Document:

EX-4.15

 English Translation 

Exhibit 4.15 
 Equity
Pledge Agreement 
 This Equity Pledge Agreement (this “Agreement”) is executed by and among the following parties on
                     in                 , China. 

PLEDGOR: [each shareholder of one of our SPEs]  
 Number of
ID: 
 Address: 

  
 1 

 PLEDGEE: [one of our PRC subsidiaries] 

Address: 
 Telephone: 

Fax: 
 SPE: [one of our SPEs] 

Address: 
 Post Code: 

Telephone: 
 Fax: 

WHEREAS: 
 SPE, is a limited liability company in
China registered according to PRC law and in good standing, engaged in the business of Internet technology development (the “Business”); as shareholders of SPE, 

                          
                                         
                                  (collectively the “Pledgors”),
respectively hold
                                         
        shares of SPE. 
 Pledgee is a wholly foreign owned enterprise registered in
                 China, with expertise and resources in technical and strategy consulting aspects of business area in which SPE is engaged. Pledgors and SPE executed the
Technical Support Agreement, the Strategy Consulting Agreement and Intellectual Property License Agreement (hereinafter collectively as “Service Agreements”), as listed in the Appendix 1 hereunder. 

  
 2 

 To secure the fees payable under the Service Agreements (the “Service Fee”) from SPE to
Pledgee, Pledgors hereby pledge their respective interests in SPE to Pledgee as pledge for all indebtedness of SPE to Pledgee pursuant to Service Agreements. 

Pursuant to the provisions of the Service Agreements, Pledgors and Pledgee have agreed to enter into this Agreement according to the following
terms and conditions. 
 1. DEFINITIONS 

Unless otherwise provided herein, the terms below shall have the following meanings: 

1.1 “Pledge Rights” means the rights set forth in Article 2 of this Agreement. 

1.2 “Share Equity” means the equity interest held by Pledgors in SPE. 

1.3 “Pledged Property” means the equity interest and the dividends deriving therefrom pledged by Pledgors to Pledgee under this Agreement. 

1.4 “Secured Indebtedness” means all the amounts payable by SPE to Pledgee under the Service Agreements, including the Service Fee and interests
accrued thereon, liquidated damages, compensations, costs and expenses incurred by Pledgee in connection with collection of such fees, interest, damages and compensations, and losses incurred to Pledgee as a result of any default by SPE and other
expenses payable under the Service Agreements. 
 1.5 “Term of Pledge” means the term stated in Section 4.1 of this Agreement. 

1.6 “Service Agreements” means all the agreements entered into by SPE and Pledgee as set forth in Appendix 1 hereto. 

1.7 “Event of Default” means any event set forth in Article 8 of this Agreement. 

1.8 “Notice of Default” means the notice issued by Pledgee in accordance with this Agreement declaring an Event of Default. 

  
 3 

 2. PLEDGE RIGHTS 

2.1 Pledgors hereby pledge to Pledgee all of their Share Equity in SPE to secure the Secured Indebtedness of SPE. Pledge Rights shall mean Pledgee’s
priority right in receiving compensation from the proceeds of convert, auction or sale of the Pledged Property pledged by Pledgors to Pledgee, which includes the dividends generated by the Share Equity during the term of this Agreement. 

3. SCOPE OF PLEDGE SECURITY 
 3.1 The scope of pledge security
hereunder shall cover all of the Secured Indebtedness, including all the Service Fee and interest accrued thereon, liquidated damages, compensation, costs for actualizing creditor’s right arising out of Service Agreements paid by SPE to
Pledgee, or losses incurred to Pledgee as a result of any default by SPE and all other expenses payable under the Service Agreements. 
 4. TERM OF PLEDGE
AND REGISTRATION 
 4.1 Pledgors shall cause SPE to and SPE shall register the Pledge hereunder in its Shareholders’ List within three (3) working
days after this Agreement is executed, and provide updated version of capital contribution certificates with respect to the Pledge. This Agreement shall become effective on the date when the Pledge hereunder is registered in the Shareholders’
List of SPE. The term of the the Pledge shall be the same as the term of the Strategy Consulting Services Agreement (should the term of the Technical Support Agreement, the Strategy Consulting Services Agreement and/or the Intellectual Property
License Agreement be extended, the term of the Pledge shall be extended accordingly). 
 4.2 In the event that any change of the matters registered in
SPE’s Shareholders’ List is required as a result of change of any matters relating to the Pledge, Pledgors and Pledgee shall cause the matters registered in SPE’s Shareholders’ List be changed accordingly within fifteen
(15) days after such change takes place. 
 4.3 Pledgors shall cause SPE and SPE shall finish the filing procedures within thirty (30) working days
after this agreement is executed. 
 5. CUSTODY OF CERTIFICATES 

Pledgors shall deliver to Pledgee the updated version of capital contribution certificates with respect to their interest in SPE and SPE’s
Shareholders’ List within seven (7) days after this Agreement is executed. 

  
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 6. REPRESENTATIONS AND WARRANTIES OF PLEDGORS 

6.1 Pledgors are legally registered shareholders of SPE. 
 6.2
Pledgors fully understand the contents of the Service Agreements and have entered into this Agreement voluntarily with genuine expression. The signatories signing this Agreement on behalf of Pledgors have the rights and authorizations to do so. 

6.3 All documents, materials and certificates provided by Pledgors to Pledgee hereunder are correct, true, complete and valid. 

6.4 When Pledgee exercises its right hereunder at any time in accordance with this Agreement, there shall be no intervention from any other parties. 

6.5 Pledgee shall have the right to dispose of and transfer the Pledge Rights in accordance with the provisions hereof. 

6.6 Pledgors have not created any pledge right over the Share Equity other than the Pledge created to Pledgee hereunder. 

7. COVENANTS OF PLEDGORS 
 7.1 For the benefit of Pledgee,
Pledgors hereby make the following covenants, during the term of this Agreement: 
 7.1.1 without the prior written consent of Pledgee,
Pledgors shall not transfer the Share Equity, or create or consent to any creation of any pledge over, the Share Equity that may affect Pledgee’s rights and interests hereunder, or cause the shareholders’ meetings of SPE to adopt any
resolution on sale, transfer, pledge or in other manner disposal of the Share Equity or approving the creation of any other security interest on the Share Equity, unless otherwise provided the Share Equity may be transferred to Pledgee or any party
designated by Pledgee according to Call Option and Cooperation Agreement among Pledgors, Pledgee and SPE, or Pledgors may transfer the Share Equity to each other to the extent such transfer will not effect validity of Pledge Rights hereunder (the
transferring Pledgor shall deliver a prior notice to Pledgee before making the transfer). 
 7.1.2 Pledgors shall comply with all laws and
regulations applicable to the Pledge. Within five (5) days of receipt of any notice, order or recommendation issued or promulgated by competent government authorities relating to the Pledge, Pledgors shall deliver such notice, order or
recommendation to Pledgee, and shall comply with the same, or make objections or statements with respect to the same upon Pledgee’s reasonable request or with Pledgee’s consent. 

  
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 7.1.3 Pledgors shall promptly notify Pledgee of any event or notice received by Pledgors that may
have a material effect on Pledgee’s rights in the Pledged Property or any portion thereof, as well as promptly notify Pledgee of any change to any warranty or obligation of Pledgors hereunder, or any event or notice received by Pledgors that
may have a material effect to any warranty or obligation of the Pledgors hereunder. 
 7.2 Pledgors warrant that Pledgee’s exercise of the Pledge Rights
as pledge pursuant to this Agreement shall not be interrupted or impaired by Pledgors or any successors or representatives of Pledgors or any other parties through any legal proceedings. 

7.3 Pledgors hereby warrant to Pledgee that, to protect or perfect the security interest created by this Agreement to secure the Secured Indebtedness, Pledgors
will execute in good faith, and cause other parties who have an interest in the Pledge Rights to execute, all certificates of rights and instruments as requested by Pledgee, and/or take any action, and cause other parties who have an interest in the
Pledge Rights to take any action, as requested by Pledgee, and facilitate the exercise by Pledgee of its rights and authority provided hereunder, and execute all amendment documents relating to certificates of Share Equity with Pledgee or its
designated person(s) (natural persons/legal persons), and shall provide Pledgee, within a reasonable period of time, with all notices, orders and decisions regarding the Pledge Rights requested by Pledgee. Pledgors hereby warrant to Pledgee that,
for Pledgee’s benefit, Pledgors shall comply with and perform all warranties, covenants, agreements, representations and conditions provided hereunder. In the event that Pledgors fail to perform or partially perform any warranties, covenants,
agreements, representations and conditions, Pledgors shall indemnify Pledgee for all of its losses resulting therefrom. 
 8. EVENTS OF DEFAULT 

8.1 Each of the following events shall constitute an Event of Default: 

8.1.1 SPE fails to pay in full any Secured Indebtedness on time; 

8.1.2 Any representation or warranty made by Pledgors under Article 6 of this Agreement is materially misleading or untrue, or Pledgors have
violated any of the warranties in Article 6 of this Agreement; 
 8.1.3 Pledgors breach any of the covenants in Article 7 of this Agreement;

 8.1.4 Pledgors breach any other provisions of this Agreement; 

  
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 8.1.5 Pledgors give up all or any part of the Pledged Property, or transfer all or any part of
the Pledged Property without the written consent of Pledgee (except the transfers permitted hereunder); 
 8.1.6 Any of Pledgors’ loans,
guarantees, indemnification, commitment or other indebtedness to any third party (1) have been subject to a demand of early repayment or performance due to an event of default; or (2) have become due but failed to be repaid or performed in
a timely manner, thus leading Pledgee to believe that Pledgors’ ability to perform their obligations under this Agreement has been impaired; 

8.1.7 Pledgors are unable to repay any other material debts; 

8.1.8 Any applicable laws have rendered this Agreement illegal or made it impossible for Pledgors to continue to perform their obligations
hereunder; 
 8.1.9 All approvals, licenses, permits or authorizations from government agencies that make this Agreement enforceable, legal
and effective have been withdrawn, terminated, invalidated or substantively revised; 
 8.1.10 Any adverse change has taken place to any
properties owned by Pledgors, which leads Pledgee to believe that Pledgors’ ability to perform their obligations under this Agreement has been affected; 

8.1.11 The successor or trustee of SPE is only able to partially perform or refuses to perform the payment obligations under the Service
Agreements; 
 8.1.12 Any breach of other provisions of this Agreement resulting from any action or omission by Pledgors; and 

8.1.13 Any other event whereby Pledgee is unable to exercise its right with respect to the Pledge hereunder pursuant to relevant laws. 

8.2 Pledgors shall immediately notify Pledgee in writing of any event set forth in Section 8.1 or any circumstance which may lead to any such event as
soon as Pledgors know or are aware of such event. 
 8.3 Unless an Event of Default set forth in this Section 8.1 has been resolved to the satisfaction
of Pledgee, Pledgee may, upon the occurrence of an Event of Default or at any time thereafter, issue a Notice of Default to Pledgors in writing and demand that SPE to immediately pay all the amounts due under the Service Agreements and all other
amounts payable due to Pledgee, or exercise Pledge Rights in accordance with the provisions of this Agreement as permitted by Chinese laws and regulations. 

  
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 9. EXERCISE OF PLEDGE RIGHTS 

9.1 Prior to the full payment of Secured Indebtedness under the Service Agreements, Pledgors shall not assign, or in any other manner dispose of, the Pledged
Property without Pledgee’s written consent. 
 9.2 If there is any event of Default as set forth in Article 8, Pledgee shall issue a Notice of Default
to Pledgors when exercising the Pledge Rights. 
 9.3 Subject to the provisions of Section 8.3, Pledgee may exercise the right to dispose of the Pledged
Property concurrently with the issuance of the Notice of Default in accordance with Section 8.3 or at any time after the issuance of the Notice of Default. 

9.4 Pledgee shall have the right to dispose of the Pledged Property under this Agreement in part or in whole in accordance with legal procedures as permitted
by Chinese law (including but not limited to negotiated transfer, auction or sale of the Pledged Property) and receive a priority payment from the proceeds of the Pledged Property until all of the Secured Indebtedness have been fully repaid. 

9.5 When Pledgee disposes of Pledge Property in accordance with this Agreement, Pledgors shall not create any impediment, and shall provide necessary
assistance to enable Pledgee to exercise the Pledge Rights. 
 10. ASSIGNMENT 

10.1 Without Pledgee’s prior consent, Pledgors cannot give away or assign to any party their rights and obligations under this Agreement. 

10.2 This Agreement shall be valid and binding on each Pledgor and their respective successors. 

10.3 Pledgee may assign any and all of its rights and obligations under the Service Agreements to its designated person(s) (natural/legal persons)
(“Assignee”) at any time, in which case the Assignee shall have the rights and obligations of Pledgee under this Agreement, as if it were a party to this Agreement. 

10.4 In the event that the Pledgee changes due to any transfer permitted hereunder, the new parties to the Pledge shall execute a new pledge agreement. 

  
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 11. TERMINATION 

This Agreement shall be terminated when the Secured Indebtedness has been fully repaid and SPE is no longer obliged to undertake any
obligations under the Service Agreements. In this circumstance, Pledgee shall cancel or terminate this Agreement and cooperate to file deregister procedures of the Pledge as soon as reasonably practicable. 

12. HANDLING FEES AND OTHER EXPENSES 
 12.1 All fees and out of
pocket expenses relating to this Agreement, including but not limited to legal fees, cost of documentation, stamp duty and any other taxes and fees, shall be borne by Pledgors. In the event that the law requires Pledgee to pay any taxes, Pledgors
shall reimburse Pledgee for such taxes paid by Pledgee. 
 12.2 In the event that Pledgors fail to pay any taxes or fees in accordance with the provisions of
this Agreement, or due to any other reasons, Pledgee has to recover such taxes and fees payable by Pledgors through any means or in any manner, all costs and expenses (including but not limited to all the taxes, handling fees, management fees, cost
of litigation, attorney’s fees and insurance premiums) resulting therefrom shall be borne by Pledgors. 
 13. FORCE MAJEURE 

13.1 In the event that the performance of this Agreement is delayed or impeded by “an event of force majeure”, the party affected by such event of
force majeure shall not be liable for any liability hereunder with respect to the part of performance being delayed or impeded. “An event of force majeure” means any event beyond the reasonable control of the effected party and cannot be
avoided even if the affected party has exercised reasonable care, which include but not limited to government actions, acts of God, fire, explosions, geographic changes, storms, flood, earthquakes, tides, lightning and war. Notwithstanding the
foregoing, a lack of credit, funds or financing shall not be deemed as a circumstance beyond the reasonable control of an effected party. The party affected by “an event of force majeure” and seeking to relieve the performance liability
under this Agreement or any provisions thereof shall notify the other party of its intention for seeking such relief and the measures it will take to reduce the impact of the force majeure as soon as possible. 

13.2 The party affected by force majeure shall not be liable for any liability with respect to the part of performance being delayed or impeded if the effected
party has taken reasonable efforts to perform this Agreement. As soon as the cause of such relief is corrected and remedied, the Parties shall use their best efforts to resume the performance of this Agreement. 

  
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 14. RESOLUTION OF DISPUTES 

14.1 This Agreement shall be governed by and construed according to the laws of the PRC. 

14.2 In the event of any dispute with respect to the construction and performance of the provisions of this Agreement, the parties shall first try to resolve
the dispute through friendly consultations with good faith. Within thirty (30) days upon failure of such consultations, any party may submit the relevant disputes to the Hangzhou Arbitration Commission for arbitration in accordance with its
then effective arbitration rules. The arbitration tribunal shall be three (3) arbitrators and shall be administered in Hangzhou and the language used for the arbitration shall be Chinese. The arbitration award shall be final and binding on all
parties. Unless otherwise decided by the arbitration tribunal, the arbitration fee shall be borne by the losing party. 
 15. NOTICES 

Notices sent by the parties hereto shall be in writing (“in writing” shall include facsimiles and telexes). If sent by hand, such
notice shall be deemed to have been delivered upon actual delivery; if sent by telex or facsimile, such notice shall be deemed to have been delivered at the time of transmission. If the date of transmission is not a business day or if transmission
is after working hours, then the next business day shall be deemed as the date of delivery. The address of delivery shall be the addresses of the Parties stated on the first page of this Agreement or addresses notified in writing at any time after
this Agreement is executed. The form of writing shall include fax and telex. 
 16. AMENDMENTS, TERMINATION AND CONSTRUCTION 

16.1 This Agreement shall not be amended, modified or terminated unless such amendment, modification and termination has been agreed by all of the Parties and
Parties have obtained all necessary authorization and approvals with respect to such amendment, modification and termination. The attachments, appendixes and other amendments and modifications shall constitute the integral part of this Agreement.

 16.2 The duly signed supplemental agreements and amendment to this Agreement shall be the integral part of this Agreement and shall have the equivalent
legal effect. 
 16.3 The provisions to this Agreement are severable from each other. The invalidity of any provision hereof shall not effect the validity or
enforceability of any other provision hereof. 

  
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 17. EFFECTIVENESS AND OTHERS 

17.1 This Agreement shall take effect upon satisfaction of the following conditions: 
  

	 	(1)	This Agreement has been executed by all parties hereto; and 

  

	 	(2)	Pledgors have recorded the Pledge of Pledge Property hereunder in the Shareholders’ List of SPE and have handed over such list to Pledgee. 

17.2 If any provision of this Agreement is invalid or unenforceable because of inconsistent with the relevant laws, such provision shall be only deemed invalid
in such jurisdiction and shall not affect the validity of the remaining provisions. 
 17.3 This Agreement is written in Chinese in five counterparts. Each
of the Parties shall hold one counterpart and one counterpart is left for filing. Those counterparts shall have the same legal effect. 
 IN WITNESS
WHEREOF, the parties have caused this Agreement executed by their duly authorized representatives in Hangzhou on the date first above written. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
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 [Execution Page Only] 
  

							
	 [One of our PRC subsidiaries]
  

(Company Seal)
	 	 [One of our SPEs] 
  

(Company Seal)

				
	Signature:	 	  
	 	Signature:	 	  

	Name:	 		 	Name:	 	
	Title:	 	Authorized Representative	 	Title:	 	Authorized Representative

 [each shareholder of one of our SPEs] 

							
				
	Signature:	 	  
	 		 	

  
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 Appendix 1: 
  

	1.	Technical Support Agreement (made on [            ]), 

  

	2.	Strategic Consulting Service Agreement (made on [            ]), 

  

	3.	Intellectual Property License Agreement (made on [            ]) 

  
 13Exhibit 10.1

 

OPTION AGREEMENT

 

THE BOARD OF DIRECTORS
of Lapolla Industries, Inc. authorized and approved the Equity Incentive Plan ("Plan"). The Plan provides for the grant
of Options to employees, directors and consultants of Lapolla Industries, Inc. (“Company”). Unless otherwise provided
herein all defined terms shall have the respective meanings ascribed to them under the Plan.

 

1.Grant of Option. Pursuant
to authority granted under the Plan, the Administrator responsible for administering the Plan hereby grants to JAY C. NADEL, as
a director of the Company (“Optionee”) and as of JANUARY 16, 2007 ("Grant Date"), the following Option: 450,000.
Each Option permits you to purchase one share of Lapolla Industries, Inc.’s common stock, $.01 par value per share ("Shares").

 

2.Character of Options. Pursuant
to the Plan, Options granted herein may be Incentive Stock Options or Non-Qualified Stock Options, or both. To the extent permitted
under the Plan and by law, such Options shall first be considered Incentive Stock Options.

 

3.Exercise Price. The Exercise
Price for each Non-Qualified Stock Option granted herein is $ .60 per Share, and the exercise price for each Incentive Stock Option
granted herein shall be $ .60 per Share [except that an Incentive Stock Option granted to a Ten Percent Owner shall be $ .66 per
Share].

 

4.Exercisability. The exercisability
of the Options granted hereby is subject to the following performance criteria and restrictions: A description and illustration
is attached hereto as Exhibit 1 and incorporated in its entirety herein by this reference.

 

5.Term of Options. The term
of each Option granted herein shall be for a term of up to five (5) years from the Grant Date, provided, however, that the term
of any Incentive Stock Option granted herein to an Optionee who is at the time of the grant, a Ten Percent Owner, shall not be
exercisable after the expiration of five (5) years from the Grant Date.

 

6.Payment of Exercise Price.
Options represented hereby may be exercised in whole or in part by delivering to the Company your payment of the Exercise Price
of the Option so exercised (i) in cash, by check or cash equivalent, (ii) by tender to the Company of shares of Stock
owned by the Participant having a Fair Market Value not less than the exercise price; (iii) by tender to the Company of a written
consent to accept a reduction in the number of shares of Stock to which the Option relates (“Reduced Number of Shares”),
which Reduced Number of Shares, when ascribed a value, shall be equal to the exercise price of the balance of shares of Stock covered
by the Option; (iv) by delivery of a properly executed notice of exercise together with irrevocable instructions to a broker providing
for the assignment to the Company of the proceeds of a sale or loan with respect to some or all of the shares being acquired upon
the exercise of the Option (including, without limitation, through an exercise complying with the provisions of Regulation T
as promulgated from time to time by the Board of Governors of the Federal Reserve System) (a "Cashless Exercise"),
(v) by such other consideration as may be approved by the Committee from time to time to the extent permitted by applicable
law, or (vi) by any combination thereof. The Company reserves, at any and all times, the right, in the Company's sole and
absolute discretion, to establish, decline to approve or terminate any program or procedures for the exercise of Options by means
of a Cashless Exercise.

 

7.Limits on Transfer of Options.
The Option granted herein shall not be transferable by you otherwise than by will or by the laws of descent and distribution, except
for gifts to family members subject to any specific limitation concerning such gift by the Administrator in its discretion; provided,
however, that you may designate a beneficiary or beneficiaries to exercise your rights and receive any Shares purchased with respect
to any Option upon your death. Each Option shall be exercisable during your lifetime only by you or, if permissible under applicable
law, by your legal representative. No Option herein granted or Shares underlying any Option shall be pledged, alienated, attached
or otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance thereof shall be void and unenforceable
against the Company. Notwithstanding the foregoing, to the extent permitted by the Administrator, in its discretion, an Option
shall be assignable or transferable subject to the applicable limitations, if any, described in the General Instructions to Form S-8
Registration Statement under the Securities Act of 1933, as amended.

     

     

    

 

 

8.Termination of Employment.
If your employment is terminated with the Company, the Option and any unexercised portion shall be subject to the provisions below:

 

(a)Upon the termination of your employment
with the Company, to the extent not theretofore exercised, your Option shall continue to be valid; provided, however, that: (i)
If the Participant shall die while in the employ of the Company or during the one (1) year period, whichever is applicable, specified
in clause (ii) below and at a time when such Participant was entitled to exercise an Option as herein provided, the legal representative
of such Participant, or such Person who acquired such Option by bequest or inheritance or by reason of the death of the Participant,
may, not later than fifteen (15) months from the date of death, exercise such Option, to the extent not theretofore exercised,
in respect of any or all of such number of Shares specified by the Administrator in such Option; and (ii) If the employment of
any Participant to whom such Option shall have been granted shall terminate by reason of the Participant's retirement (at such
age upon such conditions as shall be specified by the Board of Directors), disability (as described in Section 22(e) of the Code)
or dismissal by the Company other than for cause (as defined below), and while such Participant is entitled to exercise such Option
as herein provided, such Participant shall have the right to exercise such Option so granted, to the extent not theretofore exercised,
in respect of any or all of such number of Shares as specified by the Administrator in such Option, at any time up to one (1) year
from the date of termination of the Optionee's employment by reason of retirement or dismissal other than for cause or disability,
provided, that if the Optionee dies within such twelve (12) month period, subclause (i) above shall apply.

 

(b)If you voluntarily terminate your
employment, or are discharged for cause, any Options granted hereunder shall forthwith terminate with respect to any unexercised
portion thereof.

 

(c)If any Options granted hereunder
shall be exercised by your legal representative if you should die or become disabled, or by any person who acquired any Options
granted hereunder by bequest or inheritance or by reason of death of any such person written notice of such exercise shall be accompanied
by a certified copy of letters testamentary or equivalent proof of the right of such legal representative or other person to exercise
such Options.

 

(d)For all purposes of the Plan, the
term "for cause" shall mean "cause" as defined in the Plan or your employment agreement with the Company.

 

9.Restriction; Securities Exchange
Listing. All certificates for shares delivered upon the exercise of Options granted herein shall be subject to such stop transfer
orders and other restrictions as the Administrator may deem advisable under the Plan or the rules, regulations and other requirements
of the Securities and Exchange Commission and any applicable federal or state securities laws, and the Administrator may cause
a legend or legends to be placed on such certificates to make appropriate reference to such restrictions. If the Shares or other
securities are traded on a national securities exchange, the Company shall not be required to deliver any Shares covered by an
Option unless and until such Shares have been admitted for trading on such securities exchange.

 

10.Adjustments. If there is
any change in the capitalization of the Company affecting in any manner the number or kind of outstanding shares of Common Stock
of the Company, whether by stock dividend, stock split, reclassification or recapitalization of such stock, or because the Company
has merged or consolidated with one or more other corporations (and provided the Option does not thereby terminate pursuant to
Section 5 hereof), then the number and kind of shares then subject to the Option and the price to be paid therefor shall be appropriately
adjusted by the Board of Directors; provided, however, that in no event shall any such adjustment result in the Company's being
required to sell or issue any fractional shares. Any such adjustment shall be made without change in the aggregate purchase price
applicable to the unexercised portion of the option, but with an appropriate adjustment to the price of each Share or other unit
of security covered by this Option.

 

2

     

     

    

 

 

11.Change in Control. In the
event of a Change in Control (as defined in the Plan), the surviving, continuing, successor, or purchasing entity or parent thereof,
as the case may be (the "Acquiror"), may, without the consent of any Participant, either assume the Company's
rights and obligations under outstanding Options or substitute for outstanding Options substantially equivalent options for the
Acquiror's stock. In the event the Acquiror elects not to assume or substitute for outstanding Options in connection with a Change
in Control, the Committee shall provide that any unexercised and/or unvested portions of outstanding Options shall be immediately
exercisable and vested in full as of the date thirty (30) days prior to the date of the Change in Control. The exercise and/or
vesting of any Option that was permissible solely by reason of this Section 11 shall be conditioned upon the consummation of the
Change in Control. Any Options which are not assumed by the Acquiror in connection with the Change in Control nor exercised as
of the time of consummation of the Change in Control shall terminate and cease to be outstanding effective as of the time of consummation
of the Change in Control.

 

12.Amendment to Options Herein Granted.
The Options granted herein may not be amended without your consent.

 

13.Withholding Taxes. As provided
in the Plan, the Company may withhold from sums due or to become due to Optionee from the Company an amount necessary to satisfy
its obligation to withhold taxes incurred by reason of the disposition of the Shares acquired by exercise of the Options in a disqualifying
disposition (within the meaning of Section 421(b) of the Code), or may require you to reimburse the Company in such amount.

 

LAPOLLA INDUSTRIES, INC.

 

 

	 /s/  Michael T. Adams, Secretary	 	1/16/07	 	 
	Corporate Secretary	 	Date	 	 
	 	 	 	 	 
	OPTIONEE	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 /s/ Jay C. Nadel	 	    Jay C. Nadel	 	1/16/07
	Signature	 	Printed Name	 	           Date

 

 

3

     

     

    

 

 

 

EXHIBIT 1

 

Description and Illustration of Exercisability
Restrictions

 

 

	Jay C. Nadel	 	 	 	 	 	 
	 	1/16/2007	1/16/2008	1/16/2009	1/16/2010	1/16/2011	1/16/2012
	Grant Date	         450,000	 	 	 	 	 
	 	 	 	 	 	 	 
	Vesting Dates	 	         150,000	         150,000	         150,000	 	 
	 	 	 	 	 	 	 
	Exercisability Dates (1/15/2008)	 	           50,000	           50,000	           50,000	 	 
	 	 	 	 	 	 	 
	Exercisability Dates (1/15/2009)	 	 	           50,000	           50,000	           50,000	 
	 	 	 	 	 	 	 
	Exercisability Dates (1/15/2010)	 	 	 	           50,000	           50,000	           50,000

 

 

 

4

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