Document:

Exhibit 10.1

 

MAJESCO ENTERTAINMENT COMPANY

 

AMENDED AND RESTATED 2004 EMPLOYEE, DIRECTOR
AND CONSULTANT INCENTIVE PLAN

(as amended on April 25, 2014)

 

This Amended and Restated
2004 Employee, Director and Consultant Incentive Plan amends and restates in its entirety the Majesco Entertainment Company 2004
Employee, Director and Consultant Stock Plan.

 

		1.	DEFINITIONS.

 

Unless otherwise specified or unless the context
otherwise requires, the following terms, as used in this Majesco Entertainment Company Amended and Restated 2004 Employee, Director
and Consultant Incentive Plan, have the following meanings:

 

Administrator means the Board of Directors,
unless it has delegated power to act on its behalf to the Committee, in which case the Administrator means the Committee.

 

Affiliate means a corporation which, for purposes
of Section 424 of the Code, is a parent or subsidiary of the Company, direct or indirect.

 

Agreement means an agreement between the Company
and a Participant delivered pursuant to the Plan, in such form as the Administrator shall approve.

 

Board of Directors means the Board of Directors
of the Company.

 

Cash Award shall mean an award of cash granted
pursuant to the Plan.

 

Code means the United States Internal Revenue
Code of 1986, as amended.

 

Committee means the committee of the Board of
Directors to which the Board of Directors has delegated power to act under or pursuant to the provisions of the Plan.

 

Common Stock means shares of the Company’s
common stock, $0.001 par value per share.

 

Company means Majesco Entertainment Company,
a Delaware corporation.

 

Disability or Disabled means permanent
and total disability as defined in Section 22(e)(3) of the Code.

 

Employee means any employee of the Company or
of an Affiliate (including, without limitation, an employee who is also serving as an officer or director of the Company or of
an Affiliate), designated by the Administrator to be eligible to be granted one or more Cash Awards or Stock Rights under the Plan.

 

Fair Market Value of a Share of Common Stock
means:

 

(1) If the Common Stock is listed on a national
securities exchange or traded in the over-the-counter market and sales prices are regularly reported for the Common Stock, the
closing or last price of the Common Stock on the Composite Tape or other comparable reporting system for the trading day immediately
preceding the applicable date;

 

(2) If the Common Stock is not traded on a national
securities exchange but is traded on the over-the-counter market, if sales prices are not regularly reported for the Common Stock
for the trading day referred to in clause (1), and if bid and asked prices for the Common Stock are regularly reported, the mean
between the bid and the asked price for the Common Stock at the close of trading in the over-the-counter market for the trading
day on which Common Stock was traded immediately preceding the applicable date; and

 

(3) If the Common Stock is neither listed on a
national securities exchange nor traded in the over-the-counter market, such value as the Administrator, in good faith, shall determine.

 

ISO means an option meant to qualify as an incentive
stock option under Section 422 of the Code.

 

Non-Qualified Option means an option which is
not intended to qualify as an ISO.

 

Option means an ISO or Non-Qualified Option
granted under the Plan.

 

Participant means an Employee, director or consultant
of the Company or an Affiliate to whom one or more Cash Awards and/or Stock Rights are granted under the Plan. As used herein,
“Participant” shall include “Participant’s Survivors” where the context requires.

 

    	 

    	 

    

 

Performance Goal means the goal or goals, if
any, established by the Administrator based on one or more of the following business criteria that are to be achieved during a
Performance Cycle determined by the Administrator: Earnings per share, operating income, net income, cash flow, gross profit, return
on investment, gross margin, working capital, earnings before interest and tax (EBIT), earnings before interest, tax, depreciation
and amortization (EBITDA), return on equity, return on assets, return on capital, revenue growth, total shareholder return, and
economic value added, customer satisfaction, technology leadership, number of new patents, employee retention, market share, market
segment share, product release schedules, new product innovation, product cost reduction through advanced technology, brand recognition/acceptance,
and product ship targets. Performance Goals may be based (as the Administrator deems appropriate) on (a) Company-wide performance,
(b) performance of a subsidiary, division, region, department, function, plant, facility or other operational unit of the
Company, (c) individual performance (if applicable), or (d) any combination of the foregoing. Performance Goals may be
set in any manner determined by the Administrator, including looking to achievement on an absolute basis or on a relative basis
to prior periods or in relation to peer group, indexes or other external measure of the selected criteria. When the Administrator
sets Performance Goals that are intended for “performance-based compensation” within the meaning of Section 162(m)
of the Code, the Administrator shall establish the general objective rules that the Administrator will use to determine the extent,
if any, that such Performance Goals have been met. In establishing the objective rules, the Administrator may take into account
any extraordinary or one-time or other non-recurring items of income or expense or gain or loss or any events, transactions or
other circumstances that the Administrator deems relevant in light of the nature of the Performance Goals set for the Participant
or the assumptions made by the Administrator regarding such goals.

 

Performance Cycle means the period selected
by the Administrator during which performance is measured for the purpose of determining the extent to which a Performance Goal
has been achieved.

 

Plan means this Majesco Entertainment Company
Amended and Restated 2004 Employee, Director and Consultant Incentive Plan.

 

Shares means shares of the Common Stock as to
which Stock Rights have been or may be granted under the Plan or any shares of capital stock into which the Shares are changed
or for which they are exchanged within the provisions of Paragraph 3 of the Plan. The Shares issued under the Plan may be
authorized and unissued shares or shares held by the Company in its treasury, or both.

 

Stock Appreciation Right means the right to
receive an amount equal to the excess of the Fair Market Value of a share of Common Stock (as determined on the date of exercise)
over the purchase price of a share of Common Stock on the date a stock appreciation right is granted.

 

Stock-Based Award means a grant by the Company
under the Plan of an equity award or equity based award which is not an Option or Stock Grant.

 

Stock Grant means a grant by the Company of
Shares under the Plan.

 

Stock Right means a right to Shares or the value
of Shares of the Company granted pursuant to the Plan — an ISO, a Non-Qualified Option, a Stock Grant or a Stock-Based Award.

 

Survivor means a deceased Participant’s
legal representatives and/or any person or persons who acquired the Participant’s rights to a Cash Award or Stock Right by
will or by the laws of descent and distribution.

 

		2.	PURPOSES
OF THE PLAN.

 

The Plan is
intended to encourage ownership of Shares by Employees and directors of and certain consultants to the Company in order to attract
such people, to induce them to work for the benefit of the Company or of an Affiliate and to provide additional incentive for them
to promote the success of the Company or of an Affiliate. The Plan provides for the granting of ISOs, Non-Qualified Options, Stock
Grants, Stock-Based Awards and Cash Awards.

 

		3.	SHARES
SUBJECT TO THE PLAN.

 

(a) The
number of Shares which may be issued from time to time pursuant to this Plan shall be 17,442,857,
or the equivalent of such number of Shares after the Administrator, in its sole discretion, has interpreted the effect of any future
stock split, stock dividend, combination, recapitalization or similar transaction in accordance with Paragraph 25 of the Plan.

 

(b) The
grant of any Stock Right other than an Option or a Stock Appreciation Right shall for purposes of Paragraph 3(a), reduce the
number of Shares available for issuance under this Plan by 1.18 Shares for each such Share actually subject to the Stock Right
and shall be deemed for purposes of this Paragraph 3, as a Stock Right of 1.18 Shares for each such Share actually subject
to the Stock Right. The grant of an Option or a Stock Appreciation Right shall be deemed for purposes of this Paragraph 3,
as a Stock Right for one Share for each such Share actually subject to the Stock Right. Notwithstanding the foregoing, Stock Appreciation
Rights to be settled in shares of Common Stock shall be counted in full against the number of Shares available for issuance under
the Plan, regardless of the number of exercise gain shares issued upon the settlement of the Stock Appreciation Right.

 

(c) If
an Option ceases to be “outstanding”, in whole or in part (other than by exercise), or if the Company shall reacquire
(at no more than its original issuance price) any Shares issued pursuant to a Stock Grant or Stock Based Award, or if any Stock
Right expires or is forfeited, cancelled, or otherwise terminated or results in any Shares not being issued, the unissued Shares
which were subject to such Stock Right shall again be available for issuance from time to time pursuant to this Plan and in accordance
with the provision of Paragraph 3(b) above. Notwithstanding the foregoing, if a Stock Right is exercised, in whole or in part,
by tender of Shares or if the Company’s tax withholding obligation is satisfied by withholding Shares, the number of Shares
deemed to have been issued under the Plan for purposes of the limitation set forth in Paragraph 3(a) above shall be the number
of Shares that were subject to the Stock Right or portion thereof, and not the net number of Shares actually issued and any Stock
Appreciation Right to be settled in shares of Common Stock shall be counted in full against the number of Shares available for
issuance under the Plan, regardless of the number of exercise gain shares issued upon the settlement of the Stock Appreciation
Right.

 

		4.	ADMINISTRATION
OF THE PLAN.

 

The Administrator
of the Plan will be the Board of Directors, except to the extent the Board of Directors delegates its authority to the Committee,
in which case the Committee shall be the Administrator. Subject to the provisions of the Plan, the Administrator is authorized
to:

 

    	 

    	 

    

 

		a.	Interpret
the provisions of the Plan and all Stock Rights and Cash Awards and make all rules and determinations which it deems necessary
or advisable for the administration of the Plan;

 

		b.	Determine
which Employees, directors and consultants shall be granted Stock Rights and Cash Awards;

 

		c.	Determine
the number of Shares for which a Stock Right or Stock Rights shall be granted, provided, however, that in no event shall Stock
Rights with respect to more than 1,000,000 Shares be granted to any Participant in any fiscal year. Determine the amount of any
Cash Award, provided, however the maximum payment which may become payable to a Participant with respect to a Cash Award in any
calendar year is $2,000,000.

 

		d.	Specify
the terms and conditions upon which Stock Rights and Cash Awards may be granted; and

 

		e.	Adopt
any sub-plans applicable to residents of any specified jurisdiction as it deems necessary or appropriate in order to comply with
or take advantage of any tax or other laws applicable to the Company or to Plan Participants or to otherwise facilitate the administration
of the Plan, which sub-plans may include additional restrictions or conditions applicable to Cash Awards, Stock Rights or Shares
issuable pursuant to a Stock Right.

 

provided, however, that all such interpretations, rules, determinations,
terms and conditions shall be made and prescribed in the context of not causing any adverse tax consequences under Section 409A
of the Code and preserving the tax status under Section 422 of the Code of those Options which are designated as ISOs. Subject
to the foregoing, the interpretation and construction by the Administrator of any provisions of the Plan or of any Cash Award or
Stock Right granted under it shall be final, unless otherwise determined by the Board of Directors, if the Administrator is the
Committee. In addition, if the Administrator is the Committee, the Board of Directors may take any action under the Plan that would
otherwise be the responsibility of the Committee.

 

If permissible
under applicable law, the Board of Directors or the Committee may allocate all or any portion of its responsibilities and powers
to any one or more of its members and may delegate all or any portion of its responsibilities and powers to any other person selected
by it. Any such allocation or delegation may be revoked by the Board of Directors or the Committee at any time.

 

		5.	ELIGIBILITY
FOR PARTICIPATION.

 

The Administrator
will, in its sole discretion, name the Participants in the Plan, provided, however, that each Participant must be an Employee,
director or consultant of the Company or of an Affiliate at the time a Stock Right or Cash Award is granted. Notwithstanding the
foregoing, the Administrator may authorize the grant of a Stock Right or Cash Award to a person not then an Employee, director
or consultant of the Company or of an Affiliate; provided, however, that the actual grant of such Stock Right or Cash Award shall
be conditioned upon such person becoming eligible to become a Participant at or prior to the time of the execution of the Agreement
evidencing such Stock Right or Cash Award. ISOs may be granted only to Employees. Non-Qualified Options, Stock Grants, Stock-Based
Awards and Cash Awards may be granted to any Employee, director or consultant of the Company or an Affiliate. The granting of any
Stock Right or Cash Award to any individual shall neither entitle that individual to, nor disqualify him or her from, participation
in any other grant of any Stock Right or Cash Award.

 

		6.	TERMS
AND CONDITIONS OF OPTIONS.

     

Each Option
shall be set forth in writing in an Option Agreement, duly executed by the Company and, to the extent required by law or requested
by the Company, by the Participant. The Administrator may provide that Options be granted subject to such terms and conditions,
consistent with the terms and conditions specifically required under this Plan, as the Administrator may deem appropriate including,
without limitation, subsequent approval by the shareholders of the Company of this Plan or any amendments thereto. The Option Agreements
shall be subject to at least the following terms and conditions:

 

		A.	Non-Qualified
Options: Each Option intended to be a Non-Qualified Option shall be subject to the terms and conditions which the Administrator
determines to be appropriate and in the best interest of the Company, subject to the following minimum standards for any such
Non-Qualified Option:

 

		a.	Option
Price: Each Option Agreement shall state the option price (per share) of the Shares covered by each Option, which option price
shall be determined by the Administrator but shall not be less than the Fair Market Value per share of Common Stock.

 

		b.	Number
of Shares: Each Option Agreement shall state the number of Shares to which it pertains;

 

		c.	Option
Periods: Each Option Agreement shall state the date or dates on which it first is exercisable and the date after which it may
no longer be exercised, and may provide that the Option rights accrue or become exercisable in installments over a period of months
or years, or upon the occurrence of certain conditions or the attainment of stated goals or events including, but not limited
to, the Performance Goals; and

 

		d.	Option
Conditions: Exercise of any Option may be conditioned upon the Participant’s execution of a Share purchase agreement in
form satisfactory to the Administrator providing for certain protections for the Company and its other shareholders, including
requirements that:

 

    	 

    	 

    

 

		i.	The
Participant’s or the Participant’s Survivors’ right to sell or transfer the Shares may be restricted; and

 

		ii.	The
Participant or the Participant’s Survivors may be required to execute letters of investment intent and must also acknowledge
that the Shares will bear legends noting any applicable restrictions.

 

		e.	Each
Non-Qualified Option shall terminate not more than seven years from the date of the grant or at such earlier time as the Option
Agreement may provide.

 

		B.	ISOs:
Each Option intended to be an ISO shall be issued only to an Employee and be subject to the following terms and conditions, with
such additional restrictions or changes as the Administrator determines are appropriate but not in conflict with Section 422
of the Code and relevant regulations and rulings of the Internal Revenue Service:

 

		a.	Minimum
standards: The ISO shall meet the minimum standards required of Non-Qualified Options, as described in Paragraph 6(A) above,
except clause (a) thereunder.

 

		b.	Option
Price: Immediately before the ISO is granted, if the Participant owns, directly or by reason of the applicable attribution rules
in Section 424(d) of the Code:

 

		i.	10%
or less of the total combined voting power of all classes of stock of the Company or an Affiliate, the Option price per
share of the Shares covered by each ISO shall not be less than 100% of the Fair Market Value per share of the Shares on the date
of the grant of the Option; or

 

		ii.	More
than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, the Option price per share
of the Shares covered by each ISO shall not be less than 110% of the said Fair Market Value on the date of grant.

 

		c.	Term
of Option: For Participants who own:

 

		i.	10%
or less of the total combined voting power of all classes of stock of the Company or an Affiliate, each ISO shall terminate
not more than seven years from the date of the grant or at such earlier time as the Option Agreement may provide; or

 

		ii.	More
than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, each ISO shall terminate not
more than five years from the date of the grant or at such earlier time as the Option Agreement may provide.

 

		d.	Limitation
on Yearly Exercise: The Option Agreements shall restrict the amount of ISOs which may become exercisable in any calendar year
(under this or any other ISO plan of the Company or an Affiliate) so that the aggregate Fair Market Value (determined at the time
each ISO is granted) of the stock with respect to which ISOs are exercisable for the first time by the Participant in any calendar
year does not exceed $100,000.

 

		7.	TERMS
AND CONDITIONS OF STOCK GRANTS.

 

Each offer
of a Stock Grant to a Participant shall state the date prior to which the Stock Grant must be accepted by the Participant, and
the principal terms of each Stock Grant shall be set forth in an Agreement, duly executed by the Company and, to the extent required
by law or requested by the Company, by the Participant. The Agreement shall be in a form approved by the Administrator and shall
contain terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject
to the following minimum standards:

 

		a.	Each
Agreement shall state the purchase price (per share), if any, of the Shares covered by each Stock Grant, which purchase price
shall be determined by the Administrator but shall not be less than the minimum consideration required by the Delaware General
Corporation Law on the date of the grant of the Stock Grant;

 

		b.	Each
Agreement shall state the number of Shares to which the Stock Grant pertains; and

 

		c.	Each
Agreement shall include the terms of any right of the Company to restrict or reacquire the Shares subject to the Stock Grant,
including the time and events upon which such reacquisition rights shall accrue including, but not limited to, the attainment
of any Performance Goals, and the purchase price therefor, if any.

 

		8.	TERMS
AND CONDITIONS OF OTHER STOCK-BASED AWARDS.

 

The Board
shall have the right to grant other Stock-Based Awards based upon the Common Stock having such terms and conditions as the Board
may determine, including, without limitation, the grant of Shares based upon certain conditions including, but not limited to,
the Performance Goals, the grant of securities convertible into Shares and the grant of Stock Appreciation Rights, phantom stock
awards or stock units. The principal terms of each Stock-Based Award shall be set forth in an Agreement, duly executed by the Company
and, to the extent required by law or requested by the Company, by the Participant. The Agreement shall be in a form approved by
the Administrator and shall contain terms and conditions which the Administrator determines to be appropriate and in the best interest
of the Company. Notwithstanding the foregoing, each Stock Appreciation Right shall (i) have a purchase price which shall not
be less than the Fair Market Value per Share of Common Stock and (ii) terminate not more than seven years from the date of
the grant or at such earlier time as the Agreement therefor may provide.

 

    	 

    	 

    

 

The
Company intends that the Plan and any Stock-Based Awards granted hereunder be exempt from the application of Section 409A
of the Code or meet the requirements of paragraphs (2), (3) and (4) of subsection (a) of Section 409A of the Code
(and any successor provisions of the Code) and the regulations and other guidance issued thereunder (the “Requirements”),
to the extent applicable, and be operated in accordance with such Requirements so that any compensation deferred under any Stock-Based
Award (and applicable investment earnings) shall not be included in income under Section 409A of the Code. Any ambiguities
in the Plan shall be construed to effect the intent as described in this Paragraph 8.

 

		9.	TERMS
AND CONDITIONS OF CASH AWARDS.

 

The Administrator
is authorized, subject to limitations under applicable law, to grant to any Participant a Cash Award, including as a short-term
incentive bonus award, whether awarded separately or as a supplement to any Stock Right. The Administrator shall determine the
terms and conditions of such Cash Awards. The Administrator acting in its absolute discretion may make Cash Awards subject to one
or more Performance Goals that the Administrator deems appropriate for Participants generally or for a Participant in particular,
and shall establish the Performance Cycle for satisfying the same. If the Cash Award is a short-term incentive bonus that is intended
to qualify as “performance-based compensation” under Section 162(m) of the Code, the right to receive such Cash Award
shall be conditional upon the achievement of objective Performance Goals that have been established by the Administrator in writing
not later than the earlier of (i) 90 days after the beginning of a Performance Cycle and (ii) the date by which no more
than 25% of a Performance Cycle has elapsed.

 

The
Administrator shall certify in writing the extent, if any, to which the Performance Goals for a Performance Cycle of a short-term
incentive bonus that is intended to qualify as “performance-based compensation” under Section 162(m) of the Code have
been met and shall determine the Cash Award payable to a Participant based on the extent to which he or she met his or her Performance
Goals. If the Administrator certifies that a Cash Award is payable to a Participant for any Performance Cycle, such Cash Award
shall be paid as soon as practical after such certification has been made, but in no event later than 21⁄2 months after
the end of the calendar year in which the Performance Cycle ends. However, to the extent permitted by applicable law, no Participant
shall have a nonforfeitable right to the payment of a bonus for any Performance Cycle if his or her employment with the Company
has terminated for any reason whatsoever (other than death, Disability or retirement) before the date the bonus actually is paid.
It is intended that a Cash Award be exempt from the application of Section 409A of the Code as a “short-term deferral.”

 

		10.	EXERCISE
OF OPTIONS AND ISSUE OF SHARES.

 

An Option
(or any part or installment thereof) shall be exercised by giving written notice to the Company or its designee, together with
provision for payment of the full purchase price in accordance with this Paragraph for the Shares as to which the Option is being
exercised, and upon compliance with any other condition(s) set forth in the Agreement. Such notice shall be signed by the person
exercising the Option, shall state the number of Shares with respect to which the Option is being exercised and shall contain any
representation required by the Plan or the Agreement. Payment of the purchase price for the Shares as to which such Option is being
exercised shall be made (a) in United States dollars in cash or by check, or (b) at the discretion of the Administrator,
through delivery of shares of Common Stock having a Fair Market Value equal as of the date of the exercise to the cash exercise
price of the Option, or (c) at the discretion of the Administrator, by having the Company retain from the shares otherwise
issuable upon exercise of the Option, a number of shares having a Fair Market Value equal as of the date of exercise to the exercise
price of the Option, or (d) at the discretion of the Administrator, by delivery of the grantee’s personal recourse note,
bearing interest payable not less than annually at no less than 100% of the applicable Federal rate, as defined in Section 1274(d)
of the Code, with or without the pledge of such Shares as collateral, or (e) at the discretion of the Administrator, in accordance
with a cashless exercise program established with a securities brokerage firm, and approved by the Administrator, or (f) at
the discretion of the Administrator, by any combination of (a), (b), (c), (d) and (e) above, or (g) at the discretion
of the Administrator, payment of such other lawful consideration as the Board may determine. Notwithstanding the foregoing, the
Administrator shall accept only such payment on exercise of an ISO as is permitted by Section 422 of the Code.

 

The Company
shall then reasonably promptly deliver the Shares as to which such Option was exercised to the Participant (or to the Participant’s
Survivors, as the case may be). In determining what constitutes “reasonably promptly,” it is expressly understood that
the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including,
without limitation, state securities or “blue sky” laws) which requires the Company to take any action with respect
to the Shares prior to their issuance. The Shares shall, upon delivery, be fully paid, non-assessable Shares.

 

The Administrator shall have the
right to accelerate the date of exercise of any installment of any Option; provided that the Administrator shall not accelerate
the exercise date of any installment of any Option granted to an Employee as an ISO (and not previously converted into a Non-Qualified
Option pursuant to Paragraph 28) without the prior approval of the Employee if such acceleration would violate the annual
vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6.B.d.

 

The Administrator
may, in its discretion, amend any term or condition of an outstanding Option provided (i) such term or condition as amended
is permitted by the Plan, (ii) any such amendment shall be made only with the consent of the Participant to whom the Option
was granted, or in the event of the death of the Participant, the Participant’s Survivors, if the amendment is adverse to
the Participant, and (iii) any such amendment of any Option shall be made only after the Administrator determines whether
such amendment would constitute a “modification” of any Option which is an ISO (as that term is defined in Section
424(h) of the Code) or would cause any adverse tax consequences for the holder of such Option including, but not limited to, pursuant
to Section 409A of the Code.

 

    	 

    	 

    

 

		11.	ACCEPTANCE
OF STOCK GRANTS AND STOCK-BASED AWARDS AND ISSUE OF SHARES.

 

A Stock Grant
or Stock-Based Award (or any part or installment thereof) shall be accepted by executing the applicable Agreement and delivering
it to the Company or its designee, together with provision for payment of the full purchase price, if any, in accordance with this
Paragraph for the Shares as to which such Stock Grant or Stock-Based Award is being accepted, and upon compliance with any other
conditions set forth in the applicable Agreement. Payment of the purchase price for the Shares as to which such Stock Grant or
Stock-Based Award is being accepted shall be made (a) in United States dollars in cash or by check, or (b) at the discretion
of the Administrator, through delivery of shares of Common Stock having a Fair Market Value equal as of the date of acceptance
of the Stock Grant or Stock-Based Award to the purchase price of the Stock Grant or Stock-Based Award, or (c) at the discretion
of the Administrator, by delivery of the grantee’s personal note, for full or partial recourse as determined by the Administrator,
bearing interest payable not less than annually at no less than 100% of the applicable Federal rate, as defined in Section 1274(d)
of the Code, or (d) at the discretion of the Administrator, by any combination of (a), (b) and (c) above.

 

The Company
shall then, if required pursuant to the applicable Agreement, reasonably promptly deliver the Shares as to which such Stock Grant
or Stock-Based Award was accepted to the Participant (or to the Participant’s Survivors, as the case may be), subject to
any escrow provision set forth in the applicable Agreement. In determining what constitutes “reasonably promptly,”
it is expressly understood that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any
law or regulation (including, without limitation, state securities or “blue sky” laws) which requires the Company to
take any action with respect to the Shares prior to their issuance.

 

The Administrator
may, in its discretion, amend any term or condition of an outstanding Stock Grant, Stock-Based Award or applicable Agreement provided
(i) such term or condition as amended is permitted by the Plan, (ii) any such amendment shall be made only with the consent
of the Participant to whom the Stock Grant or Stock-Based Award was made, if the amendment is adverse to the Participant, and (iii) any
such amendment shall only be made after the Administrator determines whether such amendment would cause any adverse tax consequences
to the Participant including, but not limited to, pursuant to Section 409A of the Code.

 

		12.	RIGHTS
AS A SHAREHOLDER.

 

No Participant
to whom a Stock Right has been granted shall have rights as a shareholder with respect to any Shares covered by such Stock Right,
except after due exercise of the Option or acceptance of the Stock Grant or as set forth in any Agreement and tender of the full
purchase price, if any, for the Shares being purchased pursuant to such exercise or acceptance and registration of the Shares in
the Company’s share register in the name of the Participant.

 

		13.	ASSIGNABILITY
AND TRANSFERABILITY.

 

By its terms,
a Cash Award or Stock Right granted to a Participant shall not be transferable by the Participant other than by will or by the
laws of descent and distribution. The designation of a beneficiary of a Cash Award or Stock Right by a Participant, with the prior
approval of the Administrator and in such form as the Administrator shall prescribe, shall not be deemed a transfer prohibited
by this Paragraph. Except as provided above, a Cash Award or Stock Right shall only be exercisable or may only be accepted, during
the Participant’s lifetime, only by such Participant (or by his or her legal representative) and shall not be assigned, pledged
or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar
process. Any attempted transfer, assignment, pledge, hypothecation or other disposition of any Cash Award or Stock Right or of
any rights granted thereunder contrary to the provisions of this Plan, or the levy of any attachment or similar process upon a
Cash Award or Stock Right, shall be null and void.

 

		14.	EFFECT
ON OPTIONS OF TERMINATION OF SERVICE OTHER THAN “FOR CAUSE” OR DEATH OR DISABILITY.

 

Except as
otherwise provided in a Participant’s Option Agreement, in the event of a termination of service (whether as an employee,
director or consultant) with the Company or an Affiliate before the Participant has exercised an Option, the following rules apply:

 

	 	a.	A Participant who ceases to be an employee, director or consultant of the Company or of an Affiliate (for any reason other than termination “for cause”, Disability, or death for which events there are special rules in Paragraphs 15, 16, and 17, respectively), may exercise any Option granted to him or her to the extent that the Option is exercisable on the date of such termination of service, but only within such term as the Administrator has designated in a Participant’s Option Agreement.

 

	 	b.	Except as provided in Subparagraph (c) below, or Paragraph 16 or 17, in no event may an Option intended to be an ISO, be exercised later than three months after the Participant’s termination of employment.

 

	 	c.	The provisions of this Paragraph, and not the provisions of Paragraph 16 or 17, shall apply to a Participant who subsequently becomes Disabled or dies after the termination of employment, director status or consultancy, provided, however, in the case of a Participant’s Disability or death within three months after the termination of employment, director status or consultancy, the Participant or the Participant’s Survivors may exercise the Option within one year after the date of the Participant’s termination of service, but in no event after the date of expiration of the term of the Option.

 

	 	d.	Notwithstanding anything herein to the contrary, if subsequent to a Participant’s termination of employment, termination of director status or termination of consultancy, but prior to the exercise of an Option, the Board of Directors determines that, either prior or subsequent to the Participant’s termination, the Participant engaged in conduct which would constitute “cause”, then such Participant shall forthwith cease to have any right to exercise any Option.

 

    	 

    	 

    

 

		e.	A
Participant to whom an Option has been granted under the Plan who is absent from work with the Company or with an Affiliate because
of temporary disability (any disability other than a permanent and total Disability as defined in Paragraph 1 hereof), or
who is on leave of absence for any purpose, shall not, during the period of any such absence, be deemed, by virtue of such absence
alone, to have terminated such Participant’s employment, director status or consultancy with the Company or with an Affiliate,
except as the Administrator may otherwise expressly provide; provided however that for ISOs any leave of absence granted by the
Administrator of greater than ninety days unless pursuant to a contract or statute that guarantees the right to reemployment shall
cause such ISO to become a Non-Qualified Option.

 

		f.	Except
as required by law or as set forth in a Participant’s Agreement, Options granted under the Plan shall not be affected by
any change of a Participant’s status within or among the Company and any Affiliates, so long as the Participant continues
to be an employee, director or consultant of the Company or any Affiliate.

 

		15.	EFFECT
ON OPTIONS OF TERMINATION OF SERVICE “FOR CAUSE”.

 

Except as
otherwise provided in a Participant’s Option Agreement, the following rules apply if the Participant’s service (whether
as an employee, director or consultant) with the Company or an Affiliate is terminated “for cause” prior to the time
that all his or her outstanding Options have been exercised:

 

		a.	All
outstanding and unexercised Options as of the time the Participant is notified his or her service is terminated “for cause”
will immediately be forfeited.

 

		b.	For
purposes of this Plan, “cause” shall include (and is not limited to) dishonesty with respect to the Company or any
Affiliate, insubordination, substantial malfeasance or non-feasance of duty, unauthorized disclosure of confidential information,
breach by the Participant of any provision of any employment, consulting, advisory, nondisclosure, non-competition or similar
agreement between the Participant and the Company, and conduct substantially prejudicial to the business of the Company or any
Affiliate. The determination of the Administrator as to the existence of “cause” will be conclusive on the Participant
and the Company.

 

		c.	“Cause”
is not limited to events which have occurred prior to a Participant’s termination of service, nor is it necessary that the
Administrator’s finding of “cause” occur prior to termination. If the Administrator determines, subsequent to
a Participant’s termination of service but prior to the exercise of an Option, that either prior or subsequent to the Participant’s
termination the Participant engaged       in conduct
which would constitute “cause”, then the right to exercise any Option is forfeited.

 

		d.	Any
definition in an agreement between the Participant and the Company or an Affiliate, which contains a conflicting definition of
“cause” for termination and which is in effect at the time of such termination, shall supersede the definition in
this Plan with respect to that Participant.

 

		16.	EFFECT
ON OPTIONS OF TERMINATION OF SERVICE FOR DISABILITY.

 

Except as
otherwise provided in a Participant’s Option Agreement, a Participant who ceases to be an employee, director or consultant
of the Company or of an Affiliate by reason of Disability may exercise any Option granted to such Participant:

 

		a.	To
the extent that the Option has become exercisable but has not been exercised on the date of Disability; and

 

		b.	In
the event rights to exercise the Option accrue periodically over time, to the extent of a pro rata portion through the date of
Disability of any additional vesting rights that would have accrued on the next vesting date had the Participant not become Disabled.
The proration shall be based upon the number of days accrued in the current vesting period prior to the date of Disability.

 

A Disabled
Participant may exercise such rights only within the period ending one year after the date of the Participant’s termination
of employment, directorship or consultancy, as the case may be, notwithstanding that the Participant might have been able to exercise
the Option as to some or all of the Shares on a later date if the Participant had not become Disabled and had continued to be an
employee, director or consultant or, if earlier, within the originally prescribed term of the Option.

 

The Administrator
shall make the determination both of whether Disability has occurred and the date of its occurrence (unless a procedure for such
determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be
used for such determination). If requested, the Participant shall be examined by a physician selected or approved by the Administrator,
the cost of which examination shall be paid for by the Company.

  

		17.	EFFECT
ON OPTIONS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

 

Except as
otherwise provided in a Participant’s Option Agreement, in the event of the death of a Participant while the Participant
is an employee, director or consultant of the Company or of an Affiliate, such Option may be exercised by the Participant’s
Survivors:

 

		a.	To
the extent that the Option has become exercisable but has not been exercised on the date of death; and

 

		b.	In
the event rights to exercise the Option accrue periodically over time, to the extent of a pro rata portion through the date of
death of any additional vesting rights that would have accrued on the next vesting date had the Participant not died. The proration
shall be based upon the number of days accrued in the current vesting period prior to the Participant’s date of death.

 

    	 

    	 

    

 

If the Participant’s
Survivors wish to exercise the Option, they must take all necessary steps to exercise the Option within one year after the date
of death of such Participant, notwithstanding that the decedent might have been able to exercise the Option as to some or all of
the Shares on a later date if he or she had not died and had continued to be an employee, director or consultant or, if earlier,
within the originally prescribed term of the Option.

 

		18.	EFFECT
OF TERMINATION OF SERVICE ON UNACCEPTED STOCK GRANTS AND STOCK-BASED AWARDS.

 

 In the event of a termination of
service (whether as an employee, director or consultant) with the Company or an Affiliate for any reason before the Participant
has accepted a Stock Grant or Stock-Based Award, such offer shall terminate.

 

 For purposes
of this Paragraph 18 and Paragraph 19 below, a Participant to whom a Stock Grant or Stock-Based Award has been offered
and accepted under the Plan who is absent from work with the Company or with an Affiliate because of temporary disability (any
disability other than a permanent and total Disability as defined in Paragraph 1 hereof), or who is on leave of absence for
any purpose, shall not, during the period of any such absence, be deemed, by virtue of such absence alone, to have terminated such
Participant’s employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator
may otherwise expressly provide.

 

In addition,
for purposes of this Paragraph 18 and Paragraph 19 below, any change of employment or other service within or among the
Company and any Affiliates shall not be treated as a termination of employment, director status or consultancy so long as the Participant
continues to be an employee, director or consultant of the Company or any Affiliate.

 

		19.	EFFECT
ON STOCK GRANTS OF TERMINATION OF SERVICE OTHER THAN “FOR CAUSE” OR DEATH OR DISABILITY.

 

Except as
otherwise provided in a Participant’s Agreement, in the event of a termination of service (whether as an employee, director
or consultant), other than termination “for cause,” Disability, or death for which events there are special rules in
Paragraphs 20, 21, and 22, respectively, before all Company rights of repurchase shall have lapsed, then the Company shall have
the right to repurchase that number of Shares subject to a Stock Grant as to which the Company’s repurchase rights have not
lapsed.

 

		20.	EFFECT
ON STOCK GRANTS OF TERMINATION OF SERVICE “FOR CAUSE”.

 

Except as
otherwise provided in a Participant’s Agreement, the following rules apply if the Participant’s service (whether as
an employee, director or consultant) with the Company or an Affiliate is terminated “for cause”:

 

		a.	All
Shares subject to any Stock Grant shall be immediately subject to repurchase by the Company at the purchase price, if any, thereof.

 

		b.	For
purposes of this Plan, “cause” shall include (and is not limited to) dishonesty with respect to the employer, insubordination,
substantial malfeasance or non-feasance of duty, unauthorized disclosure of confidential information, breach by the Participant
of any provision of any employment, consulting, advisory, nondisclosure, non-competition or similar agreement between the Participant
and the Company, and conduct substantially prejudicial to the business of the Company or any Affiliate. The determination of the
Administrator as to the existence of “cause” will be conclusive on the Participant and the Company.

 

		c.	“Cause”
is not limited to events which have occurred prior to a Participant’s termination of service, nor is it necessary that the
Administrator’s finding of “cause” occur prior to termination. If the Administrator determines, subsequent to
a Participant’s termination of service, that either prior or subsequent to the Participant’s termination the Participant
engaged in conduct which would constitute “cause,” then the Company’s right to repurchase all of such Participant’s
Shares shall apply.

 

		d.	Any
definition in an agreement between the Participant and the Company or an Affiliate, which contains a conflicting definition of
“cause” for termination and which is in effect at the time of such termination, shall supersede the definition in
this Plan with respect to that Participant.

 

		21.	EFFECT
ON STOCK GRANTS OF TERMINATION OF SERVICE FOR DISABILITY.

 

Except as
otherwise provided in a Participant’s Agreement, the following rules apply if a Participant ceases to be an employee, director
or consultant of the Company or of an Affiliate by reason of Disability: to the extent the Company’s rights of repurchase
have not lapsed on the date of Disability, they shall be exercisable; provided, however, that in the event such rights of repurchase
lapse periodically over time, such rights shall lapse to the extent of a pro rata portion of the Shares subject to such Stock Grant
through the date of Disability as would have lapsed had the Participant not become Disabled. The proration shall be based upon
the number of days accrued prior to the date of Disability.

 

The Administrator
shall make the determination both of whether Disability has occurred and the date of its occurrence (unless a procedure for such
determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be
used for such determination). If requested, the Participant shall be examined by a physician selected or approved by the Administrator,
the cost of which examination shall be paid for by the Company.

 

		22.	EFFECT
ON STOCK GRANTS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

 

Except as
otherwise provided in a Participant’s Agreement, the following rules apply in the event of the death of a Participant while
the Participant is an employee, director or consultant of the Company or of an Affiliate: to the extent the Company’s rights
of repurchase have not lapsed on the date of death, they shall be exercisable; provided, however, that in the event such rights
of repurchase lapse periodically over time, such rights shall lapse to the extent of a pro rata portion of the Shares subject to
such Stock Grant through the date of death as would have lapsed had the Participant not died. The proration shall be based upon
the number of days accrued prior to the Participant’s death.

 

    	 

    	 

    

 

		23.	PURCHASE
FOR INVESTMENT.

 

Unless the
offering and sale of the Shares to be issued upon the particular exercise or acceptance of a Stock Right shall have been effectively
registered under the Securities Act of 1933, as now in force or hereafter amended (the “1933 Act”), the Company shall
be under no obligation to issue the Shares covered by such exercise unless and until the following conditions have been fulfilled:

 

		a.	The
person(s) who exercise(s) or accept(s) such Stock Right shall warrant to the Company, prior to the receipt of such Shares, that
such person(s) are acquiring such Shares for their own respective accounts, for investment, and not with a view to, or for sale
in connection with, the distribution of any such Shares, in which event the person(s) acquiring such Shares shall be bound by
the provisions of the following legend which shall be endorsed upon the certificate(s) evidencing their Shares issued pursuant
to such exercise or such grant:

 

			“The
shares represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any
person, including a pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective
under the Securities Act of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to
it that an exemption from registration under such Act is then available, and (2) there shall have been compliance with all
applicable state securities laws.”

 

		b.	At
the discretion of the Administrator, the Company shall have received an opinion of its counsel that the Shares may be issued upon
such particular exercise or acceptance in compliance with the 1933 Act without registration thereunder.

 

		24.	DISSOLUTION
OR LIQUIDATION OF THE COMPANY.

 

Upon the dissolution
or liquidation of the Company, all Options granted under this Plan which as of such date shall not have been exercised and all
Stock Grants and Stock-Based Awards which have not been accepted will terminate and become null and void; provided, however, that
if the rights of a Participant or a Participant’s Survivors have not otherwise terminated and expired, the Participant or
the Participant’s Survivors will have the right immediately prior to such dissolution or liquidation to exercise or accept
any Stock Right to the extent that the Stock Right is exercisable or subject to acceptance as of the date immediately prior to
such dissolution or liquidation. Upon the dissolution or liquidation of the Company, any outstanding Cash Awards or Stock-Based
Awards shall immediately terminate unless otherwise determined by the Administrator or specifically provided in the applicable
Agreement.

 

		25.	ADJUSTMENTS.

 

Upon the occurrence
of any of the following events, a Participant’s rights with respect to any Stock Right granted to him or her hereunder shall
be adjusted as hereinafter provided, unless otherwise specifically provided in a Participant’s Agreement:

 

A.  Stock
Dividends and Stock Splits. If (i) the shares of Common Stock shall be subdivided or combined into a greater or smaller
number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock,
or (ii) additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed
with respect to such shares of Common Stock, the number of shares of Common Stock deliverable upon the exercise of an Option or
acceptance of a Stock Grant shall be appropriately increased or decreased proportionately, and appropriate adjustments shall be
made including, in the purchase price per share, to reflect such events. The number of Shares subject to the limitations in Paragraphs
3 and 4(c) shall also be proportionately adjusted upon the occurrence of such events.

 

B.  Corporate
Transactions. If the Company is to be consolidated with or acquired by another entity in a merger, sale of all or substantially
all of the Company’s assets other than a transaction to merely change the state of incorporation (a “Corporate Transaction”),
the Administrator or the board of directors of any entity assuming the obligations of the Company hereunder (the “Successor
Board”), shall, as to outstanding Options, either (i) make appropriate provision for the continuation of such Options
by substituting on an equitable basis for the Shares then subject to such Options either the consideration payable with respect
to the outstanding shares of Common Stock in connection with the Corporate Transaction or securities of any successor or acquiring
entity; or (ii) upon written notice to the Participants, provide that all Options must be exercised (either to the extent
then exercisable or, at the discretion of the Administrator, or, upon a change of control of the Company, all Options being made
fully exercisable for purposes of this Subparagraph), within a specified number of days of the date of such notice, at the end
of which period the Options shall terminate; or (iii) terminate all Options in exchange for a cash payment equal to the excess
of the Fair Market Value of the Shares subject to such Options (either to the extent then exercisable or, at the discretion of
the Administrator, all Options being made fully exercisable for purposes of this Subparagraph) over the exercise price thereof.

 

With respect
to outstanding Stock Grants, the Administrator or the Successor Board, shall either (i) make appropriate provisions for the
continuation of such Stock Grants by substituting on an equitable basis for the Shares then subject to such Stock Grants either
the consideration payable with respect to the outstanding Shares of Common Stock in connection with the Corporate Transaction or
securities of any successor or acquiring entity; or (ii) upon written notice to the Participants, provide that all Stock Grants
must be accepted (to the extent then subject to acceptance) within a specified number of days of the date of such notice, at the
end of which period the offer of the Stock Grants shall terminate; or (iii) terminate all Stock Grants in exchange for a cash
payment equal to the excess of the Fair Market Value of the Shares subject to such Stock Grants over the purchase price thereof,
if any. In addition, in the event of a Corporate Transaction, the Administrator may waive any or all Company repurchase rights
with respect to outstanding Stock Grants.

 

    	 

    	 

    

 

C.  Recapitalization
or Reorganization. In the event of a recapitalization or reorganization of the Company other than a Corporate Transaction pursuant
to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock,
a Participant upon exercising an Option or accepting a Stock Grant after the recapitalization or reorganization shall be entitled
to receive for the purchase price paid upon such exercise or acceptance the number of replacement securities which would have been
received if such Option had been exercised or Stock Grant accepted prior to such recapitalization or reorganization.

 

D.  Adjustments
to Cash Awards and Stock-Based Awards. Upon the happening of any of the events described in Subparagraphs A, B or C above,
any outstanding Cash Award and Stock-Based Award shall be appropriately adjusted to reflect the events described in such Subparagraphs.
The Administrator or the Successor Board shall determine the specific adjustments to be made under this Paragraph 25 and,
subject to Paragraph 4, its determination shall be conclusive.

 

E.  Modification
of Options. Notwithstanding the foregoing, any adjustments made pursuant to Subparagraph A, B or C above with respect to Options
shall be made only after the Administrator determines whether such adjustments would constitute a “modification” of
any ISO (as that term is defined in Section 424(h) of the Code) or would cause any adverse tax consequences for the holders of
such Options, including, but not limited to, pursuant to Section 409A of the Code. If the Administrator determines that such
adjustments made with respect to Options would constitute a modification or other adverse tax consequence, it may refrain from
making such adjustments, unless the holder of an Option specifically agrees in writing that such adjustment be made and such writing
indicates that the holder has full knowledge of the consequences of such “modification” on his or her income tax treatment
with respect to the Option. This paragraph shall not apply to the acceleration of the vesting of any ISO that would cause any portion
of the ISO to violate the annual vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6B(d).

 

		26.	ISSUANCES
OF SECURITIES.

 

Except as
expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of
stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares
subject to Stock Rights. Except as expressly provided herein, no adjustments shall be made for dividends paid in cash or in property
(including without limitation, securities) of the Company prior to any issuance of Shares pursuant to a Stock Right.

 

		27.	FRACTIONAL
SHARES.

 

No
fractional shares shall be issued under the Plan and the person exercising a Stock Right shall receive from the Company cash in
lieu of such fractional shares equal to the Fair Market Value thereof.

 

		28.	CONVERSION
OF ISOs INTO NON-QUALIFIED OPTIONS; TERMINATION OF ISOs.

 

The
Administrator, at the written request of any Participant, may in its discretion take such actions as may be necessary to convert
such Participant’s ISOs (or any portions thereof) that have not been exercised on the date of conversion into Non-Qualified
Options at any time prior to the expiration of such ISOs, regardless of whether the Participant is an employee of the Company
or an Affiliate at the time of such conversion. At the time of such conversion, the Administrator (with the consent of the Participant)
may impose such conditions on the exercise of the resulting Non-Qualified Options as the Administrator in its discretion may determine,
provided that such conditions shall not be inconsistent with this Plan. Nothing in the Plan shall be deemed to give any Participant
the right to have such Participant’s ISOs converted into Non-Qualified Options, and no such conversion shall occur until
and unless the Administrator takes appropriate action. The Administrator, with the consent of the Participant, may also terminate
any portion of any ISO that has not been exercised at the time of such conversion.

 

		29.	WITHHOLDING.

 

In the event
that any federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act (“F.I.C.A.”)
withholdings or other amounts are required by applicable law or governmental regulation to be withheld from the Participant’s
salary, wages or other remuneration in connection with the exercise or acceptance of a Cash Award or Stock Right or in connection
with a Disqualifying Disposition (as defined in Paragraph 30) or upon the lapsing of any right of repurchase, the Company
may withhold from the Participant’s compensation, if any, or may require that the Participant advance in cash to the Company,
or to any Affiliate of the Company which employs or employed the Participant, the statutory minimum amount of such withholdings
unless a different withholding arrangement, including the use of shares of the Company’s Common Stock or a promissory note,
is authorized by the Administrator (and permitted by law). For purposes hereof, the fair market value of the shares withheld for
purposes of payroll withholding shall be determined in the manner provided in Paragraph 1 above, as of the most recent practicable
date prior to the date of exercise. If the fair market value of the shares withheld is less than the amount of payroll withholdings
required, the Participant may be required to advance the difference in cash to the Company or the Affiliate employer. The Administrator
in its discretion may condition the exercise of an Option for less than the then Fair Market Value on the Participant’s payment
of such additional withholding.

 

    	 

    	 

    

 

		30.	NOTICE
TO COMPANY OF DISQUALIFYING DISPOSITION.

 

Each Employee
who receives an ISO must agree to notify the Company in writing immediately after the Employee makes a Disqualifying Disposition
of any shares acquired pursuant to the exercise of an ISO. A Disqualifying Disposition is defined in Section 424(c) of the Code
and includes any disposition (including any sale or gift) of such shares before the later of (a) two years after the date
the Employee was granted the ISO, or (b) one year after the date the Employee acquired Shares by exercising the ISO, except
as otherwise provided in Section 424(c) of the Code. If the Employee has died before such stock is sold, these holding period requirements
do not apply and no Disqualifying Disposition can occur thereafter.

 

		31.	TERMINATION
OF THE PLAN.

 

The Plan will
terminate on February 13, 2018, the date which is ten years from the earlier of the date of its initial adoption by
the Board of Directors and the date of its approval by the shareholders. The Plan may be terminated at an earlier date by vote
of the shareholders or the Board of Directors of the Company; provided, however, that any such earlier termination shall not affect
any Agreements executed prior to the effective date of such termination.

 

		32.	AMENDMENT
OF THE PLAN AND AGREEMENTS.

 

The Plan may
be amended by the shareholders of the Company. The Plan may also be amended by the Administrator, including, without limitation,
to the extent necessary to qualify any or all outstanding Stock Rights granted under the Plan or Stock Rights to be granted under
the Plan for favorable federal income tax treatment (including deferral of taxation upon exercise) as may be afforded incentive
stock options under Section 422 of the Code, and to the extent necessary to qualify the shares issuable upon exercise or acceptance
of any outstanding Stock Rights granted, or Stock Rights to be granted, under the Plan for listing on any national securities exchange
or quotation in any national automated quotation system of securities dealers. Any amendment approved by the Administrator which
the Administrator determines is of a scope that requires shareholder approval shall be subject to obtaining such shareholder approval.
Any modification or amendment of the Plan shall not, without the consent of a Participant, adversely affect his or her rights under
a Cash Award or Stock Right previously granted to him or her. With the consent of the Participant affected, the Administrator may
amend outstanding Agreements in a manner which may be adverse to the Participant but which is not inconsistent with the Plan. In
the discretion of the Administrator, outstanding Agreements may be amended by the Administrator in a manner which is not adverse
to the Participant. Notwithstanding the foregoing, the Administrator shall not allow either (a) the cancellation of outstanding
Options or Stock Appreciation Rights and the grant in substitution therefore of new Stock Rights having a lower exercise price
or (b) the amendment of outstanding Options or Stock Appreciation Rights to reduce the exercise price thereof without shareholder
approval.

 

		33.	EMPLOYMENT
OR OTHER RELATIONSHIP.

 

Nothing in
this Plan or any Agreement shall be deemed to prevent the Company or an Affiliate from terminating the employment, consultancy
or director status of a Participant, nor to prevent a Participant from terminating his or her own employment, consultancy or director
status or to give any Participant a right to be retained in employment or other service by the Company or any Affiliate for any
period of time.

 

		34.	GOVERNING
LAW.

 

This Plan
shall be construed and enforced in accordance with the law of the State of Delaware.EXHIBIT 10.1

 

ACURA PHARMACEUTICALS, INC.

2014 RESTRICTED STOCK UNIT AWARD PLAN1

 

		1.	General Description.

 

The Plan provides for
grants of restricted stock units to employees, consultants and Non-Employee Directors of the Company and its Subsidiaries.

 

The purpose of the
Plan is to attract, motivate and retain experienced and knowledgeable employees and consultants by offering additional stock based
compensation and incentives to defer and potentially enhance their compensation and to encourage stock ownership in the Company,
and to attract and retain qualified directors.

 

This Plan is intended
to comply with Section 409A of the Internal Revenue Code of 1986, as amended, in order to avoid compensation deferred under the
Plan which is subject to Code Section 409A from being included in the gross income of Participants under Code Section 409A and
the Plan shall be interpreted consistent with such intent.

 

		2.	Definitions.

 

The following definitions
shall be applicable throughout the Plan:

 

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

 

“Cash Settled
Restricted Stock Units” is defined in Section 7(d).

 

“Cause”
means, with respect to termination of a Participant's employment, or termination of a Participant’s service as a Non-Employee
Director, or termination of a Participant’s consulting relationship with the Company or a Subsidiary, the occurrence of any
one or more of the following:

 

(a) in the case of
a (A) Non-Employee Director, (B) a non-employee consultant, or (C) an employee where there is no employment, change in control
or similar agreement in effect between the Participant and the Company or a Subsidiary at the time of the grant of the Restricted
Stock Unit award, or where there is such an agreement but the agreement does not define “cause” (or similar words),
the finding by the Board or the Committee, in the exercise of good faith and reasonable judgment, that: (1) except in the case
of a Non-Employee Director, Participant breached his or her employment or service contract or any other agreement (whether verbal
or written) with the Company or a Subsidiary, (2) Participant has been engaged in disloyalty to the Company or a Subsidiary, including,
without limitation, fraud, embezzlement, theft, or proven dishonesty in the course of his or her employment or service with the
Company or a Subsidiary; (3) Participant has been convicted of a felony; (4) Participant has committed gross negligence or willful
misconduct in the course of his or her employment or service with the Company or a Subsidiary, or (5) Participant has disclosed
trade secrets or confidential information of the Company, a Subsidiary or a third party to persons not entitled to receive such
information.

 

(b) in the case of
an employee where there is a written employment, change in control or similar agreement in effect between the Participant and the
Company or a Subsidiary at the time of the grant of the Restricted Stock Unit award that defines “cause” (or similar
words), the termination of an employment arrangement that is or would be deemed to be for “cause” (or similar words)
as defined in such agreement.

 

 

1 Adopted by the Company’s Board
of Directors on February 27, 2014 and by the shareholders of the Company at the 2014 Annual Meeting on May 1, 2014.

 

    	1

    	 

    

 

“Change in Control
- Plan” means in one or a series of related transactions any of the following: (a) the acquisition (other than solely from
the Company) by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) other
than the Company or any Subsidiary of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
Act) of more than sixty-six and 2/3 percent (66.66%) of the combined voting power of the then outstanding voting securities of
the Company entitled to vote generally in the election of directors (the “Voting Securities”); (b) a reorganization,
merger, consolidation, share exchange, recapitalization, business combination or similar combination involving the Company or its
capital stock (a “Business Combination”), other than a Business Combination in which more than thirty-three and 1/3
percent (33.33%) of the combined voting power of the outstanding voting securities of the surviving or resulting entity immediately
following the Business Combination is held by the persons who, immediately prior to the Business Combination, were the holders
of the Voting Securities; (c) a sale or other transfer (other than license) of all or substantially all of the Company’s
assets (measured by the value or earning power of the assets), including, without limitation, the sale by the Company of its rights
under license agreements or similar agreements relating to its technology (including the sale of royalty payment amounts payable
to the Company or its shareholders under such agreements); (d) the license or similar agreement by the Company to a third party
or third parties, in one or more transactions, of all rights in and to the Company’s technology and, as a result of such
transactions, all or substantially all of the Company’s activities consist of monitoring such arrangements and collecting
fees and payments due thereunder; or (e) a complete liquidation or dissolution of the Company.

 

“Change in Control
– Section 409A” shall mean a Change in Control – Plan, except to the extent that (and only to the extent that)
such Change in Control – Plan does not qualify as a change (a) in the ownership or effective control of the Company, or (b)
in the ownership of a substantial portion of the assets of the Company, under Section 409A of the Code.

 

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

 

“Committee”
shall mean the Compensation Committee, if any, appointed by the Board under Section 4 hereof.

 

“Common Stock”
or “Stock” means shares of common stock, par value $.01 per share, of the Company, including any rights attendant thereto
upon issuance of the shares, together with any restrictions, limitations or conditions of and to such rights and such other stock
or other securities or property into which the Stock (or such rights) may be converted or for which it is exchanged or substituted
(and any credits thereon), pursuant to Section 10.

 

“Company”
means Acura Pharmaceuticals, Inc. and its successors.

 

“Disability”
means

 

(a) in the case of
a (A) Non-Employee-Director or (B) an employee where there is no employment, change in control or similar agreement in effect between
the Participant and the Company or a Subsidiary at the time of the grant of the Restricted Stock Unit award, or where there is
such an agreement but the agreement does not define “disability” (or similar words), then “Disability”
means the Participant: (1) is unable to engage in any substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than
twelve (12) months; (2) is, by reason of any medically determinable physical or mental impairment which can be expected to result
in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits
for a period of not less than three (3) months under an accident and health plan covering employees and/or directors of the Company
or a Subsidiary; (3) is determined to be totally disabled by the Social Security Administration; or (4) any other permitted definition
of disability under Section 409A of the Code and the regulations promulgated thereunder, and

 

(b) in the case where
there is a written employment, change in control or similar agreement in effect between the Participant and the Company or a Subsidiary
at the time of the grant of the Restricted Stock Unit award that defines “disability” (or similar words), the termination
of an employment arrangement that is or would be deemed to be for “disability” (or similar words) as defined in such
agreement.

 

“Effective Date”
shall be the date this Plan is approved by the shareholders of the Company.

 

    	 

    	 

    

 

“Election Form”
is defined in Section 7(d).

 

“Eligible Participant”
means a Non-Employee Director serving as a director on the date of grant, a consultant providing services to the Company or a Subsidiary
on the date of grant, or an employee employed by the Company or a Subsidiary on the date of grant.

 

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

 

“Fair Market
Value” means, as of any date, the fair market value of Common Stock determined as follows:

 

		(i)	If the Common Stock is listed on any established stock exchange
(including the Nasdaq Capital Market) its Fair Market Value shall be the closing sales price for such stock as quoted on such exchange
or system for the next preceding day on which sales of Common Stock were reported, as such price is reported in The Wall Street
Journal or such other source as the Board deems reliable;

 

		(ii)	If the Common Stock is quoted by a recognized securities dealer
but selling prices are not reported, its Fair Market Value shall be the mean between the closing bid and asked prices for the Common
Stock on the next preceding day on which sales of Common Stock were reported, as reported in The Wall Street Journal or such other
source as the Board deems reliable; or

 

		(iii)	In the absence of an established market for the Common Stock,
the Fair Market Value thereof shall be determined in good faith by the Board.

 

“Non-Employee
Director” has the definition set forth in Rule 16b-3(b)(3)(i) of the Exchange Act.

 

“Participant”
means each Company or Subsidiary employee, consultant or Non-Employee Director who has been granted a Restricted Stock Unit award.

 

“Plan”
means the Acura Pharmaceuticals, Inc. 2014 Restricted Stock Unit Award Plan, as set forth herein and as it may be amended from
time to time.

 

“Restricted Stock
Unit Award Agreement” means an agreement described in Section 5(a) and Section 9(j).

 

“Restricted Stock
Units” or “RSUs” means an award of Stock Units credited pursuant to Section 5, which Stock Units are subject
to vesting and other restrictions as set forth herein.

 

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

 

“Stock Unit”
means a non-voting unit of measurement that is (a) deemed for bookkeeping purposes to be equivalent to one outstanding share of
Stock solely for purposes of determining benefits under the Plan, (b) credited to a Participant's Stock Unit Account pursuant to
the grant of Restricted Stock Units under Section 5; and (c) payable solely in a share of Stock, on a one-for-one basis, except
in the case of Cash Settled Restricted Stock Units which are settled in cash (as provided herein).

 

“Stock Unit Account”
means the bookkeeping account maintained by the Company for each Eligible Participant that is credited with Stock Units in accordance
with the Plan.

 

“Subsidiary”
means any entity of which a majority of the outstanding voting stock or voting power is beneficially owned directly or indirectly
by the Company.

 

		3.	Effective Date; Duration.

 

The Effective Date
shall be the date on which the Company’s shareholders approve this Plan. RSUs may be distributed under the Plan until April
30, 2024. The Plan shall continue in effect until all matters relating to Stock Units and the administration of the Plan have been
completed and all payments of such compensation have been made.

 

    	 

    	 

    

		4.	Administration.

 

The Company’s
Board of Directors or the Compensation Committee of the Board, as designated by the Board, shall administer the Plan. If appointed
by the Board, the Committee shall be constituted so as to permit the Plan to continue to comply with Rule 16b-3, as currently in
effect or as hereafter modified or amended. The Committee appointed by the Board of Directors shall consist of not less than two
members of the Board of Directors, to administer the Plan on behalf of the Board of Directors, subject to such terms and conditions
as the Board of Directors may prescribe. Once appointed, the Committee shall continue to serve until otherwise directed by the
Board of Directors. From time to time, the Board of Directors may increase the size of the Committee and appoint additional members
thereof, remove members (with or without cause), and appoint new members in substitution therefor, fill vacancies however caused,
or remove all members of the Committee and thereafter directly administer the Plan; provided, however, that at no time shall a
Committee of less than two members administer the Plan. Notwithstanding anything to the contrary contained herein, no member of
the Committee shall serve as such under this Plan unless such person is a “Non-Employee Director” within the meaning
of Rule 16b-3(b)(3)(i) of the Exchange Act.

 

A majority of the entire
Committee shall constitute a quorum, and the action of the majority of the Committee members present at any meeting at which a
quorum is present shall be the action of the Committee. The Committee shall have all of the powers and duties set forth herein,
as well as such additional powers and duties as the Board of Directors may delegate to it; provided, however, that the Board of
Directors expressly retains the right in its sole discretion (i) to elect and to replace the members of the Committee, and (ii)
to terminate or amend this Plan in any manner consistent with applicable law.

 

The Committee shall
have the authority, subject to the provisions of this Plan, to establish, adopt and revise such rules, regulations and forms and
agreements and to interpret the Plan and make all such determinations relating to the Plan as it may deem necessary or advisable.
The Committee shall also have the authority, subject to the provisions of the Plan, to delegate ministerial, day-to-day administrative
details and non-discretionary duties and functions to officers and employees of the Company. The Committee's interpretation of
the Plan or any awards granted pursuant hereto and all decisions and determinations by the Committee with respect to the Plan shall
be final, binding, and conclusive on all parties. Notwithstanding any provisions of this Plan or any Restricted Stock Unit Award
Agreement to the contrary, all discretionary interpretations, decisions or determinations of the Board or the Committee with respect
to the Plan and all RSUs awarded under the Plan shall be made in accordance with the express terms of the Plan and applicable Restricted
Stock Unit Award Agreement in the exercise of good faith and reasonable judgment.

 

Notwithstanding any
contrary provision of this Section 4, the Board shall administer the Plan, and the Committee shall exercise no discretion with
respect to any grants to Non-Employee Directors. In the administration of the Plan with respect to Non-Employee Directors, the
Board shall have all of the authority and discretion otherwise granted to the Committee with respect to the administration of the
Plan.

 

		5.	Restricted Stock Units.

 

(a) Restricted Stock
Units may be granted at any time and from time to time as determined by the Board or the Committee. Each Restricted Stock Units
grant will be evidenced by a Restricted Stock Award Agreement that will specify such other terms and conditions as Board or the
Committee, in its sole discretion, will determine, including all other applicable terms, conditions and restrictions related to
the grant, vesting and the number of Restricted Stock Units not otherwise set forth in this Plan.

 

(b) Vesting Period.
The Board or the Committee shall determine the vesting of a Restricted Stock Unit award granted under Section 5(a), and shall set
forth such vesting in the Restricted Stock Unit Award Agreement.

 

(c) Acceleration of
Vesting. Notwithstanding Section 5(b), unless expressly provided otherwise in the Restricted Stock Unit Award Agreement, each Restricted
Stock Unit award shall become fully and immediately vested and nonforfeitable to the Participant upon the occurrence of any of
the following events:

 

    	 

    	 

    

 

(1) a Participant's service
as an employee of the Company is terminated by the Company without Cause or due to Participant’s death or Participant’s
Disability, or in the case of a Non-Employee Director, Participant’s death or Disability or Participant is not renominated
as a director (other than for “Cause” or refusal to stand for re-election) or is not elected by the Company’s
stockholders, if nominated; or

 

(2) a Change in Control
- Plan.

 

		6.	Dividend and Voting Rights.

 

Unless expressly provided
for in a Participant’s Restricted Stock Unit Award Agreement, a Participant shall have no rights as a stockholder of the
Company, no dividend rights and no voting rights, with respect to the RSUs and any shares of Common Stock underlying or issuable
in respect of such RSUs until such shares of Common Stock are actually issued to and held of record by the Participant. No adjustments
will be made for dividends or other rights of a holder for which the record date is prior to the date of issuance of the stock
certificate for such RSU.

 

		7.	Restrictions, Distributions and Changes to Distributions; Payment of Units.

 

		(a)	Time and Manner of Distribution. Payment of vested Stock
Units in a Participant's Stock Unit Account in accordance with Section 7(b) shall be made on the earlier of (i) a Change in Control
– Section 409A, or (ii) the distribution dates specified in Section 7(b), 7(c) or 7(d) as applicable. In the event of a payment
pursuant to a Change in Control – Section 409A under Section 7(a)(i), such payment shall be made in a lump sum payment as
soon as administratively practicable following consummation of said Change in Control – Section 409A. In the event of a payment
under Section 7(a)(ii), such payment shall be made as specified in Section 7(b), 7(c) and 7(d) as applicable; provided, however,
that in the event of a Change in Control – Section 409A all of Participant’s undistributed Stock Units as of consummation
of said Change in Control – Section 409A shall be paid to Participant in a lump sum as soon as administratively practicable,
regardless of the payment dates set forth in Section 7(b), 7(c) and 7(d), provided that any required payment of par value is made
in the Participant’s tax year in which the Change of Control-Section 409A occurs.

 

		(b)	Standard Payments. Subject to Sections 7(a), 7(c) and
7(d) hereof, unless a Restricted Stock Unit Award Agreement otherwise provides, with respect to any Restricted Stock Units granted
to a Participant that become vested and non-forfeitable pursuant to the terms hereof and the applicable Restricted Stock Unit Award
Agreement, such Restricted Stock Units shall be paid on the first business day of the year after the year in which they become
vested and non-forfeitable (which is the scheduled distribution date for purposes of Section 7(e)), or as soon thereafter as administratively
practicable, but in no event no later than the fifteenth day of the third month following the end of the Company’s taxable
year after the year in which they become vested and non-forfeitable.

 

		(c)	Deferral By Company. Subject to Section 7(a), at the discretion
of the Committee, a Restricted Stock Unit Award for a Participant (other than a Non-Employee Director) may provide for a date or
dates of distribution occurring after the vesting date, and in such case payment shall be made on such distribution dates as specified
in the applicable Restricted Stock Unit Award Agreement (which are the scheduled distribution dates for purposes of Section 7(e)),
against payment of par value (which must be made in the Participant’s tax year in which the dates of distribution fall).

 

    	 

    	 

    

 

		(d)	Non-Employee Director Deferral of Payment of Restricted Stock
Units and Cash Election. Subject to Section 7(a), a Participant who is a Non-Employee Director and who was granted a Restricted
Stock Unit Award (A) may irrevocably elect, not later than the December 31 that precedes the calendar year in which such award
is granted or (B) may irrevocably elect not later than 30 days after they become initially eligible to participate in the Plan
(but only with respect to Restricted Stock Units earned for services beginning the first calendar quarter after such election),
on the form attached hereto as Exhibit A or on another form prescribed by the Company (the “Election Form”), that such
Restricted Stock Units shall be paid on any date or dates in equal installments elected by the Participant (which will be the scheduled
distribution date or dates for purposes of Section 7(e)) that is not earlier than January 1 of the year following the year in which
the award in its entirety becomes vested and nonforfeitable. Unless otherwise provided in a Restricted Stock Unit Award Agreement,
and subject to the restrictions provided in Section 9(n) a Non-Employee Director may elect on an Election Form at any time prior
to payment of Restricted Stock Units granted in a Restricted Stock Units Award Agreement that up to 40% of such Restricted Stock
Units be settled in cash (“Cash Settled Restricted Stock Units”).

 

		(e)	Payment of Units. Upon the occurrence of the distribution
events set forth in Section 7(a), 7(b), 7(c), and 7(d), other than with respect to Cash Settled Restricted Stock Units, the Company
shall deliver a number of shares of Stock equal to the number of vested Stock Units to which the Participant is then entitled under
the terms of the Plan and the Restricted Stock Unit Award Agreement upon receipt from Participant of the par value of such shares
of Stock. In lieu of requiring cash payment of such par value, the Company may, in the Participant’s sole discretion, accept
payment of any such par value by withholding from Stock payments a number of whole shares of Stock whose value is equal to the
amount of such par value. Valuation for this purpose shall be the Fair Market Value on the date of scheduled distribution referenced
in Sections 7(b), 7(c) and 7(d). Upon the occurrence of the distribution events set forth in Section 7(a) and 7(d) with respect
to Cash Settled Restricted Stock Units, the Company shall deliver to the Participant cash equal to (A) Fair Market Value of the
Common Stock on the scheduled date of distribution less one cent par value multiplied by (B) the number of such Cash Settled Restricted
Stock Units as calculated pursuant to the Participant’s Election Form.

		(f)	Forfeiture of Unvested Units. Except as provided in Section
5(c) of the Plan or in a Participant’s Restricted Stock Unit Award Agreement, to the extent any portion of a Participant's
RSUs have not become vested upon the date the Participant's services as an employee, consultant or Non-Employee Director terminate,
such RSUs shall be forfeited and the unvested portion of the RSU award shall automatically terminate without any other action by
the Participant or the Participant’s Beneficiary as the case may be and without payment of consideration by the Company.

 

		8.	Shares Subject to the Plan; Share Limits.

 

		(a)	Share Limits. Subject to the provisions of Section 10
of the Plan, the maximum aggregate number of shares of Common Stock which may be issued under the Plan is 2,000,000 (the “Pool”)
of Common Stock. Such shares may be authorized, but unissued, or reacquired Common Stock. Shares issued in payment of any Restricted
Stock Units granted under the Plan shall be counted against the Pool as one share for every one share actually issued in payment
of such Restricted Stock Units. Issuance of cash for Cash Settled Restricted Stock Units shall diminish the Pool as if a share
had been exchanged for each RSU settled in cash.

		(b)	Shares withheld by the Company as payment of par value or applicable
withholding taxes in connection with any award under the Plan, shall not be available for subsequent awards under the Plan. Shares
that are subject to or underlie awards which expire or for any reason are cancelled or terminated, are forfeited, fail to vest,
or for any other reason are not paid or delivered under the Plan shall again be available for subsequent awards under the Plan.

 

    	 

    	 

    

 

		9.	General.

 

(a) Government and
Other Regulations. The obligation of the Company to credit Stock Units, issue or deliver Stock or otherwise make payments under
the Plan are subject to compliance with all applicable laws, rules, and regulations (including, without limitation, federal and
state securities laws), and to such approvals by any listing, agency, or regulatory or governmental authorities as may, in the
opinion of counsel for the Company, be necessary or advisable in connection therewith. Any securities issued or delivered under
the Plan shall be subject to such restrictions, and the person acquiring such securities shall, if requested by the Company, provide
such assurances and representations to the Company, as the Company may deem necessary or advisable to assure compliance with all
applicable legal requirements.

 

(b) Tax and Withholding.
The Company has the right to require the person receiving Stock to pay to the Company the amount of any federal, state and local
taxes which the Company is required to withhold upon the delivery of Stock. In lieu of requiring cash payment of any such taxes,
the Company shall, in the Participant’s sole discretion and election, instead withhold from said Participant’s Stock
payments a number of shares of Stock whose value is equal to the amount of such taxes. Valuation for this purpose shall be the
Fair Market Value on the date of distribution.

 

(c) Beneficiaries.

 

(1) Beneficiary Designation.
Each Eligible Participant may designate in writing the Beneficiary or Beneficiaries (as defined in Section 9(c)(2)) whom such Eligible
Participant desires to receive any amounts payable under the Plan after his or her death. Beneficiary designations shall be effective
on the date such written designation is received by the Corporate Secretary. An Eligible Participant may from time to time change
his or her designated Beneficiary or Beneficiaries without the consent of such Beneficiary or Beneficiaries by filing a new designation
in writing with the Corporate Secretary. However, if a married Eligible Participant wishes to designate a person other than his
or her spouse as Beneficiary, such designation shall be consented to in writing by the spouse. The Eligible Participant may change
any election designating a Beneficiary or Beneficiaries without any requirement of further spousal consent if the spouse's consent
so provides. Notwithstanding the foregoing, spousal consent shall not be necessary if it is established that the required consent
cannot be obtained because the spouse cannot be located or because of other circumstances prescribed by the Board or the Committee.
The Company and the Board or the Committee may rely on the Eligible Participant's designation of a Beneficiary or Beneficiaries
last filed in accordance with the terms of the Plan.

 

(2) Definition of Beneficiary.
An Eligible Participant's “Beneficiary” or “Beneficiaries” shall be the person, persons, trust or trusts
so designated by the Eligible Participant or, in the absence of such designation, entitled by will or the laws of descent and distribution
to receive the Eligible Participant's benefits under the Plan in the event of the Eligible Participant's death, and shall mean
the Eligible Participant's executor or administrator if no other Beneficiary is identified and able to act under the circumstances.

 

(d) Non-transferability.
Except as provided in Section 9(c) and in this Section 9(d), a Participant’s rights and interests under the Plan in respect
of RSUs, including Stock or cash deliverable under or in respect thereof, may not be assigned, pledged, or transferred. The Committee
may, in its discretion, authorize all or a portion of the RSUs to be granted to a Participant to be on terms which permit transfer
by such Participant to (i) the spouse, children or grandchildren of the Participant (the “Immediate Family Members”),
(ii) a trust or trusts for the exclusive benefit of such Immediate Family Members, or (iii) a partnership in which such Immediate
Family Members are the only partners, provided that (x) there may be no consideration for any such transfer, (y) subsequent transfers
of transferred of RSUs shall be prohibited except those made by will or by the laws of descent or distribution, and (z) such transfer
is approved in advance by the Committee. Following transfer, any such RSUs shall continue to be subject to the same terms and conditions
as were applicable immediately prior to transfer, provided that for purposes of determining the party entitled to exercise under
the RSU, the term “Participant” shall be deemed to refer to the transferee. The termination of service as an employee,
non-employee director or consultant shall continue to be applied with respect to the original Participant, following which the
RSUs shall be exchangeable for Stock by the transferee only to the extent, and for the periods specified in Section 7 of the Plan
and in the Restricted Stock Unit Award Agreement.

 

    	 

    	 

    

 

(e) Expenses. All expenses
incurred by the Company associated with adoption and administration of this Plan, including all legal expenses related to drafting
this Plan and related documents, shall be borne solely by the Company.

 

(f) Titles and Headings.
The titles and headings of the sections in the Plan are for convenience of reference only, and in the event of any conflict, the
text of the Plan, rather than such titles or headings, shall control.

 

(g) Governing Law.
The validity of the Plan or any of its provisions and any agreements entered into under the Plan shall be construed, administered
and governed in all respects under the laws of the State of New York. If any provisions of the Plan shall be held by a court of
competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof shall continue to be fully effective.

 

(h) Limitation on Participants’
Rights; Unfunded Plan. Participation in the Plan shall not give any person the right to continued employment or any rights or interests
other than as expressly provided herein. No Participant shall have any right to any payment or benefit hereunder except to the
extent provided herein. The Plan shall create only a contractual obligation on the part of the Company as to such amounts and shall
not be construed as creating a trust or fiduciary relationship between the Company, the Board, the Committee, and any Participant
or other person. Participants and their Beneficiaries shall have no legal or equitable rights, claims, or interest in any specific
property or assets of the Company. No assets of the Company shall be held under any trust, or held in any way as collateral security
for the fulfilling of the obligations of the Company under this Plan. Any and all of the Company's assets shall be, and remain,
the general unpledged, unrestricted assets of the Company. The Company's obligation under the Plan shall be merely that of an unfunded
and unsecured promise of the Company to pay benefits in the future, and the rights of the Participants and Beneficiaries shall
be no greater than those of unsecured general creditors.

 

(i) Rights with Respect
to Stock Units. A Participant's Stock Unit Account shall be a memorandum account on the books of the Company. The Stock Units credited
to such account shall be used solely as a device to determine the number of shares of Stock (or cash in the case of Cash Settled
Restricted Stock Units) to be eventually distributed to the Participant, subject to applicable vesting requirements, in accordance
with the Plan. The Stock Units shall not be treated as property or as a trust fund of any kind. No Participant shall be entitled
to any voting dividend, or other stockholder rights with respect to Stock Units credited under the Plan.

 

(j) Restricted Stock
Unit Award Agreements. Each Restricted Stock Unit award granted to an Eligible Participant under the Plan shall be evidenced by
a writing approved by the Board or the Committee and will contain the terms and conditions consistent with the Plan as approved
by the Board or the Committee relating to the RSUs. This Plan and each Restricted Stock Unit Award Agreement granted to an Eligible
Participant under the Plan shall be binding upon, and inure to the benefit of, any successor or successors of the Company, except
to the extent that the Board or the Committee and each Participant having executed a Restricted Stock Unit Award Agreement determine
otherwise as evidenced by a writing signed by both parties.

 

(k) Plan Construction.
By its approval of the Plan, the Board intends that the transactions contemplated by the Plan satisfy and be interpreted in a manner
that satisfies the applicable requirements of Rule 16b-3 promulgated under the Exchange Act so that, among other transactions,
the crediting of Stock Units and payment in Stock will be entitled to the benefits of Rule 16b-3 or other exemptive rules under
the Exchange Act.

 

(l) Notices. Any notice
to be given under the terms of this Plan shall be in writing and addressed to the Company at its principal office, to the attention
of the Corporate Secretary, and to the Participant at his or her last address of record, or at such other address as either party
may designate in writing to the other for the purposes of notices in respect of RSUs.

 

(m) In the event the
Board determines that it is not necessary to collect par value in exchange for issuances of Stock hereunder in exchange for RSUs
then the Board may eliminate (i) the par value payment required in connection with a distribution of Stock, and (ii) the deduction
of par value in calculating amounts to be paid under Cash Settled Restricted Stock Units.

 

    	 

    	 

    

 

(n) In the event the
Board determines that under the terms of any preferred stock that may be issued by the Company or the terms of any credit agreement,
loan agreement or financing arrangement (collectively, “Loan”), whether existing on the Effective Date or entered into
or amended thereafter, that (i) withholding of RSUs or shares of stock exchangeable for RSUs for payment of taxes or par value
or (ii) settlement of Cash Settled Restricted Stock Units, would violate a covenant, representation, warranty or other agreement
contained in such Loan (including, without limitation, limits on repurchase or redemption of Common Stock or derivatives thereof),
then in the case of subparagraph (i) the Company shall not be required to withhold such RSUs and/or shares of Common Stock and
the Participant shall make such payment in cash, and in the case of subparagraph (ii), such Cash Settled Restricted Stock Units
shall be settled in Common Stock.

 

		10.	Changes in Capital Structure.

 

Upon or in contemplation
of any reclassification, recapitalization, stock split (including a stock split in the form of a stock dividend) or reverse stock
split; any merger, combination, consolidation or other reorganization; any split-up; spin-off, or similar extraordinary dividend
distribution in respect of the Stock (whether in the form of securities or property); any exchange of Stock or other securities
of the Company, or any similar, unusual or extraordinary corporate transaction in respect of the Stock; or a sale of substantially
all the assets of the Company as an entirety; then the Board shall, in such manner, to such extent (if any) and at such time as
it deems appropriate and equitable in the circumstances in the Board’s exercise of good faith and reasonable judgment, proportionately
adjust any or all of (a) the number and type of shares of Stock (or other securities or property) that thereafter may be made the
subject of Stock Units and Stock Unit Accounts (including the specific maximum and numbers of shares set forth elsewhere in the
Plan), (b) the number, amount and type of shares of Stock (or other securities or property) payable in respect of Stock Units,
and (c) and the number and type of Stock Units (both credited and vested) under the Plan.

 

		11.	Amendments and Termination.

 

The Board (but only
upon shareholder approval if such approval is required by (i) the rules of the exchange on which the Company’s stock is listed,
(ii) under New York law or (iii) any other applicable law or regulation) shall have the right to amend the Plan (including outstanding
awards) in whole or in part from time to time or may at any time suspend or terminate the Plan; provided, however, that no amendment
or termination shall cancel or otherwise adversely affect in any way, without his or her written consent, any Participant's rights
with respect to Stock Units credited to his or her Stock Unit Account and no amendment or termination shall accelerate payment
of any benefit which is subject to the rules of Section 409A of the Code in a manner that would violate the distribution rules
of Section 409A of the Code. Notwithstanding the foregoing, Participant consent shall not be required to the extent that the Board
determines that applicable law requires amendment or termination of the Plan to preserve the intended tax benefits to the Participants
and the Company hereunder. Any amendments authorized hereby shall be stated in an instrument in writing, and all Participants (subject
to any applicable consent requirement above) shall be bound thereby upon receipt of notice thereof. Changes contemplated by Section
10 shall not be deemed to constitute changes or amendments for purposes of this Section 11.

 

    	 

    	 

    

 

Exhibit A

 

Non-Employee Director Election Form

 

Instructions.

 

This form must be submitted
to the Corporate Secretary of Acura Pharmaceuticals, Inc. by fax, mail or email by December 31 of the year prior to the award of
the Restricted Stock Units to which it applies.

 

The elections contained
herein will only apply to the year designated.

 

This form enables a
Non-Employee Director to (i) defer distributions of Restricted Stock Units past their vesting date and (ii) elect to receive a
portion of Restricted Stock Units to be settled in cash. The two elections contained herein are separate.

 

For 2014, the deferral
election may be submitted not later than 30 days after the Effective Date of the 2014 RSU Plan, which was May __, 2014, and will
only become effective with respect to Restricted Stock Units earned for services beginning the first calendar quarter after such
election. There is no such restriction on the cash election.

 

Deferral Election.

 

____ I hereby irrevocably
elect to defer distribution of Restricted Stock Units to be awarded to me for service in calendar year_______ until _______________________
[insert one or more dates] [in ___ [insert number of installments] equal installments. I acknowledge an earlier distribution will
occur upon a Change of Control-409A as provided for in the 2014 RSU Award Plan. This election will not apply to any awards other
than those for the stated calendar year. If this election is made in my first year of eligibility under the Plan, then it shall
only apply to RSUs granted to me for service earned from the first day of the calendar quarter commencing after such election until
the end of such calendar year.

 

Cash Distribution Election.

 

_____ I hereby elect
to settle ___% [enter a number up to 40%] of the Restricted Stock Units awarded to me in calendar year ____ in cash. This
election will automatically apply to future calendar years until I revoke this election. This election may be changed at any time
prior to payment of the affected Restricted Stock Units.

 

Signature of Non-Employee Director

 

	 	 

 

Date: __________________

 

Receipt Acknowledge by Company

 

Acura Pharmaceuticals, Inc.

 

	By:	 	 
	 	Name:	 
	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00230-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00230-of-00352.parquet"}]]