Document:

Exhibit 10.1

 

  

FORM OF TURNING POINT BRANDS,
INC.
 2015 EQUITY INCENTIVE PLAN

 

 

    	 

    	 

    

  

TURNING POINT BRANDS, INC.

2015 EQUITY INCENTIVE PLAN

 

Section 1.  Purpose. The purposes of this Turning Point Brands, Inc. 2015 Equity Incentive Plan are to promote the interests
of Turning Point Brands, Inc. and its stockholders by (a) attracting and retaining employees and directors of, and certain
consultants to, the Company and its Affiliates; (b) motivating such individuals by means of performance-related incentives
to achieve longer-range performance goals; and/or (c) enabling such individuals to participate in the long-term growth and
financial success of the Company.

 

Section 2.  Definitions. As used in the Plan, the following terms shall have the meanings set forth below:

 

“Affiliate”
shall mean any entity (i) that, directly or indirectly, is controlled by, controls or is under common control with, the Company
or (ii) in which the Company has a significant equity interest, in either case as determined by the Committee.

 

“Award”
shall mean any Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award, Performance Award, Other
Stock-Based Award or Performance Compensation Award made or granted from time to time hereunder.

 

“Award Agreement”
shall mean any written agreement, contract, or other instrument or document evidencing any Award, which may, but need not, be executed
or acknowledged by a Participant. An Award Agreement may be in an electronic medium, may be limited to notation on the books and
records of the Company and, unless otherwise determined by the Committee, need not be signed by a representative of the Company.

 

“Board”
shall mean the Board of Directors of the Company.

 

“Cause”
as a reason for a Participant’s termination of employment or service shall have the meaning assigned such term in the employment,
severance or similar agreement, if any, between the Participant and the Company or a subsidiary of the Company. If the Participant
is not a party to an employment, severance or similar agreement with the Company or a subsidiary of the Company in which such term
is defined, then unless otherwise defined in the applicable Award Agreement, “Cause” shall mean (i) persistent neglect
or negligence in the performance of the Participant’s duties; (ii) conviction (including, but not limited to, pleas of guilty
or no contest) for any act of fraud, misappropriation or embezzlement, or for any criminal offense related to the Company, any
Affiliate or the Participant’s service; (iii) any deliberate and material breach of fiduciary duty to the Company or any
Affiliate, or any other conduct that leads to the material damage or prejudice of the Company or any Affiliate; or (iv) a material
breach of a policy of the Company or any Affiliate, such as the Company’s code of conduct.

 

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“Change in Control”
shall mean the occurrence of any of the following events:

 

(a)any sale, lease,
exchange or other disposition (in one transaction or a series of related transactions) of all or substantially all of the assets
of the Company and its subsidiaries, other than a transaction or series of transactions in which the transferee is controlled by
the Management Group (other than Standard General LP and its Affiliates);

 

(b)a majority of
the Board shall consist of Persons who are not Continuing Directors, as the case may be; or

 

(c)(i) any Person
or group of related Persons (other than the Management Group) for purposes of Section 13(d) of the Exchange Act, becomes the beneficial
owner of the power, directly or indirectly, to vote or direct the voting of securities having more than fifty percent (50%) of
the ordinary voting power for the election of directors of the Company or (ii) any Person together with its Affiliates becomes
the owner, directly or indirectly, of more than sixty-six and two-thirds (66 2/3%) of the economic interests of the Company.

 

For the purposes of this
definition of Change in Control, “Affiliate” shall mean any entity (i) that, directly or indirectly, is
controlled by, controls or is under common control with, the Company or (ii) in which the Company has a significant equity
interest.

 

Notwithstanding the foregoing,
if a Change in Control constitutes a payment event with respect to any Award which provides for the deferral of compensation that
is subject to Section 409A of the Code, then, to the extent required to avoid the imposition of additional taxes under Section
409A of the Code, the transaction or event described in paragraph (a), (b), (c) or (d) above, with respect to such Award, shall
only constitute a Change in Control for purposes of the payment timing of such Award if such transaction also constitutes a “change
in control event,” as defined in Treasury Regulation §1.409A-3(i)(5).

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time.

 

“Committee”
shall mean the Compensation Committee of the Board (or its successor(s)), or any other committee of the Board designated by the
Board to administer the Plan and composed of not less than two directors, each of whom is required to be a “Non-Employee
Director” (within the meaning of Rule 16b-3) and an “outside director” (within the meaning of Section 162(m)
of the Code) to the extent Rule 16b-3 and Section 162(m) of the Code, respectively, are applicable to the Company and
the Plan.

 

“Company”
shall mean Turning Point Brands, Inc., together with any successor thereto.

 

“Continuing
Directors” means, as of any date of determination, any Person who (a) was a member of the Board on the Effective Date
or (b) was nominated for election or elected to the Board with the affirmative vote of a majority of the Continuing Directors who
were members of such Board at the time of such nomination or election.

 

“Disability”
shall mean a physical or mental disability or infirmity that prevents the performance by the Participant of his or her duties lasting
(or likely to last, based on competent medical evidence presented to the Company) for a continuous period of six months or longer.

 

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“Effective Date”
shall have the definition as set forth in Section 18(a) of the Plan.

 

“Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

“Existing Plans”
shall mean the North Atlantic Holding Company, Inc. 2006 Equity Incentive Plan and the Intrepid Brands 2014 Option Plan.

 

“Fair Market
Value” shall mean (i) with respect to any property other than Shares, the fair market value of such property determined
by such methods or procedures as shall be established from time to time by the Committee and (ii) with respect to Shares,
as of any date, the closing sale price (excluding any “after hours” trading) of the Shares on the date of grant or
the date of calculation, as the case may be, on the stock exchange or over the counter market on which the Shares are principally
trading on such date (or on the last preceding trading date if Shares were not traded on such date) if the Shares are readily tradable
on a national securities exchange or other market system, and if the Shares are not readily tradable, Fair Market Value shall mean
the amount determined in good faith by the Committee as the fair market value of the Shares.

 

“Good Reason”
as a reason for a Participant’s termination of employment shall have the meaning assigned such term in the employment, severance
or similar agreement, if any, between the Participant and the Company or a subsidiary of the Company. If the Participant is not
a party to an employment, severance or similar agreement with the Company or a subsidiary of the Company in which such term is
defined, then unless otherwise defined in the applicable Award Agreement, “Good Reason” shall mean (i) a material
diminution in the Participant’s base salary from the level immediately prior to the Change in Control; or (ii) a material
change in the geographic location at which the Participant must primarily perform the Participant’s services (which shall
in no event include a relocation of the Participant’s current principal place of business to a location less than 50
miles away) from the geographic location immediately prior to the Change in Control; provided that no termination shall
be deemed to be for Good Reason unless (a) the Participant provides the Company with written notice setting forth the specific
facts or circumstances constituting Good Reason within 90 days after the initial existence of the occurrence of such
facts or circumstances, (b) to the extent curable, the Company has failed to cure such facts or circumstances within 30 days
of its receipt of such written notice, and (c) the effective date of the termination for Good Reason occurs no later than
one 180 days after the initial existence of the facts or circumstances constituting Good Reason.

 

“Incentive Stock
Option” shall mean a right to purchase Shares from the Company that is granted under Section 6 of the Plan and that
is intended to meet the requirements of Section 422 of the Code or any successor provision thereto. Incentive Stock Options
may be granted only to Participants who meet the requirements of Section 422 of the Code.

 

“Involuntary
Termination” shall mean termination by the Company of a Participant’s employment or service by the Company without
Cause or termination of a Participant’s employment by the Participant for Good Reason. For avoidance of doubt, an Involuntary
Termination shall not include a termination of the Participant’s employment or service by the Company for Cause or due to
the Participant’s death, Disability or resignation without Good Reason.

 

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“Management
Group” means one or more of the following: Thomas F. Helms, Jr., Standard General LP and its Affiliates (other than the
Company and its subsidiaries) and the other members of the senior management of the Company on the Effective Date.

 

“Negative Discretion”
shall mean the discretion authorized by the Plan to be applied by the Committee to eliminate or reduce the size of a Performance
Compensation Award; provided, that the exercise of such discretion would not cause the Performance Compensation Award to
fail to qualify as “performance-based compensation” under Section 162(m) of the Code. By way of example and not
by way of limitation, in no event shall any discretionary authority granted to the Committee by the Plan including, but not limited
to, Negative Discretion, be used to (a) grant or provide payment in respect of Performance Compensation Awards for a Performance
Period if the Performance Goals for such Performance Period have not been attained or (b) increase a Performance Compensation
Award above the maximum amount payable under Section 4(a) or 11(d)(vi) of the Plan.

 

“Non-Qualified
Stock Option” shall mean a right to purchase Shares from the Company that is granted under Section 6 of the Plan
and that is not intended to be an Incentive Stock Option or does not meet the requirements of Section 422 of the Code or any
successor provision thereto.

 

“Option”
shall mean an Incentive Stock Option or a Non-Qualified Stock Option.

 

“Other Stock-Based
Award” shall mean any right granted under Section 10 of the Plan.

 

“Participant”
shall mean any employee of, or consultant to, the Company or its Affiliates, or non-employee director who is a member of the Board
or the board of directors of an Affiliate, eligible for an Award under Section 5 of the Plan and selected by the Committee,
or its designee, to receive an Award under the Plan.

 

“Performance
Award” shall mean any right granted under Section 9 of the Plan.

 

“Performance
Compensation Award” shall mean any Award designated by the Committee as a Performance Compensation Award pursuant to
Section 11 of the Plan.

 

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“Performance
Criteria” shall mean the measurable criterion or criteria that the Committee shall select for purposes of establishing
the Performance Goal(s) for a Performance Period with respect to any performance-based Awards under the Plan, including, but not
limited to, Performance Compensation Awards. Performance Criteria may be described in terms of Company-wide objectives or objectives
that are related to the performance of the individual Participant or of one or more of the subsidiaries, divisions, departments,
regions, functions or other organizational units within the Company or its Affiliates. The Performance Criteria may be made relative
to the performance of other companies or subsidiaries, divisions, departments, regions, functions or other organizational units
within such other companies, and may be made relative to an index or one or more of the performance criteria themselves. The Committee
may grant performance-based Awards subject to Performance Criteria that are either Performance Compensation Awards or are not Performance
Compensation Awards. The Performance Criteria that will be used to establish the Performance Goal(s) for Performance Compensation
Awards shall be based on one or more, or a combination of, the following: (i) return on net assets; (ii) pretax income
before allocation of corporate overhead and bonus; (iii) budget; (iv) net income; (v) division, group or corporate
financial goals; (vi) return on stockholders’ equity; (vii) return on assets; (viii) return on capital; (ix) revenue;
(x) profit margin; (xi) earnings per Share; (xii) net earnings; (xiii) operating earnings; (xiv) free
cash flow; (xv) attainment of strategic and operational initiatives; (xvi) appreciation in and/or maintenance of the
price of the Shares or any other publicly-traded securities of the Company; (xvii) market share; (xviii) gross profits;
(xix) earnings before interest and taxes; (xx) earnings before interest, taxes, depreciation and amortization; (xxi) operating
expenses; (xxii) capital expenses; (xxiii) enterprise value; (xxiv) equity market capitalization; (xxv) economic
value-added models and comparisons with various stock market indices; or (xxvi) reductions in costs. To the extent required
under Section 162(m) of the Code, the Committee shall, not later than the 90th day of a Performance Period (or,
if longer, within the maximum period allowed under Section 162(m) of the Code), define in an objective fashion the manner
of calculating the Performance Criteria it selects to use for such Performance Period.

 

“Performance
Formula” shall mean, for a Performance Period, one or more objective formulas applied against the relevant Performance
Goal to determine, with regard to a performance-based Award (including, but not limited to, a Performance Compensation Award) of
a particular Participant, whether all, some portion but less than all, or none of the performance-based Award has been earned for
the Performance Period.

 

“Performance
Goals” shall mean, for a Performance Period, one or more goals established by the Committee for the Performance Period
based upon the Performance Criteria. The Committee is authorized at any time not later than the 90th day of a Performance
Period, or at any time thereafter (but only to the extent the exercise of such authority after the first 90 days of a
Performance Period would not cause the Performance Compensation Awards granted to any Participant for the Performance Period to
fail to qualify as “performance-based compensation” under Section 162(m) of the Code), in its sole discretion,
to adjust or modify the calculation of a Performance Goal for such Performance Period to the extent permitted under Section 162(m)
of the Code in order to prevent the dilution or enlargement of the rights of Participants, (a) in the event of, or in anticipation
of, any unusual or extraordinary corporate item, transaction, event or development affecting the Company or its Affiliates; or
(b) in recognition of, or in anticipation of, any other unusual or nonrecurring events affecting the Company or its Affiliates,
or the financial statements of the Company or its Affiliates, or in response to, or in anticipation of, changes in applicable laws,
regulations, accounting principles, or business conditions.

 

“Performance
Period” shall mean the one or more periods of time of at least one year 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-based Award, including, but not limited to, a Performance Compensation Award.

 

“Person”
shall mean any individual, corporation, partnership, association, limited liability company, joint-stock company, trust, unincorporated
organization, government, political subdivision or other entity.

 

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“Plan”
shall mean this Turning Point Brands, Inc. 2015 Equity Incentive Plan, as amended from time to time.

 

“Restricted
Stock” shall mean any Share granted under Section 8 of the Plan.

 

“Restricted
Stock Unit” shall mean any unit granted under Section 8 of the Plan.

 

“Rule 16b-3”
shall mean Rule 16b-3 as promulgated and interpreted by the SEC under the Exchange Act, or any successor rule or regulation
thereto as in effect from time to time.

 

“SEC”
shall mean the Securities and Exchange Commission or any successor thereto, and shall include, without limitation, the Staff thereof.

 

“Shares”
shall mean the common stock of the Company, par value $0.01 per share, or such other securities of the Company (i) into which
such common stock shall be changed by reason of a recapitalization, merger, consolidation, split-up, combination, exchange of shares
or other similar transaction, or (ii) as may be determined by the Committee pursuant to Section 4(b) of the Plan.

 

“Stock Appreciation
Right” shall mean any right granted under Section 7 of the Plan.

 

“Substitute
Awards” shall mean any Awards granted under Section 4(c) of the Plan.

 

Section 3.   Administration.

 

(a)               
The Plan shall be administered by the Committee. Subject to the terms of the Plan and applicable law, and in addition to
other express powers and authorizations conferred on the Committee by the Plan, the Committee shall have full power and authority
to: (i) designate Participants; (ii) determine the type or types of Awards to be granted to a Participant and designate
those Awards which shall constitute Performance Compensation Awards; (iii) determine the number of Shares to be covered by,
or with respect to which payments, rights, or other matters are to be calculated in connection with, Awards; (iv) determine
the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled
or exercised in cash, Shares, other securities, other Awards or other property, or canceled, forfeited, or suspended and the method
or methods by which Awards may be settled, exercised, canceled, forfeited, or suspended; (vi) determine whether, to what extent,
and under what circumstances cash, Shares, other securities, other Awards, other property, and other amounts payable with respect
to an Award (subject to Section 162(m) of the Code with respect to Performance Compensation Awards) shall be deferred either
automatically or at the election of the holder thereof or of the Committee (in each case consistent with Section 409A of the
Code); (vii) interpret, administer or reconcile any inconsistency, correct any defect, resolve ambiguities and/or supply any
omission in the Plan, any Award Agreement, and any other instrument or agreement relating to, or Award made under, the Plan; (viii) establish,
amend, suspend, or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration
of the Plan; (ix) establish and administer Performance Goals and certify whether, and to what extent, they have been attained;
and (x) make any other determination and take any other action that the Committee deems necessary or desirable for the administration
or operation of the Plan.

 

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(b)              
Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions
under or with respect to the Plan or any Award or Award Agreement shall be within the sole discretion of the Committee, may be
made at any time and shall be final, conclusive, and binding upon all Persons, including, but not limited to, the Company, any
Affiliate, any Participant, any holder or beneficiary of any Award, and any stockholder.

 

(c)               
The mere fact that a Committee member shall fail to qualify as a “Non-Employee Director” or “outside director”
within the meaning of Rule 16b-3 and Section 162(m) of the Code, respectively, shall not invalidate any Award otherwise
validly made by the Committee under the Plan. Notwithstanding anything in this Section 3 to the contrary, the Board, or any
other committee or sub-committee established by the Board, is hereby authorized (in addition to any necessary action by the Committee)
to grant or approve Awards as necessary to satisfy the requirements of Section 16 of the Exchange Act and the rules and regulations
thereunder and to act in lieu of the Committee with respect to Awards made to non-employee directors under the Plan.

 

(d)              
No member of the Board or the Committee and no employee of the Company or any Affiliate shall be liable for any determination,
act or failure to act hereunder (except in circumstances involving his or her bad faith), or for any determination, act or failure
to act hereunder by any other member or employee or by any agent to whom duties in connection with the administration of the Plan
have been delegated. The Company shall indemnify members of the Board and the Committee and any agent of the Board or the Committee
who is an employee of the Company or an Affiliate against any and all liabilities or expenses to which they may be subjected by
reason of any determination, act or failure to act with respect to their duties on behalf of the Plan (except in circumstances
involving such person’s bad faith).

 

(e)               
With respect to any Performance Compensation Award granted to a “covered employee” (within the meaning of Section 162(m) of
the Code) under the Plan, the Plan shall be interpreted and construed in accordance with Section 162(m) of the Code.

 

(f)               
The Committee may from time to time delegate all or any part of its authority under the Plan to a subcommittee thereof.
To the extent of any such delegation, references in the Plan to the Committee will be deemed to be references to such subcommittee.
In addition, subject to applicable law, the Committee may delegate to one or more officers of the Company the authority to grant
Awards to Participants who are not officers or directors of the Company subject to Section 16 of the Exchange Act or “covered
employees” (within the meaning of Section 162(m) of the Code). The Committee may employ such legal or other counsel,
consultants and agents as it may deem desirable for the administration of the Plan and may rely upon any opinion or computation
received from any such counsel, consultant or agent. Expenses incurred by the Committee in the engagement of such counsel, consultant
or agent shall be paid by the Company, or the Affiliate whose employees have benefited from the Plan, as determined by the Committee.

 

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Section 4.  Shares Available for Awards.

 

(a)               
Shares Available.

 

(i)                
Subject to adjustment as provided in Section 4(b), the aggregate number of Shares with respect to which Awards may
be granted from time to time under the Plan shall in the aggregate not exceed, at any time, the sum of (A)           Shares, plus
(B) any Shares that again become available for Awards under the Plan in accordance with Section 4(a)(ii). Subject to adjustment
as provided in Section 4(b), the aggregate number of Shares with respect to which Incentive Stock Options may be granted under
the Plan shall be           Shares. Subject in each instance to adjustment as provided in Section 4(b), the maximum number
of Shares with respect to which Awards (including, without limitation, Options and Stock Appreciation Rights) may be granted to
any single Participant in any fiscal year shall be           Shares, the maximum number of Shares which may be paid to a Participant
in the Plan in connection with the settlement of any Award(s) designated as “Performance Compensation Awards” in respect
of a single calendar year (including, without limitation, as a portion of the applicable Performance Period) shall be as set forth
in Section 11(d)(vi), and the maximum number of Shares with respect to which Awards (including, without limitation, Options
and Stock Appreciation Rights) may be granted to any single non-employee member of the Board in any fiscal year shall be         
Shares.

 

(ii)              
Shares covered by an Award granted under the Plan shall not be counted unless and until they are actually issued and delivered
to a Participant and, therefore, the total number of Shares available under the Plan as of a given date shall not be reduced by
Shares relating to prior Awards that (in whole or in part) have expired or have been forfeited or cancelled, and upon payment in
cash of the benefit provided by any Award, any Shares that were covered by such Award will be available for issue hereunder. Notwithstanding
anything to the contrary, the following Shares shall not be made available for delivery to Participants under the Plan: (A) Shares
not issued or delivered as a result of the net settlement of an outstanding Option or Stock Appreciation Right, (B) Shares
used to pay the exercise price or withholding taxes related to an outstanding Award, and (C) Shares repurchased by the Company
using proceeds realized by the Company in connection with a Participant’s exercise of an Option or Stock Appreciation Right.

 

(b)              
Adjustments.  Notwithstanding any provisions of the Plan to the contrary, in the event that the Committee
determines in its sole discretion that any dividend or other distribution (whether in the form of cash, Shares, other securities,
or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase, or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase
Shares or other securities of the Company, or other corporate transaction or event affects the Shares such that an adjustment is
appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under
the Plan, then the Committee shall equitably adjust any or all of (i) the number of Shares or other securities of the Company
(or number and kind of other securities or property) with respect to which Awards may be granted, (ii) the number of Shares
or other securities of the Company (or number and kind of other securities or property) subject to outstanding Awards, and (iii) the
grant or exercise price with respect to any Award or, if deemed appropriate, make provision for a cash payment to the holder of
an outstanding Award in consideration for the cancellation of such Award, which, in the case of Options and Stock Appreciation
Rights shall equal the excess, if any, of the Fair Market Value of the Share subject to each such Option or Stock Appreciation
Right over the per Share exercise price or grant price of such Option or Stock Appreciation Right. The Committee will also make
or provide for such adjustments in the numbers of Shares specified in Section 4(a)(i) (and, to the extent consistent with
Section 162(m) of the Code, Section 11(d)(vi)) of the Plan as the Committee in its sole discretion, exercised in good
faith, may determine is appropriate to reflect any transaction or event described in this Section 4(b); provided,
however, that any such adjustment to the numbers specified in Section 4(a)(i) of the Plan (and, to the extent consistent
with Section 162(m) of the Code, Section 11(d)(vi) of the Plan) will be made only if and to the extent that such adjustment
would not cause any Option intended to qualify as an Incentive Stock Option to fail to so qualify.

 

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(c)               
Substitute Awards.

 

(i)                
Awards may be granted under the Plan in substitution for or in conversion of, or in connection with an assumption of, stock
options, stock appreciation rights, restricted stock, restricted stock units or other stock or stock-based awards held by awardees
of an entity engaging in an acquisition or merger transaction with the Company or any subsidiary of the Company. Any conversion,
substitution or assumption will be effective as of the close of the merger or acquisition, and, to the extent applicable, will
be conducted in a manner that complies with Section 409A of the Code.

 

(ii)              
In the event that an entity acquired by the Company or any subsidiary of the Company, or with which the Company or any subsidiary
of the Company merges, has shares available under a pre-existing plan previously approved by stockholders and not adopted in contemplation
of such acquisition or merger, the shares available for grant pursuant to the terms of such plan (as adjusted, to the extent appropriate,
to reflect such acquisition or merger) may be used for Awards made after such acquisition or merger under the Plan; provided,
however, that Awards using such available shares may not be made after the date awards or grants could not have been made
under the terms of the pre-existing plan absent the acquisition or merger, and may only be made to individuals who were not employees
or directors of the Company or any subsidiary of the Company prior to such acquisition or merger. The Awards so granted may reflect
the original terms of the awards being assumed or substituted or converted for and need not comply with other specific terms of
the Plan, and may account for Shares substituted for the securities covered by the original awards and the number of shares subject
to the original awards, as well as any exercise or purchase prices applicable to the original awards, adjusted to account for differences
in stock prices in connection with the transaction.

 

(iii)            
Any Shares that are issued or transferred by, or that are subject to any Awards that are granted by, or become obligations
of, the Company under Sections 4(c)(i) or 4(c)(ii) of the Plan will not reduce the Shares available for issuance or transfer
under the Plan or otherwise count against the limits described in Section 4(a)(i) of the Plan. In addition, no Shares that
are issued or transferred by, or that are subject to any Awards that are granted by, or become obligations of, the Company under
Sections 4(c)(i) or 4(c)(ii) of the Plan will be added to the aggregate limit described in Section 4(a)(i)
of the Plan.

 

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(d)              
Sources of Shares Deliverable Under Awards.  Any Shares delivered pursuant to an Award may consist, in whole
or in part, of authorized and unissued Shares or of treasury Shares.

 

Section 5.   Eligibility.  Any employee of, or consultant to, the Company or any of its Affiliates (including, but
not limited to, any prospective employee), or non-employee director who is a member of the Board or the board of directors of an
Affiliate, shall be eligible to be selected as a Participant.

 

Section 6.  Stock Options.

 

(a)               
Grant.  Subject to the terms of the Plan, the Committee shall have sole authority to determine the Participants
to whom Options shall be granted, the number of Shares to be covered by each Option, the exercise price thereof and the conditions
and limitations applicable to the exercise of the Option. The Committee shall have the authority to grant Incentive Stock Options,
or to grant Non-Qualified Stock Options, or to grant both types of Options. In the case of Incentive Stock Options, the terms and
conditions of such Awards shall be subject to and comply with such rules as may be prescribed by Section 422 of the Code and
any regulations implementing such statute. All Options when granted under the Plan are intended to be Non-Qualified Stock Options,
unless the applicable Award Agreement expressly states that the Option is intended to be an Incentive Stock Option. If an Option
is intended to be an Incentive Stock Option, and if for any reason such Option (or any portion thereof) shall not qualify as an
Incentive Stock Option, then, to the extent of such nonqualification, such Option (or portion thereof) shall be regarded as a Non-Qualified
Stock Option appropriately granted under the Plan; provided that such Option (or portion thereof) otherwise complies with
the Plan’s requirements relating to Non-Qualified Stock Options. No Option shall be exercisable more than ten years from
the date of grant.

 

(b)              
Exercise Price.  The Committee shall establish the exercise price at the time each Option is granted, which
exercise price shall be set forth in the applicable Award Agreement and which exercise price (except with respect to Substitute
Awards) shall not be less than the Fair Market Value per Share on the date of grant.

 

(c)               
Exercise.  Each Option shall be exercisable at such times and subject to such terms and conditions as the
Committee may, in its sole discretion, specify in the applicable Award Agreement. The Committee may impose such conditions with
respect to the exercise of Options, including, without limitation, any relating to the application of federal or state securities
laws, as it may deem necessary or advisable.

 

(d)              
Payment.

 

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(i)                
No Shares shall be delivered pursuant to any exercise of an Option until payment in full of the aggregate exercise price
therefor is received by the Company. Such payment may be made (A) in cash or its equivalent, (B) in the discretion of
the Committee and subject to such rules as may be established by the Committee and applicable law, by exchanging Shares owned by
the Participant (which are not the subject of any pledge or other security interest and which have been owned by such Participant
for at least six months), (C) in the discretion of the Committee and subject to such rules as may be established by the Committee
and applicable law, through delivery of irrevocable instructions to a broker to sell the Shares otherwise deliverable upon the
exercise of the Option and to deliver promptly to the Company an amount equal to the aggregate exercise price, (D) in the
discretion of the Committee and subject to such rules as may be established by the Committee and applicable law, by the Company’s
withholding of Shares otherwise issuable upon exercise of an Option pursuant to a “net exercise” arrangement (it being
understood that, solely for purposes of determining the number of treasury shares held by the Company, the Shares so withheld will
not be treated as issued and acquired by the Company upon such exercise), (E) by a combination of the foregoing, or (F) by
such other methods as may be approved by the Committee and subject to such rules as may be established by the Committee and applicable
law, provided that the combined value of all cash and cash equivalents and the Fair Market Value of any such Shares so tendered
to the Company or withheld as of the date of such tender or withholding is at least equal to such aggregate exercise price.

 

(ii)              
Wherever in the Plan or any Award Agreement a Participant is permitted to pay the exercise price of an Option or taxes relating
to the exercise of an Option by delivering Shares, the Participant may, subject to procedures satisfactory to the Committee and
applicable law, satisfy such delivery requirement by presenting proof of beneficial ownership of such Shares, in which case the
Company shall treat the Option as exercised without further payment and shall withhold such number of Shares from the Shares acquired
by the exercise of the Option.

 

Section 7.   Stock Appreciation Rights.

 

(a)               
Grant.  Subject to the provisions of the Plan, the Committee shall have sole authority to determine the Participants
to whom Stock Appreciation Rights shall be granted, the number of Shares to be covered by each Stock Appreciation Right Award,
the grant price thereof and the conditions and limitations applicable to the exercise thereof. Stock Appreciation Rights may be
granted in tandem with another Award, in addition to another Award, or freestanding and unrelated to another Award. Stock Appreciation
Rights granted in tandem with or in addition to an Award may be granted either before, at the same time as the Award or at a later
time. No Stock Appreciation Right shall be exercisable more than ten years from the date of grant.

 

(b)              
Exercise and Payment.  A Stock Appreciation Right shall entitle the Participant to receive an amount equal
to the excess of the Fair Market Value of one Share on the date of exercise of the Stock Appreciation Right over the grant price
thereof (which grant price (except with respect to Substitute Awards) shall not be less than the Fair Market Value on the date
of grant). The Committee shall determine in its sole discretion whether a Stock Appreciation Right shall be settled in cash, Shares
or a combination of cash and Shares.

 

Section 8.  Restricted Stock and Restricted Stock Units.

 

(a)               
Grant.  Subject to the provisions of the Plan, the Committee shall have sole authority to determine the Participants
to whom Shares of Restricted Stock and Restricted Stock Units shall be granted, the number of Shares of Restricted Stock and/or
the number of Restricted Stock Units to be granted to each Participant, the duration of the period during which, and the conditions,
if any, under which, the Restricted Stock and Restricted Stock Units may vest and/or be forfeited to the Company, and the other
terms and conditions of such Awards.

 

    	11

    	 

    

 

(b)              
Transfer Restrictions.  Unless otherwise directed by the Committee, (i) certificates issued in respect
of Shares of Restricted Stock shall be registered in the name of the Participant and deposited by such Participant, together with
a stock power endorsed in blank, with the Company, or (ii) Shares of Restricted Stock shall be held at the Company’s
transfer agent in book entry form with appropriate restrictions relating to the transfer of such Shares of Restricted Stock. Upon
the lapse of the restrictions applicable to such Shares of Restricted Stock, the Company shall, as applicable, either deliver such
certificates to the Participant or the Participant’s legal representative, or the transfer agent shall remove the restrictions
relating to the transfer of such Shares. Shares of Restricted Stock and Restricted Stock Units may not be sold, assigned, transferred,
pledged or otherwise encumbered, except as provided in the Plan or the applicable Award Agreement.

 

(c)               
Payment.  Each Restricted Stock Unit shall have a value equal to the Fair Market Value of one Share. Restricted
Stock Units shall be paid in cash, Shares, other securities or other property, as determined in the sole discretion of the Committee,
upon or after the lapse of the restrictions applicable thereto, or otherwise in accordance with the applicable Award Agreement.
Dividends paid on any Shares of Restricted Stock or dividend equivalents paid on any Restricted Stock Units shall be paid directly
to the Participant, withheld by the Company subject to vesting of the Restricted Stock or Restricted Stock Units, as applicable,
pursuant to the terms of the applicable Award Agreement, or may be reinvested in additional Shares of Restricted Stock or in additional
Restricted Stock Units, as determined by the Committee in its sole discretion. Shares of Restricted Stock and Shares issued in
respect of Restricted Stock Units may be issued with or without other payments therefor or such other consideration as may be determined
by the Committee, consistent with applicable law.

 

Section 9.   Performance Awards.

 

(a)               
Grant.  The Committee shall have sole authority to determine the Participants who shall receive a Performance
Award, which shall consist of a right which is (i) denominated in cash or Shares, (ii) valued, as determined by the Committee,
in accordance with the achievement of such Performance Goals during such Performance Periods as the Committee shall establish,
and (iii) payable at such time and in such form as the Committee shall determine.

 

(b)              
Terms and Conditions.  Subject to the terms of the Plan and any applicable Award Agreement, the Committee
shall determine the Performance Goals to be achieved during any Performance Period, the length of any Performance Period, the amount
of any Performance Award and the amount and kind of any payment or transfer to be made pursuant to any Performance Award. The Committee
may require or permit the deferral of the receipt of Performance Awards upon such terms as the Committee deems appropriate and
in accordance with Section 409A of the Code.

 

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(c)               
Payment of Performance Awards.  Performance Awards may be paid in a lump sum or in installments following
the close of the Performance Period, as set forth in the applicable Award Agreement.

 

Section 10.  Other Stock-Based Awards.  The Committee shall have authority to grant to Participants an Other Stock-Based
Award, which shall consist of any right which is (i) not an Award described in Sections 6 through 9 of the Plan,
and (ii) an Award of Shares or an Award denominated or payable in, valued in whole or in part by reference to, or otherwise
based on or related to, Shares (including, without limitation, securities convertible into Shares), as deemed by the Committee
to be consistent with the purposes of the Plan; provided that any such rights must comply, to the extent deemed desirable
by the Committee, with Rule 16b-3 and applicable law. Subject to the terms of the Plan and any applicable Award Agreement,
the Committee shall determine the terms and conditions of any such Other Stock-Based Award, including, but not limited to, the
price, if any, at which securities may be purchased pursuant to any Other Stock-Based Award granted under the Plan.

 

Section 11.  Performance Compensation Awards.

 

(a)               
General.  The Committee shall have the authority, at the time of grant of any Award described in Sections 8
through 10 of the Plan, to designate such Award as a Performance Compensation Award in order to qualify such Award as “performance-based
compensation” under Section 162(m) of the Code.

 

(b)              
Eligibility.  The Committee will, in its sole discretion, designate not later than the 90th day
of a Performance Period (or, if longer, within the maximum period allowed under Section 162(m) of the Code) which Participants
will be eligible to receive Performance Compensation Awards in respect of such Performance Period. Designation of a Participant
eligible to receive an Award hereunder for a Performance Period shall not in any manner entitle the Participant to receive payment
in respect of any Performance Compensation Award for such Performance Period. The determination as to whether or not such Participant
becomes entitled to payment in respect of any Performance Compensation Award shall be decided solely in accordance with the provisions
of this Section 11. Moreover, designation of a Participant eligible to receive an Award hereunder for a particular Performance
Period shall not require designation of such Participant eligible to receive an Award hereunder in any subsequent Performance Period,
and designation of one person as a Participant eligible to receive an Award hereunder shall not require designation of any other
person as a Participant eligible to receive an Award hereunder for such period or any other period.

 

(c)               
Discretion of the Committee with Respect to Performance Compensation Awards.  With regard to a particular
Performance Period, the Committee shall have full discretion to select the length of such Performance Period, the type(s) of Performance
Compensation Awards to be issued, the Performance Criteria that will be used to establish the Performance Goal(s), the kind(s)
and/or level(s) of the Performance Goals(s) that is/are to apply, and the Performance Formula, as applicable. Not later than the
90th day of a Performance Period (or, if longer, within the maximum period allowed under Section 162(m) of the
Code), the Committee shall, with regard to the Performance Compensation Awards to be issued for such Performance Period, exercise
its discretion with respect to each of the matters enumerated in the immediately preceding sentence of this Section 11(c)
and record the same in writing.

 

    	13

    	 

    

 

(d)              
Payment of Performance Compensation Awards.

 

(i)                
Unless otherwise provided in the Plan or the applicable Award Agreement, a Participant must be employed by the Company on
the last day of a Performance Period to be eligible for payment in respect of a Performance Compensation Award for such Performance
Period.

 

(ii)              
Limitation.  A Participant shall be eligible to receive payment in respect of a Performance Compensation Award
only to the extent that: (1) the Performance Goals for such period are achieved; and (2) the Performance Formula as applied
against such Performance Goals determines that all or some portion of such Participant’s Performance Award has been earned
for the Performance Period.

 

(iii)            
Certification.  Following the completion of a Performance Period, the Committee shall review and certify in
writing whether, and to what extent, the Performance Goals for the Performance Period have been achieved and, if so, calculate
and certify in writing that amount of the Performance Compensation Awards earned for the Performance Period based upon the Performance
Formula. The Committee shall then determine the actual size of each Participant’s Performance Compensation Award for the
Performance Period and, in so doing, may apply Negative Discretion, if and when it deems appropriate.

 

(iv)            
Negative Discretion.  In determining the final payout of an individual Performance Compensation Award for
a Performance Period, the Committee may reduce or eliminate the amount of the Performance Compensation Award earned under the Performance
Formula in the Performance Period through the use of Negative Discretion if, in its sole judgment, such reduction or elimination
is appropriate.

 

(v)              
Timing of Award Payments.  The Awards granted for a Performance Period shall be paid as provided for in any
applicable Award Agreement.

 

(vi)            
Maximum Award Payable.  Notwithstanding any provision contained in the Plan to the contrary, the maximum Performance
Compensation Award payable to any one Participant under the Plan in respect of any single calendar year (including, without limitation,
as a portion of the applicable Performance Period) is           Shares or, in the event the Performance Compensation Award
is paid in cash, the equivalent cash value thereof on the first day of the Performance Period(s) to which such Performance Compensation
Award relates. Furthermore, any Performance Compensation Award that has been deferred shall not (between the date as of which the
Performance Compensation Award is deferred and the payment date) increase (i) with respect to a Performance Compensation Award
that is payable in cash, by a measuring factor for each fiscal year greater than a reasonable rate of interest set by the Committee
or (ii) with respect to a Performance Compensation Award that is payable in Shares, by an amount greater than the appreciation
of the Shares subject to such Performance Compensation Award from the date such Performance Compensation Award is deferred to the
payment date.

 

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Section 12.  Amendment and Termination.

 

(a)               
Amendments to the Plan.  The Board may amend, alter, suspend, discontinue, or terminate the Plan or any portion
thereof at any time; provided that if an amendment to the Plan (i) would materially increase the benefits accruing
to Participants under the Plan, (ii) would materially increase the number of securities which may be issued under the Plan, or
(iii) must otherwise be approved by the stockholders of the Company in order to comply with applicable law or the rules of
the principal national securities exchange upon which the Shares are traded or quoted, such amendment will be subject to stockholder
approval and will not be effective unless and until such approval has been obtained; and provided, further, that
any such amendment, alteration, suspension, discontinuance or termination that would materially impair the rights of any Participant
or any holder or beneficiary of any Award previously granted shall not be effective without the written consent of the affected
Participant, holder or beneficiary.

 

(b)              
Amendments to Awards.  The Committee may waive any conditions or rights under, amend any terms of, or alter,
suspend, discontinue, cancel or terminate, any Award theretofore granted, except in the case of a Performance Compensation Award
where such action would result in the loss of the otherwise available exemption of the Performance Compensation Award under Section 162(m)
of the Code (in such case, the Committee will not make any modification of the Performance Criteria/Goals with respect to such
Performance Compensation Award); provided that any such waiver, amendment, alteration, suspension, discontinuance, cancellation
or termination that would materially impair the rights of any Participant or any holder or beneficiary of any Award previously
granted shall not be effective without the written consent of the affected Participant, holder or beneficiary.

 

(c)               
Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events.  The Committee is hereby
authorized to make equitable adjustments in the terms and conditions of, and the criteria included in, all outstanding Awards in
recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 4(b) hereof)
affecting the Company, any Affiliate, or the financial statements of the Company or any Affiliate, or of changes in applicable
laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan.

 

(d)              
Repricing.  Except in connection with a corporate transaction or event described in Section 4(b) hereof,
the terms of outstanding Awards may not be amended to reduce the exercise price of Options or the grant price of Stock Appreciation
Rights, or to cancel Options or Stock Appreciation Rights in exchange for cash, other Awards or Options or Stock Appreciation Rights
with an exercise price or grant price, as applicable, that is less than the exercise price of the original Options or grant price
of the original Stock Appreciation Rights, as applicable, without stockholder approval. This Section 12(d) is intended to
prohibit the repricing of “underwater” Options and Stock Appreciation Rights and will not be construed to prohibit
the adjustments provided for in Section 4(b) of the Plan.

 

    	15

    	 

    

 

Section 13.  Change in Control.

 

In the event of a Change
in Control, unless otherwise determined by the Committee in a written resolution upon or prior to the date of grant or set forth
in an applicable Award Agreement, the following acceleration, exercisability and valuation provisions will apply:

 

(a)               
Upon a Change in Control, each then-outstanding Option and Stock Appreciation Right will become fully vested and exercisable,
and the restrictions applicable to each outstanding Restricted Stock Award, Restricted Stock Unit Award, Performance Award or Other
Stock-Based Award will lapse, and each Award will be fully vested (with any applicable Performance Goals deemed to have been achieved
at a target level as of the date of such vesting), except to the extent that an award meeting the requirements of Section 13(b)
hereof (a “Replacement Award”) is provided to the Participant holding such Award in accordance with Section 13(b)
hereof to replace or adjust such outstanding Award (a “Replaced Award”).

 

(b)              
An award meets the conditions of this Section 13(b) (and hence qualifies as a Replacement Award) if (i) it is
of the same type (e.g., stock option for Option, restricted stock for Restricted Stock, restricted stock unit for Restricted Stock
Unit, etc.) as the Replaced Award, (ii) it has a value at least equal to the value of the Replaced Award, (iii) it relates
to publicly traded equity securities of the Company or its successor in the Change in Control or another entity that is affiliated
with the Company or its successor following the Change in Control, (iv) if the Participant holding the Replaced Award is subject
to U.S. federal income tax under the Code, the tax consequences to such Participant under the Code of the Replacement Award
are not less favorable to such Participant than the tax consequences of the Replaced Award, and (v) its other terms and conditions
are not less favorable to the Participant holding the Replaced Award than the terms and conditions of the Replaced Award (including,
but not limited to, the provisions that would apply in the event of a subsequent Change in Control). Without limiting the generality
of the foregoing, the Replacement Award may take the form of a continuation of the Replaced Award if the requirements of the preceding
sentence are satisfied. The determination of whether the conditions of this Section 13(b) are satisfied will be made by the
Committee, as constituted immediately before the Change in Control, in its sole discretion (taking into account the requirements
of Treasury Regulation 1.409A-3(i)(5)(iv)(B) and compliance of the Replaced Award or Replacement Award with Section 409A
of the Code). Without limiting the generality of the foregoing, the Committee may determine the value of Awards and Replacement
Awards that are stock options by reference to either their intrinsic value or their fair value.

 

(c)               
Upon the Involuntary Termination, during the period of two years immediately following a Change in Control, of a Participant
holding Replacement Awards, (i) all Replacement Awards held by the Participant will become fully vested and, if applicable,
exercisable and free of restrictions (with any applicable performance goals deemed to have been achieved at a target level as of
the date of such vesting), and (ii) all Options and Stock Appreciation Rights held by the Participant immediately before such
Involuntary Termination that the Participant also held as of the date of the Change in Control and all stock options and stock
appreciation rights that constitute Replacement Awards will remain exercisable for a period of 90 days following such
Involuntary Termination or until the expiration of the stated term of such stock option or stock appreciation right, whichever
period is shorter (provided, however, that, if the applicable Award Agreement provides for a longer period of exercisability,
that provision will control).

 

    	16

    	 

    

 

(d)              
Notwithstanding anything in the Plan or any Award Agreement to the contrary, to the extent that any provision of the Plan
or an applicable Award Agreement would cause a payment of deferred compensation that is subject to Section 409A of the Code
to be made upon the occurrence of (i) a Change in Control, then such payment shall not be made unless such Change in Control
also constitutes a “change in control event” within the meaning of Section 409A of the Code and the regulatory
guidance promulgated thereunder or (ii) a termination of employment or service, then such payment shall not be made unless
such termination of employment or service also constitutes a “separation from service” within the meaning of Section 409A
of the Code and the regulatory guidance promulgated thereunder. Any payment that would have been made except for the application
of the preceding sentence shall be made in accordance with the payment schedule that would have applied in the absence of a Change
in Control or termination of employment or service, but disregarding any future service and/or performance requirements.

 

Section 14.  Non-U.S. Participants.  In order to facilitate the granting of any Award or combination of Awards
under the Plan, the Committee may provide for such special terms for awards to Participants who are foreign nationals or who are
employed by the Company or any Affiliate outside of the United States of America or who provide services to the Company or an Affiliate
under an agreement with a foreign nation or agency, as the Committee may consider necessary or appropriate to accommodate differences
in local law, tax policy or custom. Moreover, the Committee may approve such supplements to or amendments, restatements or alternative
versions of the Plan (including, without limitation, sub-plans) as it may consider necessary or appropriate for such purposes,
without thereby affecting the terms of the Plan as in effect for any other purpose, and the Secretary or other appropriate officer
of the Company may certify any such document as having been approved and adopted in the same manner as the Plan. No such special
terms, supplements, amendments or restatements, however, will include any provisions that are inconsistent with the terms of the
Plan as then in effect unless the Plan could have been amended to eliminate such inconsistency without further approval by the
stockholders of the Company.

 

Section 15.  Detrimental Activity and Recapture Provisions.  Any Award Agreement may provide for the cancellation
or forfeiture of an Award or the forfeiture and repayment to the Company of any gain related to an Award, or other provisions intended
to have a similar effect, upon such terms and conditions as may be determined by the Committee from time to time, including, without
limitation, in the event that a Participant, during employment or other service with the Company or an Affiliate, shall engage
in activity detrimental to the business of the Company. In addition, notwithstanding anything in the Plan to the contrary, any
Award Agreement may also provide for the cancellation or forfeiture of an Award or the forfeiture and repayment to the Company
of any gain related to an Award, or other provisions intended to have a similar effect, upon such terms and conditions as may be
required by the Committee or under Section 10D of the Exchange Act and any applicable rules or regulations promulgated by
the SEC or any national securities exchange or national securities association on which the Shares may be traded or under any clawback
policy adopted by the Company.

 

    	17

    	 

    

 

Section 16.  General Provisions.

 

(a)               
Nontransferability.

 

(i)                
Each Award, and each right under any Award, shall be exercisable only by the Participant during the Participant’s
lifetime, or, if permissible under applicable law, by the Participant’s legal guardian or representative.

 

(ii)              
No Award may be sold, assigned, alienated, pledged, attached or otherwise transferred or encumbered by a Participant otherwise
than by will or by the laws of descent and distribution, and any such purported sale, assignment, alienation, pledge, attachment,
transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate; provided that the designation
of a beneficiary shall not constitute a sale, assignment, alienation, pledge, attachment, transfer or encumbrance. In no event
may any Award granted under the Plan be transferred for value.

 

(iii)            
Notwithstanding the foregoing, at the discretion of the Committee, an Award may be transferred by a Participant solely to
the Participant’s spouse, siblings, parents, children and grandchildren or trusts for the benefit of such persons or partnerships,
corporations, limited liability companies or other entities owned solely by such persons, including, but not limited to, trusts
for such persons, subject to any restriction in the applicable Award Agreement.

 

(b)              
Dividend Equivalents.  In the sole discretion of the Committee, an Other Stock-Based Award or an Award granted
pursuant to Sections 8 or 9 hereof, may provide the Participant with dividends or dividend equivalents, payable in cash, Shares,
other securities or other property on a current or deferred basis; provided, that in the case of Awards with respect to
which any applicable Performance Goals have not been achieved, dividends and dividend equivalents may be paid only on a deferred
basis, to the extent the underlying Award vests.

 

(c)               
No Rights to Awards.  No Participant or other Person shall have any claim to be granted any Award, and there
is no obligation for uniformity of treatment of Participants, Awards, or holders or beneficiaries of Awards. The terms and conditions
of Awards and the Committee’s determinations and interpretations with respect thereto need not be the same with respect to
each or any Participant (whether or not such Participants are similarly situated).

 

(d)              
Share Certificates.  Shares or other securities of the Company or any Affiliate delivered under the Plan pursuant
to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may
deem advisable under the Plan or the rules, regulations, and other requirements of the SEC, any stock exchange upon which such
Shares or other securities are then listed, and any applicable Federal or state laws. The Committee may cause a legend or legends
to be put on any such certificates to make appropriate reference to such restrictions.

 

(e)               
Withholding.

 

    	18

    	 

    

 

(i)                
A Participant may be required to pay to the Company or any Affiliate, and, subject to Section 409A of the Code, the
Company or any Affiliate shall have the right and is hereby authorized to withhold from any Award, from any payment due or transfer
made under any Award or under the Plan or from any compensation or other amount owing to a Participant the amount (in cash, Shares,
other securities, other Awards or other property) of any applicable withholding taxes in respect of an Award, its exercise, or
any payment or transfer under an Award or under the Plan, and to take such other action(s) as may be necessary in the opinion of
the Company to satisfy all obligations for the payment of such taxes.

 

(ii)              
Without limiting the generality of clause (i) above, in the discretion of the Committee and subject to such rules as
it may adopt (including, without limitation, any as may be required to satisfy applicable tax and/or non-tax regulatory requirements)
and applicable law, a Participant may satisfy, in whole or in part, the foregoing withholding liability by delivery of Shares owned
by the Participant (which are not subject to any pledge or other security interest and which have been owned by the Participant
for at least six months) with a Fair Market Value equal to such withholding liability or by having the Company withhold from the
number of Shares otherwise issuable pursuant to the exercise of the Option (or the settlement of such Award in Shares) a number
of Shares with a Fair Market Value equal to such withholding liability.

 

(f)               
Award Agreements.  Each Award hereunder shall be evidenced by an Award Agreement, which shall be delivered
to the Participant and shall specify the terms and conditions of the Award and any rules applicable thereto, including, but not
limited to, the effect on such Award of the death, disability or termination of employment or service of a Participant and the
effect, if any, of such other events as may be determined by the Committee.

 

(g)              
No Limit on Other Compensation Arrangements.  Nothing contained in the Plan shall prevent the Company or any
Affiliate from adopting or continuing in effect other compensation arrangements, which may, but need not, provide for the grant
of options, restricted stock, restricted stock units, Shares and other types of Awards provided for hereunder (subject to stockholder
approval if such approval is required), and such arrangements may be either generally applicable or applicable only in specific
cases.

 

(h)              
No Right to Employment.  The grant of an Award shall not be construed as giving a Participant the right to
be retained in the employ of, or in any consulting or other service relationship to, or as a director on the Board or board of
directors, as applicable, of, the Company or any Affiliate. Further, the Company or an Affiliate may at any time dismiss a Participant
from employment or discontinue any consulting or other service relationship, free from any liability or any claim under the Plan
or any Award Agreement, unless otherwise expressly provided in any applicable Award Agreement or any applicable employment or other
service contract or agreement with the Company or an Affiliate.

 

(i)                
No Rights as Stockholder.  Subject to the provisions of the applicable Award, no Participant or holder or
beneficiary of any Award shall have any rights as a stockholder with respect to any Shares to be distributed under the Plan until
he or she has become the holder of such Shares. Notwithstanding the foregoing, in connection with each grant of Restricted Stock
hereunder, the applicable Award shall specify if and to what extent the Participant shall be entitled to the rights of a stockholder
in respect of such Restricted Stock.

 

    	19

    	 

    

 

(j)                
Governing Law.  The validity, construction, and effect of the Plan and any rules and regulations relating
to the Plan and any Award Agreement shall be determined in accordance with the laws of the State of Delaware, applied without giving
effect to its conflict of laws principles.

 

(k)              
Severability.  If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal,
or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed
applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the
Award, such provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award
shall remain in full force and effect.

 

(l)                
Other Laws.  The Committee may refuse to issue or transfer any Shares or other consideration under an Award
if, acting in its sole discretion, it determines that the issuance or transfer of such Shares or such other consideration might
violate any applicable law or regulation or entitle the Company to recover the same under Section 16(b) of the Exchange Act,
and any payment tendered to the Company by a Participant, other holder or beneficiary in connection with the exercise of such Award
shall be promptly refunded to the relevant Participant, holder or beneficiary. Without limiting the generality of the foregoing,
no Award granted hereunder shall be construed as an offer to sell securities of the Company, and no such offer shall be outstanding,
unless and until the Committee in its sole discretion has determined that any such offer, if made, would be in compliance with
the requirements of all applicable securities laws.

 

(m)            
No Trust or Fund Created.  Neither the Plan nor any Award shall create or be construed to create a trust or
separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other Person.
To the extent that any Person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such
right shall be no greater than the right of any unsecured general creditor of the Company or such Affiliate.

 

(n)              
No Fractional Shares.  No fractional Shares shall be issued or delivered pursuant to the Plan or any Award,
and the Committee shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any
fractional Shares or whether such fractional Shares or any rights thereto shall be canceled, terminated, or otherwise eliminated
without additional consideration.

 

(o)              
Deferrals.  In the event the Committee permits a Participant to defer any Award payable in the form of cash,
all such elective deferrals shall be accomplished by the delivery of a written, irrevocable election by the Participant on a form
provided by the Company. All deferrals shall be made in accordance with administrative guidelines established by the Committee
to ensure that such deferrals comply with all applicable requirements of Section 409A of the Code.

 

    	20

    	 

    

 

(p)              
Headings.  Headings are given to the Sections and subsections of the Plan solely as a convenience to facilitate
reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan
or any provision thereof.

 

Section 17.  Compliance with Section 409A of the Code.

 

(a)               
To the extent applicable, it is intended that the Plan and any Awards granted hereunder comply with the provisions of Section 409A
of the Code, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to the Participants. The
Plan and any Awards granted hereunder shall be administered in a manner consistent with this intent. Any reference in the Plan
to Section 409A of the Code will also include any regulations or any other formal guidance promulgated with respect to such
Section by the U.S. Department of the Treasury or the Internal Revenue Service.

 

(b)              
Neither a Participant nor any of a Participant’s creditors or beneficiaries shall have the right to subject any deferred
compensation (within the meaning of Section 409A of Code) payable under the Plan and Awards granted hereunder to any anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment. Except as permitted under Section 409A
of the Code, any deferred compensation (within the meaning of Section 409A of the Code) payable to a Participant or for a
Participant’s benefit under the Plan and Awards granted hereunder may not be reduced by, or offset against, any amount owing
by a Participant to the Company or any of its Affiliates.

 

(c)               
If, at the time of a Participant’s separation from service (within the meaning of Section 409A of the Code),
(i) the Participant shall be a specified employee (within the meaning of Section 409A of the Code and using the identification
methodology selected by the Company from time to time) and (ii) the Company shall make a good faith determination that an
amount payable hereunder constitutes deferred compensation (within the meaning of Section 409A of the Code) the payment of
which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A of the Code in order to avoid
taxes or penalties under Section 409A of the Code, then the Company shall not pay such amount on the otherwise scheduled payment
date but shall instead pay it on the earlier of (A) the first business day of the seventh month following the Participant’s
separation from service or (B) the date of the Participant’s death.

 

(d)              
Notwithstanding anything to the contrary in the Plan or any Award Agreement, to the extent that the Plan and/or Awards granted
hereunder are subject to Section 409A of the Code, the Committee may, in its sole discretion and without a Participant’s
prior consent, amend the Plan and/or Award, adopt policies and procedures, or take any other actions (including, without limitation,
amendments, policies, procedures and actions with retroactive effect) as the Committee determines are necessary or appropriate
to (i) exempt the Plan and/or any Award from the application of Section 409A of the Code, (ii) preserve the intended
tax treatment of any such Award, or (iii) comply with the requirements of Section 409A of the Code, including, without
limitation, any regulations or other guidance that may be issued after the date of the grant. In any case, notwithstanding anything
to the contrary, a Participant shall be solely responsible and liable for the satisfaction of all taxes and penalties that may
be imposed on a Participant or for a Participant’s account in connection with the Plan and Awards granted hereunder (including,
but not limited to, any taxes and penalties under Section 409A of the Code), and neither the Company nor any of its Affiliates
shall have any obligation to indemnify or otherwise hold a Participant harmless from any or all of such taxes or penalties.

 

    	21

    	 

    

 

Section 18.  Term of the Plan.

 

(a)               
Effective Date. The Plan shall be effective as of ________, 2015, which was the date of its approval by the Board
(the “Effective Date”), subject to approval of the Plan by the stockholders of the Company within 12 months
of the Effective Date (with such approval of stockholders being a condition to the right of each Participant to receive any Awards
or benefits hereunder). Any Awards granted under the Plan prior to such approval of stockholders shall be effective as of the date
of grant (unless, with respect to any Award, the Committee specifies otherwise at the time of grant), but no such Award may be
exercised or settled, and no restrictions relating to any Award may lapse, prior to such stockholder approval, and if stockholders
fail to approve the Plan as specified hereunder, any such Award shall be canceled. Subject to approval of the Plan by the stockholders
of the Company within 12 months of the Effective Date, no award grants will be made under the Existing Plans on or after
the Effective Date, except that outstanding awards granted under the Existing Plans shall continue unaffected from and after the
Effective Date.

 

(b)              
Expiration Date. No Award will be granted under the Plan more than ten years after the Effective Date, but all Awards
granted on or prior to such date will continue in effect thereafter subject to the terms thereof and of the Plan.

 

    	22Exhibit 10.2

 

SHAREHOLDER INDEMNIFICATION AGREEMENT

 

This INDEMNIFICATION AGREEMENT, dated as
of      (this “Agreement”), is between Turning Point Brands, Inc., a Delaware corporation
(the “Company”), and Standard General Master Fund L.P., a limited partnership organized under the laws
of the Cayman Islands (“Standard General”).

 

RECITALS

 

A.               
The Company intends to effect an initial public offering (the “IPO”) of its common stock, pursuant
to a registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission; and

 

B.                
The parties hereto recognize the possibility that claims might be made against, and liabilities incurred by, Standard General
or related Persons or Affiliates under applicable securities laws or otherwise in connection with the IPO, and the parties hereto
accordingly wish to provide for Standard General and related Persons and Affiliates to be indemnified in respect of any such claims
and liabilities.

 

NOW, THEREFORE, in consideration of the
foregoing premises, and the mutual agreements and covenants and provisions herein set forth, the parties hereto hereby agree as
follows:

 

1.                 
Definitions.

 

(a)               
“Affiliate” means, with respect to any Person, (i) any other Person directly or indirectly
Controlling, Controlled by or under common Control with, such Person (ii) any Person directly or indirectly owning or Controlling 10%
or more of any class of outstanding voting securities of such Person or (iii) any officer, director, general partner, special
limited partner or trustee of any such Person described in clause (i) or (ii).

 

(b)              
“Claim” means (i) any threatened, asserted, pending or completed claim, demand, action, suit
or proceeding, whether civil, criminal, administrative, arbitrative, investigative or other, and whether made pursuant to federal,
state or other law; and (ii) any inquiry or investigation, whether made, instituted or conducted, by the Company or any other
Person, including without limitation any federal, state or other governmental entity, that Indemnitee determines might lead to
the institution of any such claim, demand, action, suit or proceeding. For the avoidance of doubt, the Company intends indemnity
to be provided hereunder in respect of acts or failure to act prior to, on or after the date hereof.

 

(c)               
“Commission” means the United States Securities and Exchange Commission or any successor entity
thereto.

 

(d)               
 “Company Group” means the Company and each of its subsidiaries.

 

    	 

    	 

    

 

(e)              
“Control” of any Person means the power to direct the management and policies of such Person (whether
through the ownership of voting securities, by contract, as trustee or executor, as general partner, or otherwise).

 

(f)               
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

 

(g)              
“Expenses” means all attorneys’ and experts’ fees and expenses and all other costs
and expenses paid or payable in connection with investigating, defending, being a witness in or participating in (including on
appeal), or preparing to investigate, defend, be a witness in or participate in (including on appeal), any Claim.

 

(h)               
“Indemnifiable Claim” means, with respect to any Indemnitee, any Claim by or against
such Indemnitee involving any Losses with respect to which such Indemnitee may be entitled to be indemnified by the Company under
this Agreement.

 

(i)               
“Indemnitee” means Standard General, its Affiliates (other than any member of the Company Group),
and the directors, officers, partners, members, employees, agents, advisors, consultants, representatives and controlling persons
(within the meaning of the Securities Act) of each of them, in each case irrespective of the capacity in which such person acts.

 

(j)              
“Losses” means any and all Expenses, damages, losses, liabilities, judgments, fines, penalties
(whether civil, criminal or other), ERISA excise taxes or penalties and amounts paid or payable in settlement, including without
limitation all interest, assessments and other charges paid or payable in connection with or in respect of any of the foregoing.

 

(k)              
“Person” means any individual, entity, or group, within the meaning of Section 13(d)(3) or 14(d)(2)
of the Securities Exchange Act.

 

(l)                
“Related Document” means any agreement, certificate, instrument or other document to which any
member of the Company Group may be a party or by which it or any of its properties or assets may be bound or affected from time
to time relating in any way to the Offering or any of the transactions contemplated thereby, including without limitation, in each
case as the same may be amended from time to time, (i) any registration statement filed by or on behalf of any member of the Company
Group with the Commission in connection with the Offering, including all exhibits, financial statements and schedules appended
thereto, and any submissions to the Commission in connection therewith, (ii) any prospectus, preliminary, final, free writing or
otherwise, included in such registration statements or otherwise filed by or on behalf of any member of the Company Group in connection
with the Offering, (iii) any private placement or offering memorandum or circular, information statement or other information or
materials distributed by or on behalf of any member of the Company Group or any placement agent or underwriter in connection with
the Offering, (iv) any federal, state or foreign securities law or other governmental or regulatory filings or applications made
in connection with any Offering or any of the transactions contemplated thereby, (v) any dealer-manager, underwriting, subscription,
purchase, stockholders, option or registration rights agreement or plan entered into or adopted by any member of the Company Group
in connection with the Offering, or (vi) any quarterly, annual or current reports or other filing filed, furnished or supplementally
provided by any member of the Company Group with or to the Commission or any securities exchange, including all exhibits, financial
statements and schedules appended thereto, and any submission to the Commission or any securities exchange in connection therewith.

 

    	2

    	 

    

 

(m)                
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

 

2.                 
Indemnification.

 

(a)               
The Company agrees to indemnify, defend and hold harmless each Indemnitee, to the fullest extent permitted by law, from
and against any and all Losses in any way resulting from, arising out of or in connection with, based upon or relating to (i) the
Securities Act, the Exchange Act or any other applicable securities or other laws, in connection with the IPO, any Related Document
or any of the transactions contemplated thereby, (ii) any other action or failure to act of any member of the Company Group
or any of their predecessors, whether such action or failure has occurred or is yet to occur, (iii) the fact that such Indemnitee
is or was a stockholder of any member of the Company Group, (iv) any breach or alleged breach by such Indemnitee of any duty
imposed on a stockholder, officer or director, or (v) any transaction described in the registration statement on Form S-1 for the
IPO under the heading “Certain Relationships and Transactions” to which Standard General or any Affiliate thereof is
a party; provided, however, that no Indemnitee shall have a right to indemnification, advancement of expenses or exculpation from
liability hereunder in respect of the Company Group’s rights or remedies under any Indemnitee’s contractual obligation
to the Company Group.

 

(b)              
Without in any way limiting the foregoing Section 2(a), the Company agrees to indemnify, defend and hold harmless each
Indemnitee from and against any and all Losses resulting from, arising out of or in connection with, based upon or relating to
liabilities under the Securities Act, the Exchange Act or any other applicable securities or other laws, rules or regulations in
connection with (i) the inaccuracy or breach of or default under any representation, warranty, covenant or agreement in any
Related Document, or any allegation thereof, (ii) any untrue statement or alleged untrue statement of a material fact contained
in any Related Document or (iii) any omission or alleged omission to state in any Related Document a material fact required
to be stated therein or necessary to make the statements therein not misleading. Notwithstanding the foregoing, the Company shall
not be obligated to indemnify such Indemnitee from and against any such Losses to the extent that such Losses arise out of or are
based upon an untrue statement or omission made in any Related Document in reliance upon and in conformity with written information
furnished to the Company by such Indemnitee in an instrument duly executed by such Indemnitee and specifically stating that it
is for use in the preparation of any Related Document.

 

(c)               
Subject to Section 2(d), without in any way limiting the foregoing, in the event that any Claim is initiated by an
Indemnitee, any member of the Company Group or any other Person to enforce or interpret this Agreement, any rights of such Indemnitee
to indemnification or advancement of Expenses (or related obligations of such Indemnitee) under any member of the Company Group’s
certificate of incorporation or bylaws or other similar organizational document (collectively, the “Constituent Documents”),
any other agreement to which Indemnitee and any member of the Company Group are party, any vote of directors of any member of the
Company Group, the Delaware General Corporation Law or any other applicable law or any liability insurance policy, the Company
shall indemnify such Indemnitee against all Expenses incurred by such Indemnitee or on such Indemnitee’s behalf in connection
with such Claim, whether or not such Indemnitee is successful in such Claim, except to the extent that the Person presiding over
such Claim determines that material assertions made by such Indemnitee in such proceeding were in bad faith or were frivolous.

 

    	3

    	 

    

 

(d)              
Notwithstanding the foregoing, indemnification shall not be available to the extent that it is finally determined by a court,
in a final judgment from which no further appeal may be taken, that such Losses arises out of, or is primarily based upon, the
gross negligence or willful misconduct of the Indemnitee.

 

(e)               
Notwithstanding anything in this Section 2 to the contrary, it is understood and agreed that nothing in this Agreement
is intended to provide for indemnification in respect of taxes imposed on the basis of income of an Indemnitee.

 

3.                 
Contribution.

 

(a)               
If for any reason the indemnity specifically provided for in Section 2 is unavailable or is insufficient to hold harmless
any Indemnitee from any Losses covered by such indemnity, then the Company, shall contribute to the amount paid or payable by such
Indemnitee as a result of such Losses in such proportion as is appropriate to reflect (i) the relative fault of each of the
members of the Company Group, on the one hand, and such Indemnitee, on the other, in connection with the state of facts giving
rise to such Losses, (ii) the relative benefits received by the members of the Company Group, on the one hand, and such Indemnitee,
on the other, from the IPO or other circumstances giving rise to such Losses and (iii) if required by applicable law, any
other relevant equitable considerations.

 

(b)              
For purposes of Section 3(a), the relative fault of each member of the Company Group, on the one hand, and of an Indemnitee,
on the other, shall be determined by reference to, among other things, (i) their respective relative intent, knowledge, access
to information and opportunity to correct the state of facts giving rise to such Losses, (ii) in the case of Section 2(b),
whether the information whose inclusion in or omission from any Related Document resulted in the actual or alleged inaccuracy or
breach of or default under any representation, warranty, covenant or agreement therein, or which is or is alleged to be untrue,
required to be stated therein or necessary to make the statements therein not misleading, was supplied or should have been supplied
by the members of the Company Group, on the one hand, or by such Indemnitee, on the other, and (iii) applicable law, and the
relative benefits received by each member of the Company Group, on the one hand, and an Indemnitee, on the other, shall be determined
by weighing the direct monetary proceeds to the Company Group, on the one hand, and such Indemnitee, on the other, from the IPO
or other circumstances giving rise to such Losses.

 

(c)               
The parties hereto acknowledge and agree that it would not be just and equitable if the Company’s contributions pursuant
to Section 3 were determined by pro rata allocation or by any other method of allocation that does not take into account the
equitable considerations referred to in such Section. No Indemnitee shall be entitled to contribution from the Company with respect
to any Losses covered by the indemnity specifically provided for in Section 2(b) in the event that such Indemnitee is finally
determined to be guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection
with such Losses and the Company is not guilty of such fraudulent misrepresentation.

 

    	4

    	 

    

 

4.                 
Indemnification Procedures.

 

(a)               
To obtain indemnification under this Agreement in respect of an Indemnifiable Claim or Loss, Indemnitee shall submit to
the Company a written request therefor, including a brief description (based upon information then available to Indemnitee) of
such Indemnifiable Claim or Loss. The failure by Indemnitee to timely notify the Company of any Indemnifiable Claim or Loss shall
not relieve the Company from any liability hereunder unless, and only to the extent that, the Company did not otherwise learn of
such Indemnifiable Claim or Loss and such failure results in forfeiture by the Company of substantial defenses, rights or insurance
coverage. The Company shall be entitled to participate in the defense of any Indemnifiable Claim or to assume or lead the defense
thereof with counsel reasonably satisfactory to the Indemnitee; provided that if Indemnitee determines, after consultation with
counsel selected by Indemnitee, that (i) the use of counsel chosen by the Company to represent Indemnitee would present such
counsel with an actual or potential conflict, (ii) the named parties in any such Indemnifiable Claim (including any impleaded
parties) include both the Company and Indemnitee and Indemnitee shall conclude that there may be one or more legal defenses available
to him or her that are different from or in addition to those available to the Company or (iii) Indemnitee has interests in
the claim or underlying subject matter that are different from or in addition to those of other Persons against whom the Indemnifiable
Claim has been made or might reasonably be expected to be made, then Indemnitee shall be entitled to retain separate counsel (but
not more than one law firm plus, if applicable, local counsel in respect of any particular Indemnifiable Claim for all indemnitees
in Indemnitee’s circumstances) at the Company’s expense. The Company shall not be liable to Indemnitee under this Agreement
for any amounts paid in settlement of any threatened or pending Indemnifiable Claim effected without the Company’s prior
written consent. The Company shall not, without the prior written consent of the Indemnitee, effect any settlement of any threatened
or pending Indemnifiable Claim which the Indemnitee is or could have been a party unless such settlement solely involves the payment
of money and includes a complete and unconditional release of the Indemnitee from all liability on any claims that are the subject
matter of such Indemnifiable Claim.

 

(b)              
Indemnitee shall have the right to advancement by the Company prior to the final disposition of any Indemnifiable Claim
of any and all Expenses relating to, arising out of or resulting from any Indemnifiable Claim paid or incurred by Indemnitee or
which Indemnitee determines in good faith are reasonably likely to be paid or incurred by Indemnitee and as to which Indemnitee’s
counsel provides supporting documentation. Without limiting the generality or effect of the foregoing, within 20 days
after any request by Indemnitee that is accompanied by supporting documentation for specific Expenses to be reimbursed or advanced,
the Company shall, in accordance with such request (but without duplication), (i) pay such Expenses on behalf of Indemnitee,
(ii) advance to Indemnitee funds in an amount sufficient to pay such Expenses, or (iii) reimburse Indemnitee for such
Expenses; provided that Indemnitee shall repay, without interest any amounts actually advanced to Indemnitee that, at the final
disposition of the Indemnifiable Claim to which the advance related, were in excess of amounts paid or payable by Indemnitee in
respect of Expenses relating to, arising out of or resulting from such Indemnifiable Claim. In connection with any such payment,
advancement or reimbursement, at the request of the Company, Indemnitee shall execute and deliver to the Company an undertaking,
which need not be secured and shall be accepted without reference to Indemnitee’s ability to repay the Expenses, by or on
behalf of the Indemnitee, to repay any amounts paid, advanced or reimbursed by the Company in respect of Expenses relating to,
arising out of or resulting from any Indemnifiable Claim in respect of which it shall have been determined, following the final
disposition of such Claim that Indemnitee is not entitled to indemnification hereunder.

 

    	5

    	 

    

 

(c)               
Presumptions; Burden and Standard of Proof. In connection with any determination regarding the entitlement of any
Indemnitee to be indemnified, or any review of any such determination, by any Person:

 

(i)                
It shall be a presumption that such Indemnitee has met any applicable standard of conduct and that indemnification of such
Indemnitee is proper in the circumstances.

 

(ii)              
The burden of proof shall be on the Company to overcome the presumption set forth in the preceding clause (i), and
such presumption shall only be overcome only by the Company adducing clear and convincing evidence to the contrary.

 

(iii)            
The termination of any Claim by judgment, order, finding, award, settlement (whether with or without court approval) or
conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that indemnification is not proper
or that an Indemnitee did not meet any applicable standard of conduct or that a court has determined that indemnification is not
permitted by this Agreement or otherwise.

 

5.                 
Certain Covenants. The rights of each Indemnitee to be indemnified under any other agreement, document, certificate
or instrument, by-laws or other organizational agreement or instrument, insurance policy or applicable law (collectively, “Other
Indemnity Provisions”) are independent of and in addition to any rights of such Indemnitee to be indemnified under
this Agreement, provided that to the extent that an Indemnitee is entitled to be indemnified by the Company under this Agreement
and by any other Indemnitee under any other agreement, document, certificate, by-law or other organizational agreement or instrument,
or by any insurer under a policy maintained by any other Indemnitee, the obligations of the Company hereunder shall be primary,
and the obligations of such other Indemnitee or insurer secondary, and the Company shall not be entitled to contribution or indemnification
from or subrogation against such other Indemnitee or insurer. Notwithstanding the foregoing, any Indemnitee may choose to seek
indemnification from any potential source of indemnification regardless of whether such indemnitor is primary or secondary. An
Indemnitee’s election to seek advancement of indemnified sums from any secondary indemnifying party will not limit the right
of such Indemnitee, or any secondary indemnitor proceeding under subrogation rights or otherwise, from seeking indemnification
from the Company to the extent that the obligations of the Company are primary, and the Company agrees to indemnify each Indemnitee
from and against, and to pay to each Indemnitee, any amount paid or reimbursed by such Indemnitee to or on behalf of another indemnitee,
pursuant to indemnification arrangements or otherwise, in respect of the Losses referred to in Section 2. The rights of each
Indemnitee and the obligations of the Company hereunder shall remain in full force and effect regardless of any investigation made
by or on behalf of such Indemnitee. Following the Offering, each member of the Company Group, and each of their corporate successors,
shall implement and maintain in full force and effect any and all corporate charter and by-law (or similar organizational document
or instrument) provisions that may be necessary or appropriate to enable it to carry out its obligations hereunder to the fullest
extent permitted by applicable law, including without limitation a provision of its certificate of incorporation (or comparable
organizational document under its jurisdiction of incorporation) eliminating liability of a director for breach of fiduciary duty
to the fullest extent permitted by applicable law, as amended from time to time. The Company shall not seek or agree to any order
of any court or other governmental authority that would prohibit or otherwise interfere, and shall not take or fail to take any
other action if such action or failure would reasonably be expected to have the effect of prohibiting or otherwise interfering,
with the performance of the Company’s indemnification, advancement or other obligations under this Agreement.

 

    	6

    	 

    

 

6.                 
No Duplication of Payments. The Company shall not be liable under this Agreement to make any payment to Indemnitee
in respect of any Losses to the extent Indemnitee has otherwise already actually received payment (net of Expenses incurred in
connection therewith) under any insurance policy, the Constituent Documents and Other Indemnity Provisions or otherwise in respect
of such Losses otherwise indemnifiable hereunder.

 

7.                 
Notices. For all purposes of this Agreement, all communications, including without limitation notices, consents,
requests or approvals, required or permitted to be given hereunder must be in writing and shall be deemed to have been duly given
when hand delivered or dispatched by electronic facsimile or other electronic transmission (with receipt thereof orally confirmed),
or one business day after having been sent for next day delivery by a nationally recognized overnight courier service as follows:

 

(a)               
If to the Company, to:

 

Turning Point Brands, Inc.

5201 Interchange Way

Louisville, Kentucky 40229

Attention: James Dobbins

Facsimile: (●)

Email: jdobbins@natcinc.net

 

with a copy to (which shall not constitute notice):

 

Milbank, Tweed, Hadley & McCloy LLP

28 Liberty Street

New York, New York 10005

Attention: David Zeltner

Facsimile: (212) 822-5003

Email: dzeltner@milbank.com

 

    	7

    	 

    

 

(b)              
If to Standard General, to:

 

         

 

or to such other address as either party
may have furnished to the other in writing and in accordance herewith, except that notices of changes of address will be effective
only upon receipt.

 

8.                 
Governing Law. The validity, interpretation, construction and performance of this Agreement shall be governed by
and construed in accordance with the substantive laws of the State of Delaware, without giving effect to the principles of conflict
of laws of such State. The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the Chancery Court of
the State of Delaware for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement,
waive all procedural objections to suit in that jurisdiction, including without limitation objections as to venue or inconvenience,
agree that service in any such action may be made by notice given in accordance with Section 7 and also agree that any action
instituted under this Agreement shall be brought only in the Chancery Court of the State of Delaware.

 

9.                 
Severability. If any provision of this Agreement or the application of any provision hereof to any Person or circumstance
is held invalid, unenforceable or otherwise illegal, the remainder of this Agreement and the application of such provision to any
other Person or circumstance shall not be affected, and the provision so held to be invalid, unenforceable or otherwise illegal
shall be reformed to the extent, and only to the extent, necessary to make it enforceable, valid or legal. In the event that any
court or other adjudicative body shall decline to reform any provision of this Agreement held to be invalid, unenforceable or otherwise
illegal as contemplated by the immediately preceding sentence, the parties thereto shall take all such action as may be necessary
or appropriate to replace the provision so held to be invalid, unenforceable or otherwise illegal with one or more alternative
provisions that effectuate the purpose and intent of the original provisions of this Agreement as fully as possible without being
invalid, unenforceable or otherwise illegal.

 

10.             
Successors; Binding Effect. The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation, reorganization or otherwise) to all or substantially all of the business or assets of the Company expressly to assume
and agree to perform this Agreement in the same manner and to the same extent the Company would be required to perform if no such
succession had taken place. This Agreement shall be binding upon and inure to the benefit of each party hereto and its successors
and permitted assigns, and each other Indemnitee, but neither this Agreement nor any right, interest or obligation hereunder shall
be assigned, by the Company without the prior written consent of Standard General. Insofar as any Indemnitee transfers all or substantially
all of its assets to a third party, such third party shall thereupon be deemed an additional Indemnitee for all purposes of this
Agreement, with the same effect as if it were a signatory to this Agreement in such capacity.

 

11.             
Miscellaneous. No provision of this Agreement may be waived, modified or discharged unless such waiver, modification
or discharge is agreed to in writing signed by such Indemnitee and the Company. No waiver by either party hereto at any time of
any breach by the other party hereto or compliance with any condition or provision of this Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.
No agreements or representations, oral or otherwise, expressed or implied with respect to the subject matter hereof have been made
by either party that are not set forth expressly in this Agreement. This Agreement constitutes the entire agreement, and supersede
all prior agreements and understandings, both written and oral, between the parties hereto with respect to the subject matter of
this Agreement. Any prior agreements or understandings between the parties hereto with respect to indemnification are hereby terminated
and of no further force or effect. This Agreement may be executed in one or more counterparts, each of which will be deemed to
be an original but all of which together shall constitute one and the same agreement.

 

    	8

    	 

    

 

12.             
Certain Interpretive Matters. Unless the context of this Agreement otherwise requires, (a) “it” or “its”
or words of any gender include each other gender, (b) words using the singular or plural number also include the plural or
singular number, respectively, (c) the terms “hereof,” “herein,” “hereby” and derivative
or similar words refer to this entire Agreement, (d) the terms “Article,” “Section,” “Annex”
or “Exhibit” refer to the specified Article, Section, Annex or Exhibit of or to this Agreement, (e) the terms
“include,” “includes” and “including” will be deemed to be followed by the words “without
limitation” (whether or not so expressed), and (f) the word “or” is disjunctive but not exclusive. Whenever
this Agreement refers to a number of days, such number will refer to calendar days unless business days are specified and whenever
action must be taken (including the giving of notice or the delivery of documents) under this Agreement during a certain period
of time or by a particular date that ends or occurs on a non-business day, then such period or date will be extended until the
immediately following business day. As used herein, “business day” means any day other than Saturday, Sunday or a United
States federal holiday.

 

[SIGNATURES ON NEXT PAGE]

 

    	9

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
duly executed this Agreement by their authorized representatives as of the date first above written.

 

	 	TURNING POINT BRANDS, INC.
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	STANDARD GENERAL MASTER FUND L.P.
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

[Signature Page to Shareholder Indemnification
Agreement]

 

    	10

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