Document:

Exhibit 10.1

 

EXECUTION VERSION

 

 

AMENDMENT
TO SECOND AMENDED AND RESTATED 

CONVERTIBLE
PROMISSORY NOTE

 

This Amendment (this
 “Amendment”) to the Second Amended and Restated Convertible Promissory Note dated July 8, 2019 (the “Note”),
is made and entered into as of August 22, 2019, among XpresSpa Holdings, LLC, a Delaware limited liability company (the “Company”),
and B3D, LLC, a North Carolina limited liability company (the “Lender”). Capitalized terms used herein but not
defined shall have the meaning ascribed to such terms in the Note.

 

RECITALS:

 

WHEREAS, the
Company and the Lender are parties to that certain Credit Agreement dated April 22, 2015, as amended by the First Amendment to
Credit Agreement and Waiver dated as of August 8, 2016, and as amended by a Second Amendment to Credit Agreement dated as of May
10, 2017, and as amended by a Third Amendment to Credit Agreement dated as of May 11, 2018, and as amended by a Fourth Amendment
to Credit Agreement dated as of July 8, 2019 (as further amended, restated, amended and restated, extended, renewed, replaced,
supplemented or otherwise modified from time to time, collectively, the “Credit Agreement”); and

 

WHEREAS, the
Note was issued by the Company pursuant to the Credit Agreement and is guaranteed by the Company’s parent, XpresSpa Group,
Inc. (the “Parent”) and by certain of the Company’s subsidiaries (“Subsidiary Guarantors”);
and

 

WHEREAS, the
Company and the Lender now desire to amend certain terms of the Note.

 

NOW, THEREFORE,
in consideration of the premises and covenants contained herein, the parties agree as follows:

 

1.       Amendments.
The Note shall be amended as follows:

 

a.       Section
2(c) shall be amended by deleting the third (3rd) sentence thereof and replacing it with the following:

 

“The Interest Share Amount
will be determined by dividing the amount of the Share Portion set forth in the Company’s exercise notice by a price per
share of Common Stock equal to ninety percent (90%) of the VWAP on the Trading Date immediately preceding the date of the exercise
notice (the “Initial Interest Share Price”).”

 

     

     

    

 

		b.	Section 7(d) of the Note shall be hereby added as follows:

 

“(d) Lender’s
Conversion Limitations. The Company shall not effect, and not permit the Parent to effect the conversion, and Lender shall
not have the right to convert, any portion of this Note, to the extent that after giving effect to the conversion set forth on
the applicable Notice of Conversion, the Lender (together with the Lender’s Affiliates, and any Persons acting as a group
together with the Lender or any of the Lender’s Affiliates, collectively, together with Lender, the “Lender Group”)
would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence,
the number of shares of Common Stock beneficially owned by the Lender Group shall include the number of shares of Common Stock
issuable upon conversion of this Note with respect to which such determination is being made, but shall exclude the number of shares
of Common Stock which are issuable upon (i) conversion of the remaining, unconverted principal amount of this Note beneficially
owned by the Lender Group, and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of
the Parent subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by
the Lender Group. Except as set forth in the preceding sentence, for purposes of this Section 7(d), beneficial ownership shall
be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the
extent that the limitation contained in this Section 7(d) applies, the determination of whether this Note is convertible (in relation
to other securities owned by the Lender Group) and of which principal amount of this Note is convertible shall be in the sole discretion
of the Lender, and the submission of a Notice of Conversion shall be deemed to be the Lender’s determination of whether this
Note may be converted (in relation to other securities owned by the Lender Group) and which principal amount of this Note is convertible,
in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, the Lender will be deemed
to represent to the Company and Parent each time it delivers a Notice of Conversion that such Notice of Conversion has not violated
the restrictions set forth in this paragraph and neither the Company nor Parent shall have any obligation to verify or confirm
the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined
in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this
Section 7(d), in determining the number of outstanding shares of Common Stock, the Lender may rely on the number of outstanding
shares of Common Stock as stated in the most recent of the following: (i) Parent’s most recent periodic or annual report
filed with the Securities and Exchange Commission, as the case may be, (ii) a more recent public announcement by Parent, or (iii)
a more recent written notice by Parent or Parent’s transfer agent setting forth the number of shares of Common Stock outstanding.
Upon the written or oral request of Lender, Parent shall within two Trading Days confirm orally and in writing to the Lender the
number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined
after giving effect to the conversion or exercise of securities of Lender, including this Note, by the Lender Group since the date
as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall
be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common
Stock issuable upon conversion of this Note held by the Lender. The Lender may decrease the Beneficial Ownership Limitation at
any time and the Lender, upon not less than 61 days’ prior notice to the Company, may increase the Beneficial Ownership Limitation
provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding
immediately after giving effect to the issuance of shares of Common Stock upon conversion of this Note held by the Lender and the
Beneficial Ownership Limitation provisions of this Section 7(d) shall continue to apply. Any such increase will not be effective
until the 61st day after such notice is delivered to the Company and will apply only to the Lender Group, in the aggregate, and
shall not apply to any other Person. The Beneficial Ownership Limitation provisions of this paragraph shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this Section 7(d) to the extent necessary to correct this paragraph
(or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein
or to make changes or supplements necessary or desirable to properly give effect to such limitation. No prior inability to convert
any portion of this Note pursuant to this Section 7(d) shall have any effect on the applicability of the provisions hereof with
respect to any subsequent determination of ability to convert. The limitations contained in this paragraph shall apply to a successor
holder of this Note. Notwithstanding anything herein to the contrary, in no event shall this Section 7(d) in any way limit the
Company’s ability to pay any interest payable pursuant to this Note in shares of Common Stock pursuant to Section 2(c) herein;
provided that the shares of Common Stock in excess of the Beneficial Ownership Limitation that Lender would be required
to sell in accordance with the following sentence are either (i) registered in accordance with the Registration Rights Agreement
dated July 8, 2019 between Lender and Parent, or (ii) are eligible for resale pursuant to Rule 144 of the Securities Act and, in
each case, such sale would not otherwise be prohibited under applicable law; and further, provided, however, that to the
extent that the Lender Group is unable to sell the requisite number of shares in a timely manner (as provided in the following
sentence), then the time for issuance of shares of Common Stock pursuant to Section 2(c) hereof will be reasonably extended until
such shares are sold and neither the Company nor Parent shall be considered to be in default pursuant to the terms of this Note
by virtue of such extension of time for issuance of such shares pursuant to Section 2(c) hereof and this Section 7(d). In the event
that the issuance of the Interest Share Amount or the Make Whole Shares to the Lender Group would cause the Lender Group to beneficially
own shares of Common Stock in excess of the Beneficial Ownership Limitation, the Lender hereby agrees to dispose of a sufficient
number of shares of Common Stock prior to the receipt of such Interest Share Amount or Make Whole Shares, as the case may be, such
that upon receipt of the Interest Share Amount or Make Whole Shares, as the case may be, the Lender Group would not beneficially
own in excess of the Beneficial Ownership Limitation.”

 

    	 	2	 

     

    

 

2.       Except
as explicitly modified herein, the Note shall remain in full force and effect.

 

3.       This
Amendment shall be governed in accordance with terms of the Note.

 

4.       This
Amendment may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement
and shall become effective when counterparts have been signed by the Company and the Lender, it being understood that the parties
need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery
of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature
page were an original thereof.

 

[REST OF THIS PAGE LEFT INTENTIONALLY
BLANK]

 

    	 	3	 

     

    

 

IN WITNESS WHEREOF,
the Company and the Lender have executed this Amendment as of the date first above written.

  

 

COMPANY

  

 

XPRESSPA HOLDINGS, LLC

  

 

By:/s/ Douglas Satzman

Name:Douglas Satzman

Title:Chief Executive Officer

 

 

 

 

[Parent signature page follows] 

 

    	 	4	 

     

    

  

RATIFICATION AND ACKNOWLEDGMENT

 

 

XpresSpa Group, Inc., a Delaware
corporation (the “Parent”) by signing below, hereby consents to the foregoing Amendment and represents and warrants
to Lender that Parent assumes and agrees to be bound by all obligations and provisions pertaining to Parent under the Note, as
amended, and hereby reaffirms and ratifies the Parent Guaranty, the Pledge Agreement, the Registration Rights Agreement and all
other Loan Documents to which it is a party, all of which are held by Lender and which shall in all respects remain in full force
and effect and guaranty and secure the Borrower’s obligations under the Credit Agreement, and the Note.

 

IN WITNESS WHEREOF,
the Parent has executed this Amendment as of the date first above written.

  

 

XPRESSPA GROUP, INC.

  

 

/s/ Douglas Satzman

Name:Douglas Satzman

Title:Chief Executive Officer

  

 

 

 

 

[Subsidiary Guarantors signature page
follows] 

 

    	 	5	 

     

    

  

RATIFICATION AND ACKNOWLEDGMENT

 

Each of the undersigned
New York limited liability companies (the “Subsidiary Guarantors” and each a “Subsidiary Guarantor”)
hereby consents hereby consents to the foregoing Amendment and hereby reaffirms and ratifies its respective Subsidiary Guaranty,
Security Agreement and all other Loan Documents to which it is a party, all of which are held by Lender and shall in all respects
remain in full force and effect.

 

 

IN WITNESS WHEREOF,
the Subsidiary Guarantors have executed this Amendment as of the date first above written.

  

Spa Products Import & Distribution
Co., LLC

Spa Products Wholesaling, LLC

XpresSpa at Term. 4 JFK, LLC

XpresSpa Austin Airport, LLC

XpresSpa DFW Kiosk, LLC

XpresSpa Downtown NYC, LLC

XpresSpa Franchising USA, LLC

XpresSpa Franchising, LLC

XpresSpa Houston Hobby, LLC

XpresSpa Houston Intercontinental Terminal
A, LLC

XpresSpa International Holdings, LLC

XpresSpa JFK Terminal 1, LLC

XpresSpa JFK Terminal 7, LLC

XpresSpa JFK Terminal 8, LLC

  

 

By:_/s/ Douglas Satzman _______________________

Name: Douglas Satzman

Title: President

 

 

Douglas Satzman, as President of all of
the aforementioned entities, has executed this Ratification Agreement and intending that all entities above named are bound and
are to be bound by the one signature as if had executed this Ratification separately for each of the above named entities.

 

 

By:/s/ Douglas Satzman

Name: Douglas Satzman

Title:President

 

 

 

[Subsidiary Guarantors signature page
follows]

 

    	 	6	 

     

    

 

[Continued From Previous Page]

 

 

XpresSpa John Wayne Airport, LLC

XpresSpa Las Vegas Airport, LLC

XpresSpa LAX Airport, LLC

XpresSpa Mobile Services, LLC

XpresSpa MSP Airport, LLC

XpresSpa Online Shopping, LLC

XpresSpa Orlando, LLC

XpresSpa Philadelphia Airport, LLC

XpresSpa Philadelphia Terminal B, LLC

XpresSpa Pittsburgh A, LLC

XpresSpa Raleigh-Durham Intl, LLC

XpresSpa S.F. International, LLC

XpresSpa Salt Lake City, LLC

XpresSpa Washington Reagan, LLC

XpresRecover Charlotte Airport, LLC

  

 

By:/s/ Douglas Satzman

Name: Douglas Satzman

Title: President

  

 

Douglas Satzman, as President of all of
the aforementioned entities, has executed this Ratification Agreement and intending that all entities above named are bound and
are to be bound by the one signature as if had executed this Ratification separately for each of the above named entities.

  

 

By:/s/ Douglas Satzman

Name: Douglas Satzman

Title: President

 

 

 

 

[Lender signature page follows]

 

    	 	7	 

     

    

  

IN WITNESS WHEREOF,
the Company and the Lender have executed this Amendment Agreement as of the date first above written.

 

 

	
        B3D, LLC
	
	 	 
	 	 
	
        

        By: /s/ Brian Daly
	 
	 	 
	Name:   Bryan Daly  	 
	Title:       Manager	 

 

 

    	 	8Exhibit 10.1

 

IFRESH INC.

 

2019 OMNIBUS EQUITY INCENTIVE PLAN

 

The purpose
of this iFresh Inc. 2019 Omnibus Equity Incentive Plan (the “Plan”) is to benefit iFresh Inc., a Delaware corporation
(the “Company”) and its stockholders, by assisting the Company and its subsidiaries to attract, retain and provide
incentives to key management employees, directors, and consultants of the Company and its Affiliates, and to align the interests
of such service providers with those of the Company’s stockholders. Accordingly, the Plan provides for the granting of Non-qualified
Stock Options, Incentive Stock Options, Restricted Stock Awards, Restricted Stock Unit Awards, Stock Appreciation Rights, Performance
Stock Awards, Performance Unit Awards, Unrestricted Stock Awards, Distribution Equivalent Rights or any combination of the foregoing.

 

ARTICLE I

DEFINITIONS

 

The following definitions shall be applicable throughout
the Plan unless the context otherwise requires:

 

1.1 “Affiliate”
shall mean any corporation which, with respect to the Company, is a “subsidiary corporation” within the meaning of
Section 424(f) of the Code or other entity in which the Company has a controlling interest in such entity or another entity which
is part of a chain of entities in which the Company or each entity has a controlling interest in another entity in the unbroken
chain of entities ending with the applicable entity.

 

1.2 “Award”
shall mean, individually or collectively, any Option, Restricted Stock Award, Restricted Stock Unit Award, Performance Stock Award,
Performance Unit Award, Stock Appreciation Right, Distribution Equivalent Right or Unrestricted Stock Award.

 

1.3 “Award
Agreement” shall mean a written agreement between the Company and the Holder with respect to an Award, setting
forth the terms and conditions of the Award, as amended.

 

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

 

1.5 “Base Value”
shall have the meaning given to such term in Section 14.2.

 

1.6 “Cause”
shall mean (i) if the Holder is a party to an employment or service agreement with the Company or an Affiliate which agreement
defines “Cause” (or a similar term), “Cause” shall have the same meaning as provided for in such
agreement, or (ii) for a Holder who is not a party to such an agreement, “Cause” shall mean termination by the
Company or an Affiliate of the employment (or other service relationship) of the Holder by reason of the Holder’s (A) intentional
failure to perform reasonably assigned duties, (B) dishonesty or willful misconduct in the performance of the Holder’s duties,
(C) involvement in a transaction which is materially adverse to the Company or an Affiliate, (D) breach of fiduciary duty involving
personal profit, (E) willful violation of any law, rule, regulation or court order (other than misdemeanor traffic violations and
misdemeanors not involving misuse or misappropriation of money or property), (F) commission of an act of fraud or intentional misappropriation
or conversion of any asset or opportunity of the Company or an Affiliate, or (G) material breach of any provision of the Plan or
the Holder’s Award Agreement or any other written agreement between the Holder and the Company or an Affiliate, in each case
as determined in good faith by the Board, the determination of which shall be final, conclusive and binding on all parties.

 

1.7 “Change
of Control” shall mean: (i) for a Holder who is a party to an employment or consulting agreement with the Company or
an Affiliate which agreement defines “Change of Control” (or a similar term), “Change of Control”
shall have the same meaning as provided for in such agreement, or (ii) for a Holder who is not a party to such an agreement, “Change
of Control” shall mean the satisfaction of any one or more of the following conditions (and the “Change of Control”
shall be deemed to have occurred as of the first day that any one or more of the following conditions shall have been satisfied):

 

(a) Any person
(as such term is used in paragraphs 13(d) and 14(d)(2) of the Exchange Act, hereinafter in this definition, “Person”),
other than the Company or an Affiliate or an employee benefit plan of the Company or an Affiliate, becomes the beneficial owner
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than
fifty percent (50%) of the combined voting power of the Company’s then outstanding securities;

 

(b) The closing
of a merger, consolidation or other business combination (a “Business Combination”) other than a Business Combination
in which holders of the Shares immediately prior to the Business Combination have substantially the same proportionate ownership
of the common stock or ordinary shares, as applicable, of the surviving corporation immediately after the Business Combination
as immediately before;

 

(c) The closing
of an agreement for the sale or disposition of all or substantially all of the Company’s assets to any entity that is not
an Affiliate;

 

     

     

    

 

(d) The approval
by the holders of shares of Shares of a plan of complete liquidation of the Company, other than a merger of the Company into any
subsidiary or a liquidation as a result of which persons who were stockholders of the Company immediately prior to such liquidation
have substantially the same proportionate ownership of shares of common stock or ordinary shares, as applicable, of the surviving
corporation immediately after such liquidation as immediately before; or

 

(e) Within
any twenty-four (24) month period, the Incumbent Directors shall cease to constitute at least a majority of the Board or the board
of directors of any successor to the Company; provided, however, that any director elected to the Board, or nominated
for election, by a majority of the Incumbent Directors then still in office, shall be deemed to be an Incumbent Director for purposes
of this paragraph (e), but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result
of either an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of an individual, entity or “group” other than the Board (including,
but not limited to, any such assumption that results from paragraphs (a), (b), (c), or (d) of this definition).

 

1.8 “Code”
shall mean the United States of America Internal Revenue Code of 1986, as amended. Reference in the Plan to any section of the
Code shall be deemed to include any amendments or successor provisions to any section and any regulation under such section.

 

1.9 “Committee”
shall mean a committee comprised of two (2) or more members of the Board who are selected by the Board as provided in Section 4.1.

 

1.10 “Company”
shall have the meaning given to such term in the introductory paragraph, including any successor thereto.

 

1.11 “Consultant”
shall mean any non-Employee (individual or entity) advisor to the Company or an Affiliate who or which has contracted directly
with the Company or an Affiliate to render bona fide consulting or advisory services thereto.

 

1.12 “Director”
shall mean a member of the Board or a member of the board of directors of an Affiliate, in either case, who is not an Employee.

 

1.13 “Distribution
Equivalent Right” shall mean an Award granted under Article XIII of the Plan which entitles the Holder to receive bookkeeping
credits, cash payments and/or Share distributions equal in amount to the distributions that would have been made to the Holder
had the Holder held a specified number of Shares during the period the Holder held the Distribution Equivalent Right.

 

1.14 “Distribution
Equivalent Right Award Agreement” shall mean a written agreement between the Company and a Holder with respect to a Distribution
Equivalent Right Award.

 

1.15 “Effective
Date” shall mean July 2, 2019.

 

1.16 “Employee”
shall mean any employee, including any officer, of the Company or an Affiliate.

 

1.17 “Exchange
Act” shall mean the United States of America Securities Exchange Act of 1934, as amended.

 

1.18 “Fair
Market Value” shall mean, as of any specified date, the closing sales price of the Shares for such date (or, in the event
that the Shares are not traded on such date, on the immediately preceding trading date) on the NASDAQ Stock Market (“NASDAQ”),
as reported by NASDAQ, or such other domestic or foreign national securities exchange on which the Shares may be listed. If the
Shares are not listed on NASDAQ or on a national securities exchange, but are quoted on the OTC Bulletin Board or by the National
Quotation Bureau, the Fair Market Value of the Shares shall be the mean of the highest bid and lowest asked prices per Share for
such date. If the Shares are not quoted or listed as set forth above, Fair Market Value shall be determined by the Board in good
faith by any fair and reasonable means (which means may be set forth with greater specificity in the applicable Award Agreement).
The Fair Market Value of property other than Shares shall be determined by the Board in good faith by any fair and reasonable means
consistent with the requirements of applicable law.

 

1.19 “Family
Member” of an individual shall mean any child, stepchild, grandchild, parent, stepparent, spouse, former spouse, sibling,
niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships,
any person sharing the Holder’s household (other than a tenant or employee of the Holder), a trust in which such persons
have more than fifty percent (50%) of the beneficial interest, a foundation in which such persons (or the Holder) control the management
of assets, and any other entity in which such persons (or the Holder) own more than fifty percent (50%) of the voting interests.

 

1.20 “Holder”
shall mean an Employee, Director or Consultant who has been granted an Award or any such individual’s beneficiary, estate
or representative, who has acquired such Award in accordance with the terms of the Plan, as applicable.

 

    2

     

    

 

1.21 “Incentive
Stock Option” shall mean an Option which is intended by the Committee to constitute an “incentive stock option”
and conforms to the applicable provisions of Section 422 of the Code.

 

1.22 “Incumbent
Director” shall mean, with respect to any period of time specified under the Plan for purposes of determining whether
or not a Change of Control has occurred, the individuals who were members of the Board at the beginning of such period.

 

1.23 “Non-qualified
Stock Option” shall mean an Option which is not an Incentive Stock Option or which is designated as an Incentive Stock
Option but does not meet the applicable requirements of Section 422 of the Code.

 

1.24 “Option”
shall mean an Award granted under Article VII of the Plan of an option to purchase Shares and shall include both Incentive Stock
Options and Non-qualified Stock Options.

 

1.25 “Option Agreement”
shall mean a written agreement between the Company and a Holder with respect to an Option.

 

1.26 “Performance
Criteria” shall mean the criteria selected by the Committee for purposes of establishing the Performance Goal(s) for
a Holder for a Performance Period.

 

1.27 “Performance
Goals” shall mean, for a Performance Period, the written goal or goals established by the Committee for the Performance
Period based upon the Performance Criteria, which may be related to the performance of the Holder, the Company or an Affiliate.

 

1.28 “Performance
Period” shall mean one or more periods of time, which may be of varying and overlapping durations, selected by the Committee,
over which the attainment of the Performance Goals shall be measured for purposes of determining a Holder’s right to, and
the payment of, a Qualified Performance-Based Award.

 

1.29 “Performance
Stock Award” or “Performance Stock” shall mean an Award granted under Article XII of the Plan under
which, upon the satisfaction of predetermined Performance Goals, Shares are paid to the Holder.

 

1.30 “Performance
Stock Agreement” shall mean a written agreement between the Company and a Holder with respect to a Performance
Stock Award.

 

1.31 “Performance
Unit” shall mean a Unit awarded to a Holder pursuant to a Performance Unit Award.

 

1.32 “Performance
Unit Award” shall mean an Award granted under Article XI of the Plan under which, upon the satisfaction of predetermined
Performance Goals, a cash payment shall be made to the Holder, based on the number of Units awarded to the Holder.

 

1.33 “Performance
Unit Agreement” shall mean a written agreement between the Company and a Holder with respect to a Performance
Unit Award.

 

1.34 “Plan”
shall mean this iFresh Inc. 2019 Omnibus Equity Incentive Plan, as amended from time to time, together with each of the Award Agreements
utilized hereunder.

 

1.35
“Qualified Performance-Based Award” shall mean an Award that is intended to qualify as “performance-based”
compensation under Section 162(m) of the Code.

 

1.36 “Restricted
Stock Award” and “Restricted Stock” shall mean an Award granted under Article VIII of the Plan of
Shares, the transferability of which by the Holder is subject to Restrictions.

 

1.37 “Restricted
Stock Agreement” shall mean a written agreement between the Company and a Holder with respect to a Restricted
Stock Award.

 

1.38 “Restricted
Stock Unit Award” and “RSUs” shall refer to an Award granted under Article X of the Plan under which,
upon the satisfaction of predetermined individual service-related vesting requirements, a cash payment shall be made to the Holder,
based on the number of Units awarded to the Holder.

 

1.39 “Restricted
Stock Unit Agreement” shall mean a written agreement between the Company and a Holder with respect to a Restricted
Stock Award.

 

1.40 “Restriction
Period” shall mean the period of time for which Shares subject to a Restricted Stock Award shall be subject to Restrictions,
as set forth in the applicable Restricted Stock Agreement.

 

    3

     

    

 

1.41 “Restrictions”
shall mean the forfeiture, transfer and/or other restrictions applicable to Shares awarded to an Employee, Director or Consultant
under the Plan pursuant to a Restricted Stock Award and set forth in a Restricted Stock Agreement.

 

1.42 “Rule
16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission under the Exchange Act, as such may
be amended from time to time, and any successor rule, regulation or statute fulfilling the same or a substantially similar function.

 

1.43 “Shares”
or “Stock” shall mean the ordinary common stock of the Company, par value $0.0001 per share.

 

1.44 “Stock
Appreciation Right” or “SAR” shall mean an Award granted under Article XIV of the Plan of a right,
granted alone or in connection with a related Option, to receive a payment equal to the increase in value of a specified number
of Shares between the date of Award and the date of exercise.

 

1.45 “Stock
Appreciation Right Agreement” shall mean a written agreement between the Company and a Holder with respect to a Stock
Appreciation Right.

 

1.46 “Tandem
Stock Appreciation Right” shall mean a Stock Appreciation Right granted in connection with a related Option, the exercise
of some or all of which results in termination of the entitlement to purchase some or all of the Shares under the related Option,
all as set forth in Article XIV.

 

1.47 “Ten
Percent Stockholder” shall mean an Employee who, at the time an Option is granted to him or her, owns shares possessing
more than ten percent (10%) of the total combined voting power of all classes of shares of the Company or of any parent corporation
or subsidiary corporation thereof (both as defined in Section 424 of the Code), within the meaning of Section 422(b)(6) of the
Code.

 

1.48 “Termination
of Service” shall mean a termination of a Holder’s employment with, or status as a Director or Consultant of, the
Company or an Affiliate, as applicable, for any reason, including, without limitation, Total and Permanent Disability or death,
except as provided in Section 6.4. In the event Termination of Service shall constitute a payment event with respect to any Award
subject to Code Section 409A, Termination of Service shall only be deemed to occur upon a “separation from service”
as such term is defined under Code Section 409A and applicable authorities.

 

1.49 “Total
and Permanent Disability” of an individual shall mean the inability of such individual 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 which
has lasted or can be expected to last for a continuous period of not less than twelve (12) months, within the meaning of Section
22(e)(3) of the Code.

 

1.50 “Unit”
shall mean a bookkeeping unit, which represents such monetary amount as shall be designated by the Committee in each Performance
Unit Agreement, or represents one Share for purposes of each Restricted Stock Unit Award.

 

1.51 “Unrestricted
Stock Award” shall mean an Award granted under Article IX of the Plan of Shares which are not subject to Restrictions.

 

1.52 “Unrestricted
Stock Agreement” shall mean a written agreement between the Company and a Holder with respect to an Unrestricted
Stock Award.

 

ARTICLE III

ADMINISTRATION

 

3.1 Composition
of Committee. The Plan shall be administered by the Committee, which shall be appointed by the Board. If necessary, in
the Board’s discretion, to comply with Rule 16b-3 under the Exchange Act and Section 162(m) of the Code, the Committee
shall consist solely of two (2) or more Directors who are each (i) “outside directors” within the meaning of
Section 162(m) of the Code (“Outside Directors”), (ii) “non-employee directors” within the
meaning of Rule 16b-3 (“Non-Employee Directors”) and (iii) “independent” for purposes of any
applicable listing requirements; provided, however, that the Board or the Committee may delegate to a committee
of one or more members of the Board who are not (x) Outside Directors, the authority to grant Awards to eligible persons who
are not (A) then “covered employees” within the meaning of Section 162(m) of the Code and are not expected to be
“covered employees” at the time of recognition of income resulting from such Award, or (B) persons with respect
to whom the Company wishes to comply with the requirements of Section 162(m) of the Code, and/or (y) Non-Employee Directors,
the authority to grant Awards to eligible persons who are not then subject to the requirements of Section 16 of the Exchange
Act. If a member of the Committee shall be eligible to receive an Award under the Plan, such Committee member shall have no
authority hereunder with respect to his or her own Award.

 

    4

     

    

 

3.2 Powers.
Subject to the other provisions of the Plan, the Committee shall have the sole authority, in its discretion, to make all determinations
under the Plan, including but not limited to (i) determining which Employees, Directors or Consultants shall receive an Award,
(ii) the time or times when an Award shall be made (the date of grant of an Award shall be the date on which the Award is awarded
by the Committee), (iii) what type of Award shall be granted, (iv) the term of an Award, (v) the date or dates on which an Award
vests, (vi) the form of any payment to be made pursuant to an Award, (vii) the terms and conditions of an Award (including the
forfeiture of the Award, and/or any financial gain, if the Holder of the Award violates any applicable restrictive covenant thereof),
(viii) the Restrictions under a Restricted Stock Award, (ix) the number of Shares which may be issued under an Award, (x) Performance
Goals applicable to any Award and certification of the achievement of such goals, and (xi) the waiver of any Restrictions or Performance
Goals, subject in all cases to compliance with applicable laws. In making such determinations the Committee may take into account
the nature of the services rendered by the respective Employees, Directors and Consultants, their present and potential contribution
to the Company’s (or the Affiliate’s) success and such other factors as the Committee in its discretion may deem relevant.

 

3.3 Additional
Powers. The Committee shall have such additional powers as are delegated to it under the other provisions of the Plan. Subject
to the express provisions of the Plan, the Committee is authorized to construe the Plan and the respective Award Agreements executed
hereunder, to prescribe such rules and regulations relating to the Plan as it may deem advisable to carry out the intent of the
Plan, to determine the terms, restrictions and provisions of each Award and to make all other determinations necessary or advisable
for administering the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in any Award
Agreement in the manner and to the extent the Committee shall deem necessary, appropriate or expedient to carry it into effect.
The determinations of the Committee on the matters referred to in this Article IV shall be conclusive and binding on the Company
and all Holders.

 

3.4 Committee
Action. Subject to compliance with all applicable laws, action by the Committee shall require the consent of a majority of
the members of the Committee, expressed either orally at a meeting of the Committee or in writing in the absence of a meeting.
No member of the Committee shall have any liability for any good faith action, inaction or determination in connection with the
Plan.

 

ARTICLE IV

SHARES SUBJECT TO PLAN AND LIMITATIONS THEREON

 

4.1 Authorized
Shares and Award Limits. The Committee may from time to time grant Awards to one or more Employees, Directors and/or Consultants
determined by it to be eligible for participation in the Plan in accordance with the provisions of Article VI. Subject to Article
XV, the aggregate number of Shares that may be issued under the Plan shall not exceed Two Million Two Hundred and Ninety Three
Thousand (2,293,000) Shares. Shares shall be deemed to have been issued under the Plan solely to the extent actually issued and
delivered pursuant to an Award. To the extent that an Award lapses, expires, is canceled, is terminated unexercised or ceases to
be exercisable for any reason, or the rights of its Holder terminate, any Shares subject to such Award shall again be available
for the grant of a new Award. Notwithstanding any provision in the Plan to the contrary, the maximum number of Shares that may
be subject to Awards of Options under Article VII and/or Stock Appreciation Rights under Article XIV, in either or both cases granted
to any one person during any calendar year, shall be Two Hundred Thousand (200,000) Shares (subject to adjustment in the same manner
as provided in Article XV with respect to Shares subject to Awards then outstanding). The limitation set forth in the preceding
sentence shall be applied in a manner which shall permit compensation generated in connection with the exercise of Options or Stock
Appreciation Rights to constitute “performance-based” compensation for purposes of Section 162(m) of the Code, including,
but not limited to, counting against such maximum number of Shares, to the extent required under Section 162(m) of the Code, any
Shares subject to Options or Stock Appreciation Rights that are canceled or re-priced.

 

4.2 Types
of Shares. The Shares to be issued pursuant to the grant or exercise of an Award may consist of authorized but unissued Shares,
Shares purchased on the open market or Shares previously issued and outstanding and reacquired by the Company.

 

ARTICLE V

ELIGIBILITY AND TERMINATION OF SERVICE

 

5.1 Eligibility.
Awards made under the Plan may be granted solely to individuals or entities who, at the time of grant, are Employees, Directors
or Consultants. An Award may be granted on more than one occasion to the same Employee, Director or Consultant, and, subject to
the limitations set forth in the Plan, such Award may include, a Non-qualified Stock Option, a Restricted Stock Award, a Restricted
Stock Unit Award, an Unrestricted Stock Award, a Distribution Equivalent Right Award, a Performance Stock Award, a Performance
Unit Award, a Stock Appreciation Right, a Tandem Stock Appreciation Right, or any combination thereof, and solely for Employees,
an Incentive Stock Option.

 

    5

     

    

 

5.2 Termination
of Service. Except to the extent inconsistent with the terms of the applicable Award Agreement and/or the provisions of Section
6.3 or 6.4, the following terms and conditions shall apply with respect to a Holder’s Termination of Service with the Company
or an Affiliate, as applicable:

 

(a) The Holder’s rights,
if any, to exercise any then exercisable Options and/or Stock Appreciation Rights shall terminate:

 

(i) If such
termination is for a reason other than the Holder’s Total and Permanent Disability or death, ninety (90) days after the
date of such Termination of Service;

 

(ii) If such termination is on
account of the Holder’s Total and Permanent Disability, one (1) year after the date of such Termination of Service; or

 

(iii) If such termination
is on account of the Holder’s death, one (1) year after the date of the Holder’s death.

 

Upon such applicable date the Holder
(and such Holder’s estate, designated beneficiary or other legal representative) shall forfeit any rights or interests in
or with respect to any such Options and Stock Appreciation Rights. Notwithstanding the foregoing, the Committee, in its sole discretion,
may provide for a different time period in the Award Agreement, or may extend the time period, following a Termination of Service,
during which the Holder has the right to exercise any vested Non-qualified Stock Option or Stock Appreciation Right, which time
period may not extend beyond the expiration date of the Award term.

 

(b) In the
event of a Holder’s Termination of Service for any reason prior to the actual or deemed satisfaction and/or lapse of the
Restrictions, vesting requirements, terms and conditions applicable to a Restricted Stock Award and/or Restricted Stock Unit Award,
such Restricted Stock and/or RSUs shall immediately be canceled, and the Holder (and such Holder’s estate, designated beneficiary
or other legal representative) shall forfeit any rights or interests in and with respect to any such Restricted Stock and/or RSUs.
Notwithstanding the immediately preceding sentence, the Committee, in its sole discretion, may determine, prior to or within thirty
(30) days after the date of such Termination of Service that all or a portion of any such Holder’s Restricted Stock and/or
RSUs shall not be so canceled and forfeited.

 

5.3 Special
Termination Rule. Except to the extent inconsistent with the terms of the applicable Award Agreement, and notwithstanding anything
to the contrary contained in this Article VI, if a Holder’s employment with, or status as a Director of, the Company or an
Affiliate shall terminate, and if, within ninety (90) days of such termination, such Holder shall become a Consultant, such Holder’s
rights with respect to any Award or portion thereof granted thereto prior to the date of such termination may be preserved, if
and to the extent determined by the Committee in its sole discretion, as if such Holder had been a Consultant for the entire period
during which such Award or portion thereof had been outstanding. Should the Committee effect such determination with respect to
such Holder, for all purposes of the Plan, such Holder shall not be treated as if his or her employment or Director status had
terminated until such time as his or her Consultant status shall terminate, in which case his or her Award, as it may have been
reduced in connection with the Holder’s becoming a Consultant, shall be treated pursuant to the provisions of Section 6.2,
provided, however, that any such Award which is intended to be an Incentive Stock Option shall, upon the Holder’s no longer
being an Employee, automatically convert to a Non-qualified Stock Option. Should a Holder’s status as a Consultant terminate,
and if, within ninety (90) days of such termination, such Holder shall become an Employee or a Director, such Holder’s rights
with respect to any Award or portion thereof granted thereto prior to the date of such termination may be preserved, if and to
the extent determined by the Committee in its sole discretion, as if such Holder had been an Employee or a Director, as applicable,
for the entire period during which such Award or portion thereof had been outstanding, and, should the Committee effect such determination
with respect to such Holder, for all purposes of the Plan, such Holder shall not be treated as if his or her Consultant status
had terminated until such time as his or her employment with the Company or an Affiliate, or his or her Director status, as applicable,
shall terminate, in which case his or her Award shall be treated pursuant to the provisions of Section 6.2.

 

5.4 Termination
of Service for Cause. Notwithstanding anything in this Article VI or elsewhere in the Plan to the contrary, and unless a Holder’s
Award Agreement specifically provides otherwise, in the event of a Holder’s Termination of Service for Cause, all of such
Holder’s then outstanding Awards shall expire immediately and be forfeited in their entirety upon such Termination of Service.

 

ARTICLE VI

OPTIONS

 

6.1 Option
Period. The term of each Option shall be as specified in the Option Agreement; provided, however, that except
as set forth in Section 7.3, no Option shall be exercisable after the expiration of ten (10) years from the date of its grant.

 

6.2 Limitations
on Exercise of Option. An Option shall be exercisable in whole or in such installments and at such times as specified in the
Option Agreement.

 

    6

     

    

 

6.3 Special
Limitations on Incentive Stock Options. To the extent that the aggregate Fair Market Value (determined at the time the respective
Incentive Stock Option is granted) of Shares with respect to which Incentive Stock Options are exercisable for the first time by
an individual during any calendar year under all plans of the Company and any parent corporation or subsidiary corporation thereof
(both as defined in Section 424 of the Code) which provide for the grant of Incentive Stock Options exceeds One Hundred Thousand
Dollars ($100,000) (or such other individual limit as may be in effect under the Code on the date of grant), the portion of such
Incentive Stock Options that exceeds such threshold shall be treated as Non-qualified Stock Options. The Committee shall determine,
in accordance with applicable provisions of the Code, Treasury Regulations and other administrative pronouncements, which of a
Holder’s Options, which were intended by the Committee to be Incentive Stock Options when granted to the Holder, will not
constitute Incentive Stock Options because of such limitation, and shall notify the Holder of such determination as soon as practicable
after such determination. No Incentive Stock Option shall be granted to an Employee if, at the time the Incentive Stock Option
is granted, such Employee is a Ten Percent Stockholder, unless (i) at the time such Incentive Stock Option is granted the Option
price is at least one hundred ten percent (110%) of the Fair Market Value of the Shares subject to the Incentive Stock Option,
and (ii) such Incentive Stock Option by its terms is not exercisable after the expiration of five (5) years from the date of grant.
No Incentive Stock Option shall be granted more than ten (10) years from the earlier of the Effective Date or date on which the
Plan is approved by the Company’s stockholders. The designation by the Committee of an Option as an Incentive Stock Option
shall not guarantee the Holder that the Option will satisfy the applicable requirements for “incentive stock option”
status under Section 422 of the Code.

 

6.4 Option
Agreement. Each Option shall be evidenced by an Option Agreement in such form and containing such provisions not
inconsistent with the other provisions of the Plan as the Committee from time to time shall approve, including, but not
limited to, provisions intended to qualify an Option as an Incentive Stock Option. An Option Agreement may provide for the
payment of the Option price, in whole or in part, by the delivery of a number of Shares (plus cash if necessary) that have
been owned by the Holder for at least six (6) months and having a Fair Market Value equal to such Option price, or such other
forms or methods as the Committee may determine from time to time, in each case, subject to such rules and regulations as may
be adopted by the Committee. Each Option Agreement shall, solely to the extent inconsistent with the provisions of Sections
6.2, 6.3, and 6.4, as applicable, specify the effect of Termination of Service on the exercisability of the Option. Moreover,
without limiting the generality of the foregoing, a Non-qualified Stock Option Agreement may provide for a “cashless
exercise” of the Option, in whole or in part, by (a) establishing procedures whereby the Holder, by a properly-executed
written notice, directs (i) an immediate market sale or margin loan as to all or a part of Shares to which he is entitled to
receive upon exercise of the Option, pursuant to an extension of credit by the Company to the Holder of the Option price,
(ii) the delivery of the Shares from the Company directly to a brokerage firm and (iii) the delivery of the Option price from
sale or margin loan proceeds from the brokerage firm directly to the Company, or (b) reducing the number of Shares to be
issued upon exercise of the Option by the number of such Shares having an aggregate Fair Market Value equal to the Option
price (or portion thereof to be so paid) as of the date of the Option’s exercise. An Option Agreement may also include
provisions relating to: (i) subject to the provisions hereof, accelerated vesting of Options, including but not limited to,
upon the occurrence of a Change of Control, (ii) tax matters (including provisions covering any applicable Employee wage
withholding requirements and requiring additional “gross-up” payments to Holders to meet any excise taxes or
other additional income tax liability imposed as a result of a payment made upon a Change of Control resulting from the
operation of the Plan or of such Option Agreement) and (iii) any other matters not inconsistent with the terms and
provisions of the Plan that the Committee shall in its sole discretion determine. The terms and conditions of the respective
Option Agreements need not be identical.

 

6.5 Option
Price and Payment. The price at which an Share may be purchased upon exercise of an Option shall be determined by the Committee;
provided, however, that such Option price (i) shall not be less than the Fair Market Value of an Share on the date
such Option is granted (or 110% of Fair Market Value for an Incentive Stock Option held by Ten Percent Stockholder, as provided
in Section 7.3), and (ii) shall be subject to adjustment as provided in Article XV. The Option or portion thereof may be exercised
by delivery of an irrevocable notice of exercise to the Company. The Option price for the Option or portion thereof shall be paid
in full in the manner prescribed by the Committee as set forth in the Plan and the applicable Option Agreement, which manner, with
the consent of the Committee, may include the withholding of Shares otherwise issuable in connection with the exercise of the Option.
Separate share certificates shall be issued by the Company for those Shares acquired pursuant to the exercise of an Incentive Stock
Option and for those Shares acquired pursuant to the exercise of a Non-qualified Stock Option.

 

6.6 Stockholder
Rights and Privileges. The Holder of an Option shall be entitled to all the privileges and rights of a stockholder of
the Company solely with respect to such Shares as have been purchased under the Option and for which share certificates have been
registered in the Holder’s name.

 

6.7 Options
and Rights in Substitution for Stock or Options Granted by Other Corporations. Options may be granted under the Plan from time
to time in substitution for stock options held by individuals employed by entities who become Employees, Directors or Consultants
as a result of a merger or consolidation of the employing entity with the Company or any Affiliate, or the acquisition by the Company
or an Affiliate of the assets of the employing entity, or the acquisition by the Company or an Affiliate of stock or shares of
the employing entity with the result that such employing entity becomes an Affiliate.

 

6.8 Prohibition
Against Re-Pricing. Except to the extent (i) approved in advance by holders of a majority of the shares of the Company
entitled to vote generally in the election of directors, or (ii) as a result of any Change of Control or any adjustment as provided
in Article XV, the Committee shall not have the power or authority to reduce, whether through amendment or otherwise, the exercise
price under any outstanding Option or Stock Appreciation Right, or to grant any new Award or make any payment of cash in substitution
for or upon the cancellation of Options and/or Stock Appreciation Rights previously granted.

 

    7

     

    

 

ARTICLE VII

RESTRICTED
STOCK AWARDS

 

7.1 Award.
A Restricted Stock Award shall constitute an Award of Shares to the Holder as of the date of the Award which are subject to a “substantial
risk of forfeiture” as defined under Section 83 of the Code during the specified Restriction Period. At the time a Restricted
Stock Award is made, the Committee shall establish the Restriction Period applicable to such Award. Each Restricted Stock Award
may have a different Restriction Period, in the discretion of the Committee. The Restriction Period applicable to a particular
Restricted Stock Award shall not be changed except as permitted by Section 8.2.

 

7.2
Terms and Conditions. At the time any Award is made under this Article VIII, the Company and the Holder shall enter into
a Restricted Stock Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee may
determine to be appropriate. The Company shall cause the Shares to be issued in the name of Holder, either by book-entry registration
or issuance of one or more stock certificates evidencing the Shares, which Shares or certificates shall be held by the Company
or the stock transfer agent or brokerage service selected by the Company to provide services for the Plan. The Shares shall be
restricted from transfer and shall be subject to an appropriate stop-transfer order, and if any certificate is issued, such certificate
shall bear an appropriate legend referring to the restrictions applicable to the Shares. After any Shares vest, the Company shall
deliver the vested Shares, in book-entry or certificated form in the Company’s sole discretion, registered in the name of
Holder or his or her legal representatives, beneficiaries or heirs, as the case may be, less any Shares withheld to pay withholding
taxes. If provided for under the Restricted Stock Agreement, the Holder shall have the right to vote Shares subject thereto and
to enjoy all other stockholder rights, including the entitlement to receive dividends on the Shares during the Restriction Period.
At the time of such Award, the Committee may, in its sole discretion, prescribe additional terms and conditions or restrictions
relating to Restricted Stock Awards, including, but not limited to, rules pertaining to the effect of Termination of Service prior
to expiration of the Restriction Period. Such additional terms, conditions or restrictions shall, to the extent inconsistent with
the provisions of Sections 6.2, 6.3 and 6.4, as applicable, be set forth in a Restricted Stock Agreement made in conjunction with
the Award. Such Restricted Stock Agreement may also include provisions relating to: (i) subject to the provisions hereof, accelerated
vesting of Awards, including but not limited to accelerated vesting upon the occurrence of a Change of Control, (ii) tax matters
(including provisions covering any applicable Employee wage withholding requirements and requiring additional “gross-up”
payments to Holders to meet any excise taxes or other additional income tax liability imposed as a result of a payment made in
connection with a Change of Control resulting from the operation of the Plan or of such Restricted Stock Agreement) and (iii) any
other matters not inconsistent with the terms and provisions of the Plan that the Committee shall in its sole discretion determine.
The terms and conditions of the respective Restricted Stock Agreements need not be identical. All Shares delivered to a
Holder as part of a Restricted Stock Award shall be delivered and reported by the Company or the Affiliate, as applicable, to the
Holder at the time of vesting.

 

    8

     

    

 

7.3 Payment
for Restricted Stock. The Committee shall determine the amount and form of any payment from a Holder for Shares received pursuant
to a Restricted Stock Award, if any, provided that in the absence of such a determination, a Holder shall not be required to make
any payment for Shares received pursuant to a Restricted Stock Award, except to the extent otherwise required by law.

 

ARTICLE VIII

UNRESTRICTED
STOCK AWARDS

 

8.1 Award.
Shares may be awarded (or sold) to Employees, Directors or Consultants under the Plan which are not subject to Restrictions of
any kind, in consideration for past services rendered thereby to the Company or an Affiliate or for other valid consideration.

 

8.2 Terms
and Conditions. At the time any Award is made under this Article IX, the Company and the Holder shall enter into an Unrestricted
Stock Agreement setting forth each of the matters contemplated hereby and such other matters as the Committee may determine to
be appropriate.

 

8.3 Payment
for Unrestricted Stock. The Committee shall determine the amount and form of any payment from a Holder for Shares received
pursuant to an Unrestricted Stock Award, if any, provided that in the absence of such a determination, a Holder shall not be required
to make any payment for Shares received pursuant to an Unrestricted Stock Award, except to the extent otherwise required by law.

 

ARTICLE IX

RESTRICTED
STOCK UNIT AWARDS

 

9.1 Award.
A Restricted Stock Unit Award shall constitute a promise to grant Shares (or cash equal to the Fair Market Value of Shares) to
the Holder at the end of a specified Restriction Period. At the time a Restricted Stock Unit Award is made, the Committee shall
establish the Restriction Period applicable to such Award. Each Restricted Stock Unit Award may have a different Restriction Period,
in the discretion of the Committee. A Restricted Stock Unit shall not constitute an equity interest in the Company and shall not
entitle the Holder to voting rights, dividends or any other rights associated with ownership of Shares prior to the time the Holder
shall receive a distribution of Shares pursuant to Section 10.3.

 

9.2 Terms
and Conditions. At the time any Award is made under this Article X, the Company and the Holder shall enter into a Restricted
Stock Unit Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee may determine
to be appropriate. The Restricted Stock Unit Agreement shall set forth the individual service-based vesting requirement which the
Holder would be required to satisfy before the Holder would become entitled to distribution pursuant to Section 10.3 and the number
of Units awarded to the Holder. Such conditions shall be sufficient to constitute a “substantial risk of forfeiture”
as such term is defined under Section 409A of the Code. At the time of such Award, the Committee may, in its sole discretion, prescribe
additional terms and conditions or restrictions relating to Restricted Stock Unit Awards in the Restricted Stock Unit Agreement,
including, but not limited to, rules pertaining to the effect of Termination of Service prior to expiration of the applicable vesting
period. The terms and conditions of the respective Restricted Stock Unit Agreements need not be identical.

 

9.3 Distributions
of Shares. The Holder of a Restricted Stock Unit shall be entitled to receive a cash payment equal to the Fair Market Value
of an Share, or one Share, as determined in the sole discretion of the Committee and as set forth in the Restricted Stock Unit
Agreement, for each Restricted Stock Unit subject to such Restricted Stock Unit Award, if the Holder satisfies the applicable vesting
requirement. Such distribution shall be made no later than by the fifteenth (15th) day of the third (3rd) calendar month next following
the end of the calendar year in which the Restricted Stock Unit first becomes vested (i.e., no longer subject to a “substantial
risk of forfeiture”).

 

ARTICLE X

PERFORMANCE
UNIT AWARDS

 

10.1 Award.
A Performance Unit Award shall constitute an Award under which, upon the satisfaction of predetermined individual and/or Company
(and/or Affiliate) Performance Goals based on selected Performance Criteria, a cash payment shall be made to the Holder, based
on the number of Units awarded to the Holder. At the time a Performance Unit Award is made, the Committee shall establish the Performance
Period and applicable Performance Goals. Each Performance Unit Award may have different Performance Goals, in the discretion of
the Committee. A Performance Unit Award shall not constitute an equity interest in the Company and shall not entitle the Holder
to voting rights, dividends or any other rights associated with ownership of Shares.

 

    9

     

    

 

10.2 Terms
and Conditions. At the time any Award is made under this Article XI, the Company and the Holder shall enter into a Performance
Unit Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee may determine to
be appropriate. The Committee shall set forth in the applicable Performance Unit Agreement the Performance Period, Performance
Criteria and Performance Goals which the Holder and/or the Company would be required to satisfy before the Holder would become
entitled to payment pursuant to Section 11.3, the number of Units awarded to the Holder and the dollar value or formula assigned
to each such Unit. Such payment shall be subject to a “substantial risk of forfeiture” under Section 409A of the Code.
At the time of such Award, the Committee may, in its sole discretion, prescribe additional terms and conditions or restrictions
relating to Performance Unit Awards, including, but not limited to, rules pertaining to the effect of Termination of Service prior
to expiration of the applicable performance period. The terms and conditions of the respective Performance Unit Agreements need
not be identical.

 

10.3 Payments.
The Holder of a Performance Unit shall be entitled to receive a cash payment equal to the dollar value assigned to such Unit under
the applicable Performance Unit Agreement if the Holder and/or the Company satisfy (or partially satisfy, if applicable under the
applicable Performance Unit Agreement) the Performance Goals set forth in such Performance Unit Agreement. If necessary to satisfy
the requirements of Code Section 162(m), if applicable, the achievement of such Performance Goals shall be certified in writing
by the Committee prior to any payment. All payments shall be made no later than by the fifteenth (15th) day of the third (3rd)
calendar month next following the end of the Company’s fiscal year to which such performance goals and objectives relate.

 

ARTICLE XI

PERFORMANCE
STOCK AWARDS

 

11.1 Award.
A Performance Stock Award shall constitute a promise to grant Shares (or cash equal to the Fair Market Value of Shares) to the
Holder at the end of a specified Performance Period subject to achievement of specified Performance Goals. At the time a Performance
Stock Award is made, the Committee shall establish the Performance Period and applicable Performance Goals based on selected Performance
Criteria. Each Performance Stock Award may have different Performance Goals, in the discretion of the Committee. A Performance
Stock Award shall not constitute an equity interest in the Company and shall not entitle the Holder to voting rights, dividends
or any other rights associated with ownership of Shares unless and until the Holder shall receive a distribution of Shares pursuant
to Section 11.3.

 

11.2 Terms
and Conditions. At the time any Award is made under this Article XII, the Company and the Holder shall enter into a Performance
Stock Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee may determine to
be appropriate. The Committee shall set forth in the applicable Performance Stock Agreement the Performance Period, selected Performance
Criteria and Performance Goals which the Holder and/or the Company would be required to satisfy before the Holder would become
entitled to the receipt of Shares pursuant to such Holder’s Performance Stock Award and the number of Shares subject to such
Performance Stock Award. Such distribution shall be subject to a “substantial risk of forfeiture” under Section 409A
of the Code. If such Performance Goals are achieved, the distribution of Shares (or the payment of cash, as determined in the sole
discretion of the Committee), shall be made no later than by the fifteenth (15th) day of the third (3rd) calendar month next following
the end of the Company’s fiscal year to which such goals and objectives relate. At the time of such Award, the Committee
may, in its sole discretion, prescribe additional terms and conditions or restrictions relating to Performance Stock Awards, including,
but not limited to, rules pertaining to the effect of the Holder’s Termination of Service prior to the expiration of the
applicable performance period. The terms and conditions of the respective Performance Stock Agreements need not be identical.

 

11.3 Distributions
of Shares. The Holder of a Performance Stock Award shall be entitled to receive a cash payment equal to the Fair Market Value
of a Share, or one Share, as determined in the sole discretion of the Committee, for each Performance Stock Award subject to such
Performance Stock Agreement, if the Holder satisfies the applicable vesting requirement. If necessary to satisfy the requirements
of Code Section 162(m), if applicable, the achievement of such Performance Goals shall be certified in writing by the Committee
prior to any payment. Such distribution shall be made no later than by the fifteenth (15th) day of the third (3rd) calendar month
next following the end of the Company’s fiscal year to which such performance goals and objectives relate.

 

ARTICLE XII

DISTRIBUTION
EQUIVALENT RIGHTS

 

12.1 Award.
A Distribution Equivalent Right shall entitle the Holder to receive bookkeeping credits, cash payments and/or Share distributions
equal in amount to the distributions that would have been made to the Holder had the Holder held a specified number of Shares during
the specified period of the Award.

 

12.2 Terms
and Conditions. At the time any Award is made under this Article XIII, the Company and the Holder shall enter into a Distribution
Equivalent Rights Award Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee
may determine to be appropriate. The Committee shall set forth in the applicable Distribution Equivalent Rights Award Agreement
the terms and conditions, if any, including whether the Holder is to receive credits currently in cash, is to have such credits
reinvested (at Fair Market Value determined as of the date of reinvestment) in additional Shares or is to be entitled to choose
among such alternatives. Such receipt shall be subject to a “substantial risk of forfeiture” under Section 409A of
the Code and, if such Award becomes vested, the distribution of such cash or Shares shall be made no later than by the fifteenth
(15th) day of the third (3rd) calendar month next following the end of the Company’s fiscal year in which the Holder’s
interest in the Award vests. Distribution Equivalent Rights Awards may be settled in cash or in Shares, as set forth in the applicable
Distribution Equivalent Rights Award Agreement. A Distribution Equivalent Rights Award may, but need not be, awarded in tandem
with another Award (other than an Option or a SAR), whereby, if so awarded, such Distribution Equivalent Rights Award shall expire,
terminate or be forfeited by the Holder, as applicable, under the same conditions as under such other Award.

 

    10

     

    

 

12.3 Interest
Equivalents. The Distribution Equivalent Rights Award Agreement for a Distribution Equivalent Rights Award may provide for
the crediting of interest on a Distribution Rights Award to be settled in cash at a future date (but in no event later than by
the fifteenth (15th) day of the third (3rd) calendar month next following the end of the Company’s fiscal year in which such
interest is credited and vested), at a rate set forth in the applicable Distribution Equivalent Rights Award Agreement, on the
amount of cash payable thereunder.

 

ARTICLE XIII

STOCK APPRECIATION RIGHTS

 

13.1 Award.
A Stock Appreciation Right shall constitute a right, granted alone or in connection with a related Option, to receive a payment
equal to the increase in value of a specified number of Shares between the date of Award and the date of exercise.

 

13.2 Terms
and Conditions. At the time any Award is made under this Article XIV, the Company and the Holder shall enter into a Stock Appreciation
Right Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee may determine to
be appropriate. The Committee shall set forth in the applicable Stock Appreciation Right Agreement the terms and conditions of
the Stock Appreciation Right, including (i) the base value (the “Base Value”) for the Stock Appreciation Right,
which shall be not less than the Fair Market Value of an Share on the date of grant of the Stock Appreciation Right, (ii) the number
of Shares subject to the Stock Appreciation Right, (iii) the period during which the Stock Appreciation Right may be exercised;
provided, however, that no Stock Appreciation Right shall be exercisable after the expiration of ten (10) years from
the date of its grant, and (iv) any other special rules and/or requirements which the Committee imposes upon the Stock Appreciation
Right. Upon the exercise of some or all of the portion of a Stock Appreciation Right, the Holder shall receive a payment from the
Company, in cash or in the form of Shares having an equivalent Fair Market Value or in a combination of both, as determined in
the sole discretion of the Committee, equal to the product of:

 

(a) The excess of (i) the
Fair Market Value of an Share on the date of exercise, over (ii) the Base Value, multiplied by,

 

(b) The number of Shares with
respect to which the Stock Appreciation Right is exercised.

 

13.3 Tandem
Stock Appreciation Rights. If the Committee grants a Stock Appreciation Right which is intended to be a Tandem Stock Appreciation
Right, the Tandem Stock Appreciation Right shall be granted at the same time as the related Option, and the following special rules
shall apply:

 

(a) The Base Value shall be
equal to or greater than the per Share exercise price under the related Option;

 

(b) The Tandem
Stock Appreciation Right may be exercised for all or part of the Shares which are subject to the related Option, but solely upon
the surrender by the Holder of the Holder’s right to exercise the equivalent portion of the related Option (and when a Share
is purchased under the related Option, an equivalent portion of the related Tandem Stock Appreciation Right shall be canceled);

 

(c) The Tandem Stock Appreciation
Right shall expire no later than the date of the expiration of the related Option;

 

(d) The value
of the payment with respect to the Tandem Stock Appreciation Right may be no more than one hundred percent (100%) of the difference
between the per Share exercise price under the related Option and the Fair Market Value of the Shares subject to the related Option
at the time the Tandem Stock Appreciation Right is exercised, multiplied by the number of the Shares with respect to which the
Tandem Stock Appreciation Right is exercised; and

 

(e) The Tandem Stock Appreciation
Right may be exercised solely when the Fair Market Value of the Shares subject to the related Option exceeds the per Share exercise
price under the related Option.

 

    11

     

    

 

ARTICLE XIV

RECAPITALIZATION
OR REORGANIZATION

 

14.1 Adjustments
to Shares. The shares with respect to which Awards may be granted under the Plan are Shares as presently constituted; provided,
however, that if, and whenever, prior to the expiration or distribution to the Holder of Shares underlying an Award theretofore
granted, the Company shall effect a subdivision or consolidation of the Shares or the payment of an Share dividend on Shares without
receipt of consideration by the Company, the number of Shares with respect to which such Award may thereafter be exercised or satisfied,
as applicable, (i) in the event of an increase in the number of outstanding Shares, shall be proportionately increased, and the
purchase price per Share shall be proportionately reduced, and (ii) in the event of a reduction in the number of outstanding Shares,
shall be proportionately reduced, and the purchase price per Share shall be proportionately increased. Notwithstanding the foregoing
or any other provision of this Article XV, any adjustment made with respect to an Award (x) which is an Incentive Stock Option,
shall comply with the requirements of Section 424(a) of the Code, and in no event shall any adjustment be made which would render
any Incentive Stock Option granted under the Plan to be other than an “incentive stock option” for purposes of Section
422 of the Code, and (y) which is a Non-qualified Stock Option, shall comply with the requirements of Section 409A of the Code,
and in no event shall any adjustment be made which would render any Non-qualified Stock Option granted under the Plan to become
subject to Section 409A of the Code.

 

14.2
Recapitalization. If the Company recapitalizes or otherwise changes its capital structure, thereafter upon any exercise
or satisfaction, as applicable, of a previously granted Award, the Holder shall be entitled to receive (or entitled to purchase,
if applicable) under such Award, in lieu of the number of Shares then covered by such Award, the number and class of shares and
securities to which the Holder would have been entitled pursuant to the terms of the recapitalization if, immediately prior
to such recapitalization, the Holder had been the holder of record of the number of Shares then covered by such Award.

 

    12

     

    

 

14.3 Other
Events. In the event of changes to the outstanding Shares by reason of an extraordinary cash dividend, reorganization, merger,
consolidation, combination, split-up, spin-off, exchange or other relevant change in capitalization occurring after the date of
the grant of any Award and not otherwise provided for under this Article XV, any outstanding Awards and any Award Agreements evidencing
such Awards shall be adjusted by the Board in its discretion in such manner as the Board shall deem equitable or appropriate taking
into consideration the applicable accounting and tax consequences, as to the number and price of Shares or other consideration
subject to such Awards. In the event of any adjustment pursuant to Sections 15.1, 15.2 or this Section 15.3, the aggregate number
of Shares available under the Plan pursuant to Section 5.1 (and the Code Section 162(m) limit set forth therein) may be appropriately
adjusted by the Board, the determination of which shall be conclusive. In addition, the Committee may make provision for a cash
payment to a Holder or a person who has an outstanding Award. In addition, the Committee may make provision for a cash payment
to a Holder or a person who has an outstanding Award.

 

14.4 Change
of Control. The Committee may, in its sole discretion, at the time an Award is made or at any time prior to, coincident with
or after the time of a Change of Control, cause any Award either (i) to be canceled in consideration of a payment in cash or other
consideration in amount per share equal to the excess, if any, of the price or implied price per Share in the Change of Control
over the per Share exercise, base or purchase price of such Award, which may be paid immediately or over the vesting schedule of
the Award; (ii) to be assumed, or new rights substituted therefore, by the surviving corporation or a parent or subsidiary of such
surviving corporation following such Change of Control; (iii) accelerate any time periods, or waive any other conditions, relating
to the vesting, exercise, payment or distribution of an Award so that any Award to a Holder whose employment has been terminated
as a result of a Change of Control may be vested, exercised, paid or distributed in full on or before a date fixed by the Committee;
(iv) to be purchased from a Holder whose employment has been terminated as a result of a Change of Control, upon the Holder’s
request, for an amount of cash equal to the amount that could have been obtained upon the exercise, payment or distribution of
such rights had such Award been currently exercisable or payable; or (v) terminate any then outstanding Award or make any other
adjustment to the Awards then outstanding as the Committee deems necessary or appropriate to reflect such transaction or change.
The number of Shares subject to any Award shall be rounded to the nearest whole number.

 

14.5 Powers
Not Affected. The existence of the Plan and the Awards granted hereunder shall not affect in any way the right or power of
the Board or of the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other
change of the Company’s capital structure or business, any merger or consolidation of the Company, any issue of debt or equity
securities ahead of or affecting Shares or the rights thereof, the dissolution or liquidation of the Company or any sale, lease,
exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding.

 

14.6 No
Adjustment for Certain Awards. Except as hereinabove expressly provided, the issuance by the Company of shares of any
class or securities convertible into shares of any class, for cash, property, labor or services, upon direct sale, upon the exercise
of rights or warrants to subscribe therefor or upon conversion of shares or obligations of the Company convertible into such shares
or other securities, and in any case whether or not for fair value, shall not affect previously granted Awards, and no adjustment
by reason thereof shall be made with respect to the number of Shares subject to Awards theretofore granted or the purchase price
per Share, if applicable.

 

ARTICLE XV

AMENDMENT AND TERMINATION OF PLAN

 

The Plan
shall continue in effect, unless sooner terminated pursuant to this Article XVI, until the tenth (10th)
anniversary of the date on which it is adopted by the Board (except as to Awards outstanding on that date). The Board in its
discretion may terminate the Plan at any time with respect to any shares for which Awards have not theretofore been granted;
provided, however, that the Plan’s termination shall not materially and adversely impair the rights of a
Holder with respect to any Award theretofore granted without the consent of the Holder. The Board shall have the right to
alter or amend the Plan or any part hereof from time to time; provided, however, that without the approval by a
majority of the votes cast at a meeting of stockholders at which a quorum representing a majority of the shares of the
Company entitled to vote generally in the election of directors is present in person or by proxy, no amendment or
modification of the Plan may (i) materially increase the benefits accruing to Holders, (ii) except as otherwise expressly
provided in Article XV, materially increase the number of Shares subject to the Plan or the individual Award Agreements
specified in Article V, (iii) materially modify the requirements for participation in the Plan, or (iv) amend, modify or
suspend Section 7.7 (re-pricing prohibitions) or this Article XVI. In addition, no change in any Award theretofore granted
may be made which would materially and adversely impair the rights of a Holder with respect to such Award without the consent
of the Holder (unless such change is required in order to cause the benefits under the Plan to qualify as
“performance-based” compensation within the meaning of Section 162(m) of the Code or to exempt the Plan or any
Award from Section 409A of the Code).

 

    13

     

    

 

ARTICLE XVI

MISCELLANEOUS

 

16.1 No
Right to Award. Neither the adoption of the Plan by the Company nor any action of the Board or the Committee shall be
deemed to give an Employee, Director or Consultant any right to an Award except as may be evidenced by an Award Agreement duly
executed on behalf of the Company, and then solely to the extent and on the terms and conditions expressly set forth therein.

 

16.2 No
Rights Conferred. Nothing contained in the Plan shall (i) confer upon any Employee any right with respect to continuation
of employment with the Company or any Affiliate, (ii) interfere in any way with any right of the Company or any Affiliate to terminate
the employment of an Employee at any time, (iii) confer upon any Director any right with respect to continuation of such Director’s
membership on the Board, (iv) interfere in any way with any right of the Company or an Affiliate to terminate a Director’s
membership on the Board at any time, (v) confer upon any Consultant any right with respect to continuation of his or her consulting
engagement with the Company or any Affiliate, or (vi) interfere in any way with any right of the Company or an Affiliate to terminate
a Consultant’s consulting engagement with the Company or an Affiliate at any time.

 

16.3 Other
Laws; No Fractional Shares; Withholding. The Company shall not be obligated by virtue of any provision of the Plan to
recognize the exercise of any Award or to otherwise sell or issue Shares in violation of any laws, rules or regulations, and any
postponement of the exercise or settlement of any Award under this provision shall not extend the term of such Award. Neither the
Company nor its directors or officers shall have any obligation or liability to a Holder with respect to any Award (or Shares issuable
thereunder) (i) that shall lapse because of such postponement, or (ii) for any failure to comply with the requirements of any applicable
law, rules or regulations, including but not limited to any failure to comply with the requirements of Section 409A of this Code.
No fractional Shares shall be delivered, nor shall any cash in lieu of fractional Shares be paid. The Company shall have the right
to deduct in cash (whether under this Plan or otherwise) in connection with all Awards any taxes required by law to be withheld
and to require any payments required to enable it to satisfy its withholding obligations. In the case of any Award satisfied in
the form of Shares, no Shares shall be issued unless and until arrangements satisfactory to the Company shall have been made to
satisfy any tax withholding obligations applicable with respect to such Award. Subject to such terms and conditions as the Committee
may impose, the Company shall have the right to retain, or the Committee may, subject to such terms and conditions as it may establish
from time to time, permit Holders to elect to tender, Shares (including Shares issuable in respect of an Award) to satisfy, in
whole or in part, the amount required to be withheld.

 

16.4 No
Restriction on Corporate Action. Nothing contained in the Plan shall be construed to prevent the Company or any Affiliate from
taking any corporate action which is deemed by the Company or such Affiliate to be appropriate or in its best interest, whether
or not such action would have an adverse effect on the Plan or any Award made under the Plan. No Employee, Director, Consultant,
beneficiary or other person shall have any claim against the Company or any Affiliate as a result of any such action.

 

16.5 Restrictions
on Transfer. No Award under the Plan or any Award Agreement and no rights or interests herein or therein, shall or may be assigned,
transferred, sold, exchanged, encumbered, pledged or otherwise hypothecated or disposed of by a Holder except (i) by will or by
the laws of descent and distribution, or (ii) where permitted under applicable tax rules, by gift to any Family Member of the Holder,
subject to compliance with applicable laws. An Award may be exercisable during the lifetime of the Holder only by such Holder or
by the Holder’s guardian or legal representative unless it has been transferred by gift to a Family Member of the Holder,
in which case it shall be exercisable solely by such transferee. Notwithstanding any such transfer, the Holder shall continue to
be subject to the withholding requirements provided for under Section 17.3 hereof.

 

16.6 Beneficiary
Designations. Each Holder may, from time to time, name a beneficiary or beneficiaries (who may be contingent or successive
beneficiaries) for purposes of receiving any amount which is payable in connection with an Award under the Plan upon or subsequent
to the Holder’s death. Each such beneficiary designation shall serve to revoke all prior beneficiary designations, be in
a form prescribed by the Company and be effective solely when filed by the Holder in writing with the Company during the Holder’s
lifetime. In the absence of any such written beneficiary designation, for purposes of the Plan, a Holder’s beneficiary shall
be the Holder’s estate.

 

16.7 Rule
16b-3. It is intended that the Plan and any Award made to a person subject to Section 16 of the Exchange Act shall meet all
of the requirements of Rule 16b-3. If any provision of the Plan or of any such Award would disqualify the Plan or such Award under,
or would otherwise not comply with the requirements of, Rule 16b-3, such provision or Award shall be construed or deemed to have
been amended as necessary to conform to the requirements of Rule 16b-3.

 

    14

     

    

 

16.8 Section
162(m). The following conditions shall apply if it is intended that the requirements of Section 162(m) of the Code be
satisfied such that Awards under the Plan which are made to Holders who are “covered employees” (as defined in Section
162(m) of the Code) shall constitute “performance-based” compensation within the meaning of Section 162(m) of the Code:
Any Performance Goal(s) applicable to Qualified Performance-Based Awards shall be objective, shall be established not later than
ninety (90) days after the beginning of any applicable Performance Period (or at such other date as may be required or permitted
for “performance-based” compensation under Section 162(m) of the Code) and shall otherwise meet the requirements of
Section 162(m) of the Code, including the requirement that the outcome of the Performance Goal or Goals be substantially uncertain
(as defined in the regulations under Section 162(m) of the Code) at the time established. The Performance Criteria to be utilized
under the Plan to establish Performance Goals shall consist of objective tests based on one or more of the following: earnings
or earnings per share, cash flow or cash flow per share, operating cash flow or operating cash flow per share revenue growth, product
revenue growth, financial return ratios (such as return on equity, return on investment and/or return on assets), share price performance,
stockholder return, equity and/or value, operating income, operating margins, earnings before interest, taxes, depreciation and
amortization, earnings, pre- or post-tax income, economic value added (or an equivalent metric), profit returns and margins, credit
quality, sales growth, market share, working capital levels, comparisons with various share market indices, year-end cash, debt
reduction, assets under management, operating efficiencies, strategic partnerships or transactions (including co-development, co-marketing,
profit sharing, joint venture or other similar arrangements), and/or financing and other capital raising transaction. Performance
criteria may be established on a Company-wide basis or with respect to one or more Company business units or divisions or subsidiaries;
and either in absolute terms, relative to the performance of one or more similarly situated companies, or relative to the performance
of an index covering a peer group of companies. When establishing Performance Goals for the applicable Performance Period, the
Committee may exclude any or all “extraordinary items” as determined under U.S. generally accepted accounting principles
including, without limitation, the charges or costs associated with restructurings of the Company, discontinued operations, other
unusual or non-recurring items, and the cumulative effects of accounting changes, and as identified in the Company’s financial
statements, notes to the Company’s financial statements or management’s discussion and analysis of financial condition
and results of operations contained in the Company’s most recent annual report filed with the U.S. Securities and Exchange
Commission pursuant to the Exchange Act. Holders who are “covered employees” (as defined in Section 162(m) of the Code)
shall be eligible to receive payment under a Qualified Performance-Based Award which is subject to achievement of a Performance
Goal or Goals only if the applicable Performance Goal or Goals are achieved within the applicable Performance Period, as determined
by the Committee. If any provision of the Plan would disqualify the Plan or would not otherwise permit the Plan to comply with
Section 162(m) of the Code as so intended, such provision shall be construed or deemed amended to conform to the requirements or
provisions of Section 162(m) of the Code. The Committee may postpone the exercising of Awards, the issuance or delivery of Shares
under any Award or any action permitted under the Plan to prevent the Company or any subsidiary from being denied a federal income
tax deduction, provided that such deferral satisfies the requirements of Section 409A of the Code. For purposes of the requirements
of Treasury Regulation Section 1.162-27(e)(4)(i), the maximum aggregate amount that may be paid in cash during any calendar year
to any one person (measured from the date of any payment) with respect to one or more Awards payable in cash shall be One Million
Dollars ($1,000,000).

 

16.9 Clawback
Policy. Notwithstanding any contained herein or in any incentive “performance based” Awards under the Plan shall
be subject to reduction, forfeiture or repayment by reason of a correction or restatement of the Company’s financial information
if and to the extent such reduction or repayment is required by any applicable law.

 

16.10 Section
409A. Notwithstanding any other provision of the Plan, the Committee shall have no authority to issue an Award under the Plan
with terms and/or conditions which would cause such Award to constitute non-qualified “deferred compensation” under
Section 409A of the Code unless such Award shall be structured to be exempt from or comply with all requirements of Code Section
409A. The Plan and all Award Agreements are intended to comply with the requirements of Section 409A of the Code (or to be exempt
therefrom) and shall be so interpreted and construed and no amount shall be paid or distributed from the Plan unless and until
such payment complies with all requirements of Code Section 409A. It is the intent of the Company that the provisions of this Agreement
and all other plans and programs sponsored by the Company be interpreted to comply in all respects with Code Section 409A, however,
the Company shall have no liability to the Holder, or any successor or beneficiary thereof, in the event taxes, penalties or excise
taxes may ultimately be determined to be applicable to any payment or benefit received by the Holder or any successor or beneficiary
thereof.

 

16.11 Indemnification.
Each person who is or shall have been a member of the Committee or of the Board shall be indemnified and held harmless by the Company
against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred thereby in connection with
or resulting from any claim, action, suit, or proceeding to which such person may be made a party or may be involved by reason
of any action taken or failure to act under the Plan and against and from any and all amounts paid thereby in settlement thereof,
with the Company’s approval, or paid thereby in satisfaction of any judgment in any such action, suit, or proceeding against
such person; provided, however, that such person shall give the Company an opportunity, at its own expense, to handle
and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification
shall not be exclusive and shall be independent of any other rights of indemnification to which such persons may be entitled under
the Company’s Articles of Incorporation or By-laws, by contract, as a matter of law, or otherwise.

 

16.12 Other
Benefit Plans. No Award, payment or amount received hereunder shall be taken into account in computing an Employee’s
salary or compensation for the purposes of determining any benefits under any pension, retirement, life insurance or other benefit
plan of the Company or any Affiliate, unless such other plan specifically provides for the inclusion of such Award, payment or
amount received. Nothing in the Plan shall be construed to limit the right of the Company to establish other plans or to pay compensation
to its employees, in cash or property, in a manner which is not expressly authorized under the Plan.

 

    15

     

    

 

16.13 Limits
of Liability. Any liability of the Company with respect to an Award shall be based solely upon the contractual obligations
created under the Plan and the Award Agreement. None of the Company, any member of the Board nor any member of the Committee shall
have any liability to any party for any action taken or not taken, in good faith, in connection with or under the Plan.

 

16.14 Governing
Law. Except as otherwise provided herein, the Plan shall be construed in accordance with the laws of the State of Delaware,
without regard to principles of conflicts of law.

 

16.15 Severability
of Provisions. If any provision of the Plan is held invalid or unenforceable, such invalidity or unenforceability shall
not affect any other provision of the Plan, and the Plan shall be construed and enforced as if such invalid or unenforceable provision
had not been included in the Plan.

 

16.16 No
Funding. The Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or to make
any other segregation of funds or assets to ensure the payment of any Award. Prior to receipt of Shares or a cash distribution
pursuant to the terms of an Award, such Award shall represent an unfunded unsecured contractual obligation of the Company and the
Holder shall have no greater claim to the Shares underlying such Award or any other assets of the Company or Affiliate than any
other unsecured general creditor.

 

16.17
Headings. Headings used throughout the Plan are for convenience only and shall not be given legal significance.

 

 

16

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