Document:

Exhibit 10.25

 

Loan Agreement

 

(REVOLVING LINE
OF CREDIT) 

 

This Loan Agreement (“Agreement”)
is made on November___, 2012, by and between Phoenix Bulk Carriers (US) LLC, a limited liability company formed under the
laws of Delaware and having an address at 109 Long Wharf, Second Floor, Newport RI 02840 (the “Borrower”) and
Rockland Trust Company, a Massachusetts trust company having an address at 288 Union Street, Rockland, MA 02370 (together
with its successors and assigns as holder of the Note, “Bank”).

 

For good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

		1.	DEFINITIONS

 

As used herein, the following terms shall
have the following meanings:

 

Advances: Advances made by
the Bank to the Borrower under the Line of Credit.

 

Applicable Law: All laws,
rules, regulations, orders and requirements of all federal, state, county and municipal governments, and instrumentalities and
officers thereof.

 

Business Day: Any day which
is neither a Saturday or Sunday nor a legal holiday on which commercial banks are authorized or required to be closed in Boston,
Massachusetts.

 

Charter Documents: Borrower’s
Certificate of Formation and Operating Agreement.

 

Conditions of Lending: Shall
have the meaning set forth in Section 2.4 below.

 

Default and Event of Default:
Defined in Section 5.

 

Government Agency: The United
States, British Virgin Islands, and/or Bermuda governments or any department, agency or instrumentality thereof and any federal,
state, or municipal agency thereof.

 

Guaranties: Those certain
Guaranties granted by each of Edward Coll, Claus Boggild and Anthony Laura (collectively, the “Guarantors”).

 

Hazardous Substance: Any substance,
material or waste that is or becomes designated or regulated as "toxic," "hazardous," "pollutant,"
or "contaminant" or a similar designation or regulation under any current or future Applicable Law, including, without
limitation, petroleum or natural gas.

 

Line of Credit: The demand
line of credit established under this Agreement.

 

Loan: Collectively, the Advances
granted pursuant to the Line of Credit by the Bank to the Borrower, as the same is evidenced by the Note, and as further evidenced
and secured by the other Loan Documents.

 

Loan Documents: Collectively,
the Note, any Guaranties, this Agreement, the Security Agreements and all other documents and instruments evidencing, securing
or relating to the Line of Credit, together with all extensions, renewals, modifications and amendments thereof.

 

Maximum Revolving Commitment:
Three Million dollars ($3,000,000.00) outstanding at any one time.

 

Note: The promissory note
dated the date of this Agreement, given by the Borrower to the order of Bank and evidencing the Line of Credit, together with all
extensions, renewals, modifications and amendments thereof.

 

Obligations: Any and all of
the covenants, promises, representations, warranties and other obligations made or owing by the Borrower to, or due to, Bank under
or as set forth in the Note, this Agreement, and/or the other Loan Documents, and any and all extensions, renewals, modifications
and amendments of any of the foregoing. The term “Obligations” includes but is not limited to the Borrower’s
indebtedness under the Note.

 

Security Agreements: The security
agreement of Borrower in favor of the Bank creating security interests in the assets of the Borrower, and the Pledge Agreement
creating a security interest in certain assets of Anthony Laura.

 

All accounting terms not specifically defined
in this Agreement shall be construed in accordance with generally accepted accounting principles (“GAAP”) and
all financial data submitted pursuant to this Agreement and all financial records kept by the Borrower shall be prepared (except
as hereinafter expressly provided) and kept in accordance with such principles.

 

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		2.	THE Line of Credit, proceeds and payments

 

2.1       Line of Credit. Concurrently
herewith the Bank is establishing the Line of Credit in favor of the Borrower, who shall be liable to the Bank for the amounts
advanced thereunder. Subject to the terms and conditions of this Agreement, including but not limited to the Conditions of Lending,
the Bank shall make Advances to the Borrower under the Line of Credit up to a maximum amount at any time outstanding of not more
than the Maximum Revolving Commitment. To evidence the Line of Credit and the Advances, the Borrower has delivered the Note to
Bank. The Line of Credit and Advances will be secured and/or guaranteed in accordance with the Loan Documents. Within the Line
of Credit, the Borrower may borrow, repay, and reborrow (without penalty or premium). To the extent that the Loan exceeds the Maximum
Revolving Commitment at any time, such excess shall be due and payable immediately upon demand from the Bank. Borrower shall make
payments of principal and interest when and at the rate provided in the Note. All payments by Borrower shall be made without deduction,
set-off or counterclaim.

 

2.2       Repayment of Loan. The Line
of Credit may be terminated at any time by the Bank upon the occurrence of an Event of Default under any of the Loan Documents,
and each Advance and the Loan will be due and payable on demand. Provided that the Line of Credit has not been terminated earlier
by default or otherwise, the Line of Credit will be available for advances until November ____, 2013 (the “Credit Expiration
Date”). Unless the Line of Credit is renewed by the Bank, no further advances will be permitted after the Credit Expiration
Date. The availability of future Advances under the Line of Credit will be considered renewed if and only if the Bank has sent
the Borrower a written notice of renewal (“Renewal Notice”) effective as of or prior to the Credit Expiration
Date. Renewal will be in the sole discretion of the Bank and may require certain additional conditions or changes as a condition
of renewal. If renewed, the Line of Credit will remain subject to all the terms and conditions set forth in the Loan Documents,
except that the Credit Expiration Date shall be the date set forth in the Renewal Notice, and such process for renewal will apply
to any subsequent renewal of the Line of Credit.

 

2.3       Procedures for Advances. The
Borrower or any authorized representative thereof will give the Bank written, telecopied or telephonic notice specifying the amount
and date of each requested Advance hereunder; provided, however, that notice given by telephone hereunder shall be
followed by prompt written confirmation by the Borrower or its representative. Provided that all conditions, including the Conditions
of Lending, set forth in this Agreement have been satisfied with respect to such requested Advance, an Advance will be made on
the same Business Day as notice is received if notice is received before 3:00 p.m. Boston time, and if received thereafter, the
Advance will be made on the next Business Day.

 

2.4        Conditions of Lending. The
commitment of the Bank to make Advances under the Line of Credit shall be subject to the condition that the Borrower and the Guarantors
shall have delivered to the Bank all documents, instruments and materials required by the Bank and its counsel, the statements,
representations and warranties of the Borrower contained herein are and continue to be true and complete in all material respects,
that no Default or Event of Default has occurred and is continuing; and that each request for an Advance shall constitute and be
deemed to be a representation and warranty to the Bank as to the accuracy and completeness in all material respects of each representation
and warranty. Upon the request of the Bank, the Borrower shall deliver to the Bank a borrowing certificate, in form and substance
satisfactory to Bank, calculating the availability under the Line of Credit and certifying as to the foregoing on the date of each
Advance.

 

2.5       Use of Proceeds. The Advances
shall be used for general working capital purposes of the Borrower. Borrower shall not, directly or indirectly, use all or any
part of the proceeds of the Line of Credit for the purpose of purchasing or carrying any margin stock within the meaning of Regulation
U of the Board of Governors of the Federal Reserve System (the "Board of Governors") or to extend credit to any
Person for the purpose of purchasing or carrying any such margin stock or for any purpose which violates or is inconsistent with
Regulation X of the Board of Governors. No Advance or any part thereof may be used for any personal, family, or household purposes.

 

2.6       Bank’s Records. Bank is
authorized to record on its books all Advances under the Line of Credit and all payments received; however, failure of Bank to
make any such notation, or any error in any such notation, shall not affect any obligation of Borrower to the Bank.

 

2.7       Direct Charge. The Bank may
charge any account of any of the Borrower (other than accounts designated as payroll accounts) with any interest, principal, fees,
costs and charges owing to the Bank and will notify the Borrower of the amount so charged.

 

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3.REPRESENTATIONS
AND WARRANTIES 

 

To induce the Bank to enter into the Line
of Credit and to make Advances thereunder, the Borrower represents and warrants to the Bank, that:

 

3.1        Existence and Good Standing.
Borrower: (i) is a legally existing limited liability company and is in good standing under the laws of Delaware, (ii) is duly
qualified to do business in all jurisdictions where it is legally required to be so qualified where the failure to be so qualified
may have a material adverse effect upon its business or properties, and (iii) has no Subsidiaries. Jurisdictions where the Borrower
is so qualified to do business are as follows: Delaware, Rhode Island.

 

3.2        Authority; No Violation. The
Borrower has the legal power and authority to enter into and perform this Agreement and each of the other Loan Documents to which
it is a party. The Borrower is not in violation of any of the terms of its Charter Documents. The execution, delivery and performance
of this Agreement and each of the other Loan Documents: (i) have been duly authorized by the board of directors or other governing
bodies and/or shareholders or equity owners of the Borrower; (ii) will not require any consent of any third party not obtained;
(iii) will not conflict with or violate the provisions of any of the Borrower’s Charter Documents; (iv) will not violate
Applicable Law or any agreement to which the Borrower or any Guarantor is a party or by which any of their property is bound; and
(v) will not result in the imposition of any lien or encumbrance on any property or assets of the Borrower, except for the liens
created by the Loan Documents.

 

3.3        Enforceability. This Agreement
and each of the other Loan Documents are the valid and binding obligations of the Borrower, enforceable in accordance with their
respective terms.

 

3.4       No Defaults; Compliance with laws.
No event has occurred and is continuing and no condition exists which constitutes or, after notice or lapse of time or both, would
constitute a Default or Event of Default under this Agreement or under any of the other Loan Documents, or under any other agreement
material to the Borrower’s businesses. Borrower is in compliance with all Applicable Laws.

 

3.5       No Suits, etc. There are no
suits, proceedings or investigations pending or threatened against or adversely affecting the Borrower or any Guarantor. No judgment,
decree or order of any court or governmental or administrative body has been issued against the Borrower or any Guarantor and is
outstanding.

 

3.6       Assets of Business; Title to Assets.
There are no assets necessary for the conduct of the Borrower’s business which are not either owned by Borrower or leased
pursuant to leases which are in full force and effect and as to which no default on the part of the Borrower has occurred and is
continuing. The Borrower has good and clear title to all assets which it purports to own, free and clear of all liens and encumbrances,
except security interests in favor of the Bank, if any, and except for such security interests set forth on Schedule 3.6 hereto.

 

3.7       Taxes. The Borrower and each
Guarantor has filed all tax returns of all types required to have been filed and has paid all taxes due. There are no material
assessments or adjustments asserted by any governmental entity relating to the taxes of the Borrower or any Guarantor for any year.

 

3.8       Permits and Licenses. The Borrower
possesses all (a) permits, memberships, franchises, contracts and licenses required and (b) all trademarks, trade names, service
marks, patents, copyrights, and fictitious name rights, necessary to enable the Borrower to conduct its business as now being conducted
and as proposed to be conducted. None of Borrower’s Inventory requires a license from a third party which license is not
in full force and effect. Each of the items included within clauses (a) and/or (b) above are in full force and effect, and none
are the subject of any claim of infringement or other contest of the right of the Borrower to utilize the same.

 

3.9       Labor Matters. There are no
collective bargaining agreements covering the employees of the Borrower and the Borrower has not suffered any strikes, walkouts,
work stoppages or other material labor difficulty within the last five (5) years preceding the date hereof.

 

3.10       Employee Benefit Plans. Each
employee benefit plan of the Borrower, if any, is funded in accordance with no less than the minimum funding standards required
under Applicable Law. Each such plan is in compliance with Applicable Law. No prohibited transactions have occurred and is continuing
with regard to any such plan.

 

3.11      Hazardous Substances. No amount
of any Hazardous Substance in excess of limits allowed by Applicable Law has been disposed of or released or otherwise exists in,
on or under any of the Borrower’s Premises.

 

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3.12       Solvency. The Borrower is “solvent,”
meaning that the fair value of its assets exceeds its liabilities (including contingent liabilities based on a fair estimate of
the amount that can reasonably be expected to become an actual or matured liability) and that Borrower is able to pay all debts
and obligations as they become due.

 

3.13        Accuracy and Completeness of Information.
All information given to Bank with respect to the Borrower and the Guarantors in connection with the Line of Credit, including
but not limited to financial statements and other financial information, is accurate, correct and complete.

 

3.14       Warranties and Representations
Applicable to Guarantors. The representations and warranties set forth in this entire Section 3 above shall be deemed
made by each of the Guarantors and shall be deemed incorporated by reference as a representation and warranty in any Guaranty delivered
to the Bank by each of the Guarantors, except to the extent any of the Guarantors is an individual, in which case those representations
and warranties in Sections 3.1 and 3.2, which by their context apply only to entities, shall not apply to any such individual.

 

4.           COVENANTS

 

Until the Line of Credit shall have been
paid in full, Borrower covenants and agrees as follows:

 

4.1          Payments.
Borrower will pay principal, interest, fees and all other amounts payable under the Note and/or this Agreement when and as due.

 

4.2          Maintain
Existence. The Borrower will maintain its existence and rights in the jurisdiction of its organization and in its principal
place of business and in each other jurisdiction wherever it is legally required to be qualified to do business.

 

4.3          Compliance
with Laws. Borrower will comply with the requirements of all Applicable Laws, including but not limited to laws governing the
payment of taxes, the storage and handling of Hazardous Substances and laws governing labor and employment.

 

4.4          Insurance.
Borrower will maintain without interruption insurance coverage with duly licensed companies as the Bank may reasonably approve
for (a) property coverage for all tangible collateral for the Line of Credit in an amount equal to the lesser of (i) the Maximum
Revolving Commitment, and (ii) the full replacement value of such collateral; (b) general liability coverage, which shall provide
coverage against such risks as are customary for other companies engaged in the same lines of business as Borrower and such other
risks as the Bank may reasonably require, such insurance to be payable in case of loss to the Bank as loss payee (as its interest
may appear); (c) public liability in such amount as Bank may reasonably require, naming Bank as an additional insured, (d) workers
compensation insurance, as may be required by Applicable Law; and (e) such other coverages, including but not limited to business
interruption insurance as the Bank may determine is reasonable and necessary. Prior to the execution of this Agreement, Borrower
will have delivered to the Bank certificate(s) in form satisfactory to the Bank demonstrating that all such coverages are in force
with premiums paid and, which name Bank and its successors and assigns as loss payee and additional insured, and if requested by
the Bank, copies of the applicable policies. Policies required hereunder shall be endorsed so as to require at least twenty (20)
days’ notice to the Bank prior to cancellation of any such policies.

 

4.5          Books
and Records; Other Inspections. The Borrower will maintain complete books of account and other records reflecting the results
of its business operations, and its assets and liabilities. Bank or its designated agents will have the right at any time to inspect
and/or make copies of these books and records. The Borrower will pay the Bank's customary charges for such audits, examinations
and inspections and out of pocket expenses. The Bank may inspect any of the Borrower’s premises at such reasonable times
as the Bank deems necessary.

 

4.6          No
Further Financing or Indebtedness. Except to the Bank, the Borrower will not incur or permit to exist any additional indebtedness
for borrowed money, nor guaranty the indebtedness of any other person or entity, whether or not subordinated to the Line of Credit.
Borrower will not create, assume, nor allow any security interest or lien (including judicial liens) on assets the Borrower now
or hereafter owns, except (a) liens and security interests in favor of the Bank, (b) liens for taxes not yet due, (c) purchase
money security interests incurred in the acquisition of vehicles and office equipment utilized in the business of the Borrower
and not exceeding $50,000 at any time outstanding, and (d) liens and security as set forth in Schedule 3.6.

 

4.7          Depository
Relationship. To enable the Bank to better monitor the financial condition of the Borrower, Borrower will maintain its principal
deposit and operating accounts with the Bank. Edward Coll and Anthony Laura, for themselves or for the account of members of their
immediate families, will maintain accounts with the Bank’s Investment Management Group pursuant to the liquidity covenant
set out in Section 4.23 below.

 

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4.8          Taxes.
Each of the Borrower and Guarantors will pay all property, income, unemployment, sales, and all other taxes assessed against it
or him or payable by it or him at such times as are required by Applicable Law.

 

4.9          Maintenance.
Borrower will maintain its properties and other assets in good repair, working order and condition, and make all repairs and replacements
as necessary.

 

4.10        No
Distributions. The Borrower will not pay any dividends or distributions either in cash or kind on any class of its equity nor
redeem any equity interests. Provided, however, with the prior written consent of the Bank, which consent will not be unreasonably
withheld, Borrower may pay a dividend or make a distribution to its owners or shareholders in an amount (not to exceed Borrower’s
net income after payment of expenses and debt service) sufficient to pay taxes imposed upon such Borrower’s owners attributable
to the net income of Borrower.

 

4.11        No
Loans; Investments. The Borrower will not make any loans or advances to any person or entity, including without limitation,
its officers and employees provided, however, that Borrower may make advances to its employees for reasonable reimbursable expenses.
The Borrower will not invest in or purchase any equity interest in any other entity.

 

4.12        No
Mergers; No changes in Organization. The Borrower will not merge, amalgamate or consolidate with or into any other entity.
The Borrower will not effect a continuation into a new jurisdiction or change its jurisdiction of organization without thirty (30)
days prior notice to the Bank and in such instance, the Borrower hereby authorizes the Bank to record in such new jurisdiction
all financing statements with the proper authorities which may be necessary to perfect any security interests of the Bank in the
assets of the Borrower. The Borrower will not make any material amendments to its Charter Documents without at least ten (10) days
prior notice to the Bank.

 

4.13        Sales.
The Borrower will not sell or dispose of any of its assets except sales of Inventory and other assets in the ordinary and usual
course of its business. The disposition of obsolete assets or the transfer or trade-in of assets when replaced by other assets
of similar utility will be deemed a transaction in the ordinary course of business.

 

4.14        Change
in Business. Borrower will not engage in any business other than the businesses in which it is currently engaged or a business
reasonably related thereto.

 

4.15        Debt
Subordination. All indebtedness of the Borrower for borrowed money to any Guarantor, or any related or affiliated party now
existing or hereafter owing, shall be subordinated in payment and priority to the Line of Credit payable to the Bank, its successors
or assigns.

 

4.16        Transactions
with Affiliates. The Borrower will not transact business with any officer, director or affiliated person or entity other than
on fair and reasonable terms and conditions substantially as favorable to Borrower as would be obtainable by Borrower in a comparable
arms’ length transaction with an unaffiliated third party.

 

4.17        Cross-Collateral.
All collateral which secures the Line of Credit shall also constitute security for the repayment of any other indebtedness of the
Borrower to the Bank, now existing or hereafter arising.

 

4.18        Notices
Regarding Hazardous Substances. Until full repayment of the Line of Credit, the Borrower will promptly notify the Bank
in writing if Borrower becomes aware that there is any amount of any Hazardous Substance in excess of maximum limits allowed by
Applicable Law in or around any of Borrower’s Premises, or in the soil, groundwater or soil vapor on or under Borrower’s
Premises, or that the Borrower is subject to any threatened or pending investigation by any governmental agency under any current
or future Applicable Law pertaining to any impermissible amount of any Hazardous Substance.

 

4.19        Change
of Management. The Borrower will not make any change in the present executive or senior management personnel of the
Borrower except following consultation with the Bank.

 

4.20        Change
of Ownership. The Borrower will not cause, permit, or suffer any change in its capital or share ownership except among
existing owners.

 

4.21        Notices
to Bank. Borrower will promptly notify the Bank in writing of:

 

		(a)	Any lawsuit or arbitration proceeding seeking recovery,
not covered by insurance, exceeding $50,000 or which seeks injunctive relief affecting the conduct of the Borrower’s or
a Guarantor’s business in the ordinary course.

 

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		(b)	Any substantial dispute between any governmental authority
and the Borrower or any Guarantor which, if determined adversely to Borrower or such Guarantor, could result in a material adverse
change in the results of operations or assets of Borrower or such Guarantor.

 

		(c)	Any Default or Event of Default under this Agreement.

 

		(d)	Any material adverse change in the Borrowers’ business
conditions (financial or otherwise), operations, properties or prospects, or ability to repay the Line of Credit, or the financial
condition of any of the Guarantors.

 

4.22        Financial
Statements and Reports. Borrower and each Guarantor will furnish the Bank the following financial reports. All such reports
must be in form and substance satisfactory to the Bank, and in reasonable detail, in accordance with generally accepted accounting
principles consistently applied and certified as complete and accurate by Borrower or the Guarantors, as applicable. Each of the
Borrower and the Guarantors will also provide, promptly, such other information concerning the Borrower or Guarantors as the Bank
may request from time to time:

 

		(a)	Within 120 days after the end of each fiscal year, a balance sheet, a statement of income and expense for such year and a statement
of changes in financial position of the Borrower, all in form and in detail satisfactory to the Bank, with an audited, unqualified
audit-level report thereon by a certified public accountant reasonably satisfactory to the Bank.

 

		(b)	Within 45 days after the end of each fiscal quarter, including the fourth fiscal quarter, a balance sheet, a statement of income
and expense of the Borrower for such quarter and for the year-to-date, and a statement of changes in financial position, all in
form and in detail satisfactory to the Bank, with a certification by the Chief Financial Officer of the Borrower, attesting to
the completeness and veracity of such reports.

 

		(c)	Within 120 days after the end of each fiscal year of the Borrower, or within fifteen days after filing if earlier, the Borrower’s
income tax returns (if any), as submitted pursuant to Applicable Law. In the event that Borrower requests an extension for any
such return, the entity requesting such extension shall provide Bank with a copy of the request therefor and evidence of filing
thereof.

 

		(d)	By April 15 of each year a personal financial statement of Edward Coll, Claus Boggild and Anthony Laura as of the previous
December 31 or a more recent date on the Bank’s standard form.

 

		(e)	By April 15 of each year or within fifteen days after filing, but not later than October 15 if such return was submitted pursuant
to lawful extension, a copy of the federal and state income tax return of Edward Coll and Anthony Laura.

 

4.23        Financial
Covenants. At all times while any Advances remain outstanding under the Line of Credit, Edward Coll and Anthony Laura,
collectively, shall maintain marketable securities held by Bank’s Investment Management Group, for themselves or for the
account of members of their immediate families, with a market value of at least 150% of the outstanding principal balance of the
Line of Credit.

 

4.24        Covenants
Applicable to Guarantors. The covenants set forth in Sections 4.2, 4.8, and 4.22 above shall be deemed incorporated
by reference as a covenant in any Guaranty delivered to the Bank by the Guarantors.

 

5.            EVENTS
OF DEFAULT

 

5.1          Events
of Default. The occurrence of any one or more of the following events shall constitute a “Default” prior
to giving of any required notice and the expiration of any applicable grace period, and an “Event of Default”
after the giving of any such notice and the expiration of any such grace period:

 

			(a)          Payments under Note. Failure to make any payment due
under the Note as and when such payment is due.

 

		(b)	Other Payments due the Bank. Failure of Borrower
to make payment of any other indebtedness to the Bank as and when such payment was due, whether a periodic payment, payment at
maturity, payment due on acceleration or otherwise.

 

		(c)	Performance of Obligations, Cross-Default. If
a default or event of default or breach of any of the covenants, terms or conditions shall occur under any other of the Loan Documents;
or the Borrower or any Guarantor shall default in any other obligation to the Bank, now existing or hereafter arising or incurred.

 

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		(d)	Breach of Representations and Warranties. If any
representation or warranty made in this Agreement, or if any representation or warranty contained in any other of the Loan Documents
or hereafter made by the Borrower or any Guarantor to Bank shall be breached or shall prove to be false, inaccurate or incomplete
in any material respect.

 

		(e)	Bankruptcy, etc. If: (i) Any complaint, application,
or petition is filed by or against the Borrower or any Guarantor pursuant to the US Bankruptcy Code, as amended from time to time,
or pursuant to any other insolvency procedure in the United States, Bermuda, British Virgin Islands or elsewhere; (ii) a receiver,
trustee, or other similar person is appointed, pursuant to court action or otherwise, to take custody or control of Borrower or
any Guarantor or any of Borrower’s or Guarantors’ assets; (iii) the Borrower or any of the Guarantors grant any trust
mortgage or authorize an assignment for the benefit of his or its creditors; (iv) the Borrower or any Guarantor shall fail to
pay his or its debts as they come due; (v) the Borrower or any of the Guarantors shall become insolvent; (vi) if a meeting of
creditors of the Borrower or any of the Guarantors is called; or (vii) any other judicial or non-judicial proceeding or agreement
is initiated by or against the Borrower or any of the Guarantors which seeks or intends to accomplish a reorganization or arrangement
with any of Borrower’s or Guarantors’ creditors.

 

		(f)	Death of Individual; Dissolution of Entity. Death
of a Guarantor shall die; or the dissolution or termination of existence of Borrower.

 

		(g	Liens; Judgments. The imposition of any lien upon any assets of the Borrower or the entry of any final judgment by any
court or arbitrator against the Borrower which remains unpaid for more than twenty days.

 

		(h)	Court Order. The issuance of any court order which enjoins, restrains or any way prevents the Borrower from conducting
all or any material part of its business in the ordinary course.

 

		(i)	Casualty Loss. The occurrence of any loss, theft, damage, destruction of any material portion of the assets of the Borrower,
which loss is not fully covered by insurance other than a deductible approved by the Bank.

 

		(j)	Guaranty. If any Guaranty given in connection with the Line of Credit shall for any reason cease to be in full force
and effect.

 

		(k)	Material Adverse Change; Deemed Insecure. A material adverse change occurs with respect to the Borrower’s businesses
or condition (financial or otherwise), operations, properties or prospects, or its ability to repay the Line of Credit in accordance
with its terms; or, if the Bank reasonably determines that the prospects of repayment of the Line of Credit in accordance with
its terms has been impaired in any material respect.

 

6.           
REMEDIES ON DEFAULT

 

6.1.         Rights
and Remedies on Default. Upon the occurrence of any Default or Event of Default and at any time thereafter, in addition to
any other rights and remedies available to the Bank hereunder or otherwise under Applicable Law or in equity, the Bank may exercise
any one or more of the following rights and remedies:

 

		(a)	No Further Advances. Upon the occurrence of any
Default or Event of Default, the Bank shall be relieved of any further obligation to make any additional Advances under the Line
of Credit.

 

		(b)	Acceleration. Upon the occurrence of an Event
of Default, the Bank may declare the unpaid portion of any time or installment obligations of the Borrower to the Bank to be immediately
due and payable, without further notice or demand, and the same, together with all interest and any applicable prepayment fee,
shall become immediately due and payable. The Advances and the Loan shall at all times be payable on demand.

 

		(c)	Enforcement. Enforce all of its rights and remedies
as provided under the Note or any other Loan Documents, or other rights and remedies under Applicable Law.

 

6.2         Remedies
Cumulative and Concurrent. The rights and remedies of Bank as provided in this Agreement and in the other Loan Documents shall
be cumulative and concurrent and may be pursued separately, successively or together against the Borrower and any Guarantor or
any collateral, or any one or more of them, at the sole discretion of Bank, and may be exercised as often as Bank shall determine
as occasion and right therefor shall arise. The failure to exercise any such right or remedy shall in no event be construed as
a waiver or release thereof, nor shall the choice of one remedy be deemed an election of remedies to the exclusion of other remedies.

 

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6.3         Release
of Security. Bank may release any part of the security for the Line of Credit without, as to the remainder of the security,
in any way impairing or affecting the liens of the Loan Documents or their priority. Without affecting the liability of the Borrower
or any other person (except any person expressly released in writing) and without affecting the rights of Bank with respect to
any security not expressly released in writing, Bank may, at any time, and without notice or consent: (i) release any person liable
for payment of all or any part of the obligations to the Bank; (ii) make any agreement extending the time or otherwise altering
terms of payment of all or any part of the obligations or modifying or waiving any Obligation; (iii) exercise or refrain from exercising
or waive any right Bank may have; or (iv) release or otherwise deal with any property, real or personal, securing the Line of Credit
or any other Obligation of Borrower and/or Guarantors to Bank.

 

7.           MISCELLANEOUS

 

7.1         Further
Assurances. The Borrower and Guarantors, upon the request of Bank, will execute, acknowledge and deliver such further instruments
and do such further acts as may be necessary, desirable or proper to carry out more effectively the purpose of the Line of Credit,
this Agreement, and the other Loan Documents; and upon any failure of the Borrower or the Guarantors to do so for ten (10) days
after receipt of written request therefor, Bank may make, execute and record any and all such instruments, certificates necessary
or desirable to achieve Bank’s objectives, and Borrower irrevocably appoints Bank as its agent and attorney-in-fact (which
shall be coupled with an interest) of Borrower to do so.

 

7.2         Materiality.
All representations, warranties, covenants and agreements set forth in this Agreement and in the other Loan Documents are material
and shall be deemed to have been relied upon by the Bank in establishing the Line of Credit and making Advances thereunder, notwithstanding
any investigation heretofore or hereafter made by the Bank.

 

7.3         Survival.
The warranties, representations, covenants and agreements set forth in this Agreement and in the other Loan Documents shall survive
the establishment of the Line of Credit and making of Advances thereunder, and shall continue in full force and effect until the
Note shall have been paid in full and all obligations to the Bank performed, excepting only such obligations as specified in the
Loan Documents which, by their terms, survive the repayment of the Note.

 

7.4         Notice.
All notices, demands, requests and other communications required under this Agreement shall be in writing and shall be given to
the Borrower and to Bank at the address for each first set forth above, by certified or registered mail, return receipt requested
or by next business day courier service. Either party may change its address for such a notice by written notice to the other in
the foregoing manner.

 

7.5         Bank’s
Right to Perform the Obligations. If Borrower shall fail to make any payment or perform any act required by this Agreement
or the other Loan Documents, then, at any time thereafter, without notice to or demand upon Borrower, and without waiving or releasing
any obligation, Default or Event of Default, Bank may make such payment or perform such act for the account of and at the expense
of Borrower. All sums so paid by Bank, and all costs and expenses, including, without limitation, attorneys’ fees and expenses
so incurred together with interest thereon at the rate charged under the Note upon default, from the date of payment or incurring,
shall constitute additions to the indebtedness secured by the Loan Documents, and shall be paid by Borrower to Bank on demand.

 

7.6         Indemnity:
The Borrower shall indemnify, defend, and hold the Bank harmless against any claim brought or threatened against the Bank by any
person (as well as from attorney’s fees and expenses incurred by the Bank in connection therewith) on account of the Bank’s
relationship with the Borrower, each of which may be defended, compromised, settled or pursued by the Bank with counsel of the
Bank’s selection, but at the expense of the Borrower.

 

7.7         Integration/Severability.
The Loan Documents embody the entire agreement between the parties and supersede all prior agreements and understandings, written
or oral, if any, relating to the subject matter hereof. In case any one or more of the provisions of this Agreement or of any other
Loan Documents shall be invalid, illegal or unenforceable in any respect, the validity of this Agreement and each of the other
Loan Documents and the remaining provisions thereof shall be in no way affected, prejudiced or disturbed thereby.

 

7.8         Modifications.
This Agreement, the other Loan Documents and the terms of each of them may not be changed, waived, discharged or terminated orally,
but only by an instrument or instruments in writing signed by the party against which enforcement of the change, waiver, discharge
or termination is asserted.

 

    	Page 8 of 11

    	 

    

 

7.9         Governing
Law. This Agreement, the Note and each of the other Loan Documents shall be governed by and construed according to the internal
laws of the Commonwealth of Massachusetts without regard to conflicts of laws principles, and this Agreement is executed as a sealed
instrument under Massachusetts law. Borrower hereby submits to the jurisdiction of each state and federal court which sits in Suffolk
County or Plymouth County, Massachusetts, and agrees that service made against Borrower in accordance with the notice provisions
of this Agreement or the other Loan Documents shall be proper service. Venue for the enforcement of any of the obligations under
this Agreement or under any of the other Loan Documents shall lie in Suffolk County or Plymouth County, Massachusetts; and Borrower
waives any right to claim that Suffolk County or Plymouth County, Massachusetts is an inconvenient forum.

 

7.10       Right
Of Setoff; Freeze. Any and all deposits or other sums at any time credited by or due to the Borrower or Guarantors from
the Bank, and any cash, securities, instruments, or other property of the Borrower or Guarantors in the possession of the Bank,
whether for safekeeping, or otherwise, or in transit to or from the Bank, or in the possession of any third party acting on the
Bank’s behalf (regardless of the reason the Bank had received same or whether the Bank has conditionally released the same)
shall at all times constitute security for any and all liabilities, obligations, and indebtedness of the Borrower to the Bank,
and may be applied or set off against such liabilities, obligations, and indebtedness, at any time, without notice, at any time
after the occurrence and during the continuance of an Event of Default, whether or not other collateral is available to the Bank.
The Bank shall also have the right, at its option, upon the occurrence of any Default or Event of Default to freeze, block or segregate
any of such deposits or other cash, securities, instruments, or other property of the Borrower or Guarantors so that Borrower and
Guarantors may not access, control, or draw upon the same.

 

7.11       Assignment
by Bank; Participations. Bank shall have the right at any time or from time to time, and with Borrower’s consent, such
consent not to be unreasonably withheld or delayed, to: (a) assign all or any portion of its rights and obligations hereunder to
one or more banks or other financial institutions and each of the Borrower and each Guarantor agrees to execute, or cause to be
executed such other documents, including without limitation, amendments to this Agreement and to any other Loan Documents as Bank
shall reasonably deem necessary to effect the foregoing, and (b) grant participations in the Loan to such institutional entities
as Bank may, from time to time, select.

 

7.12       USA
PATRIOT Act. The Bank is subject to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)) (the "Patriot Act"), and is required to obtain, verify and record information that identifies
the Borrower and Guarantors, which information includes the name and address of the Borrower and other information that will allow
the Bank to identify the Borrower and Guarantors in accordance with the Patriot Act. The Borrower and Guarantors shall, promptly
following a request by the Bank, provide all documentation and other information that the Bank reasonably requests in order to
comply with its ongoing obligations under applicable "know your customer" and anti-money laundering rules and regulations,
including the Patriot Act.

 

7.13       Documents;
Counterparts. All agreements and documents of any kind in the Bank’s possession which relate to any loans from Bank to
Borrower may be reproduced by the Bank by photographic, computer imaging, or similar process, and the Bank may destroy the original
from which any document was so reproduced. Any such reproduction shall be admissible in evidence as the original itself in any
judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made
in the regular course of business) and any enlargement, facsimile or further reproduction shall likewise be admissible in evidence.
Any signatures of the Borrower or any of the Guarantors upon any such agreement or document which is transmitted as a facsimile
or as a scanned or PDF (portable document format) shall be deemed a valid and binding signature of Borrower or such Guarantor with
the same effect as if a manually signed original signature. This Agreement may be executed in one or more counterparts, all of
which together shall be deemed to constitute a single instrument.

 

7.14       Bank’s
Counsel. The Borrower and Guarantors acknowledge that they are not being represented by Burns & Levinson LLP, counsel to
the Bank (“B&L”), in connection with the review or negotiation of the terms of this Agreement. The Borrower
and Guarantors are not relying on B&L and have consulted with their own independent attorneys, accountants and other professional
advisors as to legal, tax and related matters concerning the loan transaction and obligations described herein. Borrower’s
and Guarantors’ attorney(s) have independently reviewed the Loan Documents.

 

7.15       Headings.
The article headings and the section and subsection captions are inserted for convenience of reference only and shall in no way
alter or modify the text of such articles, sections and subsections.

 

    	Page 9 of 11

    	 

    

 

7.16       Certain
Waivers.      THE BORROWER AND GUARANTORS AND BANK EACH KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVE ANY RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY PROCEEDING ARISING OUT OF OR RELATING TO THE LOAN OR ANY
OTHER CLAIM ARISING OUT OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR IN CONNECTION WITH ANY OBLIGATIONS OR ALLEGED OBLIGATIONS
OF THE BANK TO LOAN MONEY TO BORROWER. THE BORROWER AND GUARANTORS KNOWINGLY, VOLUNTARILY AND INTENTIONALLY: (A) WAIVE ANY RIGHT
TO AND AGREE NOT TO BRING ANY PROCEEDING, INCLUDING WITHOUT LIMITATION COURT ACTION, ARBITRATION, MEDIATION, ADMINISTRATIVE PROCEEDING
OR OTHERWISE AGAINST BANK AND/OR ANY AFFILIATE, OTHER THAN IN THE COMMONWEALTH OF MASSACHUSETTS; AND (B) WAIVE ANY NOW EXISTING
AND/OR HEREAFTER ARISING RIGHT TO ANY CONSEQUENTIAL, PUNITIVE, SPECIAL, EXEMPLARY AND/OR INCIDENTAL DAMAGES. Each of the Borrower
and Guarantors acknowledges that neither Bank nor any of its representatives, agents or counsel has represented that Bank would
not, in the event of any such suit, action or proceeding, seek to enforce the foregoing waivers. Each of the Borrower and Guarantors
acknowledges that Bank has been induced to enter into this Agreement by, among other things, this waiver.

 

7.17       No
Marshaling. The Bank shall be under no obligation to marshal any assets in favor of Borrower or Guarantors or any other Person
or against or in payment of any or all of the Liabilities.

 

7.18        Participants.
Bank may grant participations in the Line of Credit to such institutional entities as Bank may, from time to time, select.

 

7.19        Costs
and Expenses; Dishonored Payments. The Borrower agrees to pay on demand all reasonable (i) costs and expenses (including, without
limitation, legal fees) of the Bank in connection with the closing of the Line of Credit, the preparation of the Loan Documents,
and any amendments or modifications of any of the Loan Documents subsequent to the date hereof, (ii) filing fees payable in connection
with the execution and delivery of this Agreement and each of the other Loan Documents, (iii) costs and expenses (including, without
limitation, the fees and out-of-pocket expenses of legal counsel and independent public accountants) incurred by the Bank in connection
with interpreting, administering, preserving, enforcing or exercising any rights or remedies under this Agreement and the other
Loan Documents, all whether or not legal action is instituted, with interest at the rate charged under the Note upon default from
the date of expenditure by Bank until said sums have been paid by Borrower.

 

7.20       No
Liability. The benefits of this Agreement shall not inure to any third party. Bank shall not be liable for the manner in which
any advances under this Agreement may be applied by Borrower. Any term or condition of this Agreement or of the other Loan Documents
to the contrary notwithstanding, Bank shall not have, and by its execution and acceptance of this Agreement hereby expressly disclaims,
any obligation or responsibility for the management, conduct, or operation of the business and affairs of the Borrower or any of
the Guarantors, notwithstanding the grant or denial of any approval or consent by the Bank under any of the Loan Documents, nor
the specification by the Bank of any requirements by the Bank for the administration of the Line of Credit or the Loan Documents.

 

7.21       Loan
Audit Compliance: The Loan, including all subsequent renewals and extensions thereof, will be subject to a POST-CLOSING QUALITY
CONTROL DOCUMENTATION REVIEW. Each of the Borrower and Guarantors, if requested by Bank, agrees to cooperate fully and adjust for
clerical errors on any and all documents or instruments executed in connection with the making of the Line of Credit, and to execute
and deliver all such further instruments as the Bank may reasonably require to effectuate more perfectly the intent of the Loan
Documents.

 

IN WITNESS WHEREOF, the Borrower and Guarantors
have executed this Agreement as a sealed Massachusetts instrument and delivered it to Bank as of the date first above written.

 

	BORROWER:	GUARANTORS
	PHOENIX BULK CARRIERS (US) LLC	 
	 	 	 	 
	By:	 	 	 
	Print name:	 	 	Claus Boggild
	Title:	 	 	 
	 	 
	BANK:	Edward Coll
	ROCKLAND TRUST COMPANY	 
	 	 
	 	Anthony Laura
	By:	 	 
	Peter D. Costa, Vice President	 

 

    	Page 10 of 11Exhibit 4.2

 

 

 

KONGZHONG CORPORATION

2013 EQUITY INCENTIVE
PLAN

 

 

 

 

 

    	 

    	 

    

 

Table of Contents

 

 

 

  Article I GENERAL  

 

	1.1 Purpose	3
	1.2 Definitions of Certain Terms	3
	1.3 Administration	5
	1.4 Persons Eligible for Awards	5
	1.5 Types of Awards Under the Plan	6
	1.6 Shares Available for Awards	6
	 	 

 

  Article II AWARDS UNDER THE PLAN  

 

	2.1 Award Agreements	6
	2.2 No Rights as a Shareholder	7
	2.3 Grant of Share Options	7
	2.4 Exercise of Share Options	7
	2.5 Amendment, Cancellation and Termination of Share Options	8
	2.6 Termination of Employment	8
	2.7 Grant of Restricted Share Units	9
	 	 

 

  Article III MISCELLANEOUS  

 

	3.1 Amendment of the Plan; Modification of Awards	9
	3.2 Tax Withholding	10
	3.3 Restrictions	10
	3.4 Nonassignability	10
	3.5 Requirement of Notification Upon Disqualifying Disposition Under Section 421(b) of the Code	10
	3.6 Change in Control	11
	3.7 Sale of Subsidiary	12
	3.8 No Right to Employment or Award	12

 

 

    	-i-

    	 

    

 

 

 

	3.9 Independent of Employment Contract	13
	3.10 Nature of Payments	13
	3.11 Non-Uniform Determinations	13
	3.12 Other Payments or Awards	13
	3.13 Section Headings	13
	3.14 Effective Date and Term of Plan	13
	3.15 Governing Law	13
	3.16 Severability; Entire Agreement	13
	3.17 No Third Party Beneficiaries	14
	3.18 Successors and Assigns	14
	3.19 Waiver of Claims	14
	 	 

 

  

 

    	-ii-

    	 

    

Article
I

GENERAL

 

1.1 Purpose

 

The purpose of the KongZhong Corporation
2013 Equity Incentive Plan (the “ Plan ”) is to provide an incentive for officers, other employees, prospective employees,
directors, consultants and advisors of KongZhong Corporation (the “ Company ”) and its Related Entities to acquire
a proprietary interest in the success of the Company, to enhance the long-term performance of the Company and to remain in the
service of the Company and its Related Entities.

 

1.2 Definitions
of Certain Terms

 

(a) “ Award ” means
an award under the Plan as described in Section 1.5 and Article II.

 

(b) “ Award Agreement  ”
means a written agreement entered into between the Company and a Grantee in connection with an Award.

 

(c) “ Board ” means
the Board of Directors of the Company.

 

(d) “ Business Combination 
” shall have the meaning set forth in Section 3.6(a).

 

(e) “ Cause  ” means
that a Grantee has, as determined by the Company in its sole discretion, (i) willfully failed to perform the duties appurtenant
to Grantee’s position, (ii) violated Company policies; (iii) violated any obligation of confidentiality, non-competition
or non- solicitation of employees, customers or suppliers owed to the Company; (iv) violated any terms of the Grantee’s employment
agreement(s); (v) engaged in any conduct that is detrimental to the Company; or (vi) been convicted of any felony crime.

 

(f) “ Change in Control  ”
shall have the meaning set forth in Section 3.6.

 

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

 

(h) “ Committee  ” means
the Compensation Committee of the Board and shall consist of not less than two directors; provided  , however  ,
that the Compensation Committee may from time to time delegate some or all of its functions under the Plan to a subcommittee or
to an executive officer of the Company. The term “Committee” as used herein and in any Award Agreement includes any
such subcommittee or executive officer, to the extent of the Compensation Committee’s delegation.

 

(i) “ Company Voting Securities
” shall have the meaning set forth in Section 3.6(a).

 

(j) “ Covered Person  ”
shall have the meaning set forth in Section 1.3(e).

 

(k) “ Disability  ”
means “permanent and total disability” as defined in Section 22(e)(3) of the Code or successor statute or provision.

 

(l) “ Eligible Persons  ”
shall have the meaning set forth in Section 1.4.

 

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

 

(n) The “ Fair Market Value 
” of a Share on any date shall be (i) the closing sale price of the Shares during normal trading hours on the securities
exchange or automated quotation system on which the Shares are principally traded for such date or the last preceding date on which
there was a sale of such Shares on such exchange, or (ii) if the Shares are then traded in an over-the-counter market, the average
of the closing bid and asked prices for the Shares during normal trading hours in such over-the-counter market for such date or
the last preceding date on which there was a sale of the Shares in such market, or (iii) if the Shares are not then listed on a
securities exchange or automated quotation system or traded in an over-the-counter market, such value as the Committee, in its
sole discretion, shall determine.

 

    	3

    	 

    

 

(o) “ FICA  ” means
the Federal Insurance Contributions Act.

 

(p) “ Fully Vest  ”
shall have the meaning set forth in Section 3.6(d).

 

(q) “ Good Reason  ”
shall have the meaning set forth in Section 3.6(g).

 

(r) “ Grant Date  ”
means, with respect to any Award, the date of the Award Agreement entered into in by the Company and the Grantee in connection
with such Award.

 

(s) “ Grantee  ” means
a person who receives an Award.

 

(t) “ Incentive Share Option
” means a share option that is intended to qualify for special United States federal income tax treatment pursuant to Sections
421 and 422 of the Code (or successor provisions thereof) and which is so designated in the applicable Award Agreement. Under no
circumstances shall any share option that is not specifically designated as an Incentive Share Option be considered an Incentive
Share Option.

 

(u) “ Non-Qualified Option”
means a share option that does not qualify as an Incentive Share Option.

 

(v) “ Non-Qualifying Transaction
 ” shall have the meaning set forth in Section 3.6(a).

 

(w) “ Option Exercise Price 
” means the amount payable by a Grantee upon the exercise of a share option.

 

(x) “ Parent Corporation 
” shall have the meaning set forth in Section 3.6(a).

 

(y) “ Plan Action  ”
shall have the meaning set forth in Section 3.3(a).

 

(z) “ PRC  ” means the
People’s Republic of China.

 

(aa) “ Related Entity ”
means any present or future parent or subsidiary corporation of the Company, or any business, corporation, partnership, limited
liability company or other entity over which the Company or a parent or a subsidiary corporation exercises control, directly or
indirectly, through the ownership of voting shares, by contract or otherwise.

 

(bb) “ Restricted Share Unit 
” or “ RSU  ” means an unfunded and unsecured promise of the Company to pay the Grantee, on a specified
future vesting date, one Share for each Restricted Share Unit or, in the discretion of the Committee, a cash payment equal to the
Fair Market Value of such Share as of the relevant vesting date.

 

(cc) “ Shares  ” means
the ordinary shares of the Company.

 

(dd) “ Surviving Corporation 
” shall have the meaning set forth in Section 3.6(a).

 

(ee) Unless otherwise determined by the
Committee, a Grantee shall be deemed to have a “ Termination of Employment  ” upon ceasing employment with the
Company and all Related Entities (or, in the case of a Grantee who is not an employee, upon ceasing association with the Company
and all Related Entities as a director, consultant or advisor). The Committee in its sole discretion may determine (i) whether
any leave of absence constitutes a Termination of Employment for purposes of the Plan, (ii) the impact, if any, of any such leave
of absence on Awards previously made under the Plan, and (iii) when a change in a Grantee’s association with the Company
constitutes a Termination of Employment for purposes of the Plan. The Committee may also determine whether a Grantee’s Termination
of Employment is for Cause and the date of termination in such case.

 

    	4

    	 

    

 

1.3 Administration

 

(a) The Plan shall be administered by the
Committee.

 

(b) The Committee shall have the authority
(i) to exercise all of the powers granted to it under the Plan, including but not limited to deciding to whom Awards may be granted
under the Plan, the time or times at which Awards may be granted and will vest, the kind of Award to be granted to each Grantee
and the Option Exercise Price of Incentive Share Options and Non-Qualified Options; (ii) to impose any terms and conditions with
respect to Awards not inconsistent with the terms of this Plan and any Award Agreements as it deems necessary and desirable; (iii)
to construe, interpret and implement the Plan and any Award Agreements, (iv) to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules governing its own operations, (v) to make all determinations necessary or advisable in administering
the Plan, (vi) to correct any defect, supply any omission and reconcile any inconsistency in the Plan, (vii) to amend the Plan
to reflect changes in applicable law, and (viii) to determine whether, to what extent and under what circumstances Awards may be
canceled, forfeited or suspended and the method or methods by which Awards may be settled, canceled, forfeited or suspended.

 

(c) Actions of the Committee shall be taken
by the vote of a majority of its members, acting at a meeting (whether held in person or by teleconference) or by a written instrument
signed by a majority of the Committee members. The Board shall designate one member of the Committee as its chairperson. In the
event of a tie vote on any issue, the chairperson’s vote shall decide the issue.

 

(d) The determination of the Committee
on all matters relating to the Plan or any Award Agreement shall be final, binding and conclusive unless otherwise determined by
the Board.

 

(e) No member of the Board or the Committee
or any employee of the Company or any of its Related Entities (each such person a “ Covered Person  ”) shall
have any liability to any person (including, without limitation, any Grantee) for any action taken or omitted to be taken or any
determination made in good faith with respect to the Plan or any Award. Each Covered Person shall be indemnified and held harmless
by the Company against and from any loss, cost, liability or expense (including attorneys’ fees) that may be imposed upon
or incurred by such Covered Person in connection with or resulting from any action, suit or proceeding to which such Covered Person
may be a party or in which such Covered Person may be involved by reason of any action taken or omitted to be taken under the Plan
and against and from any and all amounts paid by such Covered Person, with the Company’s approval, in settlement thereof,
or paid by such Covered Person in satisfaction of any judgment in any such action, suit or proceeding against such Covered Person,
provided that the Company shall have the right, at its own expense, to assume and defend any such action, suit or proceeding and,
once the Company gives notice of its intent to assume the defense, the Company shall have sole control over such defense with counsel
of the Company’s choice. The foregoing right of indemnification shall not be available to a Covered Person to the extent
that a court of competent jurisdiction in a final judgment or other final adjudication, in either case, not subject to further
appeal, determines that the acts or omissions of such Covered Person giving rise to the indemnification claim resulted from such
Covered Person’s bad faith, fraud or willful criminal act or omission. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which Covered Persons may be entitled under the Company’s Memorandum
and Articles of Association, as a matter of law, or otherwise, or any other power that the Company may have to indemnify such persons
or hold them harmless.

 

(f) Notwithstanding anything to the contrary
contained herein, the Board may, in its sole discretion, at any time and from time to time, grant Awards or resolve to administer
the Plan. In such event, the Board shall have all of the authority and responsibility granted to the Committee herein. From time
to time the Board may increase the size of the Committee and appoint additional members thereof, remove members (with or without
cause) and appoint new members in substitution therefor, fill vacancies however caused, or remove all members of the Committee
and thereafter directly administer the Plan, in each case subject to compliance with all applicable securities laws and the rules
of any securities exchange or automated quotation system on which the Shares are traded.

 

1.4 Persons
Eligible for Awards

 

Awards under the Plan may be made to such
officers, other employees, prospective employees, directors, consultants and advisors of the Company and its Related Entities (“
Eligible Persons  ”) as the Committee shall select in its sole discretion, provided  , however,  that
Incentive Stock Options may be granted only to officers and other employees of the Company and its Related Entities and may not
be granted to prospective employees, outside directors, consultants and advisors of the Company and its Related Entities.

 

    	5

    	 

    

 

1.5 Types
of Awards Under the Plan

 

Awards may be made under the Plan in the
form of Incentive Stock Options, Non-Qualified Options and Restricted Share Units.

 

1.6 Shares
Available for Awards

 

(a) Total shares available  . The
total number of Shares that may be transferred pursuant to Awards granted under the Plan shall not exceed 80,000,000 Shares. Such
Shares may be authorized but unissued Shares or authorized and issued Shares held in the Company’s treasury or acquired by
the Company for the purposes of the Plan. The Committee may direct that any share certificate evidencing Shares issued pursuant
to the Plan shall bear a legend setting forth such restrictions on transferability as may apply to such Shares pursuant to the
Plan. If any Award is forfeited or otherwise terminates or is canceled without the delivery of Shares, Shares are surrendered or
withheld from any Award to satisfy a Grantee’s income tax withholding obligations, or Shares owned by a Grantee are tendered
to pay the exercise price of options granted under the Plan, then the Shares covered by such forfeited, terminated or canceled
Award or which are equal to the number of Shares surrendered, withheld or tendered shall again become available for transfer pursuant
to Awards granted or to be granted under this Plan. Any Shares delivered by the Company, any Shares with respect to which Awards
are made by the Company and any Shares with respect to which the Company becomes obligated to make Awards, through the assumption
of, or in substitution for, outstanding awards previously granted by an acquired entity, shall not be counted against the shares
available for Awards under this Plan.

 

(b) Adjustments  . The Committee
shall make appropriate adjustments in the number of Shares covered by each outstanding Award and the number of Shares available
for Awards as it deems equitable, in its sole discretion, in the event of an increase or decrease in the number of issued Shares
resulting from a Share split, combination of Shares, issuance of Shares as a dividend on its outstanding Shares, recapitalization,
combination or reclassification of Shares, or any other increase or decrease in the number of issued Shares effected without receipt
of consideration by the Company; provided  , however  , that conversion of any convertible securities of the Company
shall not be deemed to have been “effected without receipt of consideration”. Except as expressly provided herein,
no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of Shares subject to an Award. After any adjustment made pursuant
to this paragraph, the number of Shares subject to each outstanding Award shall be rounded to the nearest whole number.

 

 

 

Article
II

AWARDS UNDER THE PLAN

 

2.1 Award
Agreements

 

Each Award granted under the Plan shall
be evidenced by an Award Agreement that shall contain such provisions as the Committee in its sole discretion deems necessary or
desirable. Payments or transfers to be made by the Company upon the grant, exercise or payment of an Award may be made in such
form as the Committee shall determine, including cash, Shares, other securities, other Awards or other property and may be made
in a single payment or transfer, in installments or on a deferred basis. A Grantee shall have no rights with respect to an Award
unless such Grantee accepts the Award within such period as the Committee shall specify by executing an Award Agreement in such
form as the Committee shall determine.

 

    	6

    	 

    

 

2.2 No
Rights as a Shareholder

 

No Grantee of an Award (or other person
having rights pursuant to such Award) shall have any of the rights of a shareholder of the Company with respect to Shares subject
to such Award until such person’s name is entered in the share register of the Company as owner of such Shares. Except as
otherwise provided in Section 1.6(b), no adjustment shall be made for dividends, distributions or other rights (whether ordinary
or extraordinary, and whether in cash, securities or other property) for which the record date is prior to the date such entry
is made in the share register of the Company.

 

2.3 Grant
of Share Options

 

(a) The Committee may grant share options,
including Incentive Share Options and Non-Qualified Options, to purchase Shares from the Company, to such persons, in such amounts
and subject to such terms and conditions, as the Committee shall determine in its discretion.

 

(b) Each Award Agreement with respect to
a share option shall set forth the Option Exercise Price, which shall be at least 100% of the Fair Market Value of a Share on the
applicable Grant Date.

 

(c) Each Award Agreement with respect to
a share option shall set forth the periods during which the Award evidenced thereby shall be exercisable, whether in whole or in
part. Such periods shall be determined by the Committee in its discretion; provided  , however  , that no Incentive
Share Option shall be exercisable more than ten (10) years after the Grant Date.

 

(d) To the extent that the aggregate Fair
Market Value (determined as of the Grant Date of the option) of the Shares with respect to which Incentive Share Options granted
under this Plan and all other plans of the Company are first exercisable by any Grantee during any calendar year shall exceed the
maximum limit (currently, U.S. $100,000), if any, imposed from time to time under Section 422 (or its successor provisions) of
the Code, such options shall be treated as Non-Qualified Options.

 

(e) Notwithstanding any other provisions
of this Plan, to the extent required under Section 422 (or its successor provisions) of the Code, an Incentive Share Option may
not be granted under the Plan to an individual who, at the time the option is granted, owns Shares possessing more than 10% of
the total combined voting power of all classes of shares of the Company or any Related Entities (as such ownership may be determined
for purposes of Section 422(b)(6) of the Code) unless (i) the Option Exercise Price is at least 110% of the Fair Market Value of
the Shares subject thereto on the Grant Date and (ii) the Incentive Share Option by its terms is not exercisable after the expiration
of five (5) years from the Grant Date.

 

2.4 Exercise
of Share Options

 

Each share option granted under the Plan
shall be exercisable as follows:

 

(a) Unless otherwise specified by the Committee
and subject to Section 2.6, share options shall become exercisable on a schedule at least as rapid as the following: (i) 25% of
any share option shall be exercisable on the one-year anniversary of the Grant Date, and (ii) 6.25% of any share option shall become
exercisable at the end of each subsequent three-month period, such that 100% of the share option granted in any Award shall have
vested as of the fourth-year anniversary of the Grant Date of such Award. The Committee may also specify such other conditions
precedent as it deems appropriate to the exercise of an option. The Committee shall have the right to accelerate the date of exercise
of any installment of any option. Once an option becomes exercisable, it shall remain exercisable until expiration or termination
of the option, unless otherwise specified by the Committee.

 

(b) Unless the applicable Award Agreement
otherwise provides, a share option may be exercised from time to time (but no more than once in any fiscal year quarter) as to
all or part of the Shares as to which such Award is then exercisable (but, in any event, only for whole Shares); provided 
, however  , that the Committee may specify a minimum number or percentage of the Shares issuable upon exercise of any option
that must be purchased in a single exercise. A share option shall be exercised by written notice to the Company, on such form and
in such manner as the Committee shall prescribe.

 

    	7

    	 

    

 

(c) Any written notice of exercise of a
share option shall be accompanied by payment of the Option Exercise Price for the Shares being purchased. Such payment shall be
made (i) in cash or as otherwise permitted by the Committee, or (ii) to the extent specified in the Award Agreement (A) by delivery
of Shares (which, if acquired pursuant to the exercise of a share option or under an Award made under this Plan or any other compensatory
plan of the Company, were acquired at least six (6) months prior to the option exercise date) having a Fair Market Value (determined
as of the exercise date) equal to all or part of the Option Exercise Price and cash for any remaining portion of the Option Exercise
Price, or (B) to the extent permitted by law, by such other method as the Committee may from time to time prescribe, including
a cashless exercise procedure through a broker-dealer.

 

(d) Promptly after receiving payment of
the full Option Exercise Price, the Company shall, subject to the provisions of Section 3.3 (relating to certain restrictions),
enter, or cause to be entered, the name of the Grantee (or such other person as may then have the right to exercise the Award)
in the share register of the Company as owner of such Shares.

 

 

2.5 Amendment,
Cancellation and Termination of Share Options

 

The Committee may amend, modify or terminate
any outstanding and not yet exercisable share options, including, but not limited to, substituting therefor another share option
of the same or a different type, changing the date of exercise, and converting an Incentive Share Option to a Non-Qualified Option;
provided however  , that except as provided in Section 2.6 and Section 3.1, the Grantee’s consent shall be required
if the Committee determines that such amendment would materially and adversely affect the Grantee’s rights and obligations.
The Committee may, at any time and in its sole discretion, determine that any outstanding share options granted under the Plan,
whether or not exercisable, shall be canceled and terminated and that in connection with such cancellation and termination the
holder of such share options may receive for each Share subject to such options a cash payment (or the delivery of other securities
or a combination of cash, Shares and other securities equivalent to such cash payment) equal to the difference, if any, between
the amount determined by the Committee to be the Fair Market Value of the Shares and the Option Exercise Price per share multiplied
by the number of Shares subject to such Award; provided that if such product is zero or less or to the extent that the options
are not then exercisable, the options will be canceled and terminated without payment therefor.

 

2.6 Termination
of Employment

 

(a) Except to the extent otherwise provided
in paragraphs (b) and (c) below or in the applicable Award Agreement, all share options not theretofore exercised shall terminate
upon the Grantee’s Termination of Employment for any reason.

 

(b) If a Grantee’s Termination of
Employment is for any reason other than death or dismissal for Cause, the Grantee may exercise any outstanding share option on
the following terms and conditions: (i) exercise may be made only to the extent that the Grantee was entitled to exercise the Award
on the date of the Termination of Employment; and (ii) exercise must occur within ninety (90) days after the Termination of Employment,
except that this ninety (90) day period shall be increased to one (1) year if the Termination of Employment is by reason of Disability,
but in no event after the expiration date of the Award as set forth in the Award Agreement.

 

(c) If a Grantee dies while employed by
the Company or a Related Entity, or after a Termination of Employment but during the period in which the Grantee’s share
options are exercisable pursuant to paragraph (b) above, any outstanding share option shall be exercisable on the following terms
and conditions: (i) exercise may be made only to the extent that the Grantee was entitled to exercise the Award on the date of
death and (ii) exercise must occur by the earlier of one hundred eighty (180) days after the Grantee’s death or the expiration
date of the Award. Any such exercise of an Award following a Grantee’s death shall be made only by the Grantee’s executor
or administrator, unless the Grantee’s will specifically disposes of such Award, in which case such exercise shall be made
only by the recipient of such specific disposition. If a Grantee’s personal representative or the recipient of a specific
disposition under the Grantee’s will shall be entitled to exercise any Award pursuant to the preceding sentence, such representative
or recipient shall be bound by all the terms and conditions of the Plan and the applicable Award Agreement that would have applied
to the Grantee.

 

    	8

    	 

    

 

2.7 Grant
of Restricted Share Units

 

(a) The Committee may grant Awards of RSUs
to such persons, in such amounts, and subject to such terms and conditions as the Committee shall determine in its discretion,
subject to the provisions of the Plan. RSUs may be awarded independently of or in connection with any other Award under the Plan.

 

(b) Vesting of RSUs  . Each Award
Agreement shall specify the date or dates on which the RSUs shall become vested, and may specify such conditions to vesting as
the Committee deems appropriate. Unless otherwise specified by the Committee and subject to Section 2.7(d), RSUs shall vest on
a schedule at least as rapid as the following: as to any Award, (i) 25% of the RSUs shall vest on the one-year anniversary of the
Grant Date, and (ii) 6.25% of the RSUs shall vest at the end of each subsequent three-month period, such that 100% of the RSUs
contained in any Award shall have vested as of the fourth-year anniversary of the Grant Date of such Award. The Committee may also
specify such other conditions precedent as it deems appropriate to the vesting of RSUs. The Committee shall have the right to accelerate
vesting dates and otherwise waive or amend any conditions of an Award of RSUs.

 

(c) Payment of RSUs  . As soon as
is reasonably practicable after the vesting date, the Company shall transfer to the Grantee one unrestricted, fully transferable
Share (or, in the discretion of the Committee, a cash payment therefor) for each vested RSU scheduled to be paid out on such date
and as to which all other conditions to the transfer have been fully satisfied. The Company shall effect such transfer by entering,
or causing to be entered, the name of the Grantee (or such other person as may then have the right to receive payment of the Award)
in the share register of the Company as owner of the Shares underlying the vested RSUs.

 

(d) Termination of Employment. Death
 . Except to the extent otherwise provided in the applicable Award Agreement, upon a Grantee’s Termination of Employment
for any reason, including death, such Grantee shall forfeit all rights in respect of RSUs that have not yet Fully Vested. However,
if a Grantee’s Termination of Employment occurs prior to the payment of Shares underlying RSUs but subsequent to the applicable
RSU vesting date, the Company shall pay, or cause to be paid, to such Grantee the number of Shares underlying such Grantee’s
Fully Vested RSUs. If a Grantee dies while employed by the Company or Related Entity prior to the payment of Shares underlying
RSUs but subsequent to the applicable RSU vesting date, the Company shall pay, or cause to be paid, to such Grantee’s estate
the number of Shares underlying such Grantee’s Fully Vested RSUs.

 

Article
III

MISCELLANEOUS

 

3.1 Amendment
of the Plan; Modification of Awards

 

(a) The Board may from time to time suspend,
discontinue, revise or amend the Plan in any respect whatsoever, except that (i) the termination date of the Plan may not be extended,
and (ii) if the Board determines that an amendment would materially impair any rights or materially increase any obligations of
the Grantee under any Award already made under the Plan, the consent of the Grantee (or, after the Grantee’s death, the person
having the right to exercise or receive payment of the Award) shall be required. For purposes of the Plan, any action of the Board
or the Committee that alters or affects the tax treatment of any Award under the applicable law of any jurisdiction shall not be
considered to materially impair any rights of any Grantee.

 

(b) Shareholder approval of any amendment
shall be obtained to the extent necessary to comply with Section 422 of the Code (relating to Incentive Stock Options) or any other
applicable law, regulation or the listing requirements of any securities exchange or automated quotation system on which the Shares
are listed.

 

(c) The Committee may amend any outstanding
Award Agreement, including, without limitation, by amendment that would accelerate the time or times at which the Award becomes
may be exercised or becomes vested, or waive or amend any goals, restrictions or conditions set forth in the Award Agreement. However,
any such amendment (other than an amendment pursuant to paragraphs (a) or (d) of this Section or an amendment to effect an assumption
or other action consistent with Section 3.6(b) regarding Change of Control) that the Committee determines would materially impair
the rights or materially increase the obligations of a Grantee under an outstanding Award shall be made only with the consent of
the Grantee (or, upon the Grantee’s death, the person having the right to exercise or receive payment of the Award).

 

    	9

    	 

    

 

(d) Notwithstanding anything to the contrary
in this Section, the Board or the Committee shall have full discretion to amend the Plan to the extent necessary to preserve fixed
accounting treatment with respect to any Award and any outstanding Award Agreement shall be deemed to be so amended to the same
extent, without obtaining the consent of any Grantee (or, after the Grantee’s death, the person having the right to exercise
or receive payment of the affected Award), without regard to whether such amendment adversely affects a Grantee’s rights
under the Plan or such Award Agreement.

 

3.2 Tax
Withholding

 

(a) As a condition to the receipt of any
Shares pursuant to any Award or the lifting of restrictions on any Award, or in connection
with any other event that gives rise to any applicable governmental tax withholding obligation on the part of the Company relating
to an Award (including, without limitation, PRC individual income tax and U.S. FICA and individual income tax), the Company
shall be entitled (i) to require that the Grantee remit to the Company an amount sufficient in the opinion of the Company to satisfy
such withholding obligation, and (ii) to the extent permitted by applicable law, to withhold Shares having a Fair Market Value
equal to the amount of tax to be withheld or deduct from any payment of any kind otherwise due to the Grantee the amount of tax
to be withheld. For this purpose, Fair Market Value shall be determined as of the date on which the amount of tax to be withheld
is determined (and any fractional share amount shall be settled in cash).

 

3.3 Restrictions

 

(a) If the Committee shall at any time
determine that any consent (as hereinafter defined) is necessary or desirable as a condition of, or in connection with, the granting
of any Award, the issuance or purchase of Shares or other rights thereunder, or the taking of any other action thereunder (a “
Plan Action ”), then no such Plan Action shall be taken, in whole or in part, unless and until such consent shall have been
effected or obtained to the full satisfaction of the Committee.

 

(b) The term “ consent ” as
used herein with respect to any action referred to in paragraph (a) means (i) any and all listings, registrations or qualifications
in respect thereof upon any securities exchange or under any applicable law, rule or regulation of any relevant jurisdiction, (ii)
any and all written agreements and representations by the Grantee with respect to the disposition of Shares, or with respect to
any other matter, which the Committee shall deem necessary or desirable to comply with the terms of any such listing, registration
or qualification or to obtain an exemption from the requirement that any such listing, qualification or registration be made, (iii)
any and all consents, clearances and approvals in respect of a Plan Action by any governmental or other regulatory bodies, and
(iv) any and all consents or authorizations required to comply with, or required to be obtained under, applicable local law or
otherwise required by the Committee. Nothing herein shall require the Company to list, register or qualify the Shares on any securities
exchange.

 

3.4 Nonassignability

 

Except to the extent otherwise provided
in the applicable Award Agreement, no Award or right granted to any person under the Plan shall be assignable or transferable other
than by will or by the laws of descent and distribution, and all such Awards and rights shall be exercisable during the life of
the Grantee only by the Grantee or the Grantee’s legal representative. The terms of the Plan and any applicable Award Agreement
shall be binding upon the executors, administrators, heirs, successors or assigns of the Grantee.

 

3.5 Requirement
of Notification Upon Disqualifying Disposition Under Section 421(b) of the Code

 

If any Grantee shall make any disposition
of Shares issued pursuant to the exercise of an Incentive Stock Option under the circumstances described in Section 421(b) of the
Code (relating to certain disqualifying dispositions), such Grantee shall notify the Company of such disposition within ten (10)
days thereof.

 

    	10

    	 

    

 

3.6 Change
in Control

 

(a) A “ Change in Control 
” means the occurrence of any one of the following events:

 

(i) any person is or becomes
a “ beneficial owner  ” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities
of the Company representing more than 30% of the total voting power of the Company’s then outstanding securities generally
eligible to vote for the election of directors (the “ Company Voting Securities  ”); provided  , however
 , that any of the following acquisitions shall not be deemed to be a Change in Control: (1) by the Company or any subsidiary
or affiliate, (2) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any subsidiary or affiliate,
(3) by any underwriter temporarily holding securities pursuant to an offering of such securities, or (4) pursuant to a Non-Qualifying
Transaction (as defined in paragraph (ii));

 

(ii) the consummation of a merger,
consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its subsidiaries
or affiliates that requires the approval of the Company’s stockholders whether for such transaction or the issuance of securities
in the transaction (a “ Business Combination ”), unless immediately following such Business Combination:

 

(A) more than 49% of the total
voting power of (x) the corporation resulting from such Business Combination (the “ Surviving Corporation  ”),
or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 95% of the voting
securities eligible to elect directors of the Surviving Corporation (the “ Parent Corporation  ”), is represented
by Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented
by shares into which such Company Voting Securities were converted pursuant to such Business Combination), and such voting power
among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among the
holders thereof immediately prior to the Business Combination, and

 

(B) no person (other than any
employee benefit plan (or any related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation), is
or becomes the beneficial owner, directly or indirectly, of securities of the Parent Corporation (or, if there is no Parent Corporation,
the Surviving Corporation) representing 30% of the total voting power of the securities then outstanding generally eligible to
vote for the election of directors of the Parent Corporation (or the Surviving Corporation); (any Business Combination which satisfies
all of the criteria specified in (A) and (B) above shall be deemed to be a “ Non-Qualifying Transaction ”);

 

(iii) the shareholders of the
Company approve a plan of complete liquidation or dissolution of the Company; or

 

(iv) the consummation of a sale
of all or substantially all of the Company’s assets to an entity that is not an affiliate of the Company (other than pursuant
to a Non-Qualifying Transaction).

 

Notwithstanding the foregoing, a Change in
Control of the Company shall not be deemed to occur solely because any person acquires beneficial ownership of more than 30% of
Company Voting Securities as a result of the acquisition of Company Voting Securities by the Company which reduces the number of
Company Voting Securities outstanding; provided  , that if after such acquisition by the Company such person becomes the
beneficial owner of additional Company Voting Securities that increases the percentage of outstanding Company Voting Securities
beneficially owned by such person, a Change in Control of the Company shall then occur.

 

(b) Upon the occurrence of a Change in
Control specified in paragraph (a)(iii) above, all outstanding Awards will terminate upon consummation of the liquidation or dissolution
of the Company. The Committee may, in the exercise of its sole discretion in such instances, (i) provide that Awards shall Fully
Vest as of any specified date prior to such liquidation or dissolution and/or (ii) declare that any Award shall terminate as of
any specified date.

 

(c) The following shall occur if Awards
“ Fully Vest  ”: (i) any share options granted under the Plan shall become fully vested and immediately exercisable,
(ii) any RSUs and other share-based Awards granted under the Plan will become fully vested, any restrictions applicable to such
Awards shall lapse and such Awards denominated in Shares will be immediately paid out, and (iii) any performance goals applicable
to Awards will be deemed to be fully satisfied.

 

    	11

    	 

    

 

(d) Upon the occurrence of any Change in
Control or upon the occurrence of a Non-Qualifying Transaction where Awards are not assumed (or substituted) by the Surviving Corporation
or Parent Corporation, the Committee may, in its sole discretion, (i) Fully Vest Awards; (ii) determine that any or all outstanding
Awards granted under the Plan, whether or not exercisable, will be canceled and terminated and that in connection with such cancellation
and termination the holder of such Award may receive for each Share subject to such Awards a cash payment (or the delivery of shares
of stock, other securities or a combination of cash, stock and securities equivalent to such cash payment) equal to the difference,
if any, between the consideration received by shareholders of the Company in respect of a Share in connection with such transaction
and the purchase price per Share, if any, under the Award multiplied by the number of Shares subject to such Award; provided
that if such product is zero or less or to the extent that the Award is not then exercisable, the Awards will be canceled and terminated
without payment therefor; or (iii) provide that the period to exercise share options granted under the Plan shall be extended (but
not beyond the expiration of such option).

 

(e) The Committee shall determine in its
sole discretion whether an Award shall be considered “assumed” or “substituted”. Without limiting the foregoing,
for the purposes of Section 3.6, a share option shall be considered “assumed” or “substituted” if in the
reasonable determination of the Committee (i) the aggregate intrinsic value (the difference between the then Fair Market Value
as reasonably determined by the Committee and the exercise price per Share multiplied by the number of Shares subject to such Award)
of the assumed (or substituted) Award immediately after the Change in Control is substantially the same as the aggregate intrinsic
value of such Award immediately before such transaction, (ii) the ratio of the exercise price per assumed (or substituted) Award
to the Fair Market Value per share of successor corporation stock immediately after the Change in Control is substantially the
same as such ratio for such Award immediately before such transaction and (iii) the Award is exercisable for the consideration
approved by the Committee (including Shares, other securities or other property or a combination of cash, Shares, other securities
and other property).

 

(f) Where the successor corporation assumes
(or substitutes for) any outstanding Awards, if within eighteen (18) months of the consummation of such Change in Control, Grantee’s
employment with the successor corporation is terminated by the successor corporation other than for Cause or the Grantee terminates
employment with the successor corporation for Good Reason, then all outstanding Awards owned by such Participant shall Fully Vest.
For purposes hereof, the term “ Good Reason  ” shall have the meaning specified in the Grantee’s Award
agreement or as otherwise determined by the Committee in its discretion.

 

3.7 Sale
of Subsidiary

 

Unless the Committee determines at any time
in its sole discretion that this Section 3.7 shall not apply, in the event the Company sells or spins off a portion of its assets
or one of its Related Entities and a Grantee is determined to have experienced a Termination of Employment as a result of such
sale or spin-off, then the Grantee shall be permitted to exercise Grantee’s outstanding and Fully Vested share options until
the earlier of one (1) year after such Termination of Employment or the expiration of the Award.

 

3.8 No
Right to Employment or Award

 

Nothing in the Plan or in any Award Agreement
shall confer upon any Grantee the right to continue in the employ of or association with the Company or Related Entity, or affect
any right which the Company or Related Entity may have to terminate such employment or association at any time (with or without
Cause), or confer any additional rights to compensation, damages or otherwise in consequence of or upon the termination of such
employment or association. Nothing in the Plan shall be construed as a commitment to make an Award under the Plan to any or every
Eligible Person.

 

    	12

    	 

    

 

3.9 Independent
of Employment Contract

 

The Plan shall not form part of any contract
of employment or association between the Company or its Related Entities and Eligible Persons. The rights and obligations of an
Eligible Person under the terms of his office or employment shall not be affected by his participation or non-participation in
the Plan or by any right which he may have in relation to any Award (or any matter relating thereto).

 

3.10 Nature
of Payments

 

Any
and all grants of Awards and issuances of Shares under the Plan shall constitute a special incentive payment to the Grantee and
shall not be taken into account in computing the amount of salary or compensation of the Grantee for the purpose of determining
any benefits under any pension, retirement, profit-sharing, bonus, life insurance or other benefit plan of the Company or under
any agreement with the Grantee, unless such plan or agreement specifically provides otherwise.

 

3.11 Non-Uniform
Determinations

 

The Committee’s determinations under
the Plan need not be uniform and may be made by it selectively among persons who receive, or are eligible to receive, Awards (whether
or not such persons are similarly situated). Without limiting the generality of the foregoing, the Committee shall be entitled,
among other things, to make non-uniform and selective determinations, and to enter into non-uniform and selective Award Agreements,
as to the persons to receive Awards under the Plan, and the terms and provisions of Awards under the Plan.

 

3.12 Other
Payments or Awards

 

Nothing
contained in the Plan shall be deemed in any way to limit or restrict the Company from making any Award or payment to any
person under any other plan, arrangement or understanding, whether now existing or hereafter in effect.

 

3.13 
Section Headings

 

The section headings contained herein are
for the purpose of convenience only and are not intended to define or limit the contents of the sections.

 

3.14 Effective
Date and Term of Plan

 

Unless sooner terminated by the Board,
the Plan, including the provisions respecting the grant of Incentive Stock Options, shall terminate the day before the tenth anniversary
of the adoption of the Plan by the shareholders. All Awards made under the Plan prior to its termination shall remain in effect
until such Awards have been satisfied or terminated in accordance with the terms and provisions of the Plan and the applicable
Award Agreements.

 

3.15 Governing
Law

 

All rights and obligations under the Plan
shall be construed and interpreted in accordance with the laws of the State of New York.

 

3.16 Severability;
Entire Agreement

 

If any of the provisions of this Plan or
any Award Agreement is finally held to be invalid, illegal or unenforceable (whether in whole or in part), such provision shall
be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability and the remaining
provisions shall not be affected thereby; provided  , that  if any of such provisions is finally held to be invalid,
illegal, or unenforceable because it exceeds the maximum scope determined to be acceptable to permit such provision to be enforceable,
such provision shall be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision
enforceable hereunder. The Plan and any Award Agreements contain the entire agreement of the parties with respect to the subject
matter thereof and supersede all prior agreements, promises, covenants, arrangements, communications, representations and warranties
between them, whether written or oral with respect to the subject matter thereof.

 

    	13

    	 

    

 

3.17 No
Third Party Beneficiaries

 

Except as expressly provided therein, neither
the Plan nor any Award Agreement shall confer on any person other than the Company and the grantee of any Award any rights or remedies
thereunder.

 

3.18 Successors
and Assigns

 

The terms of this Plan shall be binding
upon and inure to the benefit of the Company and its successors and assigns.

 

3.19 Waiver
of Claims

 

Each grantee of an Award recognizes and
agrees that prior to being selected by the Committee to receive an Award he or she has no right to any benefits hereunder. Accordingly,
in consideration of the grantee’s receipt of any Award hereunder, he or she expressly waives any right to contest the amount
of any Award, the terms of any Award Agreement, any determination, action or omission hereunder or under any Award Agreement by
the Committee, the Board or the Company, or any amendment to the Plan or any Award Agreement (other than an amendment to this Plan
or an Award Agreement to which his or her consent is expressly required by the express terms of the Plan or an Award Agreement).

 

 

    	14

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