Document:

Document

Mark W. Bodmer, Ph.D. 
XXXXXX
XXXXXX
XXXXXX
31 December 2021
Dear Mark,
Your terms of employment
Further to our recent discussions.  This letter sets out the terms of your employment as required by section 1 of the Employment Rights Act 1996.  It should be read in tandem with the information that is set out in our Staff Handbook which accompanies this letter. 
1.Start of your employment with Evelo Biosciences 
1.1You are employed by Evelo Biosciences (UK) Limited (the “Company” or “us” or “we”) and your employment commences with us on 01 January 2022 and shall continue, subject to the remaining terms of this letter, until terminated by either party giving the other not less than 3 months’ prior notice in writing.
1.2Your employment with Evelo Biosciences, Inc. that commenced on 19 April 2016 counts towards your continuous period of employment with us.
1.3Your employment is not subject to a probationary period. 
2.Job title
2.1You are employed as President of Research and Development and Chief Scientific Officer, and your line manager is the Chief Executive Officer of the Company. We’ve attached a position description which broadly sets out the scope and expectation of your job role
2.2Subject to clause 2.3, during your employment you shall not, except as our representative or with our prior written approval, whether paid or unpaid, be directly or indirectly engaged, concerned or have any financial interest as agent, consultant, director, employee, owner, partner, shareholder or in any other capacity in any other business, trade, profession or occupation (or the setting up of any business, trade, profession or occupation).
2.3Notwithstanding clause 2.2, you may hold an investment by way of shares or other securities of not more than 5% of the total issued share capital of any company (whether or not it is listed or dealt in on a recognised stock exchange) where such company does not carry on a business similar to or competitive with any business for the time being carried on by the Company or any Group Company.
Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.com

3.Place of work
3.1Your normal place of work is XXXXXX. When necessary, you will be required to work at Evelo’s offices in the London BioScience Innovation Centre located at 2 Royal College St, London NW1 0NH, UK. The Company reserves the right to require you to work from any location that it may establish within the Greater London area and will provide a least 1 months’ notice of such a change. Should the Company’s selected location be further away than 50 miles from either location described in this section, the Company will enter into a discussion with you to determine an appropriate path forward.
3.2You will not be required to work outside the UK for more than one month at a time during your employment. If you are ever required to work outside of the UK for more than one month, we will agree this with you in advance and we will provide all additional information in relation to such an assignment at the relevant time. 
4.Salary package
4.1Your base salary is £355,555.00 per year which shall accrue from day to day at a rate of 1/260 of your annual normal salary and be payable monthly in arrears on or about the last working day of each month directly into your nominated a bank account.
4.2We may at our absolute discretion pay you an annual, performance-based bonus upon the achievement of certain performance goals determined by the Board from time to time (the “Bonus”). The terms and amount of this Bonus (and whether it is paid in cash or in other forms, such as shares or share options) will be approved from time to time and notified to you by the Company in its sole discretion. 
4.3Your target cash annual bonus is a sum equal to 40% of your annual base salary. 
4.4In determining whether a Bonus is to be paid, and if so the size of that Bonus, the Board may take into account such factors as it considers, in its absolute discretion, to be appropriate, which may include the anticipated future performance or service and/or past performance of you and/or the Company although it has no obligation to take any of these factors into account.  
4.5The Bonus will not accrue, nor will you have any legitimate expectation as to the size or form of the discretionary bonus, until the Company pays it to you.  
4.6There are no circumstances whether in reliance on express or implied terms or otherwise where you can require pay out of a particular sum or payment in a particular form or claim compensation for loss of such a bonus.  Where your employment ends or where notice has been served to end your employment, you will have no rights to any compensation under or in respect of any bonus scheme.
Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.com

5.Benefits
You are not entitled to any benefits other than those set out in this letter and the Staff Handbook. For the avoidance of doubt, if during your employment with the Company you become entitled to additional benefits, the Company shall provide you with details of the additional benefits separately.
6.Hours of work
Your normal hours of work are between 09:00 am and 6:00 pm Mondays to Friday inclusive, with a lunch break of one hour. You may be required to work such additional hours as are necessary for the proper performance of your duties without extra remuneration. For example, as you will be working with colleagues in the US, you will be expected to participate in calls that will take place later in the evening UK time when necessary.
7.Holidays
7.1You are entitled to 33 days paid holiday during each holiday year. This includes the usual bank holidays in England and Wales. The Company's holiday year runs between 01 January and 31 December. If your employment starts or finishes part way through the holiday year, your holiday entitlement during that year shall be calculated on a pro-rata basis rounded up to the nearest full day.
7.2Holiday dates should be agreed by your Line Manager in advance. The office may be closed over the Christmas and New Year period and, at the discretion of the CEO, you will typically not be required to use your annual holidays to cover this period. The number of days will depend on how the Christmas and New Year bank holidays fall.
7.3We encourage all of our staff to take their annual leave in each holiday year, however you are able to carry over a limited number of holiday days from one year to the next. Please refer to the Holiday Policy in the UK Staff Handbook to understand Evelo’s current policy for unused leave.
7.4We will not pay you in lieu of untaken holiday except when your employment ends. The amount of such payment in lieu shall be 1/260th of your salary for each untaken day of your holiday entitlement.
7.5If you have taken more holiday than your accrued entitlement at the date your employment ends, we shall be entitled to deduct the excess holiday pay from any payments due to you calculated at 1/260th of your salary for each excess day.
8.Other Paid Leave
You are eligible for other paid leave, including maternity leave, adoption leave, paternity leave, parental leave, and shared parental leave, as required by law, subject to your complying with the relevant statutory and other conditions and requirements in order to be entitled to the leave and pay.  Further details of other paid leave can be found in the Staff Handbook accompanying this letter.
Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.com

9.Training
During your employment, training (in-house, external training and, in some cases, time off work to undertake training, subject to certain eligibility requirements and other conditions) shall be provided. Details of available training will be provided to you from time to time.  
10.sickness absences
10.1If you are absent from work due to sickness you are required to notify your Line Manager of the reason for your absence as soon as possible but no later than 9:00 am on the first day of your absence.
10.2In all cases of absence, a written description of the dates of absence and brief details about your sickness should be supplied to your Line Manager.  (This requirement can be satisfied by completing an Employee’s Statement of Sickness (SC2) form.)
10.3For any period of incapacity which lasts for seven consecutive days or more (this includes non-working days) a doctor's certificate stating the reason for your absence must supplied to your Line Manager. Further certificates must be obtained if the absence continues for longer than the period of the original certificate.
10.4Evelo maintains a generous Sickness Absence Policy the details of which are described in the UK Staff Handbook. This offered paid sick leave will include any statutory sick pay entitlement. Your qualifying days for statutory sick pay purposes are Monday to Friday. 
11.Payment in Lieu of Notice
11.1Notwithstanding clause 1.1, the CompanyUPDATE FC may, in its sole and absolute discretion, terminate your employmentUPDATE FC at any time and with immediate effect by notifying youUPDATE FC that the CompanyUPDATE FC is exercising its right under this clause 11 and that it will make within 28 days the first instalment of a payment in lieu of notice (“Payment in lieu”) to youUPDATE FC. This Payment in lieuUPDATE FC will be equal to the basic salary (as at the date of termination) which youUPDATE FC would have been entitled to receive under this letter during the notice period referred to in clause 1.1 (or, if notice has already been given, during the remainder of the notice period) less income tax and National Insurance contributions. For the avoidance of doubt, the Payment in lieuUPDATE FC shall not include any element in relation to:
(a)any bonus or commission payments that might otherwise have been due during the period for which the Payment in lieuUPDATE FC is made;
(b)any payment in respect of benefits which youUPDATE FC would have been entitled to receive during the period for which the Payment in lieuUPDATE FC is made; and
(c)any payment in respect of any holiday entitlement that would have accrued during the period for which the Payment in lieuUPDATE FC is made.
Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.com

11.2The CompanyUPDATE FC may pay any sums due under clause 11.1 in equal monthly instalments until the date end of the period for which the notice period referred to in clause 1.1 would have expired if notice had been given. YouUPDATE FC shall be obliged to seek alternative income during this period and to notify the CompanyUPDATE FC of any income so received. The instalment payments shall then be reduced by the amount of such income.
11.3YouUPDATE FC shall have no right to receive a Payment in lieuUPDATE FC unless the CompanyUPDATE FC has exercised its discretion in clause 11.1. Nothing in this clause 11 shall prevent the CompanyUPDATE FC from terminating your employmentUPDATE FC in breach.
11.4Notwithstanding clause 11.1 youUPDATE FC shall not be entitled to any Payment in lieuUPDATE FC if the CompanyUPDATE FC would otherwise have been entitled to terminate your employmentUPDATE FC without notice in accordance with clause 12. In that case the CompanyUPDATE FC shall also be entitled to recover from youUPDATE FC any Payment in lieuUPDATE FC (or instalments thereof) already made.
12.Termination Without Notice
12.1The CompanyUPDATE FC may terminate your employmentUPDATE FC with immediate effect without notice and with no liability to make any further payment (including Payment in lieu) to youUPDATE FC (other than in respect of amounts accrued due at the date of Termination and, if applicable, pursuant to clause 14UPDATE FC) if youUPDATE FC:
(a)are in breach of any representation or warranty made under this letter; or
(b)are guilty of any gross misconduct that is likely to affect the business or the goodwill of the CompanyUPDATE FC; or
(c)commit any serious or repeated breach or non-observance of any of the provisions of this letter or refuse or neglect to comply with any reasonable and lawful directions of the CompanyUPDATE FC; or
(d)are, in the reasonable opinion of the CompanyUPDATE FC, negligent in the performance of your duties; or
(e)are convicted of any criminal offence (other than an offence under any road traffic legislation in the United Kingdom or elsewhere for which a fine or non-custodial penalty is imposed); or
(f)are, in the opinion of a medical practitioner, physically or mentally incapable of performing your duties and may remain so for more than 6 months and the medical practitioner has given a medical opinion to the Company to that effect; or
(g)cease to be eligible to work in the United Kingdom; or
Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.com

(h)are guilty of any fraud or dishonesty or acts in any manner which in the opinion of the CompanyUPDATE FC brings or is likely to bring youUPDATE FC or the CompanyUPDATE FC into disrepute or is materially adverse to the interests of the CompanyUPDATE FC; or
(i)are guilty of a serious breach of any rules issued by the CompanyUPDATE FC from time to time regarding its electronic communications systems and data security; or
(j)are unable by reason of IncapacityUPDATE FC to perform your duties under this letter for an aggregate period of 3 months in any 12-month period.
12.2The rights of the CompanyUPDATE FC under clause 12.1 are without prejudice to any other rights that it might have at law to terminate your employmentUPDATE FC or to accept any breach of this letter by youUPDATE FC as having brought the letter to an end. Any delay by the CompanyUPDATE FC in exercising it rights to terminate your employment shall not constitute a waiver thereof.
13.EMPLOYEE NON-COMPETITION, NON-SOLICITATION, CONIFDENTIALITY and ASSIGNMENT AGREEMENT
You shall remain subject to the terms of the Employee Non-Competition, Non-Solicitation, Confidentiality and Assignment Agreement dated 14 December 2016 between Evelo Biosciences, Inc. and you (the “EPIIARCA”).
14.EXECUTIVE SEVERANCE PLAN
14.1Subject to this clause 14, you shall be entitled to receive severance benefits comparable to those described in the Evelo Biosciences, Inc. Executive Severance Plan, as amended from time to time (the “Plan”). 
14.2Your entitlement to and receipt of severance benefits pursuant to this clause 14 shall be conditional on and in consideration of:
(a)the terms of this clause 14;
(b)you complying with the obligations in clause 16;
(c)you complying with the EPIIARCA;
(d)you complying with and continuing to comply with your obligations relating to confidentiality, intellectual property and restrictive covenants as set out in clause 19, clause 20 and clause 21 respectively;
(e)clause 21 and the EPIIARCA applying notwithstanding that your employment may or otherwise have been repudiated by us; and
(f)you entering into a settlement agreement whereby you waive your right to bring claims against the Company and any Group Company as well as executing such documents in a form reasonably acceptable to us as we may require.
Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.com

14.3The following terms in the Plan shall be excluded or amended as follows:
(a)You shall not be entitled to receive continued coverage under the Evelo Biosciences, Inc. group health plans pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.  Any continued coverage under the Company benefits plans will be at the Company’s absolute discretion and subject to the consideration of the respective costs of being able to administer such plans following the termination of your employment.
(b)The severance payments referred to in the Plan shall be less any sums paid to you by way of notice (including notice during any period of Garden Leave) or Payment in lieu.
15.Garden Leave
15.1Following service of notice to terminate your employmentUPDATE FC by either party, or if youUPDATE FC purport to terminate your employmentUPDATE FC in breach of contract, the CompanyUPDATE FC may by written notice place youUPDATE FC on Garden LeaveUPDATE FC for the whole or part of the remainder of your employmentUPDATE FC.
15.2During any period of Garden LeaveUPDATE FC:
(a)The CompanyUPDATE FC shall be under no obligation to provide any work to youUPDATE FC and may revoke any powers youUPDATE FC hold on behalf of the CompanyUPDATE FCUPDATE FC;
(b)The CompanyUPDATE FC may require youUPDATE FC to carry out alternative duties or to only perform such specific duties as are expressly assigned to youUPDATE FC, at such location (including your homeUPDATE FC) as the CompanyUPDATE FC may decide;
(c)YouUPDATE FC shall continue to receive your basic salary and all contractual benefits in the usual way and subject to the terms of any benefit arrangement;
(d)YouUPDATE FC shall remain an employee of the CompanyUPDATE FC and bound by the terms of this letter (including any implied duties of good faith and fidelity);
(e)YouUPDATE FC shall ensure that your Line Manager knows where you will be and how you can be contacted during each working day (except during any periods taken as holiday in the usual way);
(f)The CompanyUPDATE FC may exclude youUPDATE FC from any premises of the CompanyUPDATE FC;UPDATE FC and
Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.com

(g)The CompanyUPDATE FC may require youUPDATE FC not to contact or deal with (or attempt to contact or deal with) any officer, employee, consultant, client, customer, supplier, agent, distributor, shareholder, adviser or other business contact of the CompanyUPDATE FCUPDATE FC.
16.Obligations Upon Termination
16.1On TerminationUPDATE FC of your employmentUPDATE FC (however arising) or, if earlier, at the start of a period of Garden LeaveUPDATE FC following the service of notice or purported TerminationUPDATE FC of your employmentUPDATE FC by youUPDATE FC, youUPDATE FC shall:
(a)subject to clause 16.2, immediately deliver to the CompanyUPDATE FC all documents, books, materials, records, correspondence, passwords, papers and information (on whatever media and wherever located) relating to the business or affairs of the CompanyUPDATE FC or its business contacts, any keys and any other property of the CompanyUPDATE FC, which is in your possession or under your control;
(b)irretrievably delete any information relating to the business of the CompanyUPDATE FC stored on any magnetic or optical disk or memory and all matter derived from such sources which is in your possession or under your control outside the premises of the CompanyUPDATE FC; and
(c)provide a signed statement that you have complied fully with your obligations under this clause 16.1 together with such reasonable evidence of compliance as the CompanyUPDATE FC may request.
16.2Where youUPDATE FC have been placed on Garden LeaveUPDATE FC you shall not be required by clause 16.1 to return until the end of the Garden LeaveUPDATE FC period any property provided to you as a contractual benefit for use during your employmentUPDATE FC.
16.3On termination of your employmentUPDATE FC however arising youUPDATE FC shall not be entitled to any compensation for the loss of any rights or benefits under any share option, bonus/commission, long-term incentive plan or other profit-sharing scheme operated by the CompanyUPDATE FC in which you may participate.
17.Disciplinary and grievance procedures
17.1Subject to clause 17.2, we will follow the ACAS guidelines for the management of disciplinary and grievance procedures which are in the Staff Handbook. These procedures do not form part of your contract of employment.
17.2We reserve the right to operate outside of the ACAS procedures for managing disciplinary and grievances in the workplace if you have less than 2 years of continuous service with us. 
Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.com

17.3If you wish to appeal against a disciplinary decision you may apply in writing to your Line Manager in accordance with our disciplinary procedure as set out in the Handbook. 
17.4If you wish to raise a grievance you may apply in writing to your Line Manager in accordance with our grievance procedure as set out in the Handbook.
18.Pensions
The Company will comply with the employer pension duties in accordance with Part 1 of the Pensions Act 2008. Please refer to the Benefits Policy in the UK Staff Handbook to understand the details of the pension scheme Evelo offers its UK employees. 
19.Confidential information
19.1For the purpose of this clause, the term Confidential Information shall mean information (whether or not recorded in documentary form, or stored on any magnetic or optical disk or memory) relating to the business, products, affairs and finances of the Company or any Group Company for the time being confidential to the Company and trade secrets including, without limitation, technical data and know-how relating to the business of the Company or any of our business contacts.  Confidential Information also includes similar information of a third party provided to the Company or any Group Company and with respect to which the Company or Group Company is obligated to maintain such information in confidence. 
19.2You acknowledge that in the course of your employment you will have access to Confidential Information. You have therefore agreed to accept the restrictions in this clause 19, which shall survive termination of your employment.  
19.3You shall not (except in the proper course of your duties), either during your employment or at any time after it ends (however arising), use or disclose to any person, company or other organisation whatsoever (and shall use your best endeavours to prevent the publication or disclosure of) any Confidential Information. This shall not apply to:
(a)any use or disclosure authorised by the Company or required by law;
(b)any information which is already in, or comes into, the public domain other than through your unauthorised disclosure; or
(c)any protected disclosure within the meaning of section 43A of the Employment Rights Act 1996.
20.Intellectual property
20.1For the purpose of this clause, the following terms have the following meaning:
(a)Employment Inventions:  any Invention which is made wholly or partially by you at any time during the course of your employment with us (whether or not during working hours or using our premises or resources, and whether or not recorded in material form).
Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.com

(b)Employment IPRs:  Intellectual Property Rights created by you in the course of your employment with us (whether or not during working hours or using our premises or resources).
(c)Intellectual Property Rights: patents, rights to Inventions, copyright and related rights, trademarks, trade names and domain names, trade secret rights, rights in get-up, goodwill and the right to sue for passing off or unfair competition, rights in designs, rights in computer software, database rights, rights to preserve the confidentiality of information (including know-how and trade secrets) and any other intellectual property rights, in each case whether registered or unregistered and including all applications (or rights to apply for and be granted) for and be granted, renewals or extensions of, and rights to claim priority from, such rights and all similar or equivalent rights or forms of protection which may now or in the future subsist in any part of the world. 
(d)Inventions: inventions, ideas and improvements, whether or not patentable, and whether or not recorded in any medium.
20.2You acknowledge that all Employment IPRs and Employment Inventions which relate to or are capable of being used in the business of any Group Company, and all materials embodying them, shall automatically belong to the Company to the fullest extent permitted by law. To the extent that they do not vest in the Company automatically, you hold them on trust for the Company.
20.3You acknowledge that, because of the nature of your duties and the particular responsibilities arising from the nature of your duties, you have, and shall have at all times while you are employed by the Company, a special obligation to further the interests of the Company.
20.4To the extent that legal title in any Employment IPRs or Employment Inventions does not vest in the Company by virtue of clause 20.1, you agree, immediately on creation of such rights and Inventions, to offer to the Company in writing a right of first refusal to acquire them on arm’s length terms to be agreed between the parties. If the parties cannot agree on such terms within 30 days of the Company receiving the offer, the Company shall refer the dispute to an expert. The expert's decisions shall be final and binding on the parties in the absence of manifest error, and the costs of arbitration shall be borne equally by the parties. The parties will be entitled to make submissions to the expert and will provide (or procure that others provide) the expert with such assistance and documents as the expert reasonably requires for the purpose of reaching a decision. You agree that the provisions of this clause 20 shall apply to all Employment IPRs and Employment Inventions offered to the Company under this clause 20.4 until such time as the Company has agreed in writing that you may offer them for sale to a third party.
20.5You agree:
(a)to give the Company full written details of all Employment Inventions which relate to or are capable of being used in the business of any Group Company promptly on their creation;
Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.com

(b)at the request of the Company and in any event on the termination of his employment to give to the Company all originals and copies of correspondence, documents, papers and records on all media which record or relate to any of the Employment IPRs;
(c)not to attempt to register any Employment IPR nor patent any Employment Invention unless requested to do so by the Company; and
(d)to keep confidential each Employment Invention unless the Company has consented in writing to its disclosure by you.
20.6You waive all your present and future moral rights which arise under the Copyright Designs and Patents Act 1988, and all similar rights in other jurisdictions relating to any copyright which forms part of the Employment IPRs, and agrees not to support, maintain nor permit any claim for infringement of moral rights in such copyright works.
20.7You acknowledge that, except as provided by law, no further remuneration or compensation other than that provided for in this letter is or may become due to you in respect of your compliance with this clause 20. This clause 20 is without prejudice to your rights under the Patents Act 1977.
20.8You undertake to use your best endeavours to execute all documents and do all acts both during and after your employment by the Company as may, in the opinion of the Company, be necessary or desirable to vest the Employment IPRs in the Company, to register them in the name of the Company and to protect and maintain the Employment IPRs and the Employment Inventions. Such documents may, at the request of the Company, include waivers of all and any statutory moral rights relating to any copyright works which form part of the Employment IPRs. The Company agrees to reimburse any of your reasonable expenses incurred by complying with this clause 20.8.
20.9You agree to give all necessary assistance to the Company to enable it to enforce its Intellectual Property Rights against third parties, to defend claims for infringement of third-party Intellectual Property Rights and to apply for registration of Intellectual Property Rights, where appropriate throughout the world, and for the full term of those rights.
20.10You hereby irrevocably appoint the Company to be your attorney to execute and do any such instrument or thing and generally to use your name for the purpose of giving the Company or its nominee the benefit of this clause 20. You acknowledge in favour of a third party that a certificate in writing signed by the Company that any instrument or act falls within the authority conferred by this clause 20 shall (unless there is manifest error) be conclusive evidence that such is the case.
Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.com

20.11For the avoidance of doubt, the affirmative and negative covenants contained in the EPIIARCA remain in full force and effect and are not superseded by this letter.  To the extent any provision of the EPIIARCA is inconsistent with the provisions of this letter, the provisions of the EPIIARCA shall govern. If any of the provisions of the EPIIARCA shall be held to be void but would be valid if part of their wording were deleted, such provision shall apply with such deletion as may be necessary to make it valid or effective.   
21.Post termination restrictions
21.1For the purpose of this paragraph, the following words shall have the following meanings:
(a)Confidential Information: as defined in clause 19;
(b)Group Company:  the Company, its Subsidiaries or Holding Companies from time to time and any Subsidiary of any Holding Company from time to time;
(c)Subsidiary and Holding Company:  in relation to a company means "subsidiary" and "holding company" as defined in section 1159 of the Companies Act 2006 and a company shall be treated, for the purposes only of the membership requirement contained in subsections 1159(1)(b) and (c), as a member of another company even if its shares in that other company are registered in the name of (a) another person (or its nominee), whether by way of security or in connection with the taking of security, or (b) a nominee.
(d)Restricted Business: any business that discovers, develops, manufactures, markets, licenses, sells or provides any biologic or pharmaceutical that (1) acts on the cells in the small intestine to achieve a local or systemic effect or (2) competes with any product or service that the Group Company develops, manufactures, markets, licenses, sells or provides, in each case with which you were involved to a material extent in the 12 months before termination.
(e)Restricted Customer: any firm, company or person who, during the 12 months before termination, was a customer or prospective customer of the Company with whom you had contact or about whom you became aware or informed in the course of your employment.
(f)Restricted Person: anyone employed by any Group Company who could materially damage the interests of any Group Company if they were involved in any Capacity in any business concern which competes with any Restricted Business and with whom you dealt in the 12 months before termination in the course of your employment.
21.2In addition to the terms of the EPIIARCA, in order to protect the Confidential Information and business connections of the Company and each Group Company to which you have access as a result of your employment, you covenant with the Company (for itself and as trustee and agent for each Group Company) that you shall not:
Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.com

(a)for 6 months after termination, solicit or endeavour to entice away from any Group Company the business of a Restricted Customer with a view to providing goods or services to that Restricted Customer in competition with any Restricted Business;
(b)for 6 months after termination in the course of any business concern which is in competition with any Restricted Business, offer to employ or engage or otherwise endeavour to entice away from any Group Company any Restricted Person;
(c)for 6 months after termination in the course of any business concern which is in competition with any Restricted Business, employ or engage or otherwise facilitate the employment or engagement of any Restricted Person, whether or not such person would be in breach of contract as a result of such employment or engagement; or
(d)at any time after termination, represent yourself as connected with any Group Company in any capacity, other than as a former employee, or use any registered names or trading names associated with any Group Company.
21.3The restrictions imposed on you by paragraph 21.2 apply to you acting:
(a)directly or indirectly; and
(b)on your own behalf or on behalf of, or in conjunction with, any firm, company or person.
21.4If you receive an offer to be involved in a business concern in any capacity during your employment, or before the expiry of the last of the covenants in paragraph 21.2, you shall give the person making the offer a copy of paragraph 21.2
21.5The Company and you entered into the restrictions in paragraph 21.2 having had the opportunity of been separately legally advised.
21.6Each of the restrictions in paragraph 21.2 is intended to be separate and severable. For the avoidance of doubt, the affirmative and negative covenants contained in the EPIIARCA remain in full force and effect and are not superseded by this letter.  To the extent any provision of the EPIIARCA is inconsistent with the provisions of this letter, the provisions of the EPIIARCA shall govern.  If any of the restrictions (in this letter or the EPIIARCA) shall be held to be void but would be valid if part of their wording were deleted, such restriction shall apply with such deletion as may be necessary to make it valid or effective.
21.7If your employment is transferred to any firm, company, person or entity other than a Group Company (the "New Employer") pursuant to the Transfer of Undertakings (Protection of Employment) Regulations 2006, you will, if required, enter into an letter with the New Employer containing post-termination restrictions corresponding to those restrictions in this paragraph 21, protecting the Confidential Information, trade secrets and business connections of the New Employer.
Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.com

22.DATA PROTECTION
22.1You are required to comply with our data protection policy, as set out in the Handbook, when handling personal data in the course of employment including personal data relating to any employee, customer, client, supplier or agent of the Company.
22.2For the purpose of compliance with the Data Protection Act 2018 and GDPR (collectively the Data Protection Legislation), the Company, may process your personal data in order for us to meet our obligations under these terms of employment, more specifically:
(a)for the processing of payroll;
(b)for the establishment, and maintenance of any benefits available to you under these terms of employment;  
(c)for advice we may require from our professional advisers in relation to your employment; 
(d)to comply with our obligations under any insurance policy we may have in relation to your employment; 
(e)to meet any statutory and / or regulatory reporting obligations, we have with respect to your employment; and
(f)where, due to any accident or injury, whether suspected or actual, in the course of your employment, we are required to make a report to any emergency, or health services, including their respective insurers. 
22.3Special Category Personal Data and Personal Data have specific meanings under the Data Protection Legislation. Where the Company is required to process any Special Category Personal Data or transfer any Personal Data outside of the European Economic Area, we will only do so where required by law, where it is necessary to administer the working relationship with you or where the Company has another legitimate interest in doing so. The Company will ensure appropriate security measures and transfer agreements are in place to protect your Personal Data. 
22.4The Company has a data protection policy which applies to your employment, and this is set out in the Handbook.
23.Reconstruction and Amalgamation
If your employmentUPDATE FC is terminated at any time by reason of any reconstruction or amalgamation of the CompanyUPDATE FC, whether by winding up or otherwise, and you are offered employment with any concern or undertaking involved in or resulting from the reconstruction or amalgamation on terms which (considered in their entirety) are no less favourable to any material extent than the terms of this letter, youUPDATE FC shall have no claim against the CompanyUPDATE FC or any such undertaking arising out of or connected with such termination.
Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.com

24.Notice
24.1Any notice given under this letter shall be in writing in the English language (or be accompanied by a properly prepared translation into English) and shall be served by delivering it personally, or sending it by pre-paid recorded delivery or registered post to the relevant party at (in the case of the Company) its registered office for the time being and (in your case) your last known address, or by sending it by e-mail to the e-mail address notified by the relevant party to the other party. Any such notice shall be deemed to have been received
(a)if delivered personally, at the time of delivery; or
(b)in the case of pre-paid recorded delivery or registered post, 48 hours from the date of posting; or
(c)in the case of email, at the time of transmission; or
(d)if deemed receipt under the previous paragraphs of this clause 24 is not within business hours (meaning 9:00am – 6:00pm Monday to Friday on a day that is not a public holiday in the place of receipt), then when business next starts in the place of receipt.
24.2In proving such service, it shall be sufficient to prove that the envelope containing such notice was addressed to the address of the relevant party and delivered either to that address or into the custody of the postal authorities as a pre-paid recorded delivery or registered post, or that the notice was transmitted by e-mail to the e-mail address of the relevant party.
24.3This clause does not apply to the service of any proceedings or other documents in any legal action.
25.Entire Agreement
25.1This letter (and any document referred to in it which, for the avoidance of doubt, includes the EPIIARCA) constitutes the whole agreement between the parties and supersedes any previous arrangement, understanding or agreement between them relating to the subject matter of this letter.
25.2Each party acknowledges that in entering into this letter it has not relied on and shall have no remedy in respect of any pre-contractual statementUPDATE FC.
25.3Each party agrees that its only liability in respect of those representations and warranties that are set out in this letter (whether made innocently or negligently) shall be for breach of contract.
25.4Nothing in this clause 25 shall limit or exclude any liability for fraud.
Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.com

26.Collective agreements
There is no collective agreement which directly affects your employment.

We very much look forward to your joining the team.  Please sign these terms of employment where set out below and return to the Evelo HR team, who will initially be your primary point of contact.  As you are signing this document as a deed, you will need to have your signature witnesses, and anyone is able to witness your signature and where they do, they must include their current address and the date they sign.   We will provide you with a countersigned copy of this document for your records. 
This document is signed as a deed.

						
	Daniel S. Char, a Director, for and on behalf of Evelo Biosciences (UK) Limited
	

/s/ Daniel S. Char

						
	Witness Name:
	/s/ Paula Flynn Char

	Witness Address:
	XXXXXX

	

	XXXXXX

	

	XXXXXX

	Date:
	December 31, 2021

 
 
I agree to the above terms of employment and duly execute this document as a deed
 
 
						
	Mark W. Bodmer. Ph.D.
	/s/ Mark W. Bodmer

Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.com

						
	Witness Name:
	/s/ P. Bodmer

	Witness Address:
	XXXXXX

	

	XXXXXX

	

	XXXXXX

	Date: 
	31/12/2021

Evelo Biosciences (UK) Limited. | 10 John Street, London, WC1N 2EB | www.evelobio.comExhibit 10.1

 

BION
ENVIRONMENTAL TECHNOLOGIES, INC.

2021 EQUITY INCENTIVE AWARD PLAN

Bion
Environmental Technologies, Inc. (the “Corporation”) has established this Bion Environmental Technologies, Inc. 2021 Equity
Incentive Award Plan (the “Plan”) to provide an additional inducement for Eligible Individuals to provide services to the
Corporation or an Affiliate as an employee, consultant, non-employee director, or independent contractor, to reward such Eligible Individuals
by providing an opportunity to acquire equity-based incentive awards, and to provide a means through which the Corporation may attract
able persons to enter the employment of or engagement with the Corporation or one of its Affiliates. Awards may, in the discretion of
the Board or Committee, and subject to such restrictions as the Board or Committee may determine or as provided, consist of Incentive
Stock Options, Non-Qualified Stock Options, Restricted Stock, Restricted Stock Units, Performance Units, Stock Appreciation Rights, or
any combination of the foregoing.

The
Plan will be effective as of [Date] (the “Effective Date”), the date of its adoption by the Board, provided that the stockholders
of the Corporation thereafter approve it at a duly held stockholders’ meeting or by written consent pursuant to the Colorado Business
Corporation Act. If the Plan is not so approved by stockholders, the Plan (and any Award granted under the Plan) will be null, void and
of no force or effect. If so approved, the Plan will remain in effect until the earliest of the date (a) all shares authorized to
be issued or transferred hereunder have been issued or transferred (b) the Plan is terminated by the Board of Directors, or (c) the
tenth anniversary of the Effective Date, and will continue in effect thereafter with respect to any Awards outstanding at the time of
such termination. In no event will an Incentive Stock Option be granted under the Plan more than ten (10) years from the date the Plan
is adopted by the Board, or the date the Plan is approved by the Corporation’s stockholders, whichever is earlier, unless within
such ten-year period stockholders approve an increase in the number of shares available for grants under the Plan, in which case an Incentive
Stock Option will not be granted under the Plan more than ten (10) years from the last date on which the stockholders so approve any
such increase.

ARTICLE
I

DEFINITIONS

Whenever
used in the Plan, the following capitalized terms have the meanings set forth below:

“Affiliate”
means any corporation that is a parent or subsidiary corporation (as Code Sections 424(e) and (f) define those terms) with respect to
the Corporation.

“Award”
means any right granted under the Plan, including an Incentive Stock Option, Non-Qualified Stock Option, Restricted Stock Award, Stock
Appreciation Rights, Performance Units or Restricted Stock Units granted under the Plan.

“Award
Agreement” means an agreement entered into between the Corporation and the applicable Participant, setting forth the terms
and provisions applicable to the Award then being granted under the Plan, as further described in Section 2.04 of the Plan. Each
Award Agreement will be subject to the terms and conditions of the Plan.

“Award
Date” means, with respect to any Award, the date of the grant or award specified by the Committee in a resolution or other
writing, duly adopted, and as set forth in the Award Agreement, provided that such Award Date will not be earlier than the date of the
Committee action.

    	 

    	 

    

“Board”
means the Board of Directors of the Corporation, as constituted at any time.

“Cashless
Exercise” means, as permitted by applicable law and in accordance with any procedures established by the Committee, an arrangement
whereby payment of some or all of the aggregate Exercise Price may be made all or in part by delivery of an irrevocable direction to
a securities broker to sell Stock and to deliver all or part of the sale proceeds to the Company.

“Cause”
will have the meaning set forth in any employment, consulting, or other written agreement between the Participant and the Corporation.
If there is no employment, consulting, or other written agreement between the Corporation or an Affiliate and the Participant or if such
agreement does not define “Cause”, then “Cause” will have the meaning specified in the Award Agreement; provided
that, if the Award Agreement does not so specify, “Cause” will mean, as determined by the Committee in its sole discretion,
the Participant’s (a) willful and continued failure to perform his or her material duties with the Corporation or an Affiliate,
or the commission of any activities constituting a violation or breach under any federal, state or local law or regulation applicable
to the activities of the Corporation or an Affiliate, (b) fraud, breach of fiduciary duty, dishonesty, misappropriation or other
actions that cause damage to the property or business of the Corporation or an Affiliate, (c) repeated absences from work such that
the Participant is unable to perform his or her employment or other duties in all material respects, other than due to becoming a Disabled
Participant, (d) admission or conviction of, or plea of nolo contendere to, any felony, or to any other crime that, in the
reasonable judgment of the Board or Committee, adversely affects the Corporation’s or an Affiliate’s reputation or the Participant’s
ability to carry out the obligations of his or her employment or Service, (e) loss of any license or registration that is necessary
for the Participant to perform his or her duties for the Corporation or an Affiliate, (f) failure to cooperate with the Corporation
or an Affiliate in any internal investigation or administrative, regulatory or judicial proceeding, or (g) act or omission in violation
or disregard of the Corporation’s or an Affiliate’s policies, including but not limited to the Corporation’s or an
Affiliate’s harassment and discrimination policies or Standards of Conduct then in effect, in such a manner as to cause loss, damage
or injury to the property, reputation or employees of the Corporation or an Affiliate. Before the Committee determines that “Cause”
has occurred under clause (a), (b), (c), (e), (f) or (g) above, the Committee will provide to the Participant in writing, in reasonable
detail, the reasons for the determination that such “Cause” exists, and afford the Participant a reasonable opportunity to
remedy any such breach, action or inaction, if such breach action or inaction, is capable of being remedied. In addition, the Participant’s
Service will be deemed to have terminated for Cause if, after the Participant’s Service has terminated, facts and circumstances
are discovered that would have justified a termination for Cause. For purposes of this Plan, no act or failure to act on the Participant’s
part will be considered “willful” unless it is done, or omitted to be done, by him or her in bad faith or without reasonable
belief that his or her action or omission was in the best interests of the Corporation or an Affiliate. Any act, or failure to act, based
upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Corporation or an
Affiliate will be conclusively presumed to be done, or omitted to be done, in good faith and in the best interests of the Corporation
or an Affiliate.

    	2 

    	 

    

“Change
in Control” means the first to occur of the following:

(a)              
One Person or more than one Person acting as a group acquires ownership of stock of the Corporation that, together with the stock
held by such Person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock
of the Corporation; provided, that, a Change in Control shall not occur if any Person or more than one Person acting as a group owns
more than fifty percent (50%) of the total fair market value or total voting power of the Corporation’s stock and acquires additional
stock;

(b)              
One Person or more than one Person acting as a group acquires (or has acquired during the twelve-month period ending on the date
of the most recent acquisition) ownership of the Corporation's stock possessing thirty percent (30%) or more of the total voting power
of the stock of the Corporation;

(c)              
A majority of the members of the Board are replaced during any twelve-month period by directors whose appointment or election
is not endorsed by a majority of the Board before the date of appointment or election; or

(d)              
One Person or more than one Person acting as a group acquires (or has acquired during the twelve-month period ending on the date
of the most recent acquisition) assets from the Corporation that have a total gross fair market value equal to or more than fifty percent
(50%) of the total gross fair market value of all of the assets of the Corporation immediately before such acquisition(s).

“Clawback
Policy” has the meaning set forth in Section 9.13.

“Code”
means the Internal Revenue Code of 1986, as amended. A reference to any provision of the Code will be deemed to include reference to
any successor provision of the Code.

“Committee”
means the Compensation Committee, if any, or such similar or successor committee appointed by the Board. If the Board has not appointed
a Committee, the Board will function in place of the Committee.

“Common
Stock” means the common stock, no par value per share, of the Corporation, or such other securities as may be designed by the
Committee from time to time.

“Consultant”
means an individual or entity that is not an Employee or Director of the Corporation or an Affiliate, but who or which is providing services
to the Corporation or an Affiliate as an independent contractor, and who may be offered securities registrable pursuant to a registration
statement on Form S-8 under the Securities Act.

“Corporation”
means Bion Environmental Technologies, Inc., a Colorado corporation, and any successor thereto.

    	3 

    	 

    

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

“Director”
means any individual who is a member of the Board.

“Disabled
Participant” means, unless the applicable Award Agreement states otherwise, the Participant is (a) unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in
death or that has lasted or can be expected to last for a continuous period of not less than 12 months, or (b) is, by reason of any medically
determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period
of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under a disability plan covering
Employees or Directors; provided, however, for
purposes of determining the term of an Incentive Stock Option pursuant to Section 3.04, the term Disability shall have the meaning
ascribed to it under Section 22(e)(3) of the Code. Medical determination may be made by either the Social Security Administration or
by the provider of a disability plan covering Employees or Directors, provided that the definition of “disability” applied
under such disability insurance program complies with the requirements of the preceding sentence. Upon the request of the Committee,
the Participant must submit proof to the Committee of the Social Security Administration’s or the provider’s determination.

“Dividend
Equivalent” means a right to receive on the payment date for any dividend on the shares of Stock underlying an Award, cash
compensation from the Corporation equal to the dividend that would have been paid on such shares of Stock (or the Fair Market Value of
such dividend, if such dividend would not have been paid in cash), if such shares had been issued and outstanding, fully vested and held
by the Participant on the record date for payment of such dividend. Notwithstanding the foregoing, if such dividend would not have been
paid in cash, the Dividend Equivalent with respect thereto will not be paid unless and until certificates evidencing the shares of Stock
with respect to which it is paid are issued to the Participant. Dividend Equivalents may be provided, in the Committee’s discretion,
in connection with any Award under the Plan, subject to Section 2.05.

    	4 

    	 

    

“Eligible
Individual” means any Employee, Consultant or Non-Employee Director of the Corporation or an Affiliate.

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

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

“Exercise
Price” has the meaning set forth in Section 3.02(a).

“Fair
Market Value” will mean (a) if the Common Stock is readily tradeable on a national securities exchange or quotation system,
the closing sales price of the Common Stock on the Award Date, time of exercise, or other date of calculation (or on the last preceding
trading date if Common Stock was not traded on such date), or (b) if the Common Stock is not readily tradeable on a national securities
exchange or quotation system, the fair market value as determined in good faith by the Board or the Committee, by the reasonable application
of a reasonable valuation method consistent with the Code, or Treasury Regulations thereunder, as the Board or the Committee will in
its discretion select and apply at the time of the Award Date, time of exercise, or other date of calculation.

“Freestanding
SAR” means a Stock Appreciation Right that is granted independently of any Options, as described in Article VI.

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

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

(b)              
If no such agreement exists or if such agreement does not define Good Reason, the occurrence of one or more of the following without
the Participant’s express written consent, which circumstances are not remedied by the Corporation within thirty (30) days of its
receipt of a written notice from the Participant describing the applicable circumstances (which notice must be provided by the Participant
within ninety (90) days of the Participant’s knowledge of the applicable circumstances): (i) any material, adverse change in the
Participant’s duties, responsibilities, authority, title, status or reporting structure, (ii) a material reduction in the Participant’s
base salary or bonus opportunity, or (iii) a geographical relocation of the Participant’s principal office location by more than
fifty (50) miles.

“Incentive
Stock Option” or “ISO” means an option that is designated as an “Incentive Stock Option” within
the meaning of Code Section 422. Any Option that does not qualify under Code Section 422 will be treated as a Non-Qualified Stock Option.

    	5 

    	 

    

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

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

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

“Option”
means an option to purchase Stock at an Exercise Price determined on the Award Date, subject to the applicable provisions of Article III,
awarded in accordance with the terms of the Plan, and which may be an Incentive Stock Option or a Non-Qualified Stock Option.

“Participant”
means an Eligible Individual who the Committee has selected to participate in the Plan in accordance with Section 2.02 of the Plan.

“Performance
Goals” will mean performance goals established by the Committee prior to the grant of an Award based on factors including,
but not limited to, the following: (a) net earnings; (b) operating earnings or income; (c) earnings growth; (d) net
income; (e) net income applicable to shares; (f) gross revenue or revenue by pre-defined business; (g) revenue backlog;
(h) margins realized on delivered products and services; (i) cash flow, including operating cash flow, free cash flow, discounted
cash flow return on investment, and cash flow in excess of cost of capital; (j) earnings per share; (k) return on stockholders’
equity; (l) stock price; (m) return on common stockholders’ equity; (n) return on capital; (o) return on assets;
(p) economic value added (income in excess of cost of capital); (q) customer satisfaction; (r) cost control or expense
reduction; and (s) ratio of operating expenses to operating revenues, in each case, absolute or relative to peer-group comparative.

The
Committee also may base Performance Goals upon attaining specified levels of Corporation performance under one or more of the measures
described above relative to the performance of other corporations. The Committee will have the discretion to adjust targets set for pre-established
performance objectives.

“Performance
Period” has the meaning set forth in Section 4.01.

“Performance
Unit” means a performance unit subject to the requirements of Article IV and awarded in accordance with the terms of the
Plan.

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

“Plan”
means the Bion Environmental Technologies, Inc., 2021 Equity Incentive Award Plan, as set forth herein, as the same may be amended, administered,
restated or interpreted from time to time.

“Restricted
Stock” means an award of shares of Stock delivered under the Plan subject to the requirements of Article V and such other
restrictions as the Committee deems appropriate or desirable, including restrictions on transferability, a risk of forfeiture, and certain
other terms and conditions under the Plan or specified by the Committee. The restrictions on, and risk of forfeiture of, Restricted Stock
generally will expire on a specified date, upon the occurrence of an event or achievement of Performance Goals, or on an accelerated
basis under certain circumstances specified in the Plan or the Award Agreement.

    	6 

    	 

    

“Restricted
Stock Unit” or “RSU” means a notional account established pursuant to an Award granted to a Participant,
as described in Article V that is (a) valued solely by reference to shares of Stock, (b) subject to restrictions specified
in the Award Agreement, and (c) payable only in Stock. The RSUs awarded to the Participant will vest according to the time-based
or performance-based criteria specified in the Award Agreement.

“Restricted
Period” has the meaning set forth in Section 5.02.

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

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

“Service”
means the provision of personal services to the Corporation or its Affiliates in the capacity of (a) an Employee, (b) a Director,
or (c) a Consultant.

“Significant
Event” has the meaning set forth in Section 4.03.

“Stock”
means the Common Stock of the Corporation.

“Stock
Appreciation Right” or “SAR” means the award of the contingent right to receive Stock or cash, as specified
in the Award Agreement, in the future, based on the value or the appreciation in the value of Stock, pursuant to the terms of Article VI.
The Committee may grant SARs alone or in connection with a related Option. Stock Appreciation Rights may be either Freestanding SARs
or Tandem SARs.

“Tandem
SAR” means a SAR that is granted in connection with a related Option pursuant to Article VI, the exercise of which requires
forfeiture of the right to purchase a share of Stock under the related Option (and when a share of Stock is purchased under the Option,
the Tandem SAR similarly will be canceled).

“Termination”
or “Terminated” means a cessation of the employee-employer relationship between a Participant and the Corporation
and its Affiliates (other than by reason of transfer of the Employee among the Corporation and its Affiliates), a cessation of an individual’s
Director or Consultant relationship with the Corporation, or the consummation of a transaction whereby a Participant’s employer
(other than the Corporation) ceases to be an Affiliate of the Corporation.

“Ten
Percent Owner” has the meaning set forth in Section 3.04(f).

“Total
Share Reserve” has the meaning set forth in 2.03.

    	7 

    	 

    

ARTICLE
II

PLAN ADMINISTRATION

Section
2.01. Administration. The Committee will administer the Plan. The Committee will interpret the Plan and prescribe such rules, regulations,
and procedures in connection with the operation of the Plan, as it will deem to be necessary and advisable for the administration of
the Plan consistent with the purposes of the Plan. Without limiting the foregoing, the Committee will have the authority and complete
discretion to:

(a)              
Promulgate, amend, and rescind rules and regulations relating to the Plan;

(b)              
Select Eligible Individuals to receive Awards under the Plan as provided in Section 2.02 of the Plan;

(c)              
Determine the form and terms of Awards;

(d)              
Determine when Awards are to be granted under the Plan and the applicable Award Date;

(e)              
Determine the number of shares of Stock or other consideration subject to Awards under the Plan as provided in Articles 3 through
6 of the Plan;

(f)               
Determine whether Awards will be granted singly, in combination or in tandem with, in replacement of, or as alternatives to, other
Awards under the Plan or grants or awards under any other incentive or compensation plan of the Corporation;

(g)              
Construe and interpret the Plan, any Award Agreement in connection with an Award and any other agreement or document executed
pursuant to the Plan;

(h)              
Correct any defect or omission, or reconcile any inconsistency in the Plan, any Award, or any Award Agreement;

(i)                
Authorize any person to execute on behalf of the Corporation any instrument required to effectuate the grant of an Award and delegate
to officers of the Corporation the authority to perform administrative functions under the Plan subject to any legal requirements that
the Committee as a whole take action with respect to such function;

(j)                
Modify the terms of any Award, and authorize the exchange or replacement of Awards; provided, however, that (i) no such modification,
exchange or substitution will be to the detriment of a Participant with respect to any Award previously granted without the affected
Participant’s written consent, (ii) in no event will the Committee be permitted to reduce the Exercise Price of any outstanding
Option or to exchange or replace an outstanding Option with a new Option with a lower Exercise Price, except pursuant to Section 2.05,
and (iii) any such modification, exchange or substitution will not violate Code Section 409A;

(k)              
Determine whether a Participant has engaged in the operation or management of a business that is in competition with the Corporation
or any of its Affiliates, or whether a Participant has violated the release or restrictive covenants of Section 9.11; and

(l)                
Make all other determinations deemed necessary or advisable for the administration of the Plan.

    	8 

    	 

    

The
Committee will keep records of action taken at its meetings. A majority of the Committee will constitute a quorum at any meeting, and
the acts of a majority of the members present at any meeting at which a quorum is present, or acts approved in writing by a majority
of the Committee, will be the acts of the Committee.

Section
2.02. Eligibility. Those Eligible Individuals who share the responsibility for the management, growth or protection of the business
of the Corporation or any Affiliate or who, in the opinion of the Committee, provide services yielding significant benefits to the Corporation
or any Affiliate will be eligible to receive Awards as described herein. Subject to the provisions of the Plan, the Committee will have
full and final authority, in its discretion, to grant Awards as described herein and to determine the Eligible Individuals to whom Awards
will be granted.

Section
2.03. Shares Available Under the Plan. Subject to adjustment as set forth in Section 2.05, the maximum number of shares of Stock
that may be issued or delivered and as to which Awards may be granted under the Plan will be equal to the sum of: (a) 30,000,000 (30mm)
shares of Stock; and (b) any shares of Stock subject to an Award under the Plan that expire without being exercised, or are forfeited,
canceled, settled or otherwise terminated without a distribution of Stock to the Participant (the “Total Share Reserve”).
Notwithstanding anything to the contrary in this Section 2.03, (i) in no event will more than 2,500,000 (2.5mm) shares of Stock
be cumulatively available for Awards of Incentive Stock Options under the Plan.

If
any Award granted under the Plan is canceled by mutual consent or terminates or expires for any reason without having been exercised
in full, or, if and to the extent that an award of Performance Units or RSUs is paid in cash rather than the issuance of shares of Stock,
the number of shares subject to such Award (or in the case of Performance Units or RSUs the number of shares of Stock for which payment
was made in cash) will again be available for purposes of the Plan, except that, to the extent that Stock Appreciation Rights granted
in conjunction with an Option under the Plan are exercised and the related Option surrendered, the number of shares available for purposes
of the Plan will be reduced by the number of shares, if any, of Stock issued or delivered upon exercise of such Stock Appreciation Rights.

The
shares that may be issued or delivered under the Plan may be either authorized but unissued shares, repurchased shares, or partly each.
Shares subject to an Award under the Plan shall not again be made available for issuance or delivery under the Plan if such shares are
(a) shares tendered in payment of an Option, (b) shares delivered or withheld by the Corporation to satisfy any tax withholding obligation,
or (c) shares covered by a stock-settled Stock Appreciation Right or other Awards that were not issued upon the settlement of the Award.

If,
in connection with an acquisition of another company or all or part of the assets of another company by the Corporation or an Affiliate,
or in connection with a merger or other combination of another company with the Corporation or an Affiliate, the Corporation either (A) assumes
stock options or other stock incentive obligations of such other company, or (B) grants stock options or other stock incentives
in substitution for stock options or other stock incentive obligations of such other company, then none of the shares of Stock that are
issuable or transferable pursuant to such stock options or other stock incentives that are assumed or granted in substitution by the
Corporation will be charged against the limitations set forth in this Section.

    	9 

    	 

    

Section
2.04. Award Agreement. Each Award granted under the Plan will be evidenced by a written Award Agreement, in a form approved by the
Committee. Such Award Agreement will be subject to and incorporate the express terms and conditions, if any, required under the Plan
or as required by the Committee for the form of Award granted and such other terms and conditions as the Committee may specify, and will
be executed by the chairman of the Board, chairman of the Committee, or any person designated by the Board or Committee, and by the Participant
to whom such Award is granted. With the consent of the Participant to whom such Award is granted, the Board may at any time and from
time to time amend an outstanding Award Agreement in a manner consistent with the Plan. Without consent of the Participant, the Board
of Directors may at any time and from time to time modify or amend Award Agreements with respect to Options intended as of the Award
Date to be Incentive Stock Options in such respects as it deems necessary in order that Incentive Stock Options granted under the Plan
will comply with the appropriate provisions of the Code and regulations thereunder which are in effect from time to time with respect
to Incentive Stock Options.

Section
2.05. Adjustment and Substitution of Shares. If a dividend or other distribution will be declared upon the Stock, payable in shares
of Stock, the number of shares of Stock then subject to any outstanding Award or by reference to which the amount of any other Award
is determined and the number of shares that may be issued or delivered under the Plan will be adjusted by adding thereto the number of
shares that would have been distributable thereon if such shares had been outstanding on the date fixed for determining the stockholders
entitled to receive such stock dividend or distribution. An increase in the number of shares subject to an Award will not occur when
the Committee has awarded Dividend Equivalents with respect to such Award.

If
the outstanding shares of Stock will be changed into or exchangeable for a different number or kind of shares of Stock or other securities
of the Corporation or another corporation, whether through reorganization, reclassification, recapitalization, stock split-up, combination
of shares, merger or consolidation, then the Committee will substitute for each share of Stock subject to any then outstanding Award
and for each share of Stock, which may be issued or delivered under the Plan but is not then subject to an outstanding Award, the number
and kind of shares of Stock or other securities into which each outstanding share of Stock is so changed or for which each such share
is exchangeable; provided, that, in the event of a merger, acquisition or other business combination of the Corporation with or into
another entity, any adjustment provided for in the applicable agreement and plan of merger (or similar document) will be conclusively
deemed to be appropriate for purposes of this Section 2.05.

In
the case of any adjustment or substitution as provided for in this Section 2.05, the aggregate Exercise Price for all shares subject
to each then outstanding Option prior to such adjustment or substitution will be the aggregate Exercise Price for all shares of Stock
or other securities (including any fraction) to which such shares will have been adjusted or which will have been substituted for such
shares. Any new Exercise Price per share will be carried to at least three decimal places with the last decimal place rounded upwards
to the nearest whole number.

    	10 

    	 

    

No
adjustment or substitution provided for in this Section 2.05 will require the Corporation to issue or sell a fraction of a share
or other security. Accordingly, all fractional shares or other securities that result from any such adjustment or substitution will be
eliminated and not carried forward to any subsequent adjustment or substitution.

If
any such adjustment or substitution provided for in this Section 2.05 requires the approval of stockholders in order to enable the
Corporation to grant Incentive Stock Options, then no such adjustment or substitution of ISOs will be made without prior stockholder
approval. If the effect of any adjustment or substitution would be to cause an Option to fail to continue to qualify as an ISO or to
cause a modification, extension or renewal of such Option within the meaning of Code Sections 409A or 424, the Committee may elect that
such adjustment or substitution not be made but rather will use reasonable efforts to effect such other adjustment of each then outstanding
Option as the Committee in its sole discretion will deem equitable and which will not result in any disqualification, modification, extension
or renewal (within the meaning of Code Sections 409A or 424) of such Incentive Stock Option.

Section
2.06. Corporation’s Obligation to Deliver Stock. The obligation of the Corporation to issue or deliver shares of Stock under
the Plan will be subject to (a) the effectiveness of a registration statement under the Securities Act, with respect to such shares,
if deemed necessary or appropriate by counsel for the Corporation; (b) the condition that the shares will have been listed (or authorized
for listing upon official notice of issuance) upon each stock exchange or quotation system on which such shares may then be listed; and
(c) all other applicable laws, regulations, rules and orders which may then be in effect.

Each
Award Agreement shall provide that no shares of Common Stock shall be purchased or sold thereunder unless and until (a) any then applicable
requirements of state or federal laws and regulatory agencies have been fully complied with to the satisfaction of the Corporation and
its counsel and (b) if required to do so by the Corporation, the Participant has executed and delivered to the Corporation a letter of
investment intent in such form and containing such provisions as the Committee may require.

The
Corporation shall use reasonable efforts to seek to obtain from each regulatory commission or agency having jurisdiction over the Plan
such authority as may be required to grant Awards and to issue and sell shares of Common Stock upon exercise of the Awards; provided,
however, that this undertaking shall not require the Corporation to register under the Securities Act the Plan, any Award or any Common
Stock issued or issuable pursuant to any such Award. If, after reasonable efforts, the Corporation is unable to obtain from any such
regulatory commission or agency the authority which counsel for the Corporation deems necessary for the lawful issuance and sale of Common
Stock under the Plan, the Corporation shall be relieved from any liability for failure to issue and sell Common Stock upon exercise of
such Awards unless and until such authority is obtained.

    	11 

    	 

    

ARTICLE
III

STOCK OPTION terms and conditions

Section
3.01. Grant of Stock Options. The Committee will have authority, in its discretion, to grant Incentive Stock Options, Non-Qualified
Stock Options or both types of Options. Notwithstanding the above, the Committee may grant Incentive Stock Options to Employees only.

Section
3.02. Consideration. Options granted under the Plan will be subject to the following terms and conditions:

(a)              
The purchase price at which each Option may be exercised (the “Exercise Price”) will be such price as the Committee,
in its discretion, will determine, except that, the Exercise Price will not be less than one hundred percent (100%) of the Fair Market
Value per share of Stock covered by the Option as determined on the Award Date.

(b)              
The Exercise Price will be payable in full in any one or more of the following ways, as will be determined by the Committee to
be applicable to any such Award:

(i)                
in cash or by certified or bank check at the time the Option is exercised;

(ii)             
a Cashless Exercise; or

(iii)           
in the discretion of the Committee, upon such terms as the Committee shall approve, the Option Exercise Price may be paid:

(A)            
in shares of Stock (which are owned by the Participant free and clear of all liens and other encumbrances and which are not subject
to the restrictions set forth in Article V) having an aggregate Fair Market Value on the date of exercise of the Option equal to
the Exercise Price for the shares being purchased; or

(B)             
by requesting that the Corporation withhold such number of shares of Stock then issuable upon exercise of the Option as will have
an aggregate Fair Market Value equal to the Exercise Price for the shares being acquired upon exercise of the Option (and any applicable
withholding taxes); or

(C)             
by any combination of the foregoing; or

(D)            
in any other form of legal consideration that may be acceptable to the Committee.

If
the Exercise Price is paid in whole or in part in shares of Stock, any portion of the Exercise Price representing a fraction of a share
will be paid in cash. The date of exercise of an Option will be determined under procedures established by the Committee, and the Exercise
Price will be payable at such time or times as the Committee, in its discretion, will determine. No shares will be issued or delivered
upon exercise of an Option until full payment of the Exercise Price has been made. When full payment of the Exercise Price has been made,
the Participant will be considered for all purposes to be the owner of the shares with respect to which payment has been made.

    	12 

    	 

    

Section
3.03. Vesting of Options. Each Option may, but need not, vest and therefore become exercisable in periodic installments that may,
but need not, be equal. The Option may be subject to such other terms and conditions on the time or times when it may be exercised (which
may be based on performance or other criteria) as the Committee may deem appropriate. The vesting provisions of individual Options may
vary, provided that each Option shall vest no earlier than one year after the Award Date. No Option may be exercised for a fraction of
a share of Common Stock.

(a)              
No Non-Qualified Stock Option will be exercisable after the expiration of ten years from the Award Date, provided that if an exercise
would violate applicable securities laws, the Non-Qualified Stock Option will be exercisable no more than 30 days after the exercise
of the Option first would no longer violate applicable securities laws.

(b)              
Unless otherwise determined by the Committee in its sole discretion, following a Participant’s Termination of Continuous
Service (other than death or becoming a Disabled Participant), the Participant may exercise the Option but only within such period of
time ending on the earlier of (a) the date three months following the Termination of Continuous Service or (b) the expiration of the
term of the Option as set forth in the Award Agreement; provided that, if the Termination of Continuous Service is by the Corporation
for Cause, all outstanding Options (whether or not vested) shall immediately terminate and cease to be exercisable.

(c)              
Unless otherwise provided in an Award Agreement or determined by the Committee in its sole discretion, in the event that a Participant's
Continuous Service terminates as a result of the Participant’s Disability, the Participant may exercise his or her Option (to the
extent that the Participant was entitled to exercise such Option as of the date of termination), but only within such period of time
ending on the earlier of (a) the date 12 months following such termination or (b) the expiration of the term of the Option as set forth
in the Award Agreement. 

(d)              
Unless otherwise provided in an Award Agreement or determined by the Committee in its sole discretion, in the event a Participant's
Continuous Service terminates as a result of the Participant's death, then the Option may be exercised (to the extent the Participant
was entitled to exercise such Option as of the date of death) by the Participant's estate, by a person who acquired the right to exercise
the Option by bequest or inheritance or by a person designated to exercise the Option upon the Participant's death, but only within the
period ending on the earlier of (a) the date 12 months following the date of death or (b) the expiration of the term of such Option as
set forth in the Award Agreement.

Section
3.04. Special Provisions Applicable to ISOs. Notwithstanding any other provision of this Article III, the following special
provisions will apply to any award of Incentive Stock Options:

(a)              
No Incentive Stock Option will be exercisable after the expiration of ten years from the Award Date.

(b)              
The Committee will not award an Incentive Stock Option under this Plan if it would cause the aggregate Fair Market Value of Stock
with respect to which Incentive Stock Options are exercisable by the Participant for the first time during a calendar year (under all
plans of the Corporation and its Affiliates) to exceed $100,000.

    	13 

    	 

    

(c)              
If the Employee to whom the Incentive Stock Option is granted is a Ten Percent Owner of the Corporation, then: (i) the Exercise
Price for each share subject to an Option will be at least one hundred ten percent (110%) of the Fair Market Value of the Stock on the
Award Date; and (ii) the Option will expire upon the earlier of (A) the time specified by the Committee in the Award Agreement,
or (B) the fifth anniversary of the Award Date.

(d)              
No Option that is intended to be an Incentive Stock Option may be granted under the Plan until the Corporation’s stockholders
approve the Plan. If such stockholder approval is not obtained within 12 months after the Board’s adoption of the Plan, then no
Options may be granted under the Plan that qualify or are intended to be Incentive Stock Options.

(e)              
An Incentive Stock Option must be exercised, if at all, within three months after the Participant’s Termination for a reason
other than death or becoming a Disabled Participant, and within twelve months after the Participant’s Termination for death or
becoming a Disabled Participant; provided that, an Option that is intended to be an Incentive Stock Option may be exercised more than
three months, but not more than twelve months, after the Participant’s Termination for a reason other than death or becoming a
Disabled Participant, in which case the Option will be a Nonqualified Stock Option. Notwithstanding the foregoing, if the Termination
is by the Corporation for Cause, all outstanding Options (whether or not vested) shall immediately terminate and cease to be exercisable.

(f)               
For purposes of this Section, Ten Percent Owner means an individual who, at the time an Option is granted under this Plan, owns
(or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Corporation or any Affiliate (a “Ten Percent Owner”). For purposes of this Section 3.04(f),
a Participant will be considered as owning (i) not only shares of the Stock owned individually, but also all shares that are at
the time owned, directly or indirectly, by or for the spouse, ancestors, lineal descendants and brothers and sisters (whether by the
whole or half-blood) of such individual and (ii) proportionately any shares of Stock owned, directly or indirectly, by or for any
corporation, partnership, estate or trust in which such individual will be a stockholder, partner or beneficiary.

ARTICLE
IV

PERFORMANCE UNITS

Section
4.01. Performance Period and Objectives. The Committee will have authority, in its discretion, to award Performance Units to Eligible
Individuals. The Committee will determine a performance period (the “Performance Period”) of one or more years and will determine
the Performance Goals for grants of Performance Units. Performance Goals may vary from Participant to Participant. Performance Periods
may overlap and Participants may participate simultaneously with respect to Performance Units for which different Performance Periods
are prescribed.

    	14 

    	 

    

Section
4.02. Eligibility. The Committee will determine for each Participant or group of Participants eligible for Performance Units with
respect to a Performance Period the range of dollar values, if any, which may be fixed or may vary in accordance with such performance
or other criteria specified by the Committee, which will be paid to a Participant as an Award if the relevant Performance Goals for the
Performance Period are met.

Section
4.03. Significant Event. If during the course of a Performance Period there will occur a significant event or events (a “Significant
Event”) as determined by the Committee, including, but not limited to, a reorganization of the Corporation or a Change in Control,
which the Committee expects to have a substantial effect on a Performance Goal during such period, the Committee may revise such objective.

Section
4.04. Termination. If a Participant terminates Service with the Corporation or any of its Affiliates during a Performance Period
because of death, becoming a Disabled Participant, or a Significant Event, as determined by the Committee, that Participant will be entitled
to payment in settlement of each Performance Unit for which the Performance Period was prescribed (a) based upon the Performance
Goals satisfied at the end of such period; and (b) prorated for the portion of the Performance Period during which the Participant
was in Service with the Corporation or any of its Affiliates; provided, however, the Committee may provide for an earlier payment in
settlement of such Performance Unit in such amount or amounts and under such terms and conditions as the Committee deems appropriate
or desirable with the consent of the Participant. If a Participant terminates Service with the Corporation or any of its Affiliates during
a Performance Period for any other reason, the Participant will not be entitled to any payment with respect to that Performance Period
unless the Committee will otherwise determine.

Section
4.05. Award. Each Performance Unit will be paid in cash either as a lump sum payment or in annual installments, as the Committee
will determine at the time of grant of the Performance Unit or otherwise, commencing as soon as practicable after the end of the relevant
Performance Period.

Section
4.06. Section 409A. Performance Units granted under this Article IV will be subject to and conform to the requirements of Code
Section 409A.

ARTICLE
V

RESTRICTED STOCK AND RESTRICTED STOCK UNITS

Section
5.01. Award. Subject to the terms and provisions of the Plan, the Committee may grant, at any time and from time to time, Restricted
Stock or Restricted Stock Units to any Eligible Individual in the number and form, and subject to such restrictions on transferability
and other restrictions as the Committee may determine in its discretion, including without limitation the achievement of Performance
Goals. Restricted Stock and RSUs will be subject to a restriction period (after which restrictions will lapse), which means a period
commencing on the Award Date and ending on such date or upon the achievement of such Performance Goals or other criteria as the Committee
will determine (the “Restriction Period”). The Committee may provide for the lapse of restrictions in installments where
it deems appropriate.

    	15 

    	 

    

Section
5.02. Restriction Period. The Restriction Period shall commence on the Award Date and end no earlier than one (1) year after the
Award Date. Except as otherwise provided in this Article V, Restricted Stock received by a Participant may, but need not, provide
that such Restricted Award may not be sold, exchanged, transferred, pledged, hypothecated, or otherwise disposed of during the Restriction
Period as the Committee shall determine. Except as otherwise provided in the Award Agreement, the Restriction Period for any recipient
of Restricted Stock or RSUs will expire and all restrictions on shares of Restricted Stock will lapse upon a Participant’s death
or becoming a Disabled Participant.

Section
5.03. Termination. Except as otherwise provided in Section 5.02 above, if a Participant’s Termination of Continuous Service
occurs before the expiration of the Restriction Period, all shares of Restricted Stock still subject to restriction, will be forfeited
by the recipient, unless the Committee otherwise determines, and will be reacquired by the Corporation. Such forfeited shares of Restricted
Stock will again become available for award under the Plan.

Section
5.04. Dividend Equivalents. Any Award of Restricted Stock under the Plan may earn, in the discretion of the Committee, Dividend Equivalents.
In respect of any such Award that is outstanding on a dividend record date for Stock, the Participant may be credited with an amount
equal to the cash or stock dividends or other distributions that would have been paid on the shares of Stock covered by such Award had
such covered shares been issued and outstanding on such dividend record date. The Committee will establish such rules and procedures
governing the crediting of Dividend Equivalents, including the timing, form of payment and payment contingencies of such Dividend Equivalents,
as it deems are appropriate or necessary.

Section
5.05. Deferral of Restricted Stock. If the applicable Award Agreement so provides, a Participant may elect, in accordance with such
procedures as the Committee may specify from time to time, to defer the delivery of such Restricted Stock and, if the deferral election
so specifies, of the Dividend Equivalents with respect thereto, until the date or dates specified in such election. Any deferral under
this Section must comply with the provisions of Code Section 409A. Deferred Restricted Stock will not be issued until the date or dates
that it is to be delivered to the Participant in accordance with his or her deferral election, at which time certificates evidencing
Stock will be delivered to the Participant (unless such Deferred Restricted Stock has previously been forfeited pursuant to Section 5.03).
From the Award Date of Deferred Restricted Stock through the earlier of (a) the date such Deferred Restricted Stock is forfeited,
and (b) the date certificates evidencing such Deferred Restricted Stock are delivered to the Participant, the Participant will be
entitled to receive Dividend Equivalents with respect thereto, but will have none of the rights of a stockholder with respect to such
shares; provided, that if the deferral election made with respect to such Deferred Restricted Stock specifies that the Dividend Equivalents
will be deferred, the Dividend Equivalents will not be paid until the date or dates specified in such deferral election.

ARTICLE
VI

STOCK APPRECIATION RIGHTS

Section
6.01. Grant of Stock Appreciation Rights. The Committee will have the authority, in its discretion, to grant Stock Appreciation Rights
to Participants at any time and from time to time. Within the limits of Article II and this Article VI, the Committee will
have sole discretion to determine the number of SARs granted to each Participant and, consistent with the provisions of the Plan, to
determine the terms and conditions pertaining to SARs. The Committee may grant Freestanding SARs, Tandem SARs or any combination of the
two, as specified in the Award Agreement. Stock Appreciation Rights granted in conjunction with a Non-Qualified Stock Option may be granted
either at the time such Non-Qualified Stock Option is granted or at any time thereafter during the term of such Non-Qualified Stock Option.

    	16 

    	 

    

Section
6.02. Exercise of Tandem SARs. Tandem SARs may be exercised for all or part of the shares subject to the related Option, upon the
surrender of the right to exercise the equivalent portion of the related Option. A Tandem SAR may be exercised only with respect to the
shares for which its related Option is then exercisable.

Section
6.03. Exercise of Freestanding SARs. Freestanding SARs may be exercised upon whatever terms and conditions the Committee, in its
sole discretion, imposes and sets forth in the Award Agreement.

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

Section
6.05. Term of SARs. The Committee will determine the term of an SAR, in its sole discretion, which it will set forth in the Award
Agreement. The term of an SAR may not exceed ten years.

Section
6.06. Vesting. Each Stock Appreciation Right shall vest and therefore become exercisable no earlier than one (1) year after the Award
Date. No Stock Appreciation Right may be exercised for a fraction of a share of Common Stock.

Section
6.07. Payment of SAR Amount. Upon exercise of an SAR, a Participant will be entitled to receive payment from the Corporation in an
amount determined by multiplying:

(a)              
the excess (or some portion of the excess as determined at the time of the grant by the Committee) if any, of the Fair Market
Value of a share on the date of exercise of the SAR over the Exercise Price specified in the SAR or related Option; by

(b)              
the number of shares of Stock as to which the SAR is exercised.

The
Committee will set forth in the Award Agreement whether the payment upon SAR exercise will be made in cash, in shares of Stock of equivalent
Fair Market Value or in some combination of the two.

    	17 

    	 

    

ARTICLE
VII

CERTIFICATES FOR AWARDS OF STOCK

Section
7.01. Stock Certificates. Except as otherwise provided in this Section 7.01, each Participant entitled to receive shares of
Stock under the Plan will be issued a certificate for such shares. Such certificate will be registered in the name of the Participant
and will bear an appropriate legend reciting the terms, conditions and restrictions, if any, applicable to the Stock and will be subject
to appropriate stop-transfer orders. To the extent that the Plan provides for issuance of stock certificates to reflect the issuance
of shares of Stock, the issuance may be effected on a non-certificated basis, to the extent not prohibited by applicable law or the applicable
rules of any stock exchange or quotation system. If the issuance of shares under the Plan is effected on a non-certificated basis, the
issuance of shares to a Participant will be reflected by crediting (by means of a book entry) the applicable number of shares of Stock
to an account maintained by the Corporation in the name of such Participant, which account may be an account maintained by the Corporation
for such Participant under any dividend reinvestment program offered by the Corporation. The Committee may require, under such terms
and conditions as it deems appropriate or desirable, that the certificates for Restricted Stock delivered under the Plan be held in custody
by a bank or other institution, or that the Corporation may itself hold such shares in custody until the Restriction Period expires or
until restrictions thereon otherwise lapse, and may require, as a condition of any receipt of Restricted Stock, that the recipient will
have delivered a stock power endorsed in blank relating to the Restricted Stock. Certificates for shares of unrestricted Stock may be
delivered to the Participant after, and only after, the Restricted Period will have expired without forfeiture in respect of such shares
of Restricted Stock.

Section
7.02. Compliance with Laws and Regulations. The Corporation will not be required to issue or deliver any certificates for shares
of Stock, or to effect the issuance of any non-certificated shares as provided in Section 7.01, prior to (a) the listing of
such shares on any stock exchange or quotation system on which the Stock may then be listed; and (b) the completion of any registration
or qualification of such shares under any Federal or state law, or any ruling or regulation of any government body which the Corporation
will, in its sole discretion, determine to be necessary or advisable.

Section
7.03. Restrictions. All certificates for shares of Stock delivered under the Plan (and all non-certificated shares credited to a
Participant’s account as provided in Section 7.01) also will be subject to such stop-transfer orders and other restrictions
as the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any
stock exchange or quotation system upon which the Stock is then listed and any applicable Federal or state securities laws; and the Committee
may cause a legend or legends to be placed on any such certificates to make appropriate reference to such restrictions. The foregoing
provisions of this Section 7.03 will not be effective if and to the extent that the shares of Stock delivered under the Plan are
covered by an effective and current registration statement under the Securities Act, or if and so long as the Committee determines that
application of such provisions is no longer required or desirable. In making such determination, the Committee may rely upon an opinion
of counsel for the Corporation.

    	18 

    	 

    

Section
7.04. Rights of Stockholders. Except for the restrictions on Restricted Stock under Article V, each Participant who receives
an award of Stock will have all of the rights of a stockholder with respect to such shares, including the right to vote the shares and
receive dividends and other distributions. No Participant awarded an Option, a Stock Appreciation Right, a Performance Unit or RSU will
have any right as a stockholder with respect to any shares subject to such Award prior to the date of issuance to him or her of a certificate
or certificates for such shares, or if applicable, the crediting of non-certificated shares to an account maintained by the Corporation
in the name of such Participant.

ARTICLE
VIII

CHANGE IN CONTROL

Section
8.01. Change in Control. In the event of a Change in Control, the following provisions will apply:

(a)              
In the event of a Participant’s Termination without Cause or for Good Reason during the 12-month period following a Change
in Control, notwithstanding any provision of the Plan or any applicable Award Agreement to the contrary, all outstanding Options and
Stock Appreciation Rights shall become immediately exercisable with respect to 100% of the shares subject to such Options or Stock Appreciation
Rights and the Restriction Period shall expire immediately with respect to 100% of the outstanding shares of Restricted Stock or Restricted
Stock Units as of the date of the Participant’s Termination; provided, that full vesting of all outstanding Awards will be effective
immediately upon the Change of Control unless the Corporation is the surviving entity and any adjustments necessary to preserve the value
of the Participant’s outstanding Awards have been made, or the Corporation’s successor at the time of the Change in Control
irrevocably assumes the Corporation’s obligations under this Plan or replaces each Participant’s outstanding Award with an
award of equal or greater value and having terms and conditions no less favorable to the Participant than those applicable to the Participant’s
Award immediately prior to the Change in Control.

(b)       With
respect to Performance Unit Awards, in the event of Participant’s Termination without Cause or Good Reason within 12 months following
a Change in Control, all Performance Goals or other vesting criteria will be deemed achieved at 100% of target levels and all other terms
and conditions will be deemed met as of the date of the Participant’s Termination.

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

    	19 

    	 

    

ARTICLE
IX

MISCELLANEOUS

Section
9.01. Effect of the Plan on the Rights of Employees and Employer. Neither the adoption of the Plan nor any action of the Board or
the Committee pursuant to the Plan will be deemed to give any Eligible Individual any right to be granted an Award under the Plan and
nothing in the Plan, in any Award granted under the Plan or in any Award Agreement will confer any right to any Participant to continue
in the employment of the Corporation or any Affiliate or to continue to be retained to provide Services to the Corporation or any Affiliate
as a Director, or Consultant or interfere in any way with the rights of the Corporation or any Affiliate to terminate a Participant’s
Service at any time.

Section
9.02. Amendment. The Board specifically reserves the right to alter and amend the Plan at any time and from time to time and the
right to revoke or terminate the Plan or to suspend the granting of Awards pursuant to the Plan; provided always that no such revocation,
termination, alteration or suspension of any Award will terminate any outstanding Award theretofore granted under the Plan, unless there
is a liquidation or a dissolution of the Corporation; and provided further that no such alteration or amendment of the Plan will, without
prior stockholder approval (a) increase the total number of shares which may be issued or delivered under the Plan; (b) make
any changes in the class of Eligible Individuals; (c) extend the period set forth in the Plan during which Awards may be granted;
or (d) make any changes that require stockholder approval under the rules and regulations of any securities exchange or quotation
system on which the Stock is traded. No alteration, amendment, revocation, or termination of the Plan or suspension of any Award will
adversely affect, without the written consent of the holder of an Award theretofore granted under the Plan, the rights of such holder
with respect to such Award. The Committee may not amend any Award to extend the exercise period beyond a date that is later than the
earlier of the latest date upon which the Award could have expired by its original terms under any circumstances or the tenth anniversary
of the original date of grant of the Award, or otherwise cause the Award to become subject to Code Section 409A. However, if the exercise
period of an Option is extended at a time when the Exercise Price of the Option equals or exceeds the Fair Market Value of the Stock
that could be purchased (in the case of an Option) or the Fair Market Value of the Stock used to determine the payment to the Participant
(in the case of a Stock Appreciation Right), it is not an extension of the original Award.

Section
9.03. Unfunded Status of Plan. The Plan will be unfunded. The Corporation will not be required to establish any special or separate
fund nor to make any other segregation of assets to assume the payment of any benefits under the Plan. With respect to any payments not
yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award will give any such Participant any rights
that are greater than those of a general unsecured creditor of the Corporation; provided, however, that the Committee may authorize the
creation of trusts or make other arrangements to meet the Corporation’s obligations under the Plan to deliver cash, shares or other
property pursuant to any Award, which trusts or other arrangements will be consistent with the “unfunded” status of the Plan
unless the Committee otherwise determines. Any provision of this Plan that becomes subject to Code Section 409A, will be interpreted
and applied consistent with that Section.

    	20 

    	 

    

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

Section
9.05. Benefits. Amounts received under the Plan are not to be taken into account for purposes of computing benefits under other plans.

Section
9.06. Successors and Assigns. All decisions made by the Committee pursuant to the provisions of the Plan shall be final and binding
on the Corporation and the Participants.

Section
9.07. Headings. Captions preceding the sections hereof are inserted solely as a matter of convenience and in no way define or limit
the scope or intent of any provision hereof.

Section
9.08. Federal and State Laws, Rules and Regulations. The Plan and the grant of Awards will be subject to all applicable federal and
state laws, rules, and regulations and to such approval by any government or regulatory agency as may be required.

Section
9.09. Governing Law. To the extent not preempted by federal law, this Plan, any Award Agreement, and documents evidencing Awards
or rights relating to Awards will be construed, administered and governed in all respects under and by the laws of the State of Colorado,
without giving effect to its conflict of laws principles. If any provision of this Plan will be held by a court of competent jurisdiction
to be invalid or unenforceable, the remaining provisions hereof will continue to be fully effective. The jurisdiction and venue for any
disputes arising under, or any action brought to enforce (or otherwise relating to), this Plan will be exclusively in the courts located
in the City and County of Denver, including the Federal Courts located therein (should Federal jurisdiction exist).

Section
9.10. Beneficiary Designation. Each Participant may name, from time to time, any beneficiary or beneficiaries (who may be named contingently
or successively) to whom any benefit under the Plan is to be paid in case the Participant should die before receiving any or all of his
or her Plan benefits. Each beneficiary designation will revoke all prior designations by the same Participant, must be in a form prescribed
by the Committee, and must be made during the Participant’s lifetime. If the Participant’s designated beneficiary predeceases
the Participant or no beneficiary has been designated, benefits remaining unpaid at the Participant’s death will be paid to the
Participant’s estate or other entity described in the Participant’s Award Agreement.

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

    	21 

    	 

    

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

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

Section
9.14. Notice. Any notice or other communication required or permitted under the Plan must be in writing and must be delivered personally,
sent by certified, registered, or express mail, or sent by overnight courier, at the sender’s expense. Notice will be deemed given
(a) when delivered personally or, (b) if mailed, three days after the date of deposit in the United States mail or, (c) if
sent by overnight courier, on the regular business day following the date sent. Notice to the Participant should be sent to the address
set forth on the Corporation’s records. Either party may change the address to which the other party must give notice under this
Section by giving the other party written notice of such change, in accordance with the procedures described above.

Section
9.15. Awards Not Transferable. Except as otherwise provided in a Participant’s Award Agreement, no Option, ISO, SAR, RSU, Restricted
Stock, or Performance Unit granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated,
other than by will or by the laws of descent and distribution, in the case of death of a Participant, or pursuant to a domestic relations
order (as defined in Code Section 414(p)). The Committee may require, in its discretion, a Participant’s guardian or legal representative
to supply it with the evidence the Committee deems necessary to establish the authority of the guardian or legal representative to act
on behalf of the Participant.

    	22 

    	 

    

An
Award Agreement for a grant of Non-Qualified Stock Options may permit or may be amended to permit the Participant who received the Option,
at any time prior to the Participant’s death, to assign all or any portion of the Option granted to him or her to (a) the
Participant’s spouse or lineal descendants; (b) the trustee of a trust for the primary benefit of the Participant, the Participant’s
spouse or lineal descendants, or any combination thereof; (c) a partnership of which the Participant, the Participant’s spouse
and/or lineal descendants are the only partners; (d) custodianships for lineal descendants under the Uniform Transfers to Minors
Act or any other similar statute; or (e) upon the termination of a trust by the custodian or trustee thereof, or the dissolution
or other termination of the family partnership or the termination of a custodianship under the Uniform Transfers to Minors Act or other
similar statute, to the person or persons who, in accordance with the terms of such trust, partnership or custodianship are entitled
to receive Options held in trust, partnership or custody. In such event, the spouse, lineal descendant, trustee, partnership or custodianship
will be entitled to all of the Participant’s rights with respect to the assigned portion of such Option, and such portion of the
Option will continue to be subject to all of the terms, conditions and restrictions applicable to the Option, as set forth herein and
in the related Award Agreement. Any such assignment will be permitted only if: (i) the Participant does not receive any consideration
therefor; and (ii) the applicable Award Agreement expressly permits the assignment. The Committee’s approval of an Award Agreement
with assignment rights will not require the Committee to include such assignment rights in an Award Agreement with any other Participant.
Any such assignment will be evidenced by an appropriate written document executed by the Participant, and the Participant will deliver
a copy thereof to the Committee on or prior to the effective date of the assignment. An assignee or transferee of an Option must sign
an agreement with the Corporation to be bound by the terms of the applicable Award Agreement.

Section
9.16. Awards to Foreign Nationals and Employees Outside the United States. To the extent the Committee deems it necessary, appropriate
or desirable to comply with foreign law of practice and to further the purposes of this Plan, the Committee may, without amending the
Plan, (a) establish rules applicable to Awards granted to Participants who are foreign nationals, are employed outside the United
States, or both, including rules that differ from those set forth in this Plan, and (b) grant Awards to such Participants in accordance
with those rules.

Section
9.17. Compliance with Code Section 409A. Notwithstanding any provision of this Plan to the contrary, all Awards made under this Plan
are intended to be exempt from or, in the alternative, comply with Code Section 409A and the interpretive guidance thereunder, including
the exceptions for stock rights and short-term deferrals. The Plan will be construed and interpreted in accordance with such intent.

APPROVED
AND ADOPTED this [Day] day of [Month], [Year].

 

__________________________

[Name],

Chief
Executive Officer

 

ATTEST:

__________________________

[Name],

[Position]

 

 

 

    	23

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