Document:

WARRANT AGREEMENT

 

THIS WARRANT AGREEMENT
(this “Warrant Agreement”), dated as of June 12, 2014, is by and among Glori Energy Inc. (f/k/a Glori
Acquisition Corp.), a Delaware corporation (the “Company”), and Continental Stock Transfer & Trust
Company, a New York corporation, as warrant agent (the “Warrant Agent”). Reference is hereby made to
that certain Warrant Agreement dated July 19, 2012 between the Company and the Warrant Agent (as amended by Amendment No. 1 to
Warrant Agreement dated April 14, 2014, the “Existing Warrant Agreement”). Capitalized terms used but
not defined herein shall have the meanings given to such terms in the Existing Warrant Agreement.

 

WHEREAS, on
January 8, 2014, the Company executed and delivered Promissory Notes (the “Sponsor Notes”), each in the
principal amount of $250,000, to Infinity–C.S.V.C. Management Ltd. (“Infinity Sponsor”) and HH
Energy Group, LP (“Hicks Sponsor” and together with Infinity Sponsor, the “Sponsors”);
and

 

WHEREAS, on
April [11], 2014, each of the Sponsors executed and delivered a Notice of Exercise of Optional Conversion to the Company, pursuant
to which, in accordance with the terms of the Sponsor Notes, each Sponsor exercised its right to convert the principal balance
of its Sponsor Note into 500,000 warrants of the Company (the “New Warrants”), each such New Warrant
to have the same terms and conditions as an Insider Warrant (as defined in the Sponsor Notes); and

 

WHEREAS, the
Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with
the issuance, registration, transfer, exchange, redemption and exercise of the New Warrants; and

 

WHEREAS, the
Company desires to provide for the form and provisions of the New Warrants, the terms upon which they shall be issued and exercised,
and the respective rights, limitation of rights, and immunities of the Company, the Warrant Agent, and the holders of the New Warrants;
and

 

WHEREAS, all
acts and things have been done and performed which are necessary to make the New Warrants, when executed on behalf of the Company
and countersigned by or on behalf of the Warrant Agent, as provided herein, the valid, binding and legal obligations of the Company,
and to authorize the execution and delivery of this Warrant Agreement.

 

NOW, THEREFORE,
in consideration of the mutual agreements herein contained, the parties hereto agree as follows:

 

1.           Appointment
of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company for the New Warrants, and the
Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with the terms and conditions set forth
in this Warrant Agreement.

 

2.           Warrants.

 

2.1             Form
of Warrant. Each New Warrant shall be issued in registered form only and shall be in substantially the form of Exhibit A
hereto, the provisions of which are incorporated herein and shall be signed by, or bear the facsimile signature of, the Chairman
of the Board, President, Chief Executive Officer, Chief Financial Officer, Secretary or other principal officer of the Company.
In the event the person whose facsimile signature has been placed upon any New Warrant shall have ceased to serve in the capacity
in which such person signed the New Warrant before such New Warrant is issued, it may be issued with the same effect as if he or
she had not ceased to be such at the date of issuance.

 

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2.2          Effect
of Countersignature. Unless and until countersigned by the Warrant Agent pursuant to this Warrant Agreement, a New Warrant
shall be invalid and of no effect and may not be exercised by the holder thereof.

 

2.3          Registration.

 

2.3.1            Warrant
Register. The Warrant Agent shall maintain books (the “Warrant Register”), for the registration of
original issuance and the registration of transfer of the New Warrants. Upon the initial issuance of the New Warrants, the Warrant
Agent shall issue and register the New Warrants in the names of the respective holders thereof in such denominations and otherwise
in accordance with instructions delivered to the Warrant Agent by the Company.

 

2.3.2            Registered
Holder. Prior to due presentment for registration of transfer of any New Warrant, the Company and the Warrant Agent may deem
and treat the person in whose name such New Warrant is registered in the Warrant Register (the “Registered Holder”)
as the absolute owner of such New Warrant and of each New Warrant represented thereby (notwithstanding any notation of ownership
or other writing on the Warrant Certificate (as defined below) made by anyone other than the Company or the Warrant Agent), for
the purpose of any exercise thereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected
by any notice to the contrary.

 

2.4         Warrant
Attributes.

 

2.4.1            So
long as they are held by the Sponsors or any of their Permitted Transferees (as defined below) the New Warrants: (i) may be
exercised for cash or on a cashless basis, pursuant to subsection 3.3.1(c) hereof, and (ii) shall not be redeemable by the
Company. For purposes of this Warrant Agreement, the term “Permitted Transferees” means anyone that is transferred
New Warrants in the following transactions:

 

(a) as a gift
to such person’s immediate family or to a trust, the beneficiary of which is a member of such person’s immediate family,
an affiliate of such person or to a charitable organization,

 

(b) to the Company’s
or Sponsors’ officers, directors, stockholders, partners or members or any affiliates or family members of any of the Company’s
or Sponsor’s officers or directors,

 

(c) by virtue
of the laws of descent and distribution upon death of such person,

 

(d) pursuant to a qualified
domestic relations order, or

 

(e) by
virtue of the laws of the jurisdiction of incorporation of a Sponsor upon dissolution of such Sponsor.

 

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2.4.2            Mandatory
Right of Conversion. During the period commencing on the date hereof and ending on June 14, 2014, the Company shall have the
right (the “Mandatory Right”) to request mandatory conversion of each New Warrant for 0.10 shares of Common Stock.
In order to effectuate the conversion upon the Company’s exercise of the Mandatory Right, each holder of a New Warrant shall
deliver his, her or its original New Warrant to the Warrant Agent against delivery of a stock certificate for that number of shares
of Common Stock equal to 0.10 shares for each New Warrant. The Company agrees that the registration rights granted with respect
to the New Warrants shall continue with respect to the shares of Common Stock issued in connection with the Mandatory Right.

 

3.          Terms and
Exercise of Warrants.

 

3.1            Warrant
Price. Each New Warrant shall, when countersigned by the Warrant Agent, entitle the Registered Holder thereof, subject to the
provisions of such New Warrant and of this Warrant Agreement, to purchase from the Company the number of shares of common stock
of the Company, par value $0.0001 per share (the “Common Stock”), stated therein, at the price of $10.00
per share, subject to the adjustments provided in Section 4 hereof and in the last sentence of this Section 3.1.
The term “Warrant Price” as used in this Warrant Agreement shall mean the price per share at which shares
of Common Stock may be purchased at the time a New Warrant is exercised. The Company in its sole discretion may lower the Warrant
Price at any time prior to the Expiration Date (as defined below) for a period of not less than twenty (20) Business Days
(as defined below), provided, that the Company shall provide at least twenty (20) days prior written notice of such
reduction to Registered Holders of the New Warrants and, provided further that any such reduction shall be identical
among all of the New Warrants. For purposes of this Warrant Agreement, a “Business Day” means each day
other than a Saturday, Sunday, federal holiday or other day on which banks in New York City are generally not open for normal business.

 

3.2            Duration
of Warrants. A New Warrant may be exercised only during the period (the “Exercise Period”) commencing
on the date hereof, and terminating at 5:00 p.m., New York City time on the earlier to occur of: (x) April 14, 2019 or (y) the
liquidation of the Company (the “Expiration Date”); provided, however, that the exercise
of any New Warrant shall be subject to the satisfaction of any applicable conditions, as set forth in subsection 3.3.2 below
with respect to an effective registration statement. Each New Warrant not exercised on or before the Expiration Date shall become
void, and all rights thereunder and all rights in respect thereof under this Warrant Agreement shall cease at 5:00 p.m. New York
City time on the Expiration Date. The Company in its sole discretion may extend the duration of the New Warrants by delaying the
Expiration Date; provided, that the Company shall provide at least twenty (20) days prior written notice of any such extension
to Registered Holders of the New Warrants and, provided further that any such extension shall be identical in duration among all
the New Warrants.

 

3.3         Exercise of Warrants.

 

3.3.1            Payment.
Subject to the provisions of the New Warrants and this Warrant Agreement, a New Warrant, when countersigned by the Warrant Agent,
may be exercised by the Registered Holder thereof by surrendering it, at the office of the Warrant Agent, or at the office of its
successor as Warrant Agent, in the Borough of Manhattan, City and State of New York, with the subscription form, as set forth in
the New Warrant, duly executed, and by paying in full the Warrant Price for each share of Common Stock as to which the New Warrant
is exercised and any and all applicable taxes due in connection with the exercise of the New Warrant, the exchange of the New Warrant
for the shares of Common Stock and the issuance of such shares of Common Stock, as follows:

 

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(a) by wire transfer
of immediately available funds, in good certified check or good bank draft payable to the order of the Warrant Agent;

 

(b) [reserved];

 

(c) with respect
to the exercise of any New Warrant on a “cashless basis”, so long as such New Warrant is held by the Sponsors or their
Permitted Transferees, by surrendering the New Warrants for that number of shares of Common Stock equal to the quotient obtained
by dividing (x) the product of the number of shares of Common Stock underlying the New Warrants, multiplied by the difference
between the Warrant Price and the “Fair Market Value”, as defined in this subsection 3.3.1(c), by (y) the
Fair Market Value. Solely for purposes of this subsection 3.3.1(c), the “Fair Market Value” shall
mean the average last sale price of the Common Stock for the ten (10) trading days ending on the third trading day prior to
the date on which notice of exercise of the New Warrant is sent to the Warrant Agent;

 

(d) as provided
in Section 7.4 hereof;

 

(e) during the thirty
(30) day period commencing on May 15, 2014, by surrendering the New Warrants for that number of shares of Common Stock equal to
one (1) share of Common Stock for every ten (10) New Warrants so surrendered.

 

3.3.2      Issuance
of Common Stock on Exercise. As soon as practicable after the exercise of any New Warrant and the clearance of the funds in
payment of the Warrant Price (if payment is pursuant to subsection 3.3.1(a)), the Company shall issue to the Registered
Holder of such New Warrant a certificate or certificates for the number of shares of Common Stock to which he, she or it is entitled,
registered in such name or names as may be directed by him, her or it, and if such New Warrant shall not have been exercised in
full, a new countersigned New Warrant for the number of shares as to which such New Warrant shall not have been exercised. Notwithstanding
the foregoing, the Company shall not be obligated to deliver any shares of Common Stock pursuant to the exercise of a New Warrant
and shall have no obligation to settle such New Warrant exercise unless a registration statement under the Securities Act with
respect to the shares of Common Stock underlying the New Warrants is then effective and a prospectus relating thereto is current,
subject to the Company’s satisfying its obligations under Section 7.4. No New Warrant shall be exercisable and
the Company shall not be obligated to issue shares of Common Stock upon exercise of a New Warrant unless the shares of Common Stock
issuable upon such New Warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the
state of residence of the Registered Holder of the New Warrants. In the event that the conditions in the two immediately preceding
sentences are not satisfied with respect to a New Warrant, the holder of such New Warrant shall not be entitled to exercise such
New Warrant and such New Warrant may have no value and expire worthless. In no event will the Company be required to net cash settle
a New Warrant exercise.

 

3.3.3 Valid Issuance.
All shares of Common Stock issued upon the proper exercise of a New Warrant in conformity with this Warrant Agreement shall be
validly issued, fully paid and nonassessable.

 

3.3.4 Date of Issuance.
Each person in whose name any certificate for shares of Common Stock is issued shall for all purposes be deemed to have become
the holder of record of such shares of Common Stock on the date on which the New Warrant was surrendered and payment of the Warrant
Price was made, irrespective of the date of delivery of such certificate, except that, if the date of such surrender and payment
is a date when the share transfer books of the Company are closed, such person shall be deemed to have become the holder of such
shares at the close of business on the next succeeding date on which the share transfer books are open.

 

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3.3.5 Maximum Percentage.
A holder of a New Warrant may notify the Company in writing in the event it elects to be subject to the provisions contained in
this subsection 3.3.5; however, no holder of a New Warrant shall be subject to this subsection 3.3.5 unless
he, she or it makes such election. If the election is made by a holder, the Warrant Agent shall not effect the exercise of the
holder’s New Warrant, and such holder shall not have the right to exercise such New Warrant, to the extent that after giving
effect to such exercise, such person (together with such person’s affiliates), to the Warrant Agent’s actual knowledge,
would beneficially own in excess of 9.8% (the “Maximum Percentage”) of the shares of Common Stock outstanding
immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common
Stock beneficially owned by such person and its affiliates shall include the number of shares of Common Stock issuable upon exercise
of the New Warrant with respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock
that would be issuable upon (x) exercise of the remaining, unexercised portion of the New Warrant beneficially owned by such
person and its affiliates and (y) exercise or conversion of the unexercised or unconverted portion of any other securities
of the Company beneficially owned by such person and its affiliates (including, without limitation, any convertible notes or convertible
preferred stock or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein. Except
as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance
with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For purposes
of the New Warrant, in determining the number of outstanding shares of Common Stock, the holder may rely on the number of outstanding
shares of Common Stock as reflected in (1) the Company’s most recent annual report on Form 10-K, current report of the Company
on Form 8-K or other public filing with the Securities and Exchange Commission (the “Commission”) as
the case may be, (2) a more recent public announcement by the Company or (3) any other notice by the Company or Continental
Stock Transfer & Trust Company, as transfer agent for the Company (the “Transfer Agent”), setting
forth the number of shares of Common Stock outstanding. For any reason at any time, upon the written request of the holder of the
New Warrant, the Company shall, within two (2) Business Days, confirm orally and in writing to such holder the number of shares
of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving
effect to the conversion or exercise of equity securities of the Company by the holder and its affiliates since the date as of
which such number of outstanding shares of Common Stock was reported. By written notice to the Company, the holder of a New Warrant
may from time to time increase or decrease the Maximum Percentage applicable to such holder to any other percentage specified in
such notice; provided, however, that any such increase shall not be effective until the sixty-first (61st) day after
such notice is delivered to the Company.

 

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4. Adjustments.

 

4.1 Share Dividends.

 

4.1.1            Split-Ups.
If after the date hereof, and subject to the provisions of Section 4.6 below, the number of outstanding shares of Common
Stock is increased by a share dividend payable in shares of Common Stock, or by a split-up of shares of Common Stock or other similar
event, then, on the effective date of such share dividend, split-up or similar event, the number of shares of Common Stock issuable
on exercise of each New Warrant shall be increased in proportion to such increase in the outstanding shares of Common Stock. A
rights offering to holders of the shares of Common Stock entitling such holders to purchase shares of Common Stock at a price less
than the “Fair Market Value” (as defined below) shall be deemed a share dividend of a number of shares of Common Stock
equal to the product of (i) the number of shares of Common Stock actually sold in such rights offering (or issuable under
any other equity securities sold in such rights offering that are convertible into or exercisable for the shares of Common Stock)
multiplied by (ii) one (1) minus the quotient of (x) the price per share of Common Stock paid in such rights offering divided
by (y) the Fair Market Value. For purposes of this subsection 4.1.1, (i) if the rights offering is for securities
convertible into or exercisable for shares of Common Stock, in determining the price payable for shares of Common Stock, there
shall be taken into account any consideration received for such rights, as well as any additional amount payable upon exercise
or conversion and (ii) “Fair Market Value” means the volume weighted average price of the Common Stock as reported
during the ten (10) trading day period ending on the trading day prior to the first date on which the Common Stock trade on
the applicable exchange or in the applicable market, regular way, without the right to receive such rights.

 

4.1.2             Extraordinary
Dividends. If the Company, at any time while the New Warrants are outstanding and unexpired, shall pay a dividend or make a
distribution in cash, securities or other assets to the holders of the shares of Common Stock on account of such shares of Common
Stock (or other shares of the Company’s capital stock into which the New Warrants are convertible), other than (a) as
described in subsection 4.1.1 above, or (b) Ordinary Cash Dividends (as defined below), (any such non- excluded event
being referred to herein as an “Extraordinary Dividend”), then the Warrant Price shall be decreased,
effective immediately after the effective date of such Extraordinary Dividend, by the amount of cash and/or the fair market value
(as determined by the Company’s board of directors (the “Board”), in good faith) of any securities
or other assets paid on each share of Common Stock in respect of such Extraordinary Dividend. For purposes of this subsection
4.1.2, “Ordinary Cash Dividends” means any cash dividend or cash distribution which, when combined
on a per share of Common Stock basis, with the per share amounts of all other cash dividends and cash distributions paid on the
shares of Common Stock during the 365-day period ending on the date of declaration of such dividend or distribution (as adjusted
to appropriately reflect any of the events referred to in other subsections of this Section 4 and excluding cash dividends
or cash distributions that resulted in an adjustment to the Warrant Price or to the number of shares of Common Stock issuable on
exercise of each New Warrant) does not exceed $0.40.

 

4.2            Aggregation
of Shares. If after the date hereof, and subject to the provisions of Section 4.6 hereof, the number of outstanding
shares of Common Stock is decreased by a consolidation, combination, reverse share split or reclassification of the Common Stock
or other similar event, then, on the effective date of such consolidation, combination, reverse share split, reclassification or
similar event, the number of shares of Common Stock issuable on exercise of each New Warrant shall be decreased in proportion to
such decrease in outstanding shares of Common Stock.

 

4.3            Adjustments
in Exercise Price. Whenever the number of shares of Common Stock purchasable upon the exercise of the New Warrants is adjusted,
as provided in subsection 4.1.1 or 4.2 above, the Warrant Price shall be adjusted (to the nearest cent) by multiplying
such Warrant Price immediately prior to such adjustment by a fraction (x) the numerator of which shall be the number of shares
of Common Stock purchasable upon the exercise of the New Warrants immediately prior to such adjustment, and (y) the denominator
of which shall be the number of shares of Common Stock so purchasable immediately thereafter.

 

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4.4            Replacement
of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding shares of Common
Stock (other than a change covered by Section 4.1 or 4.2 hereof or that solely affects the par value of such shares of Common Stock),
or in the case of any merger or consolidation of the Company with or into another corporation (other than a consolidation or merger
in which the Company is the continuing corporation and that does not result in any reclassification or reorganization of the outstanding
shares of Common Stock), or in the case of any sale or conveyance to another corporation or entity of the assets or other property
of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the New Warrant
holders shall thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in
the New Warrants and in lieu of the shares of Common Stock of the Company immediately theretofore purchasable and receivable upon
the exercise of the rights represented thereby, the kind and amount of shares of stock or other securities or property (including
cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such
sale or transfer, that the New Warrant holder would have received if such New Warrant holder had exercised his, her or its New
Warrant(s) immediately prior to such event; and if any reclassification also results in a change in Common Stock covered by Section
4.1.1 or 4.2, then such adjustment shall be made pursuant to Sections 4.1, 4.2, 4.3 and this Section 4.4. The provisions of this
Section 4.4 shall similarly apply to successive reclassifications, reorganizations, mergers or consolidations, sales or other transfers.

 

4.5            Notices
of Changes in Warrant. Upon every adjustment of the Warrant Price or the number of shares issuable upon exercise of a New Warrant,
the Company shall give written notice thereof to the Warrant Agent, which notice shall state the Warrant Price resulting from such
adjustment and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise of a New Warrant,
setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the occurrence
of any event specified in Sections 4.1, 4.2, 4.3 or 4.4, the Company shall give written notice of the
occurrence of such event to each holder of a New Warrant, at the last address set forth for such holder in the Warrant Register,
of the record date or the effective date of the event. Failure to give such notice, or any defect therein, shall not affect the
legality or validity of such event.

 

4.6            No
Fractional Shares. Notwithstanding any provision contained in this Warrant Agreement to the contrary, the Company shall not
issue fractional shares upon exercise of New Warrants. If, by reason of any adjustment made pursuant to this Section 4,
the holder of any New Warrant would be entitled, upon the exercise of such Warrant, to receive a fractional interest in a share,
the Company shall, upon such exercise, round up to the nearest whole number, the number of shares of Common Stock to be issued
to such holder.

 

4.7            Form
of Warrant. The form of New Warrant need not be changed because of any adjustment pursuant to this Section 4,
and New Warrants issued after such adjustment may state the same Warrant Price and the same number of shares as is stated in the
New Warrants initially issued pursuant to this Warrant Agreement; provided, however, that the Company may at any
time in its sole discretion make any change in the form of New Warrant that the Company may deem appropriate and that does not
affect the substance thereof, and any New Warrant thereafter issued or countersigned, whether in exchange or substitution for
an outstanding New Warrant or otherwise, may be in the form as so changed.

 

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4.8            Other
Events. In case any event shall occur affecting the Company as to which none of the provisions of preceding subsections of
this Section 4 are strictly applicable, but which would require an adjustment to the terms of the New Warrants in order
to (i) avoid an adverse impact on the New Warrants and (ii) effectuate the intent and purpose of this Section 4,
then, in each such case, the Company shall appoint a firm of independent public accountants, investment banking or other appraisal
firm of recognized national standing, which shall give its opinion as to whether or not any adjustment to the rights represented
by the New Warrants is necessary to effectuate the intent and purpose of this Section 4 and, if they determine that
an adjustment is necessary, the terms of such adjustment. The Company shall adjust the terms of the New Warrants in a manner that
is consistent with any adjustment recommended in such opinion.

 

5. Transfer and Exchange of Warrants.

 

5.1            Registration
of Transfer. The Warrant Agent shall register the transfer, from time to time, of any outstanding New Warrant upon the Warrant
Register, upon surrender of such New Warrant for transfer, properly endorsed with signatures properly guaranteed and accompanied
by appropriate instructions for transfer. Upon any such transfer, a new New Warrant representing an equal aggregate number of New
Warrants shall be issued and the old New Warrant shall be cancelled by the Warrant Agent. The New Warrants so cancelled shall be
delivered by the Warrant Agent to the Company from time to time upon request.

 

5.2            Procedure
for Surrender of Warrants. New Warrants may be surrendered to the Warrant Agent, together with a written request for exchange
or transfer, and thereupon the Warrant Agent shall issue in exchange therefor one or more new New Warrants as requested by the
Registered Holder of the New Warrants so surrendered, representing an equal aggregate number of Warrants; provided, however,
that in the event that a New Warrant surrendered for transfer bears a restrictive legend, the Warrant Agent shall not cancel such
New Warrant and issue new New Warrants in exchange thereof until the Warrant Agent has received an opinion of counsel for the Company
stating that such transfer may be made and indicating whether the new New Warrants must also bear a restrictive legend.

 

5.3            Fractional
Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which shall result in
the issuance of a warrant certificate for a fraction of a warrant.

 

5.4            Service
Charges. No service charge shall be made for any exchange or registration of transfer of New Warrants.

 

5.5            Warrant
Execution and Countersignature. The Warrant Agent is hereby authorized to countersign and to deliver, in accordance with the
terms of this Warrant Agreement, the New Warrants required to be issued pursuant to the provisions of this Section 5,
and the Company, whenever required by the Warrant Agent, shall supply the Warrant Agent with New Warrants duly executed on behalf
of the Company for such purpose.

 

6.            Limited Redemption
Rights.

 

Pursuant to the terms
of the Existing Warrant Agreement, the Company has the ability, in certain circumstances, to redeem all, but not less than all,
of the outstanding Public Warrants (as defined in the Existing Warrant Agreement) on the terms, and subject to the conditions,
set forth in the Existing Warrant Agreement (the “Redemption Right”). The Company agrees that the Redemption
Right shall not apply to New Warrants if at the time of the exercise of the Redemption Right such New Warrants continue to be held
by the Sponsors, partners or affiliates of the Sponsors or their Permitted Transferees. However, once such New Warrants
are transferred (other than to a Sponsor’s partners or affiliates or Permitted Transferees under subsection 2.4.1),
such transferred New Warrants shall be treated, for purposes of the Redemption Right, as if such New Warrants are Public Warrants,
and the Company shall be entitled to redeem such New Warrants (provided that the criteria for redemption set forth in the Existing
Warrant Agreement are met, including the opportunity of the holder of such New Warrants to exercise such New Warrants prior to
redemption) along with the Public Warrants in accordance with the terms, and subject to the conditions, set forth in the Existing
Warrant Agreement.

 

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7. Other Provisions Relating to Rights
of Holders of Warrants.

 

7.1            No
Rights as Shareholder. A New Warrant does not entitle the Registered Holder thereof to any of the rights of a shareholder of
the Company, including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive rights
to vote or to consent or to receive notice as shareholders in respect of the meetings of shareholders or the election of directors
of the Company or any other matter.

 

7.2            Lost,
Stolen, Mutilated, or Destroyed Warrants. If any New Warrant is lost, stolen, mutilated, or destroyed, the Company and the
Warrant Agent may on such terms as to indemnity or otherwise as they may in their discretion impose (which shall, in the case of
a mutilated Warrant, include the surrender thereof), issue a new New Warrant of like denomination, tenor, and date as the Warrant
so lost, stolen, mutilated, or destroyed. Any such new New Warrant shall constitute a substitute contractual obligation of the
Company, whether or not the allegedly lost, stolen, mutilated, or destroyed New Warrant shall be at any time enforceable by anyone.

 

7.3            Reservation
of Common Stock. The Company shall at all times reserve and keep available a number of its authorized but unissued shares of
Common Stock that shall be sufficient to permit the exercise in full of all outstanding New Warrants issued pursuant to this Warrant
Agreement.

 

7.4            Registration
of Common Stock. The Company agrees that as soon as practicable, but in no event later than June 20, 2014, it shall use its
best efforts to file with the Commission a new registration statement, for the registration, under the Securities Act, of the shares
of Common Stock issuable upon exercise of the New Warrants, and it shall use its best efforts to take such action as is necessary
to register or qualify for sale, in those states in which the New Warrants were initially offered by the Company, the shares of
Common Stock issuable upon exercise of the New Warrants, to the extent an exemption is not available. The Company shall use its
best efforts to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current
prospectus relating thereto, until the expiration of the New Warrants in accordance with the provisions of this Warrant Agreement.
If any such registration statement has not been declared effective by July 28, 2014, holders of the New Warrants shall have the
right (in addition to the rights of the Sponsors and their Permitted Transferees under Section 3.3.1(c)), during the period
beginning on July 29, 2014, and ending upon such registration statement being declared effective by the Commission, and during
any other period when the Company shall fail to have maintained an effective registration statement covering the shares of Common
Stock issuable upon exercise of the New Warrants, to exercise such New Warrants on a “cashless basis,” by exchanging
the New Warrants (in accordance with Section 3(a)(9) of the Act or another exemption) for that number of shares of Common
Stock equal to the quotient obtained by dividing (x) the product of the number of shares of Common Stock underlying the Warrants,
multiplied by the difference between the Warrant Price and the “Fair Market Value” (as defined below) by (y) the
Fair Market Value. Solely for purposes of this Section 7.4, “Fair Market Value” shall mean the volume weighted
average price of the shares of Common Stock as reported during the ten (10) trading day period ending on the trading day prior
to the date that notice of exercise is received by the Warrant Agent from the holder of such New Warrants or its securities broker
or intermediary. The date that notice of cashless exercise is received by the Warrant Agent shall be conclusively determined by
the Warrant Agent. The Company shall provide the Warrant Agent with an opinion of counsel for the Company (which shall be an outside
law firm with securities law experience) stating that (i) the exercise of the New Warrants on a cashless basis in accordance
with this Section 7.4 is not required to be registered under the Securities Act and (ii) the shares of Common
Stock issued upon such exercise shall be freely tradable under United States federal securities laws by anyone who is not an affiliate
(as such term is defined in Rule 144 under the Securities Act) of the Company and, accordingly, shall not be required to bear
a restrictive legend. For the avoidance of any doubt, unless and until all of the New Warrants have been exercised on a cashless
basis, the Company shall continue to be obligated to comply with its registration obligations under the first three sentences of
this Section 7.4. In addition, the Company agrees to use its best efforts to register the shares of Common Stock issuable
upon exercise of a New Warrant under the blue sky laws of the states of residence of the exercising New Warrant holder to the extent
an exemption is not available.

 

    	9

    	 

    

  

8. Concerning the Warrant Agent and
Other Matters.

 

8.1          Payment
of Taxes. The Company shall from time to time promptly pay all taxes and charges that may be imposed upon the Company or the
Warrant Agent in respect of the issuance or delivery of shares of Common Stock upon the exercise of the New Warrants, but the Company
shall not be obligated to pay any transfer taxes in respect of the New Warrants or such shares.

 

8.2          Resignation,
Consolidation, or Merger of Warrant Agent.

 

8.2.1            Appointment
of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be discharged
from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If
the office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint in writing
a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period of
thirty (30) days after it has been notified in writing of such resignation or incapacity by the Warrant Agent or by the holder
of a New Warrant (who shall, with such notice, submit his New Warrant for inspection by the Company), then the holder of any New
Warrant may apply to the Supreme Court of the State of New York for the County of New York for the appointment of a successor Warrant
Agent at the Company’s cost. Any successor Warrant Agent, whether appointed by the Company or by such court, shall be a corporation
organized and existing under the laws of the State of New York, in good standing and having its principal office in the Borough
of Manhattan, City and State of New York, and authorized under such laws to exercise corporate trust powers and subject to supervision
or examination by federal or state authority. After appointment, any successor Warrant Agent shall be vested with all the authority,
powers, rights, immunities, duties, and obligations of its predecessor Warrant Agent with like effect as if originally named as
Warrant Agent hereunder, without any further act or deed; but if for any reason it becomes necessary or appropriate, the predecessor
Warrant Agent shall execute and deliver, at the expense of the Company, an instrument transferring to such successor Warrant Agent
all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and upon request of any successor Warrant Agent
the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting
in and confirming to such successor Warrant Agent all such authority, powers, rights, immunities, duties, and obligations.

 

    	10

    	 

    

  

8.2.2            Notice
of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof
to the predecessor Warrant Agent and the Transfer Agent for the Common Stock not later than the effective date of any such appointment.

 

8.2.3            Merger
or Consolidation of Warrant Agent. Any corporation into which the Warrant Agent may be merged or with which it may be consolidated
or any corporation resulting from any merger or consolidation to which the Warrant Agent shall be a party shall be the successor
Warrant Agent under this Warrant Agreement without any further act.

 

8.3          Fees
and Expenses of Warrant Agent.

 

8.3.1 Remuneration.
The Company agrees to pay the Warrant Agent reasonable remuneration for its services as such Warrant Agent hereunder and shall,
pursuant to its obligations under this Warrant Agreement, reimburse the Warrant Agent upon demand for all expenditures that the
Warrant Agent may reasonably incur in the execution of its duties hereunder.

 

8.3.2   Further
Assurances. The Company agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed, acknowledged,
and delivered all such further and other acts, instruments, and assurances as may reasonably be required by the Warrant Agent for
the carrying out or performing of the provisions of this Warrant Agreement.

 

8.4           Liability
of Warrant Agent.

 

8.4.1            Reliance
on Company Statement. Whenever in the performance of its duties under this Warrant Agreement, the Warrant Agent shall deem
it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action
hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be
conclusively proved and established by a statement signed by the President or Chairman of the Board of the Company and delivered
to the Warrant Agent. The Warrant Agent may rely upon such statement for any action taken or suffered in good faith by it pursuant
to the provisions of this Warrant Agreement.

 

8.4.2            Indemnity.
The Warrant Agent shall be liable hereunder only for its own gross negligence, willful misconduct or bad faith. The Company agrees
to indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments, costs and reasonable
counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Warrant Agreement, except as a result
of the Warrant Agent’s gross negligence, willful misconduct or bad faith.

 

8.4.3            Exclusions.
The Warrant Agent shall have no responsibility with respect to the validity of this Warrant Agreement or with respect to the validity
or execution of any Warrant (except its countersignature thereof). The Warrant Agent shall not be responsible for any breach by
the Company of any covenant or condition contained in this Warrant Agreement or in any New Warrant. The Warrant Agent shall not
be responsible to make any adjustments required under the provisions of Section 4 hereof or responsible for the manner,
method, or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment;
nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any
Common Stock to be issued pursuant to this Warrant Agreement or any New Warrant or as to whether any shares of Common Stock shall,
when issued, be valid and fully paid and nonassessable.

 

    	11

    	 

    

 

8.5            Acceptance
of Agency. The Warrant Agent hereby accepts the agency established by this Warrant Agreement and agrees to perform the same
upon the terms and conditions herein set forth and among other things, shall account promptly to the Company with respect to New
Warrants exercised and concurrently account for, and pay to the Company, all monies received by the Warrant Agent for the purchase
of Common Stock through the exercise of the New Warrants.

 

8.6            Waiver.
The Warrant Agent has no right of set-off or any other right, title, interest or claim of any kind (“Claim”)
in, or to any distribution of, the Trust Account (as defined in that certain Investment Management Trust Agreement, dated as of
July 19, 2012, by and between the Company and the Warrant Agent as trustee thereunder) and hereby agrees not to seek recourse,
reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason whatsoever. The Warrant Agent hereby
waives any and all Claims against the Trust Account and any and all rights to seek access to the Trust Account.

 

9.           Miscellaneous
Provisions.

 

9.1            Successors.
All the covenants and provisions of this Warrant Agreement by or for the benefit of the Company or the Warrant Agent shall bind
and inure to the benefit of their respective successors and assigns.

 

9.2            Notices.
All notices, statements or other documents which are required or contemplated by this Warrant Agreement to be given or made by
the Warrant Agent or by the holder of any New Warrant to or on the Company shall be: (i) in writing and delivered personally or
sent by first class registered or certified mail, overnight courier service or facsimile or electronic transmission to the address
designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address or fax number
as may be designated in writing by such party and (iii) by electronic mail, to the electronic mail address most recently provided
to such party or such other electronic mail address as may be designated in writing by such party.  Any notice or other
communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the business
day following receipt of written confirmation, if sent by facsimile or electronic transmission, one (1) business day after delivery
to an overnight courier service or five (5) days after mailing if sent by mail.

 

Addresses for notice:

 

Glori Energy Inc.

4315 South Drive

Houston, TX 77053

Attn: Stuart M.
Page

Facsimile: (713) 237-8585

Email: spage@glorienergy.com

 

Continental Stock Transfer & Trust Company

17 Battery Place

New York, New York 10004

Attention: Compliance Department

 

    	12

    	 

    

  

with a copy in each case (which shall not constitute service)
to:

 

Norton Rose Fulbright

1301 McKinney, Suite 5100

Houston, TX 77010-3095

Attn: Charles Powell

Facsimile: (713) 651-5246

Email: charles.powell@nortonrosefulbright.com

 

Ellenoff Grossman & Schole LLP

1345 Avenue of the Americas, 11th Floor

New York, NY 10105

Attn: Stuart Neuhauser

Facsimile: (202) 370-1300

Email: sneuhauser@egsllp.com

 

Akin Gump Strauss Hauer & Feld LLP

1700 Pacific Avenue, Suite 4100

Dallas, TX 75201

Attn: Robert W. Dockery

Facsimile: (214) 969-4343

Email: rdockery@akingump.com

 

9.3            Applicable
Law. The validity, interpretation, and performance of this Warrant Agreement and of the New Warrants shall be governed in all
respects by the laws of the State of New York, without giving effect to conflicts of law principles that would result in the application
of the substantive laws of another jurisdiction. The Company hereby agrees that any action, proceeding or claim against it arising
out of or relating in any way to this Warrant Agreement shall be brought and enforced in the courts of the State of New York or
the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction
shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient
forum.

 

9.4            Persons
Having Rights under this Warrant Agreement. Nothing in this Warrant Agreement expressed and nothing that may be implied from
any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than
the parties hereto and the Registered Holders of the New Warrants, any right, remedy, or claim under or by reason of this Warrant
Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. All covenants, conditions, stipulations, promises,
and agreements contained in this Warrant Agreement shall be for the sole and exclusive benefit of the parties hereto and their
successors and assigns and of the Registered Holders of the Warrants.

 

9.5            Examination
of the Warrant Agreement. A copy of this Warrant Agreement shall be available at all reasonable times at the office of the
Warrant Agent in the Borough of Manhattan, City and State of New York, for inspection by the Registered Holder of any New Warrant.
The Warrant Agent may require any such holder to submit his New Warrant for inspection by it.

 

    	13

    	 

    

  

9.6            Counterparts.
This Warrant Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall
for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

9.7            Effect
of Headings. The section headings herein are for convenience only and are not part of this Warrant Agreement and shall not
affect the interpretation thereof.

 

9.8             Amendments.
This Warrant Agreement may be amended by the parties hereto without the consent of any Registered Holder for the purpose of curing
any ambiguity, or curing, correcting or supplementing any defective provision contained herein or adding or changing any other
provisions with respect to matters or questions arising under this Warrant Agreement as the parties may deem necessary or desirable
and that the parties deem shall not adversely affect the interest of the Registered Holders. All other modifications or amendments,
including any amendment to increase the Warrant Price or shorten the Exercise Period, shall require the written consent of the
Registered Holders of a majority of the then outstanding New Warrants. Notwithstanding the foregoing, the Company may lower the
Warrant Price or extend the duration of the Exercise Period pursuant to Sections 3.1 and 3.2, respectively,
without the consent of the Registered Holders.

 

9.9            Severability.
This Warrant Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall
not affect the validity or enforceability of this Warrant Agreement or of any other term or provision hereof. Furthermore, in lieu
of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Warrant
Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

 

Exhibit A —
Form of Warrant Certificate

 

    	14

    	 

    

  

 IN WITNESS WHEREOF,
the parties hereto have caused this Warrant Agreement to be duly executed as of the date first above written.

 

	 	GLORI ENERGY INC. 
	 	 	 
	 	By:	/s/
	 	 	Name:
	 	 	Title:
	 	 	 
	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY, as Warrant Agent
	 	 	 
	 	By:	/s/
	 	 	Name:
	 	 	Title:

 

Signature page to Warrant Agreement

 

    	 

    	 

    

   

EXHIBIT A

 

[Form of Warrant Certificate]

 

[FACE]

 

Number W

 

Warrants

 

THIS WARRANT SHALL BE VOID IF NOT EXERCISED
PRIOR TO

THE EXPIRATION OF THE EXERCISE PERIOD
PROVIDED FOR

IN THE WARRANT AGREEMENT DESCRIBED BELOW.

Incorporated Under the Laws of the State
of Delaware

 

CUSIP [_______]

 

Warrant Certificate 

 

This certifies that,
for value received: ___________ or registered assigns, is the registered holder of warrants (the “Warrants”)
to purchase shares of common stock, $0.0001 par value per share (the “Common Shares”), of Glori Energy
Inc., a Delaware corporation (the “Corporation”). Each Warrant entitles the holder, upon exercise during
the period set forth in the Warrant Agreement referred to below, to receive from the Corporation that number of fully paid and
nonassessable Common Shares as set forth below, at the exercise price (the “Exercise Price”) as determined
pursuant to the Warrant Agreement, payable in lawful money (or through “cashless exercise” if permitted
by the Warrant Agreement) of the United States of America upon surrender of this Warrant Certificate and payment of the Exercise
Price, if applicable, at the office or agency of the Warrant Agent referred to below, subject to the conditions set forth herein
and in the Warrant Agreement. Defined terms used in this Warrant Certificate but not defined herein shall have the meanings given
to them in the Warrant Agreement.

 

Each Warrant is initially
exercisable for one fully paid and non-assessable Common Share. The number of Common Shares issuable upon exercise of the Warrants
is subject to adjustment upon the occurrence of certain events set forth in the Warrant Agreement.

 

The initial Exercise
Price per Common Share for any Warrant is equal to $10.00 per share. The Exercise Price is subject to adjustment upon the occurrence
of certain events set forth in the Warrant Agreement.

 

Subject to the conditions
set forth in the Warrant Agreement, the Warrants may be exercised only during the Exercise Period and to the extent not exercised
by the end of such Exercise Period, such Warrants shall become void.

 

    	 

    	 

    

 

Reference is hereby
made to the further provisions of this Warrant Certificate set forth on the reverse hereof and such further provisions shall for
all purposes have the same effect as though fully set forth at this place.

 

	 	By:	 	 
	 	 	 	Name:
	 	 	 	Title: President and Chief Executive Officer

 

	 	
        CONTINENTAL STOCK TRANSFER &

        TRUST COMPANY, as Warrant Agent

	 	 	 
	 	By:	 	 
	 	 	 	Name: [●]
	 	 	 	Title: [●]

 

    	 

    	 

    

 

[Form of Warrant Certificate]

 

[Reverse]

 

The Warrants evidenced
by this Warrant Certificate are part of a duly authorized issue of Warrants entitling the holder on exercise to receive Common
Shares and are issued or to be issued pursuant to a Warrant Agreement dated as of June __, 2014 (the “Warrant Agreement”),
duly executed and delivered by the Corporation to Continental Stock Transfer & Trust Company, a New York corporation, as warrant
agent (the “Warrant Agent”), which Warrant Agreement is hereby incorporated by reference in and made
a part of this instrument and is hereby referred to for a description of the rights, limitation of rights, obligations, duties
and immunities thereunder of the Warrant Agent, the Corporation and the holders (the words “holders”
or “holder” meaning the Registered Holders or Registered Holder) of the Warrants. A copy of the Warrant
Agreement may be obtained by the holder hereof upon written request to the Corporation. Defined terms used in this Warrant Certificate
but not defined herein shall have the meanings given to them in the Warrant Agreement.

 

Warrants may be exercised
at any time during the Exercise Period set forth in the Warrant Agreement. The holder of Warrants evidenced by this Warrant Certificate
may exercise them by surrendering this Warrant Certificate, with the form of election to purchase set forth hereon properly completed
and executed, together with payment of the Exercise Price as specified in the Warrant Agreement (or through “cashless
exercise” if permitted by the Warrant Agreement) at the principal corporate trust office of the Warrant Agent. In
the event that upon any exercise of Warrants evidenced hereby the number of Warrants exercised shall be less than the total number
of Warrants evidenced hereby, there shall be issued to the holder hereof or his, her or its assignee, a new Warrant Certificate
evidencing the number of Warrants not exercised. No adjustment shall be made for any dividends on any of the Common Shares issuable
upon exercise of this Warrant (other than certain extraordinary dividends).

 

Notwithstanding anything
else in this Warrant Certificate or the Warrant Agreement, no Warrant may be exercised unless at the time of exercise: (i) a registration
statement covering the Common Shares to be issued upon exercise is effective under the Securities Act and (ii) a prospectus thereunder
relating to the Common Shares is current, except through “cashless exercise” if permitted by the Warrant
Agreement.

 

The Warrant Agreement
provides that upon the occurrence of certain events the number of the Warrants set forth on the face hereof may, subject to certain
conditions, be adjusted. If, upon exercise of a Warrant, the holder thereof would be entitled to receive a fractional interest
in a Common Share, the Corporation shall, upon exercise, round up to the nearest whole number of Common Shares to be issued to
the holder of the Warrant.

 

Warrant Certificates,
when surrendered at the principal corporate trust office of the Warrant Agent by the Registered Holder thereof in person or by
legal representative or attorney duly authorized in writing, may be exchanged, in the manner and subject to the limitations provided
in the Warrant Agreement, but without payment of any service charge, for another Warrant Certificate or Warrant Certificates of
like tenor evidencing in the aggregate a like number of Warrants.

 

Upon due presentation
for registration of transfer of this Warrant Certificate at the office of the Warrant Agent a new Warrant Certificate or Warrant
Certificates of like tenor and evidencing in the aggregate a like number of Warrants shall be issued to the transferee(s) in exchange
for this Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without charge except for any tax or
other governmental charge imposed in connection therewith.

 

    	 

    	 

    

 

The Corporation and
the Warrant Agent may deem and treat the Registered Holder(s) thereof as the absolute owner(s) of this Warrant Certificate (notwithstanding
any notation of ownership or other writing hereon made by anyone), for the purpose of any exercise hereof, of any distribution
to the holder(s) hereof, and for all other purposes, and neither the Corporation nor the Warrant Agent shall be affected by any
notice to the contrary. Neither the Warrants nor this Warrant Certificate entitles any holder hereof to any rights of a shareholder
of the Corporation.

 

The Corporation may call the Warrant under certain circumstances
as set forth in the Warrant Agreement. 

  

    	 

    	 

    

 

Election
to Purchase

 

(To Be Executed Upon Exercise of Warrant)

 

The undersigned Registered Holder hereby irrevocably elects
to exercise ______ Warrants represented by this Warrant Certificate, and to purchase shares of Common Stock issuable in the name
of:______________________, and be delivered to:______________________________________________ and, if such number of Warrants shall
not be all the Warrants evidenced by this Warrant Certificate, that a new Warrant Certificate for the balance of such Warrants
be registered in the name of, and delivered to, the Registered Holder at the address stated below: _________________________________________________

 

	Date: [●], 20	 	 	 	 	 	(Signature)
	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Address)
	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Tax Identification Number)

 

	Signature Guaranteed:	 
	 	 
	 	 

 

THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR
INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM, PURSUANT TO EXCHANGE ACT RULE 17Ad-15).

  

    	 

    	 

    

 

Assignment

 

(To Be Executed by the Registered Holder
in Order to Assign Warrants)

 

For value received, _________________ hereby sell(s), assign(s)
and transfer(s) unto _____________________ and be delivered to ____________________________________________________ of the Warrants
represented by this Warrant Certificate, and hereby irrevocably constitute and appoint _____________________________________________________________________________________
Attorney to transfer this Warrant Certificate on the books of the Corporation, with full power of substation in the premises.  

 

	Date: [●], 20	 	 	 	 	 	(Signature)
	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Address)
	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Tax Identification Number)

 

	Signature Guaranteed:	 
	 	 
	 	 

 

THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR
INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM, PURSUANT TO EXCHANGE ACT RULE 17Ad-15).

 

    	 

    	 

    

 

LEGEND

 

“THE SECURITIES REPRESENTED HEREBY ARE NEW WARRANTS AS
DEFINED IN THAT WARRANT AGREEMENT, DATED AS OF JUNE __, 2014, BETWEEN THE ISSUER AND CONTINENTAL STOCK TRANSFER & TRUST COMPANY,
AND GRANTED CERTAIN RIGHTS PURSUANT TO SECTION 2.5.1 THEREOF. THE SECRETARY OF THE COMPANY WILL, UPON WRITTEN REQUEST, FURNISH
A COPY OF SUCH AGREEMENT TO THE HOLDER HEREOF WITHOUT CHARGE”Exhibit 10.1 

SAJAN, INC.

2014 EQUITY INCENTIVE PLAN 

 

SECTION 1.

DEFINITIONS

 

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

 

(a)          “Administrator”
shall mean the Board of Directors of the Company, or one or more Committees appointed by the Board of Directors, as the case
may be.

(b)          “Affiliate(s)”
shall mean a Parent or Subsidiary of the Company.

 

(c)          “Agreement”
shall mean the written agreement entered into by the Participant and the Company evidencing the grant of an Award. Each Agreement
shall be in such form as may be approved from time to time by the Administrator and may vary from Participant to Participant.

 

(d)          “Annual
Award Limit” or “Annual Award Limits” shall have the meaning set forth in Section 6(d) of the Plan.

 

(e)          “Award”
shall mean any grant pursuant to the Plan of an Incentive Stock Option, Nonqualified Stock Option, Restricted Stock Award, Restricted
Stock Unit, Performance Award or Stock Appreciation Right.

 

(f)          “Change
of Control” shall mean the occurrence, in a single transaction or in a series of related transactions, of any one or more
of the events in subsections (i) through (iv) below. For purposes of this definition, a person, entity or group shall be deemed
to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership”
of securities if such person, entity or group directly or indirectly, through any contract, arrangement, understanding, relationship
or otherwise, has or shares Voting Power, which includes the power to vote or to direct the voting, with respect to such securities.

 

(i)          Any
person, entity or group becomes the Owner, directly or indirectly, of securities of the Company representing more than fifty percent
(50%) of the combined Voting Power of the Company’s then outstanding securities other than by virtue of a merger, consolidation,
exchange, reorganization or similar transaction. Notwithstanding the foregoing, a Change of Control shall not be deemed to occur
(A) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other person, entity
or group from the Company in a transaction or series of related transactions the primary purpose of which is to obtain financing
for the Company through the issuance of equity securities or (B) solely because the level of Ownership held by any person, entity
or group (the “Subject Person”) exceeds the designated percentage threshold of the Voting Power as a result of a repurchase
or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change of
Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company,
and after such share acquisition, the Subject Person becomes the Owner of any additional voting securities that, assuming the repurchase
or other acquisition had not occurred, increases the percentage of the then outstanding voting securities Owned by the Subject
Person over the designated percentage threshold, then a Change of Control shall be deemed to occur;

 

    	 

    	 

    

 

(ii)         There
is consummated a merger, consolidation, exchange, reorganization or similar transaction involving (directly or indirectly) the
Company and, immediately after the consummation of such merger, consolidation, exchange, reorganization or similar transaction,
the shareholders of the Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding voting securities
representing more than fifty percent (50%) of the combined outstanding Voting Power of the surviving entity in such merger, consolidation
or similar transaction or (B) more than fifty percent (50%) of the combined outstanding Voting Power of the parent of the surviving
entity in such merger, consolidation, exchange, reorganization or similar transaction, in each case in substantially the same proportions
as their Ownership of the outstanding voting securities of the Company immediately prior to such transaction;

 

(iii)        There
is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the total gross value of the
consolidated assets of the Company and its subsidiaries, other than a sale, lease, license or other disposition of all or substantially
all of the total gross value of the consolidated assets of the Company and its subsidiaries to an entity, more than fifty percent
(50%) of the combined Voting Power of the voting securities of which are Owned by shareholders of the Company in substantially
the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such sale, lease,
license or other disposition (for purposes of this Section 1(f)(iii), “gross value” means the value of the assets of
the Company or the value of the assets being disposed of, as the case may be, determined without regard to any liabilities associated
with such assets); or

 

(iv)        Individuals
who, at the beginning of any consecutive twelve-month period, are members of the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the members of the Board at any time during that consecutive twelve-month period;
provided, however, that if the appointment or election (or nomination for election) of any new Board member was approved or recommended
by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes of the Plan,
be considered as a member of the Incumbent Board.

 

For the avoidance of doubt, the term “Change
of Control” shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing
the domicile of the Company. To the extent required, the determination of whether a Change of Control has occurred shall be made
in accordance with Code Section 409A and the regulations, notices and other guidance of general applicability issued thereunder.

 

(g)          “Close
of Business” of a specified day shall mean 5:00 p.m., Central Time, without regard to whether such day is a Saturday, Sunday,
bank holiday, or other day on which no business is conducted.

 

    	2

    	 

    

 

(h)          “Committee”
shall mean a Committee of two or more Directors who shall be appointed by and serve at the pleasure of the Board. To the extent
necessary for compliance with Rule 16b-3, each of the members of the Committee shall be a “non-employee director.”
Solely for purposes of this Section 1(h), “non-employee director” shall have the same meaning as set forth in Rule
16b-3. Further, to the extent necessary for compliance with the limitations set forth in Internal Revenue Code Section 162(m),
each of the members of the Committee shall be an “outside director” within the meaning of Code Section 162(m) and the
regulations issued thereunder.

 

(i)          “Common
Stock” shall mean the common stock of the Company (subject to adjustment as provided in Section 15 of the Plan).

 

(j)          The
“Company” shall mean Sajan, Inc., a Delaware corporation.

 

(k)          “Consultant”
shall mean any person, including an advisor, who is engaged by the Company or any Affiliate to render consulting or advisory services
and is compensated for such services; provided, however, that no person shall be considered a Consultant for purposes
of the Plan unless such Consultant is a natural person, renders bona fide services to the Company or any Affiliate, and such services
are not in connection with the offer or sale of securities in a capital raising transaction and do not directly or indirectly promote
or maintain a market for the Company’s securities. For purposes of the Plan, “Consultant” shall
also include a director of an Affiliate who is compensated for services as a director.

 

(l)          “Covered
Employee” shall mean any key salaried Employee who is or may become a “Covered Employee,” as defined in Code
Section 162(m), and who is designated, either as an individual Employee or class of Employees, by the Administrator within the
shorter of (i) ninety (90) days after the beginning of the Performance Period, or (ii) twenty-five percent (25%) of the Performance
Period has elapsed, as a “Covered Employee” under the Plan for such applicable Performance Period.

 

(m)          “Director”
shall mean a member of the Board of Directors of the Company.

 

(n)          “Effective
Date” shall mean the date the Board of Directors of the Company approves the amendment and restatement of the Plan.

 

(o)          “Employee”
shall mean a common law employee of the Company or any Affiliate, including “officers” as defined by Section 16 of
the Exchange Act; provided, however, that service solely as a Director or Consultant, regardless of whether a fee is paid for such
service, shall not cause a person to be an Employee for purposes of the Plan.

 

(p)          “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

 

    	3

    	 

    

 

(q)          “Fair
Market Value” of specified stock as of any date shall mean (i) if such stock is listed on the Nasdaq Global Select Market,
Nasdaq Global Market, Nasdaq Capital Market or an established stock exchange, the price of such stock at the close of the regular
trading session of such market or exchange on such date, as reported by The Wall Street Journal or a comparable reporting
service, or, if no sale of such stock shall have occurred on such date, on the next preceding date on which there was a sale of
stock; (ii) if such stock is not so listed on the Nasdaq Global Select Market, Nasdaq Global Market, Nasdaq Capital Market, or
an established stock exchange, the average of the closing “bid” and “asked” prices quoted by the OTC Bulletin
Board, the National Quotation Bureau, or any comparable reporting service on such date or, if there are no quoted “bid”
and “asked” prices on such date, on the next preceding date for which there are such quotes; or (iii) if such stock
is not publicly traded as of such date, the per share value as determined by the Board or the Committee in its sole discretion
by applying principles of valuation with respect to Common Stock.

 

(r)          “Full
Value Award” shall mean an Award that is settled by the issuance of shares of Common Stock, other than in the form of an
Option or Stock Appreciation Right.

 

(s)          “Incentive
Stock Option” shall mean an Option granted pursuant to Section 9 of the Plan that is intended to satisfy the provisions of
Code Section 422, or any successor provision.

 

(t)          “Insider”
shall mean an individual who is, on the relevant date, an officer or Director of the Company, or an individual who beneficially
owns more than ten percent (10%) of any class of equity securities of the Company that is registered under Section 12 of the Exchange
Act, as determined by the Board of Directors in accordance with Section 16 of the Exchange Act.

 

(u)          The
“Internal Revenue Code” or “Code” shall mean the Internal Revenue Code of 1986, as amended from time to
time. References to sections of the Code are intended to include applicable treasury regulations and successor statutes and regulations.

 

(v)         “Option”
shall mean an Incentive Stock Option or Nonqualified Stock Option granted pursuant to the Plan.

 

(w)          “Nonqualified
Stock Option” shall mean an Option granted pursuant to Section 10 of the Plan or an Option (or portion thereof) that does
not qualify as an Incentive Stock Option.

 

(x)          “Parent”
shall mean any parent corporation of the Company within the meaning of Code Section 424(e), or any successor provision.

 

(y)          “Participant”
shall mean an Employee to whom an Incentive Stock Option has been granted or an Employee, a Director, or a Consultant to whom a
Nonqualified Stock Option, Restricted Stock Award, Restricted Stock Unit, Performance Award or Stock Appreciation Right has been
granted.

 

(z)          “Performance
Award” shall mean any Performance Shares or Performance Units Award granted pursuant to Section 13 of the Plan.

 

    	4

    	 

    

 

(aa)         “Performance-Based
Compensation” shall mean compensation under an Award that is intended to satisfy the requirements of Code Section 162(m)
for certain performance-based compensation paid to Covered Employees. Notwithstanding the foregoing, nothing in the Plan shall
be construed to mean that an Award which does not satisfy the requirements for performance-based compensation under Code Section
162(m) does not constitute performance-based compensation for other purposes, including Code Section 409A.

 

(bb)         “Performance
Objective(s)” shall mean one or more performance objectives set forth in Section 7 and established by the Administrator,
in its sole discretion, for Awards granted under the Plan, including Performance Awards to Covered Employees that are intended
to qualify as Performance-Based Compensation.

 

(cc)         “Performance
Period” shall mean the period, established at the time any Award is granted or at any time thereafter, during which any Performance
Objectives specified by the Administrator with respect to such Award are to be measured.

 

(dd)         “Performance
Share” shall mean any grant pursuant to Section 13 hereof of an Award, which value, if any, shall be paid to a Participant
by delivery of shares of Common Stock of the Company upon achievement of such Performance Objectives during the Performance Period
as the Administrator shall establish at the time of such grant or thereafter.

 

(ee)         “Performance
Unit” shall mean any grant pursuant to Section 13 hereof of an Award, which value, if any, shall be paid to a Participant
by delivery of cash upon achievement of such Performance Objectives during the Performance Period as the Administrator shall establish
at the time of such grant or thereafter.

 

(ff)          “Plan”
means the Sajan, Inc. 2014 Equity Incentive Plan, as amended hereafter from time to time, including the form of Agreements as they
may be modified by the Administrator from time to time.

 

(gg)        “Restricted
Stock Award” shall mean any grant of restricted shares of Common Stock pursuant to Section 11 of the Plan.

 

(hh)        “Restricted
Stock Unit” shall mean any grant of any restricted stock units pursuant to Section 12 of the Plan.

 

(ii)          “Rule
16b-3” shall mean Rule 16b-3, or any successor provision, as then in effect, of the General Rules and Regulations under the
Exchange Act.

 

(jj)           “Stock
Appreciation Right” shall mean a grant pursuant to Section 14 of the Plan.

 

(kk)         A
“Subsidiary” shall mean any subsidiary corporation of the Company within the meaning of Code Section 424(f), or any
successor provision.

 

(ll)          
“Voting Power” shall mean any and all classes of securities issued by the applicable entity which are entitled to vote
in the election of directors of the applicable entity.

 

    	5

    	 

    

 

SECTION 2.

PURPOSE

 

The purpose of the Plan is to promote the
success of the Company and its Affiliates by facilitating the employment and retention of competent personnel and by furnishing
incentives to those Employees, Directors, and Consultants upon whose efforts the success of the Company and its Affiliates will
depend to a large degree. It is the intention of the Company to carry out the Plan through the granting of Incentive Stock Options,
Nonqualified Stock Options, Restricted Stock Awards, Restricted Stock Units, Performance Awards and Stock Appreciation Rights.

 

SECTION 3.

EFFECTIVE DATE AND DURATION OF PLAN

 

The Plan shall be effective
on the Effective Date; provided, however, that adoption of the Plan shall be and is expressly subject to the condition of approval
by the shareholders of the Company within twelve (12) months before or after the Effective Date. Although Awards may be granted
prior to the date the amendment and restatement of the Plan is approved by the shareholders of the Company, any Incentive Stock
Options granted after the Effective Date shall be treated as Nonqualified Stock Options if shareholder approval is not obtained
within such twelve-month period.

 

The Administrator may
grant Awards pursuant to the Plan from time to time until the Administrator discontinues or terminates the Plan; provided, however,
that in no event may Incentive Stock Options be granted pursuant to the Plan after the earlier of (i) the date the Administrator
discontinues or terminates the Plan, or (ii) the Close of Business on the day immediately preceding the tenth anniversary of the
Effective Date.

 

SECTION 4.

ADMINISTRATION

 

(a)          Administration
by the Board of Directors or Committee(s). The Plan shall be administered by the Board of Directors of the Company (hereinafter
referred to as the “Board”); provided, however, that the Board may delegate some or all of the administration of the
Plan to a Committee or Committees. The Board and any Committee appointed by the Board to administer the Plan are collectively referred
to in the Plan as the “Administrator.”

 

(b)          Delegation
by Administrator. The Administrator may delegate to one or more Committees and/or sub-Committees, or to one or more officers
of the Company and/or its Affiliates, or to one or more agents and/or advisors, such administrative duties or powers as it may
deem advisable. The Administrator or any Committees or individuals to whom it has delegated duties or powers as aforesaid may employ
one or more individuals to render advice with respect to any responsibility of the Administrator or such Committees or individuals
may have under the Plan. The Administrator may, by resolution, authorize one or more officers of the Company to do one or both
of the following on the same basis as can the Administrator: (i) designate Employees to be recipients of Awards and (ii) determine
the size of any such Awards; provided, however, (x) the Committee shall not delegate such responsibilities to any such officer
for Awards granted to an Employee who is considered an Insider; (y) the resolution providing such authorization sets forth the
total number of Awards such officer(s) may grant; and (z) the officer(s) shall report periodically to the Administrator regarding
the nature and scope of the Awards granted pursuant to the authority delegated.

 

    	6

    	 

    

 

(c)          Powers
of Administrator. Except as otherwise provided herein, the Administrator shall have all of the powers vested in it under the
provisions of the Plan, including but not limited to exclusive authority to determine, in its sole discretion, whether an Award
shall be granted; the individuals to whom, and the time or times at which, Awards shall be granted; the number of shares subject
to each Award; the exercise price of Options granted hereunder; and the performance criteria, if any, and any other terms and conditions
of each Award. The Administrator shall have full power and authority to administer and interpret the Plan, to make and amend rules,
regulations and guidelines for administering the Plan, to prescribe the form and conditions of the respective Agreements evidencing
each Award (which may vary from Participant to Participant), to amend or revise Agreements evidencing any Award (to the extent
the amended terms would be permitted by the Plan and provided that no such revision or amendment, except as is authorized in Section
15, shall impair the terms and conditions of any Award which is outstanding on the date of such revision or amendment to the material
detriment of the Participant in the absence of the consent of the Participant), and to make all other determinations necessary
or advisable for the administration of the Plan (including to correct any defect, omission or inconsistency in the Plan or any
Agreement, to the extent permitted by law and the Plan). The Administrator’s interpretation of the Plan, and all actions
taken and determinations made by the Administrator pursuant to the power vested in it hereunder, shall be conclusive and binding
on all parties concerned.

 

(d)          Limitation
on Liability; Actions of Committees. No member of the Board or a Committee shall be liable for any action taken or determination
made in good faith in connection with the administration of the Plan. In the event the Board appoints a Committee as provided hereunder,
or the Administrator delegates any of its duties to another Committee or sub-Committee, any action of such Committee with respect
to the administration of the Plan shall be taken pursuant to a majority vote of the Committee members or pursuant to the written
resolution of all Committee members.

 

SECTION 5.

PARTICIPANTS

 

The Administrator may
grant Awards under the Plan to any Employee, Director, or Consultant; provided, however, that only Employees are eligible to receive
Incentive Stock Options. In designating Participants, the Administrator shall also determine the number of shares or cash units
to be optioned or awarded to each such Participant and any Performance Objectives applicable to Awards. The Administrator may from
time to time designate individuals as being ineligible to participate in the Plan. The power of the Administrator under this Section
5 shall be exercised from time to time in the sole discretion of the Administrator and without approval by the shareholders.

 

    	7

    	 

    

 

SECTION 6.

STOCK

 

(a)        Number of
Shares Reserved. The stock to be awarded or optioned under the Plan (the “Share Authorization”) shall consist of
authorized but unissued or reacquired shares of Common Stock. Subject to Section 15 of the Plan, the maximum aggregate number of
shares of Common Stock reserved and available for Awards under the Plan is reserved and available for Awards under the Plan is
One Million Five Hundred Thousand (1,500,000) shares, provided that all shares of Stock reserved and available under the Plan shall
constitute the maximum aggregate number of shares of Stock that may be issued through Incentive Stock Options.

 

(b)         Fungible
Share Reserve. To the extent that a share of Common Stock is granted pursuant to a Full Value Award, it shall reduce the Share
Authorization by one and one half (1.5) shares of Common Stock; and, to the extent that a share of Common Stock is granted pursuant
to an Award other than a Full Value Award, it shall reduce the Share Authorization by one (1) share of Common Stock.

 

(c)        Share Usage.
The following shares of Common Stock shall not reduce the Share Authorization and shall continue to be reserved and available for
Awards granted pursuant to the Plan: (i) all or any portion of any outstanding Restricted Stock Award or Restricted Stock Unit
that expires or is forfeited for any reason, or that is terminated prior to the vesting or lapsing of the risks of forfeiture on
such Award, and (ii) shares of Common Stock covered by an Award to the extent the Award is settled in cash; provided, however,
that the full number of shares of Common Stock subject to a Stock Appreciation Right shall reduce the Share Authorization, whether
such Stock Appreciation Right is settled in cash or shares of Common Stock. Any shares of Common Stock withheld to satisfy tax
withholding obligations on an Award, shares of Common Stock withheld to pay the exercise price of an Option, and shares of Common
Stock subject to a broker-assisted cashless exercise of an Option shall reduce the Share Authorization.

 

(d)          Annual
Award Limits. Unless and until the Administrator determines that an Award to a Covered Employee shall not be Performance-Based
Compensation, the following limits (each, an “Annual Award Limit,” and collectively, “Annual Award Limits”)
shall apply to grants of such Awards under the Plan:

 

(i)          Options
and Stock Appreciation Rights. The maximum number of shares of Common Stock subject to Options granted and shares of Common
Stock subject to Stock Appreciation Rights granted in any one calendar year to any one Participant shall be, in the aggregate,
Three Hundred Thousand (300,000) shares, subject to adjustment as provided in Section 15.

 

(ii)         Restricted
Stock Awards and Restricted Stock Units. The maximum grant with respect Restricted Stock Awards and Restricted Stock Units
in any one calendar year to any one Participant shall be, in the aggregate, Three Hundred Thousand (300,000) shares, subject to
adjustment as provided in Section 15.

 

(iii)        Performance
Awards. To the extent payable in or measured by the value of shares of Stock, in no event shall a Participant be granted Performance
Awards during any fiscal year of the Company covering in the aggregate more than Three Hundred Thousand (300,000) shares, subject
to adjustment as provided in Section 15.

 

    	8

    	 

    

 

SECTION 7.

PERFORMANCE OBJECTIVES

 

(a)          Performance
Objectives. For any Awards to Covered Employees that are intended to qualify as “Performance-Based Compensation”
under Code Section 162(m), the Performance Objectives shall be limited to any one, or a combination of, (i) revenue or net sales,
(ii) operating income, (iii) net income (before or after taxes), (iv) earnings per share, (v) earnings before or after taxes, interest,
depreciation and/or amortization, (vi) gross profit margin, (vii) return measures (including, but not limited to, return on invested
capital, assets, capital, equity, sales), (viii) increase in revenue or net sales, (ix) operating expense ratios, (x) operating
expense targets, (xi) productivity ratios, (xii) gross or operating margins, (xiii) cash flow (including, but not limited to, operating
cash flow, free cash flow, cash flow return on equity and cash flow return on investment), (xiv) working capital targets, (xv)
capital expenditures, (xvi) share price (including, but not limited to, growth measures and total shareholder return), (xvii) appreciation
in the fair market value or book value of the Common Stock, (xviii) debt to equity ratio or debt levels, and (xix) market share,
in all cases including, if selected by the Administrator, threshold, target and maximum levels.

 

Any Performance Objective
may be used to measure the performance of the Company and/or Affiliate, as a whole or with respect to any business unit, or any
combination thereof as the Administrator may deem appropriate, or any of the specified Performance Objectives as compared to the
performance of a group of competitor companies, or published or special index that the Administrator, in its sole discretion, deems
appropriate. The Administrator also has the authority to provide for accelerated vesting of any Award based on the achievement
of performance goals pursuant to the Performance Objectives; provided, however, that such authority shall be subject to Code Section
162(m) with respect to Awards intended to qualify as Performance-Based Compensation.

 

(b)          Evaluation
of Performance Objectives. The Administrator may provide in any Award based on Performance Objectives that any evaluation of
performance may include or exclude any of the following events that occurs during a Performance Period: (i) asset write-downs,
(ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax laws, accounting principles, or other laws
or provisions affecting reported results, (iv) any reorganization and restructuring programs, (v) extraordinary nonrecurring items
as described in FASB Accounting Standards Codification 225-20—Extraordinary and Unusual Items and/or in Management's Discussion
and Analysis of financial condition and results of operations appearing in the Company's annual report to shareholders for the
applicable year, (vi) acquisitions or divestitures, and (vii) foreign exchange gains and losses. To the extent such inclusions
or exclusions affect Awards to Covered Employees, they shall be prescribed in a form that meets the requirements of Code Section
162(m) for deductibility.

 

    	9

    	 

    

 

(c)          Adjustment
of Performance-Based Compensation. Awards that are intended to qualify as Performance-Based Compensation may not be adjusted
upward. The Administrator shall retain the discretion to adjust such Awards downward, either on a formula or discretionary basis
or any combination, as the Administrator determines.

 

(d)          Administrator
Discretion. In the event that applicable tax and/or securities laws change to permit Administrator discretion to alter the
governing Performance Objectives without obtaining shareholder approval of such changes, the Administrator shall have sole discretion
to make such changes without obtaining shareholder approval. In addition, in the event that the Administrator determines that it
is advisable to grant Awards that shall not qualify as Performance-Based Compensation, the Administrator may make such grants without
satisfying the requirements of Code Section 162(m) and, in such case, may apply performance objectives other than those set forth
in this Section 7.

 

SECTION 8.

PAYMENT OF OPTION EXERCISE PRICE

 

Upon the exercise of
an Option, Participants may pay the exercise price of an Option (i) in cash, or with a personal check, certified check, or other
cash equivalent, (ii) by the surrender by the Participant to the Company of previously acquired unencumbered shares of Common Stock
(through physical delivery or attestation), (iii) through the withholding of shares of Common Stock from the number of shares otherwise
issuable upon the exercise of the Option (e.g., a net share settlement), (iv) through broker-assisted cashless exercise
if such exercise complies with applicable securities laws and any insider trading policy of the Company, (v) such other form of
payment as may be authorized by the Administrator, or (vi) by a combination thereof. In the event the Participant elects to pay
the exercise price, in whole or in part, with previously acquired shares of Common Stock or through a net share settlement, the
then-current Fair Market Value of the stock delivered or withheld shall equal the total exercise price for the shares being purchased
in such manner.

 

The Administrator may,
in its sole discretion, limit the forms of payment available to the Participant and may exercise such discretion any time prior
to the termination of the Option granted to the Participant or upon any exercise of the Option by the Participant. “Previously
acquired shares of Common Stock” means shares of Common Stock which the Participant owns on the date of exercise (or for
the period of time, if any, as may be required by generally accepted accounting principles or any successor principles applicable
to the Company).

 

With respect to payment
in the form of Common Stock, the Administrator may require advance approval or adopt such rules as it deems necessary to assure
compliance with Rule 16b-3, if applicable.

 

SECTION 9.

TERMS AND CONDITIONS OF INCENTIVE
STOCK OPTIONS

 

Each Incentive Stock
Option shall be evidenced by an Incentive Stock Option Agreement, which shall comply with and be subject to the following terms
and conditions:

 

    	10

    	 

    

 

(a)          Number
of Shares and Exercise Price. The Incentive Stock Option Agreement shall state the total number of shares covered by the
Incentive Stock Option. Except as permitted by Code Section 424(a), or any successor provision, the exercise price per share
shall not be less than one hundred percent (100%) of the per share Fair Market Value of the Common Stock on the date the
Administrator grants the Incentive Stock Option; provided, however, that if a Participant owns stock possessing more than ten
percent (10%) of the total combined Voting Power of all classes of stock of the Company or of its Parent or any Subsidiary,
the exercise price per share of an Incentive Stock Option granted to such Participant shall not be less than one hundred ten
percent (110%) of the per share Fair Market Value of Common Stock on the date of the grant of the Incentive Stock Option. The
Administrator shall have full authority and discretion in establishing the exercise price and shall be fully protected in so
doing.

 

(b)          Exercisability
and Term. The Incentive Stock Option Agreement shall state when the Incentive Stock Option becomes exercisable (i.e.
“vests”), and, if applicable in the Administrator’s discretion, shall describe the Performance Objectives and
Performance Period upon which vesting is based, the manner in which performance shall be measured and the extent to which partial
achievement of the Performance Objectives may result in vesting of the Option. The Participant may exercise the Incentive Stock
Option, in full or in part, upon or after the vesting date of such Option (or portion thereof). Notwithstanding anything in the
Plan or the Agreement to the contrary, the Participant may not exercise an Incentive Stock Option after the maximum term of such
Option, as such term is specified in the Incentive Stock Option Agreement. Except as permitted by Code Section 424(a), in no event
shall any Incentive Stock Option be exercisable during a term of more than ten (10) years after the date on which it is granted;
provided, however, that if a Participant owns stock possessing more than ten percent (10%) of the total combined Voting Power of
all classes of stock of the Company or of its Parent or any Subsidiary, the Incentive Stock Option granted to such Participant
shall be exercisable during a term of not more than five (5) years after the date on which it is granted. The Administrator may
accelerate the exercisability of any Incentive Stock Option granted hereunder which is not immediately exercisable as of the date
of grant.

 

(c)          No
Rights as Shareholder. A Participant (or the Participant’s successors) shall have no rights as a shareholder with respect
to any shares covered by an Incentive Stock Option until the date of the issuance of the Common Stock subject to such Award upon
exercise, as evidenced by a stock certificate or as reflected in the books and records of the Company or its designated agent (i.e.,
a “book entry”). No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities
or other property), distributions or other rights for which the record date is prior to the date such shares are actually issued
(as evidenced in either certificated or book entry form).

 

    	11

    	 

    

 

(d)          Withholding.
The Company or its Affiliate shall be entitled to withhold and deduct from any future payments to the Participant all legally required
amounts necessary to satisfy any and all withholding and employment-related taxes attributable to the Participant’s exercise
of an Incentive Stock Option or a “disqualifying disposition” of shares acquired through the exercise of an Incentive
Stock Option as defined in Code Section 421(b), to require the Participant to remit an amount sufficient to satisfy such withholding
requirements, or to require any combination thereof. In the event the Participant is required under the Incentive Stock Option
Agreement to pay the Company, or make arrangements satisfactory to the Company respecting payment of, such withholding and employment-related
taxes, the Administrator may, in its sole discretion, require the Participant to satisfy such obligation, in whole or in part,
by delivering shares of Common Stock or by electing to have the Company withhold shares of Common Stock otherwise issuable to the
Participant as a result of the exercise of the Incentive Stock Option. Such shares shall have a Fair Market Value equal to the
minimum required tax withholding, based on the minimum statutory withholding rates for federal and state tax purposes, including
payroll taxes, that are applicable to the supplemental income resulting from such exercise or disqualifying disposition. In no
event may the Participant deliver shares, nor may the Company or any Affiliate withhold shares, having a Fair Market Value in excess
of such statutory minimum required tax withholding. The Participant’s delivery of shares or the withholding of shares for
this purpose shall occur on or before the later of (i) the date the Incentive Stock Option is exercised or the date of the disqualifying
disposition, as the case may be, or (ii) the date that the amount of tax to be withheld is determined under applicable tax law.

 

(e)          Vesting
Limitation. Notwithstanding any other provision of the Plan, the aggregate Fair Market Value (determined as of the date an
Incentive Stock Option is granted) of the shares of Common Stock with respect to which Incentive Stock Options are exercisable
for the first time by a Participant during any calendar year (under the Plan and any other “incentive stock option”
plans of the Company or any Affiliate shall not exceed $100,000 (or such other amount as may be prescribed by the Code from time
to time); provided, however, that if the exercisability or vesting of an Incentive Stock Option is accelerated as permitted under
the provisions of the Plan and such acceleration would result in a violation of the limit imposed by this Section 9(e), such acceleration
shall be of full force and effect but the number of shares of Common Stock that exceed such limit shall be treated as having been
granted pursuant to a Nonqualified Stock Option; and provided, further, that the limits imposed by this Section 9(e) shall be applied
to all outstanding Incentive Stock Options under the Plan and any other “incentive stock option” plans of the Company
or any Affiliate in chronological order according to the dates of grant.

 

(f)          Other
Provisions. The Incentive Stock Option Agreement authorized under this Section 9 shall contain such other provisions as the
Administrator shall deem advisable. Any such Incentive Stock Option Agreement shall contain such limitations and restrictions upon
the exercise of the Incentive Stock Option as shall be necessary to ensure that such Incentive Stock Option will be considered
an “incentive stock option” as defined in Code Section 422 or to conform to any change therein.

 

SECTION 10.

TERMS AND CONDITIONS OF NONQUALIFIED
STOCK OPTIONS

 

Each Nonqualified Stock
Option shall be evidenced by a Nonqualified Stock Option Agreement, which shall comply with and be subject to the following terms
and conditions:

 

(a)          Number
of Shares and Exercise Price. The Nonqualified Stock Option Agreement shall state the total number of shares covered by the
Nonqualified Stock Option. The exercise price per share shall be equal to one hundred percent (100%) of the per share Fair Market
Value of the Common Stock on the date of grant of the Nonqualified Stock Option, or such higher price as the Administrator determines.

 

    	12

    	 

    

 

(b)          Exercisability
and Term. The Nonqualified Stock Option Agreement shall state when the Nonqualified Stock Option becomes exercisable (i.e.
“vests”) and, if applicable in the Administrator’s discretion, shall describe the Performance Objectives and
Performance Period upon which vesting is based, the manner in which performance shall be measured and the extent to which partial
achievement of the Performance Objectives may result in vesting of the Option. The Participant may exercise the Nonqualified Stock
Option, in full or in part, upon or after the vesting date of such Option (or portion thereof); provided, however, that the Participant
may not exercise a Nonqualified Stock Option after the maximum term of such Option, as such term is specified in the Nonqualified
Stock Option Agreement. Unless otherwise determined by the Administrator and specified in the Agreement governing the Award, no
Nonqualified Stock Option shall be exercisable during a term of more than ten (10) years after the date on which it is granted.
The Administrator may accelerate the exercisability of any Nonqualified Stock Option granted hereunder which is not immediately
exercisable as of the date of grant.

 

(c)          No
Rights as Shareholder. A Participant (or the Participant’s successors) shall have no rights as a shareholder with respect
to any shares covered by a Nonqualified Stock Option until the date of the issuance of the Common Stock subject to such Award upon
exercise, as evidenced by a stock certificate or as reflected in the books and records of the Company or its designated agent (i.e.,
a “book entry”). No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities
or other property), distributions or other rights for which the record date is prior to the date such shares are actually issued
(as evidenced in either certificated or book entry form).

 

(d)          Withholding.
The Company or its Affiliate shall be entitled to withhold and deduct from any future payments to the Participant all legally required
amounts necessary to satisfy any and all withholding and employment-related taxes attributable to the Participant’s exercise
of a Nonqualified Stock Option, to require the Participant to remit an amount sufficient to satisfy such withholding requirements,
or to require any combination thereof. In the event the Participant is required under the Nonqualified Stock Option Agreement to
pay the Company, or make arrangements satisfactory to the Company respecting payment of, such withholding and employment-related
taxes, the Administrator may, in its sole discretion, require the Participant to satisfy such obligation, in whole or in part,
by delivering shares of Common Stock or by electing to have the Company withhold shares of Common Stock otherwise issuable to the
Participant as a result of the exercise of the Nonqualified Stock Option. Such shares shall have a Fair Market Value equal to the
minimum required tax withholding, based on the minimum statutory withholding rates for federal and state tax purposes, including
payroll taxes, that are applicable to the supplemental income resulting from such exercise. In no event may the Participant deliver
shares, nor may the Company or any Affiliate withhold shares, having a Fair Market Value in excess of such statutory minimum required
tax withholding. The Participant’s delivery of shares or the withholding of shares for this purpose shall occur on or before
the later of (i) the date the Nonqualified Stock Option is exercised, or (ii) the date that the amount of tax to be withheld is
determined under applicable tax law.

 

    	13

    	 

    

 

(e)          Other
Provisions. The Nonqualified Stock Option Agreement authorized under this Section 10 shall contain such other provisions as
the Administrator shall deem advisable.

 

SECTION 11.

RESTRICTED STOCK AWARDS

 

Each Restricted Stock
Award shall be evidenced by a Restricted Stock Award Agreement, which shall comply with and be subject to the following terms and
conditions:

 

(a)          Number
of Shares. The Restricted Stock Award Agreement shall state the total number of shares of Common Stock covered by the Restricted
Stock Award.

 

(b)          Risks
of Forfeiture. The Restricted Stock Award Agreement shall set forth the risks of forfeiture, if any, which shall apply to the
shares of Common Stock covered by the Restricted Stock Award and the manner in which such risks of forfeiture shall lapse, including,
if applicable in the Administrator’s discretion, a description of the Performance Objectives and Performance Period upon
which the lapse of risks of forfeiture is based, the manner in which performance shall be measured and the extent to which partial
achievement of the Performance Objectives may result in lapse of risks of forfeiture. The Administrator may, in its sole discretion,
modify the manner in which such risks of forfeiture shall lapse but only with respect to those shares of Common Stock which are
restricted as of the effective date of the modification.

 

(c)          Issuance
of Shares; Rights as Shareholder. Except as provided below, the Company shall cause a stock certificate to be issued and shall
deliver such certificate to the Participant or hold such certificate in a manner determined by the Administrator in its sole discretion;
provided, however, that in lieu of a stock certificate, the Company may evidence the issuance of shares by a book entry in the
records of the Company or its designated agent (if permitted by the Company’s designated agent and applicable law, as determined
by the Administrator in its sole discretion). The Company shall cause a legend or notation to be placed on such certificate or
book entry describing the risks of forfeiture and other transfer restrictions set forth in the Participant’s Restricted Stock
Award Agreement and providing for the cancellation and, if applicable, return of such certificate or book entry if the shares of
Common Stock subject to the Restricted Stock Award are forfeited. Until the risks of forfeiture have lapsed or the shares subject
to such Restricted Stock Award have been forfeited, the Participant shall be entitled to vote the shares of Common Stock represented
by such stock certificates and shall receive all dividends attributable to such shares, but the Participant shall not have any
other rights as a shareholder with respect to such shares.

 

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(d)          Withholding
Taxes. The Company or its Affiliate shall be entitled to withhold and deduct from any future payments to the Participant all
legally required amounts necessary to satisfy any and all withholding and employment-related taxes attributable to the Participant’s
Restricted Stock Award, to require the Participant to remit an amount sufficient to satisfy such withholding requirements, or to
require any combination thereof. In the event the Participant is required under the Restricted Stock Award Agreement to pay the
Company, or make arrangements satisfactory to the Company respecting payment of, such withholding and employment-related taxes,
the Administrator may, in its sole discretion, require the Participant to satisfy such obligations, in whole or in part, by delivering
shares of Common Stock, including shares of Common Stock received pursuant to the Restricted Stock Award on which the risks of
forfeiture have lapsed. Such shares shall have a Fair Market Value equal to the minimum required tax withholding, based on the
minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to the supplemental
income resulting from the lapsing of the risks of forfeiture on such Restricted Stock Award. In no event may the Participant deliver
shares having a Fair Market Value in excess of such statutory minimum required tax withholding. The Participant’s delivery
of shares shall occur on or before the date that the amount of tax to be withheld is determined under applicable tax law.

 

(e)          Other
Provisions. The Restricted Stock Award Agreement authorized under this Section 11 shall contain such other provisions as the
Administrator shall deem advisable.

 

SECTION 12.

RESTRICTED STOCK UNITS

 

Each Restricted Stock
Unit shall be evidenced by a Restricted Stock Unit Agreement, which shall comply with and be subject to the following terms and
conditions:

 

(a)          Number
of Shares. The Restricted Stock Unit Agreement shall state the total number of shares of Common Stock covered by the Restricted
Stock Unit.

 

(b)          Vesting.
The Restricted Stock Unit Agreement shall set forth the vesting conditions, if any, which shall apply to the Restricted Stock Unit
and the manner in which such vesting may occur, including, if applicable in the Administrator’s discretion, a description
of the Performance Objectives and Performance Period upon which vesting is based, the manner in which performance shall be measured
and the extent to which partial achievement of the Performance Objectives may result in vesting of the Restricted Stock Unit. The
Administrator may, in its sole discretion, accelerate the vesting of any Restricted Stock Unit.

 

(c)          Issuance
of Shares; Rights as Shareholder. The Participant shall be entitled to payment of the Restricted Stock Unit as the units subject
to such Award vest. The Administrator may, in its sole discretion, pay Restricted Stock Units in shares of Common Stock, cash in
an amount equal to the Fair Market Value, on the date of payment, of the number of shares of Common Stock underlying the Award
that have vested on the applicable payment date, or any combination thereof, as specified in the Restricted Stock Unit Agreement.
If payment is made in shares of Common Stock, the Administrator shall cause to be issued one or more stock certificates in the
Participant’s name and shall deliver such certificates to the Participant in satisfaction of such units; provided, however,
that in lieu of stock certificates, the Company may evidence such shares by a book entry in the records of the Company or its designated
agent (if permitted by the Company’s designated agent and applicable law, as determined by the Administrator in its sole
discretion). Until the units subject to the Restricted Stock Unit have vested, the Participant shall not be entitled to vote any
shares of Common Stock which may be acquired through the Award, shall not receive any dividends attributable to such shares, and
shall not have any other rights as a shareholder with respect to such shares.

 

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(d)          Withholding
Taxes. The Company or its Affiliate shall be entitled to withhold and deduct from any future payments to the Participant all
legally required amounts necessary to satisfy any and all withholding and employment-related taxes attributable to the Participant’s
Restricted Stock Unit, to require the Participant to remit an amount sufficient to satisfy such withholding requirements, or to
require any combination thereof. In the event the Participant is required under the Restricted Stock Unit Agreement to pay the
Company, or make arrangements satisfactory to the Company respecting payment of, such withholding and employment-related taxes,
the Administrator may, in its sole discretion, require the Participant to satisfy such obligations, in whole or in part, by delivering
shares of Common Stock, including shares of Common Stock received pursuant to the Restricted Stock Unit. Such shares shall have
a Fair Market Value equal to the minimum required tax withholding, based on the minimum statutory withholding rates for federal
and state tax purposes, including payroll taxes, that are applicable to the supplemental income resulting from the payment of such
Restricted Stock Unit. In no event may the Participant deliver shares having a Fair Market Value in excess of such statutory minimum
required tax withholding. The Participant’s delivery of shares for this purpose shall occur on or before the date that the
amount of tax to be withheld is determined under applicable tax law.

 

(e)          Other
Provisions. The Restricted Stock Unit Agreement authorized under this Section 12 shall contain such other provisions as the
Administrator shall deem advisable.

 

SECTION 13.

PERFORMANCE AWARDS

 

Each Performance Award
granted pursuant to this Section 13 shall be evidenced by a written performance award agreement (the “Performance Award Agreement”).
The Performance Award Agreement shall be in such form as may be approved from time to time by the Administrator and may vary from
Participant to Participant; provided, however, that each Participant and each Performance Award Agreement shall comply with and
be subject to the following terms and conditions:

 

(a)          Awards.
Performance Awards in the form of Performance Units or Performance Shares may be granted to any Participant in the Plan. Performance
Units shall consist of monetary awards which may be earned or become vested in whole or in part if the Company or the Participant
achieves certain Performance Objectives established by the Administrator over a specified Performance Period. Performance Shares
shall consist of shares of Stock or other Awards denominated in shares of Stock that may be earned or become vested in whole or
in part if the Company or the Participant achieves certain Performance Objectives established by the Administrator over a specified
Performance Period.

 

(b)          Performance
Objectives, Performance Period and Payment. The Performance Award Agreement shall set forth:

 

(i)          the
number of Performance Units or Performance Shares subject to the Performance Award, and the dollar value of each Performance Unit;

 

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(ii)        one or more
Performance Objectives established by the Administrator;

 

(iii)        the
Performance Period over which Performance Units or Performance Shares may be earned or may become vested;

 

(iv)        the
extent to which partial achievement of the Performance Objectives may result in a payment or vesting of the Performance Award,
as determined by the Administrator; and

 

(v)         the
date upon which payment of Performance Units will be made or Performance Shares will be issued, as the case may be, and the extent
to which such payment or the receipt of such Performance Shares or Performance Units may be deferred.

 

(c)          Withholding
Taxes. The Company or its Affiliates shall be entitled to withhold and deduct from future wages of the Participant all legally
required amounts necessary to satisfy any and all withholding and employment-related taxes attributable to the Participant’s
Performance Award. In the event the Participant is required under the Performance Award Agreement to pay the Company or its Affiliates,
or make arrangements satisfactory to the Company or its Affiliates respecting payment of, such withholding and employment-related
taxes, the Administrator may, in its discretion and pursuant to such rules as it may adopt, permit the Participant to satisfy such
obligations, in whole or in part, by delivering shares of Common Stock, including shares of Stock received pursuant to the Performance
Award. Such shares shall have a Fair Market Value equal to the minimum required tax withholding, based on the minimum statutory
withholding rates for federal and state tax purposes, including payroll taxes. In no event may the Participant deliver shares having
a Fair Market Value in excess of such statutory minimum required tax withholding. The Participant’s election to deliver shares
of Common Stock for this purpose shall be made on or before the date that the amount of tax to be withheld is determined under
applicable tax law. Such election shall be approved by the Administrator and otherwise comply with such rules as the Administrator
may adopt to assure compliance with Rule 16b-3, or any successor provision, as then in effect, of the General Rules and Regulations
under the Securities Exchange Act of 1934, if applicable.

 

(d)          Nontransferability.
No Performance Award shall be transferable, in whole or in part, by the Participant, other than by will or by the laws of descent
and distribution. If the Participant shall attempt any transfer of any Performance Award granted under the Plan, such transfer
shall be void and the Performance Award shall terminate.

 

(e)          No
Rights as Shareholder. A Participant (or the Participant’s successor or successors) shall have no rights as a shareholder
with respect to any shares covered by a Performance Award until the date of the issuance of a stock certificate evidencing such
shares. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property), distributions
or other rights for which the record date is prior to the date such stock certificate is actually issued (except as otherwise provided
in Section 14 of the Plan).

 

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(f)          Other
Provisions. The Performance Award Agreement authorized under this Section 12 shall contain such other provisions as the Administrator
shall deem advisable.

 

SECTION 14.

STOCK APPRECIATION RIGHTS

 

Each Stock Appreciation
Right shall be evidenced by a Stock Appreciation Right Agreement, which shall comply with and be subject to the following terms
and conditions:

 

(a)          Awards.
A Stock Appreciation Right shall entitle the Participant to receive, upon exercise, cash, shares of Common Stock, or any combination
thereof, having a value equal to the excess of (i) the Fair Market Value of a specified number of shares of Common Stock on the
date of such exercise, over (ii) a specified exercise price. The number of shares and the exercise price of the Stock Appreciation
Right shall be determined by the Administrator on the date of grant. The specified exercise price shall be equal to 100% of the
Fair Market Value of such shares of Common Stock on the date of grant of the Stock Appreciation Right, or such higher price as
the Administrator determines. A Stock Appreciation Right may be granted independent of or in tandem with a previously or contemporaneously
granted Option.

 

(b)          Exercisability
and Term. The Stock Appreciation Right Agreement shall state when the Stock Appreciation Right becomes exercisable (i.e.,
“vests”) and, if applicable in the Administrator’s discretion, shall describe the Performance Objectives
and Performance Period upon which vesting is based, the manner in which performance shall be measured and the extent to which partial
achievement of the Performance Objectives may result in vesting of the Stock Appreciation Right. The Participant may exercise the
Stock Appreciation Right, in full or in part, upon or after the vesting date of such Stock Appreciation Right (or portion thereof);
provided, however, that the Participant may not exercise a Stock Appreciation Right after the maximum term of such Stock Appreciation
Right, as such term is specified in the Stock Appreciation Right Agreement. Unless otherwise determined by the Administrator and
specified in the Agreement governing the Award, no Stock Appreciation Right shall be exercisable during a term of more than ten
(10) years after the date on which it is granted.

 

The Administrator may
accelerate the exercisability of any Stock Appreciation Right granted hereunder which is not immediately exercisable as of the
date of grant. If a Stock Appreciation Right is granted in tandem with an Option, the Stock Appreciation Right Agreement shall
set forth the extent to which the exercise of all or a portion of the Stock Appreciation Right shall cancel a corresponding portion
of the Option, and the extent to which the exercise of all or a portion of the Option shall cancel a corresponding portion of the
Stock Appreciation Right.

 

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(c)          Withholding
Taxes. The Company or its Affiliate shall be entitled to withhold and deduct from any future payments to the Participant all
legally required amounts necessary to satisfy any and all withholding and employment-related taxes attributable to the Participant’s
Stock Appreciation Right, to require the Participant to remit an amount sufficient to satisfy such withholding requirements, or
to require any combination thereof. In the event the Participant is required under the Stock Appreciation Right to pay the Company
or its Affiliate, or make arrangements satisfactory to the Company or its Affiliate respecting payment of, such withholding and
employment-related taxes, the Administrator may, in its sole discretion, require the Participant to satisfy such obligation, in
whole or in part, by delivering shares of Common Stock or by electing to have the Company withhold shares of Common Stock otherwise
issuable to the Participant as a result of the exercise of the Stock Appreciation Right. Such shares shall have a Fair Market Value
equal to the minimum required tax withholding, based on the minimum statutory withholding rates for federal and state tax purposes,
including payroll taxes, that are applicable to the supplemental income resulting from such exercise. In no event may the Participant
deliver shares, nor may the Company or any Affiliate withhold shares, having a Fair Market Value in excess of such statutory minimum
required tax withholding. The Participant’s delivery of shares or the withholding of shares for this purpose shall occur
on or before the later of (i) the date the Stock Appreciation Right is exercised, or (ii) the date that the amount of tax to be
withheld is determined under applicable tax law.

 

(d)          No
Rights as Shareholder. A Participant (or the Participant’s successors) shall have no rights as a shareholder with respect
to any shares covered by a Stock Appreciation Right until the date of the issuance of a stock certificate evidencing such shares;
provided, however, that in lieu of stock certificates, the Company may evidence such shares by a book entry in the records of the
Company or its designated agent (if permitted by the Company’s designated agent and applicable law, as determined by the
Administrator in its sole discretion). No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities
or other property), distributions or other rights for which the record date is prior to the date such stock certificate is actually
issued or such book entry is made.

 

(e)          Other
Provisions. The Stock Appreciation Right Agreement authorized under this Section 14 shall contain such other provisions as
the Administrator shall deem advisable, including but not limited to any restrictions on the exercise of the Stock Appreciation
Right which may be necessary to comply with Rule 16b-3.

 

SECTION 15.

RECAPITALIZATION, EXCHANGE, 

LIQUIDATION, OR CHANGE OF CONTROL

 

(a)          In
General. In the event of an increase or decrease in the number of shares of Common Stock resulting from a stock dividend, stock
split, reverse split, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued
shares of Common Stock effected without receipt of consideration by the Company, other than due to conversion of the convertible
securities of the Company, the Administrator may, in its sole discretion, adjust the value determinations applicable to outstanding
Awards and the Plan in order to reflect such change, including adjustment of the class and number of shares of stock reserved under
Section 6 of the Plan, the class and number of shares of stock covered by each outstanding Award, and, if and as applicable, the
exercise price per share of each outstanding Award and the Annual Award Limits. Additional shares which may become covered by the
Award pursuant to such adjustment shall be subject to the same restrictions as are applicable to the shares with respect to which
the adjustment relates.

 

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(b)          Liquidation.
Unless otherwise provided in the Agreement evidencing an Award, in the event of a dissolution or liquidation of the Company, the
Administrator may provide for one or both of the following:

 

(i)          the
acceleration of the exercisability of any or all outstanding Options or Stock Appreciation Rights, the vesting and payment of any
or all Performance Awards, or Restricted Stock Units, or the lapsing of the risks of forfeiture on any or all Restricted Stock
Awards; provided, however, that no such acceleration, vesting or payment shall occur if the acceleration, vesting or payment would
violate the requirements of Code Section 409A; or

 

(ii)         the
complete termination of the Plan and the cancellation of any or all Awards (or portions thereof) which have not been exercised,
have not vested, or remain subject to risks of forfeiture, as applicable, in each case immediately prior to the completion of such
a dissolution or liquidation.

 

(c)          Change
of Control. Unless otherwise provided in the Agreement evidencing an Award, in the event of a Change of Control, the Administrator
may provide for one or more of the following:

 

(i)          the
acceleration of the exercisability, vesting, or lapse of the risks of forfeiture of any or all Awards (or portions thereof);

 

(ii)         the
complete termination of the Plan and the cancellation of any or all Awards (or portions thereof) which have not been exercised,
have not vested, or remain subject to risks of forfeiture, as applicable, in each case as of the effective date of the Change of
Control;

 

(iii)        that
the entity succeeding the Company by reason of such Change of Control, or the parent of such entity, shall assume or continue any
or all Awards (or portions thereof) outstanding immediately prior to the Change of Control or substitute for any or all such Awards
(or portions thereof) a substantially equivalent award with respect to the securities of such successor entity, as determined in
accordance with applicable laws and regulations;

 

(iv)        that
Participants holding outstanding Awards shall become entitled to receive, with respect to each share of Common Stock subject to
such Award (whether vested or unvested, as determined by the Administrator pursuant to subsection (c)(i) hereof) as of the effective
date of any such Change of Control, cash in an amount equal to (1) for Participants holding Options or Stock Appreciation Rights,
the excess of the Fair Market Value of such Common Stock on the date immediately preceding the effective date of such Change of
Control over the exercise price per share of Options or Stock Appreciation Rights, or (2) for Participants holding Awards other
than Options or Stock Appreciation Rights, the Fair Market Value of such Common Stock on the date immediately preceding the effective
date of such Change of Control.

 

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The Administrator need not take the same
action with respect to all Awards (or portions thereof) or with respect to all Participants. In addition, the Administrator may
restrict the rights of or the applicability of this Section 15 to the extent necessary to comply with Section 16(b) of the Exchange
Act, the Internal Revenue Code or any other applicable law or regulation. The grant of an Award pursuant to the Plan shall not
limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital
or business structure or to merge, exchange or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business
or assets.

 

SECTION 16.

NONTRANSFERABILITY

 

(a)          
In General. Except as expressly provided in the Plan or an Agreement, no Award shall be transferable by the Participant,
in whole or in part, other than by will or by the laws of descent and distribution. If the Participant shall attempt any transfer
of any Award, such transfer shall be void and the Award shall terminate.

 

(b)          Nonqualified
Stock Options. Notwithstanding anything in this Section 16 to the contrary, the Administrator may, in its sole discretion,
permit the Participant to transfer any or all Nonqualified Stock Option to any member of the Participant’s “immediate
family” as such term is defined in Rule 16a-1(e) of the Exchange Act, or any successor provision, or to one or more trusts
whose beneficiaries are members of such Participant’s “immediate family” or partnerships in which such family
members are the only partners; provided, however, that the Participant cannot receive any consideration for the transfer and such
transferred Nonqualified Stock Option shall continue to be subject to the same terms and conditions as were applicable to such
Nonqualified Stock Option immediately prior to its transfer.

 

(c)          Beneficiary
Designation. Each Participant may, from time to time, name any beneficiary or beneficiaries (who may be named contingently
or successively) to whom any benefit under the Plan is to be paid in case of such Participant’s death before receipt of any
or all of such benefit. Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed
by the Administrator, and will be effective only when filed by the Participant in writing with the Company during the Participant’s
lifetime. In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the
Participant’s estate.

 

SECTION 17.

INVESTMENT PURPOSE AND SECURITIES
COMPLIANCE

 

No shares of Common
Stock shall be issued pursuant to the Plan unless and until there has been compliance, in the opinion of Company’s counsel,
with all applicable legal requirements, including without limitation, those relating to securities laws and stock exchange listing
requirements. As a condition to the issuance of Common Stock to Participant, the Administrator may require Participant to (a) represent
that the shares of Common Stock are being acquired for investment and not resale and to make such other representations as the
Administrator shall deem necessary or appropriate to qualify the issuance of the shares as exempt from the Securities Act of 1933
and any other applicable securities laws, and (b) represent that Participant shall not dispose of the shares of Common Stock in
violation of the Securities Act of 1933 or any other applicable securities laws.

 

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As a further condition
to the grant of any Option or the issuance of Common Stock to a Participant, the Participant agrees to the following:

 

(a)          In
the event the Company advises the Participant that it plans an underwritten public offering of its Common Stock in compliance with
the Securities Act of 1933, as amended, the Participant will execute any lock-up agreement the Company and the underwriter(s) deem
necessary or appropriate, in their sole discretion, in connection with such public offering.

 

(b)          In
the event the Company makes any public offering of its securities and determines in its sole discretion that it is necessary to
reduce the number of outstanding Awards so as to comply with any state’s securities or Blue Sky law limitations with respect
thereto, the Board of Directors of the Company shall have the right (i) to accelerate the exercisability of any Award and the date
on which such Award must be exercised or remove the risks of forfeiture to which the Award is subject, provided that the Company
gives Participant prior written notice of such acceleration or removal, and (ii) to cancel any outstanding Awards (or portions
thereof) which Participant does not exercise prior to or contemporaneously with such public offering.

 

(c)          In
the event of a Change of Control, Participant will comply with Rule 145 of the Securities Act of 1933 and any other restrictions
imposed under other applicable legal or accounting principles if Participant is an “affiliate” (as defined in such
applicable legal and accounting principles) at the time of the Change of Control, and Participant will execute any documents necessary
to ensure compliance with such rules.

 

The Company reserves
the right to place a legend on any stock certificate (or a notation on any book entry shares permitted by the Administrator) issued
in connection with an Award pursuant to the Plan to assure compliance with this Section 17.

 

The Company shall not
be required to register or maintain the registration of the Plan, any Award, or any Common Stock issued or issuable pursuant to
the Plan under the Securities Act of 1933 or any other applicable securities laws. If the Company is unable to obtain the authority
that the Company or its counsel deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall
not be liable for the failure to issue and sell Common Stock upon the exercise, vesting, or lapse of restrictions of forfeiture
of an Award unless and until such authority is obtained. A Participant shall not be eligible for the grant of an Award or the issuance
of Common Stock pursuant to an Award if such grant or issuance would violate any applicable securities law.

 

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SECTION 18.

AMENDMENT OF THE PLAN

 

The Board may from
time to time, insofar as permitted by law, suspend or discontinue the Plan or revise or amend it in any respect; provided, however,
that no such suspension, termination, revision, or amendment, except as is authorized in Section 15, shall impair the terms and
conditions of any Award which is outstanding on the date of such suspension, termination, revision, or amendment to the material
detriment of the Participant without the consent of the Participant. Notwithstanding the foregoing, except as provided in Section
15 of the Plan or to the extent required by applicable law or regulation, the Board may not, without shareholder approval, revise
or amend the Plan to (i) materially increase the number of shares subject to the Plan, (ii) change the designation of Participants,
including the class of Employees, eligible to receive Awards, (iii) decrease the price at which Options or Stock Appreciation Rights
may be granted, (iv) cancel, regrant, repurchase for cash, or replace Options or Stock Appreciation Rights that have an exercise
price in excess of the Fair Market Value of the Common Stock, or amend the terms of outstanding Options or Stock Appreciation Rights
to reduce their exercise price, (v) materially increase the benefits accruing to Participants under the Plan, or (vi) make any
modification that will cause Incentive Stock Options to fail to meet the requirements of Code Section 422.

 

To the extent applicable,
the Plan and all Agreements shall be interpreted to be exempt from or comply with the requirements of Code Section 409A and, if
applicable, to comply with Code Section 422, in each case including the regulations, notices, and other guidance of general applicability
issued thereunder. Furthermore, notwithstanding anything in the Plan or any Agreement to the contrary, the Board may amend the
Plan or Agreement to the extent necessary or desirable to comply with such requirements without the consent of the Participant.

 

SECTION 19.

RIGHTS AND OBLIGATIONS ASSOCIATED
WITH AWARDS 

 

(a)          No
Obligation to Exercise. The granting of an Option or Stock Appreciation Right shall impose no obligation upon the Participant
to exercise such Option or Stock Appreciation Right.

 

(b)          No
Employment or Other Service Rights. The granting of an Award hereunder shall not impose upon the Company or any Affiliate any
obligation to retain the Participant in its employ or service for any period.

 

(c)          Unfunded
Plan. Participants shall have no right, title, or interest whatsoever in or to any particular assets of the Company or any
of its Affiliates by reason of the right to receive a benefit under the terms of the Plan. Nothing contained in the Plan, and no
action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship
between the Company and any Participant, beneficiary, legal representative, or any other person. To the extent that any person
acquires a right to receive shares of Common Stock or payments from the Company or any of its Affiliates under the Plan, such right
shall be no greater than the right of an unsecured general creditor of the Company or an Affiliate, as the case may be. All payments
to be made hereunder shall be paid from the general funds of the Company or an Affiliate, as the case may be. In its sole discretion,
the Administrator may authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to
deliver the shares of Common Stock or make payments in lieu of or with respect to Awards hereunder; provided, however, that the
existence of such trusts or other arrangements is consistent with the unfunded status of the Plan.

 

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(d)          Arrangements
Upon Termination of Employment or Competitive Employment. At the time of grant, the Administrator may provide in connection
with any Award granted to a Participant under this Plan that the Common Stock received as a result of such grant shall be subject
to a repurchase right in favor of the Company, pursuant to which the Participant shall be required to offer to the Company upon
termination of employment for any reason any Common Stock that the Participant acquired under the Plan, with the price being the
then Fair Market Value of the Common Stock or, in the case of a termination for Cause (as defined in the applicable Award agreement),
an amount equal to the cash consideration paid for the Common Stock if lower than the Fair Market Value of the Common Stock, subject
to such other terms and conditions as the Administrator may specify at the time of grant. The Administrator may, at the time of
the grant of an Award under the Plan, provide the Company with the right to repurchase, or require the forfeiture of, Common Stock
acquired pursuant to the Plan by any Participant who, at any time within two years after termination of employment with the Company,
directly or indirectly competes with, or is employed by a competitor of, the Company.

 

SECTION 20.

MISCELLANEOUS

 

(a)          Issuance
of Shares. The Company is not required to issue or remove restrictions on shares of Common Stock granted pursuant to the Plan
until the Administrator determines that: (i) all conditions of the Award have been satisfied, (ii) all legal matters in connection
with the issuance have been satisfied, and (iii) the Participant has executed and delivered to the Company such representations
or agreements as the Administrator may consider appropriate, in its sole discretion, to satisfy the requirements of any applicable
law or regulation.

 

(b)          Choice
of Law. The law of the state of Delaware shall govern all questions concerning the construction, validity, and interpretation
of the Plan, without regard to that state’s conflict of laws rules.

 

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

 

(d)          No
Duty to Notify. The Company shall have no duty or obligation to any Participant to advise such Participant as to the time and
manner of exercising an Award or as to the pending termination or expiration of such Award. In addition, the Company has no duty
or obligation to minimize the tax consequences of an Award to the Participant.

 

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SECTION 21.

AUTOMATIC GRANTS TO NON-EMPLOYEE DIRECTORS

 

Under the Plan, each
Non-employee Director shall automatically be granted a Nonqualified Stock Option to purchase shares of Common Stock (a “Director
Option”) according to the following terms and conditions:

 

(a)          Initial
Grants of Director Options. Each person who is first elected or appointed to serve as a Non-employee Director after the effective
date of the Plan shall automatically be granted a Director Option on the date of his or her initial election or appointment to
the Board to purchase fifteen thousand (15,000) shares of Common Stock. All Director Options granted under this Section 11(a) shall
vest and become exercisable with respect to one-third (1/3) of the shares subject to such Director Option on the first, second
and third anniversary of the date of the grant of such Director Option, but only if the holder of the Director Option is then a
member of the Board.

 

(b)          Additional
Grants of Director Options. On the first business day following the annual meeting on which the national securities exchanges
are open, each Non-employee Director will automatically be granted an additional Director Option to purchase ten thousand (10,000)
shares of Common Stock, but only if such person is a Non-employee Director on such date and did not receive an initial grant pursuant
to Section 21(a) at such annual meeting. If no annual meeting is held in a given year, such Director Option shall be automatically
granted on August 1 of that year (or, if the national securities exchanges are not open on August 1, on the first business day
following August 1 on which the national securities exchanges are open). Such grant will satisfy the obligation to make an automatic
grant under this Section 21(b) for the year, even if an annual meeting is subsequently held between August 1 and the end of the
calendar year. All Director Options granted under this Section 21(b) shall vest and become exercisable as to the shares subject
to the Director Option ratably over eleven months from the date of grant of the Director Option, but only if the holder of the
Director Option is then a member of the Board.

 

(c)          Termination
of Director Options. All Director Options granted under this Section 21 shall expire ten (10) years after the date of grant.

 

(d)          Exercise
Price. The option price per share of Director Options granted under this
Section 21 shall be one hundred percent (100%) of the per share Fair Market Value of the Common Stock on the date of grant of the
Director Option.

 

(e)          Terms
of Construction. Expect as otherwise set forth in this Section 21, all Director Options granted under this Section 21 shall
be governed by Section 10 hereof. For purposes of this Section 21 only, the term “Non-employee Director” shall mean
any Director who is not also an Employee of the Company.

 

    	25

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