Document:

Exhibit 10.3

 

AMERICAN SHARED HOSPITAL SERVICES

 

INCENTIVE COMPENSATION PLAN

AS AMENDED AND RESTATED EFFECTIVE APRIL 16, 2015

 

article
One

GENERAL PROVISIONS

 

		I.	PURPOSE OF THE PLAN

 

This Incentive Compensation
Plan is intended to promote the interests of American Shared Hospital Services, a California corporation, by providing eligible
persons in the Corporation’s service with the opportunity to participate in one or more cash or equity incentive compensation
programs designed to encourage them to continue their service relationship with the Corporation.

 

Capitalized terms shall
have the meanings assigned to such terms in the attached Appendix.

 

		II.	STRUCTURE OF THE PLAN

 

A.           The
Plan shall be divided into four separate equity incentive programs:

 

-     the
Discretionary Grant Program under which eligible persons may, at the discretion of the Plan Administrator, be granted options
to purchase shares of Common Stock or stock appreciation rights tied to the value of such Common Stock,

 

-     the
Stock Issuance Program under which eligible persons may, at the discretion of the Plan Administrator, be issued shares of Common
Stock pursuant to restricted stock awards, restricted stock units or other stock-based awards which vest upon the completion of
a designated service period or the attainment of pre-established performance milestones, or such shares of Common Stock may be
issued through direct purchase or as a bonus for services rendered the Corporation (or any Parent or Subsidiary),

 

-      the
Incentive Bonus Program under which eligible persons may, at the discretion of the Plan Administrator, be provided with incentive
bonus opportunities through performance unit awards and special cash incentive programs tied to the attainment of pre-established
performance milestones, and

  

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-    the Automatic Grant Program under which eligible non-employee
Board members will automatically receive grants at designated intervals over their period of continued Board service.

 

B.           The
provisions of Articles One and Six shall apply to all incentive compensation programs under the Plan and shall govern the interests
of all persons under the Plan.

 

		III.	ADMINISTRATION OF THE PLAN

 

A.           The
Compensation Committee shall have sole and exclusive authority to administer the Discretionary Grant, Stock Issuance and Incentive
Bonus Programs with respect to Section 16 Insiders. Administration of the Discretionary Grant, Stock Issuance and Incentive Bonus
Programs with respect to all other persons eligible to participate in those programs may, at the Board’s discretion, be vested
in the Compensation Committee or a Secondary Board Committee, or the Board may retain the power to administer those programs with
respect to all such persons. However, any Awards made to the members of the Compensation Committee other than pursuant to the Automatic
Grant Program must be authorized by a disinterested majority of the Board.

  

B.           Members
of the Compensation Committee or any Secondary Board Committee shall serve for such period of time as the Board may determine and
may be removed by the Board at any time. The Board may also at any time terminate the functions of any Secondary Board Committee
and reassume all powers and authority previously delegated to such committee.

 

C.           Each
Plan Administrator shall, within the scope of its administrative functions under the Plan, have full power and authority (subject
to the provisions of the Plan) to establish such rules and regulations as it may deem appropriate for proper administration of
the Discretionary Grant, Stock Issuance and Incentive Bonus Programs and to make such determinations under, and issue such interpretations
of, the provisions of those programs and any outstanding Awards thereunder as it may deem necessary or advisable. Decisions of
the Plan Administrator within the scope of its administrative functions under the Plan shall be final and binding on all parties
who have an interest in the Discretionary Grant, Stock Issuance and Incentive Bonus Programs under its jurisdiction or any Award
thereunder.

 

D.           Service
as a Plan Administrator by the members of the Compensation Committee or the Secondary Board Committee shall constitute service
as Board members, and the members of each such committee shall accordingly be entitled to full indemnification and reimbursement
as Board members for their service on such committee. No member of the Compensation Committee or the Secondary Board Committee
shall be liable for any act or omission made in good faith with respect to the Plan or any Award made thereunder.

 

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E.           Administration
of the Automatic Grant Program shall be self-executing in accordance with the terms of that program, and no Plan Administrator
shall exercise any discretionary functions with respect to any Award made under that program, except that the Compensation Committee
shall have the express authority to establish from time to time the specific number of shares to be subject to the initial and
annual Awards made to the non-employee Board members under such program.

 

		IV.	ELIGIBILITY

 

A.           The
persons eligible to participate in the Plan are as follows:

 

(i)          Employees,

 

(ii)         non-employee
members of the Board or the board of directors of any Parent or Subsidiary, and

 

(iii)        consultants
and other independent advisors who provide services to the Corporation (or any Parent or Subsidiary).

 

B.           The
Plan Administrator shall have full authority to determine, (i) with respect to Awards made under the Discretionary Grant Program,
which eligible persons are to receive such Awards, the time or times when those Awards are to be made, the number of shares to
be covered by each such Award, the time or times when the Award is to vest and become exercisable, the maximum term for which such
Award is to remain outstanding and the status of a granted option as either an Incentive Option or a Non-Statutory Option, (ii)
with respect to Awards made under the Stock Issuance Program, which eligible persons are to receive such Awards, the time or times
when the Awards are to be made, the number of shares subject to each such Award, the vesting and issuance schedules applicable
to the shares which are the subject of such Award and the cash consideration (if any) payable for those shares, and (iii) with
respect to Awards under the Incentive Bonus Program, which eligible persons are to receive such Awards, the time or times when
the Awards are to be made, the performance objectives for each such Award, the amounts payable at designated levels of attained
performance, any applicable service vesting requirements, the payout schedule for each such Award and the form (cash or shares
of Common Stock) in which the Award is to be settled.

 

C.           The
Plan Administrator shall have the absolute discretion to grant options or stock appreciation rights in accordance with the Discretionary
Grant Program, to effect stock issuances and other stock-based awards in accordance with the Stock Issuance Program and to grant
incentive bonus awards in accordance with the Incentive Bonus Program.

 

D.           The
individuals who shall be eligible to participate in the Automatic Grant Program shall be limited to (i) those individuals who first
become non-employee Board members on or after the Plan Effective Date, whether through appointment by the Board or election by
the Corporation’s shareholders, and (ii) those individuals who continue to serve as non-employee Board members on or after
the Plan Effective Date. A non-employee Board member who has previously been in the employ of the Corporation (or any Parent or
Subsidiary) shall not be eligible to receive an Award under the Automatic Grant Program at the time he or she first becomes a non-employee
Board member, but shall be eligible to receive periodic Awards under the Automatic Grant Program while he or she continues to serve
as a non-employee Board member.

 

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		V.	STOCK SUBJECT TO THE PLAN

 

A.           The
stock issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock, including shares repurchased
by the Corporation on the open market. The number of shares of Common Stock reserved for issuance over the term of the Plan shall
be limited to one million six hundred thirty thousand (1,630,000) shares. Such share reserve is comprised of (i) the initial reserve
of seven hundred fifty thousand (750,000) shares of Common Stock authorized under the Plan and (ii) an increase of an additional
eight hundred eighty thousand (880,000) shares of Common Stock authorized by the Board on March 18, 2010 and approved by the stockholders
at the 2010 Annual Meeting.

 

B.           The
number of shares of Common Stock reserved for award and issuance under this Plan pursuant to Section V.A of this Article One shall
be reduced: (i) on a one-for-one basis for each share of Common Stock subject to an Award made under the Discretionary Grant Program
or subject to a stock option grant made under the Automatic Grant Program, (ii) on a one-for-one basis for each share of Common
Stock issued pursuant to a Full Value Award made under the Stock Issuance, Incentive Bonus and Automatic Grant Programs prior to
March 18, 2010 and (iii) by a fixed ratio of 1.59 shares of Common Stock for each share of Common Stock issued pursuant to a Full
Value Award made under the Stock Issuance, Incentive Bonus and Automatic Grant Programs on or after March 18, 2010.

 

C.           The
Plan serves as the successor to the Predecessor Plans, and no further stock option grants or stock issuances are to be made under
those Predecessor Plans on or after the Plan Effective Date. All options outstanding under the Predecessor Plans on the Plan Effective
Date were transferred to this Plan as part of the initial share reserve hereunder and shall continue in full force and effect in
accordance with their terms, and no provision of this Plan shall be deemed to affect or otherwise modify the rights or obligations
of the holders of those options with respect to their acquisition of shares of Common Stock thereunder. To the extent any options
outstanding under the Predecessor Plans on the Plan Effective Date expire or terminate unexercised, the number of shares of Common
Stock subject to those expired or terminated options at the time of expiration or termination shall be available for one or more
Awards made under this Plan.

 

D.           The
maximum number of shares of Common Stock that may be issued pursuant to Incentive Options granted under Plan shall not exceed one
million six hundred thirty thousand (1,630,000) shares.

 

E.           Each
person participating in the Plan shall be subject the following limitations:

  

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-               for
Awards denominated in terms of shares of Common Stock (whether payable in Common Stock, cash or a combination of both), the maximum
number of shares of Common Stock for which such Awards may be made to such person in any calendar year shall not exceed One Hundred
Fifty Thousand (150,000) shares of Common Stock in the aggregate; provided, however, that for the calendar year in which such person
first commences Service, the foregoing limitation shall be increased to Two Hundred Thousand (200,000) shares, and

 

-               for
Awards denominated in terms of cash (whether payable in cash, Common Stock or a combination of both) and subject to one or more
performance-vesting conditions, the maximum dollar amount for which such Awards may be made to such person in any calendar year
shall not exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) for each calendar year within the applicable performance
measurement period, with any such performance period not to exceed five (5) years and with pro-ration based on the foregoing dollar
amount in the event of any fractional calendar year included within such performance period.

 

F.           Shares
of Common Stock subject to outstanding Awards made under the Plan (including the options transferred from the Predecessor Plans)
shall be available for subsequent issuance under the Plan to the extent those Awards expire or terminate for any reason prior to
the issuance of the shares of Common Stock subject to those Awards. Such shares shall be added back to the number of shares of
Common Stock reserved for award and issuance under the Plan as follows:

 

(i)          for
each share of Common Stock subject to such an expired, forfeited, cancelled or terminated Award made under the Discretionary Grant
Program (including the options transferred from the Predecessor Plans) or subject to an option grant made under the Automatic Grant
Program, one share of Common Stock shall become available for subsequent award and issuance under the Plan,

 

(ii)         for
each share of Common Stock subject to a forfeited or cancelled Full Value Award made under the Stock Issuance, Automatic Grant
or Incentive Bonus Program prior to March 18, 2010, one share shall become available for subsequent award and issuance,

 

(iii)        for
each share of Common Stock subject to a forfeited or cancelled Full Value Award made under the Stock Issuance, Automatic Grant
or Incentive Bonus Program on or after March 18, 2010, 1.59 shares shall become available for subsequent award and issuance, and

 

(iv)        for
each unvested share of Common Stock issued under the Discretionary Grant or Stock Issuance Program for cash consideration not less
than the Fair Market Value per share of Common Stock on the Award date and subsequently repurchased by the Corporation, at a price
per share not greater than the original issue price paid per share, pursuant to the Corporation’s repurchase rights under
the Plan, one share shall become available for subsequent award and issuance under the Plan.

 

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G.           Should
the exercise price of an option under the Plan be paid with shares of Common Stock, then the authorized reserve of Common Stock
under the Plan shall be reduced by the gross number of shares for which that option is exercised, and not by the net number of
shares issued under the exercised stock option. If shares of Common Stock otherwise issuable under the Plan are withheld by the
Corporation in satisfaction of the withholding taxes incurred in connection with the issuance, exercise or vesting of an Award,
then the number of shares of Common Stock available for issuance under the Plan shall be reduced by the gross number of shares
issued, exercised or vesting under such Award, calculated in each instance prior to any such share withholding.

 

H.           If
any change is made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange
of shares, spin-off transaction or other change affecting the outstanding Common Stock as a class without the Corporation’s
receipt of consideration, or should the value of outstanding shares of Company Stock be substantially reduced as a result of a
spin-off transaction or an extraordinary dividend or distribution, or should there occur any merger, consolidation or other reorganization
(including, without limitation, a Change in Control transaction), then equitable adjustments shall be made by the Plan Administrator
to (i) the maximum number and/or class of securities issuable under the Plan, (ii) the maximum number and/or class of securities
for which any one person may receive Common Stock-denominated Awards under the Plan per calendar year, (iii) the maximum number
and/or class of securities that may be issued pursuant to Incentive Options granted under the Plan, (iv) the maximum number and/or
class of securities for which stock option grants and restricted stock unit awards may subsequently be made under the Automatic
Grant Program to new and continuing non-employee Board members, (v) the number and/or class of securities and the exercise or base
price per share in effect under each outstanding Award under the Discretionary Grant and Automatic Grant Programs, (vi) the number
and/or class of securities subject to each outstanding Award under the Stock Issuance and Automatic Grant Programs and the cash
consideration (if any) payable per share, (vii) the number and/or class of securities subject to each outstanding Award under the
Incentive Bonus Program denominated in shares of Common Stock and (viii) the number and/or class of securities subject to the Corporation’s
outstanding repurchase rights under the Plan and the repurchase price payable per share. The adjustments shall be made in such
manner as the Plan Administrator deems appropriate, and such adjustments shall be final, binding and conclusive.

 

I.           Outstanding
Awards under the Plan shall in no way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change
its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business
or assets.

 

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		VI.	PROHIBITION ON REPRICING PROGRAMS

 

Except in connection
with a corporate transaction involving the Corporation (including, without limitation, any stock dividend, distribution (whether
in the form of cash, shares of Common Stock, other securities, or other property), stock split, extraordinary cash dividend, recapitalization,
change in control, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of shares of
Common Stock or other securities, or similar transactions), the Corporation may not, without obtaining stockholder approval: (i)
amend the terms of outstanding options or stock appreciation rights to reduce the exercise price of such outstanding options or
base price of such stock appreciation rights; (ii) cancel outstanding options or stock appreciation rights in exchange for options
or stock appreciation rights with an exercise price or base price, as applicable, that is less than the exercise price or base
price of the original options or stock appreciation rights; or (iii) cancel outstanding options or stock appreciation rights with
an exercise price or base price, as applicable, above the current stock price in exchange for cash or other securities. This Section
VI is intended to govern the repricing or exchange of “underwater” options and stock appreciation rights and shall
not be construed to prohibit the adjustments provided for in Article One, Section V.H of this Plan.

 

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article
Two

DISCRETIONARY GRANT PROGRAM

 

		I.	OPTION TERMS

 

Each option shall be
evidenced by one or more documents in the form approved by the Plan Administrator; provided, however, that each such document
shall comply with the terms specified below. Each document evidencing an Incentive Option shall, in addition, be subject to the
provisions of the Plan applicable to such options.

 

		A.	Exercise Price.

 

1.          The
exercise price per share shall be fixed by the Plan Administrator; provided, however, that such exercise price shall not be less
than one hundred percent (100%) of the Fair Market Value per share of Common Stock on the grant date.

 

2.          The
exercise price shall become immediately due upon exercise of the option and shall, subject to the provisions of the documents evidencing
the option, be payable in one or more of the forms specified below:

 

(i)          cash
or check made payable to the Corporation,

 

(ii)         shares
of Common Stock valued at Fair Market Value on the Exercise Date and held for the requisite period (if any) necessary to avoid
any additional charges to the Corporation’s earnings for financial reporting purposes,

 

(iii)        shares
of Common Stock otherwise issuable under the option but withheld by the Corporation in satisfaction of the exercise price, with
such withheld shares to be valued at Fair Market Value on the exercise date, or

 

(iv)        to
the extent the option is exercised for vested shares, through a special sale and remittance procedure pursuant to which the Optionee
shall concurrently provide instructions to (a) a brokerage firm (reasonably satisfactory to the Corporation for purposes of administering
such procedure in compliance with the Corporation’s pre-clearance/pre-notification policies) to effect the immediate sale
of the purchased shares and remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds
to cover the aggregate exercise price payable for the purchased shares plus all applicable income and employment taxes required
to be withheld by the Corporation by reason of such exercise and (b) the Corporation to deliver the certificates for the purchased
shares directly to such brokerage firm on such settlement date in order to complete the sale.

 

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Except to the extent
such sale and remittance procedure is utilized, payment of the exercise price for the purchased shares must be made on the Exercise
Date.

 

B.           Exercise
and Term of Options.  Each option shall be exercisable at such time or times, during such period and for such number of
shares as shall be determined by the Plan Administrator and set forth in the documents evidencing the option. However, no option
shall have a term in excess of seven (7) years measured from the grant date.

 

		C.	Effect of Termination of Service.

 

1.          The
following provisions shall govern the exercise of any options granted pursuant to the Discretionary Grant Program that are outstanding
at the time of the Optionee’s cessation of Service or death:

 

(i)          Any
option outstanding at the time of the Optionee’s cessation of Service for any reason shall remain exercisable for such period
of time thereafter as shall be determined by the Plan Administrator and set forth in the documents evidencing the option, but no
such option shall be exercisable after the expiration of the option term.

 

(ii)         Any
option held by the Optionee at the time of the Optionee’s death and exercisable in whole or in part at that time may be subsequently
exercised by the personal representative of the Optionee’s estate or by the person or persons to whom the option is transferred
pursuant to the Optionee’s will or the laws of inheritance or by the Optionee’s designated beneficiary or beneficiaries
of that option.

 

(iii)        Should
the Optionee’s Service be terminated for Misconduct or should the Optionee otherwise engage in Misconduct while holding one
or more outstanding options granted under this Article Two, then all of those options shall terminate immediately and cease to
be outstanding.

 

(iv)        During
the applicable post-Service exercise period, the option may not be exercised for more than the number of vested shares for which
the option is at the time exercisable. No additional shares shall vest under the option following the Optionee’s cessation
of Service, except to the extent (if any) specifically authorized by the Plan Administrator in its sole discretion pursuant to
an express written agreement with the Optionee. Upon the expiration of the applicable exercise period or (if earlier) upon the
expiration of the option term, the option shall terminate and cease to be outstanding for any shares for which the option has not
been exercised.

 

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2.          The
Plan Administrator shall have complete discretion, exercisable either at the time an option is granted or at any time while the
option remains outstanding, to:

 

(i)          extend
the period of time for which the option is to remain exercisable following the Optionee’s cessation of Service from the limited
exercise period otherwise in effect for that option to such greater period of time as the Plan Administrator shall deem appropriate,
but in no event beyond the expiration of the option term,

 

(ii)         include
an automatic extension provision whereby the specified post-Service exercise period in effect for any option granted under this
Article Two shall automatically be extended by an additional period of time equal in duration to any interval within the specified
post-Service exercise period during which the exercise of that option or the immediate sale of the shares acquired under such option
could not be effected in compliance with applicable federal and state securities laws, but in no event shall such an extension
result in the continuation of such option beyond the expiration date of the term of that option, and/or

 

(iii)        permit
the option to be exercised, during the applicable post-Service exercise period, not only with respect to the number of vested shares
of Common Stock for which such option is exercisable at the time of the Optionee’s cessation of Service but also with respect
to one or more additional installments in which the Optionee would have vested had the Optionee continued in Service.

 

D.           Shareholder
Rights. The holder of an option shall have no shareholder rights with respect to the shares subject to the option until
such person shall have exercised the option, paid the exercise price and become a holder of record of the purchased shares.

 

E.           Repurchase
Rights.  The Plan Administrator shall have the discretion to grant options which are exercisable for unvested shares of
Common Stock. Should the Optionee cease Service while such shares are unvested, the Corporation shall have the right to repurchase
any or all of those unvested shares at a price per share equal to the lower of (i) the exercise price paid per share
or (ii) the Fair Market Value per share of Common Stock at the time of repurchase. The terms upon which such repurchase right shall
be exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares)
shall be established by the Plan Administrator and set forth in the document evidencing such repurchase right.

 

F.           Transferability
of Options. The transferability of options granted under the Plan shall be governed by the following provisions:

 

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(i)          Incentive
Options: During the lifetime of the Optionee, Incentive Options shall be exercisable only by the Optionee and shall not
be assignable or transferable other than by will or the laws of inheritance following the Optionee’s death.

 

(ii)         Non-Statutory
Options. Non-Statutory Options shall be subject to the same limitation on transfer as Incentive Options, except that the
Plan Administrator may structure one or more Non-Statutory Options so that the option may be assigned in whole or in part during
the Optionee’s lifetime to one or more Family Members of the Optionee or to a trust established exclusively for the Optionee
and/or one or more such Family Members, to the extent such assignment is in connection with the Optionee’s estate plan or
pursuant to a domestic relations order. The assigned portion may only be exercised by the person or persons who acquire a proprietary
interest in the option pursuant to the assignment. The terms applicable to the assigned portion shall be the same as those in effect
for the option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Plan
Administrator may deem appropriate.

 

(iii)        Beneficiary
Designations. Notwithstanding the foregoing, the Optionee may designate one or more persons as the beneficiary or beneficiaries
of his or her outstanding options under this Article Two (whether Incentive Options or Non-Statutory Options), and those options
shall, in accordance with such designation, automatically be transferred to such beneficiary or beneficiaries upon the Optionee’s
death while holding those options. Such beneficiary or beneficiaries shall take the transferred options subject to all the terms
and conditions of the applicable agreement evidencing each such transferred option, including (without limitation) the limited
time period during which the option may be exercised following the Optionee’s death.

 

		II.	INCENTIVE OPTIONS

 

The terms specified below
shall be applicable to all Incentive Options. Except as modified by the provisions of this Section II, all the provisions of Articles
One, Two and Five shall be applicable to Incentive Options. Options which are specifically designated as Non-Statutory Options
when issued under the Plan shall not be subject to the terms of this Section II.

 

A.           Eligibility.
Incentive Options may only be granted to Employees.

 

B.           Dollar
Limitation. The aggregate Fair Market Value of the shares of Common Stock (determined as of the respective date or dates
of grant) for which one or more options granted to any Employee under the Plan (or any other option plan of the Corporation or
any Parent or Subsidiary) may for the first time become exercisable as Incentive Options during any one calendar year shall not
exceed the sum of One Hundred Thousand Dollars ($100,000).

 

To the extent the Employee
holds two (2) or more such options which become exercisable for the first time in the same calendar year, then for purposes of
the foregoing limitations on the exercisability of those options as Incentive Options, such options shall be deemed to become first
exercisable in that calendar year on the basis of the chronological order in which they were granted, except to the extent otherwise
provided under applicable law or regulation.

 

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C.           10%
Shareholder. If any Employee to whom an Incentive Option is granted is a 10% Shareholder, then the exercise price per share
shall not be less than one hundred ten percent (110%) of the Fair Market Value per share of Common Stock on the option grant date,
and the option term shall not exceed five (5) years measured from the option grant date.

 

		III.	STOCK APPRECIATION RIGHTS

 

A.           Authority.
The Plan Administrator shall have full power and authority, exercisable in its sole discretion, to grant stock appreciation rights
in accordance with this Section III to selected Optionees or other individuals eligible to receive option grants under the Discretionary
Grant Program.

 

B.           Types.
Two types of stock appreciation rights shall be authorized for issuance under this Section III: (i) tandem stock appreciation rights
(“Tandem Rights”) and (ii) stand-alone stock appreciation rights (“Stand-alone Rights”).

 

C.           Tandem
Rights. The following terms and conditions shall govern the grant and exercise of Tandem Rights.

 

1.          One
or more Optionees may be granted a Tandem Right, exercisable upon such terms and conditions as the Plan Administrator may establish,
to elect between the exercise of the underlying option for shares of Common Stock or the surrender of that option in exchange for
a distribution from the Corporation in an amount equal to the excess of (i) the Fair Market Value (on the option surrender date)
of the number of shares in which the Optionee is at the time vested under the surrendered option (or surrendered portion thereof)
over (ii) the aggregate exercise price payable for such vested shares.

 

2.          No
such option surrender shall be effective unless it is approved by the Plan Administrator, either at the time of the actual option
surrender or at any earlier time. If the surrender is so approved, then the distribution to which the Optionee shall accordingly
become entitled under this Section III shall be made in shares of Common Stock valued at Fair Market Value on the option surrender
date.

 

3.          If
the surrender of an option is not approved by the Plan Administrator, then the Optionee shall retain whatever rights the Optionee
had under the surrendered option (or surrendered portion thereof) on the option surrender date and may exercise such rights at
any time prior to the later of (i) five (5) business days after the receipt of the rejection notice or (ii) the last day
on which the option is otherwise exercisable in accordance with the terms of the instrument evidencing such option, but in no event
may such rights be exercised more than seven (7) years after the date of the option grant.

 

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D.           Stand-Alone
Rights. The following terms and conditions shall govern the grant and exercise of Stand-alone Rights:

 

1.          One
or more individuals eligible to participate in the Discretionary Grant Program may be granted a Stand-alone Right not tied to any
underlying option under this Discretionary Grant Program. The Stand-alone Right shall relate to a specified number of shares of
Common Stock and shall be exercisable upon such terms and conditions as the Plan Administrator may establish. In no event, however,
may the Stand-alone Right have a maximum term in excess of seven (7) years measured from the grant date. Upon exercise of the Stand-alone
Right, the holder shall be entitled to receive a distribution from the Corporation in an amount equal to the excess of (i) the
aggregate Fair Market Value (on the exercise date) of the shares of Common Stock underlying the exercised right over (ii) the
aggregate base price in effect for those shares.

 

2.          The
number of shares of Common Stock underlying each Stand-alone Right and the base price in effect for those shares shall be determined
by the Plan Administrator in its sole discretion at the time the Stand-alone Right is granted. In no event, however, may the base
price per share be less than the Fair Market Value per underlying share of Common Stock on the grant date. In the event outstanding
Stand-alone Rights are to be assumed in connection with a Change in Control transaction or otherwise continued in effect, the shares
of Common Stock underlying each such Stand-alone Right shall be adjusted immediately after such Change in Control so as to apply
to the number and class of securities into which those shares of Common Stock would have been converted in consummation of such
Change in Control had those shares actually been outstanding at that time. Appropriate adjustments to reflect such Change in Control
shall also be made to the base price per share in effect under each outstanding Stand-alone Right, provided the aggregate
base price shall remain the same. To the extent the actual holders of the Corporation’s outstanding Common Stock receive
cash consideration for their Common Stock in consummation of the Change in Control, the successor corporation may, in connection
with the assumption or continuation of the outstanding Stand-alone Rights under the Discretionary Grant Program, substitute, for
the securities underlying those assumed rights, one or more shares of its own common stock with a fair market value equivalent
to the cash consideration paid per share of Common Stock in the Change in Control transaction.

 

3.          Stand-alone
Rights shall be subject to the same transferability restrictions applicable to Non-Statutory Options and may not be transferred
during the holder’s lifetime, except if such assignment is in connection with the holder’s estate plan and is to one
or more Family Members of the holder or to a trust established for the holder and/or one or more such Family Members or pursuant
to a domestic relations order covering the Stand-alone Right as marital property. In addition, one or more beneficiaries may be
designated for an outstanding Stand-alone Right in accordance with substantially the same terms and provisions as set forth in
Section I.F of this Article Two.

 

4.          The
distribution with respect to an exercised Stand-alone Right shall be made in shares of Common Stock valued at Fair Market Value
on the exercise date.

 

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5.          The
holder of a Stand-alone Right shall have no shareholder rights with respect to the shares subject to the Stand-alone Right unless
and until such person shall have exercised the Stand-alone Right and become a holder of record of the shares of Common Stock issued
upon the exercise of such Stand-alone Right.

 

E.           Post-Service
Exercise. The provisions governing the exercise of Tandem and Stand-alone Rights following the cessation of the recipient’s
Service shall be substantially the same as those set forth in Section I.C of this Article Two for the options granted under the
Discretionary Grant Program, and the Plan Administrator’s discretionary authority under Section I.C.2 of this Article Two
shall also extend to any outstanding Tandem or Stand-alone Appreciation Rights.

 

F.           Gross
Counting. Upon the exercise of any Tandem or Stand-alone Right under this Section III, the share reserve under Section
V of Article One shall be reduced by the gross number of shares as to which such right is exercised, and not by the net number
of shares actually issued by the Corporation upon such exercise.

 

		IV.	CHANGE IN CONTROL

 

A.           In
the event of a Change in Control, each outstanding Award under the Discretionary Grant Program shall automatically accelerate so
that each such Award shall, immediately prior to the effective date of that Change in Control, become exercisable as to all the
shares of Common Stock at the time subject to such Award and may be exercised as to any or all of those shares as fully vested
shares of Common Stock. However, an outstanding Award under the Discretionary Grant Program shall not become exercisable
on such an accelerated basis if and to the extent: (i) such Award is to be assumed by the successor corporation (or parent thereof)
or is otherwise to continue in full force and effect pursuant to the terms of the Change in Control transaction or (ii) such Award
is to be replaced with a cash retention program of the successor corporation which preserves the spread existing at the time of
the Change in Control on any shares as to which the Award is not otherwise at that time vested and exercisable and provides for
the subsequent vesting and concurrent payout of that spread in accordance with the same exercise/vesting schedule in effect for
that Award, but only if such replacement cash program would not result in the treatment of the Award as an item of deferred compensation
subject to Code Section 409A or (iii) the acceleration of such Award is subject to other limitations imposed by the Plan Administrator.
Notwithstanding the foregoing, any Award outstanding under the Discretionary Grant Program on the date of such Change in Control
shall be subject to cancellation and termination, without cash payment or other consideration due the Award holder, if the Fair
Market Value per share of Common Stock on the date of such Change in Control (or any earlier date specified in the definitive agreement
for the Change in Control transaction) is less than the per share exercise or base price in effect for such Award.

 

B.           All
outstanding repurchase rights under the Discretionary Grant Program shall automatically terminate, and the shares of Common Stock
subject to those terminated rights shall immediately vest in full, in the event of a Change in Control, except to the extent: (i)
those repurchase rights are to be assigned to the successor corporation (or parent thereof) or are otherwise to continue in full
force and effect pursuant to the terms of the Change in Control transaction or (ii) such accelerated vesting is precluded by other
limitations imposed by the Plan Administrator.

 

    	14

    	 

    

 

C.           Immediately
following the consummation of the Change in Control, all outstanding Awards under the Discretionary Grant Program shall terminate
and cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof) or otherwise continued
in full force and effect pursuant to the terms of the Change in Control transaction.

 

D.           Each
Award under the Discretionary Grant Program which is assumed in connection with a Change in Control or otherwise continued in effect
shall be appropriately adjusted, immediately after such Change in Control, to apply to the number and class of securities which
would have been issuable to the Optionee in consummation of such Change in Control had the Award been exercised immediately prior
to such Change in Control. Appropriate adjustments to reflect such Change in Control shall also be made to the exercise price payable
per share under each outstanding option, provided the aggregate exercise price payable for such securities shall remain
the same. To the extent the actual holders of the Corporation’s outstanding Common Stock receive cash consideration for their
Common Stock in consummation of the Change in Control, the successor corporation may, in connection with the assumption or continuation
of the outstanding options under the Discretionary Grant Program, substitute one or more shares of its own common stock with a
fair market value equivalent to the cash consideration paid per share of Common Stock in such Change in Control transaction.

 

E.           The
Plan Administrator shall have the discretionary authority to structure one or more outstanding Awards rights under the Discretionary
Grant Program so that those Awards shall, immediately prior to the effective date of a Change in Control, become exercisable as
to all the shares of Common Stock at the time subject to those Awards and may be exercised as to any or all of those shares as
fully vested shares of Common Stock, whether or not those Awards are to be assumed in the Change in Control transaction or otherwise
continued in effect. In addition, the Plan Administrator shall have the discretionary authority to structure one or more of the
Corporation’s repurchase rights under the Discretionary Grant Program so that those rights shall immediately terminate upon
the consummation of the Change in Control transaction, and the shares subject to those terminated rights shall thereupon vest in
full.

 

    	15

    	 

    

 

F.           The
Plan Administrator shall have full power and authority to structure one or more outstanding Awards under the Discretionary Grant
Program so that those Awards shall become exercisable as to all the shares of Common Stock at the time subject to those Awards
in the event the Optionee’s Service is subsequently terminated by reason of an Involuntary Termination within a designated
period following the effective date of any Change in Control transaction in which those Awards do not otherwise fully accelerate.
In addition, the Plan Administrator may structure one or more of the Corporation’s repurchase rights so that those rights
shall immediately terminate with respect to any shares held by the Optionee at the time of such Involuntary Termination, and the
shares subject to those terminated repurchase rights shall accordingly vest in full at that time.

 

G.           The
portion of any Incentive Option accelerated in connection with a Change in Control shall remain exercisable as an Incentive Option
only to the extent the applicable One Hundred Thousand Dollar ($100,000) limitation is not exceeded. To the extent such dollar
limitation is exceeded, the accelerated portion of such option shall be exercisable as a Non-statutory Option under the Federal
tax laws.

 

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article
Three

STOCK ISSUANCE PROGRAM

 

		I.	STOCK ISSUANCE TERMS

 

Shares of Common Stock
may be issued under the Stock Issuance Program, either as vested or unvested shares, through direct and immediate issuances. Each
such stock issuance shall be evidenced by a Stock Issuance Agreement which complies with the terms specified below. Shares of Common
Stock may also be issued under the Stock Issuance Program pursuant to restricted stock units or performance shares which entitle
the recipients to receive the shares underlying those Awards upon the attainment of designated performance goals or the satisfaction
of specified Service requirements or upon the expiration of a designated time period following the vesting of those awards or units.

 

		A.	Issue Price.

 

1.          The
issue price per share shall be fixed by the Plan Administrator, but shall not be less than one hundred percent (100%) of the Fair
Market Value per share of Common Stock on the issuance date.

 

2.          Shares
of Common Stock may be issued under the Stock Issuance Program for any of the following items of consideration which the Plan Administrator
may deem appropriate in each individual instance:

 

(i)          cash
or check made payable to the Corporation,

 

(ii)         past
services rendered to the Corporation (or any Parent or Subsidiary); or

 

(iii)        any
other valid consideration under the California Corporation Code.

 

		B.	Vesting Provisions.

 

1.          Shares
of Common Stock issued under the Stock Issuance Program may, in the discretion of the Plan Administrator, be fully and immediately
vested upon issuance or may vest in one or more installments over the Participant’s period of Service or upon the attainment
of specified performance objectives. The elements of the vesting schedule applicable to any unvested shares of Common Stock issued
under the Stock Issuance Program shall be determined by the Plan Administrator and incorporated into the Stock Issuance Agreement.
Shares of Common Stock may also be issued under the Stock Issuance Program pursuant to restricted stock units or performance shares
which entitle the recipients to receive the shares underlying those Awards upon the attainment of designated performance goals
or the satisfaction of specified Service requirements or upon the expiration of a designated time period following the vesting
of those Awards, including (without limitation) a deferred distribution date following the termination of the Participant’s
Service.

 

    	17

    	 

    

 

2.          The
Plan Administrator shall also have the discretionary authority, consistent with Code Section 162(m), to structure one or more Awards
under the Stock Issuance Program so that the shares of Common Stock subject to those Awards shall vest (or vest and become issuable)
upon the achievement of certain pre-established corporate performance objectives based on one or more Performance Goals and measured
over the performance period (not to exceed five (5) years) specified by the Plan Administrator at the time of the Award.

 

3.          Any
new, substituted or additional securities or other property (including money paid other than as a regular cash dividend) which
the Participant may have the right to receive with respect to the Participant’s unvested shares of Common Stock by reason
of any stock dividend, stock split, recapitalization, combination of shares, exchange of shares, spin-off transaction, extraordinary
dividend or distribution or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt
of consideration shall be issued subject to (i) the same vesting requirements applicable to the Participant’s unvested
shares of Common Stock and (ii) such escrow arrangements as the Plan Administrator shall deem appropriate.

 

4.          The
Participant shall have full shareholder rights with respect to any shares of Common Stock issued to the Participant under the Stock
Issuance Program, whether or not the Participant’s interest in those shares is vested. Accordingly, the Participant shall
have the right to vote such shares and to receive any dividends paid on such shares, subject to any applicable vesting requirements,
including (without limitation) the requirement that any dividends paid on shares subject to performance-vesting conditions shall
be held in escrow by the Corporation and shall not vest or actually be paid to the Award holder prior to the time those shares
vest. The Participant shall not have any shareholder rights with respect to the shares of Common Stock subject to a restricted
stock unit or share right award until that award vests and the shares of Common Stock are actually issued thereunder. However,
dividend-equivalent units may be paid or credited, either in cash or in actual or phantom shares of Common Stock, on outstanding
Awards of performance share or restricted stock units, subject to such terms and conditions as the Plan Administrator may deem
appropriate. In no event, however, shall dividends or dividend-equivalent units relating to Awards subject to performance-vesting
conditions vest or otherwise become payable prior to the time the underlying Award (or portion thereof to which such dividends
or dividend-equivalents units relate) vests upon the attainment of the applicable performance goals and shall accordingly be subject
to cancellation and forfeiture to the same extent as the underlying Award in the event those performance conditions are not attained.

    	18

    	 

    

 

5.          Should
the Participant cease to remain in Service while holding one or more unvested shares of Common Stock issued under the Stock Issuance
Program or should the performance objectives not be attained with respect to one or more such unvested shares of Common Stock,
then those shares shall be immediately surrendered to the Corporation for cancellation, and the Participant shall have no further
shareholder rights with respect to those shares. To the extent the surrendered shares were previously issued to the Participant
for consideration paid in cash or cash equivalent, the Corporation shall repay to the Participant the lower of (i)
the cash consideration paid for the surrendered shares or (ii) the Fair Market Value of those shares at the time of cancellation.

 

6.          The
Plan Administrator may in its discretion waive the surrender and cancellation of one or more unvested shares of Common Stock which
would otherwise occur upon the cessation of the Participant’s Service or the non-attainment of the performance objectives
applicable to those shares. Any such waiver shall result in the immediate vesting of the Participant’s interest in the shares
of Common Stock as to which the waiver applies. Such waiver may be effected at any time, whether before or after the Participant’s
cessation of Service or the attainment or non-attainment of the applicable performance objectives. However, no vesting requirements
tied to the attainment of Performance Goals may be waived with respect to Awards which were intended at the time of grant to qualify
as performance-based compensation under Code Section 162(m), except in the event of the Participant’s cessation of Service
by reason of death or Permanent Disability or as otherwise provided in Section II of this Article Three.

 

7.          Outstanding
Awards of restricted stock units or performance shares under the Stock Issuance Program shall automatically terminate, and no shares
of Common Stock shall actually be issued in satisfaction of those Awards, if the performance goals or Service requirements established
for such Awards are not attained or satisfied. The Plan Administrator, however, shall have the discretionary authority to issue
vested shares of Common Stock under one or more outstanding Awards of restricted stock units or performance shares as to which
the designated performance goals or Service requirements have not been attained or satisfied. However, no vesting requirements
tied to the attainment of Performance Goals may be waived with respect to Awards which were intended, at the time those Awards
were made, to qualify as performance-based compensation under Code Section 162(m), except in the event of the Participant’s
cessation of Service by reason of death or Permanent Disability or as otherwise provided in Section II of this Article Three.

 

8.          The
following additional requirements shall be in effect for any performance shares awarded under this Article Three:

 

(i)          At
the end of the performance period, the Plan Administrator shall determine the actual level of attainment for each performance objective
and the extent to which the performance shares awarded for that period are to vest and become payable based on the attained performance
levels.

 

    	19

    	 

    

 

(ii)         The
performance shares which so vest shall be paid as soon as practicable following the end of the performance period, unless such
payment is to be deferred for the period specified by the Plan Administrator at the time the performance shares are awarded or
the period selected by the Participant in accordance with the applicable requirements of Code Section 409A.

 

(iii)        Performance
shares may be paid in (i) cash, (ii) shares of Common Stock or (iii) any combination of cash and shares of Common Stock, as set
forth in the applicable Award Agreement.

 

(iv)        Performance
shares may also be structured so that the shares are convertible into shares of Common Stock, but the rate at which each performance
share is to so convert shall be based on the attained level of performance for each applicable performance objective.

 

		II.	CHANGE IN CONTROL

 

A.           Each
Award outstanding under the Stock Issuance Program on the effective date of an actual Change in Control transaction may be (i)
assumed by the successor corporation (or parent thereof) or otherwise continued in full force and effect pursuant to the terms
of the Change in Control transaction or (ii) replaced with a cash incentive program of the successor corporation which preserves
the Fair Market Value of the underlying shares of Common Stock at the time of the Change in Control and provides for the subsequent
vesting and payment of that value in accordance with the same vesting schedule in effect for those shares at the time of such Change
in Control. If any such Award is subject to a performance-vesting condition tied to the attainment of one or more specified performance
goals, then upon the assumption, continuation or replacement of that Award, the performance vesting condition shall automatically
be cancelled, and such Award shall thereupon be converted into a Service-vesting Award that will vest upon the completion of a
Service period co-terminous with the portion of the performance period (and any subsequent Service vesting component that was originally
part of that Award) remaining at the time of the Change in Control. However, to the extent any Award outstanding under the Stock
Issuance Program on the effective date of such Change in Control Transaction is not to be so assumed, continued or replaced, that
Award shall vest in full immediately prior to the effective date of the actual Change in Control transaction and the shares of
Common Stock underlying the portion of the Award that vests on such accelerated basis shall be issued in accordance with the applicable
Award Agreement, unless such accelerated vesting is precluded by other limitations imposed in the Stock Issuance Agreement.

 

B.           All
of the Corporation’s outstanding repurchase rights under the Stock Issuance Program shall terminate automatically, and all
the shares of Common Stock subject to those terminated rights shall immediately vest in full, in the event of any Change in Control,
except to the extent (i) those repurchase rights are to be assigned to the successor corporation (or parent thereof) or are otherwise
to continue in full force and effect pursuant to the terms of the Change in Control transaction or (ii) such accelerated vesting
is precluded by other limitations imposed in the Stock Issuance Agreement.

 

    	20

    	 

    

 

C.           Each
outstanding Award under the Stock Issuance Program which is assumed in connection with a Change in Control or otherwise continued
in effect shall be adjusted immediately after the consummation of that Change in Control so as to apply to the number and class
of securities into which the shares of Common Stock subject to that Award immediately prior to the Change in Control would have
been converted in consummation of such Change in Control had those shares actually been outstanding at that time, and appropriate
adjustments shall also be made to the cash consideration (if any) payable per share thereunder, provided the aggregate amount
of such cash consideration shall remain the same. To the extent the actual holders of the Corporation’s outstanding Common
Stock receive cash consideration for their Common Stock in consummation of the Change in Control, the successor corporation may,
in connection with the assumption or continuation of the outstanding Awards, substitute one or more shares of its own common stock
with a fair market value equivalent to the cash consideration paid per share of Common Stock in such Change in Control transaction.

 

D.           The
Plan Administrator shall have the discretionary authority to structure one or more unvested Awards under the Stock Issuance Program
so that the shares of Common Stock subject to those Awards shall automatically vest (or vest and become issuable) in whole or in
part immediately upon the occurrence of a Change in Control or upon the subsequent termination of the Participant’s Service
by reason of an Involuntary Termination within a designated period following the effective date of that Change in Control transaction.
The Plan Administrator’s authority under this Section II.D shall also extend to any Awards under the Stock Issuance Program
which are intended to qualify as performance-based compensation under Code Section 162(m), even though the actual vesting of those
Awards pursuant to this Section II.D may result in their loss of performance-based status under Code Section 162(m).

 

    	21

    	 

    

 

article
Four

 

INCENTIVE
BONUS PROGRAM

 

		I.	INCENTIVE BONUS TERMS

 

The Plan Administrator
shall have full power and authority to implement one or more of the following incentive bonus programs under the Plan:

 

(i)          cash
bonus awards (“Cash Awards”),

 

(ii)         performance
unit awards (“Performance Unit Awards”), and

 

(iii)        dividend
equivalent rights (“DER Awards”)

 

A.           Cash
Awards. The Plan Administrator shall have the discretionary authority under the Plan to make Cash Awards which are to vest
in one or more installments over the Participant’s continued Service with the Corporation or upon the attainment of specified
performance objectives. Each such Cash Award shall be evidenced by one or more documents in the form approved by the Plan Administrator;
provided however, that each such document shall comply with the terms specified below.

 

1.          The
elements of the vesting schedule applicable to each Cash Award shall be determined by the Plan Administrator and incorporated into
the Incentive Bonus Award Agreement.

 

2.          The
Plan Administrator shall also have the discretionary authority, consistent with Code Section 162(m), to structure one or more Cash
Awards so that those Awards shall vest upon the achievement of pre-established corporate performance objectives based upon one
or more Performance Goals measured over the performance period (not to exceed five (5) years) specified by the Plan Administrator
at the time of the Award.

 

3.          Outstanding
Cash Awards shall automatically terminate, and no cash payment or other consideration shall be due the holders of those Awards,
if the performance objectives or Service requirements established for those Awards are not attained or satisfied. The Plan Administrator
may in its discretion waive the cancellation and termination of one or more unvested Cash Awards which would otherwise occur upon
the cessation of the Participant’s Service or the non-attainment of the performance objectives applicable to those Awards.
Any such waiver shall result in the immediate vesting of the Participant’s interest in the Cash Award as to which the waiver
applies. Such wavier may be effected at any time, whether before or after the Participant’s cessation of Service or the attainment
or non-attainment of the applicable performance objectives. However, no vesting requirements tied to the attainment of Performance
Goals may be waived with respect to Awards which were intended, at the time those Awards were made, to qualify as performance-based
compensation under Code Section 162(m), except in the event of the Participant’s cessation of Service by reason of death
or Permanent Disability or as otherwise provided in Section II of this Article Four.

 

    	22

    	 

    

 

4.          Cash
Awards which become due and payable following the attainment of the applicable performance objectives or satisfaction of the applicable
Service requirement (or the waiver of such goals or Service requirement) may be paid in (i) cash, (ii) shares of Common Stock valued
at Fair Market Value on the payment date or (iii) a combination of cash and shares of Common Stock as set forth in the applicable
Award Agreement.

 

B.           Performance
Unit Awards. The Plan Administrator shall have the discretionary authority to make Performance Unit Awards in accordance
with the terms of this Article Four. Each such Performance Unit Award shall be evidenced by one or more documents in the form approved
by the Plan Administrator; provided however, that each such document shall comply with the terms specified below.

 

1.          A
Performance Unit shall represent either (i) a unit with a dollar value tied to the level at which pre-established corporate performance
objectives based on one or more Performance Goals are attained or (ii) a participating interest in a special bonus pool tied to
the attainment of pre-established corporate performance objectives based on one or more Performance Goals. The amount of the bonus
pool may vary with the level at which the applicable performance objectives are attained, and the value of each Performance Unit
which becomes due and payable upon the attained level of performance shall be determined by dividing the amount of the resulting
bonus pool (if any) by the total number of Performance Units issued and outstanding at the completion of the applicable performance
period.

 

2.          Performance
Units may also be structured to include a Service requirement which the Participant must satisfy following the completion of the
performance period in order to vest in the Performance Units awarded with respect to that performance period.

 

3.          Performance
Units which become due and payable following the attainment of the applicable performance objectives and the satisfaction of any
applicable Service requirement may be paid in (i) cash, (ii) shares of Common Stock valued at Fair Market Value on the payment
date or (iii) a combination of cash and shares of Common Stock, as set forth in the applicable Award Agreement.

 

C.           DER
Awards. The Plan Administrator shall have the discretionary authority to make DER Awards in accordance with the terms of
this Article Four. Each such DER Award shall be evidenced by one or more documents in the form approved by the Plan Administrator;
provided however, that each such document shall comply with the terms specified below.

 

    	23

    	 

    

 

1.          The
DER Awards may be made as stand-alone awards or in tandem with other Awards made under the Plan. The term of each such DER Award
shall be established by the Plan Administrator at the time of grant, but no DER Award shall have a term in excess of seven (7)
years.

 

2.          Each
DER shall represent the right to receive the economic equivalent of each dividend or distribution, whether in cash, securities
or other property (other than shares of Common Stock), which is made per issued and outstanding share of Common Stock during the
term the DER remains outstanding. A special account on the books of the Corporation shall be maintained for each Participant to
whom a DER Award is made, and that account shall be credited per DER with each such dividend or distribution made per issued and
outstanding share of Common Stock during the term of that DER remains outstanding.

 

3.          Payment
of the amounts credited to such book account may be made to the Participant either concurrently with the actual dividend or distribution
made per issued and outstanding share of Common Stock or may be deferred for a period specified by the Plan Administrator at the
time the DER Award is made or selected by the Participant in accordance with the requirements of Code Section 409A. In no event,
however, shall any DER Award made with respect to an Award subject to performance-vesting conditions under the Stock Issuance or
Incentive Bonus Program vest or become payable prior to the vesting of that Award (or the portion thereof to which the DER Award
relates) upon the attainment of the applicable performance goals and shall accordingly be subject to cancellation and forfeiture
to the same extent as the underlying Award in the event those performance conditions are not attained.

 

4.          Payment
may be paid in (i) cash, (ii) shares of Common Stock or (iii) a combination of cash and shares of Common Stock, as set forth in
the applicable Award Agreement. If payment is to be made in the form of Common Stock, the number of shares of Common Stock into
which the cash dividend or distribution amounts are to be converted for purposes of the Participant’s book account may be
based on the Fair Market Value per share of Common Stock on the date of conversion, a prior date or an average of the Fair Market
Value per share of Common Stock over a designated period, as set forth in the applicable Award Agreement.

 

5.          The
Plan Administrator shall also have the discretionary authority, consistent with Code Section 162(m), to structure one or more DER
Awards so that those Awards shall vest only after the achievement of pre-established corporate performance objectives based upon
one or more Performance Goals measured over the performance period (not to exceed five (5) years) specified by the Plan Administrator
at the time the Award is made.

 

    	24

    	 

    

 

		II.	CHANGE IN CONTROL

 

A.           The
Plan Administrator shall have the discretionary authority to structure one or more Awards under the Incentive Bonus Program so
that those Awards shall automatically vest in whole or in part immediately prior to the effective date of an actual Change in Control
transaction or upon the subsequent termination of the Participant’s Service by reason of an Involuntary Termination within
a designated period following the effective date of such Change in Control. To the extent any such Award is, at the time of such
Change in Control, subject to a performance-vesting condition tied to the attainment of one or more specified performance goals,
then that performance vesting condition shall automatically be cancelled on the effective date of such Change in Control, and such
Award shall thereupon be converted into a Service-vesting Award that will vest upon the completion of a Service period co-terminous
with the portion of the performance period ((and any subsequent Service vesting component that was originally part of that Award)
remaining at the time of the Change in Control.

 

B.           The
Plan Administrator’s authority under Section II.A above shall also extend to any Award under the Incentive Bonus Program
intended to qualify as performance-based compensation under Code Section 162(m), even though the automatic vesting of that Award
may result in the loss of performance-based status under Code Section 162(m).

 

    	25

    	 

    

 

article
Five

AUTOMATIC GRANT PROGRAM

 

		I.	TERMS

 

A.           Grant
Dates. Grants shall be made pursuant to the Automatic Grant Program in effect under this Article Four as follows:

 

1.          Each
individual who is first elected or appointed as a non-employee Board member at any time on or after the date of the 2006 Annual
Meeting shall automatically be granted, on the date of such initial election or appointment, a Non-Statutory Option to purchase
not more than ten thousand (10,000) shares of Common Stock and restricted stock units covering not more than three thousand (3,000)
shares of Common Stock, provided that individual has not previously been in the employ of the Corporation or any Parent or Subsidiary.
The actual number of shares for which such initial option grant and restricted stock unit award shall be made shall (subject to
the respective ten thousand (10,000) and three thousand (3,000)-share limits) be determined by the Plan Administrator at the time
of each such grant.

 

2.          On
the date of each annual shareholders meeting, beginning with the 2006 Annual Meeting, each individual who is to continue to serve
as a non-employee Board member, whether or not that individual is standing for re-election to the Board at that particular annual
meeting, shall automatically be granted a Non-Statutory Option to purchase not more than three thousand (3,000) shares of common
stock and restricted stock units covering up to not more than an additional one thousand (1,000) shares of Common Stock, provided
that such individual has served as a non-employee Board member for a period of at least six (6) months. There shall be no limit
on the number of such option grants and restricted stock unit awards any one continuing non-employee Board member may receive over
his or her period of Board service, and non-employee Board members who have previously been in the employ of the Corporation (or
any Parent or Subsidiary) shall be eligible to receive one or more such annual option grants and restricted stock unit awards over
their period of continued Board service. The actual number of shares for which such annual option grants and restricted stock unit
awards are made to each continuing non-employee Board member shall (subject to the respective three thousand (3,000) and one thousand
(1,000)-share limits) be determined by the Plan Administrator on or before the date of the annual shareholders meeting on which
those grants are to be made.

 

    	26

    	 

    

 

		B.	Exercise Price.

 

1.          The
exercise price per share for each option granted under this Article Four shall be equal to one hundred percent (100%) of the
Fair Market Value per share of Common Stock on the option grant date.

 

2.          The
exercise price shall be payable in one or more of the alternative forms authorized under the Discretionary Grant Program. Except
to the extent the sale and remittance procedure specified thereunder is utilized, payment of the exercise price for the purchased
shares must be made on the Exercise Date.

 

C.           Option
Term. Each option granted under this Article Four shall have a maximum term of seven (7) years measured from the option
grant date, subject to earlier termination following the Optionee’s cessation of Service.

 

D.           Exercise
and Vesting of Options. Each option granted under this Article Four shall be immediately exercisable for any or all
of the option shares. However, any unvested shares purchased under the option shall be subject to repurchase by the Corporation,
at the lower of (i) the exercise price paid per share or (ii) the Fair Market Value per share of Common Stock at
the time of repurchase, upon the Optionee’s cessation of Service prior to vesting in those shares. The shares subject to
each initial ten thousand (10,000)-share-or-less grant shall vest, and the Corporation’s repurchase right shall lapse, in
four (4) successive equal annual installments upon the Optionee’s completion of each year of service as a non-employee Board
member over the four (4)-year period measured from the option grant date. The shares subject to each annual three thousand (3,000)-share-or-less
grant made to a non-employee Board member for his or her continued Board service shall vest, and the Corporation’s repurchase
right shall lapse, in one installment upon the earlier of (i) the Optionee’s completion of one (1)-year of
service as a non-employee Board member measured from the grant date or (ii) the Optionee’s continuation in such Board service
through the day immediately preceding the next annual shareholders meeting following such grant date.

 

E.           Vesting
of Restricted Stock Units and Issuance of Shares. Each restricted stock unit award for up to three thousand (3,000) shares
shall vest in a series of four (4) successive equal annual installments upon the individual’s completion of each year of
service as a non-employee Board member over the four (4)-year period measured from the date that award is made. Each restricted
stock unit award for up to one thousand (1,000) shares shall vest in one installment upon the earlier of (i) the individual’s
completion of one (1)-year of service as a non-employee Board member measured from the date that award is made or (ii) the individual’s
continuation in such Board service through the day immediately preceding the next annual shareholders meeting following such grant
date. However, each restricted stock unit award held by an individual under the Automatic Grant Program will immediately vest in
full upon his or her cessation of Board service by reason of death or Permanent Disability. As the restricted stock units under
the Automatic Grant Program vest in one or more installments, the shares of Common Stock underlying those vested units shall be
promptly issued.

 

    	27

    	 

    

 

F.           Limited
Transferability of Options. Each option under this Article Four may be assigned in whole or in part during the Optionee’s
lifetime to one or more of his or her Family Members or to a trust established exclusively for the Optionee and/or one or more
such Family Members, to the extent such assignment is in connection with the Optionee’s estate plan or pursuant to a domestic
relations order. The assigned portion may only be exercised by the person or persons who acquire a proprietary interest in the
option pursuant to the assignment. The terms applicable to the assigned portion shall be the same as those in effect for the option
immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Plan Administrator
may deem appropriate. The Optionee may also designate one or more persons as the beneficiary or beneficiaries of his or her outstanding
options under this Article Four, and the options shall, in accordance with such designation, automatically be transferred to such
beneficiary or beneficiaries upon the Optionee’s death while holding those options. Such beneficiary or beneficiaries shall
take the transferred options subject to all the terms and conditions of the applicable agreement evidencing each such transferred
option, including (without limitation) the limited time period during which the option may be exercised following the Optionee’s
death.

 

G.           Termination
of Service. The following provisions shall govern the exercise of any options held by the Optionee at the time the Optionee
ceases Service:

 

(i)          The
Optionee (or, in the event of Optionee’s death while holding the option, the personal representative of the Optionee’s
estate or the person or persons to whom the option is transferred pursuant to the Optionee’s will or the laws of inheritance
or the designated beneficiary or beneficiaries of such option) shall have a twelve (12)-month period following the date of such
cessation of Service in which to exercise such option.

 

(ii)         During
the twelve (12)-month exercise period, the option may not be exercised in the aggregate for more than the number of vested shares
of Common Stock for which the option is exercisable at the time of the Optionee’s cessation of Service. However, should the
Optionee cease to serve as a Board member by reason of death or Permanent Disability, then all shares at the time subject to the
option shall immediately vest so that such option may, during the twelve (12)-month exercise period following such cessation of
Board service, be exercised for any or all of those shares as fully vested shares of Common Stock.

 

(iii)        In
no event shall the option remain exercisable after the expiration of the option term. Upon the expiration of the twelve (12)-month
exercise period or (if earlier) upon the expiration of the option term, the option shall terminate and cease to be outstanding
for any vested shares for which the option has not been exercised. However, the option shall, immediately upon the Optionee’s
cessation of Service for any reason (other than cessation of Board service by reason of death or Permanent Disability), terminate
and cease to be outstanding to the extent the option is not otherwise at that time exercisable for vested shares.

 

    	28

    	 

    

 

		II.	CHANGE IN CONTROL

 

A.           In
the event of any Change in Control while the individual remains in Service, the following provisions shall apply:

 

(i)          Should
a Change in Control occur prior to the Optionee’s cessation of Service, then the shares of Common Stock at the time subject
to each outstanding option held by such Optionee under this Automatic Grant Program but not otherwise vested shall automatically
vest in full so that each such option shall, immediately prior to the effective date of the Change in Control, become exercisable
for all the option shares as fully vested shares of Common Stock and may be exercised for any or all of those vested shares. Immediately
following the consummation of the Change in Control, each automatic option grant shall terminate and cease to be outstanding, except
to the extent assumed by the successor corporation (or parent thereof) or otherwise continued in effect pursuant to the terms of
the Change in Control transaction.

 

(ii)         The
shares of Common Stock which are at the time of such Change in Control subject to any outstanding restricted stock units awarded
to such individual under the Automatic Grant Program shall, immediately prior to the effective date of the Change in Control, vest
in full and be issued to such individual as soon as administratively practicable thereafter, but in no event later than fifteen (15)
business days.

 

B.           All
outstanding repurchase rights under this Automatic Grant Program shall automatically terminate, and the shares of Common Stock
subject to those terminated rights shall immediately vest in full, in the event of any Change in Control or Hostile Take-Over.

 

C.           Each
option which is assumed in connection with a Change in Control or otherwise continued in effect shall be appropriately adjusted,
immediately after such Change in Control, to apply to the number and class of securities which would have been issuable to the
Optionee in consummation of such Change in Control had the option been exercised immediately prior to such Change in Control. Appropriate
adjustments shall also be made to the exercise price payable per share under each outstanding option, provided the aggregate
exercise price payable for such securities shall remain the same. To the extent the actual holders of the Corporation’s outstanding
Common Stock receive cash consideration for their Common Stock in consummation of the Change in Control, the successor corporation
may, in connection with the assumption or continuation of the outstanding options under the Automatic Grant Program, substitute
one or more shares of its own common stock with a fair market value equivalent to the cash consideration paid per share of Common
Stock in such Change in Control transaction.

 

    	29

    	 

    

 

		III.	REMAINING TERMS

 

The remaining terms of
each grant shall be the same as the terms in effect for option grants made under the Discretionary Grant Program, including the
prohibition on repricing contained in Section V of Article Two.

 

		IV.	ALTERNATIVE AWARDS

 

A.           The
Compensation Committee shall have full power and authority to award, in lieu of one or more initial or annual automatic option
grants under this Article Four, unvested shares of Common Stock or restricted stock units which in each instance have an aggregate
Fair Market Value substantially equal to the grant-date fair value (as determined for financial reporting purposes in accordance
with FASB ASC Topic 781 or any successor standard) of the automatic option grant which such award replaces. Any such alternative
award shall be made at the same time the automatic option grant or restricted stock unit award which it replaces would have been
made, and the vesting provisions (including vesting acceleration) applicable to such award shall be substantially the same as in
effect for the automatic option grant or restricted stock unit award so replaced.

 

B.           The
Compensation Committee shall also have full power and authority to implement a non-employee Board member retainer fee deferral
program under the Plan so as to allow the non-employee Board members the opportunity to elect, prior to the start of each calendar
year, to convert the Board retainer fees to be earned for such year into restricted stock units under the Stock Issuance Program
that will defer the issuance of the shares of Common Stock that vest under those restricted stock units until a permissible date
or event under Code Section 409A. If such program is implemented, the Compensation Committee shall have the authority to establish
such rules and procedures as it deems appropriate for the filing of such deferral elections and the designation of the permissible
distribution events under Code Section 409A.

 

    	30

    	 

    

 

article
Six

MISCELLANEOUS

 

		I.	TAX WITHHOLDING

 

A.           The
Corporation’s obligation to deliver shares of Common Stock upon the issuance, exercise or vesting of an Award under the Plan
shall be subject to the satisfaction of all applicable income and employment tax withholding requirements.

 

B.           The
Plan Administrator may, in its discretion, structure one or more Awards so that shares of Common Stock may be used as follows to
satisfy all or part of the Withholding Taxes to which such holders of those Awards may become subject in connection with the issuance,
exercise, vesting or settlement of those Awards:

 

Stock Withholding:
The Corporation may be given the right to withhold, from the shares of Common Stock otherwise issuable upon the issuance, exercise,
vesting or settlement of such Award, a portion of those shares with an aggregate Fair Market Value equal to the applicable Withholding
Taxes. The shares of Common Stock so withheld shall reduce the number of shares of Common Stock authorized for issuance under the
Plan.

 

Stock Delivery:
The election to deliver to the Corporation, at the time of the issuance, exercise or vesting of the Award, one or more shares of
Common Stock previously acquired by such holder (other than in connection with the issuance exercise or vesting of the shares triggering
the Withholding Taxes) with an aggregate Fair Market Value at the time of delivery equal to the percentage of the Withholding Taxes
(not to exceed one hundred percent (100%)) designated by the individual. The shares of Common Stock so delivered shall not be added
to the shares of Common Stock authorized for issuance under the Plan.

 

		II.	SHARE ESCROW/LEGENDS

 

Unvested shares may,
in the Plan Administrator’s discretion, be held in escrow by the Corporation until the Participant’s interest in such
shares vests or may be issued directly to the Participant with restrictive legends on the certificates evidencing those unvested
shares.

 

		III.	EFFECTIVE DATE AND TERM OF THE PLAN

 

A.           The
Plan became effective on the Plan Effective Date.

 

B.           The
Plan serves as the successor to the Predecessor Plans, and no further option grants or stock issuances are to be made under the
Predecessor Plans. All options outstanding under the Predecessor Plans at the time of the 2006 Annual Meeting were transferred
to this Plan.

 

    	31

    	 

    

 

C.           The
Plan was amended and restated on March 18, 2010 to (i) increase the number of shares of Common Stock authorized for issuance under
the Plan by an additional eight hundred eighty thousand (880,000) shares, (ii) increase, by the same number, the number of shares
of Common Stock that can be issued pursuant to Incentive Options granted under the Plan, (iii) add the Incentive Bonus Program
to the Plan and (iv) effect certain other technical changes to the Plan. The March 18, 2010 amendment and was approved by the stockholders
at the 2010 Annual Meeting. The Plan was amended and restated on April 16, 2015, to extend the term of the Plan by two years, from
February 22, 2016 to February 22, 2018, subject to stockholder approval at the 2015 Annual Meeting.

 

D.           The
Plan shall terminate upon the earliest to occur of (i) February 22, 2018, (ii) the date on which all shares available
for issuance under the Plan shall have been issued as fully vested shares or (iii) the termination of all outstanding Awards
in connection with a Change in Control. Should the Plan terminate on February 22, 2018, then all Awards outstanding at that time
shall continue to have force and effect in accordance with the provisions of the documents evidencing those Awards.

 

		IV.	AMENDMENT OF THE PLAN

 

A.           The
Board shall have complete and exclusive power and authority to amend or modify the Plan in any or all respects. However, no such
amendment or modification shall adversely affect the rights and obligations with respect to Awards at the time outstanding under
the Plan unless the Optionee or the Participant consents to such amendment or modification. In addition, amendments to the Plan
will be subject to shareholder approval to the extent required under applicable law or regulation or pursuant to the listing standards
of the Stock Exchange on which the Common Stock is at the time primarily traded, and no amendment that would reduce or limit the
scope of the prohibition on repricing programs set forth in Section VI of Article One or otherwise eliminated such prohibition
shall be effective unless approved by the shareholders.

 

B.           The
Compensation Committee of the Board shall have the discretionary authority to adopt and implement from time to time such addenda
or subplans to the Plan as it may deem necessary in order to bring the Plan into compliance with applicable laws and regulations
of any foreign jurisdictions in which grants or awards are to be made under the Plan and/or to obtain favorable tax treatment in
those foreign jurisdictions for the individuals to whom the grants or awards are made.

 

C.           Awards
may be made under the Plan that involve shares of Common Stock in excess of the number of shares then available for issuance under
the Plan, provided no shares shall actually be issued pursuant to those Awards until the number of shares of Common Stock available
for issuance under the Plan is sufficiently increased by shareholder approval of an amendment of the Plan authorizing such increase.
If shareholder approval is required and is not obtained within twelve (12) months after the date the first excess Award is made,
then all Awards granted on the basis of such excess shares shall terminate and cease to be outstanding.

 

    	32

    	 

    

 

D.           The
provisions of the Plan and the outstanding Awards under the Plan shall, in the event of any ambiguity, be construed, applied and
interpreted in a manner so as to ensure that all Awards and Award Agreements provided to Optionees or Participants who are subject
to U.S. income taxation either qualify for an exemption from the requirements of Section 409A of the Code or comply with those
requirements; provided, however, that the Corporation shall not make any representations that any Awards made under the Plan will
in fact be exempt from the requirements of Section 409A of the Code or otherwise comply with those requirements, and each Optionee
and Participant shall accordingly be solely responsible for any taxes, penalties or other amounts which may become payable with
respect to his or her Awards by reason of Section 409A of the Code.

 

		V.	USE OF PROCEEDS

 

Any cash proceeds received
by the Corporation from the sale of shares of Common Stock under the Plan shall be used for general corporate purposes.

 

		VI.	REGULATORY APPROVALS

 

A.           The
implementation of the Plan, the grant of any Award and the issuance of shares of Common Stock in connection with the issuance,
exercise or vesting of any Award made under the Plan shall be subject to the Corporation’s procurement of all approvals and
permits required by regulatory authorities having jurisdiction over the Plan, the Awards made under the Plan and the shares of
Common Stock issuable pursuant to those Awards.

 

B.           No
shares of Common Stock or other assets shall be issued or delivered under the Plan unless and until there shall have been compliance
with all applicable requirements of applicable securities laws, including the filing and effectiveness of the Form S-8 registration
statement for the shares of Common Stock issuable under the Plan, and all applicable listing requirements of any Stock Exchange
on which Common Stock is then listed for trading.

 

		VII.	NO EMPLOYMENT/SERVICE RIGHTS

 

Nothing in the Plan shall
confer upon the Optionee or the Participant any right to continue in Service for any period of specific duration or interfere with
or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining such person)
or of the Optionee or the Participant, which rights are hereby expressly reserved by each, to terminate such person’s Service
at any time for any reason, with or without cause.

 

    	33

    	 

    

 

APPENDIX 

 

The following definitions
shall be in effect under the Plan:

 

A.           Annual
Meeting shall mean the annual meeting of the Corporation’s shareholders.

 

B.           Automatic
Grant Program shall mean the automatic option grant program in effect under Article Four of the Plan.

 

C.           Award
shall mean any of the following awards authorized for issuance or grant under the Plan: stock options, stock appreciation rights,
direct stock issuances, restricted stock or restricted stock unit awards, performance shares, performance units, dividend-equivalent
rights and cash incentive awards.

 

D.           Board
shall mean the Corporation’s Board of Directors.

 

E.           Change
in Control shall mean a change in ownership or control of the Corporation effected through any of the following transactions:

 

(i)          the
closing of a merger, consolidation or other reorganization approved by the Corporation’s shareholders, unless securities
representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation
are immediately thereafter beneficially owned, directly or indirectly and in substantially the same proportion, by the persons
who beneficially owned the Corporation’s outstanding voting securities immediately prior to such transaction,

 

(ii)         the
closing of a shareholder-approved sale, transfer or other disposition (including in whole or in part through one or more licensing
arrangements) of all or substantially all of the Corporation’s assets,

 

(iii)        the
closing of any transaction or series of related transactions pursuant to which any person or any group of persons comprising a
“group” within the meaning of Rule 13d-5(b)(1) of the 1934 Act (other than the Corporation or a person that, prior
to such transaction or series of related transactions, directly or indirectly controls, is controlled by or is under common control
with, the Corporation) acquires directly or indirectly beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act)
of securities possessing (or convertible into or exercisable for securities possessing) more than fifty percent (50%) of the total
combined voting power of the Corporation’s securities (as measured in terms of the power to vote with respect to the election
of Board members) outstanding immediately after the consummation of such transaction or series of related transactions, whether
such transaction involves a direct issuance from the Corporation or the acquisition of outstanding securities held by one or more
of the Corporation’s existing shareholders, or

 

    	A-1.

    	 

    

 

(iv)        a
change in the composition of the Board over a period of thirty-six (36) consecutive months or less such that a majority of the
Board members ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who either
(A) have been Board members continuously since the beginning of such period or (B) have been elected or nominated for election
as Board members during such period by at least a majority of the Board members described in clause (A) who were still in office
at the time the Board approved such election or nomination,

 

F.           Code
shall mean the Internal Revenue Code of 1986, as amended.

 

G.           Common
Stock shall mean the Corporation’s common stock.

 

H.           Compensation
Committee shall mean the Compensation Committee of the Board comprised of two (2) or more non-employee Board members.

 

I.           Corporation
shall mean American Shared Hospital Services, a California corporation, and any corporate successor to all or substantially
all of the assets or voting stock of American Shared Hospital Services which has by appropriate action assumed the Plan.

 

J.           Discretionary
Grant Program shall mean the discretionary grant program in effect under Article Two of the Plan pursuant to which stock
options and stock appreciation rights may be granted to one or more eligible individuals.

 

K.          Eligible
Director shall mean a non-employee Board member eligible to participate in the Automatic Grant Program in accordance with
the eligibility provisions of Articles One and Four.

 

L.           Employee
shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary, whether now existing or subsequently
established), subject to the control and direction of the employer entity as to both the work to be performed and the manner and
method of performance.

 

M.         Exercise
Date shall mean the date on which the Corporation shall have received written notice of the option exercise.

 

N.           Fair
Market Value per share of Common Stock on any relevant date shall be the closing selling price per share of Common Stock
at the close of regular trading hours (i.e., before after-hours trading begins) on the date in question on the Stock Exchange determined
by the Plan Administrator to be the primary market for the Common Stock, as such price is reported by the National Association
of Securities Dealers (if primarily traded on the Nasdaq Global or Global Select Market) or as officially quoted in the composite
tape of transactions on any other Stock Exchange on which the Company’s common stock is then primarily traded. If there is
no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling
price on the last preceding date for which such quotation exists.

 

    	A-2.

    	 

    

 

O.           Family
Member means, with respect to a particular Optionee or Participant, any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law
or sister-in-law.

 

P.           Full
Value Award means any of the following Awards made under the Stock Issuance, Incentive Bonus or Automatic Grant Programs
that are settled in shares of Common Stock: restricted stock awards (unless issued for cash consideration equal to the Fair Market
Value of the shares of Common Stock on the award date), restricted stock unit awards, performance shares, performance units, cash
incentive awards and any other Awards under the Plan other than (i) stock options and stock appreciation rights issued under the
Discretionary Grant Program, (ii) stock options issued under the Automatic Grant Program and (iii) dividend equivalent rights under
the Incentive Bonus Program.

 

Q.           Incentive
Bonus Program shall mean the incentive bonus program in effect under Article Four of the Plan.

 

R.           Incentive
Option shall mean an option which satisfies the requirements of Code Section 422.

 

S.           Involuntary
Termination shall mean the termination of the Service of any individual which occurs by reason of:

 

(i)          such
individual’s involuntary dismissal or discharge by the Corporation (or any Parent or Subsidiary) for reasons other than Misconduct,
or

 

(ii)         such
individual’s voluntary resignation following (A) a change in his or her position with the Corporation (or any Parent or Subsidiary)
which materially reduces his or her duties and responsibilities or the level of management to which he or she reports, (B) a reduction
in his or her level of compensation (including base salary, fringe benefits and target bonus under any corporate-performance based
bonus or incentive programs) by more than fifteen percent (15%) or (C) a relocation of such individual’s place of employment
by more than fifty (50) miles, provided and only if such change, reduction or relocation is effected by the Corporation (or
any Parent or Subsidiary) without the individual’s consent.

 

    	A-3.

    	 

    

 

T.           Misconduct
shall mean the commission of any act of fraud, embezzlement or dishonesty by the Optionee or Participant, any unauthorized
use or disclosure by such person of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary),
or any other intentional misconduct by such person adversely affecting the business or affairs of the Corporation (or any Parent
or Subsidiary) in a material manner. The foregoing definition shall not in any way preclude or restrict the right of the Corporation
(or any Parent or Subsidiary) to discharge or dismiss any Optionee, Participant or other person in the Service of the Corporation
(or any Parent or Subsidiary) for any other acts or omissions, but such other acts or omissions shall not be deemed, for purposes
of the Plan, to constitute grounds for termination for Misconduct.

 

U.           1934
Act shall mean the Securities Exchange Act of 1934, as amended.

 

V.          Non-Statutory
Option shall mean an option not intended to satisfy the requirements of Code Section 422.

 

W.          Optionee
shall mean any person to whom an option is granted under the Discretionary Grant or Automatic Grant Program.

 

X.           Parent
shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation, provided
each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

 

Y.           Participant
shall mean any person who is issued (i) shares of Common Stock, restricted stock units, performance shares, performance units
or other stock-based awards under the Stock Issuance Program or (ii) an incentive bonus award under the Incentive Bonus Program.

 

Z.           Performance
Goals shall mean any of the following performance criteria upon which the vesting of one or more Awards under the Plan
may be based: (1) return on total shareholder equity; (2) earnings per share of Common Stock; (3) net income or operating income
(before or after taxes); (4) earnings before interest, taxes, depreciation and amortization; (5) earnings before interest, taxes,
depreciation, amortization and charges for stock-based compensation, (6) sales or revenue targets; (7) return on assets, capital
or investment; (8) cash flow; (9) market share; (10) cost reduction goals; (11) budget comparisons; (12) measures of customer satisfaction;
(13) any combination of, or a specified increase in, any of the foregoing; (14) new product development or successful completion
of research and development projects; and (15) the formation of joint ventures, research or development collaborations, or the
completion of other corporate transactions intended to enhance the Corporation’s revenue or profitability or enhance its
customer base. In addition, such performance goals may be based upon the attainment of specified levels of the Corporation’s
performance under one or more of the measures described above relative to the performance of other entities and may also be based
on the performance of any of the Corporation’s business units or divisions or any Parent or Subsidiary. Performance goals
may include a minimum threshold level of performance below which no award will be earned, levels of performance at which specified
portions of an award will be earned and a maximum level of performance at which an award will be fully earned. Each applicable
performance goal may be structured at the time of the Award to provide for appropriate adjustments or exclusions for one or more
of the following items: (A) asset impairments or write-downs; (B) litigation or governmental investigation expenses and
any judgments, verdicts and settlements in connection therewith; (C) the effect of changes in tax law, accounting principles
or other such laws or provisions affecting reported results; (D) accruals for reorganization and restructuring programs; (E) any
extraordinary or nonrecurring items; (F) items of income, gain, loss or expense attributable to the operations of any business
acquired by the Corporation or costs and expenses incurred in connection with mergers and acquisitions; (G) items of income, gain,
loss or expense attributable to one or more business operations divested by the Corporation or the gain or loss realized upon the
sale of any such business the assets thereof, (H) accruals for bonus or incentive compensation costs and expenses associated with
cash-based awards made under the Plan or other bonus or incentive compensation plans of the Corporation, and (I) the impact of
foreign currency fluctuations or changes in exchange rates.

 

    	A-4.

    	 

    

 

AA.          Permanent
Disability or Permanently Disabled shall mean the inability of the Optionee or the Participant to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment expected to result in death or to be of
continuous duration of twelve (12) months or more. However, solely for purposes of the Automatic Grant Program, Permanent Disability
or Permanently Disabled shall mean the inability of the non-employee Board member to perform his or her usual duties as a Board
member by reason of any medically determinable physical or mental impairment expected to result in death or to be of continuous
duration of twelve (12) months or more.

 

BB.          Plan
shall mean the Corporation’s Incentive Compensation Plan (formerly known as the 2006 Stock Incentive Plan), as set forth
in this document and as subsequently amended or restated from time to time.

 

CC.          Plan
Administrator shall mean the particular entity, whether the Compensation Committee, the Board or the Secondary Board Committee,
which is authorized to administer the Discretionary Grant, Stock Issuance and Incentive Bonus Programs with respect to one or more
classes of eligible persons, to the extent such entity is carrying out its administrative functions under those programs with respect
to the persons under its jurisdiction.

 

DD.          Plan
Effective Date shall mean the date of the 2006 Annual Meeting at which the Plan was approved by the shareholders.

 

EE.          Predecessor
Plans shall mean (i) the Corporation’s 2001 Stock Option Plan and (ii) the Corporation’s 1995 Stock Option
Plan, as each such Plan is in effect immediately prior to the 2006 Annual Meeting.

 

FF.          Secondary
Board Committee shall mean a committee of one or more Board members appointed by the Board to administer the Discretionary
Grant, Stock Issuance and Incentive Bonus Programs with respect to eligible persons other than Section 16 Insiders.

 

    	A-5.

    	 

    

 

GG.          Section
16 Insider shall mean an officer or director of the Corporation subject to the short-swing profit liabilities of Section
16 of the 1934 Act.

 

HH.          Service
shall mean the performance of services for the Corporation (or any Parent or Subsidiary, whether now existing or subsequently
established) by a person in the capacity of an Employee, a non-employee member of the board of directors or a consultant or independent
advisor, except to the extent otherwise specifically provided in the documents evidencing the option grant or stock issuance. For
purposes of the Plan, an Optionee or Participant shall be deemed to cease Service immediately upon the occurrence of the either
of the following events: (i) the Optionee or Participant no longer performs services in any of the foregoing capacities for the
Corporation or any Parent or Subsidiary or (ii) the entity for which the Optionee or Participant is performing such services ceases
to remain a Parent or Subsidiary of the Corporation, even though the Optionee or Participant may subsequently continue to perform
services for that entity. Service shall not be deemed to cease during a period of military leave, sick leave or other personal
leave approved by the Corporation; provided, however, that should such leave of absence exceed three (3) months, then for
purposes of determining the period within which an Incentive Option may be exercised as such under the federal tax laws, the Optionee’s
Service shall be deemed to cease on the first day immediately following the expiration of such three (3)-month period, unless Optionee
is provided with the right to return to Service following such leave either by statute or by written contract. Except to the extent
otherwise required by law or expressly authorized by the Plan Administrator or by the Corporation’s written policy on leaves
of absence, no Service credit shall be given for vesting purposes for any period the Optionee or Participant is on a leave of absence.

 

II.          Stock
Exchange shall mean the American Stock Exchange, the Nasdaq Global or Global Select Market or the New York Stock Exchange.

 

JJ.          Stock
Issuance Agreement shall mean the agreement entered into by the Corporation and the Participant at the time of issuance
of shares of Common Stock under the Stock Issuance Program.

 

KK.        Stock
Issuance Program shall mean the stock issuance program in effect under Article Three of the Plan.

 

LL.         Subsidiary
shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with the Corporation, provided
each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing
fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such
chain.

 

MM.      10%
Shareholder shall mean the owner of stock (as determined under Code Section 424(d)) possessing more than ten percent (10%)
of the total combined voting power of all classes of stock of the Corporation (or any Parent or Subsidiary).

 

    	A-6.

    	 

    

 

NN.          2010
Annual Meeting shall mean the 2010 annual meeting of the Corporation’s shareholders.

 

OO.          2015
Annual Meeting shall mean the 2015 annual meeting of the Corporation’s shareholders.

 

PP.          Withholding
Taxes shall mean the applicable federal and state income and employment withholding taxes to which the holder of an Award
under the Plan may become subject in connection with the issuance, exercise, vesting or settlement of that Award.

  

    	A-7.Exhibit 10.4

 

Confidential material appearing in this document
has been omitted and filed separately with the Securities and Exchange Commission in accordance with Rule 24b-2, promulgated under
the Securities and Exchange Act of 1934, as amended. Omitted information has been replaced with asterisks.

 

AMENDED AND RESTATED EQUIPMENT LEASE AGREEMENT

 

This AMENDED AND RESTATED EQUIPMENT LEASE
AGREEMENT (this “Agreement”) is made and entered into on the date of full execution by and between GK FINANCING,
LLC, a California limited liability company (“GKF”), and the BOARD OF TRUSTEES OF THE UNIVERSITY OF ARKANSAS
on behalf of THE UNIVERSITY OF ARKANSAS FOR MEDICAL SCIENCES (“Hospital”), with reference to the following facts:

 

Recitals: 

 

A.           Hospital
and GKF entered into an Equipment Lease Agreement dated October 29, 1998 (the “1998 Lease Agreement”), which was amended
by (i) a certain Amendment to Equipment Lease Agreement dated effective as of September 15, 2005, (ii) a certain Amendment Two
to Equipment Lease Agreement dated effective as of October 31, 2007, and (iii) a certain Amendment Three to Equipment Lease Agreement
dated effective as of June 11, 2010 (the 1998 Lease Agreement, as so amended by the foregoing amendments, is referred to herein
as the "Original Lease").

 

B.           Pursuant
to the Original Lease, GKF leases to Hospital a Leksell Gamma Knife Perfexion model (the “Equipment”), which GKF acquired
from by Elekta Instruments, Inc., a Georgia corporation (“Elekta”), pursuant to that certain Agreement dated October
31, 2006, together with the Exhibits attached thereto between GKF and Elekta (collectively, the “Purchase Agreement”).
GKF’s lease of the Equipment to Hospital pursuant to the Original Lease shall continue upon the terms, covenants, conditions
and agreements set forth in this Agreement.

 

C.           Hospital
and GKF desire to amend and restate the Original Lease as set forth in this Agreement. Upon the execution of this Agreement, the
Original Lease shall be superseded by this Agreement and shall no longer have any force or effect from and after the Effective
Date.

 

Agreement: 

 

NOW, THEREFORE, in consideration of the
mutual covenants, conditions and agreements set forth herein, and for such other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.          Lease.
Subject to and in accordance with the covenants and conditions set forth in this Agreement, GKF hereby leases to Hospital, and
Hospital hereby leases from GKF, the Equipment. It is acknowledged that the Equipment leased to Hospital pursuant to this Agreement
is a Leksell Gamma Knife Perfexion model, including all hardware and software related thereto.

 

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2.          LGK
Agreement. Simultaneously with the execution of the 1998 Lease Agreement, Hospital and Elekta entered into that certain LGK
Agreement (the “LGK Agreement”), a copy of which is attached hereto as Exhibit 1. Hospital shall perform, satisfy and
fulfill all of its obligations arising under the LGK Agreement when and as required thereunder. Hospital acknowledges that GKF
is a third party beneficiary of the LGK Agreement and, in that capacity, GKF shall be entitled to enforce Hospital’s performance,
satisfaction and fulfillment of its obligations thereunder.

 

3.          Term
of the Agreement. It is acknowledged that the term of the Original Lease is currently set to expire on September 27, 2016.
The term of this Agreement (the “Term”) shall commence on the “Effective Date”, the date of the performance
of the first clinical Gamma Knife procedure (“First Procedure Date”) performed after the “Reload” of the
Equipment pursuant to 6.5 below and, unless earlier terminated or extended in accordance with the provisions of this Agreement,
shall continue until December 31, 2021. . Notwithstanding the Original Lease being superseded by this Agreement, Hospital’s
obligation to make the Lease Payments to GKF for the Equipment described in Section 8 below shall continue unabated, commencing
on the Effective Date and continuing for the Term of this Agreement.

 

4.          Certificate
of Need; User License. Hospital maintains and shall continue to hold a User License from the Nuclear Regulatory Commission
and, if necessary, from the applicable state agency authorizing it to take possession of and maintain the Cobalt supply required
in connection with the use of the Equipment during the term of this Agreement. Hospital also maintains and shall continue to hold
all other licenses, permits, approvals, consents and authorizations which may be required by state or local governmental or other
regulatory agencies for the charging of the Equipment with its Cobalt supply, the conduct of acceptance tests with respect to the
Equipment, and the use of the Equipment during the Term, as more fully set forth in Article 2.1 of the LGK Agreement.

 

5.          Delivery
of Equipment; Site.

 

5.1           Pursuant
to the Original Lease, the Equipment was delivered to Hospital at 4301 W. Markham, Little Rock, Arkansas 72205 (the “Site”)
on or prior to the delivery date agreed upon by Hospital and Elekta in the LGK Agreement. GKF makes no representations or warranties
concerning delivery of the Equipment to the Site or the actual date thereof.

 

5.2           Subject
to Section 6 below, Hospital, at its cost and expense, shall continue to provide a safe, convenient and properly prepared Site
for the Equipment in accordance with Elekta’s guidelines, specifications, technical instructions and site planning criteria
(which site planning criteria are attached as Exhibit B to the LGK Agreement) (collectively the “Site Planning Criteria”).
The location of the Site has been approved by GKF.

 

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6.          Site
Preparation, Installation and Cobalt Reloading of the Equipment.

 

6.1           Pursuant
to the Original Lease, GKF, at its cost and expense, prepared all plans and specifications required to prepare, construct and improve
the Site for the installation, use and operation of the Equipment during the Term. The plans and specifications (i) were, pursuant
to the Original Lease, approved by Hospital, which approval was not unreasonably withheld or delayed; (ii) complied and shall continue
to comply in all respects with the Site Planning Criteria; and (iii) to the extent required by applicable law and pursuant to the
Original Lease, were submitted to the State of Arkansas Health Department and the State of Arkansas Building Services Office for
their review. Pursuant to the Original Lease, GKF, at its cost and expense, obtained all permits, certifications, approvals or
authorizations required by applicable federal, state or local laws, rules or regulations necessary to prepare, construct and improve
the Site as provided above.

 

6.2           Pursuant
to the Original Lease, GKF, at its cost and expense, prepared, constructed and improved the Site as necessary for the installation,
use and operation of the Equipment during the Term, including, without limitation, providing all temporary or permanent shielding
required for the charging of the Equipment with the Cobalt supply and for its subsequent use, selecting and constructing a proper
foundation for the Equipment and the temporary or permanent shielding, aligning the Site for the Equipment, and installing all
electrical systems and other wiring required for the Equipment. Pursuant to the Original Lease and in connection with the construction
of the Site, GKF, at its cost and expense, selected, purchased and installed all radiation monitoring equipment, devices, safety
circuits and radiation warning signs required at the Site in connection with the use and operation of the Equipment. GKF shall
be responsible for the shipment, storage, placement and removal of all Cobalt and depleted Cobalt, provided that, if Hospital
elects to purchase the Equipment pursuant to Section 19.2 below, Hospital shall be solely responsible for such duties following
its election. Any depleted Cobalt supply shall be properly disposed of by GKF at such time as GKF shall deem necessary, in GKF’s
sole and absolute judgment.

 

6.3           In
addition to construction and improvement of the Site and pursuant to the Original Lease, GKF, at its cost and expense, was responsible
for the installation of (and installed) the Equipment at the Site, including the positioning of the Equipment on its foundation
at the Site in compliance with the Site Planning Criteria.

 

6.4           During
the Term, GKF, at its cost and expense, shall maintain the Site in a good working order, condition and repair, reasonable wear
and tear excepted.

 

6.5           Cobalt
Reload of the Equipment. GKF, at GKF’s cost and expense, shall reload the Equipment with new cobalt-60 that meets the
manufacturer’s radioactivity level specifications (the “Reload”), subject to the following additional terms and
conditions:

 

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(a)          Scheduling
and Process for the Reload. The Reload shall be performed at the Site and shall include any required installation and rigging.
Subject to scheduling availability, GKF shall use its commercially reasonable efforts to perform the Reload on or before June 2015;
provided that the Reload shall be performed only after all necessary and appropriate licenses, permits, approvals, consents
and authorizations, including, without limitation, the proper handling of the cobalt-60 (collectively, the “Permits”),
have been obtained by Hospital at Hospital’s sole cost and expense (other than any filing or registration fees which shall
be paid by GKF). The timing and procedure for such Reload shall be as mutually agreed upon between the parties. Notwithstanding
anything to the contrary contained in this Agreement, GKF makes no representation or warranty to Hospital concerning the Reload,
and GKF shall have no obligation or liability to pay any damages to Hospital resulting therefrom, including, without limitation,
any lost revenues or profits during the period of time that the Equipment is unavailable to perform procedures due to the Reload
process.

 

(b)          Hospital
Personnel and Services. Upon request and as required by GKF, Hospital, at Hospital’s cost and expense, shall provide
GKF with Hospital personnel (including Hospital’s physicists) and services in connection with the Reload, among other things,
to oversee, supervise and assist with construction and compliance with local, state and federal regulatory requirements and with
nuclear regulatory compliance issues and the calibration of the Equipment. Hospital shall not be entitled to reimbursement for
its respective personnel costs, internal costs or overhead.

 

(c)          No
Additional Responsibilities. It is understood by the parties that GKF is not responsible for any upgrades, hardware, cobalt
reloading, software changes and/or other modifications to the Equipment, except as expressly set forth herein or otherwise agreed
upon in writing by Hospital and GKF.

 

7.          Marketing
Support. GKF shall coordinate its Gamma Knife marketing plan with Hospital, which marketing plan shall be subject to the approval
of Hospital.

 

8.          Lease
Payments.

 

8.1           In
consideration and as compensation to GKF for (i) the lease of the Equipment by GKF to Hospital pursuant to this Agreement;
(ii) the preparation by GKF of all plans and specifications required to prepare, construct and improve the Site for the installation,
use and operation of the Equipment; (iii) the preparation, construction and improvement of the Site as necessary for the installation,
use and operation of the Equipment; (iv) the installation and Reload by GKF of the Equipment at the Site; and (v) the maintenance
by GKF of the Site in a good working order, condition and repair, *. As used herein:

 

(1)          “Technical Component
Collections” means the *.

 

(2)          “Global Fee Component”
means *. Hospital shall be solely responsible for the negotiation of “global fee” services and for the billing and
collection of such fees; provided that any case management or “global” fees must be approved in writing by GKF
prior to their implementation.

 

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(3)          Hospital’s “Direct
Cost Component” means *.

 

(4)           For
purposes of this Section 8 only, "Procedure" means any treatment that involves stereotactic, external, single fraction,
conformal radiation, commonly called radiosurgery, that may include one or more isocenters during the patient treatment session,
delivered to any site(s) superior to the foramen magnum, which Procedure is performed by Hospital, its representatives, affiliates,
joint ventures and/or partnerships, on an inpatient or outpatient basis, or “under arrangement” (as used in the Medicare
billing context), using any of the Equipment and/or any other equipment or devices that are used in lieu of, or as an alternative
to, the Equipment, and includes, without limitation, any and all related treatment planning and delivery, imaging and other ancillary
services.

 

On each anniversary date of this Agreement, the parties shall meet
to review Hospital’s Direct Cost Component, and any adjustments thereto must be mutually agreed upon by the parties in writing.
Upon request by GKF, Hospital shall promptly furnish GKF with written documentation substantiating such Direct Cost Component.
If no Procedures are performed by Hospital or any other person utilizing the Equipment, no Lease Payments shall be owing by Hospital
to GKF.

 

8.2           Payment
by Hospital to GKF of the Lease Payments shall be made within ten (10) days following receipt by Hospital of the reimbursement
for the technical component of such Procedures from payor sources, which Lease Payments shall continue for a period of eighteen
(18) months following the termination or expiration of this Agreement (the "Collections Run-Out Period") with respect
to any Technical Components Collections received by Hospital or its representatives or affiliates during the Collections Run-Out
Period pertaining to any and all Procedures with dates of service prior to the termination or expiration of this Agreement. To
facilitate Hospital’s billing and collection for Gamma Knife procedures performed, within two (2) business days after any
Gamma Knife procedure is performed, GKF shall cause the administrative support individual referenced in Section 11.3 below to provide
Hospital with written confirmation of the names of the patients treated. Hospital shall submit claims for reimbursement to the
appropriate payors for each Procedure within forty-five (45) days after the patient receiving the treatment is discharged. All
or any portion of any Lease Payment which is not paid in full within sixty (60) days after its due date shall bear interest at
the annual rate of five percent (5%) in excess of the Federal Reserve Discount Rate then in effect as published in the Wall Street
Journal or similar publication (or the maximum monthly interest rate permitted to be charged by law between an unrelated, commercial
borrower and lender, if less) until the unpaid Lease Payment, together with all accrued interest thereon is paid in full. If GKF
shall at any time accept a Lease Payment from Hospital after it shall become due, such acceptance shall not constitute or be construed
as a waiver of any or all of GKF’s rights under this Agreement, including the rights of GKF set forth in Section 20 hereof.

 

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8.3           Within
thirty (30) days after the close of each month, Hospital shall provide GKF with a written report indicating the status of billings
and collections for each Procedure performed during that month, including, without limitation, the amount of the claim submitted
and the amount received for each such procedure. Upon request by GKF, Hospital shall furnish to GKF information regarding reimbursement
rates from any or all payor sources for Procedures (applicable to procedures performed either on an inpatient or outpatient basis).
If such reimbursement rates should change at any time or from time to time after the date hereof, in each instance, Hospital shall
provide written notice thereof to GKF within five (5) days of Hospital receiving notice thereof.

 

8.4           Within
ten (10) days after Hospital’s receipt of written request by GKF, GKF shall have the right to audit Hospital’s books
and records to verify the number of Procedures performed and Technical Component Collections received by Hospital or its representatives
or affiliates, utilizing the Equipment and any other equipment or devices, and Hospital shall provide GKF (or cause GKF to be provided)
with access to such books and records; provided that any patient names or identifiers shall not be disclosed.

 

8.5           The
provisions of this Section 8 shall survive the termination or expiration of this Agreement.

 

9.          Use
of the Equipment.

 

9.1           The
Equipment shall be used by Hospital only at the Site and shall not be removed therefrom. Hospital shall use the Equipment only
in the regular and ordinary course of Hospital’s business operations and only within the capacity of the Equipment as determined
by Elekta’s specifications. Hospital shall not use nor permit the Equipment to be used in any manner nor for any purpose
which, in the opinion of Elekta or GKF, the Equipment is not designed or reasonably suitable.

 

9.2           This
is an agreement of lease only. Nothing herein shall be construed as conveying to Hospital any right, title or interest in or to
the Equipment, except for the express leasehold interest granted to Hospital for the Term. All Equipment shall remain personal
property (even though said Equipment may hereafter become attached or affixed to real property) and the title thereto shall at
all times remain exclusively in GKF.

 

9.3           During
the Term, upon the request of GKF, Hospital shall promptly affix to the Equipment in a prominent place, or as otherwise directed
by GKF, labels, plates, insignia, lettering or other markings supplied by GKF indicating GKF’s ownership of the Equipment,
and shall keep the same affixed for the entire Term. Hospital hereby authorizes GKF to cause this Agreement or any statement or
other instrument showing the interest of GKF in the Equipment to be filed or recorded, or refiled or re-recorded, with all governmental
agencies considered appropriate by GKF, at GKF’s cost and expense. Hospital also shall promptly execute and deliver, or cause
to be executed and delivered, to GKF any statement or instrument requested by GKF for the purpose of evidencing GKF’s interest
in the Equipment, including financing statements and waivers with respect to rights in the Equipment from any owners or mortgagees
of any real estate where the Equipment may be located.

 

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9.4           At
Hospital’s cost and expense, Hospital shall (a) protect and defend GKF’s ownership of and title to the Equipment from
and against all persons claiming against or through Hospital, (b) at all times keep the Equipment free from any and all liens,
encumbrances, attachments, levies, executions, burdens, charges or legal processes imposed against Hospital, and (c) give GKF immediate
written notice of any matter described in clause (b).

 

10.         Additional
Covenants of Hospital. In addition to the other covenants of Hospital contained in this Agreement, Hospital shall, at its cost
and expense:

 

10.1         Provide
properly trained professional, technical and support personnel and supplies required for the proper performance of Gamma Knife
procedures utilizing the Equipment. In this regard, Hospital shall maintain on staff a minimum of two (2) Gamma Knife trained teams,
each comprised of a neurosurgeon, radiation oncologist and a medical physicist.

 

10.2         Direct,
supervise and administer the diagnosis, treatment and care of all patients who receive Gamma Knife procedures.

 

10.3         In
consultation with GKF, provide reasonable and customary marketing support in terms of administrative and physician support for
the Gamma Knife service to be operated by the Hospital.

 

10.4         Keep
the Equipment and the Site fully protected, secure and free from unauthorized access or use by any person.

 

11.         Additional
Covenants of GKF. In addition to the other covenants of GKF contained in this Agreement, GKF, at its cost and expense, shall:

 

11.1         Use
its best efforts to require Elekta to meets its contractual obligations to GKF and Hospital upon delivery of the Equipment and
put the Equipment, as soon as reasonably possible, into good, safe and serviceable condition and fit for its intended use in accordance
with the manufacturer’s specifications, guidelines and field modification instructions.

 

11.2         Cause
Hospital to enjoy the use of the Equipment, free of the rights of any other persons except for those rights reserved by GKF or
granted to Elekta under the LGK Agreement or the Purchase Agreement.

 

11.3         Furnish
an individual who shall be located at the Site and who shall provide administrative and marketing support services at the Site.

 

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12.         Maintenance
of Equipment; Damage or Destruction of Equipment.

 

12.1         During
the Term and except as otherwise provided in this Agreement, GKF, at its cost and expense, shall (a) maintain the Equipment in
good operating condition and repair, reasonable wear and tear excepted, and (b) subject to Hospital’s compliance with its
obligations under the LGK Agreement and under Sections 4, 5, 9, 10, 12, and 16 hereunder, cause the equipment to be in compliance
with all applicable state and federal regulations. A schedule of the maintenance to the Equipment to be performed shall be delivered
by GKF to Hospital. Hospital shall promptly notify GKF in the event of any damage or destruction to the Equipment or of any required
maintenance or repairs to the Equipment. GKF shall pursue all remedies available to it under any warranties made by Elekta with
respect to the Equipment so that the Equipment will be free from defects in design, materials and workmanship and will conform
to Elekta’s technical specifications concerning the Equipment.

 

12.2         GKF
and Elekta shall have the right to access the Equipment for the purpose of inspection and the performance of repairs at all reasonable
times, upon reasonable advance notice and with a minimum of interference or disruptions to Hospital’s regular business operations.

 

12.3         Hospital
shall be liable for any damage to or destruction of the Equipment caused by the misuse, improper use, or other intentional and
wrongful or negligent acts or omissions of Hospital’s officers, employees, agents, contractors and physicians. In the event
the Equipment is damaged as a result of the misuse, improper use, or other intentional and wrongful or negligent acts or omissions
of Hospital’s officers, employees, agents, contractors and physicians, to the extent such damage is not covered by any warranties
or insurance, GKF may service or repair the Equipment as needed and the cost thereof shall be paid by Hospital to GKF immediately
upon written request; provided that, if GKF’s charges and costs for such service or repair are not paid in full by
Hospital within sixty (60) days after GKF’s request therefor, in addition to such charges and costs, Hospital shall pay interest
thereon to GKF until paid in full at the annual rate of five percent (5%) in excess of the Federal Reserve Discount Rate then in
effect, as published in the Wall Street Journal or similar publication (or the maximum monthly interest rate permitted to be charged
by law between an unrelated, commercial borrower and lender, if less) and costs incurred by GKF in collecting such amount from
Hospital (other than attorneys’ fees). Any work so performed by GKF shall not deprive GKF of any of its rights, remedies
or actions against Hospital for such damages.

 

12.4         If
the Equipment is rendered unusable as a result of any physical damage to or destruction of the Equipment, Hospital shall give GKF
written notice thereof. GKF shall determine, within thirty (30) days after it is given written notice of such damage or destruction,
whether the Equipment can be repaired. Subject to Section 12.3 above, in the event GKF determines that the Equipment cannot be
repaired, at the election of GKF in GKF’s sole and absolute discretion, (a) GKF, at its cost and expense, may replace the
Equipment as soon as reasonably possible taking into account the availability of replacement equipment from Elekta, Elekta’s
other then existing orders for equipment, and the then existing limitations on Elekta’s manufacturing capabilities, and (b)
in such event, this Agreement shall continue in full force and effect as though such damage or destruction had not occurred. If
GKF elects not to replace the Equipment, GKF shall provide written notice of such election to Hospital, and this Agreement shall
terminate on the date that is ninety (90) days following the date of such notice. In the event GKF determines that the Equipment
can be repaired, subject to Section 12.3 above, GKF shall cause the Equipment to be repaired as soon as reasonably possible thereafter.
Hospital shall fully cooperate with GKF to effect the replacement of the Equipment or the repair of the Equipment (including, without
limitation, providing full access to the Site) following the damage or destruction thereof.

 

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13.         [Intentionally
omitted.]

 

14.         Financing
of Equipment by GKF. GKF, in its sole discretion, may finance the Equipment. Financing may be in the form of an installment
loan, a capitalized lease or other commercially available debt or financing instrument. If GKF finances the Equipment through an
installment loan, GKF shall be required to provide the Equipment as collateral for the loan. If GKF finances the Equipment through
a capitalized lease, title shall vest with the lessor until such time as GKF exercises its buy-out option under the lease, if any.
If required by the lender, lessor or other financing entity (the “Lender”), GKF may assign its interest under this
Agreement as security for the financing. Hospital’s interest under this Agreement shall be subject to the interests of the
Lender and Hospital shall execute such documentation as the Lender shall reasonably require in furtherance of this Section 14.

 

15.         Equipment
Operational Costs. Except as otherwise expressly provided in this Agreement, Hospital shall be responsible for all costs and
expenses incurred, directly or indirectly, in connection with the operation and use of the Equipment during the Term, including,
without limitation, the costs and expenses required to provide trained physicians, professionals, and technical and support personnel,
supplies and other items required to properly operate the Equipment and perform Gamma Knife procedures. GKF shall be responsible
for all costs and expenses for all utilities required for the operation and use of the Equipment.

 

16.         Taxes.
GKF shall pay all sales or use taxes imposed or assessed in connection with the purchase of the Equipment and all personal property
taxes imposed, levied or assessed on the ownership and possession of the Equipment during the Term. All other taxes, assessments,
licenses or other charges imposed, levied or assessed on the Equipment during the Term shall be paid by Hospital before the same
shall become delinquent, whether such taxes are assessed or would ordinarily be assessed against GKF or Hospital; provided, however,
Hospital shall not be required to pay any federal, state or local income, franchise, corporation or excise taxes imposed upon GKF’s
net income realized from the lease of the Equipment. In case of a failure by Hospital to pay any taxes, assessments, licenses or
other charges when and as required under this Section, GKF may (in GKF’s sole and absolute discretion) pay all or any part
of such taxes, in which event the amount paid by GKF shall be immediately payable by Hospital to GKF upon written request; provided
that, if GKF is not repaid in full by Hospital within sixty (60) days after GKF’s request therefor, in addition to the repayment
of the amounts paid by GKF, Hospital shall pay interest thereon to GKF until paid in full at the annual rate of five percent (5%)
in excess of the Federal Reserve Discount Rate then in effect, as published in the Wall Street Journal or similar publication (or
the maximum monthly interest rate permitted to be charged by law between an unrelated, commercial borrower and lender, if less)
and costs incurred by GKF in collecting such amount from Hospital (other than attorneys’ fees).

 

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17.         No
Warranties by GKF. Hospital warrants that, as of the date the first Gamma Knife procedure was performed at the Site using the
Equipment (the "First Procedure Date"), it has (a) thoroughly inspected the Equipment, (b) determined that the Equipment
is consistent with the size, design, capacity and manufacture selected by it, and (c) satisfied itself that to the best of its
knowledge the Equipment is suitable for Hospital’s intended purposes and is good working order, condition and repair. GKF
SUPPLIES THE EQUIPMENT UNDER THIS AGREEMENT IN ITS “AS IS” CONDITION. GKF, NOT BEING THE MANUFACTURER OF THE EQUIPMENT
OR THE MANUFACTURER’S AGENT, MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESSED OR IMPLIED, AS TO THE EQUIPMENT’S
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR USE, DESIGN, CONDITION, DURABILITY, CAPACITY, MATERIAL OR WORKMANSHIP OR AS
TO PATENT INFRINGEMENT OR THE LIKE. GKF shall not be liable for any direct, indirect and consequential losses or damages suffered
by Hospital or by any other person, and Hospital expressly waives any right to hold GKF liable hereunder for, any claims, demands
and liabilities arising out of or in connection with the design, manufacture, possession or operation of the Equipment, including
injury to persons or property resulting from the failure of, defective or faulty design, operation, condition, suitability or use
of the Equipment, or with the accuracy, completeness or suitability of the Site Planning Criteria, including GKF’s good faith
compliance therewith. All warranty or other similar claims with respect to the Equipment or the Site Planning Criteria shall be
made by Hospital solely and exclusively against persons other than GKF, including Elekta or any other manufacturers or suppliers.
In this regard and with prior written approval of GKF, Hospital may, in GKF’s name, but at Hospital’s sole cost and
expense, enforce all warranties, agreements or representations, if any, which may have been made by Elekta or manufacturers, suppliers
or other third parties regarding the Equipment to GKF or Hospital. GKF shall not be responsible for the delivery, installation
or operation of the Equipment or for any delay or inadequacy of any or all of the foregoing.

 

18.         Termination
for Economic Justification.

 

18.1         If,
after each twelve (12) month period following the Effective Date, based upon the utilization of the Equipment and other factors
considered relevant by GKF in the exercise of its discretion, within a reasonable period of time after GKF’s written request,
Hospital does not provide GKF with a reasonable economic justification to continue this Agreement and the provision of Gamma Knife
services at the Hospital, then and in that event, GKF shall have the option to terminate this Agreement by giving a written notice
thereof to Hospital not less than ninety (90) days prior to the effective date of the termination designated in GKF’s written
notice.

 

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18.2         Notwithstanding
the provisions of Section 18.1, if at any time during the term of this Agreement, Hospital is suspended or terminated from participation
in the Medicare program, GKF shall have the option to terminate this Agreement immediately by giving written notice thereof to
Hospital.

 

18.3         As
a result of any termination of this Agreement pursuant to this Section 18, GKF may enter upon the Site and remove the Equipment
and any improvements made by GKF to the Site without liability of any kind or nature for so doing or GKF may demand that Hospital
remove and return the Equipment and such improvements to GKF, all at GKF’s sole cost and expense. Notwithstanding the foregoing,
Hospital may elect in its sole discretion to purchase GKF’s Site improvements by giving GKF notice of Hospital’s election
within five (5) days following the receipt by Hospital of GKF’s written notice of termination. The purchase price (the “TI
Purchase Price”) for such Site improvements shall be equal to the actual cost of such improvements incurred by GKF which
are then unamortized as of the effective date of such termination. Amortization shall be straight-line over a period of fifteen
(15) years corresponding with the Term of this Agreement. As an example, if GKF elected to terminate this Agreement pursuant to
Section 18.1 on the date which is five years after the First Procedure Date, then the TI Purchase Price on such termination would
be 10/15s of the actual cost of the Site improvements. The costs of such improvements shall be evidenced by invoices and other
documentation, and shall include any financing charges or costs. Within five (5) days following GKF’s receipt of Hospital’s
election to purchase the Site improvements, GKF shall inform Hospital of the amount of the TI Purchase Price as determined in accordance
with this Section 18.3, and shall provide Hospital upon request with supporting documentation therefor. Payment of the TI Purchase
Price shall be made by Hospital to GKF within five (5) days following GKF’s determination of the TI Purchase Price.

 

19.         Options
to Extend Agreement. As of the end of the Term, Hospital shall have the option either to:

 

19.1         Extend
the Term of this Agreement for a specified period of time and upon such other terms and conditions as may be agreed upon in writing
by GKF and Hospital taking into account the use (e.g., number of Gamma Knife procedures, etc.) of the Equipment at the Site during
the initial Term and other factors deemed relevant by the parties;

 

19.2         Purchase
the Equipment from GKF for cash (or other immediately available federal funds) at its then fair market value (based upon the “in
use” value of the Equipment); or

 

19.3         Terminate
this Agreement as of the expiration of the Term.

 

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Hospital shall exercise one (1) of the three (3) options referred
to above by giving an irrevocable written notice thereof to GKF at least nine (9) months prior to the expiration of the Term. Any
such notice shall be sufficient if it states in substance that Hospital elects to exercise its option and states which of the three
(3) options referred to above Hospital is exercising. If Hospital fails to exercise the option granted herein at least nine (9)
months prior to the expiration of the Term, the option shall lapse and this Agreement shall expire as of the end of the Term. Further,
if Hospital exercises the option specified in Section 19.1 above and the parties are unable to mutually agree upon the length of
the extension of the Term or any other terms or conditions applicable to such extension prior to the expiration of the Term, this
Agreement shall expire as of the end of the initial Term.

 

20.         Events
of Default by Hospital and Remedies.

 

20.1         The
occurrence of any one of the following shall constitute an event of default under this Agreement (an “Event of Default”):

 

20.1.1           Hospital
fails to pay any Lease Payment when due pursuant to Paragraph 8 above and such failure continues for a period of thirty (30) days
after written notice thereof is given by GKF or its assignee to Hospital; however, if Hospital cures the payment default within
the applicable thirty (30) day period, such default shall not constitute an Event of Default.

 

20.1.2           Hospital
attempts to remove, sell, transfer, encumber, assign, sublet or part with possession of the Equipment or any items thereof, except
as expressly permitted herein.

 

20.1.3           Hospital
fails to observe or perform any of its covenants, duties or obligations arising under this Agreement or the LGK Agreement and such
failure continues for a period of thirty (30) days after written notice thereof by GKF to Hospital; however, if Hospital cures
the default within the applicable thirty (30) day period or if the default reasonably requires more than thirty (30) days to cure,
Hospital commences to cure the default during the initial thirty (30) day period and Hospital diligently completes the cure as
soon as reasonably possible following the end of the thirty (30) day period, such default shall not constitute an Event of Default.

 

20.1.4           Hospital
ceases doing business as a going concern, makes an assignment for the benefit of creditors, admits in writing its inability to
pay its debts as they become due, files a voluntary petition in bankruptcy, is adjudicated a bankrupt or an insolvent, files a
petition seeking for itself any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar arrangement
under any present or future statute, law or regulation or files an answer admitting the material allegations of a petition filed
against it in any such proceeding, consents to or acquiesces in the appointment of a trustee, receiver, or liquidator of it or
of all or any substantial part of its assets or properties, or it or its shareholders shall take any action looking to its dissolution
or liquidation

 

20.1.5           Within
sixty (60) days after the commencement of any proceedings against Hospital seeking reorganization, arrangement, readjustment, liquidation,
dissolution or similar relief under any present or future statute, law or regulation, such proceedings shall not have been dismissed,
or if within thirty (30) days after the appointment without Hospital’s consent or acquiescence of any trustee, receiver or
liquidator of it or of all or any substantial part of its assets and properties, such appointment shall not be vacated.

 

    	- 12 -

    	 

    

  

20.2         Upon
the occurrence of an Event of Default with respect to Hospital, GKF may at its option do any or all of the following:

 

20.2.1           By
written notice to Hospital, immediately terminate this Agreement as to the Equipment, wherever situated. As a result of the termination,
GKF may enter upon the Site and remove the Equipment and any improvements made by GKF to the Site without liability of any kind
or nature for so doing or GKF may demand that Hospital remove and return the Equipment and such improvements to GKF, all at Hospital’s
sole cost and expense.

 

20.2.2           Under
Article 12, Section 12 of the Arkansas Constitution, UAMS as a sovereign entity, may not enter into a covenant or agreement to
hold a party harmless or to indemnify from prospective damages. The obligation of UAMS to reimburse GKF and its affiliates with
respect to any loss, expense, damage, liability, claims or demands, either at law or in equity, for actual or alleged personal
injuries or property damage caused by UAMS and its employees, agents, subcontractors, or volunteers, and under arising out of the
terms of the Agreement, may be pursued only by GKF and its affiliates in a proceeding before the Arkansas State Claims Commission.
In any such proceeding or in any court proceeding commenced by the injured party or parties, UAMS agrees with GKF and its affiliates
that: (1) it will cooperate with GKF and its affiliates in the defense of any action or claim brought against GKF and its affiliates
seeking the foregoing damages or relief; (2) it will in good faith cooperate with GKF and its affiliates should GKF and its affiliates
present any claim of the foregoing nature against UAMS to the Claims Commission of the State of Arkansas; (3) it will not take
any action to frustrate or delay the prompt hearing on claims of the foregoing nature by the said Claims Commission (including,
without limitation, seeking to invalidate this Agreement), and will make reasonable efforts to expedite said hearing; provided,
however UAMS reserves the right to assert in good faith all claims and defenses available to it in any proceeding in said Claims
Commission or other appropriate forum. The obligations of this paragraph shall survive the expiration or termination of the Agreement.
This Agreement shall not be construed as or constitute a waiver of sovereign immunity of the State of Arkansas or its entities
thereof, including UAMS; nor shall it constitute a waiver of the legal requirements for filing a claim against UAMS or the legal
requirement that any and all claims against the State of Arkansas, its entities, including UAMS must be filed with the Arkansas
State Claims Commission. In furtherance of the foregoing, upon the occurrence of an Event of Default with respect to Hospital,
GKF shall have the right to recover damages as may be awarded by the Arkansas State Claims Commission for the loss of the bargain
represented by this Agreement. For purposes of determining such damages, the parties agree that the following methodology constitutes
a reasonable method to calculate GKF’s damages resulting from an Event of Default under the circumstances existing as of
the date of this Agreement, and shall recommend its adoption by the Arkansas State Claims Commission, specifically: (a) the amount
of such damages shall be equal to the present value of the unpaid estimated future Lease Payments to be made by Hospital to GKF
through the end of the Term discounted at the rate of nine percent (9%); and (b) the unpaid estimated future Lease Payments shall
be based on the historical trend of payments made by Hospital to GKF hereunder taking into account known factors which could impact
the historical trend through the end of the Term. GKF shall use reasonable commercial efforts to mitigate its damages by attempting
to sell or lease the Equipment; provided that (i) GKF shall not be obligated to give preference to the sale or lease of
the Equipment over the sale, lease or other disposition of similar equipment or improvements owned or leased by GKF, (ii) GKF shall
have no obligation to sell or lease any improvements made by GKF to the Site, and (iii) GKF’s inability in good faith to
mitigate damages shall not limit or otherwise affect the foregoing methodology for determining damages as set forth in this Section.

 

    	- 13 -

    	 

    

  

20.2.3           Sell,
dispose of, hold, use or lease the Equipment or any improvements made by GKF to the Site, as GKF in its sole and absolute discretion
may determine (and GKF shall not be obligated to give preference to the sale, lease or other disposition of the Equipment or improvements
over the sale, lease or other disposition of similar Equipment or improvements owned or leased by GKF). Notwithstanding the foregoing,
Hospital may elect in its sole discretion to purchase GKF’s Site improvements by giving GKF notice of Hospital’s election
within five (5) days following the receipt by Hospital of GKF’s written notice of termination. The purchase price for such
Site improvements shall be equal to the TI Purchase Price (as defined and calculated in accordance with Section 18.3 above). Within
five (5) days following GKF’s receipt of Hospital’s election to purchase the Site improvements, GKF shall inform Hospital
of the amount of the TI Purchase Price and shall provide Hospital upon request with supporting documentation therefor. Payment
of the TI Purchase Price shall be made by Hospital to GKF within five (5) days following GKF’s determination of the TI Purchase
Price. The TI Purchase Price shall be in addition to any other damages, rights or remedies which GKF may be entitled to as a result
of such termination.

 

20.2.4           Exercise
any other right or remedy which may be available to GKF under the Uniform Commercial Code or any other applicable law or proceed
by appropriate court action, without affecting GKF’s title or right to possession of the Equipment or improvements, to enforce
the terms hereof or to recover damages for the breach hereof or to cancel this Agreement as to the Equipment.

 

In addition to the foregoing remedies, Hospital agrees to be responsible
for all costs and expenses incurred as a result of the Event of Default (other than attorneys’ fees).

 

20.3         Upon
termination of this Agreement or the exercise of any other rights or remedies under this Agreement or available under applicable
law following an Event of Default, Hospital shall, without further request or demand, pay to GKF all Lease Payments and other sums
owing under this Agreement. The rights and remedies afforded GKF under this Agreement shall be deemed cumulative and not exclusive,
and shall be in addition to any other rights or remedies to GKF provided by law or in equity.

 

    	- 14 -

    	 

    

  

21.         Events
of Default by GKF and Remedies.

 

21.1         The
occurrence of any one of the following shall constitute an Event of Default hereunder:

 

21.1.1           GKF
shall fail to observe or perform any of its covenants, duties or obligations arising under this Agreement and such failure shall
continue for a period of thirty (30) days after written notice thereof is given by Hospital to GKF; however, if GKF cures the default
within the applicable thirty (30) day period or if the default reasonably requires more than thirty (30) days to cure, GKF commences
to cure the default during the initial thirty (30) day period and GKF diligently completes the cure as soon as reasonably possible
following the end of the thirty (30) day period, such default shall not constitute an Event of Default.

 

21.1.2           GKF
ceases doing business as a going concern, makes an assignment for the benefit of creditors, admits in writing its inability to
pay its debts as they become due, files a voluntary petition in bankruptcy, is adjudicated a bankrupt or an insolvent, files a
petition seeking for itself any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar arrangement
under any present or future statute, law or regulation or files an answer admitting the material allegations of a petition filed
against it in any such proceeding, consents to or acquiesces in the appointment of a trustee, receiver, or liquidator of it or
of all or any substantial part of its assets or properties, or it or its shareholders shall take any action looking to its dissolution
or liquidation.

 

21.1.3           Within
sixty (60) days after the commencement of any proceedings against GKF seeking reorganization, arrangement, readjustment, liquidation,
dissolution or similar relief under any present or future statute, law or regulation, such proceedings shall not have been dismissed,
or if within thirty (30) days after the appointment without GKF’s consent or acquiescence of any trustee, receiver or liquidator
of it or of all or any substantial part of its assets and properties, such appointment shall not be vacated.

 

21.2         Upon
the occurrence of an Event of Default involving GKF, Hospital may at its option do any or all of the following:

 

21.2.1           By
written notice to GKF, immediately terminate this Agreement as to the Equipment and, in such event, GKF shall remove the Equipment,
the Cobalt and any improvements made by GKF to the Site, at GKF’s sole cost and expense or, in the absence of removal by
GKF within a reasonable period of time after a written request therefor, Hospital may remove the Equipment, the Cobalt and such
improvements with all due care and store the same at GKF’s sole cost and expense.

 

    	- 15 -

    	 

    

  

21.2.2           Seek
to recover from GKF such loss as may be realized by Hospital in the ordinary course of events as a result of the Event of Default.

 

21.3         GKF
shall in any event remain fully liable for reasonable damages as provided by law and for all costs and expenses incurred by GKF
on account of such default, including but not limited to, all court costs (other than attorneys’ fees). However, GKF shall
not in any manner be or become liable to Hospital for any consequential or incidental damages that may be suffered by Hospital
which arise out of or result from the Event of Default. The rights and remedies afforded Hospital under this Agreement shall be
deemed cumulative to include the purchase option contained in section 18.3 and not exclusive and shall be in addition to any other
rights or remedies to Hospital provided by law or in equity.

 

21.4         Notwithstanding
the occurrence of an Event of Default with respect to GKF (including any claim which would otherwise be in the nature of a set-off),
Hospital shall fully perform and pay its obligations hereunder (including payment of all Lease Payments) without set-off or defense
of any kind. Upon termination of this Agreement or the exercise of any other rights or remedies under this Agreement or applicable
law following an Event of Default, Hospital shall, without further request or demand, pay to GKF all Lease Payments and other sums
owing under this Agreement when and as due.

 

22.         Removal
of Equipment. Upon expiration of the Term, GKF, at its cost and expense, shall remove the Equipment from the Site not more
than ninety (90) days following the last day of the Term; provided that all of GKF’s right, title and interest in
and to the improvements made by GKF to the Site pursuant to Section 6 above shall thereupon transfer to Hospital.

 

23.         Insurance.

 

23.1         During
the Term, GKF shall, at its cost and expense, purchase and maintain in effect an all risk property and casualty insurance policy
covering the Equipment. The all risk property and casualty insurance policy shall be for an amount not less than the replacement
cost of the Equipment. The all risk property and casualty insurance policy maintained by GKF shall be evidenced by a certificate
of insurance or other reasonable documentation which shall be delivered by GKF to Hospital upon request following the commencement
of this Agreement and as of each annual renewal of such policy during the Term.

 

23.2         During
the Term, Hospital shall, at its cost and expense, purchase and maintain in effect professional liability insurance covering the
use or operation of the Equipment by Hospital’s physicians. The professional liability insurance policies shall provide coverage
in amounts not less than One Million Dollars ($1,000,000.00) per occurrence and Three Million Dollars ($3,000,000.00) annual aggregate.
The policies to be maintained by Hospital hereunder shall be evidenced by a certificate of insurance or other reasonable documentation
which shall be delivered by Hospital to GKF no later than the First Procedure Date and as of each annual renewal of such policies
during the Term.

 

    	- 16 -

    	 

    

  

23.3         Pursuant
to the Original Lease, during the construction of the Site and prior to the First Procedure Date, GKF, at its cost and expense,
purchased and maintained a general liability insurance policy which conformed with the coverage amounts and other requirements
described in Section 23.2 above and which named Hospital as an additional insured party. The policy to be maintained by GKF hereunder
shall be evidenced by a certificate of insurance or other reasonable documentation which was delivered by GKF to Hospital prior
to the commencement of any construction at the Site.

 

23.4         During
the Term, Hospital shall purchase and maintain all workers compensation insurance to the maximum extent required by applicable
law.

 

24.         [Intentionally
omitted.]

 

25.         Miscellaneous.

 

25.1         Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns. Except as provided under Section 14, neither party shall assign this Agreement nor any of its respective rights hereunder
and Hospital shall not sublease the Equipment without the prior written consent of the other party, which consent shall not be
unreasonably withheld. An assignment or sublease shall not relieve the assigning party or sublessor of any liability for performance
of this Agreement during the remainder of the Term. Any purported assignment or sublease made without the other party’s prior
written consent shall be null, void and of no force or effect.

 

25.2         Agreement
to Perform Necessary Acts. Each party agrees to perform any further acts and execute and deliver any further documents which
may be reasonably necessary or otherwise reasonably required to carry out the provisions of this Agreement.

 

25.3         Validity.
If for any reason any clause or provision of this Agreement, or the application of any such clause or provision in a particular
context or to a particular situation, circumstance or person, should be held unenforceable, invalid or in violation of law by any
court or other tribunal of competent jurisdiction, then the application of such clause or provision in contexts or to situations,
circumstances or persons other than that in or to which it is held unenforceable, invalid or in violation of law shall not be affected
thereby, and the remaining clauses and provisions hereof shall nevertheless remain in full force and effect.

 

25.4         Attorney’s
Fees and Costs. In the event of any action, arbitration or other proceedings between or among the parties hereto with respect
to this Agreement, each party shall pay for their own attorneys’ fees and related costs and expenses, irrespective of which
party is deemed to be the prevailing party.

 

25.5         Entire
Agreement; Amendment. This Agreement together with the Exhibits attached hereto constitutes the full and complete agreement
and understanding between the parties hereto concerning the subject matter hereof and shall supersede any and all prior written
and oral agreements with regard to such subject matter. This Agreement may be modified or amended only by a written instrument
executed by all of the parties hereto.

 

    	- 17 -

    	 

    

  

25.6         Number
and Gender. Words in the singular shall include the plural, and words in a particular gender shall include either or both additional
genders, when the context in which such words are used indicates that such is the intent.

 

25.7         Effect
of Headings. The titles or headings of the various paragraphs hereof are intended solely for convenience or reference and are
not intended and shall not be deemed to modify, explain or place any construction upon any of the provisions of this Agreement.

 

25.8         Counterparts.
This Agreement may be executed in one or more counterparts by the parties hereto. All counterparts shall be construed together
and shall constitute one agreement.

 

25.9         Governing
Law. This Agreement shall be interpreted and enforced in accordance with the internal laws, and not the law of conflicts, of
the State of Arkansas applicable to agreements made and to be performed in that State.

 

25.10         Exhibits.
All exhibits attached hereto and referred to in this Agreement are hereby incorporated by reference herein as though fully set
forth at length.

 

25.11         Ambiguities.
The general rule that ambiguities are to be construed against the drafter shall not apply to this Agreement. In the event that
any provision of this Agreement is found to be ambiguous, each party shall have an opportunity to present evidence as to the actual
intent of the parties with respect to such ambiguous provision.

 

25.12         Representations.
Each of the parties hereto represents (a) that no representation or promise not expressly contained in this Agreement has been
made by any other party hereto or by any of its agents, employees, representatives or attorneys; (b) that this Agreement is not
being entered into on the basis of, or in reliance on, any promise or representation, expressed or implied, other than such as
are set forth expressly in this Agreement; (c) that it has been represented by counsel of its own choice in this matter or has
affirmatively elected not to be represented by counsel; (d) it is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization, (e) it has full power and authority to execute, deliver and perform this Agreement,
and (f) the execution, delivery and performance of this Agreement has been duly authorized by all necessary corporate or other
similar action.

 

25.13         Non-Waiver.
No failure or delay by a party to insist upon the strict performance of any term, condition, covenant or agreement of this Agreement,
or to exercise any right, power or remedy hereunder or under law or consequent upon a breach hereof or thereof shall constitute
a waiver of any such term, condition, covenant, agreement, right, power or remedy or of any such breach or preclude such party
from exercising any such right, power or remedy at any later time or times.

 

    	- 18 -

    	 

    

  

25.14         Notices.
All notices, requests, demands or other communications required or permitted to be given under this Agreement shall be in writing
and shall be delivered to the party to whom notice is to be given either (a) by personal delivery (in which case such notice shall
be deemed to have been duly given on the date of delivery), (b) by next business day air courier service (e.g., Federal Express
or other similar service) (in which case such notice shall be deemed given on the business day following deposit with the air courier
service), or (c) by United States mail, first class, postage prepaid, registered or certified, return receipt requested (in which
case such notice shall be deemed given on the third (3rd) day following the date of mailing), and properly addressed as follows:

 

	 	To GKF:	 	Craig K. Tagawa
	 	 	 	Chief Executive Officer
	 	 	 	GK Financing, LLC
	 	 	 	Four Embarcadero Center
	 	 	 	Suite 3620
	 	 	 	San Francisco, CA 94111
	 	 	 	 
	 	To Hospital:	 	University of Arkansas for Medical Sciences, Hospital
	 	 	 	4301 W. Markham slot # 557
	 	 	 	Little Rock, Arkansas  72205
	 	 	 	Attn:  Chief Executive Officer
	 	 	 	 
	 	 	 	with a copy to:
	 	 	 	UAMSOffice of General Counsel
	 	 	 	4301 W. Markham slot # 860
	 	 	 	Little Rock, Arkansas  72205
	 	 	 	Attn:  Office of General Counsel

 

A party to this Agreement may change his, her or its address for
purposes of this Section by giving written notice to the other parties in the manner specified herein.

 

25.15         Special
Provisions Respecting Medicare and Medicaid Patients

 

25.15.1         Hospital
and GKF shall generate such records and make such disclosures as may be required, from time to time, by the Medicare, Medicaid
and other third party payment programs with respect to this Agreement in order to meet all requirements for participation and payment
associated with such programs, including but not limited to the matters covered by Section 1861(v)(1)(I) of the Social Security
Act.

 

    	- 19 -

    	 

    

  

25.15.2         For the purpose
of compliance with Section 1861(v)(1)(I) of the Social Security Act, as amended, and any regulations promulgated pursuant thereto,
both parties agree to comply with the following statutory requirements (a) Until the expiration of four (4) years after the termination
of this Agreement, both parties shall make available, upon written request to the Secretary of Health and Human Services or, upon
request, to the Comptroller General of the United States, or any of their duly authorized representatives, the contract, and books,
documents and records of such party that are necessary to certify the nature and extent of such costs, and (b) if either party
carries out any of the duties of the contract through a subcontract with a value or cost of $10,000 or more over a twelve month
period, with a related organization, such subcontract shall contain a clause to the effect that until the expiration of four (4)
years after the furnishing of such services pursuant to such subcontract, the related organization shall make available, upon written
request to the Secretary, or upon request to the Comptroller General, or any of their duly authorized representatives the subcontract,
and books, documents and records of such organization that are necessary to verify the nature and extent of such costs.

 

25.16         Force
Majeure. Failure to perform by either party will be excused in the event of any delay or inability to perform its duties under
this Agreement directly or indirectly caused by conditions beyond its reasonable control, including, without limitation, fires,
floods, earthquakes, snow, ice, disasters, acts of God, accidents, riots, wars, operation of law, strikes, governmental action
or regulations, shortages of labor, fuel, power, materials, manufacturer delays or transportation problems. Notwithstanding the
foregoing, all parties shall make good faith efforts to perform under this Agreement in the event of any such circumstance. Further,
once such an event is resolved, the parties shall again perform their respective obligations under this Agreement.

 

25.17         Independent
Contractor Status. With respect to the performance of the duties and obligations arising under this Agreement, nothing in this
Agreement is intended nor shall be construed to create a partnership, an employer/employee relationship, a joint venture relationship,
or a lease or landlord/tenant relationship between GKF and Hospital.

 

25.18         Supplier
and Owner of Equipment. The parties hereto agree that, notwithstanding anything to the contrary set forth herein, the Lease
is and shall be treated and interpreted as a "finance lease," as such term is defined in Article 2A of the Uniform Commercial
Code and Section 4-2A-103(1)(g) of the Arkansas Code Annotated, that GKF shall be treated as a finance lessor who is entitled to
the benefits and releases from liability accorded to a finance lessor under Article 2A of the Uniform Commercial Code and Section
4-2A-103(1)(g) of the Arkansas Code Annotated. In furtherance of the foregoing, Hospital acknowledges that, before signing this
Amendment, GKF has informed Hospital in writing (a) that Elekta is the entity supplying the Equipment, (b) that Hospital is entitled
(under Section 2A of the Uniform Commercial Code and Section 4-2A-103(1)(g) of the Arkansas Code Annotated) to the promises and
warranties, including those of any third party, provided to GKF by Elekta which is the entity supplying the goods in connection
with or as part of the contract by which GKF acquired the Equipment or the right to possession and use of the Equipment, and (c)
that Hospital may communicate with Elekta and receive an accurate and complete statement of those promises and warranties, including
any disclaimers and limitations of them or of remedies. Hospital also acknowledges that Hospital has selected Elekta to supply
the Equipment and has directed GKF to acquire the Equipment or the right to possession and use of the Equipment from Elekta.

 

[Signatures continued on next page]

 

    	- 20 -

    	 

    

  

IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be executed as of the date first set forth above.

 

	“GKF”	GK FINANCING, LLC,
	 	a California limited liability company
	 	 	 
	 	By:	/s/ Ernest A. Bates, M.D      12/12/14
	 	 	Ernest A. Bates, M.D.          date 

Policy Committee Member
	 	 	 
	“Hospital”	 	 
	 	THE UNIVERSITY OF ARKANSAS FOR MEDICAL SCIENCES
	 	 	 
	 	By:	/s/ Roxane A. Townsend, MD     12/4/14
	 	 	Roxane A. Townsend, MD          date 

Vice Chancellor for Clinical Programs
	 	 	CEO UAMS Medical Center
	 	 	 
	 	BOARD OF TRUSTEES OF THE UNIVERSITY OF ARKANSAS on behalf of THE UNIVERSITY OF ARKANSAS FOR MEDICAL SCIENCES
	 	 	 
	 	By:	/s/ William R. Bowes, CFO
	 	 	William R. Bowes, CFO        date 

Vice Chancellor for Finance & Administration

  

    	- 21 -

    	 

    

 

Exhibit 8.1

 

HOSPITAL’S DIRECT COST COMPONENT

 

	Registered nurse	[*]
	 	 
	Recovery room	[*]
	 	 
	Hospital daily charge	[*]
	 	 
	Hospital, including ventilator daily charge	[*]
	 	 
	MRI procedure	[*]
	 	 
	CT procedure	[*]
	 	 
	Angiography procedure	[*]
	 	 
	Physicist	[*]

 

    	- 22 -

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