Document:

Exhibit 10.19

 

November 23, 2015

 

Global Defense
& National Security Systems, Inc.

11921 Freedom Drive

Suite 550

Reston, VA 20190

 

Re:  Share Contribution and Dividend Waiver

 

To Global Defense & National Security Systems, Inc.:

 

Reference is made to that certain Stock
Purchase Agreement, dated as of June 8, 2015, by and among Global Defense & National Security Systems, Inc. (“GDEF”),
STG Group, Inc., the stockholders of STG Group, Inc. (the “Stockholders”), Global Defense & National Security
Holdings LLC (the “Sponsor”) and Simon Lee as stockholders representative (the “Stock Purchase Agreement”).

 

1.           Pursuant to Section 1.2(a) of
the Stock Purchase Agreement, the Sponsor has agreed to contribute 445,161 shares (the “Sponsor Shares”) of
common stock of GDEF, par value $0.001 per share (“Common Stock”) to GDEF, immediately prior to the closing
(the “Closing”) of the transactions pursuant to the Stock Purchase Agreement (the “Share Contribution”).
In addition, in connection with the Closing, the Sponsor has agreed to transfer and assign 35,000 shares (the “Transfer
Shares”) of Common Stock to the Stockholders (the “Transfer”).

 

2.           Effective as of the Closing, the
Sponsor hereby contributes the Sponsor Shares to GDEF. The Sponsor hereby acknowledges that it shall take any and all actions
necessary or appropriate for the Sponsor to effectuate the Share Contribution and the Transfer.

 

3.           The board of directors of GDEF
has declared a dividend of 1 share of Common Stock for each 1.06 shares of Common Stock (the “Dividend Shares”),
payable to stockholders of record immediately following the closing of the transactions contemplated by the Stock Purchase Agreement.
The Sponsor hereby waives its right to receive any Dividend Shares other than with respect to any shares of Common Stock that
the Sponsor acquires pursuant to the Second Amended and Restated Backstop Common Stock Purchase Agreement, dated as of November 23,
2015, by and between GDEF and the Sponsor.

 

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of Page Left Intentionally Blank]

 

     

     

    

  

	 	Sincerely,  
	 	 
	 	Global Defense & National Security Holdings LLC
	 	 
	 	By:	Black Marlin Ltd, its Manager
	 	 	 
	 	 	By: 	/s/ Damian Perl
	 	 	Name: Damian Perl
	 	 	Title: Manager

 

Accepted and agreed:

 

GLOBAL DEFENSE & NATIONAL SECURITY

SYSTEMS, INC.

 

	By:	/s/ Frederic Cassis	 
	Name:  	 Frederic Cassis	 
	Title:   	 SecretaryExhibit 10.34

 

November 23, 2015

 

Global Defense & National Security Systems, Inc.

11921 Freedom Drive

Suite 550

Reston, Virginia 20190

 

Reference is made to that certain Stock
Purchase Agreement, dated as of June 8, 2015 (the “Stock Purchase Agreement”), by and among Global Defense &
National Security Systems, Inc. (“GDEF”), Global Defense & National Security Holdings, LLC (the “Sponsor”),
STG Group, Inc. (the “Company”), the undersigned stockholders of STG Group, Inc. (the “STG Stockholders”),
and Simon Lee as stockholders representative.

 

The board of directors of GDEF has declared
a dividend of 1 share of common stock, par value $0.0001 per share (the “GDEF Common Stock”), for each 1.06
shares of GDEF Common Stock (the “Dividend Shares”), payable to stockholders of record immediately following
the closing of the transactions contemplated by the Stock Purchase Agreement (the “Record Date”).

 

On the Record Date, the STG Stockholders
will be registered and beneficial owners of shares of GDEF Common Stock.

 

Subject to and conditioned upon the Sponsor
waiving its right to receive any and all Dividend Shares with respect to the shares of GDEF Common Stock issuable on the Record
Date (except for shares of GDEF Common Stock purchased by the Sponsor pursuant to and in accordance with that certain Second Amended
and Restated Backstop Common Stock Purchase Agreement, dated as of November 23, 2015, by and between GDEF and the Sponsor), and
without waiving any of the STG Stockholders’ respective rights under the Stock Purchase Agreement or any other agreement
or instrument entered into by them pursuant to or in connection with the Stock Purchase Agreement, each STG Stockholder hereby
waives its right to receive any and all Dividend Shares with respect to the shares of GDEF Common Stock issuable on the Record
Date, including the 35,000 shares of GDEF Common Stock received from the Sponsor on the Record Date (except for the 658,513 shares
of GDEF Common Stock received by the STG Stockholders in exchange for $7,000,000 of the Cash Consideration (as defined in the Stock
Purchase Agreement)).

 

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Blank]

 

     

     

    

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the date first set forth above.

 

COMPANY:

 

	 	GLOBAL DEFENSE & NATIONAL SECURITY SYSTEMS, INC.
	 	 	 
	 	By:	/s/ Damian Perl
	 	 	Name: Damian Perl
	 	 	Title: Chairman of the Board of Directors

 

STOCKHOLDERS:

 

	 	SIMON S. LEE MANAGEMENT TRUST
	 	 	 
	 	By:	/s/ Simon Lee
	 	 	Name: Simon Lee
	 	 	Title: Trustee
	 	 	 
	 	SIMON S. LEE FAMILY TRUST
	 	 	 
	 	By:	/s/ Julie Lee
	 	 	Name: Julie Lee
	 	 	Title: Trustee
	 	 	 
	 	AHL DESCENDANTS TRUST
	 	 	 
	 	By:	/s/ Julie Lee
	 	 	Name: Julie Lee
	 	 	Title: Trustee
	 	 	 
	 	JSL DESCENDANTS TRUST
	 	 	 
	 	By:	/s/ Simon Lee
	 	 	Name: Simon Lee
	 	 	Title: Trustee
	 	 	 
	 	BRIAN LEE FAMILY TRUST
	 	 	 
	 	By:	/s/ Simon Lee
	 	 	Name: Simon Lee
	 	 	Title: Trustee

 

[Signature Page to Stock Dividend Waiver
Agreement]Exhibit 10.35

 

GLOBAL
DEFENSE & NATIONAL SECURITY

SYSTEMS, INC.

2015
OMNIBUS INCENTIVE PLAN

 

1.Purposes of
the Plan. The purposes of this Plan are to attract and retain the best available personnel, to provide additional incentives
to Employees, Directors and Consultants and to promote the success of the Company’s business.

 

2.Definitions.
The following definitions shall apply as used herein and in the individual Award Agreements except as defined otherwise in an individual
Award Agreement. In the event a term is separately defined in an individual Award Agreement, such definition shall supersede the
definition contained in this Section 2.

 

(a)“Administrator”
means the Board or any of the Committees appointed to administer the Plan.

 

(b)“Affiliate”
and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 promulgated under the
Exchange Act.

 

(c)“Applicable
Laws” means the legal requirements relating to the Plan and the Awards under applicable provisions of federal securities
laws, state corporate and securities laws, the Code, the rules of any applicable stock exchange or national market system, and
the rules of any non-U.S. jurisdiction applicable to Awards granted to residents therein.

 

(d)
“Assumed” means that pursuant to a Corporate Transaction either (i) the Award is expressly affirmed by the
Company or

 

(ii) the contractual obligations
represented by the Award are expressly assumed (and not simply by operation of law) by the successor entity or its Parent in connection
with the Corporate Transaction with appropriate adjustments to the number and type of securities of the successor entity or its
Parent subject to the Award and the exercise price, base amount or purchase price thereof which at least preserves the compensation
element of the Award existing at the time of the Corporate Transaction as determined in accordance with the instruments evidencing
the agreement to assume the Award.

 

(e)“Award”
means the grant of an Option, SAR, Dividend Equivalent Right, Restricted Stock, Restricted Stock Unit, Cash- Based Award or other
right or benefit under the Plan.

 

(f)“Award
Agreement” means the written agreement evidencing the grant of an Award executed by the Company and the Grantee, including
any amendments thereto.

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

 

(h)“Cash-Based
Award” means an award denominated in cash that may be settled in cash and/or Shares, which may be subject to restrictions,
as established by the Administrator.

 

(i)“Change
in Control” means a change in ownership or control of the Company effected through either of the following transactions:

 

(i)the direct or indirect
acquisition by any person or related group of persons (other than an acquisition from or by the Company or by a Company-sponsored
employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control with, the
Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty
percent (50%) of the total combined voting power of the Company’s outstanding securities pursuant to a tender or exchange
offer made directly to the Company’s stockholders which a majority of the Continuing Directors who are not Affiliates or
Associates of the offeror do not recommend such stockholders accept, or

 

(ii)a change in the
composition of the Board over a period of twelve (12) months or less such that a majority of the Board members (rounded up to the
next whole number) ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who
are Continuing Directors.

 

(j)
“Code” means the Internal Revenue Code of 1986, as amended.

 

(k)
“Committee” means any committee composed of members of the Board appointed by the Board to administer the Plan.

 

(l)
“Common Stock” means the common stock of the Company.

 

(m)“Company”
means Global Defense & National Security Systems, Inc., a Delaware corporation, or any successor entity that adopts the Plan
in connection with a Corporate Transaction.

 

      

     

    

 

(n)“Consultant”
means any person (other than an Employee or a Director, solely with respect to rendering services in such person’s capacity
as a Director) who is engaged by the Company or any Related Entity to render consulting or advisory services to the Company or
such Related Entity.

 

(o)“Continuing
Directors” means members of the Board who either (i) have been Board members continuously for a period of at least twelve
(12) months or (ii) have been Board members for less than twelve (12) months and were elected or nominated for election as Board
members by at least a majority of the Board members described in clause (i) who were still in office at the time such election
or nomination was approved by the Board.

 

(p)“Continuous
Service” means that the provision of services to the Company or a Related Entity in any capacity of Employee, Director
or Consultant is not interrupted or terminated. In jurisdictions requiring notice in advance of an effective termination as an
Employee, Director or Consultant, Continuous Service shall be deemed terminated upon the actual cessation of providing services
to the Company or a Related Entity notwithstanding any required notice period that must be fulfilled before a termination as an
Employee, Director or Consultant can be effective under Applicable Laws. A Grantee’s Continuous Service shall be deemed to
have terminated either upon an actual termination of Continuous Service or upon the entity for which the Grantee provides services
ceasing to be a Related Entity. Continuous Service shall not be considered interrupted in the case of (i) any approved leave of
absence, (ii) transfers among the Company, any Related Entity, or any successor, in any capacity of Employee, Director or Consultant,
or (iii) any change in status as long as the individual remains in the service of the Company or a Related Entity in any capacity
of Employee, Director or Consultant (in each case, except as otherwise provided in the Award Agreement). Notwithstanding the foregoing,
except as otherwise determined by the Administrator, in the event of any spin-off of a Related Entity, service as an Employee,
Director or Consultant for such Related Entity following such spin-off shall be deemed to be Continuous Service for purposes of
the Plan and any Award under the Plan. An approved leave of absence shall include sick leave, military leave, or any other authorized
personal leave. For purposes of each Incentive Stock Option granted under the Plan, if such leave exceeds three (3) months, and
reemployment upon expiration of such leave is not guaranteed by statute or contract, then the Incentive Stock Option shall be treated
as a Non-Qualified Stock Option on the day three (3) months and one (1) day following the expiration of such three (3) month period.

 

(q)“Corporate
Transaction” means any of the following transactions, provided, however, that the Administrator shall determine under
parts (iv) and (v) whether multiple transactions are related, and its determination shall be final, binding and conclusive:

 

(i)a merger or consolidation
in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state
in which the Company is incorporated;

 

(ii)
the sale, transfer or other disposition of all or substantially all of the assets of the Company;

 

(iii)
the complete liquidation or dissolution of the Company;

 

(iv)any reverse merger
or series of related transactions culminating in a reverse merger (including, but not limited to, a tender offer followed by a
reverse merger) in which the Company is the surviving entity but (A) the shares of Common Stock outstanding immediately prior to
such merger are converted or exchanged by virtue of the merger into other property, whether in the form of securities, cash or
otherwise, or (B) in which securities possessing more than forty percent (40%) of the total combined voting power of the Company’s
outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to
such merger or the initial transaction culminating in such merger, but excluding any such transaction or series of related transactions
that the Administrator determines shall not be a Corporate Transaction; or

 

(v)acquisition in a
single or series of related transactions by any person or related group of persons (other than the Company or by a Company-sponsored
employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing
more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities but excluding any
such transaction or series of related transactions that the Administrator determines shall not be a Corporate Transaction.

 

(r)
“Covered Employee” means an Employee who is a “covered employee” under Section 162(m)(3) of the
Code.

 

(s)
“Director” means a member of the Board or the board of directors of any Related Entity.

 

(t)“Disability”
means as defined under the long-term disability policy of the Company or the Related Entity to which the Grantee provides services
regardless of whether the Grantee is covered by such policy. If the Company or the Related Entity to which the Grantee provides
service does not have a long-term disability plan in place, “Disability” means that a Grantee is unable to carry out
the responsibilities and functions of the position held by the Grantee by reason of any medically determinable physical or mental
impairment for a period of not less than ninety (90) consecutive days. A Grantee will not be considered to have incurred a Disability
unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator in its discretion.

 

      

     

    

 

(u)“Dividend
Equivalent Right” means a right entitling the Grantee to compensation measured by dividends paid with respect to Common
Stock, provided that no such right may be granted with respect to Options or SARs.

 

(v)“Employee”
means any person, including an Officer or Director, who is in the employ of the Company or any Related Entity, subject to the control
and direction of the Company or any Related Entity as to both the work to be performed and the manner and method of performance.
The payment of a director’s fee by the Company or a Related Entity shall not be sufficient to constitute “employment”
by the Company.

 

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

 

(x)
“Fair Market Value” means, as of any date, the value of Common Stock determined as follows:

 

(i)If the Common Stock
is listed on one or more established stock exchanges or national market systems, including without limitation The NASDAQ Global
Select Market, The NASDAQ Global Market or The NASDAQ Capital Market of The NASDAQ Stock Market LLC, its Fair Market Value shall
be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on the principal exchange or
system on which the Common Stock is listed (as determined by the Administrator) on the date of determination (or, if no closing
sales price or closing bid was reported on that date, as applicable, on the last trading date such closing sales price or closing
bid was reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

 

(ii)If the Common Stock
is regularly quoted on an automated quotation system (including the OTC Bulletin Board) or by a recognized securities dealer, its
Fair Market Value shall be the closing sales price for such stock as quoted on such system or by such securities dealer on the
date of determination, but if selling prices are not reported, the Fair Market Value of a share of Common Stock shall be the mean
between the high bid and low asked prices for the Common Stock on the date of determination (or, if no such prices were reported
on that date, on the last date such prices were reported), as reported in The Wall Street Journal or such other source as the Administrator
deems reliable; or

 

(iii)In
the absence of an established market for the Common Stock of the type described in (i) and (ii), above, the Fair Market Value thereof
shall be determined by the Administrator in good faith and in a manner consistent with Applicable Laws.

 

(y)
“Grantee” means an Employee, Director or Consultant who receives an Award under the Plan.

 

(z)“Incentive
Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the
Code.

 

(aa) “Non-Qualified Stock
Option” means an Option not intended to qualify as an Incentive Stock Option.

 

(bb) “Officer”
means a person who is an officer of the Company or a Related Entity within the meaning of Section 16 of the Exchange Act and the
rules and regulations promulgated thereunder.

 

(cc) “Option”
means an option to purchase Shares pursuant to an Award Agreement granted under the Plan.

 

(dd) “Parent”
means any corporation or other entity (other than the Company and including, but not limited to, partnerships and joint ventures)
in an unbroken chain of corporations and/or entities ending with the Company, if each of the corporations and/or entities (other
than the Company) owns, directly or indirectly, at least fifty percent (50%) of the total combined voting power of all classes
of stock or at least fifty percent (50%) of the combined equity of one of the other corporations and/or entities in such chain.
Notwithstanding the foregoing, for purposes of determining whether any individual may be a Participant for purposes of any grant
of Incentive Stock Options, “Parent” shall have the meaning ascribed to such term in Section 424(e) of the Code.

 

(ee) “Performance-Based
Compensation” means compensation qualifying as “performance-based compensation” under Section 162(m) of the
Code.

 

(ff) “Performance
Period” means the period of time during which the performance goals must be met in order to determine the degree of payout
and/or vesting with respect to, or the amount or entitlement to, an Award.

 

(gg) “Plan”
means this Company 2015 Omnibus Incentive Plan, as may be amended from time to time. (hh) “Related Entity” means
any Parent or Subsidiary of the Company.

 

      

     

    

 

(i)“Replaced”
means that pursuant to a Corporate Transaction the Award is replaced with a comparable stock award or a cash incentive award or
program of the Company, the successor entity (if applicable) or Parent of either of them which preserves the compensation element
of such Award existing at the time of the Corporate Transaction and provides for subsequent payout in accordance with the same
(or, for the Grantee, a more favorable) vesting schedule applicable to such Award. The determination of Award comparability shall
be made by the Administrator and its determination shall be final, binding and conclusive.

 

(jj) “Restricted Stock”
means Shares issued under the Plan to the Grantee for such consideration, if any, and subject to such restrictions on transfer,
rights of first refusal, repurchase provisions, forfeiture provisions, and other terms and conditions as established by the Administrator.

 

(kk) “Restricted
Stock Units” means an Award which may be earned in whole or in part upon the passage of time or the attainment of performance
criteria established by the Administrator and which may be settled for cash, Shares or other securities or a combination of cash,
Shares or other securities as established by the Administrator.

 

(ll) “Rule 16b-3”
means Rule 16b-3 promulgated under the Exchange Act or any successor thereto.

 

(mm) “SAR”
means a stock appreciation right entitling the Grantee to Shares or cash compensation, as established by the Administrator, measured
by appreciation in the value of Common Stock.

 

(nn) “Share”
means a share of the Common Stock.

 

(oo) “Subsidiary”
means any corporation in which the Company owns, directly or indirectly, at least fifty percent (50%) of the total combined voting
power of all classes of stock, or any other entity (including, but not limited to, partnerships and joint ventures) in which the
Company owns, directly or indirectly, at least fifty percent (50%) of the combined equity thereof.

 

Notwithstanding the foregoing,
for purposes of determining whether any individual may be a Participant for purposes of any grant of Incentive Stock Options, “Subsidiary”
shall have the meaning ascribed to such term in Section 424(f) of the Code.

 

3.
Stock and Cash Subject to the Plan.

 

(a)Subject to the
provisions of Section 10 below, the maximum aggregate number of Shares which may be issued pursuant to all Awards (including Incentive
Stock Options) is the lesser of (x) one million six hundred thousand (1,600,000) Shares and (y) 8% of the total Shares outstanding
immediately following the consummation of the business combination contemplated by the Stock Purchase Agreement, dated June 8,
2015, by and among the Company, Global Defense & National Security Holdings LLC, STG Group, Inc. (“STG”), the stockholders
of STG and Simon Lee as Stockholders’ Representative. The Shares to be issued pursuant to Awards may be authorized, but unissued,
or reacquired Common Stock.

 

(b)Any Shares covered
by an Award (or portion of an Award) which is forfeited, canceled or expires (whether voluntarily or involuntarily) shall be deemed
not to have been issued for purposes of determining the maximum aggregate number of Shares which may be issued under the Plan.
Shares that actually have been issued under the Plan pursuant to an Award shall not be returned to the Plan and shall not become
available for future issuance under the Plan, except that if unvested Shares are forfeited, or repurchased by the Company at the
lower of their original purchase price or their Fair Market Value at the time of repurchase, such Shares shall become available
for future grant under the Plan. Shares covered by an Award which are surrendered (i) in payment of the Award exercise or purchase
price (including pursuant to the “net exercise” of an option pursuant to Section 7(b)(v)) or (ii) in satisfaction of
tax withholding obligations incident to an Award shall be deemed to have been issued for purposes of determining the maximum number
of Shares which may be issued pursuant to all Awards under the Plan. All Shares covered by the portion of a SAR that is exercised
(whether or not Shares are actually issued to the Grantee upon exercise of the SAR) shall be considered issued pursuant to the
Plan.

 

4.
Administration of the Plan.

 

(a)Plan Administrator.

 

(i)Administration
with Respect to Directors and Officers. With respect to grants of Awards to Directors or Employees who are also Officers or
Directors of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee
shall be constituted in such a manner as to satisfy the Applicable Laws and to permit such grants and related transactions under
the Plan to be exempt from Section 16(b) of the Exchange Act in accordance with Rule 16b-3. Once appointed, such Committee shall
continue to serve in its designated capacity until otherwise directed by the Board.

 

      

     

    

 

(ii)Administration
With Respect to Consultants and Other Employees. With respect to grants of Awards to Employees or Consultants who are neither
Directors nor Officers of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board,
which Committee shall be constituted in such a manner as to satisfy the Applicable Laws. Once appointed, such Committee shall continue
to serve in its designated capacity until otherwise directed by the Board. The Board may authorize one or more Officers to grant
such Awards and may limit such authority as the Board determines from time to time.

 

(iii)Administration
With Respect to Covered Employees. Notwithstanding the foregoing, grants of Awards to any Covered Employee intended to qualify
as Performance-Based Compensation shall be made only by a Committee (or subcommittee of a Committee) which is comprised solely
of two or more Directors eligible to serve on a committee making Awards qualifying as Performance-Based Compensation. In the case
of such Awards granted to Covered Employees, references to the “Administrator” or to a “Committee” shall
be deemed to be references to such Committee or subcommittee.

 

(iv)Administration
Errors. In the event an Award is granted in a manner inconsistent with the provisions of this subsection (a), such Award shall
be presumptively valid as of its grant date to the extent permitted by the Applicable Laws.

 

(b)Powers of the
Administrator. Subject to Applicable Laws and the provisions of the Plan (including any other powers given to the Administrator
hereunder), and except as otherwise provided by the Board, the Administrator shall have the authority, in its discretion:

 

(i)to select the Employees,
Directors and Consultants to whom Awards may be granted from time to time hereunder;

 

(ii)
to determine whether and to what extent Awards are granted hereunder;

 

(iii)to determine
the number of Shares or the amount of cash or other consideration to be covered by each Award granted hereunder;

 

(iv)
to approve forms of Award Agreements for use under the Plan;

 

(v)
to determine the terms and conditions of any Award granted hereunder;

 

(vi)to amend the terms
of any outstanding Award granted under the Plan, provided that (A) any amendment that would adversely affect the Grantee’s
rights under an outstanding Award shall not be made without the Grantee’s written consent, provided, however, that an amendment
or modification that may cause an Incentive Stock Option to become a Non-Qualified Stock Option shall not be treated as adversely
affecting the rights of the Grantee, (B) the reduction of the exercise price of any Option awarded under the Plan and the base
amount of any SAR awarded under the Plan shall be subject to stockholder approval and (C) canceling an Option or SAR at a time
when its exercise price or base amount (as applicable) exceeds the Fair Market Value of the underlying Shares, in exchange for
another Option, SAR, Restricted Stock, or other Award or for cash shall be subject to stockholder approval, unless the cancellation
and exchange occurs in connection with a Corporate Transaction. Notwithstanding the foregoing, canceling an Option or SAR in exchange
for another Option, SAR, Restricted Stock, or other Award or for cash with an exercise price, purchase price or base amount (as
applicable) that is equal to or greater than the exercise price, purchase price or base amount (as applicable) of the original
Option or SAR shall not be subject to stockholder approval;

 

(vii)to prescribe,
amend and rescind rules and regulations relating to the Plan and to define terms not otherwise defined herein;

 

(viii)to construe
and interpret the terms of the Plan and Awards, including without limitation, any notice of award or Award Agreement, granted pursuant
to the Plan;

 

(ix)
to approve corrections in the documentation or administration of any Award;

 

(x)to grant Awards
to Employees, Directors and Consultants employed outside the United States or to otherwise adopt or administer such procedures
or subplans that the Administrator deems appropriate or necessary on such terms and conditions different from those specified in
the Plan as may, in the judgment of the Administrator, be necessary or desirable to further the purpose of the Plan; and

 

      

     

    

 

(xi)
to take such other action, not inconsistent with the terms of the Plan, as the Administrator deems appropriate.

 

The express grant in the
Plan of any specific power to the Administrator shall not be construed as limiting any power or authority of the Administrator;

provided that the Administrator may not exercise any right or power reserved to the Board. Any decision made, or action taken,
by the Administrator or in connection with the administration of this Plan shall be final, conclusive and binding on all persons
having an interest in the Plan.

 

(c)Indemnification.
In addition to such other rights of indemnification as they may have as members of the Board or as Officers or Employees of the
Company or a Related Entity, members of the Board and any Officers or Employees of the Company or a Related Entity to whom authority
to act for the Board, the Administrator or the Company is delegated shall be defended and indemnified by the Company to the extent
permitted by law on an after-tax basis against all reasonable expenses, including attorneys’ fees, actually and necessarily
incurred in connection with the defense of any claim, investigation, 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 Award granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement
is approved by the Company) or paid by them in satisfaction of a judgment in any such claim, investigation, action, suit or proceeding,
except in relation to matters as to which it shall be adjudged in such claim, investigation, action, suit or proceeding that such
person is liable for gross negligence, bad faith or intentional misconduct; provided, however, that within thirty (30) days after
the institution of such claim, investigation, action, suit or proceeding, such person shall offer to the Company, in writing, the
opportunity at the Company’s expense to defend the same.

 

5.Eligibility.
Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants. Incentive Stock Options may be
granted only to Employees of the Company or a Parent or a Subsidiary of the Company. An Employee, Director or Consultant who has
been granted an Award may, if otherwise eligible, be granted additional Awards. Awards may be granted to such Employees, Directors
or Consultants who are residing in non-U.S. jurisdictions as the Administrator may determine from time to time.

 

6.
Terms and Conditions of Awards.

 

(a)Types of Awards.
The Administrator is authorized under the Plan to award any type of arrangement to an Employee, Director or Consultant that is
not inconsistent with the provisions of the Plan and that by its terms involves or might involve the issuance of (i) Shares, (ii)
cash or (iii) an Option, a SAR, or similar right with a fixed or variable price related to the Fair Market Value of the Shares
and with an exercise or conversion privilege related to the passage of time, the occurrence of one or more events, or the satisfaction
of performance criteria or other conditions. Such awards include, without limitation, Options, SARs, sales or bonuses of Restricted
Stock, Restricted Stock Units, Cash-Based Awards, or Dividend Equivalent Rights, and an Award may consist of one such security
or benefit, or two (2) or more of them in any combination or alternative.

 

(b)Dividends and
Dividend Equivalent Rights. Dividends may be granted in connection with Restricted Stock and Dividend Equivalent Rights may
be granted in connection with Awards other than Options and SARs. Dividends payable in connection with Restricted Stock that vests
upon the attainment of performance criteria shall be held subject to the vesting of the underlying Restricted Stock. Dividend Equivalent
Rights granted in connection with a Restricted Stock Unit that vests based upon the attainment of performance criteria shall be
subject to the vesting of the underlying Restricted Stock Unit.

 

(c)Designation
of Award. Each Award shall be designated in the Award Agreement. In the case of an Option, the Option shall be designated as
either an Incentive Stock Option or a Non-Qualified Stock Option. However, notwithstanding such designation, an Option will qualify
as an Incentive Stock Option under the Code only to the extent the $100,000 limitation of Section 422(d) of the Code is not exceeded.
The $100,000 limitation of Section 422(d) of the Code is calculated based on the aggregate Fair Market Value of the Shares subject
to Options designated as Incentive Stock Options which become exercisable for the first time by a Grantee during any calendar year
(under all plans of the Company or any Parent or Subsidiary of the Company). For purposes of this calculation, Incentive Stock
Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares shall be determined
as of the grant date of the relevant Option. In the event that the Code or the regulations promulgated thereunder are amended after
the date the Plan becomes effective to provide for a different limit on the Fair Market Value of Shares permitted to be subject
to Incentive Stock Options, then such different limit will be automatically incorporated herein and will apply to any Options granted
after the effective date of such amendment.

 

      

     

    

 

(d)Conditions of
Award. Subject to the terms of the Plan, the Administrator shall determine the provisions, terms, and conditions of each Award
including, but not limited to, the Award vesting schedule, repurchase provisions, rights of first refusal, forfeiture provisions,
form of payment (cash, Shares, or other consideration) upon settlement of the Award, payment contingencies, and satisfaction of
any performance criteria. The performance criteria established by the Administrator for any Awards intended to be Performance-Based
Compensation shall be one of, or combination of, the following: net earnings or net income (before or after taxes); earnings per
share; revenues or sales (including net sales or revenue growth); net operating profit; return measures (including return on assets,
net assets, capital, invested capital, equity, sales, or revenue); cash flow (including operating cash flow, free cash flow, cash
flow return on equity, and cash flow return on investment); earnings before or after taxes, interest, depreciation, and/or amortization;
gross or operating margins; productivity ratios; share price (including growth measures and total stockholder return); expense
targets; margins; operating efficiency; market share; working capital targets and change in working capital; economic value added
or EVA® (net operating profit after tax minus the sum of capital multiplied by the cost of capital); or net operating income.
The performance criteria established by the Administrator for any Awards not intended to be Performance-Based Compensation may
be based on any one of, or combination of, the foregoing or any other performance criteria established by the Administrator. The
performance criteria may be applicable to the Company, Related Entities and/or any individual business units of the Company or
any Related Entity and may be measured annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established
target, to previous years’ results or to a designated comparison group, in each case as specified by the Administrator. Partial
achievement of the specified criteria may result in a payment or vesting corresponding to the degree of achievement as specified
in the Award Agreement. In addition, to the extent applicable to Awards intended to qualify as Performance-Based Compensation,
the performance criteria shall be calculated in accordance with generally accepted accounting principles, but excluding the effect
(whether positive or negative) of any change in accounting standards and any extraordinary, unusual or nonrecurring item, as determined
by the Administrator, occurring after the establishment of the performance criteria applicable to the Award intended to be Performance-Based
Compensation. Each such adjustment, if any, shall be made solely for the purpose of providing a consistent basis from period to
period for the calculation of performance criteria in order to prevent the dilution or enlargement of the Grantee’s rights
with respect to an Award intended to be Performance-Based Compensation.

 

(e)Acquisitions
and Other Transactions. The Administrator may issue Awards under the Plan in settlement, assumption or substitution for, outstanding
awards or obligations to grant future awards in connection with the Company or a Related Entity acquiring another entity, an interest
in another entity or an additional interest in a Related Entity whether by merger, stock purchase, asset purchase or other form
of transaction.

 

(f)Deferral of Award
Payment. The Administrator may establish one or more programs under the Plan to permit selected Grantees the opportunity to
elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that absent
the election would entitle the Grantee to payment or receipt of Shares or other consideration under an Award. The Administrator
may establish the election procedures, the timing of such elections, the mechanisms for payments of, and accrual of interest or
other earnings, if any, on amounts, Shares or other consideration so deferred, and such other terms, conditions, rules and procedures
that the Administrator deems advisable for the administration of any such deferral program.

 

(g)Separate Programs.
The Administrator may establish one or more separate programs under the Plan for the purpose of issuing particular forms of Awards
to one or more classes of Grantees on such terms and conditions as determined by the Administrator from time to time.

 

(h)
Individual Limitations on Awards.

 

(i)Individual Limit
for Options and SARs. For Awards of Options that are intended to be Performance-Based Compensation, the maximum number of Shares
with respect to which Options may be granted to any Grantee in any calendar year shall be six hundred thousand (600,000) Shares.

 

For Awards of SARs that
are intended to be Performance-Based Compensation, the maximum number of Shares with respect to which SARs may be granted to any
Grantee in any calendar year shall be six hundred thousand (600,000) Shares. The foregoing limitations shall be adjusted proportionately
in connection with any change in the Company’s capitalization pursuant to Section 10, below. To the extent required by Section
162(m) of the Code or the regulations thereunder, in applying the foregoing limitations with respect to a Grantee, if any Option
or SAR is canceled, the canceled Option or SAR shall continue to count against the maximum number of Shares with respect to which
Options and SARs may be granted to the Grantee. For this purpose, the repricing of an Option (or in the case of a SAR, the base
amount on which the stock appreciation is calculated is reduced to reflect a reduction in the Fair Market Value of the Common Stock)
shall be treated as the cancellation of the existing Option or SAR and the grant of a new Option or SAR.

 

      

     

    

 

(ii)Individual
Limit for Restricted Stock and Restricted Stock Units. For Awards of Restricted Stock that are intended to be Performance-Based
Compensation, the maximum number of Shares with respect to which such Restricted Stock may be granted to any Grantee in any calendar
year shall be three hundred thousand (300,000) Shares. For Awards of Restricted Stock Units that are intended to be Performance-Based
Compensation, the maximum number of Shares with respect to which such Restricted Stock Units may be granted to any Grantee in any
calendar year shall be three hundred thousand (300,000) Shares. The foregoing limitation shall be adjusted proportionately in connection
with any change in the Company’s capitalization pursuant to Section 10, below.

 

(iii)Individual
Limit for Cash-Based Awards. For Cash-Based Awards that are intended to be Performance-Based Compensation, with respect to
each twelve (12) month period that constitutes or is part of each Performance Period, the maximum amount that may be paid to a
Grantee pursuant to such Cash-Based Awards shall be $5,000,000.

 

(iv)Individual
Limit for Dividends and Dividend Equivalent Rights. For dividends and Dividend Equivalent Rights that are intended to be Performance-Based
Compensation, the maximum amount that may be paid or awarded to a Grantee pursuant to such dividends and Dividend Equivalent Rights
in any calendar year shall be $1,000,000 or the number of Shares having an aggregate Fair Market Value not in excess of such amount.

 

(i)Deferral.
If the vesting or receipt of Shares or cash under an Award is deferred to a later date, any amount (whether denominated in Shares
or cash) paid in addition to the original number of Shares or amount of cash subject to such Award will not be treated as an increase
in the number of Shares or amount of cash subject to the Award if the additional amount is based either on a reasonable rate of
interest or on one or more predetermined actual investments such that the amount payable by the Company at the later date will
be based on the actual rate of return of a specific investment (including any decrease as well as any increase in the value of
an investment).

 

(j)Early Exercise.
The Award Agreement may, but need not, include a provision whereby the Grantee may elect at any time while an Employee, Director
or Consultant to exercise any part or all of the Award prior to full vesting of the Award. Any unvested Shares received pursuant
to such exercise may be subject to a repurchase right in favor of the Company or a Related Entity or to any other restriction the
Administrator determines to be appropriate.

 

(k)Term of Award.
The term of each Award shall be the term stated in the Award Agreement, provided, however, that the term of an Award shall be no
more than ten (10) years from the date of grant thereof. However, in the case of an Incentive Stock Option granted to a Grantee
who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes
of stock of the Company or any Parent or Subsidiary of the Company, the term of the Incentive Stock Option shall be five (5) years
from the date of grant thereof or such shorter term as may be provided in the Award Agreement.

 

(l)Transferability
of Awards. Incentive Stock Options may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner
other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Grantee, only by
the Grantee. Other Awards shall be transferable (i) by will and by the laws of descent and distribution and (ii) during the lifetime
of the Grantee, to the extent and in the manner authorized by the Administrator but only to the extent such transfers are made
to family members, to family trusts, to family controlled entities, to charitable organizations, and pursuant to domestic relations
orders or agreements, in all cases without payment for such transfers to the Grantee. Notwithstanding the foregoing, the Grantee
may designate one or more beneficiaries of the Grantee’s Award in the event of the Grantee’s death on a beneficiary
designation form provided by the Administrator.

 

(m)Time of Granting
Awards. The date of grant of an Award shall for all purposes be the date on which the Administrator makes the determination
to grant such Award, or such other later date as is determined by the Administrator.

 

7.
Award Exercise Price, Base Amount or Purchase Price, Consideration and Taxes.

 

(a)Exercise or Purchase
Price. The exercise price, base amount or purchase price, if any, for an Award shall be as follows:

 

(i)In the case of an Incentive
Stock Option:

 

(A)granted to an Employee
who, at the time of the grant of such Incentive Stock Option owns stock representing more than ten percent (10%) of the voting
power of all classes of stock of the Company or any Parent or Subsidiary of the Company, the per Share exercise price shall be
not less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant; or

 

      

     

    

 

(B)granted to any
Employee other than an Employee described in the preceding paragraph, the per Share exercise price shall be not less than one hundred
percent (100%) of the Fair Market Value per Share on the date of grant.

 

(ii)In the case of
a Non-Qualified Stock Option, the per Share exercise price shall be not less than one hundred percent (100%) of the Fair Market
Value per Share on the date of grant.

 

(iii)In
the case of Awards intended to qualify as Performance-Based Compensation, the exercise price, base amount or purchase price, if
any, shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

 

(iv)In the case of
SARs, the base amount shall not be less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

 

(v)
In the case of other Awards, such price as is determined by the Administrator.

 

(vi)Notwithstanding
the foregoing provisions of this Section 7(a), in the case of an Award issued pursuant to Section 6 (e), above, the exercise price,
base amount or purchase price for the Award shall be determined in accordance with the provisions of the relevant instrument evidencing
the agreement to issue such Award.

 

(b)Consideration.
Subject to Applicable Laws, the consideration to be paid for the Shares to be issued upon exercise or purchase of an Award including
the method of payment, shall be determined by the Administrator. In addition to any other types of consideration the Administrator
may determine, the Administrator is authorized to accept as consideration for Shares issued under the Plan the following, provided
that the portion of the consideration equal to the par value of the Shares must be paid in cash or other legal consideration permitted
by the Delaware General Corporation Law:

 

(i)cash;

 

(ii)
check;

 

(iii)surrender of
Shares or delivery of a properly executed form of attestation of ownership of Shares as the Administrator may require which have
a Fair Market Value on the date of surrender or attestation equal to the aggregate exercise price of the Shares as to which said
Award shall be exercised;

 

(iv)with respect to
Options, payment through a broker-dealer sale and remittance procedure pursuant to which the Grantee (A) shall provide written
instructions to a Company designated brokerage firm to effect the immediate sale of some or all of the purchased Shares and remit
to the Company sufficient funds to cover the aggregate exercise price payable for the purchased Shares and (B) shall provide written
directives to the Company to deliver the certificates for the purchased Shares directly to such brokerage firm in order to complete
the sale transaction;

 

(v)with respect to
Options, payment through a “net exercise” such that, without the payment of any funds, the Grantee may exercise the
Option and receive the net number of Shares equal to (i) the number of Shares as to which the Option is being exercised, multiplied
by (ii) a fraction, the numerator of which is the Fair Market Value per Share (on such date as is determined by the Administrator)
less the exercise price per Share, and the denominator of which is such Fair Market Value per Share (the number of net Shares to
be received shall be rounded down to the nearest whole number of Shares); or

 

(vi)
any combination of the foregoing methods of payment.

 

The Administrator may at
any time or from time to time, by adoption of or by amendment to the standard forms of Award Agreement described in Section 4(b)(iv),
or by other means, grant Awards which do not permit all of the foregoing forms of consideration to be used in payment for the Shares
or which otherwise restrict one or more forms of consideration.

 

(c)Taxes. The
Company and any Related Entity shall have the power and the right to deduct or withhold, or require a Grantee to remit to the Company
or a Related Entity, an amount sufficient to satisfy any federal, state, local, domestic or foreign taxes required to be withheld
with respect to any taxable event arising with respect to an Award. The Administrator may require or may permit Grantees to elect
that the withholding requirement be satisfied, in whole or in part, by having the Company withhold, or by tendering to the Company,
Shares having a Fair Market Value equal to the minimum statutory withholding (based on minimum statutory withholding rates for
federal and state tax purposes, including payroll taxes) that could be imposed on the transaction and, in any case, which would
not result in additional accounting expense to the Company.

 

      

     

    

 

8.
Exercise of Award.

 

(a)
Procedure for Exercise; Rights as a Stockholder.

 

(i)Any Award granted
hereunder shall be exercisable at such times and under such conditions as determined by the Administrator under the terms of the
Plan and specified in the Award Agreement.

 

(ii)An
Award shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the
terms of the Award by the person entitled to exercise the Award and full payment for the Shares with respect to which the Award
is exercised has been made, including, to the extent selected, use of the broker-dealer sale and remittance procedure to pay the
purchase price as provided in Section 7(b)(iv).

 

(b)
Exercise of Award Following Termination of Continuous Service.

 

(i)An Award may not
be exercised after the termination date of such Award set forth in the Award Agreement and may be exercised following the termination
of a Grantee’s Continuous Service only to the extent provided in the Award Agreement.

 

(ii)Where the Award
Agreement permits a Grantee to exercise an Award following the termination of the Grantee’s Continuous Service for a specified
period, the Award shall terminate to the extent not exercised on the last day of the specified period or the last day of the original
term of the Award, whichever occurs first.

 

(iii)Any Award designated
as an Incentive Stock Option to the extent not exercised within the time permitted by law for the exercise of Incentive Stock Options
following the termination of a Grantee’s Continuous Service shall convert automatically to a Non-Qualified Stock Option and
thereafter shall be exercisable as such to the extent exercisable by its terms for the period specified in the Award Agreement.

 

9.
Conditions Upon Issuance of Shares.

 

(a)If at any time
the Administrator determines that the delivery of Shares pursuant to the exercise, vesting or any other provision of an Award is
or may be unlawful under Applicable Laws, the vesting or right to exercise an Award or to otherwise receive Shares pursuant to
the terms of an Award shall be suspended until the Administrator determines that such delivery is lawful and shall be further subject
to the approval of counsel for the Company with respect to such compliance. The Company shall have no obligation to effect any
registration or qualification of the Shares under federal or state laws.

 

(b)As a condition to
the exercise of an Award, the Company may require the person exercising such Award to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation is required by any Applicable Laws.

 

10.Adjustments Upon
Changes in Capitalization. Subject to any required action by the stockholders of the Company and Section 11 hereof, the number
and kind of Shares covered by each outstanding Award, and the number and kind of Shares which have been authorized for issuance
under the Plan but as to which no Awards have yet been granted or which have been returned to the Plan, the exercise price, base
amount or purchase price of each such outstanding Award, the numerical limits set forth in Section 6(h), as well as any other terms
that the Administrator determines require adjustment shall be proportionately adjusted for (i) any increase or decrease in the
number of issued Shares resulting from a stock split, reverse stock split, stock dividend, recapitalization, combination or reclassification
of the Shares, or similar transaction affecting the Shares, (ii) any other increase or decrease in the number of issued Shares
effected without receipt of consideration by the Company, or (iii) any other transaction with respect to Common Stock including
a corporate merger, consolidation, acquisition of property or stock, separation (including a spin-off or other distribution of
stock or property), reorganization, liquidation (whether partial or complete) or any similar transaction; provided, however that
conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.”
In the event of any distribution of cash or other assets to stockholders other than a normal cash dividend, the Administrator shall
also make such adjustments as provided in this Section 10 or substitute, exchange or grant Awards to effect such adjustments (collectively
“adjustments”). Any such adjustments to outstanding Awards will be effected in a manner that precludes the enlargement
of rights and benefits under such Awards. In connection with the foregoing adjustments, the Administrator may, in its discretion,
prohibit the exercise of Awards or other issuance of Shares, cash or other consideration pursuant to Awards during certain periods
of time. Except as the Administrator determines, no issuance by the Company of shares of any class, or securities convertible into
shares of any class, shall affect, and no adjustment by reason hereof shall be made with respect to, the number or price of Shares
subject to an Award.

 

      

     

    

 

11.
Corporate Transactions and Changes in Control.

 

(a)Termination of
Award to Extent Not Assumed in Corporate Transaction. Effective upon the consummation of a Corporate Transaction, all outstanding
Awards under the Plan shall terminate. However, all such Awards shall not terminate to the extent they are Assumed in connection
with the Corporate Transaction.

 

(b)Acceleration
of Award Upon Corporate Transaction or Change in Control. The Administrator shall have the authority, exercisable either in
advance of any actual or anticipated Corporate Transaction or Change in Control or at the time of an actual Corporate Transaction
or Change in Control and exercisable at the time of the grant of an Award under the Plan or any time while an Award remains outstanding,
to provide for the full or partial automatic vesting and exercisability of one or more outstanding unvested Awards under the Plan
and the release from restrictions on transfer and repurchase or forfeiture rights of such Awards in connection with a Corporate
Transaction or Change in Control, on such terms and conditions as the Administrator may specify. The Administrator also shall have
the authority to condition any such Award vesting and exercisability or release from such limitations upon the subsequent termination
of the Continuous Service of the Grantee within a specified period following the effective date of the Corporate Transaction or
Change in Control. The Administrator may provide that any Awards so vested or released from such limitations in connection with
a Corporate Transaction or Change in Control shall remain fully exercisable until the expiration or sooner termination of the Award.

 

(c)Effect of Acceleration
on Incentive Stock Options. Any Incentive Stock Option accelerated under this Section 11 in connection with a Corporate Transaction
or Change in Control shall remain exercisable as an Incentive Stock Option under the Code only to the extent the $100,000 dollar
limitation of Section 422(d) of the Code is not exceeded.

 

12.Effective Date
and Term of Plan. The Plan shall become effective upon the earlier to occur of its adoption by the Board or its approval by
the stockholders of the Company. It shall continue in effect for a term of ten (10) years unless sooner terminated. Subject to
Section 17, below, and Applicable Laws, Awards may be granted under the Plan upon its becoming effective.

 

13.
Amendment, Suspension or Termination of the Plan.

 

(a)The Board may at
any time amend, suspend or terminate the Plan; provided, however, that no such amendment shall be made without the approval of
the Company’s stockholders to the extent such approval is required by Applicable Laws, or if such amendment would lessen
the stockholder approval requirements of Section 4(b)(vi) or this Section 13(a).

 

(b)
No Award may be granted during any suspension of the Plan or after termination of the Plan.

 

(c)No suspension
or termination of the Plan (including termination of the Plan under Section 11, above) shall adversely affect any rights under
Awards already granted to a Grantee.

 

14.
Reservation of Shares.

 

(a)The Company, during
the term of the Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan.

 

(b)The inability of
the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s
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.

 

15.No Effect on
Terms of Employment/Consulting Relationship. The Plan shall not confer upon any Grantee any right with respect to the Grantee’s
Continuous Service, nor shall it interfere in any way with his or her right or the right of the Company or any Related Entity to
terminate the Grantee’s Continuous Service at any time, with or without cause, and with or without notice.

 

16.No Effect on
Retirement and Other Benefit Plans. Except as specifically provided in a retirement or other benefit plan of the Company or
a Related Entity, Awards shall not be deemed compensation for purposes of computing benefits or contributions under any retirement
plan of the Company or a Related Entity, and shall not affect any benefits under any other benefit plan of any kind or any benefit
plan subsequently instituted under which the availability or amount of benefits is related to level of compensation. The Plan is
not a “Pension Plan” or “Welfare Plan” under the Employee Retirement Income Security Act of 1974, as amended.

 

      

     

    

 

17.Stockholder
Approval. The grant of Incentive Stock Options under the Plan shall be subject to approval by the stockholders of the Company
within twelve (12) months before or after the date the Plan is adopted excluding Incentive Stock Options issued in substitution
for outstanding Incentive Stock Options pursuant to Section 424(a) of the Code. Such stockholder approval shall be obtained in
the degree and manner required under Applicable Laws. The Administrator may grant Incentive Stock Options under the Plan prior
to approval by the stockholders, but until such approval is obtained, no such Incentive Stock Option shall be exercisable. In the
event that stockholder approval is not obtained within the twelve (12) month period provided above, all Incentive Stock Options
previously granted under the Plan shall be exercisable as Non-Qualified Stock Options.

 

18.Unfunded Obligation.
Grantees shall have the status of general unsecured creditors of the Company. Any amounts payable to Grantees pursuant to the Plan
shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement
Income Security Act of 1974, as amended. Neither the Company nor any Related Entity shall be required to segregate any monies from
its general funds, or to create any trusts, or establish any special accounts with respect to such obligations. The Company shall
retain at all times beneficial ownership of any investments, including trust investments, which the Company may make to fulfill
its payment obligations hereunder. Any investments or the creation or maintenance of any trust or any Grantee account shall not
create or constitute a trust or fiduciary relationship between the Administrator, the Company or any Related Entity and a Grantee,
or otherwise create any vested or beneficial interest in any Grantee or the Grantee’s creditors in any assets of the Company
or a Related Entity. The Grantees shall have no claim against the Company or any Related Entity for any changes in the value of
any assets that may be invested or reinvested by the Company with respect to the Plan.

 

19.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.

 

20.Nonexclusivity
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 the Plan will be construed as creating any limitations on the power of the Board to adopt such additional
compensation arrangements as it may deem desirable, including, without limitation, the granting of Awards otherwise than under
the Plan, and such arrangements may be either generally applicable or applicable only in specific cases.

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