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EXHIBIT 10.1

CALIFORNIA RESOURCES CORPORATION
2021 LONG TERM INCENTIVE PLAN
1.    Purpose.  The purpose of the California Resources Corporation 2021 Long Term Incentive Plan (the “Plan”) is to provide a means through which (a) California Resources Corporation, a Delaware corporation (the “Company”), and the Affiliates may attract, retain and motivate qualified persons as employees, directors and consultants, thereby enhancing the profitable growth of the Company and the Affiliates and (b) persons upon whom the responsibilities of the successful administration and management of the Company and the Affiliates rest, and whose present and potential contributions to the Company and the Affiliates are of importance, can acquire and maintain stock ownership or awards the value of which is tied to the performance of the Company, thereby strengthening their concern for the Company and the Affiliates. Accordingly, the Plan provides for the grant of Options, SARs, Restricted Stock, Restricted Stock Units, Stock Awards, Dividend Equivalents, Other Stock-Based Awards, Cash Awards, Substitute Awards, or any combination of the foregoing, as determined by the Committee in its sole discretion.
2.    Definitions.  For purposes of the Plan, the following terms shall be defined as set forth below:
(a)    “Affiliate” means any corporation, partnership, limited liability company, limited liability partnership, association, trust or other organization that, directly or indirectly, controls, is controlled by, or is under common control with, the Company.  For purposes of the preceding sentence, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any entity or organization, shall mean the possession, directly or indirectly, of the power (i) to vote more than 50% of the securities having ordinary voting power for the election of directors of the controlled entity or organization or (ii) to direct or cause the direction of the management and policies of the controlled entity or organization, whether through the ownership of voting securities, by contract, or otherwise.
(b)    “ASC Topic 718” means the Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation – Stock Compensation, as amended or any successor accounting standard. 
(c)    “Award” means any Option, SAR, Restricted Stock, Restricted Stock Unit, Stock Award, Dividend Equivalent, Other Stock-Based Award, Cash Award, or Substitute Award, together with any other right or interest, granted under the Plan.
(d)    “Award Agreement” means any written instrument (including any employment, severance or change in control agreement) that sets forth the terms, conditions, restrictions and/or limitations applicable to an Award, in addition to those set forth under the Plan.
(e)    “Board” means the Board of Directors of the Company.
(f)    “Cash Award” means an Award denominated in cash granted under Section 6(i). 

(g)    “Change in Control” means, except as otherwise provided in an Award Agreement, the occurrence of any of the following events after the Effective Date: 
(i)    The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either (x) the then-outstanding shares of Stock (the “Outstanding Stock”) or (y) 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 clause (i), the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company or its subsidiaries, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company or (D) any acquisition by any entity pursuant to a transaction that complies with clauses (A), (B) and (C) of clause (iii) below;
(ii)    The individuals constituting the Board on the Effective Date (the “Incumbent Directors”) cease for any reason (other than death or disability) to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election, by the Company’s stockholders was approved by a vote of at least two-thirds of the Incumbent Directors (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) will be considered as though such individual were an Incumbent Director, but excluding, for purposes of this proviso, any such individual whose initial assumption of office occurs as a result of an actual or threatened proxy contest with respect to election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a “person” (as used in Section 13(d) of the Exchange Act), in each case, other than the Board, which individual, for the avoidance of doubt, shall not be deemed to be an Incumbent Director for purposes of this definition, regardless of whether such individual was approved by a vote of at least two-thirds of the Incumbent Directors;
(iii)    Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company or an acquisition of assets of another entity (a “Business Combination”), in each case, unless, following such Business Combination, (A) the Outstanding Stock and Outstanding Company Voting Securities immediately prior to such Business Combination represent or are converted into or exchanged for securities which represent or are convertible into more than 50% of, respectively, the then-outstanding shares of common stock or common equity interests and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors or other governing body, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity which as a result of such transaction owns the Company, or all or substantially all of the Company’s assets either directly or through one or more subsidiaries), (B) no individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act), excluding the Company, its subsidiaries and any employee benefit plan (or related trust) sponsored or maintained by the Company or the entity resulting from such Business Combination (or any entity controlled by either the Company or the entity resulting from such Business Combination), beneficially owns, directly or indirectly, 50% or more of, respectively, the then-outstanding shares of common stock or common equity interests of the entity resulting from 
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such Business Combination or the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors or other governing body of such entity except to the extent that such ownership results solely from direct or indirect ownership of the Company that existed prior to the Business Combination, and (C) at least a majority of the members of the board of directors or similar governing body of the entity resulting from such Business Combination were Incumbent Directors at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or
(iv)    Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.
Notwithstanding any provision of this Section 2(g), for purposes of an Award that provides for a deferral of compensation under the Nonqualified Deferred Compensation Rules, to the extent the impact of a Change in Control on such Award would subject a Participant to additional taxes under the Nonqualified Deferred Compensation Rules, a Change in Control described in subsection (i), (ii), (iii) or (iv) above with respect to such Award will mean both a Change in Control and a “change in the ownership of a corporation,” “change in the effective control of a corporation,” or a “change in the ownership of a substantial portion of a corporation’s assets” within the meaning of the Nonqualified Deferred Compensation Rules as applied to the Company.
(h)    “Change in Control Price” means the amount determined in the following clause (i), (ii), (iii), (iv) or (v), whichever the Committee determines is applicable, as follows:   the price per share offered to holders of Stock in any merger or consolidation,  the per share Fair Market Value of the Stock immediately before the Change in Control or other event without regard to assets sold in the Change in Control or other event and assuming the Company has received the consideration paid for the assets in the case of a sale of the assets,  the amount distributed per share of Stock in a dissolution transaction,  the price per share offered to holders of Stock in any tender offer or exchange offer whereby a Change in Control or other event takes place, or  if such Change in Control or other event occurs other than pursuant to a transaction described in clauses (i), (ii), (iii), or (iv) of this Section 2(h), the value per share of the Stock that may otherwise be obtained with respect to such Awards or to which such Awards track, as determined by the Committee as of the date determined by the Committee to be the date of cancellation and surrender of such Awards.  In the event that the consideration offered to stockholders of the Company in any transaction described in this Section 2(h) or in Section 8(e) consists of anything other than cash, the Committee shall determine the fair cash equivalent of the portion of the consideration offered which is other than cash and such determination shall be binding on all affected Participants to the extent applicable to Awards held by such Participants.
(i)    “Code” means the Internal Revenue Code of 1986, as amended from time to time, including the guidance and regulations promulgated thereunder and successor provisions, guidance and regulations thereto.
(j)    “Committee” means a committee of two or more directors designated by the Board to administer the Plan; provided, however, that, unless otherwise determined by the Board, the Committee shall consist solely of two or more Qualified Members.
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(k)    “Dividend Equivalent” means a right, granted to an Eligible Person under Section 6(g), to receive cash, Stock, other Awards or other property equal in value to dividends paid with respect to a specified number of shares of Stock, or other periodic payments.
(l)    “Effective Date” means January 18, 2021, which is the date upon which the Plan was adopted by the Board.
(m)    “Eligible Person” means any individual who, as of the date of grant of an Award, is an officer or employee of the Company or of any Affiliate, and any other person who provides services to the Company or any Affiliate, including directors of the Company; provided, however, that, any such individual must be an “employee” of the Company or any of its parents or subsidiaries within the meaning of General Instruction A.1(a) to Form S-8 if such individual is granted an Award that may be settled in Stock.  An employee on leave of absence may be an Eligible Person.
(n)    “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, including the guidance, rules and regulations promulgated thereunder and successor provisions, guidance, rules and regulations thereto.
(o)    “Fair Market Value” of a share of Stock means, as of any specified date, (i) if the Stock is listed on a national securities exchange, the closing sales price of the Stock, as reported on the stock exchange composite tape on that date (or if no sales occur on such date, on the last preceding date on which such sales of the Stock are so reported); (ii) if the Stock is not traded on a national securities exchange but is traded over the counter on such date, the average between the reported high and low bid and asked prices of Stock on the most recent date on which Stock was publicly traded on or preceding the specified date; or (iii) in the event Stock is not publicly traded at the time a determination of its value is required to be made under the Plan, the amount determined by the Committee in its discretion in such manner as it deems appropriate, taking into account all factors the Committee deems appropriate, including the Nonqualified Deferred Compensation Rules.  Notwithstanding this definition of Fair Market Value, with respect to one or more Award types, or for any other purpose for which the Committee must determine the Fair Market Value under the Plan, the Committee may elect to choose a different measurement date or methodology for determining Fair Market Value so long as the determination is consistent with the Nonqualified Deferred Compensation Rules and all other applicable laws and regulations.  
(p)     “ISO” means an Option intended to be and designated as an “incentive stock option” within the meaning of Section 422 of the Code.
(q)    “Nonqualified Deferred Compensation Rules” means the limitations and requirements of Section 409A of the Code, as amended from time to time, including the guidance and regulations promulgated thereunder and successor provisions, guidance and regulations thereto.
(r)    “Nonstatutory Option” means an Option that is not an ISO.
(s)    “Option” means a right, granted to an Eligible Person under Section 6(b), to purchase Stock at a specified price during specified time periods, which may either be an ISO or a Nonstatutory Option.
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(t)    “Other Stock-Based Award” means an Award granted to an Eligible Person under Section 6(h).
(u)    “Participant” means a person who has been granted an Award under the Plan that remains outstanding, including a person who is no longer an Eligible Person.
(v)    “Qualified Member” means a member of the Board who is (i) a “non-employee director” within the meaning of Rule 16b-3(b)(3), and (ii) “independent” under the listing standards or rules of the securities exchange upon which the Stock is traded, but only to the extent such independence is required in order to take the action at issue pursuant to such standards or rules.
(w)    “Restricted Stock” means Stock granted to an Eligible Person under Section 6(d) that is subject to certain restrictions and to a risk of forfeiture.
(x)    “Restricted Stock Unit” means a right, granted to an Eligible Person under Section 6(e), to receive Stock, cash or a combination thereof at the end of a specified period (which may or may not be coterminous with the vesting schedule of the Award).
(y)    “Rule 16b-3” means Rule 16b-3, promulgated by the SEC under Section 16 of the Exchange Act.
(z)    “SAR” means a stock appreciation right granted to an Eligible Person under Section 6(c).
(aa)    “SEC” means the Securities and Exchange Commission.
(bb)    “Securities Act” means the Securities Act of 1933, as amended from time to time, including the guidance, rules and regulations promulgated thereunder and successor provisions, guidance, rules and regulations thereto.
(cc)    “Stock” means the Company’s Common Stock, par value $0.01 per share, and such other securities as may be substituted (or re-substituted) for Stock pursuant to Section 8.
(dd)    “Stock Award” means unrestricted shares of Stock granted to an Eligible Person under Section 6(f).
(ee)    “Substitute Award” means an Award granted under Section 6(j). 
3.    Administration.  
(a)    Authority of the Committee.  The Plan shall be administered by the Committee except to the extent the Board elects to administer the Plan, in which case references herein to the “Committee” shall be deemed to include references to the “Board.”  Subject to the express provisions of the Plan, Rule 16b-3 and other applicable laws, the Committee shall have the authority, in its sole and absolute discretion, to: 
(i)    designate Eligible Persons as Participants; 
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(ii)    determine the type or types of Awards to be granted to an Eligible Person; 
(iii)    determine the number of shares of Stock or amount of cash to be covered by Awards; 
(iv)    determine the terms and conditions of any Award, including whether, to what extent and under what circumstances Awards may be vested, settled, exercised, cancelled or forfeited (including conditions based on continued employment or service requirements or the achievement of one or more performance goals); 
(v)    modify, waive or adjust any term or condition of an Award that has been granted, which may include the acceleration of vesting, waiver of forfeiture restrictions, modification of the form of settlement of the Award (for example, from cash to Stock or vice versa), early termination of a performance period, or modification of any other condition or limitation regarding an Award; 
(vi)    determine the treatment of an Award upon a termination of employment or other service relationship;
(vii)    impose a holding period with respect to an Award or the shares of Stock received in connection with an Award;
(viii)    interpret and administer the Plan and any Award Agreement; 
(ix)    correct any defect, supply any omission or reconcile any inconsistency in the Plan, in any Award, or in any Award Agreement; and 
(x)    make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. 
The express grant of any specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee.  Any action of the Committee shall be final, conclusive and binding on all persons, including the Company, Affiliates, stockholders, Participants, beneficiaries, and permitted transferees under Section 7(a) or other persons claiming rights from or through a Participant.
(b)    Exercise of Committee Authority.  At any time that a member of the Committee is not a Qualified Member, any action of the Committee relating to an Award granted or to be granted to an Eligible Person who is then subject to Section 16 of the Exchange Act in respect of the Company where such action is not taken by the full Board may be taken either (i) by a subcommittee, designated by the Committee, composed solely of two or more Qualified Members, or (ii) by the Committee but with each such member who is not a Qualified Member abstaining or recusing himself or herself from such action; provided, however, that upon such abstention or recusal, the Committee remains composed solely of two or more Qualified Members.  Such action, authorized by such a subcommittee or by the Committee upon the abstention or recusal of such non-Qualified Member(s), shall be the action of the Committee for purposes of the Plan.  For the avoidance of doubt, the full Board may take any action relating to an Award granted
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or to be granted to an Eligible Person who is then subject to Section 16 of the Exchange Act in respect of the Company.
(c)    Delegation of Authority.  The Committee may delegate any or all of its powers and duties under the Plan to a subcommittee of directors or to any officer of the Company, including the power to perform administrative functions and grant Awards; provided, that such delegation does not (i) violate state or corporate law, or (ii) result in the loss of an exemption under Rule 16b-3(d)(1) for Awards granted to Participants subject to Section 16 of the Exchange Act in respect of the Company.  Upon any such delegation, all references in the Plan to the “Committee,” other than in Section 8, shall be deemed to include any subcommittee or officer of the Company to whom such powers have been delegated by the Committee.  Any such delegation shall not limit the right of such subcommittee members or such an officer to receive Awards; provided, however, that such subcommittee members and any such officer may not grant Awards to himself or herself, a member of the Board, or any executive officer of the Company or an Affiliate, or take any action with respect to any Award previously granted to himself or herself, a member of the Board, or any executive officer of the Company or an Affiliate. The Committee may also appoint agents who are not executive officers of the Company or members of the Board to assist in administering the Plan, provided, however, that such individuals may not be delegated the authority to grant or modify any Awards that will, or may, be settled in Stock.
(d)    Limitation of Liability.  The Committee and each member thereof shall be entitled to, in good faith, rely or act upon any report or other information furnished to him or her by any officer or employee of the Company or any Affiliate, the Company’s legal counsel, independent auditors, consultants or any other agents assisting in the administration of the Plan.  Members of the Committee and any officer or employee of the Company or any Affiliate acting at the direction or on behalf of the Committee shall not be personally liable for any action or determination taken or made in good faith with respect to the Plan, and shall, to the fullest extent permitted by law, be indemnified and held harmless by the Company with respect to any such action or determination.
(e)    Participants in Non-U.S. Jurisdictions. Notwithstanding any provision of the Plan to the contrary, to comply with applicable laws in countries other than the United States in which the Company or any Affiliate operates or has employees, directors or other service providers from time to time, or to ensure that the Company complies with any applicable requirements of foreign securities exchanges, the Committee, in its sole discretion, shall have the power and authority to: (i) determine which of the Affiliates shall be covered by the Plan; (ii) determine which Eligible Persons outside the United States are eligible to participate in the Plan; (iii) modify the terms and conditions of any Award granted to Eligible Persons outside the United States to comply with applicable foreign laws or listing requirements of any foreign exchange; (iv) establish sub-plans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable (any such sub-plans and/or modifications shall be attached to the Plan as appendices), provided, however, that no such sub-plans and/or modifications shall increase the share limitations contained in Section 4(a); and (v) take any action, before or after an Award is granted, that it deems advisable to comply with any applicable governmental regulatory exemptions or approval or listing requirements of any such foreign securities exchange.  For purposes of the Plan, all references to foreign laws, rules, regulations or
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taxes shall be references to the laws, rules, regulations and taxes of any applicable jurisdiction other than the United States or a political subdivision thereof.  
4.    Stock Subject to the Plan.  
(a)    Number of Shares Available for Delivery.  Subject to adjustment in a manner consistent with Section 8, 9,257,740 shares of Stock are reserved and available for delivery with respect to Awards, and such total shall be available for the issuance of shares upon the exercise of ISOs.
(b)    Application of Limitation to Grants of Awards.  Subject to Section 4(c), no Award may be granted if the number of shares of Stock that may be delivered in connection with such Award exceeds the number of shares of Stock remaining available under the Plan minus the number of shares of Stock issuable in settlement of or relating to then-outstanding Awards.  The Committee may adopt reasonable counting procedures to ensure appropriate counting, avoid double counting (as, for example, in the case of tandem or Substitute Awards) and make adjustments if the number of shares of Stock actually delivered differs from the number of shares previously counted in connection with an Award. 
(c)    Availability of Shares Not Delivered under Awards.  Shares of Stock subject to an Award under the Plan that expires or is cancelled, forfeited, exchanged, settled in cash or otherwise terminated without the actual delivery of shares (Awards of Restricted Stock shall not be considered “delivered shares” for this purpose), will again be available for Awards. Notwithstanding the foregoing, (i) the number of shares tendered or withheld in payment of any exercise or purchase price of an Award or taxes relating to an Award, (ii) shares that were subject to an Option or an SAR but were not issued or delivered as a result of the net settlement or net exercise of such Option or SAR and (iii) shares repurchased on the open market with the proceeds of an Option’s exercise price, will not, in each case, be available for Awards.  If an Award may be settled only in cash, such Award need not be counted against any share limit under this Section 4.
(d)    Shares Available Following Certain Transactions.  Substitute Awards granted in accordance with applicable stock exchange requirements and in substitution or exchange for awards previously granted by a company acquired by the Company or any subsidiary or with which the Company or any subsidiary combines shall not reduce the shares authorized for issuance under the Plan or the limitations on grants to non-employee members of the Board under Section 5(b), nor shall shares subject to such Substitute Awards be added to the shares available for issuance under the Plan as provided above (whether or not such Substitute Awards are later cancelled, forfeited or otherwise terminated).  
(e)    Stock Offered.  The shares of Stock to be delivered under the Plan shall be made available from (i) authorized but unissued shares of Stock, (ii) Stock held in the treasury of the Company, or (iii) previously issued shares of Stock reacquired by the Company, including shares purchased on the open market.
5.    Eligibility; Award Limitations for Non-Employee Members of the Board.  
(a)    Awards may be granted under the Plan only to Eligible Persons. 
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(b)    In each calendar year during any part of which the Plan is in effect, a non-employee member of the Board may not be granted Awards for such individual’s service on the Board having a value (determined, if applicable, pursuant to ASC Topic 718) on the date of grant in excess of $750,000; provided, that for any calendar year in which a non-employee member of the Board (i) first commences service on the Board, (ii) serves on a special committee of the Board, or (iii) serves as lead director or chairman of the Board, additional Awards may be granted to such non-employee member of the Board in excess of such limit; provided, further, that the limit set forth in this Section 5(b) shall be applied without regard to (A) cash fees paid to a non-employee member of the Board during such calendar year (or grants of Awards, if any, made to a non-employee member of the Board in lieu of all or any portion of such cash fees) or (B) grants of Awards, if any, made to a non-employee member of the Board during any period in which such individual was an employee of the Company or any Affiliate or was otherwise providing services to the Company or to any Affiliate other than in the capacity as a director of the Company. Notwithstanding the foregoing, with respect to each individual who is a non-employee member of the Board on the Effective Date, such individual may be granted Awards with an effective date during the calendar year that includes the Effective Date that are in excess of the limit described in the preceding sentence.
6.    Specific Terms of Awards.
(a)    General.  Awards may be granted on the terms and conditions set forth in this Section 6.  Awards granted under the Plan may, in the discretion of the Committee, be granted either alone, in addition to, or in tandem with any other Award.  In addition, the Committee may impose on any Award or the exercise thereof, at the date of grant or thereafter (subject to Section 10), such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall determine, including subjecting such awards to service- or performance-based vesting conditions.  Without limiting the scope of the preceding sentence, with respect to any performance-based conditions, (i) the Committee may use one or more business criteria or other measures of performance as it may deem appropriate in establishing any performance goals applicable to an Award, (ii) any such performance goals may relate to the performance of the Participant, the Company (on a consolidated basis), or to specified subsidiaries, business or geographical units or operating areas of the Company, (iii) the performance period or periods over which performance goals will be measured shall be established by the Committee, and (iv) any such performance goals and performance periods may differ among Awards granted to any one Participant or to different Participants.  To the extent provided in an Award Agreement, the Committee may exercise its discretion to reduce or increase the amounts payable under any Award.
(b)    Options.  The Committee is authorized to grant Options, which may be designated as either ISOs or Nonstatutory Options, to Eligible Persons on the following terms and conditions:
(i)    Exercise Price.  Each Award Agreement evidencing an Option shall state the exercise price per share of Stock (the “Exercise Price”) established by the Committee; provided, however, that except as provided in Section 6(j) or in Section 8, the Exercise Price of an Option shall not be less than the greater of (A) the par value per share of the Stock or (B) 100% of the Fair Market Value per share of the Stock as of the date of grant of the Option (or in the case of an ISO granted to an individual who owns stock possessing more than 10% of the total combined 
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voting power of all classes of stock of the Company or its parent or any of its subsidiaries, 110% of the Fair Market Value per share of the Stock on the date of grant). 
(ii)    Time and Method of Exercise; Other Terms.  The Committee shall determine the methods by which the Exercise Price may be paid or deemed to be paid, the form of such payment, including cash or cash equivalents, Stock (including previously owned shares or through a cashless exercise, i.e., “net settlement”, a broker-assisted exercise, or other reduction of the amount of shares otherwise issuable pursuant to the Option), other Awards or awards granted under other plans of the Company or any Affiliate, other property, or any other legal consideration the Committee deems appropriate (including notes or other contractual obligations of Participants to make payment on a deferred basis), the methods by or forms in which Stock will be delivered or deemed to be delivered to Participants, including the delivery of Restricted Stock subject to Section 6(d), and any other terms and conditions of any Option.  In the case of an exercise whereby the Exercise Price is paid with Stock, such Stock shall be valued based on the Stock’s Fair Market Value as of the date of exercise.  No Option may be exercisable for a period of more than ten years following the date of grant of the Option (or in the case of an ISO granted to an individual who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or its parent or any of its subsidiaries, for a period of more than five years following the date of grant of the ISO).
(iii)    ISOs.  Notwithstanding any provision in the Plan to the contrary, in no event may an ISO be granted under the Plan prior to the date, if any, after the Effective Date upon which the stockholders of the Company approve the Plan in accordance with Section 422 of the Code.  The terms of any ISO granted under the Plan shall comply in all respects with the provisions of Section 422 of the Code.  ISOs may only be granted to Eligible Persons who are employees of the Company or employees of a parent or any subsidiary corporation of the Company.  Except as otherwise provided in Section 8, no term of the Plan relating to ISOs (including any SAR in tandem therewith) shall be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan be exercised, so as to disqualify either the Plan or any ISO under Section 422 of the Code, unless notice has been provided to the Participant that such change will result in such disqualification.  ISOs shall not be granted after October 12, 2030. Notwithstanding the foregoing, to the extent that the aggregate Fair Market Value of shares of Stock subject to an ISO and the aggregate Fair Market Value of shares of stock of any parent or subsidiary corporation (within the meaning of Sections 424(e) and (f) of the Code) subject to any other incentive stock options of the Company or a parent or subsidiary corporation (within the meaning of Sections 424(e) and (f) of the Code) that are exercisable for the first time by a Participant during any calendar year exceeds $100,000, or such other amount as may be prescribed under Section 422 of the Code, such excess shall be treated as Nonstatutory Options in accordance with the Code.  As used in the previous sentence, Fair Market Value shall be determined as of the date the ISO is granted.  If a Participant shall make any disposition of shares of Stock issued pursuant to an ISO under the circumstances described in Section 421(b) of the Code (relating to disqualifying dispositions), the Participant shall notify the Company of such disposition within the time provided to do so in the applicable award agreement.
(c)    SARs.  The Committee is authorized to grant SARs to Eligible Persons on the following terms and conditions: 
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(i)    Right to Payment.  An SAR is a right to receive, upon exercise thereof, the excess of (A) the Fair Market Value of one share of Stock on the date of exercise over (B) the grant price of the SAR as determined by the Committee.
(ii)    Grant Price. Each Award Agreement evidencing an SAR shall state the grant price per share of Stock established by the Committee; provided, however, that except as provided in Section 6(j) or in Section 8, the grant price per share of Stock subject to an SAR shall not be less than the greater of (A) the par value per share of the Stock or (B) 100% of the Fair Market Value per share of the Stock as of the date of grant of the SAR.   
(iii)    Method of Exercise and Settlement; Other Terms. The Committee shall determine the form of consideration payable upon settlement, the method by or forms in which Stock (if any) will be delivered or deemed to be delivered to Participants, and any other terms and conditions of any SAR.  SARs may be either free-standing or granted in tandem with other Awards.  No SAR may be exercisable for a period of more than ten years following the date of grant of the SAR.
(iv)    Rights Related to Options.  An SAR granted in connection with an Option shall entitle a Participant, upon exercise, to surrender that Option or any portion thereof, to the extent unexercised, and to receive payment of an amount determined by multiplying (A) the difference obtained by subtracting the Exercise Price with respect to a share of Stock specified in the related Option from the Fair Market Value of a share of Stock on the date of exercise of the SAR, by (B) the number of shares as to which that SAR has been exercised.  The Option shall then cease to be exercisable to the extent surrendered.  SARs granted in connection with an Option shall be subject to the terms and conditions of the Award Agreement governing the Option, which shall provide that the SAR is exercisable only at such time or times and only to the extent that the related Option is exercisable and shall not be transferable except to the extent that the related Option is transferrable.
(d)    Restricted Stock.  The Committee is authorized to grant Restricted Stock to Eligible Persons on the following terms and conditions:
(i)    Restrictions.  Restricted Stock shall be subject to such restrictions on transferability, risk of forfeiture and other restrictions, if any, as the Committee may impose.  Except as provided in Section 7(a)(iii) and Section 7(a)(iv), during the restricted period applicable to the Restricted Stock, the Restricted Stock may not be sold, transferred, pledged, hedged, hypothecated, margined or otherwise encumbered by the Participant.
(ii)    Dividends and Splits.  As a condition to the grant of an Award of Restricted Stock, the Committee may allow a Participant to elect, or may require, that any cash dividends paid on a share of Restricted Stock be automatically reinvested in additional shares of Restricted Stock, applied to the purchase of additional Awards or deferred without interest to the date of vesting of the associated Award of Restricted Stock.  Unless otherwise determined by the Committee and specified in the applicable Award Agreement, Stock distributed in connection with a Stock split or Stock dividend, and other property (other than cash) distributed as a dividend, shall be subject to restrictions and a risk of forfeiture to the same extent as the Restricted Stock with respect to which such Stock or other property has been distributed.
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(e)    Restricted Stock Units.  The Committee is authorized to grant Restricted Stock Units to Eligible Persons on the following terms and conditions:
(i)    Award and Restrictions.  Restricted Stock Units shall be subject to such restrictions (which may include a risk of forfeiture) as the Committee may impose.  
(ii)    Settlement.  Settlement of vested Restricted Stock Units shall occur upon vesting or upon expiration of the deferral period specified for such Restricted Stock Units by the Committee (or, if permitted by the Committee, as elected by the Participant).  Restricted Stock Units shall be settled by delivery of (A) a number of shares of Stock equal to the number of Restricted Stock Units for which settlement is due, or (B) cash in an amount equal to the Fair Market Value of the specified number of shares of Stock equal to the number of Restricted Stock Units for which settlement is due, or a combination thereof, as determined by the Committee at the date of grant or thereafter.
(f)    Stock Awards.  The Committee is authorized to grant Stock Awards to Eligible Persons as a bonus, as additional compensation, or in lieu of cash compensation any such Eligible Person is otherwise entitled to receive, in such amounts and subject to such other terms as the Committee in its discretion determines to be appropriate.
(g)    Dividend Equivalents.  The Committee is authorized to grant Dividend Equivalents to Eligible Persons, entitling any such Eligible Person to receive cash, Stock, other Awards, or other property equal in value to dividends or other distributions paid with respect to a specified number of shares of Stock.  Dividend Equivalents may be awarded on a free-standing basis or in connection with another Award (other than an Award of Restricted Stock or a Stock Award).  The Committee may provide that Dividend Equivalents that are granted as free-standing awards shall be paid or distributed when accrued or at a later specified date and, if distributed at a later date, may be deemed to have been reinvested in additional Stock, Awards, or other investment vehicles or accrued in a bookkeeping account without interest, and subject to such restrictions on transferability and risks of forfeiture, as the Committee may specify.  With respect to Dividend Equivalents granted in connection with another Award, absent a contrary provision in the Award Agreement, such Dividend Equivalents shall be subject to the same restrictions and risk of forfeiture as the Award with respect to which the dividends accrue and shall not be paid unless and until such Award has vested and been earned. 
(h)    Other Stock-Based Awards.  The Committee is authorized, subject to limitations under applicable law, to grant to Eligible Persons such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Stock, as deemed by the Committee to be consistent with the purposes of the Plan, including convertible or exchangeable debt securities, other rights convertible or exchangeable into Stock, purchase rights for Stock, Awards with value and payment contingent upon performance of the Company or any other factors designated by the Committee, and Awards valued by reference to the book value of Stock or the value of securities of, or the performance of, specified Affiliates.  The Committee shall determine the terms and conditions of such Other Stock-Based Awards.  Stock delivered pursuant to an Other-Stock Based Award in the nature of a purchase right granted under this Section 6(h) shall be purchased for such consideration, paid for
12

at such times, by such methods, and in such forms, including cash, Stock, other Awards, or other property, as the Committee shall determine.  
(i)    Cash Awards.  The Committee is authorized to grant Cash Awards, on a free-standing basis or as an element of, a supplement to, or in lieu of any other Award under the Plan to Eligible Persons in such amounts and subject to such other terms as the Committee in its discretion determines to be appropriate, including for purposes of any annual or short-term incentive or other bonus program.
(j)    Substitute Awards; No Repricing.  Awards may be granted in substitution or exchange for any other Award granted under the Plan or under another plan of the Company or an Affiliate or any other right of an Eligible Person to receive payment from the Company or an Affiliate.  Awards may also be granted under the Plan in substitution for awards held by individuals who become Eligible Persons as a result of a merger, consolidation or acquisition of another entity or the assets of another entity by or with the Company or an Affiliate.  Such Substitute Awards referred to in the immediately preceding sentence that are Options or SARs may have an exercise price that is less than the Fair Market Value of a share of Stock on the date of the substitution if such substitution complies with the Nonqualified Deferred Compensation Rules and other applicable laws and exchange rules.  Except as provided in this Section 6(j) or in Section 8, without the approval of the stockholders of the Company, the terms of outstanding Awards may not be amended to (i) reduce the Exercise Price or grant price of an outstanding Option or SAR, (ii) grant a new Option, SAR or other Award in substitution for, or upon the cancellation of, any previously granted Option or SAR that has the effect of reducing the Exercise Price or grant price thereof, (iii) exchange any Option or SAR for Stock, cash or other consideration when the Exercise Price or grant price per share of Stock under such Option or SAR exceeds the Fair Market Value of a share of Stock or (iv) take any other action that would be considered a “repricing” of an Option or SAR under the applicable listing standards of the national securities exchange on which the Stock is listed (if any). 
7.    Certain Provisions Applicable to Awards.  
(a)    Limit on Transfer of Awards.
(i)    Except as provided in Sections 7(a)(iii) and (iv), each Option and SAR shall be exercisable only by the Participant during the Participant’s lifetime, or by the person to whom the Participant’s rights shall pass by will or the laws of descent and distribution. Notwithstanding anything to the contrary in this Section 7(a), an ISO shall not be transferable other than by will or the laws of descent and distribution. 
(ii)    Except as provided in Sections 7(a)(i), (iii) and (iv), no Award, other than a Stock Award, and no right under any such Award, may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate.
(iii)    To the extent specifically provided by the Committee and permitted pursuant to Form S-8 and the instructions thereto, an Award may be transferred by a Participant 
13

on such terms and conditions as the Committee may from time to time establish; provided, however, that no Award (other than a Stock Award) may be transferred to a third-party financial institution for value. 
(iv)    An Award may be transferred pursuant to a domestic relations order entered or approved by a court of competent jurisdiction upon delivery to the Company of a written request for such transfer and a certified copy of such order.
(b)    Form and Timing of Payment under Awards; Deferrals.  Subject to the terms of the Plan and any applicable Award Agreement, payments to be made by the Company or any Affiliates upon the exercise or settlement of an Award may be made in such forms as the Committee shall determine in its discretion, including cash, Stock, other Awards or other property, and may be made in a single payment or transfer, in installments, or on a deferred basis (which may be required by the Committee or permitted at the election of the Participant on terms and conditions established by the Committee); provided, however, that any such deferred or installment payments will be set forth in the Award Agreement.  Payments may include, without limitation, provisions for the payment or crediting of reasonable interest on installment or deferred payments or the grant or crediting of Dividend Equivalents or other amounts in respect of installment or deferred payments denominated in Stock.
(c)    Evidencing Stock. The Stock or other securities of the Company delivered pursuant to an Award may be evidenced in any manner deemed appropriate by the Committee in its sole discretion, including in the form of a certificate issued in the name of the Participant or by book entry, electronic or otherwise, and shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the SEC, any stock exchange upon which such Stock or other securities are then listed, and any applicable federal, state or other laws, and the Committee may cause a legend or legends to be inscribed on any such certificates to make appropriate reference to such restrictions.  Further, if certificates representing Restricted Stock are registered in the name of the Participant, the Company may retain physical possession of the certificates and may require that the Participant deliver a stock power to the Company, endorsed in blank, related to the Restricted Stock.
(d)    Consideration for Grants. Awards may be granted for such consideration, including services, as the Committee shall determine, but shall not be granted for less than the minimum lawful consideration. 
(e)    Additional Agreements.  Each Eligible Person to whom an Award is granted under the Plan may be required to agree in writing, as a condition to the grant of such Award or otherwise, to subject an Award that is exercised or settled following such Eligible Person’s termination of employment or service to a general release of claims and/or a noncompetition or other restricted covenant agreement in favor of the Company and the Affiliates, with the terms and conditions of such agreement(s) to be determined in good faith by the Committee. 
14

8.    Subdivision or Consolidation; Recapitalization; Change in Control; Reorganization.  
(a)    Existence of Plans and Awards.  The existence of the Plan and the Awards granted hereunder shall not affect in any way the right or power of the Company, the Board or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of debt or equity securities ahead of or affecting Stock or the rights thereof, the dissolution or liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding.
(b)    Additional Issuances.  Except as expressly provided herein, the issuance by the Company of shares of stock of any class, including upon conversion of shares or obligations of the Company convertible into such shares or other securities, and in any case whether or not for fair value, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Stock subject to Awards theretofore granted or the purchase price per share of Stock, if applicable.
(c)    Subdivision or Consolidation of Shares.  The terms of an Award and the share limitations under the Plan shall be subject to adjustment by the Committee from time to time, in accordance with the following provisions:
(i)    If at any time, or from time to time, the Company shall subdivide as a whole (by reclassification, by a Stock split, by the issuance of a distribution on Stock payable in Stock, or otherwise) the number of shares of Stock then outstanding into a greater number of shares of Stock or in the event the Company distributes an extraordinary cash dividend, then, as appropriate (A) the maximum number of shares of Stock available for delivery with respect to Awards and applicable limitations with respect to Awards provided in Section 4 and Section 5 (other than cash limits) shall be increased proportionately, and the kind of shares or other securities available for the Plan shall be appropriately adjusted, (B) the number of shares of Stock (or other kind of shares or securities) that may be acquired under any then-outstanding Award shall be increased proportionately, and (C) the price (including the Exercise Price or grant price) for each share of Stock (or other kind of shares or securities) subject to then-outstanding Awards shall be reduced proportionately, without changing the aggregate purchase price or value as to which outstanding Awards remain exercisable or subject to restrictions; provided, however, that in the case of an extraordinary cash dividend that is not an Adjustment Event, the adjustment to the number of shares of Stock and the Exercise Price or grant price, as applicable, with respect to an outstanding Option or SAR may be made in such other manner as the Committee may determine that is permitted pursuant to applicable tax and other laws, rules and regulations. Notwithstanding the foregoing, Awards that already have a right to receive extraordinary cash dividends as a result of Dividend Equivalents or other dividend rights will not be adjusted as a result of an extraordinary cash dividend.
(ii)    If at any time, or from time to time, the Company shall consolidate as a whole (by reclassification, by reverse Stock split, or otherwise) the number of shares of Stock then outstanding into a lesser number of shares of Stock, then, as appropriate (A) the maximum number of shares of Stock available for delivery with respect to Awards and applicable limitations 
15

with respect to Awards provided in Section 4 and Section 5 (other than cash limits) shall be decreased proportionately, and the kind of shares or other securities available for the Plan shall be appropriately adjusted, (B) the number of shares of Stock (or other kind of shares or securities) that may be acquired under any then-outstanding Award shall be decreased proportionately, and (C) the price (including the Exercise Price or grant price) for each share of Stock (or other kind of shares or securities) subject to then-outstanding Awards shall be increased proportionately, without changing the aggregate purchase price or value as to which outstanding Awards remain exercisable or subject to restrictions.
(d)    Recapitalization.  In the event of any change in the capital structure or business of the Company or other corporate transaction or event that would be considered an “equity restructuring” within the meaning of ASC Topic 718 and, in each case, that would result in an additional compensation expense to the Company pursuant to the provisions of ASC Topic 718, if adjustments to Awards with respect to such event were discretionary or otherwise not required (each such an event, an “Adjustment Event”), then the Committee shall equitably adjust (i) the aggregate number or kind of shares that thereafter may be delivered under the Plan, (ii) the number or kind of shares or other property (including cash) subject to an Award, (iii) the terms and conditions of Awards, including the purchase price or Exercise Price of Awards and performance goals, as applicable, and (iv) the applicable limitations with respect to Awards provided in Section 4 and Section 5 (other than cash limits) to equitably reflect such Adjustment Event (“Equitable Adjustments”).  In the event of any change in the capital structure or business of the Company or other corporate transaction or event that would not be considered an Adjustment Event, and is not otherwise addressed in this Section 8, the Committee shall have complete discretion to make Equitable Adjustments (if any) in such manner as it deems appropriate with respect to such other event.  
(e)    Change in Control and Other Events.  In the event of a Change in Control or other changes in the Company or the outstanding Stock by reason of a recapitalization, reorganization, merger, consolidation, combination, exchange or other relevant change occurring after the date of the grant of any Award, the Committee, acting in its sole discretion without the consent or approval of any holder, may exercise any power enumerated in Section 3 (including the power to accelerate vesting, waive any forfeiture conditions or otherwise modify or adjust any other condition or limitation regarding an Award) and may also effect one or more of the following alternatives, which may vary among individual holders and which may vary among Awards held by any individual holder: 
(i)    accelerate the time of exercisability of an Award so that such Award may be exercised in full or in part for a limited period of time on or before a date specified by the Committee, after which specified date all unexercised Awards and all rights of holders thereunder shall terminate; 
(ii)    redeem in whole or in part outstanding Awards by requiring the mandatory surrender to the Company by selected holders of some or all of the outstanding Awards held by such holders (irrespective of whether such Awards are then vested or exercisable) as of a date, specified by the Committee, in which event the Committee shall thereupon cancel such Awards and pay to each holder an amount of cash or other consideration per Award (other than a Dividend Equivalent or Cash Award, which the Committee may separately require to be 
16

surrendered in exchange for cash or other consideration determined by the Committee in its discretion) equal to the Change in Control Price, less the Exercise Price with respect to an Option and less the grant price with respect to an SAR, as applicable to such Awards; provided, however, that to the extent the Exercise Price of an Option or the grant price of an SAR exceeds the Change in Control Price, such Award may be cancelled for no consideration; 
(iii)    make such adjustments to Awards then outstanding as the Committee deems appropriate to reflect such Change in Control or other such event (including the substitution, assumption, or continuation of Awards by the successor company or a parent or subsidiary thereof); 
provided, however, that so long as the event is not an Adjustment Event, the Committee may determine in its sole discretion that no adjustment is necessary to Awards then outstanding.  If an Adjustment Event occurs, this Section 8(e) shall only apply to the extent it is not in conflict with Section 8(d).
9.    General Provisions.  
(a)    Tax Withholding.  The Company and any Affiliate are authorized to withhold from any Award granted, or any payment relating to an Award, including from a distribution of Stock, taxes due or potentially payable in connection with any transaction involving an Award, and to take such other action as the Committee may deem advisable to enable the Company, the Affiliates and Participants to satisfy the payment of withholding taxes and other tax obligations relating to any Award in such amounts as may be determined by the Committee.  The Committee shall determine, in its sole discretion, the form of payment acceptable for such tax withholding obligations, including the delivery of cash or cash equivalents, Stock (including through delivery of previously owned shares, net settlement, a broker-assisted sale, or other cashless withholding or reduction of the amount of shares otherwise issuable or delivered pursuant to the Award), other property, or any other legal consideration the Committee deems appropriate.  Any determination made by the Committee to allow a Participant who is subject to Rule 16b-3 to pay taxes with shares of Stock through net settlement or previously owned shares shall be approved by either a committee made up of solely two or more Qualified Members or the full Board.  If such tax withholding amounts are satisfied through net settlement or previously owned shares, the maximum number of shares of Stock that may be so withheld or surrendered shall be the number of shares of Stock that have an aggregate Fair Market Value on the date of withholding or surrender equal to the aggregate amount of such tax liabilities determined based on the greatest withholding rates for federal, state, foreign and/or local tax purposes, including payroll taxes, that may be utilized without creating adverse accounting treatment for the Company with respect to such Award, as determined by the Committee.
(b)    Limitation on Rights Conferred under Plan.  Neither the Plan nor any action taken hereunder shall be construed as (i) giving any Eligible Person or Participant the right to continue as an Eligible Person or Participant or in the employ or service of the Company or any Affiliate, (ii) interfering in any way with the right of the Company or any Affiliate to terminate any Eligible Person’s or Participant’s employment or service relationship at any time, (iii) giving an Eligible Person or Participant any claim to be granted any Award under the Plan or to be treated uniformly with other Participants and/or employees and/or other service providers, or
17

(iv) conferring on a Participant any of the rights of a stockholder of the Company unless and until the Participant is duly issued or transferred shares of Stock in accordance with the terms of an Award.
(c)    Governing Law; Submission to Jurisdiction.  All questions arising with respect to the provisions of the Plan and Awards shall be determined by application of the laws of the State of Delaware, without giving effect to any conflict of law provisions thereof, except to the extent Delaware law is preempted by federal law.  The obligation of the Company to sell and deliver Stock hereunder is subject to applicable federal and state laws and to the approval of any governmental authority required in connection with the authorization, issuance, sale, or delivery of such Stock.  With respect to any claim or dispute related to or arising under the Plan, the Company and each Participant who accepts an Award hereby consent to the exclusive jurisdiction, forum and venue of the state and federal courts located in California.
(d)    Severability and Reformation.  If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable law or, if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, person or Award and the remainder of the Plan and any such Award shall remain in full force and effect. If any of the terms or provisions of the Plan or any Award Agreement conflict with the requirements of Rule 16b-3 (as those terms or provisions are applied to Eligible Persons who are subject to Section 16 of the Exchange Act) or Section 422 of the Code (with respect to ISOs), then those conflicting terms or provisions shall be deemed inoperative to the extent they so conflict with the requirements of Rule 16b-3 (unless the Board or the Committee, as appropriate, has expressly determined that the Plan or such Award should not comply with Rule 16b-3) or Section 422 of the Code, in each case, only to the extent Rule 16b-3 and such sections of the Code are applicable.  With respect to ISOs, if the Plan does not contain any provision required to be included herein under Section 422 of the Code, that provision shall be deemed to be incorporated herein with the same force and effect as if that provision had been set out at length herein; provided, further, that, to the extent any Option that is intended to qualify as an ISO cannot so qualify, that Option (to that extent) shall be deemed a Nonstatutory Option for all purposes of the Plan.
(e)    Unfunded Status of Awards; No Trust or Fund Created.  The Plan is intended to constitute an “unfunded” plan for certain incentive awards. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other person.  To the extent that any person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such right shall be no greater than the right of any general unsecured creditor of the Company or such Affiliate.
(f)    Nonexclusivity of the Plan.  The adoption of the Plan shall not be construed as creating any limitations on the power of the Board or a committee thereof to adopt such other incentive arrangements as it may deem desirable.  Nothing contained in the Plan shall be construed to prevent the Company or any Affiliate from taking any corporate action which is deemed by the 
18

Company or such Affiliate to be appropriate or in its best interest, whether or not such action would have an adverse effect on the Plan or any Award made under the Plan. No employee, beneficiary or other person shall have any claim against the Company or any Affiliate as a result of any such action. 
(g)    Fractional Shares.  No fractional shares of Stock shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine in its sole discretion whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional shares of Stock or whether such fractional shares of Stock or any rights thereto shall be cancelled, terminated, or otherwise eliminated with or without consideration.
(h)    Interpretation.  Headings are given to the Sections and subsections of the Plan solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof. Words in the masculine gender shall include the feminine gender, and, where appropriate, the plural shall include the singular and the singular shall include the plural. In the event of any conflict between the terms and conditions of an Award Agreement and the Plan, the provisions of the Plan shall control. The use herein of the word “including” following any general statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as “without limitation”, “but not limited to”, or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter.  References herein to any agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and not prohibited by the Plan.
(i)    Facility of Payment.  Any amounts payable hereunder to any individual under legal disability or who, in the judgment of the Committee, is unable to manage properly his financial affairs, may be paid to the legal representative of such individual, or may be applied for the benefit of such individual in any manner that the Committee may select, and the Company shall be relieved of any further liability for payment of such amounts.
(j)    Conditions to Delivery of Stock.  Nothing herein or in any Award Agreement shall require the Company to issue any shares with respect to any Award if that issuance would, in the opinion of counsel for the Company, constitute a violation of the Securities Act, any other applicable statute or regulation, or the rules of any applicable securities exchange or securities association, as then in effect.  In addition, each Participant who receives an Award under the Plan shall not sell or otherwise dispose of Stock that is acquired upon grant, exercise or vesting of an Award in any manner that would constitute a violation of any applicable federal or state securities laws, the Plan or the rules, regulations or other requirements of the SEC or any stock exchange upon which the Stock is then listed.  At the time of any exercise of an Option or SAR, or at the time of any grant of any other Award, the Company may, as a condition precedent to the exercise of such Option or SAR or settlement of any other Award, require from the Participant (or in the event of his or her death, his or her legal representatives, heirs, legatees, or distributees) such written representations, if any, concerning the holder’s intentions with regard to the retention or disposition of the shares of Stock being acquired pursuant to the Award and such 
19

written covenants and agreements, if any, as to the manner of disposal of such shares as, in the opinion of counsel to the Company, may be necessary to ensure that any disposition by that holder (or in the event of the holder’s death, his or her legal representatives, heirs, legatees, or distributees) will not involve a violation of the Securities Act, any other applicable state or federal statute or regulation, or any rule of any applicable securities exchange or securities association, as then in effect.  Stock or other securities shall not be delivered pursuant to any Award until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award Agreement (including any Exercise Price, grant price, or tax withholding) is received by the Company.
(k)    Section 409A of the Code.  It is the general intention, but not the obligation, of the Committee to design Awards to comply with or to be exempt from the Nonqualified Deferred Compensation Rules, and Awards will be operated and construed accordingly. Neither this Section 9(k) nor any other provision of the Plan is or contains a representation to any Participant regarding the tax consequences of the grant, vesting, exercise, settlement, or sale of any Award (or the Stock underlying such Award) granted hereunder, and should not be interpreted as such.  In no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Participant on account of non-compliance with the Nonqualified Deferred Compensation Rules.  Notwithstanding any provision in the Plan or an Award Agreement to the contrary, in the event that a “specified employee” (as defined under the Nonqualified Deferred Compensation Rules) becomes entitled to a payment under an Award that would be subject to additional taxes and interest under the Nonqualified Deferred Compensation Rules if the Participant’s receipt of such payment or benefits is not delayed until the earlier of (i) the date of the Participant’s death, or (ii) the date that is six months after the Participant’s “separation from service,” as defined under the Nonqualified Deferred Compensation Rules (such date, the “Section 409A Payment Date”), then such payment or benefit shall not be provided to the Participant until the Section 409A Payment Date.  Any amounts subject to the preceding sentence that would otherwise be payable prior to the Section 409A Payment Date will be aggregated and paid in a lump sum without interest on the Section 409A Payment Date.  The applicable provisions of the Nonqualified Deferred Compensation Rules are hereby incorporated by reference and shall control over any Plan or Award Agreement provision in conflict therewith.  
(l)    Clawback.  The Plan and all Awards granted hereunder are subject to any written clawback policies that the Company, with the approval of the Board or an authorized committee thereof, may adopt either prior to or following the Effective Date, including any policy adopted to conform to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and rules promulgated thereunder by the SEC and that the Company determines should apply to Awards.  Any such policy may subject a Participant’s Awards and amounts paid or realized with respect to Awards to reduction, cancelation, forfeiture or recoupment if certain specified events or wrongful conduct occur, including an accounting restatement due to the Company’s material noncompliance with financial reporting regulations or other events or wrongful conduct specified in any such clawback policy.
(m)    Status under ERISA.  The Plan shall not constitute an “employee benefit plan” for purposes of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended.
20

(n)    Plan Effective Date and Term.  The Plan was adopted by the Board to be effective on the Effective Date. No Awards may be granted under the Plan after October 12, 2030. However, any Award granted prior to such termination (or any earlier termination pursuant to Section 10), and the authority of the Board or Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive any conditions or rights under such Award in accordance with the terms of the Plan, shall extend beyond such termination until the final disposition of such Award.
10.    Amendments to the Plan and Awards.  The Committee may amend, alter, suspend, discontinue or terminate any Award or Award Agreement, the Plan or the Committee’s authority to grant Awards without the consent of stockholders or Participants, except that any amendment or alteration to the Plan, including any increase in any share limitation, shall be subject to the approval of the Company’s stockholders not later than the annual meeting next following such Committee action if such stockholder approval is required by any federal or state law or regulation or the rules of any stock exchange or automated quotation system on which the Stock may then be listed or quoted, and the Committee may otherwise, in its discretion, determine to submit other changes to the Plan to stockholders for approval; provided, that, without the consent of an affected Participant, no such Committee action may materially and adversely affect the rights of such Participant under any previously granted and outstanding Award.  For purposes of clarity, any adjustments made to Awards pursuant to Section 8 will be deemed not to materially and adversely affect the rights of any Participant under any previously granted and outstanding Award and therefore may be made without the consent of affected Participants.

21Exhibit 4.1

 

KIROMIC,
INC.

 

2017
EQUITY INCENTIVE PLAN

 

As Adopted on January 20, 2017

 

1.                       PURPOSE. The purpose of this Plan is to provide incentives to attract, retain and motivate eligible persons
whose present and potential contributions are important to the success of the Company, its Parent and Subsidiaries by offering
eligible persons an opportunity to participate in the Company’s future performance through the grant of Awards covering
Shares. Capitalized terms not defined in the text are defined in Section 14 hereof. Although this Plan is intended to be a written
compensatory benefit plan within the meaning of Rule 701, grants may be made pursuant to this Plan that do not qualify for exemption
under Rule 701 or Section 25102(o). Any requirement of this Plan that is required in law only because of Section 25102(o) need
not apply if the Committee so provides.

 

2.                       SHARES SUBJECT TO THE PLAN.

 

2.1    Number
of Shares Available. Subject to Sections 2.2 and 11 hereof, the total number of Shares reserved and available for
grant and issuance pursuant to this Plan will be Twenty Million (20,000,000) Shares. Subject to Sections 2.2 and 11 hereof,
Shares subject to Awards that are cancelled, forfeited, settled in cash, used to pay withholding obligations or pay the
exercise price of an Option or that expire by their terms at any time will again be available for grant and issuance in
connection with other Awards. In the event that Shares previously issued under the Plan are reacquired by the Company
pursuant to a forfeiture provision, right of first refusal, or repurchase by the Company, such Shares shall be added to the
number of Shares then available for issuance under the Plan. At all times the Company will reserve and keep available a
sufficient number of Shares as will be required to satisfy the requirements of all Awards granted and outstanding under this
Plan. In no event shall the total number of Shares issued (counting each reissuance of a Share that was previously issued and
then forfeited or repurchased by the Company as a separate issuance) under the Plan upon exercise of ISOs exceed Forty
Million (40,000,000) Shares (adjusted in proportion to any adjustments under Section 2.2 hereof) over the term of the Plan
(the “ISO Limit”). Subject to Sections 2.2 and 11 hereof, in the
event that the number of Shares reserved for issuance under the Plan is increased, the ISO Limit shall be automatically
increased by such number of Shares such that the ISO Limit equals (a) two (2) multiplied by (b) the number of Shares reserved for issuance under the Plan.

 

2.2
   Adjustment of Shares. In the event that the number of outstanding shares of the Company’s
Common Stock is changed by a stock dividend, recapitalization, stock split, reverse stock split, subdivision, combination, reclassification
or other change in the capital structure of the Company affecting Shares without consideration, then in order to prevent diminution
or enlargement of the benefits or potential benefits intended to be made available under the Plan (a) the number of Shares reserved
for issuance under this Plan, (b) the Exercise Prices of and number of Shares subject to outstanding Options and SARs, and (c)
the Purchase Prices of and/or number of Shares subject to other outstanding Awards will (to the extent appropriate) be proportionately
adjusted, subject to any required action by the Board or the stockholders of the Company and compliance with applicable securities
laws; provided, however, that fractions of a Share will not be issued but will either be paid in cash
at the Fair Market Value of such fraction of a Share or will be rounded down to the nearest whole Share, as determined by the
Committee.

 

    1 

     

    

 

3.                       PLAN FOR BENEFIT OF SERVICE PROVIDERS.

 

3.1    Eligibility.
The Committee will have the authority to select persons to receive Awards. ISOs (as defined in Section 4 hereof) may be
granted only to employees (including officers and directors who are also employees) of the Company or of a Parent or
Subsidiary of the Company. NQSOs (as defined in Section 4 hereof) and all other types of Awards may be granted to employees,
officers, directors and consultants of the Company or any Parent or Subsidiary of the Company; provided such
consultants render bona fide services not in connection with the offer and sale of securities in a capital- raising
transaction when Rule 701 is to apply to the Award granted for such services. A person may be granted more than one Award
under this Plan.

 

3.2    No
Obligation to Employ. Nothing in this Plan or any Award granted under this Plan will confer or be deemed to confer on
any Participant any right to continue in the employ of, or to continue any other relationship with, the Company or any Parent
or Subsidiary or limit in any way the right of the Company or any Parent or Subsidiary to terminate Participant’s
employment or other relationship at any time, with or without Cause.

 

4.                          OPTIONS.
The Committee may grant Options to eligible persons described in Section 3 hereof and will determine whether such Options
will be Incentive Stock Options within the meaning of the Code (“ISOs”) or Nonqualified Stock Options
(“NQSOs”), the number of Shares subject to the Option, the Exercise Price of the Option, the period
during which the Option may be exercised, and all other terms and conditions of the Option, subject to the following.

 

4.1    Form
of Option Grant. Each Option granted under this Plan will be evidenced by an Award Agreement which will expressly
identify the Option as an ISO or an NQSO (“Stock Option Agreement”), and will be in such form and
contain such provisions (which need not be the same for each Participant) as the Committee may from time to time approve, and
which will comply with and be subject to the terms and conditions of this Plan.

 

4.2    Date
of Grant. The date of grant of an Option will be the date on which the Committee makes the determination to grant
such Option, unless a later date is otherwise specified by the Committee. The Stock Option Agreement and a copy of this Plan
will be delivered to the Participant within a reasonable time after the granting of the Option.

 

4.3    Exercise
Period. Options may be exercisable within the time or upon the events determined by the Committee in the Award
Agreement and may be awarded as immediately exercisable but subject to repurchase pursuant to Section 10 hereof or may be
exercisable within the times or upon the events determined by the Committee as set forth in the Stock Option Agreement
governing such Option; provided, however, that (a) no Option will be exercisable after the
expiration of ten (10) years from the date the Option is granted; and (b) no ISO granted to a person who directly or by
attribution owns more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of
any Parent or Subsidiary (“Ten Percent Stockholder”) will be exercisable after the expiration of
five (5) years from the date the ISO is granted. The Committee also may provide for Options to become exercisable at one time
or from time to time, periodically or otherwise, in such number of Shares or percentage of Shares as the Committee
determines.

 

4.4
    Exercise Price. The Exercise Price of an Option will be determined by the Committee when the Option
is granted and shall not be less than the Fair Market Value per Share unless expressly determined in writing by the Committee
on the Option’s date of grant; provided that the Exercise Price of an ISO granted to a Ten Percent Stockholder
will not be less than one hundred ten percent (110%) of the Fair Market Value of the Shares on the date of grant. Payment for
the Shares purchased must be made in accordance with Section 8 hereof.

 

    2 

     

    

 

4.5    Method of Exercise. Options may be exercised only by delivery to the Company of a
written stock option exercise agreement (the “Exercise Agreement”) in a form approved by the
Committee (which need not be the same for each Participant). The Exercise Agreement will state (a) the
number of Shares being purchased, (b) the restrictions imposed on the Shares purchased under such Exercise Agreement, if any,
and (c) such representations and agreements regarding Participant’s investment intent and access to information and
other matters, if any, as may be required or desirable by the Company to comply with applicable securities laws. Each
Participant’s Exercise Agreement may be modified by (i) agreement of Participant and the Company or (ii) substitution
by the Company, upon becoming a public company, in order to add the payment terms set forth in Section 8.1 that apply to a
public company and such other terms as shall be necessary or advisable in order to exercise a public company option. Upon
exercise of an Option, Participant shall execute and deliver to the Company the Exercise Agreement then in effect, together
with payment in full of the Exercise Price for the number of Shares being purchased and payment of any applicable taxes. No
adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued,
except as provided in Section 2.2 of the Plan. Exercising an Option in any manner will decrease the number of Shares
thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

 

4.6    Termination.
Subject to earlier termination pursuant to Sections 11 and 13.3 hereof and notwithstanding the exercise periods set forth in
the Stock Option Agreement, exercise of an Option will always be subject to the following terms and conditions.

 

          4.6.1         
Other than Death or Disability or for Cause. If the Participant is Terminated for any reason other than death, Disability
or for Cause, then the Participant may exercise such Participant’s Options only to the extent that such Options are exercisable
as to Vested Shares upon the Termination Date or as otherwise determined by the Committee. Such Options must be exercised by the
Participant, if at all, as to all or some of the Vested Shares calculated as of the Termination Date or such other date determined
by the Committee, within three (3) months after the Termination Date (or within such shorter time period, not less than thirty
(30) days, or within such longer time period after the Termination Date as may be determined by the Committee, with any exercise
beyond three (3) months after the date Participant ceases to be an employee deemed to be an NQSO) but in any event, no later than
the expiration date of the Options.

 

          4.6.2          Death
or Disability. If the Participant is Terminated because of Participant’s death or Disability (or the Participant
dies within three (3) months after a Termination other than for Cause), then Participant’s Options may be exercised
only to the extent that such Options are exercisable as to Vested Shares by Participant on the Termination Date or as
otherwise determined by the Committee. Such options must be exercised by Participant (or Participant’s legal
representative or authorized assignee), if at all, as to all or some of the Vested Shares calculated as of the Termination
Date or such other date determined by the Committee, within twelve (12) months after the Termination Date (or within such
shorter time period, not less than six (6) months, or within such longer time period, after the Termination Date as may be
determined by the Committee, with any exercise beyond (a) three (3) months after the date Participant ceases to be an
employee when the Termination is for any reason other than the Participant’s death or disability, within the meaning of
Section 22(e)(3) of the Code, or (b) twelve
(12) months after the date Participant ceases to be an employee when the Termination is for Participant’s disability,
within the meaning of Section 22(e)(3) of the Code, deemed to be an NQSO) but in any event no later than the expiration date
of the Options.

 

    3 

     

    

 

          4.6.3         
For Cause. If the Participant is terminated for Cause, the Participant may exercise such Participant’s Options,
but not to an extent greater than such Options are exercisable as to Vested Shares upon the Termination Date and Participant’s
Options shall expire on such Participant’s Termination Date, or at such later time and on such conditions as are determined
by the Committee.

 

4.7    Limitations
on Exercise. The Committee may specify a reasonable minimum number of Shares that may be purchased on any exercise of
an Option, provided that such minimum number will not prevent Participant from exercising the Option for the
full number of Shares for which it is then exercisable.

 

4.8    Limitations
on ISOs. The aggregate Fair Market Value (determined as of the date of grant) of Shares with respect to which ISOs
are exercisable for the first time by a Participant during any calendar year (under this Plan or under any other incentive
stock option plan of the Company or any Parent or Subsidiary of the Company) will not exceed One Hundred Thousand Dollars
($100,000). If the Fair Market Value of Shares on the date of grant with respect to which ISOs are exercisable for the first
time by a Participant during any calendar year exceeds One Hundred Thousand Dollars ($100,000), then the Options for the
first One Hundred Thousand Dollars ($100,000) worth of Shares to become exercisable in such calendar year will be ISOs and
the Options for the amount in excess of One Hundred Thousand Dollars ($100,000) that become exercisable in that calendar year
will be NQSOs. In the event that the Code or the regulations promulgated thereunder are amended after the Effective Date (as
defined in Section 13.1 hereof) to provide for a different limit on the Fair Market Value of Shares permitted to be subject
to ISOs, then such different limit will be automatically incorporated herein and will apply to any Options granted after the
effective date of such amendment.

 

4.9    Modification,
Extension or Renewal. The Committee may modify, extend or renew outstanding Options and authorize the grant of new
Options in substitution therefor, provided that any such action may not, without the written consent of a
Participant, impair any of such Participant’s rights under any Option previously granted. Any outstanding ISO that is
modified, extended, renewed or otherwise altered will be treated in accordance with Section 424(h) of the Code. Subject to
Section 4.10 hereof, the Committee may reduce the Exercise Price of outstanding Options without the consent of Participants
by a written notice to them; provided, however, that the Exercise Price may not be reduced below
the minimum Exercise Price that would be permitted under Section 4.4 hereof for Options granted on the date the action is
taken to reduce the Exercise Price.

 

4.10  No Disqualification. Notwithstanding any other provision in this Plan, no term of this Plan relating
to ISOs will be interpreted, amended or altered, nor will any discretion or authority granted under this Plan be exercised, so
as to disqualify this Plan under Section 422 of the Code or, without the consent of the Participant, to disqualify any Participant’s
ISO under Section 422 of the Code.

 

5.                          RESTRICTED STOCK. A Restricted Stock Award is an offer by the Company to sell to an eligible person Shares
that are subject to certain specified restrictions. The Committee will determine to whom an offer will be made, the number of Shares
the person may purchase, the Purchase Price, the restrictions to which the Shares will be subject, and all other terms and conditions
of the Restricted Stock Award, subject to the following terms and conditions.

 

5.1    Form
of Restricted Stock Award. All purchases under a Restricted Stock Award made pursuant to this Plan will be evidenced
by an Award Agreement (“Restricted Stock Purchase Agreement”) that will be in such form (which need
not be the same for each Participant) as the Committee will from time to time approve, and will comply with and be subject to
the terms and conditions of this Plan. The Restricted Stock Award will be accepted by the Participant’s execution and
delivery of the Restricted Stock Purchase Agreement and full payment for the Shares to the Company within thirty (30) days
from the date the Restricted Stock Purchase Agreement is delivered to the person. If such person does not execute and deliver
the Restricted Stock Purchase Agreement along with full payment for the Shares to the Company within such thirty (30) days,
then the offer will terminate, unless otherwise determined by the Committee.

 

    4 

     

    

 

5.2    Purchase Price. The Purchase Price of Shares sold pursuant to a Restricted Stock Award will be determined by
the Committee on the date the Restricted Stock Award is granted or at the time the purchase is consummated. Payment of the Purchase
Price must be made in accordance with Section 8 hereof.

 

5.3    Dividends
and Other Distributions. Participants holding Restricted Stock will be entitled to receive all dividends and other
distributions paid with respect to such Shares, unless the Committee provides otherwise at the time of award. If any such
dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability and
forfeitability as the Shares of Restricted Stock with respect to which they were paid.

 

5.4    Restrictions.
Restricted Stock Awards may be subject to the restrictions set forth in Sections 9 and 10 hereof or, with respect to a
Restricted Stock Award to which Section 25102(o) is to apply, such other restrictions not inconsistent with Section
25102(o).

 

6.                       RESTRICTED
STOCK UNITS.

 

6.1    Awards
of Restricted Stock Units. A Restricted Stock Unit (“RSU”) is an Award covering a number of
Shares that may be settled in cash, or by issuance of those Shares at a date in the future. No Purchase Price shall apply to
an RSU settled in Shares. All grants of Restricted Stock Units will be evidenced by an Award Agreement that will be in such
form (which need not be the same for each Participant) as the Committee will from time to time approve, and will comply with
and be subject to the terms and conditions of this Plan. No RSU will have a term longer than ten (10) years from the date the
RSU is granted.

 

6.2    Form
and Timing of Settlement. To the extent permissible under applicable law, the Committee may permit a Participant to
defer payment under a RSU to a date or dates after the RSU is earned, provided that the terms of the RSU and
any deferral satisfy the requirements of Section 409A of the Code (or any successor) and any regulations or rulings
promulgated thereunder. Payment may be made in the form of cash or whole Shares or a combination thereof, all as the
Committee determines.

 

6.3
  Dividend Equivalent Payments. The Board may permit Participants holding RSUs to receive dividend
equivalent payments on outstanding RSUs if and when dividends are paid to stockholders on Shares. In the discretion of the Board,
such dividend equivalent payments may be paid in cash or Shares and they may either be paid at the same time as dividend payments
are made to stockholders or delayed until when Shares are issued pursuant to the RSU grants and may be subject to the same vesting
requirements as the RSUs. If the Board permits dividend equivalent payments to be made on RSUs, the terms and conditions for such
payments will be set forth in the Award Agreement.

 

7.                       STOCK
APPRECIATION RIGHTS.

 

7.1
   Awards of SARs. Stock Appreciation Rights (“SARs”) may be settled in cash,
or Shares (which may consist of Restricted Stock or RSUs), having a value equal to the value determined by multiplying the difference
between the Fair Market Value on the date of exercise over the Exercise Price and the number of Shares with respect to which the
SAR is being settled. All grants of SARs made pursuant to this Plan will be evidenced by an Award Agreement that will be in such
form (which need not be the same for each Participant) as the Committee will from time to time approve, and will comply with and
be subject to the terms and conditions of this Plan.

 

    5 

     

    

 

7.2    Exercise Period and Expiration Date. A SAR will be exercisable within the times or upon the occurrence
of events determined by the Committee and set forth in the Award Agreement governing such SAR. The Award Agreement shall set forth
the Expiration Date; provided that no SAR will be exercisable after the expiration of ten years from the date the
SAR is granted.

 

7.3    Exercise
Price. The Committee will determine the Exercise Price of the SAR when the SAR is granted, and which may not be less
than the Fair Market Value on the date of grant and may be settled in cash or in Shares.

 

7.4
   Termination. Subject to earlier termination pursuant to Sections 11 and 13.1 hereof and notwithstanding
the exercise periods set forth in the Award Agreement, exercise of SARs will always be subject to the following terms and conditions.

 

          7.4.1         
Other than Death or Disability or for Cause. If the Participant is Terminated for any reason other than death, Disability
or for Cause, then the Participant may exercise such Participant’s SARs only to the extent that such SARs are exercisable
as to Vested Shares upon the Termination Date or as otherwise determined by the Committee. SARs must be exercised by the Participant,
if at all, as to all or some of the Vested Shares calculated as of the Termination Date or such other date determined by the Committee,
within three (3) months after the Termination Date (or within such shorter time period, not less than thirty (30) days, or within
such longer time period after the Termination Date as may be determined by the Committee) but in any event, no later than the expiration
date of the SARs.

 

          7.4.2         
Death or Disability. If the Participant is Terminated because of Participant’s death or Disability (or the
Participant dies within three (3) months after a Termination other than for Cause), then Participant’s SARs may be exercised
only to the extent that such SARs are exercisable as to Vested Shares by Participant on the Termination Date or as otherwise determined
by the Committee. Such SARs must be exercised by Participant (or Participant’s legal representative or authorized assignee),
if at all, as to all or some of the Vested Shares calculated as of the Termination Date or such other date determined by the Committee,
within twelve (12) months after the Termination Date (or within such shorter time period, not less than six (6) months, or within
such longer time period after the Termination Date as may be determined by the Committee) but in any event no later than the expiration
date of the SARs.

 

          7.4.3         
For Cause. If the Participant is terminated for Cause, the Participant may exercise such Participant’s SARs,
but not to an extent greater than such SARs are exercisable as to Vested Shares upon the Termination Date and Participant’s
SARs shall expire on such Participant’s Termination Date, or at such later time and on such conditions as are determined
by the Committee.

 

8.                PAYMENT
FOR PURCHASES AND EXERCISES.

 

8.1    Payment
in General. Payment for Shares acquired pursuant to this Plan may be made in cash (by check) or, where expressly
approved for the Participant by the Committee and where permitted by law:

 

		(a)	by cancellation of indebtedness of the Company owed to the Participant;

 

    6 

     

    

 

(b)         by
surrender of shares of the Company that are clear of all liens, claims, encumbrances or security interests and: (i) for which
the Company has received “full payment of the purchase price” within the meaning of SEC Rule 144 (and, if such shares
were purchased from the Company by use of a promissory note, such note has been fully paid with respect to such shares) or

(ii) that were obtained by Participant
in the public market;

 

(c)          by
tender of a full recourse promissory note having such terms as may be approved by the Committee and bearing interest at a rate
sufficient to avoid imputation of income under Sections 483 and 1274 of the Code; provided, however,
that Participants who are not employees or directors of the Company will not be entitled to purchase Shares with a promissory
note unless the note is adequately secured by collateral other than the Shares; provided, further,
that the portion of the Exercise Price or Purchase Price, as the case may be, equal to the par value (if any) of the Shares must
be paid in cash or other legal consideration permitted by the laws under which the Company is then incorporated or organized;

 

(d)          by waiver of compensation due or accrued to the Participant from the Company for services rendered;

 

(e)          by
participating in a formal cashless exercise program implemented by the Committee in connection with the Plan;

 

(f)          subject to compliance with applicable law, provided that a public market for the Company’s Common Stock exists, by
exercising through a “same day sale” commitment from the Participant and a broker-dealer whereby the Participant irrevocably
elects to exercise the Award and to sell a portion of the Shares so purchased sufficient to pay the total Exercise Price or Purchase
Price, and whereby the broker-dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price or Purchase
Price directly to the Company; or

 

(g)          by any combination of the foregoing or any other method of payment approved by the Committee.

 

8.2
         Withholding Taxes.

 

               8.2.1    Withholding Generally. Whenever Shares are to be issued in satisfaction of Awards granted under this Plan, the Company
may require the Participant to remit to the Company an amount sufficient to satisfy applicable tax withholding requirements prior
to the delivery of any certificate or certificates for such Shares. Whenever, under this Plan, payments in satisfaction of Awards
are to be made in cash by the Company, such payment will be net of an amount sufficient to satisfy applicable tax withholding requirements.

 

               8.2.2    Stock
Withholding. When, under applicable tax laws, a Participant incurs tax liability in connection with the exercise or
vesting of any Award that is subject to tax withholding and the Participant is obligated to pay the Company the amount
required to be withheld, the Committee may in its sole discretion allow the Participant to satisfy the minimum tax
withholding obligation by electing to have the Company withhold from the Shares to be issued up to the minimum number of
Shares having a Fair Market Value on the date that the amount of tax to be withheld is to be determined that is not more than
the minimum amount to be withheld; or to arrange a mandatory “sell to cover” on Participant’s behalf
(without further authorization) but in no event will the Company withhold Shares or “sell to cover” if such
withholding would result in adverse accounting consequences to the Company. Any elections to have Shares withheld or sold for
this purpose will be made in accordance with the requirements established by the Committee for such elections and be in
writing in a form acceptable to the Committee.

 

    7 

     

    

 

9.                       RESTRICTIONS ON AWARDS.

 

9.1    Transferability. Except
as permitted by the Committee, Awards granted under this Plan, and any interest therein, will not be transferable or
assignable by Participant, other than by will or by the laws of descent and distribution, and, with respect to NQSOs, by
instrument to an inter vivos or testamentary trust in which the NQSOs are to be passed to beneficiaries upon the death of the
trustor (settlor), or by gift to “family member” as that term is defined in Rule 701, and may not be made subject
to execution, attachment or similar process. For the avoidance of doubt, the prohibition against assignment and transfer
applies to a stock option and, prior to exercise, the shares to be issued on exercise of a stock option, and pursuant to the
foregoing sentence shall be understood to include, without limitation, a prohibition against any pledge, hypothecation, or
other transfer, including any short position, any “put equivalent position” or any “call equivalent
position” (in each case, as defined in Rule 16a-1 promulgated under the Exchange Act). Unless an Award is transferred
pursuant to the terms of this Section, during the lifetime of the Participant an Award will be exercisable only by the
Participant or Participant’s legal representative and any elections with respect to an Award may be made only by the
Participant or Participant’s legal representative. The terms of an Option shall be binding upon the executor,
administrator, successors and assigns of the Participant who is a party thereto.

 

9.2    Securities
Law and Other Regulatory Compliance. Although this Plan is intended to be a written compensatory benefit plan within
the meaning of Rule 701 promulgated under the Securities Act, grants may be made pursuant to this Plan that do not qualify
for exemption under Rule 701 or Section 25102(o). Any requirement of this Plan which is required in law only because of
Section 25102(o) need not apply with respect to a particular Award to which Section 25102(o) will not apply. An Award will
not be effective unless such Award is in compliance with all applicable federal and state securities laws, rules and
regulations of any governmental body, and the requirements of any stock exchange or automated quotation system upon which the
Shares may then be listed or quoted, as they are in effect on the date of grant of the Award and also on the date of exercise
or other issuance. Notwithstanding any other provision in this Plan, the Company will have no obligation to issue or deliver
certificates for Shares under this Plan prior to (a) obtaining any approvals from governmental agencies that the Company
determines are necessary or advisable, and/or (b) compliance with any exemption, completion of any registration or other
qualification of such Shares under any state or federal law or ruling of any governmental body that the Company determines to
be necessary or advisable. The Company will be under no obligation to register the Shares with the SEC or to effect
compliance with the exemption, registration, qualification or listing requirements of any state securities laws, stock
exchange or automated quotation system, and the Company will have no liability for any inability or failure so do.

 

9.3    Exchange
and Buyout of Awards. The Committee may, at any time or from time to time, authorize the Company, with the consent of
the respective Participants, to issue new Awards in exchange for the surrender and cancellation of any or all outstanding
Awards. Without prior stockholder approval the Committee may reprice Options or SARs (and where such repricing is a reduction
in the Exercise Price of outstanding Options or SARs, the consent of the affected Participants is not required provided
written notice is provided to them). The Committee may at any time buy from a Participant an Award previously granted with
payment in cash, Shares (including Restricted Stock) or other consideration, based on such terms and conditions as the
Committee and the Participant may agree.

 

    8 

     

    

 

 

10.         RESTRICTIONS ON SHARES.

 

10.1           
Privileges of Stock Ownership. No Participant will have any of the rights of a stockholder with respect
to any Shares until such Shares are issued to the Participant. After Shares are issued to the Participant, the Participant will
be a stockholder and have all the rights of a stockholder with respect to such Shares, including the right to vote and receive
all dividends or other distributions made or paid with respect to such Shares; provided, that if such Shares are
Restricted Stock, then any new, additional or different securities the Participant may become entitled to receive with respect
to such Shares by virtue of a stock dividend, stock split or any other change in the corporate or capital structure of the Company
will be subject to the same restrictions as the Restricted Stock. The Participant will have no right to retain such stock dividends
or stock distributions with respect to Unvested Shares that are repurchased as described in this Section 10.

 

10.2           
Rights of First Refusal and Repurchase. At the discretion of the Committee, the Company may reserve to
itself and/or its assignee(s) in the Award Agreement (a) a right of first refusal to purchase all Shares that a Participant (or
a subsequent transferee) may propose to transfer to a third party, provided that such right of first refusal terminates
upon the Company’s initial public offering of Common Stock pursuant to an effective registration statement filed under the
Securities Act and (b) a right to repurchase Unvested Shares held by a Participant for cash and/or cancellation of purchase money
indebtedness owed to the Company by the Participant following such Participant’s Termination at any time.

 

10.3           
Escrow; Pledge of Shares. To enforce any restrictions on a Participant’s Shares, the Committee may
require the Participant to deposit all certificates representing Shares, together with stock powers or other instruments of transfer
approved by the Committee, appropriately endorsed in blank, with the Company or an agent designated by the Company to hold in escrow
until such restrictions have lapsed or terminated. The Committee may cause a legend or legends referencing such restrictions to
be placed on the certificate. Any Participant who is permitted to execute a promissory note as partial or full consideration for
the purchase of Shares under this Plan will be required to pledge and deposit with the Company all or part of the Shares so purchased
as collateral to secure the payment of Participant’s obligation to the Company under the promissory note; provided,
however, that the Committee may require or accept other or additional forms of collateral to secure the payment of
such obligation and, in any event, the Company will have full recourse against the Participant under the promissory note notwithstanding
any pledge of the Participant’s Shares or other collateral. In connection with any pledge of the Shares, Participant will
be required to execute and deliver a written pledge agreement in such form as the Committee will from time to time approve. The
Shares purchased with the promissory note may be released from the pledge on a pro rata basis as the promissory note is paid.

 

10.4          
Securities Law Restrictions. All certificates for Shares or other securities delivered under this Plan
will be subject to such stock transfer orders, legends and other restrictions as the Committee may deem necessary or advisable,
including restrictions under any applicable federal, state or foreign securities law, or any rules, regulations and other requirements
of the SEC or any stock exchange or automated quotation system upon which the Shares may be listed or quoted.

 

11.         CORPORATE TRANSACTIONS.

 

11.1           Acquisitions
or Other Combinations. In the event that the Company is subject to an Acquisition or Other Combination, outstanding
Awards acquired under the Plan shall be subject to the agreement evidencing the Acquisition or Other Combination, which need
not treat all outstanding Awards in an identical manner. Such agreement, without the Participant’s consent, shall
provide for one or more of the following with respect to all outstanding Awards as of the effective date of such Acquisition
or Other Combination:

 

    9

     

    

 

(a)             The continuation of such outstanding Awards by the Company (if the Company is the successor entity).

 

(b)             The
assumption of outstanding Awards by the successor or acquiring entity (if any) in such Acquisition or Other Combination (or by
any of its Parents, if any), which assumption, will be binding on all Participants; provided that the exercise price and the number
and nature of shares issuable upon exercise of any such option or stock appreciation right, or any award that is subject to Section
409A of the Code, will be adjusted appropriately pursuant to Section 424(a) and Section 409A of the Code. For the purposes of
this Section 11, an Award will be considered assumed if, following the Acquisition or Other Combination, the Award confers the
right to purchase or receive, for each Share subject to the Award immediately prior to the Acquisition or Other Combination, the
consideration (whether stock, cash, or other securities or property) received in the Acquisition or Other Combination by holders
of Shares for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration,
the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration
received in the Acquisition or Other Combination is not solely common stock of the successor corporation or its Parent, the Committee
may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of an Option
or Stock Appreciation Right or upon the payout of a Restricted Stock Unit, for each Share subject to such Award, to be solely
common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by
holders of Common Stock in the Acquisition or Other Combination.

 

(c)             The
substitution by the successor or acquiring entity in such Acquisition or Other Combination (or by any of its Parents, if any)
of equivalent awards with substantially the same terms for such outstanding Awards (except that the exercise price and the number
and nature of shares issuable upon exercise of any such option or stock appreciation right, or any award that is subject to Section
409A of the Code, will be adjusted appropriately pursuant to Section 424(a) and Section 409A of the Code).

 

(d)             The
full or partial exercisability or vesting and accelerated expiration of outstanding Awards.

 

(e)             The settlement of the full value of such outstanding Award (whether or not then vested or exercisable) in cash, cash equivalents,
or securities of the successor entity (or its Parent, if any) with a Fair Market Value equal to the required amount, followed by
the cancellation of such Awards; provided however, that such Award may be cancelled without consideration if such Award has no
value, as determined by the Committee, in its discretion. Subject to Section 409A of the Code, such payment may be made in installments
and may be deferred until the date or dates when the Award would have become exercisable or vested. Such payment may be subject
to vesting based on the Participant’s continued service, provided that without the Participant’s consent, the vesting
schedule shall not be less favorable to the Participant than the schedule under which the Award would have become vested or exercisable.
For purposes of this Section 11.1(e), the Fair Market Value of any security shall be determined without regard to any vesting conditions
that may apply to such security.

 

(f)              The
cancellation of outstanding Awards in exchange for no consideration.

 

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Immediately
following an Acquisition or Other Combination, outstanding Awards shall terminate and cease to be outstanding, except to the extent
such Awards, have been continued, assumed or substituted, as described in Sections 11.1(a), (b) and/or (c).

 

11.2      Assumption of Awards by the Company. The Company, from time to time, also may substitute or assume outstanding
awards granted by another entity, whether in connection with an acquisition of such other entity or otherwise, by either (a) granting
an Award under this Plan in substitution of such other entity’s award or (b) assuming and/or converting such award as if
it had been granted under this Plan if the terms of such assumed award could be applied to an Award granted under this Plan. Such
substitution or assumption will be permissible if the holder of the substituted or assumed award would have been eligible to be
granted an Award under this Plan if the other entity had applied the rules of this Plan to such grant. In the event the Company
assumes an award granted by another entity, the terms and conditions of such award will remain unchanged (except that the exercise
price and the number and nature of shares issuable upon exercise of any such option or stock appreciation right, or any award that
is subject to Section 409A of the Code, will be adjusted appropriately pursuant to Section 424(a) of the Code). In the event the
Company elects to grant a new Option or SAR rather than assuming an existing option or stock appreciation right, such new Option
or SAR may be granted with a similarly adjusted Exercise Price.

 

12.         ADMINISTRATION.

 

12.1      Committee Authority. This Plan will be administered by the Committee or the Board if no Committee is created
by the Board. Subject to the general purposes, terms and conditions of this Plan, and to the direction of the Board, the Committee
will have full power to implement and carry out this Plan. Without limitation, the Committee will have the authority to:

 

(a)             construe and interpret this Plan, any Award Agreement and any other agreement or document executed pursuant to this Plan;

 

(b)             prescribe, amend, expand, modify and rescind or terminate rules and regulations relating to this Plan;

 

 (c)             approve persons to receive Awards;

 

 (d)             determine the form and terms of Awards;

 

(e)             determine
the number of Shares or other consideration subject to Awards granted under this Plan;

 

(f)             determine the Fair Market Value in good faith and interpret the applicable provisions of this Plan and the definition of
Fair Market Value in connection with circumstances that impact the Fair Market Value, if necessary;

 

(g)             determine whether Awards will be granted singly, in combination with, in tandem with, in replacement of, or as alternatives
to, other Awards under this Plan or awards under any other incentive or compensation plan of the Company or any Parent or Subsidiary
of the Company;

 

 (h)              grant waivers of any conditions of this Plan or any Award;

 

(i)              determine the terms of vesting, exercisability and payment of Awards to be granted pursuant to this Plan;

 

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(j)             
correct any defect, supply any omission, or reconcile any inconsistency in this Plan, any Award, any Award Agreement, any
Exercise Agreement or any Restricted Stock Purchase Agreement;

 

(k)             determine
whether an Award has been earned;

 

(l)              extend
the vesting period beyond a Participant’s Termination Date;

 

(m)            adopt rules and/or procedures (including the adoption of any subplan under this Plan) relating to the operation and administration
of the Plan to accommodate requirements of local law and procedures outside of the United States;

 

(n)             delegate any of the foregoing to a subcommittee consisting of one or more executive officers pursuant to a specific delegation
as may otherwise be permitted by applicable law;

 

(o)            
change the vesting schedule of Awards under the Plan prospectively in the event that the Participant’s service status
changes between full and part time status in accordance with Company policies relating to work schedules and vesting of
awards; and

 

(p)             make all other determinations necessary or advisable in connection with the administration of this Plan.

 

12.2      Committee Composition and Discretion. The Board may delegate full administrative authority over the Plan
and Awards to a Committee consisting of at least one member of the Board (or such greater number as may then be required by applicable
law). Unless in contravention of any express terms of this Plan or Award, any determination made by the Committee with respect
to any Award will be made in its sole discretion either (a) at the time of grant of the Award, or (b) subject to Section 4.9 hereof,
at any later time. Any such determination will be final and binding on the Company and on all persons having an interest in any
Award under this Plan. To the extent permitted by applicable law, the Committee may delegate to one or more officers of the Company
the authority to grant an Award under this Plan, provided that each such officer is a member of the Board.

 

12.3      Nonexclusivity of the Plan. Neither the adoption of this Plan by the Board, the submission of this Plan
to the stockholders of the Company for approval, nor any provision of this Plan will be construed as creating any limitations on
the power of the Board to adopt such additional compensation arrangements as it may deem desirable, including, without limitation,
the granting of stock options and other equity awards otherwise than under this Plan, and such arrangements may be either generally
applicable or applicable only in specific cases.

 

12.4      Governing Law. This Plan and all agreements hereunder shall be governed by and construed in accordance
with the laws of the State of Delaware, without giving effect to that body of laws pertaining to conflict of laws.

 

13.         EFFECTIVENESS, AMENDMENT AND TERMINATION OF THE PLAN.

 

13.1      Adoption
and Stockholder Approval. This Plan will become effective on the date that it is adopted by the Board (the “Effective
Date”). This Plan will be approved by the stockholders of the Company (excluding Shares issued pursuant to this
Plan), consistent with applicable laws, within twelve (12) months before or after the Effective Date. Upon the Effective Date,
the Board may grant Awards pursuant to this Plan; provided, however, that: (a) no Option or SAR may
be exercised prior to initial stockholder approval of this Plan; (b) no Option or SAR granted pursuant to an increase in the number
of Shares approved by the Board shall be exercised prior to the time such increase has been approved by the stockholders of the
Company; (c) in the event that initial stockholder approval is not obtained within the time period provided herein, all Awards
for which only the exemption from California’s securities qualification requirements provided by Section 25102(o) can apply
shall be canceled, any Shares issued pursuant to any such Award shall be canceled and any purchase of such Shares issued hereunder
shall be rescinded; and (d) Awards (to which only the exemption from California’s securities qualification requirements
provided by Section 25102(o) can apply) granted pursuant to an increase in the number of Shares approved by the Board which increase
is not approved by stockholders within the time then required under Section 25102(o) shall be canceled, any Shares issued pursuant
to any such Awards shall be canceled, and any purchase of Shares subject to any such Award shall be rescinded.

 

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13.2      Term of Plan. Unless earlier terminated as provided herein, this Plan will automatically terminate ten
(10) years after the later of (i) the Effective Date, or (ii) the most recent increase in the number of Shares reserved under Section
2 that was approved by stockholders.

 

13.3      Amendment
or Termination of Plan. Subject to Section 4.9 hereof, the Board may at any time (a) terminate or amend this Plan in any
respect, including without limitation amendment of any form of Award Agreement or instrument to be executed pursuant to this Plan
and (b) terminate any and all outstanding Options, SARs or RSUs upon a dissolution or liquidation of the Company, followed by
the payment of creditors and the distribution of any remaining funds to the Company’s stockholders; provided,
however, that the Board will not, without the approval of the stockholders of the Company, amend this Plan in any
manner that requires such stockholder approval pursuant to Section 25102(o) or pursuant to the Code or the regulations promulgated
under the Code as such provisions apply to ISO plans. The termination of the Plan, or any amendment thereof, shall not affect
any Share previously issued or any Award previously granted under the Plan.

 

14.         DEFINITIONS.   For
all purposes of this Plan, the following terms will have the following meanings.

 

“Acquisition,” for purposes
of Section 11, means:

 

(a)            any consolidation or merger in which the Company is a constituent entity or is a party in which the voting stock and other
voting securities of the Company that are outstanding immediately prior to the consummation of such consolidation or merger represent,
or are converted into, securities of the surviving entity of such consolidation or merger (or of any Parent of such surviving entity)
that, immediately after the consummation of such consolidation or merger, together possess less than fifty percent (50%) of the
total voting power of all voting securities of such surviving entity (or of any of its Parents, if any) that are outstanding immediately
after the consummation of such consolidation or merger;

 

(b)            a
sale or other transfer by the holders thereof of outstanding voting stock and/or other voting securities of the Company possessing
more than fifty percent (50%) of the total voting power of all outstanding voting securities of the Company, whether in one transaction
or in a series of related transactions, pursuant to an agreement or agreements to which the Company is a party and that has been
approved by the Board, and pursuant to which such outstanding voting securities are sold or transferred to a single person or
entity, to one or more persons or entities who are Affiliates of each other, or to one or more persons or entities acting in concert;
or

 

    13

     

    

 

(c)            the sale, lease, transfer or other disposition, in a single transaction or series of related transactions, by the Company
and/or any Subsidiary or Subsidiaries of the Company, of all or substantially all the assets of the Company and its Subsidiaries
taken as a whole, (or, if substantially all of the assets of the Company and its Subsidiaries taken as a whole are held by one
or more Subsidiaries, the sale or disposition (whether by consolidation, merger, conversion or otherwise) of such Subsidiaries
of the Company), except where such sale, lease, transfer or other disposition is made to the Company or one or more wholly owned
Subsidiaries of the Company (an “Acquisition by Sale of Assets”).

 

“Affiliate”
of a specified person means a person that directly, or indirectly through one or more intermediaries, controls or is controlled
by, or is under common control with, the person specified (where, for purposes of this definition, the term “control”
(including the terms controlling, controlled by and under common control with)
means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person,
whether through the ownership of voting securities, by contract, or otherwise.

 

“Award”
means any award pursuant to the terms and conditions of this Plan, including any Option, Restricted Stock Unit, Stock Appreciation
Right or Restricted Stock Award.

 

“Award
Agreement” means, with respect to each Award, the signed written or electronic agreement between the Company
and the Participant setting forth the terms and conditions of the Award as approved by the Committee. For purposes of the Plan,
the Award Agreement may be executed via written or electronic means.

 

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

 

“Cause”
means Termination because of (a) Participant’s unauthorized misuse of the Company or a Parent or Subsidiary of the Company’s
trade secrets or proprietary information, (b) Participant’s conviction of or plea of nolo contendere to a felony or a crime
involving moral turpitude, (c) Participant’s committing an act of fraud against the Company or a Parent or Subsidiary of
the Company or (d) Participant’s gross negligence or willful misconduct in the performance of his or her duties that has
had or will have a material adverse effect on the Company or Parent or Subsidiary of the Company’ reputation or business.

 

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

 

“Committee”
means the committee created and appointed by the Board to administer this Plan, or if no committee is created and appointed, the
Board.

“Company”
means Kiromic, Inc., a Delaware corporation, or any successor corporation.

 

“Disability”
means that the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of
not less than 12 months.

 

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

 

“Exercise
Price” means the price per Share at which a holder of an Option may purchase Shares issuable upon exercise of the
Option.

 

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“Fair
Market Value” means, as of any date, the value of a share of the Company’s Common Stock determined as follows:

 

(a)            if
such Common Stock is then publicly traded on a national securities exchange, its closing price on the date of determination on
the principal national securities exchange on which the Common Stock is listed or admitted to trading as reported in The Wall
Street Journal;

 

(b)            if such Common Stock is publicly traded but is not listed or admitted to trading on a national securities exchange, the
average of the closing bid and asked prices on the date of determination as reported by The Wall Street Journal (or, if
not so reported, as otherwise reported by any newspaper or other source as the Committee may determine); or

 

(c)            if none of the foregoing is applicable to the valuation in question, by the Committee in good faith.

 

“Option” means an award
of an option to purchase Shares pursuant to Section 4 of this Plan.

 

“Other
Combination” for purposes of Section 11 means any (a) consolidation or merger in which the Company is a constituent
entity and is not the surviving entity of such consolidation or merger or (b) any conversion of the Company into another form of
entity; provided that such consolidation, merger or conversion does not constitute an Acquisition.

 

“Parent”
of a specified entity means, any entity that, either directly or indirectly, owns or controls such specified entity, where for
this purpose, “control” means the ownership of stock, securities or other interests that possess at least
a majority of the voting power of such specified entity (including indirect ownership or control of such stock, securities or other
interests).

 

“Participant” means a
person who receives an Award under this Plan.

 

“Plan” means this 2017 Equity
Incentive Plan, as amended from time to time.

 

“Purchase
Price” means the price at which a Participant may purchase Restricted Stock pursuant to this Plan.

 

“Restricted Stock” means
Shares purchased pursuant to a Restricted Stock Award under this Plan.

 

“Restricted Stock Award”
means an award of Shares pursuant to Section 5 hereof.

 

“Restricted Stock Unit” or “RSU”
means an award made pursuant to Section 6 hereof.

 

“Rule 701” means Rule 701
et seq. promulgated by the Commission under the Securities Act.

 

“SEC” means the Securities
and Exchange Commission.

 

“Section
25102(o)” means Section 25102(o) of the California Corporations Code.

 

“Securities Act”
means the Securities Act of 1933, as amended.

 

    15

     

    

 

“Shares”
means shares of the Company’s Common Stock, $0.00001 par value per share, reserved for issuance under this Plan, as adjusted
pursuant to Sections 2.2 and 11 hereof, and any successor security.

 

“Stock Appreciation Right”
or “SAR” means an award granted pursuant to Section 7 hereof.

 

“Subsidiary”
means any entity (other than the Company) in an unbroken chain of entities beginning with the Company if each of the entities other
than the last entity in the unbroken chain owns stock or other equity securities representing fifty percent (50%) or more of the
total combined voting power of all classes of stock or other equity securities in one of the other entities in such chain.

 

“Termination”
or “Terminated” means, for purposes of this Plan with respect to a Participant, that the Participant
has for any reason ceased to provide services as an employee, officer, director or consultant to the Company or a Parent or Subsidiary
of the Company. A Participant will not be deemed to have ceased to provide services while the Participant is on a bona fide leave
of absence, if such leave was approved by the Company in writing. In the case of an approved leave of absence, the Committee may
make such provisions respecting crediting of service, including suspension of vesting of the Award (including pursuant to a formal
policy adopted from time to time by the Company) it may deem appropriate, except that in no event may an Option be exercised after
the expiration of the term set forth in the Stock Option Agreement. The Committee will have sole discretion to determine whether
a Participant has ceased to provide services and the effective date on which the Participant ceased to provide services (the “Termination
Date”).

 

“Unvested Shares” means
 “Unvested Shares” as defined in the Award Agreement for an Award.

 

“Vested Shares”
means “Vested Shares” as defined in the Award Agreement.

 

* * * * * * * * * * *

 

    16

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