Document:

Exhibit 10.1

 

Execution Copy

 

 

 

 

 

 

 

VIRPAX
PHARMACEUTICALS, INC.

2022 EQUITY INCENTIVE PLAN

 

 

 

 

 

 

 

 

 

     

     

    

 

Table of Contents

 

	1.	Establishment and Purpose	1
	2.	Definitions	1
	3.	Administration.	6
	4.	Shares Subject to the Plan	7
	5.	Participation and Awards	9
	6.	Compensatory Grants to Non-Employee Directors.	9
	7.	Stock Options	10 
	8.	Stock Appreciation Rights	12 
	9.	Restricted Stock Awards	13
	10.	Stock Unit Awards	14
	11.	Performance Shares	15
	12.	Performance Units	16
	13.	Incentive Bonus Awards	17
	14.	Other Cash-Based Awards and Other Stock-Based Awards	17
	15.	Change in Control	18
	16.	General Provisions	19
	17.	Legal Compliance	22
	18.	Effective Date, Amendment and Termination	24

 

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VIRPAX PHARMACEUTICALS,
INC.

2022 EQUITY INCENTIVE
PLAN

 

	1.	Establishment and Purpose

 

1.1 The
purpose of the Virpax Pharmaceuticals, Inc. 2022 Equity Incentive Plan (as it may be amended, supplemented and/or restated from time to
time, the “Plan”) is to provide a means whereby eligible employees, officers, non-employee directors and other individual
service providers develop a sense of proprietorship and personal involvement in the development and financial success of the Company and
to encourage them to devote their best efforts to the business of the Company, thereby advancing the interests of the Company and its
stockholders. The Company, by means of the Plan, seeks to retain the services of such eligible persons and to provide incentives for such
persons to exert maximum efforts for the success of the Company and its Subsidiaries.

 

1.2 The
Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Stock Units,
Performance Shares, Performance Units, Incentive Bonus Awards, Other Cash-Based Awards and Other Stock-Based Awards. This Plan shall become
effective upon the date set forth in Section 18.1 hereof.

 

	2.	Definitions

 

Wherever the following capitalized
terms are used in the Plan, they shall have the meanings specified below:

 

2.1 “Affiliate”
means, with respect to a Person, a Person that directly or indirectly Controls, or is Controlled by, or is under common Control with,
such Person.

 

2.2 “Applicable
Law” means the requirements relating to the administration of equity-based awards or equity compensation plans under U.S. state
corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is
listed or quoted and the applicable laws of any foreign country or jurisdiction that applies to Awards.

 

2.3 “Authorized
Shares” has the meaning set forth in Section 4.1(a).

 

2.4 “Award”
means an award of a Stock Option, Stock Appreciation Right, Restricted Stock, Stock Unit, Performance Share, Performance Unit, Incentive
Bonus Award, Other Cash-Based Award and/or Other Stock-Based Award granted under the Plan.

 

2.5 “Award
Agreement” means either (i) a written or electronic agreement entered into between the Company and a Participant setting forth
the terms and conditions of an Award including any amendment or modification thereof, or (ii) a written or electronic statement issued
by the Company to a Participant describing the terms and provisions of such Award, including any amendment or modification thereof. The
Committee may provide for the use of electronic, internet or other non-paper Award Agreements, and the use of electronic, internet or
other non-paper means for the acceptance thereof and actions thereunder by a Participant. Each Award Agreement shall be subject to the
terms and conditions of the Plan and need not be identical.

 

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

 

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2.7 “Cause”
means (i) conviction of, or the entry of a plea of guilty or no contest to, a felony or any other crime that causes the Company or its
Affiliates public disgrace or disrepute, or materially and adversely affects the Company’s or its Affiliates’ operations or
financial performance or the relationships that the Company and/or its Affiliates have with its and/or their customers; (ii) gross negligence
or willful misconduct with respect to the Company or any of its Affiliates, including, without limitation fraud, embezzlement, theft or
proven dishonesty in the course of his or her employment; (iii) refusal to perform any lawful, material obligation or fulfill any duty
(other than any duty or obligation of the type described in clause (v) below, which shall be governed by clause (v) below) to the Company
or its Affiliates (other than due to a Disability), which refusal, if curable, is not cured within ten (10) days after delivery of written
notice thereof; (iv) material breach of any agreement with or duty owed to the Company or any of its Affiliates (other than any breach
of the type described in clause (v) below, which shall be governed by clause (v) below), which breach, if curable, is not cured within
10 days after the delivery of written notice thereof; or (v) any breach of any obligation or duty to the Company or any of its Affiliates
(whether arising by statute, common law or agreement) relating to confidentiality, noncompetition, nonsolicitation or proprietary rights.
Notwithstanding the foregoing, if a Participant and the Company (or any of its Affiliates) have entered into an employment agreement,
consulting agreement or other similar agreement that specifically defines “cause,” then with respect to such Participant,
“Cause” shall have the meaning defined in that employment agreement, consulting agreement or other agreement.

 

2.8 “Change
in Control” means, unless otherwise provided in an Award Agreement, the occurrence of any one of the following events:

 

(i) any
“person,” including a “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but excluding
the Company, any entity controlling, controlled by or under common control with the Company, any trustee, fiduciary or other person or
entity holding securities under any employee benefit plan or trust of the Company or any such entity, and, with respect to any particular
Participant, the Participant and any “group” (as such term is used in Section 13(d)(3) of the Exchange Act) of which the Participant
is a member), is or becomes the “beneficial owner” (as defined in Rule 13(d)(3) under the Exchange Act), directly or indirectly,
of securities of the Company representing 50% or more of either (A) the combined voting power of the Company’s then outstanding
securities; or (B) the then outstanding shares of Common Stock (in either such case other than as a result of an acquisition of securities
directly from the Company); or

 

(ii) any
consolidation or merger of the Company where the stockholders of the Company, immediately prior to the consolidation or merger, would
not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, shares representing in the aggregate 50% or more of the combined voting power of the securities of the corporation issuing
cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any); or

 

(iii) there
shall occur (A) any sale, lease, exclusive license, exchange or other transfer (in one transaction or a series of transactions contemplated
or arranged by any party as a single plan) of all or substantially all of the assets of the Company, other than a sale or disposition
by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting power of the
voting securities of which are owned by “persons” (as defined above) in substantially the same proportion as their ownership
of the Company immediately prior to such sale; or (B) the approval by stockholders of the Company of any plan or proposal for the liquidation
or dissolution of the Company; or

 

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Notwithstanding
the foregoing, no event or condition shall constitute a Change in Control to the extent that, if it were, a 20% tax would be imposed under
Section 409A of the Code; provided that, in such a case, the event or condition shall continue to constitute a Change in Control
to the maximum extent possible (e.g., if applicable, in respect of vesting without an acceleration of distribution) without causing the
imposition of such 20% tax.

 

2.9 “Change
in Control Consideration” has the meaning set forth in Section 15.1(b).

 

2.10 “Code”
means the Internal Revenue Code of 1986, as amended. For purposes of this Plan, references to sections of the Code shall be deemed to
include references to any applicable regulations thereunder and any successor or similar provision.

 

2.11 “Committee”
means the committee of the Board delegated with the authority to administer the Plan, or the full Board, as provided in Section 3
of the Plan. With respect to any decision relating to a Reporting Person, the Committee shall consist solely of two or more directors
who are Non-Employee Directors. The fact that a Committee member shall fail to qualify under any of these requirements shall not invalidate
an Award if the Award is otherwise validly made under the Plan. The Board may at any time appoint additional members to the Committee,
remove and replace members of the Committee with or without cause, and fill vacancies on the Committee however caused.

 

2.12 “Common
Stock” means the Company’s Common Stock, par value $0.00001 per share.

 

2.13 “Company”
means Virpax Pharmaceuticals, Inc., a Delaware corporation, and any successor thereto as provided in Section 16.8.

 

2.14 “Continuous
Service” means that the Participant’s service with the Company or an Affiliate, whether as an employee, Director or consultant,
is not interrupted or terminated. A change in the capacity in which the Participant renders service to the Company or an Affiliate as
an employee, Director or consultant or a change in the entity for which the Participant renders such service, provided that there is no
interruption or termination of the Participant’s service with the Company or an Affiliate, will not terminate a Participant’s
Continuous Service; provided, however, that if the entity for which a Participant is rendering services ceases to qualify as an
Affiliate, as determined by the Committee in its sole discretion, such Participant’s Continuous Service will be considered to have
terminated on the date such entity ceases to qualify as an Affiliate. For example, a change in status from an employee of the Company
to a consultant of an Affiliate or to a director will not constitute an interruption of Continuous Service. To the extent permitted by
Applicable Law, the Committee or the chief executive officer of the Company, in that party’s sole discretion, may determine whether
Continuous Service will be considered interrupted in the case of (i) any leave of absence approved by the Company or chief executive officer,
including sick leave, military leave or any other personal leave; or (ii) transfers between the Company, an Affiliate, or their successors.
Notwithstanding the foregoing, a leave of absence will be treated as Continuous Service for purposes of vesting in an Award only to such
extent as may be provided in the Company’s (or an Affiliate’s) leave of absence policy, in the written terms of any leave
of absence agreement or policy applicable to the Participant, or as otherwise required by Applicable Law. Unless the Committee provides
otherwise, in its discretion, or as otherwise required by Applicable Law, vesting of Options shall be tolled during any unpaid leave of
absence by a Participant.

 

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2.15 “Control”
means, as to any Person, the power to direct or cause the direction of the management and policies of such Person, or the power to appoint
directors of the Company, whether through the ownership of voting securities, by contract or otherwise (the terms “Controlled
by” and “under common Control with” shall have correlative meanings).

 

2.16 “Date
of Grant” means the date on which an Award under the Plan is granted by the Committee, or such later date as the Committee may
specify to be the effective date of an Award.

 

2.17 “Disability”
means a Participant being considered “disabled” within the meaning of Section 409A of the Code and Treasury Regulation 1.409A-3(i)(4),
as well as any successor regulation or interpretation.

 

2.18 “Effective
Date” means the date set forth in Section 18.1 hereof.

 

2.19 “Eligible
Person” means any person who is an employee, officer, director, consultant, advisor or other individual service provider of
the Company or any Subsidiary, or any person who is determined by the Committee to be a prospective employee, officer, director, consultant,
advisor or other individual service provider of the Company or any Subsidiary; provided that the Award Agreement for any grant
of an Award to a prospective employee, officer, director, consultant, advisor or other individual service provider will contain appropriate
forfeiture provisions in the event such individual does not become employed or engaged by the Company or applicable Subsidiary.

 

2.20 “ERISA”
has the meaning set forth in Section 17.2.

 

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

 

2.22 “Expiration
Date” means the date set forth in Section 18.2 hereof

 

2.23 “Fair
Market Value” of a share of Common Stock shall be, as applied to a specific date:

 

(i) the
closing price of a share of Common Stock as of such date on the principal established stock exchange or national market system on which
the Common Stock is then traded (or, if there is no trading in the Common Stock as of such date, the closing price of a share of Common
Stock on the most recent date preceding such date on which trades of the Common Stock were recorded); or

 

(ii) if
the shares of Common Stock are not then traded on an established stock exchange or national market system but are then traded in an over-the-counter
market, the average of the closing bid and asked prices for the shares of Common Stock in such over-the-counter market as of such date
(or, if there are no closing bid and asked prices for the shares of Common Stock as of such date, the average of the closing bid and the
asked prices for the shares of Common Stock on the most recent date preceding such date on which such closing bid and asked prices are
available on such over-the-counter market); or

 

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(iii) if
the shares of Common Stock are not then listed on a national securities exchange or national market system or traded in an over-the-counter
market, the price of a share of Common Stock as determined by the Committee in its discretion in a manner consistent with Section 409A
of the Code and Treasury Regulation 1.409A-1(b)(5)(iv), as well as any successor regulation or interpretation.

 

2.24 “Immediate
Family” has the meaning set forth in Section 16.3(b).

 

2.25 “Incentive
Bonus Award” means an Award granted under Section 13 of the Plan.

 

2.26 “Incentive
Stock Option” means a Stock Option granted under Section 7 hereof that is intended to meet the requirements of Section
422 of the Code and the regulations promulgated thereunder.

 

2.27 “Non-Employee
Director “ will have the meaning set forth in Rule 16b-3(b)(3)(i) promulgated by the U.S. Securities and Exchange Commission
under the Exchange Act, or any successor definition adopted by the Securities and Exchange Commission.

 

2.28 “Nonqualified
Stock Option” means a Stock Option granted under Section 7 hereof that is not an Incentive Stock Option.

 

2.29 “Other
Cash-Based Award” means a contractual right granted to an Eligible Person under Section 14 hereof entitling such Eligible
Person to receive a cash payment at such times, and subject to such conditions, as are set forth in the Plan and the applicable Award
Agreement.

 

2.30 “Other
Stock-Based Award” means a contractual right granted to an Eligible Person under Section 14 representing a notional unit
interest equal in value to a share of Common Stock to be paid and distributed at such times, and subject to such conditions as are set
forth in the Plan and the applicable Award Agreement.

 

2.31 “Participant”
means any Eligible Person who holds an outstanding Award under the Plan.

 

2.32 “Person”
shall mean any individual, partnership, firm, trust, corporation, limited liability company or other similar entity. When two or more
Persons act as a partnership, limited partnership, syndicate or other group for the purpose of acquiring, holding or disposing of Common
Stock, such partnership, limited partnership, syndicate or group shall be deemed a “Person”

 

2.33 “Performance
Goals” shall mean performance goals established by the Committee as contingencies for the grant, exercise, vesting, distribution,
payment and/or settlement, as applicable, of Awards.

 

2.34 “Performance
Shares” means a contractual right granted to an Eligible Person under Section 11 hereof representing a notional unit
interest equal in value to a share of Common Stock to be paid and distributed at such times, and subject to such conditions, as are set
forth in the Plan and the applicable Award Agreement.

 

2.35 “Performance
Unit” means a contractual right granted to an Eligible Person under Section 12 hereof representing a notional dollar
interest as determined by the Committee to be paid and distributed at such times, and subject to such conditions, as are set forth in
the Plan and the applicable Award Agreement.

 

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2.36 “Plan”
has the meaning set forth in the preamble.

 

2.37 “Reporting
Person” means an officer, director or greater than ten percent stockholder of the Company within the meaning of Rule 16a-2 under
the Exchange Act, who is required to file reports pursuant to Rule 16a-3 under the Exchange Act.

 

2.38 “Restricted
Stock Award” means a grant of shares of Common Stock to an Eligible Person under Section 9 hereof that are issued subject
to such vesting and transfer restrictions and such other conditions as are set forth in the Plan and the applicable Award Agreement.

 

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

 

2.40 “Stock
Appreciation Right” means a contractual right granted to an Eligible Person under Section 8 hereof entitling such Eligible
Person to receive a payment, upon the exercise of such right, in such amount and at such time, and subject to such conditions, as are
set forth in the Plan and the applicable Award Agreement.

 

2.41 “Stock
Option” means a contractual right granted to an Eligible Person under Section 7 hereof to purchase shares of Common Stock
at such time and price, and subject to such conditions, as are set forth in the Plan and the applicable Award Agreement.

 

2.42 “Stock
Unit Award” means a contractual right granted to an Eligible Person under Section 10 hereof representing notional unit
interests equal in value to a share of Common Stock to be paid and distributed at such times, and subject to such conditions, as are set
forth in the Plan and the applicable Award Agreement.

 

2.43 “Subsidiary”
means an entity (whether or not a corporation) that is wholly or majority owned or controlled, directly or indirectly, by the Company;
provided, however, that with respect to Incentive Stock Options, the term “Subsidiary” shall include only an entity
that qualifies under section 424(f) of the Code as a “subsidiary corporation” with respect to the Company.

 

	3.	Administration.

 

3.1 Committee
Members. The Plan shall be administered by the Committee; provided that the entire Board may act in lieu of the Committee on
any matter, subject to the Rule 16b-3 requirements referred to in Section 2.11 of the Plan. If and to the extent permitted by Applicable
Law, the Committee may authorize one or more Reporting Persons (or other officers) to make Awards to Eligible Persons; provided, that
the Board or the Committee shall fix certain material terms of the Awards to be granted by such Reporting Persons or officers (including
the exercise price of such Awards, if applicable) and the maximum number of shares of Common Stock subject to Awards that the Reporting
Persons or officers may grant; provided further, that no Reporting Person or officer shall be authorized to grant Awards to himself
or herself. Subject to Applicable Law and the restrictions set forth in the Plan, the Committee may delegate administrative functions
to individuals who are Reporting Persons, officers, or employees of the Company or its Subsidiaries.

 

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3.2 Committee
Authority. The Committee shall have such powers and authority as may be necessary or appropriate for the Committee to carry out its
functions as described in the Plan. Subject to the express limitations of the Plan, the Committee shall have authority in its discretion
to determine the Eligible Persons to whom, and the time or times at which, Awards may be granted, the number of shares, units or other
rights subject to each Award, the exercise, base or purchase price of an Award (if any), the time or times at which an Award will become
vested, exercisable or payable, the performance criteria, performance goals and other conditions of an Award, the duration of the Award,
and all other terms of the Award. Subject to the terms of the Plan, the Committee shall have the authority to amend the terms of an Award
in any manner that is not inconsistent with the Plan (including without limitation to determine, add, cancel, waive, amend or otherwise
alter any restrictions, terms or conditions of any Award, extend the post-termination exercisability period of any Stock Option and/or
Stock Appreciation Right, provided, that no such action shall materially and adversely affect the rights of a Participant with
respect to an outstanding Award without the Participant’s consent; provided further, that, unless otherwise determined by
the Committee, no such action shall cause an Award previously exempt from Section 409A of the Code to become subject to Section 409A of
the Code. The Committee shall also have discretionary authority to interpret the Plan, to make all factual determinations under the Plan,
and to make all other determinations necessary or advisable for Plan administration, including, without limitation, to correct any defect,
to supply any omission or to reconcile any inconsistency in the Plan or any Award Agreement. The Committee may prescribe, amend, and rescind
rules and regulations relating to the Plan. The Committee’s determinations under the Plan need not be uniform and may be made by
the Committee selectively among Participants and Eligible Persons, whether or not such persons are similarly situated. The Committee shall,
in its discretion, consider such factors as it deems relevant in making its interpretations, determinations and actions under the Plan
including, without limitation, the recommendations or advice of any officer or employee of the Company or such attorneys, consultants,
accountants or other advisors as it may select. All interpretations, determinations, and actions by the Committee shall be final, conclusive,
and binding upon all parties.

 

3.3 No
Liability; Indemnification. Neither the Board nor any Committee member, nor any Person acting at the direction of the Board or the
Committee, shall be liable for any act, omission, interpretation, construction or determination made in good faith with respect to the
Plan or any Award, or Award Agreement. The Company and its Subsidiaries shall pay or reimburse any member of the Committee, as well as
any other Person who takes action on behalf of the Plan, for all reasonable expenses incurred with respect to the Plan, and to the full
extent allowable under Applicable Law shall indemnify each and every one of them for any claims, liabilities, and costs (including reasonable
attorney’s fees) arising out of their good faith performance of duties on behalf of the Company with respect to the Plan. The Company
and its Subsidiaries may, but shall not be required to, obtain liability insurance for this purpose.

 

	4.	Shares Subject to the Plan; Individual Participant Limitations

 

4.1 Available
Shares.

 

(a) Subject
to adjustment pursuant to Section 4.2 and any other applicable provisions hereof, the maximum aggregate number of shares of Common
Stock which may be issued under all Awards granted to Participants under the Plan initially shall be 1,500,000 shares (the “Authorized
Shares”), plus such number of shares of Common Stock, if any, as become available for issuance under the Plan in accordance
with Section 4.1(d) hereof. All 1,500,000 of such Authorized Shares initially available pursuant to this Section 4.1(a) may, but
need not, be issued in respect of Incentive Stock Options.

 

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(b)
The number of Authorized Shares available for issuance under the Plan shall automatically increase on January 1st of each
year commencing with the January 1 following the Effective Date and on each January 1 thereafter until the Expiration Date (as
defined in Section 18.2 of the Plan), in an amount equal to two percent (2%) of the total number of shares of Common Stock
outstanding on December 31st of the preceding calendar year. Notwithstanding the foregoing, the Board may act prior to
the first day of any calendar year, to provide that there shall be no increase in the share reserve for such calendar year or that
the increase in the share reserve for such calendar year shall be a lesser number of shares of Common Stock than would otherwise
occur pursuant to the preceding sentence. For avoidance of doubt, none of the shares of Common Stock available for issuance pursuant
to this Section 4.1(b) shall be issued in respect of Incentive Stock Options.

 

(c) Shares
of Common Stock issued under the Plan may be either authorized but unissued shares or shares held in the Company’s treasury. To
the extent that any Award payable in shares of Common Stock is forfeited, cancelled, returned to or repurchased by the Company for failure
to satisfy vesting requirements or upon the occurrence of other forfeiture events, or otherwise terminates without payment being made
thereunder, the shares of Common Stock covered thereby will no longer be counted against the foregoing maximum share limitations and may
again be made subject to Awards under the Plan pursuant to such limitations. Shares of Common Stock that otherwise would have been issued
upon the exercise of a Stock Option or in payment with respect to any other form of Award, that are surrendered in payment or partial
payment of the exercise price thereof and/or taxes withheld with respect to the exercise thereof or the making of such payment, will no
longer be counted against the foregoing maximum share limitations and may again be made subject to Awards under the Plan pursuant to such
limitations.

 

(d) To
the extent that any award under the Virpax Pharmaceuticals, Inc. 2017 Equity Incentive Plan (the “2017 Plan”) payable
in shares of Common Stock is forfeited, cancelled, returned to or repurchased by the Company for failure to satisfy vesting requirements
or upon the occurrence of other forfeiture events, or otherwise terminates without payment being made thereunder, the shares of Common
Stock covered thereby shall be available for issuance under this Plan. Shares of Common Stock that otherwise would have been issued under
the 2017 Plan upon the exercise of a stock option or in payment with respect to any other form of award under the 2017 Plan, that are
surrendered in payment or partial payment of the exercise price thereof and/or taxes withheld with respect to the exercise thereof or
the making of such payment, shall also be available for issuance under this Plan.

 

4.2 Adjustments.
If there shall occur any change with respect to the outstanding shares of Common Stock by reason of any recapitalization, reclassification,
stock dividend, extraordinary dividend, stock split, reverse stock split, or other distribution with respect to the shares of Common Stock,
or any merger, reorganization, consolidation, combination, spin-off or other similar corporate change, or any other change affecting the
Common Stock, the Committee shall, in the manner and to the extent that it deems appropriate and equitable to the Participants and consistent
with the terms of the Plan, cause an adjustment to be made in (i) the maximum numbers and kind of shares provided in Section 4.1
hereof; (ii) the numbers and kind of shares of Common Stock, units, or other rights subject to then outstanding Awards; (iii) the price
for each share or unit or other right subject to then outstanding Awards; (iv) the performance measures or goals relating to the vesting
of an Award; and (v) any other terms of an Award that are affected by the event to prevent dilution or enlargement of a Participant’s
rights under an Award. Notwithstanding the foregoing, in the case of Incentive Stock Options, any such adjustments shall, to the extent
practicable, be made in a manner consistent with the requirements of Section 424(a) of the Code.

 

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	5.	Participation and Awards

 

5.1 Designation
of Participants. All Eligible Persons are eligible to be designated by the Committee to receive Awards and become Participants under
the Plan. The Committee has the authority, in its discretion, to determine and designate from time to time those Eligible Persons who
are to be granted Awards, the types of Awards to be granted and the number of shares of Common Stock or units subject to Awards granted
under the Plan. In selecting Eligible Persons to be Participants and in determining the type and amount of Awards to be granted under
the Plan, the Committee shall consider any and all factors that it deems relevant or appropriate.

 

5.2 Determination
of Awards. The Committee shall determine the terms and conditions of all Awards granted to Participants in accordance with its authority
under Section 3.2 hereof. An Award may consist of one type of right or benefit hereunder or of two or more such rights or benefits
granted in tandem or in the alternative. To the extent deemed appropriate by the Committee, an Award shall be evidenced by an Award Agreement
as described in Section 16.1 hereof.

 

	6.	Compensatory Grants to Non-Employee Directors.

 

6.1 Grants
to All Non-Employee Directors

 

(a) Grant
upon Initial Election. The Company shall grant Stock Options to purchase up to 25,000 shares of Common Stock, in such amount as is
determined by the Committee, to each Non-Employee Director at the time such director is first appointed or elected to the Board. Subject
to Section 7.4, each Stock Option granted pursuant to this Section 6.1(a) shall be exercisable as to 100% of the number of shares of Stock
covered thereby on the twelve-month anniversary of the grant date, and shall have an exercise price equal to 100% of the Fair Market Value
of a share of Common Stock on the Date of Grant.

 

(b) Annual
Grant. On January 1 of each year, each then serving Non-Employee Director of the Committee shall automatically be granted Stock Options
to purchase 15,000 shares of Common Stock under the Plan. Subject to Section 7.4, each Stock Option granted pursuant to this Section
6.1(b) shall be exercisable as to 100% of the number of shares of Stock covered thereby on the twelve-month anniversary of the grant
date, and shall have an exercise price equal to at 100% of the Fair Market Value of a share of Common Stock on the Date of Grant.

 

6.2 Grants
to Members of the Committees of the Board. On January 1, of each year, each then serving non-Chair member of the Audit Committee,
the Compensation Committee, the Nominating and Corporate Governance Committee and the Science and Technology Committee shall automatically
be granted Stock Options to purchase 5,000 shares of Common Stock under the Plan, and the Chair of the Audit Committee, the Compensation
Committee, the Nominating and Corporate Governance Committee and the Science and Technology Committee shall each be granted Stock Options
to purchase 10,000 shares of Common Stock under the Plan. Subject to Section 7.4, each Stock Option granted pursuant to this Section
6.2 shall be exercisable as to 100% of the number of shares of Stock covered thereby on the twelve-month anniversary of the grant
date, and shall have an exercise price equal to 100% of the Fair Market Value of a share of Common Stock on the Date of Grant.

 

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	7.	Stock Options

 

7.1 Grant
of Stock Option. A Stock Option may be granted to any Eligible Person selected by the Committee. Subject to the provisions of Section
7.6 hereof and Section 422 of the Code, each Stock Option shall be designated, in the discretion of the Committee, as an Incentive
Stock Option or as a Nonqualified Stock Option.

 

7.2 Exercise
Price. The exercise price per share of a Stock Option shall not be less than 100% of the Fair Market Value of a share of Common Stock
on the Date of Grant, subject to adjustments as provided for under Section 4.2; provided that the Committee may in its discretion
specify for any Stock Option an exercise price per share that is higher than the Fair Market Value on the Date of Grant, and may establish
an exercise price that is below Fair Market Value on the Date of Grant for Stock Options granted to Participants who are not residents
of the U.S. if permitted by Applicable Law and any applicable rules of the principal established stock exchange or national market system
on which the Common Stock is traded.

 

7.3 Vesting
of Stock Options. The Committee shall in its discretion prescribe the time or times at which, or the conditions upon which, a Stock
Option or portion thereof shall become vested and/or exercisable. The requirements for vesting and exercisability of a Stock Option may
be based on the Continuous Service of the Participant for a specified time period (or periods) and/or on the attainment of a specified
performance goal (or goals) established by the Committee in its discretion. The Committee may, in its discretion, accelerate the vesting
or exercisability of any Stock Option at any time. The Committee in its sole discretion may allow a Participant to exercise unvested Nonqualified
Stock Options, in which case the shares of Common Stock then issued shall be Restricted Stock having analogous vesting restrictions to
the unvested Nonqualified Stock Options.

 

7.4 Term
of Stock Options. The Committee shall in its discretion prescribe in an Award Agreement the period during which a vested Stock Option
may be exercised; provided that the maximum term of a Stock Option shall be ten (10) years from the Date of Grant. A Stock Option
may be earlier terminated as specified by the Committee and set forth in an Award Agreement upon or following the termination of a Participant’s
Continuous Service for any reason, including by reason of voluntary resignation, death, Disability, termination for Cause or any other
reason. Except as otherwise provided in this Section 7 or in an Award Agreement as such agreement may be amended from time to time
upon authorization of the Committee, no Stock Option may be exercised at any time during the term thereof unless the Participant is then
in Continuous Service. Notwithstanding the foregoing, unless an Award Agreement provides otherwise:

 

(a) If
a Participant’s Continuous Service terminates by reason of his or her death, any Stock Option held by such Participant may, to the
extent then exercisable, be exercised by such Participant’s estate or any Person who acquires the right to exercise such Stock Option
by bequest or inheritance at any time in accordance with its terms for up to one year after the date of such Participant’s death
(but in no event after the earlier of the expiration of the term of such Stock Option or such time as the Stock Option is otherwise canceled
or terminated in accordance with its terms). Upon expiration of such one-year period, no portion of the Stock Option held by such Participant
shall be exercisable and the Stock Option shall be deemed to be canceled, forfeited and of no further force or effect.

 

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(b) If
a Participant’s Continuous Service terminates by reason of his or her Disability, any Stock Option held by such Participant may,
to the extent then exercisable, be exercised by the Participant or his or her personal representative at any time in accordance with its
terms for up to one year after the date of such Participant’s termination of Continuous Service (but in no event after the earlier
of the expiration of the term of such Stock Option or such time as the Stock Option is otherwise canceled or terminated in accordance
with its terms). Upon expiration of such one-year period, no portion of the Stock Option held by such Participant shall be exercisable
and the Stock Option shall be deemed to be canceled, forfeited and of no further force or effect.

 

(c) If
a Participant’s Continuous Service terminates for any reason other than death, Disability or Cause, any Stock Option held by such
Participant may, to the extent then exercisable, be exercised by the Participant up until ninety (90) days following such termination
of Continuous Service (but in no event after the earlier of the expiration of the term of such Stock Option or such time as the Stock
Option is otherwise canceled or terminated in accordance with its terms). Upon expiration of such 90-day period, no portion of the Stock
Option held by such Participant shall be exercisable and the Stock Option shall be deemed to be canceled, forfeited and of no further
force or effect.

 

(d) If
a Participant’s Continuous Service terminates for Cause, any Stock Option held by such Participant, whether vested or unvested,
shall be deemed forfeited and canceled on the date of such termination of Continuous Service.

 

(e) To
the extent that a Stock Option of a Participant whose Continuous Service terminates is not exercisable, such Stock Option shall be deemed
forfeited and canceled on the ninetieth (90th) day after such termination of Continuous Service or at such earlier time as the Committee
may determine.

 

7.5 Stock
Option Exercise. Subject to such terms and conditions as shall be specified in an Award Agreement, a Stock Option may be exercised
in whole or in part at any time during the term thereof by notice in the form required by the Company, and payment of the aggregate exercise
price by certified or bank check, or such other means as the Committee may accept. As set forth in an Award Agreement or otherwise determined
by the Committee, in its sole discretion, at or after grant, payment in full or in part of the exercise price of an Option may be made:
(i) in the form of shares of Common Stock that have been held by the Participant for such period as the Committee may deem appropriate
for accounting purposes or otherwise, valued at the Fair Market Value of such shares on the date of exercise; (ii) by surrendering to
the Company shares of Common Stock otherwise receivable on exercise of the Option; (iii) by a cashless exercise program implemented by
the Committee in connection with the Plan; and/or (iv) by such other method as may be approved by the Committee and set forth in an Award
Agreement. Subject to any governing rules or regulations, as soon as practicable after receipt of written notification of exercise and
full payment of the exercise price and satisfaction of any applicable tax withholding pursuant to Section 17.5, the Company shall
deliver to the Participant evidence of book entry shares of Common Stock, or upon the Participant’s request, Common Stock certificates
in an appropriate amount based upon the number of shares of Common Stock purchased under the Option. Unless otherwise determined by the
Committee, all payments under all of the methods indicated above shall be paid in United States dollars or shares of Common Stock, as
applicable.

 

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7.6 Additional
Rules for Incentive Stock Options.

 

(a) Eligibility.
An Incentive Stock Option may only be granted to an Eligible Person who is considered an employee under Treasury Regulation §1.421-1(h)
of the Company or any Subsidiary.

 

(b) Annual
Limits. No Incentive Stock Option shall be granted to an Eligible Person as a result of which the aggregate Fair Market Value (determined
as of the Date of Grant) of the stock with respect to which Incentive Stock Options are exercisable for the first time in any calendar
year under the Plan and any other stock option plans of the Company or any Subsidiary would exceed $100,000, determined in accordance
with Section 422(d) of the Code. This limitation shall be applied by taking Incentive Stock Options into account in the order in which
granted.

 

(c) Ten
Percent Stockholders. If a Stock Option granted under the Plan is intended to be an Incentive Stock Option, and if the Participant,
at the time of grant, owns stock possessing ten percent (10%) or more of the total combined voting power of all classes of Common Stock
of the Company or any Subsidiary, then (i) the Stock Option exercise price per share shall in no event be less than 110% of the Fair Market
Value of the Common Stock on the date of such grant; and (ii) such Stock Option shall not be exercisable after the expiration of five
(5) years following the date such Stock Option is granted.

 

(d) Termination
of Employment. An Award of an Incentive Stock Option shall provide that such Stock Option may be exercised not later than three (3)
months following termination of employment of the Participant with the Company and all Subsidiaries, or not later than one (1) year following
death or a permanent and total disability within the meaning of Section 22(e)(3) of the Code, as and to the extent determined by the Committee
to be necessary to comply with the requirements of Section 422 of the Code.

 

(e) Disqualifying
Dispositions. If shares of Common Stock acquired by exercise of an Incentive Stock Option are disposed of within two (2) years following
the Date of Grant or one (1) year following the transfer of such shares to the Participant upon exercise, the Participant shall, promptly
following such disposition, notify the Company in writing of the date and terms of such disposition and provide such other information
regarding the disposition as the Company may reasonably require.

 

(f) Qualification.
To the extent that, at or after grant, any Stock Option does not qualify as an Incentive Stock Option, it shall be deemed a Nonqualified
Stock Option.

 

	8.	Stock Appreciation Rights

 

8.1 Grant
of Stock Appreciation Rights. A Stock Appreciation Right may be granted to any Eligible Person selected by the Committee. Stock Appreciation
Rights may be granted on a basis that allows for the exercise of the right by the Participant or that provides for the automatic payment
of the right upon a specified date or event.

 

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8.2 Base
Price. The base price of a Stock Appreciation Right shall be determined by the Committee in its sole discretion; provided, however,
that the base price for any grant of a Stock Appreciation Right shall not be less than 100% of the Fair Market Value of a share of Common
Stock on the Date of Grant, subject to adjustments as provided for under Section 4.2.

 

8.3 Vesting
Stock Appreciation Rights. The Committee shall in its discretion prescribe the time or times at which, or the conditions upon which,
a Stock Appreciation Right or portion thereof shall become vested and/or exercisable. The requirements for vesting and exercisability
of a Stock Appreciation Right may be based on the Continuous Service of a Participant for a specified time period (or periods) or on the
attainment of a specified performance goal (or goals) established by the Committee in its discretion. The Committee may, in its discretion,
accelerate the vesting or exercisability of any Stock Appreciation Right at any time.

 

8.4 Term
of Stock Appreciation Rights. The Committee shall in its discretion prescribe in an Award Agreement the period during which a vested
Stock Appreciation Right may be exercised; provided that the maximum term of a Stock Appreciation Right shall be ten (10) years
from the Date of Grant. A Stock Appreciation Right may be earlier terminated as specified by the Committee and set forth in an Award Agreement
upon or following the termination of a Participant’s Continuous Service for any reason, including by reason of voluntary resignation,
death, Disability, termination for Cause or any other reason. Except as otherwise provided in this Section 8 or in an Award Agreement
as such agreement may be amended from time to time upon authorization of the Committee, no Stock Appreciation Right may be exercised at
any time during the term thereof unless the Participant is then in Continuous Service.

 

8.5 Payment
of Stock Appreciation Rights. Subject to such terms and conditions as shall be specified in an Award Agreement, a vested Stock Appreciation
Right may be exercised in whole or in part at any time during the term thereof by notice in the form required by the Company and payment
of any exercise price. Upon the exercise of a Stock Appreciation Right and payment of any applicable exercise price, a Participant shall
be entitled to receive an amount determined by multiplying: (i) the excess of the Fair Market Value of a share of Common Stock on the
date of exercise of the Stock Appreciation Right over the base price of such Stock Appreciation Right, by (ii) the number of shares as
to which such Stock Appreciation Right is exercised. Payment of the amount determined under the immediately preceding sentence may be
made, as approved by the Committee and set forth in the Award Agreement, in shares of Common Stock valued at their Fair Market Value on
the date of exercise, in cash, or in a combination of shares of Common Stock and cash, subject to applicable tax withholding requirements
set forth in Section 17.5. If Stock Appreciation Rights are settled in shares of Common Stock, then as soon as practicable following
the date of settlement the Company shall deliver to the Participant evidence of book entry shares of Common Stock, or upon the Participant’s
request, Common Stock certificates in an appropriate amount.

 

	9.	Restricted Stock Awards

 

9.1 Grant
of Restricted Stock Awards. A Restricted Stock Award may be granted to any Eligible Person selected by the Committee. The Committee
may require the payment by the Participant of a specified purchase price in connection with any Restricted Stock Award. The Committee
may provide in an Award Agreement for the payment of dividends and distributions to the Participant at such times as paid to stockholders
generally or at the times of vesting or other payment of the Restricted Stock Award. If any dividends or distributions are paid in stock
while a Restricted Stock Award is subject to restrictions under Section 9.3 of the Plan, the dividends or other distributions shares
shall be subject to the same restrictions on transferability as the shares of Common Stock to which they were paid unless otherwise set
forth in the Award Agreement. The Committee may also subject the grant of any Restricted Stock Award to the execution of a voting agreement
with the Company or with any Affiliate of the Company.

 

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9.2 Vesting
Requirements. The restrictions imposed on shares of Common Stock granted under a Restricted Stock Award shall lapse in accordance
with the vesting requirements specified by the Committee in the Award Agreement. Upon vesting of a Restricted Stock Award, such Award
shall be subject to the tax withholding requirement set forth in Section 17.5. The requirements for vesting of a Restricted Stock
Award may be based on the Continuous Service of the Participant for a specified time period (or periods) or on the attainment of a specified
performance goal (or goals) established by the Committee in its discretion. The Committee may, in its discretion, accelerate the vesting
of a Restricted Stock Award at any time. If the vesting requirements of a Restricted Stock Award shall not be satisfied, the Award shall
be forfeited and the shares of Common Stock subject to the Award shall be returned to the Company.

 

9.3 Stock
Certificate Legends. The Committee may require in an Award Agreement that certificates representing the shares granted under a Restricted
Stock Award bear a legend making appropriate reference to the restrictions imposed, and that certificates representing the shares granted
or sold under a Restricted Stock Award will remain in the physical custody of an escrow holder until all restrictions are removed or have
expired.

 

9.4 Rights
as Stockholder. Subject to the foregoing provisions of this Section 9 and the applicable Award Agreement, the Participant to
whom a Restricted Stock Award is made shall have all rights of a stockholder with respect to the shares granted to the Participant under
the Restricted Stock Award, including the right to vote the shares and receive all dividends and other distributions paid or made with
respect thereto, unless the Committee determines otherwise at the time the Restricted Stock Award is granted.

 

9.5 Section
83(b) Election. If a Participant makes an election pursuant to Section 83(b) of the Code with respect to a Restricted Stock Award,
the Participant shall file, within 30 days following the Date of Grant, a copy of such election with the Company (directed to the Secretary
thereof) and with the Internal Revenue Service, in accordance with the regulations under Section 83 of the Code. The Committee may provide
in an Award Agreement that the Restricted Stock Award is conditioned upon the Participant’s making or refraining from making an
election with respect to the Award under Section 83(b) of the Code.

 

	10.	Stock Unit Awards

 

10.1 Grant
of Stock Unit Awards. A Stock Unit Award may be granted to any Eligible Person selected by the Committee. The value of each stock
unit under a Stock Unit Award is equal to the Fair Market Value of the Common Stock on the applicable date or time period of determination,
as specified by the Committee. A Stock Unit Award shall be subject to such restrictions and conditions as the Committee shall determine.
A Stock Unit Award may be granted together with a dividend equivalent right with respect to the shares of Common Stock subject to the
Award, which may be accumulated and may be deemed reinvested in additional stock units, as determined by the Committee in its discretion.
If any dividend equivalents are paid while a Stock Unit Award is subject to restrictions under Section 10 of the Plan, the dividend
equivalents shall be subject to the same restrictions on transferability as the Stock Units to which they were paid, unless otherwise
set forth in the Award Agreement.

 

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10.2 Vesting
of Stock Unit Awards. On the Date of Grant, the Committee shall, in its discretion, determine any vesting requirements with respect
to a Stock Unit Award, which shall be set forth in the Award Agreement. The requirements for vesting of a Stock Unit Award may be based
on the Continuous Service of the Participant for a specified time period (or periods) or on the attainment of a specified performance
goal (or goals) established by the Committee in its discretion. The Committee may, in its discretion, accelerate the vesting of a Stock
Unit Award at any time. A Stock Unit Award may also be granted on a fully vested basis, with a deferred payment date as may be determined
by the Committee or elected by the Participant in accordance with rules established by the Committee.

 

10.3 Payment
of Stock Unit Awards. A Stock Unit Award shall become payable to a Participant at the time or times determined by the Committee and
set forth in the Award Agreement, which may be upon or following the vesting of the Award. Payment of a Stock Unit Award may be made,
at the discretion of the Committee, in cash or in shares of Common Stock, or in a combination thereof as described in the Award Agreement,
subject to applicable tax withholding requirements set forth in Section 17.5. Any cash payment of a Stock Unit Award shall be made
based upon the Fair Market Value of the Common Stock, determined on such date or over such time period as determined by the Committee.
Notwithstanding the foregoing, unless specified otherwise in the Award Agreement, any Stock Unit, whether settled in Common Stock or cash,
shall be paid no later than two and one-half months after the later of the calendar year or fiscal year in which the Stock Units vest.
If Stock Unit Awards are settled in shares of Common Stock, then as soon as practicable following the date of settlement, the Company
shall deliver to the Participant evidence of book entry shares of Common Stock, or upon the Participant’s request, Common Stock
certificates in an appropriate amount.

 

	11.	Performance Shares

 

11.1 Grant
of Performance Shares. Performance Shares may be granted to any Eligible Person selected by the Committee. A Performance Share Award
shall be subject to such restrictions and condition as the Committee shall specify. A Performance Share Award may be granted with a dividend
equivalent right with respect to the shares of Common Stock subject to the Award, which may be accumulated and may be deemed reinvested
in additional stock units, as determined by the Committee in its discretion.

 

11.2 Value
of Performance Shares. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the Date of
Grant. The Committee shall set performance goals in its discretion that, depending on the extent to which they are met over a specified
time period, shall determine the number of Performance Shares that shall be paid to a Participant.

 

11.3 Earning
of Performance Shares. After the applicable time period has ended, the number of Performance Shares earned by the Participant over
such time period shall be determined as a function of the extent to which the applicable corresponding performance goals have been achieved.
This determination shall be made solely by the Committee. The Committee may, in its discretion, waive any performance or vesting conditions
relating to a Performance Share Award.

 

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11.4 Form
and Timing of Payment of Performance Shares. The Committee shall pay at the close of the applicable Performance Period, or as soon
as practicable thereafter, any earned Performance Shares in the form of cash or in shares of Common Stock or in a combination thereof,
as specified in a Participant’s Award Agreement, subject to applicable tax withholding requirements set forth in Section 17.5.
Notwithstanding the foregoing, unless specified otherwise in the Award Agreement, all Performance Shares shall be paid no later than two
and one-half months following the later of the calendar year or fiscal year in which such Performance Shares vest. Any shares of Common
Stock paid to a Participant under this Section 11.4 may be subject to any restrictions deemed appropriate by the Committee. If
Performance Shares are settled in shares of Common Stock, then as soon as practicable following the date of settlement the Company shall
deliver to the Participant evidence of book entry shares of Common Stock, or upon the Participant’s request, Common Stock certificates
in an appropriate amount.

 

	12.	Performance Units

 

12.1 Grant
of Performance Units. Performance Units may be granted to any Eligible Person selected by the Committee. A Performance Unit Award
shall be subject to such restrictions and condition as the Committee shall specify in a Participant’s Award Agreement.

 

12.2 Value
of Performance Units. Each Performance Unit shall have an initial notional value equal to a dollar amount determined by the Committee,
in its sole discretion. The Committee shall set performance goals in its discretion that, depending on the extent to which they are met
over a specified time period, will determine the number of Performance Units that shall be settled and paid to the Participant.

 

12.3 Earning
of Performance Units. After the applicable time period has ended, the number of Performance Units earned by the Participant, and the
amount payable in cash, in shares or in a combination thereof, over such time period shall be determined as a function of the extent to
which the applicable corresponding performance goals have been achieved. This determination shall be made solely by the Committee. The
Committee may, in its discretion, waive any performance or vesting conditions relating to a Performance Unit Award.

 

12.4 Form
and Timing of Payment of Performance Units. The Committee shall pay at the close of the applicable Performance Period, or as soon
as practicable thereafter, any earned Performance Units in the form of cash or in shares of Common Stock or in a combination thereof,
as specified in a Participant’s Award Agreement, subject to applicable tax withholding requirements set forth in Section 17.5.
Notwithstanding the foregoing, unless specified otherwise in the Award Agreement, all Performance Units shall be paid no later than two
and one-half months following the later of the calendar year or fiscal year in which such Performance Units vest. Any shares of Common
Stock paid to a Participant under this Section 12.4 may be subject to any restrictions deemed appropriate by the Committee. If
Performance Units are settled in shares of Common Stock, then as soon as practicable following the date of settlement the Company shall
deliver to the Participant evidence of book entry shares of Common Stock, or upon the Participant’s request, Common Stock certificates
in an appropriate amount.

 

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	13.	Incentive Bonus Awards

 

13.1 Incentive
Bonus Awards. The Committee, at its discretion, may grant Incentive Bonus Awards to such Participants as it may designate from time
to time. The terms of a Participant’s Incentive Bonus Award shall be set forth in the Participant’s Award Agreement. Each
Award Agreement shall specify such general terms and conditions as the Committee shall determine.

 

13.2 Incentive
Bonus Award Performance Criteria. The determination of Incentive Bonus Awards for a given year or years may be based upon the attainment
of specified levels of Company or Subsidiary performance as measured by pre-established, objective performance criteria determined at
the discretion of the Committee. The Committee shall (i) select those Participants who shall be eligible to receive an Incentive Bonus
Award; (ii) determine the performance period; (iii) determine target levels of performance; and (iv) determine the level of Incentive
Bonus Award to be paid to each selected Participant upon the achievement of each performance level.

 

13.3 Payment
of Incentive Bonus Awards.

 

(a) Incentive
Bonus Awards shall be paid in cash or Common Stock, as set forth in a Participant’s Award Agreement. Payments shall be made following
a determination by the Committee that the performance targets were attained and shall be made within two and one-half months after the
later of the end of the fiscal or calendar year in which the Incentive Award is no longer subject to a substantial risk of forfeiture.

 

(b) The
amount of an Incentive Bonus Award to be paid upon the attainment of each targeted level of performance shall equal a percentage of a
Participant’s base salary for the fiscal year, a fixed dollar amount, or such other formula, as determined by the Committee.

 

	14.	Other Cash-Based Awards and Other Stock-Based Awards

 

14.1 Other
Cash-Based and Stock-Based Awards. The Committee may grant other types of equity-based or equity-related Awards not otherwise described
by the terms of this Plan (including the grant or offer for sale of unrestricted Shares) in such amounts and subject to such terms and
conditions, as the Committee shall determine. Such Awards may involve the transfer of actual shares of Common Stock to a Participant,
or payment in cash or otherwise of amounts based on the value of shares of Common Stock. In addition, the Committee, at any time and from
time to time, may grant Other Cash-Based Awards to a Participant in such amounts and upon such terms as the Committee shall determine,
in its sole discretion.

 

14.2 Value
of Cash-Based Awards and Other Stock-Based Awards. Each Other Stock-Based Award shall be expressed in terms of shares of Common Stock
or units based on shares of Common Stock, as determined by the Committee, in its sole discretion. Each Other Cash-Based Award shall specify
a payment amount or payment range as determined by the Committee, in its sole discretion. If the Committee exercises its discretion to
establish performance goals, the value of Other Cash-Based Awards that shall be paid to the Participant will depend on the extent to which
such performance goals are met.

 

14.3 Payment
of Cash-Based Awards and Other Stock-Based Awards. Payment, if any, with respect to Other Cash-Based Awards and Other Stock-Based
Award shall be made in accordance with the terms of the Award, in cash or shares as the Committee determines.

 

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	15.	Change in Control

 

15.1 Effect
of Change in Control.

 

(a) The
Committee may, at the time of the grant of an Award and as set forth in an Award Agreement, provide for the effect of a “Change
in Control” on an Award. Such provisions may include any one or more of the following: (i) the acceleration or extension of time
periods for purposes of exercising, vesting in, or realizing gain from any Award; (ii) the elimination or modification of performance
or other conditions related to the payment or other rights under an Award; (iii) provision for the cash settlement of an Award for an
equivalent cash value, as determined by the Committee, or (iv) such other modification or adjustment to an Award as the Committee deems
appropriate to maintain and protect the rights and interests of Participants upon or following a Change in Control. To the extent necessary
for compliance with Section 409A of the Code, an Award Agreement shall provide that an Award subject to the requirements of Section 409A
that would otherwise become payable upon a Change in Control shall only become payable to the extent that the requirements for a “change
in control” for purposes of Section 409A have been satisfied.

 

(b) Notwithstanding
anything to the contrary set forth in the Plan, unless otherwise provided by an Award Agreement, upon or in anticipation of any Change
in Control, the Committee may, in its sole and absolute discretion and without the need for the consent of any Participant, take one or
more of the following actions contingent upon the occurrence of that Change in Control: (i) cause any or all outstanding Stock Options
and Stock Appreciation Rights held by Participants affected by the Change in Control to become vested and immediately exercisable, in
whole or in part; (ii) cause restrictions and/or vesting conditions with respect to any or all outstanding Restricted Stock, Stock Units,
Performance Shares, Performance Units, Incentive Bonus Award and any other Award held by Participants affected by the Change in Control
to lapse, in whole or in part; (iii) cancel any Stock Option or Stock Appreciation Right in exchange for a substitute option in a manner
consistent with the requirements of Treasury Regulation §1.424-1(a) or §1.409A-1(b)(5)(v)(D), as applicable (notwithstanding
the fact that the original Stock Option may never have been intended to satisfy the requirements for treatment as an Incentive Stock Option);
(iv) cancel any Restricted Stock, Stock Units, Performance Shares or Performance Units held by a Participant in exchange for restricted
stock or performance shares of or stock or performance units in respect of the capital stock of any successor corporation; (v) terminate
any Award in exchange for an amount of cash and/or property equal to the amount, if any, that would have been attained upon the exercise
of such Award or realization of the Participant’s rights as of the date of the occurrence of the Change in Control (the “Change
in Control Consideration”); provided, however that if the Change in Control Consideration with respect to any Option
or Stock Appreciation Right does not exceed the exercise price of such Option or Stock Appreciation Right, the Committee may cancel the
Option or Stock Appreciation Right without payment of any consideration therefor. Any such Change in Control Consideration may be subject
to any escrow, indemnification and similar obligations, contingencies and encumbrances applicable in connection with the Change in Control
to holders of Common Stock. Without limitation of the foregoing, if as of the date of the occurrence of the Change in Control the Committee
determines that no amount would have been attained upon the realization of the Participant’s rights, then such Award may be terminated
by the Company without payment. The Committee may cause the Change in Control Consideration to be subject to vesting conditions (whether
or not the same as the vesting conditions applicable to the Award prior to the Change in Control) and/or make such other modifications,
adjustments or amendments to outstanding Awards or this Plan as the Committee deems necessary or appropriate.

 

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(c) The
Committee may require a Participant to (i) represent and warrant as to the unencumbered title to the Participant’s Awards; (ii)
bear such Participant’s pro rata share of any post-closing indemnity obligations, and be subject to the same or similar post-closing
purchase price adjustments, escrow terms, offset rights, holdback terms and similar conditions as the other holders of Common Stock; and
(iii) execute and deliver such documents and instruments as the Committee may reasonably require for the Participant to be bound by such
obligations. The Committee will endeavor to take action under this Section 15 in a manner that does not cause a violation of Section
409A of the Code with respect to an Award.

 

	16.	General Provisions

 

16.1 Award
Agreement. To the extent deemed necessary by the Committee, an Award under the Plan shall be evidenced by an Award Agreement in a
written or electronic form approved by the Committee setting forth the number of shares of Common Stock or units subject to the Award,
the exercise price, base price, or purchase price of the Award, the time or times at which an Award will become vested, exercisable or
payable and the term of the Award. The Award Agreement may also set forth the effect on an Award of termination of Continuous Service
under certain circumstances. The Award Agreement shall be subject to and incorporate, by reference or otherwise, all of the applicable
terms and conditions of the Plan, and may also set forth other terms and conditions applicable to the Award as determined by the Committee
consistent with the limitations of the Plan. Award Agreements evidencing Incentive Stock Options shall contain such terms and conditions
as may be necessary to meet the applicable provisions of Section 422 of the Code. The grant of an Award under the Plan shall not confer
any rights upon the Participant holding such Award other than such terms, and subject to such conditions, as are specified in the Plan
as being applicable to such type of Award (or to all Awards) or as are expressly set forth in the Award Agreement.

 

16.2 Forfeiture
Events/Representations. The Committee may specify in an Award Agreement at the time of the Award that the Participant’s rights,
payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence
of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events shall
include, but shall not be limited to, termination of Continuous Service for Cause, violation of material Company policies, breach of noncompetition,
confidentiality or other restrictive covenants that may apply to the Participant, or other conduct by the Participant that is detrimental
to the business or reputation of the Company. The Committee may also specify in an Award Agreement that the Participant’s rights,
payments and benefits with respect to an Award shall be conditioned upon the Participant making a representation regarding compliance
with noncompetition, confidentiality or other restrictive covenants that may apply to the Participant and providing that the Participant’s
rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment on account
of a breach of such representation. Notwithstanding the foregoing, the confidentiality restrictions set forth in an Award Agreement shall
not, and shall not be interpreted to, impair a Participant from exercising any legally protected whistleblower rights (including under
Rule 21 of the Exchange Act). In addition and without limitation of the foregoing, any amounts paid hereunder shall be subject to recoupment
in accordance with The Dodd–Frank Wall Street Reform and Consumer Protection Act and any implementing regulations thereunder, any
“clawback” policy adopted by the Company or as is otherwise required by applicable law or stock exchange listing condition.

 

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16.3 No
Assignment or Transfer; Beneficiaries.

 

(a) Awards
under the Plan shall not be assignable or transferable by the Participant, except by will or by the laws of descent and distribution,
and shall not be subject in any manner to assignment, alienation, pledge, encumbrance or charge. Notwithstanding the foregoing, the Committee
may provide in an Award Agreement that the Participant shall have the right to designate a beneficiary or beneficiaries who shall be entitled
to any rights, payments or other benefits specified under an Award following the Participant’s death. During the lifetime of a Participant,
an Award shall be exercised only by such Participant or such Participant’s guardian or legal representative. In the event of a Participant’s
death, an Award may, to the extent permitted by the Award Agreement, be exercised by the Participant’s beneficiary as designated
by the Participant in the manner prescribed by the Committee or, in the absence of an authorized beneficiary designation, by the legatee
of such Award under the Participant’s will or by the Participant’s estate in accordance with the Participant’s will
or the laws of descent and distribution, in each case in the same manner and to the same extent that such Award was exercisable by the
Participant on the date of the Participant’s death.

 

(b) Limited
Transferability Rights. Notwithstanding anything else in this Section 16.3 to the contrary, the Committee may in its discretion
provide in an Award Agreement that an Award in the form of a Nonqualified Stock Option, share-settled Stock Appreciation Right, Restricted
Stock, Performance Share or share-settled Other Stock-Based Award may be transferred, on such terms and conditions as the Committee deems
appropriate, either (i) by instrument to the Participant’s “Immediate Family” (as defined below); (ii) by instrument
to an inter vivos or testamentary trust (or other entity) in which the Award is to be passed to the Participant’s designated beneficiaries,
or (iii) by gift to charitable institutions. Any transferee of the Participant’s rights shall succeed and be subject to all of the
terms of the applicable Award Agreement and the Plan. “Immediate Family” means any child, stepchild, grandchild, parent,
stepparent, grandparent, 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, and shall include adoptive relationships.

 

16.4 Rights
as Stockholder. A Participant shall have no rights as a holder of shares of Common Stock with respect to any unissued shares of Common
Stock covered by an Award until the date the Participant becomes the holder of record of such securities. Except as provided in Section
4.2 hereof, no adjustment or other provision shall be made for dividends or other stockholder rights, except to the extent that the
Award Agreement provides for dividend payments or dividend equivalent rights.

 

16.5 Employment
or Continuous Service. Nothing in the Plan, in the grant of any Award or in any Award Agreement shall confer upon any Eligible Person
or Participant any right to continue in Continuous Service, or interfere in any way with the right of the Company or any of its Subsidiaries
to terminate the employment or other service relationship of an Eligible Person or Participant for any reason at any time.

 

    20

     

    

 

16.6 Fractional
Shares. In the case of any fractional share or unit resulting from the grant, vesting, payment or crediting of dividends or dividend
equivalents under an Award, the Committee shall have the discretionary authority to (i) disregard such fractional share or unit; (ii)
round such fractional share or unit to the nearest lower or higher whole share or unit; or (iii) convert such fractional share or unit
into a right to receive a cash payment.

 

16.7 Other
Compensation and Benefit Plans. The amount of any compensation deemed to be received by a Participant pursuant to an Award shall not
constitute includable compensation for purposes of determining the amount of benefits to which a Participant is entitled under any other
compensation or benefit plan or program of the Company or any Subsidiary, including, without limitation, under any bonus, pension, profit-sharing,
life insurance, salary continuation or severance benefits plan, except to the extent specifically provided by the terms of any such plan.

 

16.8 Plan
Binding on Transferees. The Plan shall be binding upon the Company, its transferees and assigns, and the Participant, the Participant’s
executor, administrator and permitted transferees and beneficiaries. In addition, all obligations of the Company under this Plan with
respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result
of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the
Company.

 

16.9 Foreign
Jurisdictions. The Committee may adopt, amend and terminate such arrangements and grant such Awards, not inconsistent with the intent
of the Plan, as it may deem necessary or desirable to comply with any tax, securities, regulatory or other laws of other jurisdictions
with respect to Awards that may be subject to such laws. The terms and conditions of such Awards may vary from the terms and conditions
that would otherwise be required by the Plan solely to the extent the Committee deems necessary for such purpose. Moreover, the Board
may approve such supplements to or amendments, restatements or alternative versions of the Plan, not inconsistent with the intent of the
Plan, as it may consider necessary or appropriate for such purposes, without thereby affecting the terms of the Plan as in effect for
any other purpose.

 

16.10 No
Obligation to Notify or Minimize Taxes. The Company will have no duty or obligation to any Participant to advise such holder as to
the time or manner of exercising an Award. Furthermore, the Company will have no duty or obligation to warn or otherwise advise such holder
of a pending termination or expiration of an Award or a possible period in which the Award may not be exercised. The Company has no duty
or obligation to minimize the tax consequences of an Award to the holder of such Award.

 

16.11 Corporate
Action Constituting Grant of Awards. Corporate action constituting a grant by the Company of an Award to any Participant will be deemed
completed as of the date of such corporate action, unless otherwise determined by the Board, regardless of when the instrument, certificate,
or letter evidencing the Award is communicated to, or actually received or accepted by, the Participant. In the event that the corporate
records (e.g., Board or Committee consents, resolutions or minutes) documenting the corporate action constituting the grant contain terms
(e.g., exercise price, vesting schedule or number of shares) that are inconsistent with those in the Award Agreement as a result of a
clerical error in the papering of the Award Agreement, the corporate records will control and the Participant will have no legally binding
right to the incorrect term in the Award Agreement.

 

    21

     

    

 

16.12 Change
in Time Commitment. In the event a Participant’s regular level of time commitment in the performance of the Participant’s
services for the Company and any Affiliates is reduced (for example, and without limitation, if the Participant is an employee of the
Company and the employee has a change in status from a full-time employee to a part-time employee) after the date of grant of any Award
to the Participant, the Committee has the right in its sole discretion to (i) make a corresponding reduction in the number of shares subject
to any portion of such Award that is scheduled to vest or become payable after the date of such change in time commitment; and (ii) in
lieu of or in combination with such a reduction, extend the vesting or payment schedule applicable to such Award. In the event of any
such reduction, the Participant will have no right with respect to any portion of the Award that is so reduced or extended.

 

16.13 Substitute
Awards in Corporate Transactions. Nothing contained in the Plan shall be construed to limit the right of the Committee to grant Awards
under the Plan in connection with the acquisition, whether by purchase, merger, consolidation or other corporate transaction, of the business
or assets of any corporation or other entity. Without limiting the foregoing, the Committee may grant Awards under the Plan to an employee
or director of another corporation who becomes an Eligible Person by reason of any such corporate transaction in substitution for awards
previously granted by such corporation or entity to such person. The terms and conditions of the substitute Awards may vary from the terms
and conditions that would otherwise be required by the Plan solely to the extent the Committee deems necessary for such purpose. Any shares
of Common Stock subject to these substitute Awards shall not be counted against any of the maximum share limitations set forth in the
Plan.

 

	17.	Legal Compliance

 

17.1 Securities
Laws. No shares of Common Stock will be issued or transferred pursuant to an Award unless and until all then applicable requirements
imposed by Federal and state securities and other laws, rules and regulations and by any regulatory agencies having jurisdiction, and
by any exchanges upon which the shares of Common Stock may be listed, have been fully met. As a condition precedent to the issuance of
shares pursuant to the grant or exercise of an Award, the Company may require the Participant to take any reasonable action to meet such
requirements. The Committee may impose such conditions on any shares of Common Stock issuable under the Plan as it may deem advisable,
including, without limitation, restrictions under the Securities Act, as amended, under the requirements of any exchange upon which such
shares of the same class are then listed, and under any blue sky or other securities laws applicable to such shares. The Committee may
also require the Participant to represent and warrant at the time of issuance or transfer that the shares of Common Stock are being acquired
only for investment purposes and without any current intention to sell or distribute such shares. All Common Stock issued pursuant to
the terms of this Plan shall constitute “restricted securities,” as that term is defined in Rule 144 promulgated pursuant
to the Securities Act, and may not be transferred except in compliance herewith and with the registration requirements of the Securities
Act or an exemption therefrom. Certificates representing Common Stock acquired pursuant to an Award may bear such legend as the Company
may consider appropriate under the circumstances. If an Award is made to an Eligible Person who is subject to Chinese jurisdiction, and
approval of the Award by China’s State Administration of Foreign Exchange is needed, the Award may be converted to cash or other
equivalent amount if and to the extent that such approval is not obtained.

 

    22

     

    

 

17.2 Incentive
Arrangement. The Plan is designed to provide an on-going, pecuniary incentive for Participants to produce their best efforts to increase
the value of the Company. The Plan is not intended to provide retirement income or to defer the receipt of payments hereunder to the termination
of a Participant’s employment or beyond. The Plan is thus intended not to be a pension or welfare benefit plan that is subject to
Employee Retirement Income Security Act of 1974 (“ERISA”), and shall be construed accordingly. All interpretations
and determinations hereunder shall be made on a basis consistent with the Plan’s status as not an employee benefit plan subject
to ERISA.

 

17.3 Unfunded
Plan. The adoption of the Plan and any reservation of shares of Common Stock or cash amounts by the Company to discharge its obligations
hereunder shall not be deemed to create a trust or other funded arrangement. Except upon the issuance of Common Stock pursuant to an Award,
any rights of a Participant under the Plan shall be those of a general unsecured creditor of the Company, and neither a Participant nor
the Participant’s permitted transferees or estate shall have any other interest in any assets of the Company by virtue of the Plan.
Notwithstanding the foregoing, the Company shall have the right to implement or set aside funds in a grantor trust, subject to the claims
of the Company’s creditors or otherwise, to discharge its obligations under the Plan.

 

17.4 Section
409A Compliance. To the extent applicable, it is intended that the Plan and all Awards hereunder comply with the requirements of Section
409A of the Code or an exemption thereto, and the Plan and all Award Agreements shall be interpreted and applied by the Committee in a
manner consistent with this intent in order to avoid the imposition of any additional tax under Section 409A of the Code. Notwithstanding
anything in the Plan or an Award Agreement to the contrary, in the event that any provision of the Plan or an Award Agreement is determined
by the Committee, in its sole discretion, to not comply with the requirements of Section 409A of the Code or an exemption thereto, the
Committee shall, in its sole discretion, have the authority to take such actions and to make such interpretations or changes to the Plan
or an Award Agreement as the Committee deems necessary, regardless of whether such actions, interpretations, or changes shall adversely
affect a Participant, subject to the limitations, if any, of applicable law. If an Award is subject to Section 409A of the Code, any payment
made to a Participant who is a “specified employee” of the Company or any Subsidiary shall not be made before the date that
is six months after the Participant’s “separation from service” to the extent required to avoid the adverse consequences
of Section 409A of the Code. For purposes of this Section 17.4, the terms “separation from service” and “specified
employee” shall have the meanings set forth in Section 409A of the Code. In no event whatsoever shall the Company be liable for
any additional tax, interest or penalties that may be imposed on any Participant by Section 409A of the Code or any damages for failing
to comply with Section 409A of the Code.

 

17.5 Tax
Withholding.

 

(a) The
Company shall have the power and the right to deduct or withhold, or require a participant to remit to the Company, the minimum statutory
amount to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any
taxable event arising as a result of this Plan, but in no event shall such deduction or withholding or remittance exceed the minimum statutory
withholding requirements unless permitted by the Company and such additional withholding amount will not cause adverse accounting consequences
and is permitted under Applicable Law.

 

(b) Subject
to such terms and conditions as shall be specified in an Award Agreement, a Participant may, in order to fulfill the withholding obligation,
(i) tender previously-acquired shares of Common Stock or have shares of stock withheld from the exercise; provided that the shares
tendered or withheld, as applicable, have an aggregate Fair Market Value sufficient to satisfy in whole or in part the applicable withholding
taxes; and/or (ii) utilize the cashless exercise procedure described in Section 7.5.

 

    23

     

    

 

(c) Notwithstanding
the foregoing, a Participant may not use shares of Common Stock to satisfy the withholding requirements to the extent that (i) there is
a substantial likelihood that the use of such form of payment or the timing of such form of payment would subject the Participant to a
substantial risk of liability under Section 16 of the Exchange Act; (ii) such withholding would constitute a violation of the provisions
of any law or regulation (including the Sarbanes-Oxley Act of 2002); or (iii) such withholding would cause adverse accounting consequences
for the Company.

 

17.6 No
Guarantee of Tax Consequences. Neither the Company, the Board, the Committee nor any other Person make any commitment or guarantee
that any federal, state, local or foreign tax treatment will apply or be available to any Participant or any other Person hereunder.

 

17.7 Severability.
If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction,
the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall
remain enforceable in any other jurisdiction.

 

17.8 Stock
Certificates; Book Entry Form. Notwithstanding any provision of the Plan to the contrary, unless otherwise determined by the Committee
or required by any applicable law, rule or regulation, any obligation set forth in the Plan pertaining to the delivery or issuance of
stock certificates evidencing shares of Common Stock may be satisfied by having issuance and/or ownership of such shares recorded on the
books and records of the Company (or, as applicable, its transfer agent or stock plan administrator).

 

17.9 Governing
Law. The Plan and all rights hereunder shall be subject to and interpreted in accordance with the laws of the State of Delaware, without
reference to the principles of conflicts of laws, and to applicable Federal securities laws.

 

	18.	Effective Date, Amendment and Termination

 

18.1 Effective
Date. The effective date of the Plan shall be the date on which the Plan is approved by the requisite percentage of the holders of
the Common Stock of the Company; provided, however, that Awards granted under the Plan subsequent to the approval of the Plan by
the Board shall be valid if such stockholder approval occurs within one year of the date on which such Board approval occurs. If such
stockholder approval is not obtained within one year after the date of the Board’s approval of the Plan, then all Awards previously
granted under the Plan shall terminate and cease to be outstanding, and no further Awards shall be granted under the Plan.

 

18.2 Amendment;
Termination. The Board may suspend or terminate the Plan (or any portion thereof) at any time and may amend the Plan at any time and
from time to time in such respects as the Board may deem advisable or in the best interests of the Company or any Subsidiary; provided,
however, that (a) no such amendment, suspension or termination shall materially and adversely affect the rights of any Participant
under any outstanding Awards, without the consent of such Participant; (b) to the extent necessary and desirable to comply with any applicable
law, regulation, or stock exchange rule, the Company shall obtain stockholder approval of any Plan amendment in such a manner and to such
a degree as required; and (c) stockholder approval is required for any amendment to the Plan that (i) increases the number of shares of
Common Stock available for issuance under the Plan, or (ii) changes the persons or class of persons eligible to receive Awards. The Plan
will continue in effect until terminated in accordance with this Section 18.1; provided, however, that no Award will be
granted hereunder on or after the 10th anniversary of the date of the Plan’s initial adoption by the Board (the “Expiration
Date”); but provided further, that Awards granted prior to such Expiration Date may extend beyond that date.

 

Plan
History

 

	Date Approved by Board	 	Date Approved by
 Stockholders	 	Description of Action Taken
	5.20.2022	 	July 25.2022	 	Initial Approval of Plan

 

 

24Exhibit 10.2

 

NONQUALIFIED STOCK OPTION GRANT AGREEMENT

 

VIRPAX PHARMACEUTICALS, INC.

 

This Stock Option Grant Agreement
(the “Grant Agreement”) is made and entered into effective on the Date of Grant set forth in Exhibit A (the
“Date of Grant”) by and between Virpax Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
and the individual named in Exhibit A hereto (the “Optionee”).

 

WHEREAS, the Company desires
to provide the Optionee an incentive to participate in the success and growth of the Company through the opportunity to earn a proprietary
interest in the Company; and

 

WHEREAS, to give effect to
the foregoing intention, the Company desires to grant the Optionee an option pursuant to the Virpax Pharmaceuticals, Inc. 2022 Equity
Incentive Plan (the “Plan”) to acquire the Company’s common stock, par value $0.00001 per share (the “Common
Stock”);

 

NOW, THEREFORE, in consideration
of the mutual covenants hereinafter set forth and for good and valuable consideration, the parties hereto agree as follows:

 

1. Grant.
The Company hereby grants the Optionee a Nonqualified Stock Option (the “Option”) to purchase up to the number of shares
of Common Stock (the “Shares”) set forth in Exhibit A hereto at the exercise price per Share (the “Exercise
Price”) set forth in Exhibit A, and on the vesting schedule set forth in Exhibit A, subject to the terms and conditions
set forth herein and the provisions of the Plan, the terms of which are incorporated herein by reference. Capitalized terms used but not
otherwise defined in this Grant Agreement shall have the meanings as set forth in the Plan.

 

2. Exercise
Period Following Termination of Continuous Service. This Option shall terminate and be canceled to the extent not exercised within
ninety (90) days after the Optionee’s Continuous Service terminates, except that if such termination is due to the death or Disability
of the Optionee, this Option shall terminate and be canceled one (1) year from the date of termination of Continuous Service. Notwithstanding
the foregoing, in the event that the Optionee’s Continuous Service is terminated for Cause, then the Option shall immediately terminate
on the date of such termination of Continuous Service and shall not be exercisable for any period following such date. In no event, however,
shall this Option be exercised later than the Expiration Date set forth in Exhibit A and in no event shall this Option be exercised
for more Shares than the Shares which otherwise have become exercisable as of the date of termination.

 

3. Method
of Exercise. This Option is exercisable by delivery to the Company of an exercise notice (the “Exercise Notice”)
in the form set forth in Exhibit B attached hereto or by such other form satisfactory to the Committee or by such other
form or means as the Committee may permit or require. Any Exercise Notice shall state or provide the number of Shares with respect to
which the Option is being exercised (the “Exercised Shares”), and include such other representations and agreements
as may be required by the Company pursuant to the provisions of the Plan. The Exercise Notice shall be accompanied by payment of the aggregate
Exercise Price for the Exercised Shares in (i) cash; (ii) check; or (iii) such other manner as is acceptable to the Committee, provided
that such form of consideration is permitted by the Plan and by applicable law. Upon exercise of the Option by the Optionee and prior
to the delivery of such Exercised Shares, the Company shall have the right to require the Optionee to satisfy applicable Federal and state
tax income tax withholding requirements and the Optionee’s share of applicable employment withholding taxes in a method satisfactory
to the Company. Notwithstanding the foregoing, no Exercised Shares shall be issued unless such exercise and issuance complies with the
requirements relating to the administration of stock option plans and other applicable equity plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted, and
the applicable laws of any foreign country or jurisdiction where stock grants or other applicable equity grants are made under the Plan;
assuming such compliance, for income tax purposes the Exercised Shares shall be considered transferred to the Optionee on the date the
Option is exercised with respect to such Shares.

 

     

     

    

 

4. Covenants
Agreement. This Option shall be subject to forfeiture at the election of the Company in the event that the Optionee breaches any agreement
between the Optionee and the Company with respect to noncompetition, nonsolicitation, assignment of inventions and contributions and/or
nondisclosure obligations of the Optionee.

 

5. Taxes.
By executing this Grant Agreement, Optionee acknowledges and agrees that Optionee is solely responsible for the satisfaction of any applicable
taxes that may be imposed on Optionee that arise as a result of the grant, vesting or exercise of the Option, including without limitation
any taxes arising under Section 409A of the Code (regarding deferred compensation) or Section 4999 of the Code (regarding golden parachute
excise taxes), and that neither the Company nor the Committee shall have any obligation whatsoever to pay such taxes or otherwise indemnify
or hold Optionee harmless from any or all of such taxes.

 

6. Non-Transferability
of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may
be exercised during the lifetime of the Optionee only by the Optionee. The terms of the Plan and this Grant Agreement shall be binding
upon the executors, administrators, heirs, successors and assigns of the Optionee.

 

7. Securities
Matters. All Shares and Exercised Shares shall be subject to the restrictions on sale, encumbrance and other disposition provided
by Federal or state law. The Company shall not be obligated to sell or issue any Shares or Exercised Shares pursuant to this Grant Agreement
unless, on the date of sale and issuance thereof, such Shares are either registered under the Securities Act of 1933, as amended (the
“Securities Act”), and all applicable state securities laws, or are exempt from registration thereunder. Regardless
of whether the offering and sale of Shares under the Plan have been registered under the Securities Act, or have been registered or qualified
under the securities laws of any state, the Company at its discretion may impose restrictions upon the sale, pledge or other transfer
of such Shares (including the placement of appropriate legends on stock certificates or the imposition of stop-transfer instructions)
if, in the judgment of the Company, such restrictions are necessary in order to achieve compliance with the Securities Act or the securities
laws of any state or any other law.

 

8. Investment
Purpose. The Optionee represents and warrants that unless the Shares are registered under the Securities Act, any and all Shares acquired
by the Optionee under this Grant Agreement will be acquired for investment for the Optionee’s own account and not with a view to,
for resale in connection with, or with an intent of participating directly or indirectly in, any distribution of such Shares within the
meaning of the Securities Act. The Optionee agrees not to sell, transfer or otherwise dispose of such Shares unless they are either (1)
registered under the Securties Act and all applicable state securities laws, or (2) exempt from such registration in the opinion of Company
counsel.

 

9. Lock-Up
Agreement. The Optionee hereby agrees that in the event that the Optionee exercises this Option during a period in which any directors
or officers of the Company have agreed with one or more underwriters not to sell securities of the Company, then, as a condition to such
exercise, the Optionee shall enter into an agreement, in form and substance satisfactory to the Company, pursuant to which the Optionee
shall agree to restrictions on transferability of the Shares comparable to the restrictions agreed upon by such directors or officers
of the Company.

 

10. Other
Plans. No amounts of income received by the Optionee pursuant to this Grant Agreement shall be considered compensation for purposes
of any pension or retirement plan, insurance plan or any other employee benefit plan of the Company or its subsidiaries, unless otherwise
expressly provided in such plan.

 

11. No
Guarantee of Continued Service. The Optionee acknowledges and agrees that the right to exercise the Option pursuant to the exercise
schedule hereof is earned only through Continuous Service and such other requirements, if any, as are set forth in Exhibit A (and not
through the act of being hired, being granted an option or purchasing shares hereunder). The Optionee further acknowledges and agrees
that (i) this Grant Agreement, the transactions contemplated hereunder and the exercise schedule set forth herein do not constitute an
express or implied promise of continued employment or service for the exercise period or for any other period, and shall not interfere
with the Optionee’s right or the right of the Company or its Subsidiaries to terminate the employment or service relationship at
any time, with or without cause, subject to the terms of any written employment agreement that the Optionee may have entered into with
the Company or any of its Subsidiaries; and (ii) the Company would not have granted this Option to the Optionee but for these acknowledgements
and agreements.

 

    -2-

     

    

 

12. Entire
Agreement; Governing Law. The Plan is incorporated herein by reference. The Plan and this Grant Agreement constitute the entire agreement
of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the
Company and the Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest
except by means of a writing signed by the Company and the Optionee. In the event of any conflict between this Grant Agreement and the
Plan, the Plan shall be controlling, except as otherwise specifically provided in the Plan. This Grant Agreement shall be construed under
the laws of the State of Delaware, without regard to conflict of laws principles.

 

13. Opportunity
for Review. Optionee and the Company agree that this Option is granted under and governed by the terms and conditions of the Plan
and this Grant Agreement. The Optionee has reviewed the Plan and this Grant Agreement in their entirety, has had an opportunity to obtain
the advice of counsel prior to executing this Grant Agreement and fully understands all provisions of the Plan and this Grant Agreement.
The Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions
relating to the Plan and this Grant Agreement. The Optionee further agrees to notify the Company upon any change in the residence address
indicated herein.

 

14.Section 409A.This
Option is intended to be excepted from coverage under Section 409A and shall be administered, interpreted and construed accordingly. The
Company may, in its sole discretion and without the Optionee’s consent, modify or amend the terms of this Grant Agreement, impose
conditions on the timing and effectiveness of the exercise of the Option by Optionee, or take any other action it deems necessary or advisable,
to cause the Option to be excepted from Section 409A (or to comply therewith to the extent the Company determines it is not excepted).

 

15. Recoupment.
In the event the Company restates its financial statements due to material noncompliance with any financial reporting requirements under
applicable securities laws, any shares issued pursuant to this Agreement for or in respect of the year that is restated, or the prior
three years, may be recovered to the extent the shares issued exceed the number that would have been issued based on the restatement.
In addition and without limitation of the foregoing, any amounts paid hereunder shall be subject to recoupment in accordance with The
Dodd–Frank Wall Street Reform and Consumer Protection Act and any implementing regulations thereunder, any clawback policy adopted
by the Company or as is otherwise required by applicable law or stock exchange listing conditions.

 

[Signature Page Follows]

 

    -3-

     

    

 

IN WITNESS WHEREOF, the parties hereto have executed
this Grant Agreement as of the date set forth in Exhibit A.

 

	 	VIRPAX PHARMACEUTICALS, INC.
	 	 
	 	By:	 
	 	Name:	                               
	 	Title:	 
	 	 
	 	OPTIONEE
	 	 
	 	 	 
	 	Name:	 

 

    -4-

     

    

 

EXHIBIT
A

 

NONQUALIFIED STOCK OPTION GRANT AGREEMENT

 

VIRPAX PHARMACEUTICALS, INC.

 

 

		(a).	Optionee’s Name:____________________________________________________________________________

 

		(b).	Date of Grant:________________________________

 

		(c).	Number of Shares Subject to the Option:________________________________

 

		(d).	Exercise Price: $______ per Share

 

		(e).	Expiration Date:________________________________

 

		(f).	Vesting Schedule:

 

_______ (Initials)

 

Optionee

 

_______ (Initials)

 

Company Signatory

 

    -5-

     

    

 

EXHIBIT
B

 

FORM
OF EXERCISE NOTICE

 

Virpax Pharmaceuticals, Inc.

Attention: Corporate Secretary

 

1. Exercise of Option. Effective as of
today, ________________, 20__, the undersigned (“Purchaser”) hereby elects to purchase ______________ shares (the “Shares”)
of the Common Stock of Virpax Pharmaceuticals, Inc. (the “Company”) under and pursuant to the Virpax Pharmaceuticals,
Inc. 2022 Equity Incentive Plan (the “Plan”) and the Nonqualified Stock Option Grant Agreement dated _____________,
20__ (the “Option Agreement”). The per share purchase price for the Shares shall be $_____ for an aggregate purchase
price of $_____ (“Purchase Price”), as required by the Option Agreement. All of the Shares shall represent Shares acquired
by reason of the exercise of a Non-Qualified Stock Option

 

2. Delivery of Payment. Purchaser herewith
delivers to the Company the full Purchase Price in the following form and manner as set forth in Section 3 of the Option
Agreement (check appropriate box below):

 

		☐	Cash
                                            in an amount equal to the Purchase Price

		☐	Check
                                            in an amount equal to the Purchase Price

		☐	The
                                            surrender of ______ shares of Common Stock, with an aggregate value equal to the Purchase
                                            Price

		[☐	The
                                            withholding of ______ shares of Common Stock, with an aggregate value equal to the Purchase
                                            Price]1

 

3.
Rights as Stockholder. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company) of the Shares, no right to vote or receive dividends or any other rights as a stockholder shall exist
with respect to the Shares covered by the Option Agreement, notwithstanding the exercise of the Option Agreement. The Shares so acquired
shall be issued to the Purchaser as soon as practicable after exercise of the Option Agreement. No adjustment will be made for a dividend
or other right for which the record date is prior to the date of issuance.

 

4. Tax Consultation. Purchaser understands
that Purchaser may suffer adverse tax consequences as a result of Purchaser’s purchase or disposition of the Shares. Purchaser represents
that Purchaser has consulted with any tax consultants Purchaser deems advisable in connection with the purchase or disposition of the
Shares and that Purchaser is not relying on the Company for any tax advice.

 

 

		1	Drafting Note: Delete if Purchaser will not be permitted
to purchase Shares via a cashless exercise.

 

    -6-

     

    

 

5. Investment Representations. Purchaser
represents, warrants and covenants that Purchaser understands that (i) the Shares have not been registered under the Securities Act of
1933 (the “Securities Act”) and are “restricted securities” within the meaning of Rule 144 under the Securities
Act; (ii) the Shares cannot be sold, transferred or otherwise disposed of unless they are subsequently registered under the Securities
Act or an exemption from registration is then available; (iii) in any event, the exemption from registration under Rule 144 will not be
available for at least one year (or, if the Shares were acquired in compliance with Rule 701 of the Securities Act, ninety days after
an initial public offering of the Common Stock) and even then will not be available unless a public market then exists for the Common
Stock, adequate information concerning the Company is then available to the public, and other terms and conditions of Rule 144 are met;
and (iv) there is now no registration statement on file with the Securities and Exchange Commission with respect to any stock of the Company
and the Company has no obligation or current intention to register the Shares under the Securities Act.

 

Notice. All notices and other communications
given or made hereunder shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be notified;
(ii) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, and if not so confirmed,
then on the next business day; (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage
prepaid; or (iv) one (1) business day after the business day of deposit with a nationally recognized overnight courier, specifying next
business day delivery, with written verification of receipt. Subject to the limitations set forth in Section 232(e) of the General Corporation
Law of the state of Delaware (the “DGCL”), the Purchaser consents to the delivery of any notice or communications to
stockholders given by the Company under this Agreement, the DGCL or the Company’s Certificate of Incorporation or Bylaws by (a)
facsimile telecommunication to the facsimile number set forth below (or to any other facsimile number for the Purchaser in the Company’s
records); (b) electronic mail to the electronic mail address set forth below (or to any other electronic mail address for the Purchaser
in the Company’s records); (c) posting on an electronic network together with separate notice to the Purchaser of such specific
posting; or (d) any other form of electronic transmission (as defined in the DGCL) directed to the Purchaser. This consent may be revoked
by the Purchaser by written notice to the Company (the “Consent Revocation”) and may be deemed revoked in the circumstances
specified in Section 232 of the DGCL. A copy of the Consent Revocation (which shall not constitute notice) shall also be sent to Michael
J. Lerner at Lowenstein Sandler LLP, One Lowenstein Drive, Roseland, New Jersey 07068.

 

Entire Agreement; Governing Law. The Plan and Option Agreement are incorporated herein by reference. This Agreement, the Plan and
the Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety
all prior undertakings and agreements of the Company and the Purchaser with respect to the subject matter hereof, and may not be modified
adversely to the Purchaser’s interest except by means of a writing signed by the Company and Purchaser. This Agreement will be interpreted
and enforced under the laws of the state of Delaware, without regard to conflict or choice of law principles.

 

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    -7-

     

    

 

	Submitted By:	Accepted By:
	 	 
	PURCHASER	VIRPAX PHARMACEUTICALS, INC.

 

	By:	 	 	By:	 
	Name:	 	 	Name:	 
	Address:	 	 	Address:	 
	Email:	 	 	Email:	 
	Fax:	 	 	Fax:	 
	Date:	 	 	Date:

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