Document:

Exhibit 10.7 

 

STRAWBERRY
FIELDS REIT, INC.

 

2021
EQUITY INCENTIVE PLAN

 

    	 

     

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I	DEFINITIONS	1
	 	 	 	 
	 	1.01.	Affiliate	1
	 	 	 	 
	 	1.02.	Agreement	1
	 	 	 	 
	 	1.03.	Board	1
	 	 	 	 
	 	1.04.	Change in Control	1
	 	 	 	 
	 	1.05.	Code	2
	 	 	 	 
	 	1.06.	Committee	2
	 	 	 	 
	 	1.07.	Common Stock	2
	 	 	 	 
	 	1.08.	Company	2
	 	 	 	 
	 	1.09.	Control Change Date	2
	 	 	 	 
	 	1.10.	Corresponding SAR	2
	 	 	 	 
	 	1.11.	Dividend Equivalent Right	2
	 	 	 	 
	 	1.12.	Exchange Act	2
	 	 	 	 
	 	1.13.	Fair Market Value	3
	 	 	 	 
	 	1.14.	Incentive Award	3
	 	 	 	 
	 	1.15.	Initial Value	3
	 	 	 	 
	 	1.16.	Non-Employee Director	3
	 	 	 	 
	 	1.17.	Operating Partnership	3
	 	 	 	 
	 	1.18.	Option	3
	 	 	 	 
	 	1.19.	Other Equity-Based Award	3
	 	 	 	 
	 	1.20.	Participant	3
	 	 	 	 
	 	1.21.	Performance Goal	4
	 	 	 	 
	 	1.22.	Performance Units	4
	 	 	 	 
	 	1.23.	Plan	4
	 	 	 	 
	 	1.24.	SAR	4
	 	 	 	 
	 	1.25.	Stock Award	4
	 	 	 	 
	 	1.26.	Ten Percent Stockholder	4
	 	 	 	 
	ARTICLE II	PURPOSES	4
	 	 	 	 
	ARTICLE III	ADMINISTRATION	5
	 	 	 	 
	ARTICLE IV	ELIGIBILITY	5
	 	 	 	 
	ARTICLE V	COMMON STOCK SUBJECT TO PLAN	6
	 	 	 	 
	 	5.01.	Common Stock Issued	6
	 	 	 	 
	 	5.02.	Aggregate Limit	6
	 	 	 	 
	 	5.03.	Non-Employee Director Grant
    Limit	6
	 	 	 	 
	 	5.04.	Reallocation of Shares	6

 

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Table
of Contents

(continued)

 

	ARTICLE VI	OPTIONS	6
	 	 	 	 
	 	6.01.	Award	6
	 	 	 	 
	 	6.02.	Option Price	7
	 	 	 	 
	 	6.03.	Maximum Option Period	7
	 	 	 	 
	 	6.04.	Nontransferability	7
	 	 	 	 
	 	6.05.	Transferable Options	7
	 	 	 	 
	 	6.06.	Employee Status	7
	 	 	 	 
	 	6.07.	Exercise	8
	 	 	 	 
	 	6.08.	Payment	8
	 	 	 	 
	 	6.09.	Stockholder Rights	8
	 	 	 	 
	 	6.10.	Disposition of Shares	8
	 	 	 	 
	ARTICLE VII	SARS	8
	 	 	 	 
	 	7.01.	Award	8
	 	 	 	 
	 	7.02.	Maximum SAR Period	8
	 	 	 	 
	 	7.03.	Nontransferability	8
	 	 	 	 
	 	7.04.	Transferable SARs	9
	 	 	 	 
	 	7.05.	Exercise	9
	 	 	 	 
	 	7.06.	Employee Status	9
	 	 	 	 
	 	7.07.	Settlement	9
	 	 	 	 
	 	7.08.	Stockholder Rights	9
	 	 	 	 
	 	7.09.	No Reduction of Initial Value	9
	 	 	 	 
	ARTICLE VIII	STOCK AWARDS	10
	 	 	 	 
	 	8.01.	Award	10
	 	 	 	 
	 	8.02.	Vesting	10
	 	 	 	 
	 	8.03.	Employee Status	10
	 	 	 	 
	 	8.04.	Stockholder Rights	10
	 	 	 	 
	ARTICLE IX	PERFORMANCE UNIT AWARDS	10
	 	 	 	 
	 	9.01.	Award	10
	 	 	 	 
	 	9.02.	Earning the Award	11
	 	 	 	 
	 	9.03.	Payment	11
	 	 	 	 
	 	9.04.	Stockholder Rights	11
	 	 	 	 
	 	9.05.	Nontransferability	11
	 	 	 	 
	 	9.06.	Transferable Performance Units	11
	 	 	 	 
	 	9.07.	Employee Status	11

 

    	-ii-

     

    

 

Table
of Contents

(continued)

 

	ARTICLE X	OTHER EQUITY–BASED AWARDS	12
	 	 	 	 
	 	10.01.	Award	12
	 	 	 	 
	 	10.02.	Terms and Conditions	12
	 	 	 	 
	 	10.03.	Payment or Settlement	12
	 	 	 	 
	 	10.04.	Employee Status	12
	 	 	 	 
	 	10.05.	Stockholder Rights	12
	 	 	 	 
	ARTICLE XI	INCENTIVE AWARDS	12
	 	 	 	 
	 	11.01.	Award	12
	 	 	 	 
	 	11.02.	Terms and Conditions	12
	 	 	 	 
	 	11.03.	Nontransferability	13
	 	 	 	 
	 	11.04.	Employee Status	13
	 	 	 	 
	 	11.05.	Settlement	13
	 	 	 	 
	 	11.06.	Stockholder Rights	13
	 	 	 	 
	ARTICLE XII	ADJUSTMENT UPON CHANGE IN
    COMMON STOCK	13
	 	 	 
	ARTICLE XIII	COMPLIANCE WITH LAW AND APPROVAL
    OF REGULATORY BODIES	14
	 	 	 
	ARTICLE XIV	GENERAL PROVISIONS	14
	 	 	 	 
	 	14.01.	Effect on Employment and Service	14
	 	 	 	 
	 	14.02.	Unfunded Plan	14
	 	 	 	 
	 	14.03.	Rules of Construction	14
	 	 	 	 
	 	14.04.	Section 409A Compliance	14
	 	 	 	 
	 	14.05.	Withholding Taxes	15
	 	 	 	 
	 	14.06.	Return of Awards; Repayment	15
	 	 	 	 
	 	14.07.	Governing Law	15
	 	 	 	 
	 	14.08.	Indemnification	15
	 	 	 	 
	ARTICLE XV	CHANGE IN CONTROL	16
	 	 	 	 
	 	15.01.	Impact of Change in Control.	16
	 	 	 	 
	 	15.02.	Assumption Upon Change in
    Control.	16
	 	 	 	 
	 	15.03.	Cash-Out Upon Change in Control.	16
	 	 	 	 
	 	15.04.	Limitation of Benefits	16
	 	 	 	 
	ARTICLE XVI	AMENDMENT	17
	 	 	 
	ARTICLE XVII	DURATION OF PLAN	17
	 	 	 
	ARTICLE XVIII	EFFECTIVE DATE OF PLAN	17

 

    	-iii-

     

    

 

ARTICLE
I

DEFINITIONS

 

1.01.
Affiliate

 

“Affiliate”
means any entity, whether now or hereafter existing, which controls, is controlled by, or is under common control with, the Company (including,
but not limited to, joint ventures, limited liability companies and partnerships). For this purpose, the term “control” shall
mean ownership of 50% or more of the total combined voting power or value of all classes of shares or interests in the entity, or the
power to direct the management and policies of the entity, by contract or otherwise.

 

1.02.
Agreement

 

“Agreement”
means a written agreement (including any amendment or supplement thereto) between the Company and a Participant specifying the terms
and conditions of a Stock Award, an Incentive Award, an award of Performance Units, an Option, SAR or Other Equity-Based Award granted
to such Participant.

 

1.03.
Board

 

“Board”
means the Board of Directors of the Company.

 

1.04.
Change in Control

 

“Change
in Control” shall mean a change in control of the Company which will be deemed to have occurred after the date hereof if:

 

(a)
any “person” as such term is used in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof except that such term shall not include (A) the Company or any of its subsidiaries, (B) any trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any of its affiliates, (C) an underwriter temporarily holding securities
pursuant to an offering of such securities, (D) any corporation owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership of the Company’s common stock, or (E) any person or group as used in Rule
13d-1(b) under the Exchange Act, is or becomes the Beneficial Owner, as such term is defined in Rule 13d-3 under the Exchange Act, directly
or indirectly, of securities of the Company representing at least 50% of the combined voting power or common stock of the Company;

 

(b)
during any period of two consecutive years, individuals who at the beginning of such period constitute the Board, and any new director
(other than (A) a director designated by a person who has entered into an agreement with the Company to effect a transaction described
in clause (1), (3), or (4) of this Section 1.04 or (B) a director whose initial assumption of office is in connection with an actual
or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company)
whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds
(2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination
for election was previously so approved, cease for any reason to constitute at least a majority thereof;

 

(c)
there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation,
other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any
parent thereof) in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan
of the Company or any subsidiary of the Company, more than 50% of the combined voting power and common stock of the Company or such surviving
entity or any parent thereof outstanding immediately after such merger or consolidation; or

 

    	 

     

    

 

(d)
there is consummated a sale or disposition by the Company of all or substantially all of the Company’s assets (or any transaction
having a similar effect, including a liquidation) other than a sale or disposition by the Company of all or substantially all of the
Company’s assets to an entity, more than fifty percent (50%) of the combined voting power and common stock of which is owned by
stockholders of the Company in substantially the same proportions as their ownership of the common stock of the Company immediately prior
to such sale.

 

Notwithstanding
the foregoing, if an award under this Plan constitutes “deferred compensation” under Section 409A of the Code, no payment
shall be made under such award on account of a Change in Control unless the occurrence of one or more of the preceding events also constitutes
a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the Company’s
assets, all as determined in accordance with the regulations under Section 409A of the Code.

 

1.05.
Code

 

“Code”
means the Internal Revenue Code of 1986, and any amendments thereto.

 

1.06.
Committee

 

“Committee”
means the Compensation Committee of the Board; provided, however, that if there is no Compensation Committee, then “Committee”
means the Board; and provided, further that with respect to awards made to a Non-Employee Director, “Committee” means the
Board.

 

1.07.
Common Stock

 

“Common
Stock” means the common stock, par value $0.01 per share, of the Company.

 

1.08.
Company

 

“Company”
means Strawberry Fields REIT, Inc., a Maryland corporation.

 

1.09.
Control Change Date

 

“Control
Change Date” means the date on which a Change in Control occurs. If a Change in Control occurs on account of a series of transactions,
the “Control Change Date” is the date of the last of such transactions.

 

1.10.
Corresponding SAR

 

“Corresponding
SAR” means a SAR that is granted in relation to a particular Option and that can be exercised only upon the surrender to the Company,
unexercised, of that portion of the Option to which the SAR relates.

 

1.11.
Dividend Equivalent Right

 

“Dividend
Equivalent Right” means the right, subject to the terms and conditions prescribed by the Committee, of a Participant to receive
(or have credited) cash, shares or other property in amounts equivalent to the cash, shares or other property dividends declared on shares
of Common Stock with respect to specified Performance Units or Common Shares subject to an Other Equity-Based Award, as determined by
the Committee, in its sole discretion. The Committee shall provide that Dividend Equivalent Rights (if any) payable with respect to any
award that does not vest or become exercisable solely on account of continued employment or service shall be distributed only when, and
to the extent that, the underlying award is vested and also may provide that Dividend Equivalent Rights (if any) shall be deemed to have
been reinvested in additional shares of Common Stock or otherwise reinvested.

 

1.12.
Exchange Act

 

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

 

    	2

     

    

 

1.13.
Fair Market Value

 

“Fair
Market Value” means, on any given date, the reported “closing” price of a share of Common Stock on the Nasdaq Stock
Exchange. If, on any given date, the Common Stock is not listed for trading on the Nasdaq Stock Exchange, then Fair Market Value shall
be the “closing” price of a share of Common Stock on such other exchange on which the Common Stock is listed for trading
or, if the Common Stock is not listed on any exchange, the amount determined by the Committee using any reasonable method in good faith
and in accordance with the regulations under Section 409A of the Code.

 

1.14.
Incentive Award

 

“Incentive
Award” means an award under Article XI which, subject to the terms and conditions prescribed by the Committee, entitles the Participant
to receive a payment from the Company or an Affiliate.

 

1.15.
Initial Value

 

“Initial
Value” means, with respect to a Corresponding SAR, the option price per share of the related Option and, with respect to a SAR
granted independently of an Option, the price per share of Common Stock as determined by the Committee on the date of grant; provided,
however, that the price shall not be less than the Fair Market Value on the date of grant.

 

1.16.
Non-Employee Director

 

“Non-Employee
Director” means a member of the Board who is not an employee of the Company or an Affiliate.

 

1.17.
Operating Partnership

 

“Operating
Partnership” means Strawberry Fields Realty LP.

 

1.18.
Option

 

“Option”
means a share option that entitles the holder to purchase from the Company a stated number of shares of Common Stock at the price set
forth in an Agreement.

 

1.19.
Other Equity-Based Award

 

“Other
Equity-Based Award” means any award other than an Option, SAR, Incentive Award, a Performance Unit award or a Stock Award which,
subject to such terms and conditions as may be prescribed by the Committee, entitles a Participant to receive shares of Common Stock
or rights or units valued in whole or in part by reference to, or otherwise based on, shares of Common Stock (including securities convertible
into Common Stock) or other equity interests.

 

1.20.
Participant

 

“Participant”
means an employee or officer of the Company or an Affiliate, a member of the Board, or an individual who provides significant services
to the Company or an Affiliate (including an individual who provides services to the Company or an Affiliate by virtue of employment
with, or providing services to, the Operating Partnership), and who satisfies the requirements of Article IV and, in accordance with
the terms of the Plan, is selected by the Committee to receive an award of Performance Units, a Stock Award, an Incentive Award, Option,
SAR, Other Equity-Based Award or a combination thereof.

 

    	3

     

    

 

1.21.
Performance Goal

 

“Performance
Goal” means a performance objective that is stated with respect to one or more of the following, alone or in combination: funds
from operations; adjusted funds from operations; earnings before interest, taxes, depreciation and amortization (“EBITDA”);
adjusted EBITDA; return on capital assets, development, investment or equity; total earnings; revenues or sales; earnings per share of
Common Stock; return on capital; Fair Market Value; total stockholder return; cash flow; acquisitions or strategic transactions; operating
income (loss); gross or net profit levels; productivity; expenses; margins; operating efficiency; working capital; portfolio or regional
occupancy rates; or performance or yield on development or redevelopment activities, same store NOI growth, balance sheet metrics such
as leverage ratio, debt/EBITDA, and fixed charge coverage.

 

A
Performance Goal may be expressed on an absolute basis or relative to the performance of one or more peer companies or a published index.
When establishing Performance Goals, the Committee may exclude any or all special, unusual or extraordinary items as determined under
U.S. generally accepted accounting principles, including, without limitation, the charges or costs associated with restructurings of
the Company, discontinued operations, other unusual or non-recurring items and the cumulative effects of accounting changes.

 

1.22.
Performance Units

 

“Performance
Units” means an award, in the amount determined by the Committee, stated with reference to a specified number of shares of Common
Stock or other securities or property, that in accordance with the terms of an Agreement entitles the holder to receive a payment for
each specified unit equal to the Fair Market Value of the Common Stock on the date of payment.

 

1.23.
Plan

 

“Plan”
means this Strawberry Fields REIT, Inc. 2021 Equity Incentive Plan.

 

1.24.
SAR

 

“SAR”
means a stock appreciation right that in accordance with the terms of an Agreement entitles the holder to receive, with respect to each
share of Common Stock encompassed by the exercise of the SAR, the excess, if any, of the Fair Market Value at the time of exercise over
the Initial Value. References to “SARs” include both Corresponding SARs and SARs granted independently of Options, unless
the context requires otherwise.

 

1.25.
Stock Award

 

“Stock
Award” means shares of Common Stock awarded to a Participant under Article VIII.

 

1.26.
Ten Percent Stockholder

 

“Ten
Percent Stockholder” means any individual owning more than ten percent (10%) of the total combined voting power of all classes
of shares of the Company or of a “parent corporation” or “subsidiary corporation” (as such terms are defined
in Section 424 of the Code) of the Company. An individual shall be considered to own any voting shares owned (directly or indirectly)
by or for his or her brothers, sisters, spouse, ancestors or lineal descendants and shall be considered to own proportionately any voting
shares owned (directly or indirectly) by or for a corporation, partnership, estate or trust of which such individual is a stockholder,
partner or beneficiary.

 

ARTICLE
II

PURPOSES

 

The
Plan is intended to assist the Company and its Affiliates in recruiting and retaining individuals and other service providers with ability
and initiative by enabling such persons to participate in the future success of the Company and its Affiliates and to associate their
interests with those of the Company and its stockholders. The Plan is intended to permit the grant of both Options qualifying under Section
422 of the Code (“incentive stock options”) and Options not so qualifying, and the grant of SARs, Stock Awards, Incentive
Awards, Performance Units, and Other Equity-Based Awards in accordance with the Plan and any procedures that may be established by the
Committee. No Option that is intended to be an incentive stock option shall be invalid for failure to qualify as an incentive stock option.
The proceeds received by the Company from the sale of Common Stock pursuant to this Plan shall be used for general corporate purposes.

 

    	4

     

    

 

ARTICLE
III

ADMINISTRATION

 

The
Plan shall be administered by the Committee. The Committee shall have authority to grant SARs, Stock Awards, Incentive Awards, Performance
Units, Options and Other Equity-Based Awards upon such terms (not inconsistent with the provisions of this Plan), as the Committee may
consider appropriate. Such terms may include conditions (in addition to those contained in this Plan), on the exercisability of all or
any part of an Option or SAR or on the transferability or forfeitability of a Stock Award, an Incentive Award, an award of Performance
Units or an Other Equity-Based Award. Notwithstanding any such conditions, the Committee may, in its discretion, accelerate the time
at which any Option or SAR may be exercised, or the time at which a Stock Award, an Incentive Award or Other Equity-Based Award may become
transferable or nonforfeitable or the time at which an Other Equity-Based Award, an Incentive Award or an award of Performance Units
may be settled. In addition, the Committee shall have complete authority to interpret all provisions of this Plan; to prescribe the form
of Agreements; to adopt, amend, and rescind rules and regulations pertaining to the administration of the Plan (including rules and regulations
that require or allow Participants to defer the payment of benefits under the Plan); and to make all other determinations necessary or
advisable for the administration of this Plan. Additionally, the Committee shall have the sole authority to amend the terms of any outstanding
award, including the discretionary authority to extend the post-termination exercise period of Options and to allow Participants to satisfy
withholding tax obligations by electing to have the Company withhold from the shares of Common Stock or cash to be issued upon exercise
or vesting of an award the number of shares of Common Stock or cash having a Fair Market Value equal to the amount required to be withheld
up to the maximum individual income tax rate in the applicable jurisdiction. Committee’s determinations under the Plan (including
without limitation, determinations of the individuals to receive awards under the Plan, the form, amount and timing of such awards, the
terms and provisions of such awards and the Agreements) need not be uniform and may be made by the Committee selectively among individuals
who receive, or are eligible to receive, awards under the Plan, whether or not such persons are similarly situated. The express grant
in the Plan of any specific power to the Committee shall not be construed as limiting any power or authority of the Committee. Any decision
made, or action taken, by the Committee in connection with the administration of this Plan shall be final and conclusive. The members
of the Committee shall not be liable for any act done in good faith with respect to this Plan or any Agreement, Option, SAR, Stock Award,
Incentive Award, Other Equity-Based Award or award of Performance Units. All expenses of administering this Plan shall be borne by the
Company.

 

The
Committee, in its discretion, may delegate to a designated officer of the Company all or part of the Committee’s authority and
duties with respect to grants and awards to individuals who are not subject to the reporting and other provisions of Section 16 of the
Exchange Act. The Committee may revoke or amend the terms of a delegation at any time but such action shall not invalidate any prior
actions of the Committee’s delegate that were consistent with the terms of the Plan and the Committee’s prior delegation.
References to the “Committee” in the Plan include the Committee’s delegate to the extent consistent with the Committee’s
delegation.

 

ARTICLE
IV

ELIGIBILITY

 

Any
employee of the Company or an Affiliate (including a trade or business that becomes an Affiliate after the adoption of this Plan) and
any member of the Board is eligible to participate in this Plan; provided that Incentive Awards may not be granted to a Non-Employee
Director. In addition, any other individual who provides significant services to the Company or an Affiliate (including an individual
who provides services to the Company or an Affiliate by virtue of employment with, or providing services to, the Operating Partnership)
is eligible to participate in this Plan if the Committee, in its sole discretion, determines that the participation of such individual
is in the best interest of the Company. The Committee may also grant Options, SARs, Stock Awards, Incentive Awards, Performance Units
and Other Equity-Based Awards to an individual as an inducement to such individual becoming eligible to participate in the Plan and prior
to the date that the individual first performs services for the Company, an Affiliate or the Operating Partnership, provided that such
awards will not become vested or exercisable, and no shares of Common Stock shall be issued or other payment made to such individual
with respect to such awards prior to the date the individual first performs services for the Company, an Affiliate or the Operating Partnership.

 

    	5

     

    

 

ARTICLE
V

COMMON
STOCK SUBJECT TO PLAN

 

5.01.
Common Stock Issued

 

Upon
the award of Common Stock pursuant to a Stock Award, an Other Equity-Based Award or in settlement of an award of Performance Units or
Incentive Award, the Company may deliver to the Participant shares of Common Stock from its treasury shares or authorized but unissued
Common Stock. Upon the exercise of any Option, SAR or Other Equity-Based Award denominated in shares of Common Stock, the Company may
deliver to the Participant (or the Participant’s broker if the Participant so directs), shares of Common Stock from its treasury
shares or authorized but unissued Common Stock.

 

5.02.
Aggregate Limit

 

(a)
The maximum aggregate number of Common Shares that may be issued under this Plan pursuant to the exercise of Options and SARs, the grant
of Stock Awards or Other Equity-Based Awards and the settlement of Performance Units and Incentive Awards is 250,000 shares, all of which
may be subject to incentive stock option treatment.

 

(b)
The maximum number of shares of Common Stock that may be issued under this Plan in accordance with Section 5.02(a) shall be subject to
adjustment as provided in Article XII.

 

(c)
The maximum number of shares of Common Stock that may be issued upon the exercise of Options that are incentive stock options or Corresponding
SARs that are related to incentive stock options shall be determined in accordance with Sections 5.02(a) and 5.02(b).

 

5.03.
Non-Employee Director Grant Limit

 

A
Non-Employee Director may not be granted Options, SARs, Stock Awards, Performance Units and Other Equity-Based Awards in any calendar
year with respect to that number of shares of Common Stock that has a Fair Market Value on the date of the award in excess of $500,000.
For purposes of this Section 5.03, the value of an Option or a SAR will be the fair market value of such award on the date of grant as
determined by the Committee using a Black-Scholes option pricing model or any other reasonable valuation method approved by the Committee.
For purposes of this Section 5.03, an award of an Option and Corresponding SAR shall be treated as a single award.

 

5.04.
Reallocation of Shares

 

If
any award or grant under the Plan expires, is forfeited or is terminated without having been exercised or is paid in cash without delivery
of shares of Common Stock, then any shares of Common Stock covered by such lapsed, cancelled, expired, unexercised or cash-settled portion
of such award or grant shall be available for the grant of other Options, SARs, Stock Awards, Other Equity-Based Awards and settlement
of Performance Units and Incentive Awards under this Plan. Any shares of Common Stock tendered or withheld to satisfy the grant or exercise
price or tax withholding obligation pursuant to any award shall be available for future grants or awards.

 

    	6

     

    

 

ARTICLE
VI

OPTIONS

 

6.01.
Award

 

In
accordance with the provisions of Article IV, the Committee will designate each individual to whom an Option is to be granted and, subject
to Section 5.03, will specify the number of shares of Common Stock covered by such awards. Notwithstanding anything herein to the contrary,
Options that are intended to be incentive stock options may be granted only to persons who are, as of the date of grant, common-law employees
of the Company or a subsidiary (as such term is defined in Code Sections 424(e) and (f)).

 

6.02.
Option Price

 

The
price per share of Common Stock purchased on the exercise of an Option shall be determined by the Committee on the date of grant, but
shall not be less than the Fair Market Value on the date the Option is granted. Notwithstanding the preceding sentence, the price per
share of Common Stock purchased on the exercise of any Option that is an incentive stock option granted to an individual who is a Ten
Percent Stockholder on the date such option is granted, shall not be less than one hundred ten percent (110%) of the Fair Market Value
on the date the Option is granted. Except as provided in Article XII, the price per share of an outstanding Option may not be reduced
(by amendment, cancellation and new grant or otherwise) without the approval of stockholders. In addition, without the approval of stockholders,
no payment shall be made in cancellation of an Option if, on the date of cancellation, the option price per share exceeds Fair Market
Value.

 

6.03.
Maximum Option Period

 

The
maximum period in which an Option may be exercised shall be determined by the Committee on the date of grant except that no Option shall
be exercisable after the expiration of ten years from the date such Option was granted. In the case of an incentive stock option granted
to a Participant who is a Ten Percent Stockholder on the date of grant, such Option shall not be exercisable after the expiration of
five years from the date of grant. The terms of any Option may provide that it is exercisable for a period less than such maximum period.

 

6.04.
Nontransferability

 

Except
as provided in Section 6.05, each Option granted under this Plan shall be nontransferable except by will or by the laws of descent and
distribution. In the event of any transfer of an Option (by the Participant or his transferee), the Option and any Corresponding SAR
that relates to such Option must be transferred to the same person or persons or entity or entities. Except as provided in Section 6.05,
during the lifetime of the Participant to whom the Option is granted, the Option may be exercised only by the Participant. No right or
interest of a Participant in any Option shall be liable for, or subject to, any lien, obligation, or liability of such Participant.

 

6.05.
Transferable Options

 

Section
6.04 to the contrary notwithstanding, if the Agreement provides, an Option that is not an incentive stock option may be transferred by
a Participant to the Participant’s children, grandchildren, spouse, one or more trusts for the benefit of such family members or
a partnership in which such family members are the only partners, on such terms and conditions as may be permitted under Rule 16b-3 under
the Exchange Act as in effect from time to time. The holder of an Option transferred pursuant to this Section shall be bound by the same
terms and conditions that governed the Option during the period that it was held by the Participant; provided, however, that such transferee
may not transfer the Option except by will or the laws of descent and distribution. In the event of any transfer of an Option (by the
Participant or his transferee), the Option and any Corresponding SAR that relates to such Option must be transferred to the same person
or persons or entity or entities.

 

6.06.
Employee Status

 

For
purposes of determining the applicability of Section 422 of the Code (relating to incentive stock options), or in the event that the
terms of any Option provide that it may be exercised only during employment or continued service or within a specified period of time
after termination of employment or continued service, the Committee may decide to what extent leaves of absence for governmental or military
service, illness, temporary disability, or other reasons shall not be deemed interruptions of continuous employment or service.

 

    	7

     

    

 

6.07.
Exercise

 

Subject
to the provisions of this Plan and the applicable Agreement, an Option may be exercised in whole at any time or in part from time to
time at such times and in compliance with such requirements as the Committee shall determine; provided, however, that incentive stock
options (granted under the Plan and all plans of the Company and its Affiliates) may not be first exercisable in a calendar year for
Common Shares having a Fair Market Value (determined as of the date an Option is granted) exceeding $100,000. An Option granted under
this Plan may be exercised with respect to any number of whole shares less than the full number for which the Option could be exercised.
A partial exercise of an Option shall not affect the right to exercise the Option from time to time in accordance with this Plan and
the applicable Agreement with respect to the remaining shares subject to the Option. The exercise of an Option shall result in the termination
of any Corresponding SAR to the extent of the number of shares with respect to which the Option is exercised.

 

6.08.
Payment

 

Subject
to rules established by the Committee and unless otherwise provided in an Agreement, payment of all or part of the Option price may be
made in cash, certified check, by tendering shares of Common Stock or by attestation of ownership of shares of Common Stock or by a broker-assisted
cashless exercise. If shares of Common Stock are used to pay all or part of the Option price, the sum of the cash and cash equivalent
and the Fair Market Value (determined on the date of exercise) of the shares surrendered must not be less than the Option price of the
shares for which the Option is being exercised.

 

6.09.
Stockholder Rights

 

No
Participant shall have any rights as a stockholder with respect to shares of Common Stock subject to an Option until the date of exercise
of such Option.

 

6.10.
Disposition of Shares

 

A
Participant shall notify the Company of any sale or other disposition of shares of Common Stock acquired pursuant to an Option that was
an incentive stock option if such sale or disposition occurs (i) within two years of the grant of an Option or (ii) within one year of
the issuance of the shares of Common Stock to the Participant. Such notice shall be in writing and directed to the Secretary of the Company.

 

ARTICLE
VII

SARS

 

7.01.
Award

 

In
accordance with the provisions of Article IV, the Committee will designate each individual to whom SARs are to be granted and will, subject
to Section 5.03, specify the number of shares of Common Stock covered by such awards.

 

7.02.
Maximum SAR Period

 

The
term of each SAR shall be determined by the Committee on the date of grant, except that no SAR shall have a term of more than ten years
from the date of grant. In the case of a Corresponding SAR that is related to an incentive stock option granted to a Participant who
is a Ten Percent Stockholder on the date of grant, such Corresponding SAR shall not be exercisable after the expiration of five years
from the date of grant. The terms of any SAR may provide that it has a term that is less than such maximum period.

 

7.03.
Nontransferability

 

Except
as provided in Section 7.04, each SAR granted under this Plan shall be nontransferable except by will or by the laws of descent and distribution.
In the event of any such transfer, a Corresponding SAR and the related Option must be transferred to the same person or persons or entity
or entities. Except as provided in Section 7.04, during the lifetime of the Participant to whom the SAR is granted, the SAR may be exercised
only by the Participant. No right or interest of a Participant in any SAR shall be liable for, or subject to, any lien, obligation, or
liability of such Participant.

 

    	8

     

    

 

7.04.
Transferable SARs

 

Section
7.03 to the contrary notwithstanding, if the Agreement provides, a SAR, other than a Corresponding SAR that is related to an incentive
stock option, may be transferred by a Participant to the Participant’s children, grandchildren, spouse, one or more trusts for
the benefit of such family members or a partnership in which such family members are the only partners, on such terms and conditions
as may be permitted under Rule 16b-3 under the Exchange Act as in effect from time to time. The holder of a SAR transferred pursuant
to this Section shall be bound by the same terms and conditions that governed the SAR during the period that it was held by the Participant;
provided, however, that such transferee may not transfer the SAR except by will or the laws of descent and distribution. In the event
of any transfer of a Corresponding SAR (by the Participant or his transferee), the Corresponding SAR and the related Option must be transferred
to the same person or person or entity or entities.

 

7.05.
Exercise

 

Subject
to the provisions of this Plan and the applicable Agreement, a SAR may be exercised in whole at any time or in part from time to time
at such times and in compliance with such requirements as the Committee shall determine; provided, however, that a Corresponding SAR
that is related to an incentive stock option may be exercised only to the extent that the related Option is exercisable and only when
the Fair Market Value exceeds the option price of the related Option. A SAR granted under this Plan may be exercised with respect to
any number of whole shares less than the full number for which the SAR could be exercised. A partial exercise of a SAR shall not affect
the right to exercise the SAR from time to time in accordance with this Plan and the applicable Agreement with respect to the remaining
shares subject to the SAR. The exercise of a Corresponding SAR shall result in the termination of the related Option to the extent of
the number of shares with respect to which the SAR is exercised.

 

7.06.
Employee Status

 

If
the terms of any SAR provide that it may be exercised only during employment or continued service or within a specified period of time
after termination of employment or continued service, the Committee may decide to what extent leaves of absence for governmental or military
service, illness, temporary disability or other reasons shall not be deemed interruptions of continuous employment or service.

 

7.07.
Settlement

 

At
the Committee’s discretion, the amount payable as a result of the exercise of a SAR may be settled in cash, Common Stock, or a
combination of cash and Common Stock. No fractional share will be deliverable upon the exercise of a SAR but a cash payment will be made
in lieu thereof.

 

7.08.
Stockholder Rights

 

No
Participant shall, as a result of receiving a SAR, have any rights as a stockholder of the Company or any Affiliate until the date that
the SAR is exercised and then only to the extent that the SAR is settled by the issuance of Common Stock.

 

7.09.
No Reduction of Initial Value

 

Except
as provided in Article XII, the Initial Value of an outstanding SAR may not be reduced (by amendment, cancellation and new grant or otherwise)
without the approval of stockholders. In addition, without the approval of stockholders, no payment shall be made in cancellation of
a SAR if, on the date of cancellation, the Initial Value exceeds Fair Market Value.

 

    	9

     

    

 

ARTICLE
VIII

STOCK
AWARDS

 

8.01.
Award

 

In
accordance with the provisions of Article IV, the Committee will designate each individual to whom a Stock Award is to be made and will,
subject to Section 5.03, specify the number of shares of Common Stock covered by such awards.

 

8.02.
Vesting

 

The
Committee, on the date of the award, may prescribe that a Participant’s rights in a Stock Award shall be forfeitable or otherwise
restricted for a period of time or subject to such conditions as may be set forth in the Agreement. By way of example and not of limitation,
the Committee may prescribe that a Participant’s rights in a Stock Award shall be subject to a requirement that the Participant
complete a specified period of employment or service with the Company or an Affiliate or shall be forfeitable or otherwise restricted
subject to the attainment of objectives stated with reference to the Company’s, an Affiliate’s or a business unit’s
attainment of objectives stated with respect to performance criteria established by the Committee, including the attainment of objectives
stated with respect to one or more Performance Goals.

 

8.03.
Employee Status

 

In
the event that the terms of any Stock Award provide that shares may become transferable and nonforfeitable thereunder only after completion
of a specified period of employment or continuous service, the Committee may decide in each case to what extent leaves of absence for
governmental or military service, illness, temporary disability, or other reasons shall not be deemed interruptions of continuous employment
or service.

 

8.04.
Stockholder Rights

 

Unless
otherwise specified in accordance with the applicable Agreement, while the shares of Common Stock granted pursuant to the Stock Award
may be forfeited or are nontransferable, a Participant will have all rights of a stockholder with respect to a Stock Award, including
the right to receive dividends and vote the shares; provided, however, that dividends payable on shares of Common Stock subject to a
Stock Award that does not become nonforfeitable and transferable solely on account of continued employment or service, shall be distributed
only when, and to the extent that, the underlying Stock Award is nonforfeitable and transferable and the Committee may provide that such
dividends shall be deemed to have been reinvested in additional shares of Common Stock. During the period that the shares of Common Stock
granted pursuant to the Stock Award may be forfeited or are nontransferable (i) a Participant may not sell, transfer, pledge, exchange,
hypothecate, or otherwise dispose of shares granted pursuant to a Stock Award, (ii) the Company shall retain custody of any certificates
evidencing shares granted pursuant to a Stock Award, and (iii) the Participant will deliver to the Company a stock power, endorsed in
blank, with respect to each Stock Award. The limitations set forth in the preceding sentence shall not apply after the shares granted
under the Stock Award are transferable and are no longer forfeitable.

 

ARTICLE
IX

PERFORMANCE
UNIT AWARDS

 

9.01.
Award

 

In
accordance with the provisions of Article IV, the Committee will designate each individual to whom an award of Performance Units is to
be made and will, subject to Section 5.03, specify the number of shares of Common Stock or other securities or property covered by such
awards. The Committee also will specify whether Dividend Equivalent Rights are granted in conjunction with the Performance Units.

 

    	10

     

    

 

9.02.
Earning the Award

 

The
Committee, on the date of the grant of an award, may prescribe that the Performance Units will be earned, and the Participant will be
entitled to receive payment pursuant to the award of Performance Units, upon the satisfaction of certain conditions. By way of example,
and not of limitation, the Committee may prescribe that payment of an award of Performance Units will be subject to a requirement that
the Participant complete a specified period of employment or service with the Company or an Affiliate or the attainment of objectives
stated with reference to the Company’s, an Affiliate’s or a business unit’s attainment of objectives stated with respect
to performance criteria established by the Committee, including the attainment of objectives stated with respect to one or more Performance
Goals.

 

9.03.
Payment

 

In
the discretion of the Committee, the amount payable when an award of Performance Units is earned may be settled in cash, by the issuance
of Common Stock, by the delivery of other securities or property or a combination thereof. A fractional share of Common Stock shall not
be deliverable when an award of Performance Units is earned, but a cash payment will be made in lieu thereof. The amount payable when
an award of Performance Units is earned shall be paid in a lump sum.

 

9.04.
Stockholder Rights

 

A
Participant, as a result of receiving an award of Performance Units, shall not have any rights as a stockholder until, and then only
to the extent that, the award of Performance Units is earned and settled in shares of Common Stock. After an award of Performance Units
is earned and settled in shares of Common Stock, a Participant will have all the rights of a stockholder as described in Section 8.04.

 

9.05.
Nontransferability

 

Except
as provided in Section 9.06, Performance Units granted under this Plan shall be nontransferable except by will or by the laws of descent
and distribution. No right or interest of a Participant in any Performance Units shall be liable for, or subject to, any lien, obligation,
or liability of such Participant.

 

9.06.
Transferable Performance Units

 

Section
9.05 to the contrary notwithstanding, if the Agreement provides, an award of Performance Units may be transferred by a Participant to
the Participant’s children, grandchildren, spouse, one or more trusts for the benefit of such family members or a partnership in
which such family members are the only partners, on such terms and conditions as may be permitted under Rule 16b-3 under the Exchange
Act as in effect from time to time. The holder of Performance Units transferred pursuant to this Section shall be bound by the same terms
and conditions that governed the Performance Units during the period that they were held by the Participant; provided, however that such
transferee may not transfer Performance Units except by will or the laws of descent and distribution.

 

9.07.
Employee Status

 

In
the event that the terms of any Performance Unit award provide that no payment will be made unless the Participant completes a stated
period of employment or continued service, the Committee may decide to what extent leaves of absence for government or military service,
illness, temporary disability, or other reasons shall not be deemed interruptions of continuous employment or service.

 

    	11

     

    

 

ARTICLE
X

OTHER
EQUITY–BASED AWARDS

 

10.01.
Award

 

In
accordance with the provisions of Article IV, the Committee will designate each individual to whom an Other Equity-Based Award is to
be made and will, subject to Section 5.03, specify the number of shares of Common Stock or other equity interests covered by such awards.
The Committee also will specify whether Dividend Equivalent Rights are granted in conjunction with the Other Equity-Based Award.

 

10.02.
Terms and Conditions

 

The
Committee, at the time an Other Equity-Based Award is made, shall specify the terms and conditions which govern the award. The terms
and conditions of an Other Equity-Based Award may prescribe that a Participant’s rights in the Other Equity-Based Award shall be
forfeitable, nontransferable or otherwise restricted for a period of time or subject to such other conditions as may be determined by
the Committee, in its discretion and set forth in the Agreement, including the attainment of objectives stated with respect to one or
more Performance Goals. Other Equity-Based Awards may be granted to Participants, either alone or in addition to other awards granted
under the Plan, and Other Equity-Based Awards may be granted in the settlement of other Awards granted under the Plan.

 

10.03.
Payment or Settlement

 

Other
Equity-Based Awards valued in whole or in part by reference to, or otherwise based on, shares of Common Stock, shall be payable or settled
in shares of Common Stock, cash or a combination of Common Stock and cash, as determined by the Committee in its discretion. Other Equity-Based
Awards denominated as equity interests other than Common Stock may be paid or settled in shares or units of such equity interests or
cash or a combination of both as determined by the Committee in its discretion.

 

10.04.
Employee Status

 

If
the terms of any Other Equity-Based Award provides that it may be earned or exercised only during employment or continued service or
within a specified period of time after termination of employment or continued service, the Committee may decide to what extent leaves
of absence for governmental or military service, illness, temporary disability or other reasons shall not be deemed interruptions of
continuous employment or service.

 

10.05.
Stockholder Rights

 

A
Participant, as a result of receiving an Other Equity-Based Award, shall not have any rights as a stockholder until, and then only to
the extent that, shares of Common Stock are issued under the Other Equity-Based Award.

 

ARTICLE
XI

INCENTIVE
AWARDS

 

11.01.
Award

 

In
accordance with the provisions of Article IV, the Committee will designate each individual to whom an Incentive Award is to be made and
the amount payable under each Incentive Award. In accordance with Article IV and notwithstanding the preceding sentence, Incentive Awards
may not be granted to a Non-Employee Director.

 

11.02.
Terms and Conditions

 

The
Committee, at the time an Incentive Award is made, shall specify the terms and conditions that govern the award. Such terms and conditions
may prescribe that the Incentive Award shall be earned only to the extent that the Participant, the Company or an Affiliate, achieves
objectives stated with reference to one or more performance measures or criteria prescribed by the Committee, including the attainment
of objectives stated with respect to one or more Performance Goals. Such terms and conditions also may include other limitations on the
payment of Incentive Awards including, by way of example and not of limitation, requirements that the Participant complete a specified
period of employment or service with the Company or an Affiliate or that the Company, an Affiliate, as a prerequisite to payment under
an Incentive Award.

 

    	12

     

    

 

11.03.
Nontransferability

 

Incentive
Awards granted under this Plan shall be nontransferable except by will or by the laws of descent and distribution. No right or interest
of a Participant in an Incentive Award shall be liable for, or subject to, any lien, obligation, or liability of such Participant.

 

11.04.
Employee Status

 

If
the terms of an Incentive Award provide that a payment will be made thereunder only if the Participant completes a stated period of employment
or continued service the Committee may decide to what extent leaves of absence for governmental or military service, illness, temporary
disability or other reasons shall not be deemed interruptions of continuous employment or service.

 

11.05.
Settlement

 

An
Incentive Award that is earned shall be settled with a single lump sum payment which may be in cash, shares of Common Stock or a combination
of cash and Common Stock, as determined by the Committee.

 

11.06.
Stockholder Rights

 

No
participant shall, as a result of receiving an Incentive Award, have any rights as a stockholder of the Company or an Affiliate until
the date that the Incentive Award is settled and then only to the extent that the Incentive Award is settled by the issuance of Common
Stock.

 

ARTICLE
XII

ADJUSTMENT
UPON CHANGE IN COMMON STOCK

 

The
maximum number of shares of Common Stock as to which Options, SARs, Performance Units, Stock Awards and Other Equity-Based Awards may
be granted and the terms of outstanding Stock Awards, Options, SARs, Incentive Awards, Performance Units and Other Equity-Based Awards
shall be adjusted as determined by the Board in the event that (i) the Company (a) effects one or more nonreciprocal transactions between
the Company and its stockholders such as a share dividend, extra-ordinary cash dividend, share split-up, subdivision or consolidation
of shares that affects the number of shares or kind of Common Stock (or other securities of the Company) or the Fair Market Value (or
the value of other Company securities) and causes a change in the Fair Market Value of the Common Stock subject to outstanding awards
or (b) engages in a transaction to which Section 424 of the Code applies or (ii) there occurs any other event which, in the judgment
of the Board necessitates such action. Any determination made under this Article XII by the Board shall be final and conclusive.

 

The
issuance by the Company of shares of any class, or securities convertible into shares of any class, for cash or property, or for labor
or services, either upon direct sale or upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or
obligations of the Company convertible into such shares or other securities, shall not affect, and no adjustment by reason thereof shall
be made with respect to, the maximum number of shares as to which Options, SARs, Performance Units, Stock Awards and Other Equity-Based
Awards may be granted or the terms of outstanding Stock Awards, Options, SARs, Incentive Awards, Performance Shares or Other Equity-Based
Awards.

 

The
Committee may grant Stock Awards, Options, SARs, Performance Units or Other Equity-Based Awards in substitution for performance shares,
phantom shares, stock awards, stock options, stock appreciation rights, or similar awards held by an individual who becomes an employee
of the Company or an Affiliate in connection with a transaction described in the first paragraph of this Article XII. Notwithstanding
any provision of the Plan (other than the limitation of Section 5.02), the terms of such substituted Stock Awards, SARs, Other Equity-Based
Awards, Options or Performance Units shall be as the Committee, in its discretion, determines is appropriate.

 

    	13

     

    

 

ARTICLE
XIII

COMPLIANCE
WITH LAW AND APPROVAL OF REGULATORY BODIES

 

No
Option or SAR shall be exercisable, no Common Stock shall be issued, no certificates for Common Stock shall be delivered, and no payment
shall be made under this Plan except in compliance with all applicable federal and state laws and regulations (including, without limitation,
withholding tax requirements), any listing agreement to which the Company is a party, and the rules of all domestic stock exchanges on
which the Company’s shares may be listed. The Company shall have the right to rely on an opinion of its counsel as to such compliance.
Any certificate issued to evidence Common Stock when a Stock Award is granted, a Performance Unit, Incentive Award or Other Equity-Based
Award is settled or for which an Option or SAR is exercised may bear such legends and statements as the Committee may deem advisable
to assure compliance with federal and state laws and regulations. No Option or SAR shall be exercisable, no Stock Award or Performance
Unit shall be granted, no Common Stock shall be issued, no certificate for Common Stock shall be delivered, and no payment shall be made
under this Plan until the Company has obtained such consent or approval as the Committee may deem advisable from regulatory bodies having
jurisdiction over such matters.

 

ARTICLE
XIV

GENERAL
PROVISIONS

 

14.01.
Effect on Employment and Service

 

Neither
the adoption of this Plan, its operation, nor any documents describing or referring to this Plan (or any part thereof), shall confer
upon any individual any right to continue in the employ or service of the Company or an Affiliate or in any way affect any right and
power of the Company or an Affiliate to terminate the employment or service of any individual at any time with or without assigning a
reason therefor.

 

14.02.
Unfunded Plan

 

This
Plan, insofar as it provides for grants, shall be unfunded, and the Company shall not be required to segregate any assets that may at
any time be represented by grants under this Plan. Any liability of the Company to any person with respect to any grant under this Plan
shall be based solely upon any contractual obligations that may be created pursuant to this Plan. No such obligation of the Company shall
be deemed to be secured by any pledge of, or other encumbrance on, any property of the Company.

 

14.03.
Rules of Construction

 

Headings
are given to the articles and sections of this Plan solely as a convenience to facilitate reference. The reference to any statute, regulation,
or other provision of law shall be construed to refer to any amendment to or successor of such provision of law.

 

14.04.
Section 409A Compliance

 

All
awards made under this Plan are intended to comply with, or otherwise be exempt from, Section 409A of the Code (“Section 409A”),
after giving effect to the exemptions in Treasury Regulation sections 1.409A-1(b)(3) through (b)(12). This Plan and all Agreements shall
be administered, interpreted and construed in a manner consistent with Section 409A. If any provision of this Plan or any Agreement is
found not to comply with, or otherwise not be exempt from, the provisions of Section 409A, it shall be modified and given effect, in
the sole discretion of the Committee and without requiring the Participant’s consent, in such manner as the Committee determines
to be necessary or appropriate to comply with, or effectuate an exemption from, Section 409A. Each payment under an award granted under
this Plan shall be treated as a separate identified payment for purposes of Section 409A.

 

    	14

     

    

 

If
a payment obligation under an award or an Agreement arises on account of the Participant’s termination of employment and such payment
obligation constitutes “deferred compensation” (as defined under Treasury Regulation section 1.409A-1(b)(1), after giving
effect to the exemptions in Treasury Regulation sections 1.409A-1(b)(3) through (b)(12)), it shall be payable only after the Participant’s
“separation from service” (as defined under Treasury Regulation section 1.409A-1(h)); provided, however, that if the Participant
is a “specified employee” (as defined under Treasury Regulation section 1.409A-1(i)), any such payment that is scheduled
to be paid within six months after such separation from service shall accrue without interest and shall be paid on the first day of the
seventh month beginning after the date of the Participant’s separation from service or, if earlier, within fifteen days after the
appointment of the personal representative or executor of the Participant’s estate following the Participant’s death.

 

14.05.
Withholding Taxes

 

Each
Participant shall be responsible for satisfying any income and employment tax withholding obligations attributable to participation in
the Plan. Unless otherwise provided by the Agreement, any such withholding tax obligations may be satisfied in cash (including from any
cash payable in settlement of an award of Performance Units, SARs, Incentive Awards or Other Equity-Based Award) or a cash equivalent
acceptable to the Committee. Any statutory federal, state, district or city withholding tax obligations also may be satisfied (a) by
surrendering to the Company shares of Common Stock previously acquired by the Participant; (b) by authorizing the Company to withhold
or reduce the number of shares of Common Stock otherwise issuable to the Participant upon the exercise of an Option or SAR, the settlement
of a Performance Unit award, Incentive Award or an Other Equity-Based Award (if applicable) or the grant or vesting of a Stock Award
up to the maximum individual income tax rate in the applicable jurisdiction; or (c) by any other method as may be approved by the Committee.
If Common Stock is used to pay all or part of such withholding tax obligation, the Fair Market Value of the shares surrendered, withheld
or reduced shall be determined as of the day the tax liability arises.

 

14.06.
Return of Awards; Repayment

 

Each
Stock Award, Option, SAR, Performance Unit award, Incentive Award and Other Equity-Based Award granted under the Plan, as amended and
restated herein, is subject to the condition that the Company may require that such award be returned and that any payment made with
respect to such award must be repaid if such action is required under the terms of any Company “clawback” policy as in effect
on the date that the payment was made, on the date the award was granted or, as applicable, the date the Option or SAR was exercised
or the date the Stock Award, Performance Unit award or Other Equity-Based Award is vested or earned.

 

14.07.
Governing Law

 

The
Plan shall be governed by and construed in accordance with the laws of the State of Maryland, without giving effect to principles of
conflicts of law of such state.

 

14.08.
Indemnification

 

Each
person who is or has been a member of the Committee or the Board will be indemnified and held harmless by the Company from and against
any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or as a result
of any claim, action, suit or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action
taken, or failure to act, under the Plan. Each such person will also be indemnified and held harmless by the Company from and against
any and all amounts paid by him or her in a settlement approved by the Company, or paid by him or her in satisfaction of any judgment,
of or in a claim, action, suit or proceeding against him or her and described in the previous sentence, so long as he or she gives the
Company an opportunity, at its own expense, to handle and defend the claim, action, suit or proceeding before he or she undertakes to
handle and defend it. The foregoing right of indemnification will not be exclusive of any other rights of indemnification to which a
person who is or has been a member of the Committee or the Board may be entitled under the Company’s Articles of Amendment and
Restatement, as a matter of law, or otherwise, or any power that the Company may have to indemnify him or her or hold him or her harmless.

 

    	15

     

    

 

ARTICLE
XV

CHANGE
IN CONTROL

 

15.01.
Impact of Change in Control.

 

Upon
a Change in Control, the Committee is authorized to cause (i) outstanding Options and SARs to become fully exercisable, (ii) outstanding
Stock Awards to become transferable and nonforfeitable and (iii) outstanding Performance Units, Incentive Awards and Other Equity-Based
Awards to become earned and nonforfeitable in their entirety.

 

15.02.
Assumption Upon Change in Control.

 

In
the event of a Change in Control, the Committee, in its discretion and without the need for a Participant’s consent, may provide
that an outstanding Option, SAR, Incentive Award, Stock Award, Performance Unit or Other Equity-Based Award shall be assumed by, or a
substitute award granted by, the surviving entity in the Change in Control. Such assumed or substituted award shall be of the same type
of award as the original Option, SAR, Incentive Award, Stock Award, Performance Unit or Other Equity-Based Award being assumed or substituted.
The assumed or substituted award shall have an intrinsic value, as of the Control Change Date, that is substantially equal to the intrinsic
value of the original award (or the difference between the Fair Market Value and the option price or Initial Value in the case of Options
and SARs) as the Committee determines is equitably required and such other terms and conditions as may be prescribed by the Committee.

 

15.03.
Cash-Out Upon Change in Control.

 

In
the event of a Change in Control, the Committee, in its discretion and without the need of a Participant’s consent, may provide
that each Option, SAR, Incentive Award, Stock Award and Performance Unit and Other Equity-Based Award shall be cancelled in exchange
for a payment. The payment may be in cash, Common Stock or other securities or consideration received by stockholders in the Change in
Control transaction. The amount of the payment shall be an amount that is substantially equal to (i) the amount by which the price per
share received by stockholders in the Change in Control exceeds the option price or Initial Value in the case of an Option and SAR, or
(ii) the price per share received by stockholders for each share of Common Stock subject to a Stock Award, Performance Unit or Other
Equity-Based Award, (iii) the value of the other securities or property in which the Performance Unit or Other Equity-Based award is
denominated or (iv) the amount payable under an Incentive Award on account of meeting employment or service requirements or meeting performance
objectives (including, without limitation, Performance Goals). If the option price or Initial Value exceeds the price per share received
by stockholders in the Change in Control transaction, the Option or SAR may be cancelled under this Section 15.03 without any payment
to the Participant.

 

15.04.
Limitation of Benefits

 

The
benefits that a Participant may be entitled to receive under this Plan and other benefits that a Participant is entitled to receive under
other plans, agreements and arrangements (which, together with the benefits provided under this Plan, are referred to as “Payments”),
may constitute Parachute Payments that are subject to Sections 280G and 4999 of the Code. As provided in this Section 15.04, the Parachute
Payments will be reduced if, and only to the extent that, a reduction will allow a Participant to receive a greater Net After Tax Amount
than a Participant would receive absent a reduction.

 

The
Accounting Firm will first determine the amount of any Parachute Payments that are payable to a Participant. The Accounting Firm also
will determine the Net After Tax Amount attributable to the Participant’s total Parachute Payments.

 

The
Accounting Firm will next determine the largest amount of Payments that may be made to the Participant without subjecting the Participant
to tax under Section 4999 of the Code (the “Capped Payments”). Thereafter, the Accounting Firm will determine the Net After
Tax Amount attributable to the Capped Payments.

 

    	16

     

    

 

The
Participant will receive the total Parachute Payments or the Capped Payments, whichever provides the Participant with the higher Net
After Tax Amount. If the Participant will receive the Capped Payments, the total Parachute Payments will be reduced until the value of
the remaining Parachute Payments for purposes of Section 280G of the Code equals the Capped Payments. The reduction shall be effected
by the Committee by first reducing the amount of any benefits under this Plan or any other plan, agreement or arrangement that are not
subject to Section 409A of the Code (by reducing such benefits in the order that maximizes the reduction in value of the Parachute Payments
under Section 280G of the Code) and then by the Committee reducing the amount of any benefits under this Plan or any other plan, agreement
or arrangement that are subject to Section 409A of the Code (by reducing such benefits in the order that maximizes the reduction in the
value of the Parachute Payments under Section 280G of the Code). The Accounting Firm will notify the Participant and the Company if it
determines that the Parachute Payments must be reduced to the Capped Payments and will send the Participant and the Company a copy of
its detailed calculations supporting that determination.

 

As
a result of the uncertainty in the application of Sections 280G and 4999 of the Code at the time that the Accounting Firm makes its determinations
under this Article XV, it is possible that amounts will have been paid or distributed to the Participant that should not have been paid
or distributed under this Section 15.04 (“Overpayments”), or that additional amounts should be paid or distributed to the
Participant under this Section 15.04 (“Underpayments”). If the Accounting Firm determines, based on either the assertion
of a deficiency by the Internal Revenue Service against the Company or the Participant, which assertion the Accounting Firm believes
has a high probability of success or controlling precedent or substantial authority, that an Overpayment has been made, the Participant
must repay to the Company, without interest; provided, however, that no amount will be payable by the Participant to the Company unless,
and then only to the extent that, the repayment would either reduce the amount on which the Participant is subject to tax under Section
4999 of the Code or generate a refund of tax imposed under Section 4999 of the Code. If the Accounting Firm determines, based upon controlling
precedent or substantial authority, that an Underpayment has occurred, the Accounting Firm will notify the Participant and the Company
of that determination and the amount of that Underpayment will be paid to the Participant promptly by the Company.

 

For
purposes of this Section 15.04, the term “Accounting Firm” means the independent accounting firm engaged by the Company immediately
before the Control Change Date. For purposes of this Section 15.04, the term “Net After Tax Amount” means the amount of any
Parachute Payments or Capped Payments, as applicable, net of taxes imposed under Sections 1, 3101(b) and 4999 of the Code and any State
or local income taxes applicable to the Participant on the date of payment. The determination of the Net After Tax Amount shall be made
using the highest combined effective rate imposed by the foregoing taxes on income of the same character as the Parachute Payments or
Capped Payments, as applicable, in effect on the date of payment. For purposes of this Section 15.04, the term “Parachute Payment”
means a payment that is described in Section 280G(b)(2) of the Code, determined in accordance with Section 280G of the Code and the regulations
promulgated or proposed thereunder.

 

Notwithstanding
any other provision of this Section 15.04, a Participant’s Parachute Payments cannot exceed the Capped Amount if the Participant,
pursuant to an agreement with the Company or the terms of another plan maintained by the Company, is not entitled to receive or retain
Parachute Payments that exceed the Capped Amount.

 

ARTICLE
XVI

AMENDMENT

 

The
Board may amend or terminate this Plan at any time; provided, however, that no amendment may adversely impair the rights of a Participant
with respect to outstanding awards without the Participant’s consent. In addition, an amendment will be contingent on approval
of the Company’s stockholders if such approval is required by law or the rules of any exchange on which the Common Shares are listed
or if the amendment would materially increase the benefits accruing to Participants under the Plan, materially increase the aggregate
number of shares of Common Stock that may be issued under the Plan or materially modify the requirements as to eligibility for participation
in the Plan.

 

ARTICLE
XVII

DURATION
OF PLAN

 

No
Stock Award, Performance Unit Award, Incentive Award, Option, SAR or Other Equity-Based Award may be granted under this Plan after the
day before the tenth anniversary of the date the Board adopted this Plan. Stock Awards, Performance Unit awards, Incentive Awards, Options,
SARs and Other Equity-Based Awards granted before such date shall remain valid in accordance with their terms.

 

ARTICLE
XVIII

EFFECTIVE DATE OF PLAN

 

Options,
Stock Awards, Performance Units, Incentive Awards and Other Equity-Based Awards may be granted under this Plan on and after the date
that the Plan is adopted by the Board, provided that, this Plan shall not be effective unless it is approved by a majority of the votes
cast by the stockholders of the Company, voting either in person or by proxy, at a duly held meeting of the stockholders of the Company
within twelve months of the Plan’s adoption by the Board.

 

    	17Exhibit
10.1

 

FORM OF INVESTMENT
MANAGEMENT TRUST AGREEMENT

 

This Investment Management
Trust Agreement (this “Agreement”) is made effective as of                [●], 2022, by and between Denali
Capital Acquisition Corp., a Cayman corporation (the “Company”), and Wilmington Trust, National Association,
a national banking association (the “Trustee”).

 

WHEREAS, the Company’s
registration statement on Form S-1, File No. 333-263123 (the “Registration Statement”) for the initial
public offering of the Company’s units (the “Units”), each of which consists of one share of the
Company’s Class A ordinary shares, par value $0.0001 per share (the “Ordinary Shares”), and one
warrant, each whole warrant entitling the holder thereof to purchase one Ordinary Share (such initial public offering hereinafter
referred to as the “Offering”), has been declared effective as of the date hereof by the U.S. Securities
and Exchange Commission (the “SEC”), and the Company has entered into an Underwriting Agreement (the
“Underwriting Agreement”) with US Tiger Securities, Inc. and EF Hutton, division of Benchmark Investment
LLC as representatives (together, the “Representatives”) of the
several underwriters, including Drexel Hamilton, LLC, a qualified independent
underwriter, (the “Underwriters”) named therein; and

 

WHEREAS, as described in
the Registration Statement, $76,500,000 of the gross proceeds of the Offering and sale of the Placement Units (as defined in the
Underwriting Agreement) (or $87,975,000 if the Underwriters’ over-allotment option is exercised in full) will be delivered
to the Trustee to be deposited and held in a segregated trust account located at all times in the United States (the “Trust
Account”) for the benefit of the Company and the holders of the Ordinary Shares included in the Units issued in the
Offering as hereinafter provided (the amount to be delivered to the Trustee (and any interest subsequently earned thereon) is referred
to herein as the “Property,” the shareholders for whose benefit the Trustee shall hold the Property will
be referred to as the “Public Shareholders,” and the Public Shareholders and the Company will be referred
to together as the “Beneficiaries”); and

 

WHEREAS, pursuant to the
Underwriting Agreement, a portion of the Property equal to $2,625,000, or $3,018,750 if the Underwriters’ over-allotment
option is exercised in full, is attributable to deferred underwriting discounts and commissions that will be payable by the Company
to the Underwriters upon the consummation of the Business Combination (as defined below) (the “Deferred Discount”);
and

 

WHEREAS, the Company and
the Trustee desire to enter into this Agreement to set forth the terms and conditions pursuant to which the Trustee shall hold
the Property.

 

NOW THEREFORE, IT IS AGREED:

 

1.        
   Agreements and Covenants of Trustee.
The Trustee hereby agrees and covenants to:

 

(a)          Hold
the Property in trust for the Beneficiaries in accordance with the terms of this Agreement in the Trust Account established by
the Trustee in the United States at Wilmington Trust, National Association.

 

    	 		 

     

    

 

(b)         Manage,
supervise and administer the Trust Account subject to the terms and conditions set forth herein;

 

(c)          In
a timely manner, upon the written instruction of the Company, invest and reinvest the Property in United States government securities
within the meaning of Section 2(a)(16) of the Investment Company Act of 1940, as amended, having a maturity of 185 days or less,
or in money market funds meeting the conditions of paragraphs (d)(1), (d)(2), (d)(3) and (d)(4) of Rule 2a-7 promulgated under
the Investment Company Act of 1940, as amended (or any successor rule), which invest only in direct U.S. government treasury obligations,
as determined by the Company; it being understood that the Trust Account will earn no interest while account funds are uninvested
awaiting the Company’s instructions hereunder;

 

(d)          Collect
and receive, when due, all principal, interest or other income arising from the Property, which shall become part of the “Property,”
as such term is used herein;

 

(e)          Promptly
notify the Company and the Representatives of all communications received by the Trustee with respect to any Property requiring
action by the Company;

 

(f)           Supply any necessary information or documents as may be requested by the Company (or its authorized agents) in connection with
the Company’s preparation of tax returns relating to assets held in the Trust Account or in connection with the preparation
or completion of the audit of the Company’s financial statements by the Company’s auditors;

 

(g)          Participate in any plan or proceeding for protecting or enforcing any right or interest arising from the Property if, as and when
instructed by the Company to do so;

 

(h)          Render to the Company monthly written statements of the activities of, and amounts in, the Trust Account reflecting all receipts
and disbursements of the Trust Account;

 

(i)           Commence
liquidation of the Trust Account only after and within two business days following (x) receipt of, and only in accordance
with the terms of, a letter from the Company (“Termination Letter”) in a form substantially similar to
that attached hereto as either Exhibit A or Exhibit B, as applicable, signed on behalf of the Company by an Authorized
Representative (as such term is defined below), and complete the liquidation of the Trust Account and distribute the Property in
the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to the Company
to pay any taxes (net of any taxes payable and less up to $100,000 of interest that may be released to the Company to pay dissolution
expenses), only as directed in the Termination Letter and other documents referred to therein, or (y) upon the date which
is the later of (1) 24 months after the closing of the Offering and (2) such later date as may be approved by the Company’s
shareholders in accordance with the Company’s amended and restated certificate of incorporation, if a Termination Letter
has not been received by the Trustee prior to such date, in which case the Trust Account shall be liquidated in accordance with
the procedures set forth in the Termination Letter attached as Exhibit B and the Property in the Trust Account, including
interest earned on the funds held in the Trust Account and not previously released to the Company to pay any taxes (net of any
taxes payable and less up to $100,000 of interest that may be released to the Company to pay dissolution expenses) shall be distributed
to the Public Shareholders of record as of such date; provided, however, that in the event the Trustee receives a Termination
Letter in a form substantially similar to Exhibit B hereto, or if the Trustee begins to liquidate the Property because it
has received no such Termination Letter by the date specified in clause (y) of this Section 1(i), the Trustee shall
keep the Trust Account open until twelve (12) months following the date the Property has been distributed to the Public Shareholders;

 

    	 	2	 

     

    

 

(j)           Upon
written request from the Company, which may be given from time to time in a form substantially similar to that attached hereto
as Exhibit C (a “Tax Payment Withdrawal Instruction”), withdraw from the Trust Account and distribute
to the Company the amount of interest earned on the Property requested by the Company to cover any tax obligation owed by the Company
as a result of assets of the Company or interest or other income earned on the Property, which amount shall be delivered directly
to the Company by electronic funds transfer or other method of prompt payment, and the Company shall forward such payment to the
relevant taxing authority, as applicable; provided, however, that to the extent there is not sufficient cash in the
Trust Account to pay such tax obligation, the Trustee shall liquidate such assets held in the Trust Account as shall be designated
by the Company in writing to make such distribution so long as there is no reduction in the principal amount initially deposited
in the Trust Account; provided, further, however that if the tax to be paid is a franchise tax, the written request
by the Company to make such distribution shall be accompanied by a copy of the franchise tax bill from the State of Delaware for
the Company and a written statement from the principal financial officer of the Company setting forth the actual amount payable
(it being acknowledged and agreed that any such amount in excess of interest income earned on the Property shall not be payable
from the Trust Account). The written request of the Company referenced above shall constitute presumptive evidence that the Company
is entitled to said funds, and the Trustee shall have no responsibility to look beyond said request;

 

(k)          Upon
written request from the Company, which may be given from time to time in a form substantially similar to that attached hereto
as Exhibit D (a “Shareholder Redemption Withdrawal Instruction”), the Trustee shall distribute
to the Company the amount requested by the Company to be used to redeem shares of Common Share from Public Shareholders properly
submitted in connection with a shareholder vote to approve an amendment to the Company’s amended and restated certificate
of incorporation to modify the substance or timing of the Company’s obligation to redeem 100% of its public Common Share
if the Company has not consummated an initial Business Combination within such time as is described in the Company’s amended
and restated certificate of incorporation. The written request of the Company referenced above shall constitute presumptive evidence
that the Company is entitled to distribute said funds, and the Trustee shall have no responsibility to look beyond said request;

 

(l)          
Only release the Property in accordance with a written instruction, signed by an Authorized Representative (as such term is defined
below) of the Company substantially in the form attached as Exhibit A, B, C or D, as applicable, attached
hereto (each, a “Written Direction” and collectively, the “Written Direction”);
and

 

(m)          Not
make any withdrawals or distributions from the Trust Account other than pursuant to Section 1(i), (j) or (k) above.

 

    	 	3	 

     

    

 

2.            Agreements
and Covenants of the Company. The Company hereby agrees and covenants to:

 

(a)          Give
all instructions to the Trustee hereunder in writing, signed by an Authorized Representative (as such term is defined below) of
the Company. In addition, except with respect to its duties under Sections 1(i), 1(j) or 1(k) hereof, the
Trustee shall be entitled to rely on, and shall be protected in relying on, any verbal or telephonic advice or instruction which
it, in good faith and with reasonable care, believes to be given by any one of the persons authorized above to give written instructions,
provided that the Company shall promptly confirm such instructions in writing;

 

(b)          Subject
to Section 4 hereof, hold the Trustee harmless and indemnify the Trustee from and against any and all out-of-pocket expenses, including
reasonable outside counsel fees and disbursements, or losses suffered by the Trustee in connection with any action taken by it
hereunder and in connection with any action, suit or other proceeding brought against the Trustee involving any claim, or in connection
with any claim or demand, which in any way arises out of or relates to this Agreement, the services of the Trustee hereunder, or
the Property or any interest earned on the Property, except for expenses and losses resulting from the Trustee’s gross negligence
or willful misconduct. Promptly after the receipt by the Trustee of notice of demand or claim or the commencement of any action,
suit or proceeding, pursuant to which the Trustee intends to seek indemnification under this Section 2(b), it shall notify
the Company in writing of such claim (hereinafter referred to as the “Indemnified Claim”), provided,
that no failure or delay by the Trustee to so notify the Company shall relieve the Company from its obligations under this Agreement,
except as and to the extent it is found, in a final, unappealable judgment by a court of competent jurisdiction, that such failure
or delay actually and materially prejudiced the Company. The Trustee shall have the right to conduct and manage the defense against
such Indemnified Claim; provided that the Trustee shall obtain the consent of the Company with respect to the selection of counsel,
which consent shall not be unreasonably withheld or delayed. The Trustee may not agree to settle any Indemnified Claim without
the prior written consent of the Company, which such consent shall not be unreasonably withheld or delayed. The Company may participate
in such action with its own counsel and at its sole cost and expense;

 

(c)          
Pay the Trustee the fees set forth on Schedule A hereto, including an initial acceptance fee, annual administration fee
and transaction processing fee, which fees shall be subject to modification by the parties from time to time. It is expressly understood
that the Property shall not be used to pay such fees unless and until it is distributed to the Company pursuant to Sections
1(i) through 1(k) hereof. The Company shall pay the Trustee the initial acceptance fee and the first annual administration
fee at the consummation of the Offering. The Company shall not be responsible for any other fees or charges of the Trustee except
as set forth in this Section 2(c), Schedule A and as may be provided in Section 2(b) hereof;

 

(d)          
In connection with any vote of the Company’s shareholders regarding any merger, share exchange, asset acquisition, share
purchase, reorganization or other similar business combination involving the Company and one or more businesses (a “Business
Combination”), provide to the Trustee an affidavit or certificate of the inspector of elections for the shareholder
meeting verifying the vote of such shareholders regarding such Business Combination;

 

    	 	4	 

     

    

 

(e)          
Provide the Representatives with a copy of any Termination Letter(s) and/or any other correspondence that is sent to the Trustee
with respect to any proposed withdrawal from the Trust Account promptly after it issues the same;

 

(f)          
  Expressly provide in any Instruction Letter (as defined in Exhibit A) delivered in connection with a Termination Letter in the
Form of Exhibit A that the Deferred Discount be paid directly to the account or accounts directed by the Representatives;

 

(g)          
 Instruct the Trustee to make only those distributions that are permitted under this Agreement, and refrain from instructing the
Trustee to make any distributions that are not permitted under this Agreement;

 

(h)          
 Designate, on an incumbency certificate delivered to Trustee on the date hereof (the “Incumbency Certificate”),
its authorized representatives for purposes of this Agreement (each such individual, an “Authorized Representative”
of the Company), which shall certify that the title, contact information and specimen signature of each such Authorized Representative
as set forth therein is true and correct; and

 

(i)              Amend,
at any time, the Incumbency Certificate by signing and submitting to the Trustee an amended Incumbency Certificate, which shall
be effective upon receipt by the Trustee of such amendment.

 

3.            Limitations
of Liability. The Trustee shall have no responsibility or liability to:

 

(a)              Imply
obligations, perform duties, inquire or otherwise be subject to the provisions of any agreement or document other than this Agreement
and that which is expressly set forth herein;

 

(b)              Take
any action with respect to the Property, other than as directed in Section 1 hereof, and the Trustee shall have no liability to
any third party except for liability arising out of the Trustee’s gross negligence, fraud or willful misconduct;

 

(c)              Institute
any proceeding for the collection of any principal and income arising from, or institute, appear in or defend any proceeding of
any kind with respect to, any of the Property unless and until it shall have received instructions from the Company given as provided
herein to do so and the Company shall have advanced or guaranteed to it funds sufficient to pay any expenses incident thereto;

 

(d)              Refund
any depreciation in principal of any Property;

 

(e)              Assume
that the authority of any person designated by the Company to give instructions hereunder shall not be continuing unless provided
otherwise in such designation, or unless the Company shall have delivered a written revocation of such authority to the Trustee;

 

(f)              The
other parties hereto or to anyone else for any action taken or omitted by it, or any action suffered by it to be taken or omitted,
in good faith and in the Trustee’s best judgment, except for the Trustee’s gross negligence, fraud or willful misconduct.
The Trustee may rely conclusively and shall be protected in acting upon any Written Direction, order, notice, demand, certificate,
opinion or advice of counsel (including counsel chosen by the Trustee, which counsel may be the Company’s counsel), statement,
instrument, report or other paper or document (not only as to its due execution and the validity and effectiveness of its provisions,
but also as to the truth and acceptability of any information therein contained) which the Trustee believes, in good faith and
with reasonable care, to be genuine and to be signed or presented by the proper person or persons. The Trustee shall be deemed
to be acting with reasonable care with respect to any Written Direction if it takes such action in conformity with its standard
procedures for confirming instructions for wires applicable to the Company. The Trustee shall not be bound by any notice or demand,
or any waiver, modification, termination or rescission of this Agreement or any of the terms hereof, unless evidenced by a written
instrument delivered to the Trustee, signed by the proper party or parties and, if the duties or rights of the Trustee are affected,
unless it shall give its prior written consent thereto;

 

    	 	5	 

     

    

 

(g)              Verify
the accuracy of the information contained in the Registration Statement or any other filings made by the Company with the SEC;

 

(h)              Provide
any assurance that any Business Combination entered into by the Company or any other action taken by the Company is as contemplated
by the Registration Statement;

 

(i)              File
information returns with respect to the Trust Account with any local, state or federal taxing authority or provide periodic written
statements to the Company documenting the taxes payable by the Company, if any, relating to any interest income earned on the Property;

 

(j)              Prepare,
execute and file tax reports, income or other tax returns and pay any taxes with respect to any income generated by, and activities
relating to, the Trust Account, regardless of whether such tax is payable by the Trust Account or the Company, including, but not
limited to, income tax obligations, except pursuant to Section 1(j) hereof; or

 

(k)              Verify
calculations, qualify or otherwise approve the Company’s written requests for distributions pursuant to Sections 1(i),
1(j) or 1(k) hereof.

 

The Company also agrees
that the Trustee will only be responsible for direct damages, and not for any type of indirect, special, consequential, or punitive
damages, even if the Trustee is aware of the potential for such damages.

 

4.              Trust
Account Waiver. The Trustee has no right of set-off or any right, title, interest or claim of any kind (“Claim”)
to, or to any monies in, the Trust Account, and hereby irrevocably waives any Claim to, or to any monies in, the Trust Account
that it may have now or in the future. In the event the Trustee has any Claim against the Company under this Agreement, including,
without limitation, under Section 2(b) or Section 2(c) hereof, the Trustee shall pursue such Claim solely against
the Company and its assets outside the Trust Account and not against the Property or any monies in the Trust Account.

 

5.            Termination.
This Agreement shall terminate as follows:

 

    	 	6	 

     

    

 

(a)              If
the Trustee gives written notice to the Company that it desires to resign under this Agreement, the Company shall use its reasonable
efforts to locate a successor trustee, pending which the Trustee shall continue to act in accordance with this Agreement. At such
time that the Company notifies the Trustee that a successor trustee has been appointed and has agreed to become subject to the
terms of this Agreement (whether following the Trustee giving notice that it desires to resign under this Agreement or the Company
otherwise electing to replace the Trustee under this Agreement), the Trustee shall transfer the management of the Trust Account
to the successor trustee, including but not limited to the transfer of copies of the reports and statements relating to the Trust
Account, whereupon this Agreement shall terminate; provided, however, that in the event that the Company does not
locate a successor trustee within ninety (90) days of receipt of the resignation notice from the Trustee, the Trustee may submit
an application to have the Property deposited with any court in the State of New York or with the United States District Court
for the Southern District of New York and upon such deposit, the Trustee shall be immune from any liability whatsoever; or

 

(b)              At
such time that the Trustee has completed the liquidation of the Trust Account and its obligations in accordance with the provisions
of Section 1(i) hereof and distributed the Property in accordance with the provisions of the Termination Letter, this Agreement
shall terminate except with respect to Section 2(b).

 

(c)              If
the Offering is not consummated within ten (10) business days of the date of this Agreement, in which case any funds received by
the Trustee from the Company or Denali Capital Global Investments LLC, as applicable, shall be returned promptly following the
receipt by the Trustee of written instructions from the Company.

 

6.            Miscellaneous.

 

(a)              The
Company and the Trustee each acknowledge that the Trustee will follow the security procedures set forth herein with respect to
funds transferred from the Trust Account. The Company and the Trustee will each restrict access to confidential information relating
to such security procedures to authorized persons. Each party must notify the other party immediately if it has reason to believe
unauthorized persons may have obtained access to such confidential information, or of any change in its authorized personnel. In
executing funds transfers, the Trustee shall rely upon all information supplied to it by the Company, including, account names,
account numbers, and all other identifying information relating to a Beneficiary, Beneficiary’s bank or intermediary bank.
Except for any liability arising out of the Trustee’s gross negligence, fraud or willful misconduct, the Trustee shall not
be liable for any loss, liability or out-of-pocket expense resulting from any error in the information or transmission of the funds.

 

(b)              This
Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York. This Agreement
may be executed in several original or facsimile counterparts, each one of which shall constitute an original, and together shall
constitute but one instrument.

 

(c)              This
Agreement contains the entire agreement and understanding of the parties hereto with respect to the subject matter hereof. Except
for Section 1(i) through (m) (which sections may not be modified, amended or deleted without the affirmative vote of sixty-five
percent (65%) of the then outstanding shares of Ordinary Shares and Class B ordinary shares, par value $0.0001 per share, of the
Company voting together as a single class; provided that no such amendment will affect any shareholder of the Company who has validly
elected to redeem his, her or its Ordinary Shares in connection with a shareholder vote sought to amend this Agreement), this Agreement
or any provision hereof may only be changed, amended or modified (other than to correct a typographical error) by a writing signed
by each of the parties hereto.

 

    	 	7	 

     

    

 

(d)              The
parties hereto consent to the jurisdiction and venue of any state or federal court located in the City of New York, State of New
York, for purposes of resolving any disputes hereunder. AS TO ANY CLAIM, CROSS-CLAIM OR COUNTERCLAIM IN ANY WAY RELATING TO
THIS AGREEMENT, EACH PARTY WAIVES THE RIGHT TO TRIAL BY JURY.

 

(e)              Any
notice, consent or request to be given in connection with any of the terms or provisions of this Agreement shall be in writing
and shall be sent by express mail or similar private courier service, by certified mail (return receipt requested), by hand delivery,
by facsimile transmission or by email:

 

if to the Trustee, to:

 

Wilmington Trust, National
Association

1100 North Market Street

Rodney Square North

Wilmington, DE 19890

Attn: Corporate Trust
Administration

FAX (302) 636-4149

dyoung@wilmingtontrust.com

 

if to the Company, to:

 

Lei Huang

Denali Capital Acquisition
Corp.

437 Madison Avenue,
27th Floor

New York, New York
10022

 

in each case, with copies
to:

 

Sidley Austin LLP

787 Seventh Avenue

New York, New York
10019

Attn: David Ni

Email: dni@sidley.com

 

and

 

US Tiger Securities,
Inc.

437 Madison Avenue,
27th Floor

New York, NY 10022

 

and

 

EF Hutton, division
of Benchmark Investment LLC

590 Madison Avenue, 39th Floor

New York,
New York 10022

Attn: Joseph
T. Rallo, Chief Executive Officer

Email: jrallo@efhuttongroup.com

 

and

 

Drexel Hamilton,
LLC

77 Water Street,
Suite 201

New York, New
York 10005

Attn: Mike Sasso

Email: msasso@drexelhamilton.com

 

and

 

Winston & Strawn
LLP

800 Capitol Street,
Suite 2400

Houston, TX 77002

Attn: Michael J. Blankenship

Email: MBlankenship@winston.com

 

    	 	8	 

     

    

 

(f)              This
Agreement may not be assigned by the Trustee without the prior consent of the Company.

 

(g)              Each
of the Company and the Trustee hereby represents that it has the full right and power and has been duly authorized to enter into
this Agreement and to perform its respective obligations as contemplated hereunder. The Trustee acknowledges and agrees that it
shall not make any claims or proceed against the Trust Account, including by way of set-off, and shall not be entitled to any funds
in the Trust Account under any circumstance.

 

(h)              Each
of the Company and the Trustee hereby acknowledges and agrees that the Representatives, on behalf of the Underwriters, are third
party beneficiaries of this Agreement.

 

(i)              Except
as specified herein, no party to this Agreement may assign its rights or delegate its obligations hereunder to any other person
or entity.

 

(j)              In
the event that any Property shall be attached, garnished or levied upon by any court order, or the delivery thereof shall be stayed
or enjoined by an order of a court, or any order, judgment or decree shall be made or entered by any court order affecting the
Property, the Trustee is hereby expressly authorized, in its reasonable discretion, to comply with all writs, orders or decrees
so entered or issued, or which it is advised by legal counsel of its own choosing is binding upon it. In the event that the Trustee
obeys or complies with any such writ, order or decree it shall not be liable to any of the Parties or to any other person, firm
or corporation, should, by reason of such compliance notwithstanding, such writ, order or decree be subsequently reversed, modified,
annulled, set aside or vacated.

 

(k)              The
Trustee shall not be responsible or liable for any failure or delay in the performance of its obligation under this Agreement arising
out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including, without limitation, acts of
God; earthquakes; fire; flood; wars; acts of terrorism; civil or military disturbances; sabotage; epidemic; riots; interruptions,
loss or malfunctions of utilities, computer (hardware or software) or communications services; accidents; labor disputes; acts
of civil or military authority or governmental action (any such event, a “Force Majeure Event”). Notwithstanding
anything to the contrary in this Agreement, for purposes of all services provided pursuant to this Agreement (the “Services”),
Trustee shall continuously maintain business continuity and disaster recovery plans (including regular updates) that are consistent
with then-current industry standards applicable to similarly situated providers of services comparable to the Services. Without
limiting the generality of the foregoing, the business continuity and/or disaster recovery plans will cover the computer software,
computer hardware, telecommunications capabilities and other similar or related items of automated, computerized, software system(s)
and network(s) or system(s) and will be designed, among other things, to permit the ongoing operation and functionality of the
Services on a continuous basis and/or to facilitate the continuation and/or resumption of, the Services. In the event of disruption
in the Services for any reason including the occurrence of a Force Majeure Event that causes Trustee to be required to allocate
limited resources between or among Trustee’s affected customers, Trustee shall not do so in a manner that is intended to
treat the Company less favorably than other similarly situated affected customers generally. In addition, in the event Trustee
has knowledge that there is, or has been, an incident affecting the integrity or availability of Trustee’s business continuity
and disaster recovery system (the “System”), Trustee shall endeavor to notify the Company in writing,
as promptly as practicable, of the incident.

 

    	 	9	 

     

    

 

(l)              The
Trustee shall be entitled to consult with legal counsel in the event that a question or dispute arises with regard to the construction
of any of the provisions hereof, and shall incur no liability and shall be fully protected in acting in accordance with the advice
or opinion of such counsel.

 

[Signature Page Follows]

 

    	 	10	 

     

    

 

IN WITNESS WHEREOF,
the parties have duly executed this Investment Management Trust Agreement as of the date first written above.

 

	 	COMPANY: Denali Capital Acquisition Corp.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	TRUSTEE:
	 	 	 
	 	Wilmington Trust, National Association,
	 	as Trustee
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Investment Management
Trust Agreement]

 

    	 		 

     

    

 

SCHEDULE A

 

 

 

Schedule
A 

Denali Capital
Acquisition Corp

Trust Services

 

Acceptance Fee:

 

Waived

 

Initial Fees as they relate to Wilmington Trust acting in the capacity
of Trustee and includes review of the Investment Management/Trustee Agreement; acceptance of the Trustee appointment; setting up
of the Trust Account(s) and associated records; and coordination of receipt of funds, if any, for deposit to the Trust Account(s).
Acceptance Fee payable at time of Trust Agreement execution 

 

Trustee - Administration Fee

 

$7,500 per annum

 

For review and execution of SPAC trust agreement, including KYC
review and onboarding; reporting; investment management of SPAC proceeds; dissolution of SPAC trust and distribution of proceeds
to transfer agent and/or investors; and other ongoing administrative services as required.

 

	Out-of-Pocket Expenses:	If any, Billed At Cost

 

Confidential

 

    	 		 

     

    

 

EXHIBIT A

 

[Letterhead of Company]

 

[Insert date]

 

Wilmington Trust, National Association

1100 North Market Street

Rodney Square North

Wilmington, DE 19890

 

Re:              Trust
Account No. Termination Letter

 

Ladies and Gentlemen:

 

Pursuant to Section 1(i)
of the Investment Management Trust Agreement between Denali Capital Acquisition Corp. (the “Company”)
and Wilmington Trust, National Association (the “Trustee”), dated as of ___, 2022 (the “Trust
Agreement”), this is to advise you that the Company has entered into an agreement with___________________ (the “Target
Business”) to consummate a business combination with Target Business (the “Business Combination”)
on or about [insert date]. The Company shall notify you at least forty-eight (48) hours in advance of the actual date (or such
shorter time period as you may agree) of the consummation of the Business Combination (the “Consummation Date”).
Capitalized terms used but not defined herein shall have the meanings set forth in the Trust Agreement.

 

In accordance with the
terms of the Trust Agreement, we hereby authorize you to commence to liquidate all of the assets of the Trust Account on [insert
date], and to transfer proceeds to the account of the paying agent specified by the Company to the effect that, on the Consummation
Date, all of the funds held in the Trust Account will be immediately available for transfer to the account or accounts that US
Tiger Securities, Inc. and EF Hutton, division of Benchmark Investment LLC (together, the “Representatives”)
(with respect to the Deferred Discount) and the Company shall direct on the Consummation Date. It is acknowledged and agreed that
while the funds are on deposit in the trust account at [●] awaiting distribution, neither the Company nor the Representatives
will earn any interest or dividends.

 

On the Consummation Date
(i) counsel for the Company shall deliver to you written notification that the Business Combination has been consummated,
or will be consummated substantially, concurrently with your transfer of funds to the accounts as directed by the Company (the
“Notification”) and (ii) the Company shall deliver to you (a) [an affidavit] [a certificate]
of the Chief Executive Officer of the Company, which verifies that the Business Combination has been approved by a vote of the
Company’s shareholders, if a vote is held, and (b) joint written instruction signed by the Company and the Representatives
with respect to the transfer of the funds held in the Trust Account, including payment of the Deferred Discount from the Trust
Account (the “Instruction Letter”). You are hereby directed and authorized to transfer the funds held
in the Trust Account immediately upon your receipt of the Notification and the Instruction Letter, in accordance with the terms
of the Instruction Letter. In the event that certain deposits held in the Trust Account may not be liquidated by the Consummation
Date without penalty, you will notify the Company in writing of the same and the Company shall direct you as to whether such funds
should remain in the Trust Account and be distributed after the Consummation Date to the Company. Upon the distribution of all
the funds, net of any payments necessary for reasonable unreimbursed expenses related to liquidating the Trust Account, your obligations
under the Trust Agreement shall be terminated.

 

    	 		 

     

    

 

In the event that the Business
Combination is not consummated on the Consummation Date described in the notice thereof and we have not notified you on or before
the original Consummation Date of a new Consummation Date, then upon receipt by the Trustee of written instructions from the Company,
the funds held in the Trust Account shall be reinvested as provided in Section 1(c) of the Trust Agreement on the business day
immediately following the Consummation Date as set forth in the notice as soon thereafter as possible.

 

	 	Very truly yours,
	 	 	 
	 	Company	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

		cc:	US Tiger Securities, Inc.

EF Hutton, division of
Benchmark Investments, LLC

Drexel Hamilton, LLC

 

    	 		 

     

    

 

EXHIBIT B

 

[Letterhead of Company]

 

[Insert date]

 

Wilmington Trust, National Association

1100 North Market Street

Rodney Square North

Wilmington, DE 19890

 

Re:              Trust
Account No. Termination Letter

 

Ladies and Gentlemen:

 

Pursuant to Section 1(i)
of the Investment Management Trust Agreement between Denali Capital Acquisition Inc. (the “Company”)
and Wilmington Trust, National Association (the “Trustee”), dated as of [●], 2022 (the “Trust
Agreement”), this is to advise you that the Company has been unable to effect a business combination with a Target
Business (the “Business Combination”) within the time frame specified in the Company’s amended
and restated certificate of incorporation, as described in the Company’s Registration Statement relating to the Offering.
Capitalized terms used but not defined herein shall have the meanings set forth in the Trust Agreement.

 

In accordance with the
terms of the Trust Agreement, we hereby authorize you to liquidate all of the assets in the Trust Account on ___________ and to
await distribution to the Public Shareholders. The Company has selected [●] as the record date for the purpose of determining
the Public Shareholders entitled to receive their share of the liquidation proceeds. Upon the distribution of all the funds, your
obligations under the Trust Agreement shall be terminated, except to the extent otherwise provided in Section 1(i) of the Trust
Agreement.

 

	 	Very truly yours,
	 	 	 
	 	Company	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

		cc:	US Tiger Securities, Inc.

EF Hutton, division of
Benchmark Investments, LLC

Drexel Hamilton, LLC

 

    	 		 

     

    

 

EXHIBIT C

 

[Letterhead of Company]

 

[Insert date]

 

Wilmington Trust, National Association

1100 North Market Street

Rodney Square North

Wilmington, DE 19890

 

Re:              Trust
Account No. Tax Payment Withdrawal Instruction

 

Ladies and Gentlemen:

 

Pursuant to Section 1(j)
of the Investment Management Trust Agreement between Denali Capital Acquisition Corp. (the “Company”)
and Wilmington Trust, National Association (the “Trustee”), dated as of ___, 2022 (the “Trust
Agreement”), the Company hereby requests that you deliver to the Company $____________ of the interest income earned
on the Property as of the date hereof. Capitalized terms used but not defined herein shall have the meanings set forth in the Trust
Agreement.

 

The Company needs such
funds to pay for the tax obligations as set forth on the attached tax return or tax statement. In accordance with the terms of
the Trust Agreement, you are hereby directed and authorized to transfer (via wire transfer) such funds promptly upon your receipt
of this letter to the Company’s operating account at:

 

[WIRE INSTRUCTION
INFORMATION]

 

	 	Very truly yours,
	 	 	 
	 	Company	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

		cc:	US Tiger Securities, Inc.

EF Hutton, division of
Benchmark Investments, LLC

Drexel Hamilton, LLC

 

    	 		 

     

    

 

EXHIBIT D

 

[Letterhead of Company]

 

[Insert date]

 

Wilmington Trust, National Association

1100 North Market Street

Rodney Square North

Wilmington, DE 19890

 

Re:              Trust
Account No. Shareholder Redemption Withdrawal Instruction

 

Ladies and Gentlemen:

 

Pursuant to Section 1(k)
of the Investment Management Trust Agreement between Denali Capital Acquisition Corp. (the “Company”)
and Wilmington Trust, National Association (the “Trustee”), dated as of ___, 2022 (the “Trust
Agreement”), the Company hereby requests that you deliver to the Company $___________ of the principal and interest
income earned on the Property as of the date hereof. Capitalized terms used but not defined herein shall have the meanings set
forth in the Trust Agreement.

 

The Company needs such
funds to pay its Public Shareholders who have properly elected to have their Ordinary Shares redeemed by the Company in connection
with a shareholder vote to approve an amendment to the Company’s amended and restated certificate of incorporation to modify
the substance or timing of the Company’s obligation to redeem 100% of its public Ordinary Shares if the Company has not consummated
an initial Business Combination within such time as is described in the Company’s amended and restated certificate of incorporation.
As such, you are hereby directed and authorized to transfer (via wire transfer) such funds promptly upon your receipt of this letter
to the redeeming Public Shareholders in accordance with your customary procedures.

 

	 	Very truly yours,
	 	 	 
	 	Company	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

		cc:	US Tiger Securities, Inc.

EF Hutton, division of
Benchmark Investments, LLC

Drexel Hamilton, LLC

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