Document:

EXHIBIT 10.1

 

SEQUENTIAL BRANDS GROUP, INC.,

2013 STOCK INCENTIVE COMPENSATION PLAN

 

1.
Establishment; Effective Date; Purposes; and Duration.

 

(a)Establishment
of the Plan; Effective Date. Sequential Brands Group, Inc., a Delaware corporation (the “Company”), hereby
establishes this incentive compensation plan to be known as the “Sequential Brands Group, Inc., 2013 Stock Incentive
Compensation Plan,” as set forth in this document (the “Plan”). The Plan permits the grant of Nonqualified
Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Other Stock-Based Awards, Dividend Equivalents
and Cash-Based Awards. The Plan shall become effective upon the date on which the Plan is approved by the Company’s Board
of Directors (“Effective Date”). The Plan shall remain in effect as provided in Section 1(c).

 

(b)Purposes
of the Plan. The purposes of the Plan are: (i) to enhance the Company’s and the Affiliates’ ability to attract
highly qualified personnel; (ii) to strengthen their retention capabilities; (iii) to enhance the long-term performance and competitiveness
of the Company and the Affiliates; and (iv) to align the interests of Plan participants with those of the Company’s shareholders.
To accomplish such purposes, the Plan provides that the Company may grant Nonqualified Stock Options, Stock Appreciation Rights,
Restricted Stock, Restricted Stock Units, Other Stock-Based Awards, Dividend Equivalents and Cash-Based Awards.

 

(c)Duration
of the Plan. The Plan shall commence on the Effective Date and shall remain in effect, subject to the right of the Board of
Directors to amend or terminate the Plan at any time pursuant to Section 15, until all Shares subject to it shall have been delivered,
and any restrictions on such Shares have lapsed, pursuant to the Plan’s provisions. However, in no event may an Award be
granted under the Plan on or after ten years from the Effective Date.

 

2.
Definitions.

 

Certain terms used
herein have the definitions given to them in the first instance in which they are used. In addition, for purposes of the Plan,
the following terms are defined as set forth below:

 

(a)“Affiliate”
means (i) any Subsidiary; (ii) any Person that directly or indirectly controls, is controlled by or is under common control
with the Company; and/or (iii) to the extent provided by the Committee, any Person in which the Company has a significant
interest. The term “control” (including, with correlative meaning, the terms “controlled by” and “under
common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of such Person, whether through the ownership of voting or other securities,
by contract or otherwise.

 

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(b)
“Applicable Exchange” means the Over the Counter Market or such other securities exchange or inter-dealer quotation
system as may at the applicable time be the principal market for the Common Stock.

 

(c)“Award”
means, individually or collectively, a grant under the Plan of Nonqualified Stock Options, Stock Appreciation Rights, Restricted
Stock Awards, Restricted Stock Units, Other Stock-Based Awards, Dividend Equivalents and Cash-Based Awards.

 

(d)“Award
Agreement” means either: (a) a written agreement entered into by the Company and a Participant setting forth the terms
and provisions applicable to an Award granted under the Plan, or (b) a written or electronic statement issued by the Company to
a Participant describing the terms and provisions of such Award, including any amendment or modification thereof. The Committee
may provide for the use of electronic, internet or other non-paper Award Agreements, and the use of electronic, internet or other
non-paper means for the acceptance thereof and actions thereunder by a Participant.

 

(e)“Board”
or “Board of Directors” means the Board of Directors of the Company.

 

(f)“Cash-Based
Award” means an Award, whose value is determined by the Committee, granted to a Participant, as described in Section
11.

 

(g)“Cause”
means, unless otherwise provided in an Award Agreement, (i) “Cause” as defined in any Individual Agreement to which
the applicable Participant is a party, or (ii) if there is no such Individual Agreement or if it does not define Cause: (A) commission
of (1) a felony (or its equivalent in a non-United States jurisdiction) or (2) other conduct of a criminal nature that has or is
likely to have a material adverse effect on the reputation or standing in the community of the Company or an Affiliate or that
legally prohibits the Participant from working for the Company or any Affiliate; (B) breach by the Participant of a regulatory
rule that adversely affects the Participant’s ability to perform the Participant’s duties to the Company and the Subsidiaries
and Affiliates; (C) dishonesty in the course of fulfilling the Participant’s employment duties; (D); any material breach
by the Participant of any provision of any agreement or understanding between the Company or an Affiliate and the Participant regarding
the terms of the Participant’s service as an Employee, Director or Consultant to the Company or an Affiliate, including the
willful and continued failure or refusal of the Participant to perform the material duties required of such Participant as an Employee,
Director or Consultant of the Company or an Affiliate, other than as a result of having a Disability, or a breach of any applicable
invention assignment, confidentiality or other restrictive covenant agreement or similar agreement between the Company or an Affiliate
and the Participant (E) any other misconduct by the Participant that is materially injurious to the financial condition or business
reputation of, or is otherwise materially injurious to, the Company or an Affiliate; or (F) before a Change in Control, such other
events as shall be determined by the Committee and set forth in a Participant’s Award Agreement.

 

(h)“Change
in Control” shall be as defined in an Award Agreement. In the event that an Award Agreement does not define “Change
in Control” it shall mean the occurrence of any of the following:

 

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(i)Any
individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”)
becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either (A)
the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (B) the
combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors
(the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this Section
2(h), the following acquisitions shall not constitute a Change in Control: (i) any acquisition by the Company, (ii) any acquisition
by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate or (iii) any acquisition
by any corporation pursuant to a transaction that complies with Sections 2(h)(iii)(A), 2(h)(iii)(B) and 2(h)(iii)(C);

 

(ii)Any
time at which individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a
director subsequent to the Effective Date whose election, or nomination for election by the Company’s stockholders, was approved
by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs
as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;

 

(iii)Consummation
of a reorganization, merger, statutory share exchange or consolidation or similar transaction involving the Company or any Affiliate,
a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or stock of
another entity by the Company or any Affiliate (each, a “Business Combination”), in each case unless, following
such Business Combination, (A) all or substantially all of the individuals and entities that were the beneficial owners of the
Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 50% of the then-outstanding shares of common stock (or, for a non-corporate entity, equivalent
securities) and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election
of directors (or, for a non-corporate entity, equivalent governing body), as the case may be, of the entity resulting from such
Business Combination (including, without limitation, an entity that, as a result of such transaction, owns the Company or all or
substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same
proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and the Outstanding
Company Voting Securities, as the case may be and (B) at least a majority of the members of the board of directors (or, for a non-corporate
entity, equivalent governing body) of the entity resulting from such Business Combination were members of the Incumbent Board at
the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or

 

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(iv)Approval
by the stockholders of the Company of a complete liquidation or dissolution of the Company.

 

(i)“Change
in Control Price” means the price per share offered in respect of the Common Stock in conjunction with any transaction
resulting in a Change in Control on a fully-diluted basis (as determined by the Board or the Committee as constituted before the
Change in Control, if any part of the offered price is payable other than in cash) or, in the case of a Change in Control occurring
solely by reason of a change in the composition of the Board, the average Fair Market Value of a Share on the 30 trading days immediately
preceding the date on which a Change in Control occurs, provided that if the use of such average Fair Market Value
in respect of a particular Award would cause an additional tax to be due and payable by the Participant under Section 409A of the
Code, the Board or Committee shall determine the Change in Control Price in respect of such Award in a manner that does not have
such result.

 

(j)“Code”
means the Internal Revenue Code of 1986, as it may be amended from time to time, including rules and regulations promulgated thereunder
and successor provisions and rules and regulations thereto.

 

(k)“Committee”
means the Compensation Committee of the Board of Directors or a subcommittee thereof, or such other committee designated by the
Board to administer the Plan.

 

(l)“Common
Stock” means common stock, par value $0.001 per share, of the Company. In the event of any adjustment pursuant to Section
4(c), the stock or security resulting from such adjustment shall be deemed to be Common Stock within the meaning of the Plan.

 

(m)“Consultant”
means a consultant, advisor or other independent contractor who is a natural person and performs services for the Company or an
Affiliate in a capacity other than as an Employee or Director.

 

(n)
“Director” means any individual who is a member of the Board of Directors of the Company.

 

(o)“Disability”
means (i) “Disability” as defined in the applicable Award Agreement, or any Individual Agreement, to which the Participant
is a party, or (ii) if clause (i) does not apply, (A) permanent and total disability as determined under the Company’s, or
an Affiliate’s, long-term disability plan applicable to the Participant, or (B) if there is no such plan applicable to the
Participant, “disability” as determined by the Committee (in each case, to the extent applicable to any Award, as determined
consistent with Section 21(e)(3) or 409A(a)(2)(C) of the Code).

 

(p)“Disaffiliation”
means an Affiliate’s ceasing to be an Affiliate for any reason (including as a result of a public offering, or a spin-off
or sale by the Company, of the stock of the Affiliate) or a sale of a division of the Company or an Affiliate.

 

(q)“Dividend
Equivalent” means with respect to an Award in which no dividends are paid with respect to the Shares subject
to the Award, a right to receive the equivalent value (in cash or Shares) of dividends that would otherwise be paid on the Shares
subject to the Award if such Shares were beneficially owned by the Participant, as provided under Section 10.

 

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(r)“Effective
Date” shall have the meaning ascribed to such term in Section 1(a).

 

(s)“Eligible
Individual” means any Employee, Non-Employee Director or Consultant, and any prospective Employee and Consultant who
has accepted an offer of employment or consultancy from the Company or any Affiliate.

 

(t)“Employee”
means any person designated as an employee of the Company and/or an Affiliate on the payroll records thereof. An Employee shall
not include any individual during any period he or she is classified or treated by the Company or an Affiliate as an independent
contractor, a consultant, or any employee of an employment, consulting, or temporary agency or any other entity other than the
Company and/or an Affiliate without regard to whether such individual is subsequently determined to have been, or is subsequently
retroactively reclassified as a common-law employee of the Company and/or an Affiliate during such period. For the avoidance of
doubt, a Director who would otherwise be an “Employee” within the meaning of this Section 2(s) shall be considered
an Employee for purposes of the Plan.

 

(u)“Exchange
Act” means the Securities Exchange Act of 1934, as it may be amended from time to time, including the rules and regulations
promulgated thereunder and successor provisions and rules and regulations thereto.

 

(v)“Fair
Market Value” means, if the Common Stock is listed on a national securities exchange, as of any given date, the closing
price for the Common Stock on such date on the Applicable Exchange, or if Shares were not traded on the Applicable Exchange on
such measurement date, then on the next preceding date on which Shares are traded, all as reported by such source as the Committee
may select. If the Common Stock is not listed on a national securities exchange, Fair Market Value shall be determined by the Committee
in its good faith discretion.

 

(w)
“Fiscal Year” means the calendar year, or such other consecutive twelve-month period as the Committee may select.

 

(x)“Freestanding
SAR” means an SAR that is granted independently of any Options, as described in Section 7.

 

(y)“Good
Reason” means, unless otherwise provided in an Award Agreement, (i) “Good Reason” as defined in any Individual
Agreement to which the applicable Participant is a party, or (ii) if there is no such Individual Agreement or if it does not define
Good Reason: (A) a material reduction by the Company or an Affiliate in the Participant’s rate of annual base salary from
that in effect immediately prior to the Change in Control; (B) a material reduction by the Company or an Affiliate in the Participant’s
annual target bonus opportunity from that in effect immediately prior to the Change in Control; or (C) the Company or an Affiliate
requires the Participant to change the Participant’s principal location of work to a location that is in excess of fifty
(50) miles from the location thereof immediately prior to the Change in Control. Notwithstanding the foregoing, a Termination of
Service of a Participant for Good Reason shall not have occurred unless (i) the Participant gives written notice to the Company
or an Affiliate, as applicable, of Termination of Service within thirty (30) days after the Participant first becomes aware of
the occurrence of the circumstances constituting Good Reason, specifying in reasonable detail the circumstances constituting Good
Reason, and (ii) the Company or the Affiliate, as the case may be, has failed within thirty (30) days after receipt of such notice
to cure the circumstances constituting Good Reason.

 

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(z)“Grant
Date” means the later of: (i) the date on which the Committee (or its designee) by resolution, written consent or other
appropriate action selects an Eligible Individual to receive a grant of an Award, determines the number of Shares or other amount
to be subject to such Award and, if applicable, determines the Option Price or Grant Price of such Award, provided that as soon
reasonably practical thereafter the Committee (or its designee) both notifies the Eligible Individual of the Award and enters into
an Award Agreement with the Eligible Individual, or (ii) the date designated as the “grant date” in an Award Agreement.

 

(aa)
“Grant Price” means the price established as of the Grant Date of an SAR pursuant to Section 7 used to determine
whether there is any payment due upon exercise of the SAR.

 

(bb)“Individual
Agreement” means an employment, change of control, consulting or similar agreement between a Participant and the Company
or an Affiliate that is in effect as of the Grant Date of an Award hereunder.

 

(cc)“Insider”
means an individual who is, on the relevant date, an officer, director or ten percent (10%) beneficial owner (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of any class of the Company’s equity securities that is registered pursuant
to Section 12 of the Exchange Act, as determined by the Committee in accordance with Section 16 of the Exchange Act.

 

(dd)
“New Employer” means, after a Change in Control, a Participant’s employer, or any direct or indirect parent
or any direct or indirect majority-owned subsidiary of such employer.

 

(ee)“Non-Employee
Director” means a Director who is not an Employee.

 

(ff)
“Nonqualified Stock Option” or “NQSO” means a right to purchase Shares under the Plan in
accordance with the terms and conditions set forth in Section 6 and which is not intended to meet the requirements of Section 422
of the Code or otherwise does not meet such requirements.

 

(gg)“Notice”
means notice provided by a Participant to the Company in a manner prescribed by the Committee.

 

(hh)“Option”
or “Stock Option” means a Nonqualified Stock Option, as described in Section 6.

 

(ii)“Option
Price” means the price at which a Share may be purchased by a Participant pursuant to an Option.

 

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(jj)“Other
Stock-Based Award” means an equity-based or equity-related Award, other than an Option, SAR, Restricted Stock, Restricted
Stock Unit or Dividend Equivalent, granted in accordance with the terms and conditions set forth in Section 9.

 

(kk)“Participant”
means any eligible individual as set forth in Section 5 who holds one or more outstanding Awards.

 

(ll)
“Period of Restriction” means the period of time during which Shares of Restricted Stock or Restricted Stock
Units are subject to a substantial risk of forfeiture and/or other restrictions, or, as applicable, the period of time within which
performance is measured for purposes of determining whether such an Award has been earned, and, in the case of Restricted Stock,
the transfer of Shares of Restricted Stock is limited in some way, in each case in accordance with Section 8.

 

(mm)“Prior
Plan” the Company’s 2005 Stock and Incentive Plan.

 

(nn)“Restricted
Stock” means an Award of Shares granted to a Participant, subject to the applicable Period of Restriction, pursuant to
Section 8.

 

(oo)“Restricted
Stock Unit” means an unfunded and unsecured promise to deliver Shares or cash, subject to the applicable Period of Restriction,
granted pursuant to Section 8.

 

(pp)“Retirement”
means, unless otherwise determined by the Committee, an Employee’s retirement from active employment with the Company or
an Affiliate at or after age 65 or after attainment of both age 55 and ten years of continuous service as an Employee.

 

(qq)“Rule
16b-3” means Rule 16b-3 under the Exchange Act, or any successor rule, as the same may be amended from time to time.

 

(rr)“SEC”
means the Securities and Exchange Commission.

 

(ss)“Securities
Act” means the Securities Act of 1933, as it may be amended from time to time, including the rules and regulations promulgated
thereunder and successor provisions and rules and regulations thereto.

 

(tt)“Share”
means a share of Common Stock (including any new, additional or different stock or securities resulting from any change in corporate
capitalization as listed in Section 4(c)).

 

(uu)“Stock
Appreciation Right” or “SAR” means an Award, granted alone (a “Freestanding SAR”)
or in connection with a related Option (a “Tandem SAR”), designated as an SAR, pursuant to the terms of Section
7.

 

(vv)“Subsidiary”
means any present or future corporation which is or would be a “subsidiary corporation” of the Company as the term
is defined in Section 424(f) of the Code.

 

(ww)“Substitute
Awards” means Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange
for, options or other awards previously granted, or the right or obligation to grant future options or other awards, by a company
acquired by the Company and/or an Affiliate or with which the Company and/or an Affiliate combines, or otherwise in connection
with any merger, consolidation, acquisition of property or stock, or reorganization involving the Company or an Affiliate, including
a transaction described in Code Section 424(a) or Awards granted or Shares issued by the Company in substitution or exchange of
an award previously granted by the Company.

 

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(xx)“Termination
of Service” means the termination of the applicable Participant’s employment with, or performance of services for,
the Company or any Affiliate under any circumstances. Unless otherwise determined by the Committee, a Termination of Service shall
not be considered to have occurred in the case of: (i) sick leave; (ii) military leave; (iii) any other leave of absence approved
by the Committee, provided that such leave is for a period of not more than 90 days, unless reemployment upon the expiration
of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to an applicable Company or Affiliate
policy adopted from time to time; (iv) changes in status from Director to advisory director or emeritus status; or (v) transfers
between locations of the Company or between or among the Company and/or an Affiliate or Affiliates. Changes in status between service
as an Employee, Director, and a Consultant will not constitute a Termination of Service if the individual continues to perform
bona fide services for the Company or an Affiliate. A Participant employed by, or performing services for, an Affiliate
or a division of the Company or of an Affiliate shall be deemed to incur a Termination of Service if, as a result of a Disaffiliation,
such Affiliate or division ceases to be an Affiliate or such a division, as the case may be, and the Participant does not immediately
thereafter become an employee of, or service provider for, the Company or another Affiliate. The Committee shall have the discretion
to determine whether and to what extent the vesting of any Awards shall be tolled during any paid or unpaid leave of absence; provided,
however, that, in the absence of such determination, vesting for all Awards shall be tolled during any such unpaid leave
(but not for a paid leave).

 

3.
Administration.

 

(a)General.
The Committee shall have exclusive authority to operate, manage and administer the Plan in accordance with its terms and conditions.
Notwithstanding the foregoing, in its absolute discretion, the Board may at any time and from time to time exercise any and all
rights, duties and responsibilities of the Committee under the Plan, including establishing procedures to be followed by the Committee,
but excluding matters which under any applicable law, regulation or rule, including any exemptive rule under Section 16 of the
Exchange Act (including Rule 16b-3), are required to be determined in the sole discretion of the Committee. If and to the extent
that the Committee does not exist or cannot function, the Board may take any action under the Plan that would otherwise be the
responsibility of the Committee, subject to the limitations set forth in the immediately preceding sentence.

 

(b)Committee.
The members of the Committee shall be appointed from time to time by, and shall serve at the discretion of, the Board of Directors.
Unless otherwise determined by the Board, the Committee shall consist of not less than two (2) non-employee members of the Board,
each of whom satisfies such criteria of independence as the Board may establish and such additional regulatory or listing requirements
as the Board may determine to be applicable or appropriate. Appointment of Committee members shall be effective upon their acceptance
of such appointment. Committee members may be removed by the Board at any time either with or without cause, and such members may
resign at any time by delivering notice thereof to the Board. Any vacancy on the Committee, whether due to action of the Board
or any other reason, shall be filled by the Board. The Committee shall keep minutes of its meetings. A majority of the Committee
shall constitute a quorum and a majority of a quorum may authorize any action. Any decision reduced to writing and signed by a
majority of the members of the Committee shall be fully effective as if it has been made at a meeting duly held.

 

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(c)Authority
of the Committee. The Committee shall have full discretionary authority to grant, pursuant to the terms of the Plan, Awards
to those individuals who are eligible to receive Awards under the Plan. Except as limited by law or by the Certificate of Incorporation
or By-Laws of the Company, and subject to the provisions herein, the Committee shall have full power, in accordance with the other
terms and provisions of the Plan, to:

 

(i)select
Eligible Individuals who may receive Awards under the Plan and become Participants;

 

(ii)determine
eligibility for participation in the Plan and decide all questions concerning eligibility for, and the amount of, Awards under
the Plan;

 

(iii)determine
the sizes and types of Awards;

 

(iv)determine
the terms and conditions of Awards, including the Option Prices of Options and the Grant Prices of SARs;

 

(v)grant
Awards as an alternative to, or as the form of payment for grants or rights earned or payable under, other bonus or compensation
plans, arrangements or policies of the Company or an Affiliate;

 

(vi)grant
Substitute Awards on such terms and conditions as the Committee may prescribe, subject to compliance with the nonqualified deferred
compensation rules under Code Section 409A, where applicable;

 

(vii)make
all determinations under the Plan concerning Termination of Service of any Participant’s employment or service with the Company
or an Affiliate, including whether such Termination of Service occurs by reason of Cause, Good Reason, Disability, Retirement or
in connection with a Change in Control, and whether a leave constitutes a Termination of Service;

 

(viii)determine
whether a Change in Control shall have occurred;

 

(ix)construe
and interpret the Plan and any agreement or instrument entered into under the Plan, including any Award Agreement;

 

(x)establish
and administer any terms, conditions, restrictions, limitations, forfeiture, vesting or exercise schedule, and other provisions
of or relating to any Award;

 

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(xi)establish
and administer any performance goals in connection with any Awards, including related performance goals and performance measures
or other performance criteria and applicable performance periods, determine the extent to which any performance goals and/or other
terms and conditions of an Award are attained or are not attained, and certify whether, and to what extent, any such performance
goals and other material terms applicable to any Award were in fact satisfied;

 

(xii)construe
any ambiguous provisions, correct any defects, supply any omissions and reconcile any inconsistencies in the Plan and/or any Award
Agreement or any other instrument relating to any Awards;

 

(xiii)establish,
adopt, amend, waive and/or rescind rules, regulations, procedures, guidelines, forms and/or instruments for the Plan’s operation
or administration;

 

(xiv)make
all valuation determinations relating to Awards and the payment or settlement thereof;

 

(xv)grant
waivers of terms, conditions, restrictions and limitations under the Plan or applicable to any Award, or accelerate the vesting
or exercisability of any Award;

 

(xvi)amend
or adjust the terms and conditions of any outstanding Award and/or adjust the number and/or class of shares of stock subject to
any outstanding Award;

 

(xvii)at
any time and from time to time after the granting of an Award, specify such additional terms, conditions and restrictions with
respect to such Award as may be deemed necessary or appropriate to ensure compliance with any and all applicable laws or rules,
including terms, restrictions and conditions for compliance with applicable securities laws or listing rules, methods of withholding
or providing for the payment of required taxes and restrictions regarding a Participant’s ability to exercise Options through
a cashless (broker-assisted) exercise;

 

(xviii)
establish any “blackout” period that the Committee in its sole discretion deems necessary or advisable; and

 

(xix)exercise
all such other authorities, take all such other actions and make all such other determinations as it deems necessary or advisable
for the proper operation and/or administration of the Plan.

 

(d)Award
Agreements. The Committee shall, subject to applicable laws and rules, determine the date an Award is granted. Each Award shall
be evidenced by an Award Agreement; however, two or more Awards granted to a single Participant may be combined in a single
Award Agreement. An Award Agreement shall not be a precondition to the granting of an Award; provided, however, that
(i) the Committee may, but need not, require as a condition to any Award Agreement’s effectiveness, that such Award Agreement
be executed on behalf of the Company and/or by the Participant to whom the Award evidenced thereby shall have been granted (including
by electronic signature or other electronic indication of acceptance), and such executed Award Agreement be delivered to the Company,
and (ii) no person shall have any rights under any Award unless and until the Participant to whom such Award shall have been granted
has complied with the applicable terms and conditions of the Award. The Committee shall prescribe the form of all Award Agreements,
and, subject to the terms and conditions of the Plan, shall determine the content of all Award Agreements. Subject to the other
provisions of the Plan, any Award Agreement may be supplemented or amended in writing from time to time as approved by the Committee;
provided that the terms and conditions of any such Award Agreement as supplemented or amended are not inconsistent with
the provisions of the Plan. In the event of any dispute or discrepancy concerning the terms of an Award, the records of the Committee
or its designee shall be determinative.

 

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(e)Discretionary
Authority; Decisions Binding. The Committee shall have full discretionary authority in all matters related to the discharge
of its responsibilities and the exercise of its authority under the Plan. All determinations, decisions, actions and interpretations
by the Committee with respect to the Plan and any Award Agreement, and all related orders and resolutions of the Committee shall
be final, conclusive and binding on all Participants, the Company and its stockholders, any Affiliate and all persons having or
claiming to have any right or interest in or under the Plan and/or any Award Agreement. The Committee shall consider such factors
as it deems relevant to making or taking such decisions, determinations, actions and interpretations, including the recommendations
or advice of any Director or officer or employee of the Company, any director, officer or employee of an Affiliate and such attorneys,
consultants and accountants as the Committee may select. A Participant or other holder of an Award may contest a decision or action
by the Committee with respect to such person or Award only on the grounds that such decision or action was arbitrary or capricious
or was unlawful, and any review of such decision or action shall be limited to determining whether the Committee’s decision
or action was arbitrary or capricious or was unlawful.

 

(f)Attorneys;
Consultants. The Committee may consult with counsel who may be counsel to the Company. The Committee may, with the approval
of the Board, employ such other attorneys and/or consultants, accountants, appraisers, brokers, agents and other persons, any of
whom may be an Eligible Individual, as the Committee deems necessary or appropriate. The Committee, the Company and its officers
and Directors shall be entitled to rely upon the advice, opinions or valuations of any such persons. The Committee shall not incur
any liability for any action taken in good faith in reliance upon the advice of such counsel or other persons.

 

(g)Delegation
of Administration. Except to the extent prohibited by applicable law, including any applicable exemptive rule under Section
16 of the Exchange Act (including Rule 16b-3), or the applicable rules of a stock exchange, the Committee may, in its discretion,
allocate all or any portion of its responsibilities and powers under this Section 3 to any one or more of its members and/or delegate
all or any part of its responsibilities and powers under this Section 3 to any person or persons selected by it; provided,
however, that the Committee may not (i) delegate to any executive officer of the Company or an Affiliate, or a committee
that includes any such executive officer, the Committee’s authority to grant Awards, or the Committee’s authority otherwise
concerning Awards, awarded to executive officers of the Company or an Affiliate; (ii) delegate the Committee’s authority
to grant Awards to consultants unless any such Award is subject to approval by the Committee; or (iii) delegate its authority to
correct defects, omissions or inconsistencies in the Plan. Any such authority delegated or allocated by the Committee under this
Section 3(g) shall be exercised in accordance with the terms and conditions of the Plan and any rules, regulations or administrative
guidelines that may from time to time be established by the Committee, and any such allocation or delegation may be revoked by
the Committee at any time.

 

    	- 11 -

    	 

    

 

4.
Shares Subject To The Plan.

 

(a)Number
of Shares Available for Issuance. The shares of stock subject to Awards granted under the Plan shall be Shares. Such Shares
subject to the Plan may be authorized and unissued shares (which will not be subject to preemptive rights), Shares held in treasury
by the Company, Shares purchased on the open market or by private purchase or any combination of the foregoing. Subject to adjustment
as provided in Section 4(c), the total number of Shares that may be issued pursuant to Awards under the Plan shall be 2,500,000
Shares. From and after the Effective Date, no further grants or awards shall be made under the Prior Plan; however, grants
or awards made under the Prior Plan before the Effective Date shall continue in effect in accordance with their terms.

 

(b)Rules
for Calculating Shares Issued.

 

(i)For
purposes of this Section 4, the number of Shares available for issuance under the Plan shall be reduced by one (1) Share for each
Share issued pursuant to the exercise to an Option, SAR, Restricted Stock Award, Restricted Stock Unit Award, Other Stock-Based
Award or Dividend Equivalent Award.

 

(ii)Shares
underlying Awards that are (x) forfeited (including any Shares subject to an Award (or any such other award) that are repurchased
by the Company due to failure to meet any applicable condition), cancelled, terminated or expire unexercised, or (y) settled in
cash in lieu of issuance of Shares shall be available for issuance pursuant to future Awards, to the extent that such Shares are
forfeited, repurchased or not issued under any such Award.

 

(iii)Any
Shares tendered to pay the Option Price of an Option or other purchase price of an Award, or withholding tax obligations with respect
to an Award, shall be available for issuance pursuant to future Awards.

 

(iv)If
any Shares subject to an Award are not delivered to a Participant because (A) such Shares are withheld to pay the Option Price
or other purchase price of such Award, or withholding tax obligations with respect to such Award (or other award) or (B) a payment
upon exercise of a Stock Appreciation Right is made in Shares, the number of Shares subject to the exercised or purchased portion
of any such Award that are not delivered to the Participant shall be available for issuance pursuant to future Awards.

 

(c)Adjustment
Provisions. Notwithstanding any other provisions of the Plan to the contrary, in the event of (i) any dividend (excluding
any ordinary 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, split-off, combination, repurchase or exchange
of Shares or other securities of the Company, issuance of warrants or other rights to acquire Shares or other securities of the
Company, or other similar corporate transaction or event (including a Change in Control) that affects the shares of Common Stock,
or (ii) any unusual or nonrecurring events (including a Change in Control) affecting the Company, any Affiliate, or the financial
statements of the Company or any Affiliate, or changes in applicable rules, rulings, regulations or other requirements of any governmental
body or securities exchange or inter-dealer quotation system, accounting principles or law, such that in either case an adjustment
is determined by the Committee in its sole discretion to be necessary or appropriate, then the Committee shall make any such adjustments
in such manner as it may deem equitable, including any or all of the following:

 

    	- 12 -

    	 

    

(i)adjusting
any or all of (A) the number of Shares or other securities of the Company (or number and kind of other securities or other
property) that may be delivered in respect of Awards or with respect to which Awards may be granted under the Plan and (B) the
terms of any outstanding Award, including (1) the number of Shares or other securities of the Company (or number and kind
of other securities or other property) subject to outstanding Awards or to which outstanding Awards relate, (2) the Option
Price or Grant Price with respect to any Award or (3) any applicable performance measures;

 

(ii)providing
for a substitution or assumption of Awards, accelerating the exercisability of, lapse of restrictions (including any Period of
Restriction) on, or termination of, Awards or providing for a period of time for exercise prior to the occurrence of such event;
and

 

(iii)cancelling
any one or more outstanding Awards and causing to be paid to the holders thereof, in cash, Shares, other securities or other property,
or any combination thereof, the value of such Awards, if any, as determined by the Committee (which, if applicable, may be based
upon the price per Share received or to be received by other stockholders of the Company in such event), including, in the case
of an outstanding Option or SAR, a cash payment in an amount equal to the excess, if any, of the Fair Market Value (as of a date
specified by the Committee) of the Shares subject to such Option or SAR over the aggregate Option Price or Grant Price of such
Option or SAR, respectively (it being understood that, in such event, any Option or SAR having a per share Option Price or Grant
Price equal to, or in excess of, the Fair Market Value of a Share may be canceled and terminated without any payment or consideration
therefor);

 

provided, however, that in
the case of any “equity restructuring” (within the meaning of Financial Accounting Standards Board Accounting Standards
Codification Topic 718, Compensation — Stock Compensation (or any successor pronouncement)), the Committee shall make an
equitable or proportionate adjustment to outstanding Awards to reflect such equity restructuring. The
Committee shall determine any adjustment pursuant to this Section 4(c): (i) after taking into account, among other
things, to the extent applicable, the provisions of the Code and (ii) subject to Section 16(f)(vi). Any adjustments under
this Section 4(c) shall be made in a manner that does not adversely affect the exemption provided pursuant to Rule 16b-3 under
the Exchange Act, to the extent applicable. Any actions or determinations of the Committee under this Section 4(c) need not be
uniform as to all outstanding Awards, nor treat all Participants identically. All determinations of the Committee as to adjustments,
if any, under this Section 4(c) shall be conclusive and binding for all purposes.

 

    	- 13 -

    	 

    

(d)No
Limitation on Corporate Actions. The existence of the Plan and any Awards granted hereunder shall not affect in any way the
right or power of the Company or any Affiliate to make or authorize any adjustment, recapitalization, reorganization or other change
in its capital structure or business structure, any merger or consolidation, any issuance of debt, preferred or prior preference
stock ahead of or affecting the Shares, additional shares of capital stock or other securities or subscription rights thereto,
any dissolution or liquidation, any sale or transfer of all or part of its assets or business or any other corporate act or proceeding.

 

5.
Eligibility and Participation.

 

(a)Eligibility.
Eligible Individuals shall be eligible to become Participants and receive Awards in accordance with the terms and conditions of
the Plan.

 

(b)Actual
Participation. Subject to the provisions of the Plan, the Committee may, from time to time, select Participants from all Eligible
Individuals and shall determine the nature and amount of each Award.

 

6.
Stock Options.

 

(a)Grant
of Options. Subject to the terms and provisions of the Plan, Options in the form of Nonqualified Stock Options may be granted
to Participants in such number (subject to Section 4), and upon such terms, and at any time and from time to time as shall
be determined by the Committee. The Committee may grant an Option or provide for the grant of an Option, either from time to time
in the discretion of the Committee or automatically upon the occurrence of specified events, including the achievement of performance
goals, the satisfaction of an event or condition within the control of the recipient of the Option or within the control of others.

 

(b)Award
Agreement. Each Option grant shall be evidenced by an Award Agreement that shall specify the Option Price, the maximum duration
of the Option, the number of Shares to which the Option pertains, the conditions upon which the Option shall become exercisable
and such other provisions as the Committee shall determine, which are not inconsistent with the terms of the Plan.

 

(c)Option
Price. The Option Price for each Option shall be determined by the Committee and set forth in the Award Agreement; provided
that the Option Price of an Option shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on
the Grant Date of such Option; provided further, that Substitute Awards or Awards granted in connection with an adjustment
provided for in Section 4(c), in the form of stock options, shall have an Option Price per Share that is intended to maintain the
economic value of the Award that was replaced or adjusted, as determined by the Committee.

 

(d)Duration
of Options. Each Option granted to a Participant shall expire at such time as the Committee shall determine as of the Grant
Date and set forth in the Award Agreement.

 

    	- 14 -

    	 

    

(e)Exercise
of Options. Options shall be exercisable at such times and be subject to such restrictions and conditions as the Committee
shall in each instance determine and set forth in the Award Agreement, which need not be the same for each grant or for each Option
or Participant. The Committee, in its discretion, may allow a Participant to exercise an Option that has not otherwise become exercisable
pursuant to the applicable Award Agreement, in which case the Shares then issued shall be Shares of Restricted Stock having a Period
of Restriction analogous to the exercisability provisions of the Option. In the event that any portion of an exercisable Option
is scheduled to expire or terminate pursuant to the Plan or the applicable Award Agreement (other than due to Termination of Service
for Cause) and both (x) the date on which such portion of the Option is scheduled to expire or terminate falls during a Company
blackout trading period applicable to the Participant (whether such period is imposed at the election of the Company or is required
by applicable law to be imposed) and (y) the Option Price per Share of such portion of the Option is less than the Fair Market
Value of a Share, then on the date that such portion of the Option is scheduled to expire or terminate, such portion of the Option
(to the extent not previously exercised by the Participant) shall be automatically exercised on behalf of the Participant through
a “net exercise” (as described in Section 6(f)(iii)) and minimum withholding taxes due (if any) upon such automatic
exercise shall be satisfied by withholding of Shares (as described in Section 16(b)(i)). The period of time over which a Nonqualified
Stock Option may be exercised shall be automatically extended if on the scheduled expiration date or termination date (other than
due to Termination of Service for Cause) of such Option the Participant’s exercise of such Option would violate an applicable
law (except under circumstances described in the preceding sentence); provided, however, that during such extended
exercise period the Option may only be exercised to the extent the Option was exercisable in accordance with its terms immediately
prior to such scheduled expiration date or termination date; provided further, however, that such extended
exercise period shall end not later than thirty (30) days after the exercise of such Option first would no longer violate such
law.

 

(f)Payment.
Options shall be exercised by the delivery of a written notice of exercise to the Company, in a form specified or accepted by the
Committee, or by complying with any alternative exercise procedures that may be authorized by the Committee, setting forth the
number of Shares with respect to which the Option is to be exercised, accompanied by full payment for such Shares, which shall
include applicable taxes, if any, in accordance with Section 16. The Option Price upon exercise of any Option shall be payable
to the Company in full by cash, check or such cash equivalent as the Committee may accept. If approved by the Committee, and subject
to any such terms, conditions and limitations as the Committee may prescribe and to the extent permitted by applicable law, payment
of the Option Price, in full or in part, may also be made as follows:

 

(i)Payment
may be made in the form of unrestricted and unencumbered Shares (by actual delivery of such Shares or by attestation) already owned
by the Participant exercising such Option, or by such Participant and his or her spouse jointly (based on the Fair Market Value
of the Common Stock on the date the Option is exercised); provided, however, that such already owned Shares must
have been either previously acquired by the Participant on the open market or held by the Participant for at least six (6) months
at the time of exercise (or meet any such other requirements as the Committee may determine are necessary in order to avoid an
accounting earnings charge on account of the use of such Shares to pay the Option Price).

 

    	- 15 -

    	 

    

(ii)Payment
may be made by means of a broker-assisted “cashless exercise” pursuant to which a Participant may elect to deliver
a properly executed exercise notice to the Company, together with a copy of irrevocable instructions to a broker to deliver promptly
to the Company the amount of Share sale or loan proceeds necessary to pay the Option Price, and, if requested, the amount of any
federal, state, local or non-United States withholding taxes.

 

(iii)Payment
may be made by a “net exercise” pursuant to which the Participant instructs the Company to withhold a number of Shares
otherwise deliverable to the Participant upon such exercise of the Option having an aggregate Fair Market Value on the date of
exercise equal to the product of: (i) the Option Price multiplied by (ii) the number of Shares in respect of which the Option shall
have been exercised, increased by the amount of any applicable withholding taxes.

 

(iv)Payment
may be made by any other method approved or accepted by the Committee in its discretion.

 

Subject to any governing
rules or regulations, as soon as practicable after receipt of a written notification of exercise and full payment in accordance
with the preceding provisions of this Section 6(f) and satisfaction of tax obligations in accordance with Section 16, the Company
shall deliver to the Participant exercising an Option, in the Participant’s name, evidence of book entry Shares, or, upon
the Participant’s request, Share certificates, in an appropriate amount based upon the number of Shares purchased under the
Option, subject to Section 19. Unless otherwise determined by the Committee, all payments under all of the methods described above
shall be paid in United States dollars.

 

(g)Rights
as a Stockholder. No Participant or other person shall become the beneficial owner of any Shares subject to an Option, nor
have any rights to dividends or other rights of a stockholder with respect to any such Shares, until the Participant has actually
received such Shares following exercise of his or her Option in accordance with the provisions of the Plan and the applicable Award
Agreement.

 

(h)Termination
of Service. The Committee may establish and set forth in the applicable Award Agreement the terms and conditions on which an
Option shall remain exercisable, if at all, upon a Participant’s Termination of Service. The Committee may waive or modify
these provisions at any time. To the extent that a Participant is not entitled to exercise an Option at the date of his or her
Termination of Service, or if the Participant (or other person entitled to exercise the Option) does not exercise the Option to
the extent so entitled within the time period specified in the Award Agreement or below (as applicable), effective as of the date
of such Termination of Service or expiration of such time period (as applicable), the Option shall terminate and cease to be exercisable,
except as otherwise provided by Section 6(e). Notwithstanding the foregoing provisions of this Section 6(h) to the contrary, the
Committee may determine in its discretion that an Option may be exercised following any such Termination of Service, whether or
not exercisable at the time of such Termination of Service. Subject to the last sentence of this Section 6(h), a Participant’s
Option shall be forfeited upon his or her Termination of Service, except as set forth below:

 

    	- 16 -

    	 

    

(i)Death.
Upon a Participant’s Termination of Service by reason of death, any Option held by such Participant that was exercisable
immediately before such Termination of Service may be exercised at any time until the earlier of (A) the first (1st) anniversary
of the date of such death and (B) the expiration date of such Option specified in the applicable Award Agreement.

 

(ii)Disability.
Upon a Participant’s Termination of Service by reason of Disability, any Option held by such Participant that was exercisable
immediately before such Termination of Service may be exercised at any time until the earlier of (A) the third (3rd) anniversary
of such Termination of Service and (B) the expiration date of such Option specified in the applicable Award Agreement.

 

(iii)Retirement.
Upon a Participant’s Termination of Service by reason of Retirement, any Option held by such Participant that was exercisable
immediately before such Termination of Service may be exercised at any time until the earlier of (A) the fifth (5th) anniversary
of such Termination of Service and (B) the expiration date of such Option specified in the applicable Award Agreement.

 

(iv)Cause.
Upon a Participant’s Termination of Service for Cause, any Option held by such Participant shall be forfeited, effective
as of such Termination of Service.

 

(v)Without
Cause; Good Reason. Upon a Participant’s Termination of Service on account of a resignation for Good Reason or by the
Company other than for death, Disability, Retirement or for Cause, any Option held by such Participant that was exercisable immediately
before such Termination of Service may be exercised at any time until the earlier of (A) the ninetieth (90th) day following such
Termination of Service and (B) the expiration date of such Option specified in the applicable Award Agreement.

 

(vi)Death
after Termination of Service. Notwithstanding the above provisions of this Section 6(h), if a Participant dies after such Participant’s
Termination of Service, but while his or her Option remains exercisable as set forth above, such Option may be exercised at any
time until the later of (A) the earlier of (1) the first anniversary of the date of such death and (2) the expiration date of such
Option specified in the applicable Award Agreement, and (B) the last date on which such Option would have been exercisable, absent
this Section 6(h)(vi).

 

Notwithstanding the foregoing provisions
of this Section 6(h), the Committee shall have the power, in its discretion, to apply different rules concerning the consequences
of a Termination of Service; provided, however, that such rules shall be set forth in the applicable Award Agreement.

 

    	- 17 -

    	 

    

7.
Stock Appreciation Rights.

 

(a)Grant
of SARs. Subject to the terms and conditions of the Plan, SARs may be granted to Participants at any time and from time to
time as shall be determined by the Committee. The Committee may grant an SAR (i) in connection with, and at the Grant Date of,
a related Option (a “Tandem SAR”), or (ii) independent of, and unrelated to, an Option (a “Freestanding
SAR”). The Committee shall have complete discretion in determining the number of Shares to which a SAR pertains (subject
to Section 4) and, consistent with the provisions of the Plan, in determining the terms and conditions pertaining to any SAR.

 

(b)Grant
Price.  The Grant Price for each SAR shall be determined by the Committee and set forth in the Award Agreement, subject
to the limitations of this Section 7(b). The Grant Price for each Freestanding SAR shall be not less than one hundred percent (100%)
of the Fair Market Value of a Share on the Grant Date of such Freestanding SAR, except in the case of Substitute Awards or
Awards granted in connection with an adjustment provided for in Section 4(c). The Grant Price of a Tandem SAR shall be equal to
the Option Price of the related Option.

 

(c)Exercise
of Tandem SARs. Tandem SARs may be exercised for all or part of the Shares subject to the related Option upon the surrender
of the right to exercise the equivalent portion of the related Option. A Tandem SAR shall be exercisable only when and to the extent
the related Option is exercisable and may be exercised only with respect to the Shares for which the related Option is then exercisable.
A Tandem SAR shall entitle a Participant to elect, in the manner set forth in the Plan and the applicable Award Agreement, in lieu
of exercising his or her unexercised related Option for all or a portion of the Shares for which such Option is then exercisable
pursuant to its terms, to surrender such Option to the Company with respect to any or all of such Shares and to receive from the
Company in exchange therefor a payment described in Section 7(g). An Option with respect to which a Participant has elected to
exercise a Tandem SAR shall, to the extent of the Shares covered by such exercise, be canceled automatically and surrendered to
the Company. Such Option shall thereafter remain exercisable according to its terms only with respect to the number of Shares as
to which it would otherwise be exercisable, less the number of Shares with respect to which such Tandem SAR has been so exercised.

 

(d)Exercise
of Freestanding SARs. Freestanding SARs may be exercised upon whatever terms and conditions the Committee, in its sole discretion,
in accordance with the Plan, determines and sets forth in the Award Agreement. In the event that any portion of an exercisable
Freestanding SAR is scheduled to expire or terminate pursuant to the Plan or the applicable Award Agreement (other than due to
Termination of Service for Cause) and both (x) the date on which such portion of the SAR is scheduled to expire or terminate
falls during a Company blackout trading period applicable to the Participant (whether such period is imposed at the election of
the Company or is required by applicable law to be imposed) that would otherwise prohibit exercise of such portion of the SAR and
(y) the Grant Price per Share of such portion of the SAR is less than the Fair Market Value of a Share, then on the date that
such portion of the SAR is scheduled to expire or terminate, such portion of the SAR (to the extent not previously exercised by
the Participant) shall be automatically exercised on behalf of the Participant and minimum withholding taxes due (if any) upon
such automatic exercise shall be satisfied by withholding of Shares (as described in Section 16(b)(i)). The period of time over
which a Freestanding SAR may be exercised shall be automatically extended if on the scheduled expiration date or termination date
(other than due to Termination of Service for Cause) of such SAR the Participant’s exercise of such SAR would violate an
applicable law (except under circumstances described in the preceding sentence); provided, however, that during such
extended exercise period the SAR may only be exercised to the extent the SAR was exercisable in accordance with its terms immediately
prior to such scheduled expiration date or termination date; provided further, however, that such extended
exercise period shall end not later than thirty (30) days after the exercise of such SAR first would no longer violate such law.

 

    	- 18 -

    	 

    

(e)Award
Agreement. Each SAR grant shall be evidenced by an Award Agreement that shall specify the number of Shares to which the SAR
pertains, the Grant Price, the term of the SAR, and such other terms and conditions as the Committee shall determine in accordance
with the Plan.

 

(f)Term
of SARs. The term of a SAR granted under the Plan shall be determined by the Committee, in its sole discretion, and set forth
in the Award Agreement; provided, however, that the term of any Tandem SAR shall be the same as the related Option.

 

(g)Payment
of SAR Amount. An election to exercise SARs shall be deemed to have been made on the date of Notice of such election to the
Company. As soon as practicable following such Notice, the Participant shall be entitled to receive payment from the Company in
an amount determined by multiplying:

 

(i)The
excess of the Fair Market Value of a Share on the date of exercise over the Grant Price of the SAR; by

 

(ii)The
number of Shares with respect to which the SAR is exercised,

 

after deduction of any
tax withholding in accordance with Section 16.

 

Notwithstanding the foregoing
provisions of this Section 7(g) to the contrary, the Committee may establish and set forth in the applicable Award Agreement a
maximum amount per Share that will be payable upon the exercise of a SAR. At the discretion of the Committee, such payment upon
exercise of a SAR shall be in cash, in Shares of equivalent Fair Market Value as of the date of such exercise, or in some combination
thereof.

 

(h)Rights
as a Stockholder. A Participant receiving a SAR shall have the rights of a stockholder only as to Shares, if any, actually
issued to such Participant upon satisfaction or achievement of the terms and conditions of the Award, and in accordance with the
provisions of the Plan and the applicable Award Agreement, and not with respect to Shares to which such Award relates but which
are not actually issued to such Participant.

 

(i)Termination
of Service. Except as otherwise provided by Section 7(d) or in the applicable Award Agreement, a SAR may be exercised only
to the extent that it is then exercisable, and if at all times during the period beginning with the date of granting of such SAR
and ending on the date of exercise of such SAR the Participant is an Employee, Non-Employee Director or Consultant, and shall terminate
immediately upon a Termination of Service of the Participant. A SAR shall cease to become exercisable upon a Termination of Service
of the holder thereof. Notwithstanding the foregoing provisions of this Section 7(i) to the contrary, the Committee may determine
in its discretion that a SAR may be exercised following any such Termination of Service, whether or not exercisable at the time
of such Termination of Service; provided, however, that in no event may a SAR be exercised after the expiration date
of such SAR specified in the applicable Award Agreement, except as provided in Section 6(e) (in the case of Tandem SARs) or in
Section 7(d) (in the case of Freestanding SARs).

 

    	- 19 -

    	 

    

(j)Termination of Service.
The provisions of Section 6(h) shall apply to any SAR upon and after the Termination of Service of the Participant holding such
SAR, except that in the case of any Freestanding SAR, the reference to Section 6(e) therein shall be deemed a reference to Section
7(d).

 

8.
Restricted Stock and Restricted Stock Units.

 

(a)Awards
of Restricted Stock and Restricted Stock Units. Subject to the terms and provisions of the Plan, the Committee, at any time
and from time to time, may grant Shares of Restricted Stock and/or Restricted Stock Units to Participants in such amounts as the
Committee shall determine. Awards of Restricted Stock may be made with or without the requirement of a cash payment from the Participant
to whom such Award is made in exchange for, or as a condition precedent to, the completion of such Award and the issuance of Shares
of Restricted Stock, and any such required cash payment shall be set forth in the applicable Award Agreement. Subject to the terms
and conditions of this Section 8 and the Award Agreement, upon delivery of Shares of Restricted Stock to a Participant, or creation
of a book entry evidencing a Participant’s ownership of Shares of Restricted Stock, pursuant to Section 8(f), the Participant
shall have all of the rights of a stockholder with respect to such Shares, subject to the terms and restrictions set forth in this
Section 8 or the applicable Award Agreement or as determined by the Committee.

 

(b)Award
Agreement. Each Restricted Stock and/or Restricted Stock Unit Award shall be evidenced by an Award Agreement that shall specify
the Period of Restriction, the number of Shares of Restricted Stock or the number of Restricted Stock Units granted, and such other
provisions as the Committee shall determine in accordance with the Plan.

 

(c)Nontransferability
of Restricted Stock. Except as provided in this Section 8, Shares of Restricted Stock may not be sold, transferred, pledged,
assigned, encumbered, alienated, hypothecated or otherwise disposed of until the end of the applicable Period of Restriction established
by the Committee and specified in the Restricted Stock Award Agreement.

 

(d)Period
of Restriction and Other Restrictions. The Period of Restriction applicable to an Award of Restricted Stock or Restricted Stock
Units shall lapse based on a Participant’s continuing service or employment with the Company or an Affiliate, the achievement
of performance goals, the satisfaction of other conditions or restrictions or upon the occurrence of other events, in each case,
as determined by the Committee, at its discretion, and stated in the Award Agreement.

 

(e)Delivery
of Shares and Settlement of Restricted Stock Units. Upon the expiration of the Period of Restriction with respect to any Shares
of Restricted Stock, the restrictions set forth in the applicable Award Agreement shall be of no further force or effect with respect
to such Shares, except as set forth in such Award Agreement. If applicable stock certificates are held by the Secretary of the
Company or an escrow holder, upon such expiration, the Company shall deliver to the Participant, or his beneficiary, without charge,
the stock certificate evidencing the Shares of Restricted Stock that have not then been forfeited and with respect to which the
Period of Restriction has expired. Unless otherwise provided by the Committee in an Award Agreement, upon the expiration of the
Period of Restriction with respect to any outstanding Restricted Stock Units, the Company shall deliver to the Participant, or
his beneficiary, without charge, one Share for each such outstanding Restricted Stock Unit; provided, however, that
the Committee may, in its discretion, elect to (i) pay cash or part cash and part Shares in lieu of delivering only Shares
in respect of such Restricted Stock Units or (ii) defer the delivery of Shares beyond the expiration of the Period of Restriction.
If a cash payment is made in lieu of delivering Shares, the amount of such payment shall be equal to the Fair Market Value of such
Shares as of the date on which the Period of Restriction lapsed with respect to such Restricted Stock Units, less applicable tax
withholdings in accordance with Section 16.

 

    	- 20 -

    	 

    

(f)Forms
of Restricted Stock Awards. Each Participant who receives an Award of Shares of Restricted Stock shall be issued a stock certificate
or certificates evidencing the Shares covered by such Award registered in the name of such Participant, which certificate or certificates
shall bear an appropriate legend, and, if the Committee determines that the Shares of Restricted Stock shall be held by the Company
or in escrow rather than delivered to the Participant pending expiration of the Period of Restriction, the Committee may require
the Participant to additionally execute and deliver to the Company: (i) an escrow agreement satisfactory to the Committee, if applicable,
and (ii) an appropriate stock power (endorsed in blank) with respect to such Shares of Restricted Stock. The Committee may require
a Participant who receives a certificate or certificates evidencing a Restricted Stock Award to immediately deposit such certificate
or certificates, together with a stock power or other appropriate instrument of transfer, endorsed in blank by the Participant,
with signatures guaranteed in accordance with the Exchange Act if required by the Committee, with the Secretary of the Company
or an escrow holder as provided in the immediately following sentence. The Secretary of the Company or such escrow holder as the
Committee may appoint shall retain physical custody of each certificate representing a Restricted Stock Award until the Period
of Restriction and any other restrictions imposed by the Committee or under the Award Agreement with respect to the Shares evidenced
by such certificate expire or shall have been removed. The foregoing to the contrary notwithstanding, the Committee may, in its
discretion, provide that a Participant’s ownership of Shares of Restricted Stock prior to the lapse of the Period of Restriction
or any other applicable restrictions shall, in lieu of such certificates, be evidenced by a “book entry” (i.e.,
a computerized or manual entry) in the records of the Company or its designated agent in the name of the Participant who has received
such Award. Such records of the Company or such agent shall, absent manifest error, be binding on all Participants who receive
Restricted Stock Awards evidenced in such manner. The holding of Shares of Restricted Stock by the Company or such an escrow holder,
or the use of book entries to evidence the ownership of Shares of Restricted Stock, in accordance with this Section 8(f), shall
not affect the rights of Participants as owners of the Shares of Restricted Stock awarded to them, nor affect the restrictions
applicable to such shares under the Award Agreement or the Plan, including the Period of Restriction.

 

    	- 21 -

    	 

    

 

(g)Rights
as a Stockholder.

 

(i) Restricted
Stock. Unless otherwise determined by the Committee and set forth in a Participant’s Award Agreement, to the extent permitted
or required by law, as determined by the Committee, Participants holding Shares of Restricted Stock shall have the right to exercise
full voting rights with respect to those Shares during the Period of Restriction. During the Period of Restriction, Participants
holding Shares of Restricted Stock shall be credited with any cash dividends paid with respect to such Shares while they are so
held, unless determined otherwise by the Committee and set forth in the Award Agreement. The Committee may apply any restrictions
to such dividends that the Committee deems appropriate. Except as set forth in the Award Agreement, in the event of (A) any adjustment
as provided in Section 4(c), or (B) any shares or securities are received as a dividend, or an extraordinary dividend is paid in
cash, on Shares of Restricted Stock, any new or additional Shares or securities or any extraordinary dividends paid in cash received
by a recipient of Restricted Stock shall be subject to the same terms and conditions, including the Period of Restriction, as relate
to the original Shares of Restricted Stock. Accordingly, unless determined otherwise by the Committee and set forth in the Award
Agreement, any cash dividends credited to a Participant with respect to any Shares during the Period of Restriction shall be forfeited
if the underlying Shares are forfeited.

 

(ii) Restricted
Stock Units. A Participant receiving Restricted Stock Units shall have the rights of a stockholder only as to Shares, if any,
actually issued to such Participant upon expiration of the Period of Restriction and satisfaction or achievement of the terms and
conditions of the Award, and in accordance with the provisions of the Plan and the applicable Award Agreement, and not with respect
to Shares to which such Award relates but which are not actually issued to such Participant.

 

(h)Termination
of Employment or Service. Except as otherwise provided in this Section 8(h), during the Period of Restriction, any Restricted
Stock Units and/or Shares of Restricted Stock held by a Participant shall be forfeited and revert to the Company (or, if Shares
of Restricted Sock were sold to the Participant, the Participant shall be required to resell such Shares to the Company at cost)
upon the Participant’s Termination of Service or the failure to meet or satisfy any applicable performance goals or other
terms, conditions and restrictions to the extent set forth in the applicable Award Agreement. Each applicable Award Agreement shall
set forth the extent to which, if any, the Participant shall have the right to retain Restricted Stock Units and/or Shares of Restricted
Stock, then subject to the Period of Restriction, following such Participant’s Termination of Service. Such provisions shall
be determined in the sole discretion of the Committee, shall be included in the applicable Award Agreement, need not be uniform
among all such Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for, or circumstances of,
such Termination of Service.

 

9.
Other Stock-Based Awards.

 

(a)Other
Stock-Based Awards. The Committee may grant types of equity-based or equity-related Awards not otherwise described by the terms
of the Plan (including the grant or offer for sale of unrestricted Shares), in such amounts and subject to such terms and conditions,
as the Committee shall determine. Such Other Stock-Based Awards may involve the transfer of actual Shares to Participants, or payment
in cash or otherwise of amounts based on the value of Shares. The terms and conditions of such Awards shall be consistent with
the Plan and set forth in the Award Agreement and need not be uniform among all such Awards or all Participants receiving such
Awards.

 

    	- 22 -

    	 

    

(b)Value
of Other Stock-Based Awards. Each Other Stock-Based Award shall be expressed in terms of Shares or units based on Shares, as
determined by the Committee. The Committee may establish performance goals in its discretion, and any such performance goals shall
be set forth in the applicable Award Agreement. If the Committee exercises its discretion to establish performance goals, the number
and/or value of Other Stock-Based Awards that will be paid out to the Participant will depend on the extent to which such performance
goals are met.

 

(c)Payment
of Other Stock-Based Awards. Payment, if any, with respect to an Other Stock-Based Award shall be made in accordance with the
terms of the Award, as set forth in the Award Agreement, in cash, Shares or a combination of cash and Shares, as the Committee
determines.

 

(d)Rights
as a Stockholder. A Participant receiving an Other Stock-Based Award shall have the rights of a stockholder only as to Shares,
if any, actually issued to such Participant upon satisfaction or achievement of the terms and conditions of the Award, and in accordance
with the provisions of the Plan and the applicable Award Agreement, and not with respect to Shares to which such Award relates
but which are not actually issued to such Participant.

 

(e)Termination
of Service. The Committee shall determine the extent to which the Participant shall have the right to receive Other Stock-Based
Awards following the Participant’s Termination of Service. Such provisions shall be determined in the sole discretion of
the Committee, such provisions may be included in the applicable Award Agreement, but need not be uniform among all Other Stock-Based
Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for Termination of Service.

 

10.
Dividend Equivalents. Unless otherwise provided by the Committee,
no adjustment shall be made in the Shares issuable or taken into account under Awards on account of cash dividends that may be
paid or other rights that may be issued to the holders of Shares prior to issuance of such Shares under such Award. The Committee
may grant Dividend Equivalents based on the dividends declared on Shares that are subject to any Award, including any Award the
payment or settlement of which is deferred pursuant to Section 20(d). Any Award of Dividend Equivalents may be credited as of
the dividend payment dates, during the period between the Grant Date of the Award and the date the Award becomes payable or terminates
or expires, as determined by the Committee. Dividend Equivalents may be subject to any limitations and/or restrictions determined
by the Committee. Dividend Equivalents shall be converted to cash or additional Shares by such formula and at such time,
and shall be paid at such times, as may be determined by the Committee.

 

11.
Cash-Based Awards.

 

(a)Grant
of Cash-Based Awards. Subject to the terms of the Plan, Cash-Based Awards may be granted to Participants in such amounts
and upon such terms, and at any time and from time to time, as shall be determined by the Committee, in accordance with the Plan.
A Cash-Based Award entitles the Participant who receives such Award to receive a payment in cash upon the attainment of applicable
performance goals for the applicable performance period, and/or satisfaction of other terms and conditions, in each case determined
by the Committee, and which shall be set forth in the Award Agreement. The terms and conditions of such Awards shall be consistent
with the Plan and set forth in the Award Agreement and need not be uniform among all such Awards or all Participants receiving
such Awards.

 

    	- 23 -

    	 

    

(b)Earning
and Payment of Cash-Based Awards. Cash-Based Awards shall become earned, in whole or in part, based upon the attainment of
performance goals specified by the Committee and/or the occurrence of any event or events and/or satisfaction of such terms and
conditions, including a Change in Control, as the Committee shall determine, either at or after the Grant Date. The Committee shall
determine the extent to which any applicable performance goals and/or other terms and conditions of a Cash-Based Award are attained
or not attained following conclusion of the applicable performance period. The Committee may, in its discretion, waive any such
performance goals and/or other terms and conditions relating to any such Award. Payment of earned Cash-Based Awards shall be as
determined by the Committee and set forth in the Award Agreement.

 

(c)Termination
of Employment or Service. Each Award Agreement shall set forth the extent to which the Participant shall have the right to
retain Cash-Based Award following such Participant’s Termination of Service. Such provisions shall be determined in the sole
discretion of the Committee, shall be included in the applicable Award Agreement, need not be uniform among all such Awards issued
pursuant to the Plan, and may reflect distinctions based on the reasons for Termination of Service.

 

12.
Transferability Of Awards; Beneficiary Designation.

 

(a)Except
as otherwise provided in Section 8(e) or Section 12(b) or a Participant’s Award Agreement or otherwise determined at any
time by the Committee, no Award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution; provided that the Committee may permit further
transferability, on a general or a specific basis, and may impose conditions and limitations on any permitted transferability,
subject to any applicable Period of Restriction; provided further, however, that
no Award may be transferred for value or other consideration without first obtaining approval thereof by the stockholders of the
Company.  Further, except as otherwise provided in a Participant’s Award Agreement or otherwise determined at any
time by the Committee, or unless the Committee decides to permit further transferability, subject
to any applicable Period of Restriction, all Awards granted to a Participant under the Plan, and all rights with respect
to such Awards, shall be exercisable or available during his or her lifetime only by or to such Participant. With respect to those
Awards, if any, that are permitted to be transferred to another individual, references in the Plan to exercise or payment related
to such Awards by or to the Participant shall be deemed to include, as determined by the Committee, the Participant’s permitted
transferee. In the event any Award is exercised by or otherwise paid to the executors, administrators, heirs or distributees of
the estate of a deceased Participant, or such a Participant’s beneficiary, or the transferee of an Award, in any such case,
pursuant to the terms and conditions of the Plan and the applicable Agreement and in accordance with such terms and conditions
as may be specified from time to time by the Committee, the Company shall be under no obligation to issue Shares thereunder unless
and until the Company is satisfied, as determined in the discretion of the Committee, that the person or persons exercising such
Award, or to receive such payment, are the duly appointed legal representative of the deceased Participant’s estate or the
proper legatees or distributees thereof or the named beneficiary of such Participant, or the valid transferee of such Award, as
applicable. Any purported assignment, transfer or encumbrance of an Award that does not comply with this Section 12(a)
shall be void and unenforceable against the Company.

 

    	- 24 -

    	 

    

 

(b)Beneficiary
Designation. Each Participant may, from time to time, name any beneficiary or beneficiaries who shall be permitted to exercise
his or her Option or SAR or to whom any benefit under the Plan is to be paid in case of the Participant’s death before he
or she fully exercises his or her Option or SAR or receives any or all of such benefit. Each such designation shall revoke
all prior designations by the same Participant, shall be in a form prescribed by the Company, and will be effective only when filed
by the Participant in writing with the Company during the Participant’s lifetime. In the absence of any such beneficiary
designation, a Participant’s unexercised Option or SAR, or amounts due but remaining unpaid to such Participant, at the Participant’s
death, shall be exercised or paid as designated by the Participant by will or by the laws of descent and distribution.

 

13.
Rights of Participants.

 

(a)Rights
or Claims. No person shall have any rights or claims under the Plan except in accordance with the provisions of the Plan and
any applicable Award Agreement. The liability of the Company and any Affiliate under the Plan is limited to the obligations expressly
set forth in the Plan, and no term or provision of the Plan may be construed to impose any further or additional duties, obligations,
or costs on the Company or any Affiliate thereof or the Board or the Committee not expressly set forth in the Plan. The grant of
an Award under the Plan shall not confer any rights upon the Participant holding such Award other than such terms, and subject
to such conditions, as are specified in the Plan as being applicable to such type of Award, or to all Awards, or as are expressly
set forth in the Award Agreement evidencing such Award. Without limiting the generality of the foregoing, neither the existence
of the Plan nor anything contained in the Plan or in any Award Agreement shall be deemed to:

 

(i)Give
any Eligible Individual the right to be retained in the employment or service of the Company and/or an Affiliate, whether in any
particular position, at any particular rate of compensation, for any particular period of time or otherwise;

 

(ii)Restrict
in any way the right of the Company and/or an Affiliate to terminate, change or modify any Eligible Individual’s employment
or service at any time with or without Cause;

 

(iii)Confer
on any Eligible Individual any right of continued relationship with the Company and/or an Affiliate, or alter any relationship
between them, including any right of the Company or an Affiliate to terminate, change or modify its relationship with an Eligible
Individual;

    	- 25 -

    	 

    

 

(iv)Constitute
a contract of employment or service between the Company or any Affiliate and any Eligible Individual, nor shall it constitute a
right to remain in the employ or service of the Company or any Affiliate;

 

(v)Give
any Eligible Individual the right to receive any bonus, whether payable in cash or in Shares, or in any combination thereof, from
the Company and/or an Affiliate, nor be construed as limiting in any way the right of the Company and/or an Affiliate to determine,
in its sole discretion, whether or not it shall pay any Eligible Individual bonuses, and, if so paid, the amount thereof and the
manner of such payment; or

 

(vi)Give
any Participant any rights whatsoever with respect to an Award except as specifically provided in the Plan and the Award Agreement.

 

(b)Adoption
of the Plan. The adoption of the Plan shall not be deemed to give any Eligible Individual or any other individual any
right to be selected as a Participant or to be granted an Award, or, having been so selected, to be selected to receive a future
Award.

 

(c)Vesting.
Notwithstanding any other provision of the Plan, a Participant’s right or entitlement to exercise or otherwise vest in any
Award not exercisable or vested at the Grant Date thereof shall only result from continued services as a Non-Employee Director
or Consultant or continued employment, as the case may be, with the Company or any Affiliate, or satisfaction of any other performance
goals or other conditions or restrictions applicable, by its terms, to such Award, except, in each such case, as the Committee
may, in its discretion, expressly determine otherwise.

 

(d)No
Effects on Benefits; No Damages. Payments and other compensation received by a Participant under an Award are not part of such
Participant’s normal or expected compensation or salary for any purpose, including calculating termination, indemnity, severance,
resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments
under any laws, plans, contracts, policies, programs, arrangements or otherwise. A Participant shall, by participating in the Plan,
waive any and all rights to compensation or damages in consequence of Termination of Service of such Participant for any reason
whatsoever, whether lawfully or otherwise, insofar as those rights arise or may arise from such Participant ceasing to have rights
under the Plan as a result of such Termination of Service, or from the loss or diminution in value of such rights or entitlements,
including by reason of the operation of the terms of the Plan or the provisions of any statute or law relating to taxation. No
claim or entitlement to compensation or damages arises from the termination of the Plan or diminution in value of any Award or
Shares purchased or otherwise received under the Plan.

 

(e)One
or More Types of Awards. A particular type of Award may be granted to a Participant either alone or in addition to other Awards
under the Plan.

 

14.
Change In Control.

 

(a)Except to
the extent otherwise provided in an Award Agreement, in the event of a Change in Control, notwithstanding any provision of the
Plan to the contrary, the Committee may, in its discretion, provide that, with respect to all or any portion of a particular outstanding
Award or Awards:

 

    	- 26 -

    	 

    

 

(i)any
outstanding Option, SAR or other Award (as applicable) that is not then exercisable shall immediately become exercisable as to
all or any portion of the Shares covered thereby as of a time prior to the Change in Control;

 

(ii)all
or any portion of the restrictions applicable to any outstanding Award (including the Period of Restriction applicable to any outstanding
Shares of Restricted Stock or Restricted Stock Units) shall immediately lapse as of a time prior to the Change in Control (including
a waiver of any applicable performance goals);

 

(iii)Performance
periods in effect on the date the Change in Control occurs shall end on such date, and (A) determine the extent to which performance
goals or other performance goals with respect to each such performance period have been met based upon such audited or unaudited
financial information or other information then available as it deems relevant and (B) cause the Participant to receive partial
or full payment of Awards for each such performance period based upon the Committee’s determination of the degree of attainment
of the performance goals or other performance goals, or by assuming that the applicable “target” levels of performance
have been attained or on such other basis determined by the Committee;

 

(iv)Awards
previously deferred shall be settled in full as soon as practicable;

 

(v) any
outstanding Awards shall be adjusted, substituted, converted, settled and/or terminated as the Committee, in its discretion, deems
appropriate and consistent with the Plan’s purposes; and

 

(vi)with
respect to any Options having a per Share exercise price equal to, or in excess of, the Fair Market Value of a Share, such Options
shall be canceled and terminated without any payment or consideration therefor.

 

To the extent practicable, any actions
taken by the Committee under the immediately preceding clauses (i) through (v) shall occur in a manner and at a time
which allows affected Participants the ability to participate in the Change in Control transactions with respect to the Common
Stock subject to their Awards.

 

(b)No
Implied Rights; Other Limitations. No Participant shall have any right to prevent the consummation of any of the acts described
in Section 4(c) or this Section 14 affecting the number of Shares available to, or other entitlement of, such Participant under
the Plan or such Participant’s Award. Any actions or determinations of the Committee under this Section 14 need not be uniform
as to all outstanding Awards, nor treat all Participants identically. Notwithstanding the foregoing provisions of this Section
14, the Committee shall determine the adjustments provided in this Section 14 subject to Section 16(f)(vi).

 

    	- 27 -

    	 

    

15.
Amendment and Termination.

 

(a)Amendment
and Termination of the Plan. The Board may, at any time and with or without prior notice, amend, alter, suspend or terminate
the Plan, retroactively or otherwise, but no such amendment, alteration, suspension or termination of the Plan shall be made which
would materially impair the previously accrued rights of any Participant with respect to a previously granted Award without such
Participant’s consent, except any such amendment made to comply with applicable law, tax rules, stock exchange rules or accounting
rules. In addition, no such amendment shall be made without the approval of the Company’s stockholders to the extent such
approval is required by any applicable law, tax rules, stock exchange rules or accounting rules (including as necessary to comply
with any rules or requirements of any securities exchange or inter-dealer quotation system on which the Shares may be listed or
quoted).

 

(b)Amendment
of Awards. Subject to the immediately following sentence, the Committee may unilaterally amend or alter the terms of any Award
theretofore granted, including any Award Agreement, retroactively or otherwise, but no such amendment shall cause an Award
to be inconsistent with the terms and conditions of the Plan or materially impair the previously accrued rights of the
Participant to whom such Award was granted with respect to such Award without his or her consent, except such an amendment made
to cause the Plan or such Award to comply with applicable law, tax rules, stock exchange rules or accounting rules. Except in connection
with a corporate transaction involving the Company or as provided in Section 4(c) or as approved by the Company’s stockholders,
during any period that the Company is subject to the reporting requirements of the Exchange Act, the terms of an outstanding Option
or SAR may not be amended to reduce the Option Price or Grant Price thereof, an outstanding Option or SAR may not be cancelled
in exchange for cash, the granting of an Option or SAR to the Participant at a lower Option Price or Grant Price, or the granting
to the Participant another Award of a different type, and no Option or SAR shall otherwise be subject to any action that is considered
a “repricing” for purposes of the stockholder approval rules of the Applicable Exchange.

 

16.
Tax Withholding and Other Tax Matters.

 

(a)Tax
Withholding. The Company and/or any Affiliate are authorized to withhold from any Award granted or payment due under the Plan
the amount of all Federal, state, local and non-United States taxes due in respect of such Award or payment and take any such other
action as may be necessary or appropriate, as determined by the Committee, to satisfy all obligations for the payment of such taxes.
No later than the date as of which an amount first becomes includible in the gross income or wages of a Participant for federal,
state, local, or non-U.S. tax purposes with respect to any Award, such Participant shall pay to the Company, or make arrangements
satisfactory to the Committee regarding the payment of, any federal, state, local or non-U.S. taxes or social security (or similar)
contributions of any kind required by law to be withheld with respect to such amount. The obligations of the Company under the
Plan shall be conditional on such payment or satisfactory arrangements (as determined by the Committee in its discretion), and
the Company and the Subsidiaries and Affiliates shall, to the extent permitted by law, have the right to deduct any such taxes
from any payment otherwise due to such Participant, whether or not under the Plan.

 

    	- 28 -

    	 

    

(b)Withholding
or Tendering Shares. Without limiting the generality of Section 16(a), subject to any applicable laws, a Participant may (unless
disallowed by the Committee) elect to satisfy or arrange to satisfy, in whole or in part, the tax obligations incident to an Award
by: (i) electing to have the Company withhold Shares or other property otherwise deliverable to such Participant pursuant to his
or her Award (provided, however, that the amount of any Shares so withheld shall not exceed the amount necessary
to satisfy required Federal, state, local and non-United States withholding obligations using the minimum statutory withholding
rates for Federal, state, local and/or non-U.S. tax purposes, including payroll taxes, that are applicable to supplemental taxable
income) and/or (ii) tendering to the Company Shares already owned by such Participant (or by such Participant and his or her spouse
jointly) and either previously acquired by the Participant on the open market or held by the Participant for at least six (6) months
at the time of exercise or payment (or which meet any such other requirements as the Committee may determine are necessary in order
to avoid an accounting earnings charge on account of the use of such Shares to satisfy such tax obligations), based, in each case,
on the Fair Market Value of the Common Stock on the payment date as determined by the Committee. All such elections shall be irrevocable,
made in writing, signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its
sole discretion, deems appropriate. The Committee may establish such procedures as it deems appropriate, including making irrevocable
elections, for settlement of withholding obligations with Common Stock.

 

(c)Restrictions.
The satisfaction of tax obligations pursuant to this Section 16 shall be subject to such restrictions as the Committee may impose,
including any restrictions required by applicable law or the rules and regulations of the SEC, and shall be construed consistent
with an intent to comply with any such applicable laws, rule and regulations.

 

(d)Section
83(b) Election. If a Participant makes an election under Section 83(b) of the Code to be taxed with respect to an Award as
of the date of transfer of Shares rather than as of the date or dates upon which the Participant would otherwise be taxable under
Section 83(a) of the Code, such Participant shall deliver a copy of such election to the Company upon or prior to the filing such
election with the Internal Revenue Service. Neither the Company nor any Affiliate shall have any liability or responsibility relating
to or arising out of the filing or not filing of any such election or any defects in its construction.

 

(e)No
Guarantee of Favorable Tax Treatment. Although the Company intends to administer the Plan so that Awards will be exempt from,
or will comply with, the requirements of Code Section 409A, the Company does not warrant that any Award under the Plan will qualify
for favorable tax treatment under Code Section 409A or any other provision of federal, state, local, or non-United States law.
The Company shall not be liable to any Participant for any tax, interest, or penalties the Participant might owe as a result of
the grant, holding, vesting, exercise, or payment of any Award under the Plan.

 

(f)Nonqualified
Deferred Compensation.

 

(i)It
is the intention of the Company that no Award shall be deferred compensation subject to Code Section 409A unless and to the extent
that the Committee specifically determines otherwise as provided in paragraph (ii) of this Section 16(f), and the Plan and the
terms and conditions of all Awards shall be interpreted and administered accordingly.

    	- 29 -

    	 

    

 

(ii)The
terms and conditions governing any Awards that the Committee determines will be subject to Section 409A of the Code, including
any rules for payment or elective or mandatory deferral of the payment or delivery of Shares or cash pursuant thereto, and any
rules regarding treatment of such Awards in the event of a Change in Control, shall be set forth in the applicable Award Agreement
and shall be intended to comply in all respects with Section 409A of the Code, and the Plan and the terms and conditions of such
Awards shall be interpreted and administered accordingly.

 

(iii)The
Committee shall not extend the period to exercise an Option or Stock Appreciation Right to the extent that such extension would
cause the Option or Stock Appreciation Right to become subject to Code Section 409A.

 

(iv)No
Dividend Equivalents shall relate to Shares underlying an Option or SAR unless such Dividend Equivalent rights are explicitly set
forth as a separate arrangement and do not cause any such Option or SAR to be subject to Code Section 409A.

 

(v)The
Company shall have complete discretion to interpret and construe the Plan and any Award Agreement in any manner that establishes
an exemption from (or compliance with) the requirements of Code Section 409A.  If for any reason, such as imprecision in drafting,
any provision of the Plan and/or any Award Agreement does not accurately reflect its intended establishment of an exemption from
(or compliance with) Code Section 409A, as demonstrated by consistent interpretations or other evidence of intent, such provision
shall be considered ambiguous as to its exemption from (or compliance with) Code Section 409A and shall be interpreted by the Company
in a manner consistent with such intent, as determined in the discretion of the Company. If, notwithstanding the foregoing
provisions of this Section 16(f)(v), any provision of the Plan or any Award Agreement would cause a Participant to incur any additional
tax or interest under Code Section 409A, the Company shall reform such provision in a manner intended to avoid the incurrence by
such Participant of any such additional tax or interest; provided that the Company shall maintain, to the extent reasonably
practicable, the original intent and economic benefit to the Participant of the applicable provision without violating the provisions
of Code Section 409A.

 

(vi)Notwithstanding
the provisions of Section 4(c) to the contrary, (1) any adjustments made pursuant to Section 4(c) to Awards that are considered
“deferred compensation” subject to Section 409A of the Code shall be made in compliance with the requirements of Section
409A of the Code; (2) any adjustments made pursuant to Section 4(c) to Awards that are not considered “deferred compensation”
subject to Section 409A of the Code shall be made in such a manner as to ensure that after such adjustment, the Awards either (A)
continue not to be subject to Section 409A of the Code or (B) comply with the requirements of Section 409A of the Code; and (3)
in any event, neither the Committee nor the Board shall have any authority to make any adjustments, substitutions or changes pursuant
to Section 4(c) to the extent the existence of such authority would cause an Award that is not intended to be subject to Section
409A of the Code at the Grant Date thereof to be subject to Section 409A of the Code.

 

    	- 30 -

    	 

    

(vii)If
any Award is subject to Section 409A of the Code, the provisions of Section 14 shall be applicable to such Award only to the extent
specifically provided in the Award Agreement and permitted pursuant to paragraph (ii) of this Section 16(f).

 

(viii)Notwithstanding
any other provision in the Plan, any Award Agreement or any other written document establishing the terms and conditions of an
Award, if any Participant is a “specified employee,” within the meaning of Section 409A of the Code, as of the date
of his or her “separation from service” (as defined under Section 409A of the Code), then, to the extent required by
Treasury Regulation Section 1.409A-3(i)(2) (or any successor provision), any payment made to such Participant on account of his
or her separation from service shall not be made before a date that is six months after the date of his or her separation from
service. The Committee may elect any of the methods of applying this rule that are permitted under Treasury Regulation Section
1.409A-3(i)(2)(ii) (or any successor provision).

 

17.
Limits Of Liability; Indemnification.

 

(a)Limits
of Liability. Any liability of the Company or an Affiliate to any Participant with respect to any Award shall be based solely
upon contractual obligations created by the Plan and the Award Agreement.

 

(i)None
of the Company, any Affiliate, any member of the Board or the Committee or any other person participating in any determination
of any question under the Plan, or in the interpretation, administration or application of the Plan, shall have any liability,
in the absence of bad faith, to any party for any action taken or not taken in connection with the Plan, except as may expressly
be provided by statute.

 

(ii)Each
member of the Committee, while serving as such, shall be considered to be acting in his or her capacity as a director of the Company.
Members of the Board of Directors and members of the Committee acting under the Plan shall be fully protected in relying in good
faith upon the advice of counsel and shall incur no liability except for gross negligence or willful misconduct in the performance
of their duties.

 

(iii)The
Company shall not be liable to a Participant or any other person as to: (i) the non-issuance of Shares as to which the Company
has been unable to obtain from any regulatory body having relevant jurisdiction the authority deemed by the Committee or the Company’s
counsel to be necessary to the lawful issuance and sale of any Shares hereunder, (ii) any tax consequence expected, but not realized,
by any Participant or other person due to the receipt, exercise or settlement of any Option or other Award, or (iii) any tax, interest,
or penalties any Participant or other person might owe as a result of the grant, holding, vesting, exercise, or payment of any
Award under the Plan.

 

(b)Indemnification.
Subject to the requirements of Delaware law, each individual who is or shall have been a member of the Committee or of the
Board, or an officer of the Company to whom authority was delegated in accordance with Section 3, shall be indemnified and held
harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred
by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or
in which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and
all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction
of any judgment in any such action, suit, or proceeding against him or her, provided he or she shall give the Company an
opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his
or her own behalf, unless such loss, cost, liability, or expense is a result of the individual’s own willful misconduct or
except as provided by statute. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification
to which such individual may be entitled under the Company’s Certificate of Incorporation or By-Laws, as a matter of
law, or otherwise, or any power that the Company may have to indemnify or hold harmless such individual.

 

    	- 31 -

    	 

    

18.
Successors. All obligations of the Company under the Plan with respect to Awards granted hereunder shall be
binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

 

19.Forfeiture
/ Clawback. The Committee may, in its discretion, specify in an Award Agreement or a policy that will be deemed incorporated
into an Award Agreement by reference (regardless of whether such policy is established before or after the date of such Award Agreement),
that a Participant’s rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation,
forfeiture, rescission or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting,
restrictions or performance conditions of an Award. Such events may include, but shall not be limited to, Termination of Service
with or without cause, breach of noncompetition, confidentiality, or other restrictive covenants that may apply to the Participant,
or restatement of the Company’s financial statements to reflect adverse results from those previously released financial
statements, as a consequence of errors, omissions, fraud, or misconduct.

 

20.Miscellaneous.

 

(a)Drafting
Context; Captions. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine;
the plural shall include the singular and the singular shall include the plural. The words “Section,” and “paragraph”
herein shall refer to provisions of the Plan, unless expressly indicated otherwise. The words “include,” “includes,”
and “including” herein shall be deemed to be followed by “without limitation” whether or not they are in
fact followed by such words or words of similar import, unless the context otherwise requires. The headings and captions appearing
herein are inserted only as a matter of convenience. They do not define, limit, construe, or describe the scope or intent of the
provisions of the Plan.

 

(b)Severability.
In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had
not been included.

 

    	- 32 -

    	 

    

(c)Exercise
and Payment of Awards. An Award shall be deemed exercised or claimed when the Secretary of the Company or any other Company
official or other person designated by the Committee for such purpose receives appropriate Notice from a Participant, in form acceptable
to the Committee, together with payment of the applicable Option Price, Grant Price or other purchase price, if any, and compliance
with Section 16, in accordance with the Plan and such Participant’s Award Agreement.

 

(d)Deferrals.
Subject to applicable law, the Committee may from time to time establish procedures pursuant to which a Participant may defer on
an elective or mandatory basis receipt of all or a portion of the cash or Shares subject to an Award on such terms and conditions
as the Committee shall determine, including those of any deferred compensation plan of the Company or any Affiliate specified by
the Committee for such purpose.

 

(e)No
Effect on Other Plans. Neither the adoption of the Plan nor anything contained herein shall affect any other compensation or
incentive plans or arrangements of the Company or any Affiliate, or prevent or limit the right of the Company or any Affiliate
to establish any other forms of incentives or compensation for their directors, officers, eligible employees or consultants or
grant or assume options or other rights otherwise than under the Plan.

 

(f)Section
16 of Exchange Act. The provisions and operation of the Plan are intended to ensure that no transaction under the Plan is subject
to (and not exempt from) the short-swing profit recovery rules of Section 16(b) of the Exchange Act. Unless otherwise stated in
the Award Agreement, notwithstanding any other provision of the Plan, any Award granted to an Insider shall be subject to any additional
limitations set forth in any applicable exemptive rule under Section 16(b) of the Exchange Act (including Rule 16b-3) that are
requirements for the application of such exemptive rule, and the Plan and the Award Agreement shall be deemed amended to the extent
necessary to conform to such limitations.

 

(g)Requirements
of Law; Limitations on Awards.

 

(i)The
granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules, and regulations, and
to such approvals by any governmental agencies or national securities exchanges as may be required.

 

(ii)If
at any time the Committee shall determine, in its discretion, that the listing, registration and/or qualification of Shares upon
any securities exchange or under any state, Federal or non-United States law, or the consent or approval of any governmental regulatory
body, is necessary or desirable as a condition of, or in connection with, the sale or purchase of Shares hereunder, the Company
shall have no obligation to allow the grant, exercise or payment of any Award, or to issue or deliver evidence of title for Shares
issued under the Plan, in whole or in part, unless and until such listing, registration, qualification, consent and/or approval
shall have been effected or obtained, or otherwise provided for, free of any conditions not acceptable to the Committee.

 

    	- 33 -

    	 

    

(iii)If
at any time counsel to the Company shall be of the opinion that any sale or delivery of Shares pursuant to an Award is or may be
in the circumstances unlawful or result in the imposition of excise taxes on the Company or any Affiliate under the statutes, rules
or regulations of any applicable jurisdiction, the Company shall have no obligation to make such sale or delivery, or to make any
application or to effect or to maintain any qualification or registration under the Securities Act, or otherwise with respect to
Shares or Awards and the right to exercise or payment of any Option or Award shall be suspended until, in the opinion of such counsel,
such sale or delivery shall be lawful or will not result in the imposition of excise taxes on the Company or any Affiliate.

 

(iv)Upon
termination of any period of suspension under this Section 20(g), any Award affected by such suspension which shall not then have
expired or terminated shall be reinstated as to all Shares available before such suspension and as to the Shares which would otherwise
have become available during the period of such suspension, but no suspension shall extend the term of any Award.

 

(v)The
Committee may require each person receiving Shares in connection with any Award under the Plan to represent and agree with the
Company in writing that such person is acquiring such Shares for investment without a view to the distribution thereof, and/or
provide such other representations and agreements as the Committee may prescribe. The Committee, in its absolute discretion, may
impose such restrictions on the ownership and transferability of the Shares purchasable or otherwise receivable by any person under
any Award as it deems appropriate. Any such restrictions shall be set forth in the applicable Award Agreement, and the certificates
evidencing such shares may include any legend that the Committee deems appropriate to reflect any such restrictions.

 

(vi)An
Award and any Shares received upon the exercise or payment of an Award shall be subject to such other transfer and/or ownership
restrictions and/or legending requirements as the Committee may establish in its discretion and may be referred to on the certificates
evidencing such Shares, including restrictions under applicable Federal securities laws, under the requirements of any stock exchange
or market upon which such Shares are then listed and/or traded, and under any blue sky or state securities laws applicable
to such Shares.

 

(h)Participants
Deemed to Accept Plan. By accepting any benefit under the Plan, each Participant and each person claiming under or through
any such Participant shall be conclusively deemed to have indicated their acceptance and ratification of, and consent to, all of
the terms and conditions of the Plan and any action taken under the Plan by the Board, the Committee or the Company, in any case
in accordance with the terms and conditions of the Plan.

 

(i)Governing
Law. Except as to matters concerning the issuance of Shares or other matters of corporate governance, which shall be determined,
and related Plan and Award provisions, which shall be construed, under the laws of the State of Delaware, the Plan and each Award
Agreement shall be governed by and construed in accordance with the laws of the State of New York, excluding any conflicts or choice
of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another
jurisdiction. Unless otherwise provided in the Award Agreement, Participants are deemed to submit to the exclusive jurisdiction
and venue of the federal or state courts of the State of New York, to resolve any and all issues that may arise out of or relate
to the Plan or any related Award Agreement.

 

    	- 34 -

    	 

    

(j)Plan
Unfunded. The Plan shall be an unfunded plan for incentive compensation. The Company shall not be required to establish any
special or separate fund or to make any other segregation of assets to assure the issuance of Shares or the payment of cash upon
exercise or payment of any Award. Proceeds from the sale of Shares pursuant to Options or other Awards granted under the Plan shall
constitute general funds of the Company. With respect to any payments not yet made to any person pursuant to an Award, nothing
contained in the Plan or any Award Agreement shall give such person any rights that are greater than those of a general creditor
of the Company or any Affiliate, and a Participant’s rights under the Plan at all times constitute an unsecured claim against
the general assets of the Company for the payment any amounts as they come due under the Plan. Neither the Participant nor the
Participant’s duly-authorized transferee or beneficiaries shall have any claim against or rights in any specific assets,
Shares, or other funds of the Company or any Affiliate.

 

(k)Administration
Costs. The Company shall bear all costs and expenses incurred in administering the Plan, including expenses of issuing Shares
pursuant to any Options or other Awards granted hereunder.

 

(l)Uncertificated
Shares. To the extent that the Plan provides for issuance of certificates to reflect the transfer of Shares, the transfer
of such Shares may nevertheless be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules
of any stock exchange.

 

(m)No
Fractional Shares. An Option or other Award shall not be exercisable with respect to a fractional Share or the full number
of Shares then subject to the Option or other Award. No fractional Shares shall be issued upon the exercise or payment of an Option
or other Award.

 

(n)Affiliate
Eligible Individuals. In the case of a grant of an Award to any Eligible Individual of an Affiliate, the Company may, if the
Committee so directs, issue or transfer the Shares, if any, covered by the Award to such Affiliate, for such lawful consideration
as the Committee may specify, upon the condition or understanding that such Affiliate will transfer such Shares to such Eligible
Individual in accordance with the terms and conditions of such Award and those of the Plan. The Committee may also adopt procedures
regarding treatment of any Shares so transferred to an Affiliate that are subsequently forfeited or canceled.

 

(o)Data
Protection. By participating in the Plan, each Participant consents to the collection, processing, transmission and storage
by the Company, in any form whatsoever, of any data of a professional or personal nature which is necessary for the purposes of
administering the Plan. The Company may share such information with any Affiliate, any trustee, its registrars, brokers, other
third-party administrator or any person who obtains control of the Company or any Affiliate or any division respectively thereof.

 

    	- 35 -

    	 

    

(p)Right
of Offset. The Company and the Affiliates shall have the right to offset against the obligations to make payment or issue any
Shares to any Participant under the Plan, any outstanding amounts (including travel and entertainment advance balances, loans,
tax withholding amounts paid by the employer or amounts repayable to the Company or any Affiliate pursuant to tax equalization,
housing, automobile or other employee programs) such Participant then owes to the Company or any Affiliate and any amounts the
Committee otherwise deems appropriate pursuant to any tax equalization policy or agreement, in each case to the extent permitted
by applicable law and not in violation of Code Section 409A.

 

(q)Participants
Based Outside of the United States. The Committee may grant awards to Eligible Individuals who are non-United States nationals,
or who reside outside the United States or who are not compensated from a payroll maintained in the United States or who are otherwise
subject to (or could cause the Company to be subject to) legal or regulatory provisions of countries or jurisdictions outside the
United States, on such terms and conditions different from those specified in the Plan as may, in the judgment of the Committee,
be necessary or desirable to foster and promote achievement of the purposes of the Plan and comply with such legal or regulatory
provisions, and, in furtherance of such purposes, the Committee may make or establish such modifications, amendments, procedures
or subplans as may be necessary or advisable to comply with such legal or regulatory requirements (including to maximize tax efficiency).

 

 

    	- 36 -EXHIBIT 10.2

 

SEQUENTIAL BRANDS GROUP, INC., 

 

2013 STOCK INCENTIVE COMPENSATION PLAN

 

Notice of Option Grant

	Participant:	[  ]
	 	 
	Company:	Sequential Brands Group, Inc.  
	 	 
	Notice:	You have been granted the following Nonqualified Stock Option to purchase Shares in accordance with the terms of the Plan, this Notice of Option Grant and the Nonqualified Stock Option Award Agreement attached hereto as Schedule A (this Notice of Option Grant, together with the Nonqualified Stock Option Award Agreement, this “Agreement”).
	 	 
	Type of Award:	Nonqualified Stock Option
	 	 
	Plan:	Sequential Brands Group, Inc. 2013 Stock Incentive Compensation Plan
	 	 
	Grant:	Date of Grant: [  ]
	 	Option Price per Share:  US$[  ]
	 	Total Number of Shares Under Option:  [  ]
	 	 
	Exercisability:	Subject to the terms of the Plan and this Agreement, you may exercise your Option on and after the dates indicated below as to number of restricted shares set forth below opposite each such date.  You may exercise your Option to purchase any Shares as to which your Option has become exercisable at any time and from time to time until your Option terminates or expires.

 

	Anniversary of Date of Grant	Percentage
	First Anniversary	 
	Second Anniversary	 
	Third Anniversary	 
	Fourth Anniversary	 

 

 

		Expiration Date:	Ten years from the Date of Grant, subject to earlier
termination as set forth in the Plan and this Agreement, except as otherwise provided in Section 6(e) of the Plan.

 

    	- 1 -

    	 

    

 

	Acknowledgement	 
	and Agreement:	The undersigned Participant acknowledges receipt of, and understands and agrees to, the terms and conditions of this Agreement and the Plan. 

 

	SEQUENTIAL BRANDS GROUP, INC.	 	PARTICIPANT
	 	 	 
	 	 	 
	 	 	 
	By:	 	 	 
	 	Name:	 	 
	 	Title:	 	 	 
	 	 	 	 	 
	Date:	 	 	Date:	 
	 	 	 
	 	 	 

 

 

    	- 2 -

    	 

    

 

SEQUENTIAL BRANDS GROUP, INC.,

2013 STOCK INCENTIVE COMPENSATION PLAN

 

Nonqualified Stock Option Award Agreement

 

 

This Nonqualified
Stock Option Award Agreement, dated as of the Date of Grant set forth in the Notice of Option Grant (the “Grant
Notice”) to which this Nonqualified Stock Option Award Agreement is attached as Schedule
A, is made between Sequential Brands Group, Inc. (the “Company”) and the Participant set forth in the Grant
Notice. The Grant Notice is included in and made part of this Agreement. Capitalized terms used but
not defined in this Agreement have the meanings set forth in the Plan. 

 

		1.	Grant of the Option.

 

Subject to the provisions
of this Agreement and the provisions of the Plan, the Company hereby grants to the Participant, pursuant to the Plan, the right
and option (the “Option”) to purchase all or any part of the number of Shares of the Common Stock set forth
in the Grant Notice at the Option Price per Share (“Option Price”) set forth in the Grant Notice and on the
other terms as set forth in the Grant Notice.

 

		2.	Exercisability of the Option.

 

The Option shall
become exercisable in accordance with the exercisability schedule and other terms set forth in the Grant Notice. The Option shall
terminate on the Expiration Date set forth in the Grant Notice, subject to earlier termination as set forth in the Plan and this
Agreement.

 

		3.	Method of Exercise of the Option.

 

(a)The Participant
may exercise the Option, to the extent then exercisable, in accordance with the terms and conditions of the Plan by delivering
a written or electronic notice to the Company in a form specified or accepted by the Company, specifying the number of Shares with
respect to which the Option is being exercised and payment to the Company of the aggregate Option Price in accordance with Section
3(b) hereof. Such notice must be signed by the Participant or any other person then having the right to exercise the Option.

 

(b)At
the time the Participant exercises the Option, the Participant shall pay the Option Price of the Shares as to which the Option
is being exercised to the Company (i) in United States dollars by personal check, bank draft, money order or wire transfer of immediately
available funds; or (ii) if permitted by the Committee, and subject to any such terms, conditions and limitations as the Committee
may prescribe and to the extent permitted by applicable law, by any other payment method described in Section 6(f) of the Plan.

 

(c)The Company’s
obligation to deliver the Shares to which the Participant is entitled upon exercise of the Option is conditioned on the Participant’s
satisfaction in full to the Company of the aggregate Option Price of those Shares and the required tax withholding related to such
exercise.

 

		4.	Change in Control.

 

Notwithstanding any
other provision of this Agreement, the Option shall be subject to the Change in Control provisions set forth in Section 14 of the
Plan.

 

		5.	Termination of Service.

 

The Option shall terminate
upon the Participant’s Termination of Service for any reason and no Shares may thereafter be purchased under the Option,
except as otherwise provided in Section 6(h) of the Plan.

 

		6.	Transferability of the Option.

 

    	- 3 -

    	 

    

 

 

The
Option shall not be transferable otherwise than by will or the laws of descent and distribution, and is exercisable, during the
lifetime of the Participant, only by the Participant; provided, however, that (a) the Option may be exercised after
the Participant’s death by the beneficiary most recently named by the Participant in a written designation thereof filed
by the Participant with the Company, in accordance with the Plan, and (b) the Committee may, in its discretion, permit the Option
to be transferred subject to such conditions and limitations as the Committee may impose. No transfer
of the Option by will or the laws of descent and distribution, or otherwise, shall be effective to bind the Company unless the
Committee is furnished with (as applicable): (i) written notice thereof and with a copy of the will and/or such evidence as the
Committee may deem necessary to establish the validity of the transfer and (ii) an agreement by the transferee to comply with all
the terms and conditions of the Option that are or would have been applicable to the Participant and to be bound by the acknowledgements
made by the Participant in connection with the grant of the Option. 

 

		7.	Taxes and Withholdings.

 

At
the time of receipt of Shares upon the exercise of all or any part of the Option, the Participant shall pay to the Company or an
Affiliate in cash, or make other arrangements, in accordance with Section 16 of the Plan, for the satisfaction of, any taxes of
any kind, and social security payments due or potentially payable or required to be withheld with respect to such Shares; provided,
however, that pursuant to any procedures, and subject to any limitations as the Committee may prescribe and subject to applicable
law, the Company may, in its discretion, cause such withholding obligations to be satisfied, in whole or in part, by (a) withholding
Shares otherwise deliverable to the Participant upon exercise of the Option, provided, however, that the amount of any Shares
so withheld shall not exceed the amount necessary to satisfy required Federal, state, and local withholding obligations using the
minimum statutory withholding rates for Federal, state or local tax purposes, including payroll taxes, that are applicable to supplemental
taxable income, and/or (b) tendering to the Company Shares already owned by such Participant
(or by such Participant and his or her spouse jointly) and either previously acquired by the Participant on the open market or
held by the Participant for at least six (6) months at the time of exercise or payment (or which meet any such other requirements
as the Committee may determine are necessary in order to avoid an accounting earnings charge on account of the use of such Shares
to satisfy such tax obligations), based, in each case, on the Fair Market Value of the Common Stock on the payment date as determined
by the Committee. 

 

		8.	No Rights as a Shareholder.

 

Neither the Participant
nor any other person shall become the beneficial owner of the Shares subject to the Option, nor have any rights to dividends or
other rights as a shareholder with respect to any such Shares, until the Participant has actually received such Shares following
the exercise of the Option in accordance with the terms of the Plan and this Agreement.

 

		9.	No Right to Continued Employment.

 

Neither the Option
nor any terms contained in this Agreement shall confer upon the Participant any rights or claims except in accordance with the
express provisions of the Plan and this Agreement, and shall not give the Participant any express or implied right to be retained
in the employment or service of the Company or any Affiliate for any period, or in any particular position or at any particular
rate of compensation, nor restrict in any way the right of the Company or any Affiliate, which right is hereby expressly reserved,
to modify or terminate the Participant’s employment or service at any time for any reason. The Participant acknowledges and
agrees that any right to exercise the Option is earned only by continuing as an employee of the Company or an Affiliate at the
will of the Company or such Affiliate, or satisfaction of any other applicable terms and conditions contained in the Plan and this
Agreement, and not through the act of being hired, being granted the Option or acquiring Shares hereunder.

 

		10.	The Plan.

 

By
accepting any benefit under this Agreement, the Participant and any person claiming under or through the Participant shall be conclusively
deemed to have indicated his or her acceptance and ratification of, and consent to, all of the terms and conditions of the Plan
and this Agreement and any action taken under the Plan by the Board, the Committee or the Company, in any case in accordance with
the terms and conditions of the Plan. This Agreement is subject to all the terms, provisions and conditions of the Plan, which
are incorporated herein by reference, and to such rules, policies and regulations as may from time to time be adopted by the Committee.
In the event of any conflict between the provisions of the Plan and this Agreement, the provisions of the Plan shall control, and
this Agreement shall be deemed to be modified accordingly. A paper copy of the Plan and the prospectus shall be provided to the
Participant upon the Participant’s written request to the Company at the address set forth in Section 12 hereof.

 

    	- 4 -

    	 

    

 

		11.	Compliance with Laws and Regulations.

 

(a)The Option and
the obligation of the Company to sell and deliver Shares hereunder shall be subject in all respects to: (i) all applicable Federal
and state laws, rules and regulations and (ii) any registration, qualification, approvals or other requirements imposed by any
government or regulatory agency or body which the Committee shall, in its discretion, determine to be necessary or applicable.
Moreover, the Option may not be exercised if its exercise, or the receipt of Shares pursuant thereto, would be contrary to applicable
law. If at any time the Company determines, in its discretion, that the listing, registration or qualification of Shares upon any
national securities exchange or under any state or Federal law, or the consent or approval of any governmental regulatory body,
is necessary or desirable, the Company shall not be required to deliver any certificates for Shares to the Participant or any other
person pursuant to this Agreement unless and until such listing, registration, qualification, consent or approval has been effected
or obtained, or otherwise provided for, free of any conditions not acceptable to the Company.

 

(b)It is intended
that the Shares received upon the exercise of the Option shall have been registered under the Securities
Act. If the Participant is an “affiliate” of the Company, as that term is defined
in Rule 144 under the Securities Act (“Rule 144”), the Participant may not sell the Shares received except in compliance
with Rule 144. Any certificates representing Shares issued to an “affiliate” of the Company may bear a legend setting
forth such restrictions on the disposition or transfer of the Shares as the Company deems appropriate to comply with Federal and
state securities laws.

 

(c)If
at the time of exercise of all or part of the Option, the Shares are not registered under the Securities Act, and/or there is no
current prospectus in effect under the Securities Act with respect to the Shares, the Participant shall execute, prior to the delivery
of any Shares to the Participant by the Company pursuant to this Agreement, an agreement (in such form as the Company may specify)
in which the Participant represents and warrants that the Participant is purchasing or acquiring the shares acquired under this
Agreement for the Participant's own account, for investment only and not with a view to the resale or distribution thereof, and
represents and agrees that any subsequent offer for sale or distribution of any kind of such Shares shall be made only pursuant
to either (i) a registration statement on an appropriate form under the Securities Act, which registration statement has become
effective and is current with regard to the Shares being offered or sold or (ii) a specific exemption from the registration requirements
of the Securities Act, but in claiming such exemption the Participant shall, prior to any offer for sale of such Shares, obtain
a prior favorable written opinion, in form and substance satisfactory to the Company, from counsel for or approved by the Company,
as to the applicability of such exemption thereto.

 

(d)The Participant
shall comply with applicable market abuse rules.

 

		12.	Notices.

 

All
notices by the Participant or the Participant’s successors or permitted assigns shall be addressed to Sequential Brands Group,
Inc. [address], or such other address as the Company may from time to time specify. All notices
to the Participant shall be addressed to the Participant at the Participant’s address in the Company's records.

 

		13.	Other Plans.

 

The Participant acknowledges
that any income derived from the exercise of the Option shall not affect the Participant’s participation in, or benefits
under, any other benefit plan or other contract or arrangement maintained by the Company or any Affiliate.

 

 

    	- 5 -

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