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spirit20181feeletterexec

                                                                EXECUTION VERSION                                                                                                                                 FEE LETTER                                                                         November 1, 2018                                                                                                                                                                                  BARCLAYS BANK PLC                               745 Seventh Avenue, 5th Floor  New York, New York 10019  Attention: Chin-Yong Choe  Telephone: 212-528-8159  Email: BarCapConduitOps@barclays.com;  ASGReports@barclays.com; chin- yong.choe@barclays.com;  peter.walgren@barclays.com;  tara.chick@barclays.com         Ladies and Gentlemen:          The undersigned refer to the CLASS A NOTE PURCHASE AGREEMENT, dated as of the date  hereof, by and among SPIRIT MASTER FUNDING, LLC, SPIRIT MASTER FUNDING II, LLC,  SPIRIT MASTER FUNDING III, LLC, SPIRIT MASTER FUNDING VI, LLC and SPIRIT FUNDING  VIII, LLC, each as a Co-Issuer, SPIRIT REALTY, L.P., as Support Provider and as Property Manager,  the Conduit Investors party thereto, the Funding Agents party thereto, the Committed Note Purchasers  party thereto and BARCLAYS BANK PLC, as Administrative Agent (as amended, restated,  supplemented or otherwise modified from time to time in accordance with the terms thereof, the “Series  2018-1 Class A Note Purchase Agreement”). Capitalized terms used herein but not expressly defined  herein shall have the meanings set forth or incorporated by reference in the Series 2018-1 Class A Note  Purchase Agreement.  This fee letter is the “Series 2018-1 Class A-1 Notes Fee Letter” defined and  described as such in the Series 2018-1 Class A Note Purchase Agreement, and confirms the Co-Issuers’  agreement with the other parties hereto to pay the following fees:          (1)   The Co-Issuers shall pay to BARCLAYS BANK PLC, for its own account, a non-              refundable up-front fee of 1.0% (100 bps) of the principal amount of its Commitment in               respect of the Series 2018-1 Class A-1 Notes on the Series 2018-1 Closing Date, earned,               due and payable on the Series 2018-1 Closing Date (the “Class A-1 Notes Upfront Fee”).          (2)   On each Payment Date that occurs over the Commitment Term (and each Payment Date               thereafter until such amounts are paid in full in accordance with the Priority of Payments),               the Co-Issuers shall, in accordance with Section 3.02(b) of the Series 2018-1 Class A               Note Purchase Agreement, pay to the Administrative Agent, for the benefit of each               Funding Agent, for the account of the related Committed Note Purchaser(s), undrawn               commitment fees (the “Undrawn Commitment Fees”) equal to 0.50% (50 bps) per               annum of the related Investor Group's Commitment Percentage of the daily average               Unused Amount (as defined below) for each day during the related Interest Accrual               Period, payable in arrears in accordance with the applicable provisions of the Indenture;               provided that Undrawn Commitment Fees shall not accrue or be payable to any Funding               Agent on any day on which an Investor in such Funding Agent’s Investor Group is a               Defaulting Investor.    For purposes of this section,     32727485  

 

                (x) “Used Amount” means the sum of the aggregate principal amount outstanding of all         Advances; and                 (y) “Unused Amount” means the amount by which (i) the aggregate Commitment         Amount exceeds (ii) the Used Amount.         (3)    The Co-Issuers shall pay to the Administrative Agent, for its own account, an annual fee  of $100,000.00, payable monthly in advance in installments of $8,333.33 commencing on the Series  2018-1 Closing Date and on each Payment Date thereafter, in accordance with the applicable provisions  of the Indenture (collectively, the “Administrative Agent Fees”).         Each Co-Issuer agrees that it is jointly and severally liable for the prompt payment of all fees set  forth herein.         This fee letter may be executed in any number of counterparts (which may include facsimile or  other electronic transmission of counterparts) and by the different parties hereto in separate counterparts,  each of which when so executed shall be deemed to be an original, and all of which together shall  constitute one and the same instrument.  This fee letter and all matters arising under or in any manner  relating to this fee letter shall be governed by, and construed in accordance with, the laws of the State of  New York.         The undersigned further understand that the terms of this fee letter are to be maintained in  confidence between us in accordance with Section 9.11 of the Series 2018-1 Class A Note Purchase  Agreement.                                    [Signature Pages Follow]                                                 2  32727485  

 

        IN WITNESS WHEREOF, the parties hereto have caused this Series 2018-1 Class A-1 Notes Fee  Letter to be duly executed by their duly authorized officers and delivered as of the day and year first above  written.                                                      SPIRIT MASTER FUNDING, LLC,                                                     as Co-Issuer                                                                    -     ~                                                     By:              ,f   -·                                                         Name:  Ricardo=R "ariguez                                                         Title: Authorized Signatory                                                      SPIRIT MASTER FUNDING II, LLC,                                                     as Co-Issuer                                                       By: __                                                         Name: Ricardo:;Jj;)=--- Rodriguez---­                                                         Title: Authorized Signatory                                                      SPIRIT MASTER FUNDING III, LLC,                                                     as Co-Issuer                                                      By: -      ------"===:),~,  -,::__t:>__ _                                                          Name:  Ricard'o f odriguez                                                         Title: Authorized Signatory                                                      SPIRIT MASTER FUNDING VI, LLC,                                                     as Co-Issuer                                                      By: _N_a_m_e_:_Ri_:~~~-d~o~~o-d-n-.gu~~~~~~~                                                         Title: AuthoriZfd Signatory                               Series 2018-1 Class A-1 Notes Fee Letter Signature Page  

 

                     SPIRIT MASTER FUNDING VIII, LLC,                       as Co-Issuer                         By:                           Name: Ricardo~ odriguez                            Title: A~ignatory                        Each Co-Issuer at the following address:                        2727 N. Harwood Street                       Ste 300                       Dallas, TX 75201    Series 2018-1 Class A-1 Notes Fee Letter Signature Page  

 

                       BARCLAYS    BANK  PLC,                         as a Committed ote Purchaser                               Name:                             Title:                           BARCLAY   S BANK  PLC.                         as the related funddnt                          By:         vZ:.._                             Name:                             Title:    Series 20 18-1 Class A- I otes Fee Letter Signature PageExhibit 10.1

 

PRECISION THERAPEUTICS INC. 

AMENDED AND RESTATED 2012 STOCK INCENTIVE PLAN

Effective March 22, 2019

 

TABLE OF CONTENTS 

 

 

	1.	 	Purpose	 	3	 
	 	 	 	 	 	 	 
	2.	 	Administration	 	3	 
	 	 	 	 	 	 	 
	3.	 	Eligible Participants	 	3	 
	 	 	 	 	 	 	 
	4.	 	Types of Incentives	 	3	 
	 	 	 	 	 	 	 
	5.	 	Shares Subject to the Plan	 	3	 
	 	 	5.1.	Number of Shares	 	4	 
	 	 	5.2.	Cancellation	 	4	 
	 	 	5.3.	Type of Common Stock	 	4	 
	 	 	5.4.	Limitation on Certain Grants	 	4	 
	 	 	 	 	 	 	 
	6.	 	Stock Options	 	4	 
	 	 	6.1.	Price	 	4	 
	 	 	6.2.	Number	 	4	 
	 	 	6.3.	Duration and Time for Exercise	 	4	 
	 	 	6.4.	Manner of Exercise	 	5	 
	 	 	6.5.	Incentive Stock Options	 	5	 
	 	 	 	 	 	 	 
	7.	 	Stock Appreciation Rights	 	6	 
	 	 	7.1.	Price	 	6	 
	 	 	7.2.	Number	 	6	 
	 	 	7.3.	Duration	 	6	 
	 	 	7.4.	Exercise	 	6	 
	 	 	7.5.	Issuance of Shares Upon Exercise	 	6	 
	 	 	 	 	 	 	 
	8.	 	Stock Awards, Restricted Stock and Restricted Stock Units	 	7	 
	 	 	8.1.	Number of Shares	 	7	 
	 	 	8.2.	Sale Price	 	7	 
	 	 	8.3.	Restrictions	 	7	 
	 	 	8.4.	Enforcement of Restrictions	 	7	 
	 	 	8.5.	End of Restrictions	 	7	 
	 	 	8.6.	Rights of Holders of Restricted Stock and Restricted Stock Units	 	8	 
	 	 	8.7.	Settlement of Restricted Stock Units	 	8	 
	 	 	8.8.	Dividend Equivalents	 	8	 
	 	 	 	 	 	 	 
	9.	 	Performance Awards	 	8	 
	 	 	9.1.	Performance Conditions	 	8	 
	 	 	9.2.	Performance Awards Granted to Designated Covered Employees	 	8	 

 

     

     

    

	 	 	9.3.	Written Determinations	 	9	 
	 	 	9.4.	Status of Performance Awards Under Code Section 162(m)	 	10	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

	10.	 	General	 	10	 
	 	 	10.1.	Plan Effective Date and Shareholder Approval; Termination of Plan	 	10	 
	 	 	10.2.	Duration	 	10	 
	 	 	10.3.	Non-transferability of Incentives	 	10	 
	 	 	10.4.	Effect of Termination or Death	 	11	 
	 	 	10.5.	Restrictions under Securities Laws	 	11	 
	 	 	10.6.	Adjustment	 	11	 
	 	 	10.7.	Incentive Plans and Agreements	 	11	 
	 	 	10.8.	Withholding	 	11	 
	 	 	10.9.	No Continued Employment, Engagement or Right to Corporate Assets	 	12	 
	 	 	10.10.	Payments Under Incentives	 	12	 
	 	 	10.11.	Amendment of the Plan	 	12	 
	 	 	10.12.	Amendment of Agreements for Incentives; No Repricing	 	12	 
	 	 	10.13.	Vesting Upon Change In Control	 	12	 
	 	 	10.14.	Sale, Merger, Exchange or Liquidation	 	14	 
	 	 	10.15.	Definition of Fair Market Value	 	15	 
	 	 	10.16.	Definition of Grant Date	 	15	 
	 	 	10.17.	Compliance with Code Section 409A	 	15	 
	 	 	10.18.	Prior Plan	 	16	 

 

 

 

 

 

 

 

    	 	2	 

     

    

PRECISION THERAPEUTICS INC. 

AMENDED AND RESTATED 2012 STOCK INCENTIVE PLAN

 

1. Purpose. The purpose of the Amended
and Restated 2012 Stock Incentive Plan (the “Plan”) of Precision Therapeutics Inc. (the “Company”) is to
increase shareholder value and to advance the interests of the Company by furnishing a variety of economic incentives (“Incentives”)
designed to attract, retain and motivate employees, certain key consultants and directors of the Company. Incentives may consist
of opportunities to purchase or receive shares of Common Stock, $0.01 par value, of the Company (“Common Stock”) or
other incentive awards on terms determined under this Plan.

 

2. Administration. The Plan shall be
administered by the board of directors of the Company (the “Board of Directors”) or by a stock option or compensation
committee (the “Committee”) of the Board of Directors. The Committee shall consist of not less than two directors of
the Company and shall be appointed from time to time by the Board of Directors. Each member of the Committee shall be (a) a “non-employee
director” within the meaning of Rule 16b-3 of the Securities Exchange Act of 1934 (including the regulations promulgated
thereunder, the “1934 Act”) (a “Non-Employee Director”), and (b) shall be an “outside director”
within the meaning of Section 162(m) under the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations
promulgated thereunder (“Code Section 162(m)”). The Committee shall have complete authority to award Incentives under
the Plan, to interpret the Plan, and to make any other determination which it believes necessary and advisable for the proper administration
of the Plan. The Committee’s decisions and matters relating to the Plan shall be final and conclusive on the Company and
its participants. If at any time there is no stock option or compensation committee, the term “Committee”, as used
in the Plan, shall refer to the Board of Directors. Notwithstanding the foregoing or anything else to the contrary contained in
the Plan, the Company’s Chief Executive Officer or Chief Financial Officer may, on a discretionary basis and without the
Committee’s review or approval, grant Stock Options to purchase up to 25,000 shares each to employees of the Company who
are not officers of the Company. Such discretionary Stock Option grants shall not exceed 100,000 shares in total in any fiscal
year. Subject to the foregoing limitations, the Chief Executive Officer or Chief Financial Officer shall determine from time to
time (i) the employees to whom grants will be made, (ii) the number of shares to be granted and (iii) the terms and provisions
of each Stock Option (which need not be identical).

 

3. Eligible Participants. Officers of
the Company, employees of the Company or its subsidiaries, members of the Board of Directors, and consultants or other independent
contractors who provide services to the Company or its subsidiaries shall be eligible to receive Incentives under the Plan when
designated by the Committee. Participants may be designated individually or by groups or categories (for example, by pay grade)
as the Committee deems appropriate. Participation by officers of the Company or its subsidiaries and any performance objectives
relating to such officers must be approved by the Committee. Participation by others and any performance objectives relating to
others may be approved by groups or categories (for example, by pay grade) and authority to designate participants who are not
officers and to set or modify such targets may be delegated.

 

4. Types of Incentives. Incentives under
the Plan may be granted in any one or a combination of the following forms: (a) incentive stock options and non-statutory stock
options (Section 6); (b) stock appreciation rights (“SARs”) (Section 7); (c) stock awards (Section 8); (d) restricted
stock (Section 8); restricted stock units (Section 8) and performance awards (Section 9). Subject to the specific limitations provided
in this Plan, payment of Incentives may be in the form of cash, Common Stock or combinations thereof as the Committee shall determine,
and with such other restrictions as it may impose.

 

5. Shares Subject to the Plan.

 

    	 	3	 

     

    

5.1. Number of Shares. Subject
to adjustment as provided in Section 10.6, the number of shares of Common Stock which may be issued under the Plan shall not exceed
10,000,000 shares of Common Stock. In addition, as of the Effective Date, any shares available in the reserve of the Prior Plan
(as defined in Section 10.18) shall be added to the Plan share reserve and be available for issuance under the Plan. Any Shares
delivered under the Plan may consist, in whole or in part, of authorized and unissued shares or treasury shares. Shares of Common
Stock that are issued under the Plan or are subject to Incentives awarded under the Plan will be applied to reduce the maximum
number of shares of Common Stock remaining available for issuance under the Plan.

 

5.2. Cancellation. If an
Incentive granted under the Plan or under the Prior Plan expires or is terminated or canceled unexercised as to any shares of Common
Stock or forfeited or reacquired by the Company pursuant to rights reserved upon issuance thereof, such forfeited and reacquired
shares may again be issued under the Plan pursuant to another Incentive. If any Shares subject to an Incentive granted under the
Plan or under the Prior Plan are withheld or applied as payment in connection with the exercise of an Incentive (including the
withholding of Shares on the exercise of a stock option or the exercise of an SAR that is settled in Shares) or the withholding
or payment of taxes related thereto, such Shares shall not again be available for grant under the Plan.

  

5.3. Type of Common Stock.
Common Stock issued under the Plan in connection with Incentives will be authorized and unissued shares.

 

5.4.       Limitation
on Certain Grants. During any one fiscal year, no person shall receive Incentives under the Plan that could result in that
person receiving, earning or acquiring, subject to the adjustments described in Section 10.6: (a) Stock Options and SARs for, in
the aggregate, more than 2,000,000 shares of Common Stock; or (b) Performance Awards, in the aggregate, for more than 1,000,000
shares of Common Stock or, if payable in cash, with a maximum amount payable exceeding $2,000,000.

 

6. Stock Options. A stock option is
a right to purchase shares of Common Stock from the Company. Each stock option granted by the Committee under this Plan shall be
subject to the following terms and conditions:

 

6.1. Price. The option price
per share shall be determined by the Committee, subject to adjustment under Section 10.6. Notwithstanding the foregoing sentence,
the option price per share shall not be less than the Fair Market Value (as defined in Section 10.15) of the Common Stock on the
Grant Date (as defined in Section 10.16).

  

6.2. Number. The number of
shares of Common Stock subject to a stock option shall be determined by the Committee, subject to adjustment as provided in Section
10.6. The number of shares of Common Stock subject to a stock option shall be reduced in the same proportion that the holder thereof
exercises an SAR if any SAR is granted in conjunction with or related to the stock option. If the number of shares subject to a
stock option is reduced pursuant to the preceding sentence, the number of shares subject to the original grant will continue to
count against the limitation on grants under Section 5.4.

 

6.3. Duration and Time for Exercise.
Subject to earlier termination as provided in Section 10.3, the term of each stock option shall be determined by the Committee
but shall not exceed ten years and one day from the Grant Date. Each stock option shall become exercisable at such time or times
during its term as shall be determined by the Committee at the time of grant. The Committee may accelerate the exercisability of
any stock option. Subject to the first sentence of this paragraph, the Committee may extend the term of any stock option to the
extent provided in Section 10.4.

 

    	 	4	 

     

    

6.4. Manner of Exercise.
A stock option may be exercised, in whole or in part, by giving written notice to the Company, specifying the number of shares
of Common Stock to be purchased and accompanied by the full purchase price for such shares. The option price shall be payable (a)
in United States dollars upon exercise of the option and may be paid by cash, uncertified or certified check or bank draft; (b)
unless otherwise provided in the option agreement, by delivery of shares of Common Stock in payment of all or any part of the option
price, which shares shall be valued for this purpose at the Fair Market Value on the date such option is exercised; or (c) unless
otherwise provided in the option agreement, by instructing the Company to withhold from the shares of Common Stock issuable upon
exercise of the stock option shares of Common Stock in payment of all or any part of the exercise price and/or any related withholding
tax obligations consistent with Section 10.8, which shares shall be valued for this purpose at the Fair Market Value or in such
other manner as may be authorized from time to time by the Committee. Before the issuance of shares of Common Stock upon the exercise
of a stock option, a participant shall have no rights as a shareholder.

 

6.5. Incentive Stock Options.
Notwithstanding anything in the Plan to the contrary, the following additional provisions shall apply to the grant of stock options
which are intended to qualify as Incentive Stock Options (as such term is defined in Code Section 422):

 

(a)    The aggregate
Fair Market Value (determined as of the time the option is granted) of the shares of Common Stock with respect to which Incentive
Stock Options are exercisable for the first time by any participant during any calendar year (under all of the Company’s
plans) shall not exceed $100,000. The determination will be made by taking Incentive Stock Options into account in the order in
which they were granted. If such excess only applies to a portion of an Incentive Stock Option, the Committee, in its discretion,
will designate which shares will be treated as shares to be acquired upon exercise of an Incentive Stock Option.

  

(b)   Any option agreement
for an Incentive Stock Option under the Plan shall contain such other provisions as the Committee shall deem advisable, but shall
in all events be consistent with and contain all provisions required in order to qualify the options as Incentive Stock Options.

 

(c)    All Incentive
Stock Options must be granted within ten years from the earlier of the date on which this Plan was adopted by Board of Directors
or the date this Plan was approved by the shareholders.

 

(d)   Unless sooner exercised,
all Incentive Stock Options shall expire no later than ten years after the Grant Date.

 

(e)    The option
price for Incentive Stock Options shall be not less than the Fair Market Value of the Common Stock subject to the option on the
Grant Date.

 

(f)    If Incentive
Stock Options are granted to any participant who, at the time such option is granted, would own (within the meaning of Code Section
422) stock possessing more than 10% of the total combined voting power of all classes of stock of the employer corporation or of
its parent or subsidiary corporation, (i) the option price for such Incentive Stock Options shall be not less than 110% of the
Fair Market Value of the Common Stock subject to the option on the Grant Date and (ii) such Incentive Stock Options shall expire
no later than five years after the Grant Date.

 

    	 	5	 

     

    

7. Stock Appreciation Rights. An SAR
is a right to receive, without payment to the Company, a number of shares of Common Stock, the amount of which is determined pursuant
to the formula set forth in Section 7.5. An SAR may be granted (a) with respect to any stock option granted under this Plan, either
concurrently with the grant of such stock option or at such later time as determined by the Committee (as to all or any portion
of the shares of Common Stock subject to the stock option), or (b) alone, without reference to any related stock option. Each SAR
granted by the Committee under this Plan shall be subject to the following terms and conditions:

 

7.1. Price. The exercise
price per share of any SAR granted without reference to a stock option shall be determined by the Committee, subject to adjustment
under Section 10.6. Notwithstanding the foregoing sentence, the exercise price per share shall not be less than the Fair Market
Value of the Common Stock on the Grant Date.

 

7.2. Number. Each SAR granted
to any participant shall relate to such number of shares of Common Stock as shall be determined by the Committee, subject to adjustment
as provided in Section 10.6. In the case of an SAR granted with respect to a stock option, the number of shares of Common Stock
to which the SAR relates shall be reduced in the same proportion that the holder of the option exercises the related stock option.
If the number of shares subject to an SAR is reduced pursuant to the preceding sentence, the number of shares subject to the original
grant will continue to count against the limitation on grants under Section 5.4.

 

7.3. Duration. Subject to
earlier termination as provided in Section 10.3, the term of each SAR shall be determined by the Committee but shall not exceed
ten years and one day from the Grant Date. Unless otherwise provided by the Committee, each SAR shall become exercisable at such
time or times, to such extent and upon such conditions as the stock option, if any, to which it relates is exercisable. The Committee
may in its discretion accelerate the exercisability of any SAR. Subject to the first sentence of this paragraph, the Committee
may extend the term of any SAR to the extent provided in Section 10.4.

  

7.4. Exercise. An SAR may
be exercised, in whole or in part, by giving written notice to the Company, specifying the number of SARs which the holder wishes
to exercise. Upon receipt of such written notice, the Company shall, within 90 days thereafter, deliver to the exercising holder
certificates for the shares of Common Stock or cash or both, as determined by the Committee, to which the holder is entitled pursuant
to Section 7.5.

 

7.5. Issuance of Shares Upon
Exercise. The number of shares of Common Stock which shall be issuable upon the exercise of an SAR shall be determined by dividing:

 

(a)    the number
of shares of Common Stock as to which the SAR is exercised multiplied by the amount of the appreciation in such shares (for this
purpose, the “appreciation” shall be the amount by which the Fair Market Value of the shares of Common Stock subject
to the SAR on the exercise date exceeds (1) in the case of an SAR related to a stock option, the purchase price of the shares of
Common Stock under the stock option or (2) in the case of an SAR granted alone, without reference to a related stock option, an
amount which shall be determined by the Committee at the time of grant, subject to adjustment under Section 10.6); by

 

(b)   the Fair Market
Value of a share of Common Stock on the exercise date.

 

No fractional shares of Common Stock
shall be issued upon the exercise of an SAR; instead, the holder of the SAR shall be entitled to receive a cash adjustment equal
to the same fraction of the Fair Market Value of a share of Common Stock on the exercise date or to purchase the portion necessary
to make a whole share at its Fair Market Value on the date of exercise.

 

    	 	6	 

     

    

8. Stock Awards, Restricted Stock and Restricted
Stock Units. A stock award consists of the transfer by the Company to a participant of shares of Common Stock, with or without
other payment therefor, as additional compensation for services to the Company. A share of restricted stock consists of shares
of Common Stock which are sold or transferred by the Company to a participant at a price, if any, determined by the Committee and
subject to restrictions on their sale or other transfer by the participant. Restricted stock units represent the right to receive
shares of Common Stock at a future date. The transfer of Common Stock pursuant to stock awards, ,the transfer or sale of restricted
stock and restricted stock units shall be subject to the following terms and conditions:

 

8.1. Number of Shares. The
number of shares to be transferred or sold by the Company to a participant pursuant to a stock award or as restricted stock, or
the number of shares that may be issued pursuant to a restricted stock unit, shall be determined by the Committee.

 

8.2. Sale Price. The Committee
shall determine the price, if any, at which shares of restricted stock shall be sold to a participant, which may vary from time
to time and among participants and which may be below the Fair Market Value of such shares of Common Stock at the date of sale.

 

8.3. Restrictions. All shares
of restricted stock transferred or sold by the Company hereunder, and all restricted stock units granted hereunder, shall be subject
to such restrictions as the Committee may determine, including, without limitation any or all of the following:

 

(a)    a prohibition
against the sale, transfer, pledge or other encumbrance of the shares of restricted stock, or the delivery of shares pursuant to
restricted stock units, such prohibition to lapse at such time or times as the Committee shall determine (whether in annual or
more frequent installments, at the time of the death, disability or retirement of the holder of such shares, or otherwise);

 

(b)   a requirement that
the holder of shares of restricted stock or restricted stock units forfeit, or (in the case of shares sold to a participant) re-sell
back to the Company at his or her cost, all or a part of such shares in the event of termination of his or her employment, service
on the Board of Directors or consulting engagement during any period in which such shares are subject to restrictions; and

 

(c)    such other
conditions or restrictions as the Committee may deem advisable. 

 

8.4. Enforcement of Restrictions.
In order to enforce the restrictions imposed by the Committee pursuant to Section 8.3, the participant receiving restricted stock
or restricted stock units shall enter into an agreement with the Company setting forth the conditions of the grant. Shares of restricted
stock shall be registered in the name of the participant and deposited, together with a stock power endorsed in blank, with the
Company. Each such certificate shall bear a legend that refers to the Plan and the restrictions imposed under the applicable agreement.
At the Committee’s election, shares of restricted stock may be held in book entry form subject to the Company’s instructions
until any restrictions relating to the restricted stock grant lapse.

 

8.5. End of Restrictions.
Subject to Section 10.5, at the end of any time period during which the shares of restricted stock are subject to forfeiture and
restrictions on transfer, such shares will be delivered free of all restrictions to the participant or to the participant’s
legal representative, beneficiary or heir. Subject to Section 10.5, upon the lapse or waiver of restrictions applicable to restricted
stock units, or at a later time specified in the agreement governing the grant of restricted stock units, any shares derived from
the restricted stock units shall be issued and delivered to the holder of the restricted stock units.

 

    	 	7	 

     

    

8.6. Rights of Holders of Restricted
Stock and Restricted Stock Units. Subject to the terms and conditions of the Plan, each participant receiving restricted stock
shall have all the rights of a shareholder with respect to shares of stock during any period in which such shares are subject to
forfeiture and restrictions on transfer, including without limitation, the right to vote such shares. Any holder of restricted
stock units shall not be, and shall not have rights and privileges of, a shareholder with respect to any shares that may be derived
from the restricted stock units unless and until such shares have been issued.

  

8.7. Settlement of Restricted
Stock Units.  Restricted stock units may be satisfied by delivery of shares of stock, cash equal to the Fair Market
Value of the specified number of shares covered by the restricted stock units, or a combination thereof, as determined by the Committee
at the date of grant or thereafter.

 

8.8. Dividend Equivalents.
In connection with any award of restricted stock units, the Committee may grant the right to receive cash, shares of stock or other
property equal in value to dividends paid with respect to the number of shares represented by the restricted stock units (“Dividend
Equivalents”). Unless otherwise determined by the Committee at the date of grant, any Dividend Equivalents that are granted
with respect to any award of restricted stock units shall be either (a) paid with respect to such restricted stock units at the
dividend payment date in cash or in shares of unrestricted stock having a Fair Market Value equal to the amount of such dividends,
or (b) deferred with respect to such restricted stock units and the amount or value thereof automatically deemed reinvested in
additional restricted stock units until the time for delivery of shares (if any) pursuant to the terms of the restricted stock
unit award.

 

9. Performance Awards.

 

9.1. Performance Conditions.
The right of a participant to exercise or receive a grant or settlement of any Incentive, and the timing thereof, may be subject
to such performance conditions as may be specified by the Committee (such an Incentive is referred to as a “Performance Award”).
The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance
conditions, and may exercise its discretion to reduce the amounts payable under any Incentive subject to performance conditions,
except as limited under Section 9.2 hereof in the case of a Performance Award intended to qualify under Code Section 162(m). If
and to the extent required under Code Section 162(m), any power or authority relating to a Performance Award intended to qualify
under Code Section 162(m), shall be exercised by the Committee as the Committee and not the Board.

 

9.2. Performance Awards Granted
to Designated Covered Employees. If and to the extent the Committee determines that a Performance Award to be granted to a
person who is designated by the Committee as likely to be a covered employee within the meaning of Code Section 162(m) and regulations
thereunder (a “Covered Employee”) should qualify as "performance-based compensation" for purposes of Code
Section 162(m), the grant, exercise, and/or settlement of such Performance Award shall be contingent upon achievement of pre-established
performance goals and other terms set forth in this Section 9.2.

   

(a)    Performance
Goals Generally. The performance goals for such Performance Awards shall consist of one or more business criteria and a targeted
level or levels of performance with respect to each of such criteria, as specified by the Committee consistent with this Section
9.2. Performance goals shall be objective and shall otherwise meet the requirements of Code Section 162(m), including but not limited
to the requirement that the level or levels of performance targeted by the Committee result in the achievement of performance goals
being "substantially uncertain" at the time the Performance Award is granted. The Committee may determine that such Performance
Awards shall be granted, exercised, and/or settled upon achievement of any one performance goal, or that two or more of the performance
goals must be achieved as a condition to grant, exercise, and/or settlement of such Performance Awards. Performance goals may differ
for Performance Awards granted to any one participant or to different participants.

 

    	 	8	 

     

    

(b)   Business Criteria.
One or more of the following business criteria for the Company, on a consolidated basis, and/or specified subsidiaries or business
units of the Company, shall be used exclusively by the Committee in establishing performance goals for such Performance Awards
as are intended to qualify as “performance-based” compensation within the meaning of Section 162(m) of the Code: earnings
per share, operating income or profit, net income, gross or net sales, expenses, expenses as a percentage of net sales, inventory
turns, cash flow (including, but not limited to, operating cash flow, free cash flow, cash flow return on equity, and cash flow
return on investment), gross profit, margins, working capital, earnings before interest and tax (EBIT), earnings before interest,
tax, depreciation and amortization (EBITDA), return measures (including, but not limited to, return on assets, capital, invested
capital, equity, sales, or revenue), revenue growth, share price (including, but not limited to, growth measures and total shareholder
return), operating efficiency, productivity ratios, market share, economic value added and safety (or any of the above criteria
as compared to the performance of a group of comparable companies, or any published or special index that the Committee, in its
sole discretion, deems appropriate), or the Committee may select criteria based on the Company’s share price as compared
to various stock market indices. The Committee, in its sole discretion, may modify the performance goals if it determines that
circumstances have changed and modification is required to reflect the original intent of the performance goals; provided, however,
that no such change or modification may be made to the extent it increases the amount of compensation payable to any participant
who is a Covered Employee.

 

(c)    Performance
Period; Timing For Establishing Performance Goals. Achievement of performance goals in respect of such Performance Awards shall
be measured over a performance period of up to ten (10) years, as specified by the Committee. Performance goals shall be established
not later than ninety (90) days after the beginning of any performance period applicable to such Performance Awards, or at such
other date as may be required or permitted for "performance-based compensation" under Code Section 162(m).

  

(d)   Settlement of
Performance Awards; Other Terms. Settlement of such Performance Awards shall be in cash, stock, other Incentives or other property,
in the discretion of the Committee. The Committee may, in its discretion, reduce the amount of a settlement otherwise to be made
in connection with such Performance Awards. The Committee shall specify the circumstances in which such Performance Awards shall
be paid or forfeited in the event of termination of continuous service by the participant before the end of a performance period
or the settlement date of Performance Awards.

 

9.3. Written Determinations.
All determinations by the Committee as to the establishment of performance goals, the amount of any Performance Award pool or potential
individual Performance Awards, and as to the achievement of performance goals relating to Performance Awards under Section 9.2(a),
shall be made in writing in the case of any Performance Award intended to qualify under Code Section 162(m). The Committee may
not delegate any responsibility relating to such Performance Awards if and to the extent required to comply with Code Section 162(m).

 

    	 	9	 

     

    

9.4. Status of Performance Awards
Under Code Section 162(m). It is the intent of the Company that Performance Awards granted under this Section 9 to persons
who are designated by the Committee as likely to be Covered Employees shall, if so designated by the Committee, constitute "qualified
performance-based compensation" within the meaning of Code Section 162(m). Accordingly, the terms of Sections 9.2, 9.3 and
9.4, including the definitions of Covered Employee and other terms used therein, shall be interpreted in a manner consistent with
Code Section 162(m). Notwithstanding the foregoing, because the Committee cannot determine with certainty whether a given Participant
will be a Covered Employee with respect to a fiscal year that has not yet been completed, the term Covered Employee as used herein
shall mean only a person designated by the Committee, at the time of grant of Performance Awards, as likely to be a Covered Employee
with respect to that fiscal year. If any provision of the Plan or any agreement relating to such Performance Awards does not comply
or is inconsistent with the requirements of Code Section 162(m), such provision shall be construed or deemed amended to the extent
necessary to conform to such requirements.

 

10.       General.

 

10.1. Plan Effective Date and
Shareholder Approval; Termination of Plan. The Plan shall become effective on the Effective Date, subject to subsequent approval
within twelve (12) months of its adoption by the Board by shareholders of the Company eligible to vote in the election of directors,
by a vote sufficient to meet the requirements of Code Sections 162(m) (if applicable) and 422, Rule 16b-3 under the Exchange Act
(if applicable), applicable requirements of any stock exchange, if any, and other laws, regulations, and obligations of the Company
applicable to the Plan. Awards may be granted subject to shareholder approval, but may not be exercised or otherwise settled in
the event shareholder approval is not obtained. The Plan shall terminate no later than ten (10) years from the date of the later
of (x) the Effective Date and (y) the date an increase in the number of shares reserved for issuance under the Plan is approved
by the Board (so long as such increase is also approved by the shareholders).

 

10.2. Duration. The Plan
shall remain in effect until all Incentives granted under the Plan have either been satisfied by the issuance of shares of Common
Stock or the payment of cash or been terminated under the terms of the Plan and all restrictions imposed on shares of Common Stock
in connection with their issuance under the Plan have lapsed. No Incentives may be granted under the Plan after the tenth anniversary
of the Effective Date of the Plan.

 

10.3. Non-transferability of
Incentives. No stock option, SAR, restricted stock or stock award may be transferred, pledged or assigned by the holder thereof
(except, in the event of the holder’s death, by will or the laws of descent and distribution to the limited extent provided
in the Plan or the Incentive, or pursuant to a qualified domestic relations order as defined by the Code or Title I of the Employee
Retirement Income Security Act, or the rules thereunder), and the Company shall not be required to recognize any attempted assignment
of such rights by any participant. Notwithstanding the preceding sentence, stock options (other than stock options intended to
qualify as Incentive Stock Options pursuant to Section 6.5) may be transferred by the holder thereof to the holder’s spouse,
children, grandchildren or parents (collectively, the “Family Members”), to trusts for the benefit of Family Members,
to partnerships or limited liability companies in which Family Members are the only partners or shareholders, or to entities exempt
from federal income taxation pursuant to Code Section 501(c)(3). During a participant’s lifetime, a stock option may be exercised
only by him or her, by his or her guardian or legal representative or by the transferees permitted by this Section 10.3.

 

    	 	10	 

     

    

10.4. Effect of Termination or
Death. If a participant ceases to be an employee of or consultant to the Company for any reason, including death or disability,
any Incentives may be exercised or shall expire at such times as may be set forth in the agreement, if any, applicable to the Incentive,
or otherwise as determined by the Committee; provided, however, the term of an Incentive may not be extended beyond the term originally
prescribed when the Incentive was granted, unless the Incentive satisfies (or is amended to satisfy) the requirements of Code Section
409A, including the rules and regulations promulgated thereunder (together, “Code Section 409A”); and provided further
that the term of an Incentive may not be extended beyond the maximum term permitted under this Plan.

 

10.5. Restrictions under Securities
Laws. Notwithstanding anything in this Plan to the contrary: (a) the Company may, if it shall determine it necessary or desirable
for any reason, at the time of award of any Incentive or the issuance of any shares of Common Stock pursuant to any Incentive,
require the recipient of the Incentive, as a condition to the receipt thereof or to the receipt of shares of Common Stock issued
pursuant thereto, to deliver to the Company a written representation of present intention to acquire the Incentive or the shares
of Common Stock issued pursuant thereto for his or her own account for investment and not for distribution; and (b) if at any time
the Company further determines, in its sole discretion, that the listing, registration or qualification (or any updating of any
such document) of any Incentive or the shares of Common Stock issuable pursuant thereto is necessary on any securities exchange
or under any federal or state securities or blue sky law, or that the consent or approval of any governmental regulatory body is
necessary or desirable as a condition of, or in connection with the award of any Incentive, the issuance of shares of Common Stock
pursuant thereto, or the removal of any restrictions imposed on such shares, such Incentive shall not be awarded or such shares
of Common Stock shall not be issued or such restrictions shall not be removed, as the case may be, in whole or in part, unless
such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not
acceptable to the Company.

  

10.6. Adjustment. In the
event of any recapitalization, stock dividend, stock split, combination of shares or other change in the Common Stock, the number
of shares of Common Stock then subject to the Plan, including shares subject to outstanding Incentives, and the other numbers of
shares of Common Stock provided in the Plan, shall be adjusted in proportion to the change in outstanding shares of Common Stock.
In the event of any such adjustments, the purchase price of any option, the performance objectives of any Incentive, and the shares
of Common Stock issuable pursuant to any Incentive shall be adjusted as and to the extent appropriate, in the discretion of the
Committee, to provide participants with the same relative rights before and after such adjustment.

 

10.7. Incentive Plans and Agreements.
Except in the case of stock awards, the terms of each Incentive shall be stated in a plan or agreement approved by the Committee.
The Committee may also determine to enter into agreements with holders of options to reclassify or convert certain outstanding
options, within the terms of the Plan, as Incentive Stock Options or as non-statutory stock options and in order to eliminate SARs
with respect to all or part of such options and any other previously issued options. The Committee shall communicate the key terms
of each award to the participant promptly after the Committee approves the grant of such award.

 

10.8. Withholding.

 

(a)    The Company
shall have the right to withhold from any payments made under the Plan or to collect as a condition of payment, any taxes required
by law to be withheld. If so permitted by the Committee at the time of the award of any Incentive or at a later time, at any time
when a participant is required to pay to the Company an amount required to be withheld under applicable income tax laws in connection
with a distribution of Common Stock or upon exercise of an option or SAR or upon vesting of restricted stock, the participant may
satisfy this obligation in whole or in part by electing (the “Election”) to have the Company withhold, from the distribution
or from such shares of restricted stock, shares of Common Stock having a value up to the minimum amount of withholding taxes required
to be collected on the transaction. The value of the shares to be withheld shall be based on the Fair Market Value of the Common
Stock on the date that the amount of tax to be withheld shall be determined (“Tax Date”).

 

    	 	11	 

     

    

(b)   Each Election must
be made before the Tax Date. The Committee may disapprove of any Election, may suspend or terminate the right to make Elections,
or may provide with respect to any Incentive that the right to make Elections shall not apply to such Incentive. An Election is
irrevocable.

 

10.9. No Continued Employment,
Engagement or Right to Corporate Assets. No participant under the Plan shall have any right, because of his or her participation,
to continue in the employ of the Company for any period of time or to any right to continue his or her present or any other rate
of compensation. Nothing contained in the Plan shall be construed as giving an employee, a consultant, such persons’ beneficiaries
or any other person any equity or interests of any kind in the assets of the Company or creating a trust of any kind or a fiduciary
relationship of any kind between the Company and any such person.

 

10.10. Payments Under Incentives.
Payment of cash or distribution of any shares of Common Stock to which a participant is entitled under any Incentive shall be made
as provided in the Incentive. Except as permitted under Section 10.17, payments and distributions may not be deferred under any
Incentive unless the deferral complies with the requirements of Code Section 409A.

 

10.11. Amendment of the Plan.
The Board of Directors may amend or discontinue the Plan at any time. However, no such amendment or discontinuance shall adversely
change or impair, without the consent of the recipient, an Incentive previously granted. Further, no such amendment shall, without
approval of the shareholders of the Company, (a) increase the maximum number of shares of Common Stock which may be issued to all
participants under the Plan, (b) change or expand the types of Incentives that may be granted under the Plan, (c) change the class
of persons eligible to receive Incentives under the Plan, or (d) materially increase the benefits accruing to participants under
the Plan.

 

10.12. Amendment of Agreements
for Incentives; No Repricing. Except as otherwise provided in this Section 10.12 or Section 10.17, the terms of an existing
Incentive may be amended by agreement between the Committee and the participant. Notwithstanding the foregoing sentence, in the
case of a stock option or SAR, no such amendment shall (a) without shareholder approval, lower the exercise price of a previously
granted stock option or SAR, cancel a stock option or SAR when the exercise price per share exceeds the Fair Market Value of the
underlying shares in exchange for another Incentive or cash, or take any other action with respect to a stock option that may be
treated as a repricing under the federal securities laws or generally accepted accounting principles; or (b) extend the term of
the Incentive, except as provided in Sections 10.4 and 10.17.

  

10.13. Vesting Upon Change In
Control. Upon the occurrence of an event satisfying the definition of “Change in Control” with respect to a particular
Incentive, unless otherwise provided in the agreement for the Incentive, such Incentive shall become vested and all restrictions
shall lapse. The Committee may, in its discretion, include such further provisions and limitations in any agreement for an Incentive
as it may deem desirable. For purposes of this Section 10.13, “Change in Control” means the occurrence of any one or
more of the following:

 

    	 	12	 

     

    

(a)    a merger,
consolidation, statutory exchange or reorganization approved by the Company’s shareholders, unless securities representing
more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the successor corporation
are immediately thereafter beneficially owned directly or indirectly and in substantially the same proportion, by the persons who
beneficially owned the Company’s outstanding voting securities immediately prior to such transaction;

 

(b)   any transaction
or series of related transactions pursuant to which any person or any group of persons comprising a “group” within
the meaning of Rule 13d-5(b)(1) under the Securities Exchange Act of 1934, as amended (other than the Company or a person that,
prior to such transaction or series of related transactions, directly or indirectly controls, is controlled by or is under common
control with, the Company) becomes directly or indirectly the beneficial owner (within the meaning of Rule 13d-3 of the Securities
Exchange Act of 1934, as amended) of securities possessing (or convertible into or exercisable for securities possessing) thirty
percent (30%) or more of the total combined voting power of the securities (determined by the power to vote with respect to the
elections of Board members) outstanding immediately after the consummation of such transaction or series of related transactions,
whether such transaction involves a direct issuance from the Company or the acquisition of outstanding securities held by one or
more of the Company’s shareholders;

 

(c)    there is consummated
a sale, lease, exclusive license, or other disposition of all or substantially all of the consolidated assets of the Company and
its subsidiaries, other than a sale, lease, license, or other disposition of all or substantially all of the consolidated assets
of the Company and its subsidiaries to an entity, more than fifty percent (50%) of the combined voting power of the voting securities
of which are owned by shareholders of the Company in substantially the same proportions as their ownership of the Company immediately
prior to such sale, lease, license, or other disposition; or

 

(d)   individuals who,
on the Effective Date, are Directors (the “Incumbent Board”) cease for any reason to constitute at least a majority
of the Directors; provided, however, that if the appointment or election (or nomination for election) of any new Director was approved
or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes
of this Plan, be considered as a member of the Incumbent Board.

  

Notwithstanding the foregoing or any other provision
of this Plan, (i) the definition of Change in Control (or any analogous term) in an individual written agreement between the Company
and the Participant shall supersede the foregoing definition with respect to Incentives subject to such agreement (it being understood,
however, that if no definition of Change in Control or any analogous term is set forth in such an individual written agreement,
the foregoing definition shall apply); (ii) for clarification, a “Change in Control” shall not be deemed to have occurred
for purposes of the foregoing clause (b) as the result of the acquisition of additional securities by Dr. Samuel Herschkowitz,
Joshua Kornberg or their affiliates; and (iii) a “Change in Control” shall not be deemed to have occurred for purposes
of the foregoing clause (b) solely as the result of a repurchase or other acquisition of securities by Company which, by reducing
the number of shares of Voting Securities outstanding, increases the proportionate number of Voting Securities beneficially owned
by any person to thirty percent (30%) or more of the combined voting power of all of the then outstanding Voting Securities; provided,
however, that if any person referred to in this clause (iii) shall thereafter become the beneficial owner of any additional shares
of Voting Securities (other than pursuant to a stock split, stock dividend, or similar transaction or as a result of an acquisition
of securities directly from Company) and immediately thereafter beneficially owns thirty percent (30%) or more of the combined
voting power of all of the then outstanding Voting Securities, then a “Change in Control” shall be deemed to have occurred
for purposes of the foregoing clause (b).

 

    	 	13	 

     

    

10.14. Sale, Merger, Exchange
or Liquidation. Unless otherwise provided in the agreement for an Incentive, in the event of an acquisition of the Company
through the sale of substantially all of the Company’s assets or through a merger, exchange, reorganization or liquidation
of the Company or a similar event as determined by the Committee (collectively a “transaction”), the Committee shall
be authorized, in its sole discretion, to take any and all action it deems equitable under the circumstances, including but not
limited to any one or more of the following:

 

(a)    providing
that the Plan and all Incentives shall terminate and the holders of (i) all outstanding vested options shall receive, in lieu of
any shares of Common Stock they would be entitled to receive under such options, such stock, securities or assets, including cash,
as would have been paid to such participants if their options had been exercised and such participant had received Common Stock
immediately before such transaction (with appropriate adjustment for the exercise price, if any), (ii) SARs that entitle the participant
to receive Common Stock shall receive, in lieu of any shares of Common Stock each participant was entitled to receive as of the
date of the transaction pursuant to the terms of such Incentive, if any, such stock, securities or assets, including cash, as would
have been paid to such participant if such Common Stock had been issued to and held by the participant immediately before such
transaction, and (iii) any Incentive under the Employment Agreement which does not entitle the participant to receive Common Stock
shall be equitably treated as determined by the Committee.

 

(b)   providing that participants
holding outstanding vested Common Stock based Incentives shall receive, with respect to each share of Common Stock issuable pursuant
to such Incentives as of the effective date of any such transaction, at the determination of the Committee, cash, securities or
other property, or any combination thereof, in an amount equal to the excess, if any, of the Fair Market Value of such Common Stock
on a date within ten days before the effective date of such transaction over the option price or other amount owed by a participant,
if any, and that such Incentives shall be cancelled, including the cancellation without consideration of all options that have
an exercise price below the per share value of the consideration received by the Company in the transaction.

 

(c)    providing
that the Plan (or replacement plan) shall continue with respect to Incentives not cancelled or terminated as of the effective date
of such transaction and provide to participants holding such Incentives the right to earn their respective Incentives on a substantially
equivalent basis (taking into account the transaction and the number of shares or other equity issued by such successor entity)
with respect to the equity of the entity succeeding the Company by reason of such transaction.

 

(d)   to the extent that
the vesting of any Incentives is not accelerated pursuant to Section 10.13, providing that all unvested, unearned or restricted
Incentives, including but not limited to restricted stock for which restrictions have not lapsed as of the effective date of such
transaction, shall be void and deemed terminated, or, in the alternative, for the acceleration or waiver of any vesting, earning
or restrictions on any Incentive.

  

    	 	14	 

     

    

The Board of Directors may restrict
the rights of participants or the applicability of this Section 10.14 to the extent necessary to comply with Section 16(b) of the
1934 Act, the Code or any other applicable law or regulation. The grant of an Incentive award pursuant to the Plan shall not limit
in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital
or business structure or to merge, exchange or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business
or assets.

 

10.15. Definition of Fair Market
Value. For purposes of this Plan, the “Fair Market Value” of a share of Common Stock at a specified date shall,
unless otherwise expressly provided in this Plan, be the amount which the Committee determines in good faith to be 100% of the
fair market value of such a share as of the date in question. Notwithstanding the foregoing:

 

(a)    If such shares
are listed on a U.S. securities exchange, then Fair Market Value shall be determined by reference to the last sale price of a share
of Common Stock on such U.S. securities exchange on the applicable date. If such U.S. securities exchange is closed for trading
on such date, or if the Common Stock does not trade on such date, then the last sale price used shall be the one on the date the
Common Stock last traded on such U.S. securities exchange.

 

(b)   If such shares are
publicly traded but are not listed on a U.S. securities exchange, then Fair Market Value shall be determined by reference to the
trading price of a share of Common Stock on such date (or, if the applicable market is closed on such date, the last date on which
the Common Stock was publicly traded), by a method consistently applied by the Committee.

 

(c)    If such shares
are not publicly traded, then the Committee’s determination will be based upon a good faith valuation of the Company’s
Common Stock as of such date, which shall be based upon such factors as the Committee deems appropriate. The valuation shall be
accomplished in a manner that complies with Code Section 409A and shall be consistently applied to Incentives under the Plan.

 

10.16. Definition of Grant Date.
For purposes of this Plan, the “Grant Date” of an Incentive shall be the date on which the Committee approved the award
or, if later, the date established by the Committee as the date of grant of the Incentive.

 

10.17. Compliance with Code Section 409A.

 

(a)    Except to
the extent such acceleration or deferral is permitted by the requirements of Code Section 409A, neither the Committee nor a participant
may accelerate or defer the time or schedule of any payment of, or the amount scheduled to be paid under, an Incentive that constitutes
Deferred Compensation (as defined in paragraph(d) below); provided, however, that payment shall be permitted if it is in accordance
with a “specified time” or “fixed schedule” or on account of “separation from service,” “disability,”
death, “change in control” or “ unforeseeable emergency” (as those terms are defined under Code Section
409A) that is specified in the agreement evidencing the Incentive.

 

(b)   Notwithstanding
anything in this Plan, unless the agreement evidencing the Incentive specifically provides otherwise, if a participant is treated
as a Specified Employee (as defined in paragraph (d) and as determined under Code Section 409A by the Committee in good faith)
as of the date of his or her “separation from service” as defined for purposes of Code Section 409A, the Company may
not make payment to the participant of any Incentive that constitutes Deferred Compensation, earlier than 6 months following the
participant’s separation from service (or if earlier, upon the Specified Employee’s death), except as permitted under
Code Section 409A. Any payments that otherwise would be payable to the Specified Employee during the foregoing 6-month period will
be accumulated and payment delayed until the first date after the 6-month period. The Committee may specify in the Incentive agreement,
that the amount of the Deferred Compensation delayed under this paragraph shall accumulate interest, earnings or Dividend Equivalents
(as applicable) during the period of such delay.

 

    	 	15	 

     

    

(c)    The Committee
may, however, reform any provision in an Incentive that is intended to comply with (or be exempt from) Code Section 409A, to maintain
to the maximum extent practicable the original intent of the applicable provision without violating the provisions of Code Section
409A.

 

(d)   For purposes of
this Section 10.17, "Deferred Compensation" means any Incentive under this Plan that provides for the “deferral
of compensation” under a “nonqualified deferred compensation plan” (as those terms are defined under Code Section
409A) and that would be subject to the taxes specified in Code Section 409A(a)(1) if and to the extent that the Plan and the agreement
evidencing the Incentive do not meet or are not operated in compliance with the requirements of paragraphs (a)(2), (a)(3) and (a)(4)
of Code Section 409A . Deferred Compensation shall not include any amount that is otherwise exempt from the requirements of Code
Section 409A. A “Specified Employee” means a Participant who is a “key employee” as described in Code Section
416 (i) (disregarding paragraph (5) thereof) at any time during the Company’s fiscal year ending on January 31, or such other
“identification date” that applies consistently for all plans of the Company that provide “deferred compensation”
that is subject to the requirements of Code Section 409A. Each participant will be identified as a Specified Employee in accordance
with Code Section 409A, including with respect to the merger of the Company with any other company or any spin-off or similar transaction,
and such identification shall apply for the 12-month period commencing on the first day of the fourth month following the identification
date. Notwithstanding the foregoing, no participant shall be a Specified Employee unless the stock of the Company (or other member
of a “controlled group of corporations” as determined under Code Section 1563) is publicly traded on an established
securities market (or otherwise) as of the date of the participant’s “separation from service” as defined in
Code Section 409A.

 

10.18. Prior Plan. Notwithstanding
the adoption of this Plan by the Board of Directors and its approval by the shareholders, the Company’s 2008 Equity Incentive
Plan, as it has been amended from time to time (the “Prior Plan”), shall remain in effect, and all grants and awards
made under the Prior Plan shall be governed by the terms of the Prior Plan. From and after the Effective Date, no further grants
and awards shall be made under the Prior Plan.

 

 

 

 

16

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