Document:

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  Exhibit
10.1

 

FREEDOM INTERNET GROUP, INC.

 2019
EQUITY INCENTIVE PLAN

 

1. Purpose;
Eligibility.

 

1.1 General
Purpose. The name of this plan
is the Freedom Internet Group, Inc. 2019 Equity Incentive Plan (the
"Plan"). The purposes of the Plan are to (a) enable
Freedom Internet Group, Inc., a Puerto Rico corporation (the
"Company"), and any Affiliate to attract and retain the
types of Employees, Consultants and Directors who will contribute
to the Company's long range success; (b) provide incentives that
align the interests of Employees, Consultants and Directors with
those of the shareholders of the Company; and (c) promote the
success of the Company's business.

 

1.2 Eligible
Award Recipients. The persons
eligible to receive Awards are the Employees, Consultants and
Directors of the Company and its Affiliates and such other
individuals designated by the Committee who are reasonably expected
to become Employees, Consultants and Directors after the receipt of
Awards.

 

1.3 Available
Awards. Awards that may be
granted under the Plan include: (a) Incentive Stock Options, (b)
Non-qualified Stock Options, (c) Stock Appreciation Rights, (d)
Restricted Awards, (e) Performance Share Awards, (f) Cash Awards,
and (g) Other Equity-Based Awards.

 

2. Definitions.

 

"Affiliate" means a corporation or other entity that,
directly or through one or more intermediaries, controls, is
controlled by or is under common control with, the
Company.

 

"Applicable
Laws" means the requirements
related to or implicated by the administration of the Plan under
applicable state corporate law, United States federal and state
securities laws, the Code, any stock exchange or quotation system
on which the shares of Common Stock are listed or quoted, and the
applicable laws of any foreign country or jurisdiction where Awards
are granted under the Plan.

 

"Award" means any right granted under the Plan,
including an Incentive Stock Option, a Non-qualified Stock Option,
a Stock Appreciation Right, a Restricted Award, a Performance Share
Award, a Cash Award, or an Other Equity-Based
Award.

 

"Award
Agreement" means a written
agreement, contract, certificate or other instrument or document
evidencing the terms and conditions of an individual Award granted
under the Plan which may, in the discretion of the Company, be
transmitted electronically to any Participant. Each Award Agreement
shall be subject to the terms and conditions of the
Plan.

 

 

1

 

 

"Beneficial
Owner" has the meaning assigned
to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act,
except that in calculating the beneficial ownership of any
particular Person, such Person shall be deemed to have beneficial
ownership of all securities that such Person has the right to
acquire by conversion or exercise of other securities, whether such
right is currently exercisable or is exercisable only after the
passage of time. The terms "Beneficially Owns" and "Beneficially
Owned" have a corresponding meaning.

 

"Board" means the Board of Directors of the Company, as
constituted at any time.

 

"Cash Award"
means an Award denominated in cash
that is granted under Section 7.4 of the Plan.

 

"Cause" means:

 

 

         

With
respect to any Employee or Consultant, unless the applicable Award
Agreement states otherwise:

 

(a)
If the Employee or Consultant is a party to an employment or
service agreement with the Company or its Affiliates and such
agreement provides for a definition of Cause, the definition
contained therein; or

 

(b)
If no such agreement exists, or if such agreement does not define
Cause: (i) the commission of, or plea of guilty or no contest to, a
felony or a crime involving moral turpitude or the commission of
any other act involving willful malfeasance or material fiduciary
breach with respect to the Company or an Affiliate; (ii) conduct
that results in or is reasonably likely to result in harm to the
reputation or business of the Company or any of its Affiliates;
(iii) gross negligence or willful misconduct with respect to the
Company or an Affiliate; or (iv) material violation of state or
federal securities laws.

 

With
respect to any Director, unless the applicable Award Agreement
states otherwise, a determination by a majority of the
disinterested Board members that the Director has engaged in any of
the following:

 

(a)
malfeasance in office;

 

(b)
gross misconduct or neglect;

 

(c)
false or fraudulent misrepresentation inducing the director's
appointment;

 

(d)
willful conversion of corporate funds; or

 

(e)
repeated failure to participate in Board meetings on a regular
basis despite having received proper notice of the meetings in
advance.

 

 

The
Committee, in its absolute discretion, shall determine the effect
of all matters and questions relating to whether a Participant has
been discharged for Cause.

 

 

 

2

 

 

"Change in
Control"

 

         

(a)
The direct or indirect sale, transfer, conveyance or other
disposition (other than by way of merger or consolidation), in one
or a series of related transactions, of all or substantially all of
the properties or assets of the Company and its subsidiaries, taken
as a whole, to any Person that is not a subsidiary of the
Company;

 

(b)
The Incumbent Directors cease for any reason to constitute at least
a majority of the Board;

 

(c)
The date which is 10 business days prior to the consummation of a
complete liquidation or dissolution of the Company;

 

(d) The acquisition by any Person of Beneficial
Ownership of 50% or more (on a fully diluted basis) of either (i)
the then outstanding shares of Common Stock of the Company, taking
into account as outstanding for this purpose such Common Stock
issuable upon the exercise of options or warrants, the conversion
of convertible stock or debt, and the exercise of any similar right
to acquire such Common Stock (the "Outstanding Company Common
Stock") or (ii) the combined
voting power of the then outstanding voting securities of the
Company entitled to vote generally in the election of directors
(the "Outstanding Company Voting
Securities");
provided,
however, that for purposes of
this Plan, the following acquisitions shall not constitute a Change
in Control: (A) any acquisition by the Company or any Affiliate,
(B) any acquisition by any employee benefit plan sponsored or
maintained by the Company or any subsidiary, (C) any acquisition
which complies with clauses, (i), (ii) and (iii) of subsection (e)
of this definition or (D) in respect of an Award held by a
particular Participant, any acquisition by the Participant or any
group of persons including the Participant (or any entity
controlled by the Participant or any group of persons including the
Participant); or

 

(e) The consummation of a reorganization, merger,
consolidation, statutory share exchange or similar form of
corporate transaction involving the Company that requires the
approval of the Company's shareholders, whether for such
transaction or the issuance of securities in the transaction (a
"Business
Combination"), unless
immediately following such Business Combination: (i) more than 50%
of the total voting power of (A) the entity resulting from such
Business Combination (the "Surviving
Company"), or (B) if
applicable, the ultimate parent entity that directly or indirectly
has beneficial ownership of sufficient voting securities eligible
to elect a majority of the members of the board of directors (or
the analogous governing body) of the Surviving Company (the
"Parent
Company"), is represented by
the Outstanding Company Voting Securities that were outstanding
immediately prior to such Business Combination (or, if applicable,
is represented by shares into which the Outstanding Company Voting
Securities were converted pursuant to such Business Combination),
and such voting power among the holders thereof is in substantially
the same proportion as the voting power of the Outstanding Company
Voting Securities among the holders thereof immediately prior to
the Business Combination; (ii) no Person (other than any employee
benefit plan sponsored or maintained by the Surviving Company or
the Parent Company) is or becomes the Beneficial Owner, directly or
indirectly, of 50% or more of the total voting power of the
outstanding voting securities eligible to elect members of the
board of directors of the Parent Company (or the analogous
governing body) (or, if there is no Parent Company, the Surviving
Company); and (iii) at least a majority of the members of the board
of directors (or the analogous governing body) of the Parent
Company (or, if there is no Parent Company, the Surviving Company)
following the consummation of the Business Combination were Board
members at the time of the Board's approval of the execution of the
initial agreement providing for such Business
Combination.

 

 

 

 

3

 

"Code" means the Internal Revenue Code of 1986, as it
may be amended from time to time. Any reference to a section of the
Code shall be deemed to include a reference to any regulations
promulgated thereunder.

 

"Committee" means a committee of one or more members of the
Board appointed by the Board to administer the Plan in accordance
with Section 3.3 and
Section 3.4.

 

"Common Stock" means the common stock, $.001 par value per
share, of the Company, or such other securities of the Company as
may be designated by the Committee from time to time in
substitution thereof.

 

"Company" means Freedom Internet Group, Inc. a Puerto Rico
corporation, and any successor thereto.

 

"Consultant" means any individual or entity which performs
bona fide services to the Company or an Affiliate, other than as an
Employee or Director, and who may be offered securities
registerable pursuant to a registration statement on Form S-8 under
the Securities Act.

 

"Continuous
Service" means that the
Participant's service with the Company or an Affiliate, whether as
an Employee, Consultant or Director, is not interrupted or
terminated. The Participant's Continuous Service shall not be
deemed to have terminated merely because of a change in the
capacity in which the Participant renders service to the Company or
an Affiliate as an Employee, Consultant or Director or a change in
the entity for which the Participant renders such service,
provided
that there is no interruption
or termination of the Participant's Continuous Service;
provided further
that if any Award is subject to
Section 409A of the Code, this sentence shall only be given effect
to the extent consistent with Section 409A of the Code. For
example, a change in status from an Employee of the Company to a
Director of an Affiliate will not constitute an interruption of
Continuous Service. The Committee or its delegate, in its sole
discretion, may determine whether Continuous Service shall be
considered interrupted in the case of any leave of absence approved
by that party, including sick leave, military leave or any other
personal or family leave of absence. The Committee or its delegate,
in its sole discretion, may determine whether a Company
transaction, such as a sale or spin-off of a division or subsidiary
that employs a Participant, shall be deemed to result in a
termination of Continuous Service for purposes of affected Awards,
and such decision shall be final, conclusive and
binding.

 

"Deferred Stock Units
(DSUs)" has the meaning set
forth in Section 7.2 hereof.

 

"Director" means a member of the Board.

 

 

 

4

 

"Disability" means, unless the applicable Award Agreement
says otherwise, that the Participant is unable to engage in any
substantial gainful activity by reason of any medically
determinable physical or mental impairment; provided, however,
for purposes of determining the term
of an Incentive Stock Option pursuant to Section 6.10
hereof, the term Disability shall have
the meaning ascribed to it under Section 22(e)(3) of the Code. The
determination of whether an individual has a Disability shall be
determined under procedures established by the Committee. Except in
situations where the Committee is determining Disability for
purposes of the term of an Incentive Stock Option pursuant to
Section 6.10 hereof within the meaning of Section 22(e)(3) of
the Code, the Committee may rely on any determination that a
Participant is disabled for purposes of benefits under any
long-term disability plan maintained by the Company or any
Affiliate in which a Participant participates.

 

"Disqualifying
Disposition" has the meaning
set forth in Section 14.12.

 

"Effective
Date" shall mean the date that
the Company's shareholders approve this Plan if such shareholder
approval occurs before the first anniversary of the date the Plan
is adopted by the Board.

 

"Employee" means any person, including an Officer or
Director, employed by the Company or an Affiliate;
provided,
that, for purposes of
determining eligibility to receive Incentive Stock Options, an
Employee shall mean an employee of the Company or a parent or
subsidiary corporation within the meaning of Section 424 of the
Code. Mere service as a Director or payment of a director's fee by
the Company or an Affiliate shall not be sufficient to constitute
"employment" by the Company or an Affiliate.

 

"Exchange Act" means the Securities Exchange Act of 1934, as
amended.

 

"Fair Market
Value" means, as of any date,
the value of the Common Stock as determined below. If the Common
Stock is listed on any established stock exchange, national market
system or over the counter quotation system, the Fair Market Value
shall be the closing price of a share of Common Stock (or if no
sales were reported the closing price on the date immediately
preceding such date) as quoted on such exchange or system on the
day of determination, as reported on such exchange or system
official website. In the absence of an established market for the
Common Stock, the Fair Market Value shall be determined in good
faith by the Committee and such determination shall be conclusive
and binding on all persons.

 

"Fiscal Year"
means the Company's fiscal
year.

 

"Free Standing
Rights" has the meaning set
forth in Section 7.1(a).

 

 

5

 

"Good Reason" means, unless the applicable Award Agreement
states otherwise:

 

 

        

(a)
If an Employee or Consultant is a party to an employment or service
agreement with the Company or its Affiliates and such agreement
provides for a definition of Good Reason, the definition contained
therein; or

 

(b)
If no such agreement exists or if such agreement does not define
Good Reason, the occurrence of the following without the
Participant's express written consent, which is not remedied by the
Company within thirty (30) days of its receipt of a written notice
from the Participant describing the applicable circumstances (which
notice must be provided by the Participant within ninety (90) days
of the Participant's knowledge of the applicable circumstances): a
geographical relocation of the Participant's principal office
location by more than one hundred fifty (150) miles.

 

 

"Grant Date" means the date on which the Committee adopts a
resolution, or takes other appropriate action, expressly granting
an Award to a Participant that specifies the key terms and
conditions of the Award or, if a later date is set forth in such
resolution, then such date as is set forth in such
resolution.

 

"Incentive Stock
Option" means an Option that is
designated by the Committee as an incentive stock option within the
meaning of Section 422 of the Code and that meets the requirements
set out in the Plan.

 

"Incumbent
Directors" means individuals
who, on the Effective Date, constitute the Board,
provided
that any individual becoming a
Director subsequent to the Effective Date whose election or
nomination for election to the Board was approved by a vote of at
least two-thirds of the Incumbent Directors then on the Board
(either by a specific vote or by approval of the proxy statement of
the Company in which such person is named as a nominee for Director
without objection to such nomination) shall be an Incumbent
Director. No individual initially elected or nominated as a
director of the Company as a result of an actual or threatened
election contest with respect to Directors or as a result of any
other actual or threatened solicitation of proxies by or on behalf
of any person other than the Board shall be an Incumbent
Director.

 

"Non-Employee
Director" means a Director who
is a "non-employee director" within the meaning of Rule
16b-3.

 

"Non-qualified Stock
Option" means an Option that by
its terms does not qualify or is not intended to qualify as an
Incentive Stock Option.

 

"Officer" means a person who is an officer of the Company
within the meaning of Section 16 of the Exchange Act and the rules
and regulations promulgated thereunder.

 

"Option" means an Incentive Stock Option or a
Non-qualified Stock Option granted pursuant to the
Plan.

 

 

6

 

"Optionholder" means a person to whom an Option is granted
pursuant to the Plan or, if applicable, such other person who holds
an outstanding Option.

 

"Option Exercise
Price" means the price at which
a share of Common Stock may be purchased upon the exercise of an
Option.

 

"Other Equity-Based
Award" means an Award that is
not an Option, Stock Appreciation Right, Restricted Stock,
Restricted Stock Unit, or Performance Share Award that is granted
under Section 7.4 and is
payable by delivery of Common Stock and/or which is measured by
reference to the value of Common Stock.

 

"Participant" means an eligible person to whom an Award is
granted pursuant to the Plan or, if applicable, such other person
who holds an outstanding Award.

 

"Performance
Goals" means, for a Performance
Period, the one or more goals established by the Committee for the
Performance Period based upon business criteria or other
performance measures determined by the Committee in its
discretion.

 

"Performance
Period" means the one or more
periods of time not less than one fiscal quarter in duration, as
the Committee may select, over which the attainment of one or more
Performance Goals will be measured for the purpose of determining a
Participant's right to and the payment of a Performance Share Award
or a Cash Award.

 

"Performance Share
Award" means any Award granted
pursuant to Section 7.3 hereof.

 

"Performance
Share" means the grant of a
right to receive a number of actual shares of Common Stock or share
units based upon the performance of the Company during a
Performance Period, as determined by the
Committee.

 

"Permitted
Transferee" means: (a) a member
of the Optionholder's immediate family (child, stepchild,
grandchild, parent, stepparent, grandparent, 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 Optionholder's
household (other than a tenant or employee), a trust in which these
persons have more than 50% of the beneficial interest, a foundation
in which these persons (or the Optionholder) control the management
of assets, and any other entity in which these persons (or the
Optionholder) own more than 50% of the voting interests; (b) third
parties designated by the Committee in connection with a program
established and approved by the Committee pursuant to which
Participants may receive a cash payment or other consideration in
consideration for the transfer of a Non-qualified Stock Option; and
(c) such other transferees as may be permitted by the Committee in
its sole discretion.

 

"Person" means a person as defined in Section 13(d)(3) of
the Exchange Act.

 

"Plan" means this Freedom Internet Group, Inc. 2019
Equity Incentive Plan, as amended and/or amended and restated from
time to time.

 

 

7

 

"Related
Rights" has the meaning set
forth in Section 7.1(a).

 

"Restricted
Award" means any Award granted
pursuant to Section 7.2(a).

 

"Restricted
Period" has the meaning set
forth in Section 7.2(a).

 

"Rule 16b-3" means Rule 16b-3 promulgated under the Exchange
Act or any successor to Rule 16b-3, as in effect from time to
time.

 

"Securities
Act" means the Securities Act
of 1933, as amended.

 

"Stock Appreciation
Right" means the right pursuant
to an Award granted under Section 7.1 to receive, upon exercise, an amount payable in
cash or shares equal to the number of shares subject to the Stock
Appreciation Right that is being exercised multiplied by the excess
of (a) the Fair Market Value of a share of Common Stock on the date
the Award is exercised, over (b) the exercise price specified in
the Stock Appreciation Right Award Agreement.

 

"Stock for Stock
Exchange" has the meaning set
forth in Section 6.4.

 

"Substitute Award"
has the meaning set forth in
Section 4.6.

 

"Ten Percent
Shareholder" means a person who
owns (or is deemed to own pursuant to Section 424(d) of the Code)
stock possessing more than 10% of the total combined voting power
of all classes of stock of the Company or of any of its
Affiliates.

 

"Total Share
Reserve" has the meaning set
forth in Section 4.1.

 

3. Administration.

 

3.1 Authority
of Committee. The Plan shall be
administered by the Committee or, in the Board's sole discretion,
by the Board. Subject to the terms of the Plan, the Committee's
charter and Applicable Laws, and in addition to other express
powers and authorization conferred by the Plan, the Committee shall
have the authority:

 

(a) to
construe and interpret the Plan and apply its
provisions;

 

(b) to
promulgate, amend, and rescind rules and regulations relating to
the administration of the Plan;

 

(c) to
authorize any person to execute, on behalf of the Company, any
instrument required to carry out the purposes of the
Plan;

 

(d) to
delegate its authority to one or more Officers of the Company with
respect to Awards that do not involve "insiders" within the meaning
of Section 16 of the Exchange Act;

 

(e) to
determine when Awards are to be granted under the Plan and the
applicable Grant Date;

 

 

8

 

(f) from
time to time to select, subject to the limitations set forth in
this Plan, those eligible Award recipients to whom Awards shall be
granted;

 

(g) to
determine the number of shares of Common Stock to be made subject
to each Award;

 

(h) to
determine whether each Option is to be an Incentive Stock Option or
a Non-qualified Stock Option;

 

(i) to
prescribe the terms and conditions of each Award, including,
without limitation, the exercise price and medium of payment and
vesting provisions, and to specify the provisions of the Award
Agreement relating to such grant;

 

(j) to
determine the target number of Performance Shares to be granted
pursuant to a Performance Share Award, the performance measures
that will be used to establish the Performance Goals, the
Performance Period(s) and the number of Performance Shares earned
by a Participant;

 

(k) to
amend any outstanding Awards, including for the purpose of
modifying the time or manner of vesting, or the term of any
outstanding Award; provided,
however, that if any such
amendment impairs a Participant's rights or increases a
Participant's obligations under his or her Award or creates or
increases a Participant's federal income tax liability with respect
to an Award, such amendment shall also be subject to the
Participant's consent;

 

(l) to
determine the duration and purpose of leaves of absences which may
be granted to a Participant without constituting termination of
their employment for purposes of the Plan, which periods shall be
no shorter than the periods generally applicable to Employees under
the Company's employment policies;

 

(m) to
make decisions with respect to outstanding Awards that may become
necessary upon a change in corporate control or an event that
triggers anti-dilution adjustments;

 

(n) to
interpret, administer, reconcile any inconsistency in, correct any
defect in and/or supply any omission in the Plan and any instrument
or agreement relating to, or Award granted under, the Plan;
and

 

(o) to
exercise discretion to make any and all other determinations which
it determines to be necessary or advisable for the administration
of the Plan.

 

The Committee also may modify the purchase price
or the exercise price of any outstanding Award, provided that
if the modification effects a
repricing, shareholder approval shall be required before the
repricing is effective.

 

3.2 Committee
Decisions Final. All decisions
made by the Committee pursuant to the provisions of the Plan shall
be final and binding on the Company and the Participants, unless
such decisions are determined by a court having jurisdiction to be
arbitrary and capricious.

 

 

9

 

3.3 Delegation.
The Committee or, if no Committee has been appointed, the Board may
delegate administration of the Plan to a committee or committees of
one or more members of the Board, and the term "Committee" shall apply to any person or persons to whom
such authority has been delegated. The Committee shall have the
power to delegate to a subcommittee any of the administrative
powers the Committee is authorized to exercise (and references in
this Plan to the Board or the Committee shall thereafter be to the
committee or subcommittee), subject, however, to such resolutions,
not inconsistent with the provisions of the Plan, as may be adopted
from time to time by the Board. The Board may abolish the Committee
at any time and revest in the Board the administration of the Plan.
The members of the Committee shall be appointed by and serve at the
pleasure of the Board. From time to time, the Board may increase or
decrease the size of the Committee, add additional members to,
remove members (with or without cause) from, appoint new members in
substitution therefor, and fill vacancies, however caused, in the
Committee. The Committee shall act pursuant to a vote of the
majority of its members or, in the case of a Committee comprised of
only two members, the unanimous consent of its members, whether
present or not, or by the written consent of the majority of its
members and minutes shall be kept of all of its meetings and copies
thereof shall be provided to the Board. Subject to the limitations
prescribed by the Plan and the Board, the Committee may establish
and follow such rules and regulations for the conduct of its
business as it may determine to be advisable.

 

3.4 Committee
Composition. Except as
otherwise determined by the Board, the Committee shall consist
solely of two or more Non-Employee Directors. The Board shall have
discretion to determine whether or not it intends to comply with
the exemption requirements of Rule 16b-3. However, if the Board
intends to satisfy such exemption requirements, with respect to any
insider subject to Section 16 of the Exchange Act, the Committee
shall be a compensation committee of the Board that at all times
consists solely of two or more Non-Employee Directors. Within the
scope of such authority, the Board or the Committee may delegate to
a committee of one or more members of the Board who are not
Non-Employee Directors the authority to grant Awards to eligible
persons who are not then subject to Section 16 of the Exchange Act.
Nothing herein shall create an inference that an Award is not
validly granted under the Plan in the event Awards are granted
under the Plan by a compensation committee of the Board that does
not at all times consist solely of two or more Non-Employee
Directors.

 

3.5 Indemnification.
In addition to such other rights of indemnification as they may
have as Directors or members of the Committee, and to the extent
allowed by Applicable Laws, the Committee shall be indemnified by
the Company against the reasonable expenses, including attorney's
fees, actually incurred in connection with any action, suit or
proceeding or in connection with any appeal therein, to which the
Committee may be party by reason of any action taken or failure to
act under or in connection with the Plan or any Award granted under
the Plan, and against all amounts paid by the Committee in
settlement thereof (provided,
however, that the settlement
has been approved by the Company, which approval shall not be
unreasonably withheld) or paid by the Committee in satisfaction of
a judgment in any such action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such
action, suit or proceeding that such Committee did not act in good
faith and in a manner which such person reasonably believed to be
in the best interests of the Company, or in the case of a criminal
proceeding, had no reason to believe that the conduct complained of
was unlawful; provided,
however, that within 60 days
after the institution of any such action, suit or proceeding, such
Committee shall, in writing, offer the Company the opportunity at
its own expense to handle and defend such action, suit or
proceeding.

 

 

 

10

 

4. Shares
Subject to the Plan.

 

4.1 Subject
to adjustment in accordance with Section 11, no more than 700,000 shares of Common Stock
shall be available for the grant of Awards under the Plan (the
"Total Share
Reserve"). During the terms of
the Awards, the Company shall keep available at all times the
number of shares of Common Stock required to satisfy such
Awards.

 

4.2 Shares
of Common Stock available for distribution under the Plan may
consist, in whole or in part, of authorized and unissued shares,
treasury shares or shares reacquired by the Company in any
manner.

 

4.3 Subject
to adjustment in accordance with Section 11, no more than 700,000 shares of Common Stock may
be issued in the aggregate pursuant to the exercise of Incentive
Stock Options (the "ISO Limit").

 

4.4 The
maximum number of shares of Common Stock subject to Awards granted
during a single Fiscal Year to any Director, together with any cash
fees paid to such Director during the Fiscal Year shall not exceed
a total value of $100,000 (calculating the value of any Awards
based on the grant date fair value for financial reporting
purposes).

 

4.5 Any
shares of Common Stock subject to an Award that expires or is
canceled, forfeited, or terminated without issuance of the full
number of shares of Common Stock to which the Award related will
again be available for issuance under the Plan. Notwithstanding
anything to the contrary contained herein: shares subject to an
Award under the Plan shall not again be made available for issuance
or delivery under the Plan if such shares are (a) shares tendered
in payment of an Option, (b) shares delivered or withheld by the
Company to satisfy any tax withholding obligation, or (c) shares
covered by a stock-settled Stock Appreciation Right or other Awards
that were not issued upon the settlement of the Award.

 

4.6 Awards
may, in the sole discretion of the Committee, be granted under the
Plan in assumption of, or in substitution for, outstanding awards
previously granted by an entity acquired by the Company or with
which the Company combines ("Substitute
Awards"). Substitute Awards
shall not be counted against the Total Share Reserve; provided,
that, Substitute Awards issued in connection with the assumption
of, or in substitution for, outstanding options intended to qualify
as Incentive Stock Options shall be counted against the ISO limit.
Subject to applicable stock exchange requirements, available shares
under a shareholder-approved plan of an entity directly or
indirectly acquired by the Company or with which the Company
combines (as appropriately adjusted to reflect such acquisition or
transaction) may be used for Awards under the Plan and shall not
count toward the Total Share Limit.

 

5. Eligibility.

 

5.1 Eligibility
for Specific Awards. Incentive
Stock Options may be granted only to Employees. Awards other than
Incentive Stock Options may be granted to Employees, Consultants
and Directors and those individuals whom the Committee determines
are reasonably expected to become Employees, Consultants and
Directors following the Grant Date.

 

 

11

 

5.2 Ten Percent
Shareholders. A Ten Percent
Shareholder shall not be granted an Incentive Stock Option unless
the Option Exercise Price is at least 110% of the Fair Market Value
of the Common Stock on the Grant Date and the Option is not
exercisable after the expiration of five years from the Grant
Date.

 

6. Option
Provisions. Each Option granted
under the Plan shall be evidenced by an Award Agreement. Each
Option so granted shall be subject to the conditions set forth in
this Section 6, and to such other conditions not inconsistent with
the Plan as may be reflected in the applicable Award Agreement. All
Options shall be separately designated Incentive Stock Options or
Non-qualified Stock Options at the time of grant, and, if
certificates are issued, a separate certificate or certificates
will be issued for shares of Common Stock purchased on exercise of
each type of Option. Notwithstanding the foregoing, the Company
shall have no liability to any Participant or any other person if
an Option designated as an Incentive Stock Option fails to qualify
as such at any time or if an Option is determined to constitute
"nonqualified deferred compensation" within the meaning of Section
409A of the Code and the terms of such Option do not satisfy the
requirements of Section 409A of the Code. The provisions of
separate Options need not be identical, but each Option shall
include (through incorporation of provisions hereof by reference in
the Option or otherwise) the substance of each of the following
provisions:

 

6.1 Term.
Subject to the provisions of Section 5.2 regarding Ten Percent Shareholders, no Incentive
Stock Option shall be exercisable after the expiration of 10 years
from the Grant Date. The term of a Non-qualified Stock Option
granted under the Plan shall be determined by the Committee;
provided,
however, no Non-qualified Stock
Option shall be exercisable after the expiration of 10 years from
the Grant Date.

 

6.2 Exercise
Price of an Incentive Stock Option. Subject to the provisions of Section
5.2
regarding Ten Percent Shareholders,
the Option Exercise Price of each Incentive Stock Option shall be
not less than 100% of the Fair Market Value of the Common Stock
subject to the Option on the Grant Date. Notwithstanding the
foregoing, an Incentive Stock Option may be granted with an Option
Exercise Price lower than that set forth in the preceding sentence
if such Option is granted pursuant to an assumption or substitution
for another option in a manner satisfying the provisions of Section
424(a) of the Code.

 

6.3 Exercise
Price of a Non-qualified Stock Option. The Option Exercise Price of each Non-qualified
Stock Option shall be not less than 100% of the Fair Market Value
of the Common Stock subject to the Option on the Grant Date.
Notwithstanding the foregoing, a Non-qualified Stock Option may be
granted with an Option Exercise Price lower than that set forth in
the preceding sentence if such Option is granted pursuant to an
assumption or substitution for another option in a manner
satisfying the provisions of Section 409A of the
Code.

 

 

12

 

6.4 Consideration.
The Option Exercise Price of Common Stock acquired pursuant to an
Option shall be paid, to the extent permitted by applicable
statutes and regulations, either (a) in cash or by certified or
bank check at the time the Option is exercised or (b) in the
discretion of the Committee, upon such terms as the Committee shall
approve, the Option Exercise Price may be paid: (i) by delivery to
the Company of other Common Stock, duly endorsed for transfer to
the Company, with a Fair Market Value on the date of delivery equal
to the Option Exercise Price (or portion thereof) due for the
number of shares being acquired, or by means of attestation whereby
the Participant identifies for delivery specific shares of Common
Stock that have an aggregate Fair Market Value on the date of
attestation equal to the Option Exercise Price (or portion thereof)
and receives a number of shares of Common Stock equal to the
difference between the number of shares thereby purchased and the
number of identified attestation shares of Common Stock (a
"Stock for
Stock Exchange"); (ii) a
"cashless" exercise program established with a broker; (iii) by
reduction in the number of shares of Common Stock otherwise
deliverable upon exercise of such Option with a Fair Market Value
equal to the aggregate Option Exercise Price at the time of
exercise; (iv) by any combination of the foregoing methods; or (v)
in any other form of legal consideration that may be acceptable to
the Committee. Unless otherwise specifically provided in the
Option, the exercise price of Common Stock acquired pursuant to an
Option that is paid by delivery (or attestation) to the Company of
other Common Stock acquired, directly or indirectly from the
Company, shall be paid only by shares of the Common Stock of the
Company that have been held for more than six months (or such
longer or shorter period of time required to avoid a charge to
earnings for financial accounting purposes). Notwithstanding the
foregoing, during any period for which the Common Stock is publicly
traded (i.e., the Common Stock is listed on any established stock
exchange or a national market system) an exercise by a Director or
Officer that involves or may involve a direct or indirect extension
of credit or arrangement of an extension of credit by the Company,
directly or indirectly, in violation of Section 402(a) of the
Sarbanes-Oxley Act of 2002 shall be prohibited with respect to any
Award under this Plan.

 

6.5 Transferability
of an Incentive Stock Option.
An Incentive Stock Option shall not be transferable except by will
or by the laws of descent and distribution and shall be exercisable
during the lifetime of the Optionholder only by the Optionholder.
Notwithstanding the foregoing, the Optionholder may, by delivering
written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of
the Optionholder, shall thereafter be entitled to exercise the
Option.

 

6.6 Transferability
of a Non-qualified Stock Option. A Non-qualified Stock Option may, in the sole
discretion of the Committee, be transferable to a Permitted
Transferee, upon written approval by the Committee to the extent
provided in the Award Agreement. If the Non-qualified Stock Option
does not provide for transferability, then the Non-qualified Stock
Option shall not be transferable except by will or by the laws of
descent and distribution and shall be exercisable during the
lifetime of the Optionholder only by the Optionholder.
Notwithstanding the foregoing, the Optionholder may, by delivering
written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of
the Optionholder, shall thereafter be entitled to exercise the
Option.

 

 

13

 

6.7 Vesting
of Options. Each Option may,
but need not, vest and therefore become exercisable in periodic
installments that may, but need not, be equal. The Option may be
subject to such other terms and conditions on the time or times
when it may be exercised (which may be based on performance or
other criteria) as the Committee may deem appropriate. The vesting
provisions of individual Options may vary. No Option may be
exercised for a fraction of a share of Common Stock. The Committee
may, but shall not be required to, provide for an acceleration of
vesting and exercisability in the terms of any Award Agreement upon
the occurrence of a specified event.

 

6.8 Termination
of Continuous Service. Unless
otherwise provided in an Award Agreement or in an employment
agreement the terms of which have been approved by the Committee,
in the event an Optionholder's Continuous Service terminates (other
than upon the Optionholder's death or Disability), the Optionholder
may exercise his or her Option (to the extent that the Optionholder
was entitled to exercise such Option as of the date of termination)
but only within such period of time ending on the earlier of (a)
the date three months following the termination of the
Optionholder's Continuous Service or (b) the expiration of the term
of the Option as set forth in the Award Agreement;
provided
that, if the termination of
Continuous Service is by the Company for Cause, all outstanding
Options (whether or not vested) shall immediately terminate and
cease to be exercisable. If, after termination, the Optionholder
does not exercise his or her Option within the time specified in
the Award Agreement, the Option shall
terminate.

 

6.9 Extension
of Termination Date. An
Optionholder's Award Agreement may also provide that if the
exercise of the Option following the termination of the
Optionholder's Continuous Service for any reason would be
prohibited at any time because the issuance of shares of Common
Stock would violate the registration requirements under the
Securities Act or any other state or federal securities law or the
rules of any securities exchange or interdealer quotation system,
then the Option shall terminate on the earlier of (a) the
expiration of the term of the Option in accordance with
Section 6.1 or (b)
the expiration of a period after termination of the Participant's
Continuous Service that is three months after the end of the period
during which the exercise of the Option would be in violation of
such registration or other securities law
requirements.

 

6.10 Disability of
Optionholder. Unless otherwise
provided in an Award Agreement, in the event that an Optionholder's
Continuous Service terminates as a result of the Optionholder's
Disability, the Optionholder may exercise his or her Option (to the
extent that the Optionholder was entitled to exercise such Option
as of the date of termination), but only within such period of time
ending on the earlier of (a) the date 12 months following such
termination or (b) the expiration of the term of the Option as set
forth in the Award Agreement. If, after termination, the
Optionholder does not exercise his or her Option within the time
specified herein or in the Award Agreement, the Option shall
terminate.

 

6.11 Death
of Optionholder. Unless
otherwise provided in an Award Agreement, in the event an
Optionholder's Continuous Service terminates as a result of the
Optionholder's death, then the Option may be exercised (to the
extent the Optionholder was entitled to exercise such Option as of
the date of death) by the Optionholder's estate, by a person who
acquired the right to exercise the Option by bequest or inheritance
or by a person designated to exercise the Option upon the
Optionholder's death, but only within the period ending on the
earlier of (a) the date 12 months following the date of death or
(b) the expiration of the term of such Option as set forth in the
Award Agreement. If, after the Optionholder's death, the Option is
not exercised within the time specified herein or in the Award
Agreement, the Option shall terminate.

 

 

14

 

6.12 Incentive
Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market
Value (determined at the time of grant) of Common Stock with
respect to which Incentive Stock Options are exercisable for the
first time by any Optionholder during any calendar year (under all
plans of the Company and its Affiliates) exceeds $100,000, the
Options or portions thereof which exceed such limit (according to
the order in which they were granted) shall be treated as
Non-qualified Stock Options.

 

7. Provisions
of Awards Other Than Options.

 

7.1 Stock Appreciation
Rights.
 

 

(a) General

 

Each Stock Appreciation Right granted under the
Plan shall be evidenced by an Award Agreement. Each Stock
Appreciation Right so granted shall be subject to the conditions
set forth in this Section 7.1, and to such other conditions not
inconsistent with the Plan as may be reflected in the applicable
Award Agreement. Stock Appreciation Rights may be granted alone
("Free
Standing Rights") or in tandem
with an Option granted under the Plan ("Related
Rights").

 

(b) Grant
Requirements

 

Any
Related Right that relates to a Non-qualified Stock Option may be
granted at the same time the Option is granted or at any time
thereafter but before the exercise or expiration of the Option. Any
Related Right that relates to an Incentive Stock Option must be
granted at the same time the Incentive Stock Option is
granted.

 

(c) Term
of Stock Appreciation Rights

 

The term of a Stock Appreciation Right granted
under the Plan shall be determined by the Committee;
provided,
however, no Stock Appreciation
Right shall be exercisable later than the tenth anniversary of the
Grant Date.

 

(d) Vesting
of Stock Appreciation Rights

 

Each
Stock Appreciation Right may, but need not, vest and therefore
become exercisable in periodic installments that may, but need not,
be equal. The Stock Appreciation Right may be subject to such other
terms and conditions on the time or times when it may be exercised
as the Committee may deem appropriate. The vesting provisions of
individual Stock Appreciation Rights may vary. No Stock
Appreciation Right may be exercised for a fraction of a share of
Common Stock. The Committee may, but shall not be required to,
provide for an acceleration of vesting and exercisability in the
terms of any Stock Appreciation Right upon the occurrence of a
specified event.

 

 

 

15

 

(e) Exercise
and Payment

 

Upon
exercise of a Stock Appreciation Right, the holder shall be
entitled to receive from the Company an amount equal to the number
of shares of Common Stock subject to the Stock Appreciation Right
that is being exercised multiplied by the excess of (i) the Fair
Market Value of a share of Common Stock on the date the Award is
exercised, over (ii) the exercise price specified in the Stock
Appreciation Right or related Option. Payment with respect to the
exercise of a Stock Appreciation Right shall be made on the date of
exercise. Payment shall be made in the form of shares of Common
Stock (with or without restrictions as to substantial risk of
forfeiture and transferability, as determined by the Committee in
its sole discretion), cash or a combination thereof, as determined
by the Committee.

 

(f) Exercise
Price

 

The exercise price of a Free Standing Right shall
be determined by the Committee, but shall not be less than 100% of
the Fair Market Value of one share of Common Stock on the Grant
Date of such Stock Appreciation Right. A Related Right granted
simultaneously with or subsequent to the grant of an Option and in
conjunction therewith or in the alternative thereto shall have the
same exercise price as the related Option, shall be transferable
only upon the same terms and conditions as the related Option, and
shall be exercisable only to the same extent as the related
Option; provided,
however, that a Stock
Appreciation Right, by its terms, shall be exercisable only when
the Fair Market Value per share of Common Stock subject to the
Stock Appreciation Right and related Option exceeds the exercise
price per share thereof and no Stock Appreciation Rights may be
granted in tandem with an Option unless the Committee determines
that the requirements of Section 7.1(b) are satisfied.

 

(g) Reduction
in the Underlying Option Shares

 

Upon
any exercise of a Related Right, the number of shares of Common
Stock for which any related Option shall be exercisable shall be
reduced by the number of shares for which the Stock Appreciation
Right has been exercised. The number of shares of Common Stock for
which a Related Right shall be exercisable shall be reduced upon
any exercise of any related Option by the number of shares of
Common Stock for which such Option has been exercised.

 

7.2 Restricted
Awards.
 

 

(a) General

 

A Restricted Award is an Award of actual shares of
Common Stock ("Restricted
Stock") or hypothetical Common
Stock units ("Restricted Stock
Units") having a value equal to
the Fair Market Value of an identical number of shares of Common
Stock, which may, but need not, provide that such Restricted Award
may not be sold, assigned, transferred or otherwise disposed of,
pledged or hypothecated as collateral for a loan or as security for
the performance of any obligation or for any other purpose for such
period (the "Restricted
Period") as the Committee shall
determine. Each Restricted Award granted under the Plan shall be
evidenced by an Award Agreement. Each Restricted Award so granted
shall be subject to the conditions set forth in this Section 7.2,
and to such other conditions not inconsistent with the Plan as may
be reflected in the applicable Award Agreement.

 

 

 

16

 

(b) Restricted
Stock and Restricted Stock Units

 

(i) Each
Participant granted Restricted Stock shall execute and deliver to
the Company an Award Agreement with respect to the Restricted Stock
setting forth the restrictions and other terms and conditions
applicable to such Restricted Stock. If the Committee determines
that the Restricted Stock shall be held by the Company or in escrow
rather than delivered to the Participant pending the release of the
applicable restrictions, the Committee may require the Participant
to additionally execute and deliver to the Company (A) an escrow
agreement satisfactory to the Committee, if applicable and (B) the
appropriate blank stock power with respect to the Restricted Stock
covered by such agreement. If a Participant fails to execute an
agreement evidencing an Award of Restricted Stock and, if
applicable, an escrow agreement and stock power, the Award shall be
null and void. Subject to the restrictions set forth in the Award,
the Participant generally shall have the rights and privileges of a
shareholder as to such Restricted Stock, including the right to
vote such Restricted Stock and the right to receive
dividends; provided
that, any cash dividends and
stock dividends with respect to the Restricted Stock shall be
withheld by the Company for the Participant's account, and interest
may be credited on the amount of the cash dividends withheld at a
rate and subject to such terms as determined by the Committee. The
cash dividends or stock dividends so withheld by the Committee and
attributable to any particular share of Restricted Stock (and
earnings thereon, if applicable) shall be distributed to the
Participant in cash or, at the discretion of the Committee, in
shares of Common Stock having a Fair Market Value equal to the
amount of such dividends, if applicable, upon the release of
restrictions on such share and, if such share is forfeited, the
Participant shall have no right to such
dividends.

 

(ii) The
terms and conditions of a grant of Restricted Stock Units shall be
reflected in an Award Agreement. No shares of Common Stock shall be
issued at the time a Restricted Stock Unit is granted, and the
Company will not be required to set aside funds for the payment of
any such Award. A Participant shall have no voting rights with
respect to any Restricted Stock Units granted hereunder. The
Committee may also grant Restricted Stock Units with a deferral
feature, whereby settlement is deferred beyond the vesting date
until the occurrence of a future payment date or event set forth in
an Award Agreement ("Deferred Stock
Units"). At the discretion of
the Committee, each Restricted Stock Unit or Deferred Stock Unit
(representing one share of Common Stock) may be credited with an
amount equal to the cash and stock dividends paid by the Company in
respect of one share of Common Stock ("Dividend
Equivalents"). Dividend
Equivalents shall be withheld by the Company and credited to the
Participant's account, and interest may be credited on the amount
of cash Dividend Equivalents credited to the Participant's account
at a rate and subject to such terms as determined by the Committee.
Dividend Equivalents credited to a Participant's account and
attributable to any particular Restricted Stock Unit or Deferred
Stock Unit (and earnings thereon, if applicable) shall be
distributed in cash or, at the discretion of the Committee, in
shares of Common Stock having a Fair Market Value equal to the
amount of such Dividend Equivalents and earnings, if applicable, to
the Participant upon settlement of such Restricted Stock Unit or
Deferred Stock Unit and, if such Restricted Stock Unit or Deferred
Stock Unit is forfeited, the Participant shall have no right to
such Dividend Equivalents.

 

 

 

17

 

(c) Restrictions

 

(i) Restricted
Stock awarded to a Participant shall be subject to the following
restrictions until the expiration of the Restricted Period, and to
such other terms and conditions as may be set forth in the
applicable Award Agreement: (A) if an escrow arrangement is used,
the Participant shall not be entitled to delivery of the stock
certificate; (B) the shares shall be subject to the restrictions on
transferability set forth in the Award Agreement; (C) the shares
shall be subject to forfeiture to the extent provided in the
applicable Award Agreement; and (D) to the extent such shares are
forfeited, the stock certificates shall be returned to the Company,
and all rights of the Participant to such shares and as a
shareholder with respect to such shares shall terminate without
further obligation on the part of the Company.

 

(ii) Restricted
Stock Units and Deferred Stock Units awarded to any Participant
shall be subject to (A) forfeiture until the expiration of the
Restricted Period, and satisfaction of any applicable Performance
Goals during such period, to the extent provided in the applicable
Award Agreement, and to the extent such Restricted Stock Units or
Deferred Stock Units are forfeited, all rights of the Participant
to such Restricted Stock Units or Deferred Stock Units shall
terminate without further obligation on the part of the Company and
(B) such other terms and conditions as may be set forth in the
applicable Award Agreement.

 

(iii) The
Committee shall have the authority to remove any or all of the
restrictions on the Restricted Stock, Restricted Stock Units and
Deferred Stock Units whenever it may determine that, by reason of
changes in Applicable Laws or other changes in circumstances
arising after the date the Restricted Stock or Restricted Stock
Units or Deferred Stock Units are granted, such action is
appropriate.

 

(d) Restricted
Period

 

With
respect to Restricted Awards, the Restricted Period shall commence
on the Grant Date and end at the time or times set forth on a
schedule established by the Committee in the applicable Award
Agreement.

 

No
Restricted Award may be granted or settled for a fraction of a
share of Common Stock. The Committee may, but shall not be required
to, provide for an acceleration of vesting in the terms of any
Award Agreement upon the occurrence of a specified
event.

 

 

 

18

 

(e) Delivery
of Restricted Stock and Settlement of Restricted Stock
Units

 

Upon the expiration of the Restricted Period with
respect to any shares of Restricted Stock, the restrictions set
forth in Section 7.2(c) and
the applicable Award Agreement shall be of no further force or
effect with respect to such shares, except as set forth in the
applicable Award Agreement. If an escrow arrangement is used, upon
such expiration, the Company shall deliver to the Participant, or
his or her beneficiary, without charge, the stock certificate
evidencing the shares of Restricted Stock which have not then been
forfeited and with respect to which the Restricted Period has
expired (to the nearest full share) and any cash dividends or stock
dividends credited to the Participant's account with respect to
such Restricted Stock and the interest thereon, if any. Upon the
expiration of the Restricted Period with respect to any outstanding
Restricted Stock Units, or at the expiration of the deferral period
with respect to any outstanding Deferred Stock Units, the Company
shall deliver to the Participant, or his or her beneficiary,
without charge, one share of Common Stock for each such outstanding
vested Restricted Stock Unit or Deferred Stock Unit
("Vested
Unit") and cash equal to any
Dividend Equivalents credited with respect to each such Vested Unit
in accordance with Section 7.2(b)(ii)
hereof and the interest thereon or, at
the discretion of the Committee, in shares of Common Stock having a
Fair Market Value equal to such Dividend Equivalents and the
interest thereon, if any; provided,
however, that, if explicitly
provided in the applicable Award Agreement, the Committee may, in
its sole discretion, elect to pay cash or part cash and part Common
Stock in lieu of delivering only shares of Common Stock for Vested
Units. If a cash payment is made in lieu of delivering shares of
Common Stock, the amount of such payment shall be equal to the Fair
Market Value of the Common Stock as of the date on which the
Restricted Period lapsed in the case of Restricted Stock Units, or
the delivery date in the case of Deferred Stock Units, with respect
to each Vested Unit.

 

(f) Stock
Restrictions

 

Each
certificate representing Restricted Stock awarded under the Plan
shall bear a legend in such form as the Company deems
appropriate.

 

7.3 Performance Share
Awards.
 

 

(a) Grant
of Performance Share Awards

 

Each
Performance Share Award granted under the Plan shall be evidenced
by an Award Agreement. Each Performance Share Award so granted
shall be subject to the conditions set forth in this Section 7.3,
and to such other conditions not inconsistent with the Plan as may
be reflected in the applicable Award Agreement. The Committee shall
have the discretion to determine: (i) the number of shares of
Common Stock or stock-denominated units subject to a Performance
Share Award granted to any Participant; (ii) the Performance Period
applicable to any Award; (iii) the conditions that must be
satisfied for a Participant to earn an Award; and (iv) the other
terms, conditions and restrictions of the Award.

 

 

 

19

 

(b) Earning
Performance Share Awards

 

The
number of Performance Shares earned by a Participant will depend on
the extent to which the performance goals established by the
Committee are attained within the applicable Performance Period, as
determined by the Committee.

 

7.4 Other Equity-Based
Awards and Cash Awards. The
Committee may grant Other Equity-Based Awards, either alone or in
tandem with other Awards, in such amounts and subject to such
conditions as the Committee shall determine in its sole discretion.
Each Equity-Based Award shall be evidenced by an Award Agreement
and shall be subject to such conditions, not inconsistent with the
Plan, as may be reflected in the applicable Award Agreement. The
Committee may grant Cash Awards in such amounts and subject to such
Performance Goals, other vesting conditions, and such other terms
as the Committee determines in its discretion. Cash Awards shall be
evidenced in such form as the Committee may
determine.

 

8. Securities
Law Compliance. Each Award
Agreement shall provide that no shares of Common Stock shall be
purchased or sold thereunder unless and until (a) any then
applicable requirements of state or federal laws and regulatory
agencies have been fully complied with to the satisfaction of the
Company and its counsel and (b) if required to do so by the
Company, the Participant has executed and delivered to the Company
a letter of investment intent in such form and containing such
provisions as the Committee may require. The Company shall use
reasonable efforts to seek to obtain from each regulatory
commission or agency having jurisdiction over the Plan such
authority as may be required to grant Awards and to issue and sell
shares of Common Stock upon exercise of the Awards;
provided,
however, that this undertaking
shall not require the Company to register under the Securities Act
the Plan, any Award or any Common Stock issued or issuable pursuant
to any such Award. If, after reasonable efforts, the Company is
unable to obtain from any such regulatory commission or agency the
authority which counsel for the Company deems necessary for the
lawful issuance and sale of Common Stock under the Plan, the
Company shall be relieved from any liability for failure to issue
and sell Common Stock upon exercise of such Awards unless and until
such authority is obtained.

 

9. Use
of Proceeds from Stock.
Proceeds from the sale of Common Stock pursuant to Awards, or upon
exercise thereof, shall constitute general funds of the
Company.

 

10. Miscellaneous.

 

10.1 Acceleration
of Exercisability and Vesting.
The Committee shall have the power to accelerate the time at which
an Award may first be exercised or the time during which an Award
or any part thereof will vest in accordance with the Plan,
notwithstanding the provisions in the Award stating the time at
which it may first be exercised or the time during which it will
vest.

 

10.2 Shareholder
Rights. Except as provided in
the Plan or an Award Agreement, no Participant shall be deemed to
be the holder of, or to have any of the rights of a holder with
respect to, any shares of Common Stock subject to such Award unless
and until such Participant has satisfied all requirements for
exercise of the Award pursuant to its terms and no adjustment shall
be made for dividends (ordinary or extraordinary, whether in cash,
securities or other property) or distributions of other rights for
which the record date is prior to the date such Common Stock
certificate is issued, except as provided in Section
11
hereof.

 

 

20

 

10.3 No
Employment or Other Service Rights. Nothing in the Plan or any instrument executed
or Award granted pursuant thereto shall confer upon any Participant
any right to continue to serve the Company or an Affiliate in the
capacity in effect at the time the Award was granted or shall
affect the right of the Company or an Affiliate to terminate (a)
the employment of an Employee with or without notice and with or
without Cause or (b) the service of a Director pursuant to the
By-laws of the Company or an Affiliate, and any applicable
provisions of the corporate law of the state in which the Company
or the Affiliate is incorporated, as the case may
be.

 

10.4 Transfer;
Approved Leave of Absence. For
purposes of the Plan, no termination of employment by an Employee
shall be deemed to result from either (a) a transfer of employment
to the Company from an Affiliate or from the Company to an
Affiliate, or from one Affiliate to another, or (b) an approved
leave of absence for military service or sickness, or for any other
purpose approved by the Company, if the Employee's right to
reemployment is guaranteed either by a statute or by contract or
under the policy pursuant to which the leave of absence was granted
or if the Committee otherwise so provides in writing, in either
case, except to the extent inconsistent with Section 409A of the
Code if the applicable Award is subject
thereto.

 

10.5 Withholding
Obligations. To the extent
provided by the terms of an Award Agreement and subject to the
discretion of the Committee, the Participant may satisfy any
federal, state or local tax withholding obligation relating to the
exercise or acquisition of Common Stock under an Award by any of
the following means (in addition to the Company's right to withhold
from any compensation paid to the Participant by the Company) or by
a combination of such means: (a) tendering a cash payment; (b)
authorizing the Company to withhold shares of Common Stock from the
shares of Common Stock otherwise issuable to the Participant as a
result of the exercise or acquisition of Common Stock under the
Award, provided,
however, that no shares of
Common Stock are withheld with a value exceeding the maximum amount
of tax required to be withheld by law; or (c) delivering to the
Company previously owned and unencumbered shares of Common Stock of
the Company.

 

11. Adjustments
Upon Changes in Stock. In the
event of changes in the outstanding Common Stock or in the capital
structure of the Company by reason of any stock or extraordinary
cash dividend, stock split, reverse stock split, an extraordinary
corporate transaction such as any recapitalization, reorganization,
merger, consolidation, combination, exchange, or other relevant
change in capitalization occurring after the Grant Date of any
Award, Awards granted under the Plan and any Award Agreements, the
exercise price of Options and Stock Appreciation Rights, the
Performance Goals to which Performance Share Awards and Cash Awards
are subject, the maximum number of shares of Common Stock subject
to all Awards stated in Section 4 will be equitably adjusted or substituted, as to
the number, price or kind of a share of Common Stock or other
consideration subject to such Awards to the extent necessary to
preserve the economic intent of such Award. In the case of
adjustments made pursuant to this Section 11, unless the Committee
specifically determines that such adjustment is in the best
interests of the Company or its Affiliates, the Committee shall, in
the case of Incentive Stock Options, ensure that any adjustments
under this Section 11 will not constitute a modification, extension
or renewal of the Incentive Stock Options within the meaning of
Section 424(h)(3) of the Code and in the case of Non-qualified
Stock Options, ensure that any adjustments under this Section 11
will not constitute a modification of such Non-qualified Stock
Options within the meaning of Section 409A of the Code. Any
adjustments made under this Section 11 shall be made in a manner
which does not adversely affect the exemption provided pursuant to
Rule 16b-3 under the Exchange Act. The Company shall give each
Participant notice of an adjustment hereunder and, upon notice,
such adjustment shall be conclusive and binding for all
purposes.

 

 

 

21

 

12. Effect
of Change in Control.

 

12.1 Unless
otherwise provided in an Award Agreement, notwithstanding any
provision of the Plan to the contrary:

 

(a) In
the event of a Participant's termination of Continuous Service
without Cause or for Good Reason during the 12-month period
following a Change in Control, notwithstanding any provision of the
Plan or any applicable Award Agreement to the contrary, all
outstanding Options and Stock Appreciation Rights shall become
immediately exercisable with respect to 100% of the shares subject
to such Options or Stock Appreciation Rights, and/or the Restricted
Period shall expire immediately with respect to 100% of the
outstanding shares of Restricted Stock or Restricted Stock Units as
of the date of the Participant's termination of Continuous
Service.

 

(b) With
respect to Performance Share Awards and Cash Awards, in the event
of a Change in Control, all incomplete Performance Periods in
respect of such Awards in effect on the date the Change in Control
occurs shall end on the date of such change and the Committee shall
(i) determine the extent to which Performance Goals with respect to
each such Performance Period have been met based upon such audited
or unaudited financial information then available as it deems
relevant and (ii) cause to be paid to the applicable Participant
partial or full Awards with respect to Performance Goals for each
such Performance Period based upon the Committee's determination of
the degree of attainment of Performance Goals or, if not
determinable, assuming that the applicable "target" levels of
performance have been attained, or on such other basis determined
by the Committee.

 

To
the extent practicable, any actions taken by the Committee under
the immediately preceding clauses (a) and (b) shall occur in a
manner and at a time which allows affected Participants the ability
to participate in the Change in Control with respect to the shares
of Common Stock subject to their Awards.

 

12.2 In
addition, in the event of a Change in Control, the Committee may in
its discretion and upon at least 10 days' advance notice to the
affected persons, cancel any outstanding Awards and pay to the
holders thereof, in cash or stock, or any combination thereof, the
value of such Awards based upon the price per share of Common Stock
received or to be received by other shareholders of the Company in
the event. In the case of any Option or Stock Appreciation Right
with an exercise price (or SAR Exercise Price in the case of a
Stock Appreciation Right) that equals or exceeds the price paid for
a share of Common Stock in connection with the Change in Control,
the Committee may cancel the Option or Stock Appreciation Right
without the payment of consideration therefor.

 

12.3 The
obligations of the Company under the Plan shall be binding upon any
successor corporation or organization resulting from the merger,
consolidation or other reorganization of the Company, or upon any
successor corporation or organization succeeding to all or
substantially all of the assets and business of the Company and its
Affiliates, taken as a whole.

 

 

 

22

 

13. Amendment
of the Plan and Awards.

 

13.1 Amendment of
Plan. The Board at any time,
and from time to time, may amend or terminate the Plan. However,
except as provided in Section 11 relating to adjustments upon changes in Common
Stock and Section 13.3, no
amendment shall be effective unless approved by the shareholders of
the Company to the extent shareholder approval is necessary to
satisfy any Applicable Laws. At the time of such amendment, the
Board shall determine, upon advice from counsel, whether such
amendment will be contingent on shareholder
approval.

 

13.2 Shareholder
Approval. The Board may, in its
sole discretion, submit any other amendment to the Plan for
shareholder approval.

 

13.3 Contemplated
Amendments. It is expressly
contemplated that the Board may amend the Plan in any respect the
Board deems necessary or advisable to provide eligible Employees,
Consultants and Directors with the maximum benefits provided or to
be provided under the provisions of the Code and the regulations
promulgated thereunder relating to Incentive Stock Options or to
the nonqualified deferred compensation provisions of Section 409A
of the Code and/or to bring the Plan and/or Awards granted under it
into compliance therewith.

 

13.4 No
Impairment of Rights. Rights
under any Award granted before amendment of the Plan shall not be
impaired by any amendment of the Plan unless (a) the Company
requests the consent of the Participant and (b) the Participant
consents in writing.

 

13.5 Amendment
of Awards. The Committee at any
time, and from time to time, may amend the terms of any one or more
Awards; provided,
however, that the Committee may
not affect any amendment which would otherwise constitute an
impairment of the rights under any Award unless (a) the Company
requests the consent of the Participant and (b) the Participant
consents in writing.

 

14. General
Provisions.

 

14.1 Forfeiture
Events. The Committee may
specify in an Award Agreement that the Participant's rights,
payments and benefits with respect to an Award shall be subject to
reduction, cancellation, forfeiture or recoupment upon the
occurrence of certain events, in addition to applicable vesting
conditions of an Award. Such events may include, without
limitation, breach of non-competition, non-solicitation,
confidentiality, or other restrictive covenants that are contained
in the Award Agreement or otherwise applicable to the Participant,
a termination of the Participant's Continuous Service for Cause, or
other conduct by the Participant that is detrimental to the
business or reputation of the Company and/or its
Affiliates.

 

14.2 Clawback.
Notwithstanding any other provisions in this Plan, the Company may
cancel any Award, require reimbursement of any Award by a
Participant, and effect any other right of recoupment of equity or
other compensation provided under the Plan in accordance with any
Company policies that may be adopted and/or modified from time to
time ("Clawback
Policy"). In addition, a
Participant may be required to repay to the Company previously paid
compensation, whether provided pursuant to the Plan or an Award
Agreement, in accordance with the Clawback Policy. By accepting an
Award, the Participant is agreeing to be bound by the Clawback
Policy, as in effect or as may be adopted and/or modified from time
to time by the Company in its discretion (including, without
limitation, to comply with applicable law or stock exchange listing
requirements).

 

 

23

 

14.3 Other
Compensation Arrangements.
Nothing contained in this Plan shall prevent the Board from
adopting other or additional compensation arrangements, subject to
shareholder approval if such approval is required; and such
arrangements may be either generally applicable or applicable only
in specific cases.

 

14.4 Sub-Plans.
The Committee may from time to time establish sub-plans under the
Plan for purposes of satisfying securities, tax or other laws of
various jurisdictions in which the Company intends to grant Awards.
Any sub-plans shall contain such limitations and other terms and
conditions as the Committee determines are necessary or desirable.
All sub-plans shall be deemed a part of the Plan, but each sub-plan
shall apply only to the Participants in the jurisdiction for which
the sub-plan was designed.

 

14.5 Deferral
of Awards. The Committee may
establish one or more programs under the Plan to permit selected
Participants the opportunity to elect to defer receipt of
consideration upon exercise of an Award, satisfaction of
performance criteria, or other event that absent the election would
entitle the Participant to payment or receipt of shares of Common
Stock or other consideration under an Award. The Committee may
establish the election procedures, the timing of such elections,
the mechanisms for payments of, and accrual of interest or other
earnings, if any, on amounts, shares or other consideration so
deferred, and such other terms, conditions, rules and procedures
that the Committee deems advisable for the administration of any
such deferral program.

 

14.6 Unfunded
Plan. The Plan shall be
unfunded. Neither the Company, the Board nor the Committee shall be
required to establish any special or separate fund or to segregate
any assets to assure the performance of its obligations under the
Plan.

 

14.7 Recapitalizations.
Each Award Agreement shall contain provisions required to reflect
the provisions of Section 11.

 

14.8 Delivery.
Upon exercise of a right granted under this Plan, the Company shall
issue Common Stock or pay any amounts due within a reasonable
period of time thereafter. Subject to any statutory or regulatory
obligations the Company may otherwise have, for purposes of this
Plan, 30 days shall be considered a reasonable period of
time.

 

14.9 No
Fractional Shares. No
fractional shares of Common Stock shall be issued or delivered
pursuant to the Plan. The Committee shall determine whether cash,
additional Awards or other securities or property shall be issued
or paid in lieu of fractional shares of Common Stock or whether any
fractional shares should be rounded, forfeited or otherwise
eliminated.

 

14.10 Other
Provisions. The Award
Agreements authorized under the Plan may contain such other
provisions not inconsistent with this Plan, including, without
limitation, restrictions upon the exercise of Awards, as the
Committee may deem advisable.

 

 

24

 

14.11 Section
409A. The Plan is intended to
comply with Section 409A of the Code to the extent subject thereto,
and, accordingly, to the maximum extent permitted, the Plan shall
be interpreted and administered to be in compliance therewith. Any
payments described in the Plan that are due within the "short-term
deferral period" as defined in Section 409A of the Code shall not
be treated as deferred compensation unless Applicable Laws require
otherwise. Notwithstanding anything to the contrary in the Plan, to
the extent required to avoid accelerated taxation and tax penalties
under Section 409A of the Code, amounts that would otherwise be
payable and benefits that would otherwise be provided pursuant to
the Plan during the six (6) month period immediately following the
Participant's termination of Continuous Service shall instead be
paid on the first payroll date after the six-month anniversary of
the Participant's separation from service (or the Participant's
death, if earlier). Notwithstanding the foregoing, neither the
Company nor the Committee shall have any obligation to take any
action to prevent the assessment of any additional tax or penalty
on any Participant under Section 409A of the Code and neither the
Company nor the Committee will have any liability to any
Participant for such tax or penalty.

 

14.12 Disqualifying
Dispositions. Any Participant
who shall make a "disposition" (as defined in Section 424 of the
Code) of all or any portion of shares of Common Stock acquired upon
exercise of an Incentive Stock Option within two years from the
Grant Date of such Incentive Stock Option or within one year after
the issuance of the shares of Common Stock acquired upon exercise
of such Incentive Stock Option (a "Disqualifying
Disposition") shall be required
to immediately advise the Company in writing as to the occurrence
of the sale and the price realized upon the sale of such shares of
Common Stock.

 

14.13 Section
16. It is the intent of the
Company that the Plan satisfy, and be interpreted in a manner that
satisfies, the applicable requirements of Rule 16b-3 as promulgated
under Section 16 of the Exchange Act so that Participants will be
entitled to the benefit of Rule 16b-3, or any other rule
promulgated under Section 16 of the Exchange Act, and will not be
subject to short-swing liability under Section 16 of the Exchange
Act. Accordingly, if the operation of any provision of the Plan
would conflict with the intent expressed in this Section 14.13,
such provision to the extent possible shall be interpreted and/or
deemed amended so as to avoid such conflict.

 

14.14 Beneficiary
Designation. Each Participant
under the Plan may from time to time name any beneficiary or
beneficiaries by whom any right under the Plan is to be exercised
in case of such Participant's death. Each designation will revoke
all prior designations by the same Participant, shall be in a form
reasonably prescribed by the Committee and shall be effective only
when filed by the Participant in writing with the Company during
the Participant's lifetime.

 

14.15 Expenses.
The costs of administering the Plan shall be paid by the
Company.

 

14.16 Severability.
If any of the provisions of the Plan or any Award Agreement is held
to be invalid, illegal or unenforceable, whether in whole or in
part, such provision shall be deemed modified to the extent, but
only to the extent, of such invalidity, illegality or
unenforceability and the remaining provisions shall not be affected
thereby.

 

 

25

 

 

14.17 Plan
Headings. The headings in the
Plan are for purposes of convenience only and are not intended to
define or limit the construction of the provisions
hereof.

 

14.18 Non-Uniform
Treatment. The Committee's
determinations under the Plan need not be uniform and may be made
by it selectively among persons who are eligible to receive, or
actually receive, Awards. Without limiting the generality of the
foregoing, the Committee shall be entitled to make non-uniform and
selective determinations, amendments and adjustments, and to enter
into non-uniform and selective Award
Agreements.

 

15. Effective
Date of Plan. The Plan shall
become effective as of the Effective Date, but no Award shall be
exercised (or, in the case of a stock Award, shall be granted)
unless and until the Plan has been approved by the shareholders of
the Company, which approval shall be within twelve (12) months
before or after the date the Plan is adopted by the
Board.

 

16. Termination
or Suspension of the Plan. The
Plan shall terminate automatically on May 16, 2029. No Award shall
be granted pursuant to the Plan after such date, but Awards
theretofore granted may extend beyond that date. The Board may
suspend or terminate the Plan at any earlier date pursuant to
Section 13.1 hereof. No Awards may be granted under the Plan
while the Plan is suspended or after it is
terminated.

 

17. Choice
of Law. The law of the State of
Florida shall govern all questions concerning the construction,
validity and interpretation of this Plan, without regard to such
state's conflict of law rules.

 

 As
adopted by the Board of Directors of Freedom Internet Group, Inc.
on September 31, 2019.

 

 As
approved by the shareholders of Freedom Internet Group, Inc. on
September 31, 2019.

 

 

26Exhibit 10.1

 

NEITHER THE ISSUANCE NOR SALE OF THE SECURITIES
REPRESENTED BY THIS NOTE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.
THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM,
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

 

	Principal Amount: $100,001.00	Issue Date: January 10th, 2020

 

 

	
         

        PROMISSORY NOTE

         

 

FOR VALUE RECEIVED,
VPR Brands, LP, a Delaware limited partnership (the “Company”), hereby promises to pay to the order of Kevin Frija
or registered assigns (the “Holder”) on January 10th, 2021 (the “Maturity Date”), the principal amount
set forth above (the “Principal Amount”), and to pay interest on the outstanding Principal Amount at the rate of Twenty
Four percent (24%) per annum (the “Note”). Interest shall commence accruing on the date hereof (the “Issue Date”),
computed on the basis of a 365-day year and the actual number of days elapsed, provided that any payment otherwise due on a Saturday,
Sunday or legal Bank holiday may be paid on the following business day. All payments due hereunder, shall be made in lawful money
of the United States of America.

 

1. Transfers of Note
to Comply with the 1933 Act. The Holder agrees that this Note may not be sold, transferred, pledged, hypothecated or otherwise
disposed of except as follows: (a) to a person whom the Note may legally be transferred without registration and without delivery
of a current prospectus under the 1933 Act with respect thereto and then only against receipt of an agreement of such person to
comply with the provisions of this Section 1 with respect to any resale or other disposition of the Note; or (b) to any person
upon delivery of a prospectus then meeting the requirements of the 1933 Act relating to such securities and the offering thereof
for such sale or disposition, and thereafter to all successive assignees.

 

2. Right of Prepayment.
The Company may repay any amount of the Note at any time. On each business day, the Holder may deduct one (1) ACH payment from
the bank account of the Borrower (as specified on Exhibit “A” of this Note) in the amount of $500.00 per business day
until such time as the Borrower has paid an amount equal to the principal and accrued interest as set forth in the Note. Each such
payment shall be applied first to accrued and unpaid interest and the balance shall be applied towards the reduction of the principal
amount due under this Note.

 

3. Representations
and Warranties. The Company represents and warrants to the Holder that:

 

	 	(a)	such party is duly organized, validly existing and in good standing (if applicable) under the laws of the jurisdiction of its organization;
	 	 	 
	 	(b)	such party has authority to own its property and assets and to carry on its business as now conducted, except, in each case, where the failure to do so, or so possess, individually or in the aggregate would not reasonably be expected to result in a material adverse effect;
	 	 	 
	 	(c)	such party has all requisite organizational power and authority to execute and deliver and perform all its obligations under this Note;
	 	 	 
	 	(d)	such party is qualified to do business in, and is in good standing (where such concept exists) in, every jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification necessary, except where the failure to be so qualified or in good standing individually or in the aggregate would not reasonably be expected to result in a material adverse effect;
	 	 	 
	 	(e)	the transactions contemplated hereby is within such party’s organizational powers and have been duly authorized by all necessary corporate or limited liability company action;
	 	 	 
	 	(f)	this Note has been duly executed and delivered by such party and constitutes a legal, valid and binding obligation of such party, enforceable in accordance with its terms; and
	 	 	 

    

    

    

  

	(g)  	the transactions to be entered into and contemplated by this Note (a) do not require any consent or approval of, registration or filing with, or any other action by, any governmental authority except for the Company’s disclosure obligations under federal securities laws, (b) will not (i) violate any applicable law or (ii) the organizational documents, bylaws, charter, operating agreement, certificate of formation or certificate of incorporation of such party, (c) will not violate or result in a default under any indenture or any other agreement, instrument or other evidence of indebtedness, and (d) will not result in the creation or imposition of any lien on any asset of such party.

 

4. Remedies Upon Default.
In the event that the Company defaults on its payment obligations under this Note, the Holder may proceed to protect and enforce
its rights and remedies under this Note by suit in equity, action at law or other appropriate proceeding, whether for the specific
performance of any covenant or agreement contained in this Note and proceed to enforce the payment thereof or any other legal or
equitable right of the Holder.

 

5. Cancellation of
Note. Upon the repayment by the Company of all of its obligations hereunder to the Holder, including, without limitation, the
principal amount of this Note, plus accrued but unpaid interest, the indebtedness evidenced hereby shall be deemed canceled and
paid in full. Payments received by the Holder hereunder shall be applied first against interest accrued on this Note, and next
in reduction of the outstanding principal balance of this Note.

 

6. Severability.
If any provision of this Note is, for any reason, invalid or unenforceable, the remaining provisions of this Note will nevertheless
be valid and enforceable and will remain in full force and effect. Any provision of this Note that is held invalid or unenforceable
by a court of competent jurisdiction will be deemed modified to the extent necessary to make it valid and enforceable and as so
modified will remain in full force and effect.

 

7. Amendment and Waiver.
This Note, or any provision of this Note, may only be amended or waived if set forth in a writing executed by the Company and Holder.
The waiver by Holder of a breach of any provision of this Note shall not operate or be construed as a waiver of any other breach.

 

8. Successors.
Except as otherwise provided herein, this Note shall bind and inure to the benefit of and be enforceable by the Holder and its
permitted successors and assigns.

 

9. Assignment.
This Note shall not be directly or indirectly assignable or delegable by the Company or the Holder, except as provided in a writing
executed by the Company and Holder.

 

10. Further Assurances.
The Holder will execute all documents and take such other actions as the Company may reasonably request in order to consummate
the transactions provided for herein and to accomplish the purposes of this Note.

 

11. Notices, Consents,
etc. Any notices, consents, waivers or other communications required or permitted to be given under the terms hereof must be
in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); or (iii) one (1) business day after deposit with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

	If to Company:	VPR BRANDS, LP
	 	3001 Griffin Road
	 	Fort Lauderdale, FL 33312
	 	Attention: Kevin Frija
	 	Telephone: 954.715.7001
	 	Facsimile: Kevin.Frija@vprbrands.com
	 	 
	With a Copy to (which shall not constitute notice):	ANTHONY LG, PLLC
	 	Attention: Laura E. Anthony, Esq.
	 	 
	If to the Holder:	Kevin Frija
	 	Attention:
	 	Telephone:
	 	Facsimile:_____________

 

or at such other address and/or facsimile number
and/or to the attention of such other person as the recipient party has specified by written notice given to each other party three
(3) trading days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine
containing the time, date, recipient facsimile number and an image of the first page of such transmission or

    

    

    

(C) provided by a nationally recognized overnight
delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized
overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

12. Governing Law.
Except in the case of the Jurisdiction provisions of Section 13 below, this Note shall be delivered and accepted in and shall be
deemed to be contracts made under and governed by the internal laws of the State of Delaware, and for all purposes all questions
concerning the construction, validity and interpretation of this Note and any and all disputes or controversies arising out of
the subject matter hereof (whether by contract, tort or otherwise) shall be governed by and construed in accordance with the domestic
laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision (whether of the State of
Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Florida.

 

13. Jurisdiction.
EACH PARTY HERETO AGREES THAT JURISDICTION AND VENUE IN ANY ACTION BROUGHT BY THE HOLDER PURSUANT TO THIS NOTE SHALL PROPERLY (BUT
NOT EXCLUSIVELY) LIE IN ANY FEDERAL OR STATE COURT LOCATED IN BROWARD COUNTY, FLORIDA. BY EXECUTION AND DELIVERY OF THIS AGREEMENT,
EACH PARTY HERETO IRREVOCABLY SUBMITS TO THE JURISDICTION OF SUCH COURTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY WITH RESPECT
TO SUCH ACTION. EACH PARTY HERETO IRREVOCABLY AGREES THAT VENUE WOULD BE PROPER IN SUCH COURT, AND HEREBY WAIVES ANY OBJECTION
THAT SUCH COURT IS AN IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF SUCH ACTION. EACH PARTY HERETO FURTHER AGREES THAT THE
MAILING BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, OF ANY PROCESS REQUIRED BY ANY SUCH COURT SHALL CONSTITUTE VALID
AND LAWFUL SERVICE OF PROCESS AGAINST THEM, WITHOUT NECESSITY FOR SERVICE BY ANY OTHER MEANS PROVIDED BY STATUTE OR RULE OF COURT.

 

14. No Inconsistent
Agreements. No party hereto will hereafter enter into any agreement, which is inconsistent with the rights granted to the Holder
in this Note.

 

15. Third Parties.
Nothing herein expressed or implied is intended or shall be construed to confer upon or give to any person or entity, other than
the Holder and its permitted successor and assigns, any rights or remedies under or by reason of this Note.

 

16. Waiver of Jury
Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF
OR RELATED TO THIS NOTE. EACH PARTY HERETO CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE HOLDER
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE HOLDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER,
(B) EACH PARTY HERETO UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH PARTY HERETO MAKES THIS WAIVER VOLUNTARILY,
AND (D) EACH PARTY HERETO HAS BEEN INDUCED TO ENTER INTO THIS NOTE BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

 

17. Usury Savings
Clause. Notwithstanding any provision in this Note to the contrary, the total liability for payments of interest and payments
in the nature of interest, including, without limitation, all charges, fees, exactions, or other sums which may at any time be
deemed to be interest, shall not exceed the limit imposed by the usury laws of the jurisdiction governing this Note or any other
applicable law. In the event the total liability of payments of interest and payments in the nature of interest, including, without
limitation, all charges, fees, exactions or other sums which may at any time be deemed to be interest, shall, for any reason whatsoever,
result in an effective rate of interest, which for any month or other interest payment period exceeds the limit imposed by the
usury laws of the jurisdiction governing this Note, all sums in excess of those lawfully collectible as interest for the period
in question shall, without further agreement or notice by, between, or to any party hereto, be applied to the reduction of the
outstanding principal balance due hereunder immediately upon receipt of such sums by the Holder hereof, with the same force and
effect as though the Company had specifically designated such excess sums to be so applied to the reduction of the principal balance
then outstanding, and the Holder hereof had agreed to accept such sums as a penalty-free payment of principal; provided, however,
that the Holder may, at any time and from time to time, elect, by notice in writing to the Company, to waive, reduce, or limit
the collection of any sums in excess of those lawfully collectible as interest, rather than accept such sums as a prepayment of
the principal balance then outstanding. It is the intention of the parties that the Company does not intend or expect to pay, nor
does the Holder intend or expect to charge or collect any interest under this Note greater than the highest non-usurious rate of
interest which may be charged under applicable law.

 

18. Entire Agreement.
This Note (including any recitals hereto) set forth the entire understanding of the parties with respect to the subject matter
hereof, and shall not be modified or affected by any offer, proposal, statement or representation, oral or written, made by or
for any party in connection with the negotiation of the terms hereof, and may be modified only by instruments signed by all of
the parties hereto.

 

[Signature page to follow]

    

    

    

 

IN WITNESS WHEREOF, this Note is executed
by the undersigned as of the date hereof.

 

	VPR BRANDS, LP	 
	 	 	 
	By:	Soleil Capital Management LLC,	 
	 	its General Partner	 

 

	By:	/s/ Kevin Frija	 
	Name:  	Kevin Frija	 
	Title:	Manager and Chief Executive Officer

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