Document:

Exhibit 4.8

 

NEOS THERAPEUTICS, INC.

 

AMENDMENT

 

This Amendment, effective as of December 10, 2018 (the “Amendment”), is executed by the undersigned Investors and Neos Therapeutics, Inc., a Delaware corporation (the “Company”). Reference is hereby made to the Registration Rights Agreement (the “Agreement”), dated as of November 5, 2018, by and among the Company, Deerfield Private Design Fund III, L.P. (“DPDF”) and Deerfield Special Situations Fund, L.P. (“DSSF”, together with DPDF, the “Investors”). Capitalized terms used herein that are not otherwise defined shall have the meaning ascribed thereto in the Agreement.

 

WHEREAS, Section 2(a)(i) of the Agreement provides that the Company shall, on or prior to the applicable Filing Deadline, file with the SEC a Registration Statement to effect a registration of the Registrable Securities covering the resale of no less than 3,796,668 shares of the Registrable Securities.

 

WHEREAS, Section 11 of the Agreement provides that the Agreement may be amended with the written consent of the Company and the holders of a majority in interest of then-outstanding Registrable Securities (the “Requisite Investors”).

 

WHEREAS, the Company is requesting, to the extent required, that pursuant to Section 11 of the Agreement, the Investors constituting the Requisite Investors extend the Filing Deadline with respect to the Registration Statement required pursuant to Section 2(a)(i) of the Agreement.

 

WHEREAS, the undersigned Investors wish, to the extent applicable, on behalf of all holders of Registrable Securities, to extend the Filing Deadline with respect to the Registration Statement required pursuant to Section 2(a)(i) of the Agreement.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and, to the extent required, the undersigned Investors hereby agree as follows:

 

1.                                      The Company and, to the extent required, the undersigned Investors, pursuant to the terms of the Agreement, hereby amend the Agreement to extend the Filing Deadline until December 21, 2018 solely with respect to the Registration Statement required pursuant to Section 2(a)(i) of the Agreement.  For the avoidance of doubt, this extension shall not amend, modify or extend any other Filing Deadline.

 

2.                                      Except as expressly provided in Section 1, (i) this Amendment shall not amend or otherwise modify the terms of the Agreement, and all other terms and conditions in the Agreement shall remain in full force and effect and (ii) this Amendment shall not be deemed to be a waiver, amendment or modification of, or consent to or departure from, any provision of the Agreement.  This Amendment shall be effective as of the date hereof.

 

[Signature Page to Follow]

 

 

NEOS THERAPEUTICS, INC.

 

	
By: 
    	
/s/ Richard I.   Eisenstadt
    	
 
    
	
Name:
    	
Richard I. Eisenstadt
    	
 
    
	
Title:
    	
Chief Financial Officer
    	
 
    

 

[Signature Page to Neos Therapeutics, Inc. Registration Rights Amendment]

 

 

	
 
    	
INVESTOR:
    
	
 
    	
 
    
	
 
    	
DEERFIELD   PRIVATE DESIGN FUND III, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Deerfield Mgmt III, L.P., its General Partner
    
	
 
    	
By:
    	
J.E. Flynn Capital III, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David J. Clark
    
	
 
    	
Name:
    	
David J. Clark
    
	
 
    	
Title:
    	
Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
DEERFIELD   SPECIAL SITUATIONS FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Deerfield Mgmt., L.P., its General Partner
    
	
 
    	
By:
    	
J.E. Flynn Capital, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David J. Clark
    
	
 
    	
Name:
    	
David J. Clark
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

[Signature Page to Neos Therapeutics, Inc. Registration Rights Amendment]Exhibit
4.1

 

usell.com,
Inc.

2018
EQUITY INCENTIVE PLAN

 

uSell.com,
Inc. (the “Company”) hereby establishes this 2018 Equity Incentive Plan (the “Plan”), effective December
5, 2018 (“Effective Date”).

 

1.             Purpose;
Eligibility.

 

1.1       General
Purpose. The name of this plan is the uSell.com, Inc. 2018 Equity Incentive Plan. The purposes of the Plan are to (a)
enable the Company, and any Affiliate to attract and retain the types of Employees, Consultants and Directors who will contribute
to the Company’s long range success; (b) provide incentives that align the interests of Employees, Consultants and Directors
with those of the shareholders of the Company; and (c) promote the success of the Company’s business.

 

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

 

1.3       Available
Awards. Awards that may be granted under the Plan include: (a) Incentive Stock Options, (b) Non-Qualified Stock Options,
(c) Stock Appreciation Rights, and (d) Restricted Awards.

 

2.            Definitions.

 

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

 

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

 

“Award”
means any right granted under the Plan, including an Incentive Stock Option, a Non-Qualified Stock Option, a Stock Appreciation
Right, or a Restricted Award.

 

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

 

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

 

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

 

     

     

    

 

“Change
in Control” means (a) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger
or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the
Company and its subsidiaries, taken as a whole, to any Person that is not a subsidiary of the Company; (b) the Incumbent Directors
cease for any reason to constitute at least a majority of the Board; (c) the date which is 10 business days prior to the consummation
of a complete liquidation or dissolution of the Company; (d) the acquisition (after the Effective Date of this Plan) by any Person
of Beneficial Ownership of 50% or more (on a fully diluted basis) of the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”);
provided, however, that for purposes of this Plan, the following acquisitions shall not constitute a Change in Control:
(A) any acquisition by the Company or any Affiliate, (B) any acquisition by any employee benefit plan sponsored or maintained
by the Company or any subsidiary, (C) any acquisition which complies with clauses, (i), (ii) and (iii) of subsection (e) of this
definition or (D) in respect of an Award held by a particular Participant, any acquisition by the Participant or any group of
persons including the Participant (or any entity controlled by the Participant or any group of persons including the Participant);
or (e) the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction
involving the Company that requires the approval of the Company’s shareholders, whether for such transaction or the issuance
of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination:
(i) more than 50% of the total voting power of (A) the entity resulting from such Business Combination (the “Surviving Company”),
or (B) if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of sufficient voting securities
eligible to elect a majority of the members of the board of directors (or the analogous governing body) of the Surviving Company
(the “Parent Company”), is represented by the Outstanding Company Voting Securities that were outstanding immediately
prior to such Business Combination (or, if applicable, is represented by shares into which the Outstanding Company Voting Securities
were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the
same proportion as the voting power of the Outstanding Company Voting Securities among the holders thereof immediately prior to
the Business Combination; (ii) no Person (other than any employee benefit plan sponsored or maintained by the Surviving Company
or the Parent Company) is or becomes the Beneficial Owner, directly or indirectly, of 50% or more of the total voting power of
the outstanding voting securities eligible to elect members of the board of directors of the Parent Company (or the analogous
governing body) (or, if there is no Parent Company, the Surviving Company); and (iii) at least a majority of the members of the
board of directors (or the analogous governing body) of the Parent Company (or, if there is no Parent Company, the Surviving Company)
following the consummation of the Business Combination were Board members at the time of the Board’s approval of the execution
of the initial agreement providing for such Business Combination. For the avoidance of doubt, no acquisition(s) by a current Affiliate
who holds in excess of 50% Beneficial Ownership will be deemed a Change in Control.

 

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

 

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

 

“Common
Stock” means the common stock, par value $0.0001 per share, of the Company, or such other securities of the Company as may
be designated by the Committee from time to time in substitution thereof.

 

“Consultant”
means any individual who is engaged by the Company or any Affiliate to render consulting or advisory services.

 

     2

     

    

 

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

 

“Director”
means a member of the Board.

 

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

 

“Disqualifying
Disposition” has the meaning set forth in Section 14.12.

 

“Effective
Date” shall mean the date as of which this Plan is adopted by the Board.

 

“Employee”
means any person, including an Officer or Director, employed by the Company or an Affiliate; provided, that, for purposes
of determining eligibility to receive Incentive Stock Options, an Employee shall mean an employee of the Company or a parent or
subsidiary corporation within the meaning of Section 424 of the Code. Mere service as a Director or payment of a director’s
fee by the Company or an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate.

 

“Exchange
Act” means the Securities Exchange Act of 1934.

 

“Fair
Market Value” means, as of the last trading day before the grant of the Award, the value of the Common Stock as determined
below. If the Common Stock is listed on any established stock exchange or a national market system, including without limitation,
the New York Stock Exchange, The Nasdaq Stock Market or the OTC Markets, the Fair Market Value shall be the closing price of a
share of Common Stock as quoted on such exchange or system. In the absence of an established market for the Common Stock, the
Fair Market Value shall be determined in good faith by the Committee and such determination shall be conclusive and binding on
all persons.

 

“Grant
Date” means the date on which the Committee adopts a resolution, or takes other appropriate action, expressly granting an
Award to a Participant that specifies the key terms and conditions of the Award or, if a later date is set forth in such resolution,
then such date as is set forth in such resolution.

 

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“Incentive
Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the
Code.

 

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

 

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

 

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

 

“Officer”
means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder or who otherwise has been designated as an executive officer by the Board.

 

“Option”
means an Incentive Stock Option or a Non-Qualified Stock Option granted pursuant to the Plan.

 

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

 

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

 

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

 

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

 

“Plan”
means this 2018 Equity Incentive Plan, as amended and/or amended and restated from time to time.

 

     4

     

    

 

“Prior
Plan” shall mean the uSell.com, Inc. 2008 Equity Incentive Plan, as amended.

 

“Related
Rights” has the meaning set forth in Section 7.1(a).

 

“Restricted
Award” means any Award granted pursuant to Section 7.2(a).

 

“Restricted
Period” has the meaning set forth in Section 7.2(a).

 

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

 

“Securities
Act” means the Securities Act of 1933.

 

“Stock
Appreciation Right” means the right pursuant to an Award granted under Section 7.1 to receive, upon exercise, an amount
payable in cash or shares equal to the number of shares subject to the Stock Appreciation Right that is being exercised multiplied
by the excess of (a) the Fair Market Value of a share of Common Stock, over (b) the exercise price specified in the Stock Appreciation
Right Award Agreement.

 

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

 

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

 

3.             Administration.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3.2           Committee
Decisions Final. All decisions made by the Committee pursuant to the provisions of the Plan shall be final and binding
on the Company and the Participants, unless such decisions are determined by a court having jurisdiction to be arbitrary and capricious.

 

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

 

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

 

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

 

4.             Shares
Subject to the Plan.

 

4.1       Subject
to adjustment in accordance with Sections 11 and 4.2(b) below, shares authorized for Awards granted under the Plan on and after
the Effective Date shall not exceed 1,000,000 shares. In addition, and subject to adjustment as provided in Sections 12.2 and
3.1(b) below, shares subject to outstanding grants under the Prior Plan that terminate, expire or are canceled, forfeited, exchanged
or surrendered without having been exercised, vested or paid in shares under the Prior Plan after the Effective Date shall be
added to the share reserve under the Plan. No more than 1,000,000 shares of Common Stock may be granted as Incentive Stock Options.
Any shares of Common Stock granted in connection with Awards shall be counted against this limit on a one-for-one basis. During
the terms of the Awards, the Company shall reserve at all times the number of shares of Common Stock required to satisfy such
Awards. Shares of Common Stock available for distribution under the Plan may consist, in whole or in part, of authorized and unissued
shares or shares reacquired by the Company in any manner.

 

4.2       If
(i) any shares subject to an Award granted under the Plan are forfeited, an Award granted under the Plan expires or otherwise
terminates without issuance of shares, or an Award granted under the Plan is settled for cash (in whole or in part) or otherwise
does not result in the issuance of all or a portion of the shares subject to such Award (except as described below with respect
to stock settled Stock Appreciation Rights), such shares shall, to the extent of such forfeiture, expiration, termination, cash
settlement or non-issuance, again be available for grant under the Plan in accordance with Section 4.3 below and (ii) after the
Effective Date, any shares subject to an award granted under the Prior Plan are forfeited, an award granted under the Prior Plan
expires or otherwise terminates without issuance of such shares, or an award granted under the Prior Plan is settled for cash
(in whole or in part), or otherwise does not result in the issuance of all or a portion of the shares subject to such award, then
in each such case the shares subject to the award under the Prior Plan shall, to the extent of such forfeiture, expiration, termination,
cash settlement or non-issuance, again be available for grant under the Plan in accordance with Section 4.3 below. Notwithstanding
anything to the contrary contained herein: shares subject to an Award under the Plan shall not again be made available for issuance
or delivery under the Plan if such shares are (a) shares tendered in payment of an Option, (b) shares delivered or withheld by
the Company to satisfy any tax withholding obligation, or (c) shares covered by a stock-settled Stock Appreciation Right or other
Awards that were not issued upon the settlement of the Award.

 

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4.3       Any
shares that again become available for Awards under the Plan pursuant to this Section shall be added as one share for every one
share subject to the Awards granted under the Plan or the awards granted under any Prior Plan.

 

4.4       The
maximum grant date value of shares subject to Awards granted to any Director during any calendar year, taken together with any
cash fees payable to such Director for services rendered during such calendar year, shall not exceed $150,000 in total value.
For purposes of this limit, the value of such Awards shall be calculated based on the grant date fair value of such Awards for
financial reporting purposes.

 

5.            Eligibility.

 

5.1       Eligibility
for Specific Awards. Incentive Stock Options may not be granted under this Plan, unless the Plan is approved by the
shareholders of the Company within 12 months after the date this Plan is adopted by the Board. Incentive Stock Options may be
granted only to Employees. Awards other than Incentive Stock Options may be granted to Employees, Consultants and Directors and
those individuals whom the Committee determines are reasonably expected to become Employees, Consultants and Directors following
the Grant Date.

 

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

 

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

 

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

 

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6.2       Exercise
Price of an Incentive Stock Option. Subject to the provisions of Section 5.2 regarding Ten Percent Shareholders, the
Option Exercise Price of each Incentive Stock Option shall be not less than 100% of the Fair Market Value of the Common Stock
subject to the Option on the Grant Date. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an Option
Exercise Price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution
for another option in a manner satisfying the provisions of Section 424A of the Code.

 

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

 

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

 

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

 

6.6       Transferability
of a Non-Qualified Stock Option. A Non-Qualified Stock Option may, in the sole discretion of the Committee, be transferable
to a Permitted Transferee, upon written approval by the Committee to the extent provided in the Award Agreement. If the Non-Qualified
Stock Option does not provide for transferability, then the Non-Qualified Stock Option shall not be transferable except by will
or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder.
Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise
the Option.

 

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

 

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

 

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

 

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

 

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

 

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

 

7.            Provisions
of Awards Other Than Options.

 

7.1           Stock
Appreciation Rights.  

 

(a)       General.
Each Stock Appreciation Right granted under the Plan shall be evidenced by an Award Agreement. Each Stock Appreciation Right so
granted shall be subject to the conditions set forth in this Section 7.1, and to such other conditions not inconsistent with the
Plan as may be reflected in the applicable Award Agreement. Stock Appreciation Rights may be granted alone or in tandem with an
Option granted under the Plan.

 

(b)       Grant
Requirements. Any Award that relates to a Non-Qualified Stock Option may be granted at the same time the Option is granted
or at any time thereafter but before the exercise or expiration of the Option.

 

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

 

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

 

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

 

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

 

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

 

(h)       Transferability
of Stock Appreciation Rights. A Stock Appreciation Right may, in the sole discretion of the Committee, be transferable to
a Permitted Transferee, upon written approval by the Committee to the extent provided in the Award Agreement. If the Stock Appreciation
Right does not provide for transferability, then the Stock Appreciation Right shall not be transferable except by will or by the
laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the Participant. Notwithstanding
the foregoing, the Participant may, by delivering written notice to the Company, in a form satisfactory to the Company, designate
a third party who, in the event of the death of the Participant, shall thereafter be entitled to exercise the Stock Appreciation
Right. A Stock Appreciation Right granted simultaneously with or subsequent to the grant of an Option and in conjunction therewith
or in the alternative thereto shall be transferable only upon the same terms and conditions as the related Option.

 

7.2           Restricted
Awards.

 

(a)        General.
A Restricted Award is an Award of actual shares of Common Stock (“Restricted Stock”) or hypothetical Common Stock
units (“Restricted Stock Units”) having a value equal to the Fair Market Value of an identical number of shares of
Common Stock, which may, but need not, provide that such Restricted Award may not be sold, assigned, transferred or otherwise
disposed of, pledged or hypothecated as collateral for a loan or as security for the performance of any obligation or for any
other purpose for such period (the “Restricted Period”) as the Committee shall determine. Each Restricted Award granted
under the Plan shall be evidenced by an Award Agreement. Each Restricted Award so granted shall be subject to the conditions set
forth in this Section 7.2, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award
Agreement.

 

(b)       Restricted
Stock and Restricted Stock Units.

 

(i)       Each
Participant granted Restricted Stock shall execute and deliver to the Company an Award Agreement with respect to the Restricted
Stock setting forth the restrictions and other terms and conditions applicable to such Restricted Stock. If the Committee determines
that the Restricted Stock shall be held by the Company or in escrow rather than delivered to the Participant pending the release
of the applicable restrictions, the Committee may require the Participant to additionally execute and deliver to the Company (A)
an Escrow Agreement satisfactory to the Committee, if applicable and (B) the appropriate blank stock power with respect to the
Restricted Stock covered by such Agreement. If a Participant fails to execute an Agreement evidencing an Award of Restricted Stock
and, if applicable, an Escrow Agreement and stock power, the Award shall be null and void. Subject to the restrictions set forth
in the Award, the Participant generally shall have the rights and privileges of a shareholder as to such Restricted Stock, including
the right to vote such Restricted Stock and the right to receive dividends; provided that, any cash dividends and stock dividends
with respect to the Restricted Stock shall be withheld by the Company for the Participant’s account, and interest may be
credited on the amount of the cash dividends withheld at a rate and subject to such terms as determined by the Committee. The
cash dividends or stock dividends so withheld by the Committee and attributable to any particular share of Restricted Stock (and
earnings thereon, if applicable) shall be distributed to the Participant in cash or, at the discretion of the Committee, in shares
of Common Stock having a Fair Market Value equal to the amount of such dividends, if applicable, upon the release of restrictions
on such share and, if such share is forfeited, the Participant shall have no right to such dividends.

 

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(ii)       The
terms and conditions of a grant of Restricted Stock Units shall be reflected in an Award Agreement. No shares of Common Stock
shall be issued at the time a Restricted Stock Unit is granted, and the Company will not be required to set aside a fund for the
payment of any such Award. A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder.
At the discretion of the Committee, each Restricted Stock Unit (representing one share of Common Stock) may be credited with cash
and stock dividends paid by the Company in respect of one share of Common Stock (“Dividend Equivalents”). Dividend
Equivalents shall be paid currently (and in no case later than the end of the calendar year in which the dividend is paid to the
holders of the Common Stock or, if later, the 15th day of the third month following the date the dividend is paid to holders of
the Common Stock). Dividend Equivalents shall be withheld by the Company and credited to the Participant’s account, and
interest may be credited on the amount of cash Dividend Equivalents credited to the Participant’s account at a rate and
subject to such terms as determined by the Committee. Dividend Equivalents credited to a Participant’s account and attributable
to any particular Restricted Stock Unit (and earnings thereon, if applicable) shall be distributed in cash or, at the discretion
of the Committee, in shares of Common Stock having a Fair Market Value equal to the amount of such Dividend Equivalents and earnings,
if applicable, to the Participant upon settlement of such Restricted Stock Unit and, if such Restricted Stock Unit is forfeited,
the Participant shall have no right to such Dividend Equivalents. Dividend Equivalents will be deemed re-invested in additional
Restricted Stock Units based on the Fair Market Value of a share of Common Stock on the applicable dividend payment date and rounded
down to the nearest whole share.

 

(c)        Restrictions.

 

(i)       Restricted
Stock awarded to a Participant shall be subject to the following restrictions until the expiration of the Restricted Period, and
to such other terms and conditions as may be set forth in the applicable Award Agreement: (A) if an escrow arrangement is used,
the Participant shall not be entitled to delivery of the stock certificate; (B) the shares shall be subject to the restrictions
on transferability set forth in the Award Agreement; (C) the shares shall be subject to forfeiture to the extent provided in the
applicable Award Agreement; and (D) to the extent such shares are forfeited, the stock certificates shall be returned to the Company,
and all rights of the Participant to such shares and as a shareholder with respect to such shares shall terminate without further
obligation on the part of the Company.

 

(ii)       Restricted
Stock Units awarded to any Participant shall be subject to (A) forfeiture until the expiration of the Restricted Period, and to
the extent such Restricted Stock Units are forfeited, all rights of the Participant to such Restricted Stock Units shall terminate
without further obligation on the part of the Company and (B) such other terms and conditions as may be set forth in the applicable
Award Agreement.

 

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

 

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

 

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

 

(e)       Delivery
of Restricted Stock and Settlement of Restricted Stock Units. Upon the expiration of the Restricted Period with respect to
any shares of Restricted Stock, the restrictions set forth in Section 7.2(c) and the applicable Award Agreement shall be of no
further force or effect with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow arrangement
is used, upon such expiration, the Company shall deliver to the Participant, or his or her beneficiary, without charge, the stock
certificate evidencing the shares of Restricted Stock which have not then been forfeited and with respect to which the Restricted
Period has expired (to the nearest full share) and any cash dividends or stock dividends credited to the Participant’s account
with respect to such Restricted Stock and the interest thereon, if any. Upon the expiration of the Restricted Period with respect
to any outstanding Restricted Stock Units, the Company shall deliver to the Participant, or his or her beneficiary, without charge,
one share of Common Stock for each such outstanding vested Restricted Stock (“Vested Unit”) and cash equal to any
Dividend Equivalents credited with respect to each such Vested Unit in accordance with Section 7.2(b)(i) hereof and the interest
thereon or, at the discretion of the Committee, in shares of Common Stock having a Fair Market Value equal to such Dividend Equivalents
and the interest thereon, if any; provided, however, that, if explicitly provided in the applicable Award Agreement,
the Committee may, in its sole discretion, elect to pay cash or part cash and part Common Stock in lieu of delivering only shares
of Common Stock for Vested Units. If a cash payment is made in lieu of delivering shares of Common Stock, the amount of such payment
shall be equal to the Fair Market Value of the Common Stock as of the date on which the Restricted Period lapsed with respect
to each Vested Unit.

 

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

 

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

 

9.           Use
of Proceeds from Stock. Proceeds from the sale of Common Stock pursuant to Awards, or upon exercise thereof, shall
be used for general corporate purposes.

 

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10.           Miscellaneous.

 

10.1       Acceleration
of Exercisability and Vesting. The Committee shall have the power to accelerate the time at which an Award may first
be exercised or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding the
provisions in the Award stating the time at which it may first be exercised or the time during which it will vest.

 

10.2       Shareholder
Rights. Except as provided in the Plan or an Award Agreement, no Participant shall be deemed to be the holder of, or
to have any of the rights of a holder with respect to, any shares of Common Stock subject to such Award unless and until such
Participant has satisfied all requirements for exercise of the Award pursuant to its terms and no adjustment shall be made for
dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions of other rights for which
the record date is prior to the date such Common Stock certificate is issued, except as provided in Section 11 hereof.

 

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

 

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

 

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

 

11.       Adjustments
Upon Changes in Stock. In the event of changes in the outstanding Common Stock or in the capital structure of the Company
by reason of any stock or extraordinary cash dividend, stock split, reverse stock split, an extraordinary corporate transaction
such as any recapitalization, reorganization, merger, consolidation, combination, exchange, or other relevant change in capitalization
occurring after the Grant Date of any Award, Awards granted under the Plan and any Award Agreements, the exercise price of Options
and Stock Appreciation Rights, the maximum number of shares of Common Stock subject to all Awards stated in Section 4 and the
maximum number of shares of Common Stock with respect to which any one person may be granted Awards during any period stated in
Section 4 will be equitably adjusted or substituted, as to the number, price or kind of a share of Common Stock or other consideration
subject to such Awards to the extent necessary to preserve the economic intent of such Award. In the case of adjustments made
pursuant to this Section 11, unless the Committee specifically determines that such adjustment is in the best interests of the
Company or its Affiliates, the Committee shall, in the case of Incentive Stock Options, ensure that any adjustments under this
Section 11 will not constitute a modification, extension or renewal of the Incentive Stock Options within the meaning of Section
424(h)(3) of the Code and in the case of Non-Qualified Stock Options, ensure that any adjustments under this Section 11 will not
constitute a modification of such Non-Qualified Stock Options within the meaning of Section 409A of the Code. Any adjustments
made under this Section 11 shall be made in a manner which does not adversely affect the exemption provided pursuant to Rule 16b-3
under the Exchange Act. The Company shall give each Participant notice of an adjustment hereunder and, upon notice, such adjustment
shall be conclusive and binding for all purposes.

 

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12.           Effect
of Change in Control.

 

12.1        Unless
otherwise provided in an Award Agreement, notwithstanding any provision of the Plan to the contrary:

 

(a)       In
the event of a Change in Control, all Options and Stock Appreciation Rights shall vest and become immediately exercisable with
respect to 100% of the shares subject to such Options or Stock Appreciation Rights, and the Restricted Period shall expire immediately
with respect to 100% of the shares of Restricted Stock or Restricted Stock Units.

 

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

 

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

 

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

 

13.           Amendment
of the Plan and Awards.

 

13.1       Amendment
of Plan. The Board at any time, and from time to time, may amend or terminate the Plan. However, except as provided
in Section 11 relating to adjustments upon changes in Common Stock and Section 13.3, no amendment shall be effective unless approved
by the shareholders of the Company to the extent shareholder approval is necessary to satisfy the Code for Incentive Stock Options
or rules of any stock exchange upon which the Common Stock is listed. At the time of such amendment, the Board shall determine,
upon advice from counsel, whether such amendment will be contingent on shareholder approval.

 

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

 

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

 

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

 

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

 

13.6       Conversion
of Incentive Stock Options into Non-Qualified Stock Options; Termination of Incentive Stock Options. The Board or Committee,
at the written request of any Optionholder, may in its discretion take such actions as may be necessary to convert such Otionholder’s
Incentive Stock Options (or any installments or portions of installments thereof) that have not been exercised on the date of
conversion into Non-Qualified Stock Options at any time prior to the expiration of such Incentive Stock Options, regardless of
whether the Optionholder is an employee of the Company or an Affiliate at the time of such conversion; provided, however,
the Board or Committee shall not reprice the Options or extend the exercise period or reduce the exercise price of the appropriate
installments of such Options without the approval of the Company’s shareholders. At the time of such conversion, the Board
or Committee (with the consent of the Optionholder) may impose such conditions on the exercise of the resulting Non-Qualified
Stock Options as the Board or Committee in its discretion may determine, provided that such conditions shall not be inconsistent
with this Plan. Nothing in the Plan shall be deemed to give any Optionholder the right to have such Optionholder’s Incentive
Stock Options converted into Non-Qualified Stock Options, and no such conversion shall occur until and unless the Board or Committee
takes appropriate action. The Committee, with the consent of the Optionholder, may also terminate any portion of any Incentive
Stock Options that has not been exercised at the time of such termination.

 

14.           General
Provisions.

 

14.1       Forfeiture
Events. Each Award and the Participant’s rights, payments and benefits with respect to an Award shall be subject
to reduction, cancellation, forfeiture or recoupment upon the occurrence of the events described below, in addition to applicable
vesting conditions of an Award. Such events include a termination of the relationship with the Participant for cause, including,
but not limited to, fraud, theft, dishonesty, and violation of the Company policy, breach of a duty of confidentiality, competing
with the Company, soliciting Company personnel after employment is terminated, failure to assign any invention or technology to
the Company if such assignment is a condition of employment or any other agreements between the Company and the Participant, violation
of the Company’s insider trading policy, or other conduct by the Participant that is detrimental to the business or reputation
of the Company and/or its Affiliates as determined by the Board (collectively, the “Forfeiture Events”).

 

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If
any of the Forfeiture Events occur within one year from the date the grantee last performed services for the Company in the capacity
for which the Awards were granted (the “Termination Date”) (or such longer period required by any written agreement),
all profits earned from the sale of the Company’s securities, including the sale of shares of Common Stock underlying the
Awards, during the two-year period commencing one year prior to the Termination Date shall be forfeited and immediately paid by
the grantee to the Company. Further, in such event, the Company may at its option redeem shares of Common Stock acquired upon
exercise of the Award by payment of the exercise price to the grantee. To the extent that another written agreement with the Company
extends the Forfeiture Events beyond one year following the Termination Date, the two-year period shall be extended by an equal
number of days. The Company’s rights under this Section 14.1 do not lapse one year form the Termination Date but are contract
rights subject to any appropriate statutory limitation period.

 

14.2       Clawback.
Notwithstanding any other provisions in this Plan, any Award which is subject to recovery under any law, government regulation
or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant
to such law, government regulation or stock exchange listing requirement (or any policy adopted by the Company pursuant to any
such law, government regulation or stock exchange listing requirement).

 

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

 

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

 

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

 

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

 

14.7       Recapitalizations.
Each Award Agreement shall contain provisions required to reflect the provisions of Section 11.

 

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

 

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

 

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

 

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

 

14.12       Disqualifying
Dispositions. Any Participant who shall make a “disposition” (as defined in Section 424 of the Code) of
all or any portion of shares of Common Stock acquired upon exercise of an Incentive Stock Option within two years from the Grant
Date of such Incentive Stock Option or within one year after the issuance of the shares of Common Stock acquired upon exercise
of such Incentive Stock Option (a “Disqualifying Disposition”) shall be required to immediately advise the Company
in writing as to the occurrence of the sale and the price realized upon the sale of such shares of Common Stock.

 

14.13       Section
16. It is the intent of the Company that the Plan satisfy, and be interpreted in a manner that satisfies, the applicable
requirements of Rule 16b-3 as promulgated under Section 16 of the Exchange Act so that Participants will be entitled to the benefit
of Rule 16b-3, or any other rule promulgated under Section 16 of the Exchange Act, and will not be subject to short-swing liability
under Section 16 of the Exchange Act. Accordingly, if the operation of any provision of the Plan would conflict with the intent
expressed in this Section 14.13, such provision to the extent possible shall be interpreted and/or deemed amended so as to avoid
such conflict. Provided, however, this Section 14.13 shall only apply if the Company is required to give reports under the Exchange
Act.

 

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

 

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

 

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

 

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

 

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

 

15.       Termination
or Suspension of the Plan. The Plan shall terminate automatically 10 years from the Effective Date. No Award shall
be granted pursuant to the Plan after such date, but Awards theretofore granted may extend beyond that date. The Board may suspend
or terminate the Plan at any earlier date pursuant to Section 13.1 hereof. No Awards may be granted under the Plan while the Plan
is suspended or after it is terminated.

 

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

 

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