without

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limitation, as
the Board deems necessary or desirable to comply with the laws of, or to accommodate the tax policy or custom of, foreign jurisdictions
whose citizens may be granted Options;

 

		(i)	to correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Option
Agreement and to make all other determinations and take such other actions with respect to the Plan or any Option as the Board
may deem advisable to the extent not inconsistent with the provisions of the Plan or applicable law; and

 

		(j)	provided, however, that the Committee shall not have such power to the extent
that the mere possession (as opposed to the exercise) of such power would result in adverse tax consequences to any participant
under Code Section 409A. In making such determinations, the Committee may take into account such factors as the Committee, in its
absolute discretion, shall deem relevant. Subject to the express provisions of the Plan, the Committee shall also have the authority
to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to it, to determine the terms and provisions
of the respective option instruments or agreements (which need not be identical) and to make all other determinations and take
all other actions necessary or advisable for the administration of the Plan. The Committee’s determinations on the matters
referred to in this Section 3.3 shall be conclusive. Any determination by a majority of the members of the Committee shall be deemed
to have been made by the whole Committee.

 

		3.4.	Administration with Respect to Insiders. With respect to participation by Insiders in the
Plan, at any time that any class of equity security of the Company is registered pursuant to Section 12 of the Exchange Act, the
Plan shall be administered in compliance with the requirements, if any, of Rule 16b-3.

 

		3.5.	Indemnification. In addition to such other rights of indemnification as they may have as
members of the Board or officers or employees of the Participating Company Group, members of the Board and any officers or employees
of the Participating Company Group to whom authority to act for the Board or the Company is delegated shall be indemnified by the
Company against all reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with
the defense of any action, suit or proceeding, or in connection with any appeal therein, 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 right granted hereunder, 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 action, suit or proceeding, except in relation to matter
as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, bad faith
or intentional misconduct in duties; provided, however, that within sixty (60) days after the institution of such action, suit
or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the
same.

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	4.	Shares Subject To Plan.

 

		4.1.	Maximum Number of Shares Issuable. Subject to adjustment as provided in Section 4.2, the
maximum aggregate number of shares of Stock that may be issued under the plan shall be Five Hundred Thousand (500,000) and shall
consist of authorized but unissued or reacquired shares of Stock or any combination thereof. If an outstanding Option for any reason
expires or is terminated or canceled or if shares of Stock are acquired upon the exercise of an Option subject to a Company repurchase
option and are repurchased by the Company at the Optionee’s exercise price, the shares of Stock allocable to the unexercised
portion of such Option or such repurchased shares of Stock shall again be available for issuance under the Plan. However, except
as adjusted pursuant to Section 4.2, in no event shall more than Five Hundred Thousand (500,000) shares of Stock be available in
the aggregate or Five Hundred Thousand (500,000) in any one calendar year for issuance pursuant to the exercise of Incentive Stock
Options (the “ISO Share Issuance Limit”). Notwithstanding the foregoing, at any such time as the offer
and sale of securities pursuant to the Plan is subject to compliance with Section 260.140.45 of Title 10 of the California Code
of Regulations (“Section 260.140.45”), the total number of shares of Stock issuable upon the exercise of all
outstanding Options (together with options outstanding under any other stock option plan of the Company) and the total number of
shares provided for under any stock bonus or similar plan of the Company shall not exceed thirty percent (30%) (or such other higher
percentage limitation s may be approved by the stockholders of the Company pursuant to Section 260.140.45) of the then outstanding
shares of the Company as calculated in accordance with the conditions and exclusions of Section 260.140.45.

 

		4.2.	Adjustments for Changes in Capital Structure. In the event of any stock dividend, stock
split, reverse stock split, recapitalization, combination, reclassification or similar change in the capital structure of the Company,
appropriate adjustments shall be made in the number and class of shares subject to the Plan and to any outstanding Options, in
the ISO Share Issuance Limit set forth in Section 4.1, and in the exercise price per share of any outstanding Options. If a majority
of the shares which are of the same class as the shares that are subject to outstanding Options are exchanged for, converted into,
or otherwise become (whether or not pursuant to an Ownership Change Event, as defined in Section 8.1) shares of another corporation
(the “New Shares”), the Board may unilaterally amend the outstanding Options to provide that such Options
are exercisable for New Shares. In the event of any such amendment, the number of shares subject to, and the exercise price per
share of, the outstanding Options shall be adjusted in a fair and equitable manner as determined by the Board, in its discretion.
Notwithstanding the foregoing, any fractional share resulting from an adjustment pursuant to this Section 4.2 shall be rounded
down to the nearest whole number, and in no event may the exercise price of any Option be decreased to an amount less than the
par value, if any, of the stock subject to the Option. The adjustments determined by the Board pursuant to this Section 4.2 shall
be final, binding and conclusive. Notwithstanding the foregoing, any adjustments made pursuant to this Section 4.2 shall be made
in such a manner as to ensure that, after such adjustment, the affected Options either continue not to be subject to Section 409A
of the Code or else comply with the requirements of Section 409A of 

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the Code.
Neither the Committee nor the Board shall have the authority to make any adjustments pursuant to this Section 4.2 to the extent
the existence of such authority would cause an Option that is not intended to be subject to Section 409A of the Code at the time
such Option is granted to be subject thereto.

 

		5.	Eligibility and Option Limitations.

 

		5.1.	Persons Eligible for Options. Options may be granted only to Employees and Directors. For
purposes of the foregoing sentence, “Employees” and “Directors” shall include prospective Employees and
prospective Directors to whom Options are granted in connection with written offers of an employment or other service relationship
with the Participating Company Group in accordance with Section 5.2. Eligible persons may be granted more than one (1) Option.
However, eligibility in accordance with this Section shall not entitle any person to be granted an Option, or, having been granted
an Option, to be granted an additional Option.

 

		5.2.	Option Grant Restrictions. Any person who is not an Employee on the effective date of the
grant of an Option to such person may be granted only a Nonstatutory Stock Option. An Incentive Stock Option granted to a prospective
Employee upon the condition that such person become an Employee shall be deemed granted effective on the date such person commences
Service with a Participating Company, with an exercise price determined as of such date in accordance with Section 6.2.

 

		5.3.	Fair Market Value Limitation. To the extent that options designated as Incentive Stock Options
(granted under all stock option plans of the Participating Company Group, including the Plan) become exercisable by an Optionee
for the first time during any calendar year for stock having a Fair Market Value greater than One Hundred Thousand Dollars ($100,000),
the portions of such options which exceed such amount shall be treated as Nonstatutory Stock Options. For purposes of this Section
5.3, options designated as Incentive Stock Options shall be taken into account in the order in which they were granted, and the
Fair Market Value of stock shall be determined as of the time the option with respect to such stock is granted. If the Code is
amended to provide for a different limitation from that set forth in this Section 5.3, such different limitation shall be deemed
incorporated herein effective as of the date and with respect to such Options as required or permitted by such amendment to the
Code. If an Option is treated as an Incentive Stock Option in part and as a Nonstatutory Stock Option in part by reason of the
limitation set forth in this Section 5.3, the Optionee may designate which portion of such Option the Optionee is exercising. In
the absence of such designation, the Optionee shall be deemed to have exercised the Incentive Stock Option portion of the Option
first. Separate certificates representing each such portion shall be issued upon the exercise of the Option.

 

		6.	Terms and Conditions of Options.

 

		6.1.	General. Options shall be evidenced by Option Agreements specifying the number of shares
of Stock covered thereby, in such form as the Board shall from time to time establish. No Option or purported Option shall be a
valid and binding obligation of the

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Company unless
evidenced by a fully executed Option Agreement. Option Agreements may incorporate all or any of the terms of the Plan by reference
and shall comply with and be subject to the terms and conditions set forth in this Section 6.

 

		6.2.	Exercise Price. The exercise price for each Option shall be established in the discretion
of the Board; provided, however, that (a) the exercise price per share for an Option shall not be less than the Fair Market Value
of a share of Stock on the effective date of grant of the Option determined in good faith by the Committee, with the approval of
the Board, in accordance with the Plan and in accordance with the requirements of Code Sections 409A and 422, and (b) no Incentive
Stock Option granted to a Ten Percent Owner Optionee shall have an exercise price per share less than one hundred ten percent (110%)
of the Fair Market Value of a share of Stock on the effective date of grant of the Option. Notwithstanding the foregoing, an Option
(whether an Incentive Stock Option or a Nonstatutory Stock Option) may be granted with an exercise price lower than the minimum
exercise price set forth above if such Option is granted pursuant to an assumption or substitution for another option in a manner
qualifying under the provisions of Section 424(a) of the Code.

 

		6.3.	Exercisability and Term of Options. Options shall be exercisable at such time or times,
or upon such event or events, and subject to such terms, conditions, performance criteria and restrictions as shall be determined
by the Board and set forth in the Option Agreement evidencing such Option; provided, however, that (a) no Option shall be exercisable
after the expiration of ten (10) years after the effective date of grant of such Option, (b) no Incentive Stock Option granted
to a Ten Percent Owner Optionee shall be exercisable after the expiration of five (5) years after the effective date of grant of
such Option, and (c) no Option granted to a prospective Employee or prospective Director may become exercisable prior to the date
on which such person commences Service with a Participating Company. Subject to the foregoing, unless otherwise specified by the
Board in the grant of an Option, any Option granted hereunder shall terminate no later than ten (10) years after the effective
date of grant of the Option, unless earlier terminated in accordance with its provisions.

 

		6.4.	Payment of Exercise Price.

 

		(a)	Forms of Consideration Authorized. Except as otherwise provided below, payment of
the exercise price for the number of shares of Stock being purchased pursuant to any Option shall be made:

 

		(i)	in cash, by check or cash equivalent,

 

		(ii)	by tender to the Company, or attestation to the ownership, of shares of Stock owned by the Optionee
having a Fair Market Value not less than the exercise price,

 

		(iii)	by delivery of a properly executed notice together with irrevocable instructions to a broker
                                                                   providing for the assignment to the Company of the proceeds of a sale or loan with respect to some or all of the shares being
                                                                   acquired upon the

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 exercise of
the Option (including, without limitation, through an exercise complying with the provisions of Regulation T as promulgated from
time to time by the Board of Governors of the Federal Reserve System) (a “Cashless Exercise”),

 

		(iv)	net issue exercise, whereby the Optionee surrenders an Option at the principal office of the Company
(or such other office or agency as the Company may designate) together with a properly completed and executed exercise notice reflecting
such election, in which event the Company will issue to the Optionee that number of shares of Stock computed using the following
formula:

 

	X=	Y(A-B)	 
	 	A	 

 

Where:

 

	X =	 	 the number of shares of Stock to be issued to the Optionee;

 

	Y =	 	 the number of shares of Stock subject to the Option or, if only a portion of
the Option is being exercised, the portion of the Option being cancelled (at the date of such calculation);

 

	A =	 	 the Fair Market Value of one share of Stock (at the date of such calculation);

 

	B =	 	the exercise price per share for the Option (as adjusted to the date of the
calculation);

 

		(v)	by such other consideration as may be approved by the Board from time to time to the extent permitted
by applicable law,

 

		(vi)	by any combination of the foregoing methods.

 

The Board may
at any time or from time to time, by approval of or by amendment to the standard forms of Option Agreement described in Section
7, or by other means, grant Options which do not permit all of the foregoing forms of consideration to be used in payment of the
exercise price or which otherwise restrict one or more forms of consideration.

 

		(b)	Limitations on Forms of Consideration.

 

		(i)	Tender of Stock. Notwithstanding the foregoing, an Option may not be exercised by tender
to the Company, or attestation to the ownership, of shares of Stock to the extent such tender or attestation would constitute a
violation of the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock. Unless
otherwise provided by the Board, an Option may

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not be exercised
by tender to the Company, or attestation to the ownership, of shares of Stock unless such shares either have been owned by the
Optionee for more than six (6) months (and not used for another Option exercise by attestation during such period) or were not
acquired, directly or indirectly, from the Company.

 

		(ii)	Cashless Exercise. The Company reserves, at any and all times, the right, in the Company’s
sole and absolute discretion, to establish, decline to approve or terminate any program or procedures for the exercise of Options
by means of a Cashless Exercise.

 

		(iii)	Compliance with Law. No form of consideration to be used in payment of the exercise price
shall be permitted if the exercise of an Option using such form of consideration would be a violation of any law.

 

		6.5.	Tax Withholding. The Company shall have the right, but not the obligation, to deduct from
the shares of Stock issuable upon the exercise of an Option, or to accept from the Optionee the tender of, a number of whole shares
of Stock having a Fair Market Value, as determined by the Company, equal to all or any part of the federal, state, local and foreign
taxes, if any, required by law to be withheld by the Participating Company Group with respect to such Option or the shares acquired
upon the exercise thereof. Alternatively or in addition, in its discretion, the Company shall have the right to require the Optionee,
through payroll withholding, cash payment or otherwise, including by means of a Cashless Exercise, to make adequate provision for
any such tax withholding obligations of the Participating Company Group arising in connection with the Option or the shares acquired
upon the exercise thereof. The Fair Market Value of any shares of Stock withheld or tendered to satisfy any such tax withholding
obligations shall not exceed the amount determined by the applicable minimum statutory withholding rates. The Company shall have
no obligation to deliver shares of Stock or to release shares of Stock from an escrow established pursuant to the Option Agreement
until the Participating Company Group’s tax withholding obligations have been satisfied by the Optionee.

 

		6.6.	Repurchase Rights; Potential Repayment of Awards.

 

		(a)	Repurchase Rights. Shares issued under the Plan may be subject to a right of
                                                                 first refusal, one or more repurchase options, or other conditions and restrictions as determined by the Board in its
                                                                 discretion at the time the Option is granted. The Company shall have the right to assign at any time any right of first
                                                                 refusal or repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be
                                                                 selected by the Company. Notwithstanding the foregoing, no such right, condition or restriction shall be imposed which may
                                                                 constitute a deferral of compensation or cause the Stock to fail to be “service recipient stock” under Treasury
                                                                 Regulation Section 1.409A-1(b)(5) (or successor provision). Upon request by the Company, each Optionee shall execute any
                                                                 agreement evidencing such transfer restrictions prior to the receipt of shares of Stock hereunder and shall promptly present
                                                                 to the Company any and all certificates representing shares of Stock acquired
hereunder for the placement on such certificates of appropriate legends evidencing any such transfer restrictions.

    	11

    	

    

		(b)	Potential Repayment of Awards. The Board shall have the authority from time to time,
in its discretion, to provide that the Optionee shall be required to repay the economic benefit (plus interest) of any previously
exercised Options granted under the Plan in the event that the Optionee violates any separation agreement, non-compete agreement
or any other agreement between the Optionee and any Participating Company.

 

		6.7.	Effect of Termination of Service.

 

		(a)	Option Exercisability. Subject to earlier termination of the Option as otherwise
provided herein and unless otherwise provided by the Board in the grant of an Option and set forth in the Option Agreement, an
Option shall be exercisable after an Optionee’s termination of Service only during the applicable time period determined
in accordance with this Section 6.7 and thereafter shall terminate:

 

		(i)	Disability. If the Optionee’s Service terminates because of the Disability of the
Optionee, the Option, to the extent unexercised and exercisable on the date on which the Optionee’s Service terminated, may
be exercised by the Optionee (or the Optionee’s guardian or legal representative) at any time prior to the expiration of
twelve (12) months (or such longer period of time as determined by the Board, in its discretion) after the date on which the Optionee’s
Service terminated, but in any event no later than the date of expiration of the Option’s term as set forth in the Option
Agreement evidencing such Option (the “Option Expiration Date”).

 

		(ii)	Death. If the Optionee’s Service terminates because of the death of the Optionee,
the Option, to the extent unexercised and exercisable on the date on which the Optionee’s Service terminated, may be exercised
by the Optionee’s legal representative or other person who acquired the right to exercise the Option by reason of the Optionee’s
death at any time prior to the expiration of twelve (12) months (or such longer period of time as determined by the Board, in its
discretion) after the date on which the Optionee’s Service terminated, but in any event no later than the Option Expiration
Date.

 

		(iii)	Retirement. If the Optionee’s Service terminates because of retirement pursuant
to any applicable retirement plan of any Participating Company, the Option, to the extent unexercised and exercisable on the date
on which the Optionee’s Service terminated, may be exercised by the Optionee (or the Optionee’s guardian or legal representative)
at any time prior to the expiration of thirty-six (36) months (or such longer period of time as determined by the Board, in its
discretion) after the date on which the Optionee’s Service terminated, but in any event no later than the Option Expiration
Date.

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		(iv)	Voluntary Termination; Termination for Cause. If the Optionee’s Service terminates
because either (1) the Optionee voluntarily terminates the Optionee’s Service (“Voluntary Termination”)
or (2) the Optionee’s Service is terminated for cause (as hereinafter defined) by any Participating Company (“Termination
for Cause”), the Option, to the extent unexercised and exercisable on the date on which the Optionee’s Service
terminated, shall terminate immediately upon the termination of Optionee’s Service (unless otherwise determined by the Board,
in its discretion). For the purposes hereof, termination “for cause” shall mean termination as a result of or caused
by Optionee’s theft, embezzlement or fraud involving any Participating Company, the violation of a material term or condition
of Optionee’s employment, substantial failure on the part of Optionee to perform Optionee’s job duties, the disclosure
by Optionee of confidential information of any Participating Company, the Optionee’s stealing trade secrets or intellectual
property owned by any Participating Company, willful misconduct or dishonesty or conviction of or failure to contest prosecution
for a felony or a crime of moral turpitude, excessive absenteeism unrelated to illness, any act by Optionee in competition with
any Participating Company, or any other act, activity or conduct of Optionee which in the opinion of the Board is adverse to the
best interests of any Participating Company.

 

		(v)	Other Termination of Service. If the Optionee’s Service terminates for any reason,
except Disability or death, the Option, to the extent unexercised and exercisable by the Optionee on the date on which the Optionee’s
Service terminated, may be exercised by the Optionee at any time prior to the expiration of three (3) months (or such longer period
of time as determined by the Board, in its discretion) after the date on which the Optionee’s Service terminated, but in
any event no later than the Option Expiration Date.

 

		(b)	Extension if Optionee Subject to Section 16(b). Notwithstanding the foregoing, if
a sale within the applicable time periods set forth in Section 6.7(a) of shares acquired upon the exercise of the Option would
subject the Optionee to suit under Section 16(b) of the Exchange Act, the Option shall remain exercisable until the earliest to
occur of (i) the tenth (10th) day following the date on which a sale of such shares by the Optionee would no longer be subject
to such suit, (ii) the one hundred and ninetieth (190th) day after the Optionee’s termination of Service, or (iii) the Option
Expiration Date.

 

		(c)	Deferral of Option Shares. The Committee may from time to time establish procedures
pursuant to which an Optionee may elect to defer, until a time or times later than the exercise of an Option, receipt of all or
a portion of the shares of Stock subject to such Option and/or to receive cash at such later time or times in lieu of such deferred
shares, all on such terms and conditions as the Committee shall determine. If any such deferrals are permitted, then notwithstanding
Sections 6.3 and 6.4. above, an Optionee who elects such deferral shall not have any rights as a stockholder with respect to such
deferred shares unless and until shares are actually

    	13

    	

    

delivered to the
participant with respect thereto, except to the extent otherwise determined by the Committee. Notwithstanding anything herein to
the contrary, in no event will any deferral of the delivery of shares of Stock or any other payment with respect to any Option
be allowed if the Committee determines, in its sole discretion, that the deferral would result in the imposition of additional
tax under Code Section 409A(a)(1)(B).

 

		6.8.	Non-Transferability of Options. During the lifetime of the Optionee, an Option shall be
exercisable only by the Optionee or the Optionee’s guardian or legal representative. No Option shall be assignable or transferable
by the Optionee, except by will or by the laws of descent and distribution. Notwithstanding the foregoing, to the extent permitted
by the Board, in its discretion, and set forth in the Option Agreement evidencing such Option, a Nonstatutory Stock Option shall
be assignable or transferable subject to the applicable limitations, if any, described in Section 260.140.41 of Title 10 of the
California Code of Regulations, Rule 701 under the Securities Act, and the General Instructions to Form S-8 Registration Statement
under the Securities Act. The Board, in its discretion, may permit the transfer of an Option for estate-planning purposes by an
Optionee to his or her spouse, biological or adopted children or grandchildren or to a trust exclusively for the benefit of such
Optionee, spouse, children, and/or grandchildren; provided, however, that notwithstanding such transfer, the Optionee making such
transfer shall be deemed to continue to be the owner of such Options for purposes of the Plan.

 

		6.9.	No Rights as Stockholder. Until the shares of Stock are issued (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends
or any other rights as a stockholder shall exist with respect to the shares of Stock subject to an Option, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such shares of Stock promptly after the Option is exercised.
No adjustment will be made for a dividend or other right for which the record date is prior to the date the shares of Stock are
issued, except as provided in Section 4.2 of the Plan.

 

		7.	Standard Forms of Option Agreement.

 

		7.1.	Option Agreement. Unless otherwise provided by the Board at the time the Option is granted,
an Option shall comply with and be subject to the terms and conditions set forth in the form of Option Agreement approved by the
Board concurrently with its adoption of the Plan and as amended from time to time.

 

		7.2.	Authority to Vary Terms. The Board shall have the authority from time to time to vary the
terms of any standard form of Option Agreement described in this Section 7 either in connection with the grant or amendment of
an individual Option or in connection with the authorization of a new standard form or forms provided, however, that the terms
and conditions of any such new, revised or amended standard form or forms of Option Agreement are not inconsistent with the terms
of the Plan.

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		8.	Change In Control.

 

		8.1.	Definitions.

 

		(a)	An “Ownership Change Event” shall be deemed to have occurred if any of
the following occurs with respect to the Company: (i) the direct or indirect sale or exchange in a single or series of related
transactions by the stockholders of the Company of more than fifty percent (50%) of the voting stock of the Company; (ii) a merger
or consolidation in which the Company is a party; (iii) the sale, exchange, or transfer of all or substantially all of the assets
of the Company; or (iv) a liquidation or dissolution of the Company.

 

		(b)	A “Change in Control” shall mean an Ownership Change Event or a series
of related Ownership Change Events (collectively, a “Transaction”) wherein the stockholders of the Company
immediately before the Transaction do not retain immediately after the Transaction, in substantially the same proportions as their
ownership of shares of the Company’s voting stock immediately before the Transaction, direct or indirect beneficial ownership
of more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the Company or, in
the case of a Transaction described in Section 8.1(a)(iii), the corporation or other business entity to which the assets of the
Company were transferred (the “Transferee”), as the case may be.

 

		8.2.	Effect of Change in Control on Options. In the event of a Change in Control, the surviving,
continuing, successor, or purchasing corporation or other business entity or parent thereof, as the case may be (the “Acquiring
Corporation”), may, without the consent of any Optionee, either assume the Company’s rights and obligations
under outstanding Options or substitute for outstanding Options substantially equivalent options for the Acquiring Corporation’s
stock. In the event the Acquiring Corporation elects not to assume or substitute for outstanding Options in connection with a Change
in Control, then the vesting of each such outstanding Option and any shares acquired upon the exercise thereof held by Optionees
whose Service has not terminated prior to such Change in Control shall be accelerated to the extent unexercised, effective as of
the date ten (10) days prior to the date of the Change in Control, unless otherwise determined by the Board, in its discretion,
and set forth in the Option Agreement evidencing such Option. With respect to any specific Optionee, if such Optionee’s Service
is terminated within 90 days following such Change in Control for any reason other than a Voluntary Termination or Termination
For Cause, then the vesting of each outstanding Option and any shares acquired upon the exercise thereof held by such Optionee
shall be accelerated to the extent unexercised, effective as of the date ten (10) days prior to the date of the Change in Control,
unless otherwise determined by the Board, in its discretion, and set forth in the Option Agreement evidencing such Option. The
vesting of any Option thereof that was permissible solely by reason of this Section 8.2 and the provisions of such Option Agreement
shall be conditioned upon the consummation of the Change in Control. Any Options which are neither assumed or substituted for by
the Acquiring Corporation in connection with the Change in Control nor exercised as of the date of the Change in Control shall
terminate and cease to be outstanding effective as of the date of 

    	15

    	

    

the Change
in Control. Notwithstanding the foregoing, shares acquired upon exercise of an Option prior to the Change in Control and any
consideration received pursuant to the Change in Control with respect to such shares shall continue to be subject to all
applicable provisions of the Option Agreement evidencing such Option except as otherwise provided in such Option Agreement.
Furthermore, notwithstanding the foregoing, if the corporation the stock of which is subject to the outstanding Options
immediately prior to an Ownership Change Event described in Section 8.1(a) constituting a Change in Control is the surviving
or continuing corporation and immediately after such Ownership Change Event less than fifty percent (50%) of the total
combined voting power of its voting stock is held by another corporation or by other corporations that are members of an
affiliated group within the meaning of Section 1504(a) of the Code without regard to the provisions of Section 1504(b) of the
Code, the outstanding Options shall not terminate unless the Board otherwise provides in its discretion.

 

		9.	Compliance With Law.

 

		9.1.	General. The grant of Options and the issuance of shares of Stock upon exercise of Options
shall be subject to compliance with all applicable requirements of federal, state and foreign law with respect to such securities.
Options may not be exercised if the issuance of shares of Stock upon exercise would constitute a violation of any applicable federal,
state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which
the Stock may then be listed. In addition, no Option may be exercised unless (a) a registration statement under the Securities
Act shall at the time of exercise of the Option be in effect with respect to the shares issuable upon exercise of the Option or
(b) in the opinion of legal counsel of the Company, the shares issuable upon exercise of the Option may be issued in accordance
with the terms of an applicable exemption from the registration requirements of the Securities Act. The inability of the Company
to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be
necessary to the lawful issuance and sale of any shares hereunder shall relieve the Company of any liability in respect of the
failure to issue or sell such shares as to which such requisite authority shall not have been obtained. As a condition to the exercise
of any Option, the Company may require the Optionee to satisfy any qualifications that may be necessary or appropriate, to evidence
compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested
by the Company. The Company will be under no obligation to register the Shares under the Securities Act, or to effect compliance
with the registration, qualification or listing requirements of any state securities laws, stock exchange or automated quotation
system, and the Company will have no liability for any inability or failure to do so.

 

		9.2.	Section 409A. Option awards under the Plan are intended not to provide for the deferral
of compensation for purposes of Code Section 409A, and the Plan and each Option Agreement shall be interpreted and administered
consistent with this intent. The Committee may amend any Option Agreement as necessary to confirm that such award

    	16

    	

    

does not provide
for a deferral of compensation for purposes of Code Section 409A. Neither the Company nor the Committee, nor any employee or officer
of either, shall have any liability for any tax imposed on a Participant under Code Section 409A with respect to the Plan, and
if any tax is imposed on a Participant, the Participant shall have no recourse against the Company or the Committee, or any employee
or officer of either, for payment of any such tax.

 

		10.	Termination Or Amendment Of Plan.

 

The Board may
terminate or amend the Plan at any time. However, subject to changes in applicable law, regulations or rules that would permit
otherwise, without the approval of a majority vote of the Company’s stockholders eligible to vote at a meeting of the Company’s
stockholders, there shall be (a) no increase in the maximum aggregate number of shares of Stock that may be issued under the Plan
(except by operation of the provisions of Section 4.2), (b) no change in the class of persons eligible to receive Incentive Stock
Options, (c) no reduction in the exercise price below 100% (110% in the case of an Incentive Stock Option granted to a 10% Holder)
of the Fair Market Value of the shares of Stock issuable upon exercise of Options at the time of the granting thereof, other than
to change the manner of determining the Fair Market Value thereof; (d) alter the maximum number of Shares available for the grant
of Options in the form of Incentive Stock Options; (e) no material increase in the benefits accruing to participants under the
Plan; (f) no modification of the requirements as to eligibility for participation in the Plan; (g) with respect to Options which
are Incentive Stock Options, amend the Plan in any respect which would cause such Options to no longer qualify for Incentive Stock
Option treatment pursuant to the Code; and (h) no other amendment of the Plan that would require approval of the Company’s
stockholders under any applicable law, regulation or rule. No termination or amendment of the Plan shall affect any then outstanding
Option unless expressly provided by the Board. In any event, no termination or amendment of the Plan may adversely affect any then
outstanding Option without the consent of the Optionee, unless such termination or amendment is required to enable an Option designated
as an Incentive Stock Option to qualify as an Incentive Stock Option or is necessary to comply with any applicable law, regulation
or rule.

 

		11.	Designation of Beneficiary by Participant.

 

An Optionee may
designate one or more beneficiaries to receive any rights and payments to which such participant may be entitled in respect of
any option granted under the Plan in the event of such participant’s death. Such designation shall be on a written form acceptable
to and filed with the Committee. The Committee shall have the right to review and approve beneficiary designations. An Optionee
may change the Optionee’s beneficiary(ies) from time to time in the same manner as the original designation, unless such
participant has made an irrevocable designation. Any designation of beneficiary under the Plan (to the extent it is valid and enforceable
under applicable law) shall be controlling over any other disposition, testamentary or otherwise, as determined by the Committee.
If no designated beneficiary survives the participant and is living on the date on which any right or amount becomes payable to
such participant’s beneficiary(ies), such payment will be made to the legal representatives of the participant’s estate,
and the

    	17

    	

    

term “beneficiary”
as used in the Plan shall be deemed to include such person or persons. If there is any question as to the legal right of any beneficiary
to receive a distribution under the Plan, the Committee may determine that the amount in question be paid to the legal representatives
of the estate of the participant, in which event the Company, the Committee, the Board and the Committee and the members thereof
will have no further liability to any person or entity with respect to such amount.

 

		12.	No Obligation to Employ.

 

The Plan shall not
constitute a contract of employment and nothing in this Plan shall confer or be deemed to confer on any participant any right to
continue in the employ of, or to continue any other relationship with, the Participating Company Group or limit in any way the
right of the Participating Company Group to terminate the participant’s employment or other relationship at any time, with
or without cause.

 

		13.	Non-exclusivity of the Plan.

 

Neither the adoption
of the Plan by the Board, the submission of the Plan to the stockholders of the Company for approval, nor any provision of this
Plan will be construed as creating any limitations on the power of the Board or the Committee to adopt such additional compensation
arrangements as the Board may deem desirable, including, without limitation, the granting of Options otherwise than under the Plan,
and such arrangements may be either generally applicable or applicable only in specific cases.

 

		14.	Governing Law.

 

The validity, construction,
interpretation, administration and effect of the Plan, and of its rules and regulations, and rights relating to the Plan and Options
granted under the Plan and any agreements in connection therewith, shall be governed by the substantive laws, but not the choice
of law rules, of the State of New York.

 

		15.	Stockholder Approval.

 

The Plan or any
increase in the maximum aggregate number of shares of Stock issuable thereunder as provided in Section 4.1 (the “Authorized
Shares”) shall be approved by the stockholders of the Company within twelve (12) months of the date of adoption thereof
by the Board. Option granted prior to stockholder approval of the Plan or in excess of the Authorized Shares previously approved
by the stockholders shall become exercisable no earlier than the date of stockholder approval of the Plan or such increase in the
Authorized Shares, as the case may be.

    	18

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