Document:

Exhibit 10.12

 

EXECUTION VERSION

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (the “Agreement”)
is made as of January 10, 2020 by and among Agrify Corporation, a Nevada corporation (including any successor in interest of the
Company or other entity that issues Registrable Securities (as defined herein), the “Company”), and the other
persons who shall have delivered a signature page hereto (each an “Investor,” and collectively, the “Investors”).

 

RECITALS

 

WHEREAS, pursuant to Investor
Subscription Agreements (the “Subscription Agreements”) dated the date hereof, the Company sold to the Investors
shares of Series A Convertible Preferred Stock (the “Series A Preferred Stock”), convertible into shares of
the Company’s common stock, par value $0.001 per share (the “Common Stock”).

 

WHEREAS, the Company and the Investors
desire to enter into this Agreement in order to, among other things, reflect the registration rights to be provided to the Investors
in connection with their purchase of the Series A Stock.

 

NOW, THEREFORE, in consideration of the mutual promises
and covenants and agreements set forth herein, the Company and the Investors hereby agree as follows:

 

AGREEMENT

 

		1.	Registration Rights.

 

1.1 Definitions. For purposes of this Section 1:

 

(a) Holder.
For purposes of this Section 1 and Section 2 hereof, the term “Holder” or “Holders” means
any person or persons owning of record Registrable Securities and any affiliate or any permitted transferee or assignee of record
of such Registrable Securities; provided, however, that for purposes of this Agreement, a record holder of any securities
convertible or exercisable into such Registrable Securities shall be deemed to be the Holder of such Registrable Securities.

 

(b) Registration.
The terms “register,” “registered,” and “registration” refer to a registration
effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering
of effectiveness of such registration statement.

 

(c) Registrable Securities.
The term “Registrable Securities” means: (i) any and all shares of Common Stock issued or issuable upon conversion
of the Series A Preferred Stock (the “Securities”), and (iii) any securities issued as (or issuable upon the
conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect
to, in exchange for or in replacement of, the Securities, provided that any of the foregoing securities shall cease to be Registrable
Securities upon the earliest to occur of the following: (A) a sale pursuant to an effective Registration Statement (B) a sale
pursuant to Rule 144 promulgated under the Securities Act (“Rule 144”) or any similar rule then in force under
the Securities Act; (C) eligibility for sale pursuant to Rule 144 without current public information requirements and volume or
manner of sale restrictions; or (D) when such securities shall cease to be outstanding.

 

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(d) Registration
Statement. The term “Registration Statement” shall mean any registration statement of the Company filed
under the Securities Act that covers the resale of any of the Registrable Securities pursuant to the provisions of this Agreement,
amendments and supplements to such Registration Statement, including post-effective amendments, all exhibits and all material incorporated
by reference in such Registration Statement.

 

(e) Securities
Act. The term “Securities Act” means the Securities Act of 1933, as amended.

 

(f) SEC. The term “SEC”
means the United States Securities and Exchange Commission.

 

1.2 Piggyback
Registrations. The Company shall notify all Holders of Registrable Securities in writing at least fifteen (15) calendar days
prior to filing any registration statement under the Securities Act for purposes of effecting an offering of securities of the
Company (including, but not limited to, registration statements relating to secondary offerings of securities of the Company, but
excluding registration statements relating to (i) an underwritten public offering of the Common Stock as a result of which
the Common Stock will be listed on NASDAQ, NYSE, NYSE American or similar nationally-recognized stock exchange, (ii) any employee
benefit plan or (iii) a corporate reorganization, merger or acquisition) and will afford each such Holder an opportunity to include
in such registration statement all or any part of the Registrable Securities then held by such Holder. Each Holder desiring to
include in any such registration statement all or any part of the Registrable Securities held by such Holder shall, within ten
(10) calendar days after receipt of the above-described notice from the Company, so notify the Company in writing, and in such
notice shall inform the Company of the number of Registrable Securities such Holder wishes to include in such registration statement.
If a Holder decides not to include all of its Registrable Securities in any registration statement thereafter filed by the Company,
such Holder shall nevertheless continue to have the right to include any Registrable Securities in any subsequent registration
statement or registration statements as may be filed by the Company with respect to offerings of its securities, all upon the terms
and conditions set forth herein.

 

(a) Underwriting. If
a registration statement under which the Company gives notice under this Section 1.2 is for an underwritten offering, then
the Company shall so advise the Holders of Registrable Securities. In such event, the right of any such Holder’s
Registrable Securities to be included in a registration pursuant to this Section 1.2 shall be conditioned upon such
Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the
underwriting to the extent provided herein. All Holders proposing to distribute their Registrable Securities through such
underwriting shall enter into an underwriting agreement in customary form with the managing underwriter or underwriter(s)
selected by the Company for such underwriting. Notwithstanding any other provision of this Agreement, if the managing
underwriter(s) determine(s) in good faith that marketing factors require a limitation of the number of shares to be
underwritten, then the managing underwriter(s) may exclude shares (including Registrable Securities) from the registration
and the underwriting, and the number of shares that may be included in the registration and the underwriting shall be
allocated, first, to any person that exercised demand registration rights in connection with such registration, second,
the Company, and third, to all holders of Company securities having piggyback registration rights (including Holders
of Registrable Securities) requesting inclusion of their securities in such registration statement on a pro rata basis based
on the total number of securities for which registration was requested. If any Holder disapproves of the terms of any such
underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and the underwriter, delivered at
least ten (10) business days prior to the effective date of the registration statement. Any Registrable Securities excluded
or withdrawn from such underwritten offering shall be removed from the applicable Registration Statement.

 

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(b) Company
Termination of Registration. The Company reserves the right to terminate any registration under this Section 1.2 at any time
and for any reason without liability to any Holder.

 

(c) Registration
Expenses. All expenses relating to the Company’s compliance with this Section 1.2, including, without limitation,
all registration, filing and listing application fees, costs of distributing any prospectuses and supplements thereto, printing
expenses, fees and disbursements of counsel and independent public accountants for the Company, fees and expenses (including counsel
fees) incurred in connection with complying with state securities or “blue sky” laws, fees of FINRA, transfer taxes,
and fees of transfer agents and registrars (collectively, the “Registration Expenses”) shall be borne by the
Company. The obligation of the Company to bear the Registration Expenses shall apply irrespective of whether a registration becomes
effective, is withdrawn or suspended, is converted to another form of registration and irrespective of when any of the foregoing
shall occur.

 

(d) Selling
Expenses. All underwriting discounts and selling commissions applicable to the sale of Registrable Securities, and any fees
and disbursements of any counsel to the Holders (collectively, the “Selling Expenses”) shall be borne by the
Holders in proportion to the aggregate selling price of the Registrable Securities of each Holder to be so registered, including,
without limitation, the following: underwriting fees, discounts and expenses, if any, applicable to any Holder’s Registrable
Securities; fees and disbursements of counsel or other professionals that any Holder may choose to retain in connection with a
Registration Statement filed pursuant to this Agreement; and any other expenses incurred by or on behalf of such Designated Holder
in connection with the offer and sale of such Designated Holder’s Registrable Securities other than expenses that the Company
is expressly obligated to pay pursuant to this Agreement.

 

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1.3 Obligations
of the Company. Whenever required to effect the registration of any Registrable Securities under this Agreement, the Company
shall, as expeditiously as reasonably possible:

 

(a) subject
to the termination rights set forth in Section 1.2(b) above, prepare and file with the SEC a Registration Statement with
respect to such Registrable Securities, respond as promptly as possible to any comments received from the SEC, and use its
commercially reasonable efforts to cause such Registration Statement to become effective, and the Holders shall have the
opportunity to object to any information pertaining to itself that is contained therein and the Company will make the
corrections reasonably requested by the Holders with respect to such information prior to filing any Registration Statement
or amendment thereto or any prospectus or any supplement thereto;

 

(b) subject
to the termination rights set forth in Section 1.2(b) above, prepare and file with the SEC such amendments and supplements to such
Registration Statements and any prospectus used in connection therewith as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all Registrable Securities covered by such Registration Statement and to keep
such Registration Statement effective until the expiration of the effective period applicable to such Registration Statement;

 

(c) provide
copies to and permit counsel designated by the Holders to review each Registration Statement and all amendments and supplements
thereto no fewer than five

(5) calendar days prior to their filing with the SEC;

 

(d) furnish
to the Holders such number of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of
the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of the Registrable
Securities owned by them that are included in such registration;

 

(e) use
its best efforts to register and qualify the Registrable Securities covered by such Registration Statement under such other securities
laws of such jurisdictions as shall be reasonably requested by the Holders, provided that the Company shall not be required in
connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in
any such jurisdictions;

 

(f) in
the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual
and customary form, with the managing underwriter(s) of such offering (it being understood and agreed that, as a condition to the
Company’s obligations under this clause (f), each Holder participating in such underwriting public offering shall also enter
into and perform its obligations under such an agreement);

 

(g) as
soon as reasonably practicable (but within at least one business day) notify each Holder of Registrable Securities covered by such
Registration Statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the
happening of any event as a result of which the prospectus included in such Registration Statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances then existing, and the Company shall as soon as reasonably
practicable prepare and file with the SEC an amendment or supplement such prospectus in order to cause such prospectus not to include
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances then existing;

 

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(h) use
commercially reasonable efforts to cause all Registrable Securities covered by a Registration Statement to be listed on each securities
exchange, interdealer quotation system or other market on which similar securities issued by the Company are then listed;

 

(i) make
available for inspection, during normal business hours and on reasonable notice, by the Holders and any attorney, accountant or
other agent retained by any of the Holders, all reasonably requested publicly available, non-confidential financial and other records,
pertinent corporate documents and properties of the Company, and cause the Company’s officers, directors and employees to
supply, on reasonable notice, all publicly available, non- confidential information reasonably requested by the attorney, accountant
or agent of any Holder; and

 

(j) continuously
maintain a transfer agent and registrar for all Registrable Securities.

 

1.4 Information.
The Company may require each selling Holder to furnish to the Company information regarding such Holder and the distribution of
such Registrable Securities as is required by law or the SEC to be disclosed in such Registration Statement, prospectus, or any
amendment or supplement thereto, and the Company may exclude from such registration the Registrable Securities of any such Holder
who unreasonably fails to furnish such information within a reasonable time after receiving such request.

 

1.5 Indemnification.
In the event any Registrable Securities are included in a registration statement under Section 1.2 hereof:

 

(a) By
the Company. The Company will indemnify and hold harmless each Holder and its partners, officers and directors, employees
and agents, successors and assigns and each other person, if any, who controls such Holder within the meaning of the
Securities Act, any underwriter (as defined in the Securities Act) for such Holder and each person, if any, who controls such
Holder or underwriter within the meaning of the Securities Act or the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), against any losses, claims, damages, or liabilities (joint or several) to which they may
become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims,
damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements,
omissions or violations (collectively a “Violation”):

 

(i) any
untrue statement or alleged untrue statement of a material fact contained in any Registration Statement, including any preliminary
prospectus or final prospectus contained therein or any amendments or supplements thereto;

 

(ii) the
omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements
therein not misleading; or

 

(iii) any
violation or alleged violation by the Company of the Securities Act, the Exchange Act, any federal or state securities law or any
rule or regulation promulgated under the Securities Act, the Exchange Act or any federal or state securities law in connection
with the offering covered by such registration statement;

 

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and the Company will reimburse each such Holder, partner,
officer or director, underwriter or controlling person for any legal or other expenses reasonably incurred by them in connection
with defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement
contained in this subsection 1.5(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or
action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor
shall the Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises
out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly
for use in connection with such registration by such Holder, partner, officer, director, underwriter or controlling person of such
Holder specifically for inclusion in such Registration Statement or prospectus or amendment or supplement thereto.

 

(b) By
Selling Holders. Each selling Holder, severally but not jointly, will indemnify and hold harmless the Company, each of its
directors, each of its officers who have signed the registration statement, any underwriter (as defined in the Securities Act)
for the Company, and each person, if any, who controls the Company or such underwriter within the meaning of the Securities Act,
against any losses, claims, damages or liabilities (joint or several) to which the Company or any such director, officer, controlling
person, or underwriter may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as
such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each
case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information
furnished by such Holder under an instrument duly executed by such Holder specifically for inclusion in such Registration Statement
or prospectus or amendment or supplement thereto; and each such Holder will reimburse any legal or other expenses reasonably incurred
by the Company or any such director, officer, controlling person, or underwriter in connection with defending any such loss, claim,
damage, liability or action; provided, however, that the indemnity agreement contained in this subsection 1.5(b)
shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Holder, which consent shall not be unreasonably withheld; and provided further, that the total
amounts payable in indemnity by a Holder under this subsection 1.5(b) in respect of any Violation shall not exceed the net proceeds
received by such Holder upon the sale of the Registrable Securities included in the Registration Statement of which such Violation
arises.

 

(c) Notice.
Promptly after receipt by an indemnified party under this Section 1.55 of notice of the commencement of any action (including
any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying
party under this Section 1.55, deliver to the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with
any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the
parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the
fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained
by the indemnifying party would be inappropriate due to actual or potential conflict of interests between such indemnified
party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend
such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 1.55.

 

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(d) Contribution. If the
indemnification provided for in this Section 1.55 is held by a court of competent jurisdiction to be unavailable to an
indemnified party with respect to any losses, claims, damages or liabilities referred to herein, the indemnifying party, in
lieu of indemnifying such indemnified party thereunder, shall to the extent permitted by applicable law contribute to the
amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability in such proportion as
is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the
other in connection with the Violation(s) that resulted in such loss, claim, damage or liability, as well as any other
relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be
determined by a court of law by reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the
indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission; provided, (i) that in no event shall any contribution by a Holder hereunder exceed
the net proceeds received by such Holder upon the sale of the Registrable Securities included in the Registration Statement
of which such Violation arises, and (ii) no person or entity guilty of fraudulent misrepresentation (within the meaning of
Section 10(f) of the Securities Act) shall be entitled to contribution from any person or entity who was not guilty of such
fraudulent misrepresentation.

 

(e) Survival. The
obligations of the Company and Holders under this Section 1.55 shall survive the completion of any offering of Registrable
Securities in a registration statement, and otherwise.

 

1.6 Rule
144 Reporting. With a view to making available the benefits of certain rules and regulations of the SEC which may at any time
permit the sale of the Registrable Securities to the public without registration, the Company agrees to use commercially reasonable
efforts to:

 

(a) make
and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act, at all times
after the effective date of the first registration under the Securities Act filed by the Company for an offering of its securities
to the general public; and

 

(b) file
with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange
Act (at any time after it has become subject to such reporting requirements).

 

		2.	General Provisions.

 

2.1 Notices. Any notice,
request or other communication required or permitted hereunder shall be in writing and shall be deemed to have been duly given
if personally delivered, deposited in the international air mail postage prepaid, or sent by facsimile or e-mail when receipt
is electronically confirmed

 

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(i) if to
an Investor, as set forth below Investor’s name on the signature page of this Agreement; and

 

 (ii) if to the Company, to the address set forth below:

 

Agrify Corporation

1600 District Avenue, Unit 106

Burlington, MA 01803

Attention: [   ]

Telephone:
[   ]

 

Facsimile:

 

With a copy to:

 

Loeb & Loeb LLP

345 Park Avenue

New York, New York 10154

Attn: Mitchell
S. Nussbaum

Telephone No.: 212-407-4159

Facsimile No.: 212-407-4990

 

Any party hereto (and such party’s permitted assigns)
may by notice so given change its address for future notices hereunder. Notice shall be deemed conclusively given when personally
delivered or sent in the manner set forth above.

 

2.2 Amendments
and Waivers. This Agreement may be amended only by a writing signed by the Company and the Investors holding a majority of
the Registrable Securities. The Company may take any action herein prohibited, or omit to perform any act herein required to be
performed by it, only if the Company shall have obtained the written consent to such amendment, action or omission to act, of the
Investors holding a majority of the Registrable Securities.

 

2.3 Entire
Agreement. This Agreement, together with all the exhibits hereto, constitutes and contains the entire agreement and understanding
of the parties with respect to the subject matter hereof and supersedes any and all prior negotiations, correspondence, agreements,
understandings, duties or obligations between the parties respecting the subject matter hereof.

 

2.4 Governing
Law. This Agreement shall be governed by and construed exclusively in accordance with the internal laws of the State of New
York, excluding that body of law relating to conflict of laws and choice of law that would result in the application of the substantive
law of another jurisdiction.

 

2.5 JURISDICTION; SERVICE;
WAIVERS. ANY ACTION OR PROCEEDING IN CONNECTION WITH THIS AGREEMENT MAY BE BROUGHT IN A COURT OF RECORD OF THE STATE OF
NEW YORK IN THE COUNTY OF NEW YORK. THE PARTIES TO THIS AGREEMENT HEREBY CONSENT TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS
OF THE STATE OF NEW YORK, AND SERVICE OF PROCESS MAY BE MADE UPON THE PARTIES TO THIS AGREEMENT BY MAILING A COPY OF THE
SUMMONS AND ANY COMPLAINT TO SUCH PERSON, BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, AT ITS ADDRESS TO BE
USED FOR THE GIVING OF NOTICES UNDER THIS AGREEMENT. BY ACCEPTANCE HEREOF, THE PARTIES HERETO EACH HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OR MAINTAINING OF ANY SUCH ACTION
OR PROCEEDING IN SUCH JURISDICTION.

 

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2.6 Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, then such provision(s) shall be
excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision(s) were so excluded and
shall be enforceable in accordance with its terms.

 

2.7 Third
Parties. Nothing in this Agreement, express or implied, is intended to confer upon any person, other than the parties hereto
and their successors and assigns, any rights or remedies under or by reason of this Agreement.

 

2.8 Successors
and Assigns. The provisions of this Agreement shall inure to the benefit of, and shall be binding upon, the successors and
permitted assigns of the parties hereto.

 

2.9 Captions.
The captions to sections of this Agreement have been inserted for identification and reference purposes only and shall not be used
to construe or interpret this Agreement.

 

2.10 Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

 

2.11
Costs and Attorneys’ Fees. In the event that any action, suit or other proceeding is instituted concerning or arising
out of this Agreement or any transaction contemplated hereunder, the prevailing party shall recover all of such party’s costs
and reasonable attorneys’ fees incurred in each such action, suit or other proceeding, including any and all appeals or petitions
therefrom.

 

2.12 Adjustments
for Stock Splits and Certain Other Changes. Wherever in this Agreement there is a reference to a specific number of shares
of Common Stock of the Company, then, upon the occurrence of any subdivision, combination or stock dividend of such class or series
of stock, the specific number of shares so referenced in this Agreement shall automatically be proportionally adjusted to reflect
the effect on the outstanding shares of such class or series of stock by such subdivision, combination or stock dividend.

 

2.13 Aggregation
of Stock. All shares deemed to be “beneficially owned” (as such term is defined under Rule 13d-3 of the Exchange
Act) by any entity or person, shall be aggregated together for the purpose of determining the availability of any rights under
this Agreement.

 

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IN WITNESS WHEREOF, the parties hereto have executed
this Registration Rights Agreement as of the date and year first above written.

 

	 	AGRIFY CORPORATION

 

	 	By:	
	 	Name: 	Raymond Chang
	 	Title:	 CEO

 

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OMNIBUS INVESTOR SIGNATURE PAGE
TO AGRIFY CORPORATION

REGISTRATION RIGHTS
AGREEMENT

 

 

	[name]	 	[Name of Co-Investor, if applicable]

 

 

	[Signature]	 	[Signature]

 

	Name:	 	 	Name:	
	 	 	 	 	 
	Title:	 	 	Title:	 

 

	Mailing Address:	 	Telephone No.:	 

 

		 	Facsimile No:	 

 

		 	Email Address:	 

 

		 	Taxpayer ID Number:	 

 

Attention:

 

Counterpart
Signature Page to Registration Rights Agreement

 

 

11Exhibit 10.13

 

 

 

 

 

 

 

 

 

AGRIFY CORPORATION

 

2020 OMNIBUS EQUITY INCENTIVE

PLAN

 

 

 

 

 

 

 

 

 

 

     

     

    

 

AGRIFY CORPORATION

 

2020 OMNIBUS EQUITY INCENTIVE PLAN

 

Article

I

PURPOSE

 

The purpose of this Agrify

Corporation 2020 Omnibus Equity Incentive Plan (the “Plan”) is to benefit Agrify Corporation, a Nevada corporation

(the “Company”) and its stockholders, by assisting the Company and its subsidiaries to attract, retain and provide

incentives to key management employees, directors, and consultants of the Company and its Affiliates, and to align the interests

of such service providers with those of the Company’s stockholders. Accordingly, the Plan provides for the granting of Non-qualified

Stock Options, Incentive Stock Options, Restricted Stock Awards, Restricted Stock Unit Awards, Stock Appreciation Rights, Performance

Stock Awards, Performance Unit Awards, Unrestricted Stock Awards, Distribution Equivalent Rights or any combination of the foregoing.

 

Article

II

DEFINITIONS

 

The following definitions

shall be applicable throughout the Plan unless the context otherwise requires:

 

2.1 “Affiliate”

shall mean any corporation which, with respect to the Company, is a “subsidiary corporation” within the meaning of

Section 424(f) of the Code or other entity in which the Company has a controlling interest in such entity or another entity which

is part of a chain of entities in which the Company or each entity has a controlling interest in another entity in the unbroken

chain of entities ending with the applicable entity.

 

2.2 “Award”

shall mean, individually or collectively, any Option, Restricted Stock Award, Restricted Stock Unit Award, Performance Stock Award,

Performance Unit Award, Stock Appreciation Right, Distribution Equivalent Right or Unrestricted Stock Award.

 

2.3 “Award

Agreement” shall mean a written agreement between the Company and the Holder with respect to an Award, setting forth

the terms and conditions of the Award, as amended.

 

2.4 “Board”

shall mean the Board of Directors of the Company.

 

2.5 “Base

Value” shall have the meaning given to such term in Section 14.2.

 

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2.6 “Cause”

shall mean (i) if the Holder is a party to an employment or service agreement with the Company or an Affiliate which agreement

defines “Cause” (or a similar term), “Cause” shall have the same meaning as provided for in such

agreement, or (ii) for a Holder who is not a party to such an agreement, “Cause” shall mean termination by the

Company or an Affiliate of the employment (or other service relationship) of the Holder by reason of the Holder’s (A) intentional

failure to perform reasonably assigned duties, (B) dishonesty or willful misconduct in the performance of the Holder’s duties,

(C) involvement in a transaction which is materially adverse to the Company or an Affiliate, (D) breach of fiduciary duty involving

personal profit, (E) willful violation of any law, rule, regulation or court order (other than misdemeanor traffic violations and

misdemeanors not involving misuse or misappropriation of money or property), (F) commission of an act of fraud or intentional misappropriation

or conversion of any asset or opportunity of the Company or an Affiliate, or (G) material breach of any provision of the Plan or

the Holder’s Award Agreement or any other written agreement between the Holder and the Company or an Affiliate, in each case

as determined in good faith by the Board, the determination of which shall be final, conclusive and binding on all parties.

 

2.7 “Change

of Control” shall mean: (i) for a Holder who is a party to an employment or consulting agreement with the Company or

an Affiliate which agreement defines “Change of Control” (or a similar term), “Change of Control”

shall have the same meaning as provided for in such agreement, or (ii) for a Holder who is not a party to such an agreement, “Change

of Control” shall mean the satisfaction of any one or more of the following conditions (and the “Change of Control”

shall be deemed to have occurred as of the first day that any one or more of the following conditions shall have been satisfied):

 

(a) Any

person (as such term is used in paragraphs 13(d) and 14(d)(2) of the Exchange Act, hereinafter in this definition, “Person”),

other than the Company or an Affiliate or an employee benefit plan of the Company or an Affiliate, becomes the beneficial owner

(as defined in Rule 13d-3 under the Exchange Act), 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;

 

(b) The

closing of a merger, consolidation or other business combination (a “Business Combination”) other than a Business

Combination in which holders of the Shares immediately prior to the Business Combination have substantially the same proportionate

ownership of the common stock or ordinary shares, as applicable, of the surviving corporation immediately after the Business Combination

as immediately before;

 

(c) The

closing of an agreement for the sale or disposition of all or substantially all of the Company’s assets to any entity that

is not an Affiliate;

 

(d) The

approval by the holders of shares of Shares of a plan of complete liquidation of the Company, other than a merger of the Company

into any subsidiary or a liquidation as a result of which persons who were stockholders of the Company immediately prior to such

liquidation have substantially the same proportionate ownership of shares of common stock or ordinary shares, as applicable, of

the surviving corporation immediately after such liquidation as immediately before; or

 

    3

     

    

 

(e) Within

any twenty-four (24) month period, the Incumbent Directors shall cease to constitute at least a majority of the Board or the board

of directors of any successor to the Company; provided, however, that any director elected to the Board, or nominated

for election, by a majority of the Incumbent Directors then still in office, shall be deemed to be an Incumbent Director for purposes

of this paragraph (e), but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result

of either an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened

solicitation of proxies or consents by or on behalf of an individual, entity or “group” other than the Board (including,

but not limited to, any such assumption that results from paragraphs (a), (b), (c), or (d) of this definition).

  

2.8 “Code”

shall mean the United States of America Internal Revenue Code of 1986, as amended. Reference in the Plan to any section of the

Code shall be deemed to include any amendments or successor provisions to any section and any regulation under such section.

 

2.9 “Committee”

shall mean a committee comprised of two (2) or more members of the Board who are selected by the Board as provided in Section 4.1.

 

2.10 

“Company” shall have the meaning given to such term in the introductory paragraph, including any successor

thereto.

 

2.11 “Consultant”

shall mean any non-Employee (individual or entity) advisor to the Company or an Affiliate who or which has contracted directly

with the Company or an Affiliate to render bona fide consulting or advisory services thereto.

 

2.12 “Director”

shall mean a member of the Board or a member of the board of directors of an Affiliate, in either case, who is not an Employee.

 

2.13 “Distribution

Equivalent Right” shall mean an Award granted under Article XIII of the Plan which entitles the Holder to receive bookkeeping

credits, cash payments and/or Share distributions equal in amount to the distributions that would have been made to the Holder

had the Holder held a specified number of Shares during the period the Holder held the Distribution Equivalent Right.

 

2.14 “Distribution

Equivalent Right Award Agreement” shall mean a written agreement between the Company and a Holder with respect to a Distribution

Equivalent Right Award.

 

2.15 “Effective Date” shall mean [________], 2020.1

 

2.16 “Employee”

shall mean any employee, including any officer, of the Company or an Affiliate.

 

 

 

		1	Date

of IPO

 

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2.17 “Exchange

Act” shall mean the United States of America Securities Exchange Act of 1934, as amended.

 

2.18 “Fair

Market Value” shall mean, as of any specified date, the closing sales price of the Shares for such date (or, in the event

that the Shares are not traded on such date, on the immediately preceding trading date) on the NASDAQ Stock Market (“NASDAQ”),

as reported by NASDAQ, or such other domestic or foreign national securities exchange on which the Shares may be listed. If the

Shares are not listed on NASDAQ or on a national securities exchange, but are quoted on the OTC Bulletin Board or by the National

Quotation Bureau, the Fair Market Value of the Shares shall be the mean of the highest bid and lowest asked prices per Share for

such date. If the Shares are not quoted or listed as set forth above, Fair Market Value shall be determined by the Board in good

faith by any fair and reasonable means (which means may be set forth with greater specificity in the applicable Award Agreement).

The Fair Market Value of property other than Shares shall be determined by the Board in good faith by any fair and reasonable means

consistent with the requirements of applicable law.

 

2.19 “Family

Member” of an individual shall mean any child, stepchild, grandchild, parent, stepparent, 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 Holder’s household (other than a tenant or employee of the Holder), a trust in which such persons

have more than fifty percent (50%) of the beneficial interest, a foundation in which such persons (or the Holder) control the management

of assets, and any other entity in which such persons (or the Holder) own more than fifty percent (50%) of the voting interests.

 

2.20 “Holder”

shall mean an Employee, Director or Consultant who has been granted an Award or any such individual’s beneficiary, estate

or representative, who has acquired such Award in accordance with the terms of the Plan, as applicable.

 

2.21

“Incentive Stock Option” shall mean an Option which is intended by the Committee to constitute an “incentive

stock option” and conforms to the applicable provisions of Section 422 of the Code.

 

2.22 “Incumbent

Director” shall mean, with respect to any period of time specified under the Plan for purposes of determining whether

or not a Change of Control has occurred, the individuals who were members of the Board at the beginning of such period.

 

2.23 “Non-qualified

Stock Option” shall mean an Option which is not an Incentive Stock Option or which is designated as an Incentive Stock

Option but does not meet the applicable requirements of Section 422 of the Code.

 

2.24 “Option”

shall mean an Award granted under Article VII of the Plan of an option to purchase Shares and shall include both Incentive Stock

Options and Non-qualified Stock Options.

 

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2.25 “Option

Agreement” shall mean a written agreement between the Company and a Holder with respect to an Option.

 

2.26 “Performance

Criteria” shall mean the criteria selected by the Committee for purposes of establishing the Performance Goal(s) for

a Holder for a Performance Period.

 

2.27 “Performance

Goals” shall mean, for a Performance Period, the written goal or goals established by the Committee for the Performance

Period based upon the Performance Criteria, which may be related to the performance of the Holder, the Company or an Affiliate.

 

2.28 “Performance

Period” shall mean one or more periods of time, which may be of varying and overlapping durations, selected by the Committee,

over which the attainment of the Performance Goals shall be measured for purposes of determining a Holder’s right to, and

the payment of, a Performance Stock Award or a Performance Unit Award.

 

2.29 “Performance

Stock Award” or “Performance Stock” shall mean an Award granted under Article XII of the Plan under

which, upon the satisfaction of predetermined Performance Goals, Shares are paid to the Holder.

 

2.30 “Performance

Stock Agreement” shall mean a written agreement between the Company and a Holder with respect to a Performance Stock

Award.

 

2.31 “Performance

Unit” shall mean a Unit awarded to a Holder pursuant to a Performance Unit Award.

 

2.32 “Performance

Unit Award” shall mean an Award granted under Article XI of the Plan under which, upon the satisfaction of predetermined

Performance Goals, a cash payment shall be made to the Holder, based on the number of Units awarded to the Holder.

 

2.33 “Performance

Unit Agreement” shall mean a written agreement between the Company and a Holder with respect to a Performance Unit Award.

 

2.34 “Plan”

shall mean this Agrify Corporation 2020 Omnibus Equity Incentive Plan, as amended from time to time, together with each of the

Award Agreements utilized hereunder.

 

2.35 “Restricted

Stock Award” and “Restricted Stock” shall mean an Award granted under Article VIII of the Plan of

Shares, the transferability of which by the Holder is subject to Restrictions.

 

2.36 “Restricted

Stock Agreement” shall mean a written agreement between the Company and a Holder with respect to a Restricted Stock Award.

 

    6

     

    

  

2.37 “Restricted

Stock Unit Award” and “RSUs” shall refer to an Award granted under Article X of the Plan under which,

upon the satisfaction of predetermined individual service-related vesting requirements, a cash payment shall be made to the Holder,

based on the number of Units awarded to the Holder.

 

2.38 “Restricted

Stock Unit Agreement” shall mean a written agreement between the Company and a Holder with respect to a Restricted Stock

Award.

 

2.39

“Restriction Period” shall mean the period of time for which Shares subject to a Restricted Stock Award shall

be subject to Restrictions, as set forth in the applicable Restricted Stock Agreement.

 

2.40 “Restrictions”

shall mean the forfeiture, transfer and/or other restrictions applicable to Shares awarded to an Employee, Director or Consultant

under the Plan pursuant to a Restricted Stock Award and set forth in a Restricted Stock Agreement.

 

2.41 “Rule

16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission under the Exchange Act, as such may

be amended from time to time, and any successor rule, regulation or statute fulfilling the same or a substantially similar function.

 

2.42 “Shares”

or “Stock” shall mean the common stock of the Company, par value $0.001 per share.

 

2.43 “Stock

Appreciation Right” or “SAR” shall mean an Award granted under Article XIV of the Plan of a right,

granted alone or in connection with a related Option, to receive a payment equal to the increase in value of a specified number

of Shares between the date of Award and the date of exercise.

 

2.44 “Stock

Appreciation Right Agreement” shall mean a written agreement between the Company and a Holder with respect to a Stock

Appreciation Right.

 

2.45 “Tandem

Stock Appreciation Right” shall mean a Stock Appreciation Right granted in connection with a related Option, the exercise

of some or all of which results in termination of the entitlement to purchase some or all of the Shares under the related Option,

all as set forth in Article XIV.

 

2.46

“Ten Percent Stockholder” shall mean an Employee who, at the time an Option is granted to him or her, owns shares

possessing more than ten percent (10%) of the total combined voting power of all classes of shares of the Company or of any parent

corporation or subsidiary corporation thereof (both as defined in Section 424 of the Code), within the meaning of Section 422(b)(6)

of the Code.

 

2.47 “Termination

of Service” shall mean a termination of a Holder’s employment with, or status as a Director or Consultant of, the

Company or an Affiliate, as applicable, for any reason, including, without limitation, Total and Permanent Disability or death,

except as provided in Section 6.4. In the event Termination of Service shall constitute a payment event with respect to any Award

subject to Code Section 409A, Termination of Service shall only be deemed to occur upon a “separation from service”

as such term is defined under Code Section 409A and applicable authorities.

 

    7

     

    

  

2.48 “Total

and Permanent Disability” of an individual shall mean the inability of such individual to engage in any substantial gainful

activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which

has lasted or can be expected to last for a continuous period of not less than twelve (12) months, within the meaning of Section

22(e)(3) of the Code.

 

2.49 “Unit”

shall mean a bookkeeping unit, which represents such monetary amount as shall be designated by the Committee in each Performance

Unit Agreement, or represents one Share for purposes of each Restricted Stock Unit Award.

 

2.50 “Unrestricted

Stock Award” shall mean an Award granted under Article IX of the Plan of Shares which are not subject to Restrictions.

 

2.51 “Unrestricted

Stock Agreement” shall mean a written agreement between the Company and a Holder with respect to an Unrestricted Stock

Award.

 

Article

III

EFFECTIVE DATE OF PLAN

 

The Plan shall be effective

as of the Effective Date, provided that the Plan is approved by the stockholders of the Company within twelve (12) months of such

date.

 

Article

IV

ADMINISTRATION

 

4.1 Composition

of Committee. The Plan shall be administered by the Committee, which shall be appointed by the Board. If necessary,

in the Board’s discretion, to comply with Rule 16b-3 under the Exchange Act or relevant securities exchange or inter-dealer

quotation service, the Committee shall consist solely of two (2) or more Directors who are each (i) “non-employee directors”

within the meaning of Rule 16b-3 and (ii) “independent” for purposes of any applicable listing requirements;. If a

member of the Committee shall be eligible to receive an Award under the Plan, such Committee member shall have no authority hereunder

with respect to his or her own Award.

 

4.2 Powers.

Subject to the other provisions of the Plan, the Committee shall have the sole authority, in its discretion, to make all determinations

under the Plan, including but not limited to (i) determining which Employees, Directors or Consultants shall receive an Award,

(ii) the time or times when an Award shall be made (the date of grant of an Award shall be the date on which the Award is awarded

by the Committee), (iii) what type of Award shall be granted, (iv) the term of an Award, (v) the date or dates on which an Award

vests, (vi) the form of any payment to be made pursuant to an Award, (vii) the terms and conditions of an Award (including the

forfeiture of the Award, and/or any financial gain, if the Holder of the Award violates any applicable restrictive covenant thereof),

(viii) the Restrictions under a Restricted Stock Award, (ix) the number of Shares which may be issued under an Award, (x) Performance

Goals applicable to any Award and certification of the achievement of such goals, and (xi) the waiver of any Restrictions or Performance

Goals, subject in all cases to compliance with applicable laws. In making such determinations the Committee may take into account

the nature of the services rendered by the respective Employees, Directors and Consultants, their present and potential contribution

to the Company’s (or the Affiliate’s) success and such other factors as the Committee in its discretion may deem relevant.

 

    8

     

    

 

4.3 Additional

Powers. The Committee shall have such additional powers as are delegated to it under the other provisions of the Plan. Subject

to the express provisions of the Plan, the Committee is authorized to construe the Plan and the respective Award Agreements executed

hereunder, to prescribe such rules and regulations relating to the Plan as it may deem advisable to carry out the intent of the

Plan, to determine the terms, restrictions and provisions of each Award and to make all other determinations necessary or advisable

for administering the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in any

Award Agreement in the manner and to the extent the Committee shall deem necessary, appropriate or expedient to carry it into

effect. The determinations of the Committee on the matters referred to in this Article IV shall be conclusive and binding on the

Company and all Holders.

 

4.4 Committee

Action. Subject to compliance with all applicable laws, action by the Committee shall require the consent of a majority of

the members of the Committee, expressed either orally at a meeting of the Committee or in writing in the absence of a meeting.

No member of the Committee shall have any liability for any good faith action, inaction or determination in connection with the

Plan.

 

Article

V

SHARES SUBJECT TO PLAN AND LIMITATIONS THEREON

 

5.1 Authorized

Shares and Award Limits. The Committee may from time to time grant Awards to one or more Employees, Directors and/or Consultants

determined by it to be eligible for participation in the Plan in accordance with the provisions of Article VI. Subject to Article

XV, the aggregate number of Shares reserved and available for grant and issuance pursuant to this Plan as of the date of adoption

of the Plan by the Board, is [two million five hundred thousand (2,500,000)]2 Shares, plus (a) any reserved Shares

not issued or subject to outstanding awards granted under the Company’s 2019 Stock Plan (the “Prior Plan”)

on the Effective Date (as defined above), (b) Shares that are subject to awards granted under the Prior Plan cease to be subject

to such awards by forfeiture or otherwise after the Effective Date, (c) Shares issued under the Prior Plan before or after the

Effective Date pursuant to the exercise of stock options that are, after the Effective Date, forfeited, (d) Shares issued under

the Prior Plan that are repurchased by the Company at the original issue price, and (e) Shares that are subject to stock options

or other awards under the Prior Plan that are used to pay the exercise price of a stock option or withheld to satisfy tax withholding

obligations related to any Award. Shares shall be deemed to have been issued under the Plan solely to the extent actually issued

and delivered pursuant to an Award. Subject to Article XV, no more than [two million five hundred thousand (2,500,000)] shares

of Common Stock in the aggregate may be issued under this Plan in connection with Incentive Stock Options. To the extent that

an Award lapses, expires, is canceled, is terminated unexercised or ceases to be exercisable for any reason, or the rights of

its Holder terminate, any Shares subject to such Award shall again be available for the grant of a new Award.

 

 

 

		2	Subject

to adjustment based on the contemplated reverse stock split to be effected prior to the IPO.

 

    9

     

    

 

5.2 Types

of Shares. The Shares to be issued pursuant to the grant or exercise of an Award may consist of authorized but unissued Shares,

Shares purchased on the open market or Shares previously issued and outstanding and reacquired by the Company.

 

Article

VI

ELIGIBILITY AND TERMINATION OF SERVICE

 

6.1 Eligibility.

Awards made under the Plan may be granted solely to individuals or entities who, at the time of grant, are Employees, Directors

or Consultants. An Award may be granted on more than one occasion to the same Employee, Director or Consultant, and, subject to

the limitations set forth in the Plan, such Award may include, a Non-qualified Stock Option, a Restricted Stock Award, a Restricted

Stock Unit Award, an Unrestricted Stock Award, a Distribution Equivalent Right Award, a Performance Stock Award, a Performance

Unit Award, a Stock Appreciation Right, a Tandem Stock Appreciation Right, or any combination thereof, and solely for Employees,

an Incentive Stock Option.

 

6.2 Termination

of Service. Except to the extent inconsistent with the terms of the applicable Award Agreement and/or the provisions of Section

6.3 or 6.4, the following terms and conditions shall apply with respect to a Holder’s Termination of Service with the Company

or an Affiliate, as applicable:

 

(a) The

Holder’s rights, if any, to exercise any then exercisable Options and/or Stock Appreciation Rights shall terminate:

 

(i) If

such termination is for a reason other than the Holder’s Total and Permanent Disability or death, ninety (90) days after

the date of such Termination of Service;

 

(ii) If

such termination is on account of the Holder’s Total and Permanent Disability, one (1) year after the date of such Termination

of Service; or

 

(iii) If

such termination is on account of the Holder’s death, one (1) year after the date of the Holder’s death.

 

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Upon such applicable date the Holder (and

such Holder’s estate, designated beneficiary or other legal representative) shall forfeit any rights or interests in or with

respect to any such Options and Stock Appreciation Rights. Notwithstanding the foregoing, the Committee, in its sole discretion,

may provide for a different time period in the Award Agreement, or may extend the time period, following a Termination of Service,

during which the Holder has the right to exercise any vested Non-qualified Stock Option or Stock Appreciation Right, which time

period may not extend beyond the expiration date of the Award term.

 

(b) In

the event of a Holder’s Termination of Service for any reason prior to the actual or deemed satisfaction and/or lapse of

the Restrictions, vesting requirements, terms and conditions applicable to a Restricted Stock Award and/or Restricted Stock Unit

Award, such Restricted Stock and/or RSUs shall immediately be canceled, and the Holder (and such Holder’s estate, designated

beneficiary or other legal representative) shall forfeit any rights or interests in and with respect to any such Restricted Stock

and/or RSUs. Notwithstanding the immediately preceding sentence, the Committee, in its sole discretion, may determine, prior to

or within thirty (30) days after the date of such Termination of Service that all or a portion of any such Holder’s Restricted

Stock and/or RSUs shall not be so canceled and forfeited.

 

6.3 Special

Termination Rule. Except to the extent inconsistent with the terms of the applicable Award Agreement, and notwithstanding

anything to the contrary contained in this Article VI, if a Holder’s employment with, or status as a Director of, the Company

or an Affiliate shall terminate, and if, within ninety (90) days of such termination, such Holder shall become a Consultant, such

Holder’s rights with respect to any Award or portion thereof granted thereto prior to the date of such termination may be

preserved, if and to the extent determined by the Committee in its sole discretion, as if such Holder had been a Consultant for

the entire period during which such Award or portion thereof had been outstanding. Should the Committee effect such determination

with respect to such Holder, for all purposes of the Plan, such Holder shall not be treated as if his or her employment or Director

status had terminated until such time as his or her Consultant status shall terminate, in which case his or her Award, as it may

have been reduced in connection with the Holder’s becoming a Consultant, shall be treated pursuant to the provisions of

Section 6.2, provided, however, that any such Award which is intended to be an Incentive Stock Option shall, upon the Holder’s

no longer being an Employee, automatically convert to a Non-qualified Stock Option. Should a Holder’s status as a Consultant

terminate, and if, within ninety (90) days of such termination, such Holder shall become an Employee or a Director, such Holder’s

rights with respect to any Award or portion thereof granted thereto prior to the date of such termination may be preserved, if

and to the extent determined by the Committee in its sole discretion, as if such Holder had been an Employee or a Director, as

applicable, for the entire period during which such Award or portion thereof had been outstanding, and, should the Committee effect

such determination with respect to such Holder, for all purposes of the Plan, such Holder shall not be treated as if his or her

Consultant status had terminated until such time as his or her employment with the Company or an Affiliate, or his or her Director

status, as applicable, shall terminate, in which case his or her Award shall be treated pursuant to the provisions of Section

6.2.

 

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6.4 Termination

of Service for Cause. Notwithstanding anything in this Article VI or elsewhere in the Plan to the contrary, and unless a Holder’s

Award Agreement specifically provides otherwise, in the event of a Holder’s Termination of Service for Cause, all of such

Holder’s then outstanding Awards shall expire immediately and be forfeited in their entirety upon such Termination of Service.

 

Article

VII

OPTIONS

 

7.1 Option

Period. The term of each Option shall be as specified in the Option Agreement; provided, however, that except

as set forth in Section 7.3, no Option shall be exercisable after the expiration of ten (10) years from the date of its grant.

 

7.2 Limitations

on Exercise of Option. An Option shall be exercisable in whole or in such installments and at such times as specified in the

Option Agreement.

 

7.3 Special

Limitations on Incentive Stock Options. To the extent that the aggregate Fair Market Value (determined at the time the respective

Incentive Stock Option is granted) of Shares with respect to which Incentive Stock Options are exercisable for the first time by

an individual during any calendar year under all plans of the Company and any parent corporation or subsidiary corporation thereof

(both as defined in Section 424 of the Code) which provide for the grant of Incentive Stock Options exceeds One Hundred Thousand

Dollars ($100,000) (or such other individual limit as may be in effect under the Code on the date of grant), the portion of such

Incentive Stock Options that exceeds such threshold shall be treated as Non-qualified Stock Options. The Committee shall determine,

in accordance with applicable provisions of the Code, Treasury Regulations and other administrative pronouncements, which of a

Holder’s Options, which were intended by the Committee to be Incentive Stock Options when granted to the Holder, will not

constitute Incentive Stock Options because of such limitation, and shall notify the Holder of such determination as soon as practicable

after such determination. No Incentive Stock Option shall be granted to an Employee if, at the time the Incentive Stock Option

is granted, such Employee is a Ten Percent Stockholder, unless (i) at the time such Incentive Stock Option is granted the Option

price is at least one hundred ten percent (110%) of the Fair Market Value of the Shares subject to the Incentive Stock Option,

and (ii) such Incentive Stock Option by its terms is not exercisable after the expiration of five (5) years from the date of grant.

No Incentive Stock Option shall be granted more than ten (10) years from the earlier of the Effective Date or date on which the

Plan is approved by the Company’s stockholders. The designation by the Committee of an Option as an Incentive Stock Option

shall not guarantee the Holder that the Option will satisfy the applicable requirements for “incentive stock option”

status under Section 422 of the Code.

 

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7.4 Option

Agreement. Each Option shall be evidenced by an Option Agreement in such form and containing such provisions not inconsistent

with the other provisions of the Plan as the Committee from time to time shall approve, including, but not limited to, provisions

intended to qualify an Option as an Incentive Stock Option. An Option Agreement may provide for the payment of the Option price,

in whole or in part, by the delivery of a number of Shares (plus cash if necessary) that have been owned by the Holder for at least

six (6) months and having a Fair Market Value equal to such Option price, or such other forms or methods as the Committee may determine

from time to time, in each case, subject to such rules and regulations as may be adopted by the Committee. Each Option Agreement

shall, solely to the extent inconsistent with the provisions of Sections 6.2, 6.3, and 6.4, as applicable, specify the effect of

Termination of Service on the exercisability of the Option. Moreover, without limiting the generality of the foregoing, a Non-qualified

Stock Option Agreement may provide for a “cashless exercise” of the Option, in whole or in part, by (a) establishing

procedures whereby the Holder, by a properly-executed written notice, directs (i) an immediate market sale or margin loan as to

all or a part of Shares to which he is entitled to receive upon exercise of the Option, pursuant to an extension of credit by the

Company to the Holder of the Option price, (ii) the delivery of the Shares from the Company directly to a brokerage firm and (iii)

the delivery of the Option price from sale or margin loan proceeds from the brokerage firm directly to the Company, or (b) reducing

the number of Shares to be issued upon exercise of the Option by the number of such Shares having an aggregate Fair Market Value

equal to the Option price (or portion thereof to be so paid) as of the date of the Option’s exercise. An Option Agreement

may also include provisions relating to: (i) subject to the provisions hereof, accelerated vesting of Options, including but not

limited to, upon the occurrence of a Change of Control, (ii) tax matters (including provisions covering any applicable Employee

wage withholding requirements and requiring additional “gross-up” payments to Holders to meet any excise taxes or other

additional income tax liability imposed as a result of a payment made upon a Change of Control resulting from the operation of

the Plan or of such Option Agreement) and (iii) any other matters not inconsistent with the terms and provisions of the Plan that

the Committee shall in its sole discretion determine. The terms and conditions of the respective Option Agreements need not be

identical.

 

7.5 Option

Price and Payment. The price at which an Share may be purchased upon exercise of an Option shall be determined by the Committee;

provided, however, that such Option price (i) shall not be less than the Fair Market Value of an Share on the date

such Option is granted (or 110% of Fair Market Value for an Incentive Stock Option held by Ten Percent Stockholder, as provided

in Section 7.3), and (ii) shall be subject to adjustment as provided in Article XV. The Option or portion thereof may be exercised

by delivery of an irrevocable notice of exercise to the Company. The Option price for the Option or portion thereof shall be paid

in full in the manner prescribed by the Committee as set forth in the Plan and the applicable Option Agreement, which manner,

with the consent of the Committee, may include the withholding of Shares otherwise issuable in connection with the exercise of

the Option. Separate share certificates shall be issued by the Company for those Shares acquired pursuant to the exercise of an

Incentive Stock Option and for those Shares acquired pursuant to the exercise of a Non-qualified Stock Option.

 

7.6 Stockholder

Rights and Privileges. The Holder of an Option shall be entitled to all the privileges and rights of a stockholder of the

Company solely with respect to such Shares as have been purchased under the Option and for which share certificates have been

registered in the Holder’s name.

 

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7.7 Options

and Rights in Substitution for Stock or Options Granted by Other Corporations. Options may be granted under the Plan from

time to time in substitution for stock options held by individuals employed by entities who become Employees, Directors or Consultants

as a result of a merger or consolidation of the employing entity with the Company or any Affiliate, or the acquisition by the

Company or an Affiliate of the assets of the employing entity, or the acquisition by the Company or an Affiliate of stock or shares

of the employing entity with the result that such employing entity becomes an Affiliate.

 

7.8 Prohibition

Against Re-Pricing. Except to the extent (i) approved in advance by holders of a majority of the shares of the Company entitled

to vote generally in the election of directors, or (ii) as a result of any Change of Control or any adjustment as provided in

Article XV, the Committee shall not have the power or authority to reduce, whether through amendment or otherwise, the exercise

price under any outstanding Option or Stock Appreciation Right, or to grant any new Award or make any payment of cash in substitution

for or upon the cancellation of Options and/or Stock Appreciation Rights previously granted.

 

Article

VIII

RESTRICTED STOCK AWARDS

 

8.1 Award.

A Restricted Stock Award shall constitute an Award of Shares to the Holder as of the date of the Award which are subject to a

“substantial risk of forfeiture” as defined under Section 83 of the Code during the specified Restriction Period.

At the time a Restricted Stock Award is made, the Committee shall establish the Restriction Period applicable to such Award. Each

Restricted Stock Award may have a different Restriction Period, in the discretion of the Committee. The Restriction Period applicable

to a particular Restricted Stock Award shall not be changed except as permitted by Section 8.2.

 

8.2 Terms

and Conditions. At the time any Award is made under this Article VIII, the Company and the Holder shall enter into a Restricted

Stock Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee may determine to

be appropriate. The Company shall cause the Shares to be issued in the name of Holder, either by book-entry registration or issuance

of one or more stock certificates evidencing the Shares, which Shares or certificates shall be held by the Company or the stock

transfer agent or brokerage service selected by the Company to provide services for the Plan. The Shares shall be restricted from

transfer and shall be subject to an appropriate stop-transfer order, and if any certificate is issued, such certificate shall

bear an appropriate legend referring to the restrictions applicable to the Shares. After any Shares vest, the Company shall deliver

the vested Shares, in book-entry or certificated form in the Company’s sole discretion, registered in the name of Holder

or his or her legal representatives, beneficiaries or heirs, as the case may be, less any Shares withheld to pay withholding taxes.

If provided for under the Restricted Stock Agreement, the Holder shall have the right to vote Shares subject thereto and to enjoy

all other stockholder rights, including the entitlement to receive dividends on the Shares during the Restriction Period. At the

time of such Award, the Committee may, in its sole discretion, prescribe additional terms and conditions or restrictions relating

to Restricted Stock Awards, including, but not limited to, rules pertaining to the effect of Termination of Service prior to expiration

of the Restriction Period. Such additional terms, conditions or restrictions shall, to the extent inconsistent with the provisions

of Sections 6.2, 6.3 and 6.4, as applicable, be set forth in a Restricted Stock Agreement made in conjunction with the Award.

Such Restricted Stock Agreement may also include provisions relating to: (i) subject to the provisions hereof, accelerated vesting

of Awards, including but not limited to accelerated vesting upon the occurrence of a Change of Control, (ii) tax matters (including

provisions covering any applicable Employee wage withholding requirements and requiring additional “gross-up” payments

to Holders to meet any excise taxes or other additional income tax liability imposed as a result of a payment made in connection

with a Change of Control resulting from the operation of the Plan or of such Restricted Stock Agreement) and (iii) any other matters

not inconsistent with the terms and provisions of the Plan that the Committee shall in its sole discretion determine. The terms

and conditions of the respective Restricted Stock Agreements need not be identical. All Shares delivered to a Holder as part of

a Restricted Stock Award shall be delivered and reported by the Company or the Affiliate, as applicable, to the Holder at the

time of vesting.

 

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8.3 Payment

for Restricted Stock. The Committee shall determine the amount and form of any payment from a Holder for Shares received pursuant

to a Restricted Stock Award, if any, provided that in the absence of such a determination, a Holder shall not be required to make

any payment for Shares received pursuant to a Restricted Stock Award, except to the extent otherwise required by law.

 

Article

IX

UNRESTRICTED STOCK AWARDS

 

9.1 Award.

Shares may be awarded (or sold) to Employees, Directors or Consultants under the Plan which are not subject to Restrictions of

any kind, in consideration for past services rendered thereby to the Company or an Affiliate or for other valid consideration.

 

9.2 Terms

and Conditions. At the time any Award is made under this Article IX, the Company and the Holder shall enter into an

Unrestricted Stock Agreement setting forth each of the matters contemplated hereby and such other matters as the Committee

may determine to be appropriate.

 

9.3 Payment

for Unrestricted Stock. The Committee shall determine the amount and form of any payment from a Holder for Shares received

pursuant to an Unrestricted Stock Award, if any, provided that in the absence of such a determination, a Holder shall not be required

to make any payment for Shares received pursuant to an Unrestricted Stock Award, except to the extent otherwise required by law.

 

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Article

X

RESTRICTED STOCK UNIT AWARDS

 

10.1 Award.

A Restricted Stock Unit Award shall constitute a promise to grant Shares (or cash equal to the Fair Market Value of Shares) to

the Holder at the end of a specified Restriction Period. At the time a Restricted Stock Unit Award is made, the Committee shall

establish the Restriction Period applicable to such Award. Each Restricted Stock Unit Award may have a different Restriction Period,

in the discretion of the Committee. A Restricted Stock Unit shall not constitute an equity interest in the Company and shall not

entitle the Holder to voting rights, dividends or any other rights associated with ownership of Shares prior to the time the Holder

shall receive a distribution of Shares pursuant to Section 10.3.

 

10.2 Terms

and Conditions. At the time any Award is made under this Article X, the Company and the Holder shall enter into a Restricted

Stock Unit Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee may determine

to be appropriate. The Restricted Stock Unit Agreement shall set forth the individual service-based vesting requirement which

the Holder would be required to satisfy before the Holder would become entitled to distribution pursuant to Section 10.3 and the

number of Units awarded to the Holder. Such conditions shall be sufficient to constitute a “substantial risk of forfeiture”

as such term is defined under Section 409A of the Code. At the time of such Award, the Committee may, in its sole discretion,

prescribe additional terms and conditions or restrictions relating to Restricted Stock Unit Awards in the Restricted Stock Unit

Agreement, including, but not limited to, rules pertaining to the effect of Termination of Service prior to expiration of the

applicable vesting period. The terms and conditions of the respective Restricted Stock Unit Agreements need not be identical.

 

10.3 Distributions

of Shares. The Holder of a Restricted Stock Unit shall be entitled to receive a cash payment equal to the Fair Market Value

of a Share, or one Share, as determined in the sole discretion of the Committee and as set forth in the Restricted Stock Unit

Agreement, for each Restricted Stock Unit subject to such Restricted Stock Unit Award, if the Holder satisfies the applicable

vesting requirement. Such distribution shall be made no later than by the fifteenth (15th) day of the third (3rd)

calendar month next following the end of the calendar year in which the Restricted Stock Unit first becomes vested (i.e., no longer

subject to a “substantial risk of forfeiture”).

 

Article

XI

PERFORMANCE UNIT AWARDS

 

11.1 Award.

A Performance Unit Award shall constitute an Award under which, upon the satisfaction of predetermined individual and/or Company

(and/or Affiliate) Performance Goals based on selected Performance Criteria, a cash payment shall be made to the Holder, based

on the number of Units awarded to the Holder. At the time a Performance Unit Award is made, the Committee shall establish the

Performance Period and applicable Performance Goals. Each Performance Unit Award may have different Performance Goals, in the

discretion of the Committee. A Performance Unit Award shall not constitute an equity interest in the Company and shall not entitle

the Holder to voting rights, dividends or any other rights associated with ownership of Shares.

 

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11.2 Terms

and Conditions. At the time any Award is made under this Article XI, the Company and the Holder shall enter into a Performance

Unit Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee may determine to

be appropriate. The Committee shall set forth in the applicable Performance Unit Agreement the Performance Period, Performance

Criteria and Performance Goals which the Holder and/or the Company would be required to satisfy before the Holder would become

entitled to payment pursuant to Section 11.3, the number of Units awarded to the Holder and the dollar value or formula assigned

to each such Unit. Such payment shall be subject to a “substantial risk of forfeiture” under Section 409A of the Code.

At the time of such Award, the Committee may, in its sole discretion, prescribe additional terms and conditions or restrictions

relating to Performance Unit Awards, including, but not limited to, rules pertaining to the effect of Termination of Service prior

to expiration of the applicable performance period. The terms and conditions of the respective Performance Unit Agreements need

not be identical.

 

11.3 Payments.

The Holder of a Performance Unit shall be entitled to receive a cash payment equal to the dollar value assigned to such Unit under

the applicable Performance Unit Agreement if the Holder and/or the Company satisfy (or partially satisfy, if applicable under

the applicable Performance Unit Agreement) the Performance Goals set forth in such Performance Unit Agreement. All payments shall

be made no later than by the fifteenth (15th) day of the third (3rd) calendar month next following the end

of the Company’s fiscal year to which such performance goals and objectives relate.

 

Article

XII

PERFORMANCE STOCK AWARDS

 

12.1 Award.

A Performance Stock Award shall constitute a promise to grant Shares (or cash equal to the Fair Market Value of Shares) to the

Holder at the end of a specified Performance Period subject to achievement of specified Performance Goals. At the time a Performance

Stock Award is made, the Committee shall establish the Performance Period and applicable Performance Goals based on selected Performance

Criteria. Each Performance Stock Award may have different Performance Goals, in the discretion of the Committee. A Performance

Stock Award shall not constitute an equity interest in the Company and shall not entitle the Holder to voting rights, dividends

or any other rights associated with ownership of Shares unless and until the Holder shall receive a distribution of Shares pursuant

to Section 11.3.

 

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12.2 Terms

and Conditions. At the time any Award is made under this Article XII, the Company and the Holder shall enter into a Performance

Stock Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee may determine to

be appropriate. The Committee shall set forth in the applicable Performance Stock Agreement the Performance Period, selected Performance

Criteria and Performance Goals which the Holder and/or the Company would be required to satisfy before the Holder would become

entitled to the receipt of Shares pursuant to such Holder’s Performance Stock Award and the number of Shares subject to

such Performance Stock Award. Such distribution shall be subject to a “substantial risk of forfeiture” under Section

409A of the Code. If such Performance Goals are achieved, the distribution of Shares (or the payment of cash, as determined in

the sole discretion of the Committee), shall be made no later than by the fifteenth (15th) day of the third (3rd)

calendar month next following the end of the Company’s fiscal year to which such goals and objectives relate. At the time

of such Award, the Committee may, in its sole discretion, prescribe additional terms and conditions or restrictions relating to

Performance Stock Awards, including, but not limited to, rules pertaining to the effect of the Holder’s Termination of Service

prior to the expiration of the applicable performance period. The terms and conditions of the respective Performance Stock Agreements

need not be identical.

 

12.3 Distributions

of Shares. The Holder of a Performance Stock Award shall be entitled to receive a cash payment equal to the Fair Market Value

of a Share, or one Share, as determined in the sole discretion of the Committee, for each Performance Stock Award subject to such

Performance Stock Agreement, if the Holder satisfies the applicable vesting requirement. Such distribution shall be made no later

than by the fifteenth (15th) day of the third (3rd) calendar month next following the end of the Company’s

fiscal year to which such performance goals and objectives relate.

 

Article

XIII

DISTRIBUTION EQUIVALENT RIGHTS

 

13.1 Award.

A Distribution Equivalent Right shall entitle the Holder to receive bookkeeping credits, cash payments and/or Share distributions

equal in amount to the distributions that would have been made to the Holder had the Holder held a specified number of Shares

during the specified period of the Award.

 

13.2 Terms

and Conditions. At the time any Award is made under this Article XIII, the Company and the Holder shall enter into a Distribution

Equivalent Rights Award Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee

may determine to be appropriate. The Committee shall set forth in the applicable Distribution Equivalent Rights Award Agreement

the terms and conditions, if any, including whether the Holder is to receive credits currently in cash, is to have such credits

reinvested (at Fair Market Value determined as of the date of reinvestment) in additional Shares or is to be entitled to choose

among such alternatives. Such receipt shall be subject to a “substantial risk of forfeiture” under Section 409A of

the Code and, if such Award becomes vested, the distribution of such cash or Shares shall be made no later than by the fifteenth

(15th) day of the third (3rd) calendar month next following the end of the Company’s fiscal year in

which the Holder’s interest in the Award vests. Distribution Equivalent Rights Awards may be settled in cash or in Shares,

as set forth in the applicable Distribution Equivalent Rights Award Agreement. A Distribution Equivalent Rights Award may, but

need not be, awarded in tandem with another Award (other than an Option or a SAR), whereby, if so awarded, such Distribution Equivalent

Rights Award shall expire, terminate or be forfeited by the Holder, as applicable, under the same conditions as under such other

Award.

 

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13.3 Interest

Equivalents. The Distribution Equivalent Rights Award Agreement for a Distribution Equivalent Rights Award may provide for

the crediting of interest on a Distribution Rights Award to be settled in cash at a future date (but in no event later than by

the fifteenth (15th) day of the third (3rd) calendar month next following the end of the Company’s

fiscal year in which such interest is credited and vested), at a rate set forth in the applicable Distribution Equivalent Rights

Award Agreement, on the amount of cash payable thereunder.

 

Article

XIV

STOCK APPRECIATION RIGHTS

 

14.1 Award.

A Stock Appreciation Right shall constitute a right, granted alone or in connection with a related Option, to receive a payment

equal to the increase in value of a specified number of Shares between the date of Award and the date of exercise.

 

14.2 Terms

and Conditions. At the time any Award is made under this Article XIV, the Company and the Holder shall enter into a Stock

Appreciation Right Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee may

determine to be appropriate. The Committee shall set forth in the applicable Stock Appreciation Right Agreement the terms and

conditions of the Stock Appreciation Right, including (i) the base value (the “Base Value”) for the Stock Appreciation

Right, which shall be not less than the Fair Market Value of an Share on the date of grant of the Stock Appreciation Right, (ii)

the number of Shares subject to the Stock Appreciation Right, (iii) the period during which the Stock Appreciation Right may be

exercised; provided, however, that no Stock Appreciation Right shall be exercisable after the expiration of ten

(10) years from the date of its grant, and (iv) any other special rules and/or requirements which the Committee imposes upon the

Stock Appreciation Right. Upon the exercise of some or all of the portion of a Stock Appreciation Right, the Holder shall receive

a payment from the Company, in cash or in the form of Shares having an equivalent Fair Market Value or in a combination of both,

as determined in the sole discretion of the Committee, equal to the product of:

 

(a) The

excess of (i) the Fair Market Value of an Share on the date of exercise, over (ii) the Base Value, multiplied by,

 

(b) The

number of Shares with respect to which the Stock Appreciation Right is exercised.

 

14.3 Tandem

Stock Appreciation Rights. If the Committee grants a Stock Appreciation Right which is intended to be a Tandem Stock Appreciation

Right, the Tandem Stock Appreciation Right shall be granted at the same time as the related Option, and the following special

rules shall apply:

 

(a) The

Base Value shall be equal to or greater than the per Share exercise price under the related Option;

 

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(b) The

Tandem Stock Appreciation Right may be exercised for all or part of the Shares which are subject to the related Option, but solely

upon the surrender by the Holder of the Holder’s right to exercise the equivalent portion of the related Option (and when

a Share is purchased under the related Option, an equivalent portion of the related Tandem Stock Appreciation Right shall be canceled);

 

(c) The

Tandem Stock Appreciation Right shall expire no later than the date of the expiration of the related Option;

 

(d) The

value of the payment with respect to the Tandem Stock Appreciation Right may be no more than one hundred percent (100%) of the

difference between the per Share exercise price under the related Option and the Fair Market Value of the Shares subject to the

related Option at the time the Tandem Stock Appreciation Right is exercised, multiplied by the number of the Shares with respect

to which the Tandem Stock Appreciation Right is exercised; and

 

(e) The

Tandem Stock Appreciation Right may be exercised solely when the Fair Market Value of the Shares subject to the related Option

exceeds the per Share exercise price under the related Option.

 

Article

XV

RECAPITALIZATION OR REORGANIZATION

 

15.1 Adjustments

to Shares. The shares with respect to which Awards may be granted under the Plan are Shares as presently constituted; provided,

however, that if, and whenever, prior to the expiration or distribution to the Holder of Shares underlying an Award theretofore

granted, the Company shall effect a subdivision or consolidation of the Shares or the payment of an Share dividend on Shares without

receipt of consideration by the Company, the number of Shares with respect to which such Award may thereafter be exercised or

satisfied, as applicable, (i) in the event of an increase in the number of outstanding Shares, shall be proportionately increased,

and the purchase price per Share shall be proportionately reduced, and (ii) in the event of a reduction in the number of outstanding

Shares, shall be proportionately reduced, and the purchase price per Share shall be proportionately increased. Notwithstanding

the foregoing or any other provision of this Article XV, any adjustment made with respect to an Award (x) which is an Incentive

Stock Option, shall comply with the requirements of Section 424(a) of the Code, and in no event shall any adjustment be made which

would render any Incentive Stock Option granted under the Plan to be other than an “incentive stock option” for purposes

of Section 422 of the Code, and (y) which is a Non-qualified Stock Option, shall comply with the requirements of Section 409A

of the Code, and in no event shall any adjustment be made which would render any Non-qualified Stock Option granted under the

Plan to become subject to Section 409A of the Code.

 

15.2 Recapitalization.

If the Company recapitalizes or otherwise changes its capital structure, thereafter upon any exercise or satisfaction, as applicable,

of a previously granted Award, the Holder shall be entitled to receive (or entitled to purchase, if applicable) under such Award,

in lieu of the number of Shares then covered by such Award, the number and class of shares and securities to which the Holder

would have been entitled pursuant to the terms of the recapitalization if, immediately prior to such recapitalization, the Holder

had been the holder of record of the number of Shares then covered by such Award.

 

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15.3 Other

Events. In the event of changes to the outstanding Shares by reason of an extraordinary cash dividend, reorganization, merger,

consolidation, combination, split-up, spin-off, exchange or other relevant change in capitalization occurring after the date of

the grant of any Award and not otherwise provided for under this Article XV, any outstanding Awards and any Award Agreements evidencing

such Awards shall be adjusted by the Board in its discretion in such manner as the Board shall deem equitable or appropriate taking

into consideration the applicable accounting and tax consequences, as to the number and price of Shares or other consideration

subject to such Awards. In the event of any adjustment pursuant to Sections 15.1, 15.2 or this Section 15.3, the aggregate number

of Shares available under the Plan pursuant to Section 5.1 may be appropriately adjusted by the Board, the determination of which

shall be conclusive. In addition, the Committee may make provision for a cash payment to a Holder or a person who has an outstanding

Award. In addition, the Committee may make provision for a cash payment to a Holder or a person who has an outstanding Award.

 

15.5 Change

of Control. The Committee may, in its sole discretion, at the time an Award is made or at any time prior to, coincident with

or after the time of a Change of Control, cause any Award either (i) to be canceled in consideration of a payment in cash or other

consideration in amount per share equal to the excess, if any, of the price or implied price per Share in the Change of Control

over the per Share exercise, base or purchase price of such Award, which may be paid immediately or over the vesting schedule of

the Award; (ii) to be assumed, or new rights substituted therefore, by the surviving corporation or a parent or subsidiary of such

surviving corporation following such Change of Control; (iii) accelerate any time periods, or waive any other conditions, relating

to the vesting, exercise, payment or distribution of an Award so that any Award to a Holder whose employment has been terminated

as a result of a Change of Control may be vested, exercised, paid or distributed in full on or before a date fixed by the Committee;

(iv) to be purchased from a Holder whose employment has been terminated as a result of a Change of Control, upon the Holder’s

request, for an amount of cash equal to the amount that could have been obtained upon the exercise, payment or distribution of

such rights had such Award been currently exercisable or payable; or (v) terminate any then outstanding Award or make any other

adjustment to the Awards then outstanding as the Committee deems necessary or appropriate to reflect such transaction or change.

The number of Shares subject to any Award shall be rounded to the nearest whole number.

 

15.6 Powers

Not Affected. The existence of the Plan and the Awards granted hereunder shall not affect in any way the right or power of

the Board or of the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other

change of the Company’s capital structure or business, any merger or consolidation of the Company, any issue of debt or

equity securities ahead of or affecting Shares or the rights thereof, the dissolution or liquidation of the Company or any sale,

lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding.

 

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15.7 No

Adjustment for Certain Awards. Except as hereinabove expressly provided, the issuance by the Company of shares of any class

or securities convertible into shares of any class, for cash, property, labor or services, upon direct sale, upon the exercise

of rights or warrants to subscribe therefor or upon conversion of shares or obligations of the Company convertible into such shares

or other securities, and in any case whether or not for fair value, shall not affect previously granted Awards, and no adjustment

by reason thereof shall be made with respect to the number of Shares subject to Awards theretofore granted or the purchase price

per Share, if applicable.

 

Article

XVI

AMENDMENT AND TERMINATION OF PLAN

 

The Plan shall continue

in effect, unless sooner terminated pursuant to this Article XVI, until the tenth (10th) anniversary of the date on

which it is adopted by the Board (except as to Awards outstanding on that date). The Board in its discretion may terminate the

Plan at any time with respect to any shares for which Awards have not theretofore been granted; provided, however,

that the Plan’s termination shall not materially and adversely impair the rights of a Holder with respect to any Award theretofore

granted without the consent of the Holder. The Board shall have the right to alter or amend the Plan or any part hereof from time

to time; provided, however, that without the approval by a majority of the votes cast at a meeting of stockholders

at which a quorum representing a majority of the shares of the Company entitled to vote generally in the election of directors

is present in person or by proxy, no amendment or modification of the Plan may (i) materially increase the benefits accruing to

Holders, (ii) except as otherwise expressly provided in Article XV, materially increase the number of Shares subject to the Plan

or the individual Award Agreements specified in Article V, (iii) materially modify the requirements for participation in the Plan,

or (iv) amend, modify or suspend Section 7.7 (re-pricing prohibitions) or this Article XVI. In addition, no change in any Award

theretofore granted may be made which would materially and adversely impair the rights of a Holder with respect to such Award without

the consent of the Holder (unless such change is required in order to exempt the Plan or any Award from Section 409A of the Code).

 

Article

XVII

MISCELLANEOUS

 

17.1 No

Right to Award. Neither the adoption of the Plan by the Company nor any action of the Board or the Committee shall be deemed

to give an Employee, Director or Consultant any right to an Award except as may be evidenced by an Award Agreement duly executed

on behalf of the Company, and then solely to the extent and on the terms and conditions expressly set forth therein.

 

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17.2 No

Rights Conferred. Nothing contained in the Plan shall (i) confer upon any Employee any right with respect to continuation

of employment with the Company or any Affiliate, (ii) interfere in any way with any right of the Company or any Affiliate to terminate

the employment of an Employee at any time, (iii) confer upon any Director any right with respect to continuation of such Director’s

membership on the Board, (iv) interfere in any way with any right of the Company or an Affiliate to terminate a Director’s

membership on the Board at any time, (v) confer upon any Consultant any right with respect to continuation of his or her consulting

engagement with the Company or any Affiliate, or (vi) interfere in any way with any right of the Company or an Affiliate to terminate

a Consultant’s consulting engagement with the Company or an Affiliate at any time.

 

17.3 Other

Laws; No Fractional Shares; Withholding. The Company shall not be obligated by virtue of any provision of the Plan to recognize

the exercise of any Award or to otherwise sell or issue Shares in violation of any laws, rules or regulations, and any postponement

of the exercise or settlement of any Award under this provision shall not extend the term of such Award. Neither the Company nor

its directors or officers shall have any obligation or liability to a Holder with respect to any Award (or Shares issuable thereunder)

(i) that shall lapse because of such postponement, or (ii) for any failure to comply with the requirements of any applicable law,

rules or regulations, including but not limited to any failure to comply with the requirements of Section 409A of this Code. No

fractional Shares shall be delivered, nor shall any cash in lieu of fractional Shares be paid. The Company shall have the right

to deduct in cash (whether under this Plan or otherwise) in connection with all Awards any taxes required by law to be withheld

and to require any payments required to enable it to satisfy its withholding obligations. In the case of any Award satisfied in

the form of Shares, no Shares shall be issued unless and until arrangements satisfactory to the Company shall have been made to

satisfy any tax withholding obligations applicable with respect to such Award. Subject to such terms and conditions as the Committee

may impose, the Company shall have the right to retain, or the Committee may, subject to such terms and conditions as it may establish

from time to time, permit Holders to elect to tender, Shares (including Shares issuable in respect of an Award) to satisfy, in

whole or in part, the amount required to be withheld.

 

17.4 No

Restriction on Corporate Action. Nothing contained in the Plan shall be construed to prevent the Company or any Affiliate

from taking any corporate action which is deemed by the Company or such Affiliate to be appropriate or in its best interest, whether

or not such action would have an adverse effect on the Plan or any Award made under the Plan. No Employee, Director, Consultant,

beneficiary or other person shall have any claim against the Company or any Affiliate as a result of any such action.

 

17.5 Restrictions

on Transfer. No Award under the Plan or any Award Agreement and no rights or interests herein or therein, shall or may be

assigned, transferred, sold, exchanged, encumbered, pledged or otherwise hypothecated or disposed of by a Holder except (i) by

will or by the laws of descent and distribution, or (ii) where permitted under applicable tax rules, by gift to any Family Member

of the Holder, subject to compliance with applicable laws. An Award may be exercisable during the lifetime of the Holder only

by such Holder or by the Holder’s guardian or legal representative unless it has been transferred by gift to a Family Member

of the Holder, in which case it shall be exercisable solely by such transferee. Notwithstanding any such transfer, the Holder

shall continue to be subject to the withholding requirements provided for under Section 17.3 hereof.

 

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17.6 Beneficiary

Designations. Each Holder may, from time to time, name a beneficiary or beneficiaries (who may be contingent or successive

beneficiaries) for purposes of receiving any amount which is payable in connection with an Award under the Plan upon or subsequent

to the Holder’s death. Each such beneficiary designation shall serve to revoke all prior beneficiary designations, be in

a form prescribed by the Company and be effective solely when filed by the Holder in writing with the Company during the Holder’s

lifetime. In the absence of any such written beneficiary designation, for purposes of the Plan, a Holder’s beneficiary shall

be the Holder’s estate.

 

17.7 Rule

16b-3. It is intended that the Plan and any Award made to a person subject to Section 16 of the Exchange Act shall meet all

of the requirements of Rule 16b-3. If any provision of the Plan or of any such Award would disqualify the Plan or such Award under,

or would otherwise not comply with the requirements of, Rule 16b-3, such provision or Award shall be construed or deemed to have

been amended as necessary to conform to the requirements of Rule 16b-3.

 

17.8 Clawback

Policy. Notwithstanding any contained herein or in any incentive “performance based” Awards under the Plan shall

be subject to reduction, forfeiture or repayment by reason of a correction or restatement of the Company’s financial information

if and to the extent such reduction or repayment is required by any applicable law.

 

17.9 Section

409A. Notwithstanding any other provision of the Plan, the Committee shall have no authority to issue an Award under the Plan

with terms and/or conditions which would cause such Award to constitute non-qualified “deferred compensation” under

Section 409A of the Code unless such Award shall be structured to be exempt from or comply with all requirements of Code Section

409A. The Plan and all Award Agreements are intended to comply with the requirements of Section 409A of the Code (or to be exempt

therefrom) and shall be so interpreted and construed and no amount shall be paid or distributed from the Plan unless and until

such payment complies with all requirements of Code Section 409A. It is the intent of the Company that the provisions of this

Agreement and all other plans and programs sponsored by the Company be interpreted to comply in all respects with Code Section

409A, however, the Company shall have no liability to the Holder, or any successor or beneficiary thereof, in the event taxes,

penalties or excise taxes may ultimately be determined to be applicable to any payment or benefit received by the Holder or any

successor or beneficiary thereof.

 

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17.10 Indemnification.

Each person who is or shall have been a member of the Committee or of the Board shall be indemnified and held harmless by the

Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred thereby in connection

with or resulting from any claim, action, suit, or proceeding to which such person may be made a party or may be involved by reason

of any action taken or failure to act under the Plan and against and from any and all amounts paid thereby in settlement thereof,

with the Company’s approval, or paid thereby in satisfaction of any judgment in any such action, suit, or proceeding against

such person; provided, however, that such person shall give the Company an opportunity, at its own expense, to handle

and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification

shall not be exclusive and shall be independent of any other rights of indemnification to which such persons may be entitled under

the Company’s Articles of Incorporation or By-laws, by contract, as a matter of law, or otherwise.

 

17.11 Other

Benefit Plans. No Award, payment or amount received hereunder shall be taken into account in computing an Employee’s

salary or compensation for the purposes of determining any benefits under any pension, retirement, life insurance or other benefit

plan of the Company or any Affiliate, unless such other plan specifically provides for the inclusion of such Award, payment or

amount received. Nothing in the Plan shall be construed to limit the right of the Company to establish other plans or to pay compensation

to its employees, in cash or property, in a manner which is not expressly authorized under the Plan.

 

17.12 Limits

of Liability. Any liability of the Company with respect to an Award shall be based solely upon the contractual obligations

created under the Plan and the Award Agreement. None of the Company, any member of the Board nor any member of the Committee shall

have any liability to any party for any action taken or not taken, in good faith, in connection with or under the Plan.

 

17.13 Governing

Law. Except as otherwise provided herein, the Plan shall be construed in accordance with the laws of the State of Nevada,

without regard to principles of conflicts of law.

 

17.14 Severability

of Provisions. If any provision of the Plan is held invalid or unenforceable, such invalidity or unenforceability shall not

affect any other provision of the Plan, and the Plan shall be construed and enforced as if such invalid or unenforceable provision

had not been included in the Plan.

 

17.15 No

Funding. The Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or to make

any other segregation of funds or assets to ensure the payment of any Award. Prior to receipt of Shares or a cash distribution

pursuant to the terms of an Award, such Award shall represent an unfunded unsecured contractual obligation of the Company and

the Holder shall have no greater claim to the Shares underlying such Award or any other assets of the Company or Affiliate than

any other unsecured general creditor.

 

17.16 Headings.

Headings used throughout the Plan are for convenience only and shall not be given legal significance.

 

 

25

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00318-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00318-of-00352.parquet"}]]