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EXHIBIT 10.2

THIS PROMISSORY NOTE HAS BEEN ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR UNITED STATES FEDERAL INCOME TAX PURPOSES. THE ISSUE PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE AND YIELD TO MATURITY OF THE LOANS MAY BE OBTAINED BY WRITING TO ENERGY FOCUS, INC. AT 32000 AURORA ROAD, SUITE B, SOLON, OHIO 44139.

PROMISSORY NOTE 

Effective Date: April 21, 2022                        U.S. $2,000,000.00

FOR VALUE RECEIVED, ENERGY FOCUS, INC., a Delaware corporation (“Borrower”), promises to pay to Streeterville Capital, LLC, a Utah limited liability company, or its successors or assigns (“Lender”), $2,000,000.00 and any interest, fees, charges, and late fees accrued hereunder on the date that is twenty-four (24) months after the Purchase Price Date (the “Maturity Date”) in accordance with the terms set forth herein and to pay interest on the Outstanding Balance at the rate of eight percent (8%) per annum from the Purchase Price Date until the same is paid in full. All interest calculations hereunder shall be computed on the basis of a 360-day year comprised of twelve (12) thirty (30) day months, shall compound daily and shall be payable in accordance with the terms of this Note. This Promissory Note (this “Note”) is issued and made effective as of April 21, 2022 (the “Effective Date”). This Note is issued pursuant to that certain Note Purchase Agreement dated April 21, 2022, as the same may be amended from time to time, by and between Borrower and Lender (the “Purchase Agreement”). Certain capitalized terms used herein are defined in Attachment 1 attached hereto and incorporated herein by this reference.
This Note carries an OID of $215,000.00 all of which amount is fully earned as of the Effective Date and included in the initial principal balance. In addition, Borrower agrees to pay $15,000.00 to Lender to cover Lender’s legal fees, accounting costs, due diligence, monitoring and other transaction costs incurred in connection with the purchase and sale of this Note (the “Transaction Expense Amount”), which amount will be deducted from the amount funded. The purchase price for this Note shall be $1,785,000.00 (the “Purchase Price”), computed as follows: $2,000,000.00 original principal balance, less the OID. The Purchase Price shall be payable by Lender by wire transfer of immediately available funds. 
1.    Payment; Prepayment.

1.1.    Payment. All payments owing hereunder shall be in lawful money of the United States of America and delivered to Lender at the address or bank account furnished to Borrower for that purpose. All payments shall be applied first to (a) costs of collection, if any, then to (b) fees and charges incurred after the date hereof, if any, then to (c) accrued and unpaid interest, and thereafter, to (d) principal. 

1.2.    Prepayment. Borrower may voluntarily prepay all or any portion of the Outstanding Balance earlier than it is due; provided that in the event Borrower elects to voluntarily prepay all or any portion of the Outstanding Balance: (a) on or before the date that is six (6) months from the Effective Date, it shall pay to Lender 105% of the portion of the Outstanding Balance Borrower elects to prepay; or (b) after the date that is six (6) months from the Effective Date, it shall pay to Lender 107.5% of the portion of the Outstanding Balance Borrower elects to repay. Early payments of less than all principal, fees and interest outstanding will not, unless agreed to by Lender in writing, relieve 
    

Borrower of Borrower’s remaining obligations hereunder. Notwithstanding the foregoing, only up to fifty (50%) of the Outstanding Balance may be prepaid pursuant to clause (a) above, any remaining portion of the Outstanding Balance prepaid would be subject to clause (b) above.    

2.    No Security. This Note is unsecured.

3.    Redemption. Beginning on the first day of the calendar month following the date that is seven (7) months after the Purchase Price Date, Lender shall have the right, exercisable at any time in its sole and absolute discretion, to redeem any amount of this Note up to $225,000.00 (such amount, the “Redemption Amount”) per calendar month by providing written notice to Borrower (each, a “Redemption Notice”). For the avoidance of doubt, Lender may submit to Borrower one (1) or more Redemption Notices in any given calendar month so long as the aggregate amount being redeemed in such month does not exceed $225,000.00. Upon receipt of any Redemption Notice, Borrower shall, unless Borrower timely elects to defer payment as provided herein, pay the applicable Redemption Amount in cash to Lender within seven (7) Trading Days of Borrower’s receipt of such Redemption Notice. Notwithstanding the foregoing, if Borrower does not pay the applicable Redemption Amount in cash to Lender within three (3) Trading Days of Borrower’s receipt of a Redemption Notice, then, unless Borrower timely elected to defer payment as provided herein, an amount equal to twenty-five percent (25%) of such Redemption Amount will be added to the Outstanding Balance. Borrower shall have the right to defer all redemption payments that Lender could otherwise elect to make during any calendar month for up to thirty (30) days after the end of such calendar month on five (5) separate occasions, but not during more than three (3) consecutive months, by providing written notice to Lender at least three (3) Trading Days prior to the first day of each such calendar month for which it wishes to defer redemptions for that month. In the event Borrower elects to exercise its deferral right, the Outstanding Balance shall automatically be increased by one and a half percent (1.5%) for each such exercise of Borrower’s deferral right. For the avoidance of doubt, any redemption payment made pursuant to this Section 3 shall not be subject to the prepayment premium set forth in Section 1.2  above.    
4.    Defaults and Remedies.
4.1.    Defaults. The following are events of default under this Note (each, an “Event of Default”): (a) Borrower fails to pay any principal, interest, fees, charges, or any other amount when due and payable hereunder; (b) a receiver, trustee or other similar official shall be appointed over Borrower or a material part of its assets and such appointment shall remain uncontested for twenty (20) days or shall not be dismissed or discharged within sixty (60) days; (c) Borrower becomes insolvent or generally fails to pay, or admits in writing its inability to pay, its debts as they become due, subject to applicable grace periods, if any; (d) Borrower makes a general assignment for the benefit of creditors; (e) Borrower files a petition for relief under any bankruptcy, insolvency or similar law (domestic or foreign); (f) an involuntary bankruptcy proceeding is commenced or filed against Borrower; (g) Borrower defaults or otherwise fails to observe or perform any covenant, obligation, condition or agreement of Borrower contained herein or in any other Transaction Document (as defined in the Purchase Agreement), other than those specifically set forth in this Section 4.1 and Section 4 of the Purchase Agreement; (h) any representation, warranty or other statement made by Borrower herein or in any Transaction Document is false, incorrect, incomplete or misleading in any material respect when made or furnished; (i) the occurrence of a Fundamental Transaction without Lender’s prior written consent; (j) any United States money judgment, writ or similar process is entered or filed against Borrower or any subsidiary of Borrower or any of its property or other assets for more than $1,000,000.00, and shall remain unvacated, unbonded or unstayed for a period of twenty (20) calendar days unless otherwise consented to by Lender; (k) Borrower fails to observe or perform any covenant set forth in Section 4 of the Purchase Agreement 
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(other than the covenant with respect to Unapproved Restricted Issuances); (l) Borrower makes any Unapproved Restricted Issuance; or (m) Borrower breaches any material covenant or other material term or condition contained in any Other Agreements (and such breach has not been cured within any cure period provided in such Other Agreements). Notwithstanding the foregoing, the occurrence of an event specified in Section 4.1(a) above shall not be considered an Event of Default for any purpose of this Note if such event is cured within five (5) days of the occurrence thereof; provided, however, that Borrower’s right to cure pursuant to the foregoing clause shall only be available once during any rolling twelve (12) month period. Notwithstanding the foregoing, the occurrence of any event specified in Section 4.1(g), (h), or (j) – (m) above shall not be considered an Event of Default for any purpose of this Note if such event is cured within thirty (30) days of the occurrence thereof or, if Borrower is unaware of the occurrence of such event, within thirty days after receiving written notice thereof from Lender.
4.2.    Remedies. At any time and from time to time after Lender becomes aware of the occurrence of any Event of Default, Lender may accelerate this Note by written notice to Borrower, with the Outstanding Balance becoming immediately due and payable in cash at the Mandatory Default Amount. Notwithstanding the foregoing, at any time following the occurrence of any Event of Default, Lender may, at its option, elect to increase the Outstanding Balance by applying the Default Effect (subject to the limitation set forth below) via written notice to Borrower without accelerating the Outstanding Balance, in which event the Outstanding Balance shall be increased as of the date of the occurrence of the applicable Event of Default pursuant to the Default Effect, but the Outstanding Balance shall not be immediately due and payable unless so declared by Lender (for the avoidance of doubt, if Lender elects to apply the Default Effect pursuant to this sentence, it shall reserve the right to declare the Outstanding Balance immediately due and payable at any time and no such election by Lender shall be deemed to be a waiver of its right to declare the Outstanding Balance immediately due and payable as set forth herein unless otherwise agreed to by Lender in writing). Notwithstanding the foregoing, upon the occurrence of any Event of Default described in clauses (b), (c), (d), (e) or (f) of Section 4.1, the Outstanding Balance as of the date of acceleration shall become immediately and automatically due and payable in cash at the Mandatory Default Amount, without any written notice required by Lender. At any time following the occurrence of any Event of Default, upon written notice given by Lender to Borrower, interest shall accrue on the Outstanding Balance beginning on the date the applicable Event of Default occurred at an interest rate equal to the lesser of twenty-two percent (22%) per annum or the maximum rate permitted under applicable law (“Default Interest”). In connection with acceleration described herein, Lender need not provide, and Borrower hereby waives, any presentment, demand, protest or other notice of any kind (other than any notice expressly required by the terms of this Note), and Lender may immediately and without expiration of any grace period (other than any grace period expressly provided by the terms of this Note) enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such acceleration may be rescinded and annulled by Lender at any time prior to payment hereunder and Lender shall have all rights as a holder of the Note until such time, if any, as Lender receives full payment pursuant to this Section 4.2. No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon. Nothing herein shall limit Lender’s right to pursue any other remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.
5.    Unconditional Obligation; No Offset. Borrower acknowledges that this Note is an unconditional, valid, binding and enforceable obligation of Borrower not subject to offset, deduction or counterclaim of any kind. Borrower hereby waives any rights of offset it now has or may have hereafter against Lender, its successors and assigns, and agrees to make the payments called for herein in accordance with the terms of this Note.
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6.    Waiver. No waiver of any provision of this Note shall be effective unless it is in the form of a writing signed by the party granting the waiver. No waiver of any provision or consent to any prohibited action shall constitute a waiver of any other provision or consent to any other prohibited action, whether or not similar. No waiver or consent shall constitute a continuing waiver or consent or commit a party to provide a waiver or consent in the future except to the extent specifically set forth in writing.
7.    Restricted Issuance Veto Right. In the event Borrower desires to make a Restricted Issuance (as defined in the Purchase Agreement) it must first provide notice of such proposed Restricted Issuance to Lender and if Lender refuses to give it its consent for such Restricted Issuance, then Borrower may elect to exercise its right to veto Lender’s refusal to consent (the “Veto Right”) on up to three (3) separate occasions and make the Restricted Issuance anyway. The Outstanding Balance will automatically be increased by three percent (3%) for each time Borrower exercises its Veto Right (without the need for Lender to provide any notice to Borrower of such increase), which increase will be effective as of the date of each exercise of the Veto Right. For the avoidance of doubt, any Restricted Issuance pursuant to Borrower’s exercise of the Veto Right shall not be considered an Unapproved Restricted Issuance Default or other Event of Default hereunder. 
8.    Delisting. In the event Borrower’s Common Stock (as defined in the Purchase Agreement) is delisted from Nasdaq, the Outstanding Balance will automatically be increased by fifteen percent (15%) as of the date of such delisting. Borrower acknowledges and agrees that its continued listing on Nasdaq was a material factor in Lender’s decision to purchase this Note, that Lender relied on the continued listing of the Common Stock on Nasdaq in deciding to purchase this Note, and that Lender would not have purchased this Note and made an investment in Borrower if the Common Stock were not listed on Nasdaq. Borrower further acknowledges and agrees that if the Common Stock were delisted from Nasdaq it would increase Lender’s risk of being repaid and that the foregoing balance increase is intended to compensate Lender for such additional risk.
9.    Opinion of Counsel. In the event that an opinion of counsel is needed for any matter related to this Note, Lender has the right to have any such opinion provided by its counsel.
10.    Governing Law; Venue. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of Utah, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Utah. The provisions set forth in the Purchase Agreement to determine the proper venue for any disputes are incorporated herein by this reference.
11.    Arbitration of Disputes. By its issuance or acceptance of this Note, each party agrees to be bound by the Arbitration Provisions (as defined in the Purchase Agreement) set forth as an exhibit to the Purchase Agreement.
12.    Cancellation. After repayment of the entire Outstanding Balance, this Note shall be deemed paid in full, shall automatically be deemed canceled, and shall not be reissued.
13.    Amendments. The prior written consent of both parties hereto shall be required for any change or amendment to this Note.
14.    Assignments. Borrower may not assign this Note without the prior written consent of Lender. This Note may be offered, sold, assigned or transferred by Lender, subject to the consent of 
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Borrower (not to be unreasonably withheld, delayed or conditioned), so long as such transfer is in accordance with applicable federal and state securities laws; provided that Borrower’s consent shall not be required while an Event of Default exists. Notwithstanding the foregoing, Lender may assign this Note to an affiliate without Borrower’s consent. Any such sale, assignment, or transfer shall only be effective upon delivery of written notification to Borrower that a sale, transfer or assignment of the Note has been duly made by the then holder of the Note and until Borrower’s receipt of such notice, Borrower may continue to treat the holder of the Note reflected in its records as the current holder for all purposes under this Note.
15.    Notices. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given in accordance with the subsection of the Purchase Agreement titled “Notices.”
16.    Liquidated Damages. Lender and Borrower agree that in the event Borrower fails to comply with any of the terms or provisions of this Note, Lender’s damages would be uncertain and difficult (if not impossible) to accurately estimate because of the parties’ inability to predict future interest rates, future share prices, future trading volumes and other relevant factors. Accordingly, Lender and Borrower agree that any fees, balance adjustments, Default Interest or other charges assessed under this Note are not penalties but instead are intended by the parties to be, and shall be deemed, liquidated damages.
17.    Severability. If any part of this Note is construed to be in violation of any law, such part shall be modified to achieve the objective of Borrower and Lender to the fullest extent permitted by law and the balance of this Note shall remain in full force and effect.
[Remainder of page intentionally left blank; signature page follows] 

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IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed as of the Effective Date. 

BORROWER:
ENERGY FOCUS, INC.

By: /s/ Tod A. Nestor        
Name: Tod A. Nestor            
Title: COO and CFO        

ACKNOWLEDGED, ACCEPTED AND AGREED:
LENDER:
STREETERVILLE CAPITAL, LLC

By: /s/ John M. Fife                              
       John M. Fife, President
    
[Signature Page to Promissory Note]

ATTACHMENT 1
DEFINITIONS
For purposes of this Note, the following terms shall have the following meanings:
A1.    “Default Effect” means multiplying the Outstanding Balance as of the date the applicable Event of Default occurred (after giving effect to any opportunity to cure) by (a) fifteen percent (15%) for each occurrence of any Major Default, (b) ten percent (10%) for each occurrence of an Unapproved Restricted Issuance Default, or (c) five percent (5%) for each occurrence of any Minor Default, and then adding the resulting product to the Outstanding Balance as of the date the applicable Event of Default occurred, with the sum of the foregoing then becoming the Outstanding Balance under this Note as of the date the applicable Event of Default occurred.
A2.    “Fundamental Transaction” means that (a) (i) Borrower or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, consolidate or merge with or into (whether or not Borrower or any of its subsidiaries is the surviving corporation) any other person or entity, or (ii) Borrower or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its respective properties or assets to any other person or entity, or (iii) Borrower or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, consummate a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other person or entity whereby such other person or entity acquires more than 50% of the outstanding shares of voting stock of Borrower (not including any shares of voting stock of Borrower held by the other persons or entities making or party to, or associated or affiliated with the other persons or entities making or party to, such stock or share purchase agreement or other business combination), or (iv) Borrower or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, reorganize, recapitalize or reclassify the Common Stock, other than an increase in the number of authorized shares of Borrower’s Common Stock, or reverse splits of its outstanding and authorized shares of Common Stock to meet Nasdaq listing requirements.
A3.    “Major Default” means any Event of Default occurring under Sections 4.1(a) or 4.1(k).
A4.    “Mandatory Default Amount” means the Outstanding Balance following the application of the Default Effect.
A5.    “Minor Default” means any Event of Default that is not a Major Default or an Unapproved Restricted Issuance Default.  
A6.    “OID” means an original issue discount.
A7.    “Other Agreements” means, collectively, (a) all existing and future agreements and instruments between, among or by Borrower (or an affiliate), on the one hand, and Lender (or an affiliate), on the other hand, and (b) any financing agreement or a material agreement that affects Borrower’s ongoing business operations.
A8.    “Outstanding Balance” means as of any date of determination, the Purchase Price, as reduced or increased, as the case may be, pursuant to the terms hereof for payment, offset, or otherwise, plus the OID, the Transaction Expense Amount, accrued but unpaid interest, collection and enforcements costs (including attorneys’ fees) incurred by Lender, transfer, stamp, issuance and similar taxes and fees incurred under this Note.
A9.    “Purchase Price Date” means the date the Purchase Price is delivered by Lender to Borrower.
A10.    “Trading Day” means any day on which the New York Stock Exchange (or such other principal market for the Common Stock) is open for trading. For purposes of determining Borrower’s cash payment deadline under this Note, such “Trading Day” shall exclude any day on which banking institutions in Cleveland, Ohio are authorized or required by law or other governmental action to close.
A11.    “Unapproved Restricted Issuance” means a Restricted Issuance for which Borrower did not properly exercise its Veto Right or, in the absence of the proper exercise of the Borrower’s Veto Right, receive Lender’s written consent prior to the applicable issuance.

A12.    “Unapproved Restricted Issuance Default” means an Event of Default occurring under Section 4.1(l) of this Note.Exhibit 10.1

 

LA ROSA HOLDINGS CORP.

 

2022 EQUITY INCENTIVE PLAN

 

1. Purposes of the Plan. The purposes of this Plan are:

 

	
        ·
	to attract and retain the best available personnel for positions of substantial responsibility,
	 	 
	·	to provide incentives to individuals who perform services for the Company, and
	 	 
	·	to promote the success of the Company’s business.

 

The Plan permits the grant of Incentive
Stock Options, Non-statutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units,
Performance Shares and other stock or cash awards as the Administrator may determine.

 

2. Definitions. As used herein, the following definitions will
apply:

 

(a) “Administrator” means the
Compensation Committee of the Board of Directors that will be administering the Plan, in accordance with Section 4 hereof.

 

(b) “Affiliate” means any corporation
or any other entity (including, but not limited to, partnerships and joint ventures) controlling, controlled by, or under common
control with the Company.

 

(c) “Applicable Laws” means
the requirements relating to the administration of equity-based awards under U.S. federal and state corporate laws, U.S. federal
and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the
applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under the Plan.

 

(d) “Award” means, individually
or collectively, a grant under the Plan of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance
Units, Performance Shares and other stock or cash awards as the Administrator may determine.

 

(e) “Award Agreement” means
the written or electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan. The
Award Agreement is subject to the terms and conditions of the Plan.

 

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

 

(g) “Change in Control” means
the occurrence of any of the following events:

 

(i) A change in the ownership of the Company
which occurs on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership
of stock in the Company that, together with the stock already held by such Person, constitutes more than 50% of the total voting
power of the stock of the Company; provided, however, that for purposes of this subsection (i), the acquisition of additional
stock by any Person who is considered to own more than 50% of the total voting power of the stock of the Company before the acquisition
will not be considered a Change in Control; or

 

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	 	La Rosa Holdings Corp. 2022 Equity Incentive Plan	 

     

    

 

(ii) A change in the effective control
of the Company, which occurs on the date that a majority of the members of the Board are replaced during any twelve (12) month
period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of
the appointment or election. For purposes of this subsection (ii), if any Person is considered to effectively control the Company,
the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or

 

(iii) A change in the ownership of a substantial
portion of the Company’s assets, which occurs on the date that any Person acquires (or has acquired during the twelve (12)
month period ending on the date of the most recent acquisition by such Person) assets from the Company that have a total gross
fair market value equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately
prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection (iii), the following will
not constitute a change in the ownership of a substantial portion of the Company’s assets or a Change in Control: (A) a transfer
to an entity that is controlled by the Company’s stockholders immediately after the transfer, or (B) a transfer of assets
by the Company to: (1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to
the Company’s stock, (2) an entity, 50% or more of the total value or voting power of which is owned, directly or indirectly,
by the Company, (3) a Person that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding
stock of the Company, or (4) an entity, at least 50% of the total equity or voting power of which is owned, directly or indirectly,
by a Person described in subsection (iii)(B)(3) above. For purposes of this subsection (iii), gross fair market value means the
value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities
associated with such assets.

 

Notwithstanding the foregoing, as to any
Award under the Plan that consists of deferred compensation subject to Section 409A of the Code, the definition of “Change
in Control” shall be deemed modified to the extent necessary to comply with Section 409A of the Code.

 

For purposes of this Section 2(g), persons
will be considered to be acting as a group if they are owners of a corporation or other entity that enters into a merger, consolidation,
purchase or acquisition of stock, or similar business transaction with the Company.

 

(h) “Code” means the Internal
Revenue Code of 1986, as amended. Any reference to a section of the Code herein will be a reference to any successor or amended
section of the Code.

 

(i) “Committee” means a committee
of Directors or of other individuals satisfying Applicable Laws appointed by the Board in accordance with Section 4 hereof.

 

(j) “Common Stock” means the
common stock, $0.0001 par value per share, of the Company.

 

(k) “Company” means La Rosa
Holdings Corp., a Nevada corporation, or any successor thereto.

 

(l) “Consultant” means any
person, including an advisor, engaged by the Company or a Parent, Subsidiary or Affiliate to render services to the Company or
a Subsidiary.

 

(m) “Determination Date” means
the latest possible date that will not jeopardize the qualification of an Award granted under the Plan as “performance-based
compensation” under Section 162(m) of the Code.

 

(n) “Director” means a member
of the Board.

 

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	 	La Rosa Holdings Corp. 2022 Equity Incentive Plan	 

     

    

 

(o) “Disability” means permanent
and total disability as defined in Section 22(e)(3) of the Code, provided that in the case of Awards other than Incentive Stock
Options, the Administrator in its discretion may determine whether a permanent and total disability exists in accordance with uniform
and non-discriminatory standards adopted by the Administrator from time to time.

 

(p) “Employee” means any person,
including Officers and Directors, employed by the Company or any Parent, Subsidiary or Affiliate of the Company. Neither service
as a Director nor payment of a director’s fee by the Company will be sufficient to constitute “employment” by
the Company.

 

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

 

(r) “Exchange Program” means
a program under which (i) outstanding Awards are surrendered or cancelled in exchange for Awards of the same type (which may have
lower exercise prices and different terms), Awards of a different type, and/or cash, (ii) Participants would have the opportunity
to transfer any outstanding Awards to a financial institution or other person or entity selected by the Administrator, and/or (iii)
the exercise price of an outstanding Award is reduced. The Administrator will determine the terms and conditions of any Exchange
Program in its sole discretion.

 

(s) “Fair Market Value” means,
as of any date, the value of the Common Stock determined as follows:

 

(i) If the Common Stock is listed on any
established stock exchange or a national market system, including without limitation the Nasdaq Global Select Market, the Nasdaq
Global Market or the Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value will be the closing sales price for
such stock (or if no closing sales price was reported on that date, as applicable, on the last trading date such closing sales
price was reported) as quoted on such exchange or system on the day of determination, as reported in The Wall Street Journal or
such other source as the Administrator deems reliable;

 

(ii) If the Common Stock is regularly quoted
by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share will be the mean between
the high bid and low asked prices for the Common Stock on the day of determination (or, if no bids and asks were reported on that
date, as applicable, on the last trading date such bids and asks were reported), as reported in The Wall Street Journal or such
other source as the Administrator deems reliable; or

 

(iii) In the absence of an established
market for the Common Stock, or if such Common Stock is not regularly quoted or does not have sufficient trades or bid prices which
would accurately reflect the actual Fair Market Value of the Common Stock, the Fair Market Value will be determined in good faith
by the Administrator upon the advice of a qualified valuation expert.

 

(t) “Fiscal Year” means the
fiscal year of the Company.

 

(u) “Incentive Stock Option”
means an Option that by its terms qualifies and is otherwise intended to qualify as an incentive stock option within the meaning
of Section 422 of the Code and the regulations promulgated thereunder.

 

(v) “Non-statutory Stock Option”
means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.

 

(w) “Officer” means a person
who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated
thereunder.

 

(x) “Option” means a stock
option granted pursuant to Section 6 hereof.

 

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(y) “Parent” means a “parent
corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.

 

(z) “Participant” means the
holder of an outstanding Award.

 

(aa) “Performance Goals” will
have the meaning set forth in Section 11 hereof.

 

(bb) “Performance Period” means
any Fiscal Year of the Company or such other period as determined by the Administrator in its sole discretion.

 

(cc) “Performance Share” means
an Award denominated in Shares which may be earned in whole or in part upon attainment of Performance Goals or other vesting criteria
as the Administrator may determine pursuant to Section 10 hereof.

 

(dd) “Performance Unit” means
an Award which may be earned in whole or in part upon attainment of Performance Goals or other vesting criteria as the Administrator
may determine and which may be settled for cash, Shares or other securities or a combination of the foregoing pursuant to Section
10 hereof.

 

(ee) “Period of Restriction”
means the period during which transfers of Shares of Restricted Stock are subject to restrictions and, therefore, the Shares are
subject to a substantial risk of forfeiture. Such restrictions may be based on the passage of time, the achievement of target levels
of performance, or the occurrence of other events as determined by the Administrator.

 

(ff) “Plan” means this 2022
Equity Incentive Plan.

 

(gg) “Restricted Stock” means
Shares issued pursuant to an Award of Restricted Stock under Section 8 hereof, or issued pursuant to the early exercise of an Option.

 

(hh) “Restricted Stock Unit”
means a bookkeeping entry representing an amount equal to the Fair Market Value of one Share, granted pursuant to Section 9 hereof.
Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company.

 

(ii) “Rule 16b-3” means Rule
16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan.
(jj) “Section 16(b)” means Section 16(b) of the Exchange Act.

 

(kk) “Service Provider” means
an Employee, Director, or Consultant.

 

(ll) “Share” means a share
of the Common Stock, as adjusted in accordance with Section 15 hereof.

 

(mm) “Stock Appreciation Right”
means an Award, granted alone or in connection with an Option, that pursuant to Section 7 is designated as a Stock Appreciation
Right.

 

(nn) “Subsidiary” means a “subsidiary
corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code.

 

3. Stock Subject to the Plan.

 

(a) Subject to the provisions of Section
15 hereof, the maximum aggregate number of Shares that may be awarded and sold under the Plan is 25,000,000 Shares. The Shares
may be authorized, but unissued, or reacquired Common Stock.

 

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(b) Lapsed Awards. If an Award expires
or becomes unexercisable without having been exercised in full, is surrendered pursuant to an Exchange Program, or, with respect
to Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units, is forfeited to or repurchased by the Company,
the unpurchased Shares (or for Awards other than Options and Stock Appreciation Rights, the forfeited or repurchased Shares) which
were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated). Upon exercise
of a Stock Appreciation Right settled in Shares, the gross number of Shares covered by the portion of the Award so exercised will
cease to be available under the Plan. Shares that have actually been issued under the Plan under any Award will not be returned
to the Plan and will not become available for future distribution under the Plan; provided, however, that if unvested Shares
of Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units are repurchased by the Company or are forfeited
to the Company, such Shares will become available for future grant under the Plan. Shares used to pay the tax and/or exercise price
of an Award will become available for future grant or sale under the Plan. To the extent an Award under the Plan is paid out in
cash rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance under the Plan.
Notwithstanding the foregoing provisions of this Section 3(b), subject to adjustment provided in Section 14 hereof, the maximum
number of Shares that may be issued upon the exercise of Incentive Stock Options will equal the aggregate Share number stated in
Section 3(a) above, plus, to the extent allowable under Section 422 of the Code, any Shares that become available for issuance
under the Plan under this Section 3(b).

 

(c) Share Reserve. The Company, during
the term of this Plan, will at all times reserve and keep available such number of Shares as will be sufficient to satisfy the
requirements of the Plan.

 

(d) Limitation on Number of Shares Subject
to Awards. Notwithstanding any provision in the Plan to the contrary, the maximum aggregate amount of cash that may be paid in
cash during any calendar year (measured from the date of any payment) with respect to one or more Awards payable in cash shall
be $100,000.

 

4. Administration of the Plan.

 

(a) Procedure.

 

(i) Multiple Administrator. The Administrator
of this Plan shall be a Compensation Committee of the Board of Directors.

 

(ii) Section 162(m). To the extent that
the Administrator determines it to be desirable to qualify Awards granted hereunder as “performance-based compensation”
within the meaning of Section 162(m) of the Code, the Plan will be administered by a Committee of two (2) or more “outside
directors” within the meaning of Section 162(m) of the Code.

 

(iii) Rule 16b-3. To the extent desirable
to qualify transactions hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder will be structured to satisfy
the requirements for exemption under Rule 16b-3.

 

(b) Powers of the Administrator. Subject
to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee,
the Administrator will have the authority, in its discretion:

 

(i) to determine the Fair Market Value;

 

(ii) to select the Service Providers to
whom Awards may be granted hereunder;

 

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(iii) to determine the number of Shares
to be covered by each Award granted hereunder;

 

(iv) to approve forms of Award Agreements
for use under the Plan;

 

(v) to determine the terms and conditions,
not inconsistent with the terms of the Plan, of any Award granted hereunder;

 

(vi) to institute an Exchange Program and
to determine the terms and conditions, not inconsistent with the terms of the Plan, for (1) the surrender or cancellation of outstanding
Awards in exchange for Awards of the same type, Awards of a different type, and/or cash, (2) the transfer of outstanding Awards
to a financial institution or other person or entity, or (3) the reduction of the exercise price of outstanding Awards;

 

(vii) to construe and interpret the terms
of the Plan and Awards granted pursuant to the Plan;

 

(viii) to prescribe, amend and rescind
rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of
satisfying applicable foreign laws or for qualifying for favorable tax treatment under applicable foreign laws;

 

(ix) to modify or amend each Award (subject
to Section 20(c) hereof), including but not limited to the discretionary authority to extend the post-termination exercisability
period of Awards;

 

(x) to allow Participants to satisfy withholding
tax obligations in a manner described in Section 16 hereof;

 

(xi) to authorize any person to execute
on behalf of the Company any instrument required to effect the grant of an Award previously granted by the Administrator;

 

(xii) to allow a Participant to defer the
receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant under an Award pursuant
to such procedures as the Administrator may determine; and

 

(xiii) to make all other determinations
deemed necessary or advisable for administering the Plan.

 

(c) Effect of Administrator’s Decision.
The Administrator’s decisions, determinations, and interpretations will be final and binding on all Participants and any
other holders of Awards.

 

5. Eligibility. Non-statutory Stock Options,
Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, Performance Units, Performance Shares, and such other cash
or stock awards as the Administrator determines may be granted to Service Providers. Incentive Stock Options may be granted only
to Employees.

 

6. Stock Options.

 

(a) Limitations.

 

(i) Each Option will be designated in the
Award Agreement as either an Incentive Stock Option or a Non-statutory Stock Option. However, notwithstanding such designation,
to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable
for the first time by the Participant during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds
$100,000 (U.S.), such Options will be treated as Non-statutory Stock Options. For purposes of this Section 6(a), Incentive Stock
Options will be taken into account in the order in which they were granted. The Fair Market Value of the Shares will be determined
as of the time the Option with respect to such Shares is granted.

 

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(ii) The Administrator will have complete
discretion to determine the number of Shares subject to an Option granted to any Participant.

 

(b) Term of Option. The Administrator will
determine the term of each Option in its sole discretion; provided, however, that the term will be no more than ten (10) years
from the date of grant thereof. Moreover, in the case of an Incentive Stock Option granted to a Participant who, at the time the
Incentive Stock Option is granted, owns stock representing more than 10% of the total combined voting power of all classes of stock
of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option will be five (5) years from the date of grant
or such shorter term as may be provided in the Award Agreement.

 

(c) Option Exercise Price and Consideration.

 

(i) Exercise Price. The per share exercise
price for the Shares to be issued pursuant to exercise of an Option will be determined by the Administrator, but will be no less
than 100% of the Fair Market Value per Share on the date of grant. In addition, in the case of an Incentive Stock Option granted
to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than 10% of the voting power
of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price will be no less than 110% of the
Fair Market Value per Share on the date of grant. Notwithstanding the foregoing provisions of this Section 6(c), Options may be
granted with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of grant pursuant to a
transaction described in, and in a manner consistent with, Section 424(a) of the Code.

 

(ii) Waiting Period and Exercise Dates.
At the time an Option is granted, the Administrator will fix the period within which the Option may be exercised and will determine
any conditions that must be satisfied before the Option may be exercised.

 

(iii) Form of Consideration. The Administrator
will determine the acceptable form(s) of consideration for exercising an Option, including the method of payment, to the extent
permitted by Applicable Laws. In the case of an Incentive Stock Option, the Administrator will determine the acceptable form of
consideration at the time of grant. Such consideration may consist entirely of: (1) cash; (2) check; (3) promissory note,
to the extent permitted by Applicable Laws, (4) other Shares, provided that such Shares have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which such Option will be exercised and provided further that
accepting such Shares will not result in any adverse accounting consequences to the Company, as the Administrator determines in
its sole discretion; (5) consideration received by the Company under cashless exercise program (whether through a broker or
otherwise) implemented by the Company in connection with the Plan; (6) by net exercise, (7) such other consideration and method
of payment for the issuance of Shares to the extent permitted by Applicable Laws, or (8) any combination of the foregoing methods
of payment. In making its determination as to the type of consideration to accept, the Administrator will consider if acceptance
of such consideration may be reasonably expected to benefit the Company.

 

(d) Exercise of Option.

 

(i) Procedure for Exercise; Rights
as a Stockholder. Any Option granted hereunder will be exercisable according to the terms of the Plan and at such times and under
such conditions as determined by the Administrator and set forth in the Award Agreement. An Option may not be exercised for a fraction
of a Share.

 

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An Option will be deemed exercised when
the Company receives: (i) notice of exercise (in such form as the Administrator specifies from time to time) from the person entitled
to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised (together with any applicable
withholding taxes). Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted
by the Award Agreement and the Plan. Shares issued upon exercise of an Option will be issued in the name of the Participant or,
if requested by the Participant, in the name of the Participant and his or her spouse. Until the Shares are issued (as evidenced
by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or
receive dividends or any other rights as a stockholder will exist with respect to the Shares subject to an Option, notwithstanding
the exercise of the Option. The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised.
No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued,
except as provided in Section 15 hereof.

 

(ii) Termination of Relationship as a Service
Provider. If a Participant ceases to be a Service Provider, other than upon the Participant’s termination as the result of
the Participant’s death or Disability, the Participant may exercise his or her Option within such period of time as is specified
in the Award Agreement to the extent that the Option is vested on the date of termination (but in no event later than the expiration
of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the
Option will remain exercisable for three (3) months following the Participant’s termination. Unless otherwise provided by
the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered
by the unvested portion of the Option will revert to the Plan. If after termination the Participant does not exercise his or her
Option within the time specified by the Administrator, the Option will terminate, and the Shares covered by such Option will revert
to the Plan.

 

(iii) Disability of Participant. If a Participant
ceases to be a Service Provider as a result of the Participant’s Disability, the Participant may exercise his or her Option
within such period of time as is specified in the Award Agreement to the extent the Option is vested on the date of termination
(but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a
specified time in the Award Agreement, the Option will remain exercisable for six (6) months following the Participant’s
termination. Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to
his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination
the Participant does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares
covered by such Option will revert to the Plan.

 

(iv) Death of Participant. If a Participant
dies while a Service Provider, the Option may be exercised within such period of time as is specified in the Award Agreement to
the extent that the Option is vested on the date of death (but in no event may the option be exercised later than the expiration
of the term of such Option as set forth in the Award Agreement), by the Participant’s designated beneficiary, provided such
beneficiary has been designated prior to Participant’s death in a form acceptable to the Administrator. If no such beneficiary
has been designated by the Participant, then such Option may be exercised by the personal representative of the Participant’s
estate or by the person(s) to whom the Option is transferred pursuant to the Participant’s will or in accordance with the
laws of descent and distribution. In the absence of a specified time in the Award Agreement, the Option will remain exercisable
for six (6) months following Participant’s death. Unless otherwise provided by the Administrator, if at the time of death
Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will continue
to vest in accordance with the Award Agreement. If the Option is not so exercised within the time specified herein, the Option
will terminate, and the Shares covered by such Option will revert to the Plan.

 

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7. Stock Appreciation Rights.

 

(a) Grant of Stock Appreciation Rights.
Subject to the terms and conditions of the Plan, a Stock Appreciation Right may be granted to Service Providers at any time and
from time to time as will be determined by the Administrator, in its sole discretion.

 

(b) Number of Shares. The Administrator
will have complete discretion to determine the number of Stock Appreciation Rights granted to any Participant.

 

(c) Exercise Price and Other Terms. The
Administrator, subject to the provisions of the Plan, will have complete discretion to determine the terms and conditions of Stock
Appreciation Rights granted under the Plan; provided, however, that the exercise price will be not less than 100% of the Fair
Market Value of a Share on the date of grant.

 

(d) Stock Appreciation Rights Agreement.
Each Stock Appreciation Right grant will be evidenced by an Award Agreement that will specify the exercise price, the term of the
Stock Appreciation Right, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion,
will determine.

 

(e) Expiration of Stock Appreciation Rights.
A Stock Appreciation Right granted under the Plan will expire upon the date determined by the Administrator, in its sole discretion,
and set forth in the Award Agreement; provided, however, that the term will be no more than ten (10) years from the date of
grant thereof. Notwithstanding the foregoing, the rules of Section 6(d) above also will apply to Stock Appreciation Rights.

 

(f) Payment of Stock Appreciation Right
Amount. Upon exercise of a Stock Appreciation Right, a Participant will be entitled to receive payment from the Company in an amount
determined by multiplying:

 

(i) The difference between the Fair Market
Value of a Share on the date of exercise over the exercise price; times

 

(ii) The number of Shares with respect
to which the Stock Appreciation Right is exercised.

 

At the discretion of the Administrator,
the payment upon Stock Appreciation Right exercise may be in cash, in Shares of equivalent value, or in some combination thereof.

 

8. Restricted Stock.

 

(a) Grant of Restricted Stock. Subject
to the terms and provisions of the Plan, the Administrator, at any time and from time to time, may grant Shares of Restricted Stock
to Service Providers in such amounts as the Administrator, in its sole discretion, will determine.

 

(b) Restricted Stock Agreement. Each Award
of Restricted Stock will be evidenced by an Award Agreement that will specify the Period of Restriction, the number of Shares granted,
and such other terms and conditions as the Administrator, in its sole discretion, will determine. Unless the Administrator determines
otherwise, the Company as escrow agent will hold Shares of Restricted Stock until the restrictions on such Shares have lapsed.

 

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(c) Transferability. Except as provided
in this Section 8, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated
until the end of the applicable Period of Restriction.

 

(d) Other Restrictions. The Administrator,
in its sole discretion, may impose such other restrictions on Shares of Restricted Stock as it may deem advisable or appropriate.

 

(e) Removal of Restrictions. Except as
otherwise provided in this Section 8, Shares of Restricted Stock covered by each Restricted Stock grant made under the Plan will
be released from escrow as soon as practicable after the last day of the Period of Restriction. The Administrator, in its discretion,
may accelerate the time at which any restrictions will lapse or be removed.

 

(f) Voting Rights. During the Period of
Restriction, Service Providers holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect
to those Shares, unless the Administrator determines otherwise.

 

(g) Dividends and Other Distributions.
During the Period of Restriction, Service Providers holding Shares of Restricted Stock will be entitled to receive all dividends
and other distributions paid with respect to such Shares unless otherwise provided in the Award Agreement. If any such dividends
or distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability and forfeitability
as the Shares of Restricted Stock with respect to which they were paid.

 

(h) Return of Restricted Stock to Company.
On the date set forth in the Award Agreement, the Restricted Stock for which restrictions have not lapsed will revert to the Company
and again will become available for grant under the Plan.

 

(i) Section 162(m) Performance Restrictions.
For purposes of qualifying grants of Restricted Stock as “performance-based compensation” under Section 162(m) of the
Code, the Administrator, in its discretion, may set restrictions based upon the achievement of Performance Goals. The Performance
Goals will be set by the Administrator on or before the Determination Date. In granting Restricted Stock which is intended to qualify
under Section 162(m) of the Code, the Administrator will follow any procedures determined by it from time to time to be necessary
or appropriate to ensure qualification of the Award under Section 162(m) of the Code (e.g., in determining the Performance Goals).

 

9. Restricted Stock Units.

 

(a) Grant. Restricted Stock Units may be
granted at any time and from time to time as determined by the Administrator. Each Restricted Stock Unit grant will be evidenced
by an Award Agreement that will specify such other terms and conditions as the Administrator, in its sole discretion, will determine,
including all terms, conditions, and restrictions related to the grant, the number of Restricted Stock Units and the form of payout,
which, subject to Section 9(d) hereof, may be left to the discretion of the Administrator.

 

(b) Vesting Criteria and Other Terms. The
Administrator will set vesting criteria in its discretion, which, depending on the extent to which the criteria are met, will determine
the number of Restricted Stock Units that will be paid out to the Participant. After the grant of Restricted Stock Units, the Administrator,
in its sole discretion, may reduce or waive any restrictions for such Restricted Stock Units. Each Award of Restricted Stock Units
will be evidenced by an Award Agreement that will specify the vesting criteria, and such other terms and conditions as the Administrator,
in its sole discretion will determine. The Administrator, in its discretion, may accelerate the time at which any restrictions
will lapse or be removed.

 

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(c) Earning Restricted Stock Units. Upon
meeting the applicable vesting criteria, the Participant will be entitled to receive a payout as specified in the Award Agreement.

 

(d) Form and Timing of Payment. Payment
of earned Restricted Stock Units will be made as soon as practicable after the date(s) set forth in the Award Agreement. The Administrator,
in its sole discretion, may pay earned Restricted Stock Units in cash, Shares, or a combination thereof. Shares represented by
Restricted Stock Units that are fully paid in cash again will be available for grant under the Plan.

 

(e) Cancellation. On the date set forth
in the Award Agreement, all unearned Restricted Stock Units will be forfeited to the Company.

 

(f) Section 162(m) Performance Restrictions.
For purposes of qualifying grants of Restricted Stock Units as “performance-based compensation” under Section 162(m)
of the Code, the Administrator, in its discretion, may set restrictions based upon the achievement of Performance Goals. The Performance
Goals will be set by the Administrator on or before the Determination Date. In granting Restricted Stock Units which are intended
to qualify under Section 162(m) of the Code, the Administrator will follow any procedures determined by it from time to time to
be necessary or appropriate to ensure qualification of the Award under Section 162(m) of the Code (e.g., in determining the Performance
Goals).

 

10. Performance Units and Performance Shares.

 

(a) Grant of Performance Units/Shares.
Performance Units and Performance Shares may be granted to Service Providers at any time and from time to time, as will be determined
by the Administrator, in its sole discretion. The Administrator will have complete discretion in determining the number of Performance
Units/Shares granted to each Participant.

 

(b) Value of Performance Units/Shares.
Each Performance Unit will have an initial value that is established by the Administrator on or before the date of grant. Each
Performance Share will have an initial value equal to the Fair Market Value of a Share on the date of grant.

 

(c) Performance Objectives and Other Terms.
The Administrator will set performance objectives or other vesting provisions. The Administrator may set vesting criteria based
upon the achievement of Company-wide, business unit, or individual goals (including, but not limited to, continued employment),
or any other basis determined by the Administrator in its discretion. Each Award of Performance Units/Shares will be evidenced
by an Award Agreement that will specify the Performance Period, and such other terms and conditions as the Administrator, in its
sole discretion, will determine.

 

(d) Earning of Performance Units/Shares.
After the applicable Performance Period has ended, the holder of Performance Units/Shares will be entitled to receive a payout
of the number of Performance Units/Shares earned by the Participant over the Performance Period, to be determined as a function
of the extent to which the corresponding performance objectives or other vesting provisions have been achieved. After the grant
of a Performance Unit/Share, the Administrator, in its sole discretion, may reduce or waive any performance objectives or other
vesting provisions for such Performance Unit/Share.

 

(e) Form and Timing of Payment of Performance
Units/Shares. Payment of earned Performance Units/Shares will be made as soon as practicable after the expiration of the applicable
Performance Period. The Administrator, in its sole discretion, may pay earned Performance Units/Shares in the form of cash, in
Shares (which have an aggregate Fair Market Value equal to the value of the earned Performance Units/Shares at the close of the
applicable Performance Period) or in a combination thereof.

 

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(f) Cancellation of Performance Units/Shares.
On the date set forth in the Award Agreement, all unearned or unvested Performance Units/Shares will be forfeited to the Company,
and again will be available for grant under the Plan.

 

(g) Section 162(m) Performance Restrictions.
For purposes of qualifying grants of Performance Units/Shares as “performance-based compensation” under Section 162(m)
of the Code, the Administrator, in its discretion, may set restrictions based upon the achievement of Performance Goals. The Performance
Goals will be set by the Administrator on or before the Determination Date. In granting Performance Units/Shares which are intended
to qualify under Section 162(m) of the Code, the Administrator will follow any procedures determined by it from time to time to
be necessary or appropriate to ensure qualification of the Award under Section 162(m) of the Code (e.g., in determining the Performance
Goals).

 

11. Performance-Based Compensation Under
Code Section 162(m).

 

(a) General. If the Administrator, in its
discretion, decides to grant an Award intended to qualify as “performance-based compensation” under Code Section 162(m),
the provisions of this Section 11 will control over any contrary provision in the Plan; provided, however, that the Administrator
may in its discretion grant Awards that are not intended to qualify as “performance-based compensation” under Section
162(m) of the Code to such Participants that are based on Performance Goals or other specific criteria or goals but that do not
satisfy the requirements of this Section 11.

 

(b) Performance Goals. The granting and/or
vesting of Awards of Restricted Stock, Restricted Stock Units, Performance Shares and Performance Units and other incentives under
the Plan may be made subject to the attainment of performance goals relating to one or more business criteria within the meaning
of Code Section 162(m) and may provide for a targeted level or levels of achievement (“Performance Goals”) including
(i) earnings per Share, (ii) operating cash flow, (iii) operating income, (iv) profit after-tax, (v) profit before-tax, (vi) return
on assets, (vii) return on equity, (viii) return on sales, (ix) revenue, and (x) total stockholder return. Any Performance Goals
may be used to measure the performance of the Company as a whole or a business unit of the Company and may be measured relative
to a peer group or index. The Performance Goals may differ from Participant to Participant and from Award to Award. Prior to the
Determination Date, the Administrator will determine whether any significant element(s) will be included in or excluded from the
calculation of any Performance Goal with respect to any Participant.

 

(c) Procedures. To the extent necessary
to comply with the performance-based compensation provisions of Code Section 162(m), with respect to any Award granted subject
to Performance Goals, within the first twenty-five percent (25%) of the Performance Period, but in no event more than ninety (90)
days following the commencement of any Performance Period (or such other time as may be required or permitted by Code Section 162(m)),
the Administrator will, in writing, (i) designate one or more Participants to whom an Award will be made, (ii) select the Performance
Goals applicable to the Performance Period, (iii) establish the Performance Goals, and amounts of such Awards, as applicable, which
may be earned for such Performance Period, and (iv) specify the relationship between Performance Goals and the amounts of such
Awards, as applicable, to be earned by each Participant for such Performance Period. Following the completion of each Performance
Period, the Administrator will certify in writing whether the applicable Performance Goals have been achieved for such Performance
Period. In determining the amounts earned by a Participant, the Administrator will have the right to reduce or eliminate (but not
to increase) the amount payable at a given level of performance to take into account additional factors that the Administrator
may deem relevant to the assessment of individual or corporate performance for the Performance Period. A Participant will be eligible
to receive payment pursuant to an Award for a Performance Period only if the Performance Goals for such period are achieved.

 

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(d) Additional Limitations. Notwithstanding
any other provision of the Plan, any Award which is granted to a Participant and is intended to constitute qualified performance
based compensation under Code Section 162(m) will be subject to any additional limitations set forth in the Code (including any
amendment to Section 162(m)) or any regulations and ruling issued thereunder that are requirements for qualification as qualified
performance-based compensation as described in Section 162(m) of the Code, and the Plan will be deemed amended to the extent necessary
to conform to such requirements.

 

12. Compliance with Code Section 409A.
Awards will be designed and operated in such a manner that they are either exempt from the application of, or comply with, the
requirements of Code Section 409A, except as otherwise determined in the sole discretion of the Administrator. The Plan and each
Award Agreement under the Plan is intended to meet the requirements of Code Section 409A and will be construed and interpreted
in accordance with such intent, except as otherwise determined in the sole discretion of the Administrator. To the extent that
an Award or payment, or the settlement or deferral thereof, is subject to Code Section 409A the Award will be granted, paid, settled
or deferred in a manner that will meet the requirements of Code Section 409A, such that the grant, payment, settlement or deferral
will not be subject to the additional tax or interest applicable under Code Section 409A.

 

13. Leaves of Absence. Unless the Administrator
provides otherwise, vesting of Awards granted hereunder will be suspended during any unpaid leave of absence. A Service Provider
will not cease to be an Employee in the case of (i) any leave of absence approved by the Company, or (ii) transfers between locations
of the Company or between the Company, its Parent, or any Subsidiary. For purposes of Incentive Stock Options, no such leave may
exceed three (3) months, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment
upon expiration of a leave of absence approved by the Company is not so guaranteed, then six (6) months and one day following the
commencement of such leave any Incentive Stock Option held by the Participant will cease to be treated as an Incentive Stock Option
and will be treated for tax purposes as a Non-statutory Stock Option.

 

14. Transferability of Awards. Unless determined
otherwise by the Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner
other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Participant, only
by the Participant. If the Administrator makes an Award transferable, such Award may only be transferred (i) by will, (ii) by the
laws of descent and distribution, (iii) to a revocable trust, or (iii) as permitted by Rule 701 of the Securities Act of 1933,
as amended.

 

15. Adjustments; Dissolution or Liquidation;
Merger or Change in Control.

 

(a) Adjustments. In the event that any
dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock
split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of
Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs,
the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available
under the Plan, will adjust the number and class of Shares that may be delivered under the Plan and/or the number, class, and price
of Shares covered by each outstanding Award, and the numerical Share limits set forth in Sections 3, 6, 7, 8, 9 and 10 hereof.

 

(b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Administrator will notify each Participant as soon as practicable prior to the effective
date of such proposed transaction. To the extent it has not been previously exercised, an Award will terminate immediately prior
to the consummation of such proposed action.

 

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(c) Change in Control. In the event of
a merger of the Company with or into another corporation or other entity or a Change in Control, each outstanding Award will be
treated as the Administrator determines (subject to the provisions of the proceeding paragraph) without a Participant’s consent,
including, without limitation, that (i) Awards will be assumed, or substantially equivalent Awards will be substituted, by the
acquiring or succeeding corporation (the “Successor Corporation”) (or an affiliate thereof) with appropriate adjustments
as to the number and kind of shares and prices; (ii) upon written notice to a Participant, that the Participant’s Awards
will terminate upon or immediately prior to the consummation of such merger or Change in Control; (iii) outstanding Awards
will vest and become exercisable, realizable, or payable, or restrictions applicable to an Award will lapse, in whole or in part
prior to or upon consummation of such merger or Change in Control, and, to the extent the Administrator determines, terminate upon
or immediately prior to the effectiveness of such merger or Change in Control; (iv) (A) the termination of an Award in exchange
for an amount of cash and/or property, if any, equal to the amount that would have been attained upon the exercise of such Award
or realization of the Participant’s rights as of the date of the occurrence of the transaction (and, for the avoidance of
doubt, if as of the date of the occurrence of the transaction the Administrator determines in good faith that no amount would have
been attained upon the exercise of such Award or realization of the Participant’s rights, then such Award may be terminated
by the Company without payment), or (B) the replacement of such Award with other rights or property selected by the Administrator
in its sole discretion; or (v) any combination of the foregoing. In taking any of the actions permitted under this subsection
(c), the Administrator will not be obligated to treat all Awards, all Awards held by a Participant, or all Awards of the same type,
similarly.

 

In the event that the Successor Corporation
does not assume or substitute for the Award, the Participant will fully vest in and have the right to exercise all of his or her
outstanding Options and Stock Appreciation Rights, including Shares as to which such Awards would not otherwise be vested or exercisable,
all restrictions on Restricted Stock will lapse, and, with respect to Restricted Stock Units, Performance Shares and Performance
Units, all Performance Goals or other vesting criteria will be deemed achieved at target levels and all other terms and conditions
met. In addition, if an Option or Stock Appreciation Right is not assumed or substituted for in the event of a Change in Control,
the Administrator will notify the Participant in writing or electronically that the Option or Stock Appreciation Right will be
fully vested and exercisable for a period of time determined by the Administrator in its sole discretion, and the Option or Stock
Appreciation Right will terminate upon the expiration of such period.

 

For the purposes of this subsection (c),
an Award will be considered assumed if, following the Change in Control, the Award confers the right to purchase or receive, for
each Share subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash, or other securities
or property) or, in the case of a Stock Appreciation Right upon the exercise of which the Administrator determines to pay cash
or a Performance Share or Performance Unit which the Administrator can determine to pay in cash, the fair market value of the consideration
received in the merger or Change in Control by holders of Common Stock for each Share held on the effective date of the transaction
(and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding
Shares); provided, however, that if such consideration received in the Change in Control is not solely common stock of the
Successor Corporation, the Administrator may, with the consent of the Successor Corporation, provide for the consideration to be
received upon the exercise of an Option or Stock Appreciation Right or upon the payout of a Performance Share or Performance Unit,
for each Share subject to such Award (or in the case of Performance Units, the number of implied shares determined by dividing
the value of the Performance Units by the per share consideration received by holders of Common Stock in the Change in Control),
to be solely common stock of the Successor Corporation equal in fair market value to the per share consideration received by holders
of Common Stock in the Change in Control.

 

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	 	La Rosa Holdings Corp. 2022 Equity Incentive Plan	 

     

    

 

Notwithstanding anything in this Section
15(c) to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more Performance Goals will not
be considered assumed if the Company or its successor modifies any of such Performance Goals without the Participant’s consent;
provided, however, a modification to such Performance Goals only to reflect the Successor Corporation’s post-Change in Control
corporate structure will not be deemed to invalidate an otherwise valid Award assumption. In the case of an Award providing for
the payment of deferred compensation subject to Section 409A of the Code, any payment of such deferred compensation by reason of
a Change in Control shall be made only if the Change in Control is one described in subsection (a)(2)(A)(v) of Section 409A and
the guidance thereunder and shall be paid consistent with the requirements of Section 409A. If any deferred compensation that would
otherwise be payable by reason of a Change in Control cannot be paid by reason of the immediately preceding sentence, it shall
be paid as soon as practicable thereafter consistent with the requirements of Section 409A, as determined by the Administrator.

 

16. Tax Withholding.

 

(a) Withholding Requirements. Prior to
the delivery of any Shares or cash pursuant to an Award (or exercise thereof), the Company will have the power and the right to
deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, local, foreign
or other taxes (including the Participant’s FICA obligation) required to be withheld with respect to such Award (or exercise
thereof).

 

(b) Withholding Arrangements. The Administrator,
in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit a Participant to satisfy
such tax withholding obligation, in whole or in part by (without limitation) (i) paying cash, (ii) electing to have the Company
withhold otherwise deliverable cash or Shares having a Fair Market Value equal to the minimum amount required to be withheld, (iii)
delivering to the Company already- owned Shares having a Fair Market Value equal to the amount required to be withheld, or (iv)
selling a sufficient number of Shares otherwise deliverable to the Participant through such means as the Administrator may determine
in its sole discretion (whether through a broker or otherwise) equal to the amount required to be withheld. The amount of the withholding
requirement will be deemed to include any amount which the Administrator agrees may be withheld at the time the election is made,
not to exceed the amount determined by using the maximum federal, state or local marginal income tax rates applicable to the Participant
with respect to the Award on the date that the amount of tax to be withheld is to be determined. The Fair Market Value of the Shares
to be withheld or delivered will be determined as of the date that the taxes are required to be withheld.

 

17. No Effect on Employment or Service.
Neither the Plan nor any Award will confer upon a Participant any right with respect to continuing the Participant’s relationship
as a Service Provider with the Company, nor will they interfere in any way with the Participant’s right or the Company’s
right to terminate such relationship at any time, with or without cause, to the extent permitted by Applicable Laws.

 

18. Date of Grant. The date of grant of
an Award will be, for all purposes, the date on which the Administrator makes the determination granting such Award, or such other
later date as is determined by the Administrator. Notice of the determination will be provided to each Participant within a reasonable
time after the date of such grant.

 

19. Term of Plan. Subject to Section 23
hereof, the Plan will become effective upon its adoption by the Board. It will continue in effect for a term of ten (10) years
unless terminated earlier under Section 20 hereof.

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	 	La Rosa Holdings Corp. 2022 Equity Incentive Plan	 

     

    

 

20. Amendment and Termination of the Plan.

 

(a) Amendment and Termination. The Administrator
may at any time amend, alter, suspend or terminate the Plan. Any Plan amendment that increases the total number of Shares reserved
for issuance pursuant to incentive awards or reduces the minimum exercise price for options or exchange of options for other incentive
awards, shall be authorized by the stockholders of the Company within one (1) year.

 

(b) Stockholder Approval. The Company will
obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws.

 

(c) Effect of Amendment or Termination.
No amendment, alteration, suspension, or termination of the Plan will impair the rights of any Participant, unless mutually agreed
otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the
Company. Termination of the Plan will not affect the Administrator’s ability to exercise the powers granted to it hereunder
with respect to Awards granted under the Plan prior to the date of such termination.

 

21. Conditions Upon Issuance of Shares.

 

(a) Legal Compliance. Shares will not be
issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares will
comply with Applicable Laws and will be further subject to the approval of counsel for the Company with respect to such compliance.

 

(b) Investment Representations. As a condition
to the exercise of an Award, the Company may require the person exercising such Award to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation is required.

 

(c) Restrictive Legends. All Award Agreements
and all securities of the Company issued pursuant thereto shall bear such legends regarding restrictions on transfer and such other
legends as the appropriate officer of the Corporation shall determine to be necessary or advisable to comply with applicable securities
and other laws.

 

22. Inability to Obtain Authority. The
inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s
counsel to be necessary to the lawful issuance and sale of any Shares hereunder, will relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority will not have been obtained.

 

23. Stockholder Approval. The Plan will
be subject to approval by the stockholders of the Company within twelve (12) months after the date the Plan is adopted by the Board.
Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws. In the event that stockholder
approval is not obtained within twelve (12) months after the date the Plan is adopted by the Board, the Plan and all Awards granted
hereunder shall be void ab initio and of no effect. Notwithstanding any other provisions of the Plan, no Awards shall be exercisable
until the date of such stockholder approval.

 

23. Notification of Election Under Section
83(b) of the Code. If any Service Provider shall, in connection with the acquisition of Shares under the Plan, make the election
permitted under Section 83(b) of the Code, such Service Provider shall notify the Company of such election within ten (10) days
of filing notice of the election with the Internal Revenue Service and provide the Company with a copy thereof, in addition to
any filing and a notification required pursuant to regulations issued under the authority of Section 83(b) of the Code. A Service
Provider shall not be permitted to make a Section 83(b) election with respect to an Award of a Restricted Stock Unit.

 

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24. Notification Upon Disqualifying Disposition
Under Section 421(b) of the Code. Each Service Provider shall notify the Company of 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), within ten (10) days of such disposition.

 

25. Choice of Law. The Plan and all rules
and determinations made and taken pursuant hereto will be governed by the laws of the State of Nevada, to the extent not preempted
by federal law, and construed accordingly.

 

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	 	La Rosa Holdings Corp. 2022 Equity Incentive Plan

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