Document:

Exhibit

Exhibit 10.3
CBI NOMINEE AGREEMENT
Execution Copy
(Shareholder Representative)

THIS CBI NOMINEE AGREEMENT (the “Agreement”) is made and entered into as of March 28, 2017 by and between Independent Bank Group, Inc. (“IBG”) and LEP Carlile Holdings, LLC (the “Investor”).

RECITALS:

WHEREAS, IBG and Carlile Bancshares, Inc., Fort Worth, Texas (“CBI”), have entered into that certain Agreement and Plan of Reorganization, dated November 21, 2016 (the “Reorganization Agreement”), which provides for the acquisition of CBI by IBG through the merger (the “Merger”) of CBI with and into IBG.  Terms with their initial letter capitalized and not otherwise defined herein shall have the meaning given them in the Reorganization Agreement;

WHEREAS, Independent Bank, McKinney, Texas, a Texas banking association, is a wholly-owned subsidiary of IBG (“Independent Bank”);

WHEREAS, the Reorganization Agreement contemplates that at least three individuals associated with CBI will be elected to the Board of Directors of IBG (the “IBG Board”) and the Board of Directors of Independent Bank (the “Bank Board” and together with the IBG Board, each a “Board” and collectively, the “Boards”); 

WHEREAS, the CBI Nominee (as defined below) represents the interests of the Investor, which is a record holder of shares of CBI common stock;

WHEREAS, the Investor will receive IBG Shares pursuant to the Merger; and

WHEREAS, IBG and CBI acknowledge and agree that it is in the best interests of IBG for the CBI Nominee (as defined below) to serve as a director of IBG only for as long as the Investor owns a significant number of IBG Shares, as provided herein.

AGREEMENT:

NOW, THEREFORE, in consideration of the foregoing and the covenants contained in the Reorganization Agreement and in this Agreement, IBG and the Investor agree as follows:

1.CBI Nominee.  The Investor shall designate one (1) person (the “CBI Nominee”) to serve on the IBG Board during the term of this Agreement. The initial CBI Nominee will be Mark K. Gormley. The IBG Board shall nominate the CBI Nominee for election as a Class II director of IBG, as provided for in the Reorganization Agreement. At each meeting of shareholders for the 

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election of directors at which the position to be occupied under this Agreement by the CBI Nominee on any Board is to be determined by shareholder action, and provided that the CBI Nominee complies with the governance and ethics policies of IBG then in place, the IBG Board shall:  (a) cause the CBI Nominee to be recommended by the Corporate Governance and Nominating Committee (or any similar committee with authority to nominate director nominees, as applicable) for consideration by the IBG Board and to be nominated by the IBG Board for election as a director; (b) recommend that the shareholders vote for and in favor of the election of the CBI Nominee as a director, and use its commercially reasonable efforts to cause the election of the CBI Nominee to the IBG Board, including soliciting proxies for the election of the CBI Nominee to the same extent as it does, consistent with past practice, for any other IBG Board nominee for election as a director; and (c) request each then current member of the IBG Board to vote as a shareholder (as applicable) for approval of the CBI Nominee.  If the CBI Nominee fails to comply with the governance and ethics policies of IBG and the Corporate Governance and Nominating Committee is unable to recommend the CBI Nominee for nomination for election as a director of IBG, IBG shall so notify the Investor and the Investor shall have the right to designate a substitute person as the CBI Nominee, who shall be deemed the CBI Nominee for all purposes and in all respects under this Agreement. In the event of the death, disability, resignation or removal of the CBI Nominee, IBG shall cause the prompt election to the IBG Board of a replacement director designated by the Investor to fill the resulting vacancy, and such individual shall be deemed the CBI Nominee for all purposes and in all respects under this Agreement. IBG’s obligation to nominate and recommend any such substitute person as a CBI Nominee shall be subject to such substitute person’s compliance with IBG’s governance and ethics policies in place from time to time, the appropriate review and approval by IBG’s Corporate Governance and Nominating Committee of such substitute person, and that such substitute person qualifies as an “independent” director as defined by applicable NASDAQ rules.

2.Termination Event.  The Investor’s right under this Agreement to designate a CBI Nominee for nomination and election to the IBG Board shall terminate if the Investor (together with its Affiliates) no longer beneficially owns at least 50% of the aggregate number of shares of common stock of IBG (as adjusted appropriately from time to time for any reorganization, recapitalization, stock dividend, stock split, reverse stock split or other like changes in IBG’s capitalization) beneficially owned by the Investor (and its Affiliates) immediately following the effective time of the Merger (the “Termination Event”).  Following the occurrence of the Termination Event, upon the written request of the IBG Board, the Investor shall cause the CBI Nominee to resign from the IBG Board within ten (10) calendar days thereafter.

3.Corporate Opportunities. Each of the parties hereto acknowledges that the Investor, its Affiliates and their related investment funds may review the business plans and related proprietary information of any enterprise, including enterprises that may have products or services which compete directly or indirectly with those of IBG and its subsidiaries, and may trade in the securities 

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of such enterprise.  The Investor, its Affiliates and their related investment funds shall not be precluded or in any way restricted (except as may be required by applicable law) from investing or participating in any particular enterprise, or trading in the securities thereof, whether or not such enterprise has products or services that compete with those of IBG or any of its subsidiaries. Without limiting the generality of the foregoing, the parties expressly acknowledge and agree that: (a) the Investor and its Affiliates have the right to, and shall have no duty (contractual or otherwise) not to, directly or indirectly, engage in the same or similar business activities or lines of business as IBG and its subsidiaries; and (b) in the event that the Investor or any of its Affiliates acquires knowledge of a potential transaction or matter that may be a corporate opportunity for IBG or any of its subsidiaries, the Investor or its Affiliates shall have no duty (contractual or otherwise) to communicate or present such corporate opportunity to IBG or any of its subsidiaries, and, notwithstanding any provision of this Agreement to the contrary, shall not be liable to IBG or any of its subsidiaries or any other shareholders of IBG for breach of any duty (contractual or otherwise) by reason of the fact that the Investor, any of its Affiliates or any of their related investment funds, directly or indirectly, pursues or acquires such opportunity for itself, directs such opportunity to another person or entity or does not present such opportunity to IBG or its subsidiaries.  Notwithstanding the foregoing, the parties hereto acknowledge and agree that the CBI Nominee, as a director of IBG, will owe fiduciary duties to IBG.

4.Amendments.  This Agreement may not be modified, amended, altered or supplemented except upon the execution and delivery of a written agreement executed by the parties hereto.

5.Multiple Counterparts.  For the convenience of the parties hereto, this Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all counterparts hereof so executed by the parties hereto, whether or not such counterpart shall bear the execution of each of the parties hereto, shall be deemed to be, and shall be construed as, one and the same Agreement. An e-mail, facsimile or other electronic transmission of a signed counterpart of this Agreement shall be sufficient to bind the party or parties whose signature(s) appear thereon.

6.Entire Agreement.  This Agreement, together with the Reorganization Agreement and the agreements contemplated thereby, embody the entire agreement and understanding of the parties hereto in respect to the subject matter contained herein. This Agreement supersedes all prior agreements and understandings among the parties with respect to such subject matter contained herein.

7.Notices.  All notices, requests, demands and other communications required or permitted hereby shall be in writing and shall be deemed to have been duly given if delivered by 

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hand or mail, certified or registered mail (return receipt requested) with postage prepaid to the addresses of the parties hereto set forth on below their signature on the signature pages hereof or to such other address as any party may have furnished to the others in writing in accordance herewith.

8.GOVERNING LAW; JURISDICTION; VENUE.  THIS AGREEMENT AND THE RELATIONS AMONG THE PARTIES HERETO ARISING FROM THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS. THE INVESTOR HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE FEDERAL AND TEXAS STATE COURTS FOR COLLIN COUNTY, TEXAS IN CONNECTION WITH ANY SUIT, ACTION OR PROCEEDING RELATED TO THIS AGREEMENT OR ANY OF THE MATTERS CONTEMPLATED HEREBY, IRREVOCABLY WAIVES ANY DEFENSE OR LACK OF PERSONAL JURISDICTION AND IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT. THE INVESTOR AGREES THAT EXCLUSIVE VENUE FOR ANY DISPUTE ARISING FROM THIS AGREEMENT SHALL BE THE FEDERAL AND TEXAS STATE COURTS FOR COLLIN COUNTY, TEXAS AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

[Signature Page to Follow]

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[Signature Page to CBI Nominee Agreement]

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

INDEPENDENT BANK GROUP, INC.

By:     /s/ David R. Brooks                                         
                            David R. Brooks 
                            Chairman of the Board and CEO 
 

INVESTOR:
LEP CARLILE HOLDINGS, LLC
 
 
                        By:     /s/ Mark K. Gormley                         
                            Mark K. Gormley 
                            Partner

5PetLife
Pharmaceuticals, Inc.

 

2016
Stock Option Plan

 

SECTION
1 GENERAL PURPOSE OF THE PLAN; DEFINITIONS

 

The name of the plan is
the PetLife Pharmaceuticals, Inc., 2016 Stock Option Plan (the “Plan”). The purpose of the Plan is to encourage and
enable the officers, employees, directors, consultants and other key persons of PetLife Pharmaceuticals, Inc., a Nevada corporation
(the “Company”) and its Parents, Subsidiaries and Affiliates, upon whose judgment, initiative and efforts the Company
largely depends for the successful conduct of its business to acquire a proprietary interest in the Company. It is anticipated
that providing such persons with a direct stake in the Company’s welfare will assure a closer identification of their interests
with those of the Company, thereby stimulating their efforts on the Company’s behalf and strengthening their desire to remain
with and or further the interests of the Company.

 

The
following terms shall be defined as set forth below:

 

“Affiliate”
means with respect to a specified Person, any Person that directly, or indirectly through one or more intermediaries, Controls,
or is Controlled by, or is under common Control with, the specified Person.

 

“Award”
or “Awards,” except where referring to a particular category of grant under the Plan, shall include Incentive
Stock Options, Non-Qualified Stock Options, Restricted Stock Awards, Unrestricted Stock Awards, or any combination of the foregoing.

 

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

 

“Code”
means the Internal Revenue Code of 1986, as amended, and any successor Code, and related rules, regulations and interpretations.

 

“Control”
means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through ownership of voting securities, contract, or otherwise.

 

“Committee”
has the meaning specified in Section 2.

 

“Effective
Date” means the date on which the Plan is approved by stockholders as set forth at the end of this Plan.

 

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

 

“Fair
Market Value” of the Stock on any given date means the fair market value of the Stock determined as the average of the
highest bid and lowest asked prices of the Stock reported on the Over-the-Counter Bulletin Board or Pink Sheets, as applicable,
for such date or, if no bid and asked prices were reported for such date, for the last day preceding such date for which such
prices were reported; provided, however, that (i) if the Stock is admitted to trading on a national securities exchange
or the NASDAQ National Market System, the Fair Market Value on any date shall not be less than the last reported closing price
for the Stock on such exchange or system and (ii) if the stock is not traded on any national securities exchange or on the Over-the-Counter
Bulletin Board or Pink Sheets, the Fair Market Value of the Stock shall be determined in good faith by the Committee.

 

    	 

    	 

    

 

“Incentive
Stock Option” means any Stock Option designated and qualified as an “incentive stock option” as defined
in Section 422 of the Code.

 

“Initial
Public Offering” means the consummation of the first fully underwritten, firm commitment public offering pursuant to
an effective registration statement under the Act, other than on Forms S-4 or S-8 or their then equivalents, covering the offer
and sale by the Company of its Stock, or such other event as a result of or following which the Company’s Stock shall be
registered under Section 12 of the Exchange Act.

 

“Non-Qualified
Stock Option” means any Stock Option that is not an Incentive Stock Option.

 

“Option”
or “Stock Option” means any option to purchase shares of Stock granted pursuant to Section 5.

 

“Outside
Director” means a member of the Board who is not also an employee or officer of the Company or any Subsidiary.

 

“Parent”
means any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities ending
with the Company if each of the corporations or entities (other than the Company) owns stock or other interests possessing 50
percent or more of the economic interest or the total combined voting power of all classes of stock or other interests in one
of the other corporations or entities in the chain.

 

“Person”
means any individual, corporation, partnership (limited or general), limited liability company, limited liability partnership,
association, trust, joint venture, unincorporated organization or any similar entity.

 

“Restricted
Stock Award” means Awards granted pursuant to Section 6.

 

“Stock”
means the Common Stock, par value $0.001 per share, of the Company, subject to adjustments pursuant to Section 3.

 

“Subsidiary”
means any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities beginning
with the Company if each of the corporations or entities (other than the last corporation or entity in the unbroken chain) owns
stock or other interests possessing 50 percent or more of the economic interest or the total combined voting power of all classes
of stock or other interests in one of the other corporations or entities in the chain.

 

“Unrestricted
Stock Award” means any Award granted pursuant to Section 7.

 

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SECTION
2 ADMINISTRATION OF PLAN; COMMITTEE AUTHORITY TO SELECT PARTICIPANTS AND DETERMINE AWARDS

 

(a)
Administration of Plan. The Plan shall be administered by the Board, or at the discretion of the Board, by a committee
or committees of the Board, comprised, except as contemplated by Section 2(c), of not less than two Directors. All references
herein to the Committee shall be deemed to refer to the group then responsible for administration of the Plan at the relevant
time (i.e., either the Board of Directors or a committee or committees of the Board, as applicable).

 

(b)
Powers of Committee. The Committee shall have the power and authority to grant Awards consistent with the terms of the Plan, including
the power and authority:

 

(i)
to select the officers, employees, directors, consultants and key persons of the Company and/or its Subsidiaries and Affiliates
to whom Awards may from time to time be granted;

 

(ii)
to determine the time or times of grant, and the extent, if any, of Incentive Stock Options, Non-Qualified Stock Options, Restricted
Stock Awards, Unrestricted Stock Awards, or any combination of the foregoing, granted to any one or more participants;

 

(iii)
to determine the number of shares of Stock to be covered by any Award;

 

(iv)
to determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms of
the Plan, of any Award, which terms and conditions may differ among individual Awards and participants, and to approve the form
of written instruments evidencing the Awards;

 

(v)
to impose any limitations on Awards granted under the Plan, including limitations on transfers, repurchase provisions and the
like and to exercise repurchase rights or obligations;

 

(vi)
subject to the provisions of Section 5(a)(ii), to extend at any time the period in which Stock Options may be exercised;

 

(vii)
to determine at any time whether, to what extent, and under what circumstances distribution or the receipt of Stock and other
amounts payable with respect to an Award shall be deferred either automatically or at the election of the participant and whether
and to what extent the Company shall pay or credit amounts constituting interest (at rates determined by the Committee) or dividends
or deemed dividends on such deferrals; and

 

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(viii)
at any time to adopt, alter and repeal such rules, guidelines and practices for administration of the Plan and for its own acts
and proceedings as it shall deem advisable; to interpret the terms and provisions of the Plan and any Award (including related
written instruments); to make all determinations it deems advisable for the administration of the Plan; to decide all disputes
arising in connection with the Plan; and to otherwise supervise the administration of the Plan.

 

(ix)
All decisions and interpretations of the Committee shall be binding on all persons, including the Company and Plan participants.

 

(c)
Delegation of Authority to Grant Awards. The Committee, in its discretion, may delegate to the Chief Executive Officer of the
Company all or part of the Committee’s authority and duties with respect to the granting of Awards at Fair Market Value
to individuals who are not subject to the reporting and other provisions of Section 16 of the Exchange Act or “covered employees”
within the meaning of Section 162(m) of the Code. Any such delegation by the Committee shall include a limitation as to the amount
of Awards that may be granted during the period of the delegation and shall contain guidelines as to the determination of the
exercise price of any Option, the conversion ratio or price of other Awards and the vesting criteria. The Committee may revoke
or amend the terms of a delegation at any time but such action shall not invalidate any prior actions of the Committee’s
delegate or delegates that were consistent with the terms of the Plan.

 

SECTION
3 STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION

 

(a)
Stock Issuable. The maximum number of shares of Stock reserved and available for issuance under the Plan shall be 20,000,000 shares
of Common Stock, subject to adjustment as provided in Section 3(b). For purposes of this limitation, the shares of Stock underlying
any Awards which are forfeited, canceled, reacquired by the Company, satisfied without the issuance of Stock or otherwise terminated
(other than by exercise) shall be added back to the shares of Stock available for issuance under the Plan. Subject to such overall
limitation, shares of Stock may be issued up to such maximum number pursuant to any type or types of Award. The shares available
for issuance under the Plan may be authorized but unissued shares of Stock or shares of Stock reacquired by the Company and held
in its treasury.

 

(b)
Changes in Stock. Subject to Section 3(c) hereof, if, as a result of any reorganization, recapitalization, reclassification, stock
dividend, stock split, reverse stock split or other similar change in the Company’s capital stock, the outstanding shares
of Stock are increased or decreased or are exchanged for a different number or kind of shares or other securities of the Company,
or additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed with
respect to such shares of Stock or other securities, or, if, as a result of any merger, consolidation or sale of all or substantially
all of the assets of the Company, the outstanding shares of Stock are converted into or exchanged for different number or kind
of securities of the Company or any successor entity (or a Subsidiary or Affiliate thereof), the Committee shall make an appropriate
or proportionate adjustment in (i) the maximum number of shares reserved for issuance under the Plan, (ii) the number and kind
of shares or other securities subject to any then outstanding Awards under the Plan, (iii) the repurchase price per share subject
to each outstanding Restricted Stock Award, and (iv) the exercise price and/or exchange price for each share subject to any then
outstanding Stock Options under the Plan, without changing the aggregate exercise price (i.e., the exercise price multiplied by
the number of Stock Options ) as to which such Stock Options remain exercisable. The adjustment by the Committee shall be final,
binding and conclusive. No fractional shares of Stock shall be issued under the Plan resulting from any such adjustment, but the
Committee in its discretion may make a cash payment in lieu of fractional shares.

 

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(c)
The Committee may also adjust the number of shares subject to outstanding Awards and the exercise price and the terms of outstanding
Awards to take into consideration material changes in accounting practices or principles, extraordinary dividends, acquisitions
or dispositions of stock or property or any other event if it is determined by the Committee that such adjustment is appropriate
to avoid distortion in the operation of the Plan, provided that no such adjustment shall be made in the case of an Incentive Stock
Option, without the consent of the participant, if it would constitute a modification, extension or renewal of the Option within
the meaning of Section 424(h) of the Code.

 

(d)
Mergers and Other Sale Events. In the case of and subject to the consummation of (i) the dissolution or liquidation of the Company,
(ii) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity,
(iii) a merger, reorganization or consolidation in which the outstanding shares of Stock are converted into or exchanged for a
different kind of securities of the successor entity and the holders of the Company’s outstanding voting power immediately
prior to such transaction do not own a majority of the outstanding voting power of the successor entity immediately upon completion
of such transaction, or (iv) the sale of all of the Stock of the Company to an unrelated person or entity (in each case, regardless
of the form thereof, a “Sale Event”), then (A) the Plan shall terminate upon the effective date and time of such Sale
Event and (B) unless otherwise provided in the applicable Award agreements, (x) all unexercised Options, whether vested or unvested,
issued and outstanding immediately prior to the consummation of such Sale Event shall expire and terminate upon the effective
date and time that such Sale Event is consummated, and (y) all unvested portions of any Restricted Stock Award outstanding immediately
prior to the consummation of the Sale Event shall expire and terminate upon the effective date and time that such Sale Event is
consummated. In the event of such termination of the Plan pursuant to this Section 3(b), each Plan participant shall be permitted
within a specified period of time prior to the consummation of the Sale Event as determined by the Committee to exercise all outstanding
Options held by such participant which are then exercisable or will become exercisable immediately prior to the consummation of
the Sale Event.

 

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(e)
Notwithstanding the foregoing, the parties to any Sale Event transaction may, in their sole discretion, provide for the assumption
or continuation of Plan Awards theretofore granted (after taking into account any acceleration hereunder) by the successor entity,
or the substitution for such Plan Awards of new Awards of the successor entity or a Subsidiary or Affiliate thereof, with an appropriate
adjustment as to the number and kind of shares and the per share exercise prices (after taking into account any acceleration provided
for hereunder).

 

(f)
Substitute Awards. The Committee may grant Awards under the Plan in substitution for stock and stock based awards held by employees,
directors or other option holders of another corporation in connection with a merger or consolidation of the employing corporation
with the Company or a Subsidiary or Affiliate, or the acquisition by the Company or a Subsidiary or Affiliate of property or stock
of the employing corporation. The Committee may direct that the substitute awards be granted on such terms and conditions as the
Committee considers appropriate in the circumstances. Any substitute Awards granted under the Plan shall not count against the
share limitation set forth in Section 3(a).

 

SECTION
4 ELIGIBILITY

 

Participants
in the Plan will be such full or part-time officers, employees, directors, consultants and other key persons of the Company and/or
its Subsidiaries and Affiliates who are responsible for, or contribute to, the management, growth or profitability of the Company
and/or its Subsidiaries and Affiliates as are selected from time to time by the Committee in its sole discretion.

 

SECTION
5 STOCK OPTIONS

 

Any
Stock Option granted under the Plan shall be pursuant to a Stock Option Agreement that shall be in such form as the Committee
may from time to time approve. Option agreements need not be identical.

 

Stock
Options granted under the Plan may be either Incentive Stock Options or Non-Qualified Stock Options. Incentive Stock Options may
be granted only to employees of (i) the Company or (ii) any Subsidiary that is a “subsidiary corporation” within the
meaning of Section 424(f) of the Code or (iii) any Parent that is a “parent corporation” within the meaning of Section
424(e) of the Code. To the extent that any Option does not qualify as an Incentive Stock Option, it shall be deemed a Non-Qualified
Stock Option.

 

No
Incentive Stock Option shall be granted under the Plan after the Board approves the date, which is 10 years from the date the
Plan.

 

(a)
Terms of Stock Options. Stock Options granted under the Plan shall be subject to the following terms and conditions and shall
contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee shall deem desirable.
If the Committee so determines, Stock Options may be granted in lieu of cash compensation at the participant’s election,
subject to such terms and conditions as the Committee may establish, as well as in addition to other compensation.

 

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(b)
Exercise Price. The exercise price per share for the Stock covered by a Stock Option shall be determined by the Committee at the
time of grant but shall not be less than 100 percent of the Fair Market Value on the date of grant in the case of Incentive Stock
Options. If an employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than
10 percent of the combined voting power of all classes of stock of the Company or any parent or subsidiary corporation and an
Incentive Stock Option is granted to such employee, the option price of such Incentive Stock Option shall be not less than 110
percent of the Fair Market Value on the grant date. If the Fair Market Value is undeterminable at the time of grant due to no
trading or thinly traded, an arbitrary exercise price shall be set by the Company.

 

(c)
Option Term. The term of each Stock Option shall be fixed by the Committee, but no Stock Option shall be exercisable more than
five years after the date the option is granted. If an employee owns or is deemed to own (by reason of the attribution rules of
Section 424(d) of the Code) more than 10 percent of the combined voting power of all classes of stock of the Company or any parent
or subsidiary corporation and an Incentive Stock Option is granted to such employee, the term of such option shall be no more
than five years from the date of grant.

 

(d)
Exercisability; Rights of a Stockholder. Stock Options shall become exercisable at such time or times, whether or not in installments,
as shall be determined by the Committee at or after the grant date. The Committee may at any time accelerate the exercisability
of all or any portion of any Stock Option. An optionee shall have the rights of a stockholder only as to shares acquired upon
the exercise of a Stock Option and not as to unexercised Stock Options.

 

(i)
Method of Exercise. Stock Options may be exercised in whole or in part, by giving written notice of exercise to the Company,
specifying the number of shares to be purchased. Payment of the purchase price may be made by one or more of the following methods
to the extent provided in the Award agreement:

 

(ii)
In cash, by certified or bank check, or other instrument acceptable to the Committee in U.S. funds payable to the order of the
Company in an amount equal to the purchase price of such Option Shares;

 

(iii)
By the optionee delivering to the Company a promissory note if the Board has expressly authorized the loan of funds to the optionee
for the purpose of enabling or assisting the optionee to effect the exercise of his or her Stock Option; provided that at least
so much of the exercise price as represents the par value of the Stock shall be paid other than with a promissory note;

 

(iv)
If permitted by the Committee, through the delivery (or attestation to the ownership) of shares of Stock that have been purchased
by the optionee on the open market or have been beneficially owned by the optionee for at least six months and are not then subject
to restrictions under any Company plan. Such surrendered shares shall be valued at Fair Market Value on the exercise date;

 

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(v)
If permitted by the Committee, by the optionee delivering to the Company a properly executed exercise notice together with irrevocable
instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company to pay the purchase
price; provided that in the event the optionee chooses to pay the purchase price as so provided, the optionee and the broker
shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Committee shall prescribe
as a condition of such payment procedure.

 

(vi)
Payment instruments will be received subject to collection. No certificates for Option Shares so purchased will be issued to optionee
until the Company has completed all steps required by law to be taken in connection with the issuance and sale of the shares,
including without limitation (i) receipt of a representation from the optionee at the time of exercise of the Option that the
optionee is purchasing the Option Shares for the optionee’s own account and not with a view to any sale or distribution
thereof, (ii) the legending of any certificate representing the shares to evidence the foregoing representations and restrictions,
and (iii) obtaining from optionee payment or provision for all withholding taxes due as a result of the exercise of the Option.
The delivery of certificates representing the shares of Stock to be purchased pursuant to the exercise of a Stock Option will
be contingent upon receipt from the optionee (or a purchaser acting in his or her stead in accordance with the provisions of the
Stock Option) by the Company of the full purchase price for such shares and the fulfillment of any other requirements contained
in the Stock Option or applicable provisions of laws. In the event an optionee chooses to pay the purchase price by previously
owned shares of Stock through the attestation method, the shares of Stock transferred to the optionee upon the exercise of the
Stock Option shall be net of the number of shares attested to.

 

(e)
Annual Limit on Incentive Stock Options. To the extent required for “incentive stock option” treatment under
Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the shares of Stock with respect
to which Incentive Stock Options granted under this Plan and any other plan of the Company or its parent and subsidiary corporations
become exercisable for the first time by an optionee during any calendar year shall not exceed $100,000. To the extent that any
Stock Option exceeds this limit, it shall constitute a Non-Qualified Stock Option.

 

(f)
Non-transferability of Options. No Stock Option shall be transferable by the optionee otherwise than by will or by the
laws of descent and distribution and all Stock Options shall be exercisable, during the optionee’s lifetime, only by the
optionee, or by the optionee’s legal representative or guardian in the event of the optionee’s incapacity. Notwithstanding
the foregoing, the Committee, in its sole discretion, may provide in the Award agreement regarding a given Option that the optionee
may transfer, without consideration for the transfer, his or her Non-Qualified Stock Options to members of his or her immediate
family, to trusts for the benefit of such family members, or to partnerships in which such family members are the only partners,
provided that the transferee agrees in writing with the Company to be bound by all of the terms and conditions of this Plan and
the applicable Option.

 

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(g)
Termination. Unless otherwise provided in the option agreement or determined by the Committee, upon the optionee’s
termination of employment (or other business relationship) with the Company and its Subsidiaries, the optionee’s rights
in his or her Stock Options shall automatically terminate.

 

SECTION
6 RESTRICTED STOCK AWARDS

 

(a)
Nature of Restricted Stock Awards. A Restricted Stock Award is an Award pursuant to which the Company may, in its sole
discretion, grant or sell, at par value or such other higher purchase price determined by the Committee, in its sole discretion,
shares of Stock subject to such restrictions and conditions as the Committee may determine at the time of grant (“Restricted
Stock”), which purchase price shall be payable in cash or by promissory note (recourse, partial recourse, or nonrecourse)
acceptable to the Committee. Conditions may be based on continuing employment (or other business relationship) and/or achievement
of pre-established performance goals and objectives. The grant of a Restricted Stock Award is contingent on the participant executing
the Restricted Stock Award agreement. The terms and conditions of each such agreement shall be determined by the Committee, and
such terms and conditions may differ among individual Awards and participants.

 

(b)
Rights as a Stockholder. Upon execution of a written instrument setting forth the Restricted Stock Award and payment of
any applicable purchase price, a participant shall have the rights of a stockholder with respect to the voting of the Restricted
Stock, subject to such conditions contained in the written instrument evidencing the Restricted Stock Award. Unless the Committee
shall otherwise determine, certificates evidencing the Restricted Stock shall remain in the possession of the Company until such
Restricted Stock is vested as provided in subsection (d) below of this Section, and the participant shall be required, as a condition
of the grant, to deliver to the Company a stock power endorsed in blank.

 

(c)
Restrictions. Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except
as specifically provided herein or in the Restricted Stock Award agreement. If a participant’s employment (or other business
relationship) with the Company and its Subsidiaries terminates under the conditions specified in the relevant instrument relating
to the Award, or upon such other event or events as may be stated in the instrument evidencing the Award, the Company or its assigns
shall have the right or shall agree, as may be specified in the relevant instrument, to repurchase some or all of the shares of
Stock subject to the Award at such purchase price as is set forth in such instrument.

 

(d)
Vesting of Restricted Stock. The Committee at the time of grant shall specify the date or dates and/or the attainment of
pre-established performance goals, objectives and other conditions on which Restricted Stock shall become vested, subject to such
further rights of the Company or its assigns as may be specified in the instrument evidencing the Restricted Stock Award.

 

    	9 

    	 

    

 

(e)
Waiver, Deferral and Reinvestment of Dividends. The Restricted Stock Award agreement may require or permit the immediate
payment, waiver, deferral or investment of dividends paid on the Restricted Stock.

 

SECTION
7 UNRESTRICTED STOCK AWARDS

 

(a)
Grant or Sale of Unrestricted Stock. The Committee may, in its sole discretion, grant (or sell at par value or such higher
purchase price determined by the Committee) an Unrestricted Stock Award to any participant, pursuant to which such participant
may receive shares of Stock free of any vesting restrictions (“Unrestricted Stock”) under the Plan. Unrestricted Stock
Awards may be granted or sold as described in the preceding sentence in respect of past services or other valid consideration,
or in lieu of any cash compensation due to such individual.

 

(b)
Elections to Receive Unrestricted Stock In Lieu of Compensation. Upon the request of a participant and with the consent
of the Committee, each such participant may, pursuant to an advance written election delivered to the Company no later than the
date specified by the Committee, receive a portion of the cash compensation otherwise due to such participant in the form of shares
of Unrestricted Stock either currently or on a deferred basis.

 

(c)
Restrictions on Transfers. The right to receive shares of Unrestricted Stock on a deferred basis may not be sold, assigned,
transferred, pledged or otherwise encumbered, other than by will or the laws of descent and distribution.

 

SECTION
8 TAX WITHHOLDING

 

(a)
Payment by Participant. Each participant shall, no later than the date as of which the value of an Award or of any Stock
or other amounts received thereunder first becomes includable in the gross income of the participant for Federal income tax purposes,
pay to the Company, or make arrangements satisfactory to the Committee regarding payment of, any federal, state, or local taxes
of any kind required by law to be withheld with respect to such income. The Company and its Subsidiaries shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the participant.

 

(b)
Payment in Stock. Subject to approval by the Committee, a participant may elect to have the minimum required tax withholding
obligation satisfied, in whole or in part, by (i) authorizing the Company to withhold from shares of Stock to be issued pursuant
to any Award a number of shares with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy
the withholding amount due, or (ii) transferring to the Company shares of Stock owned by the participant with an aggregate Fair
Market Value (as of the date the withholding is effected) that would satisfy the withholding amount due.

 

    	10 

    	 

    

 

SECTION
9 TRANSFER, LEAVE OF ABSENCE, ETC.

 

For
purposes of the Plan, the following events shall not be deemed a termination of the employment of a Plan participant by the Company
or its Subsidiaries and Affiliates:

 

(a)
a transfer of employment to the Company from a Subsidiary or Affiliate, or a transfer of employment to a Subsidiary or Affiliate
from the Company, or a transfer of employment from one Subsidiary or Affiliate to another; or

 

(b)
an approved leave of absence for military service or sickness, or for any other purpose approved by (as applicable) the Company
or its Subsidiary or Affiliate, if the employee’s right to re-employment is guaranteed either by a statute or by contract
or under the policy pursuant to which the leave of absence was granted or if the Committee otherwise so provides in writing.

 

SECTION
10 AMENDMENTS AND TERMINATION

 

The
Board may, at any time, amend or discontinue the Plan and the Committee may, at any time, amend or cancel any outstanding Award
(or provide substitute Awards at the same or reduced exercise or purchase price or with no exercise or purchase price in a manner
not inconsistent with the terms of the Plan), but such price, if any, must satisfy the requirements which would apply to the substitute
or amended Award if it were then initially granted under this Plan for the purpose of satisfying changes in law or for any other
lawful purpose, but no such action shall adversely affect rights under any outstanding Award without the holder’s consent.
If and to the extent determined by the Committee to be required by the Code to ensure that Incentive Stock Options granted under
the Plan are qualified under Section 422 of the Code, Plan amendments shall be subject to approval by the Company’s stockholders
who are eligible to vote at a meeting of stockholders. Nothing in this Section 10 shall limit the Board’s or Committee’s
authority to take any action permitted pursuant to Section 3(c).

 

SECTION
11 STATUS OF PLAN

 

With
respect to the portion of any Award that has not been exercised and any payments in cash, Stock or other consideration not received
by a participant, a participant shall have no rights greater than those of a general creditor of the Company unless the Committee
shall otherwise expressly determine in connection with any Award or Awards. In its sole discretion, the Committee may authorize
the creation of trusts or other arrangements to meet the Company’s obligations to deliver Stock or make payments with respect
to Awards hereunder, provided that the existence of such trusts or other arrangements is consistent with the foregoing
sentence.

 

    	11 

    	 

    

 

SECTION
12 GENERAL PROVISIONS

 

(a)
No Distribution; Compliance with Legal Requirements. The Committee may require each person acquiring Stock pursuant to
an Award to represent to and agree with the Company in writing that such person is acquiring the shares without a view to distribution
thereof. No shares of Stock shall be issued pursuant to an Award until all applicable securities law and other legal and stock
exchange or similar requirements have been satisfied. The Committee may require the placing of such stop-orders and restrictive
legends on certificates for Stock and Awards as it deems appropriate.

 

(b)
Delivery of Stock Certificates. Stock certificates to participants under this Plan shall be deemed delivered for all purposes
when the Company or a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed
to the participant, at the participant’s last known address on file with the Company.

 

(c)
Other Compensation Arrangements; No Employment Rights. Nothing contained in this Plan shall prevent the Board from
adopting other or additional compensation arrangements, including trusts, and such arrangements may be either generally applicable
or applicable only in specific cases. The adoption of this Plan and the grant of Awards do not confer upon any employee any right
to continued employment with the Company or any Subsidiary or Affiliate.

 

(d)
Trading Policy Restrictions. Option exercises and other Awards under the Plan shall be subject to such Company’s
insider-trading-policy-related restrictions, terms and conditions as may be established by the Committee, or in accordance with
policies set by the Committee, from time to time.

 

(e)
Loans to Award Recipients. The Company shall have the authority to make loans to recipients of Awards hereunder (including
to facilitate the purchase of shares) and shall further have the authority to issue shares for promissory notes hereunder.

 

SECTION
13 EFFECTIVE DATE OF PLAN

 

This
Plan shall become effective upon its adoption by the Board and, thereafter, the Stock Options and other Awards may be granted
hereunder; provided, however, that no Stock may be issued hereunder prior to the approval of the Plan by the holders of a majority
of the votes cast at a meeting of stockholders at which a quorum is present or by written consent in accordance with applicable
law.

 

SECTION
14 GOVERNING LAW

 

This
Plan and all Awards and actions taken thereunder shall be governed by Nevada law, applied without regard to conflict of law principles.

 

	ADOPTED
    BY BOARD OF DIRECTORS:	/s/
    Ralph Salvagno	 
	 	 	 
	ADOPTED
    ON:	June
    9, 2016	 

 

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