Document:

EX-4.7

 Exhibit 4.7 

FORM 51-102F3 
 MATERIAL
CHANGE REPORT 
  

			
	Item 1 -		Name and Address of Company:
		
			Cynapsus Therapeutics Inc.
			828 Richmond Street West
			Toronto, Ontario M6J 1C9
		
			(the “Corporation”)
		
	Item 2 -		Date of Material Change:
		
			March 11, 2015.
		
	Item 3 -		News Release:
		
			A news release was issued on March 11, 2015, a copy of which is annexed hereto as Schedule “A”.
		
	Item 4 -		Summary of Material Change:
		
			Cynapsus Therapeutics Inc. (TSX: CTH) (OTCQX: CYNAF) today announced that it has completed an End-of-Phase 2 meeting with the U.S. Food and Drug Administration (FDA) regarding Cynapsus’ APL-130277 drug candidate for the
acute rescue of OFF episodes associated with Parkinson’s disease (PD) and has received the final meeting minutes. At the meeting, agreement was reached on the design, duration and size for the Phase 3 program clinical studies, as well as for
primary and key secondary endpoints. As a result, Cynapsus plans to initiate a pivotal Phase 3 program evaluating the safety and efficacy of APL-130277 in PD patients in the second quarter of 2015.
		
	Item 5 -		Full Description of Material Change:
		
			See attached news release.
		
	Item 6 -		Reliance on Subsection 7.1(2) or (3) of National Instrument 51-102
		
			Not Applicable.
		
	Item 7 -		Omitted Information:
		
			Not Applicable.

			
		
	Item 8 -		Executive Officer:
		
			For further information, please contact:
		
			Andrew Williams
			Chief Operating Officer / Chief Financial Officer
			828 Richmond Street West
			Toronto, Ontario M6J 1C9
		
			Telephone: (416) 703-2449 (ext. 253)
		
	Item 9 -		Date of Report:
		
			DATED at Toronto, Ontario, this 11th day of March, 2015.

 SCHEDULE “A” 

PRESS RELEASE 
 Cynapsus Therapeutics Provides Clinical
and Regulatory Update for APL-130277 for the Acute Rescue of OFF Motor Symptoms of Parkinson’s Disease 
  

	 	•	 	Details of the Phase 3 Pivotal Program to Begin in the Second Quarter of 2015 

  

	 	•	 	Received Final Minutes From End-of-Phase 2 Meeting with U.S. FDA 

  

	 	•	 	Summary of Updated CTH-105 Phase 2 Trial Data 

 March 11, 2015 

TORONTO (BUSINESS WIRE) – Cynapsus Therapeutics Inc. (TSX: CTH) (OTCQX: CYNAF) today announced that it has completed an End-of-Phase 2 meeting with
the U.S. Food and Drug Administration (FDA) regarding Cynapsus’ APL-130277 drug candidate for the acute rescue of OFF episodes associated with Parkinson’s disease (PD) and has received the final meeting minutes. At the meeting, agreement
was reached on the design, duration and size for the Phase 3 program clinical studies, as well as for primary and key secondary endpoints. As a result, Cynapsus plans to initiate a pivotal Phase 3 program evaluating the safety and efficacy of
APL-130277 in PD patients in the second quarter of 2015. 
 “We are very pleased with the outcome of our End-of-Phase 2 meeting with the FDA and
appreciate their constructive feedback on our development program. We now have the Agency’s guidance on the safety and efficacy requirements for completion of a registration program for APL-130277 in patients with Parkinson’s
disease,” said Anthony Giovinazzo, President and CEO of Cynapsus. “A great deal of effort and planning have gone into preparing for our Phase 3 development program, and we are now focused on the initiation of the CTH-300 and CTH-301 Phase
3 studies in the second quarter of this year with a view to submitting a New Drug Application (NDA) in 2016.” 
 Updated APL-130277 Clinical and
Regulatory Plan 
 On February 4, 2015, Cynapsus held its End-of-Phase 2 meeting with the FDA. For development of APL-130277 in the United States,
Cynapsus will follow section 505(b)(2) of the Federal Food, Drug, and Cosmetic Act. Specifically, Cynapsus is pursuing a novel formulation of apomorphine that is a convenient, tolerable and safe sublingual thin filmstrip. The drug substance
(apomorphine) is identical to the active pharmaceutical ingredient in the FDA approved subcutaneous injection, Apokyn®. APL-130277 is being developed as an adjunctive therapy for the on-demand
management of OFF episodes (i.e., predictable wearing OFF, morning akinesia (or morning OFF), delayed ON (or dose failure), and unpredictable OFF) in patients with PD, similar to the description of usage in the FDA approved Apokyn® label. 
 The 505(b)(2) regulatory pathway will require Cynapsus to provide statistically significant
clinical evidence that PD patients experience resolution of their OFF episodes as a result of delivery of apomorphine via the sublingual thin filmstrip route. 

To achieve this, Cynapsus currently plans to complete the following clinical studies: 

 

	 	•	 	 CTH-200 Bridging Study. A single-dose, crossover comparative bioavailability and pharmacokinetic (PK) study in healthy volunteers. This study
is designed to allow Cynapsus 

	 	 
to use the safety and efficacy data for the Reference Listed Drug (Apokyn®) in its NDA submission to the FDA. This study is planned to
start in Q2 2015. 

  

	 	•	 	CTH-300 Efficacy Study. A double-blind, placebo-controlled, parallel-design study with an estimated 126 PD patients who have at least one OFF episode every 24 hours, with total OFF time of at least two hours per
day. The objective is to evaluate the efficacy and safety of APL-130277 versus placebo in patients with PD over a 12 week period. The primary end point will be the mean change in the Unified Parkinson’s Disease Rating Scale Part III (UPDRS III)
score at 30 minutes after dosing. This study is planned to start in Q2 2015. 

  

	 	•	 	CTH-301 Safety Study. A long-term open-label, single arm safety study in PD patients who have at least one OFF episode every 24 hours, with total OFF time of at least two hours per day. The objective is to
evaluate the safety and tolerability of APL-130277 in patients with PD over a six-month period. An estimated 226 patients will be enrolled, including up to 126 who had been enrolled in the CTH-300 efficacy study and rolled over to this study, plus
an additional 100 new patients. This study is planned to start in Q3 2015. 

 In parallel to these studies, Cynapsus will be performing the
necessary scale-up, process validation and stability as part of the Chemistry, Manufacturing and Controls (CMC) requirements for the filing of the NDA. All development will be performed according to current Good Manufacturing Practices (cGMP)
methodology. 
 Upon completion of the efficacy and safety studies, as well as the CMC section, Cynapsus intends to prepare and submit a 505(b)(2) NDA to
the FDA in 2016. 
 CTH-105 Phase 2 Study Results: Updated Summary 

On November 19, 2014, Cynapsus announced positive top-line results from its CTH-105 Phase 2 study of APL-130277. The following contains additional
information and analysis regarding the final data from the CTH-105 study. 
 In the CTH-105 Phase 2 open-label multicenter study, APL-130277 was assessed in
19 patients with PD who experienced the debilitating effects of OFF episodes, with a total duration of OFF of at least two hours daily. All 19 patients in the study who were historically responsive to levodopa, had a predictable OFF episode achieved
by having them take their last dose of levodopa and other PD medications no later than 10 p.m. the night prior to coming into the clinic. Patients were not allowed to take their first dose of levodopa and other PD medications in the morning,
resulting in a morning OFF state, which is one of the most difficult to convert and maintain in an ON state. Patients were then given escalating doses of APL-130277, starting at 10 mg up to 30 mg in 5 mg increments, until a full ON was achieved, as
documented by study staff, the patient and a clinician assessment. Patients could be dosed up to two times a day over 3 days. The UPDRS III score was measured pre-dose and at 15, 30, 45, 60 and 90 minutes after APL-130277 administration. Those
patients who converted from OFF to full ON subsequently received the same dose of APL-130277 to confirm the effect. 
 The UPDRS III is a widely-used scale
that combines a clinician’s evaluation on a 5-point scale of several motor functions, including movement, speech, tremor, posture and gait. UPDRS Part III is commonly used as the primary endpoint in clinical trials evaluating the efficacy of PD
treatments. CTH-105 utilized the newer version of this scale, the Movement Disorders Society (MDS) UPDRS III, which is nearly identical to the older version. 

  
 2 

 Efficacy analyses consisted of three populations: (1) modified intent to treat (ITT) population, which
included all 19 subjects dosed; (2) per protocol (PP) population, which included the 15 patients with no dosing protocol deviations; and (3) Responder population, which included those patients achieving a full ON response following dosing
with APL-130177. The primary efficacy endpoint was the percentage of patients that turned ON following APL-130277 administration. In the ITT population, 15 of 19 patients dosed achieved a clinically meaningful, full ON following APL-130277
administration. All 15 turned ON within 30 minutes of dosing and 6 turned ON within 15 minutes. Thirteen of the 15 remained ON for at least 30 minutes and 9 remained ON for at least 60 minutes, with a mean ON of over 50 minutes. The mean time to
full ON as reported by study staff was 22 minutes. All five doses of APL-130277 used in the study (10, 15, 20, 25 and 30 mg) converted patients from the OFF state to a full ON state. Over half of the patients needed the lowest two doses (10 and 15
mg) and 80% used 20 mg or less. The mean dose required to convert patients to ON was 18.4 mg. Two of the patients who did not turn ON following APL-130277 administration were dosed incorrectly (i.e., were told to swallow the strip immediately
instead of dissolve sublingually), while the other two were dosed up to the maximum dose of 30 mg, suggesting a higher apomorphine dose may be needed. 

The secondary efficacy endpoint was the mean change in UPDRS Part III from pre-dose to 15, 30, 45, 60 and 90 minutes after dosing. The mean baseline UPDRS III
in an OFF state was 41.4. All analysis populations demonstrated a large, clinically meaningful change in UPDRS at all time points studied, with a maximum change of 15 points for the ITT population and 17.3 points for the Responder population.
Additionally, the percent change in UPDRS III was approximately 30% or greater at all time points, with a maximum percent change of 35.6% for the ITT population and 41.4% for the Responder population. Mean percentage change of approximately 30% is
considered a clinically meaningful level at which point patients turn ON. The onset of a clinically meaningful improvement was seen in as early as 10 minutes and lasted up to 90 minutes, the last time point measured in this study. 

The graph below shows the mean change from baseline in MDS-UPDRS III for three analysis sets. 

Mean Change in UPDRS III from Pre-dose Over Study Period 

 
 

 

  
 3 

 In the CTH-105 study, a total of 77 doses of APL-130277 were administered to the 19 patients who completed
dosing. Treatment with APL-130277 was safe and well-tolerated by all of the patients in the study. Nausea was reported by four patients at doses of 10 mg, 15 mg and 20 mg. One of these patients also experienced a mild episode of emesis. There were
no reports of nausea at higher doses by any of the patients in the study. There were no reports of local irritation, and only one patient experienced symptomatic hypotension in the study. There were no related serious adverse events and no subjects
discontinued due to an adverse event. 
 “We are very pleased with these further results of the CTH-105 study,” said Albert Agro, PhD, Chief
Medical Officer of Cynapsus. “The data continue to support our hypothesis that sublingual administration of APL-130277 results in a rapid improvement of motor symptoms and a significant improvement in patient outcomes.” 

About Cynapsus Therapeutics Inc. 
 Cynapsus is a specialty
pharmaceutical company developing a sublingual thin filmstrip for the acute rescue of OFF episodes associated with Parkinson’s disease. Cynapsus’ drug candidate, APL-130277, currently in late-stage clinical development, is an easy-to-use,
fast-acting, formulation of apomorphine, which is the only approved drug (in the United States, Europe, Japan and other countries) to rescue patients from OFF episodes. Cynapsus anticipates completing pivotal studies to support a 505(b)(2) New Drug
Application (NDA) expected to be submitted in 2016. 
 Parkinson’s disease is a chronic and progressive neurodegenerative disease. OFF episodes are
periods of time during which PD symptoms re-emerge despite taking PD medicines. Symptoms include stiffness, slow movements and difficulty in starting movements, greatly impacting a patient’s quality of life and ability to work. More than
1 million people in the U.S. and an estimated 4 million to 6 million people globally suffer from Parkinson’s disease with prevalence increasing with the aging of the population. It is estimated that up to one half of all people
with Parkinson’s disease experience OFF episodes at least once daily and up to six times daily, with each episode lasting between 30 and 120 minutes. 

More information about Cynapsus (TSX: CTH) (OTCQX: CYNAF) is available at www.cynapsus.ca and at the System for Electronic Document Analysis and Retrieval
(SEDAR) at www.sedar.com. 
 Contacts 
 Anthony
Giovinazzo 
 President and CEO 
 (416) 703-2449 x225 

ajg@cynapsus.ca 
 Andrew Williams 

COO & CFO 
 (416) 703-2449 x253 

awilliams@cynapsus.ca 
 LHA 

Anne Marie Fields 
 (212) 838-3777 

afields@lhai.com 

  
 4 

 Forward Looking Statements 

This announcement contains “forward-looking statements” within the meaning of applicable securities laws. Generally, these forward-looking statements
can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”,
“could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of Cynapsus to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks and uncertainties relating to
Cynapsus’ business disclosed under the heading “Risk Factors” in its Annual Information Form and its other filings with the various Canadian securities regulators, which are available online at www.sedar.com. Although Cynapsus has
attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking
statements. Cynapsus does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. 
 Neither the TSX
nor the OTCQX International has approved or disapproved of the contents of this press release. 
 *** 

  
 5EXHIBIT
10.6

 

CABINET GROW, INC.

2015 EQUITY COMPENSATION PLAN

 

1.Purpose of the Plan.
The purpose of this Plan is to encourage ownership in the Company by key personnel whose long-term service the Company considers
essential to its continued progress and, thereby, encourage recipients to act in the stockholders’ interest and share in
the Company’s success.

 

2.Definitions. As
used herein, the following definitions shall apply:

 

“Act” shall
mean the Securities Act of 1933, as amended.

 

“Administrator”
shall mean the Board, any Committees, or such delegates as shall be administering the Plan in accordance with Section 4 of the
Plan.

 

“Affiliate”
shall mean any entity that is directly or indirectly in control of or controlled by the Company, or any entity in which the Company
has a significant ownership interest as determined by the Administrator.

 

“Applicable Laws”
shall mean the requirements relating to the administration of stock plans under federal and state laws; any stock exchange or quotation
system on which the Company has listed or submitted for quotation the Common Stock to the extent provided under the terms of the
Company’s agreement with such exchange or quotation system; and, with respect to Awards subject to the laws of any foreign
jurisdiction where Awards are, or will be, granted under the Plan, to the laws of such jurisdiction.

 

“Award” shall
mean, individually or collectively, a grant under the Plan of an Option or other such Stock Award.

 

“Awardee” shall
mean a Service Provider who has been granted an Award under the Plan.

 

“Award Agreement”
shall mean an Option Agreement or Stock Award Agreement,  which may be in written or electronic format, in such form and with
such terms as may be specified by the Administrator, evidencing the terms and conditions of an individual Award. Each Award Agreement
is subject to the terms and conditions of the Plan.

 

“Board” shall
mean the Board of Directors of the Company.

 

“Change in Control”
shall mean any of the following, unless the Administrator provides otherwise:

 

(i) 
any merger or consolidation in which the Company shall not be the surviving entity (or survives
only as a subsidiary of another entity whose stockholders did not own all or substantially all of the Common Stock in substantially
the same proportions as immediately before such transaction);

 

(ii) the
sale of all or substantially all of the Company’s assets to any other person or entity (other than a wholly-owned
subsidiary of the Company);

 

(iii) the
acquisition of beneficial ownership of a controlling interest (including power to vote) in the outstanding shares of Common
Stock by any person or entity (including a “group” as defined by or under Section 13(d)(3) of the Exchange
Act);

 

(iv) the
dissolution or liquidation of the Company;

 

(v)
a contested election of Directors, as a result of which or in connection with which the persons who were Directors before
such election or their nominees cease to constitute a majority of the Board; or

 

(vi)
any other event specified, at the time an Award is granted or thereafter, by the Board or a Committee.

 

Notwithstanding the foregoing, the term “Change
in Control” shall not include any underwritten public offering of Shares registered under the Act.

 

“Code” shall
mean the Internal Revenue Code of 1986, as amended.

 

“Committee”
shall mean a committee of Directors appointed by the Board in accordance with Section 4 of the Plan.

 

“Common Stock”
shall mean the .0001 common stock of the Company.

 

“Company” shall
mean Cabinet Grow, Inc., a Nevada corporation, or its successor.

 

“Consultant”
shall mean any natural person, other than an Employee or Director, who performs bona fide services for the Company or an Affiliate
as a consultant or advisor.

 

“Conversion Award”
has the meaning set forth in Section 4(b)(xii) of the Plan.

 

“Director”
shall mean a member of the Board.

 

“Disability”
shall mean permanent and total disability as defined in Section 22(e)(3) of the Code.

 

“Employee”
shall mean an employee of the Company or any Affiliate, and may include an Officer or Director. Within the limitations of Applicable
Law, the Administrator shall have the discretion to determine the effect upon an Award and upon an individual’s status as
an Employee in the case of (i) any individual who is classified by the Company or its Affiliate as leased from or otherwise employed
by a third party or as intermittent or temporary, even if any such classification is changed retroactively as a result of an audit,
litigation or otherwise; (ii) any leave of absence approved by the Company or an Affiliate; (iii) any transfer between locations
of employment with the Company or an Affiliate or between the Company and any Affiliate or between any Affiliates; (iv) any change
in the Awardee’s status from an employee to a Consultant or Director; and (v) an employee who, at the request of the Company
or an Affiliate, becomes employed by any partnership, joint venture, or corporation not meeting the requirements of an Affiliate
in which the Company or an Affiliate is a party.

 

“Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended.

 

“Fair Market Value”
shall mean, unless the Administrator determines otherwise, as of any date, the closing price for such Common Stock as of such date
(or if no sales were reported on such date, the closing price on the last preceding day for which a sale was reported), as reported
in such source as the Administrator shall determine.

 

“Grant Date”
shall mean the date upon which an Award is granted to an Awardee pursuant to this Plan.

 

“Incentive Stock
Option” shall mean an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.

 

“Nonstatutory Stock
Option” shall mean an Option not intended to qualify as an Incentive Stock Option.

 

“Officer” shall
mean a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act.

 

“Option” shall
mean a right granted under Section 8 of the Plan to purchase a certain number of Shares at such exercise price, at such times,
and on such other terms and conditions as are specified in the agreement or other documents evidencing the Award (the “Option
Agreement”). Both Options intended to qualify as Incentive Stock Options and Nonstatutory Stock Options may be granted
under the Plan.

 

“Participant”
shall mean the Awardee or any person (including any estate) to whom an Award has been assigned or transferred as permitted hereunder.

 

“Plan” shall
mean this Cabinet Grow, Inc. 2015 Equity Compensation Plan.

 

“Qualifying Performance
Criteria” shall have the meaning set forth in Section 14(b) of the Plan.

 

“Related Corporation”
shall mean any parent or subsidiary (as those terms are defined in Section 424(e) and (f) of the Code) of the Company.

 

“Service Provider”
shall mean an Employee, Officer, Director, or Consultant.

 

“Share” shall
mean a share of the Common Stock, as adjusted in accordance with Section 15 of the Plan.

 

“Stock Award”
shall mean an award or issuance of Shares made under Section 11 of the Plan, the grant, issuance, retention, vesting, and transferability
of which is subject during specified periods to such conditions (including continued service or performance conditions) and terms
as are expressed in the agreement or other documents evidencing the Award (the “Stock Award Agreement”).

 

“Stock Unit”
shall mean a bookkeeping entry representing an amount equivalent to the Fair Market Value of one Share, payable in cash, property
or Shares. Stock Units represent an unfunded and unsecured obligation of the Company, except as otherwise provided for by the Administrator.

 

“Ten-Percent Stockholder”
shall mean the owner of stock (as determined under Section 424(d) of the Code) possessing more than 10% of the total combined
voting power of all classes of stock of the Company (or any Related Corporation).

 

“Termination Date”
shall mean the date of a Participant’s Termination of Service, as determined by the Administrator in its sole discretion.

 

“Termination of Service”
shall mean ceasing to be a Service Provider. However, for Incentive Stock Option purposes, Termination of Service will occur when
the Awardee ceases to be an employee (as determined in accordance with Section 3401(c) of the Code and the regulations promulgated
thereunder) of the Company. The Administrator shall determine whether any corporate transaction, such as a sale or spin-off of
a division or business unit, or a joint venture, shall be deemed to result in a Termination of Service.

 

3.Stock Subject to
the Plan.

(a)Aggregate Limit.
The maximum aggregate number of Shares that may be issued under the Plan through Awards is 5,000,000 Shares. The limitations of
this Section 3(a) shall be subject to the adjustments provided for in Section 13 of the Plan.

 

(b)Reduction and
Replenishment. Upon payment for Shares pursuant to the exercise of an Award, the number of Shares available for issuance under
the Plan shall be reduced only by the number of Shares actually issued in such payment. If any outstanding Award expires or is
terminated or canceled without having been exercised or settled in full, or if Shares acquired pursuant to an Award subject to
forfeiture or repurchase are forfeited or repurchased by the Company, the Shares allocable to the terminated portion of such Award
or such forfeited or repurchased Shares shall again be available to grant under the Plan. Notwithstanding the foregoing, the aggregate
number of shares of Common Stock that may be issued under the Plan upon the exercise of Incentive Stock Options shall not be increased
for restricted Shares that are forfeited or repurchased. Notwithstanding anything in the Plan, or any Award Agreement to the contrary,
Shares attributable to Awards transferred under any Award transfer program shall not be again available for grant under the Plan.
The Shares subject to the Plan may be either Shares reacquired by the Company, including Shares purchased in the open market, or
authorized but unissued Shares.

 

4.Administration of the Plan.

 

(a)
Procedure.

 

(i)Multiple Administrative
Bodies. The Plan shall be administered by the Board or one or more Committees, including such delegates as may be appointed
under paragraph (a)(iv) of this Section 4.

 

(ii)Section 162(m).
To the extent that the Administrator determines it to be desirable to qualify Awards granted hereunder as “performance-based
compensation” within the meaning of Section 162(m) of the Code, Awards to “covered employees” within the meaning
of Section 162(m) of the Code or Employees that the Committee determines may be “covered employees” in the future shall
be made by a Committee of two or more “outside directors” within the meaning of Section 162(m) of the Code.

 

(iii)Rule 16b-3.
To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3 promulgated under the Exchange Act (“Rule
16b-3”), Awards to Officers and Directors shall be made in such a manner to satisfy the requirement for exemption under
Rule 16b-3.

 

(iv)Other Administration.
The Board or a Committee may delegate to an authorized Officer or Officers of the Company the power to approve Awards to persons
eligible to receive Awards under the Plan who are not (A) subject to Section 16 of the Exchange Act; or (B) at the time of such
approval, “covered employees” under Section 162(m) of the Code.

 

(v)Delegation of Authority
for the Day-to-Day Administration of the Plan. Except to the extent prohibited by Applicable Law, the Administrator may delegate
to one or more individuals the day-to-day administration of the Plan and any of the functions assigned to it in this Plan. Such
delegation may be revoked at any time.

 

(b)Powers of the
Administrator. Subject to the provisions of the Plan and, in the case of a Committee or delegates acting as the Administrator,
subject to the specific duties delegated to such Committee or delegates, the Administrator shall have the authority, in its sole
discretion:

 

(i)to select the Service
Providers of the Company or its Affiliates to whom Awards are to be granted hereunder;

 

(ii)to determine the
number of shares of Common Stock to be covered by each Award granted hereunder;

 

(iii)to determine the
type of Award to be granted to the selected Service Provider;

 

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

 

(v) to determine
the terms and conditions, consistent with the terms of the Plan, of any Award granted hereunder. Such terms and conditions include
the exercise or purchase price, the time or times when an Award may be exercised (which may or may not be based on performance
criteria), the vesting schedule, any vesting or exercisability acceleration or waiver of forfeiture restrictions, the acceptable
forms of consideration, the term, and any restriction or limitation regarding any Award or the Shares relating thereto, based in
each case on such factors as the Administrator, in its sole discretion, shall determine and may be established at the time an Award
is granted or thereafter;

 

(vi)to correct administrative
errors;

 

(vii)to construe and
interpret the terms of the Plan (including sub-plans and Plan addenda) and Awards granted pursuant to the Plan;

 

(viii)to adopt rules
and procedures relating to the operation and administration of the Plan to accommodate the specific requirements of local laws
and procedures. Without limiting the generality of the foregoing, the Administrator is specifically authorized (A) to adopt the
rules and procedures regarding the conversion of local currency, withholding procedures, and handling of stock certificates that
vary with local requirements; and (B) to adopt sub-plans and Plan addenda as the Administrator deems desirable, to accommodate
foreign laws, regulations and practice;

 

(ix)to prescribe, amend
and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans and Plan addenda;

 

(x)to modify or amend
each Award, including the acceleration of vesting, exercisability, or both; provided, however, that any modification or
amendment of an Award is subject to Section 16 of the Plan and may not materially impair any outstanding Award unless agreed to
by the Participant;

 

(xi)to allow Participants
to satisfy withholding tax amounts by electing to have the Company withhold from the Shares to be issued pursuant to an Award that
number of Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value of the Shares to
be withheld shall be determined in such manner and on such date that the Administrator shall determine or, in the absence of provision
otherwise, on the date that the amount of tax to be withheld is to be determined. All elections by a Participant to have Shares
withheld for this purpose shall be made in such form and under such conditions as the Administrator may provide;

 

(xii)to authorize conversion
or substitution under the Plan of any or all stock options, stock appreciation rights, or other stock awards held by service providers
of an entity acquired by the Company (the “Conversion Awards”). Any conversion or substitution shall be effective
as of the close of the merger or acquisition. The Conversion Awards may be Nonstatutory Stock Options or Incentive Stock Options,
as determined by the Administrator, with respect to options granted by the acquired entity. Unless otherwise determined by the
Administrator at the time of conversion or substitution, all Conversion Awards shall have the same terms and conditions as Awards
generally granted by the Company under the Plan;

 

(xiii)to authorize any
person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by the Administrator;

 

(xiv)to determine whether
Awards will be settled in Shares, cash, or in any combination thereof;

 

(xv)to determine whether
to provide for the right to receive dividends or dividend equivalents;

 

(xvi)to establish a program
whereby Service Providers designated by the Administrator can reduce compensation otherwise payable in cash in exchange for Awards
under the Plan;

 

(xvii)to impose such
restrictions, conditions, or limitations as it determines appropriate as to the timing and manner of any resales by a Participant
or other subsequent transfers by the Participant of any Shares issued as a result of or under an Award, including (A) restrictions
under an insider trading policy, and (B) restrictions as to the use of a specified brokerage firm for such resales or other transfers;

 

(xviii)to provide, either
at the time an Award is granted or by subsequent action, that an Award shall contain as a term thereof, a right, either in tandem
with the other rights under the Award or as an alternative thereto, of the Participant to receive, without payment to the Company,
a number of Shares, cash, or a combination of both, the amount of which is determined by reference to the value of the Award; and

 

(xix)to make all other
determinations deemed necessary or advisable for administering the Plan and any Award granted hereunder.

 

(c)Effect of Administrator’s
Decision. All decisions, determinations and interpretations by the Administrator regarding the Plan, any rules and regulations
under the Plan and the terms and conditions of any Award granted hereunder, shall be final and binding on all Participants. The
Administrator shall consider such factors as it deems relevant, in its sole and absolute discretion, to making such decisions,
determinations and interpretations, including the recommendations or advice of any officer or other employee of the Company and
such attorneys, consultants and accountants as it may select.

 

5.Eligibility.
Awards may be granted to Service Providers of the Company or any of its Affiliates.

 

6.Effective Date and Term
of the Plan. The Plan shall become effective upon its adoption by the Board. Options and Stock Awards may be granted
immediately thereafter; provided, that no Option may be exercised and no Stock Award may be granted under the Plan until it is
approved by the stockholders of the Company, in the manner and to the extent required by Applicable Law, within 12 months after
the date of adoption by the Board. The Plan shall continue in effect for a term of TEN (10) years from the date of the Plan’s
adoption by the Board unless terminated earlier under Section 16 herein.

 

7.Term of Award.
The term of each Award shall be determined by the Administrator and stated in the Award Agreement. In the case of an Option,
the term shall be TEN (10) years from the Grant Date or such shorter term as may be provided in the Award Agreement.

 

8.Options. The
Administrator may grant an Option or provide for the grant of an Option, from time to time in the discretion of the Administrator
or automatically upon the occurrence of specified events, including the achievement of performance goals, and for the satisfaction
of an event or condition within the control of the Awardee or within the control of others.

 

(a)Option Agreement.
Each Option Agreement shall contain provisions regarding (i) the number of Shares that may be issued upon exercise of the Option;
(ii) the type of Option; (iii) the exercise price of the Shares and the means of payment for the Shares; (iv) the term of the Option;
(v) such terms and conditions on the vesting or exercisability of an Option, or both, as may be determined from time to time by
the Administrator; (vi) restrictions on the transfer of the Option and forfeiture provisions; and (vii) such further terms and
conditions, in each case not inconsistent with this Plan, as may be determined from time to time by the Administrator.

 

(b)Exercise Price.
The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be determined by the Administrator,
subject to the following:

 

(i)In the case of an
Incentive Stock Option, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the
Grant Date. Notwithstanding the foregoing, if any Incentive Stock Option is granted to a Ten-Percent Stockholder, then the exercise
price shall not be less than 110% of the Fair Market Value of a share of Common Stock on the Grant Date.

 

(ii)In the case of a
Nonstatutory Stock Option, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the Grant
Date. The per Share exercise price may also vary according to a predetermined formula; provided, that the exercise price never
falls below 100% of the Fair Market Value per Share on the Grant Date.

 

(iii)Reserved.
 

 

(iv)Notwithstanding the
foregoing, at the Administrator’s discretion, Conversion Awards may be granted in substitution or conversion of options of
an acquired entity, with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of such substitution
or conversion.

 

(c)Vesting Period
and Exercise Dates. Options granted under this Plan shall vest, be exercisable, or both, at such times and in such installments
during the Option’s term as determined by the Administrator. The Administrator shall have the right to make the timing of
the ability to exercise any Option granted under this Plan subject to continued service, the passage of time, or such performance
requirements as deemed appropriate by the Administrator. At any time after the grant of an Option, the Administrator may reduce
or eliminate any restrictions surrounding any Participant’s right to exercise all or part of the Option.

 

(d)Form of Consideration.
The Administrator shall determine the acceptable form of consideration for exercising an Option, including the method of payment,
either through the terms of the Option Agreement or at the time of exercise of an Option. The consideration, determined by the
Administrator (or pursuant to authority expressly delegated by the Board, a Committee, or other person), and in the form and amount
required by applicable law, shall be actually received before issuing any Shares pursuant to the Plan; which consideration shall
have a value, as determined by the Board, not less than the par value of such Shares. Acceptable forms of consideration may include:

 

 (i) cash;

 

(ii)
check or wire transfer;

 

(iii)subject to
any conditions or limitations established by the Administrator, other Shares that have a Fair Market Value on the date of surrender
or attestation that does not exceed the aggregate exercise price of the Shares as to which said Option shall be exercised;

 

(iv)consideration
received by the Company under a broker-assisted sale and remittance program acceptable to the Administrator to the extent that
this procedure would not violate Section 402 of the Sarbanes-Oxley Act of 2002, as amended;

 

(v)cashless exercise,
subject to any conditions or limitations established by the Administrator;

 

(vi)such other
consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws; or

 

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

 

9.Incentive Stock Option Limitations.

 

(a)Eligibility.
Only employees (as determined in accordance with Section 3401(c) of the Code and the regulations promulgated thereunder) of the
Company may be granted Incentive Stock Options.

 

(b)$100,000 Limitation.
Notwithstanding the designation “Incentive Stock Option” in an Option Agreement, if the aggregate Fair Market Value
of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Awardee during any calendar
year (under all plans of the Company) exceeds $100,000, then the portion of such Options that exceeds $100,000 shall be treated
as Nonstatutory Stock Options. An Incentive Stock Option is considered to be first exercisable during a calendar year if the Incentive
Stock Option will become exercisable at any time during the year, assuming that any condition on the Awardee’s ability to
exercise the Incentive Stock Option related to the performance of services is satisfied. If the Awardee’s ability to exercise
the Incentive Stock Option in the year is subject to an acceleration provision, then the Incentive Stock Option is considered first
exercisable in the calendar year in which the acceleration provision is triggered. For purposes of this Section 9(b), Incentive
Stock Options shall be taken into account in the order in which they were granted. However, because an acceleration provision is
not taken into account before its triggering, an Incentive Stock Option that becomes exercisable for the first time during a calendar
year by operation of such provision does not affect the application of the $100,000 limitation with respect to any Incentive Stock
Option (or portion thereof) exercised before such acceleration. The Fair Market Value of the Shares shall be determined as of the
Grant Date.

 

(c)Leave of Absence.
For purposes of Incentive Stock Options, no leave of absence may exceed three months, unless the right to reemployment upon expiration
of such leave is provided by statute or contract. If the period of leave exceeds three months and the Awardee’s right to
reemployment is not provided by statute or contract, the Awardee’s employment with the Company shall be deemed to terminate
on the first day immediately following such three-month period, and any Incentive Stock Option granted to the Awardee shall cease
to be treated as an Incentive Stock Option and shall terminate upon the expiration of the three-month period starting on the date
the employment relationship is deemed terminated.

 

(d)Transferability.
The Option Agreement must provide that an Incentive Stock Option cannot be transferable by the Awardee otherwise than by will or
the laws of descent and distribution, and, during the lifetime of such Awardee, must not be exercisable by any other person. Notwithstanding
the foregoing, the Administrator, in its sole discretion, may allow the Awardee to transfer his or her Incentive Stock Option to
a trust where under Section 671 of the Code and other Applicable Law, the Awardee is considered the sole beneficial owner of the
Option while it is held in the trust. If the terms of an Incentive Stock Option are amended to permit transferability, the Option
will be treated for tax purposes as a Nonstatutory Stock Option.

 

(e)Exercise Price.
The per Share exercise price of an Incentive Stock Option shall be determined by the Administrator in accordance with Section 8(b)(i)
of the Plan.

 

(f)Ten-Percent Stockholder.
If any Incentive Stock Option is granted to a Ten-Percent Stockholder, then the Option term shall not exceed FIVE (5) years measured
from the date of grant of such Option.

 

(g)Other Terms.
Option Agreements evidencing Incentive Stock Options shall contain such other terms and conditions as may be necessary to qualify
as Incentive Stock Options, to the extent determined desirable by the Administrator, under the applicable provisions of Section
422 of the Code.

 

 

10.Exercise of Option.

 

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

 

(i)Any Option granted
hereunder shall be exercisable according to the terms of the Plan and at such times and under such conditions as determined by
the Administrator and set forth in the respective Award Agreement.

 

(ii)An Option shall be
deemed exercised when the Company receives (A) written or electronic notice of exercise (in accordance with the Award Agreement)
from the person entitled to exercise the Option; (B) full payment for the Shares with respect to which the related Option is exercised;
and (C) with respect to Nonstatutory Stock Options, payment of all applicable withholding taxes.

 

(iii)Shares issued upon
exercise of an Option shall be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant
and his or her spouse. Unless provided otherwise by the Administrator or pursuant to this Plan, until the Shares are issued (as
evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right
to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Shares subject to an Option,
notwithstanding the exercise of the Option.

 

(iv)The Company shall
issue (or cause to be issued) such Shares as soon as administratively practicable after the Option is exercised. An Option may
not be exercised for a fraction of a Share.

 

(b)Effect of Termination
of Service on Options.

 

(i)Generally.
Unless otherwise provided for by the Administrator, if a Participant ceases to be a Service Provider, other than upon the Participant’s
death or Disability, the Participant may exercise his or her Option within such period as is specified in the Award Agreement to
the extent that the Option is vested on the Termination Date (but in no event later than the expiration of the term of such Option
as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the vested portion of the Option
will remain exercisable for THREE (3) months following the Participant’s Termination Date. Unless otherwise provided by the
Administrator, if on the Termination Date the Participant is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option will automatically revert to the Plan. If after the Termination of Service the Participant does
not exercise his or her Option within the time specified by the Administrator, the Option will automatically terminate, and the
Shares covered by such Option will revert to the Plan.

 

(ii)Disability of
Awardee. Unless otherwise provided for by the Administrator, if a Participant ceases to be a Service Provider as a result of
the Participant’s Disability, the Participant may exercise his or her Option within such period as is specified in the Award
Agreement to the extent the Option is vested on the Termination Date (but in no event later than the expiration of the term of
such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain
exercisable for twelve months following the Participant’s Termination Date. Unless otherwise provided by the Administrator,
if at the time of Disability the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion
of the Option will automatically revert to the Plan. If the Option is not so exercised within the time specified herein, the Option
will terminate, and the Shares covered by such Option will automatically revert to the Plan.

 

(iii)Death of Awardee.
Unless otherwise provided for by the Administrator, if a Participant dies while a Service Provider, the Option may be exercised
following the Participant’s death within such period as is specified in the Award Agreement to the extent that the Option
is vested on the date of death (but in no event may the Option be exercised later than the expiration of the term of such Option
as set forth in the Award Agreement), by the Participant’s designated beneficiary, provided such beneficiary has been designated
before the Participant’s death in a form acceptable to the Administrator. If no such beneficiary has been designated by the
Participant, then such Option may be exercised by the personal representative of the Participant’s estate or by the person
or persons to whom the Option is transferred pursuant to the Participant’s will or in accordance with the laws of descent
and distribution. In the absence of a specified time in the Award Agreement, the Option will remain exercisable for TWELVE (12)
months following Participant’s death. Unless otherwise provided by the Administrator, if at the time of death Participant
is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan.
If the Option is not so exercised within the time specified herein, the Option will terminate, and the Shares covered by such Option
will revert to the Plan.

 

11.Stock Awards.

 

(a)Stock Award Agreement.
Each Stock Award Agreement shall contain provisions regarding (i) the number of Shares subject to such Stock Award or a formula
for determining such number; (ii) the purchase price, if any, of the Shares, and the means of payment for the Shares; (iii) the
performance criteria, if any, and level of achievement versus these criteria that shall determine the number of Shares granted,
issued, retained, or vested, as applicable; (iv) such terms and conditions on the grant, issuance, vesting, or forfeiture of the
Shares, as applicable, as may be determined from time to time by the Administrator; (v) restrictions on the transferability of
the Stock Award; and (vi) such further terms and conditions in each case not inconsistent with this Plan as may be determined from
time to time by the Administrator.

 

(b)Restrictions
and Performance Criteria. The grant, issuance, retention, and vesting of each Stock Award may be subject to such performance
criteria and level of achievement versus these criteria as the Administrator shall determine, which criteria may be based on financial
performance, personal performance evaluations, or completion of service by the Awardee.

 

Notwithstanding anything
to the contrary herein, the performance criteria for any Stock Award that is intended to satisfy the requirements for “performance-based
compensation” under Section 162(m) of the Code shall be established by the Administrator based on one or more Qualifying
Performance Criteria selected by the Administrator and specified in writing.

 

(c)Forfeiture.
Unless otherwise provided for by the Administrator, upon the Awardee’s Termination of Service, the unvested Stock Award and
the Shares subject thereto shall be forfeited, provided that to the extent that the Participant purchased any Shares pursuant to
such Stock Award, the Company shall have a right to repurchase the unvested portion of such Shares at the original price paid by
the Participant.

 

(d)Rights as a Stockholder.
Unless otherwise provided by the Administrator, the Participant shall have the rights equivalent to those of a stockholder and
shall be a stockholder only after Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a
duly authorized transfer agent of the Company) to the Participant.  Unless otherwise provided by the Administrator, a Participant
holding Stock Units shall be entitled to receive dividend payments as if he or she were an actual stockholder.

 

12.Other Provisions Applicable
to Awards.

 

(a)Non-Transferability
of Awards. Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred,
or disposed of in any manner other than by will or by the laws of descent and distribution, and may be exercised, during the lifetime
of the Participant, only by the Participant. If the Administrator makes an Award transferable, either at the time of grant or thereafter,
such Award shall contain such additional terms and conditions as the Administrator deems appropriate, and any transferee shall
be bound by such terms upon acceptance of such transfer.

 

(b)Qualifying Performance
Criteria. For purposes of this Plan, the term “Qualifying Performance Criteria” shall mean any one or more
of the following performance criteria, applied to either the Company as a whole or to a business unit, Affiliate, or business segment,
either individually, alternatively, or in any combination, and measured either 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 in the Award by the Committee: (i) cash flow, (ii) earnings (including gross margin, earnings before
interest and taxes, earnings before taxes, and net earnings), (iii) earnings per share, (iv) growth in earnings or earnings per
share, (v) stock price, (vi) return on equity or average stockholders’ equity, (vii) total stockholder return, (viii) return
on capital, (ix) return on assets or net assets, (x) return on investment, (xi) revenue, (xii) income or net income, (xiii) operating
income or net operating income, (xiv) operating profit or net operating profit, (xv) operating margin, (xvi) return on operating
revenue, (xvii) market share, (xviii) contract awards or backlog, (xix) overhead or other expense reduction, (xx) growth in stockholder
value relative to the moving average of the S&P 500 Index or a peer group index, (xxi) credit rating, (xxii) strategic plan
development and implementation, (xxiii) improvement in workforce diversity, (xxiv) EBITDA, and (xxv) any other similar criteria.

 

(c)Certification.
Before payment of any compensation under an Award intended to qualify as “performance-based compensation” under Section
162(m) of the Code, the Committee shall certify the extent to which any Qualifying Performance Criteria and any other material
terms under such Award have been satisfied (other than in cases where such relate solely to the increase in the value of the Common
Stock).

 

(d)Discretionary
Adjustments Pursuant to Section 162(m). Notwithstanding satisfaction or completion of any Qualifying Performance Criteria,
to the extent specified at the time of grant of an Award to “covered employees” within the meaning of Section 162(m)
of the Code, the number of Shares, Options or other benefits granted, issued, retained, or vested under an Award on account of
satisfaction of such Qualifying Performance Criteria may be reduced by the Committee on the basis of such further considerations
as the Committee in its sole discretion shall determine.

 

(e)Section 409A. Notwithstanding
anything in the Plan to the contrary, it is the Company’s intent that all Awards granted under this Plan comply with Section 409A
of the Code, and each Award shall be interpreted in a manner consistent with that intention.

 

13.Adjustments upon Changes
in Capitalization, Dissolution, Merger or Asset Sale.

 

(a)Changes in Capitalization.

 

(i)The limitations set
forth in Section 3, the number and kind of Shares covered by each outstanding Award, and the price per Share (but not the
total price) subject to each outstanding Award shall be proportionally adjusted to prevent dilution or enlargement of rights under
the Plan for any change in the outstanding Common Stock subject to the Plan, or subject to any Award, resulting from any stock
splits, combination or exchange of Shares, consolidation, spin-off or recapitalization of Shares or any capital adjustment or transaction
similar to the foregoing or any distribution to holders of Common Stock other than regular cash dividends.

 

(ii)The Administrator
shall make such adjustment in such manner as it deems equitable and appropriate, subject to compliance with Applicable Laws. Any
determination, substitution or adjustment made by the Administrator under this Section shall be conclusive and binding on all persons.
The conversion of any convertible securities of the Company shall not be treated as a transaction requiring any adjustment under
this Section. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible
into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number
or price of Shares subject to an Award.

 

(b)Dissolution or
Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each Participant
as soon as practicable before the effective date of such proposed transaction. The Administrator in its discretion may provide
for an Option to be fully vested and exercisable until ten days before such proposed transaction. In addition, the Administrator
may provide that any restrictions on any Award shall lapse before the proposed transaction, provided the proposed dissolution or
liquidation takes place at the time and in the manner contemplated. To the extent it has not been previously exercised, an Award
will terminate immediately before the consummation of such proposed transaction.

 

(c)Change in Control.
If there is a Change in Control of the Company, as determined by the Board or a Committee, the Board or Committee, or board of
directors of any surviving entity or acquiring entity may, in its discretion, (i) provide for the assumption, continuation or substitution
(including an award to acquire substantially the same type of consideration paid to the stockholders in the transaction in which
the Change in Control occurs) of, or adjustment to, all or any part of the Awards; (ii) accelerate the vesting of all or any part
of the Options and SARs and terminate any restrictions on all or any part of the Stock Awards or Cash Awards; (iii) provide for
the cancellation of all or any part of the Awards for a cash payment to the Participants; and (iv) provide for the cancellation
of all or any part of the Awards as of the closing of the Change in Control; provided, that the Participants are notified that
they must exercise or redeem their Awards (including, at the discretion of the Board or Committee, any unvested portion of such
Award) at or before the closing of the Change in Control.

 

14.Amendment and Termination
of the Plan.

 

(a)Amendment and
Termination. The Administrator may amend, alter, or discontinue the Plan or any Award Agreement, but any such amendment shall
be subject to approval of the stockholders of the Company in the manner and to the extent required by Applicable Law.

 

(b)Effect of Amendment
or Termination. No amendment, suspension, or termination of the Plan shall materially impair the rights of any Award, unless
agreed otherwise between the Participant and the Administrator. Termination of the Plan shall not affect the Administrator’s
ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan before the date of such termination.

 

(c)Effect of the
Plan on Other Arrangements. Neither the adoption of the Plan by the Board or a Committee nor the submission of the Plan to
the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board or any Committee
to adopt such other incentive arrangements as it or they may deem desirable, including the granting of restricted stock or stock
options otherwise than under the Plan, and such arrangements may be either generally applicable or applicable only in specific
cases.

 

15.Designation of Beneficiary.

 

(a)An Awardee may file
a written designation of a beneficiary who is to receive the Awardee’s rights pursuant to Awardee’s Award or the Awardee
may include his or her Awards in an omnibus beneficiary designation for all benefits under the Plan. To the extent that Awardee
has completed a designation of beneficiary such beneficiary designation shall remain in effect with respect to any Award hereunder
until changed by the Awardee to the extent enforceable under Applicable Law.

 

(b)The Awardee may
change such designation of beneficiary at any time by written notice. If an Awardee dies and no beneficiary is validly designated
under the Plan who is living at the time of such Awardee’s death, the Company shall allow the executor or administrator of
the estate of the Awardee to exercise the Award, or if no such executor or administrator has been appointed (to the knowledge of
the Company), the Company, in its discretion, may allow the spouse or one or more dependents or relatives of the Awardee to exercise
the Award to the extent permissible under Applicable Law.

 

16.No Right to Awards or to
Service. No person shall have any claim or right to be granted an Award and the grant of any Award shall not be construed
as giving an Awardee the right to continue in the service of the Company or its Affiliates. Further, the Company and its Affiliates
expressly reserve the right, at any time, to dismiss any Service Provider or Awardee at any time without liability or any claim
under the Plan, except as provided herein or in any Award Agreement entered into hereunder.

 

17.Preemptive Rights.
No Shares will be issued under the Plan in violation of any preemptive rights held by any stockholder of the Company.

 

18.Legal Compliance.
No Share will be issued pursuant to an Award under the Plan unless the issuance and delivery of such Share, as well as the exercise
of such Award, if applicable, will comply with Applicable Laws. Issuance of Shares under the Plan shall be subject to the approval
of counsel for the Company with respect to such compliance. Notwithstanding anything in the Plan to the contrary, the Plan is intended
to comply with the requirements of Section 409A of the Code and shall be interpreted in a manner consistent with that intention.

 

19.Inability to Obtain Authority.
To the extent the Company is unable to or the Administrator deems that it is not feasible 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, the Company shall be relieved of any liability with respect to the failure to issue or sell such Shares
as to which such requisite authority shall not have been obtained.

 

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

 

21.Notice. Any written
notice to the Company required by any provisions of this Plan shall be addressed to the Secretary of the Company and shall be effective
when received.

 

22.Governing Law; Interpretation
of Plan and Awards.

 

(a)This Plan and all
determinations made and actions taken pursuant hereto shall be governed by the substantive laws, but not the choice of law rules,
of the State of Nevada.

 

(b)If any provision
of the Plan or any Award granted under the Plan is declared to be illegal, invalid, or otherwise unenforceable by a court of competent
jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid, and enforceable,
or otherwise deleted, and the remainder of the terms of the Plan and Award shall not be affected except to the extent necessary
to reform or delete such illegal, invalid, or unenforceable provision.

 

(c)The headings preceding
the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a part of the Plan,
nor shall they affect its meaning, construction or effect.

 

(d)The terms of the
Plan and any Award shall inure to the benefit of and be binding upon the parties hereto and their respective permitted heirs, beneficiaries,
successors, and assigns.

 

(e)All questions arising
under the Plan or under any Award shall be decided by the Administrator in its total and absolute discretion. If the Participant
believes that a decision by the Administrator with respect to such person was arbitrary or capricious, the Participant may request
arbitration with respect to such decision. The review by the arbitrator shall be limited to determining whether the Administrator’s
decision was arbitrary or capricious. This arbitration shall be the sole and exclusive review permitted of the Administrator’s
decision, and the Awardee shall as a condition to the receipt of an Award be deemed to waive explicitly any right to judicial review.

 

23.Limitation on Liability.
The Company and any Affiliate or Related Corporation that is in existence or hereafter comes into existence shall not be liable
to a Participant, an Employee, an Awardee, or any other persons as to:

 

(a)The Non-Issuance
of Shares. The non-issuance or sale of Shares as to which the Company has been unable to obtain from any regulatory body having
jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any shares
hereunder; and

 

(b)Tax Consequences.
Any tax consequence expected, but not realized, by any Participant, Employee, Awardee or other person due to the receipt, exercise
or settlement of any Option or other Award granted hereunder.

 

24.Unfunded Plan.
Insofar as it provides for Awards, the Plan shall be unfunded. Although bookkeeping accounts may be established with respect to
Awardees who are granted Stock Awards under this Plan, any such accounts will be used merely as a bookkeeping convenience. The
Company shall not be required to segregate any assets that may at any time be represented by Awards, nor shall this Plan be construed
as providing for such segregation, nor shall the Company or the Administrator be deemed a trustee of stock or cash to be awarded
under the Plan. Any liability of the Company to any Participant with respect to an Award shall be based solely upon any contractual
obligations that may be created by the Plan; no such obligation of the Company shall be deemed secured by any pledge or other encumbrance
on any property of the Company. Neither the Company nor the Administrator shall be required to give any security or bond for the
performance of any obligation that may be created by this Plan.

 

IN WITNESS WHEREOF, the
Company, by its duly authorized officer, has executed this Plan, effective as of _____________________.

CABINET GROW, INC., 

 

By:_____________________________

  _______________, its
________________

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