Document:

Exhibit 10.27

 

EMPLOYMENT AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (the “Agreement”) is made and effective as of August 11, 2021, between Modular Medical, Inc.,
a Nevada corporation (the “Company”), and Ellen (Lynn) O’Connor Vos (“Executive”) (each a “Party”
and collectively the “Parties”).

 

WHEREAS,
Executive has been retained as a Board Member of Company since on or about May 2021; and

 

WHEREAS,
the Parties hereto deem it to be in their best interests to formalize their relationship and to enter into an employment agreement
whereby the Company will employ Executive pursuant to the terms and conditions set forth herein.

NOW,
THEREFORE, in consideration of the premises and mutual covenants herein contained, the receipt and sufficiency of which the Parties
hereby acknowledge, the Parties agree as follows:

1.            Employment.
Upon the terms and subject to the conditions contained in this Agreement, the Company hereby employs Executive as the Chief Executive
Officer of the Company, with responsibility for overseeing and directing all operations of the Company, subject to the authority
and directives of the Company’s Board of Directors (the “Board”). Executive shall diligently and conscientiously
devote her substantial time and attention to the discharge of her duties as Chief Executive Officer. 

1.1            Other
Business Activities. Executive has disclosed to Company and Company acknowledges that Executive is currently involved in the
other business activities described on Schedule 1.1 hereto (the “Disclosed Activities”). Company has determined
that the Disclosed Activities do not currently conflict with the Company’s business plans or strategies, and Executive shall
be permitted to continue to engage in the Disclosed Activities for the Term of this Agreement (as defined below); provided, however,
that the Board and Executive agree to periodically mutually review the Disclosed Activities and assess the impact, if any, of
such activities on Executive’s duties pursuant to this Agreement. Nothing in this Agreement shall prohibit Executive from
serving as a director of or investor in other business enterprises or non-profit entities so long as such activities do not materially
conflict with Executive’s duties hereunder. Executive has disclosed, and the Company expressly permits, her continued service
as a consultant for Hill & Knowlton through the completion of the current project.

2.            Term.
Subject to the severance provisions of Section 5 below, Executive’s employment with the Company shall initially be for a
term of two (2) years beginning August 11, 2021 and ending August 10, 2023 (“Initial Term”) and shall thereafter automatically
renew for one-year terms unless either party terminates the Agreement with 90 days prior written notice of termination before
the end of the then current term (each additional one-year term a “Renewal Term” and the Initial Term with any Renewal
Term[s] being collectively referred to herein as the “Term”). Executive will be given 90 days written notice if the
Board plans not to renew the Term.

 

3.             Compensation.

 

(a)            Base
Compensation. Executive shall be entitled to total base compensation of $300,000.00 annually, as follows: Executive shall
receive a cash salary of $250,000.00 per year ($20,833.33 per month) (the “Cash Salary”), plus deferred salary of
$50,000.00 per year (the “Deferred Salary” and together with the Cash Salary, Executive’s “Base Compensation”).
The Deferred Salary shall accrue monthly, shall be fully vested and nonforfeitable, and shall be payable in full in cash upon
the earliest of (i) the last day of Executive’s employment by the Company or (ii) a Change of Control, as determined under
Section 6. The Cash Salary shall be payable less applicable deductions and withholding in normal installments and in accordance
with the payroll practices of Company. Payment of the Deferred Salary shall be subject to applicable withholdings. Executive’s
Base Compensation shall not be reduced without agreement of Executive. Notwithstanding the foregoing, upon the occurrence of a
Change of Control or the registration of the Company’s shares on a national or international stock exchange, Executive’s
Cash Salary shall be increased to at least $300,000 and no portion thereof shall be deferred.

    	 

    	 

    

(b)            Bonus.
In addition to her Base Compensation, Executive shall receive an annual cash bonus with a target of $300,000.00 upon achievement
of certain agreed upon goals as determined by Executive and the Company’s Board, which shall be deemed earned compensation
as of December 31 of the calendar year to which the bonus applies. The bonus shall be payable upon the filing of the Company’s
annual form 10-K with the U.S. Securities and Exchange Commission for the year earned but in no event later than December 31 of
the year following the year for which the bonus is earned. At the Company’s option, up to one-half of the bonus may be paid
in shares of the Company’s common stock, which shall be fully vested. Payment of the bonus shall be subject to applicable
withholdings.

 

(c)            Stock
Options. In addition to her Base Compensation, effective as of the Effective Date, Company shall grant Executive an option
(the “Option”) to purchase up to a total of 1,087,354 shares of the Company’s common stock, at an exercise price
equal to the fair market value of the shares as of the date of grant. Twenty percent (20%) of the Option shall vest after six
months, and the remaining eighty percent (80%) of such shares shall become vested in equal monthly installments over the next
forty-two (42) months on the corresponding day of each month. The foregoing notwithstanding, any unvested portion of the Option
shall become fully vested upon a Change of Control. The Option shall be subject to such terms and conditions (including, without
limitation, provisions in the Option award agreement relating to method of exercise and payment, withholding, adjustments in the
case of changes in capital structure, nontransferability and rights of repurchase and first refusal) not inconsistent with the
foregoing and in accordance with the Company’s 2017 Equity Incentive Plan (the “Plan”), as may be determined
by the Company’s Board in its sole discretion; provided, however, that Executive shall have not less than 30 days after
termination of employment in which to exercise any options provided by the Option and provided, further, that Executive shall
be entitled to elect to have shares withheld to satisfy the statutory minimum tax withholding obligations. The general terms and
conditions of the Option shall be set forth in an agreement between the Company and Executive incorporating the provisions herein
and such agreement shall evidence such grants. For the avoidance of doubt, the Option for 1,087,354 shares provided for herein
is in addition to the options to purchase up to 50,000 shares previously awarded to Executive as a member of the Board (the “Director’s
Option”). The 1,137,354 total shares subject to the Option and the Director’s Option is equal to five percent (5%)
of the outstanding shares of common stock of the Company plus employee stock options as of the Effective Date.

 

(d)            Benefits.
During the period of employment, the Company shall provide Executive with such employee benefits as are provided by the Company
generally to its executive employees. In addition, Company shall provide Executive at Company’s expense, or shall reimburse
Executive, for appropriate telecommunications and internet service and devices as needed for Executive to perform her duties pursuant
to this Agreement. Executive shall receive four (4) weeks of paid vacation days per calendar year, which may be taken, in Executive’s
discretion, subject to the reasonable needs of the Company.

 

(e)            Reimbursement
of Expenses. The Company shall reimburse Executive for all reasonable and necessary expenses incurred by her in connection
with her employment and in accordance with Company policy, which requires reasonable evidence of expenditure. In addition, Company
shall reimburse Executive for travel and temporary living expenses in San Diego County up to $30,000.00 per year during the Term
of this Agreement.

 

4.             Insurance
and Indemnification Agreement. The Company shall provide insurance coverage for Executive, as set forth below, in a reasonable
amount to cover reasonable risks associated with her position and shall further indemnify, defend and hold Executive harmless
from all liability in connection with her employment, excepting only liability arising out of those acts which would exclude her
from coverage under the Company’s Directors and Officers (“D&O”) insurance policy. Executive and Company
have previously entered into an Indemnity Agreement whereby Company agrees to indemnify Executive on the terms as set forth therein.
In addition, Company shall obtain a D&O policy covering all officers and directors of the Company, including Executive, with
coverage as determined by the Board of Directors.

    	 

    	 

    

5.             Termination of Employment.
Executive and the Company acknowledge and agree that either party may terminate Executive’s employment at any time, for any reason
or no reason, upon ninety (90) days written notice to the other party; provided, that the Company in its sole discretion may determine
that Executive’s last day of work is either the date that Executive provides notice of the termination, or the date Company
provides notice of termination, or on the date that is 90 days from the date of the notice of termination (the 90 day period from
the notice being referred to as the “Notice Period”), or at any time during the Notice Period, but the effective date
of any such termination shall be the last day of the Notice Period and in any event Executive shall be considered an employee
through the last day of the Notice Period and therefore shall continue to receive all compensation and benefits to which she is
entitled as an active employee; provided further, that a termination by the Company for Cause shall be effective immediately unless
set forth otherwise in writing as determined by Company. Any termination shall be subject to the following provisions:

(a)           Certain Definitions.
As used herein, the following terms shall have the following definitions:

(i)             Good
Reason. For purposes of this Agreement, “Good Reason” means: (A) a material reduction or adverse change in Executive’s
title, position, duties or compensation without Executive’s prior express written consent; (B) any change in reporting responsibilities
other than to the Chairperson of the Company’s Board, (C) a relocation of Executive’s principal place of employment
to a location more than thirty (30) miles from her then current location, other than requiring up to 40% of Executive’s
working time in the Company’s San Diego office, (D) the Company’s assignment of its rights hereunder to any subsidiary
or affiliate of the Company or a successor to all or substantially all of the Company’s business as part of a merger with, or
acquisition of the Company by, another business entity, without Executive’s consent or (E) any other material breach by
the Company of its obligations hereunder, which breach remains uncured for thirty (30) days following written notice to the Company
of such breach, which notice specifies in reasonable detail the nature of such breach.

 

(ii)            Disability.
For purposes of this Agreement “Disability” shall mean Executive’s complete inability to perform her duties
as determined by the Executive’s physician, which inability continues for more than one hundred eighty (180) consecutive
days; provided, however, that in the event any disability income policy maintained by the Company contains a definition of “permanent
disability” which requires a greater period of continuous inability to perform services, such definition shall control.

 

(iii)           Cause.
For the purposes of this Agreement, Cause shall mean: (i) Executive’s conviction of a felony or similar crime causing material
harm to the standing and reputation of the Company; (ii) Executive’s dishonesty or fraud that causes material economic harm
to the Company; (iii) Executive’s gross fiscal or fiduciary malfeasance. With respect to the above, if such basis for Cause
is capable of cure, the Company shall give Executive written notice describing the issue and why it constitutes Cause and allow
Executive a reasonable opportunity to remedy the situation, and only if Executive fails to cure shall there exist Cause.

(b)           Voluntary Termination.
Executive may resign or otherwise terminate her employment at any time as set forth in Section 5 above. Any such resignation by
Executive other than a resignation for Good Reason shall be a Voluntary Termination. Upon a Voluntary Termination, the Company
shall pay Executive (i) her Base Compensation (including credit for Deferred Salary) through the period ending on the effective
date of termination and (ii) all unpaid Deferred Salary earned through the last day of employment.

(c)           Severance. Company shall
pay Executive a “Severance Payment” as set forth in the following circumstances:

(i)             Non-Renewal
of the Initial Term or any Renewal Term. The Company’s failure to renew the Initial Term shall be treated as a termination
without Cause as set forth in section (ii) below. The Company’s failure to renew any Renewal Term shall result in Executive’s
entitlement to (A) any Base Compensation earned through the last date of employment, (B) all unpaid Deferred Salary earned through the
last day of employment, and (C) any unpaid bonus.

    	 

    	 

    

(ii)            Termination
by the Company Without Cause or by Executive With Good Reason other than in conjunction with a Change of Control. Except for
a termination in conjunction with a Change of Control as set forth in Section 5(c)(v) below, if the Company terminates Executive’s
employment without Cause, or Executive resigns with Good Reason, then Company shall Pay Executive (A) a lump sum cash Severance
Payment equal to the Executive’s annual Base Compensation, (B) any awarded but unpaid cash bonus, (C) all unpaid Deferred
Salary earned through the last day of employment; and (D) reimbursement for 12 months of the continuation of healthcare coverage
pursuant to COBRA.

 

(iii)            Termination With Cause. In the event of a termination for Cause, the Company shall not be obligated to make any Severance
Payment to Executive. Executive will be paid Base Compensation through the last day of employment, and all unpaid Deferred Salary
earned through the last day of employment.

 

(iv)            Termination
Due to Death/Disability. In the event of termination due to death or Disability, Executive or her legal representative shall
be entitled to (A) any Base Compensation earned through the last date of employment, (B) all unpaid Deferred Salary earned through
the last day of employment, and (C) any unpaid bonus. In addition, Executive will remain eligible for all applicable benefits
relative to death or Disability pursuant to the plans and policies, if any, in place at the time. 

 

(v)            Change of Control. Except for a termination for Cause, in the event of Executive’s termination by the Company Without
Cause or Executive’s termination for Good Reason within six months before or 12 months after a Change of Control, as determined
under Section 6(a),  and in lieu of any other Severance Payment
which may otherwise be due under Section 5(c), Executive shall be paid
a lump sum cash Severance Payment equal to (A) two (2) times Executive’s then-current Base Compensation, (B) any Base Compensation
and bonus earned but not already paid; and (D) reimbursement for 12 months for the continuation of healthcare coverage whether
or not pursuant to COBRA. Any Options not already vested shall be fully vested. If the Company has repurchased any shares acquired
by the Executive (whether or not pursuant to the Option Award) within six months before a Change of Control (or if she otherwise
has been paid the value of such shares in connection with her termination of employment), the Company shall make an additional
payment to her equal to any difference (but not less than zero) between the price paid for Executive’s shares and the value
of the transaction consideration in the Change of Control.

 

6.             Change of Control.

 

(a)            Definition.
For purposes of this Agreement, “Change of Control” means the removal of Executive as Chief Executive Officer as the
result of the occurrence of any of the following events: (A) the sale, lease, conveyance or other disposition of all or substantially
all of the Company’s assets as an entirety or substantially as an entirety to any person, entity or group of persons acting
in concert; (B) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934,
as amended), other than any then-currently existing shareholder as of the Change of Control date, becoming the “beneficial
owner” (as defined in Rule 13d-3 under said act), directly or indirectly, of securities of the Company representing fifty
percent (50%) or more of the total voting power represented by the Company’s then-outstanding voting securities but in no
event shall the completion of an offering (i) of the Company’s Common Stock pursuant to a registration statement filed with
the Securities and Exchange Commission in the Company’s initial public offering; or (ii) a private offering of shares of
the capital stock of the Company constitute a Change of Control; or (C) a merger or consolidation of the Company with any other
corporation or entity not affiliated with any currently existing shareholder, other than a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the total voting
power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or
consolidation.

 

(b)            Acceleration
of Options, Vesting. The Option granted in Section 3(c) herein shall become fully vested and immediately exercisable with
respect to all of the shares subject to the Option upon the occurrence of a Change of Control.

    	 

    	 

    

7.             Confidential
Information; Non-Hire; Non-Solicitation.

 

(a)            Confidential
Information. Executive recognizes and acknowledges the competitive and proprietary aspects of the business of the Company,
and that as a result of Executive’s employment, Executive recognizes and acknowledges that Executive has had and will continue
to have access to, and has been and will continue to be involved in the development of, Confidential Information (as defined below)
of the Company. As used herein, “Confidential Information” shall mean and include trade secrets, knowledge and other
confidential information of the Company, which Executive has acquired, no matter from whom or on what matter such knowledge or
information may have been acquired, heretofore or hereafter, concerning the content and details of the business of the Company,
and which is not known to the general public, including but not limited to: confidential and proprietary information supplied
to Executive with the legend “Confidential and Proprietary,” or equivalent, the Company’s marketing and customer
support strategies, suppliers and customers, marketing and selling, business plans, licenses, the Company’s financial information,
including sales, costs, profits, prices, pricing methods, budgets and unpublished financial statements, the Company’s internal
organization, employee information obtained pursuant to Executive’s duties and responsibilities, information regarding the
skills and compensation of other employees of the Company obtained pursuant to Executive’s duties and responsibilities and
customer lists, the Company’s technology, including products, discoveries, inventions, research, experimental and development
efforts, clinical studies, processes, hardware/software design and maintenance tools, samples, media and/or molecular structures
(and procedures and formulations for producing any such samples, media and/or molecular structures), formulas, methods, know-how
and show-how, designs, prototypes, plans for research and new products, and all derivatives, improvements and enhancements of
any of the above and information of third parties as to which the Company has an obligation of confidentiality.

(i)             For
as long as Executive is employed and at all times thereafter, Executive shall not, directly or indirectly, communicate, disclose
or divulge to any person or entity, or use for Executive’s own benefit or the benefit of any person (other than the Company),
any Confidential Information, except as permitted in subparagraph (iii) below. Upon termination of Executive’s employment,
or at any other time at the request of the Company, Executive agrees to deliver promptly to the Company all Confidential Information,
including, but not limited to, customer and supplier lists, files and records, in Executive’s possession or under Executive’s
control. Executive further agrees that Executive will not make or retain any copies of any of the foregoing and will so represent
to the Company upon termination of Executive’s employment.

(ii)            Executive
shall disclose immediately to the Company any trade secrets or other Confidential Information conceived or developed by Executive
at any time during Executive’s employment. Executive hereby assigns and agrees to assign to the Company Executive’s
entire right, title and interest in and to all Confidential Information. Such assignment shall include, without limitation, the
rights to obtain patent or copyright protection thereon in the United States and foreign countries. Executive agrees to provide
all reasonable assistance to enable the Company to prepare and prosecute any application before any governmental agency for patent
or copyright protection or any similar application with respect to any Confidential Information. Executive further agrees to execute
all documents and assignments and to make all oaths necessary to vest ownership of such intellectual property rights in the Company,
as the Company may request. These obligations shall apply whether or not the subject thereof was conceived or developed at the
suggestion of the Company, and whether or not developed during regular hours of work or while on the premises of the Company.

    	 

    	 

    

(iii)           Except
as set forth below, Executive shall at all times, both during and after termination of this Agreement by either Executive or the
Company, maintain in confidence and shall not, without prior written consent of the Company, use, except in the course of performance
of Executive’s duties for the Company or as required by legal process (provided that Executive will promptly notify the
Company of such legal process except with respect to any confidential government investigation), disclose or give to others any
Confidential Information. In the event Executive is questioned by anyone not employed by the Company or by an employee of or a
consultant to the Company not authorized to receive such information, in regard to any such information or any other secret or
confidential work of the Company, or concerning any fact or circumstance relating thereto, Executive will promptly notify the
Company. Notwithstanding the foregoing, however, nothing in this Agreement or elsewhere prohibits Executive from communicating
with government agencies about possible violations of federal, state, or local laws or otherwise providing information to government
agencies, filing a complaint with government agencies, or participating in government agency investigations or proceedings. Executive
is not required to notify the Company of any such communications; provided, however, that nothing herein authorizes the disclosure
of information Executive obtained through a communication that was subject to the attorney-client privilege. Further, notwithstanding
Executive’s confidentiality and nondisclosure obligations, Executive is hereby advised as follows pursuant to the Defend
Trade Secrets Act: “An individual shall not be held criminally or civilly liable under any Federal or State trade secret
law for the disclosure of a trade secret that (A) is made (i) in confidence to a Federal, State, or local government official,
either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation
of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.
An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade
secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files
any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.

(b)          During
the Term and for a one-year period commencing at the end of the Term and/or on the effective date of any termination in accordance
with Section 5 or Section 6 if before the end of the Term, Executive covenants and agrees as follows:

(i)             Non-hire/non-solicitation
of employees. Executive shall not hire any officer, director, executive or employee of the Company who is employed or otherwise
engaged by the Company or has been employed or otherwise engaged by the Company during the previous 6 months, nor shall Executive
solicit or attempt to solicit any such person to leave his or her employment or engagement with the Company.

 

(ii)             Customer
non-interference/non-solicitation. Executive shall not, directly, or indirectly, interfere with any contract, relationship,
potential contract or potential relationship between the Company and any customer, client, business or potential customer, client
or business.

 

(iii)            Non-
solicitation of suppliers. Executive also agrees and covenants that she shall not divert or attempt to divert from the Company,
any Company supplier or vendor.

 

8.            Other
Agreements. Executive represents and warrants that the execution and delivery of this Agreement and the performance of all
the terms of this Agreement do not and will not breach any agreement to keep in confidence proprietary information acquired by
Executive in confidence or trust. Executive has not entered into and shall not enter into any agreement, either written or oral,
in conflict with this Agreement. Executive represents that she has not brought and will not bring with her to the Company or use
at the Company any materials or documents of an employer or a former employer that are not generally available to the public unless
express written authorization from such employer for their possession and use has been obtained. Executive further understands
that she is not to breach any obligation of confidentiality that she has to any employer or former employer and agrees to fulfill
all such obligations during the period of her affiliation with the Company.

    	 

    	 

    

9.            Notices.
All notices or other communications which are required or permitted hereunder shall be in writing and sufficient if (a) delivered
personally or sent by telecopier, (b) sent by nationally-recognized overnight courier or (c) sent by certified mail, postage prepaid,
return receipt requested, addressed as follows:

if
to the Company, to:

 

Modular
Medical, Inc.

16772 W. Bernardo Drive

San Diego, CA 92127

Attention: Chief Financial Officer

and
if to Executive, to Executive’s address on the books or records of the Company, or to such other address as the Party to whom
notice is to be given may have furnished to each other Party in writing in accordance herewith. Any such communication shall be
deemed to have been given (i) when delivered if personally delivered or sent by facsimile transmission, (ii) on the Business Day
(as hereinafter defined) after dispatch if sent by nationally-recognized, overnight courier and (iii) on the fifth Business
Day after dispatch if sent by first class U.S. mail. As used herein, “Business Day” means a day that is not a Saturday,
Sunday or a day on which banking institutions in California are not required to be open.

10.           Entire
Agreement; Amendments. This Agreement contains the entire agreement between the parties with respect to the subject matter
hereof and supersedes all prior or contemporaneous negotiations, correspondence, understandings and agreements between the parties
with respect thereto. This Agreement may be amended only by an agreement in writing signed by both parties hereto.

 

11.          Assignment Successors: Benefits
of Agreement. This Agreement is personal in its nature and neither Party hereto shall, without the consent of the other, assign
or transfer this Agreement or any rights or obligations hereunder; provided, however, that the Company shall have the right to
assign its rights hereunder to any subsidiary or affiliate of the Company or a successor to all or substantially all of the Company’s
business as part of a merger with, or acquisition of the Company by, another business entity, but if the Company does not obtain
Executive’s consent then such shall be deemed Good Reason as defined above. The provisions of this Agreement shall be binding
upon and inure to the benefit of, as applicable, the respective heirs, executors, administrators and successors and permitted
assigns of the parties hereto.

 

12.           Waiver of Breach. A waiver of
any breach of any provision of this Agreement shall not constitute or operate as a waiver of any other breach of such provision
or of any other provision, and any failure to enforce any provision hereof shall not operate as a waiver of such provision or
of any other provision.

 

13.          Counterparts:
Headings. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of
which shall constitute one and the same instrument. Headings said herein are for convenience of reference only and are not to
affect the interpretation of this Agreement.

 

14.          Governing
Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of California.

    	 

    	 

    

15.          Severability.
In the event that any provision of this Agreement would be held in any jurisdiction to be invalid, prohibited or unenforceable
for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of
this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding the foregoing,
if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall,
as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the
validity or enforceability of such provision in any other jurisdiction.

 

16.          Remedies.
Executive acknowledges and understands that the provisions of this Agreement are of a special and unique nature, the loss of which
cannot be adequately compensated for in damages by an action at law, and that the breach or threatened breach of the provisions
of this Agreement would cause the Company irreparable harm. In the event of a breach or threatened breach by Executive of the
provisions of this Agreement, the Company shall be entitled to apply for an injunction restraining her from such breach.

 

IN WITNESS WHEREOF,
the parties have duly executed this Agreement as of the date first above written.

 

	EXECUTIVE	COMPANY
	 	 	 	 
	 	 	MODULAR MEDICAL, INC., a
	 	 	Nevada corporation
	 	 	 	 
	/s/ Lynn Vos                           	By:  	/s/ Paul M. DiPerna
	Ellen (Lynn) O’Connor
    Vos	 	Paul M. DiPerna,
	 		 	PresidentExhibit 4.1
      

SIEBERT FINANCIAL CORP.

2021 EQUITY INCENTIVE PLAN

1.            
Purpose; Eligibility.

1.1             
General Purpose. The name of this plan is the Siebert Financial Corp. 2021 Equity Incentive Plan (the "Plan").
The purposes of the Plan are to (a) enable Siebert Financial Corp., a New York corporation (the "Company"), and any Affiliate
to attract and retain the types of Employees, Consultants and Directors who will contribute to the Company's long range success; (b) provide
incentives that align the interests of Employees, Consultants and Directors with those of the shareholders of the Company; and (c) promote
the success of the Company's business.

1.2             
Eligible Award Recipients. The persons eligible to receive Awards are the Employees, Consultants and Directors of
the Company and its Affiliates and such other individuals designated by the Committee who are reasonably expected to become Employees,
Consultants and Directors after the receipt of Awards.

1.3             
Available Awards. Awards that may be granted under the Plan include: (a) Incentive Stock Options, (b) Non-qualified
Stock Options, (c) Stock Appreciation Rights, (d) Restricted Awards, (e) Performance Share Awards, (f) Cash Awards, and (g) Other Equity-Based
Awards.

2.            
Definitions.

"Affiliate" means a
corporation or other entity that, directly or through one or more intermediaries, controls, is controlled by or is under common control
with, the Company.

"Applicable Laws" means
the requirements related to or implicated by the administration of the Plan under applicable state corporate law, United States federal
and state securities laws, the Code, the applicable rules of any stock exchange or quotation system on which the shares of Common Stock
are listed or quoted, and the applicable laws of any foreign country or jurisdiction where Awards are granted under the Plan.

"Award" means any right
granted under the Plan, including an Incentive Stock Option, a Non-qualified Stock Option, a Stock Appreciation Right, a Restricted Award,
a Performance Share Award, a Cash Award, or an Other Equity-Based Award.

"Award Agreement" means
a written agreement, contract, certificate or other instrument or document evidencing the terms and conditions of an individual Award
granted under the Plan which may, in the discretion of the Company, be transmitted electronically to any Participant. Each Award Agreement
shall be subject to the terms and conditions of the Plan.

"Beneficial Owner"
has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership
of any particular Person, such Person shall be deemed to have beneficial ownership of all securities that such Person has the right to
acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage
of time. The terms "Beneficially Owns", "Beneficial Ownership", and "Beneficially Owned" have a corresponding
meaning.

    	1

     

    

"Board" means the Board
of Directors of the Company, as constituted at any time.

"Cash Award" means
an Award denominated in cash that is granted under Section 10 of the Plan.

"Cause" means:

	 	
    With respect to any Employee or Consultant, unless the applicable
    Award Agreement states otherwise:

    (a) If the Employee or Consultant is a party to an employment or
    service agreement with the Company or its Affiliates and such agreement provides for a definition of Cause or a similar term, the definition
    contained therein, provided that with regard to any such agreement under which such definition applies only on occurrence of a
    change in control or other similar event, such definition shall not apply until such change in control or other similar event actually
    occurs and then only with regard to a termination thereafter and, until such time, clause (b) below shall apply; or

    (b) If no such agreement exists, or if such agreement does not define
    Cause or a similar term: (i) the commission of, or plea of guilty or no contest to, a felony or a crime involving moral turpitude or the
    commission of any other act involving willful malfeasance or material fiduciary breach with respect to the Company or an Affiliate; (ii)
    conduct that brings or is reasonably likely to bring the Company or an Affiliate negative publicity or into public disgrace, embarrassment,
    or disrepute; (iii) gross negligence or willful misconduct with respect to the Company or an Affiliate; (iv) material violation of state
    or federal securities laws; or (v) material violation of the Company's written policies or codes of conduct, including written policies
    related to discrimination, harassment, performance of illegal or unethical activities, and ethical misconduct.

	 	
    With respect to any Director, unless the applicable Award Agreement
    states otherwise, a determination by a majority of the disinterested Board members that the Director has engaged in any of the following:

    (a) malfeasance in office;

    (b) gross misconduct or neglect;

    (c) false or fraudulent misrepresentation inducing the Director's
    appointment;

    (d) willful conversion of corporate funds; or

    (e) repeated failure to participate in Board meetings on a regular
    basis despite having received proper notice of the meetings in advance.

The Committee, in its absolute discretion,
shall determine the effect of all matters and questions relating to whether a Participant has been discharged for Cause.

"Change in Control"
means:

	 	
    (a) The direct or indirect sale, transfer, conveyance or other disposition
    (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties
    or assets of the Company and its Subsidiaries, taken as a whole, to any Person that is not an Affiliate;

    

    	2

     

    

	 	
    (b) The Incumbent Directors cease for any reason to constitute
at least a majority of the Board;

    (c) The date which is 10 business days prior to the consummation
    of a complete liquidation or dissolution of the Company;

    (d) The acquisition by any Person of Beneficial Ownership of 50%
    or more (on a fully diluted basis) of either (i) the then outstanding shares of Common Stock of the Company, taking into account as outstanding
    for this purpose such Common Stock issuable upon the exercise of options or warrants, the conversion of convertible stock or debt, and
    the exercise of any similar right to acquire such Common Stock (the "Outstanding Company Common Stock") or (ii) 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 Plan, the following acquisitions shall not constitute
    a Change in Control: (A) any acquisition by the Company or any Affiliate, (B) any acquisition by any employee benefit plan sponsored or
    maintained by the Company or any Subsidiary, (C) any acquisition which complies with clauses, (i), (ii) and (iii) of subsection (e) of
    this definition or (D) in respect of an Award held by a particular Participant, any acquisition by the Participant or any group of persons
    including the Participant (or any entity controlled by the Participant or any group of persons including the Participant); or

    (e) The consummation of a reorganization, merger, consolidation,
    statutory share exchange or similar form of corporate transaction involving the Company that requires the approval of the Company's shareholders,
    whether for such transaction or the issuance of securities in the transaction (a "Business Combination"), unless immediately
    following such Business Combination: (i) more than 50% of the total voting power of (A) the entity resulting from such Business Combination
    (the "Surviving Company"), or (B) if applicable, the ultimate parent entity that directly or indirectly has beneficial
    ownership of sufficient voting securities eligible to elect a majority of the members of the board of directors (or the analogous governing
    body) of the Surviving Company (the "Parent Company"), is represented by the Outstanding Company Voting Securities that
    were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which the Outstanding
    Company Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in
    substantially the same proportion as the voting power of the Outstanding Company Voting Securities among the holders thereof immediately
    prior to the Business Combination; (ii) no Person (other than any employee benefit plan sponsored or maintained by the Surviving Company
    or the Parent Company) is or becomes the Beneficial Owner, directly or indirectly, of 50% or more of the total voting power of the outstanding
    voting securities eligible to elect members of the board of directors of the Parent Company (or the analogous governing body) (or, if
    there is no Parent Company, the Surviving Company); and (iii) at least a majority of the members of the board of directors (or the analogous
    governing body) of the Parent Company (or, if there is no Parent Company, the Surviving Company) following the consummation of the Business
    Combination were Board members at the time of the Board's approval of the execution of the initial agreement providing for such Business
    Combination.

"Code" means the Internal
Revenue Code of 1986, as it may be amended from time to time. Any reference to a section of the Code shall be deemed to include a reference
to any regulations promulgated thereunder.

    	3

     

    

 

"Committee" means a
committee of one or more members of the Board appointed by the Board to administer the Plan in accordance with Section 3.3 and Section
3.4.

"Common Stock" means
the common stock, $0.01 par value per share, of the Company, or such other securities of the Company as may be designated by the Committee
from time to time in substitution thereof.

"Company" means Siebert
Financial Corp., a New York corporation, and any successor thereto.

"Consultant" means
any individual or entity which performs bona fide services to the Company or an Affiliate, other than as an Employee or Director, and
who may be offered securities registerable pursuant to a registration statement on Form S-8 under the Securities Act.

"Continuous Service"
means that the Participant's service with the Company or an Affiliate, whether as an Employee, Consultant or Director, is not interrupted
or terminated. The Participant's Continuous Service shall not be deemed to have terminated merely because of a change in the capacity
in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the entity
for which the Participant renders such service, provided that there is no interruption or termination of the Participant's Continuous
Service; provided further that if any Award is subject to Section 409A of the Code, this sentence shall only be given effect to
the extent consistent with Section 409A of the Code. For example, a change in status from an Employee of the Company to a Director of
an Affiliate will not constitute an interruption of Continuous Service. The Committee or its delegate, in its sole discretion, may determine
whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick
leave, military leave or any other personal or family leave of absence. The Committee or its delegate, in its sole discretion, may determine
whether a Company transaction, such as a sale or spin-off of a division or Affiliate that employs a Participant, shall be deemed to result
in a termination of Continuous Service for purposes of affected Awards, and such decision shall be final, conclusive and binding.

"Deferred Stock Units (DSUs)"
has the meaning set forth in Section 8.1(b) hereof.

"Director" means a
member of the Board.

"Disability" means,
unless the applicable Award Agreement says otherwise, that the Participant is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment; provided, however, for purposes of determining the term of
an Incentive Stock Option pursuant to Section 6.10 hereof, the term Disability shall have the meaning ascribed to it under Section 22(e)(3)
of the Code. The determination of whether an individual has a Disability shall be determined under procedures established by the Committee.
Except in situations where the Committee is determining Disability for purposes of the term of an Incentive Stock Option pursuant to Section
6.10 hereof within the meaning of Section 22(e)(3) of the Code, the Committee may rely on any determination that a Participant is disabled
for purposes of benefits under any long-term disability plan maintained by the Company or any Affiliate in which a Participant participates.

"Disqualifying Disposition"
has the meaning set forth in Section 17.12.

    	4

     

    

"Effective Date" shall
mean the date that the Company's shareholders approve this Plan if such shareholder approval occurs before the first anniversary of the
date the Plan is adopted by the Board.

"Employee" means any
person, including an Officer or Director, employed by the Company or an Affiliate; provided, that, for purposes of determining
eligibility to receive Incentive Stock Options, an Employee shall mean an employee of the Company or a Subsidiary (at the time of the
granting of the Incentive Stock Option). Mere service as a Director or payment of a director's fee by the Company or an Affiliate shall
not be sufficient to constitute "employment" by the Company or an Affiliate.

"Exchange Act" means
the Securities Exchange Act of 1934, as amended.

"Fair Market Value"
means, as of any date, the value of the Common Stock as determined below. If the Common Stock is listed on any established stock exchange
or a national market system, including without limitation, the New York Stock Exchange or the Nasdaq Stock Market, the Fair Market Value
shall be the closing price of a share of Common Stock (or if no sales were reported the closing price on the date immediately preceding
such date) as quoted on such exchange or system on the day of determination, as reported in the Wall Street Journal. In the absence
of an established market for the Common Stock, the Fair Market Value shall be determined in good faith by the Committee and such determination
shall be conclusive and binding on all persons.

"Fiscal Year" means
the Company's fiscal year.

"Free Standing Rights"
has the meaning set forth in Section 7.

"Good Reason" means,
unless the applicable Award Agreement states otherwise:

	 	
    (a) If an Employee or Consultant is a party to an employment or service
    agreement with the Company or its Affiliates and such agreement provides for a definition of Good Reason or a similar term, the definition
    contained therein, provided that with regard to any such agreement under which such definition applies only on occurrence of a
    change in control or other similar event, such definition shall not apply until such change in control or other similar event actually
    occurs and then only with regard to a termination thereafter and, until such time, clause (b) below shall apply; or

    (b) If no such agreement exists or if such agreement does not define
    Good Reason, the occurrence of one or more of the following without the Participant's express written consent, which circumstances are
    not remedied by the Company within thirty (30) days of its receipt of a written notice from the Participant describing the applicable
    circumstances (which notice must be provided by the Participant within ninety (90) days of the Participant's knowledge of the applicable
    circumstances): (i) any material, adverse change in the Participant's duties, responsibilities, authority, title, status or reporting
    structure; (ii) a material reduction in the Participant's base salary or bonus opportunity; or (iii) a geographical relocation of the
    Participant's principal office location by more than fifty (50) miles.

"Grant Date" means
the latest to occur of (i) the date on which the Committee adopts a resolution, or takes other appropriate action, expressly granting
an Award to a Participant that

    	5

     

    

specifies the key terms and conditions of the Award, (ii)
the grant or effective date of the Award asset forth in such resolution, or (iii) the date on which the recipient of an Award first becomes
eligible to receive an Award under Section 5, provided that the date under this part (iii) does not cause the Award to constitute "nonqualified
deferred compensation" within the meaning of Section 409A of the Code.

"Incentive Stock Option"
means an Option that is designated by the Committee as an incentive stock option within the meaning of Section 422 of the Code and that
meets the requirements set out in the Plan.

"Incumbent Directors"
means individuals who, on the Effective Date, constitute the Board, provided that any individual becoming a Director subsequent
to the Effective Date whose election or nomination for election to the Board was approved by a vote of at least two-thirds of the Incumbent
Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named
as a nominee for Director without objection to such nomination) shall be an Incumbent Director. No individual initially elected or nominated
as a director of the Company as a result of an actual or threatened election contest with respect to Directors or as a result of any other
actual or threatened solicitation of proxies by or on behalf of any person other than the Board shall be an Incumbent Director.

"Non-Employee Director"
means a Director who is a "non-employee director" within the meaning of Rule 16b-3.

"Non-qualified Stock Option"
means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.

"Officer" means a person
who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

"Option" means an Incentive
Stock Option or a Non-qualified Stock Option granted pursuant to the Plan.

"Optionholder" means
a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option.

"Option Exercise Price"
means the price at which a share of Common Stock may be purchased upon the exercise of an Option.

"Other Equity-Based Award"
means an Award that is not an Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, or Performance Share Award that
is granted under Section 10 and is payable by delivery of Common Stock and/or which is measured by reference to the value of Common Stock.

"Participant" means
an eligible person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Award.

"Performance Goals"
means, for a Performance Period, the one or more goals established by the Committee for the Performance Period based upon business criteria
or other performance measures determined by the Committee in its discretion.

    	6

     

    

"Performance Period"
means the one or more periods of time, not less than one fiscal quarter in duration, as the Committee may select, over which the attainment
of one or more Performance Goals will be measured for the purpose of determining a Participant's right to and the payment of a Performance
Share Award or a Cash Award.

"Performance Share Award"
means any Award granted pursuant to Section 9 hereof.

"Performance Share"
means the grant of a right to receive a number of actual shares of Common Stock or share units based upon the performance of the Company
during a Performance Period, as determined by the Committee.

"Permitted Transferee"
means: (a) a member of the Optionholder's immediate family (child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former
spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including
adoptive relationships), any person sharing the Optionholder's household (other than a tenant or employee), a trust in which these persons
have more than 50% of the beneficial interest, a foundation in which these persons (or the Optionholder) control the management of assets,
and any other entity in which these persons (or the Optionholder) own more than 50% of the voting interests; (b) third parties designated
by the Committee in connection with a program established and approved by the Committee pursuant to which Participants may receive a cash
payment or other consideration in consideration for the transfer of a Non-qualified Stock Option; and (c) such other transferees as may
be permitted by the Committee in its sole discretion.

"Person" means a person
as defined in Section 13(d)(3) of the Exchange Act.

"Plan" means this Siebert
Financial Corp. 2021 Equity Incentive Plan, as amended and/or amended and restated from time to time.

"Related Rights" has
the meaning set forth in Section 7.

"Restricted Award"
means any Award granted pursuant to Section 8.

"Restricted Period"
has the meaning set forth in Section 8.

"Restricted Stock"
has the meaning set forth in Section 8.

"Restricted Stock Unit"
has the meaning set forth in Section 8.

"Rule 16b-3" means
Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time.

"Securities Act" means
the Securities Act of 1933, as amended.

"Stock Appreciation Right"
means the right pursuant to an Award granted under Section 7 to receive, upon exercise, an amount payable in cash or shares equal to the
number of shares subject to the Stock Appreciation Right that is being exercised multiplied by the excess of (a) the Fair Market Value
of a share of Common Stock on the date the Award is exercised, over (b) the exercise price specified in the Stock Appreciation Right Award
Agreement.

"Stock for Stock Exchange"
has the meaning set forth in Section 6.4.

    	7

     

    

 

"Subsidiary" means
a corporation other than the Company in an unbroken chain of corporations beginning with the Company if each of the corporations other
than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

"Substitute Award" has
the meaning set forth in Section 4.4.

"Ten Percent Shareholder"
means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than 10% of the total combined
voting power of all classes of stock of the Company or of any of its Affiliates.

"Total Share Reserve"
has the meaning set forth in Section 4.1.

3.            
Administration.

3.1             
Authority of Committee. The Plan shall be administered by the Committee or, in the Board's sole discretion, by the
Board. Subject to the terms of the Plan, the Committee's charter and Applicable Laws, and in addition to other express powers and authorization
conferred by the Plan, the Committee shall have the authority:

(a)              
to construe and interpret the Plan and apply its provisions;

(b)              
to promulgate, amend, and rescind rules and regulations relating to the administration of the Plan;

(c)              
to authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan;

(d)              
to delegate its authority to one or more Officers of the Company with respect to Awards that do not involve "insiders"
within the meaning of Section 16 of the Exchange Act;

(e)              
to determine when Awards are to be granted under the Plan and the applicable Grant Date;

(f)               
from time to time to select, subject to the limitations set forth in this Plan, those eligible Award recipients to whom Awards
shall be granted;

(g)              
to determine the number of shares of Common Stock to be made subject to each Award;

(h)              
to determine whether each Option is to be an Incentive Stock Option or a Non-qualified Stock Option;

(i)                
to prescribe the terms and conditions of each Award, including, without limitation, the exercise price and medium of payment and
vesting provisions, and to specify the provisions of the Award Agreement relating to such grant;

(j)                
to determine the target number of Performance Shares to be granted pursuant to a Performance Share Award, the performance measures
that will be used to establish the

    	8

     

    

Performance Goals, the Performance Period(s) and the number
of Performance Shares earned by a Participant;

(k)              
to amend any outstanding Awards, including for the purpose of modifying the time or manner of vesting, or the term of any outstanding
Award; provided, however, that if any such amendment impairs a Participant's rights or increases a Participant's obligations under
his or her Award or creates or increases a Participant's federal income tax liability with respect to an Award, such amendment shall also
be subject to the Participant's consent;

(l)                
to determine the duration and purpose of leaves of absences which may be granted to a Participant without constituting termination
of their employment for purposes of the Plan, which periods shall be no shorter than the periods generally applicable to Employees under
the Company's employment policies;

(m)            
to make decisions with respect to outstanding Awards that may become necessary upon a change in corporate control or an event that
triggers anti-dilution adjustments;

(n)              
to interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any
instrument or agreement relating to, or Award granted under, the Plan; and

(o)              
to exercise discretion to make any and all other determinations which it determines to be necessary or advisable for the administration
of the Plan.

The Committee also may modify the purchase
price or the exercise price of any outstanding Award, provided that if the modification effects a repricing, shareholder approval
shall be required before the repricing is effective.

3.2             
Committee Decisions Final. All decisions made by the Committee pursuant to the provisions of the Plan shall be final
and binding on the Company and the Participants.

3.3             
Delegation. The Committee or, if no Committee has been appointed, the Board may delegate administration of the Plan
to a committee or committees of one or more members of the Board, and the term "Committee" shall apply to any person
or persons to whom such authority has been delegated. The Committee shall have the power to delegate to a subcommittee any of the administrative
powers the Committee is authorized to exercise (and references in this Plan to the Board or the Committee shall thereafter be to the committee
or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time
to time by the Board. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan. The members
of the Committee shall be appointed by and serve at the pleasure of the Board. From time to time, the Board may increase or decrease the
size of the Committee, add additional members to, remove members (with or without cause) from, appoint new members in substitution therefor,
and fill vacancies, however caused, in the Committee. The Committee shall act pursuant to a vote of the majority of its members or, in
the case of a Committee comprised of only two members, the unanimous consent of its members, whether present or not, or by the written
consent of the majority of its members and minutes shall be kept of all of its meetings and copies thereof shall be provided to the Board.
Subject to the limitations prescribed by the Plan and the Board, the Committee may establish and follow such rules and regulations for
the conduct of its business as it may determine to be advisable.

    	9

     

    

3.4             
 Committee Composition. Except as otherwise determined by the Board, the Committee shall consist solely of two or
more Non-Employee Directors. The Board shall have discretion to determine whether or not it intends to comply with the exemption requirements
of Rule 16b-3. However, if the Board intends to satisfy such exemption requirements, with respect to any insider subject to Section 16
of the Exchange Act, the Committee shall be a compensation committee of the Board that at all times consists solely of two or more Non-Employee
Directors. Within the scope of such authority, the Board or the Committee may delegate to a committee of one or more members of the Board
who are not Non-Employee Directors the authority to grant Awards to eligible persons who are not then subject to Section 16 of the Exchange
Act. Nothing herein shall create an inference that an Award is not validly granted under the Plan in the event Awards are granted under
the Plan by a compensation committee of the Board that does not at all times consist solely of two or more Non-Employee Directors.

3.5             
Indemnification. In addition to such other rights of indemnification as they may have as Directors or members of
the Committee, and to the extent allowed by Applicable Laws, the Committee shall be indemnified by the Company against the reasonable
expenses, including attorney's fees, actually incurred in connection with any action, suit or proceeding or in connection with any appeal
therein, to which the Committee may be party by reason of any action taken or failure to act under or in connection with the Plan or any
Award granted under the Plan, and against all amounts paid by the Committee in settlement thereof (provided, however, that the
settlement has been approved by the Company, which approval shall not be unreasonably withheld) or paid by the Committee in satisfaction
of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit
or proceeding that such Committee did not act in good faith and in a manner which such person reasonably believed to be in the best interests
of the Company, or in the case of a criminal proceeding, had no reason to believe that the conduct complained of was unlawful; provided,
however, that within 60 days after the institution of any such action, suit or proceeding, such Committee shall, in writing, offer
the Company the opportunity at its own expense to handle and defend such action, suit or proceeding.

4.            
Shares Subject to the Plan.

4.1             
Subject to adjustment in accordance with Section 14, no more than 3 million shares of Common Stock shall
be available for the grant of Awards under the Plan (the "Total
Share Reserve"), all of which may be granted as Incentive Stock Options. During the terms of the Awards, the Company shall
keep available at all times the number of shares of Common Stock required to satisfy such Awards. Shares covered by an Award shall be
counted as used as of the Grant Date; provided that Awards that are valued by reference to shares of Common Stock but are required
to be paid in cash pursuant to their terms shall not be counted as used from the Total Share Reserve.

4.2             
Shares of Common Stock available for distribution under the Plan may consist, in whole or in part, of authorized and unissued shares,
treasury shares or shares reacquired by the Company in any manner.

4.3             
Any shares of Common Stock subject to an Award that expires or is canceled, forfeited, or terminated without issuance of the full
number of shares of Common Stock to which the Award related will again be available for issuance under the Plan. Notwithstanding anything
to the contrary contained herein: shares subject to an Award under the Plan shall not again be made available for issuance or delivery
under the Plan if such shares are (a) shares tendered in payment of

    	10

     

    

an Option, (b) shares delivered or withheld by the Company
to satisfy any tax withholding obligation, or (c) shares covered by a stock-settled Stock Appreciation Right or other Awards that were
not issued upon the settlement of the Award.

4.4             
Awards may, in the sole discretion of the Committee, be granted under the Plan in assumption of, or in substitution for, outstanding
awards previously granted by an entity acquired by the Company or with which the Company combines ("Substitute
Awards"). Substitute Awards shall not be counted against the Total Share Reserve; provided, that, Substitute Awards
issued in connection with the assumption of, or in substitution for, outstanding options intended to qualify as Incentive Stock Options
shall be counted against the Total Share Reserve available for Incentive Stock Options. Subject to applicable stock exchange requirements,
available shares under a shareholder-approved plan of an entity directly or indirectly acquired by the Company or with which the Company
combines (as appropriately adjusted to reflect such acquisition or transaction) may be used for Awards under the Plan and shall not count
toward the Total Share Reserve.

5.            
Eligibility.

5.1             
Eligibility for Specific Awards. Incentive Stock Options may be granted only to Employees. Awards other than Incentive
Stock Options may be granted to Employees, Consultants and Directors and those individuals whom the Committee determines are reasonably
expected to become Employees, Consultants and Directors following the Grant Date.

5.2             
Ten Percent Shareholders. A Ten Percent Shareholder shall not be granted an Incentive Stock Option unless the Option
Exercise Price is at least 110% of the Fair Market Value of the Common Stock on the Grant Date and the Option is not exercisable after
the expiration of five years from the Grant Date.

6.            
Option Provisions. Each Option granted under the Plan shall be evidenced
by an Award Agreement. Each Option so granted shall be subject to the conditions set forth in this Section 6, and to such other conditions
not inconsistent with the Plan as may be reflected in the applicable Award Agreement. All Options shall be separately designated Incentive
Stock Options or Non-qualified Stock Options at the time of grant, and, if certificates are issued, a separate certificate or certificates
will be issued for shares of Common Stock purchased on exercise of each type of Option. Notwithstanding the foregoing, the Company shall
have no liability to any Participant or any other person if an Option designated as an Incentive Stock Option fails to qualify as such
at any time or if an Option is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A
of the Code and the terms of such Option do not satisfy the requirements of Section 409A of the Code. The provisions of separate Options
need not be identical, but each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise)
the substance of each of the following provisions:

6.1             
Term. Subject to the provisions of Section 5.2 regarding Ten Percent Shareholders, no Incentive Stock Option shall
be exercisable after the expiration of 10 years from the Grant Date. The term of a Non-qualified Stock Option granted under the Plan shall
be determined by the Committee; provided, however, no Non-qualified Stock Option shall be exercisable after the expiration of 10
years from the Grant Date.

6.2             
Exercise
Price of an Incentive Stock Option. Subject to the provisions of Section 5.2 regarding Ten Percent Shareholders, the Option
Exercise Price of each Incentive Stock Option shall be not less than 100% of the Fair Market Value of the Common Stock subject to the
Option on the

    	11

     

    

 

Grant Date. Notwithstanding the foregoing,
an Incentive Stock Option may be granted with an Option Exercise Price lower than that set forth in the preceding sentence if such Option
is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the
Code.

6.3             
Exercise Price of a Non-qualified Stock Option. The Option Exercise Price of each Non-qualified Stock Option shall
be not less than 100% of the Fair Market Value of the Common Stock subject to the Option on the Grant Date. Notwithstanding the foregoing,
a Non-qualified Stock Option may be granted with an Option Exercise Price lower than that set forth in the preceding sentence if such
Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 409A of
the Code.

6.4             
Consideration. The Option Exercise Price of Common Stock acquired pursuant to an Option shall be paid, to the extent
permitted by applicable statutes and regulations, either (a) in cash or by certified or bank check at the time the Option is exercised
or (b) in the discretion of the Committee, upon such terms as the Committee shall approve, the Option Exercise Price may be paid: (i)
by delivery to the Company of other Common Stock, duly endorsed for transfer to the Company, with a Fair Market Value on the date of delivery
equal to the Option Exercise Price (or portion thereof) due for the number of shares being acquired, or by means of attestation whereby
the Participant identifies for delivery specific shares of Common Stock that have an aggregate Fair Market Value on the date of attestation
equal to the Option Exercise Price (or portion thereof) and receives a number of shares of Common Stock equal to the difference between
the number of shares thereby purchased and the number of identified attestation shares of Common Stock (a "Stock for Stock Exchange");
(ii) a "cashless" exercise program established with a broker; (iii) by reduction in the number of shares of Common Stock otherwise
deliverable upon exercise of such Option with a Fair Market Value equal to the aggregate Option Exercise Price at the time of exercise;
(iv) by any combination of the foregoing methods; or (v) in any other form of legal consideration that may be acceptable to the Committee.
Unless otherwise specifically provided in the Option, the exercise price of Common Stock acquired pursuant to an Option that is paid by
delivery (or attestation) to the Company of other Common Stock acquired, directly or indirectly from the Company, shall be paid only by
shares of the Common Stock of the Company that have been held for more than six months (or such longer or shorter period of time required
to avoid a charge to earnings for financial accounting purposes). Notwithstanding the foregoing, during any period for which the Common
Stock is publicly traded (i.e., the Common Stock is listed on any established stock exchange or a national market system) an exercise
by a Director or Officer that involves or may involve a direct or indirect extension of credit or arrangement of an extension of credit
by the Company, directly or indirectly, in violation of Section 402(a) of the Sarbanes-Oxley Act of 2002 shall be prohibited with respect
to any Award under this Plan.

6.5             
Transferability of an Incentive Stock Option. An Incentive Stock Option shall not be transferable except by will
or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder (or,
in the event of legal incapacity or incompetency, the Optionholder’s guardian or legal representative). Notwithstanding the foregoing,
the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who,
in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option.

6.6             
Transferability of a Non-qualified Stock Option. A Non-qualified Stock Option may, in the sole discretion of the
Committee, be transferable to a Permitted Transferee, upon written

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approval by the Committee to the extent provided in the
Award Agreement. If the Non-qualified Stock Option does not provide for transferability, then the Non-qualified Stock Option shall not
be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder
only by the Optionholder (or, in the event of legal incapacity or incompetency, the Optionholder’s guardian or legal representative).
Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company,
designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option.

6.7             
Vesting
of Options. Each Option may, but need not, vest and therefore become exercisable in periodic installments that may, but need
not, be equal. The Option may be subject to such other terms and conditions on the time or times when it may be exercised (which may be
based on performance or other criteria) as the Committee may deem appropriate. The vesting provisions of individual Options may vary.
No Option may be exercised for a fraction of a share of Common Stock. The Committee may, but shall not be required to, provide for an
acceleration of vesting and exercisability in the terms of any Award Agreement upon the occurrence of a specified event.

6.8             
Termination of Continuous Service. Unless otherwise provided in an Award Agreement or in an employment agreement
the terms of which have been approved by the Committee, in the event an Optionholder's Continuous Service terminates (other than upon
the Optionholder's death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled
to exercise such Option as of the date of termination) but only within such period of time ending on the earlier of (a) the date three
months following the termination of the Optionholder's Continuous Service or (b) the expiration of the term of the Option as set forth
in the Award Agreement; provided that, if the termination of Continuous Service is by the Company for Cause, all outstanding Options
(whether or not vested) shall immediately terminate and cease to be exercisable. If, after termination, the Optionholder does not exercise
his or her Option within the time specified in the Award Agreement, the Option shall terminate.

6.9             
Extension of Termination Date. An Optionholder's Award Agreement may also provide that if the exercise of the Option
following the termination of the Optionholder's Continuous Service for any reason would be prohibited at any time because the issuance
of shares of Common Stock would violate the registration requirements under the Securities Act or any other state or federal securities
law or the rules of any securities exchange or interdealer quotation system, then the Option shall terminate on the earlier of (a) the
expiration of the term of the Option in accordance with Section 6.1 or (b) the expiration of a period after termination of the Participant's
Continuous Service that is three months after the end of the period during which the exercise of the Option would be in violation of such
registration or other securities law requirements.

6.10         
Disability of Optionholder. Unless otherwise provided in an Award Agreement, in the event that an Optionholder's
Continuous Service terminates as a result of the Optionholder's Disability, the Optionholder may exercise his or her Option (to the extent
that the Optionholder was entitled to exercise such Option as of the date of termination), but only within such period of time ending
on the earlier of (a) the date 12 months following such termination or (b) the expiration of the term of the Option as set forth in the
Award Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified herein or in the
Award Agreement, the Option shall terminate.

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6.11         
 Death of Optionholder. Unless otherwise provided in an Award Agreement, in the event an Optionholder's Continuous
Service terminates as a result of the Optionholder's death, then the Option may be exercised (to the extent the Optionholder was entitled
to exercise such Option as of the date of death) by the Optionholder's estate, by a person who acquired the right to exercise the Option
by bequest or inheritance or by a person designated to exercise the Option upon the Optionholder's death, but only within the period ending
on the earlier of (a) the date 12 months following the date of death or (b) the expiration of the term of such Option as set forth in
the Award Agreement. If, after the Optionholder's death, the Option is not exercised within the time specified herein or in the Award
Agreement, the Option shall terminate.

6.12         
Incentive Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market Value (determined at the
time of grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during
any calendar year (under all plans of the Company and its Affiliates) exceeds $100,000, the Options or portions thereof which exceed such
limit (according to the order in which they were granted) shall be treated as Non-qualified Stock Options.

7.            
Stock
Appreciation Rights. Each Stock Appreciation Right granted under the Plan shall be evidenced by an Award Agreement. Each Stock
Appreciation Right so granted shall be subject to the conditions set forth in this Section 7, and to such other conditions not inconsistent
with the Plan as may be reflected in the applicable Award Agreement. Stock Appreciation Rights may be granted alone ("Free Standing
Rights") or in tandem with an Option granted under the Plan ("Related Rights").

7.1             
Grant Requirements for Related Rights.  Any Related Right that relates to a Non-qualified Stock Option may be
granted at the same time the Option is granted or at any time thereafter but before the exercise or expiration of the Option. Any Related
Right that relates to an Incentive Stock Option must be granted at the same time the Incentive Stock Option is granted.

7.2             
Term
The term of a Stock Appreciation Right granted under the Plan shall be determined by the Committee; provided, however, no Stock
Appreciation Right shall be exercisable later than the tenth anniversary of the Grant Date.

7.3             
Vesting

Each Stock Appreciation Right may, but
need not, vest and therefore become exercisable in periodic installments that may, but need not, be equal. The Stock Appreciation Right
may be subject to such other terms and conditions on the time or times when it may be exercised as the Committee may deem appropriate.
The vesting provisions of individual Stock Appreciation Rights may vary. No Stock Appreciation Right may be exercised for a fraction of
a share of Common Stock. The Committee may, but shall not be required to, provide for an acceleration of vesting and exercisability in
the terms of any Stock Appreciation Right upon the occurrence of a specified event.

7.4             
Exercise
and Payment Upon exercise of a Stock Appreciation Right, the holder shall be entitled to receive from the Company an amount
equal to the number of shares of Common Stock subject to the Stock Appreciation Right that is being exercised multiplied by the excess
of (i) the Fair Market Value of a share of Common Stock on the date the Award is exercised, over (ii) the exercise price specified in
the Stock Appreciation Right or related Option. Payment with respect to the exercise of a Stock Appreciation Right shall be made on the
date of exercise. Payment shall be made in the form of shares of Common Stock (with or without restrictions as to substantial risk of

    	14

     

    

 

forfeiture and transferability, as determined
by the Committee in its sole discretion), cash or a combination thereof, as determined by the Committee.

7.5             
Exercise
Price The exercise price of a Free Standing Right shall be determined by the Committee, but shall not be less than 100% of
the Fair Market Value of one share of Common Stock on the Grant Date of such Stock Appreciation Right. A Related Right granted simultaneously
with or subsequent to the grant of an Option and in conjunction therewith or in the alternative thereto shall have the same exercise price
as the related Option, shall be transferable only upon the same terms and conditions as the related Option, and shall be exercisable only
to the same extent as the related Option; provided, however, that a Stock Appreciation Right, by its terms, shall be exercisable
only when the Fair Market Value per share of Common Stock subject to the Stock Appreciation Right and related Option exceeds the exercise
price per share thereof and no Stock Appreciation Rights may be granted in tandem with an Option unless the Committee determines that
the requirements of Section 7.1 are satisfied.

7.6             
Reduction
in the Underlying Option Shares Upon any exercise of a Related Right, the number of shares of Common Stock for which any related
Option shall be exercisable shall be reduced by the number of shares for which the Stock Appreciation Right has been exercised. The number
of shares of Common Stock for which a Related Right shall be exercisable shall be reduced upon any exercise of any related Option by the
number of shares of Common Stock for which such Option has been exercised.

7.7             
Transferability of Stock Appreciation Rights. A Participant’s Stock Appreciation Rights may, in the sole discretion
of the Committee, be transferable to a Permitted Transferee, upon written approval by the Committee to the extent provided in the Award
Agreement. If the Award Agreement does not provide for transferability, then the Stock Appreciation Rights shall not be transferable except
by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the Participant
(or, in the event of legal incapacity or incompetency, the Participant’s guardian or legal representative). Notwithstanding the
foregoing, the Participant may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third
party who, in the event of the death of the Participant, shall thereafter be entitled to exercise the Stock Appreciation Rights.

7.8             
Termination of Continuous Service. Unless otherwise provided in an Award Agreement or in an employment agreement the terms
of which have been approved by the Committee, in the event a Participant’s Continuous Service terminates (other than upon the Participant's
death or Disability), the Participant may exercise his or her Stock Appreciation Rights (to the extent that the Participant was entitled
to exercise such Stock Appreciation Rights as of the date of termination) but only within such period of time ending on the earlier of
(a) the date three months following the termination of the Participant's Continuous Service or (b) the expiration of the term of the Stock
Appreciation Rights as set forth in the Award Agreement; provided that, if the termination of Continuous Service is by the Company for
Cause, all outstanding Stock Appreciation Rights (whether or not vested) shall immediately terminate and cease to be exercisable. If,
after termination, the Participant does not exercise his or her Stock Appreciation Rights within the time specified in the Award Agreement,
the Stock Appreciation Rights shall terminate.

7.9             
Disability of Participant. Unless otherwise provided in an Award Agreement, in the event that an Participant's Continuous
Service terminates as a result of the Participant's Disability, the Participant may exercise his or her Stock Appreciation Rights (to
the extent that the Participant

    	15

     

    

was entitled to exercise such Stock Appreciation Rights
as of the date of termination), but only within such period of time ending on the earlier of (a) the date 12 months following such termination
or (b) the expiration of the term of the Stock Appreciation Rights as set forth in the Award Agreement. If, after termination, the Participant
does not exercise his or her Stock Appreciation Rights within the time specified herein or in the Award Agreement, the Stock Appreciation
Rights shall terminate.

7.10         
Death
of Participant. Unless otherwise provided in an Award Agreement, in the event an Participant's Continuous Service terminates as a
result of the Participant's death, then the Stock Appreciation Rights may be exercised (to the extent the Participant was entitled to
exercise such Stock Appreciation Rights as of the date of death) by the Participant's estate, by a person who acquired the right to exercise
the Stock Appreciation Rights by bequest or inheritance or by a person designated to exercise the Stock Appreciation Rights upon the Participant's
death, but only within the period ending on the earlier of (a) the date 12 months following the date of death or (b) the expiration of
the term of such Stock Appreciation Rights as set forth in the Award Agreement. If, after the Participant's death, the Stock Appreciation
Rights are not exercised within the time specified herein or in the Award Agreement, the Stock Appreciation Rights shall terminate.

8.            
Restricted
Awards A Restricted Award is an Award of actual shares of Common Stock ("Restricted Stock") or hypothetical
Common Stock units ("Restricted Stock Units") having a value equal to the Fair Market Value of an identical number of
shares of Common Stock, which shall provide that such Restricted Award may not be sold, assigned, transferred or otherwise disposed of,
pledged or hypothecated as collateral for a loan or as security for the performance of any obligation or for any other purpose for such
period (the "Restricted Period") as the Committee shall determine. Each Restricted Award granted under the Plan shall
be evidenced by an Award Agreement. Each Restricted Award so granted shall be subject to the conditions set forth in this Section 8, and
to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement.

8.1             
Restricted
Stock and Restricted Stock Units

(a)              
Each Participant granted Restricted Stock shall execute and deliver to the Company an Award Agreement with respect to the Restricted
Stock setting forth the restrictions and other terms and conditions applicable to such Restricted Stock. If the Committee determines that
the Restricted Stock shall be held by the Company or in escrow rather than delivered to the Participant pending the release of the applicable
restrictions, the Committee may require the Participant to additionally execute and deliver to the Company (A) an escrow agreement satisfactory
to the Committee, if applicable and (B) the appropriate blank stock power with respect to the Restricted Stock covered by such agreement.
If a Participant fails to execute an agreement evidencing an Award of Restricted Stock and, if applicable, an escrow agreement and stock
power, the Award shall be null and void. Subject to the restrictions set forth in the Award, the Participant generally shall have the
rights and privileges of a shareholder as to such Restricted Stock, including the right to vote such Restricted Stock and the right to
receive dividends; provided that, only to the extent specifically provided in the applicable Award Agreement, any cash dividends
and stock dividends with respect to the Restricted Stock shall be withheld by the Company for the Participant's account, and interest
may be credited on the amount of the cash dividends withheld at a rate and subject to such terms as determined by the Committee. The cash
dividends or stock dividends so withheld by the Committee and attributable to any particular share of Restricted Stock (and earnings thereon,
if applicable) shall, unless otherwise set forth

    	16

     

    

in an applicable Award Agreement, be distributed to the
Participant in cash or, at the discretion of the Committee, in shares of Common Stock having a Fair Market Value equal to the amount of
such dividends, if applicable, upon the release of restrictions on such share and, if such share is forfeited, the Participant shall have
no right to such dividends.

(b)              
The terms and conditions of a grant of Restricted Stock Units shall be reflected in an Award Agreement. No shares of Common Stock
shall be issued at the time a Restricted Stock Unit is granted, and the Company will not be required to set aside funds for the payment
of any such Award. A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder. The Committee
may also grant Restricted Stock Units with a deferral feature, whereby settlement is deferred beyond the vesting date until the occurrence
of a future payment date or event set forth in an Award Agreement ("Deferred Stock Units"). At the discretion of the
Committee, each Restricted Stock Unit or Deferred Stock Unit (representing one share of Common Stock) may be credited with an amount equal
to the cash and stock dividends paid by the Company in respect of one share of Common Stock ("Dividend Equivalents").
Unless otherwise set forth in an applicable Award Agreement, Dividend Equivalents shall not vest or become payable unless and until the
Restricted Stock Units to which the Dividend Equivalents correspond become vested and nonforfeitable.

8.2             
Restrictions

(a)              
Restricted Stock awarded to a Participant shall be subject to the following restrictions until the expiration of the Restricted
Period, and to such other terms and conditions as may be set forth in the applicable Award Agreement: (A) if an escrow arrangement is
used, the Participant shall not be entitled to delivery of the stock certificate; (B) the shares shall be subject to the restrictions
on transferability set forth in the Award Agreement; (C) the shares shall be subject to forfeiture to the extent provided in the applicable
Award Agreement; and (D) to the extent such shares are forfeited, the stock certificates shall be returned to the Company, and all rights
of the Participant to such shares and as a shareholder with respect to such shares shall terminate without further obligation on the part
of the Company. Unless the Committee otherwise provides in an Award Agreement or in writing after the Award Agreement is issued, upon
the termination of the Participant’s Continuous Service, any shares of Restricted Stock held by such Participant that have not vested,
or with respect to which Restriction Period has not expired, shall immediately be deemed forfeited. Upon forfeiture of a Participant’s
Restricted Stock, the Participant shall have no further rights with respect to such Award, including but not limited to any right to vote
Restricted Stock or any right to receive dividends with respect to shares of Restricted Stock.

(b)              
Restricted Stock Units and Deferred Stock Units awarded to any Participant shall be subject to (A) forfeiture until the expiration
of the Restricted Period, and satisfaction of any applicable Performance Goals during such period, to the extent provided in the applicable
Award Agreement, and to the extent such Restricted Stock Units or Deferred Stock Units are forfeited, all rights of the Participant to
such Restricted Stock Units or Deferred Stock Units shall terminate without further obligation on the part of the Company and (B) such
other terms and conditions as may be set forth in the applicable Award Agreement. Unless the Committee otherwise provides in an Award
Agreement or in writing after the Award Agreement is issued, upon the termination of the Participant’s Continuous Service,

    	17

     

    

any Restricted Stock Units held by such Participant that
have not vested, or with respect to which Restriction Period has not expired, shall immediately be deemed forfeited. Upon forfeiture of
a Participant’s Restricted Stock Units, the Participant shall have no further rights with respect to such Award, including but not
limited to any right to receive dividends or Dividend Equivalents with respect to shares of Restricted Stock.

(c)              
The Committee shall have the authority to remove any or all of the restrictions on the Restricted Stock, Restricted Stock Units
and Deferred Stock Units whenever it may determine that, by reason of changes in Applicable Laws or other changes in circumstances arising
after the date the Restricted Stock or Restricted Stock Units or Deferred Stock Units are granted, such action is appropriate.

8.3             
Restricted
Period

With respect to Restricted Awards, the
Restricted Period shall commence on the Grant Date and end at the time or times set forth on a schedule established by the Committee in
the applicable Award Agreement.

No Restricted Award may be granted or
settled for a fraction of a share of Common Stock. The Committee may, but shall not be required to, provide for an acceleration of vesting
in the terms of any Award Agreement upon the occurrence of a specified event.

8.4             
Delivery
of Restricted Stock and Settlement of Restricted Stock Units Upon the expiration of the Restricted Period with respect to any
shares of Restricted Stock, the restrictions set forth in Section 8.2 and the applicable Award Agreement shall be of no further force
or effect with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow arrangement is used, upon such
expiration, the Company shall deliver to the Participant, or his or her beneficiary, without charge, the stock certificate evidencing
the shares of Restricted Stock which have not then been forfeited and with respect to which the Restricted Period has expired (to the
nearest full share) and any cash dividends or stock dividends credited to the Participant's account with respect to such Restricted Stock
and the interest thereon, if any. Upon the expiration of the Restricted Period with respect to any outstanding Restricted Stock Units,
or at the expiration of the deferral period with respect to any outstanding Deferred Stock Units, the Company shall deliver to the Participant,
or his or her beneficiary, without charge, one share of Common Stock for each such outstanding vested Restricted Stock Unit or Deferred
Stock Unit ("Vested Unit") and cash equal to any Dividend Equivalents credited with respect to each such Vested Unit
in accordance with Section 8.1(b) hereof and the interest thereon or, at the discretion of the Committee, in shares of Common Stock having
a Fair Market Value equal to such Dividend Equivalents and the interest thereon, if any; provided, however, that, if explicitly
provided in the applicable Award Agreement, the Committee may, in its sole discretion, elect to pay cash or part cash and part Common
Stock in lieu of delivering only shares of Common Stock for Vested Units. If a cash payment is made in lieu of delivering shares of Common
Stock, the amount of such payment shall be equal to the Fair Market Value of the Common Stock as of the date on which the Restricted Period
lapsed in the case of Restricted Stock Units, or the delivery date in the case of Deferred Stock Units, with respect to each Vested Unit.

8.5             
Stock
Restrictions Each certificate representing Restricted Stock awarded under the Plan shall bear a legend in such form as the
Company deems appropriate.

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9.            
 Performance
Share Awards Each Performance Share Award granted under the Plan shall be evidenced by an Award Agreement. Each Performance
Share Award so granted shall be subject to the conditions set forth in this Section 9, and to such other conditions not inconsistent with
the Plan as may be reflected in the applicable Award Agreement. The Committee shall have the discretion to determine: (i) the number of
shares of Common Stock or stock-denominated units subject to a Performance Share Award granted to any Participant; (ii) the Performance
Period applicable to any Award; (iii) the conditions that must be satisfied for a Participant to earn an Award; and (iv) the other terms,
conditions and restrictions of the Award.

9.1             
Earning
Performance Share Awards The number of Performance Shares earned by a Participant will depend on the extent to which the performance
goals established by the Committee are attained within the applicable Performance Period, as determined by the Committee.

10.        
Other Equity-Based Awards and Cash Awards The Committee may grant Other
Equity-Based Awards, either alone or in tandem with other Awards, in such amounts and subject to such conditions as the Committee shall
determine in its sole discretion. Each Equity-Based Award shall be evidenced by an Award Agreement and shall be subject to such conditions,
not inconsistent with the Plan, as may be reflected in the applicable Award Agreement. The Committee may grant Cash Awards in such amounts
and subject to such Performance Goals, other vesting conditions, and such other terms as the Committee determines in its discretion. Cash
Awards shall be evidenced in such form as the Committee may determine.

11.        
Securities
Law Compliance. Each Award Agreement shall provide that no shares of Common Stock shall be purchased or sold thereunder unless
and until (a) any then applicable requirements of state or federal laws and regulatory agencies have been fully complied with to the satisfaction
of the Company and its counsel and (b) if required to do so by the Company, the Participant has executed and delivered to the Company
a letter of investment intent in such form and containing such provisions as the Committee may require. The Company shall use reasonable
efforts to seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required
to grant Awards and to issue and sell shares of Common Stock upon exercise of the Awards; provided, however, that this undertaking
shall not require the Company to register under the Securities Act the Plan, any Award or any Common Stock issued or issuable pursuant
to any such Award. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority
which counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved
from any liability for failure to issue and sell Common Stock upon exercise of such Awards unless and until such authority is obtained.

12.        
Use of Proceeds from Stock. Proceeds from the sale of Common Stock pursuant
to Awards, or upon exercise thereof, shall constitute general funds of the Company.

13.        
Miscellaneous.

13.1         
Shareholder Rights. Except as provided in the Plan or an Award Agreement, no Participant shall be deemed to be the
holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to such Award unless and until
such Participant has satisfied all requirements for exercise of the Award pursuant to its terms and no adjustment shall be made for dividends
(ordinary or extraordinary, whether in cash, securities or other property) or distributions of other rights for which the record date
is prior to the date such Common Stock certificate is issued, except as provided in Section 14 hereof.

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13.2         
 No Employment or Other Service Rights. Nothing in the Plan or any instrument executed or Award granted pursuant
thereto shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the
time the Award was granted or shall affect the right of the Company or an Affiliate to terminate (a) the employment of an Employee with
or without notice and with or without Cause or (b) the service of a Director pursuant to the By-laws of the Company or an Affiliate, and
any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.

13.3         
Transfer; Approved Leave of Absence. For purposes of the Plan, no termination of employment by an Employee shall
be deemed to result from either (a) a transfer of employment to the Company from an Affiliate or from the Company to an Affiliate, or
from one Affiliate to another, or (b) an approved leave of absence for military service or sickness, or for any other purpose approved
by the Company, if the Employee's right to reemployment is guaranteed either by a statute or by contract or under the policy pursuant
to which the leave of absence was granted or if the Committee otherwise so provides in writing, in either case, except to the extent inconsistent
with Section 409A of the Code if the applicable Award is subject thereto.

13.4         
Withholding Obligations. To the extent provided by the terms of an Award Agreement and subject to the discretion
of the Committee, the Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition
of Common Stock under an Award by any of the following means (in addition to the Company's right to withhold from any compensation paid
to the Participant by the Company) or by a combination of such means: (a) tendering a cash payment; (b) authorizing the Company to withhold
shares of Common Stock from the shares of Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition
of Common Stock under the Award, provided, however, that no shares of Common Stock are withheld with a value exceeding the maximum
amount of tax required to be withheld by law; or (c) delivering to the Company previously owned and unencumbered shares of Common Stock
of the Company.

14.        
Adjustments Upon Changes in Stock. In the event of changes in the outstanding
Common Stock or in the capital structure of the Company by reason of any stock or extraordinary cash dividend, stock split, reverse stock
split, an extraordinary corporate transaction such as any recapitalization, reorganization, merger, consolidation, combination, exchange,
or other relevant change in capitalization occurring after the Grant Date of any Award, Awards granted under the Plan and any Award Agreements,
the exercise price of Options and Stock Appreciation Rights, the Performance Goals to which Performance Share Awards and Cash Awards are
subject, the Total Share Reserve will be equitably adjusted or substituted, as to the number, price or kind of a share of Common Stock
or other consideration subject to such Awards to the extent necessary to preserve the economic intent of such Award. In the case of adjustments
made pursuant to this Section 14, unless the Committee specifically determines that such adjustment is in the best interests of the Company
or its Affiliates, the Committee shall, in the case of Incentive Stock Options, ensure that any adjustments under this Section 14 will
not constitute a modification, extension or renewal of the Incentive Stock Options within the meaning of Section 424(h)(3) of the Code
and in the case of Non-qualified Stock Options, ensure that any adjustments under this Section 14 will not constitute a modification of
such Non-qualified Stock Options within the meaning of Section 409A of the Code. Any adjustments made under this Section 14 shall be made
in a manner which does not adversely affect the exemption provided pursuant to Rule 16b-3 under the Exchange Act. The Company shall give
each Participant notice of an adjustment hereunder and, upon notice, such adjustment shall be conclusive and binding for all purposes.

    	20

     

    

15.        
 Effect of Change in Control.

15.1         
Unless otherwise provided in an Award Agreement, notwithstanding any provision of the Plan to the contrary, the following shall
occur (i) upon a Change in Control with respect to Awards not assumed, substituted, or continued as a result of such Change in Control,
and (ii) with Awards of assumed, substituted, or continued as a result of a Change in Control, upon the termination of the Participant’s
Continuous Service within twelve (12) months after the date of the Change in Control other than a termination for Cause or a resignation
without Good Reason:

(a)              
All outstanding Options and Stock Appreciation Rights shall become immediately exercisable with respect to 100% of the shares subject
to such Options or Stock Appreciation Rights, and/or the Restricted Period shall expire immediately with respect to 100% of the outstanding
shares of Restricted Stock or Restricted Stock Units.

(b)              
With respect to Performance Share Awards and Cash Awards, all incomplete Performance Periods in respect of such Awards shall end
and the Committee shall (i) determine the extent to which Performance Goals with respect to each such Performance Period have been met
based upon such audited or unaudited financial information then available as it deems relevant and (ii) cause to be paid to the applicable
Participant partial or full Awards with respect to Performance Goals for each such Performance Period based upon the Committee's determination
of the degree of attainment of Performance Goals or, if not determinable, assuming that the applicable "target" levels of performance
have been attained, or on such other basis determined by the Committee.

15.2         
In addition, in the event of a Change in Control, the Committee may in its discretion and upon at least 10 days' advance notice
to the affected persons, cancel any outstanding Awards and pay to the holders thereof, in cash or stock, or any combination thereof, the
value of such Awards based upon the price per share of Common Stock received or to be received by other shareholders of the Company in
the event. In the case of any Option or Stock Appreciation Right with an exercise price (or SAR Exercise Price in the case of a Stock
Appreciation Right) that equals or exceeds the price paid for a share of Common Stock in connection with the Change in Control, the Committee
may cancel the Option or Stock Appreciation Right without the payment of consideration therefor.

15.3         
The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the
merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to all or substantially
all of the assets and business of the Company and its Affiliates, taken as a whole.

16.        
Amendment of the Plan and Awards.

16.1         
Amendment of Plan. The Board at any time, and from time to time, may amend or terminate the Plan. However, except
as provided in Section 14 relating to adjustments upon changes in Common Stock and Section 16.3, no amendment shall be effective unless
approved by the shareholders of the Company to the extent shareholder approval is necessary to satisfy any Applicable Laws. At the time
of such amendment, the Board shall determine, upon advice from counsel, whether such amendment will be contingent on shareholder approval.

16.2         
Shareholder Approval. The Board may, in its sole discretion, submit any other amendment to the Plan for shareholder
approval.

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16.3         
 Contemplated Amendments. It is expressly contemplated that the Board may amend the Plan in any respect the Board
deems necessary or advisable to provide eligible Employees, Consultants and Directors with the maximum benefits provided or to be provided
under the provisions of the Code and the regulations promulgated thereunder relating to Incentive Stock Options or to the nonqualified
deferred compensation provisions of Section 409A of the Code and/or to bring the Plan and/or Awards granted under it into compliance therewith.

16.4         
No Impairment of Rights. Rights under any Award granted before amendment of the Plan shall not be impaired by any
amendment of the Plan unless (a) the Company requests the consent of the Participant and (b) the Participant consents in writing.

16.5         
Amendment of Awards. The Committee at any time, and from time to time, may amend the terms of any one or more Awards;
provided, however, that the Committee may not affect any amendment which would otherwise constitute an impairment of the rights
under any Award unless (a) the Company requests the consent of the Participant and (b) the Participant consents in writing.

17.        
General Provisions.

17.1         
Forfeiture Events. The Committee may specify in an Award Agreement that the Participant's rights, payments and benefits
with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain events,
in addition to applicable vesting conditions of an Award. Such events may include, without limitation, breach of non-competition, non-solicitation,
confidentiality, or other restrictive covenants that are contained in the Award Agreement or otherwise applicable to the Participant,
a termination of the Participant's Continuous Service for Cause, or other conduct by the Participant that is detrimental to the business
or reputation of the Company and/or its Affiliates.

17.2         
Clawback. Notwithstanding any other provisions in this Plan, the Company may cancel any Award, require reimbursement
of any Award by a Participant, and effect any other right of recoupment of equity or other compensation provided under the Plan in accordance
with any Company policies that may be adopted and/or modified from time to time ("Clawback Policy"). In addition, a Participant
may be required to repay to the Company previously paid compensation, whether provided pursuant to the Plan or an Award Agreement, in
accordance with the Clawback Policy. By accepting an Award, the Participant is agreeing to be bound by the Clawback Policy, as in effect
or as may be adopted and/or modified from time to time by the Company in its discretion (including, without limitation, to comply with
applicable law or stock exchange listing requirements).

17.3         
Other Compensation Arrangements. Nothing contained in this Plan shall prevent the Board from adopting other or additional
compensation arrangements, subject to shareholder approval if such approval is required; and such arrangements may be either generally
applicable or applicable only in specific cases.

17.4         
Sub-Plans. The Committee may from time to time establish sub-plans under the Plan for purposes of satisfying securities,
tax or other laws of various jurisdictions in which the Company intends to grant Awards. Any sub-plans shall contain such limitations
and other terms and conditions as the Committee determines are necessary or desirable. All sub-plans shall be deemed a part of the Plan,
but each sub-plan shall apply only to the Participants in the jurisdiction for which the sub-plan was designed.

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17.5         
 Deferral of Awards. The Committee may establish one or more programs under the Plan to permit selected Participants
the opportunity to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event
that absent the election would entitle the Participant to payment or receipt of shares of Common Stock or other consideration under an
Award. The Committee may establish the election procedures, the timing of such elections, the mechanisms for payments of, and accrual
of interest or other earnings, if any, on amounts, shares or other consideration so deferred, and such other terms, conditions, rules
and procedures that the Committee deems advisable for the administration of any such deferral program.

17.6         
Unfunded Plan. The Plan shall be unfunded. Neither the Company, the Board nor the Committee shall be required to
establish any special or separate fund or to segregate any assets to assure the performance of its obligations under the Plan.

17.7         
Recapitalizations. Each Award Agreement shall contain provisions required to reflect the provisions of Section 14.

17.8         
Delivery. Upon exercise of a right granted under this Plan, the Company shall issue Common Stock or pay any amounts
due within a reasonable period of time thereafter. Subject to any statutory or regulatory obligations the Company may otherwise have,
for purposes of this Plan, 30 days shall be considered a reasonable period of time.

17.9         
No Fractional Shares. No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan. The
Committee shall determine whether cash, additional Awards or other securities or property shall be issued or paid in lieu of fractional
shares of Common Stock or whether any fractional shares should be rounded, forfeited or otherwise eliminated.

17.10     
Other Provisions. The Award Agreements authorized under the Plan may contain such other provisions not inconsistent
with this Plan, including, without limitation, restrictions upon the exercise of Awards, as the Committee may deem advisable.

17.11     
Section 409A. The Plan is intended to comply with Section 409A of the Code to the extent subject thereto, and, accordingly,
to the maximum extent permitted, the Plan shall be interpreted and administered to be in compliance therewith. Any payments described
in the Plan that are due within the "short-term deferral period" as defined in Section 409A of the Code shall not be treated
as deferred compensation unless Applicable Laws require otherwise. Notwithstanding anything to the contrary in the Plan, to the extent
required to avoid accelerated taxation and tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits
that would otherwise be provided pursuant to the Plan during the six (6) month period immediately following the Participant's termination
of Continuous Service shall instead be paid on the first payroll date after the six-month anniversary of the Participant's separation
from service (or the Participant's death, if earlier). Notwithstanding the foregoing, neither the Company nor the Committee shall have
any obligation to take any action to prevent the assessment of any additional tax or penalty on any Participant under Section 409A of
the Code and neither the Company nor the Committee will have any liability to any Participant for such tax or penalty.

17.12     
Disqualifying
Dispositions. Any Participant who shall make a "disposition" (as defined in Section 424 of the Code) of all or any
portion of shares of Common Stock acquired upon exercise of an Incentive Stock Option within two years from the Grant Date of such Incentive
Stock Option or within one year after the issuance of the shares of Common Stock acquired upon exercise of such Incentive Stock Option
(a "Disqualifying Disposition") shall be required to immediately

    	23

     

    

 

advise the Company in writing as to the
occurrence of the sale and the price realized upon the sale of such shares of Common Stock.

17.13     
Section 16. It is the intent of the Company that the Plan satisfy, and be interpreted in a manner that satisfies,
the applicable requirements of Rule 16b-3 as promulgated under Section 16 of the Exchange Act so that Participants will be entitled to
the benefit of Rule 16b-3, or any other rule promulgated under Section 16 of the Exchange Act, and will not be subject to short-swing
liability under Section 16 of the Exchange Act. Accordingly, if the operation of any provision of the Plan would conflict with the intent
expressed in this Section 17.13, such provision to the extent possible shall be interpreted and/or deemed amended so as to avoid such
conflict.

17.14     
Beneficiary Designation. Each Participant under the Plan may from time to time name any beneficiary or beneficiaries
by whom any right under the Plan is to be exercised in case of such Participant's death. Each designation will revoke all prior designations
by the same Participant, shall be in a form reasonably prescribed by the Committee and shall be effective only when filed by the Participant
in writing with the Company during the Participant's lifetime.

17.15     
Expenses. The costs of administering the Plan shall be paid by the Company.

17.16     
Severability. If any of the provisions of the Plan or any Award Agreement is held to be invalid, illegal or unenforceable,
whether in whole or in part, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality
or unenforceability and the remaining provisions shall not be affected thereby.

17.17     
Plan Headings. The headings in the Plan are for purposes of convenience only and are not intended to define or limit
the construction of the provisions hereof.

17.18     
Non-Uniform Treatment. The Committee's determinations under the Plan need not be uniform and may be made by it selectively
among persons who are eligible to receive, or actually receive, Awards. Without limiting the generality of the foregoing, the Committee
shall be entitled to make non-uniform and selective determinations, amendments and adjustments, and to enter into non-uniform and selective
Award Agreements.

18.        
Effective Date of Plan. The Plan shall become effective as of the Effective
Date, but no Award shall be exercised (or, in the case of a stock Award, shall be granted) unless and until the Plan has been approved
by the shareholders of the Company, which approval shall be within twelve (12) months after the date the Plan is adopted by the Board.

19.        
Termination or Suspension of the Plan. The Board may suspend or terminate
the Plan at any date pursuant to Section 16.1 hereof. No Awards may be granted under the Plan while the Plan is suspended or after it
is terminated.

20.        
Choice of Law. The law of the State of New York shall govern all questions
concerning the construction, validity and interpretation of this Plan, without regard to such state's conflict of law rules.

As adopted by the Board of Directors of Siebert
Financial Corp. on July 28, 2021.

    	24

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