Document:

CHANTICLEER
HOLDINGS, INC. 

 

2014
STOCK INCENTIVE PLAN

 

		1.	Definitions

 

In addition to other
terms defined herein or in an Award Agreement, the following terms shall have the meanings given below:

 

(a)          Administrator
means the Board, and, upon its delegation of all or part of its authority to administer the Plan to the Committee, the Committee.

 

(b)         Affiliate
means any Parent or Subsidiary of the Company, and also includes any other business entity which is controlled by, under common
control with or controls the Company; provided, however, that the term “Affiliate” shall be construed in a manner in
accordance with the registration provisions of applicable federal securities laws if and to the extent required.

 

(c)         Applicable
Law means any applicable laws, rules or regulations (or similar guidance), including but not limited to the Securities Act,
the Exchange Act, the Code and the listing or other rules of any applicable stock exchange.

 

(d)         Award
means, individually or collectively, a grant under the Plan of an Option (including an Incentive Option or a Nonqualified
Option); a Stock Appreciation Right (including a Related SAR or a Freestanding SAR); a Restricted Award (including a Restricted
Stock Award or a Restricted Unit Award); a Performance Award (including a Performance Share Award or a Performance Unit Award);
a Phantom Stock Award, an Other Stock-Based Award; a Dividend Equivalent Award; and/or any other award granted under the Plan.

 

(e)         Award Agreement
means an award agreement
(which may be in written or electronic form, in the Administrator’s discretion, and which includes any amendment or supplement
thereto) between the Company and a Participant specifying the terms, conditions and restrictions of an Award granted to the Participant.
An Award Agreement may also state such other
terms, conditions and restrictions, including but not limited to terms, conditions and restrictions applicable to shares of Common
Stock or any other benefit underlying an Award, as may be established by the Administrator.

 

(f)         Base Price
means, with respect to an SAR, the initial price assigned to the SAR.

 

(g)        Board
or Board of Directors means the Board of Directors of the Company.

 

(h)        Cause
means, unless the Administrator determines otherwise, a Participant’s termination of employment or service resulting from
the Participant’s (i) termination for “Cause” as defined under the Participant’s employment, change in
control, consulting or other agreement with the Company or an Affiliate, if any, or (ii) if the Participant has not entered into
any such agreement (or, if any such agreement does not define “Cause”), then the Participant’s termination shall
be for “Cause” if termination results due to the Participant’s (A) dishonesty; (B) failure to perform his duties
for the Company or an Affiliate; or (C) engaging in fraudulent conduct or conduct that could be materially damaging to the Company
without a reasonable good faith belief that such conduct was in the best interest of the Company. The determination of “Cause”
shall be made by the Administrator and its determination shall be final and conclusive. Without in any way limiting the effect
of the foregoing, for purposes of the Plan and an Award, a Participant’s employment or service shall be deemed to have terminated
for Cause if, after the Participant’s employment or service has terminated, facts and circumstances are discovered that would
have justified, in the opinion of the Administrator, a termination for Cause.

 

    	 

    	 

    

 

(i)          A
Change of Control shall (except as may be otherwise provided in an individual Award Agreement or as may be otherwise required,
if at all, under Code Section 409A) be deemed to have occurred on the
earliest of the following dates:

 

i.         The
date any entity or person shall have become the beneficial owner of, or shall have obtained voting control over, fifty-one percent
(51%) or more of the total voting power of the Company’s then outstanding voting stock;

 

ii.        The
date of the consummation of (A) a merger, consolidation or reorganization of the Company (or similar transaction involving the
Company), in which the holders of the Common Stock immediately prior to the transaction have voting control over less than fifty-one
percent (51%) of the voting securities of the surviving corporation immediately after such transaction, or (B) the sale or disposition
of all or substantially all the assets of the Company; or

 

iii.       The
date there shall have been a change in a majority of the Board of Directors of the Company within a 12-month period unless the
nomination for election by the Company’s stockholders of each new Director was approved by the vote of two-thirds of the
members of the Board (or a committee of the Board, if nominations are approved by a Board committee rather than the Board) then
still in office who were in office at the beginning of the 12-month period.

 

(For the purposes herein, the
term “person” shall mean any individual, corporation, partnership, group, association or other person, as such term
is defined in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, other than the Company, a Subsidiary of the Company or
any employee benefit plan(s) sponsored or maintained by the Company or any Subsidiary thereof, and the term “beneficial owner”
shall have the meaning given the term in Rule 13d-3 under the Exchange Act.)

 

For the purposes of clarity,
a transaction shall not constitute a Change of Control if its principal purpose is to change the state of the Company’s incorporation,
create a holding company that would be owned in substantially the same proportions by the persons who held the Company’s
securities immediately before such transaction or is another transaction of other similar effect.

 

Notwithstanding
the preceding provisions of Section 1(i), in the event that any Awards granted under the Plan are deemed to be deferred compensation
subject to (and not exempt from) the provisions of Code Section 409A, then distributions related to such Awards to be made upon
a Change of Control may be permitted, in the Administrator's discretion, upon the occurrence of one or more of the following events
(as they are defined and interpreted under Code Section 409A): (A) a change in the ownership of the Company; (B) a change in effective
control of the Company; or (C) a change in the ownership of a substantial portion of the assets of the Company.

 

The
Administrator shall have full and final authority, in its discretion (subject
to any Code Section 409A considerations), to determine whether a Change of Control of the Company has occurred, the date of the
occurrence of such Change of Control and any incidental matters relating thereto.

 

(j)          Code
means the Internal Revenue Code of 1986, as amended. Any
reference herein to a specific Code section shall be deemed to include all related regulations or other guidance with respect
to such Code section.

 

    	2

    	 

    

 

(k)         Committee
means the Compensation Committee of the Board or other committee of the Board which may be
appointed to administer the Plan in whole or in part.

 

(l)          Common Stock
means the common stock of Chanticleer Holdings, Inc., $0.0001 par value, or any successor securities thereto.

 

(m)        Company
means Chanticleer Holdings, Inc., a Delaware corporation, together with any successor thereto.

 

(n)        Covered
Employee shall have the meaning given the term in Code
Section 162(m).

 

(o)        Director
means a member of the Board or of the board of directors of an Affiliate.

 

(p)        Disability
shall, except as may be otherwise determined by the Administrator (taking into account any Code Section 409A considerations),
as applied to any Participant, having the meaning given in any Award Agreement, employment agreement, change in control agreement,
consulting agreement or other similar agreement, if any, to which the Participant is a party, or, if there is no such agreement
(or if such agreement does not define “Disability”), “Disability” shall mean the inability of the Participant
to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can
be expected to result in death, or which has lasted or can be expected to last for a continuous period of not less than 12 months.
The Administrator shall have authority to determine if a Disability has occurred.

 

(q)        Displacement
shall, except as may be otherwise determined by the Administrator (taking into account any Code Section 409A considerations),
as applied to any Participant, be as defined in any Award Agreement, employment agreement, change in control agreement,
consulting agreement or other similar agreement, if any, to which the Participant is a party, or, if there is no such agreement
(or if such agreement does not define “Displacement”), “Displacement” shall mean the termination of the
Participant’s employment or service due to the elimination of the Participant’s job or position without fault on the
part of the Participant. The Administrator shall have authority to determine if a Displacement has occurred.

 

(r)         Dividend
Equivalent Awards shall mean a right granted to a Participant pursuant to Section 13 to receive the equivalent value (in cash
or shares of Common Stock) of dividends paid on Common Stock.

 

(s)         Effective
Date means the effective date of the Plan, as provided in Section 4.

 

(t)         Employee
means any person who is an employee of the Company or any Affiliate (including entities which become Affiliates after the
Effective Date of the Plan). For this purpose, an individual shall be considered to be an Employee
only if there exists between the individual and the Company or an Affiliate the legal and bona fide relationship of employer and
employee (taking into account Code Section 409A considerations if and to the extent applicable); provided, however, that, with
respect to Incentive Options, “Employee” means any person who is considered an employee of the Company or any Parent
or Subsidiary for purposes of Treas. Reg. Section 1.421-1(h) (or any successor provision related thereto).

 

(u)        Exchange
Act means the Securities Exchange Act of 1934, as amended.

 

    	3

    	 

    

 

(v)        Fair Market
Value per share of the Common Stock shall be established in good faith by the Administrator and, unless otherwise determined
by the Administrator, the Fair Market Value shall be determined in accordance with the following provisions: (A) if the shares
of Common Stock are listed for trading on the NASDAQ Capital Market (“Nasdaq”) or another national or
regional stock exchange, the Fair Market Value shall be the closing sales price per share of the shares on Nasdaq or other principal
stock exchange on which such securities are listed on the date an Award is granted or other determination is made (such date of
determination being referred to herein as a “valuation date”), or, if there is no transaction on such date,
then on the trading date nearest preceding the valuation date for which closing price information is available, and, provided further,
if the shares are not listed for trading on Nasdaq or another stock exchange but are regularly quoted on an automated quotation
system (including the OTC Bulletin Board) or by a recognized securities dealer, the Fair Market Value shall be the closing sales
price for such shares as quoted on such system or by such securities dealer on the valuation date, but if selling prices are not
reported, the Fair Market Value of a share of Common Stock shall be the mean between the high bid and low asked prices for the
Common Stock on the valuation date (or, if no such prices were reported on that date, on the last date such prices were reported),
as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or (B) if the shares of Common
Stock are not listed or reported in any of the foregoing, then the Fair Market Value shall be determined by the Administrator based
on such valuation measures or other factors as it deems appropriate. Notwithstanding the foregoing, (i) with respect to the grant
of Incentive Options, the Fair Market Value shall be determined by the Administrator in accordance with the applicable provisions
of Section 20.2031-2 of the Federal Estate Tax Regulations, or in any other manner consistent with the Code Section 422; and (ii)
Fair Market Value shall be determined in accordance with Code Section 409A if and to the extent required.

 

(w)        Freestanding
SAR means an SAR that is granted without relation to an Option, as provided in Section 8.

 

(x)         Good Reason
means, unless the Administrator determines otherwise, in the context of a Change of Control, a Participant’s termination
of employment or service resulting from the Participant’s (i) termination for “Good Reason” as defined under
the Participant’s employment, change in control, consulting or other agreement with the Company or an Affiliate, if any,
or (ii) if the Participant has not entered into any agreement (or, if any such agreement does not define “Good Reason”),
then, a Participant’s termination shall be for “Good Reason” if termination results due to any of the following
without the Participant’s consent: (A) a material reduction in the Participant’s base salary as in effect immediately
prior to the date of the Change of Control, (B) the assignment to the Participant of duties or responsibilities materially inconsistent
with, or a material diminution in, the Participant’s position, authority, duties or responsibilities as in effect immediately
prior to the Change of Control, or (C) the relocation of the Participant’s principal place of employment by more than 50
miles from the location at which the Participant was stationed immediately prior to the Change of Control. Notwithstanding the
foregoing, with respect to Directors, unless the Administrator determines otherwise, a Director’s termination from service
on the Board shall be for “Good Reason” if the Participant ceases to serve as a Director, or, if the Company is not
the surviving company in the Change of Control event, a member of the board of directors of the surviving entity, in either case,
due to the Participant’s failure to be nominated to serve as a director of such entity or the Participant’s failure
to be elected to serve as a director of such entity, but not due to the Participant’s decision not to continue service on
the Board of Directors of the Company or the board of directors of the surviving entity, as the case may be. An event or condition
that would otherwise constitute “Good Reason” shall constitute Good Reason only if the Company fails to rescind or
cure such event or condition within 30 days after receipt from the Participant of written notice of the event which constitutes
Good Reason, and Good Reason shall cease to exist for any event or condition described herein on the 60th day following
the later of the occurrence or the Participant’s knowledge thereof, unless the Participant has given the Company written
notice thereof prior to such date. The determination of “Good Reason” shall be made by the Administrator and its determination
shall be final and conclusive.

 

    	4

    	 

    

 

(y)        Incentive
Option means an Option that is designated by the Administrator as an Incentive Option pursuant to Section 7 and intended to
meet the requirements of incentive stock options under Code Section 422.

 

(z)         Independent
Contractor means an independent contractor, consultant or advisor providing services (other than capital-raising services)
to the Company or an Affiliate.

 

(aa)       Nonqualified
Option means an Option granted under Section 7 that is not intended to qualify as an incentive stock option under Code Section
422.

 

(bb)      Option
means a stock option granted under Section 7 that entitles the holder to purchase from the Company a stated number of shares of
Common Stock at the Option Price, and subject to such terms and conditions, as may be set forth in the Plan or an Award Agreement
or established by the Administrator.

 

(cc)       Option Period
means the term of an Option, as provided in Section 7(d).

 

(dd)      Option Price
means the price at which an Option may be exercised, as provided in Section 7(b).

 

(ee)       Other Stock-Based
Award means a right, granted to a Participant under Section 12, that relates to or is valued by referenced to shares of Common
Stock or other Awards relating to shares of Common Stock.

 

(ff)        Parent
shall mean a “parent corporation,” whether now or hereafter existing, as defined in Code Section 424(e).

 

(gg)      Participant
means an individual who is an Employee employed by, or a Director or Independent Contractor providing services to, the Company
or an Affiliate who satisfies the requirements of Section 6 and is selected by the Administrator to receive an Award under the
Plan.

 

(hh)      Performance
Award means a Performance Share Award and/or a Performance Unit Award, as provided in Section 10.

 

(ii)         Performance
Measures mean one or more performance factors which may be established by the Administrator with respect to an Award. Performance
factors may be based on such corporate, business unit or division and/or individual performance factors and criteria as the Administrator
in its discretion may deem appropriate; provided, however, that, if and to the extent required under Code Section 162(m) with
respect to Awards granted to Covered Employees that are intended to qualify as “performance-based compensation” under
Code Section 162(m), such performance factors shall be objective and shall be based upon one or more of the following criteria
(as determined by the Administrator in its discretion): (i) revenues or sales; (ii) gross margins; (iii) earnings per
share; (iv)  product production or shipments; (v) consolidated earnings before or after taxes (including earnings before
interest, taxes, depreciation and amortization); (vi) net income; (vii) operating income; (viii) book value per share; (ix) return
on stockholders' equity; (x) return on investment; (xi) return on capital; (xii) improvements in capital structure; (xiii) expense
management; (xiv) operating margins; (xv) maintenance or improvement of gross margins or operating margins; (xvi) stock price
or total stockholder return; (xvii) market share; (xviii) profitability; (xix) costs; (xx) cash flow or free cash flow; (xxi)
working capital; (xxii) return on assets; (xxiii) economic wealth created, and/or (xxiv) strategic business criteria, based on
meeting specified goals or objectives related to market penetration, geographic business expansion, cost targets, customer satisfaction,
employee satisfaction, management of employment practices and employee benefits, management of litigation, management of information
technology, goals relating to acquisitions or divestitures of products, product lines, subsidiaries, affiliates or joint ventures,
quality matrices, customer service matrices and/or execution of pre-approved corporate strategy. In addition, with respect to
Participants who are not Covered Employees, the Administrator may approve performance objectives based on other criteria, which
may or may not be objective. To the extent that Code
Section 162(m) is applicable, the Administrator shall, within the time and in the manner prescribed by Code
Section 162(m), define in an objective fashion the manner of calculating the Performance Measures it selects to use for
Covered Employees during any specific performance period. The foregoing criteria may relate to the Company, one or more of its
Affiliates or one or more of its divisions, units, partnerships, joint venturers or minority investments, facilities, product
lines or products or any combination of the foregoing. The targeted level or levels of performance with respect to such business
criteria may be established at such levels and on such terms as the Administrator may determine, in its discretion, including
but not limited to on an absolute basis, in relation to performance in a prior performance period, and/or relative to one or more
peer group companies or indices, or any combination thereof. Such performance factors may be adjusted or modified due to
extraordinary items, transactions, events or developments, or in recognition of, or in anticipation of, any other unusual or nonrecurring
events affecting the Company or the financial statements of the Company, or in response to, or in anticipation of, changes in
Applicable Law, accounting principles or business conditions, in each case as determined by the Administrator (subject to any
Code Section 162(m) restrictions applicable to Covered Employees for compensation that is intended to qualify as “performance-based
compensation” under Code Section 162(m)).

 

    	5

    	 

    

 

(jj)         Performance
Share means an Award granted under Section 10, in an amount determined by the Administrator and specified in an Award Agreement,
stated with reference to a specified number of shares of Common Stock, that entitles the holder to receive shares of Common Stock,
a cash payment or a combination of Common Stock and cash (as determined by the Administrator), subject to the terms of the Plan
and the terms and conditions established by the Administrator.

 

(kk)       Performance
Unit means an Award granted under Section 10, in an amount determined by the Administrator and specified in an Award Agreement,
that entitles the holder to receive shares of Common Stock, a cash payment or a combination of Common Stock and cash (as determined
by the Administrator), subject to the terms of the Plan and the terms and conditions established by the Administrator.

 

(ll)         Phantom
Stock Award means an Award granted under Section 11, entitling a Participant to a payment in cash, shares of Common Stock or
a combination of cash and Common Stock (as determined by the Administrator), following the completion of the applicable vesting
period and compliance with the terms of the Plan and other terms and conditions established by the Administrator. The unit value
of a Phantom Stock Award shall be based on the Fair Market Value of a share of Common Stock.

 

(mm)     Plan
means the Chanticleer Holdings, Inc. 2014 Stock Incentive Plan, as it may be hereafter amended and/or restated.

 

(nn)      Related
SAR means an SAR granted under Section 8 that is granted in relation to a particular Option and that can be exercised only
upon the surrender to the Company, unexercised, of that portion of the Option to which the SAR relates.

 

(oo)      Restricted
Award means a Restricted Stock Award and/or a Restricted Stock Unit Award, as provided in Section 9.

 

(pp)      Restricted
Stock Award means shares of Common Stock granted to a Participant under Section 9. Shares of Common Stock subject to a Restricted
Stock Award shall cease to be restricted when, in accordance with the terms of the Plan and the terms and conditions established
by the Administrator, the shares vest and become transferable and free of substantial risks of forfeiture.

 

(qq)      Restricted
Stock Unit means a Restricted Award granted to a Participant pursuant to Section 9 which is settled, if at all, (i) by the
delivery of one share of Common Stock for each Restricted Stock Unit, (ii) in cash in an amount equal to the Fair Market Value
of one share of Common Stock for each Restricted Stock Unit, or (iii) in a combination of cash and shares equal to the Fair Market
Value of one share of Common Stock for each Restricted Stock Unit, as determined by the Administrator. A Restricted Stock Unit
represents the promise of the Company to deliver shares of Common Stock, cash or a combination thereof, as applicable, at the end
of the applicable restriction period if and only to the extent the Award vests and ceases to be subject to forfeiture, subject
to compliance with the terms of the Plan and Award Agreement and any terms and conditions established by the Administrator.

 

(rr)        Retirement
shall, except as may be otherwise determined by the Administrator (taking into account any Code Section 409A considerations), as
applied to any Participant, have the meaning given in an Award Agreement, employment agreement, change in control agreement, consulting
agreement or other similar agreement, if any, to which the Participant is a party, or, if there is no such agreement (or if such
agreement does not define “Retirement”), then “Retirement” shall, unless the Administrator determines otherwise,
mean retirement in accordance with the retirement policies and procedures established by the Company. The Administrator shall have
authority to determine if a Retirement has occurred.

 

(ss)       SAR
means a stock appreciation right granted under Section 8 entitling the Participant to receive, with respect to each share of Common
Stock encompassed by the exercise of such SAR, the excess of the Fair Market Value on the date of exercise over the Base Price,
subject to the terms of the Plan and Award Agreement and any other terms and conditions established by the Administrator. References
to “SARs” include both Related SARs and Freestanding SARs, unless the context requires otherwise.

 

(tt)        Securities
Act means the Securities Act of 1933, as amended.

 

(uu)      Subsidiary
shall mean a “subsidiary corporation,” whether now or hereafter existing, as defined in Code Section 424(f).

 

(vv)      Termination
Date means the date of termination of a Participant’s employment or service for any reason, as determined by the Administrator.

 

    	6

    	 

    

 

		2.	Purpose

 

The purposes of the
Plan are to encourage and enable selected Employees, Directors and Independent Contractors of the Company and its Affiliates to
acquire or to increase their holdings of Common Stock and other equity-based interests in the Company in order to promote a closer
identification of their interests with those of the Company and its stockholders, and to provide flexibility to the Company in
its ability to motivate, attract and retain the services of Participants upon whose judgment, interest and special effort the successful
conduct of its operation largely depends. These purposes may be carried out through the granting of Awards to selected Participants,
including the granting of Options in the form of Incentive Stock Options and/or Nonqualified Options; SARs in the form of Freestanding
SARs and/or Related SARs; Restricted Awards in the form of Restricted Stock Awards and/or Restricted Stock Units; Performance Awards
in the form of Performance Shares and/or Performance Units; Phantom Stock Awards; Other Stock-Based Awards; and/or Dividend Equivalent
Awards.

 

		3.	Administration of the Plan

 

(a)         The Plan shall
be administered by the Board of Directors of the Company or, upon its delegation, by the Committee (or a subcommittee thereof).
To the extent required under Rule 16b-3 adopted under the Exchange Act, the Committee shall be comprised solely of two or more
“non-employee directors,” as such term is defined in Rule 16b-3, or as may otherwise be permitted under Rule 16b-3.
Further, to the extent required by Code
Section 162(m), the Plan shall be administered by a committee comprised of two or more “outside directors”
(as such term is defined in Code Section 162(m)) or as may
otherwise be permitted under Code Section 162(m). In addition, Committee members shall qualify
as “independent directors” under applicable stock exchange rules if and to the extent required.

 

(b)        Subject to
the provisions of the Plan, the Administrator shall have full and final authority in its discretion to take any action with respect
to the Plan including, without limitation, the authority (i) to determine all matters relating to Awards, including selection
of individuals to be granted Awards, the types of Awards, the number of shares of Common Stock, if any, subject to an Award, and
all terms, conditions, restrictions and limitations of an Award; (ii) to prescribe the form or forms of Award Agreements evidencing
any Awards granted under the Plan; (iii) to establish, amend and rescind rules and regulations for the administration of the Plan;
and (iv) to construe and interpret the Plan, Awards and Award Agreements made under the Plan, to interpret rules and regulations
for administering the Plan and to make all other determinations deemed necessary or advisable for administering the Plan.
In addition, (i) the Administrator shall have the authority, in its sole discretion, to
accelerate the date that any Award which was not otherwise exercisable, vested or earned shall become exercisable, vested or earned
in whole or in part without any obligation to accelerate such date with respect to any other Award granted to any recipient; and
(ii) the Administrator may in its sole discretion modify or extend the terms and conditions for exercise, vesting or earning of
an Award (in each case, taking into account any Code Section 409A considerations).
The Administrator may determine that a Participant’s rights, payments and/or benefits with respect to an Award (including
but not limited to any shares issued or issuable and/or cash paid or payable with respect to an Award) shall be subject to reduction,
cancellation, forfeiture or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable
vesting or performance conditions of an Award. Such events may include, but shall not be limited to, termination of employment
for Cause, violation of policies of the Company or an Affiliate, breach of non-solicitation, noncompetition, confidentiality or
other restrictive covenants that may apply to the Participant, other conduct by the Participant that is determined by the Administrator
to be detrimental to the business or reputation of the Company or any Affiliate, and/or other circumstances where such reduction,
cancellation, forfeiture or recoupment is required by Applicable Law. In addition, the Administrator shall have the authority
and discretion to establish terms and conditions of Awards (including but not limited to the establishment of subplans) as the
Administrator determines to be necessary or appropriate to conform to the applicable requirements or practices of jurisdictions
outside of the United States. In addition to action by meeting in accordance with Applicable Law, any action of the Administrator
with respect to the Plan may be taken by a written instrument signed by all of the members of the Board or Committee, as appropriate,
and any such action so taken by written consent shall be as fully effective as if it had been taken by a majority of the members
at a meeting duly held and called. All determinations of the Administrator with respect to the Plan and any Award or Award Agreement
will be final and binding on the Company and all persons having or claiming an interest in any Award granted under the Plan. No
member of the Board or Committee, as applicable, shall be liable while acting as Administrator for any action or determination
made in good faith with respect to the Plan, an Award or an Award Agreement. The members of the Board or Committee, as applicable,
shall be entitled to indemnification and reimbursement in the manner and to the fullest extent provided in the Company’s
certificate of incorporation and/or bylaws and/or pursuant to Applicable Law.

 

(c)         Notwithstanding
the other provisions of Section 3, the Administrator may delegate to one or more officers of the Company and/or a subcommittee
comprised of one or more members of the Committee the authority to grant Awards to eligible Participants, and to make any or all
of the determinations reserved for the Administrator in the Plan and summarized in Section 3(b) with respect to such Awards (subject
to any restrictions imposed by Applicable Law and such terms and conditions as may be established by the Administrator); provided,
however, that, if and to the extent required by Section 16 of the Exchange Act or Code
Section 162(m), the Participant, at the time of said grant or other determination, (i) is not deemed to be an officer
or director of the Company within the meaning of Section 16 of the Exchange Act; and (ii) is not deemed to be a Covered Employee
as defined under Code Section
162(m). To the extent that the Administrator has delegated authority to grant Awards pursuant to this Section 3(c) to one or more
officers of the Company and/or to a subcommittee of the Committee, references to the “Administrator” shall include
references to such officer(s) and/or subcommittee, subject, however, to the requirements of the Plan, Rule 16b-3, Code
Section 162(m) and other Applicable Law.

 

    	7

    	 

    

 

		4.	Effective Date

 

The Effective Date
of the Plan shall be February 3, 2014 (the “Effective Date”). Awards may be granted on or after the Effective
Date, but no Awards may be granted after February 3, 2024. Awards that are outstanding at the end of the Plan term (or such earlier
termination date as may be established by the Board pursuant to Section 16(a)) shall continue in accordance with their terms, unless
otherwise provided in the Plan or an Award Agreement.

 

		5.	Shares of Stock Subject to the Plan; Award Limitations

 

(a)         Shares of
Stock Subject to the Plan: Subject to adjustments as provided in Section 5(d), the maximum number of shares of Common Stock
that may be issued pursuant to Awards granted under the Plan shall not exceed 4,000,000 shares. Shares delivered under the Plan
shall be authorized but unissued shares, treasury shares or shares purchased on the open market or by private purchase. The Company
hereby reserves sufficient authorized shares of Common Stock to meet the grant of Awards hereunder.

 

(b)         Award Limitations:
Notwithstanding any provision in the Plan to the contrary, the following limitations shall apply to Awards granted under the Plan,
in each case subject to adjustments pursuant to Section 5(d):

 

i.         The
maximum number of shares of Common Stock that may be issued under the Plan pursuant to the grant of Incentive Options shall not
exceed 4,000,000 shares;

 

ii.        In
any 12-month period, no Participant may be granted Options and SARs that are not related to an Option for more than 500,000 shares
of Common Stock (or the equivalent value thereof based on the Fair Market Value per share of the Common Stock on the date of grant
of an Award);

 

iii.       In
any 12-month period, no Participant may be granted Awards other than Options or SARs that are
settled in shares of Common Stock for more than 500,000 shares of Common Stock (or the equivalent value thereof based on
the Fair Market Value per share of the Common Stock on the date of grant of an Award). 

 

(For purposes of Section 5(b)(ii)
and (iii), an Option and Related SAR shall be treated as a single Award.)

 

(c)         Shares Not
Subject to Limitations: The following will not be applied to the share limitations of Section 5(a) above: (i) dividends, including
dividends paid in shares, or dividend equivalents paid in cash in connection with outstanding Awards; (ii) Awards which are settled
in cash rather than the issuance of shares; (iii) any shares subject to an Award if the Award is forfeited, cancelled, terminated,
expires or lapses for any reason without the issuance of shares underlying the Award or any shares subject to an Award which shares
are forfeited to, or repurchased or reacquired by, the Company; and (iv) any shares surrendered by a Participant or withheld by
the Company to pay the Option Price or purchase price for an Award or shares or used to satisfy any tax withholding requirements
in connection with the exercise, vesting or earning of an Award if, in accordance with the terms of the Plan, a Participant pays
such Option Price or purchase price or satisfies such tax withholding requirements by either tendering previously owned shares
or having the Company withhold shares. Further, (i) shares issued under the Plan through the settlement, assumption or substitution
of outstanding awards granted by another entity or obligations to grant future awards as a condition of or in connection with a
merger, acquisition or similar transaction involving the Company acquiring another entity shall not reduce the maximum number of
shares of Common Stock available for delivery under the Plan; and (ii) available shares under a stockholder approved plan of an
acquired company (as appropriately adjusted to reflect the transaction) may be used for Awards under the Plan (subject to applicable
stock exchange listing requirements) and will not reduce the maximum number of shares available under the Plan. 

 

    	8

    	 

    

 

(d)         Adjustments;
Right to Issue Additional Securities: If there is any change in the outstanding shares of Common Stock because of a merger,
consolidation or reorganization involving the Company, or if the Board of Directors of the Company declares a stock dividend, stock
split distributable in shares of Common Stock or reverse stock split, combination or reclassification of the Common Stock, or if
there is a similar change in the capital stock structure of the Company affecting the Common Stock (excluding conversion of convertible
securities by the Company and/or the exercise of warrants by their holders), then the number of shares of Common Stock reserved
for issuance under the Plan shall be correspondingly adjusted, and the Administrator shall make such adjustments to Awards or to
any provisions of this Plan as the Administrator deems equitable to prevent dilution or enlargement of Awards or as may otherwise
be advisable. Nothing in the Plan, an Award or an Award Agreement shall limit the ability of the Company to issue additional securities
(including but not limited to the issuance of other options or other derivative securities, warrants, additional shares or classes
of Common Stock, preferred stock and/or other convertible securities).

 

		6.	Eligibility

 

An Award may be granted
only to an individual who satisfies all of the following eligibility requirements on the date the Award is granted:

 

(a)         The individual
is either (i) an Employee, (ii) a Director or (iii) an Independent Contractor.

 

(b)        With respect
to the grant of Incentive Options, the individual is otherwise eligible to participate under Section 6, is an Employee of the
Company or a Parent or Subsidiary and does not own, immediately before the time that the Incentive Option is granted, stock possessing
more than 10% of the total combined voting power of all classes of stock of the Company or a Parent or Subsidiary. Notwithstanding
the foregoing, an Employee who owns more than 10% of the total combined voting power of the Company or a Parent or Subsidiary
may be granted an Incentive Option if the Option Price is at least 110% of the Fair Market Value of the Common Stock, and the
Option Period does not exceed five years. For this purpose, an individual will be deemed to own stock which is attributable to
him under Code Section
424(d). 

 

(c)         With respect
to the grant of substitute awards or assumption of awards in connection with a merger, consolidation, acquisition, reorganization
or similar transaction involving the Company or an Affiliate, the recipient is otherwise eligible to receive the Award and the
terms of the award are consistent with the Plan and Applicable Law (including, to the extent necessary, the federal securities
laws registration provisions, Code Section 409A and Code
Section 424(a)).

 

(d)        The individual,
being otherwise eligible under this Section 6, is selected by the Administrator as an individual to whom an Award shall be granted
(as defined above, a “Participant”).

 

    	9

    	 

    

 

		7.	Options

 

(a)         Grant of
Options: Subject to the limitations of the Plan, the Administrator may in its discretion grant Options to such eligible individuals
in such numbers, subject to such terms and conditions, and at such times as the Administrator shall determine. Both Incentive
Options and Nonqualified Options may be granted under the Plan, as determined by the Administrator; provided, however, that Incentive
Options may only be granted to Employees of the Company or a Parent or Subsidiary. To the extent that an Option is designated
as an Incentive Option but does not qualify as such under Code
Section 422, the Option (or portion thereof) shall be treated as a
Nonqualified Option. An Option may be granted with or without a Related SAR.

 

(b)        Option Price:
The Option Price per share at which an Option may be exercised shall be established by the Administrator and stated in the Award
Agreement evidencing the grant of the Option; provided, that (i) the Option Price of an Option shall be no less than 100% of the
Fair Market Value per share of the Common Stock as determined on the date the Option is granted (or 110% of the Fair Market Value
with respect to Incentive Options granted to an Employee who owns stock possessing more than 10% of the total voting power of
all classes of stock of the Company or a Parent or Subsidiary, as provided in Section 6(b)); and (ii) in no event shall the Option
Price per share of any Option be less than the par value per share of the Common Stock. Notwithstanding the foregoing, the Administrator
may in its discretion authorize the grant of substitute or assumed options of an acquired entity with an Option Price not equal
to 100% of the Fair Market Value of the stock on the date of grant, if the terms of
such substitution or assumption otherwise comply, to the extent deemed applicable, with
Code Section 409A and/or Code Section 424(a).

 

(c)         Date of
Grant: An Option shall be considered to be granted on the date that the Administrator acts to grant the Option, or on such
other date as may be established by the Administrator in accordance with Applicable Law.

 

(d)        Option Period
and Limitations on the Right to Exercise Options:

 

i.         The
Option Period shall be determined by the Administrator at the time the Option is granted and shall be stated in the Award Agreement.
The Option Period shall not extend more than 10 years from the date on which the Option is granted (or five years with respect
to Incentive Options granted to an Employee who owns stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company or a Parent or Subsidiary, as provided in Section 6(b)). Any Option or portion thereof not exercised
before expiration of the Option Period shall terminate. The period or periods during which, and the terms and conditions pursuant
to which, an Option may vest
and become exercisable shall be determined by the Administrator in its discretion, subject
to the terms of the Plan.

 

    	10

    	 

    

 

ii.        An
Option may be exercised by giving written notice to the Company in form acceptable to the Administrator at such place and subject
to such conditions as may be established by the Administrator or its designee. Such notice shall specify the number of shares to
be purchased pursuant to an Option and the aggregate purchase price to be paid therefor and shall be accompanied by payment of
such purchase price. Unless an Award Agreement provides otherwise, such payment shall be in the form of cash or cash equivalent;
provided that, except where prohibited by the Administrator or Applicable Law (and subject to such terms and conditions as may
be established by the Administrator), payment may also be made:

 

(A)       By delivery
(by either actual delivery or attestation) of shares of Common Stock owned by the Participant for such time period, if any, as
may be determined by the Administrator;

 

(B)        By shares
of Common Stock withheld upon exercise;

 

(C)        By delivery
of written notice of exercise to the Company and delivery to a broker of written notice of exercise and irrevocable instructions
to promptly deliver to the Company the amount of sale or loan proceeds to pay the Option Price;

 

(D)        By such
other payment methods as may be approved by the Administrator and which are acceptable under Applicable Law; or

 

(E)        By any
combination of the foregoing methods.

 

Shares delivered or withheld
in payment on the exercise of an Option shall be valued at their Fair Market Value on the date of exercise, as determined by the
Administrator or its designee.

 

iii.       The
Administrator shall determine the extent, if any, to which a Participant may have the right to exercise an Option following termination
of the Participant’s employment or service with the Company. Such rights, if any, shall be subject to the sole discretion
of the Administrator, shall be stated in the individual Award Agreement, need not be uniform among all Options issued pursuant
to this Section 7, and may reflect distinctions based on the reasons for termination of employment or service. The Administrator
also shall have authority, in its sole discretion (taking into account any Code Section 409A considerations), to accelerate the
date for exercising all or any part of an Option which was not otherwise vested and exercisable, extend the period during which
an Option may be exercised, modify the other terms and conditions of exercise, or any combination of the foregoing.

 

(e)         Notice of
Disposition: If shares of Common Stock acquired upon exercise of an Incentive Option are disposed of within two years following
the date of grant or one year following the transfer of such shares to a Participant upon exercise, the Participant shall, promptly
following such disposition, notify the Company in writing of the date and terms of such disposition and provide such other information
regarding the disposition as the Administrator may reasonably require.

 

(f)         Limitation
on Incentive Options: In no event shall there first become exercisable by an Employee in any one calendar year Incentive Options
granted by the Company or any Parent or Subsidiary with respect to shares having an aggregate Fair Market Value (determined at
the time an Incentive Option is granted) greater than $100,000; provided that, if such limit is exceeded, then the first $100,000
of shares to become exercisable in such calendar year will be Incentive Options and the Options (or portion thereof) for shares
with a value in excess of $100,000 that first became exercisable in that calendar year will be Nonqualified Options. In the event
the Code or the regulations promulgated thereunder are amended after the Effective Date of the Plan to provide for a different
limitation on the Fair Market Value of shares permitted to be subject to Incentive Options, then such different limit shall be
automatically incorporated herein. To the extent that any Incentive Options are first exercisable by a Participant in excess of
the limitation described herein, the excess shall be considered a Nonqualified Option.

 

    	11

    	 

    

 

(g)        Nontransferability
of Options: Incentive Options shall not be transferable (including by sale, assignment, pledge or hypothecation) other than
transfers by will or the laws of intestate succession or, in the Administrator’s discretion, such transfers as may otherwise
be permitted in accordance with Treas. Reg. Section 1.421-1(b)(2) or Treas. Reg. Section 1.421-2(c) or any successor provisions
thereto. Nonqualified Options shall not be transferable (including by sale, assignment, pledge or hypothecation) other than by
will or the laws of intestate succession, except for transfers if and to the extent permitted by the Administrator in a manner
consistent with the registration provisions of the Securities Act. Except as may be permitted by the preceding, an Option shall
be exercisable during the Participant’s lifetime only by him or by his guardian or legal representative. The designation
of a beneficiary in accordance with the Plan does not constitute a transfer.

 

		8.	Stock Appreciation Rights

 

(a)         Grant of
SARs: Subject to the limitations of the Plan, the Administrator may in its discretion grant SARs to such eligible individuals,
in such numbers, upon such terms and at such times as the Administrator shall determine. SARs may be granted to the holder of
an Option (a “Related Option”) with respect to all or a portion of the shares of Common Stock subject to the
Related Option (a “Related SAR”) or may be granted separately to an eligible individual (a “Freestanding
SAR”). The Base Price per share of an SAR shall be no less than 100% of the Fair Market Value per share of the Common
Stock on the date the SAR is granted. Notwithstanding
the foregoing, the Administrator may in its discretion authorize the grant of substitute or assumed SARs of an acquired entity
with a Base Price per share not equal to at least 100% of the Fair Market Value of the stock on the date of grant, if the terms
of such substitution or assumption otherwise comply, to the extent deemed applicable, with Code Section 409A and/or Code Section
424(a). An SAR shall be considered to be granted on the date that the Administrator acts to grant the SAR, or on such other date
as may be established by the Administrator in accordance with Applicable Law.

 

(b)        Related
SARs: A Related SAR may be granted either concurrently with the grant of the Related Option or (if the Related Option is a
Nonqualified Option) at any time thereafter prior to the complete exercise, termination, expiration or cancellation of such Related
Option. The Base Price of a Related SAR shall be equal to the Option Price of the Related Option. Related SARs shall be exercisable
only at the time and to the extent that the Related Option is exercisable (and may be subject to such additional limitations on
exercisability as the Administrator may provide in an Award Agreement), and in no event after
the complete termination or full exercise of the Related Option. Notwithstanding the foregoing, a Related SAR that is related
to an Incentive Option may be exercised only to the extent that the Related Option is exercisable and only when the Fair Market
Value exceeds the Option Price of the Related Option. Upon the exercise of a Related SAR granted in connection with a Related
Option, the Option shall be canceled to the extent of the number of shares as to which the SAR is exercised, and upon the exercise
of a Related Option, the Related SAR shall be canceled to the extent of the number of shares as to which the Related Option is
exercised or surrendered.

 

(c)         Freestanding
SARs: An SAR may be granted without relationship to an Option (as defined above, a “Freestanding SAR”) and,
in such case, will be exercisable upon such terms and subject to such conditions as may be determined by the Administrator, subject
to the terms of the Plan.

 

    	12

    	 

    

 

(d)        Exercise
of SARs:

 

i.         Subject
to the terms of the Plan, SARs shall be vested and exercisable in whole or in part upon such
terms and conditions as may be established by the Administrator. The period during which an SAR may be exercisable shall not exceed
10 years from the date of grant or, in the case of Related SARs, such shorter Option Period as may apply to the Related Option.
Any SAR or portion thereof not exercised before expiration of the period established by the Administrator shall terminate.

 

ii.        SARs
may be exercised by giving written notice to the Company in form acceptable to the Administrator at such place and subject to such
terms and conditions as may be established by the Administrator or its designee. Unless the Administrator determines otherwise,
the date of exercise of an SAR shall mean the date on which the Company shall have received proper notice from the Participant
of the exercise of such SAR.

 

iii.       The
Administrator shall determine the extent, if any, to which a Participant may have the right to exercise an SAR following termination
of the Participant’s employment or service with the Company. Such rights, if any, shall be determined in the sole discretion
of the Administrator, shall be stated in the individual Award Agreement, need not be uniform among all SARs issued pursuant to
this Section 8, and may reflect distinctions based on the reasons for termination of employment or service. The Administrator also
may, in its sole discretion (taking into account any Code Section 409A considerations), accelerate the date for exercising all
or any part of an SAR which was not otherwise exercisable on the Termination Date, extend the period during which an SAR may be
exercised, modify the terms and conditions to exercise, or any combination of the foregoing.

 

(e)         Payment Upon
Exercise: Subject to the limitations of the Plan, upon the exercise of an SAR, a Participant shall be entitled to receive payment
from the Company in an amount determined by multiplying (i) the excess, if any, of the Fair Market Value of a share of Common Stock
on the date of exercise of the SAR over the Base Price of the SAR, by (ii) the number of shares of Common Stock with respect to
which the SAR is being exercised. The consideration payable upon exercise of an SAR shall be paid in cash, shares of Common Stock
(valued at Fair Market Value on the date of exercise of the SAR) or a combination of cash and shares of Common Stock, as determined
by the Administrator.

 

(f)         Nontransferability:
Unless the Administrator determines otherwise, SARs shall not be transferable (including by sale, assignment, pledge or hypothecation)
other than by will or the laws of intestate succession, except for transfers if and to the extent permitted by the Administrator
in a manner consistent with the registration provisions of the Securities Act. Except as may be permitted by the preceding sentence,
SARs may be exercised during the Participant’s lifetime only by him or by his guardian or legal representative. The designation
of a beneficiary in accordance with the Plan does not constitute a transfer.

 

		9.	Restricted Awards

 

(a)         Grant of
Restricted Awards: Subject to the limitations of the Plan, the Administrator may in its discretion grant Restricted Awards
to such individuals, for such numbers
of shares of Common Stock, upon such terms and at such times as the Administrator
shall determine. Such Restricted Awards may be in the form of Restricted Stock Awards and/or Restricted Stock Units that are subject
to certain conditions, which conditions must be met in order for the Restricted Award to vest and be earned (in whole or in part)
and no longer subject to forfeiture. Restricted Stock Awards shall be payable in shares of Common Stock. Restricted Stock Units
shall be payable in cash or shares of Common Stock, or partly in cash and partly in shares of Common Stock, in accordance with
the terms of the Plan and the discretion of the Administrator. The Administrator shall determine the nature, length and starting
date of the period, if any, during which a Restricted Award may be earned (the “Restriction Period”), and shall
determine the conditions which must be met in order for a Restricted Award to be granted or to vest or be earned (in whole or
in part), which conditions may include, but are not limited to, payment of a stipulated purchase price, attainment of performance
objectives, continued service or employment for a certain period of time, a combination of attainment of performance objectives
and continued service, Retirement, Displacement, Disability, death, or any combination of such conditions. In the case of Restricted
Awards based upon performance criteria, or a combination of performance criteria and continued service, the Administrator shall
determine the Performance Measures applicable to such Restricted Awards (subject to Section 1(ii)).

 

    	13

    	 

    

 

(b)        Vesting
of Restricted Awards: Subject to the terms of the Plan (and
taking into account any Code Section 409A considerations), the Administrator shall have sole authority to determine whether
and to what degree Restricted Awards have vested and been earned and are payable and to establish and interpret the terms and
conditions of Restricted Awards. The Administrator, in its sole discretion, may
(subject to any Code Section 409A considerations) accelerate the date that any Restricted
Award granted to a Participant shall be deemed to be vested or earned in whole or in part, without any obligation to accelerate
such date with respect to other Restricted Awards granted to any Participant.

 

(c)        Termination
of Employment or Service; Forfeiture: Unless the Administrator determines otherwise, if the employment or service of a Participant
shall be terminated for any reason (whether by the Company or the Participant and whether voluntary or involuntary) and all or
any part of a Restricted Award has not vested or been earned pursuant to the terms of the Plan and related Award Agreement, such
Award, to the extent not then vested or earned, shall be forfeited immediately upon such termination and the Participant shall
have no further rights with respect thereto.

 

(d)        Share Certificates;
Escrow: Unless the Administrator determines otherwise, a certificate or certificates representing the shares of Common Stock
subject to a Restricted Stock Award shall be issued in the name of the Participant (or, in the case of uncertificated shares, other
written evidence of ownership in accordance with Applicable Law shall be provided) after the Award has been granted. Notwithstanding
the foregoing, the Administrator may require that (i) a Participant deliver the certificate(s) (or other instruments) for such
shares to the Administrator or its designee to be held in escrow until the Restricted Stock Award vests and is no longer subject
to a substantial risk of forfeiture (in which case the shares will be promptly released to the Participant) or is forfeited (in
which case the shares shall be returned to the Company); and/or (ii) a Participant deliver to the Company a stock power, endorsed
in blank (or similar instrument), relating to the shares subject to the Restricted Stock Award which are subject to forfeiture.
Unless the Administrator determines otherwise, a certificate or certificate representing shares of Common Stock issuable pursuant
to a Restricted Stock Unit shall be issued in the name of the Participant (or, in the case of uncertificated shares, other written
evidence of ownership in accordance with Applicable Law shall be provided) promptly after the Award (or portion thereof) has vested
and is distributable.

 

(e)         Nontransferability:
Unless the Administrator determines otherwise, Restricted Awards that have not vested shall not be transferable (including by sale,
assignment, pledge or hypothecation) other than transfers by will or the laws of intestate succession, and the recipient of a Restricted
Award shall not sell, transfer, assign, pledge or otherwise encumber shares subject to the Award until the Restriction Period has
expired and until all conditions to vesting have been met. The designation of a beneficiary in accordance with the Plan does not
constitute a transfer.

 

    	14

    	 

    

 

		10.	Performance Awards

 

(a)         Grant of
Performance Awards: Subject to the terms of the Plan, the Administrator may in its discretion grant Performance Awards to such
eligible individuals upon such terms and conditions and at such times as the Administrator shall determine. Performance Awards
may be in the form of Performance Shares and/or Performance Units. An Award of a Performance Share is a grant of a right to receive
shares of Common Stock, the cash value thereof, or a combination thereof (in the Administrator’s discretion), which is contingent
upon the achievement of performance or other objectives during a specified period and which has a value on the date of grant equal
to the Fair Market Value of a share of Common Stock. An Award of a Performance Unit is a grant of a right to receive shares of
Common Stock or a designated dollar value amount of Common Stock which is contingent upon the achievement of performance or other
objectives during a specified period, and which has an initial value determined in a dollar amount established by the Administrator
at the time of grant. Subject to Section 5(b), the Administrator shall have discretion to determine the number of Performance Units
and/or Performance Shares granted to any Participant. The Administrator shall determine the nature, length and starting date of
the period during which a Performance Award may be earned (the “Performance Period”), and shall determine the
conditions which must be met in order for a Performance Award to be granted or to vest or be earned (in whole or in part), which
conditions may include but are not limited to payment of a stipulated purchase price, attainment of performance objectives, continued
service or employment for a certain period of time, or a combination of any such conditions. Subject to Section 1(ii), the Administrator
shall determine the Performance Measures to be used in valuing Performance Awards.

 

(b)        Earning
of Performance Awards: Subject to the terms of the Plan (and
taking into account any Code Section 409A considerations), the Administrator shall have sole authority to determine whether
and to what degree Performance Awards have been earned and are payable and to interpret the terms and conditions of Performance
Awards and the provisions of Section 10. The Administrator, in its sole discretion, may
(subject to any Code Section 409A considerations) accelerate the date that any Performance
Award granted to a Participant shall be deemed to be earned in whole or in part, without any obligation to accelerate such date
with respect to other Awards granted to any Participant.

 

(c)         Form of
Payment: Payment of the amount to which a Participant shall be entitled upon earning a Performance Award shall be made in
cash, shares of Common Stock, or a combination of cash and shares of Common Stock, as determined by the Administrator in its sole
discretion. Payment may be made in a lump sum or upon such terms as may be established by the Administrator
(taking into account any Code Section 409A considerations).

 

(d)        Termination
of Employment or Service; Forfeiture: Unless the Administrator determines otherwise
(taking into account any Code Section 409A considerations), if the employment or
service of a Participant shall terminate for any reason (whether by the Company or the Participant and whether voluntary or involuntary)
and the Participant has not earned all or part of a Performance Award pursuant to the terms of the Plan and related Award Agreement,
such Award, to the extent not then earned, shall be forfeited immediately upon such termination and the Participant shall have
no further rights with respect thereto.

 

(e)         Nontransferability:
Unless the Administrator determines otherwise, Performance Awards which have not been earned shall not be transferable (including
by sale, assignment, pledge or hypothecation) other than transfers by will or the laws of intestate succession, and the recipient
of a Performance Award shall not sell, transfer, assign, pledge or otherwise encumber any shares or any other benefit subject to
the Award until the Performance Period has expired and the conditions to earning the Award have been met. The designation of a
beneficiary in accordance with the Plan does not constitute a transfer.

 

    	15

    	 

    

 

		11.	Phantom Stock Awards

 

(a)         Grant of
Phantom Stock Awards: Subject to the terms of the Plan, the Administrator may in its discretion grant Phantom Stock Awards
to such eligible individuals, in such numbers, upon such terms and at such times as the Administrator shall determine. A Phantom
Stock Award is an Award to a Participant of a number of hypothetical share units with respect to shares of Common Stock, with a
value based on the Fair Market Value of a share of Common Stock.

 

(b)        Vesting
of Phantom Stock Awards: Subject to the terms of the Plan (and
taking into account any Code Section 409A considerations), the Administrator shall have sole authority to determine whether
and to what degree Phantom Stock Awards have vested and are payable and to interpret the terms and conditions of Phantom Stock
Awards. The Administrator, in its sole discretion, may (subject
to any Code Section 409A considerations) accelerate the date that any Phantom Stock Award granted to a Participant shall
be deemed to be earned in whole or in part, without any obligation to accelerate such date with respect to other Awards granted
to any Participant.

 

(c)        Termination
of Employment or Service; Forfeiture: Unless the Administrator determines otherwise
(taking into account any Code Section 409A considerations), if the employment or
service of a Participant shall be terminated for any reason (whether by the Company or the Participant and whether voluntary or
involuntary) and all or any part of a Phantom Stock Award has not vested and become payable pursuant to the terms of the Plan
and related Award Agreement, such Award, to the extent not then vested or earned, shall be forfeited immediately upon such termination
and the Participant shall have no further rights with respect thereto.

 

(d)        Payment
of Phantom Stock Awards: Upon vesting of all or a part of a Phantom Stock Award and satisfaction of such other terms and conditions
as may be established by the Administrator, the Participant shall be entitled to a payment of an amount equal to the Fair Market
Value of one share of Common Stock with respect to each such Phantom Stock unit which has vested
and is payable. Payment may be made, in the discretion of the Administrator, in cash
or in shares of Common Stock valued at their Fair Market Value on the applicable vesting date or dates (or other date or dates
determined by the Administrator), or in a combination thereof. Payment may be made in a lump sum or upon such terms as may be
established by the Administrator (taking
into account any Code Section 409A considerations).

 

(e)         Nontransferability:
Unless the Administrator determines otherwise, (i) Phantom Stock Awards shall not be transferable (including by sale, assignment,
pledge or hypothecation) other than transfers by will or the laws of intestate succession and (ii) shares of Common Stock (if any)
subject to a Phantom Stock Award may not be sold, transferred, assigned, pledged or otherwise encumbered until the Phantom Stock
Award has vested and all other conditions established by the Administrator have been met. The designation of a beneficiary in accordance
with the Plan does not constitute a transfer.

 

		12.	Other Stock-Based Awards

 

The Administrator shall
have the authority to grant Other Stock-Based Awards. Such Other Stock-Based Awards may be valued in whole or in part by reference
to, or otherwise based on or related to, shares of Common Stock or Awards for shares of Common Stock, including but not limited
to Other Stock-Based Awards granted in lieu of bonus, salary or other compensation, Other Stock-Based Awards granted with vesting
or performance conditions, and/or Other Stock-Based Awards granted without being subject to vesting or performance conditions.
Subject to the provisions of the Plan, the Administrator shall determine the number of shares of Common Stock to be awarded to
a Participant under (or otherwise related to) such Other Stock-Based Awards; whether such Other Stock-Based Awards shall be settled
in cash, shares of Common Stock or a combination of cash and shares of Common Stock; and the other terms and conditions of such
Awards. Unless the Administrator determines otherwise, (i) Other Stock-Based Awards shall not be transferable (including by sale,
assignment, pledge or hypothecation) other than transfers by will or the laws of intestate succession, and (ii) shares of Common
Stock (if any) subject to an Other Stock-Based Award may not be sold, transferred, assigned, pledged or otherwise encumbered until
the Other Stock-Based Award has vested and all other conditions established by the Administrator have been met. The designation
of a beneficiary in accordance with the Plan does not constitute a transfer.

 

    	16

    	 

    

 

		13.	Dividends and Dividend Equivalents

 

The Administrator
may, in its sole discretion, provide that Awards other than Options and SARs earn dividends or dividend equivalents; provided,
however, that dividends and dividend equivalents, if any, on unearned or unvested performance-based Awards shall not be paid (even
if accrued) unless and until the underlying Award (or portion thereof) has vested and/or been earned. Such dividends or dividend
equivalents may be paid currently or may be credited to a Participant’s account. Any crediting of dividends or dividend
equivalents may be subject to such additional restrictions and conditions as the Administrator may establish, including reinvestment
in additional shares of Common Stock or share equivalents. Notwithstanding
the other provisions herein, any dividends or dividend equivalent rights related to an Award shall be structured in a manner so
as to avoid causing the Award and related dividends or dividend equivalent rights to be subject to Code Section 409A or shall
otherwise be structured so that the Award and dividends or dividend equivalent rights are in compliance with Code Section 409A.

 

		14.	Change of Control

 

Notwithstanding any
other provision in the Plan to the contrary, and unless an individual Award Agreement provides otherwise, the following provisions
shall apply in the event of a Change of Control:

 

(a)         To the extent
that the successor or surviving company in the Change of Control event does not assume or substitute for an Award (or in which
the Company is the ultimate parent corporation and does not continue the Award) on substantially similar terms or with substantially
equivalent economic benefits (as determined by the Administrator) as Awards outstanding under the Plan immediately prior to the
Change of Control event, (i) all outstanding Options and SARs shall become fully vested and exercisable, whether or not then otherwise
vested and exercisable; and (ii) any restrictions, including but not limited to the Restriction Period, Performance Period and/or
performance criteria applicable to any outstanding Award other than Options or SARs shall be deemed to have been met, and such
Awards shall become fully vested, earned and payable to the fullest extent of the original grant of the applicable Award.

 

(b)        Further, in
the event that an Award is substituted, assumed or continued as provided in Section 14(a)(i) herein, the Award will nonetheless
become vested (and, in the case of Options and SARs, exercisable) in full if the employment or service of the Participant is terminated
within six months before (in which case vesting shall not occur until the effective date of the Change of Control) or one year
after the effective date of a Change of Control if such termination of employment or service (A) is by the Company not for Cause
or (B) is by the Participant for Good Reason. For clarification, for the purposes of this Section 14, the “Company”
shall include any successor to the Company.

 

		15.	Withholding

 

The Company shall withhold
all required local, state, federal, foreign and other taxes and any other amount required to be withheld by any governmental authority
or law from any amount payable in cash with respect to an Award. Prior to the delivery or transfer of any certificate for shares
or any other benefit conferred under the Plan, the Company shall require any Participant or other person to pay to the Company
in cash the amount of any tax or other amount required by any governmental authority to be withheld and paid over by the Company
to such authority for the account of such recipient. Notwithstanding the foregoing, the Administrator may in its discretion establish
procedures to permit a recipient to satisfy such obligation in whole or in part, and any local, state, federal, foreign or other
income tax obligations relating to such an Award, by electing (the “election”) to have the Company withhold
shares of Common Stock from the shares to which the recipient is otherwise entitled. The number of shares to be withheld shall
have a Fair Market Value as of the date that the amount of tax to be withheld is determined as nearly equal as possible to (but
not exceeding) the amount of such obligations being satisfied. Each election must be made in writing to the Administrator in accordance
with election procedures established by the Administrator.

 

    	17

    	 

    

 

		16.	Amendment and Termination of the Plan and Awards

 

(a)         Amendment
and Termination of Plan: The Plan may be amended, altered, suspended and/or terminated at any time by the Board; provided,
that (i) approval of an amendment to the Plan by the stockholders of the Company shall be required to the extent, if any, that
stockholder approval of such amendment is required by Applicable Law; and (ii) except for adjustments made pursuant to Section
5(d) the Company may not, without obtaining stockholder approval, (A) amend the terms of outstanding Options or SARs to reduce
the Option Price or Base Price of such outstanding Options or SARs; (B) exchange outstanding Options or SARs for cash, for Options
or SARs with an Option Price or Base Price that is less than the Option Price or Base Price of the original Option or SAR, or for
other equity awards at a time when the original Option or SAR has an Option Price or Base Price, as the case may be, above the
Fair Market Value of the Common Stock; or (C) take other action with respect to Options or SARs that would be treated as a repricing
under the rules of the principal stock exchange on which shares of the Common Stock are listed.

 

(b)         Amendment
and Termination of Awards: The Administrator may amend, alter, suspend and/or terminate any Award granted under the Plan, prospectively
or retroactively, but such amendment, alteration, suspension or termination of an Award shall not, without the written consent
of the recipient of an outstanding Award, materially adversely affect the rights of the recipient with respect to the Award.

 

(c)         Amendments
to Comply with Applicable Law: Notwithstanding Section 16(a) and Section 16(b) herein, the following provisions shall apply:

 

i.         The
Administrator shall have unilateral authority to amend the Plan and any Award (without Participant consent) to the extent necessary
to comply with Applicable Law or changes to Applicable Law (including but in no way limited to Code Section 409A, Code Section
422 and federal securities laws).

 

ii.        The
Administrator shall have unilateral authority to make adjustments to the terms and conditions of Awards in recognition of unusual
or nonrecurring events affecting the Company or any Affiliate, or the financial statements of the Company or any Affiliate, or
of changes in Applicable Law, or accounting principles, if the Administrator determines that such adjustments are appropriate
in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan
or necessary or appropriate to comply with applicable accounting principles or Applicable Law.

 

    	18

    	 

    

 

		17.	Compliance with Applicable Law

 

(a)         General:
As a condition to the issuance and delivery of Common Stock hereunder, or the grant of any benefit pursuant to the Plan, the Company
may require a Participant or other person at any time and from time to time to become a party to an Award Agreement, other agreement(s)
restricting the transfer, purchase, repurchase and/or voting of shares of Common Stock of the Company, and any employment agreements,
consulting agreements, noncompetition agreements, confidentiality agreements, nonsolicitation agreements, nondisparagement agreements
or other agreements imposing such restrictions as may be required by the Company. In addition, without in any way limiting the
effect of the foregoing, each Participant or other holder of shares issued under the Plan shall be permitted to transfer such shares
only if such transfer is in accordance with the Plan, the Award Agreement, and any other applicable agreements and Applicable Law.
The acquisition of shares of Common Stock under the Plan by a Participant or any other holder of shares shall be subject to, and
conditioned upon, the agreement of the Participant or other holder of such shares to the restrictions described in the Plan, the
Award Agreement and any other applicable agreements and Applicable Law.

 

(b)        Compliance
with Applicable Laws, Rules and Regulations: The Company may impose such restrictions on Awards, shares of Common Stock and
any other benefits underlying Awards hereunder as it may deem advisable, including without limitation restrictions under the federal
securities laws, the requirements of any stock exchange or similar organization and any blue sky, state or foreign securities or
other laws applicable to such securities. Notwithstanding any other Plan provision to the contrary, the Company shall not be obligated
to issue, deliver or transfer shares of Common Stock under the Plan, make any other distribution of benefits under the Plan, or
take any other action, unless such delivery, distribution or action is in compliance with Applicable Law (including but not limited
to the requirements of the Securities Act). The Company will be under no obligation to register shares of Common Stock or other
securities with the Securities and Exchange Commission or to effect compliance with the exemption, registration, qualification
or listing requirements of any state securities laws, stock exchange or similar organization, and the Company will have no liability
for any inability or failure to do so. The Company may cause a restrictive legend or legends to be placed on any certificate issued
pursuant to an Award hereunder in such form as may be prescribed from time to time by Applicable Law or as may be advised by legal
counsel.

 

		18.	No Right or Obligation of Continued Employment or Service or to Awards

 

Neither the Plan, an
Award, an Award Agreement nor any other action related to the Plan shall confer upon a Participant any right to continue in the
employ or service of the Company or an Affiliate as an Employee, Director or Independent Contractor, or to interfere in any way
with the right of the Company or an Affiliate to terminate the Participant’s employment or service at any time. Except as
otherwise provided in the Plan, an Award Agreement or as may be determined by the Administrator, all rights of a Participant with
respect to an Award shall terminate upon the termination of the Participant’s employment or service. In addition, no person
shall have any right to be granted an Award, and the Company shall have no obligation to treat Participants or Awards uniformly.

 

		19.	General Provisions

 

(a)        Stockholder
Rights: Except as otherwise determined by the Administrator (and subject to the provisions of Section 9(d) regarding Restricted
Awards), a Participant and his legal representative, legatees or distributees shall not be deemed to be the holder of any shares
of Common Stock subject to an Award and shall not have any rights of a stockholder unless and until certificates for such shares
have been issued and delivered to him or them under the Plan. A certificate or certificates for shares of Common Stock acquired
upon exercise of an Option or SAR shall be issued in the name of the Participant or his beneficiary and distributed to the Participant
or his beneficiary (or, in the case of uncertificated shares, other written notice of ownership in accordance with Applicable Law
shall be provided) as soon as practicable following receipt of notice of exercise and, with respect to Options, payment of the
Option Price (except as may otherwise be determined by the Company in the event of payment of the Option Price pursuant to Section
7(d)(ii)(C)). Except as otherwise provided in Section 9(d) regarding Restricted Stock Awards or otherwise determined by the Administrator,
a certificate for any shares of Common Stock issuable pursuant to a Restricted Award, Performance Award, Phantom Stock Award or
Other Stock-Based Award shall be issued in the name of the Participant or his beneficiary and distributed to the Participant or
his beneficiary (or, in the case of uncertificated shares, other written notice of ownership in accordance with Applicable Law
shall be provided) after the Award (or portion thereof) has vested and been earned.

 

    	19

    	 

    

 

(b)        Section
16(b) Compliance: To the extent that any Participants in the Plan are subject to Section 16(b) of the Exchange Act, it is the
general intention of the Company that transactions under the Plan shall comply with Rule 16b-3 under the Exchange Act and that
the Plan shall be construed in favor of such Plan transactions meeting the requirements of Rule 16b-3 or any successor rules thereto.
Notwithstanding anything in the Plan to the contrary, the Administrator, in its sole and absolute discretion, may bifurcate the
Plan so as to restrict, limit or condition the use of any provision of the Plan to Participants who are officers or directors subject
to Section 16 of the Exchange Act without so restricting, limiting or conditioning the Plan with respect to other Participants.

 

(c)         Code Section
162(m) Performance-Based Compensation. To the extent to which Code Section 162(m) is applicable, the Company intends that compensation
paid under the Plan to Covered Employees will, to the extent practicable, constitute “qualified performance-based compensation”
within the meaning of Code Section 162(m), unless otherwise determined by the Administrator. Accordingly, Awards granted to Covered
Employees which are intended to qualify for the performance-based exception under Code Section 162(m) shall be deemed to include
any such additional terms, conditions, limitations and provisions as are necessary to comply with the performance-based compensation
exemption of Code Section 162(m), unless the Administrator, in its discretion, determines otherwise.

 

(d)        Unfunded
Plan; No Effect on Other Plans:

 

i.         The
Plan shall be unfunded, and the Company shall not be required to create a trust or segregate any assets that may at any time be
represented by Awards under the Plan. The Plan shall not establish any fiduciary relationship between the Company and any Participant
or other person. Neither a Participant nor any other person shall, by reason of the Plan, acquire any right in or title to any
assets, funds or property of the Company or any Affiliate, including, without limitation, any specific funds, assets or other property
which the Company or any Affiliate, in their discretion, may set aside in anticipation of a liability under the Plan. A Participant
shall have only a contractual right to shares of Common Stock or other amounts, if any, payable under the Plan, unsecured by any
assets of the Company or any Affiliate. Nothing contained in the Plan shall constitute a guarantee that the assets of such entities
shall be sufficient to pay any benefits to any person.

 

ii.        The
amount of any compensation deemed to be received by a Participant pursuant to an Award shall not constitute compensation with respect
to which any other employee benefits of such Participant are determined, including, without limitation, benefits under any bonus,
pension, profit sharing, life insurance or salary continuation plan, except as otherwise specifically provided by the terms of
such plan or as may be determined by the Administrator.

 

iii.       The
adoption of the Plan shall not affect any other stock incentive or other compensation plans in effect for the Company or any Affiliate,
nor shall the Plan preclude the Company from establishing any other forms of stock incentive or other compensation for employees
or service providers of the Company or any Affiliate.

 

    	20

    	 

    

 

(e)         Governing
Law: The Plan shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to the
conflict of laws provisions of any state, and in accordance with applicable federal laws of the United States.

  

(f)         Beneficiary
Designation: The Administrator may, in its discretion, permit a Participant to designate in writing a person or persons as
beneficiary, which beneficiary shall be entitled to receive settlement of Awards (if any) to which the Participant is otherwise
entitled in the event of death. In the absence of such designation by a Participant, and in the event of the Participant’s
death, the estate of the Participant shall be treated as beneficiary for purposes of the Plan, unless the Administrator determines
otherwise. The Administrator shall have discretion to approve and interpret the form or forms of such beneficiary designation.
A beneficiary, legal guardian, legal representative or other person claiming any rights pursuant to the Plan is subject to all
terms and conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent that the Plan and/or
Award Agreement provide otherwise, and to any additional restrictions deemed necessary or appropriate by the Administrator.

 

(g)        Gender and
Number: Except where otherwise indicated by the context, words in any gender shall include any other gender, words in the
singular shall include the plural and words in
the plural shall include the singular.

 

(h)        Severability:
If any provision of the Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the
remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 

(i)          Rules of
Construction: Headings are given to the sections of the Plan solely as a convenience to facilitate reference. The reference
to any statute, regulation or other provision of law shall (unless the Administrator determines otherwise) be construed to refer
to any amendment to or successor of such provision of law.

 

(j)         Successors
and Assigns: The Plan shall be binding upon the Company, its successors and assigns, and Participants, their executors, administrators
and permitted transferees and beneficiaries.

 

(k)         Award Agreement:
The grant of any Award under the Plan shall be evidenced by an Award Agreement between the Company and the Participant. Such Award
Agreement may state terms, conditions and restrictions applicable to the Award and any may state such other terms, conditions and
restrictions, including but not limited to terms, conditions and restrictions applicable to shares of Common Stock (or other benefits)
subject to an Award, as may be established by the Administrator.

 

(l)          Right of
Offset: Notwithstanding any other provision of the Plan or an Award Agreement, the Company may (subject to any Code Section
409A considerations) reduce the amount of any payment or benefit otherwise payable to or on behalf of a Participant by the amount
of any obligation of the Participant to or on behalf of the Company or an Affiliate that is or becomes due and payable.

 

(m)        Uncertified
Shares: Notwithstanding anything in the Plan to the contrary, to the extent the Plan provides for the issuance of stock certificates
to reflect the issuance of shares of Common Stock, the issuance may, in the Company’s discretion, be effected on a non-certificated
basis, to the extent not prohibited by the Company’s certificate of incorporation or bylaws or by Applicable Law (including
but not limited to applicable state corporate law and the applicable rules of any stock exchange on which the Common Stock may
be traded).

 

    	21

    	 

    

 

(n)        Income and
Other Taxes: Participants are solely responsible and liable for the satisfaction of all taxes and penalties that may arise
in connection with Awards (including but not limited to any taxes arising under Code Section 409A), and the Company shall not have
any obligation to indemnify or otherwise hold any Participant harmless from any or all of such taxes. The Company shall have no
responsibility to take or refrain from taking any actions in order to achieve a certain tax result for a Participant or any other
person.

 

(o)        Effect of
Certain Changes in Status: Notwithstanding the other terms of the Plan or an Award Agreement, the Administrator has sole discretion
to determine (taking into account any Code Section 409A considerations), at the time of grant of an Award or at any time thereafter,
the effect, if any, on Awards (including but not limited to modifying the vesting, exercisability and/or earning of Awards) granted
to a Participant if the Participant’s status as an Employee, Director or Independent Contractor changes, including but not
limited to a change from full-time to part-time, or vice versa, or if other similar changes in the nature or scope of the Participant’s
employment or service occur.

 

(p)        Stockholder
Approval: The Plan is subject to approval by the stockholders of the Company, which approval must occur, if at all, within
12 months of the Effective Date of the Plan. Awards granted prior to such stockholder approval shall be conditioned upon and shall
be effective only upon approval of the Plan by such stockholders on or before such date.

 

(q)        Deferrals:
The Administrator may permit or require a Participant to defer such Participant’s receipt of the payment of cash or the delivery
of shares of Common Stock that would otherwise be payable with respect to an Award. Any such deferral shall be subject to such
terms and conditions as may be established by the Administrator and to any applicable Code Section 409A requirements.

 

(r)         Fractional
Shares: Except as otherwise provided in an Award Agreement or determined by the Administrator, (i) the total number of shares
issuable pursuant to the exercise, vesting or earning of an Award shall be rounded down to the nearest whole share, and (ii) no
fractional shares shall be issued. The Administrator may, in its discretion, determine that a fractional share shall be settled
in cash.

 

(s)         Compliance
with Recoupment, Ownership and Other Policies or Agreements: Notwithstanding anything in the Plan to the contrary, the Administrator
may, at any time, consistent with, but without limiting, the authority granted in Section 3(b) herein, in its discretion provide
that an Award or benefits related to an Award shall be forfeited and/or recouped if the Participant, during employment or service
or following termination of employment or service for any reason, engages in certain specified conduct, including but not limited
to violation of policies of the Company or an Affiliate, breach of non-solicitation, noncompetition, confidentiality or other restrictive
covenants, or other conduct by the Participant that is determined by the Administrator to be detrimental to the business or reputation
of the Company or any Affiliate. In addition, without limiting the effect of the foregoing, as a condition to the grant of an Award
or receipt or retention of shares of Common Stock, cash or any other benefit under the Plan, the Administrator may, at any time,
require that a Participant agree to abide by any equity retention policy, stock ownership guidelines, compensation recovery policy
and/or other policies adopted by the Company or an Affiliate, each as in effect from time to time and to the extent applicable
to the Participant. Further, each Participant shall be subject to such compensation recovery, recoupment, forfeiture or other similar
provisions as may apply under Applicable Law.

 

    	22

    	 

    

 

		20.	Compliance
                                         with Code Section 409A

 

Notwithstanding
any other provision in the Plan or an Award Agreement to the contrary, if and to the extent that Code Section 409A is deemed to
apply to the Plan or any Award, it is the general intention of the Company that the Plan and all such Awards shall, to the extent
practicable, comply with, or be exempt from, Code Section 409A, and the Plan and any such Award Agreement shall, to the extent
practicable, be construed in accordance therewith. Deferrals of shares or any other benefit issuable pursuant to an Award otherwise
exempt from Code Section 409A in a manner that would cause Code Section 409A to apply shall not be permitted unless such deferrals
are in compliance with, or exempt from, Code Section 409A. In the event that the Company (or a successor thereto) has any stock
which is publicly traded on an established securities market or otherwise, distributions that are subject to Code Section 409A
to any Participant who is a “specified employee” (as defined under Code Section 409A) upon a separation from service
may only be made following the expiration of the six-month period after the date of separation from service (with such distributions
to be made during the seventh month following separation of service), or, if earlier than the end of the six-month period, the
date of death of the specified employee, or as otherwise permitted under Code Section 409A. Without in any way limiting the effect
of any of the foregoing, (i) in the event that Code Section 409A requires that any special terms, provisions or conditions be
included in the Plan or any Award Agreement, then such terms, provisions and conditions shall, to the extent practicable, be deemed
to be made a part of the Plan or Award Agreement, as applicable, and (ii) terms used in the Plan or an Award Agreement shall be
construed in accordance with Code Section 409A if and to the extent required. Further, in the event that the Plan or any Award
shall be deemed not to comply with Code Section 409A, then neither the Company, the Administrator nor its or their designees or
agents shall be liable to any Participant or other person for actions, decisions or determinations made in good faith.

 

    	23RIGHTS CERTIFICATE #:	NUMBER OF RIGHTS

 

THE TERMS
AND CONDITIONS OF THE RIGHTS OFFERING ARE SET FORTH IN THE COMPANY'S PROSPECTUS

DATED [_____________],
2014 (THE "PROSPECTUS") AND ARE INCORPORATED HEREIN BY REFERENCE. COPIES OF

THE PROSPECTUS
ARE AVAILABLE UPON REQUEST FROM AST PHOENIX ADVISORS, THE INFORMATION AGENT.

 

FNBH Bancorp, Inc.

Incorporated under the laws of the State
of Michigan

 

NON -
TRANSFERABLE SUBSCRIPTION RIGHTS CERTIFICATE

 

Evidencing Non - Transferable Subscription Rights
to Purchase Shares of Common Stock of FNBH Bancorp, Inc.

 

Subscription Price:  $0.70 per
Share

 

THE
SUBSCRIPTION RIGHTS WILL EXPIRE IF NOT EXERCISED ON OR BEFORE 5:00 P.M., EASTERN TIME, ON [______________], 2014, UNLESS
EXTENDED BY THE COMPANY.

 

REGISTERED OWNER:

 

THIS CERTIFIES THAT the registered owner
whose name is inscribed hereon is the owner of the number of non-transferable subscription rights (“Rights”) set forth
above. Each whole Right entitles the holder thereof to subscribe for and purchase 6 shares of Common Stock, no par value per share,
of FNBH Bancorp, Inc., a Michigan corporation, at a subscription price of $0.70 per share (the “Basic Subscription Privilege”),
pursuant to a rights offering (the “Rights Offering”), on the terms and subject to the conditions set forth in the
Prospectus and the “Instructions as to Use of Subscription Certificates” accompanying this Subscription Certificate.
If any shares of Common Stock available for purchase in the Rights Offering are not purchased by other holders of Rights pursuant
to the exercise of their Basic Subscription Privilege (the “Excess Shares”), any Rights holder that exercises its Basic
Subscription Privilege in full may subscribe for a number of Excess Shares pursuant to the terms and conditions of the Rights Offering,
subject to allotment and rejection, as described in the Prospectus (the “Over-Subscription Privilege”). The Rights
represented by this Subscription Certificate may be exercised by completing Form 1 and any other appropriate forms on the reverse
side hereof and by returning the full payment of the subscription price for each share of Common Stock in accordance with the “Instructions
as to Use of Subscription Certificates” that accompany this Subscription Certificate.

 

This Subscription Certificate is not valid
unless countersigned by the subscription agent and registered by the registrar.

Witness the signatures of the
duly authorized officers of FNBH Bancorp, Inc.

 

Dated:

 

	 	 	 
	President, Chief Executive Officer	 	Secretary

	and Principal Executive Officer

	 	 

 

 

  

    	 

    	 

    

 

DELIVERY OPTIONS FOR SUBSCRIPTION
CERTIFICATE

Delivery other than in the manner or to
the addresses listed below will not constitute valid delivery.

 

	
        If delivering by hand:

        American Stock Transfer & Trust Company,
        LLC

        Operations Center

        Attn: Reorganization Department

        P.O. Box 2042

        New York, New York 10272-2042
	
        If delivering by hand, express mail or
        overnight courier:

        American Stock Transfer & Trust Company,
        LLC

        Operations Center

        Attn: Reorganization Department

        6201 15th Avenue

        Brooklyn, New York 11219

 

PLEASE PRINT ALL
INFORMATION CLEARLY AND LEGIBLY.

 

FORM 1-EXERCISE OF SUBSCRIPTION RIGHTS

 

To subscribe for shares pursuant
to your Basic Subscription Privilege, please complete lines (a) and (c) and sign under Form 3 below. To also subscribe for shares
pursuant to your Over-Subscription Privilege, please also complete line (b) and sign under Form 3 below. To the extent you subscribe
for more shares than you are entitled under either the Basic Subscription Privilege or the Over-Subscription Privilege, you will
be deemed to have elected to purchase the maximum number of shares for which you are entitled to subscribe under the Basic Subscription
Privilege or Over-Subscription Privilege, as applicable.

 

(a) EXERCISE OF BASIC SUBSCRIPTION PRIVILEGE:

 

I apply for ______________ shares x $0.70                           = 
$_______________

     (no. of new shares)            (subscription
price)              (amount enclosed)

 

(b) EXERCISE OF OVER-SUBSCRIPTION PRIVILEGE:

 

If you have exercised
your Basic Subscription Privilege in full and wish to subscribe for additional shares pursuant to your Over-Subscription
Privilege:

 

I apply for ______________ shares x $0.70                           =
 $_______________

    (no. of new shares)            
(subscription price)               (amount enclosed)

 

(c) Total Amount of Payment Enclosed  =
 $__________________

 

METHOD OF PAYMENT (CHECK ONE)

 

		 ̈	Check
or bank draft payable to “American Stock Transfer & Trust Company, LLC as Subscription Agent.”

 

		 ̈	Wire transfer of immediately available funds directly to the account maintained
by American Stock Transfer & Trust Company, LLC, as Subscription Agent, for purposes of accepting subscriptions in this Rights
Offering at JPMorgan Chase Bank, 55 Water Street, New York, New York 10005, ABA #021000021, Account # 530-354624 American Stock
Transfer FBO FNBH Bancorp, Inc., with reference to the rights holder's name.

 

FORM 2-DELIVERY TO DIFFERENT ADDRESS

 

If you wish for the Common
Stock underlying your subscription rights to be delivered to an address different from that shown on the face of this Subscription
Certificate, please enter the alternate address below, sign under Form 3 and have your signature guaranteed under Form 4.

 

 

 

 

 

 

 

 

 

 

FORM 3-SIGNATURE

 

TO SUBSCRIBE: I acknowledge
that I have received the Prospectus for this Rights Offering and I hereby irrevocably subscribe for the number of shares indicated
above on the terms and conditions specified in the Prospectus. By signing below I confirm that (1) after giving effect to the exercise
of my Rights, I will not beneficially own, as determined in accordance with Rule 13d-3 under the Securities Exchange Act of 1934,
as amended, more than 4.99% of the Company’s outstanding shares of Common Stock, and (2), if I already beneficially own,
as determined in accordance with Rule 13d-3 under the Securities Exchange Act of 1934, as amended, in excess of 4.99% of the Company’s
outstanding shares of Common Stock I will not, via the exercise of the Rights, increase my proportionate interest in the Company’s
Common Stock.

 

	Signature(s): 	 

 

IMPORTANT: The signature(s)
must correspond with the name(s) as printed on the reverse of this Subscription Certificate in every particular, without alteration
or enlargement, or any other change whatsoever.

 

FORM 4-SIGNATURE GUARANTEE

 

This form must be completed if you have completed Form
2.

 

	Signature Guaranteed: 	 
	 	(Name of Bank or Firm)

 

	By: 	 
	 	(Signature of Officer)

 

IMPORTANT: The signature(s)
should be guaranteed by an eligible guarantor institution (bank, stock broker, savings & loan association or credit union)
with membership in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15.

 

FOR INSTRUCTIONS ON THE
USE OF FNBH BANCORP, INC. SUBSCRIPTION CERTIFICATES, CONSULT AST PHOENIX ADVISORS, THE INFORMATION AGENT, AT (866) 796-1285.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}]]