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exh101restated

AXOS FINANCIAL, INC. AMENDED AND RESTATED 2014 STOCK INCENTIVE PLAN ARTICLE I PURPOSE The purpose of this Axos Financial, Inc. Amended and Restated 2014 Stock Incentive Plan (the “Plan”) is to benefit Axos  Financial, Inc., a Delaware corporation (the “Company”), and its stockholders, by assisting the Company to attract, retain and  provide incentives to key management employees, directors, and consultants of the Company and its Affiliates, and to align the  interests of such service providers with those of the Company’s stockholders. Accordingly, the Plan provides for the granting of  Non-qualified Stock Options, Incentive Stock Options, Restricted Stock Awards, Restricted Stock Unit Awards, Stock  Appreciation Rights, Performance Stock Awards, Performance Unit Awards, Unrestricted Stock Awards, Distribution  Equivalent Rights or any combination of the foregoing. ARTICLE II DEFINITIONS The following definitions shall be applicable throughout the Plan unless the context otherwise requires: 2.1    “Affiliate” shall mean any corporation which, with respect to the Company, is a “subsidiary corporation” within the  meaning of Section 424(f) of the Code or other entity in which the Company has a controlling interest in such entity or another  entity which is part of a chain of entities in which the Company or each entity has a controlling interest in another entity in the  unbroken chain of entities ending with the applicable entity. 2.2    “Award” shall mean, individually or collectively, any Option, Restricted Stock Award, Restricted Stock Unit  Award, Performance Stock Award, Performance Unit Award, Stock Appreciation Right, Distribution Equivalent Right or  Unrestricted Stock Award. 2.3    “Award Agreement” shall mean a written agreement between the Company and the Holder with respect to an  Award, setting forth the terms and conditions of the Award, as amended. 2.4    “Board” shall mean the Board of Directors of the Company. 2.5    “Base Value” shall have the meaning given to such term in Section 14.2. 2.6    “Cause” shall mean (i) if the Holder is a party to an employment or service agreement with the Company or an  Affiliate which agreement defines “Cause” (or a similar term), “Cause” shall have the same meaning as provided for in such  agreement, or (ii) for a Holder who is not a party to such an agreement, “Cause” shall mean termination by the Company or an  Affiliate of the employment (or other service relationship) of the Holder by reason of the Holder’s (A) intentional failure to  perform reasonably assigned duties, (B) dishonesty or willful misconduct in the performance of the Holder’s duties, (C)  involvement in a transaction which is materially adverse to the Company or an Affiliate, (D) breach of fiduciary duty involving  personal profit, (E) willful violation of any law, rule, regulation or court order (other than misdemeanor traffic violations and  misdemeanors not involving misuse or misappropriation of money or property), (F) commission of an act of fraud or intentional  misappropriation or conversion of any asset or opportunity of the Company or an Affiliate, or (G) material breach of any  provision of the Plan or the Holder’s Award Agreement or any other written agreement between the Holder and the Company  or an Affiliate, in each case as determined in good faith by the Board, the determination of which shall be final, conclusive and  binding on all parties. 2.7    “Change of Control” shall mean: (i) for a Holder who is a party to an employment or consulting agreement with the  Company or an Affiliate which agreement defines “Change of Control” (or a similar term), “Change of Control” shall have the  same meaning as provided for in such agreement, or (ii) for a Holder who is not a party to such an agreement, “Change of  Control” shall mean the satisfaction of any one or more of the following conditions (and the “Change of Control” shall be  deemed to have occurred as of the first day that any one or more of the following conditions shall have been satisfied): (a)    Any person (as such term is used in paragraphs 13(d) and 14(d)(2) of the Exchange Act, hereinafter in this  definition, “Person”), other than the Company or an Affiliate or an employee benefit plan of the Company or an Affiliate,  becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the  Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding  securities; (b)    The closing of a merger, consolidation or other business combination (a “Business Combination”) other than a  Business Combination in which holders of the Shares immediately prior to the Business Combination have substantially the  A-1 

 

same proportionate ownership of the common stock or ordinary shares, as applicable, of the surviving corporation immediately  after the Business Combination as immediately before; (c)    The closing of an agreement for the sale or disposition of all or substantially all of the Company’s assets to any  entity that is not an Affiliate; (d)    The consummation of a plan of complete liquidation of the Company, other than a merger of the Company into any  subsidiary or a liquidation as a result of which persons who were stockholders of the Company immediately prior to such  liquidation have substantially the same proportionate ownership of shares of common stock or ordinary shares, as applicable, of  the surviving corporation immediately after such liquidation as immediately before; or (e)    Within any twenty-four (24) month period, the Incumbent Directors shall cease to constitute at least a majority of  the Board or the board of directors of any successor to the Company; provided, however, that any director elected to the Board,  or nominated for election, by a majority of the Incumbent Directors then still in office, shall be deemed to be an Incumbent  Director for purposes of this paragraph (e), but excluding, for this purpose, any such individual whose initial assumption of  office occurs as a result of either an actual or threatened election contest with respect to the election or removal of directors or  other actual or threatened solicitation of proxies or consents by or on behalf of an individual, entity or “group” other than the  Board (including, but not limited to, any such assumption that results from paragraphs (a), (b), (c), or (d) of this definition). (f)    any reverse merger or series of related transactions culminating in a reverse merger (including, but not limited to, a  tender offer followed by a reverse merger) in which the Company is the surviving entity but (A) the shares of Stock outstanding  immediately prior to such merger are converted or exchanged by virtue of the merger into other property, whether in the form  of securities, cash or otherwise, or (B) in which securities possessing more than forty percent (40%) of the total combined  voting power of the Company’s outstanding securities are transferred to a person or persons different from those who held such  securities immediately prior to such merger or the initial transaction culminating in such merger, but excluding any such  transaction or series of related transactions that the Administrator determines shall not be a Change of Control. 2.8    “Code” shall mean the United States of America Internal Revenue Code of 1986, as amended. Reference in the Plan  to any section of the Code shall be deemed to include any amendments or successor provisions to any section and any  regulation under such section. 2.9    “Committee” shall mean a committee comprised of not less than three (3) members of the Board who are selected  by the Board as provided in Section 4.1. 2.10    “Company” shall have the meaning given to such term in the introductory paragraph, including any successor  thereto. 2.11    “Consultant” shall mean any non-Employee (individual or entity) advisor to the Company or an Affiliate who or  which has contracted directly with the Company or an Affiliate to render bona fide consulting or advisory services thereto. 2.12    “Director” shall mean a member of the Board or a member of the board of directors of an Affiliate, in either case,  who is not an Employee. 2.13    “Distribution Equivalent Right” shall mean an Award granted under Article XIII of the Plan which entitles the  Holder to receive bookkeeping credits, cash payments and/or Share distributions equal in amount to the distributions that would  have been made to the Holder had the Holder held a specified number of Shares during the period the Holder held the  Distribution Equivalent Right. 2.14    “Distribution Equivalent Right Award Agreement” shall mean a written agreement between the Company and a  Holder with respect to a Distribution Equivalent Right Award. 2.15     “Effective Date” shall have the meaning given to such term in Article III. 2.16    “Employee” shall mean any employee, including any officer, of the Company or an Affiliate.  2.17    “Exchange Act” shall mean the United States of America Securities Exchange Act of 1934, as amended. 2.18    “Fair Market Value” shall mean, as of any specified date, the closing sales price of the Shares for such date (or, in  the event that the Shares are not traded on such date, on the immediately preceding trading date) on the New York Stock  Exchange (“NYSE”), as reported by NYSE, or such other domestic or foreign national securities exchange on which the Shares  may be listed. If the Shares are not listed on NYSE or on a national securities exchange, but are quoted on the OTC Bulletin  Board or by the National Quotation Bureau, the Fair Market Value of the Shares shall be the mean of the highest bid and lowest  asked prices per Share for such date. If the Shares are not quoted or listed as set forth above, Fair Market Value shall be  determined by the Board in good faith by any fair and reasonable means (which means may be set forth with greater specificity  in the applicable Award Agreement). The Fair Market Value of property other than Shares shall be determined by the Board in  good faith by any fair and reasonable means consistent with the requirements of applicable law. A-2 

 

2.19     “Family Member” of an individual shall mean any child, stepchild, grandchild, parent, stepparent, spouse, former  spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law,  including adoptive relationships, any person sharing the Holder’s household (other than a tenant or employee of the Holder), a  trust in which such persons have more than fifty percent (50%) of the beneficial interest, a foundation in which such persons (or  the Holder) control the management of assets, and any other entity in which such persons (or the Holder) own more than fifty  percent (50%) of the voting interests. 2.20    “Holder” shall mean an Employee, Director or Consultant who has been granted an Award or any such  individual’s beneficiary, estate or representative, who has acquired such Award in accordance with the terms of the Plan, as  applicable. 2.21     “Incentive Stock Option” shall mean an Option which is intended by the Committee to constitute an “incentive  stock option” and conforms to the applicable provisions of Section 422 of the Code. 2.22    “Incumbent Director” shall mean, with respect to any period of time specified under the Plan for purposes of  determining whether or not a Change of Control has occurred, the individuals who were members of the Board at the beginning  of such period. 2.23    “Non-qualified Stock Option” shall mean an Option which is not an Incentive Stock Option or which is designated  as an Incentive Stock Option but does not meet the applicable requirements of Section 422 of the Code.  2.24    “Option” shall mean an Award granted under Article VII of the Plan of an option to purchase Shares and shall  include both Incentive Stock Options and Non-qualified Stock Options. 2.25    “Option Agreement” shall mean a written agreement between the Company and a Holder with respect to an  Option. 2.26    “Performance Criteria” shall mean the criteria selected by the Committee for purposes of establishing the  Performance Goal(s) for a Holder for a Performance Period. 2.27    “Performance Goals” shall mean, for a Performance Period, the written goal or goals established by the Committee  for the Performance Period based upon the Performance Criteria, which may be related to the performance of the Holder, the  Company or an Affiliate. 2.28    “Performance Period” shall mean one or more periods of time, which may be of varying and overlapping  durations, selected by the Committee, over which the attainment of the Performance Goals shall be measured for purposes of  determining a Holder’s right to, and the payment of, a Qualified Performance-Based Award. 2.29    “Performance Stock Award” or “Performance Stock” shall mean an Award granted under Article XII of the Plan  under which, upon the satisfaction of predetermined Performance Goals, Shares are paid to the Holder. 2.30    “Performance Stock Agreement” shall mean a written agreement between the Company and a Holder with respect  to a Performance Stock Award. 2.31    “Performance Unit” shall mean a Unit awarded to a Holder pursuant to a Performance Unit Award. 2.32    “Performance Unit Award” shall mean an Award granted under Article XI of the Plan under which, upon the  satisfaction of predetermined Performance Goals, a cash payment shall be made to the Holder, based on the number of Units  awarded to the Holder. 2.33    “Performance Unit Agreement” shall mean a written agreement between the Company and a Holder with respect  to a Performance Unit Award. 2.34    “Plan” shall mean this Axos Financial, Inc. Amended and Restated 2014 Stock Incentive Plan, as further amended  or restated from time to time, together with each of the Award Agreements utilized hereunder. 2.35    “Qualified Performance-Based Award” shall mean an Award that was intended to qualify as “performance-based”  compensation under Section 162(m) of the Code as in effect at the time of such Award. 2.36    “Restricted Stock Award” and “Restricted Stock” shall mean an Award granted under Article VIII of the Plan of  Shares, the transferability of which by the Holder is subject to Restrictions. 2.37    “Restricted Stock Agreement” shall mean a written agreement between the Company and a Holder with respect to  a Restricted Stock Award. 2.38    “Restricted Stock Unit Award” and “RSUs” shall refer to an Award granted under Article X of the Plan under  which, upon the satisfaction of predetermined individual service-related vesting requirements, a cash payment shall be made to  the Holder, based on the number of Units awarded to the Holder. A-3 

 

2.39    “Restricted Stock Unit Agreement” shall mean a written agreement between the Company and a Holder with  respect to a Restricted Stock Award. 2.40     “Restriction Period” shall mean the period of time for which Shares subject to a Restricted Stock Award shall be  subject to Restrictions, as set forth in the applicable Restricted Stock Agreement. 2.41    “Restrictions” shall mean the forfeiture, transfer and/or other restrictions applicable to Shares awarded to an  Employee, Director or Consultant under the Plan pursuant to a Restricted Stock Award and set forth in a Restricted Stock  Agreement.  2.42    “Rule 16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission under the  Exchange Act, as such may be amended from time to time, and any successor rule, regulation or statute fulfilling the same or a  substantially similar function. 2.43    “Shares” or “Stock” shall mean the common shares of the Company, par value $0.01 per share. 2.44    “Stock Appreciation Right” or “SAR” shall mean an Award granted under Article XIV of the Plan of a right,  granted alone or in connection with a related Option, to receive a payment equal to the increase in value of a specified number  of Shares between the date of Award and the date of exercise. 2.45    “Stock Appreciation Right Agreement” shall mean a written agreement between the Company and a Holder with  respect to a Stock Appreciation Right. 2.46    “Tandem Stock Appreciation Right” shall mean a Stock Appreciation Right granted in connection with a related  Option, the exercise of some or all of which results in termination of the entitlement to purchase some or all of the Shares under  the related Option, all as set forth in Article XIV. 2.47     “Ten Percent Stockholder” shall mean an Employee who, at the time an Option is granted to him or her, owns  shares possessing more than ten percent (10%) of the total combined voting power of all classes of shares of the Company or of  any parent corporation or subsidiary corporation thereof (both as defined in Section 424 of the Code), within the meaning of  Section 422(b)(6) of the Code. 2.48    “Termination of Service” shall mean a termination of a Holder’s employment with, or status as a Director or  Consultant of, the Company or an Affiliate, as applicable, for any reason, including, without limitation, Total and Permanent  Disability or death, except as provided in Section 6.4. In the event Termination of Service shall constitute a payment event with  respect to any Award subject to Code Section 409A, Termination of Service shall only be deemed to occur upon a “separation  from service” as such term is defined under Code Section 409A and applicable authorities.  2.49    “Total and Permanent Disability” of an individual shall mean the inability of such individual to engage in any  substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to  result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months, within  the meaning of Section 22(e)(3) of the Code. 2.50    “Unit” shall mean a bookkeeping unit, which represents such monetary amount as shall be designated by the  Committee in each Performance Unit Agreement, or represents one Share for purposes of each Restricted Stock Unit Award. 2.51    “Unrestricted Stock Award” shall mean an Award granted under Article IX of the Plan of Shares which are not  subject to Restrictions. 2.52    “Unrestricted Stock Agreement” shall mean a written agreement between the Company and a Holder with respect  to an Unrestricted Stock Award. ARTICLE III EFFECTIVE DATE OF PLAN The Plan was originally adopted by the Board as of September 5, 2014 (the “Effective Date”) and approved by the  stockholders of the Company on October 23, 2014.  The Plan was amended and restated by the Board as of September 6, 2019  and approved by the stockholders of the Company on October 24, 2019.  This Plan was further amended and restated by the  Board on August 31, 2021, as set forth herein, and is subject to approval by Company stockholders before August 31, 2022. ARTICLE IV ADMINISTRATION A-4 

 

4.1    Composition of Committee. The Plan shall be administered by the Committee, which shall be appointed by the  Board. If necessary, in the Board’s discretion, to comply with Rule 16b-3 under the Exchange Act and, to the extent applicable,  Section 162(m) of the Code as in effect on the Effective Date, the Committee shall consist solely of three (3) or more Directors  who are each (i) “outside directors” within the meaning of Section 162(m) of the Code as in effect on the Effective Date  (“Outside Directors”), (ii) “Non-Employee Directors” within the meaning of Rule 16b-3 (“Non-Employee Directors”) and (iii)  “independent” for purposes of any applicable listing requirements; provided, however, that the Board or the Committee may  delegate to a committee of one or more members of the Board who are not Non-Employee Directors, the authority to grant  Awards to eligible persons who are not then subject to the requirements of Section 16 of the Exchange Act. If a member of the  Committee shall be eligible to receive an Award under the Plan, such Committee member shall have no authority hereunder  with respect to his or her own Award. 4.2    Powers. Subject to the provisions of the Plan, the Committee shall have the sole authority, in its discretion, to make  all determinations under the Plan, including but not limited to determining which Employees, Directors or Consultants shall  receive an Award, the time or times when an Award shall be made (the date of grant of an Award shall be the date on which the  Award is awarded by the Committee), what type of Award shall be granted, the term of an Award, the date or dates on which an  Award vests or may be exercised, the form of any payment to be made pursuant to an Award, the terms and conditions of an  Award (including the forfeiture of the Award (and/or any financial gain) if the Holder of the Award violates any applicable  restrictive covenant thereof), the Restrictions under a Restricted Stock Award and the number of Shares which may be issued  under an Award, Performance Goals applicable to any Award and certification of the achievement of such goals, and the waiver  of any Restrictions or Performance Goals, subject to compliance with applicable laws, all as may be applicable. In making such  determinations the Committee may take into account the nature of the services rendered by the respective Employees, Directors  and Consultants, their present and potential contribution to the Company’s (or the Affiliate’s) success and such other factors as  the Committee in its discretion may deem relevant. 4.3    Additional Powers. The Committee shall have such additional powers as are delegated to it under the other  provisions of the Plan. Subject to the express provisions of the Plan, the Committee is authorized to construe the Plan and the  respective Award Agreements executed hereunder and to amend them in the Committee’s discretion, to prescribe such rules and  regulations relating to the Plan as it may deem advisable to carry out the intent of the Plan, to determine the terms, restrictions  and provisions of each Award and to make all other determinations necessary or advisable for administering the Plan. The  Committee may correct any defect or supply any omission or reconcile any inconsistency in any Award Agreement in the  manner and to the extent the Committee shall deem necessary, appropriate or expedient to carry it into effect. The  determinations of the Committee on the matters referred to in this Article IV shall be conclusive and binding on the Company  and all Holders. 4.4    Committee Action. Subject to compliance with all applicable laws, action by the Committee shall require the  consent of a majority of the members of the Committee, expressed either orally at a meeting of the Committee or in writing in  the absence of a meeting. No member of the Committee shall have any liability for any good faith action, inaction or  determination in connection with the Plan.  All Committee decisions and determinations shall receive maximum deference to  the extent permitted under applicable law. ARTICLE V SHARES SUBJECT TO PLAN AND LIMITATIONS THEREON 5.1    Authorized Shares and Award Limits. The Committee may from time to time grant Awards to one or more  Employees, Directors and/or Consultants determined by it to be eligible for participation in the Plan in accordance with the  provisions of Article VI. Subject to the provisions of Section 15, below, the maximum aggregate number of Shares which may  be issued pursuant to (i) all Awards may not exceed 5,680,000 Shares and (ii) the exercise of Incentive Stock Options may not  exceed 5,680,000 Shares (subject in each case to adjustment in the same manner as provided in Article XV with respect to  Shares subject to Awards then outstanding).  To the extent necessary to comply with Section 162(m) of the Code as in effect on the Effective Date, notwithstanding  any provision in the Plan to the contrary, the maximum number of Shares that may be subject to any type of Award granted to  any one person during any calendar year shall be Four Hundred and Eighty Thousand (480,000) Shares (subject to adjustment  in the same manner as provided in Article XV with respect to Shares subject to Awards then outstanding). The limitation set  forth in the preceding sentence shall be applied in a manner which shall permit compensation generated in connection with  Qualified Performance-Based Awards to constitute “performance-based” compensation for purposes of Section 162(m) of the  Code as in effect on the Effective Date, and to the extent permitted by applicable laws, including, but not limited to, counting  against such maximum number of Shares, to the extent so required under Section 162(m) of the Code, any Shares subject to  Awards that are canceled or re-priced.          Any Shares covered by an Award (or portion of an Award) which lapses, is forfeited, canceled or expires (whether  voluntarily or involuntarily) shall be deemed not to have been issued for purposes of determining the maximum aggregate  A-5 

 

number of Shares which may be issued under the Plan. Shares that actually have been issued under the Plan pursuant to an  Award shall not be returned to the Plan and shall not become available for future issuance under the Plan, except that if  unvested Shares are forfeited, or repurchased by the Company at the lower of their original purchase price or their Fair Market  Value at the time of repurchase, such Shares shall become available for future grants of Awards under the Plan. To the extent  not prohibited by the listing requirements of NYSE (or other established stock exchange on which the Stock is traded) and  applicable law, any Shares covered by an Award which are surrendered (i) in payment of the Award exercise or purchase price  or (ii) in satisfaction of tax withholding obligations incident to the exercise of an Award shall be deemed to have been issued  for purposes of determining the maximum number of Shares which may be issued pursuant to all Awards under the Plan, unless  otherwise determined by the Committee.  5.2    Shares Offered. The Shares to be offered pursuant to the grant of an Award may be authorized but unissued Shares,  Shares purchased on the open market or Shares previously issued and outstanding and reacquired by the Company. ARTICLE VI ELIGIBILITY AND TERMINATION OF SERVICE 6.1    Eligibility. Awards made under the Plan may be granted solely to individuals or entities who, at the time of grant,  are Employees, Directors or Consultants. An Award may be granted on more than one occasion to the same Employee, Director  or Consultant, and, subject to the limitations set forth in the Plan, such Award may include, a Non-qualified Stock Option, a  Restricted Stock Award, a Restricted Stock Unit Award, an Unrestricted Stock Award, a Distribution Equivalent Right Award,  a Performance Stock Award, a Performance Unit Award, a Stock Appreciation Right, a Tandem Stock Appreciation Right, or  any combination thereof, and solely for Employees, an Incentive Stock Option. 6.2    Termination of Service. Except to the extent inconsistent with the terms of the applicable Award Agreement and/or  the provisions of Section 6.3 or 6.4, the following terms and conditions shall apply with respect to a Holder’s Termination of  Service with the Company or an Affiliate, as applicable: (i)    The Holder’s rights, if any, to exercise any then exercisable Options and/or Stock Appreciation Rights shall  terminate: (A)    If such termination is for a reason other than the Holder’s Total and Permanent Disability or death, ninety (90) days  after the date of such Termination of Service; (B)    If such termination is on account of the Holder’s Total and Permanent Disability, one (1) year after the date of such  Termination of Service; or (C)    If such termination is on account of the Holder’s death, one (1) year after the date of the Holder’s death.  Upon such applicable date the Holder (and such Holder’s estate, designated beneficiary or other legal representative)  shall forfeit any rights or interests in or with respect to any such Options and Stock Appreciation Rights. Notwithstanding the  foregoing, the Committee, in its sole discretion, may provide for a different time period in the Award Agreement, or may  extend the time period, following a Termination of Service, during which the Holder has the right to exercise any vested Non- qualified Stock Option or Stock Appreciation Right, which time period may not extend beyond the expiration date of the Award  term. (ii)    In the event of a Holder’s Termination of Service for any reason prior to the actual or deemed satisfaction and/or  lapse of the Restrictions, vesting requirements, terms and conditions applicable to a Restricted Stock Award and/or Restricted  Stock Unit Award, such Restricted Stock and/or RSUs shall immediately be canceled, and the Holder (and such Holder’s estate,  designated beneficiary or other legal representative) shall forfeit any rights or interests in and with respect to any such  Restricted Stock and/or RSUs. Notwithstanding the immediately preceding sentence, the Committee, in its sole discretion, may  determine, prior to or within thirty (30) days after the date of such Termination of Service that all or a portion of any such  Holder’s Restricted Stock and/or RSUs shall not be so canceled and forfeited. 6.3    Special Termination Rule. Except to the extent inconsistent with the terms of the applicable Award Agreement, and  notwithstanding anything to the contrary contained in this Article VI, if a Holder’s employment with, or status as a Director of,  the Company or an Affiliate shall terminate, and if, within ninety (90) days of such termination, such Holder shall become a  Consultant, such Holder’s rights with respect to any Award or portion thereof granted thereto prior to the date of such  termination may be preserved, if and to the extent determined by the Committee in its sole discretion, as if such Holder had  been a Consultant for the entire period during which such Award or portion thereof had been outstanding. Should the  Committee effect such determination with respect to such Holder, for all purposes of the Plan, such Holder shall not be treated  as if his or her employment or Director status had terminated until such time as his or her Consultant status shall terminate, in  which case his or her Award, as it may have been reduced in connection with the Holder’s becoming a Consultant, shall be  treated pursuant to the provisions of Section 6.2, provided, however, that any such Award which is intended to be an Incentive  Stock Option shall, upon the Holder’s no longer being an Employee, automatically convert to a Non-qualified Stock Option on  A-6 

 

the date required by the applicable Treasury Regulations governing Incentive Stock Options. Should a Holder’s status as a  Consultant terminate, and if, within ninety (90) days of such termination, such Holder shall become an Employee or a Director,  such Holder’s rights with respect to any Award or portion thereof granted thereto prior to the date of such termination may be  preserved, if and to the extent determined by the Committee in its sole discretion, as if such Holder had been an Employee or a  Director, as applicable, for the entire period during which such Award or portion thereof had been outstanding (except to the  extent required by the applicable Treasury Regulations governing Incentive Stock Options), and, should the Committee effect  such determination with respect to such Holder, for all purposes of the Plan, such Holder shall not be treated as if his or her  Consultant status had terminated until such time as his or her employment with the Company or an Affiliate, or his or her  Director status, as applicable, shall terminate, in which case his or her Award shall be treated pursuant to the provisions of  Section 6.2. 6.4    Termination for Cause. Notwithstanding anything in this Article VI or elsewhere in the Plan to the contrary, and  unless a Holder’s Award Agreement specifically provides otherwise, in the event of a Holder’s Termination for Cause, all of  such Holder’s then outstanding Awards shall expire immediately and be forfeited in their entirety upon such termination.  ARTICLE VII OPTIONS 7.1    Option Period. The term of each Option shall be as specified in the Option Agreement; provided, however, that  except as set forth in Section 7.3, no Option shall be exercisable after the expiration of ten (10) years from the date of its grant. 7.2    Limitations on Exercise of Option. An Option shall be exercisable in whole or in such installments and at such  times as specified in the Option Agreement. 7.3    Special Limitations on Incentive Stock Options. To the extent that the aggregate Fair Market Value (determined at  the time the respective Incentive Stock Option is granted) of Shares with respect to which Incentive Stock Options are  exercisable for the first time by an individual during any calendar year under all plans of the Company and any parent  corporation or subsidiary corporation thereof (both as defined in Section 424 of the Code) which provide for the grant of  Incentive Stock Options exceeds One Hundred Thousand Dollars ($100,000) (or such other individual limit as may be in effect  under the Code on the date of grant), the portion of such Incentive Stock Options that exceeds such threshold shall be treated as  Non-qualified Stock Options. The Committee shall determine, in accordance with applicable provisions of the Code, Treasury  Regulations and other administrative pronouncements, which of a Holder’s Options, which were intended by the Committee to  be Incentive Stock Options when granted to the Holder, will not constitute Incentive Stock Options because of such limitation,  and shall make reasonable efforts to notify the Holder of such determination as soon as practicable after such determination. No  Incentive Stock Option shall be granted to an Employee if, at the time the Incentive Stock Option is granted, such Employee is  a Ten Percent Stockholder, unless (i) at the time such Incentive Stock Option is granted the Option price is at least one hundred  ten percent (110%) of the Fair Market Value of the Shares subject to the Incentive Stock Option, and (ii) such Incentive Stock  Option by its terms is not exercisable after the expiration of five (5) years from the date of grant. No Incentive Stock Option  shall be granted more than ten (10) years from the earlier of the Effective Date or date on which the Plan is approved by the  Company’s stockholders. The designation by the Committee of an Option as an Incentive Stock Option shall not guarantee the  Holder that the Option will satisfy the applicable requirements for “incentive stock option” status under Section 422 of the  Code.  7.4    Option Agreement. Each Option shall be evidenced by an Option Agreement in such form and containing such  provisions not inconsistent with the provisions of the Plan as the Committee from time to time shall approve, including, but not  limited to, provisions intended to qualify an Option as an Incentive Stock Option. An Option Agreement may provide for the  payment of the Option price, in whole or in part, by the delivery of a number of Shares (plus cash if necessary) that have been  owned by the Holder for at least six (6) months and having a Fair Market Value equal to such Option price, or such other forms  or methods as the Committee may determine from time to time, in each case, subject to such rules and regulations as may be  adopted by the Committee. Each Option Agreement shall, solely to the extent inconsistent with the provisions of Sections 6.2,  6.3, and 6.4, as applicable, specify the effect of Termination of Service on the exercisability of the Option. Moreover, without  limiting the generality of the foregoing, a Non-qualified Stock Option Agreement may provide for a “cashless exercise” of the  Option, in whole or in part, by (a) establishing procedures whereby the Holder, by a properly-executed written notice, directs (i)  an immediate market sale or margin loan as to all or a part of Shares to which he is entitled to receive upon exercise of the  Option, pursuant to an extension of credit by the Company to the Holder of the Option price, (ii) the delivery of the Shares from  the Company directly to a brokerage firm and (iii) the delivery of the Option price from sale or margin loan proceeds from the  brokerage firm directly to the Company, or (b) reducing the number of Shares to be issued upon exercise of the Option by the  number of such Shares having an aggregate Fair Market Value equal to the Option price (or portion thereof to be so paid) as of  the date of the Option’s exercise. An Option Agreement may also include provisions relating to: (i) subject to the provisions  hereof, accelerated vesting of Options, and (ii) any other matters not inconsistent with the terms and provisions of the Plan that  A-7 

 

the Committee shall in its sole discretion determine. The terms and conditions of the respective Option Agreements need not be  identical.  7.5    Option Price and Payment. The price at which a Share may be purchased upon exercise of an Option shall be  determined by the Committee; provided, however, that such Option price (i) shall not be less than the Fair Market Value of a  Share on the date such Option is granted (or 110% of Fair Market Value for an Incentive Stock Option held by Ten Percent  Stockholder, as provided in Section 7.3), and (ii) shall be subject to adjustment as provided in Article XV. The Option or  portion thereof may be exercised by delivery of an irrevocable notice of exercise to the Company. The Option price for the  Option or portion thereof shall be paid in full in the manner prescribed by the Committee as set forth in the Plan and the  applicable Option Agreement, which manner, with the consent of the Committee, may include the withholding of Shares  otherwise issuable in connection with the exercise of the Option. Separate share certificates shall be issued by the Company for  those Shares acquired pursuant to the exercise of an Incentive Stock Option and for those Shares acquired pursuant to the  exercise of a Non-qualified Stock Option. 7.6    Stockholder Rights and Privileges. The Holder of an Option shall be entitled to all the privileges and rights of a  stockholder of the Company solely with respect to such Shares as have been purchased under the Option and for which share  certificates have been registered in the Holder’s name. 7.7    Options and Rights in Substitution for Stock or Options Granted by Other Corporations. Options (or other Awards)  may be granted under the Plan from time to time in substitution for stock options (or other equity-based awards) held by  individuals employed by entities who become Employees, Directors or Consultants as a result of a merger or consolidation of  the employing entity with the Company or any Affiliate, or the acquisition by the Company or an Affiliate of the assets of the  employing entity, or the acquisition by the Company or an Affiliate of stock or shares of the employing entity with the result  that such employing entity becomes an Affiliate.  The Shares subject to any such replacement Awards shall not count against  the Section 5.1 Share grant limits.   7.8    Prohibition Against Re-Pricing. Except to the extent (i) approved in advance by holders of a majority of the shares  of the Company entitled to vote generally in the election of directors, or (ii) as a result of any Change of Control or any  adjustment as provided in Article XV, the Committee shall not have the power or authority to reduce, whether through  amendment or otherwise, the exercise price under any outstanding Option or Stock Appreciation Right, or to grant any new  Award or make any payment of cash in substitution for or upon the cancellation of Options and/or Stock Appreciation Rights  previously granted. ARTICLE VIII RESTRICTED STOCK AWARDS 8.1    Award. A Restricted Stock Award shall constitute an Award of Shares to the Holder as of the date of the Award  which are subject to a “substantial risk of forfeiture” as defined under Section 83 of the Code during the specified Restriction  Period. At the time a Restricted Stock Award is made, the Committee shall establish the Restriction Period applicable to such  Award. Each Restricted Stock Award may have a different Restriction Period, in the discretion of the Committee. The  Restriction Period applicable to a particular Restricted Stock Award shall not be changed except as permitted by Section 8.2. 8.2    Terms and Conditions. At the time any Award is made under this Article VIII, the Company and the Holder shall  enter into a Restricted Stock Agreement setting forth each of the matters contemplated thereby and such other matters as the  Committee may determine to be appropriate. Shares awarded pursuant to a Restricted Stock Award shall be represented by a  share certificate registered in the name of the Holder of such Restricted Stock Award. If provided for under the Restricted Stock  Agreement, the Holder shall have the right to vote Shares subject thereto and to enjoy all other stockholder rights, including the  entitlement to receive dividends on the Shares during the Restriction Period provided that such dividends will be only paid (if at  all) to the Holder upon the vesting of the underlying Shares except that (i) the Holder shall not be entitled to delivery of the  share certificate until the Restriction Period shall have expired, (ii) the Company shall retain custody of the share certificate  during the Restriction Period (with a share power endorsed by the Holder in blank), (iii) the Holder may not sell, transfer,  pledge, exchange, hypothecate or otherwise dispose of the Shares during the Restriction Period and (iv) a breach of the terms  and conditions established by the Committee pursuant to the Restricted Stock Agreement shall cause a forfeiture of the  Restricted Stock Award (along with any unpaid dividends on such unvested Shares). At the time of such Award, the Committee  may, in its sole discretion, prescribe additional terms and conditions or restrictions relating to Restricted Stock Awards,  including, but not limited to, rules pertaining to the effect of Termination of Service prior to expiration of the Restriction  Period. Such additional terms, conditions or restrictions shall, to the extent inconsistent with the provisions of Sections 6.2, 6.3  and 6.4, as applicable, be set forth in a Restricted Stock Agreement made in conjunction with the Award. Such Restricted Stock  Agreement may also include provisions relating to: (a) subject to the provisions hereof, accelerated vesting of Awards, and (b)  any other matters not inconsistent with the terms and provisions of the Plan that the Committee shall in its sole discretion  determine. The terms and conditions of the respective Restricted Stock Agreements need not be identical. All Shares delivered  A-8 

 

to a Holder as part of a Restricted Stock Award shall be delivered and reported by the Company or the Affiliate, as applicable,  to the Holder at the time of vesting.  8.3    Payment for Restricted Stock. The Committee shall determine the amount and form of any payment from a Holder  for Shares received pursuant to a Restricted Stock Award, if any, provided that in the absence of such a determination, a Holder  shall not be required to make any payment for Shares received pursuant to a Restricted Stock Award, except to the extent  otherwise required by law. ARTICLE IX UNRESTRICTED STOCK AWARDS 9.1    Award. Shares may be awarded (or sold) to Employees, Directors or Consultants under the Plan which are not  subject to Restrictions of any kind, in consideration for past services rendered thereby to the Company or an Affiliate or for  other valid consideration.  9.2    Terms and Conditions.  At the time any Award is made under this Article IX, the Company and the Holder shall  enter into an Unrestricted Stock Agreement setting forth each of the matters contemplated hereby and such other matters as the  Committee may determine to be appropriate. 9.3    Payment for Unrestricted Stock. The Committee shall determine the amount and form of any payment from a  Holder for Shares received pursuant to an Unrestricted Stock Award, if any, provided that in the absence of such a  determination, a Holder shall not be required to make any payment for Shares received pursuant to an Unrestricted Stock  Award, except to the extent otherwise required by law. ARTICLE X RESTRICTED STOCK UNIT AWARDS 10.1    Award. A Restricted Stock Unit Award shall constitute a promise to grant Shares (or cash equal to the Fair Market  Value of Shares) to the Holder at the end of a specified Restriction Period. At the time a Restricted Stock Unit Award is made,  the Committee shall establish the Restriction Period applicable to such Award. Each Restricted Stock Unit Award may have a  different Restriction Period, in the discretion of the Committee. A Restricted Stock Unit shall not constitute an equity interest in  the Company and shall not entitle the Holder to voting rights, dividends or any other rights associated with ownership of Shares  prior to the time the Holder shall receive a distribution of Shares pursuant to Section 10.3. 10.2    Terms and Conditions. At the time any Award is made under this Article X, the Company and the Holder shall  enter into a Restricted Stock Unit Agreement setting forth each of the matters contemplated thereby and such other matters as  the Committee may determine to be appropriate. The Restricted Stock Unit Agreement shall set forth the individual service- based vesting requirement which the Holder would be required to satisfy before the Holder would become entitled to  distribution pursuant to Section 10.3 and the number of Units awarded to the Holder. Such conditions shall be sufficient to  constitute a “substantial risk of forfeiture” as such term is defined under Section 409A of the Code. At the time of such Award,  the Committee may, in its sole discretion, prescribe additional terms and conditions or restrictions relating to Restricted Stock  Unit Awards in the Restricted Stock Unit Agreement, including, but not limited to, rules pertaining to the effect of Termination  of Service prior to expiration of the applicable vesting period. The terms and conditions of the respective Restricted Stock Unit  Agreements need not be identical. 10.3    Distributions of Shares. The Holder of a Restricted Stock Unit shall be entitled to receive a cash payment equal to  the Fair Market Value of a Share, or one Share, as determined in the sole discretion of the Committee and as set forth in the  Restricted Stock Unit Agreement, for each Restricted Stock Unit subject to such Restricted Stock Unit Award, if the Holder  satisfies the applicable vesting requirement. Such distribution shall be made no later than by the fifteenth (15th) day of the third  (3rd) calendar month next following the end of the calendar year in which the Restricted Stock Unit first becomes vested (i.e.,  no longer subject to a “substantial risk of forfeiture”). ARTICLE XI PERFORMANCE UNIT AWARDS 11.1    Award. A Performance Unit Award shall constitute an Award under which, upon the satisfaction of predetermined  individual and/or Company (and/or Affiliate) Performance Goals based on selected Performance Criteria, a cash payment shall  be made to the Holder, based on the number of Units awarded to the Holder. At the time a Performance Unit Award is made,  the Committee shall establish the Performance Period and applicable Performance Goals. Each Performance Unit Award may  have different Performance Goals, in the discretion of the Committee. A Performance Unit Award shall not constitute an equity  interest in the Company and shall not entitle the Holder to voting rights, dividends or any other rights associated with  ownership of Shares. A-9 

 

11.2    Terms and Conditions. At the time any Award is made under this Article XI, the Company and the Holder shall  enter into a Performance Unit Agreement setting forth each of the matters contemplated thereby and such other matters as the  Committee may determine to be appropriate. The Committee shall set forth in the applicable Performance Unit Agreement the  Performance Period, Performance Criteria and Performance Goals which the Holder and/or the Company would be required to  satisfy before the Holder would become entitled to payment pursuant to Section 11.3, the number of Units awarded to the  Holder and the dollar value or formula assigned to each such Unit. Such payment shall be subject to a “substantial risk of  forfeiture” under Section 409A of the Code. At the time of such Award, the Committee may, in its sole discretion, prescribe  additional terms and conditions or restrictions relating to Performance Unit Awards, including, but not limited to, rules  pertaining to the effect of Termination of Service prior to expiration of the applicable performance period. The terms and  conditions of the respective Performance Unit Agreements need not be identical. 11.3    Payments. The Holder of a Performance Unit shall be entitled to receive a cash payment equal to the dollar value  assigned to such Unit under the applicable Performance Unit Agreement if the Holder and/or the Company satisfy (or partially  satisfy, if applicable under the applicable Performance Unit Agreement) the Performance Goals set forth in such Performance  Unit Agreement. If necessary to satisfy the requirements of Code Section 162(m) as in effect on the Effective Date, if  applicable, the achievement of such Performance Goals shall be certified in writing by the Committee prior to any payment. All  payments shall be made no later than by the fifteenth (15th) day of the third (3rd) calendar month next following the end of the  Company’s fiscal year to which such performance goals and objectives relate (i.e., no longer subject to a “substantial risk of  forfeiture”). ARTICLE XII PERFORMANCE STOCK AWARDS 12.1    Award. A Performance Stock Award shall constitute a promise to grant Shares (or cash equal to the Fair Market  Value of Shares) to the Holder at the end of a specified Performance Period subject to achievement of specified Performance  Goals. At the time a Performance Stock Award is made, the Committee shall establish the Performance Period and applicable  Performance Goals based on selected Performance Criteria. Each Performance Stock Award may have different Performance  Goals, in the discretion of the Committee. A Performance Stock Award shall not constitute an equity interest in the Company  and shall not entitle the Holder to voting rights, dividends or any other rights associated with ownership of Shares unless and  until the Holder shall receive a distribution of Shares pursuant to Section 12.3. 12.2    Terms and Conditions. At the time any Award is made under this Article XII, the Company and the Holder shall  enter into a Performance Stock Agreement setting forth each of the matters contemplated thereby and such other matters as the  Committee may determine to be appropriate. The Committee shall set forth in the applicable Performance Stock Agreement the  Performance Period, selected Performance Criteria and Performance Goals which the Holder and/or the Company would be  required to satisfy before the Holder would become entitled to the receipt of Shares pursuant to such Holder’s Performance  Stock Award and the number of Shares subject to such Performance Stock Award. Such distribution shall be subject to a  “substantial risk of forfeiture” under Section 409A of the Code. At the time of such Award, the Committee may, in its sole  discretion, prescribe additional terms and conditions or restrictions relating to Performance Stock Awards, including, but not  limited to, rules pertaining to the effect of the Holder’s Termination of Service prior to the expiration of the applicable  performance period. The terms and conditions of the respective Performance Stock Agreements need not be identical. 12.3    Distributions of Shares or Payment of Cash. The Holder of a Performance Stock Award shall be entitled to receive  a cash payment equal to the Fair Market Value of a Share, or one Share, as determined in the sole discretion of the Committee,  for each Performance Stock Award subject to such Performance Stock Agreement, if the Holder satisfies the applicable vesting  requirement. If necessary to satisfy the requirements of Code Section 162(m) as in effect on the Effective Date, if applicable,  the achievement of such Performance Goals shall be certified in writing by the Committee prior to any payment. Such  distribution shall be made no later than by the fifteenth (15th) day of the third (3rd) calendar month next following the end of  the Company’s fiscal year to which such performance goals and objectives relate (i.e., no longer subject to a “substantial risk of  forfeiture”). ARTICLE XIII DISTRIBUTION EQUIVALENT RIGHTS 13.1    Award. A Distribution Equivalent Right shall entitle the Holder to receive bookkeeping credits, cash payments  and/or Share distributions equal in amount to the distributions that would have been made to the Holder had the Holder held a  specified number of Shares during the specified period of the Award.  13.2    Terms and Conditions. At the time any Award is made under this Article XIII, the Company and the Holder shall  enter into a Distribution Equivalent Rights Award Agreement setting forth each of the matters contemplated thereby and such  other matters as the Committee may determine to be appropriate. The Committee shall set forth in the applicable Distribution  Equivalent Rights Award Agreement the terms and conditions, if any, including whether the Holder is to receive credits  A-10 

 

currently in cash, is to have such credits reinvested (at Fair Market Value determined as of the date of reinvestment) in  additional Shares or is to be entitled to choose among such alternatives. Such receipt shall be subject to a “substantial risk of  forfeiture” under Section 409A of the Code and, if such Award becomes vested, the distribution of such cash or Shares shall be  made no later than by the fifteenth (15th) day of the third (3rd) calendar month next following the end of the Company’s fiscal  year in which the Holder’s interest in the Award vests (i.e., no longer subject to a “substantial risk of forfeiture”). Distribution  Equivalent Rights Awards may be settled in cash or in Shares, as set forth in the applicable Distribution Equivalent Rights  Award Agreement. A Distribution Equivalent Rights Award may, but need not be, awarded in tandem with another Award  (other than an Option or a SAR), whereby, if so awarded, such Distribution Equivalent Rights Award shall expire, terminate or  be forfeited by the Holder, as applicable, under the same conditions as under such other Award.  13.3    Interest Equivalents. The Distribution Equivalent Rights Award Agreement for a Distribution Equivalent Rights  Award may provide for the crediting of interest on a Distribution Rights Award to be settled in cash at a future date (but in no  event later than by the fifteenth (15th) day of the third (3rd) calendar month next following the end of the Company’s fiscal year  in which such interest is credited and vested (i.e., no longer subject to a “substantial risk of forfeiture”)), at a rate set forth in the  applicable Distribution Equivalent Rights Award Agreement, on the amount of cash payable thereunder. ARTICLE XIV STOCK APPRECIATION RIGHTS 14.1    Award. A Stock Appreciation Right shall constitute a right, granted alone or in connection with a related Option,  to receive a payment equal to the increase in value of a specified number of Shares between the date of Award and the date of  exercise. 14.2    Terms and Conditions. At the time any Award is made under this Article XIV, the Company and the Holder shall  enter into a Stock Appreciation Right Agreement setting forth each of the matters contemplated thereby and such other matters  as the Committee may determine to be appropriate. The Committee shall set forth in the applicable Stock Appreciation Right  Agreement the terms and conditions of the Stock Appreciation Right, including (i) the base value (the “Base Value”) for the  Stock Appreciation Right, which shall be not less than the Fair Market Value of a Share on the date of grant of the Stock  Appreciation Right, (ii) the number of Shares subject to the Stock Appreciation Right, (iii) the period during which the Stock  Appreciation Right may be exercised; provided, however, that no Stock Appreciation Right shall be exercisable after the  expiration of ten (10) years from the date of its grant, and (iv) any other special rules and/or requirements which the Committee  imposes upon the Stock Appreciation Right. Upon the exercise of some or all of the portion of a Stock Appreciation Right, the  Holder shall receive a payment from the Company, in cash or in the form of Shares having an equivalent Fair Market Value or  in a combination of both, as determined in the sole discretion of the Committee, equal to the product of: (a)    The excess of (i) the Fair Market Value of a Share on the date of exercise, over (ii) the Base Value, multiplied by, (b)    The number of Shares with respect to which the Stock Appreciation Right is exercised. 14.3    Tandem Stock Appreciation Rights. If the Committee grants a Stock Appreciation Right which is intended to be a  Tandem Stock Appreciation Right, the Tandem Stock Appreciation Right shall be granted at the same time as the related  Option, and the following special rules shall apply: (a)    The Base Value shall be equal to or greater than the per Share exercise price under the related Option; (b)    The Tandem Stock Appreciation Right may be exercised for all or part of the Shares which are subject to the related  Option, but solely upon the surrender by the Holder of the Holder’s right to exercise the equivalent portion of the related Option  (and when a Share is purchased under the related Option, an equivalent portion of the related Tandem Stock Appreciation Right  shall be canceled);  (c)    The Tandem Stock Appreciation Right shall expire no later than the date of the expiration of the related Option; (d)    The value of the payment with respect to the Tandem Stock Appreciation Right may be no more than one hundred  percent (100%) of the difference between the per Share exercise price under the related Option and the Fair Market Value of the  Shares subject to the related Option at the time the Tandem Stock Appreciation Right is exercised, multiplied by the number of  the Shares with respect to which the Tandem Stock Appreciation Right is exercised; and (e)    The Tandem Stock Appreciation Right may be exercised solely when the Fair Market Value of the Shares subject to  the related Option exceeds the per Share exercise price under the related Option. ARTICLE XV RECAPITALIZATION OR REORGANIZATION 15.1    Adjustments to Shares. The shares with respect to which Awards may be granted under the Plan are Shares as  presently constituted; provided, however, that if, and whenever, prior to the expiration or distribution to the Holder of Shares  A-11 

 

underlying an Award theretofore granted, the Company shall effect a subdivision or consolidation of the Shares or the payment  of a Share dividend on Shares without receipt of consideration by the Company, the number of Shares with respect to which  such Award may thereafter be exercised or satisfied, as applicable, (i) in the event of an increase in the number of outstanding  Shares, shall be proportionately increased, and the purchase price per Share shall be proportionately reduced, and (ii) in the  event of a reduction in the number of outstanding Shares, shall be proportionately reduced, and the purchase price per Share  shall be proportionately increased. Notwithstanding the foregoing or any other provision of this Article XV, any adjustment  made with respect to an Award (x) which is an Incentive Stock Option, shall comply with the requirements of Section 424 of  the Code, and in no event shall any adjustment be made which would render any Incentive Stock Option granted under the Plan  to be other than an “incentive stock option” for purposes of Section 422 of the Code, and (y) which is a Non-qualified Stock  Option (or Stock Appreciation Right), shall comply with the requirements of Section 409A of the Code, and in no event shall  any adjustment be made which would render any Non-qualified Stock Option (or Stock Appreciation Right) granted under the  Plan to become subject to Section 409A of the Code. 15.2    Recapitalization. If the Company recapitalizes or otherwise changes its capital structure, thereafter upon any  exercise or satisfaction, as applicable, of a previously granted Award, the Holder shall be entitled to receive (or entitled to  purchase, if applicable) under such Award, in lieu of the number of Shares then covered by such Award, the number and class  of shares and securities to which the Holder would have been entitled pursuant to the terms of the recapitalization if,  immediately prior to such recapitalization, the Holder had been the holder of record of the number of Shares then covered by  such Award. 15.3    Other Events. In the event of changes to the outstanding Shares by reason of an extraordinary cash dividend,  reorganization, merger, consolidation, combination, split‐up, spin‐off, exchange or other relevant change in capitalization  occurring after the date of the grant of any Award and not otherwise provided for under this Article XV, any outstanding  Awards and any Award Agreements evidencing such Awards shall be adjusted by the Board in its discretion in such manner as  the Board shall deem equitable or appropriate taking into consideration the applicable accounting and tax consequences, as to  the number and price of Shares or other consideration subject to such Awards. In the event of any adjustment pursuant to  Sections 15.1, 15.2 or this Section 15.3, the aggregate number of Shares available under the Plan pursuant to Section 5.1 (and  the Code Section 162(m) limit set forth therein) may be appropriately adjusted by the Board, the determination of which shall  be conclusive. In addition, the Committee may make provision for a cash payment to a Holder or a person who has an  outstanding Award. The number of Shares subject to any Award shall be rounded to the nearest whole number.  15.4    Powers Not Affected. The existence of the Plan and the Awards granted hereunder shall not affect in any way the  right or power of the Board or of the stockholders of the Company to make or authorize any adjustment, recapitalization,  reorganization or other change of the Company’s capital structure or business, any merger or consolidation of the Company,  any issue of debt or equity securities ahead of or affecting Shares or the rights thereof, the dissolution or liquidation of the  Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act  or proceeding. 15.5    No Adjustment for Certain Awards. Except as hereinabove expressly provided, the issuance by the Company of  shares of any class or securities convertible into shares of any class, for cash, property, labor or services, upon direct sale, upon  the exercise of rights or warrants to subscribe therefor or upon conversion of shares or obligations of the Company convertible  into such shares or other securities, and in any case whether or not for fair value, shall not affect previously granted Awards,  and no adjustment by reason thereof shall be made with respect to the number of Shares subject to Awards theretofore granted  or the purchase price per Share, if applicable. 15.6   Effect of Change of Control. In the event that there is a Change of Control and/or the Company is a party to a  merger or acquisition or reorganization or similar transaction, outstanding Awards shall be subject to the merger agreement or  other applicable transaction agreement. Such agreement may provide, without limitation, that subject to the consummation of  the applicable transaction, for the assumption (or substitution) of outstanding Awards by the surviving entity or its parent, for  their continuation by the Company (if the Company is a surviving corporation), or for their cancellation either with or without  consideration, in all cases without the consent of the Holder and outstanding Awards need not be uniformly treated. ARTICLE XVI AMENDMENT AND TERMINATION OF PLAN The Plan shall continue in effect, unless sooner terminated pursuant to this Article XVI, until September 5, 2026.  The  Board in its discretion may terminate the Plan at any time with respect to any Shares for which Awards have not theretofore  been granted; provided, however, that the Plan’s termination shall not materially and adversely impair the rights of a Holder  with respect to any Award theretofore granted without the consent of the Holder. The Board shall have the right to alter or  amend the Plan or any part hereof from time to time; provided, however, that without the approval by a majority of the votes  cast at a meeting of stockholders at which a quorum representing a majority of the shares of the Company entitled to vote  generally in the election of directors is present in person or by proxy, no amendment or modification of the Plan may (i)  A-12 

 

materially increase the benefits accruing to Holders, (ii) except as otherwise expressly provided in Article XV, increase the  number of Shares subject to the Plan or the individual Award Agreements specified in Article V, (iii) materially modify the  requirements for participation in the Plan, or (iv) amend, modify or suspend Section 7.8 (re-pricing prohibitions) or this Article  XVI. In addition, no change in any Award theretofore granted may be made which would materially and adversely impair the  rights of a Holder with respect to such Award without the consent of the Holder (unless such change is required in order to  cause the benefits under the Plan to qualify as “performance-based” compensation within the meaning of Section 162(m) of the  Code as in effect at the time of such Award, or to exempt the Plan or any Award from Section 409A of the Code). ARTICLE XVII MISCELLANEOUS 17.1    No Right to Award. Neither the adoption of the Plan by the Company nor any action of the Board or the  Committee shall be deemed to give an Employee, Director or Consultant any right to an Award except as may be evidenced by  an Award Agreement duly executed on behalf of the Company, and then solely to the extent and on the terms and conditions  expressly set forth therein. 17.2    No Rights Conferred. Nothing contained in the Plan shall (i) confer upon any Employee any right with respect to  continuation of employment with the Company or any Affiliate, (ii) interfere in any way with any right of the Company or any  Affiliate to terminate the employment of an Employee at any time, (iii) confer upon any Director any right with respect to  continuation of such Director’s membership on the Board, (iv) interfere in any way with any right of the Company or an  Affiliate to terminate a Director’s membership on the Board at any time, (v) confer upon any Consultant any right with respect  to continuation of his or her consulting engagement with the Company or any Affiliate, or (vi) interfere in any way with any  right of the Company or an Affiliate to terminate a Consultant’s consulting engagement with the Company or an Affiliate at any  time. 17.3    Other Laws; No Fractional Shares; Withholding. The Company shall not be obligated by virtue of any provision of  the Plan to recognize the exercise of any Award or to otherwise sell or issue Shares in violation of any laws, rules or  regulations, and any postponement of the exercise or settlement of any Award under this provision shall not extend the term of  such Award. Neither the Company nor its directors or officers shall have any obligation or liability to a Holder with respect to  any Award (or Shares issuable thereunder) (i) that shall lapse because of such postponement, or (ii) for any failure to comply  with the requirements of any applicable law, rules or regulations, including but not limited to any failure to comply with the  requirements of Section 409A of this Code. No fractional Shares shall be delivered, nor shall any cash in lieu of fractional  Shares be paid. The Company shall have the right to deduct in cash (whether under this Plan or otherwise) in connection with  all Awards any taxes required by law to be withheld and to require any payments required to enable it to satisfy its withholding  obligations. In the case of any Award satisfied in the form of Shares, no Shares shall be issued unless and until arrangements  satisfactory to the Company shall have been made to satisfy any tax withholding obligations applicable with respect to such  Award. Subject to such terms and conditions as the Committee may impose, the Company shall have the right to retain, or the  Committee may, subject to such terms and conditions as it may establish from time to time, permit Holders to elect to tender,  Shares (including Shares issuable in respect of an Award) to satisfy, in whole or in part, the amount required to be withheld. 17.4    No Restriction on Corporate Action. Nothing contained in the Plan shall be construed to prevent the Company or  any Affiliate from taking any corporate action which is deemed by the Company or such Affiliate to be appropriate or in its best  interest, whether or not such action would have an adverse effect on the Plan or any Award made under the Plan. No Employee,  Director, Consultant, beneficiary or other person shall have any claim against the Company or any Affiliate as a result of any  such action. 17.5    Restrictions on Transfer. No Award under the Plan or any Award Agreement and no rights or interests herein or  therein, shall or may be assigned, transferred, sold, exchanged, encumbered, pledged or otherwise hypothecated or disposed of  by a Holder except (i) by will or by the laws of descent and distribution, or (ii) where permitted under applicable tax rules, by  gift to any Family Member of the Holder, subject to compliance with applicable laws. An Award may be exercisable during the  lifetime of the Holder only by such Holder or by the Holder’s guardian or legal representative unless it has been transferred by  gift to a Family Member of the Holder, in which case it shall be exercisable solely by such transferee. Notwithstanding any  such transfer, the Holder shall continue to be subject to the withholding requirements provided for under Section 17.3 hereof. 17.6    Beneficiary Designations. Each Holder may, from time to time, name a beneficiary or beneficiaries (who may be  contingent or successive beneficiaries) for purposes of receiving any amount which is payable in connection with an Award  under the Plan upon or subsequent to the Holder’s death. Each such beneficiary designation shall serve to revoke all prior  beneficiary designations, be in a form prescribed by the Company and be effective solely when filed by the Holder in writing  with the Company during the Holder’s lifetime. In the absence of any such written beneficiary designation, for purposes of the  Plan, a Holder’s beneficiary shall be the Holder’s estate. A-13 

 

17.7    Rule 16b-3. It is intended that the Plan and any Award made to a person subject to Section 16 of the Exchange Act  shall meet all of the requirements of Rule 16b-3 so that the issuance of such Awards is exempt from Exchange Act Section  16(b) liability. If any provision of the Plan or of any such Award would disqualify the Plan or such Award under, or would  otherwise not comply with the requirements of, Rule 16b-3, such provision or Award shall be construed or deemed to have been  amended as necessary to conform to the requirements of Rule 16b-3. 17.8    Section 162(m). The following conditions shall apply if it is intended that the requirements of Section 162(m) of  the Code, as in effect on the date of any Award, be satisfied such that such Awards which were made to Holders who were  “covered employees” (as such term was defined in Section 162(m) of the Code at the time of such Award) shall continue to  constitute “performance-based” compensation within the meaning of Section 162(m) as then in effect.  Any Performance  Goal(s) applicable to Qualified Performance-Based Awards shall be objective, shall be established not later than ninety (90)  days after the beginning of any applicable Performance Period (or at such other date as may be required or permitted for  “performance-based” compensation under Section 162(m) of the Code in effect at the time of the Award) and shall otherwise  meet the requirements of Section 162(m) of the Code as in effect at the time of the Award, including the requirement that the  outcome of the Performance Goal or Goals be substantially uncertain (as defined in the regulations under Section 162(m) of the  Code in effect at the time of the Award) at the time established. The Performance Criteria to be utilized under the Plan to  establish Performance Goals shall consist of objective tests based on one or more of the following: earnings or earnings per  share, cash flow or cash flow per share, operating cash flow or operating cash flow per share revenue growth, product revenue  growth, financial return ratios (such as return on equity, return on investment and/or return on assets), share price performance,  stockholder return, equity and/or value, operating income, operating margins, earnings before interest, taxes, depreciation and  amortization, earnings, pre‐ or post‐tax income, economic value added (or an equivalent metric), profit returns and margins,  credit quality, sales growth, market share, working capital levels, comparisons with various share market indices, year-end cash,  debt reduction, assets under management, operating efficiencies, strategic partnerships or transactions (including co- development, co-marketing, profit sharing, joint venture or other similar arrangements), and/or financing and other capital  raising transaction. Performance criteria may be established on a Company-wide basis or with respect to one or more Company  business units or divisions or subsidiaries; and either in absolute terms, relative to the performance of one or more similarly  situated companies, or relative to the performance of an index covering a peer group of companies. When establishing  Performance Goals for the applicable Performance Period, the Committee may exclude any or all “extraordinary items” as  determined under U.S. generally accepted accounting principles including, without limitation, the charges or costs associated  with restructurings of the Company, discontinued operations, other unusual or non-recurring items, and the cumulative effects  of accounting changes, and as identified in the Company’s financial statements, notes to the Company’s financial statements or  management’s discussion and analysis of financial condition and results of operations contained in the Company’s most recent  annual report filed with the U.S. Securities and Exchange Commission pursuant to the Exchange Act. Holders who are  “covered employees” (as defined in Section 162(m) of the Code in effect on the Effective Date) shall be eligible to receive  payment under a Qualified Performance-Based Award which is subject to achievement of a Performance Goal or Goals only if  the applicable Performance Goal or Goals are achieved within the applicable Performance Period, as determined by the  Committee. If any provision of the Plan would disqualify the Plan or would not otherwise permit the Plan to comply with  Section 162(m) of the Code with respect to any Award that previously complied with Section 162(m) as in effect at the time of  such Award, then such provision shall, to the extent practicable, be construed or deemed amended to conform to the  requirements or provisions of Section 162(m) of the Code as then in effect. The Committee may postpone the exercising of  Awards, the issuance or delivery of Shares under any Award or any action permitted under the Plan to prevent the Company or  any subsidiary from being denied a federal income tax deduction, provided that such deferral satisfies the requirements of  Section 409A of the Code. For purposes of the requirements of Treasury Regulation Section 1.162-27(e)(4)(i) as in effect on the  Effective Date, the maximum aggregate amount that may be paid in cash during any calendar year to any one person (measured  from the date of any payment) with respect to one or more Awards payable in cash shall be Three Million Dollars ($3,000,000).  Such amount would act as a limit on cash payments made under Performance Unit Awards or Performance Stock Unit Awards,  but would not apply to other types of awards, such as Restricted Stock Awards or Options. 17.9    Section 409A. Notwithstanding any other provision of the Plan, the Committee shall have no authority to issue an  Award under the Plan with terms and/or conditions which would cause such Award to constitute non-qualified “deferred  compensation” under Section 409A of the Code unless such Award shall be structured to be exempt from or comply with all  requirements of Code Section 409A. The Plan and all Award Agreements are intended to comply with the requirements of  Section 409A of the Code (or to be exempt therefrom) and shall be so interpreted and construed and no amount shall be paid or  distributed from the Plan unless and until such payment complies with all requirements of Code Section 409A. It is the intent of  the Company that the provisions of this Agreement and all other plans and programs sponsored by the Company be interpreted  to comply in all respects with Code Section 409A, however, the Company shall have no liability to the Holder, or any successor  or beneficiary thereof, in the event taxes, penalties, excise taxes and/or interest may ultimately be determined to be applicable to  any payment or benefit received by the Holder or any successor or beneficiary thereof.  A-14 

 

17.10    Indemnification. Each person who is or shall have been a member of the Committee or of the Board shall be  indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon  or reasonably incurred thereby in connection with or resulting from any claim, action, suit, or proceeding to which such person  may be made a party or may be involved by reason of any action taken or failure to act under the Plan and against and from any  and all amounts paid thereby in settlement thereof, with the Company’s approval, or paid thereby in satisfaction of any  judgment in any such action, suit, or proceeding against such person; provided, however, that such person shall give the  Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it  on his or her own behalf. The foregoing right of indemnification shall not be exclusive and shall be independent of any other  rights of indemnification to which such persons may be entitled under the Company’s Certificate of Incorporation or By-laws,  by contract, as a matter of law, or otherwise. 17.11    Other Benefit Plans. No Award, payment or amount received hereunder shall be taken into account in computing  an Employee’s salary or compensation for the purposes of determining any benefits under any pension, retirement, life  insurance or other benefit plan of the Company or any Affiliate, unless such other plan specifically provides for the inclusion of  such Award, payment or amount received. Nothing in the Plan shall be construed to limit the right of the Company to establish  other plans or to pay compensation to its employees, in cash or property, in a manner which is not expressly authorized under  the Plan. 17.12    Limits of Liability. Any liability of the Company with respect to an Award shall be based solely upon the  contractual obligations created under the Plan and the Award Agreement. None of the Company, any member of the Board nor  any member of the Committee shall have any liability to any party for any action taken or not taken, in good faith, in  connection with or under the Plan. 17.13    Governing Law. Except as otherwise provided herein, the Plan shall be construed in accordance with the laws of  the State of Delaware, without regard to principles of conflicts of law. 17.14    Severability of Provisions. If any provision of the Plan is held invalid or unenforceable, such invalidity or  unenforceability shall not affect any other provision of the Plan, and the Plan shall be construed and enforced as if such invalid  or unenforceable provision had not been included in the Plan. 17.15    No Funding. The Plan shall be unfunded. The Company shall not be required to establish any special or separate  fund or to make any other segregation of funds or assets to ensure the payment of any Award. Prior to receipt of Shares or a  cash distribution pursuant to the terms of an Award, such Award shall represent an unfunded unsecured contractual obligation  of the Company and the Holder shall have no greater claim to the Shares underlying such Award or any other assets of the  Company or Affiliate than any other unsecured general creditor. 17.16    Headings. Headings used throughout the Plan are for convenience only and shall not be given legal significance. 17.17  Minimum Vesting.  Notwithstanding anything to the contrary, with respect to at least 95% of the Shares  underlying all Awards granted under the Plan after August 31, 2021, such Awards shall have a minimum vesting period for  every portion of the Award of at least one year after the Award’s date of grant.  This minimum vesting requirement for such  covered Awards may not be superseded by an individual Award agreement or other agreement. 17.18  Dividends/Dividend Equivalents.  For all Awards, no payment of dividends (or dividend equivalents) shall be  made with respect to any unvested Awards.  Dividends (and dividend equivalents) shall only be paid to a Participant to the  extent that the underlying Award to which the dividends/dividend equivalents are attached becomes vested.  For avoidance of  doubt, accrual of dividends (and dividend equivalents) while the underlying Award is unvested and which are payable upon  vesting is permitted to the extent provided under this Plan or Award Agreement. 17.19  Acceleration of Vesting Permitted Only in Limited Circumstances.  The Committee and any Award Agreement  may provide for accelerated vesting of an Award only (i) in the event of a Participant’s death or (ii) in the event of a  Participant’s Total and Permanent Disability, or (iii) if a Change of Control occurs and there is no assumption, substitution or  continuation of Awards, then the Committee in its discretion may provide that some or all Awards shall vest and become  exercisable as of immediately before such Change of Control. Additionally, the Committee may also in its discretion include in  an Award Agreement that accelerated vesting of an Award will be provided if the Participant’s Termination of Service is  effected without Cause by the Company (or its acquirer) within a specified period of time before, on or after a Change of  Control. For avoidance of doubt, (a) “substitution” includes, without limitation, an Award being replaced by a cash award that  provides an equivalent intrinsic value (wherein intrinsic value equals the difference between the market value of a share and any  exercise price) and (b) this Section 17.19 shall not modify any accelerated vesting provisions approved by the Committee or the  Board on or before August 31, 2021, relating to any Award outstanding as of August 31, 2021. A-15Exhibit 10.3

 

EXCLUSIVE SERVICE AGREEMENT

 

BETWEEN

 

XINJIANG UNITED FAMILY TRADING CO., LTD

 

AND

 

[NAME OF OPERATOR]

 

ON

 

[NAME OF BAKERY]

 

[Date of Agreement]

 

     

     

    

 

EXCLUSIVE SERVICE AGREEMENT

 

This EXCLUSIVE SERVICE AGREEMENT (this “AGREEMENT”)
is entered into as of [Date of Agreement](“SIGNING DATE”) in Urumqi, Xinjiang, the People’s Republic of
China (“CHINA” or the “PRC”) by and between the following two Parties:

 

(1) XINJIANG UNITED FAMILY TRADING CO., LTD (“XINJIANG
UNITED FAMILY”), a limited liability company legally established under the laws of the PRC,

REGISTERED ADDRESS: No. 26 Culture Road, Tianshan District, Urumqi,
Xinjiang, China,

UNIFIED SOCIAL CREDIT CODE:[*].

 

(2) [Name of Operator] (“Operator”), a Chinese
citizen, and the operator of [Name of Bakery]

IDENTITY CARD NUMBER: [ID Card No. of Operator]

 

(In this Agreement, Xinjiang United Family and Operator shall hereinafter
be referred to as a “PARTY” individually, and collectively “PARTIES”.)

 

WHEREAS:

 

1. Xinjiang United Family is a limited liability company legally
established and validly existing in China that mainly engages in management and consulting, and it provides management and consulting
services;

 

2. [Name of Bakery] (“Bakery”)is an individually-owned
business legally established and validly existing in China that is mainly engaged in retailing the prepackaged food and bulk food
with relevant authorization and with a food business permit, and [Name of Operator] is the sole operator of Bakery;

 

3. As agreed by the Parties, Operator expects that Xinjiang United
Family will provide Operator with bakery advisory services, as well as other services in relation to the operation of bakery.

 

The Parties sign this Agreement to confirm the provisions and conditions.
Whereas, Xinjiang United Family would provide Bakery with consulting and other relevant services:

 

ARTICLE 1 - DEFINITION AND INTERPRETATION

 

1.1 Unless to be otherwise interpreted by the terms or in the context
herein, the following terms in this Agreement shall be interpreted to have the following meanings:

 

“BAKERY” means [Name of Bakery], an individually-owned
business legally established and validly existing in China, whose sole operator is [Name of Operator], registered address is [Address
of Bakery], and unified social code is [Unified Social Code of Bakery].

 

“BAKERY BUSINESS” means all the business actions legally
performed by Bakery, currently or at any time during term of validity of this Agreement;

 

“SERVICE” means the services in relation and exclusively
provided to Bakery within the approved business scope of Xinjiang United Family, as stipulated by Article 2.3 of this Agreement;

 

“SERVICE FEES” means the fees for services charged by
Xinjiang United Family, as stipulated by Article 3.1 of this Agreement;

 

“CHINA” or the “PRC” means the People’s
Republic of China (excluding Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Region);

 

1.2 References in this Agreement to any laws and regulations (the
“LAWS”) shall include reference:

 

(1) at the same time to the amendments,
changes, supplements and reformulations of such Laws, whether or not the effectiveness of the same is prior to or after the execution
of this Agreement; and

(2) at the same time to other
decisions, notices and rules formulated or becoming effective according to such Laws.

 

    2 

     

    

 

1.3 Unless otherwise specified in the context of this Agreement,
the Article, sub-article, section or paragraph mentioned herein shall refer to the corresponding content in this Agreement accordingly.

 

ARTICLE 2 - SERVICES

 

2.1 During the term of validity of this Agreement, Operator exclusively
entrusts management and consulting services to Xinjiang United Family, agrees to irrevocably entrust the right of management and
operations of Bakery to Xinjiang United Family. Xinjiang United Family shall provide the aforesaid services diligently, in accordance
with the business requirements and specific requests at any time from Bakery.

 

2.2 The purpose of the entrusted operation is that Xinjiang United
Family shall be in charge of the normal operations of Bakery, and provide full managements to Bakery’s operation.

 

2.3 The contents of the entrusted operation shall include but not
be limited to the following:

 

(1) Xinjiang United Family shall be in charge of all aspects
of Bakery’s operation; engage Bakery’s management staff and decide their remuneration;

 

(2) Xinjiang United Family shall control and manage all
the matters of Bakery, including but not limited to internal financial management, day-to-day operation, external contract execution
and performance, tax filing and payment, and change of rights and personnel;

 

(3) Xinjiang United Family shall manage and control all
the funds of Bakery, including but not limited to current working capital, recovered account receivables, and the payment of all
account payables and operation expenses, employee salaries and asset purchases. The accounts of Bakery shall be managed solely
by Xinjiang United Family;

 

(4) Xinjiang United Family shall enjoy all the other responsibilities
and rights enjoyed by Bakery’s operator in accordance with the applicable law, including but not limited to the following:

a) Deciding Bakery’s operation
principles, operation plan, investment plan and investment scheme;

b) Discussing and approving the
report of the executive officers;

c) Discussing and approving the
annual financial budget and settlement plan;

d) Discussing and approving the
profit distribution plan and the loss compensation plan;

e) Resolving on the matters including
change of corporate form, dissolution and liquidation of Bakery;

f) Formulating the basic rules
and regulations of Bakery;

g) Representing Bakery to sign
relative documents;

h) Other responsibilities and
rights.

 

2.4 As the Parties understand, the scope of services that Xinjiang
United Family provides shall subject to its approved business scope; as Bakery requires services out of the approved business scope
of Xinjiang United Family, Xinjiang United Family would apply to enlarge its business scope to the maximum extent permitted by
law, and provide the required services after being approved.

 

2.5 The said entrustment is irrevocable and shall not be withdrawn,
unless this Agreement is terminated pursuant to written agreement of both parties.

 

    3 

     

    

 

ARTICLE 3 - SERVICE FEES

 

3.1 As consideration of the management and consulting services that
Xinjiang United Family provides, Bakery shall pay service fees to Xinjiang United Family. The amount of service fees shall be the
remaining amount of Bakery’s profit before tax after deducting relevant costs and reasonable expenses.

 

3.2 The amount of Service Fees agreed above shall be paid to Xinjiang
United Family by Bakery, following the proportion on a monthly basis according to the actual incomes from main business in the
current month.

 

3.3 All the bank charges due to the occurrence of payment shall
be borne by Bakery. All the amount of payment shall be transferred to the bank account designated by Xinjiang United Family, by
remittance or other means agreed by the Parties. The Parties agree that Xinjiang United Family could also notify Bakery to change
such payment order at any time.

 

3.4 Upon written agreement between Xinjiang United Family and Operator,
the fees agreed in Article 3.1 or their calculation percentage may be adjusted according to the circumstances in the actual performance,
with particulars thereof to be stipulated in separate supplementary agreements to be entered into between the Parties as an appendix
hereto.

 

3.5 Each Party shall respectively pay the tax related to their execution
and performance of this Agreement. As Xinjiang United Family requires, in relation to all or part of the service fee incomes, Operator
shall try its best to assist Xinjiang United Family in enjoying the tax exemption or reduction treatment hereunder.

 

ARTICLE 4 – EXCLUSIVITY

 

The service provided by Xinjiang United Family in this Agreement
shall be exclusive. During the term of validity of this Agreement, unless with consent of Xinjiang United Family, Operator shall
not sign any contract with any third party, or accept services same as or similar with those provided by Xinjiang United Family,
from any third party in any form. Without prior written consent of Xinjiang United Family, Operator shall not accept management
and consulting services from any third party.

 

ARTICLE 5 - UNDERTAKINGS AND GUARANTEES

 

5.1 For execution of this Agreement, the Parties hereby undertake
and guarantee for each of its own that:

 

		(1)	Xinjiang United Family is a company of limited liabilities
duly registered and legally existing under the PRC laws with independent legal person status, and with full and independent status
and legal capacity to execute, deliver and perform this Agreement, and may act independently as a subject of actions;

 

		(2)	Bakery is the individually-owned business duly registered
and legally existing under the PRC laws. Operator is the operator of Bakery, with full and independent status and legal capacity
to execute, deliver and perform this Agreement, and may act independently as a subject of actions;

 

		(3)	Xinjiang United Family has full internal power and authority
within its company to execute, deliver and perform this Agreement and all the other documents to be entered into by it in relation
to the transaction referred to herein. This Agreement shall be executed and delivered by it legally and properly, and constitutes
the legal and binding obligations on it and is enforceable on it in accordance with its terms and conditions;

 

    4 

     

    

 

		(4)	it would not violate the binding or influential laws or
contracts on it as executing and performing this Agreement;

 

		(5)	for the purpose of performing and achieving the goal of
this Agreement, it guarantees for its own to other Party that, it would execute all necessary and reasonable documents and take
all necessary and reasonable actions, including but not limited to issuing necessary authorization documents;

 

		(6)	it shall inform promptly the other Party of any litigation
it is involved in and other disadvantageous circumstances that may affect the performance hereof, and shall endeavor at its best
efforts to prevent the deterioration of losses caused by such litigation or other disadvantageous circumstances.

 

5.2 Operator further guarantees to Xinjiang United Family that:

 

		(1)	it will pay service fees in full to Xinjiang United Family
promptly, in accordance with the provisions in this Agreement;

 

		(2)	it will maintain the validity of all licenses and qualifications
in relation to Bakery’s business, and it will corporate actively with Xinjiang United Family to provide services.

 

5.3 During the term of this Agreement, Bakery agrees to corporate
with Xinjiang United Family and the parent company of Xinjiang United Family (directly or indirectly) to conduct audits on relevant
party transactions and other kinds of audits, provide Xinjiang United Family or its entrusted auditors with information and data
in relation to Bakery’s operation, business, clients, finance, staff, etc. Bakery also agrees that the parent company of
Xinjiang United Family could disclose such information and data, in order to meet the supervision requirement at its securities’
listing spot.

 

ARTICLE 6 - INTELLECTUAL PROPERTY

 

6.1 The rights of intellectual property concerning the work product
created during the process of services provision by Xinjiang United Family hereunder shall belong to Xinjiang United Family.

 

6.2 If business is based on the intellectual property owned by Operator,
Operator shall ensure there is no defect on the intellectual property. Operator shall be liable for all damages and losses of Xinjiang
United Family incurred by defects of intellectual property rights. Xinjiang United Family is entitled to compensation from Operator
concerning all of its losses.

 

6.3 Notwithstanding any other provisions herein, the validity of
this Article shall not be affected by the suspension or termination of this Agreement.

 

    5 

     

    

 

ARTICLE 7 – CONFIDENTIALITY

 

7.1 No matter if this Agreement is terminated or not, the Parties
shall be obliged to keep in strict confidence the commercial secret, proprietary information and customer information in relation
to other Party and any other non-open information of other Party which it may become aware of as the result of the performance
hereof (collectively, “CONFIDENTIAL INFORMATION”).

 

7.2 Unless with prior consent of such other Party in writing or
required to disclose to parties other than Parties hereof according to relevant laws, regulations or listing rules, no Party shall
disclose the Confidential Information or any part thereof to any parties other than Parties hereof; unless for the purpose of performance
hereof, no Party shall use directly or indirectly the Confidential Information or any part thereof for any other purposes, or it
shall bear the default liability and indemnify the losses.

 

7.3 Upon termination of this Agreement, the Party shall, upon demand
by other Party, provide the Confidential Information, return, destroy or otherwise dispose of all the documents, materials or software
containing the Confidential Information and suspend using such Confidential Information.

 

7.4 Notwithstanding any other provisions herein, the validity of
this Article shall not be affected by the suspension or termination of this Agreement.

 

ARTICLE 8 - AGREEMENT TERM

 

8.1 The Parties hereby confirm that, once this Agreement is formally
signed by the Parties, this Agreement shall be retrospectively effective as far as the signing date.

 

8.2 Unless terminated earlier by the Parties in writing, this Agreement
shall be valid for a term of ten (10) years, and renew automatically by ten (10) years after expiration, with no limit on times
of renewal.

 

8.3 Notwithstanding the provisions in the preceding sentence, Xinjiang
United Family has the right to terminate this Agreement at any time on its sole discretion, provided that it has notified Operator
in written form thirty (30) days in advance.

 

ARTICLE 9 – NOTICE

 

9.1 Any notice, request, demand and other correspondences made as
required by or in accordance with this Agreement shall be made in writing and delivered to the relevant Party.

 

9.2 The abovementioned notice or other correspondences shall be
deemed to have been delivered when it is transmitted if transmitted by facsimile or telex; it shall be deemed to have been delivered
when it is delivered if delivered in person; it shall be deemed to have been delivered five (5) days after posting the same if
posted by mail.

 

ARTICLE 10 - DEFAULT LIABILITY

 

10.1 The Parties agree and confirm that, if any Party (the “DEFAULTING
PARTY”) breaches substantially any of the agreements made under this Agreement, or fails substantially to perform any
of the obligations under this Agreement, such a breach shall constitute a default under this Agreement (a “DEFAULT”),
then the non-defaulting Party whose interest is damaged thereby shall have the right to require the Defaulting Party to rectify
such Default or take remedial measures within a reasonable period. If the Defaulting Party fails to rectify such Default or take
remedial measures within such reasonable period or within ten (10) days of the non-defaulting Party notifying the Defaulting Party
in writing and requiring it to rectify the Default, then the non-defaulting Party shall have the right, at its own discretion,
to:

 

		(1)	terminate this Agreement and require the Defaulting Party
to indemnify it fully for the damage; or

 

		(2)	demand the enforcement of the Defaulting Party’s
obligations hereunder and require the Defaulting Party to indemnify it fully for the damage.

 

10.2 Notwithstanding any other provisions herein, the validity of
this Article 10 shall not be affected by the suspension or termination of this Agreement.

 

    6 

     

    

 

ARTICLE 11 - GOVERNING LAW AND DISPUTE RESOLUTION

 

11.1 The formation, validity, execution, amendment,
interpretation and termination of this Agreement shall be subject to the PRC Laws.

 

11.2 Any dispute arising hereunder and in connection
herewith shall be settled through consultations between the Parties, and if the Parties cannot reach an agreement regarding such
disputes within thirty (30) days of their occurrence, such disputes shall be submitted to Urumqi Arbitration Commission in Urumqi
for arbitration in accordance with the arbitration rules of such Commission, and the arbitration award shall be final and binding
on the Parties involved in such dispute.

 

11.3 Unless otherwise awarded by the arbitration
commission, the losing party should bear all the arbitration or prepaid expenses (including but not limited to arbitration expense,
arbitrator and lawyer’s fee, travelling expense, etc.).

 

ARTICLE 12 - FORCE MAJEURE

 

In the event of earthquake, typhoon, flood, fire, war, computer
virus, loophole in the design of tooling software, internet system encountering hacker’s invasion, change of policies or
laws, and other unforeseeable or unpreventable or unavoidable event of force majeure, which directly prevents a Party from performing
this Agreement or performing the same on the agreed condition, the Party encountering such a force majeure event shall forthwith
issue a notice by a facsimile and, within thirty (30) days, present the documents proving the details of such force majeure event
and the reasons for which this Agreement is unable to be performed or is required to be postponed in its performance, and such
proving documents shall be issued by the notaries office of the area where such force majeure event takes place. The Parties shall
consult each other and decide whether this Agreement shall be waived in part or postponed in its performance with regard to the
extent of impact of such force majeure event on the performance of this Agreement. No Party shall be liable to compensate for the
economic losses brought to the other Party by the force majeure event.

 

ARTICLE 13 – TRANSFER

 

13.1 No Party shall assign any of its rights and/or obligations
hereunder to any third parties without the prior written consent from the other Party.

 

13.2 As for transfer with the consent, this Agreement shall be binding
on the legal successors of the Parties.

 

ARTICLE 14 - SEVERABILITY

 

Each provision contained herein shall be severable and independent
from each of other provisions, and if at any time any one or more articles herein become invalid, illegal or unenforceable, the
validity, legality or enforceability of the remaining provisions herein shall not be affected as a result thereof.

 

ARTICLE 15 - AMENDMENT AND SUPPLEMENT

 

Any amendment or supplement to this Agreement shall be made in writing
and take effect as part of this Agreement when properly signed by the Parties, which shall have the same legal effect as this Agreement.

 

ARTICLE 16 - TEXT

 

This Agreement shall be prepared in the English language in two
(2) original copies, with each involved Party holding one (1) copy hereof. Each original copy has the same legal effect.

 

ARTICLE 17 - MISCELLANEOUS

 

17.1 Any failure or delay by a Party in exercising any of its rights,
powers and remedies hereunder or in accordance with laws (the “PARTY’S RIGHTS”) shall not lead to a waiver
of such rights, and the waiver of any single or partial exercise of the Party’s Rights shall not preclude such Party from
exercising such rights in any other way and exercising the remaining part of the Party’s Rights.

 

17.2 The titles of the Articles contained herein shall be for reference
only, and in no circumstance shall such titles be used in or affect the interpretation of the provisions hereof.

 

[THE REMAINDER IS THE SIGNATURE PAGE]

  

    7 

     

    

 

IN WITNESS HEREOF, the Parties have caused this Exclusive Service
Agreement to be executed as of the signing date.

 

	[Name of Operator]	 
	Signature by:	/s/ [Name of Operator]	 

 

Xinjiang United Family Trading Co., Ltd (Company chop)

 

	Signed by:	/s/ Baolin Wang	 
	Name: 	Baolin Wang	 
	Position:	 	 

 

    8 

     

    

 

Schedule of Material Differences

 

One or more person signed an exclusive service agreement under this
form. Pursuant to Instruction ii to Item 601 of Regulation S-K, the Registrant may only file this form as an exhibit with a schedule
setting forth the material details in which the executed agreements differ from this form:

 

	No.	 	Name of Bakery	 	Name of Operator	 	Date of Agreement	 	ID Card No. of Operator	 	Address of Bakery	 	Unified Social Code of Bakery
	1.	 	Urumqi Midong District George Chanson Bakery	 	Gang Li	 	May 2, 2020	 	[*]	 	No. 118, 1st FL, Baishang Shopping Center, 255 Suzhou East St., Gaoxin Dist., Urumqi, Xinjiang	 	[*]
	2.	 	Shayibake District Yining Rd. George Chanson Bakery	 	Gang Li	 	May 2, 2020	 	[*]	 	Store 1F1037, Shopping Center, Dehui Wanda Plaza, No. 405, Yining Rd., Shaybak Dist., Urumqi, Xinjiang	 	[*]
	3.	 	Changji George Chanson Youhao Supermarket Bakery	 	Gang Li	 	May 2, 2020	 	[*]	 	1st FL, Youhaoshishang Shopping Center, Jianguo West Rd., Changji, Changji Prefecture, Xinjiang (Building 46, 2nd Hill, area 125)	 	[*]
	4.	 	Changji George Chanson Bakery	 	Gang Li	 	May 2, 2020	 	[*]	 	1st FL, Huijia Times, 198 Yanan North Rd., Changji, Changji Prefecture, Xinjiang	 	[*]
	5.	 	Tianshan District Xinhua North Rd. George Chanson Bakery	 	Gang Li	 	May 2, 2020	 	[*]	 	1st FL, Shopping Square, Hongshan Xinshiji, No. 38 North Xinhua Rd., Tianshan Dist., Urumqi, Xinjiang	 	[*]
	6.	 	Shayibake District Youhao South Rd. Chanson Bakery Store	 	Gang Li	 	May 2, 2020	 	[*]	 	1/F, Friendly, Baisheng, No. 668, Youhao South Rd., Shaibuk Dist., Urumqi, Xinjiang	 	[*]
	7.	 	Tianshan District Xinmin Rd. George Chanson Bakery	 	Gang Li	 	May 2, 2020	 	[*]	 	Shop No. 2, Rongsheng Garden, No. 81 Xinmin Rd., Tianshan Dist., Urumqi, Xinjiang	 	[*]
	8.	 	Tianshan District Minzhu Rd. George Chanson Bakery	 	Gang Li	 	May 2, 2020	 	[*]	 	1st FL, No. 148 Minzhu Rd., Tianshan Dist., Urumqi, Xinjiang	 	[*]
	9.	 	Tianshan District Jianquan No. 3 Rd. George Chanson Bakery	 	Gang Li	 	May 2, 2020	 	[*]	 	No. 215, Jianquan No. 3 Rd., Tianshan Dist., Urumqi, Xinjiang	 	[*]
	10.	 	Tianshan District Jiefang North Rd. George Chanson Bakery	 	Gang Li	 	May 2, 2020	 	[*]	 	No. 222, Jiefang North Rd., Tianshan Dist., Urumqi, Xinjiang 1F-2B	 	[*]
	11.	 	Urumqi Economics and Technology Development District George Chanson Bakery on Kashi West Rd.	 	Gang Li	 	May 2, 2020	 	[*]	 	1-43, Longhai Commercial Building, 499 Kashi West Rd., Urumqi Economic and Technological Development Zone, Xinjiang	 	[*]
	12.	 	Xinshi District Liyushan South Rd. George Chanson Bakery	 	Gang Li	 	May 2, 2020	 	[*]	 	No. 66 Liyushan South Rd., Xinshi Area, Urumqi, Xinjiang	 	[*]
	13.	 	Xinshi District Changchun South Rd. George Chanson Bakery	 	Gang Li	 	May 2, 2020	 	[*]	 	1st FL, Youhaoshishang Shopping Center, No. 136 Changchun South Rd., East First Lane, Gaoxin Dist., Urumqi, Xinjiang	 	[*]
	14.	 	Xinshi District Beijing Middle Rd. United Family Chanson Bakery	 	Gang Li	 	May 2, 2020	 	[*]	 	3rd FL, Huijia Times, No. 147 Beijing Middle Rd., Xinshi Dist., Urumqi, Xinjiang	 	[*]
	15.	 	Xinshi District Suzhou East Rd. Chanson Bakery	 	Gang Li	 	May 2, 2020	 	[*]	 	No. 118, 1st FL, Baishang Shopping Center, 255 Suzhou East Street, Gaoxin Dist., Urumqi, Xinjiang	 	[*]

 

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	16.	 	Xinshi District Suzhou Rd. Xiaoxigou Chanson Bakery	 	Gang Li	 	May 2, 2020	 	[*]	 	Store No. 53, Xiaoxigou Pedestrian St., Suzhou Rd., Xincheng Dist., Urumqi, Xinjiang	 	[*]
	17.	 	Xinshi District South No. 3 Rd. Chanson Bakery	 	Gang Li	 	May 2, 2020	 	[*]	 	No. 169, Nanwei San Rd., Gaoxin Dist., Urumqi, Xinjiang	 	[*]
	18.	 	Urumqi Economics and Technology Development District George Chanson Bakery on Xuanwuhu Rd.	 	Gang Li	 	May 2, 2020	 	[*]	 	No. 26 Culture Road, Tianshan District, Urumqi, Xinjiang 	 	[*]
	19.	 	Shuimogou District South Nanhu Road George Chanson Bakery	 	Gang Li	 	June 17, 2020	 	[*]	 	1F, No. 68 Nanhu Rd., Shuimogou Dist., Urumqi, Xinjiang	 	[*]
	20.	 	Xinshi District Hebei East Rd. George Chanson Bakery	 	Gang Li	 	October 14, 2020	 	[*]	 	No. 1046, 1/F, Vanguard Supermarket, No. 996 Hebei East Rd., Gaoxin Dist., Urumqi, Xinjiang	 	[*]
	21.	 	Urumqi Toutunhe District George Chanson Bakery on Zhongya South Rd.	 	Gang Li	 	November 6, 2020	 	[*]	 	No. 5009, 5/F, Degang Wanda Plaza, No. 268 Zhongya South Rd., Economic and Technological Development Zone, Urumqi, Xinjiang	 	[*]
	22.	 	Shayibake District Karamay West Rd. Chanson Bakery	 	Gang Li
	 	September 7, 2021	 	[*]	 	
Shop No. 9-11, Hengchang Hengye Garden, No. 2557 Karamay West Street,
Shayibak District, Urumqi, Xinjiang
	 	[*]
	23.	 	Shayibake District Qitai Rd. Hemeijia Chanson Bakery	 	Gang Li	 	December 4, 2021	 	[*]	 	No. JY-GQ-054, Floor 4, Urumqi Dehuiwanda Plaza, No. 133 Qitai Road, Shayibake District, Urumqi, Xinjiang	 	[*]
	24.	 	Tianshan District Qingnian Rd. Chanson Bakery	 	Gang Li	 	December 11, 2021	 	[*]	 	No. 1F-6, No. 219 Qiannian Road, Tianshan District, Urumqi, Xinjiang	 	[*]
	25.	 	Xinshi District Liyushan North Rd. Hemeijia Bakery	 	Gang Li	 	October 27, 2021	 	[*]	 	Shop No. S11-123, Commercial Building NO. S7-S11, Huafuli Community, No. 136 North Liyuanshan Road, Xinshi District, Urumqi, Xinjiang	 	[*]
	26.	 	Xinshi District Changchun North Rd. Chanson Bakery	 	Gang Li	 	October 25, 2021	 	[*]	 	Shop No. 4050, Floor 4, Urumqi Wanda Plaza, No. 668 North Changchun Road, Xinshi District, Urumqi, Xinjiang	 	[*]
	27.	 	Shihezi Hemeijia Bakery No.1	 	Hui Wang	 	May 2, 2020	 	[*]	 	Youhaoshishang Shopping Center, 91 Beishsan Rd., 40 Dist., Shihezi, Xinjiang	 	[*]

 

 

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