Document:

CNS RESPONSE, INC.

2012 OMNIBUS INCENTIVE COMPENSATION
PLAN

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	PAGE
	Article 1. Effective Date, Objectives and Duration	 	1
	1.1	Effective Date of the Plan	 	1
	1.2	Objectives of the Plan	 	1
	1.3	Duration of the Plan	 	1
	 	 	 	 
	Article 2. Definitions	 	1
	2.1	“Affiliate”	 	1
	2.2	“Award”	 	1
	2.3	“Award Agreement”	 	1
	2.4	“Board”	 	2
	2.5	“Bonus Shares”	 	2
	2.6	“CEO”	 	2
	2.7	“Code”	 	2
	2.8	“Committee” or “Incentive Plan Committee”	 	2
	2.9	“Compensation Committee”	 	2
	2.10	“Common Stock”	 	2
	2.11	“Covered Employee”	 	2
	2.12	“Deferred Stock”	 	2
	2.13	“Disability” or “Disabled”	 	2
	2.14	“Dividend Equivalent”	 	2
	2.15	“Eligible Person”	 	3
	2.16	“Exchange Act”	 	3
	2.17	“Exercise Price”	 	3
	2.18	“Fair Market Value”	 	3
	2.19	“Grant Date”	 	3
	2.20	“Grantee”	 	3
	2.21	“Incentive Stock Option”	 	3
	2.22	“Including” or “includes”	 	3
	2.23	“Management Committee”	 	3
	2.24	“Non-Employee Director”	 	3
	2.25	“Option”	 	3
	2.26	“Other Stock-Based Award”	 	3
	2.27	“Performance-Based Exception”	 	3
	2.28	“Performance Measures”	 	4
	2.29	“Performance Period”	 	4
	2.30	“Performance Share” and “Performance Unit”	 	4
	2.31	“Period of Restriction”	 	4
	2.32	“Person”	 	4
	2.33	“Restricted Shares”	 	4
	2.34	“Restricted Stock Units”	 	4
	2.35	“Rule 16b-3”	 	4
	2.36	“SEC”	 	4
	2.37	“Section 16 Non-Employee Director”	 	4
	2.38	“Section 16 Person”	 	4
	2.39	“Separation from Service”	 	4
	2.40	“Share”	 	4
	2.41	“Subsidiary Corporation”	 	5
	2.42	“Surviving Company”	 	5
	2.43	“Term”	 	5

 

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TABLE OF CONTENTS 

 

	 	 	 	PAGE
	2.44	“Termination of Affiliation”	 	5
	 	 	 	 
	Article 3. Administration	 	5
	3.1	Committee	 	5
	3.2	Powers of Committee	 	6
	3.3	No Repricings	 	7
	 	 	 	 
	Article 4. Shares Subject to the Plan, Maximum Awards, and 162(m) Compliance	 	8
	4.1	Number of Shares Available for Grants	 	8
	4.2	Adjustments in Authorized Shares and Awards;	 	 
	 	Liquidation, Dissolution or Change of Control	 	8
	4.3	Compliance with Section 162(m) of the Code	 	9
	4.4	Performance-Based Exception Under Section 162(m)	 	10
	 	 	 	 
	Article 5. Eligibility and General Conditions of Awards	 	11
	5.1	Eligibility	 	11
	5.2	Award Agreement	 	11
	5.3	General Terms and Termination of Affiliation	 	11
	5.4	Nontransferability of Awards	 	11
	5.5	Cancellation and Rescission of Awards	 	12
	5.6	Stand-Alone, Tandem and Substitute Awards	 	12
	5.7	Compliance with Rule 16b-3	 	12
	5.8	Deferral of Award Payouts	 	13
	 	 	 	 
	Article 6. Stock Options	 	13
	6.1	Grant of Options	 	13
	6.2	Award Agreement	 	13
	6.3	Option Exercise Price	 	13
	6.4	Grant of Incentive Stock Options	 	13
	6.5	Payment of Exercise Price	 	14
	 	 	 	 
	Article 7. Restricted Shares	 	15
	7.1	Grant of Restricted Shares	 	15
	7.2	Award Agreement	 	15
	7.3	Consideration for Restricted Shares	 	15
	7.4	Effect of Forfeiture	 	15
	7.5	Escrow; Legends	 	15
	 	 	 	 
	Article 8. Performance Units and Performance Shares	 	15
	8.1	Grant of Performance Units and Performance Shares	 	15
	8.2	Value/Performance Goals	 	16
	8.3	Earning of Performance Units and Performance Shares	 	16
	 	 	 	 
	Article 9. Deferred Stock and Restricted Stock Units	 	16
	9.1	Grant of Deferred Stock and Restricted Stock Units	 	16
	9.2	Vesting and Delivery	 	17
	 	 	 	 
	Article 10. Dividend Equivalents	 	17
	 	 	 	 
	Article 11. Bonus Shares	 	17
	 	 	 	 
	Article 12. Other Stock-Based Awards	 	17
	 	 	 	 
	Article 13. Non-Employee Director Awards	 	17

 

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TABLE OF CONTENTS 

 

	 	 	PAGE
	Article 14. Amendment, Modification, and Termination	 	18
	14.1	Amendment, Modification, and Termination	 	18
	14.2	Awards Previously Granted	 	18
	 	 	 	 
	Article 15. Compliance with Code Section 409A	 	18
	15.1	Awards Subject to Code Section 409A	 	18
	15.2	Deferral and/or Distribution Elections	 	18
	15.3	Subsequent Elections	 	18
	15.4	Distributions Pursuant to Deferral Elections	 	19
	15.5	Six Month Delay	 	19
	15.6	Death or Disability	 	19
	15.7	No Acceleration of Distributions	 	19
	 	 	 	 
	Article 16. Withholding	 	19
	16.1	Required Withholding	 	19
	16.2	Notification under Code Section 83(b)	 	20
	 	 	 	 
	Article 17. Additional Provisions	 	20
	17.1	Successors	 	20
	17.2	Severability	 	20
	17.3	Requirements of Law	 	20
	17.4	Securities Law Compliance	 	21
	17.5	Awards Subject to Claw-Back Policies	 	21
	17.6	No Rights as a Stockholder	 	21
	17.7	Nature of Payments	 	21
	17.8	Non-Exclusivity of Plan	 	21
	17.9	Governing Law	 	22
	17.10	Unfunded Status of Awards; Creation of Trusts	 	22
	17.11	Affiliation	 	22
	17.12	Participation	 	22
	17.13	Military Service	 	22
	17.14	Construction	 	22
	17.15	Headings	 	22
	17.16	Obligations	 	22
	17.17	No Right to Continue as Director	 	22
	17.18	Stockholder Approval	 	22

 

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CNS RESPONSE, INC.

2012 OMNIBUS INCENTIVE COMPENSATION
PLAN

 

Article 1.

Effective Date, Objectives and Duration

 

1.1           Effective
Date of the Plan. CNS Response, Inc., a Delaware corporation (the “Company”), adopted the 2012 Omnibus Incentive
Compensation Plan (the “Plan”) on March 22, 2012, (the “Effective Date”) subject to approval by the Company’s
stockholders. The terms of the Plan are set forth herein.

 

1.2           Objectives
of the Plan. The Plan is intended (a) to allow selected employees of and consultants to the Company and its Subsidiaries to
acquire or increase equity ownership in the Company, thereby strengthening their commitment to the success of the Company and
stimulating their efforts on behalf of the Company, and to assist the Company and its Subsidiaries in attracting new employees,
officers and consultants and retaining existing employees and consultants, (b) to optimize the profitability and growth of the
Company and its Subsidiaries through incentives which are consistent with the Company’s goals, (c) to provide Grantees with
an incentive for excellence in individual performance, (d) to promote teamwork among employees, consultants and Non-Employee Directors,
and (e) to attract and retain highly qualified persons to serve as Non-Employee Directors and to promote ownership by such Non-Employee
Directors of a greater proprietary interest in the Company, thereby aligning such Non-Employee Directors’ interests more
closely with the interests of the Company’s stockholders.

 

1.3           Duration
of the Plan. The Plan shall commence on the Effective Date and shall remain in effect, subject to the right of the Board of
Directors of the Company (“Board”) to amend or terminate the Plan at any time pursuant to Article 14 hereof, until
the earlier of ____________, 2022, or the date all Shares subject to the Plan shall have been purchased or acquired and the restrictions
on all Restricted Shares granted under the Plan shall have lapsed, according to the Plan’s provisions.

 

Article 2.

Definitions

 

Whenever used in the Plan, the following
terms shall have the meanings set forth below:

 

2.1           “Affiliate” means
any corporation or other entity, including but not limited to partnerships, limited liability companies and joint ventures, with
respect to which the Company, directly or indirectly, owns as applicable (a) stock possessing more than fifty percent (50%) of
the total combined voting power of all classes of stock entitled to vote, or more than fifty percent (50%) of the total value
of all shares of all classes of stock of such corporation, or (b) an aggregate of more than fifty percent (50%) of the profits
interest or capital interest of a non-corporate entity.

 

2.2           “Award” means
Options (including non-qualified options and Incentive Stock Options), Restricted Shares, Performance Units (which may be paid
in cash), Performance Shares, Deferred Stock, Restricted Stock Units, Dividend Equivalents, Bonus Shares, or Other Stock-Based
Awards granted under the Plan.

 

2.3           “Award
Agreement” means either (a) a written agreement entered into by the Company and a Grantee setting forth the terms
and provisions applicable to an Award granted under this Plan, or (b) a written statement issued by the Company to a Grantee describing
the terms and provisions of such Award, including any amendment or modification thereof. The Committee may provide for the use
of electronic, internet or other non-paper Award Agreements and the use of electronic, internet or other non-paper means for the
acceptance thereof and actions thereunder by the Grantee.

    	 

    	 

    

 

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

 

2.5           “Bonus
Shares” means Shares that are awarded to a Grantee with or without cost and without restrictions either in recognition
of past performance (whether determined by reference to another employee benefit plan of the Company or otherwise) or as an incentive
to become an Eligible Person.

 

2.6           “CEO” means
the Chief Executive Officer of the Company.

 

2.7           “Code” means
the Internal Revenue Code of 1986, as amended from time to time. References to a particular section of the Code include references
to regulations and rulings thereunder and to successor provisions.

 

2.8           “Committee”
or “Incentive Plan Committee” has the meaning set forth in Section 3.1(a).

 

2.9           “Compensation
Committee” means the compensation committee of the Board.

 

2.10         “Common
Stock” means the common stock, $0.001 par value, of the Company.

 

2.11         “Covered
Employee” means a Grantee who, as of the last day of the fiscal year in which the value of an Award is recognizable
as income for federal income tax purposes, is a “covered employee,” within the meaning of Code Section 162(m), with
respect to the Company.

 

2.12         “Deferred
Stock” means a right, granted under Article 9, to receive Shares at the end of a specified deferral period.

 

2.13         “Disability”
or “Disabled” means, unless otherwise defined in an Award Agreement, or as otherwise determined under
procedures established by the Committee for purposes of the Plan:

 

(a)          Except
as provided in (b) below, a disability within the meaning of Section 22(e)(3) of the Code; and

 

(b)          In
the case of any Award that constitutes deferred compensation within the meaning of Section 409A of the Code, a disability as defined
in regulations under Code Section 409A. For purpose of Code Section 409A, a Grantee will be considered Disabled if:

 

(i)          the
Grantee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months,
or

 

(ii)         the
Grantee is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can
be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period
of not less than three (3) months under an accident and health plan covering employees of the Grantee’s employer.

 

2.14         “Dividend
Equivalent” means a right to receive payments equal to dividends or property, if and when paid or distributed,
on a specified number of Shares.

 

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2.15         “Eligible
Person” means any employee (including any officer) of, or non-employee consultant to, or Non-Employee Director
of, the Company or any Affiliate, or potential employee (including a potential officer) of, or non-employee consultant to, the
Company or an Affiliate; provided, however, that solely with respect to the grant of an Incentive Stock Option, an Eligible Person
shall be any employee (including any officer) of the Company or any Subsidiary Corporation. Solely for purposes of Section 5.6(b),
current or former employees or non-employee directors of, or consultants to, of an Acquired Entity who receive Substitute Awards
in substitution for Acquired Entity Awards shall be considered Eligible Persons under this Plan with respect to such Substitute
Awards.

 

2.16         “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time. References to a particular section
of the Exchange Act include references to successor provisions.

 

2.17         “Exercise
Price” means with respect to an Option, the price at which a Share may be purchased by a Grantee pursuant to such
Option.

 

2.18         “Fair
Market Value” means a price that is based on the opening, closing, actual, high, low, or the arithmetic mean of
selling prices of a Share reported on The Nasdaq Capital Market (“Nasdaq”), or if not the Nasdaq, on the established
stock exchange which is the principal exchange upon which the Shares are traded on the applicable date or the preceding trading
day. Unless the Committee determines otherwise, if the Shares are traded over the counter at the time a determination of its Fair
Market Value is required to be made hereunder, Fair Market Value shall be deemed to be equal to the arithmetic mean between the
reported high and low or closing bid and asked prices of a Share on the applicable date, or if no such trades were made that day
then the most recent date on which Shares were publicly traded. In the event Shares are not publicly traded at the time a determination
of their value is required to be made hereunder, the determination of their Fair Market Value shall be made by the Committee in
such manner as it deems appropriate provided such manner is consistent with Treasury Regulation 1.409A-1(b)(5)(iv)(B). Such definition(s)
of Fair Market Value shall be specified in each Award Agreement and may differ depending on whether Fair Market Value is in reference
to the grant, exercise, vesting, settlement, or payout of an Award; provided, however that in the absence of such determination,
Fair Market Value means the closing price for a Share as reported by the Nasdaq (or such other principal exchange) on the date
immediately preceding the Grant Date or other applicable date, or if no sales occurred that day, on the most recent date upon
which sales did occur.

 

2.19         “Grant
Date” means the date on which an Award is granted or such later date as specified in advance by the Committee.

 

2.20         “Grantee” means
a person who has been granted an Award.

 

2.21         “Incentive
Stock Option” means an Option that is intended to meet the requirements of Section 422 of the Code.

 

2.22         “Including”
or “includes” means “including, without limitation,” or “includes, without limitation,”
respectively.

 

2.23         “Management
Committee” has the meaning set forth in Section 3.1(b).

 

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

 

2.25         “Option” means
an option granted under Article 6 of the Plan.

 

2.26         “Other
Stock-Based Award” means a right, granted under Article 12 hereof, that relates to or is valued by reference to
Shares or other Awards relating to Shares.

 

2.27         “Performance-Based
Exception” means the performance-based exception from the tax deductibility limitations of Code Section 162(m)
contained in Code Section 162(m)(4)(C) (including the special provisions for options thereunder). Notwithstanding the foregoing,
nothing in this Plan shall be construed to mean that an Award which does not satisfy the requirements for performance-based compensation
under Code Section 162(m) does not constitute performance-based compensation for other purposes, including Code Section 409A.

 

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2.28         “Performance
Measures” has the meaning set forth in Section 4.4.

 

2.29         “Performance
Period” means the time period during which performance goals must be met.

 

2.30         “Performance
Share” and “Performance Unit” have the respective meanings set forth in Article 8.

 

2.31         “Period
of Restriction” means the period during which Restricted Shares are subject to forfeiture if the conditions specified
in the Award Agreement are not satisfied.

 

2.32         “Person” means
any individual, sole proprietorship, partnership, joint venture, limited liability company, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, entity or government instrumentality, division, agency, body
or department.

 

2.33         “Restricted
Shares” means Shares, granted under Article 7, that are both subject to forfeiture and are nontransferable if the
Grantee does not satisfy the conditions specified in the Award Agreement applicable to such Shares.

 

2.34         “Restricted
Stock Units” are rights, granted under Article 9, to receive Shares if the Grantee satisfies the conditions specified
in the Award Agreement applicable to such rights.

 

2.35         “Rule
16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange Act, as amended from time to time, together with
any successor rule.

 

2.36         “SEC” means
the United States Securities and Exchange Commission, or any successor thereto.

 

2.37         “Section
16 Non-Employee Director” means a member of the Board who satisfies the requirements to qualify as a “non-employee
director” under Rule 16b-3.

 

2.38         “Section
16 Person” means a person who is subject to potential liability under Section 16(b) of the Exchange Act with respect
to transactions involving equity securities of the Company.

 

2.39         “Separation
from Service” means, with respect to any Award that constitutes deferred compensation within the meaning of Code
Section 409A, a “separation from service” as defined in Treasury Regulation Section 1.409A-1(h). For this purpose,
a “separation from service” is deemed to occur on the date that the Company and the Grantee reasonably anticipate
that the level of bona fide services the Grantee would perform for the Company and/or any Affiliates after that date (whether
as an employee, Non-Employee Director or consultant or independent contractor) would permanently decrease to a level that, based
on the facts and circumstances, would constitute a separation from service; provided that a decrease to a level that is 50% or
more of the average level of bona fide services provided over the prior 36 months shall not be a separation from service, and
a decrease to a level that is 20% or less of the average level of such bona fide services shall be a separation from service.
The Committee retains the right and discretion to specify, and may specify, whether a separation from service occurs for individuals
providing services to the Company or an Affiliate immediately prior to an asset purchase transaction in which the Company or an
Affiliate is the seller who provide services to a buyer after and in connection with such asset purchase transaction; provided,
such specification is made in accordance with the requirements of Treasury Regulation Section 1.409A-1(h)(4).

 

2.40         “Share” means
a share of Common Stock, and such other securities of the Company, as may be substituted or resubstituted for Shares pursuant
to Section 4.2 hereof.

 

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 2.41         “Subsidiary
Corporation” means a corporation other than the Company in an unbroken chain of corporations beginning with the
Company if, at the time of granting the Option, each of the corporations other than the last corporation in the unbroken chain
owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain.

 

2.42         “Surviving
Company” means the surviving corporation in any merger or consolidation, involving the Company, including the Company
if the Company is the surviving corporation, or the direct or indirect parent company of the Company or such surviving corporation
following a sale of substantially all of the outstanding stock of the Company.

 

2.43         “Term” of
any Option means the period beginning on the Grant Date of an Option and ending on the date such Option expires, terminates or
is cancelled.

 

2.44         “Termination
of Affiliation” occurs on the first day on which an individual is for any reason no longer providing services to
the Company or any Affiliate in the capacity of an employee, officer or consultant or with respect to an individual who is an
employee or officer of or a consultant to an Affiliate, the first day on which such entity ceases to be an Affiliate of the Company;
provided, however, that if an Award constitutes deferred compensation within the meaning of Code Section 409A, Termination of
Affiliation with respect to such Award shall mean the Grantee’s Separation from Service.

 

Article 3.

Administration

 

3.1           Committee.

 

(a)          Subject
to Section 3.2, the Plan shall be administered by a Committee (the “Incentive Plan Committee” or the “Committee”)
appointed by the Board from time to time. Notwithstanding the foregoing, either the Board or the Compensation Committee may at
any time and in one or more instances reserve administrative powers to itself as the Committee or exercise any of the administrative
powers of the Committee. To the extent the Board or Compensation Committee considers it desirable to comply with Rule 16b-3 or
meet the Performance-Based Exception, the Committee shall consist of two or more directors of the Company, all of whom qualify
as “outside directors” within the meaning of Code Section 162(m) and Section 16 Non-Employee Directors. The number
of members of the Committee shall from time to time be increased or decreased, and shall be subject to such conditions, in each
case if and to the extent the Board deems it appropriate to permit transactions in Shares pursuant to the Plan to satisfy such
conditions of Rule 16b-3 and the Performance-Based Exception as then in effect.

 

(b)          The
Board or the Compensation Committee may appoint and delegate to another committee (“Management Committee”), or to the
CEO, any or all of the authority of the Board or the Committee, as applicable, with respect to Awards to Grantees other than Grantees
who are executive officers, Non-Employee Directors, or are (or are expected to be) Covered Employees and/or are Section 16 Persons
at the time any such delegated authority is exercised.

 

(c)          Unless
the context requires otherwise, any references herein to “Committee” include references to the Incentive Plan Committee,
the Board or the Compensation Committee to the extent any has assumed or exercises administrative powers itself as the Committee
pursuant to subsection (a), and to the Management Committee or the CEO to the extent either has been delegated authority pursuant
to subsection (b), as applicable; provided that (i) for purposes of Awards to Non-Employee Directors, “Committee” shall
include only the full Board, and (ii) for purposes of Awards intended to comply with Rule 16b-3 or meet the Performance-Based Exception,
“Committee” shall include only the Incentive Plan Committee or the Compensation Committee.

 

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3.2           Powers
of Committee. Subject to and consistent with the provisions of the Plan, the Committee has full and final authority and sole
discretion as follows; provided that any such authority or discretion exercised with respect to a specific Non-Employee Director
shall be approved by the affirmative vote of a majority of the members of the Board, even if not a quorum, but excluding the Non-Employee
Director with respect to whom such authority or discretion is exercised:

 

(a)          to
determine when, to whom and in what types and amounts Awards should be granted;

 

(b)          to
grant Awards to Eligible Persons in any number and to determine the terms and conditions applicable to each Award (including the
number of Shares or other property to which an Award will relate, any Exercise Price or purchase price, any limitation or restriction,
any schedule for or performance conditions relating to the earning of the Award or the lapse of limitations, forfeiture restrictions,
restrictions on exercisability or transferability, any performance goals including those relating to the Company and/or an Affiliate
and/or any division thereof and/or an individual, and/or vesting based on the passage of time, based in each case on such considerations
as the Committee shall determine);

 

(c)          to
determine the benefit payable under any Performance Unit, Performance Share, Dividend Equivalent, Other Stock-Based Award and to
determine whether any performance or vesting conditions have been satisfied;

 

(d)          to
determine whether or not specific Awards shall be granted in connection with other specific Awards, and if so, whether they shall
be exercisable cumulatively with, or alternatively to, such other specific Awards and all other matters to be determined in connection
with an Award;

 

(e)          to
determine the Term of any Option;

 

(f)          to
determine the amount, if any, that a Grantee shall pay for Restricted Shares, whether to permit or require the payment of cash
dividends thereon to be deferred and the terms related thereto, when Restricted Shares (including Restricted Shares acquired upon
the exercise of an Option) shall be forfeited and whether such shares shall be held in escrow;

 

(g)          to
determine whether, to what extent and under what circumstances an Award may be settled in, or the exercise price of an Award may
be paid in, cash, Shares, other Awards or other property, or an Award may be accelerated, vested, canceled, forfeited or surrendered
or any terms of the Award may be waived, and to accelerate the exercisability of, and to accelerate or waive any or all of the
terms and conditions applicable to, any Award or any group of Awards for any reason and at any time;

 

(h)          to
determine with respect to Awards granted to Eligible Persons whether, to what extent and under what circumstances cash, Shares,
other Awards, other property and other amounts payable with respect to an Award will be deferred, either at the election of the
Grantee or if and to the extent specified in the Award Agreement automatically or at the election of the Committee (whether to
limit loss of deductions pursuant to Code Section 162(m) or otherwise);

 

(i)          to
offer to exchange or buy out any previously granted Award for a payment in cash, Shares or other Award;

 

(j)          to
construe and interpret the Plan and to make all determinations, including factual determinations, necessary or advisable for the
administration of the Plan;

 

(k)          to
make, amend, suspend, waive and rescind rules and regulations relating to the Plan;

 

    	- 6 -

    	 

    

 

(l)          to
appoint such agents as the Committee may deem necessary or advisable to administer the Plan;

 

(m)          to
determine the terms and conditions of all Award Agreements applicable to Eligible Persons (which need not be identical) and, with
the consent of the Grantee, to amend any such Award Agreement at any time, among other things, to permit transfers of such Awards
to the extent permitted by the Plan; provided that the consent of the Grantee shall not be required for any amendment (i) which
does not adversely affect the rights of the Grantee, or (ii) which is necessary or advisable (as determined by the Committee) to
carry out the purpose of the Award as a result of any new applicable law or change in an existing applicable law, or (iii) to the
extent the Award Agreement specifically permits amendment without consent;

 

(n)          to
cancel, with the consent of the Grantee, outstanding Awards and to grant new Awards in substitution therefor;

 

(o)          to
impose such additional terms and conditions upon the grant, exercise or retention of Awards as the Committee may, before or concurrently
with the grant thereof, deem appropriate, including limiting the percentage of Awards which may from time to time be exercised
by a Grantee;

 

(p)          to
make adjustments in the terms and conditions of, and the criteria in, Awards in recognition of unusual or nonrecurring events (including
events described in Section 4.2) affecting the Company or an Affiliate or the financial statements of the Company or an Affiliate,
or in response to changes in applicable laws, regulations or accounting principles; provided, however, that in no event shall such
adjustment increase the value of an Award for a person expected to be a Covered Employee for whom the Committee desires to have
the Performance-Based Exception apply;

 

(q)          to
correct any defect or supply any omission or reconcile any inconsistency, and to construe and interpret the Plan, the rules and
regulations, and Award Agreement or any other instrument entered into or relating to an Award under the Plan; and

 

(r)          to
take any other action with respect to any matters relating to the Plan for which it is responsible and to make all other decisions
and determinations as may be required under the terms of the Plan or as the Committee may deem necessary or advisable for the administration
of the Plan.

 

Any action of the Committee with respect
to the Plan shall be final, conclusive and binding on all persons, including the Company, its Affiliates, any Grantee, any person
claiming any rights under the Plan from or through any Grantee, and stockholders, except to the extent the Committee may subsequently
modify, or take further action not consistent with, its prior action. If not specified in the Plan, the time at which the Committee
must or may make any determination shall be determined by the Committee, and any such determination may thereafter be modified
by the Committee. The express grant of any specific power to the Committee, and the taking of any action by the Committee, shall
not be construed as limiting any power or authority of the Committee. The Committee may delegate to officers or managers of the
Company or any Affiliate the authority, subject to such terms as the Committee shall determine, to perform specified functions
under the Plan (subject to Sections 4.3 and 5.7(c)).

 

3.3           No
Repricings. Notwithstanding any provision in Section 3.2 to the contrary, the terms of any outstanding Option may not be amended
to reduce the Exercise Price of such Option or cancel any outstanding Option in exchange for other Options with an Exercise Price
that is less than the Exercise Price of the cancelled Option or for any cash payment (or Shares having with a Fair Market Value)
in an amount that exceeds the excess of the Fair Market Value of the Shares underlying such cancelled Option over the aggregate
Exercise Price of such Option or for any other Award, without stockholder approval; provided, however, that the restrictions set
forth in this Section 3.3, shall not apply to any adjustment allowed under to Section 4.2.

 

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Article 4.

Shares Subject to the Plan, Maximum Awards, and 162(m) Compliance

 

4.1           Number
of Shares Available for Grants. Subject to adjustment as provided in Section 4.2 and except as provided in Section 5.6(b),
the maximum number of Shares hereby reserved for delivery under the Plan shall be 333,3341,
including Shares delivered pursuant to the exercise of Incentive Stock Options granted hereunder.

 

If any Shares subject to an Award granted
hereunder (other than a Substitute Award granted pursuant to Section 5.6.(b)) are forfeited or such Award otherwise terminates
without the delivery of such Shares, the Shares subject to such Award, to the extent of any such forfeiture or termination, shall
again be available for grant under the Plan. For avoidance of doubt, however, if any Shares subject to an Award granted hereunder
are withheld or applied as payment in connection with the exercise of an Award or the withholding or payment of taxes related thereto
(“Returned Shares”), such Returned Shares will be treated as having been delivered for purposes of determining the
maximum number of Shares available for grant under the Plan and shall not again be treated as available for grant under the Plan.

 

Shares delivered pursuant to the Plan may
be, in whole or in part, authorized and unissued Shares, or treasury Shares, including Shares repurchased by the Company for purposes
of the Plan.

 

4.2           Adjustments
in Authorized Shares and Awards; Liquidation, Dissolution or Change of Control.

 

(a)          Adjustment
in Authorized Shares and Awards. In the event that the Committee determines that any dividend or other distribution (whether
in the form of Shares, or other property), recapitalization, forward or reverse stock split, subdivision, consolidation or reduction
of capital, reorganization, merger, consolidation, scheme of arrangement, split-up, spin-off or combination involving the Company
or repurchase or exchange of Shares or other securities of the Company or other rights to purchase Shares or other securities of
the Company, or other similar corporate transaction or event affects the Shares such that any adjustment is determined by the Committee
to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available
under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type
of Shares (or other securities or property) with respect to which Awards may be granted, (ii) the number and type of Shares (or
other securities or property) subject to outstanding Awards, (iii) the Exercise Price with respect to any Award or, if deemed appropriate,
make provision for a cash payment to the holder of an outstanding Award, and (iv) the number and kind of Shares of outstanding
Restricted Shares, or the Shares underlying any Award of Restricted Stock Units, Deferred Stock or other outstanding Share-based
Award. Notwithstanding the foregoing, no such adjustment shall be authorized with respect to any Options to the extent that such
adjustment would cause the Option (determined as if such Option was an Incentive Stock Option) to violate Section 424(a) of the
Code or otherwise subject any Grantee to taxation under Section 409A of the Code; and provided further that the number of
Shares subject to any Award denominated in Shares shall always be a whole number.

 

1 Reflects number of post-reverse-split shares.

 

    	- 8 -

    	 

    

 

(b)          Merger,
Consolidation or Similar Corporate Transaction. In the event of a merger or consolidation of the Company with or into another
corporation or a sale of substantially all of the stock of the Company (a “Corporate Transaction”), unless an outstanding
Award is assumed by the Surviving Company or replaced with an equivalent Award granted by the Surviving Company in substitution
for such outstanding Award, such Award shall be vested and non-forfeitable and any conditions on such Award shall lapse, as to
all or any part of such Award, including Shares as to which the Award would not otherwise be exercisable or non-forfeitable. If
an Award becomes exercisable or non-forfeitable in lieu of assumption or replacement by the Surviving Company in a Corporate Transaction,
the Committee may either (i) allow all Grantees to exercise such Awards of Options within a reasonable period prior to the consummation
of the transactions and cancel any outstanding Awards that remain unexercised upon consummation of the Corporate Transaction, or
(ii) cancel any or all outstanding Awards of Options in exchange for a payment (in securities or other property) in an amount equal
to the amount that the Grantee would have received (net of the Exercise Price) if such Options were fully vested and exercised
immediately prior to the consummation of the Corporate Transaction. Notwithstanding the foregoing, if an Option is not assumed
by the Surviving Company or replaced with an equivalent Award issued by the Surviving Company and the Exercise Price with respect
to any outstanding Option exceeds the Fair Market Value of the Shares immediately prior to the consummation of the Corporation
Transaction, such Awards shall be cancelled without any payment to the Grantee.

 

(c)          Liquidation
or Dissolution of the Company. In the event of the proposed dissolution or liquidation of the Company, each Award will terminate
immediately prior to the consummation of such proposed action, unless otherwise provided by the Committee. Additionally, the Committee
may, in the exercise of its sole discretion, cause Awards to be vested and non-forfeitable and cause any conditions on any such
Award to lapse, as to all or any part of such Award, including Shares as to which the Award would not otherwise be exercisable
or non-forfeitable and allow all Grantees to exercise such Awards of Options within a reasonable period prior to the consummation
of such proposed action. Any Awards that remain unexercised upon consummation of such proposed action shall be cancelled.

 

(d)          Deferred
Compensation and Awards Intended to Comply With the Performance-Based Exception. Notwithstanding the forgoing provisions of
this Section 4.2,

 

(i)          if
an Award (other than an Option) is intended to comply with the Performance-Based Exception, no payment or settlement of such Award
shall be made pursuant to Section 4.2(b) or (c) until the earlier (i) the consummation of a change of control of the Company (as
determined by the Committee in its sole discretion) or (ii) the attainment of the Performance Measure(s) upon which the Award is
conditioned as certified by the Committee; and

 

(ii)         if
an Award constitutes deferred compensation within the meaning of Code Section 409A, no payment or settlement of such Award shall
be made pursuant to Section 4.2(b) or (c), unless the Corporate Transaction or the dissolution or liquidation of the Company, as
applicable, constitutes a change in ownership or effective control of the Company or a change in ownership of a substantial portion
of the assets of the Company as described in Treasury Regulation Section 1.409A-3(i)(5).

 

4.3           Compliance
with Section 162(m) of the Code.

 

(a)          Section
162(m) Compliance. To the extent the Committee determines that compliance with the Performance-Based Exception is desirable
with respect to an Award, this Section 4.3(a) shall apply. Each Award that is intended to meet the Performance-Based Exception
and is granted to a person the Committee believes is likely to be a Covered Employee at the time such Award is settled shall comply
with the requirements of the Performance-Based Exception; provided, however, that to the extent Code Section 162(m) requires periodic
shareholder approval of performance measures, such approval shall not be required for the continuation of the Plan or as a condition
to grant any Award hereunder after such approval is required. In addition, in the event that changes are made to Code Section 162(m)
to permit flexibility with respect to the Award or Awards available under the Plan, the Committee may, subject to this Section
4.3, make any adjustments to such Awards as it deems appropriate.

 

    	- 9 -

    	 

    

 

(b)          Annual
Individual Limitations. No Grantee may be granted Awards (other than Awards that cannot be satisfied in Shares) with respect
to more than 33,3342 Shares, subject to adjustment as provided in Section
4.2(a), in a single calendar year and except as otherwise provided in Section 5.6(b).

 

4.4           Performance-Based
Exception Under Section 162(m). Unless and until the Committee proposes for stockholder vote and stockholders approve a change
in the general performance measures set forth in this Section 4.4, for Awards (other than Options) designed to qualify for the
Performance-Based Exception, the objective Performance Measure(s) shall be chosen from among the following: the attainment by
a Share a specified Fair Market Value for a specified period of time; earnings per Share; earnings per Share from continuing operations;
total shareholder return; return on assets; return on equity; return on capital; earnings before or after taxes, interest, depreciation,
and/or amortization; return on investment; interest expense; cash flow; cash flow from operations; revenues; sales; costs; assets;
debt; expenses; inventory turnover; economic value added; cost of capital; operating margin; gross margin; net income before or
after taxes; operating earnings either before or after interest expense and either before or after incentives or asset impairments;
attainment of cost reduction goals; revenue per customer; customer turnover rate; asset impairments; financing costs; capital
expenditures; working capital; strategic business criteria, consisting of one or more objectives based on meeting specified revenue,
market penetration, geographic business expansion goals, objectively identified project milestones, production volume levels,
cost targets, and goals relating to acquisitions or divestitures; customer satisfaction, aggregate product price and other product
price measures; safety record; service reliability; debt rating; and achievement of business and operational goals, such as market
share, new products, and/or business development. Any applicable Performance Measure may be applied on a pre- or post-tax basis.
The Committee may, on the Grant Date of an Award intended to comply with the Performance-Based Exception, and in the case of other
grants, at any time, provide that the formula for such Award may include or exclude items to measure specific objectives, such
as losses from discontinued operations, extraordinary gains or losses, the cumulative effect of accounting changes, acquisitions
or divestitures, foreign exchange impacts and any unusual, nonrecurring gain or loss. The levels of performance required with
respect to Performance Measures may be expressed in absolute or relative levels and may be based upon a set increase, set positive
result, maintenance of the status quo, set decrease or set negative result. Performance Measures may differ for Awards to different
Grantees. The Committee shall specify the weighting (which may be the same or different for multiple objectives) to be given to
each performance objective for purposes of determining the final amount payable with respect to any such Award. Any one or more
of the Performance Measures may apply to the Grantee, a department, unit, division or function within the Company or any one or
more Affiliates; and may apply either alone or relative to the performance of other businesses or individuals (including industry
or general market indices). For Awards intended to comply with the Performance-Based Exception, the Committee shall set the Performance
Measures within the time period prescribed by Section 162(m) of the Code.

 

The Committee shall have the discretion
to adjust the determinations of the degree of attainment of the pre-established performance goals; provided, however, that Awards
which are designed to qualify for the Performance-Based Exception may not (unless the Committee determines to amend the Award so
that it no longer qualified for the Performance-Based Exception) be adjusted upward (the Committee shall retain the discretion
to adjust such Awards downward). The Committee may not, unless the Committee determines to amend the Award so that it no longer
qualifies for the Performance-Based Exception, delegate any responsibility with respect to Awards intended to qualify for the Performance-Based
Exception. All determinations by the Committee as to the achievement of the Performance Measure(s) shall be in writing prior to
payment of the Award.

 

In the event that applicable laws change
to permit Committee discretion to alter the governing performance measures without obtaining stockholder approval of such changes,
and still qualify for the Performance-Based Exception, the Committee shall have sole discretion to make such changes without obtaining
stockholder approval.

 

2 Reflects number of post-reverse-split shares.

 

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Article 5.

Eligibility and General Conditions of Awards

 

5.1           Eligibility.
The Committee may in its discretion grant Awards to any Eligible Person, whether or not he or she has previously received an Award;
provided, however, that all Awards made to Non-Employee Directors shall be determined by the Board in its sole discretion.

 

5.2           Award
Agreement. To the extent not set forth in the Plan, the terms and conditions of each Award shall be set forth in an Award
Agreement.

 

5.3           General
Terms and Termination of Affiliation. The Committee may impose on any Award or the exercise or settlement thereof, at the
date of grant or, subject to the provisions of Section 14.2, thereafter, such additional terms and conditions not inconsistent
with the provisions of the Plan as the Committee shall determine, including terms requiring forfeiture, acceleration or pro-rata
acceleration of Awards in the event of a Termination of Affiliation by the Grantee. Except as may be required under the Delaware
General Corporation Law, Awards may be granted for no consideration other than prior and future services. Except as otherwise
determined by the Committee pursuant to this Section 5.3, all Options that have not been exercised, or any other Awards that remain
subject to a risk of forfeiture or which are not otherwise vested, or which have outstanding Performance Periods, at the time
of a Termination of Affiliation shall be forfeited to the Company.

 

5.4           Nontransferability
of Awards.

 

(a)          Each
Award and each right under any Award shall be exercisable only by the Grantee during the Grantee’s lifetime, or, if permissible
under applicable law, by the Grantee’s guardian or legal representative or by a transferee receiving such Award pursuant
to a qualified domestic relations order (a “QDRO”) as defined in the Code or Title I of the Employee Retirement Income
Security Act of 1974, as amended, or the rules thereunder.

 

(b)          No
Award (prior to the time, if applicable, Shares are delivered in respect of such Award), and no right under any Award, may be assigned,
alienated, pledged, attached, sold or otherwise transferred or encumbered by a Grantee otherwise than by will or by the laws of
descent and distribution (or in the case of Restricted Shares, to the Company) or pursuant to a QDRO, and any such purported assignment,
alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate;
provided that the designation of a beneficiary to receive benefits in the event of the Grantee’s death shall not constitute
an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.

 

(c)          Notwithstanding
subsections (a) and (b) above, to the extent provided in the Award Agreement, Options (other than Incentive Stock Options) and
Restricted Shares, may be transferred, without consideration, to a Permitted Transferee. For this purpose, a “Permitted Transferee”
in respect of any Grantee means any member of the Immediate Family of such Grantee, any trust of which all of the primary beneficiaries
are such Grantee or members of his or her Immediate Family, or any partnership (including limited liability companies and similar
entities) of which all of the partners or members are such Grantee or members of his or her Immediate Family; and the “Immediate
Family” of a Grantee means the Grantee’s spouse, children, stepchildren, grandchildren, parents, stepparents, siblings,
grandparents, nieces and nephews. Such Option may be exercised by such transferee in accordance with the terms of the Award Agreement.
If so determined by the Committee, a Grantee may, in the manner established by the Committee, designate a beneficiary or beneficiaries
to exercise the rights of the Grantee, and to receive any distribution with respect to any Award upon the death of the Grantee.
A transferee, beneficiary, guardian, legal representative or other person claiming any rights under the Plan from or through any
Grantee shall be subject to and consistent with the provisions of the Plan and any applicable Award Agreement, except to the extent
the Plan and Award Agreement otherwise provide with respect to such persons, and to any additional restrictions or limitations
deemed necessary or appropriate by the Committee.

 

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(d)          Nothing
herein shall be construed as requiring the Committee to honor a QDRO except to the extent required under applicable law.

 

5.5           Cancellation
and Rescission of Awards. Unless the Award Agreement specifies otherwise, the Committee may cancel, rescind, suspend, withhold,
or otherwise limit or restrict any unexercised Award at any time if the Grantee is not in compliance with all applicable provisions
of the Award Agreement and the Plan or if the Grantee has a Termination of Affiliation.

 

5.6           Stand-Alone,
Tandem and Substitute Awards.

 

(a)          Awards
granted under the Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in
substitution for, any other Award granted under the Plan unless such tandem or substitution Award would subject the Grantee to
tax penalties imposed under Section 409A of the Code; provided further that if the stand-alone, tandem or substitute Award is intended
to qualify for the Performance-Based Exception, it must separately satisfy the requirements of the Performance-Based Exception.
If an Award is granted in substitution for another Award or any non-Plan award or benefit, the Committee shall require the surrender
of such other Award or non-Plan award or benefit in consideration for the grant of the new Award. Awards granted in addition to
or in tandem with other Awards or non-Plan awards or benefits may be granted either at the same time as or at a different time
from the grant of such other Awards or non-Plan awards or benefits;

 

(b)          The
Committee may, in its discretion and on such terms and conditions as the Committee considers appropriate in the circumstances,
grant Awards under the Plan (“Substitute Awards”) in substitution for stock and stock-based awards (“Acquired
Entity Awards”) held by current or former employees or non-employee directors of, or consultants to, another corporation
or entity who become Eligible Persons as the result of a merger or consolidation of the employing corporation or other entity (the
“Acquired Entity”) with the Company or an Affiliate or the acquisition by the Company or an Affiliate of property or
stock of the Acquired Entity immediately prior to such merger, consolidation or acquisition in order to preserve for the Grantee
the economic value of all or a portion of such Acquired Entity Award at such price as the Committee determines necessary to achieve
preservation of economic value. The limitations of Sections 4.1 and 4.3 on the number of Shares reserved or available for grants
shall not apply to Substitute Awards granted under this Section 5.6(b).

 

5.7           Compliance
with Rule 16b-3.

 

(a)          Six-Month
Holding Period Advice. Unless a Grantee could otherwise dispose of or exercise a derivative security or dispose of Shares
delivered under the Plan without incurring liability under Section 16(b) of the Exchange Act, the Committee may advise or require
a Grantee to comply with the following in order to avoid incurring liability under Section 16(b) of the Exchange Act: (i) at least
six months must elapse from the date of acquisition of a derivative security under the Plan to the date of disposition of the
derivative security (other than upon exercise or conversion) or its underlying equity security, and (ii) Shares granted or awarded
under the Plan other than upon exercise or conversion of a derivative security must be held for at least six months from the date
of grant of an Award.

 

(b)          Reformation
to Comply with Exchange Act Rules. To the extent the Committee determines that a grant or other transaction by a Section
16 Person should comply with applicable provisions of Rule 16b-3 (except for transactions exempted under alternative Exchange
Act rules), the Committee shall take such actions as necessary to make such grant or other transaction so comply, and if any provision
of this Plan or any Award Agreement relating to a given Award does not comply with the requirements of Rule 16b-3 as then applicable
to any such grant or transaction, such provision will be construed or deemed amended, if the Committee so determines, to the extent
necessary to conform to the then applicable requirements of Rule 16b-3.

 

    	- 12 -

    	 

    

 

(c)          Rule
16b-3 Administration. Any function relating to a Section 16 Person shall be performed solely by the Committee or the Board
if necessary to ensure compliance with applicable requirements of Rule 16b-3, to the extent the Committee determines that such
compliance is desired. Each member of the Committee or person acting on behalf of the Committee shall be entitled to, in good
faith, rely or act upon any report or other information furnished to him by any officer, manager or other employee of the Company
or any Affiliate, the Company’s independent certified public accountants or any executive compensation consultant or attorney
or other professional retained by the Company to assist in the administration of the Plan.

 

5.8           Deferral
of Award Payouts. The Committee may permit a Grantee to defer, or if and to the extent specified in an Award Agreement require
the Grantee to defer, receipt of the delivery of Shares that would otherwise be due by virtue of the lapse or waiver of restrictions
with respect to Restricted Stock Units, the satisfaction of any requirements or goals with respect to Performance Units or Performance
Shares, the lapse or waiver of the deferral period for Deferred Stock, or the lapse or waiver of restrictions with respect to
Other Stock-Based Awards. If the Committee permits such deferrals, the Committee shall establish rules and procedures for making
such deferral elections and for the payment of such deferrals, which shall conform in form and substance with applicable regulations
promulgated under Section 409A of the Code and Article 15 to ensure that the Grantee is not subjected to tax penalties under Section
409A of the Code with respect to such deferrals. Except as otherwise provided in an Award Agreement, any payment or any Shares
that are subject to such deferral shall be made or delivered to the Grantee as specified in the Award Agreement or pursuant to
the Grantee’s deferral election.

 

Article 6.

Stock Options

 

6.1           Grant
of Options. Subject to and consistent with the provisions of the Plan, Options may be granted to any Eligible Person in such
number, and upon such terms, and at any time and from time to time as shall be determined by the Committee.

 

6.2           Award
Agreement. Each Option grant shall be evidenced by an Award Agreement that shall specify the Exercise Price, the Term of the
Option, the number of Shares to which the Option pertains, the time or times at which such Option shall be exercisable and such
other provisions as the Committee shall determine.

 

6.3           Option
Exercise Price. The Exercise Price of an Option under this Plan shall be determined in the sole discretion of the Committee
but may not be less than 100% of the Fair Market Value of a Share on the Grant Date.

 

6.4           Grant
of Incentive Stock Options. At the time of the grant of any Option, the Committee may in its discretion designate that such
Option shall be made subject to additional restrictions to permit it to qualify as an Incentive Stock Option. Any Option designated
as an Incentive Stock Option:

 

(a)          shall
be granted only to an employee of the Company or a Subsidiary Corporation;

 

(b)          shall
have an Exercise Price of not less than 100% of the Fair Market Value of a Share on the Grant Date, and, if granted to a person
who owns capital stock (including stock treated as owned under Section 424(d) of the Code) possessing more than 10% of the total
combined voting power of all classes of capital stock of the Company or any Subsidiary Corporation (a “More Than 10% Owner”),
have an Exercise Price not less than 110% of the Fair Market Value of a Share on its Grant Date;

 

(c)          shall
be for a period of not more than 10 years (five years if the Grantee is a More Than 10% Owner) from its Grant Date, and shall be
subject to earlier termination as provided herein or in the applicable Award Agreement;

 

    	- 13 -

    	 

    

  

(d)          shall
not have an aggregate Fair Market Value (as of the Grant Date) of the Shares with respect to which Incentive Stock Options (whether
granted under the Plan or any other stock option plan of the Grantee’s employer or any parent or Subsidiary Corporation (“Other
Plans”)) are exercisable for the first time by such Grantee during any calendar year (“Current Grant”), determined
in accordance with the provisions of Section 422 of the Code, which exceeds $100,000 (the “$100,000 Limit”);

 

(e)          shall,
if the aggregate Fair Market Value of the Shares (determined on the Grant Date) with respect to the Current Grant and all Incentive
Stock Options previously granted under the Plan and any Other Plans which are exercisable for the first time during a calendar
year (“Prior Grants”) would exceed the $100,000 Limit, be, as to the portion in excess of the $100,000 Limit, exercisable
as a separate option that is not an Incentive Stock Option at such date or dates as are provided in the Current Grant;

 

(f)          shall
require the Grantee to notify the Committee of any disposition of any Shares delivered pursuant to the exercise of the Incentive
Stock Option under the circumstances described in Section 421(b) of the Code (relating to holding periods and certain disqualifying
dispositions) (“Disqualifying Disposition”) within 10 days of such a Disqualifying Disposition;

 

(g)          shall
by its terms not be assignable or transferable other than by will or the laws of descent and distribution and may be exercised,
during the Grantee’s lifetime, only by the Grantee; provided, however, that the Grantee may, to the extent provided in the
Plan in any manner specified by the Committee, designate in writing a beneficiary to exercise his or her Incentive Stock Option
after the Grantee’s death; and

 

(h)          shall,
if such Option nevertheless fails to meet the foregoing requirements, or otherwise fails to meet the requirements of Section 422
of the Code for an Incentive Stock Option, be treated for all purposes of this Plan, except as otherwise provided in subsections
(d) and (e) above, as an Option that is not an Incentive Stock Option.

 

Notwithstanding the foregoing and Section
3.2, the Committee may, without the consent of the Grantee, at any time before the exercise of an Option (whether or not an Incentive
Stock Option), take any action necessary to prevent such Option from being treated as an Incentive Stock Option.

 

6.5           Payment
of Exercise Price. Except as otherwise provided by the Committee in an Award Agreement, Options shall be exercised by the
delivery of a written notice of exercise to the Company, setting forth the number of Shares with respect to which the Option is
to be exercised, accompanied by full payment for the Shares made by any one or more of the following means:

 

(a)          cash,
personal check or wire transfer;

 

(b)          delivery
of Common Stock owned by the Grantee prior to exercise, valued at their Fair Market Value on the date of exercise;

 

(c)          with
the approval of the Committee, Shares acquired upon the exercise of such Option, such Shares valued at their Fair Market Value
on the date of exercise;

 

(d)          with
the approval of the Committee, Restricted Shares held by the Grantee prior to the exercise of the Option, each such share valued
at the Fair Market Value of a Share on the date of exercise; or

 

(e)          subject
to applicable law (including the prohibited loan provisions of Section 402 of the Sarbanes Oxley Act of 2002), through the sale
of the Shares acquired on exercise of the Option through a broker-dealer to whom the Grantee has submitted an irrevocable notice
of exercise and irrevocable instructions to deliver promptly to the Company the amount of sale or loan proceeds sufficient to pay
for such Shares, together with, if requested by the Company, the amount of federal, state, local or foreign withholding taxes payable
by Grantee by reason of such exercise.

 

    	- 14 -

    	 

    

 

 The Committee may in its discretion
specify that, if any Restricted Shares (“Tendered Restricted Shares”) are used to pay the Exercise Price, (x) all
the Shares acquired on exercise of the Option shall be subject to the same restrictions as the Tendered Restricted Shares, determined
as of the date of exercise of the Option, or (y) a number of Shares acquired on exercise of the Option equal to the number of
Tendered Restricted Shares shall be subject to the same restrictions as the Tendered Restricted Shares, determined as of the date
of exercise of the Option.

 

Article 7.

Restricted Shares

 

7.1           Grant
of Restricted Shares. Subject to and consistent with the provisions of the Plan, the Committee, at any time and from time
to time, may grant Restricted Shares to any Eligible Person in such amounts as the Committee shall determine.

 

7.2           Award
Agreement. Each grant of Restricted Shares shall be evidenced by an Award Agreement that shall specify the Period(s) of Restriction,
the number of Restricted Shares granted, and such other provisions as the Committee shall determine. The Committee may impose
such conditions and/or restrictions on any Restricted Shares granted pursuant to the Plan as it may deem advisable, including
restrictions based upon the achievement of specific performance goals, time-based restrictions on vesting following the attainment
of the performance goals, and/or restrictions under applicable securities laws; provided that such conditions and/or restrictions
may lapse, if so determined by the Committee, in the event of the Grantee’s Termination of Affiliation due to death, Disability,
or involuntary termination by the Company or an Affiliate without “cause.”

 

7.3           Consideration
for Restricted Shares. The Committee shall determine the amount, if any, that a Grantee shall pay for Restricted Shares.

 

7.4           Effect
of Forfeiture. If Restricted Shares are forfeited, and if the Grantee was required to pay for such shares or acquired such
Restricted Shares upon the exercise of an Option, the Grantee shall be deemed to have resold such Restricted Shares to the Company
at a price equal to the lesser of (x) the amount paid by the Grantee for such Restricted Shares, or (y) the Fair Market Value
of a Share on the date of such forfeiture. The Company shall pay to the Grantee the deemed sale price as soon as is administratively
practical. Such Restricted Shares shall cease to be outstanding and shall no longer confer on the Grantee thereof any rights as
a stockholder of the Company, from and after the date of the event causing the forfeiture, whether or not the Grantee accepts
the Company’s tender of payment for such Restricted Shares.

 

7.5           Escrow;
Legends. The Committee may provide that the certificates for any Restricted Shares (x) shall be held (together with a stock
power executed in blank by the Grantee) in escrow by the Secretary of the Company until such Restricted Shares become nonforfeitable
or are forfeited and/or (y) shall bear an appropriate legend restricting the transfer of such Restricted Shares under the Plan.
If any Restricted Shares become nonforfeitable, the Company shall cause certificates for such shares to be delivered without such
legend.

 

Article 8.

Performance Units and Performance Shares

 

8.1           Grant
of Performance Units and Performance Shares. Subject to and consistent with the provisions of the Plan, Performance Units
or Performance Shares may be granted to any Eligible Person in such amounts and upon such terms, and at any time and from time
to time, as shall be determined by the Committee.

 

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8.2           Value/Performance
Goals. The Committee shall set performance goals in its discretion which, depending on the extent to which they are met, will
determine the number or value of Performance Units or Performance Shares that will be paid to the Grantee. With respect to Covered
Employees and to the extent the Committee deems it appropriate to comply with Section 162(m) of the Code, all performance goals
shall be objective Performance Measures satisfying the requirements for the Performance-Based Exception and shall be set by the
Committee within the time period prescribed by Section 162(m) of the Code and related regulations.

 

(a)          Performance
Unit. Each Performance Unit shall have an initial value that is established by the Committee at the time of grant.

 

(b)          Performance
Share. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date of grant.

 

8.3           Earning
of Performance Units and Performance Shares. After the applicable Performance Period has ended, the holder of Performance
Units or Performance Shares shall be entitled to payment based on the level of achievement of performance goals set by the Committee.
If a Performance Unit or Performance Share Award is intended to comply with the Performance-Based Exception, the Committee shall
certify the level of achievement of the performance goals in writing before the Award is settled.

 

At the discretion of the Committee, the
settlement of Performance Units or Performance Shares may be in cash, Shares of equivalent value, or in some combination thereof,
as set forth in the Award Agreement.

 

If a Grantee is promoted, demoted or transferred
to a different business unit of the Company during a Performance Period, then, to the extent the Committee determines that the
Award, the performance goals, or the Performance Period are no longer appropriate, the Committee may adjust, change, eliminate
or cancel the Award, the performance goals, or the applicable Performance Period, as it deems appropriate in order to make them
appropriate and comparable to the initial Award, the performance goals, or the Performance Period.

 

At the discretion of the Committee, a Grantee
may be entitled to receive any dividends or Dividend Equivalents declared with respect to Shares deliverable in connection with
grants of Performance Units or Performance Shares which have been earned, but not yet delivered to the Grantee.

 

Article 9.

Deferred Stock and Restricted Stock Units

 

9.1           Grant
of Deferred Stock and Restricted Stock Units. Subject to and consistent with the provisions of the Plan, the Committee, at
any time and from time to time, may grant Deferred Stock and/or Restricted Stock Units to any Eligible Person, in such amount
and upon such terms as the Committee shall determine. Deferred Stock must conform in form and substance with applicable regulations
promulgated under Section 409A of the Code and with Article 15 to ensure that the Grantee is not subjected to tax penalties under
Section 409A of the Code with respect to such Deferred Stock.

 

    	- 16 -

    	 

    

 

9.2           Vesting
and Delivery. Delivery of Shares subject to a Deferred Stock grant will occur upon expiration of the deferral period or upon
the occurrence of one or more of the distribution events described in Section 409A(a)(2) of the Code as specified by the Committee
in the Grantee’s Award Agreement for the Award of Deferred Stock. Delivery of Shares subject to a grant of Restricted Stock
Units occurs no later than the 15th day of the third month following the end of the taxable year of the Grantee or
the fiscal year of the Company in which the Grantee’s rights under such Restricted Stock Units are no longer subject to
a substantial risk of forfeiture as defined in final regulations under Section 409A of the Code. In addition, an Award of Deferred
Stock may be subject to such substantial risk of forfeiture conditions as the Committee may impose, which conditions may lapse
at such times or upon the achievement of such objectives as the Committee shall determine at the time of grant or thereafter.
A Grantee awarded Deferred Stock or Restricted Stock Units will have no voting rights with respect to such Deferred Stock or Restricted
Stock Units prior to the delivery of Shares in settlement of such Deferred Stock and/or Restricted Stock Units. Unless otherwise
determined by the Committee, a Grantee will have the rights to receive Dividend Equivalents in respect of Deferred Stock and/or
Restricted Stock Units, which Dividend Equivalents shall be deemed reinvested in additional Shares of Deferred Stock or Restricted
Stock Units, as applicable. Unless otherwise determined by the Committee, to the extent that the Grantee has a Termination of
Affiliation while the Deferred Stock or Restricted Stock Units remains subject to a substantial risk of forfeiture, such Deferred
Shares or Restricted Stock Units shall be forfeited, unless the Committee determines that such substantial risk of forfeiture
shall lapse in the event of the Grantee’s Termination of Affiliation due to death, Disability, or involuntary termination
by the Company or an Affiliate without “cause.”

 

Article 10.

Dividend Equivalents

 

The Committee is authorized to grant Awards
of Dividend Equivalents alone or in conjunction with other Awards. The Committee may provide that Dividend Equivalents shall be
paid or distributed when accrued or shall be deemed to have been reinvested in additional Shares or additional Awards or otherwise
reinvested.

 

Article 11.

Bonus Shares

 

Subject to the terms of the Plan, the Committee
may grant Bonus Shares to any Eligible Person, in such amount and upon such terms and at any time and from time to time as shall
be determined by the Committee.

 

Article 12.

Other Stock-Based Awards

 

The Committee is authorized, subject to
limitations under applicable law, to grant such other Awards that are denominated or payable in, valued in whole or in part by
reference to, or otherwise based on, or related to, Shares, as deemed by the Committee to be consistent with the purposes of the
Plan, including Shares awarded which are not subject to any restrictions or conditions, convertible or exchangeable debt securities
or other rights convertible or exchangeable into Shares, and Awards valued by reference to the value of securities of or the performance
of specified Affiliates. Subject to and consistent with the provisions of the Plan, the Committee shall determine the terms and
conditions of such Awards. Except as provided by the Committee, Shares delivered pursuant to a purchase right granted under this
Article 12 shall be purchased for such consideration, paid for by such methods and in such forms, including cash, Shares, outstanding
Awards or other property, as the Committee shall determine.

 

Article 13.

Non-Employee Director Awards

 

Subject to the terms of the Plan, the Board
may grant Awards to any Non-Employee Director, in such amount and upon such terms and at any time and from time to time as shall
be determined by the full Board in its sole discretion.

 

    	- 17 -

    	 

    

 

Article 14.

Amendment, Modification, and Termination

 

14.1         Amendment,
Modification, and Termination. Subject to Section 14.2, the Board may, at any time and from time to time, alter, amend, suspend,
discontinue or terminate the Plan in whole or in part without the approval of the Company’s stockholders, except that (a)
any amendment or alteration shall be subject to the approval of the Company’s stockholders if such stockholder approval
is required by any federal or state law or regulation or the rules of any stock exchange or automated quotation system on which
the Shares may then be listed or quoted, and (b) the Board may otherwise, in its discretion, determine to submit other such amendments
or alterations to stockholders for approval.

 

14.2         Awards
Previously Granted. Except as otherwise specifically permitted in the Plan or an Award Agreement, no termination, amendment,
or modification of the Plan shall adversely affect in any material way any Award previously granted under the Plan, without the
written consent of the Grantee of such Award.

 

Article 15.

Compliance with Code Section 409A

 

15.1         Awards
Subject to Code Section 409A. The provisions of this Article 15 shall apply to any Award or portion thereof that is or becomes
deferred compensation subject to Code Section 409A (a “409A Award”), notwithstanding any provision to the contrary
contained in the Plan or the Award Agreement applicable to such Award.

 

15.2         Deferral
and/or Distribution Elections. Except as otherwise permitted or required by Code Section 409A, the following rules shall apply
to any deferral and/or elections as to the form or timing of distributions (each, an “Election”) that may be permitted
or required by the Committee with respect to a 409A Award:

 

(a)          Any
Election must be in writing and specify the amount being deferred, and the time and form of distribution (i.e., lump sum or installments)
as permitted by this Plan. An Election may but need not specify whether payment will be made in Shares or other property.

 

(b)          Any
Election shall become irrevocable as of the deadline specified by the Committee, which shall not be later than December 31 of the
year preceding the year in which services relating to the Award commence; provided, however, that if the Award qualifies as “performance-based
compensation” for purposes of Code Section 409A and is based on services performed over a period of at least twelve (12)
months, then the deadline may be no later than six (6) months prior to the end of such Performance Period.

 

(c)          Unless
otherwise provided by the Committee, an Election shall continue in effect until a written election to revoke or change such Election
is received by the Committee, prior to the last day for making an Election for the subsequent year.

 

15.3         Subsequent
Elections. Except as otherwise permitted or required by Code Section 409A, any 409A Award which permits a subsequent Election
to further defer the distribution or change the form of distribution shall comply with the following requirements:

 

(a)          No
subsequent Election may take effect until at least twelve (12) months after the date on which the subsequent Election is made;

 

(b)          Each
subsequent Election related to a distribution upon separation from service, a specified time, or a change in control as defined
in Section 15.4(e) must result in a delay of the distribution for a period of not less than five (5) years from the date such distribution
would otherwise have been made; and

 

    	- 18 -

    	 

    

  

(c)          No
subsequent Election related to a distribution to be made at a specified time or pursuant to a fixed schedule shall be made less
than twelve (12) months prior to the date the first scheduled payment would otherwise be made.

 

15.4         Distributions
Pursuant to Deferral Elections. Except as otherwise permitted or required by Code Section 409A, no distribution in settlement
of a 409A Award may commence earlier than:

 

(a)          Separation
from Service;

 

(b)          The
date the Participant becomes Disabled (as defined in Section 2.13(b);

 

(c)          The
Participant’s death;

 

(d)          A
specified time (or pursuant to a fixed schedule) that is either (i) specified by the Committee upon the grant of the Award and
set forth in the Award Agreement or (ii) specified by the Grantee in an Election complying with the requirements of Section 15.2
and/or 15.3, as applicable; or

 

(e)          A
change in control of the Company within the meaning of Treasury Regulation Section 1.409A-3(h)(5).

 

15.5         Six
Month Delay. Notwithstanding anything herein or in any Award Agreement or Election to the contrary, to the extent that distribution
of a 409A Award is triggered by a Grantee’s Separation from Service, if the Grantee is then a “specified employee”
(as defined in Treasury Regulation Section 1.409A-1(i)), no distribution may be made before the date which is six (6) months after
such Grantee’s Separation from Service, or, if earlier, the date of the Grantee’s death.

 

15.6         Death
or Disability. Unless the Award Agreement otherwise provides, if a Grantee dies or becomes Disabled before complete distribution
of amounts payable upon settlement of a 409A Award, such undistributed amounts, to the extent vested, shall be distributed as
provided in the Participants Election. If the Participant has made no Election with respect to distributions upon death or Disability,
all such distributions shall be paid in a lump sum within 90 days following the date of the Participant’s death or Disability.

 

15.7         No
Acceleration of Distributions. This Plan does not permit the acceleration of the time or schedule of any distribution under
a 409A Award, except as provided by Code Section 409A and/or applicable regulations or rulings issued thereunder.

 

Article 16.

Withholding

 

16.1         Required
Withholding.

 

(a)          The
Committee in its sole discretion may provide that when taxes are to be withheld in connection with the exercise of an Option, or
upon the lapse of restrictions on Restricted Shares, or upon the transfer of Shares, or upon payment of any other benefit or right
under this Plan (the date on which such exercise occurs or such restrictions lapse or such payment of any other benefit or right
occurs hereinafter referred to as the “Tax Date”), the Grantee may elect to make payment for the withholding of federal,
state and local taxes, including Social Security and Medicare (“FICA”) taxes by one or a combination of the following
methods:

 

(i)          payment
of an amount in cash equal to the amount to be withheld;

 

(ii)         delivering
part or all of the amount to be withheld in the form of Common Stock valued at its Fair Market Value on the Tax Date;

 

    	- 19 -

    	 

    

  

(iii)        requesting
the Company to withhold from those Shares that would otherwise be received upon exercise of the Option, upon the lapse of restrictions
on Restricted Stock, or upon the transfer of Shares, a number of Shares having a Fair Market Value on the Tax Date equal to the
amount to be withheld; or

 

(iv)        withholding
from any compensation otherwise due to the Grantee.

 

The Committee in its sole discretion
may provide that the maximum amount of tax withholding upon exercise of an Option, upon the lapse of restrictions on Restricted
Shares, or upon the transfer of Shares, to be satisfied by withholding Shares upon exercise of such Option, upon the lapse of restrictions
on Restricted Shares, or upon the transfer of Shares, pursuant to clause (iii) above shall not exceed the minimum amount of taxes,
including FICA taxes, required to be withheld under federal, state and local law. An election by Grantee under this subsection
is irrevocable. Any fractional share amount and any additional withholding not paid by the withholding or surrender of Shares must
be paid in cash. If no timely election is made, the Grantee must deliver cash to satisfy all tax withholding requirements.

 

(b)          Any
Grantee who makes a Disqualifying Disposition (as defined in Section 6.4(f)) or an election under Section 83(b) of the Code shall
remit to the Company an amount sufficient to satisfy all resulting tax withholding requirements in the same manner as set forth
in subsection (a).

 

16.2         Notification
under Code Section 83(b). If the Grantee, in connection with the exercise of any Option, or the grant of Restricted Shares,
makes the election permitted under Section 83(b) of the Code to include in such Grantee’s gross income in the year of transfer
the amounts specified in Section 83(b) of the Code, then such Grantee shall notify the Company of such election within 10 days
of filing the notice of the election with the Internal Revenue Service, in addition to any filing and notification required pursuant
to regulations issued under Section 83(b) of the Code. The Committee may, in connection with the grant of an Award or at any time
thereafter, prohibit a Grantee from making the election described above.

 

Article 17.

Additional Provisions

 

17.1         Successors.
All obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the
Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise
of all or substantially all of the business and/or assets of the Company.

 

17.2         Severability.
If any part of the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity
shall not invalidate any other part of the Plan. Any Section or part of a Section so declared to be unlawful or invalid shall,
if possible, be construed in a manner which will give effect to the terms of such Section or part of a Section to the fullest
extent possible while remaining lawful and valid.

 

17.3         Requirements
of Law. The granting of Awards and the delivery of Shares under the Plan shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. Notwithstanding
any provision of the Plan or any Award, Grantees shall not be entitled to exercise, or receive benefits under, any Award, and
the Company (and any Affiliate) shall not be obligated to deliver any Shares or deliver benefits to a Grantee, if such exercise
or delivery would constitute a violation by the Grantee or the Company of any applicable law or regulation.

 

    	- 20 -

    	 

    

 

17.4         Securities
Law Compliance.

 

(a)          If
the Committee deems it necessary to comply with any applicable securities law, or the requirements of any stock exchange upon which
Shares may be listed, the Committee may impose any restriction on Awards or Shares acquired pursuant to Awards under the Plan as
it may deem advisable. All certificates for Shares delivered under the Plan pursuant to any Award or the exercise thereof shall
be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations
and other requirements of the SEC, any stock exchange upon which Shares are then listed, any applicable securities law, and the
Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.
If so requested by the Company, the Grantee shall make a written representation to the Company that he or she will not sell or
offer to sell any Shares unless a registration statement shall be in effect with respect to such Shares under the Securities Act
of 1993, as amended, and any applicable state securities law or unless he or she shall have furnished to the Company, in form and
substance satisfactory to the Company, that such registration is not required.

 

(b)          If
the Committee determines that the exercise or nonforfeitability of, or delivery of benefits pursuant to, any Award would violate
any applicable provision of securities laws or the listing requirements of any national securities exchange or national market
system on which are listed any of the Company’s equity securities, then the Committee may postpone any such exercise, nonforfeitability
or delivery, as applicable, but the Company shall use all reasonable efforts to cause such exercise, nonforfeitability or delivery
to comply with all such provisions at the earliest practicable date.

 

17.5         Awards
Subject to Claw-Back Policies. Notwithstanding any provisions herein to the contrary, all Awards granted hereunder shall be
subject to the terms of any recoupment policy currently in effect or subsequently adopted by the Board to implement Section 304
of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley Act") or Section 10D of the Exchange Act (or with any amendment or
modification of such recoupment policy adopted by the Board) to the extent that such Award (whether or not previously exercised
or settled) or the value of such Award is required to be returned to the Company pursuant to the terms of such recoupment policy.

 

17.6         No
Rights as a Stockholder. No Grantee shall have any rights as a stockholder of the Company with respect to the Shares (other
than Restricted Shares) which may be deliverable upon exercise or payment of such Award until such Shares have been delivered
to him or her. Restricted Shares, whether held by a Grantee or in escrow by the Secretary of the Company, shall confer on the
Grantee all rights of a stockholder of the Company, except as otherwise provided in the Plan or Award Agreement. At the time of
a grant of Restricted Shares, the Committee may require the payment of cash dividends thereon to be deferred and, if the Committee
so determines, reinvested in additional Restricted Shares. Stock dividends and deferred cash dividends issued with respect to
Restricted Shares shall be subject to the same restrictions and other terms as apply to the Restricted Shares with respect to
which such dividends are issued. The Committee may in its discretion provide for payment of interest on deferred cash dividends.

 

17.7         Nature
of Payments. Unless otherwise specified in the Award Agreement, Awards shall be special incentive payments to the Grantee
and shall not be taken into account in computing the amount of salary or compensation of the Grantee for purposes of determining
any pension, retirement, death or other benefit under (a) any pension, retirement, profit sharing, bonus, insurance or other employee
benefit plan of the Company or any Affiliate, except as such plan shall otherwise expressly provide, or (b) any agreement between
(i) the Company or any Affiliate and (ii) the Grantee, except as such agreement shall otherwise expressly provide.

 

17.8         Non-Exclusivity
of Plan. Neither the adoption of the Plan by the Board nor its submission to the stockholders of the Company for approval
shall be construed as creating any limitations on the power of the Board to adopt such other compensatory arrangements for employees
or Non-Employee Directors as it may deem desirable.

 

    	- 21 -

    	 

    

 

17.9         Governing
Law. The Plan, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the State of
Delaware, other than its laws respecting choice of law.

 

17.10         Unfunded
Status of Awards; Creation of Trusts. The Plan is intended to constitute an “unfunded” plan for incentive and
deferred compensation. With respect to any payments not yet made to a Grantee pursuant to an Award, nothing contained in the Plan
or any Award Agreement shall give any such Grantee any rights that are greater than those of a general creditor of the Company;
provided, however, that the Committee may authorize the creation of trusts or make other arrangements to meet the Company’s
obligations under the Plan to deliver cash, Shares or other property pursuant to any Award which trusts or other arrangements
shall be consistent with the “unfunded” status of the Plan unless the Committee otherwise determines.

 

17.11         Affiliation.
Nothing in the Plan or an Award Agreement shall interfere with or limit in any way the right of the Company or any Affiliate to
terminate any Grantee’s employment or consulting contract at any time, nor confer upon any Grantee the right to continue
in the employ of or as an officer of or as a consultant to the Company or any Affiliate.

 

17.12         Participation.
No employee or officer shall have the right to be selected to receive an Award under this Plan or, having been so selected, to
be selected to receive a future Award.

 

17.13         Military
Service. Awards shall be administered in accordance with Section 414(u) of the Code and the Uniformed Services Employment
and Reemployment Rights Act of 1994.

 

17.14         Construction.
The following rules of construction will apply to the Plan: (a) the word “or” is disjunctive but not necessarily exclusive,
and (b) words in the singular include the plural, words in the plural include the singular, and words in the neuter gender include
the masculine and feminine genders and words in the masculine or feminine gender include the other neuter genders.

 

17.15         Headings.
The headings of articles and sections are included solely for convenience of reference, and if there is any conflict between such
headings and the text of this Plan, the text shall control.

 

17.16         Obligations.
Unless otherwise specified in the Award Agreement, the obligation to deliver, pay or transfer any amount of money or other property
pursuant to Awards under this Plan shall be the sole obligation of a Grantee’s employer; provided that the obligation to
deliver or transfer any Shares pursuant to Awards under this Plan shall be the sole obligation of the Company.

 

17.17         No
Right to Continue as Director. Nothing in the Plan or any Award Agreement shall confer upon any Non-Employee Director the
right to continue to serve as a director of the Company.

 

17.18         Stockholder
Approval. All Awards granted on or after the Effective Date and prior to the date the Company’s stockholders approve
the Plan are expressly conditioned upon and subject to approval of the Plan by the Company’s stockholders.

 

    	- 22 -FORM OF REPRESENTATIVE’S WARRANT

 

THE REGISTERED HOLDER
OF THIS WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS WARRANT EXCEPT AS HEREIN PROVIDED
AND THE REGISTERED HOLDER OF THIS WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS WARRANT FOR
A PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER THAN (I) AEGIS CAPITAL CORP. OR
AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF AEGIS CAPITAL CORP.
OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.

CNS RESPONSE, INC.

 

WARRANT TO PURCHASE

 

__________ SHARES

 

OF COMMON STOCK

 

(SUBJECT TO ADJUSTMENT)

 

 

THIS WARRANT IS NOT
EXERCISABLE PRIOR TO ________________ 2013 [DATE THAT IS ONE YEAR AFTER DATE OF PROSPECTUS]. VOID AFTER 5:00 P.M., EASTERN TIME,
___________________ 2017 [DATE THAT IS FIVE YEARS AFTER DATE OF PROSPECTUS].

 

1.Warrant.
THIS CERTIFIES THAT, in consideration of services provided by or on behalf of Aegis Capital Corp. (“Holder”),
as registered owner of this Warrant, CNS Response, Inc. (the “Company”), Holder is entitled, at any time or
from time to time from ________________ 2013 [DATE THAT IS ONE YEAR AFTER DATE OF PROSPECTUS] (the “Commencement Date”),
and at or before 5:00p.m., Eastern time, ___________________ 2017 [DATE THAT IS FIVE YEARS AFTER DATE OF PROSPECTUS] (the “Expiration Date”),
but not thereafter, to subscribe for, purchase and receive, in whole or in part, up to 125,000 shares of common stock of the Company,
par value $0.001 per share (the “Shares”), subject to adjustment as provided in Section 6 hereof. If the Expiration
Date is a day on which banking institutions are authorized by law to close, then this Warrant may be exercised on the next succeeding
day which is not such a day in accordance with the terms herein. During the period ending on the Expiration Date, the Company agrees
not to take any action that would terminate the Warrant. This Warrant is initially exercisable at $___ per Share (125% of the price
of the Shares sold in the Offering); provided, however, that upon the occurrence of any of the events specified in
Section 6 hereof, the rights granted by this Warrant, including the exercise price per Share and the number of Shares to be received
upon such exercise, shall be adjusted as therein specified. The term “Exercise Price” shall mean the initial
exercise price or the adjusted exercise price, depending on the context.

    	A-1

    	 

    

 

2.Exercise.

 

2.1Exercise
Form. In order to exercise this Warrant, the exercise form attached hereto as Exhibit A must be duly executed
and completed and delivered to the Company, together with this Warrant and payment of the Exercise Price for the Shares being purchased
payable in cash by wire transfer of immediately available funds to an account designated by the Company or by certified check or
official bank check. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern time,
on the Expiration Date, this Warrant shall become and be void without further force or effect, and all rights represented hereby
shall cease and expire.

 

2.2Cashless
Exercise.  In lieu of exercising this Warrant by payment of cash or check payable to the order of the Company pursuant
to Section 2.1 above, Holder may elect to receive the number of Shares equal to the value of this Warrant (or the portion thereof
being exercised), by surrender of this Warrant to the Company, together with the exercise form attached hereto, in which event
the issue to Holder, Shares in accordance with the following formula:

 

	X	=	Y(A-B)	 
	A	 
	Where,	X	=	The number of Shares to be issued to Holder;
	 	Y	=	The number of Shares for which the Warrant is being exercised;
	 	A	=	The fair market value of one Share; and
	 	B	=	The Exercise Price.
	 	 	 	 	 	 
	 	 	 	 	 	 

(a)           
For purposes of this Section 2.2, the fair market value of a Share is defined as follows:

 

(i)if the Company’s
common stock is traded on a securities exchange, the value shall be deemed to be the closing price on such exchange prior to the
exercise form being submitted in connection with the exercise of the Warrant; or

 

(ii)if
the Company’s common stock is actively traded over-the-counter, the value shall be deemed to be the closing bid prior to
the exercise form being submitted in connection with the exercise of the Warrant; if there is no active public market, the value
shall be the fair market value thereof, as determined in good faith by the Company’s Board of Directors.

 

2.3 Legend.
Each certificate for the securities purchased under this Warrant shall bear a legend as follows unless such securities have been
registered under the Securities Act of 1933, as amended (the “Act”):

 

“THE SHARES OF COMMON STOCK REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE
STATE SECURITIES LAW AND MAY NOT BE TRANSFERRED UNTIL: (a) A REGISTRATION STATEMENT UNDER THE ACT OR SUCH APPLICABLE STATE SECURITIES
LAWS SHALL HAVE BECOME EFFECTIVE WITH REGARD THERETO; OR (b) IN THE OPINION OF COUNSEL SATISFACTORY TO THE COMPANY, REGISTRATION
UNDER THE ACT OR SUCH APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER.”

    	A-2

    	 

    

 

3.Transfer.

 

3.1General Restrictions.
The registered Holder of this Warrant agrees by his, her or its acceptance hereof, that such Holder will not: (a) sell, transfer,
assign, pledge or hypothecate this Warrant for a period of one hundred eighty (180) days following the Effective Date to anyone
other than: (i) Aegis Capital Corp. (“Aegis”) or an underwriter or a selected dealer participating in the Offering,
or (ii) a bona fide officer or partner of Aegis or of any such underwriter or selected dealer, in each case in accordance with
FINRA Conduct Rule 5110(g)(1), or (b) cause this Warrant or the securities issuable hereunder to be the subject of any hedging,
short sale, derivative, put or call transaction that would result in the effective economic disposition of this Warrant or the
securities hereunder, except as provided for in FINRA Rule 5110(g)(2). On and after 180 days after the Effective Date, transfers
to others may be made subject to compliance with or exemptions from applicable securities laws. In order to make any permitted
assignment, the Holder must deliver to the Company the assignment form attached hereto as Exhibit B duly executed
and completed, together with the Warrant and payment of all transfer taxes, if any, payable in connection therewith. The Company
shall within five (5) Business Days transfer this Warrant on the books of the Company and shall execute and deliver a new Warrant
or Warrants of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate number of Shares
purchasable hereunder or such portion of such number as shall be contemplated by any such assignment.

 

3.2 Restrictions
Imposed by the Act. The securities evidenced by this Warrant shall not be transferred unless and until: (i) the Company has
received the opinion of counsel for the Holder that the securities may be transferred pursuant to an exemption from registration
under the Act and applicable state securities laws, the availability of which is established to the reasonable satisfaction of
the Company (the Company hereby agreeing that the opinion of Gersten Savage LLP shall be deemed satisfactory evidence of the availability
of an exemption), or (ii) a registration statement or a post-effective amendment to the Registration Statement relating to the
offer and sale of such securities has been filed by the Company and declared effective by the U.S. Securities and Exchange Commission
(the “Commission”) and compliance with applicable state securities law has been established.

 

4.Registration Rights.

 

4.1Demand Registration.

 

4.1.1Grant of
Right. The Company, upon written demand (a “Demand Notice”) of the Holder(s) of at least 51% of the Warrants and/or
the underlying Shares (“Majority Holders”), agrees to register, on one occasion, and prior to ___________________ 2017
[DATE THAT IS FIVE YEARS AFTER DATE OF PROSPECTUS] all or any portion of the Shares underlying the Warrants (collectively, the
“Registrable Securities”). On such occasion, the Company will file a registration statement with the SEC covering
the Registrable Securities within sixty (60) days after receipt of a Demand Notice and use its reasonable best efforts to have
the registration statement declared effective promptly thereafter, subject to compliance with review by the SEC; provided,
however, that the Company shall not be required to comply with a Demand Notice if the Company has filed a registration statement
with respect to which the Holder is entitled to piggyback registration rights pursuant to Section 4.2 hereof and either: (i) the
Holder has elected to participate in the offering covered by such registration statement or (ii) if such registration statement
relates to an underwritten primary offering of securities of the Company, until the offering covered by such registration statement
has been withdrawn or until thirty (30) days after such offering is consummated. The demand for registration may be made at any
time during a period of four (4) years beginning one (1) year after the Closing Date. The Company covenants and agrees to give
written notice of its receipt of any Demand Notice by any Holder(s) to all other registered Holders of the Warrants and/or the
Registrable Securities within ten (10) days after the date of the receipt of any such Demand Notice.

    	A-3

    	 

    

 

4.1.2 Terms.
The Company shall bear all fees and expenses attendant to the registration of the Registrable Securities pursuant to Section 4.1.1,
but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to
represent them in connection with the sale of the Registrable Securities. The Company agrees to use its reasonable best efforts
to cause the filing required herein to become effective promptly and to qualify or register the Registrable Securities in such
States as are reasonably requested by the Holder(s); provided, however, that in no event shall the Company be required
to register the Registrable Securities in a State in which such registration would cause: (i) the Company to be obligated to register
or license to do business in such State or submit to general service of process in such State, or (ii) the principal shareholders
of the Company to be obligated to escrow their shares of capital stock of the Company. The Company shall cause any registration
statement filed pursuant to the demand right granted under Section 4.1.1 to remain effective for a period of at least twelve (12)
consecutive months after the date that the Holders of the Registrable Securities covered by such registration statement are first
given the opportunity to sell all of such securities. The Holders shall only use the prospectuses provided by the Company to sell
the shares covered by such registration statement, and will immediately cease to use any prospectus furnished by the Company if
the Company advises the Holder that such prospectus may no longer be used due to a material misstatement or omission.

 

4.2“Piggy-Back”
Registration.

 

4.2.1Grant of
Right. In addition to the demand right of registration described in Section 4.1 hereof, the Holder shall have the right, for
a period of four (4) years commencing one (1) year after the Closing Date, to include the Registrable Securities as part of any
other registration of securities filed by the Company (other than in connection with a transaction contemplated by Rule 145 (a)
promulgated under the Act or pursuant to Form S-8 or any equivalent form); provided, however, that if, solely in
connection with any primary underwritten public offering for the account of the Company, the managing underwriter(s) thereof shall,
in its reasonable discretion, impose a limitation on the number of shares of Common Stock which may be included in the Registration
Statement because, in such underwriter(s)' judgment, marketing or other factors dictate such limitation is necessary to facilitate
public distribution, then the Company shall be obligated to include in such Registration Statement only such limited portion of
the Registrable Securities with respect to which the Holder requested inclusion hereunder as the underwriter shall reasonably permit.
Any exclusion of Registrable Securities shall be made pro rata among the Holders seeking to include Registrable Securities in proportion
to the number of Registrable Securities sought to be included by such Holders; provided, however, that the Company
shall not exclude any Registrable Securities unless the Company has first excluded all outstanding securities, the holders of which
are not entitled to inclusion of such securities in such Registration Statement or are not entitled to pro rata inclusion with
the Registrable Securities.

    	A-4

    	 

    

 

4.2.2 Terms.
The Company shall bear all fees and expenses attendant to registering the Registrable Securities pursuant to Section 4.2.1 hereof,
but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to
represent them in connection with the sale of the Registrable Securities. In the event of such a proposed registration, the Company
shall furnish the then Holders of outstanding Registrable Securities with not less than thirty (30) days written notice prior to
the proposed date of filing of such registration statement. Such notice to the Holders shall continue to be given for each registration
statement filed by the Company until such time as all of the Registrable Securities have been sold by the Holder. The holders of
the Registrable Securities shall exercise the “piggy-back” rights provided for herein by giving written. notice, within
ten (10) days of the receipt of the Company's notice of its intention to file a registration statement.

 

4.3General Terms.

 

4.3.1Indemnification.
The Company shall indemnify the Holder(s) of the Registrable Securities to be sold pursuant to any registration statement hereunder
and each person, if any, who controls such Holders within the meaning of Section 15 of the Act or Section 20 (a) of the Securities
Exchange Act of 1934, as amended (“Exchange Act”), against all loss, claim, damage, expense or liability (including
all reasonable attorneys' fees and other expenses reasonably incurred in investigating, preparing or defending against any claim
whatsoever) to which any of them may become subject under the Act, the Exchange Act or otherwise, arising from such registration
statement but only to the same extent and with the same effect as the provisions pursuant to which the Company has agreed to indemnify
the Underwriters contained in Section 7.1 of the Underwriting Agreement between the Underwriters and the Company, dated as of April
___, 2012. The Holder(s) of the Registrable Securities to be sold pursuant to such registration statement, and their successors
and assigns, shall severally, and not jointly, indemnify the Company, against all loss, claim, damage, expense or liability (including
all reasonable attorneys' fees and other expenses reasonably incurred in investigating, preparing or defending against any claim
whatsoever) to which they may become subject under the Act, the Exchange Act or otherwise, arising from information furnished by
or on behalf of such Holders, or their successors or assigns, in writing, for specific inclusion in such registration statement
to the same extent and with the same effect as the provisions contained in Section 5.2 of the Underwriting Agreement pursuant to
which the Underwriters have agreed to indemnify the Company.

 

4.3.2 Exercise
of Warrants. Nothing contained in this Warrant shall be construed as requiring the Holder(s) to exercise their Warrants prior
to or after the initial filing of any registration statement or the effectiveness thereof.

 

4.3.3 Documents
Delivered to Holders. The Company shall furnish to each Holder participating in any of the foregoing offerings and to each
underwriter of any such offering, if any, a signed counterpart, addressed to such Holder or underwriter, of: (i) an opinion of
counsel to the Company, dated the effective date of such registration statement (and, if such registration includes an underwritten
public offering, an opinion dated the date of the closing under any underwriting agreement related thereto), and (ii) a “cold
comfort” letter dated the effective date of such registration statement (and, if such registration includes an underwritten
public offering, a letter dated the date of the closing under the underwriting agreement) signed by the independent registered
public accounting firm which has issued a report on the Company's financial statements included in such registration statement,
in each case covering substantially the same matters with respect to such registration statement (and the prospectus included therein)
and, in the case of such accountants' letter, with respect to events subsequent to the date of such financial statements, as are
customarily covered in opinions of issuer’s counsel and in accountants' letters delivered to underwriters in underwritten
public offerings of securities. The Company shall also deliver promptly to each Holder participating in the offering requesting
the correspondence and memoranda described below and to the managing underwriter, if any, copies of all correspondence between
the SEC and the Company, its counsel or auditors and all memoranda relating to discussions with the SEC or its staff with respect
to the registration statement and permit each Holder and underwriter to do such investigation, upon reasonable advance notice,
with respect to information contained in or omitted from the registration statement as it deems reasonably necessary to comply
with applicable securities laws or rules of FINRA. Such investigation shall include access to books, records and properties and
opportunities to discuss the business of the Company with its officers and independent auditors, all to such reasonable extent
and at such reasonable times as any such Holder shall reasonably request.

    	A-5

    	 

    

 

4.3.4 Underwriting
Agreement. The Company shall enter into an underwriting agreement with the managing underwriter(s), if any, selected by any
Holders whose Registrable Securities are being registered pursuant to this Section 4, which managing underwriter shall be reasonably
satisfactory to the Company. Such agreement shall be reasonably satisfactory in form and substance to the Company, each Holder
and such managing underwriters, and shall contain such representations, warranties and covenants by the Company and such other
terms as are customarily contained in agreements of that type used by the managing underwriter. The Holders shall be parties to
any underwriting agreement relating to an underwritten sale of their Registrable Securities and may, at their option, require that
any or all the representations, warranties and covenants of the Company to or for the benefit of such underwriters shall also be
made to and for the benefit of such Holders. Such Holders shall not be required to make any representations or warranties to or
agreements with the Company or the underwriters except as they may relate to such Holders, their Shares and their intended methods
of distribution.

 

4.3.5 Documents
to be Delivered by Holder(s). Each of the Holder(s) participating in any of the foregoing offerings shall furnish to the Company
a completed and executed questionnaire provided by the Company requesting information customarily sought of selling security holders.

 

4.3.6 Damages.
Should the registration or the effectiveness thereof required by Sections 4.1 and 4.2 hereof be delayed by the Company or the Company
otherwise fails to comply with such provisions, the Holder(s) shall, in addition to any other legal or other relief available to
the Holder(s), be entitled to obtain specific performance or other equitable (including injunctive) relief against the threatened
breach of such provisions or the continuation of any such breach, without the necessity of proving actual damages and without the
necessity of posting bond or other security.

 

5.New Warrants to be Issued.

 

5.1Partial Exercise
or Transfer. Subject to the restrictions in Section 3 hereof, this Warrant may be exercised or assigned in whole or in part.
In the event of the exercise or assignment hereof in part only, upon surrender of this Warrant for cancellation, together with
the duly executed exercise or assignment form and funds sufficient to pay any Exercise Price and/or transfer tax if exercised pursuant
to Section 2.1 hereto, the Company shall cause to be delivered to the Holder without charge a new Warrant of like tenor to this
Warrant in the name of the Holder evidencing the right of the Holder to purchase the number of Shares purchasable hereunder as
to which this Warrant has not been exercised or assigned.

 

5.2 Lost Certificate.
Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Warrant and of
reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and deliver a new Warrant of like tenor
and date. Any such new Warrant executed and delivered as a result of such loss, theft, mutilation or destruction shall constitute
a substitute contractual obligation on the part of the Company.

    	A-6

    	 

    

 

6.Adjustments.

 

6.1Adjustments
to Exercise Price and Number of Securities. The Exercise Price and the number of Shares underlying the Warrant shall be subject
to adjustment from time to time as hereinafter set forth:

6.1.1Share Dividends;
Split Ups. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding Shares
is increased by a stock dividend payable in Shares or by a split up of Shares or other similar event, then, on the effective day
thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding shares, and
the Exercise Price shall be proportionately increased.

 

6.1.2 Aggregation
of Shares. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding Shares
is decreased by a consolidation, combination or reclassification of Shares or other similar event, then, on the effective date
thereof, the number of Shares purchasable hereunder shall be decreased in proportion to such decrease in outstanding shares.

 

6.1.3 Replacement
of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding Shares other than
a change covered by Section 6.1.1 or 6.1.2 hereof or that solely affects the par value of such Shares, or in the case of any share
reconstruction or amalgamation or consolidation of the Company with or into another corporation (other than a consolidation or
share reconstruction or amalgamation in which the Company is the continuing corporation and that does not result in any reclassification
or reorganization of the outstanding Shares), or in the case of any sale or conveyance to another corporation or entity of the
property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the Holder
of this Warrant shall have the right thereafter (until the expiration of the right of exercise of this Warrant) to receive upon
the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such event, the kind and amount
of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, share
reconstruction or amalgamation, or consolidation, or upon a dissolution following any such sale or transfer, by a Holder of the
number of Shares of the Company obtainable upon exercise of this Warrant immediately prior to such event; and if any reclassification
also results in a change in Shares covered by Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to Sections 6.1.1,
6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall similarly apply to successive reclassifications, reorganizations,
share reconstructions or amalgamations, or consolidations, sales or other transfers.

 

6.1.4 Changes
in Form of Warrant. This form of Warrant need not be changed because of any change pursuant to this Section 6.1, and Warrants
issued after such change may state the same Exercise Price and the same number of Shares as are stated in the Warrants initially
issued pursuant to this Agreement. The acceptance by any Holder of the issuance of new Warrants reflecting a required or permissive
change shall not be deemed to waive any rights to an adjustment occurring after the Commencement Date or the computation thereof.

 

6.2 Substitute
Warrant. In case of any consolidation of the Company with, or share reconstruction or amalgamation of the Company with or into,
another corporation (other than a consolidation or share reconstruction or amalgamation which does not result in any reclassification
or change of the outstanding Shares), the corporation formed by such consolidation or share reconstruction or amalgamation shall
execute and deliver to the Holder a supplemental Warrant providing that the holder of each Warrant then outstanding or to be outstanding
shall have the right thereafter (until the stated expiration of such Warrant) to receive, upon exercise of such Warrant, the kind
and amount of shares of stock and other securities and property receivable upon such consolidation or share reconstruction or amalgamation,
by a holder of the number of Shares of the Company for which such Warrant might have been exercised immediately prior to such consolidation,
share reconstruction or amalgamation, sale or transfer. Such supplemental Warrant shall provide for adjustments which shall be
identical to the adjustments provided for in this Section 6. The above provision of this Section shall similarly apply to successive
consolidations or share reconstructions or amalgamations.

    	A-7

    	 

    

 

6.3 Elimination of Fractional
Interests. The Company shall not be required to issue certificates representing fractions of Shares upon the exercise of the
Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being the intent of the parties
that all fractional interests shall be eliminated by rounding any fraction up or down, as the case may be, to the nearest whole
number of Shares or other securities, properties or rights.

 

7. Reservation and Listing.
The Company shall at all times reserve and keep available out of its authorized Shares, solely for the purpose of issuance upon
exercise of the Warrants, such number of Shares or other securities, properties or rights as shall be issuable upon the exercise
thereof. The Company covenants and agrees that, upon exercise of the Warrants and payment of the Exercise Price therefor, in accordance
with the terms hereby, all Shares and other securities issuable upon such exercise shall be duly and validly issued, fully paid
and non-assessable and not subject to preemptive rights of any shareholder. The Company further covenants and agrees that upon
exercise of the Warrants and payment of the exercise price therefor, all Shares and other securities issuable upon such exercise
shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder. As long
as the Warrants shall be outstanding, the Company shall use its commercially reasonable efforts to cause all Shares issuable upon
exercise of the Warrants to be listed (subject to official notice of issuance) on all national securities exchanges (or, if applicable,
on the OTC Bulletin Board or any successor trading market) on which the Shares issued to the public in the Offering may then be
listed and/or quoted.

 

8.Certain Notice Requirements.

 

8.1Holder's
Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holders the right to vote or consent or to
receive notice as a shareholder for the election of directors or any other matter, or as having any rights whatsoever as a shareholder
of the Company. If, however, at any time prior to the expiration of the Warrants and their exercise, any of the events described
in Section 8.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event at least fifteen
days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the shareholders
entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled to vote on such
proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of the closing of
the transfer books, as the case may be. Notwithstanding the foregoing, the Company shall deliver to each Holder a copy of each
notice given to the other shareholders of the Company at the same time and in the same manner that such notice is given to the
shareholders.

 

8.2 Events Requiring
Notice. The Company shall be required to give the notice described in this Section 8 upon one or more of the following events:
(i) if the Company shall take a record of the holders of its Shares for the purpose of entitling them to receive a dividend or
distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings,
as indicated by the accounting treatment of such dividend or distribution on the books of the Company, (ii) the Company shall offer
to all the holders of its Shares any additional shares of capital stock of the Company or securities convertible into or exchangeable
for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor, or (iii) a dissolution, liquidation
or winding up of the Company (other than in connection with a consolidation or share reconstruction or amalgamation) or a sale
of all or substantially all of its property, assets and business shall be proposed.

    	A-8

    	 

    

 

8.3 Notice of
Change in Exercise Price. The Company shall, promptly after an event requiring a change in the Exercise Price pursuant to Section
6 hereof, send notice to the Holders of such event and change (“Price Notice”). The Price Notice shall describe
the event causing the change and the method of calculating same and shall be certified as being true and accurate by the Company's
Chief Financial Officer.

 

8.4 Transmittal
of Notices. All notices, requests, consents and other communications under this Warrant shall be in writing and shall be deemed
to have been duly made when hand delivered, or mailed by express mail or private courier service: (i) if to the registered Holder
of the Warrant, to the address of such Holder as shown on the books of the Company, or (ii) if to the Company, to following address
or to such other address as the Company may designate by notice to the Holders:

 

If to the Holder:

 

Aegis Capital Corp.

810 Seventh Avenue, 11th Floor

New York, New York 10019

Attn: Mr. David Bocchi, Managing Director of

Investment Banking

Fax No.: (212) 813-1047

Copy to:

 

Gersten Savage LLP

600 Lexington Ave.

New York, NY 10022

Attention: David Danovitch Esq.

Fax No: (212) 980-5192

If to the Company:

CNS Response, Inc.,

85 Enterprise, Suite 410

Aliso Viejo, CA 9265

Attention: Chief Executive Officer and Chief Financial Officer

Fax No.: (866) 294-2611

Copy to:

 

SNR Denton, LLP

Two World Financial Center

New York, New York 10281,

Attention: Jeffrey Baumel, Esq.

Fax No.: (212) 202-7735

    	A-9

    	 

    

 

9.Miscellaneous.

 

9.1Amendments.
The Company and Aegis may from time to time supplement or amend this Warrant without the approval of any of the Holders in order
to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent with any other
provisions herein, or to make any other provisions in regard to matters or questions arising hereunder that the Company and Aegis
may deem necessary or desirable and that the Company and Aegis deem shall not adversely affect the interest of the Holders. All
other modifications or amendments shall require the written consent of and be signed by the party against whom enforcement of the
modification or amendment is sought.

 

9.2 Headings.
The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the
meaning or interpretation of any of the terms or provisions of this Warrant.

 

9.3. Entire
Agreement. This Warrant (together with the other agreements and documents being delivered pursuant to or in connection with
this Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes
all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.

 

9.4 Binding
Effect. This Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and their permitted
assignees, respective successors, legal representative and assigns, and no other person shall have or be construed to have any
legal or equitable right, remedy or claim under or in respect of or by virtue of this Warrant or any provisions herein contained.

 

9.5 Governing
Law; Submission to Jurisdiction. This Warrant shall be governed by and construed and enforced in accordance with the laws of
the State of New York, without giving effect to conflict of laws principles thereof. The Company hereby agrees that any action,
proceeding or claim against it arising out of, or relating in any way to this Warrant shall be brought and enforced in the New
York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, and irrevocably
submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive
jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served upon the Company may be
served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to
it at the address set forth in Section 8 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon
the Company in any action, proceeding or claim. The Company and the Holder agree that the prevailing party(ies) in any such action
shall be entitled to recover from the other party(ies) all of its reasonable attorneys' fees and expenses relating to such action
or proceeding and/or incurred in connection with the preparation therefor.

 

9.6 Waiver,
etc. The failure of the Company or the Holder to at any time enforce any of the provisions of this Warrant shall not be deemed
or construed to be a waiver of any such provision, nor to in any way affect the validity of this Warrant or any provision hereof
or the right of the Company or any Holder to thereafter enforce each and every provision of this Warrant. No waiver of any breach,
non-compliance or non-fulfillment of any of the provisions of this Warrant shall be effective unless set forth in a written instrument
executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such breach,
non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance
or non-fulfillment.

    	A-10

    	 

    

 

9.7 Execution
in Counterparts. This Warrant may be executed in one or more counterparts, and by the different parties hereto in separate
counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same
agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto and delivered
to each of the other parties hereto. Such counterparts may be delivered by facsimile transmission or other electronic transmission.

 

 

[Remainder of page intentionally
left blank]

    	A-11

    	 

    

 

IN WITNESS WHEREOF, the Company has caused
this Warrant to be signed by its duly authorized officer as of the ____ day of _______, 2011.

 

 

	 	CNS Response, Inc.
	 	 	 
	 	 	 
	 	By:	_________________________________
	 	 	Name:
	 	 	Title:

 

    	A-12

    	 

    

 

EXHIBIT A

NOTICE OF EXCERCISE

 

 

 

Date: __________, 20___

 

 

 

The undersigned
hereby elects irrevocably to exercise the Warrant for ______ Shares of CNS Response, Inc. and hereby makes payment of $____ (at
the rate of $____ per Share) in payment of the Exercise Price pursuant thereto. Please issue the Shares as to which this Warrant
is exercised in accordance with the instructions given below and, if applicable, a new Warrant representing the number of Shares
for which this Warrant has not been exercised.

 

or

 

The undersigned
hereby elects irrevocably to convert its right to purchase ___ Shares under the Warrant for ______ Shares, as determined in accordance
with the following formula: 

 

	 	 	 	     Y(A-B)
	 	X	=	          A
	 	 	 	 
	 	 	 	 
	       Where,	  X	=	The number of Shares to be issued to Holder;
	 	  Y	=	The number of Shares for which the Warrant is being exercised;
	 	  A	=	The fair market value of one Share which is equal to $_____; and
	 	  B	=	The Exercise Price which is equal to $______ per share

 

The undersigned
agrees and acknowledges that the calculation set forth above is subject to confirmation by the Company and any disagreement with
respect to the calculation shall be resolved by the Company in its sole discretion.

 

Please issue
the Shares as to which this Warrant is exercised in accordance with the instructions given below and, if applicable, a new Warrant
representing the number of Shares for which this Warrant has not been converted.

 

 

[____________]

 

By:_____________________

Name:

Title:

 

NOTICE: The signature
to this form must correspond with the name as written upon the face of the Warrant without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on
a registered national securities exchange.

 

    	A-13

    	 

    

 

EXHIBIT B

FORM OF ASSIGNMENT

 

 

FOR VALUE RECEIVED, __________________
does hereby sell, assign and transfer unto the right to purchase shares of CNS Response, Inc. (the “Company”)
evidenced by the Warrant and does hereby authorize the Company to transfer such right on the books of the Company.

 

 

	Name of Assignee	Address	Number of Shares

 

 

 

 

and does hereby irrevocably constitute
and appoint __________________________ Attorney to make such transfer on the books of CNS Response, Inc., maintained for this purpose,
with full power of substitution in the premises.

 

	Dated:		 	 	 
	 	 	 	 	 
	 	 	 		
	 	 	 	(Signature)
	 	 	 	 	 
	 	 	 	 	 
	 	 	 		
	 	 	 	(Witness)

 

 

The undersigned Assignee
of the Warrant hereby makes to CNS Response, Inc., as of the date hereof, with respect to the Assignee, all of the representations
and warranties made by the Holder, and the undersigned Assignee agrees to be bound by all the terms and conditions of the Warrant.

 

 

	Dated: 		 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 		
	 	 	 	(Signature)	 

 

 

 

NOTICE: The signature
to this form must correspond with the name as written upon the face of the within Warrant without alteration or enlargement or
any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership
on a registered national securities exchange.

 

    	A-14

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