Document:

Exhibit 10.1

 

TRANSGENOMIC, INC.

 

2006 EQUITY INCENTIVE PLAN

 

    	 

    	 

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	ARTICLE I
	ESTABLISHMENT AND PURPOSE
	 	 	 
	Section 1.1.	Establishment	1
	Section 1.2.	Purpose	1
	 	 	 
	ARTICLE II
	DEFINITIONS
	 	 	 
	Section 2.1.	Definitions	1
	 	 	 
	ARTICLE III
	ADMINISTRATION
	 	 	 
	Section 3.1.	General	5
	Section 3.2.	Committee Meetings	5
	Section 3.3.	Powers of the Committee	6
	Section 3.4.	Grants to Committee Members	7
	Section 3.5.	Committee Decisions and Determinations	7
	 	 	 
	ARTICLE IV
	ELIGIBILITY AND PARTICIPATION
	 	 	 
	Section 4.1.	Eligibility	7
	Section 4.2.	Participation	7
	 	 	 
	ARTICLE V
	SHARES SUBJECT TO PLAN
	 	 	 
	Section 5.1.	Common Stock	7
	Section 5.2.	Previously Granted Shares	7
	Section 5.3.	Incentive Stock Option Restriction	8
	Section 5.4.	Adjustments	8
	Section 5.5.	Code Section 409A Limitation	9
	 	 	 
	ARTICLE VI
	GRANTS IN GENERAL
	 	 	 
	Section 6.1.	Agreement	9
	Section 6.2.	Time of Granting of an Award	9
	Section 6.3.	Term and Nontransferability of Grants	9
	Section 6.4.	Termination of Service as Applied to Options and SARs	9
	Section 6.5.	Termination of Service as Applied to Grants Other Than Options and SARs	10
	Section 6.6.	Dividends and Distributions	11
	Section 6.7.	Participation	11

 

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	Section 6.8.	Section 83(b) Election	11
	 	 	 
	ARTICLE VII
	STOCK OPTIONS
	 	 	 
	Section 7.1.	Grants	11
	Section 7.2.	Exercise of Options	11
	Section 7.3.	Term	12
	Section 7.4.	Replacement Options	12
	Section 7.5.	Special Rules For Incentive Stock Options	13
	 	 	 
	ARTICLE VIII
	STOCK APPRECIATION RIGHTS
	 	 	 
	Section 8.1.	General	13
	Section 8.2.	Required Terms and Conditions	13
	Section 8.3.	Standard Terms and Conditions	14
	 	 	 
	ARTICLE IX
	RESTRICTED STOCK
	 	 	 
	Section 9.1.	General	14
	Section 9.2.	Required Terms and Conditions	14
	Section 9.3.	Standard Terms and Conditions	15
	Section 9.4.	Price	15
	 	 	 
	ARTICLE X
	RESTRICTED STOCK UNITS
	 	 	 
	Section 10.1.	General	15
	Section 10.2.	Required Terms and Conditions	16
	Section 10.3.	Standard Terms and Conditions	16
	 	 	 
	ARTICLE XI
	PERFORMANCE-BASED GRANTS AND OTHER AWARDS
	 	 	 
	Section 11.1.	Performance Units	16
	Section 11.2.	Performance Shares	17
	Section 11.3.	Other Awards	17
	Section 11.4.	Provisions Relating to Code Section 162(m)	17
	 	 	 
	ARTICLE XII
	MISCELLANEOUS
	 	 	 
	Section 12.1.	Effect of a Change in Control	20
	Section 12.2.	Rights as a Shareholder	20
	Section 12.3.	Modification, Extension and Renewal of Grants	20
	Section 12.4.	Term of Plan	20

 

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	Section 12.5.	Securities Law Requirements	20
	Section 12.6.	Amendment of the Plan	22
	Section 12.7.	Application of Funds	22
	Section 12.8.	Tax Withholding	22
	Section 12.9.	No Repricings	22
	Section 12.10.	Notices	22
	Section 12.11.	Rights to Employment or Other Service	23
	Section 12.12.	Exculpation and Indemnification	23
	Section 12.13.	No Fund Created	23
	Section 12.14.	Additional Arrangements	23
	Section 12.15.	Code Section 409A Savings Clause	23
	Section 12.16.	Captions	24
	Section 12.17.	Governing Law	24
	Section 12.18.	Execution	24

 

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TRANSGENOMIC, INC.

 

2006 EQUITY INCENTIVE PLAN

 

ARTICLE
I

 

ESTABLISHMENT
AND PURPOSE

 

Section 1.1. Establishment.
Effective June 27, 1997 Transgenomic, Inc. (the “Company”) established the Transgenomic, Inc. 1997 Stock Option Plan.
Thereafter the Company amended the Plan from time to time. The Company hereby amends and restates the Plan, renaming it the Transgenomic,
Inc. 2006 Equity Incentive Plan, effective as of the Effective Date.

 

Section 1.2. Purpose.
The Plan is intended to provide incentive to key employees, officers, directors and others expected to provide significant services
to the Company to foster and promote the long-term financial success of the Company and materially increase shareholder value.
The Plan is also intended to encourage proprietary interest in the Company, to encourage such key employees to remain in the employ
of the Company, to attract new employees with outstanding qualifications and to afford additional incentive to others to increase
their efforts in providing significant services to the Company.

 

ARTICLE
II

 

DEFINITIONS

 

Section 2.1. Definitions.
The following terms shall have the following meanings when used herein, unless the context clearly indicates otherwise.

 

(a)          “Act”
means the Securities Act of 1933, as amended.

 

(b)          “Advisor”
means a person who is not an Employee of the Company but who has agreed to serve as a source of information and advice regarding
scientific, technical or other matters relating to the Company’s business and products.

 

(c)          “Agreement”
means a written agreement entered into between the Company and the recipient of a Grant which sets forth the terms and conditions
of the Grant.

 

(d)          “Board”
means the Board of Directors of the Company.

 

(e)          “Cause”
means, unless otherwise provided in a Participant’s Agreement, (i) engaging in (A) willful or gross misconduct or (B) willful
or gross neglect, (ii) repeatedly failing to adhere to the directions of superiors or the Board or the written policies and practices
of the Company, (iii) the commission of a felony or a crime of moral turpitude, or any crime involving the Company, (iv) fraud,
misappropriation, embezzlement or material or repeated insubordination, (v) a material breach of the Participant’s employment
or other contractual agreement (if any) with the Company (other than a termination of employment by the Participant), or (vi) any
illegal act detrimental to the Company; all as determined in the sole discretion of the Committee.

 

    	 

    	 

    

 

(f)          “Change
in Control” means any one of the following events: (i) a dissolution or liquidation of the Company, (ii) a sale of substantially
all of the assets of the Company, (iii) a merger or combination involving the Company after which the owners of Common Stock of
the Company immediately prior to the merger or combination own less than 50% of the outstanding shares of common stock of the surviving
corporation, or (iv) the acquisition of more than 30% of the outstanding shares of Common Stock of the Company, whether by tender
offer or otherwise, by any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934) other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company. The decision
of the Committee as to whether a Change in Control has occurred shall be conclusive and binding.

 

(g)          “Code”
means the Internal Revenue Code of 1986, as amended, and any related rules, regulations and interpretations.

 

(h)          “Committee”
means the Compensation Committee of the Company as appointed by the Board in accordance with Article III hereof; provided that
the Committee shall at all times consist solely of at least two persons who each qualify as a “Non-Employee Director”
under Rule 16b-3(b)(3)(i) promulgated under the Exchange Act and, to the extent that relief from the limitation of Section 162(m)
of the Code is sought, as an “Outside Director” under Section 1.162-27(e)(3)(i) of the Treasury Regulations.

 

(i)          “Common
Stock” means the Company’s Common Stock, par value $.01, either currently existing or authorized hereafter and any
other stock or security resulting from adjustment thereof as described herein, or the Common Stock of any successor to the Company
which is designated for the purpose of the Plan.

 

(j)          “Company”
means Transgenomic, Inc., a Delaware corporation, and any successor or assignee corporation(s) into which the Company may be merged,
changed or consolidated; any corporation for whose Securities the Securities of the Company shall be exchanged; and any assignee
of or successor to substantially all of the assets of the Company.

 

(k)          “DER”
means a dividend equivalency right consisting of the right to receive, as specified by the Committee or the Board at the time of
the Grant, cash in an amount equal to the dividend distributions paid on a share of Common Stock subject to an Option.

 

(l)          “Disability”
means an illness or injury of a potentially permanent nature, expected to last for a continuous period of at least 12 months, certified
by a physician selected by or satisfactory to the Committee, which prevents the Participant from engaging in any occupation for
wage or profit for which the Participant is reasonably fitted by training, education or experience, as determined by the Committee
in its absolute and sole discretion.

 

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(m)          “Effective
Date” means the date the Plan is approved by the Company’s shareholders.

 

(n)          “Eligible
Persons” means officers, directors and employees of the Company, Advisors and other persons expected to provide significant
services (of a type expressly approved by the Committee as covered services for these purposes) to the Company. The Committee will
determine the eligibility of employees, officers, directors, Advisors and others expected to provide significant services to the
Company based on, among other factors, the position and responsibilities of such individuals and the nature and value to the Company
of such individual’s accomplishments and potential contribution to the success of the Company, whether directly or through
its subsidiaries.

 

(o)          “Employee”
means an individual, including an officer of the Company, who is employed (within the meaning of Code Section 3401 and the regulations
thereunder) by the Company. An “Employee” does not include any person classified by the Company as an independent contractor
even if the individual is subsequently reclassified as a common-law employee by a court, administrative agency or other adjudicatory
body. The payment of director’s fees by the Company is not sufficient to constitute “employment” of the director
by the Company.

 

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

 

(q)          “Exercise
Price” means the price per share of Common Stock, determined by the Board or the Committee, at which an Option or SAR may
be exercised.

 

(r)          “Fair
Market Value” means the value of one share of Common Stock, determined as follows:

 

(i)          If
the Common Stock is listed on a national stock exchange, the closing sale price per share on the exchange for the last preceding
date on which there was a sale of Common Stock on such exchange, as determined by the Committee.

 

(ii)         If
the Common Stock is not then listed on a national stock exchange but is traded on an over-the-counter market, the average of the
closing bid and asked prices for the Common Stock in such over-the-counter market for the last preceding date on which there was
a sale of Common Stock in such market, as determined by the Committee.

 

(iii)        If
neither (i) nor (ii) applies, such value as the Committee in its discretion may in good faith determine. Notwithstanding the foregoing,
where the Common Stock is listed or traded, the Committee may make discretionary determinations in good faith where the Common
Stock has not been traded for 10 trading days.

 

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(s)          “Grant”
means an award of an Incentive Stock Option, Non-qualified Stock Option, DER, SAR, Restricted Stock, Restricted Stock Unit, Performance
Unit, Performance Share, Other Award or any combination thereof to an Eligible Person.

 

(t)          “Incentive
Stock Option” means an Option of the type described in Section 422(b) of the Code awarded to an Employee.

 

(u)          “Non-qualified
Stock Option” means an Option not described in Section 422(b) of the Code awarded to an Eligible Person, the taxation
of which is pursuant to Section 83 of the Code.

 

(v)         “Option”
means any option, whether an Incentive Stock Option or a Non-qualified Stock Option, to purchase shares of Common Stock at a price
and for the term fixed by the Committee in accordance with Article VII of the Plan, and subject to such other limitations and restrictions
in the Plan and the applicable Agreement.

 

(w)          “Other
Award” means a right granted a Participant under Section 11.3.

 

(x)          “Participant”
means any Eligible Person to whom a Grant is made, or the Successors of the Participant, as the context so requires.

 

(y)          “Performance
Period” means the period established by the Committee during which any performance goals specified by the Committee with
respect to a Grant are to be measured.

 

(z)          “Performance
Share” means a right granted to a Participant under Section 11.2.

 

(aa)        “Performance
Unit” means a right granted to a Participant under Section 11.1.

 

(bb)        “Plan”
means the Company’s 2006 Equity Incentive Plan, as set forth herein, and as the same may from time to time be amended.

 

(cc)        “Purchase
Price” means the Exercise Price times the number of shares of Common Stock with respect to which an Option is exercised.

 

(dd)        “Restricted
Stock” means Common Stock granted to a Participant subject to the terms and conditions established by the Committee pursuant
to Article IX.

 

(ee)        “Restricted
Stock Unit” means a right granted to a Participant under Article X.

 

(ff)     
   “Restriction Period” means the period of time during which restrictions established by the
Committee shall apply to a Grant.

 

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(gg)        “Retirement”
means, unless otherwise provided by the Committee in the Participant’s Agreement, the Termination (other than for Cause)
of Service of a Participant:

 

(i)          on
or after the Participant’s attainment of age 65; or

 

(ii)         as
determined by the Committee in its absolute discretion pursuant to such other standard as may be adopted by the Committee.

 

(hh)        “Stock
Appreciation Right” or “SAR” means a right granted to a Participant under Article VIII.

 

(ii)    
    “Subsidiary” means any corporation, partnership, or other entity at least 50% of the
economic interest in the equity of which is owned by the Company or by another Subsidiary.

 

(jj)     
    “Successors of the Participant” means the legal representative of the estate of a
deceased Participant or the person or persons who shall acquire the right to exercise Grants or receive property or payment
under a Grant by bequest or inheritance or by reason of the death of the Participant.

 

(kk)         “Termination
of Service” means the time when the employee-employer relationship or directorship, or other service relationship (sufficient
to constitute service as an Eligible Person) between the Participant and the Company is terminated for any reason, with or without
Cause, including but not limited to any termination by resignation, discharge, Disability, death or Retirement; provided, however,
Termination of Service shall not include (i) a termination where there is a simultaneous reemployment of the Participant by the
Company or other continuation of service (sufficient to constitute service as an Eligible Person) for the Company or (ii) an employee
who is on military leave, sick leave or other bona fide leave of absence (to be determined in the discretion of the Committee).
The Committee, in its absolute discretion, shall determine the effects of all matters and questions relating to Termination of
Service, including but not limited to the question of whether any Termination of Service was for Cause and all questions of whether
particular leaves of absence constitute Terminations of Employment.

 

ARTICLE
III

 

ADMINISTRATION

 

Section 3.1. General.
The Plan shall be administered by the Committee.

 

Section 3.2. Committee
Meetings. The Committee shall meet from time to time as determined by its chairman or by the Chairman or Chief Executive
Officer of the Company. A majority of the members of the Committee shall constitute a quorum and the acts of a majority of the
members present at any meeting of the Committee at which a quorum is present, or acts approved in writing by a majority of the
entire Committee, shall be the acts of the Committee for purposes of the Plan. To the extent applicable, no member of the Committee
may act as to matters under the Plan specifically relating to such member.

 

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Section 3.3. Powers
of the Committee. Subject to the terms and conditions of the Plan and consistent with the Company’s intention
for the Committee to exercise the greatest permissible flexibility under Rule 16b-3 under the Exchange Act in awarding Grants,
the Committee shall have the power:

 

(a)    
      to determine from time to time the Eligible Persons who are to be awarded Grants and the
nature and amount of Grants, and to generally determine the terms, provisions and conditions (which need not be identical) of
Grants awarded under the Plan, not inconsistent with the terms of the Plan;

 

(b)          to
construe and interpret the Plan and Grants thereunder and to establish, amend, and revoke rules and regulations for administration
of the Plan. In this connection, the Committee may correct any defect or supply any omission, or reconcile any inconsistency in
the Plan, in any Agreement, or in any related agreements, in the manner and to the extent it shall deem necessary or expedient
to make the Plan fully effective. All decisions and determinations by the Committee in the exercise of this power shall be final
and binding upon the Company and the Participants and Grantees;

 

(c)      
    to amend any outstanding Grant, subject to Sections 12.5 and 12.9 hereof, and to accelerate or extend
the vesting or exercisability of any Grant, subject to Section 12.3 hereof, and to waive conditions or restrictions on
any Grants, to the extent it shall deem appropriate;

 

(d)          to
cancel, with the consent of a Participant or as otherwise permitted by the Plan, outstanding Grants;

 

(e)     
     to provide for the forms of Agreements to be utilized in connection with the Plan, which need
not be identical for each Participant;

 

(f)    
      to appoint agents as the Committee deems necessary or desirable to administer the
Plan;

 

(g)          to
establish any “blackout” period the Committee in its sole discretion deems necessary or advisable;

 

(h)          to
authorize, by written resolution, one or more officers of the Company to make Grants to nonofficer Employees and to determine the
terms and conditions of such Grants, provided, however, the Committee (i) shall not delegate such responsibility to any officer
for Grants made to an Employee who is considered an insider, (ii) the Committee’s resolution providing for such authorization
sets forth the total number of Grants such officer may award and any other conditions on the officer’s authority to make
Grants, and (iii) the officer shall report to the Committee, as the Committee may request, information regarding the nature and
scope of the Grants made pursuant to the delegated authority; and

 

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(i)     
     generally to exercise such powers and to perform such acts as are deemed necessary or expedient
to carry out the terms of the Plan and to promote the best interests of the Company with respect to the Plan.

 

Section 3.4. Grants
to Committee Members. Notwithstanding Section 3.3, any Grant awarded under the Plan to an Eligible Person who is
a member of the Committee shall be made by a majority of the directors of the Company who are not on the Committee; provided that
any Grant to such person must satisfy the requirements for exemption under Rule 16b-3 under the Exchange Act and does not cause
any member of the Committee to be disqualified as a Non-Employee Director under such Rule.

 

Section 3.5. Committee
Decisions and Determinations. Any determination made by the Committee pursuant to the provisions of the Plan or
an Agreement shall be made in its sole discretion in the best interest of the Company, not as a fiduciary. All decisions made by
the Committee pursuant to the provisions of the Plan or an Agreement shall be final and binding on all persons, including the Company
and Participants. Any determination by the Committee shall not be subject to de novo review if challenged in any court or legal
forum.

 

ARTICLE
IV

 

ELIGIBILITY
AND PARTICIPATION

 

Section 4.1. Eligibility.
Any Eligible Person may receive Grants under the Plan.

 

Section 4.2. Participation.
Whether an Eligible Person receives a Grant under the Plan will be determined by the Committee, in its sole discretion, as provided
in Section 3.3. To receive a Grant, an Eligible Person must enter into an Agreement evidencing the Grant.

 

ARTICLE
V

 

SHARES
SUBJECT TO PLAN

 

Section 5.1. Common
Stock. Subject to adjustments pursuant to Section 5.4, Grants with respect to an aggregate of not more than 1,666,667
shares of Common Stock may be made under the Plan; provided, however, that no more than an aggregate of 1,250,000 of such shares
may be used for Grants for Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares and Other Awards. Shares
hereunder may consist, in whole or in part, of authorized and unissued shares or treasury shares or shares purchased by the Company
on the open market. The certificates for Common Stock issued hereunder may include any legend which the Committee deems appropriate
to reflect any restrictions on transfer hereunder or under the Agreement, or as the Committee may otherwise deem appropriate.

 

Section 5.2. Previously
Granted Shares. Subject to Sections 5.1 and 5.3, the Committee has full authority to determine the number of shares
of Common Stock available for Grants; provided, however, that the full number of Stock Appreciation Rights granted that are settled
by the issuance of shares of Common Stock shall be counted against the number of shares of Common Stock available for award under
the Plan, regardless of the number of shares of Common Stock actually issued upon settlement of such Stock Appreciation Rights.
In its discretion, the Committee may include as available for distribution all of the following:

 

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(a)          Common
Stock subject to a Grant that has been forfeited;

 

(b)          Common
Stock under a Grant that otherwise terminates, expires or lapses without issuance of Common Stock being made to a Participant;
and

 

(c)          Common
Stock subject to any Grant that settles in cash.

 

Section 5.3. Incentive
Stock Option Restriction. Solely for purposes of determining whether shares are available for the issuance of Incentive
Stock Options, and notwithstanding any provision of this Article V to the contrary, the maximum aggregate number of shares that
may be issued through Incentive Stock Options under the Plan is 1,666,667. The terms of Section 5.2 apply in determining the number
of shares available under this Section for issuance through Incentive Stock Options.

 

Section 5.4. Adjustments.
In the event that the outstanding shares of Common Stock hereafter are changed into or exchanged for a different number or kind
of shares or other securities of the Company or of another corporation by reason of merger, consolidation, reorganization, recapitalization,
reclassification, combination of shares, stock split-up, or stock dividend, or in the event that there should be any other stock
splits, stock dividends or other relevant changes in capitalization occurring after the effective date of this Plan:

 

(a)          The
maximum aggregate number and kind of shares that may be issued for Grants hereunder may be adjusted appropriately; and

 

(b)          Rights
under outstanding Grants made to Eligible Persons hereunder, both as to the number and kind of subject shares and the Exercise
Price, may be adjusted appropriately.

 

The Committee, in its sole discretion,
may also make appropriate adjustments in the terms of any Grants under this Plan to reflect or related to such changes or distributions
and to modify any other terms of outstanding Grants, including modifications of performance goals and changes in the length of
Performance Periods. The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding
on the Participants under this Plan.

 

Notwithstanding anything else herein to
the contrary, without affecting the number of shares of Common Stock reserved or available hereunder, the Committee may authorize
the issuance or assumption of benefits under this Plan in connection with any merger, consolidation, acquisition of property or
stock, or reorganization upon such terms and conditions as it may deem appropriate (including, but not limited to, a conversion
of equity awards in Grants under this Plan in a manner consistent with paragraph 53 of FASB Interpretation No. 44), subject to
compliance with the rules under Code Sections 422 and 424, as and where applicable.

 

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The foregoing adjustments and the manner
of application of the foregoing provisions to Grants shall be determined solely by the Committee on a case-by-case basis, applied
to similarly situation groups or in any other manner as it deems in its sole discretion. Any adjustment hereunder may provide for
the elimination of fractional share interests.

 

Section 5.5. Code
Section 409A Limitation. Any adjustment made pursuant to Section 5.4 to any Grant that is considered “deferred
compensation” within the meaning of Section 409A of the Code shall be made in compliance with the requirements of Code
Section 409A. Any adjustments made pursuant to Section 5.4 to any Grant that is not considered “deferred compensation”
shall be made in a manner to ensure that after such adjustment, the Grant either continues not to be subject to Code Section 409A
or complies with the requirements of Code Section 409A.

 

ARTICLE
VI

 

GRANTS
IN GENERAL

 

Section 6.1. Agreement.
Each Grant hereunder shall be evidenced by a written Agreement as of the date of the Grant and executed by the Company and the
Eligible Person. Each Agreement shall set forth the terms and conditions as may be determined by the Committee consistent with
the Plan. The Agreement shall state the number of shares of Common Stock to which the Grant pertains and may provide for adjustment
in accordance with Section 5.4. As applicable, each Agreement must state the Exercise Price or other consideration to be paid for
any Grant.

 

Section 6.2. Time
of Granting of an Award. The award date of a Grant shall, for all purposes, be the date on which the Committee makes
the determination awarding such Grant, or such other date as is determined by the Board. Notice of the determination of a Grant
shall be given to each Eligible Person to whom a Grant is awarded within a reasonable period of time after the date of such Grant.

 

Section 6.3. Term
and Nontransferability of Grants. No Grant is exercisable except by the Participant or a Successor of the Participant
permitted by the Plan. No Grant is assignable or transferable except by will or the laws of descent and distribution of the state
wherein the Participant was domiciled at the time of his or her death; provided, however, that the Committee may permit other transfers
where the Committee concludes that such transferability (i) does not result in accelerated taxation, (ii) does not cause any Option
intended to be an Incentive Stock Option to fail to be described in Code Section 422(b), (iii) is in no event a transfer for value,
and (iv) is otherwise appropriate and desirable.

 

Section 6.4. Termination
of Service as Applied to Options and SARs. Unless otherwise provided in the applicable Agreement or as determined
by the Committee, Options and SARs shall be governed by the following provisions:

 

(a)          Termination
of Service, Except by Death, Retirement or Disability. Unless Section 6.4(b) applies, upon any Termination of Service,
a Participant shall have the right, subject to the restrictions of Section 7.5, to exercise his or her Options or SARs at any time
within three months after Termination of Service, but only to the extent that, at the date of Termination of Service, the Participant’s
right to exercise such Options or SARs had accrued pursuant to the terms of the Agreement(s) and had not previously been exercised;
provided, however, that, unless otherwise provided in the Agreement(s), if there occurs a Termination of Service for Cause or a
Termination of Service by the Participant (other than on account of death, Retirement or Disability), any Option or SAR not exercised
in full prior to such Termination of Service shall be canceled.

 

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(b)          Death,
Disability or Retirement of Participant. Notwithstanding Section 6.4(a), if the Participant dies while an Eligible
Person or within three months after any Termination of Service other than for Cause or a Termination of Service by the Participant
(other than on account of death, Retirement or Disability) or becomes disabled or retires while an Employee, the Participant’s
Options or SARs may be exercised, subject to the restrictions of Section 7.5, at any time within 12 months after the Participant’s
death, Disability or Retirement, but only to the extent that, at the date of death, Disability or Retirement, the Participant’s
right to exercise such Options or SARs had accrued and had not been forfeited pursuant to the terms of the Agreement and had not
previously been exercised. Any Option or SAR not vested as of the date of a Participant’s death, Disability or Retirement
shall immediately vest upon the occurrence of the applicable event; provided, however, that the Participant continuously served
as an Employee, director or Advisor for at least three years, or such shorter period as the Committee may prescribe.

 

(c)          DERs.
DERs granted in connection with any Option shall be cancelled at the time the related Option terminates or expires.

 

Section 6.5. Termination
of Service as Applied to Grants Other Than Options and SARs. Unless otherwise provided in the applicable Agreement
or as determined by the Committee, Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares and Other Awards
shall be governed by the following provisions:

 

(a)          Termination
of Service, Except by Death, Retirement or Disability. Unless Section 6.5(b) applies, in the event of a Participant’s
Termination of Service, the Participant’s Grants of Restricted Stock, Restricted Stock Units, Performance Units, Performance
Shares and Other Awards shall be forfeited upon the Participant’s Termination of Service.

 

(b)          Death,
Retirement or Disability of Participant. Notwithstanding Section 6.5(a), Restricted Stock, Restricted Stock
Units and Other Awards shall fully vest on a Participant’s Termination of Service by reason of the Participant’s death,
Retirement or Disability, provided that the Participant continuously served as an Employee, director or Advisor for at least three
years or such shorter period as the Committee may prescribe. Performance Units and Performance Shares or any award tied to performance
may be paid out at a target level and paid or distributed at the same time payments are made to other Participants who did not
incur such a Termination of Service as determined by the Committee, provided that the Participant continuously served as an Employee,
director or Advisor for at least three years, or such shorter period as the Committee may prescribe.

 

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Section 6.6. Dividends
and Distributions. Participants awarded Grants of Restricted Stock, Restricted Stock Units, Performance Shares or
Performance Units may, if the Committee so determines, be credited with dividends paid with respect to the underlying shares or
dividend equivalents while the Grants are held in a manner determined by the Committee in its sole discretion. The Committee may
apply any restrictions to the dividends or dividend equivalents that the Committee deems appropriate. The Committee, in its sole
discretion, may determine the form of payment of dividends or dividend equivalents, including in the form of cash, Common Stock,
Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units or Other Awards.

 

Section 6.7. Participation.
There is no guarantee that any Eligible Person will receive a Grant under the Plan or, having received a Grant, that the Participant
will receive a future Grant on similar terms or at all. There is no obligation for uniformity of treatment of Eligible Persons
with respect to who receives a Grant or the terms and conditions of Participants’ Grants.

 

Section 6.8. Section
83(b) Election. The Committee may prohibit a Participant from making an election under Section 83(b) of the Code.
If the Committee has not prohibited such election, and if the Participant elects to include in such Participant’s gross income
in the year of transfer the amounts specified in Section 83(b) of the Code, the Participant shall notify the Company of such election
within ten (10) days of filing notice of the election with the Internal Revenue Service, and will provide the required withholding
pursuant to Section 12.8, in addition to any filing and notification required pursuant to regulations issued under the authority
of Section 83(b) of the Code.

 

ARTICLE
VII

STOCK OPTIONS

 

Section 7.1. Grants.
The Committee may grant Options in accordance with this Article. Options may be awarded alone or in combination with other Grants.
The Exercise Price for any Option shall not be less than the Fair Market Value on the date of Grant. Each Agreement for an Option
shall state whether such Option is an Incentive Stock Option or a Non-qualified Stock Option. No Incentive Stock Options may be
granted to an Eligible Person who is not an Employee of the Company.

 

Section 7.2. Exercise
of Options.

 

(a)          Options
may be exercised in whole or part at any time within the period permitted for the exercise thereof, and shall be exercised by written
notice of intent to exercise the Option delivered to the Secretary of the Company at its principal executive offices.

 

(b)          Except
as may otherwise be provided below, the Purchase Price for each Option granted to an Eligible Person shall be payable in full in
United States dollars upon the exercise of the Option. In the event the Company determines that it is required to withhold taxes
as a result of the exercise of an Option, as a condition to the exercise thereof, an Employee may be required to make arrangements
satisfactory to the Company to enable it to satisfy such withholding requirements in accordance with Section 12.8 hereof. If the
applicable Agreement so provides, and the Committee otherwise so permits, the Purchase Price may be paid in one or a combination
of the following:

 

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(i)          by
a certified or bank cashier’s check;

 

(ii)         by
the surrender of shares of Common Stock in good form for transfer, owned by the person exercising the Option and having a Fair
Market Value on the date of exercise equal to the Purchase Price, or in any combination of cash and shares of Common Stock, as
long as the sum of the cash so paid and the Fair Market Value of the shares of Common Stock so surrendered equals the Purchase
Price;

 

(iii)        by
cancellation of indebtedness owed by the Company to the Participant; or

 

(iv)        by
any combination of such methods of payment or any other method acceptable to the Committee in its discretion.

 

Except in
the case of Options exercised by certified or bank cashier’s check, the Committee may impose limitations and prohibitions
on the exercise of Options as it deems appropriate, including, without limitation, any limitation or prohibition designed to avoid
accounting consequences which may result from the use of Common Stock as payment upon exercise of an Option. Any fractional shares
of Common Stock resulting from a Participant’s election that are accepted by the Company shall in the discretion of the Committee
be paid in cash.

 

Section 7.3. Term.
The period during which any Option may be exercised shall not exceed ten (10) years from the Grant Date. No Option shall be exercisable
until such time as set forth in the applicable Agreement (but in no event after the expiration of such Option).

 

Section 7.4. Replacement
Options. The Committee may grant a replacement option to any Employee who exercises all or a part of an Option granted
under this Plan using qualifying stock as payment for the exercise price (a “Replacement Option”). A Replacement Option
gives the Employee the right to purchase, at a price not less than the Fair Market Value of the Company Stock as of the date of
the grant of the Replacement Option, the number of shares of Common Stock equal to the sum of the number of whole shares (a) used
by the Employee in payment of the Exercise Price for the Option which the Participant exercised and (b) used by the Employee in
connection with applicable withholding taxes on such transaction. A Replacement Option may not be exercised for six months following
the date of its grant and shall expire on the same date as the Option which it replaces. For this purpose, “qualifying stock”
means Common Stock owned by the Participant for at least six months preceding the exercise of the Option that has not been used
in a stock-for-stock swap transaction within the preceding six months.

 

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Section 7.5. Special
Rules For Incentive Stock Options.

 

(a)          Aggregate
Fair Market Value. In the case of Incentive Stock Options granted hereunder, the aggregate Fair Market Value (determined
as of the date of the Grant thereof) of the Common Stock with respect to which Incentive Stock Options become exercisable by any
Participant for the first time during any calendar year (under the Plan and all other plans maintained by the Company, its parent
or Subsidiaries) shall not exceed $100,000.

 

(b)          Rules
Applicable to Certain Owners. In the case of an individual described in Section 422(b)(6) of the Code (relating
to certain 10% owners), the Exercise Price with respect to an Incentive Stock Option shall not be less than 110% of the Fair Market
Value of a share of Common Stock on the day the Option is granted, and the term of an Incentive Stock Option shall be no more than
five years from the date of grant.

 

(c)          Disqualifying
Disposition. If shares of Common Stock acquired upon exercise of an Incentive Stock Option are disposed of in a
disqualifying disposition within the meaning of Section 422 of the Code by a Participant prior to the expiration of either two
years from the date of grant of such Option or one year from the transfer of such shares to the Participant pursuant to the exercise
of such Option, or in any other disqualifying disposition within the meaning of Section 422 of the Code, such Participant shall
notify the Company in writing as soon as practicable thereafter of the date and terms of such disposition and, if the Company thereupon
has a tax-withholding obligation, shall pay to the Company an amount equal to any withholding tax the Company is required to pay
as a result of the disqualifying disposition.

 

ARTICLE
VIII

STOCK APPRECIATION RIGHTS

 

Section 8.1. General.
The Committee shall have authority to grant Stock Appreciation Rights (“SARs”) under the Plan at any time or from time
to time. A SAR shall entitle the Participant to receive Common Stock or cash upon exercise of the SAR equal in value to the excess
of the Fair Market Value per share of Common Stock over the exercise price per share of Common Stock specified in the related Agreement,
multiplied by the number of shares in respect of which the SAR is exercised, less any amount retained to cover tax withholdings,
if necessary. The Fair Market Value per share of Common Stock shall be determined as of the date of exercise of such SAR. Settlement
of a SAR shall be subject to the Participant’s satisfaction in full of any conditions, restrictions or limitations imposed
in accordance with the Plan or any Agreement including, without limitation, payment of the Exercise Price. SARs may be awarded
alone or in addition to other Grants made under the Plan.

 

Section 8.2. Required
Terms and Conditions. SARs shall be subject to the following terms and conditions and to such additional terms and
conditions, not inconsistent with the provisions of the Plan, as the Committee deems desirable.

 

(a)          Price.
The grant price of a SAR may not be less than 100% of the Fair Market Value per share of Common Stock on the date of grant, and
the exercise price of a SAR may not be less than 100% of the Fair Market Value per share of Common Stock on the date of exercise.

 

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(b)          Term
and Exercisability. The term and exercisability of a SAR shall be no longer than ten (10) years after the Grant
Date. The Committee may provide in a SAR Agreement or thereafter for an accelerated exercise of all or part of a SAR upon such
events or standards that it may determine, including one or more performance measures.

 

(c)          Method
of Exercise. A Participant shall exercise a SAR by giving written notice of exercise to the Company specifying in
whole shares the portion of the SAR to be exercised and if the Participant has more than one Grant of SARS which could be exercised,
designating the particular Grant to be exercised.

 

(d)          No
Deferral Features. To the extent necessary to comply with Code Section 409A, the SAR Agreement shall not include
any features allowing the Participant to defer recognition of income past the date of exercise.

 

Section 8.3. Standard
Terms and Conditions. Unless the Committee specifies otherwise in the SAR Agreement, the terms set forth in this
Section 8.3 shall apply to all SARs granted under the Plan. An SAR Agreement that incorporates the terms of the Plan by reference
shall be deemed to have incorporated the terms set forth in this Section.

 

(a)          Term.
The standard term of a SAR shall be ten (10) years beginning on the Grant Date.

 

(b)          Exercisability.
The standard rate at which a SAR shall be exercisable shall be 34 percent of the Grant on the first anniversary of the Grant Date
and 33 percent of the Grant on the second and third anniversaries of the Grant Date.

 

ARTICLE
IX

RESTRICTED STOCK

 

Section 9.1. General.
The Committee shall have authority to grant Restricted Stock under the Plan at any time or from time to time. The Committee shall
determine the number of shares of Restricted Stock to be awarded to any Eligible Person, the Restriction Period within which such
Grants may be subject to forfeiture, and any other terms and conditions of the Grants including, without limitation, providing
for either grant or vesting upon the achievement of performance goals. To the extent the Company desires to avoid the deduction
limit of Code Section 162(m) as applied to Restricted Stock, such Grants must comply with Section 11.4. Restricted Stock may be
awarded alone or in addition to other Grants made under the Plan.

 

Section 9.2. Required
Terms and Conditions. Restricted Stock shall be subject to the following terms and conditions and to such additional
terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall deem desirable:

 

(a)          Restriction
Period. No Restricted Stock shall become free of restrictions before one year after the granting of the Restricted
Stock (unless the Restricted Stock is granted in lieu of or replacement of compensation that is subject to vesting restrictions,
in which case the Restricted Stock may be subject to the same vesting restrictions as was the compensation).

 

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(b)          Delivery.
The Company shall issue the shares of Restricted Stock to each recipient who is awarded a Grant of Restricted Stock either in certificate
form or in book entry form, registered in the name of the recipient, with legends or notations, as applicable, referring to the
terms, conditions and restrictions applicable to any such Grant and record the transfer on the Company’s official shareholder
records; provided that the Company may require that any stock certificates evidencing Restricted Stock granted hereunder be held
in the custody of the Company until the restrictions thereon shall have lapsed, and that as a condition of any Grant of Restricted
Stock, the Participant shall have delivered a stock power, endorsed in blank, relating to the Common Stock covered by such Grant.

 

Section 9.3. Standard
Terms and Conditions. Unless the Committee specifies otherwise in the Restricted Stock Agreement, the terms set
forth in this Section 9.3 shall apply to all Restricted Stock granted under the Plan. A Restricted Stock Agreement that incorporates
the terms of the Plan by reference shall be deemed to have incorporated the terms set forth in this Section.

 

(a)          Restriction
Period. The standard Restriction Period shall be three years from the Grant Date.

 

(b)          Restrictions.
The standard restrictions applicable to Restricted Stock are continued service of the Participant for the Company during the Restriction
Period.

 

(c)          Rights.
The standard terms of a Restricted Stock Agreement shall provide that the Participant shall have, with respect to the Restricted
Stock, all of the rights of a shareholder of the Company holding the class of Common Stock that is the subject of the Restricted
Stock, including, if applicable, the right to vote the shares and the right to receive any cash dividends, subject to Section 6.3.

 

Section 9.4. Price.
The Committee may require a Participant to pay a stipulated purchase price for each share of Restricted Stock.

 

ARTICLE
X

RESTRICTED STOCK UNITS

 

Section 10.1. General.
The Committee shall have authority to grant Restricted Stock Units under the Plan at any time or from time to time. A Restricted
Stock Unit Grant is denominated in Common Stock that will be settled either by delivery of Common Stock or the payment of cash
based upon the Fair Market Value of a specified number of Common Stock. The Committee shall determine the number of Restricted
Stock Units to be awarded to any Participant, the Restriction Period within which such Grants may be subject to forfeiture, and
any other terms and conditions of the Grants including without limitation providing for either grant or vesting upon the achievement
of performance goals. To the extent the Company desires to avoid the deduction limit of Code Section 162(m) as applied to Restricted
Stock Units, such Grants must comply with Section 11.4. Restricted Stock Units may be awarded alone or in addition to other Grants
made under the Plan.

 

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Section 10.2. Required
Terms and Conditions. Restricted Stock Units shall be subject to the following terms and conditions and to such
additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall deem desirable:

 

(a)          Restriction
Period. No Restricted Stock Unit shall become free of restrictions before one year of the granting of the Restricted
Stock Unit, unless the Restricted Stock Unit is granted in lieu of other compensation that is subject to vesting restrictions,
in which case the Restricted Stock Units may be subject to the same vesting restrictions as was the compensation.

 

(b)          Rights.
The Committee shall be entitled to specify in a Restricted Stock Unit Agreement the extent to which and on what terms and conditions
the applicable Participant shall be entitled to receive current or deferred payments corresponding to the dividends payable on
the Common Stock.

 

Section 10.3. Standard
Terms and Conditions. Unless the Committee specifies otherwise in the Restricted Stock Unit Agreement, the terms
set forth in this Section 10.3 shall apply to all Restricted Stock Unit granted under the Plan. A Restricted Stock Unit Agreement
that incorporates the terms of the Plan by reference shall be deemed to have incorporated the terms set forth in this Section:

 

(a)          Restriction
Period. The standard Restriction Period shall be three years from the Grant Date.

 

(b)          Restrictions.
The standard restrictions applicable to a Restricted Stock Unit are continued service of the Participant for the Company during
the Restriction Period.

 

(c)          Rights.
The standard terms of the Restricted Stock Units shall provide that the Participant is entitled to receive current payments corresponding
to the dividends payable on the Common Stock.

 

ARTICLE
XI

PERFORMANCE-BASED GRANTS AND OTHER AWARDS

 

Section 11.1. Performance
Units. The Committee shall have authority to grant Performance Units under the Plan at any time or from time to
time. A Performance Unit consists of the right to receive cash upon achievement of a performance goal or goals (as the case may
be) and satisfaction of such other terms and conditions as the Committee determines. The Committee shall have complete discretion
to determine the number of Performance Units granted to each Participant and any applicable conditions. A Grant of Performance
Units shall be earned in accordance with the Agreement over a specified period of performance, as determined by the Committee.
Unless expressly waived in the Agreement, an award of Performance Units must vest solely on the attainment of one or more performance
goals. Performance Units may be awarded alone or in addition to other Grants made under the Plan. The Committee, in its absolute
discretion, may substitute actual shares of Common Stock for the cash payment otherwise required to be made to a Participant pursuant
to a Performance Unit. To the extent the Company desires to avoid the deduction limit of Code Section 162(m) as applied to Performance
Units, such Grants must comply with Section 11.4.

 

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Section 11.2. Performance
Shares. The Committee shall have authority to grant Performance Shares under the Plan at any time or from time to
time. A Performance Share consists of the right to receive Common Stock upon achievement of a performance goal or goals (as the
case may be) and satisfaction of such other terms and conditions as the Committee determines. The Committee shall have complete
discretion to determine the number of Performance Shares granted to each Participant and any applicable conditions. A Grant of
Performance Shares shall be earned in accordance with the Agreement over a specified period of performance, as determined by the
Committee. Unless expressly waived in the Agreement, an award of Performance Shares must vest solely on the attainment of one or
more performance goals. Performance Shares may be awarded alone or in addition to other Grants made under the Plan. The Committee,
in its absolute discretion, may make a cash payment equal to the Fair Market Value of the Common Stock otherwise required to be
transferred to a Participant pursuant to a Performance Share. To the extent the Company desires to avoid the deduction limit of
Code Section 162(m) as applied to Performance Shares, such Grants must comply with Section 11.4.

 

Section 11.3. Other
Awards. The Committee shall have authority to grant Other Awards under the Plan at any time and from time to time.
An Other Award is a Grant not otherwise specifically provided for under the terms of the Plan that is valued in whole or in part
by reference to, or is otherwise based upon or settled in, Common Stock. The Grant of an Other Award shall be evidenced by an Agreement,
setting forth the terms and conditions of the Grant as the Committee, in its sole discretion within the terms of the Plan, deems
desirable. Other Awards may be awarded alone or in addition to other Grants made under the Plan.

 

Section 11.4. Provisions
Relating to Code Section 162(m). Except as otherwise provided in the Plan and unless expressly waived (either with
respect to an individual Participant or a class of individual Participants) in writing by the Committee, it is the intent of the
Company that Grants made to persons who are (or may become) Covered Employees within the meaning of Section 162(m) of the Code
shall constitute “qualified performance-based compensation” satisfying the relevant requirements of Code Section 162(m)
and the guidance thereunder. Accordingly, the Plan shall be administered and the provisions of the Plan shall be interpreted in
a manner consistent with Code Section 162(m). If any provision of the Plan or any Agreement relating to such a Grant does not comply
or is inconsistent with the requirements of Code Section 162(m), unless expressly waived as described above, such provision
shall be construed or deemed amended to the extent necessary to conform to such requirements. In addition, the following provisions
shall apply to the Plan or a Grant to the extent necessary to obtain a tax deduction for the Company:

 

(a)          Awards
subject to this Section must vest (or may be granted or vest) solely on the attainment of one or more objective performance goals
unrelated to term of employment. Grants will also be subject to the general vesting provisions provided in the Agreement and this
Plan.

 

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(b)          Prior
to completion of 25% of the Performance Period or such earlier date as required under Section 162(m), the Committee must establish
performance goals (in accordance with subsection (e) below) in writing (including but not limited to Committee minutes) for Covered
Employees who will receive Grants that are intended as qualified performance-based compensation. The outcome of the goal must be
substantially uncertain at the time the Committee actually establishes the goal.

 

(c)          The
performance goal must state, in terms of an objective formula or standard, the method for computing the Grant payable to the Participant
if the goal is attained.

 

(d)          The
terms of the objective formula or standard must prevent any discretion being exercised by the Committee to later increase the amount
payable that otherwise would be due upon attainment of the goal, but may allow discretion to decrease the amount payable.

 

(e)          The
material terms of the performance goal must be disclosed to and subsequently approved in a separate vote by the stockholders before
the payout is executed, unless they conform to one or any combination of the following goals/targets each determined in accordance
with generally accepted accounting principles or similar objective standards (and/or each as may appear in the annual report to
stockholders, Form 10K, or Form 10Q): revenue; earnings (including earnings before interest, taxes, depreciation, and amortization,
earnings before interest and taxes, and earnings before or after taxes); operating income; net income; funds from operations (“FFO”),
profit margins; earnings per share; FFO per share, return on assets; return on equity; return on invested capital; economic value-added;
stock price; gross dollar volume; total shareholder return; market share; book value; expense management; cash flow; and customer
satisfaction.

 

The foregoing
criteria may relate to the Company, one or more of its Subsidiaries or one or more of its divisions or units, or any combination
of the foregoing, and may be applied on an absolute basis and/or be relative to one or more peer group companies or indices, or
any combination thereof, all as the Committee shall determine.

 

(f)          A
combination of the above performance goals may be used with a particular Agreement evidencing a Grant.

 

(g)          The
Committee in its sole discretion in setting the goals/targets in the time prescribed above may provide for the making of equitable
adjustments (singularly or in combination) to the goals/targets in recognition of unusual or non-recurring events for the following
qualifying objective items: asset impairments under Statement of Financial Accounting Standards No. 121, as amended or superseded;
acquisition-related charges; accruals for restructuring and/or reorganization program charges; merger integration costs; merger
transaction costs; any profit or loss attributable to the business operations of any entity or entities acquired during the period
of service to which the performance goal relates; tax settlements; any extraordinary, unusual in nature, infrequent in occurrence,
or other non-recurring items (not otherwise listed) as described in Accounting Principles Board Opinion No. 30; any extraordinary,
unusual in nature, infrequent in occurrence, or other non-recurring items (not otherwise listed) in management’s discussion
and analysis of financial condition results of operations, selected financial data, financial statements and/or in the footnotes
each as appearing in the annual report to stockholders; unrealized gains or losses on investments; charges related to derivative
transactions contemplated by Statement of Financial Accounting Standards No. 133, as amended or superseded; and compensation charges
related to FAS 123 (Revised) or its successor provision.

 

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(h)          The
Committee must certify in writing prior to payout that the performance goals and any other material terms were in fact satisfied.
In the manner required by Section 162(m) of the Code, the Committee shall, promptly after the date on which the necessary financial
and other information for a particular Performance Period becomes available, certify the extent to which performance goals have
been achieved with respect to any Grant intended to qualify as “performance-based compensation” under Section 162(m)
of the Code. In addition, the Committee may, in its discretion, reduce or eliminate the amount of any Grant payable to any Participant,
based on such factors as the Committee may deem relevant.

 

(i)          Limitation
on Grants.

 

(i)          If
an Option is canceled, the canceled Option continues to be counted against the maximum number of shares for which Options may be
granted to the Participant under the Plan, but not towards the total number of shares reserved and available under the Plan pursuant
to Section 5.1.

 

(ii)         During
any fiscal year, the maximum number of shares of Common Stock for which Options and Stock Appreciation Rights may be granted to
any Covered Employee shall not exceed 166,667 shares.

 

(iii)        During
any fiscal year, the maximum number of shares of Common Stock for which Restricted Stock, Restricted Stock Units, Performance Units
and Other Awards may be granted to any Covered Employee shall not exceed 500,000 shares.

 

(iv)        During
any fiscal year, the maximum cash payment hereunder for performance-based compensation purposes under Code Section 162(m) to any
Covered Employee shall not exceed $250,000.

 

(v)         In
the case of an outstanding Grant intended to qualify for the performance-based compensation exception under Section 162(m), the
Committee shall not, without approval of a majority of the shareholders of the Company, amend the Plan or the Grant in a manner
that would adversely affect the Grant’s continued qualification for the performance-based exception.

 

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ARTICLE
XII

MISCELLANEOUS

 

Section 12.1. Effect
of a Change in Control. Notwithstanding any other provision of this Plan to the contrary, all unvested, unexercisable
or restricted Grants shall automatically vest, become exercisable and become unrestricted and performance-based Grants shall be
paid out on a pro rata basis at a target level without further action by the Board or Committee upon a Change in Control, unless
provisions are made in connection with the transaction resulting in the Change in Control for the assumption of Grants theretofore
awarded, or the substitution for such Grants of new grants, by the successor entity or parent thereof, with appropriate adjustment
as to the number and kind of shares and the per share exercise prices, as provided in Section 5.4.

 

Section 12.2. Rights
as a Shareholder. Other than certain voting rights permitted by the Plan or an Agreement, no person shall have any
rights of a shareholder as to Common Stock subject to a Grant until, after proper transfer of the Common Stock subject to a Grant
or other required action, such shares have been recorded on the Company’s official shareholder records as having been issued
and transferred. No adjustment shall be made for cash dividends or other rights for which the record date is prior to the date
such shares are recorded as issued and transferred in the company’s official shareholder records.

 

Section 12.3. Modification,
Extension and Renewal of Grants.

 

(a)          Ability.
Within the limitations of the Plan, the Committee may modify, extend or renew outstanding Grants or accept the cancellation of
outstanding Grants (to the extent not previously exercised) to make new Grants in substitution therefor, unless such modification,
extension or renewal would not satisfy any applicable requirements of Rule 16b-3 of the Exchange Act; provided, however, no such
action shall result in an adjustment to the performance goals of any Grant intended to avoid the deduction limit of Code Section
162(m) if the action results in such Grant not being deductible or increases the amount of compensation otherwise payable to a
Participant. The foregoing notwithstanding, no modification of a Grant shall, without the consent of the Participant, alter or
impair any rights or obligations under any Grant previously made.

 

(b)          Code
Section 409A Limitation. Any modification, extension or renewal hereunder to any Grant that is considered “deferred
compensation” within the meaning of Section 409A of the Code shall be made in compliance with the requirements of Code
Section 409A. Any modification, extension or renewal hereunder to any Grant that is not considered “deferred compensation”
within the meaning of Code Section 409A shall be made in a manner to ensure that after such action, the Grant either continues
not to be subject to Code Section 409A or complies with the requirements of Code Section 409A.

 

Section 12.4. Term
of Plan. Grants may be made pursuant to the Plan until the expiration of ten (10) years from the Effective Date
of the Plan.

 

Section 12.5. Securities
Law Requirements.

 

(a)          Legality
of Issuance. The issuance of any Common Stock in connection with a Grant shall be contingent upon the following:

 

(i)          the
obligation of the Company to sell Common Stock with respect to Grants shall be subject to all applicable laws, rules and regulations,
including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as
may be deemed necessary or appropriate by the Committee;

 

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(ii)         the
Committee may make such changes to the Plan as may be necessary or appropriate to comply with the rules and regulations of any
government authority or to obtain tax benefits; and

 

(iii)        each
Grant is subject to the requirement that, if at any time the Committee determines, in its discretion, that the listing, registration
or qualification of Common Stock issuable pursuant to the Plan is required by any securities exchange or under any state or federal
law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection
with, the Grant or the issuance of Common Stock, no Grant shall be awarded or payment made or Common Stock issued, in whole or
in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any conditions
in a manner acceptable to the Committee.

 

(b)          Restrictions
on Transfer. Regardless of whether the offering and sale of Common Stock under the Plan has been registered under
the Act or has been registered or qualified under the securities laws of any state, the Company may impose restrictions on the
sale, pledge or other transfer of shares of Common Stock (including the placement of appropriate legends on stock certificates)
if, in the judgment of the Company and its counsel, such restrictions are necessary or desirable in order to achieve compliance
with the provisions of the Act, the securities laws of any state or any other law. In the event that the sale of Common Stock under
the Plan is not registered under the Act but an exemption is available which requires an investment representation or other representation,
each Participant shall be required to represent that such shares of Common Stock are being acquired for investment, and not with
a view to the sale or distribution thereof, and to make such other representations as are deemed necessary or appropriate by the
Company and its counsel. Any determination by the Company and its counsel in connection with any of the matters set forth in this
Section shall be conclusive and binding on all persons.

 

(c)          Registration
or Qualification of Securities. The Company may, but shall not be obligated to, register or qualify the issuance
of Grants and/or the sale of Common Stock under the Act or any other applicable law. The Company shall not be obligated to take
any affirmative action in order to cause the issuance of Grants or the sale of Common Stock under the Plan to comply with any law.

 

(d)          Exchange
of Certificates. If, in the opinion of the Company and its counsel, any legend placed on a stock certificate representing
Common Stock sold under the Plan is no longer required, the holder of such certificate shall be entitled to exchange such certificate
for a certificate representing the same number of shares of Common Stock but lacking such legend.

 

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Section 12.6. Amendment
of the Plan. The Board may from time to time, with respect to any Common Stock at the time not subject to Grants,
suspend or discontinue the Plan or revise or amend it in any respect whatsoever. The Board may amend the Plan as it shall deem
advisable, except that no amendment may adversely affect a Participant with respect to Grants previously made without the written
consent of the Participant holding such Grants or unless such amendments are in connection with compliance with applicable laws
(including Code Section 409A), stock exchange rules or accounting rules; provided that the Board may not make any amendment in
the Plan, including, but not limited to, the repricing, replacement or regranting through cancellation of Options or SARs, that
would, if such amendment were not approved by the holders of the Common Stock, cause the Plan to fail to comply with any requirement
or applicable law or regulation, unless and until the approval of the holders of such Common Stock is obtained.

 

Section 12.7. Application
of Funds. The proceeds received by the Company from the sale of Common Stock pursuant to the exercise of an Option
will be used for general corporate purposes.

 

Section 12.8. Tax
Withholding. Each recipient of a Grant shall, no later than the date as of which the value of any Grant first becomes
includable in the gross income of the recipient for federal income tax purposes, pay to the Company, or make arrangements satisfactory
to the Company regarding payment of, any federal, state or local taxes of any kind that are required by law to be withheld with
respect to such income. A Participant may elect to have such tax withholding satisfied, in whole or in part, by (i) authorizing
the Company to withhold a number of shares of Common Stock to be issued pursuant to a Grant equal to the Fair Market Value as of
the date withholding is effected that would satisfy the withholding amount due, (ii) transferring to the Company shares of Common
Stock owned by the Participant with a Fair Market Value equal to the amount of the required withholding tax, or (iii) in the case
of a Participant who is an Employee of the Company at the time such withholding is effected, withholding from the Participant’s
cash compensation. Notwithstanding anything contained in the Plan to the contrary, the Participant’s satisfaction of any
tax-withholding requirements imposed by the Committee shall be a condition precedent to the Company’s obligation as may otherwise
be provided hereunder to provide shares of Common Stock to the Participant, and the failure of the Participant to satisfy such
requirements with respect to Grants shall cause such Grants to be forfeited. Any Participant who surrenders previously owned shares
of Common Stock to satisfy withholding obligations incurred in connection with a Grant must comply with the applicable provisions
of Rule 16b-3 of the Exchange Act, if applicable.

 

Section 12.9. No
Repricings. In no event shall the Company permit the repricing of Grants unless approved pursuant to a vote of the
shareholders. Any repricings in contravention of this Section are void.

 

Section 12.10. Notices.
All notices under the Plan shall be in writing, and if to the Company, shall be delivered personally to the Secretary of the Company
or mailed to its principal office, addressed to the attention of the Secretary; and if to a Participant or recipient of a Grant,
shall be delivered personally or mailed to the Participant or recipient of a Grant at the address appearing in the records of the
Company. Such addresses may be changed at any time by written notice to the other party given in accordance with this Section.

 

    	22

    	 

    

  

Section 12.11. Rights
to Employment or Other Service. Nothing in the Plan or in any Option or Grant granted pursuant to the Plan shall
confer on any individual any right to continue in the employ or other service of the Company (if applicable) or interfere in any
way with the right of the Company and its shareholders to terminate the individual’s employment or other service at any time.

 

Section 12.12. Exculpation
and Indemnification. To the maximum extent permitted by law, the Company shall indemnify and hold harmless the members
of the Board and the members of the Committee from and against any and all liabilities, costs and expenses incurred by such persons
as a result of any act or omission to act in connection with the performance of such person’s duties, responsibilities and
obligations under the Plan, other than such liabilities, costs and expenses as may result from the gross negligence, bad faith,
willful misconduct or criminal acts of such persons.

 

Section 12.13. No
Fund Created. Any and all payments hereunder to recipients of Grants hereunder shall be made from the general funds
of the Company and no special or separate fund shall be established or other segregation of assets made to assure such payments,
provided that bookkeeping reserves may be established in connection with the satisfaction of payment obligations hereunder. The
obligations of the Company under the Plan are unsecured and constitute a mere promise by the Company to make benefit payments in
the future, and, to the extent that any person acquires a right to receive payments under the Plan from the Company, such right
shall be no greater than the right of a general unsecured creditor of the Company.

 

Section 12.14. Additional
Arrangements. Nothing contained herein precludes the Company from adopting other or additional compensation or benefit
arrangements.

 

Section 12.15. Code
Section 409A Savings Clause.

 

(a)          It
is the intention of the Company that no Grant shall be “deferred compensation” subject to Section 409A of the Code,
unless and to the extent that the Committee specifically determines otherwise as provided below, and the Plan and the terms and
conditions of all Grants shall be interpreted accordingly.

 

(b)          The
terms and conditions governing any Grants that the Committee determines will be subject to Section 409A of the Code, including
any rules for elective or mandatory deferral of the delivery of cash or Common Stock pursuant thereto and any rules regarding treatment
of such Grants in the event of a Change in Control, shall be set forth in the applicable Agreement and shall comply in all respects
with Section 409A of the Code.

 

(c)          Following
a Change in Control, no action shall be taken under the Plan that will cause any Grant that the Committee has previously determined
is subject to Section 409A of the Code to fail to comply in any respect with Section 409A of the Code without the written consent
of the Participant.

 

    	23

    	 

    

 

Section 12.16. Captions.
The use of captions in the Plan is for convenience. The captions are not intended to provide substantive rights and shall not be
used in construing the terms of the Plan.

 

Section 12.17. Governing
Law. The laws of Delaware shall govern the plan, without reference to principles of conflict of laws.

 

Section 12.18. Execution.
The Company has caused the Plan to be executed in the name and on behalf of the Company by an officer of the Company thereunto
duly authorized as of this 27th day of January, 2014.

 

	 	TRANSGENOMIC, INC., a Delaware corporation
	 	 	 
	 	By:	/s/ Paul Kinnon
	 	Name: 	Paul Kinnon
	 	Title:	President and Chief Executive Officer

 

    	24Exhibit 10.1

 

 

 

 

REPURCHASE AGREEMENT

 

This REPURCHASE AGREEMENT
(this “Agreement”) dated as of January 27, 2014 is made by and among China Biologic Products, Inc., a Delaware
corporation (the “Company”), Ms. Siu Ling Chan, a Hong Kong resident (ID No. P725946(1), “Seller”)
and Mr. Lam Tung, a Hong Kong resident (ID No. P665194(5), “Seller Affiliate”). The Company, Seller and Seller
Affiliate are hereinafter referred to as the “Parties” and each a “Party”.

 

WHEREAS, Seller desires
to sell to the Company, and the Company desires to repurchase and acquire from Seller, an aggregate of 2,500,000 shares of common
stock (“Common Stock”), par value US$0.0001 per share, of the Company.

 

WHEREAS, after giving
effect to the transactions contemplated by this Agreement, Seller will still own 2,862,624 shares of Common Stock (the “Remaining
Shares”).

 

NOW THEREFORE, in consideration
of the foregoing and the mutual promises, covenants and agreements of the Parties contained herein, the Parties agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.1Definitions.
The following terms shall have the following meanings for purposes of this Agreement:

 

“Business
Day” means a day other than Saturday, Sunday or any day on which banks located in Hong Kong or the United States are
authorized or obligated to close.

 

“Change of
Control Transaction” means a transaction involving the sale of all or substantially all the assets of the Company;
any merger, consolidation or acquisition of the Company with, by or into another Person; or any change in the ownership of more
than 50% of the voting capital stock of the Company in one or more related transactions.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Government
Authority” means any government or political subdivision thereof, whether on a federal, central, state, provincial, municipal
or local level and whether executive, legislative or judicial in nature, including any agency, arbitrator, authority, board, bureau,
commission, court, department, official, tribunal or other instrumentality thereof.

 

“HK Court”
means the High Court of the Hong Kong Special Administrative Region, Court of First Instance.

 

“HK Injunction”
means the injunction issued by the HK Court in connection with the HK Lawsuit on transfer of shares of Common Stock by Seller.

 

“HK Lawsuit”
means the pending lawsuit in the HK Court against Seller and Seller Affiliate with respect to 5,178,962 shares of Common Stock
(Action No. 1424 of 2012).

 

    	1

    	 

    

 

“Law”
means any law, treaty, statute, ordinance, code, rule or regulation of any Government Authority or any Order.

 

“Order”
means any writ, judgment, decree, injunction, award or similar order of any Government Authority (in each such case whether preliminary
or final).

 

“Person”
means an individual, firm, corporation, partnership, association, limited liability company, union, trust or estate or any other
entity or organization whether or not having separate legal existence, including any Government Authority.

 

“Plaintiffs’
means the plaintiffs in the HK Lawsuit.

 

“Plaintiffs’
Agent” means Beijing Shengyuan Junhe Risk Management Consulting Co., Ltd. (北京盛元君和风险管理咨询有限公司),
the agent representing the Plaintiffs in the HK Lawsuit.

 

“Registrable
Securities” means: (i) the Remaining Shares and (ii) any securities issued or issuable upon any stock split, dividend
or other distribution, recapitalization or similar event, or any exercise price adjustment with respect to any of the Remaining
Shares; provided however, that once any such securities referred to in foregoing clauses (i) or (ii) have been sold pursuant to
a Registration Statement, they shall no longer constitute Registrable Securities.

 

“Registration
Statement” means any registration statement required to be filed in accordance with this Agreement to register the
Remaining Securities including the prospectus, amendments and supplements to such registration statement or prospectus, including
pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated
by reference therein.

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such
Rule.

 

“Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such
Rule.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Seller Options”
means the options to purchase Common Stock that were granted to Seller by the Company.

 

“Settlement
Completion” means the completion of (i) the Closing; (ii) the closing of the transactions contemplated by the Settlement
Agreement and the other actions contemplated thereby, including full payment of the settlement amount under the Settlement Agreement
and the withdrawal by the Plaintiffs of all their claims in the HK Lawsuit; and (iii) the revocation by the HK Court of the HK
Injunction.

 

    	2

    	 

    

 

“Settlement
Agreement” means the settlement agreement entered into by and among Seller, Seller Affiliate, the Plaintiffs and the
Plaintiffs’ Agent on January 27, 2014.

 

“Settlement
Amount” means the aggregate amount to be paid by Seller and Seller Affiliate to the Plaintiffs and the Plaintiffs’
Agent under Section 1.1 of the Settlement Agreement to settle the HK Lawsuit.

 

“US$”
means the United States Dollar, the lawful currency of the United States of America.

 

ARTICLE II

REPURCHASE OF SHARES

 

2.1Repurchase
and Sale of Shares. At the Closing, and subject to and upon the fulfillment of the terms and conditions set forth in this Agreement,
the Company shall repurchase from Seller, and Seller shall sell and deliver to the Company, 2,500,000 shares of Common Stock (the
“Subject Shares”) for US$28.00 per Subject Share. The aggregate purchase price for the Subject Shares shall
be US$70,000,000 (the “Purchase Price”).

 

2.2Closing.

 

(a)The closing of
the repurchase of the Subject Shares contemplated hereunder (the “Closing”) shall take place on a Business Day
in the Hong Kong offices of Wilson Sonsini Goodrich & Rosati P.C. at Unit 1001, 10/F, Henley Building, 5 Queens Road Central,
Hong Kong, or at such other location as may be mutually agreed by the Parties, as soon as practicable but no later than three Business
Days following the date upon which all of the conditions set forth in Article VI, other than those that by their nature may
only be satisfied or waived at the Closing, have been satisfied or waived as of the date of the Closing, or such other date as
the Parties may mutually agree (the “Closing Date”).

 

(b)At the Closing,
Seller shall deliver or cause to be delivered the following documents to the Company or the transfer agent of the Company against
payment of the Purchase Price by the Company: (i) original of one or more certificate(s) evidencing the Subject Shares (the
“Share Certificates”), accompanied by duly executed irrevocable stock powers in such form as required by the
transfer agent, with any required transfer stamps affixed thereto (the “Stock Powers”), (ii) a duly executed
letter of instruction from Seller, in such form as required by the transfer agent, instructing the transfer agent to register the
Subject Shares as having been repurchased by the Company (the “Transfer Instruction”), and (iii) such other
documents as may be reasonably required by the transfer agent in order to complete the repurchase and acquisition of the Subject
Shares from Seller by the Company (together with the Share Certificates, the Stock Powers and the Transfer Instruction, the “Seller
Deliverables”).

 

(c)At the Closing,
Seller and the Company shall take the following actions in the sequence set out below:

 

(i)upon the Company’s
inspection of the Seller Deliverables to its satisfaction, the Company shall deliver or cause to be delivered (A) the Settlement
Amount to the Plaintiffs and the Plaintiffs’ Agent by initiating a wire transfer of immediately available funds to one or
more accounts designated in writing by Wilkinson & Grist, the Hong Kong counsel to the Plaintiffs and the Plaintiffs’
Agent in the HK Lawsuit, no later than five (5) Business Days prior to the Closing Date, and (B) an amount equal to (x) the
Purchase Price minus (y) the Settlement Amount to Seller by initiating a wire transfer of immediately available funds to
one or more accounts designated by Seller in writing no later than five (5) Business Days prior to the Closing Date; and

    	3

    	 

    

 

 

(ii)immediately
upon the Company’s presentation to Seller of the irrevocable instruction initiating the wire transfer(s) as set forth in
2.2(c)(i) above, Seller shall deliver the Seller Deliverables in accordance with Section 2.2(b).

 

For the avoidance of
doubt, the provisions under this Section 2.2(c) are intended to describe the agreed mechanics of the Closing only but the
Closing shall not be deemed to have consummated until all deliveries described in Section 2.2(b) shall have been made, including,
without limitation, receipt of the Purchase Price by Seller, the Plaintiffs and the Plaintiffs’ Agent, and all such deliverables
(including without limitation payment of the Purchase Price) shall be deemed to occur simultaneously and to be conditioned upon
each other.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF SELLER AND SELLER AFFILIATE

 

Seller and Seller Affiliate
hereby jointly and severally represent and warrant to the Company as of the date hereof and as of the Closing Date as follows:

 

3.1Authorization;
Enforcement; Validity. This Agreement has been duly and validly executed and delivered by Seller and Seller Affiliate, and
is a valid and binding obligation of Seller and Seller Affiliate enforceable against Seller and Seller Affiliate in accordance
with the respective terms herein.

 

3.2No Conflict.
Subject to compliance with the Settlement Agreement, the execution and delivery by Seller and Seller Affiliate of this Agreement,
and the performance by Seller and Seller Affiliate of their obligations hereunder, as of the date hereof do not and as of the Closing
Date will not (i) violate or contravene any provision of applicable Law, or (ii) violate or contravene, or require any
consent or other action by any Person under, constitute a default under, any agreement, contract or note binding upon Seller or
Seller Affiliate.

 

3.3Ownership
of Subject Shares. The Subject Shares have been duly authorized and validly issued and are fully paid and non-assessable. Other
than the transfer restrictions under the Settlement Agreement and the HK Lawsuit, (i) Seller is and on the Closing Date will
be the record and beneficial owner of the Subject Shares, free and clear of all security interests, claims (pending or threatened),
liens, pledges, charges, equities or other encumbrances, limitations or restrictions (including any restriction on the right to
vote, sell or otherwise dispose of such Subject Shares) (“Encumbrances”), and (ii) Seller has the legal
right and power, and all authorization and approval required by law, to enter into this Agreement and to sell, transfer and deliver
the Subject Shares free and clear of all Encumbrances. The HK Lawsuit is the only adverse claim in respect of the Subject Shares’
title that Seller and Seller Affiliate are aware of.

 

    	4

    	 

    

 

3.4No Approvals.
Subject to compliance with the Settlement Agreement, no filing with, or consent, approval, authorization, order, registration,
qualification or decree of, any court or governmental authority or agency, domestic or foreign, is necessary or required for the
execution and delivery of this Agreement, the performance by Seller and Seller Affiliate of their obligations hereunder or in connection
with the sale and delivery of the Subject Shares hereunder or the consummation of the transactions contemplated by this Agreement.

 

3.5Seller’s
Status. Seller is a sophisticated investor with sufficient investment or financial knowledge and experience as well as knowledge
in the Company, which enable her to properly evaluate the risks and merits of her participation in the transaction contemplated
hereunder and protect her own interest in connection therewith. Seller has made a determination based on her own independent review
and such professional advice as she deems appropriate that (i) her consideration of the sale of the Subject Shares to the
Company in the transaction contemplated hereunder is fully consistent with her financial needs, objectives and condition, and (ii) the
terms of the transaction contemplated hereunder have been agreed through arm’s-length negotiation and are fair to Seller.

 

3.6Purchase
Price. Seller fully understands that the Purchase Price may be less than the current trading price of the Subject Shares and
believes that, due to the size of Seller’s holdings, any attempt to dispose of the Subject Shares on the public market would
most likely drive the market price down and result in an average price per share that is less than an amount equaling (x) the
Purchase Price divided by (y) the number of Subject Shares.

 

3.7Settlement
Agreement. The Settlement Agreement has been duly and validly executed and delivered by each of the parties thereto, is effective,
and constitutes valid and binding obligations of Seller and Seller Affiliate and enforceable against Seller and Seller Affiliate
in accordance with the terms therein. The effectiveness and enforceability of the Settlement Agreement is not dependent or conditioned
upon any Government Authority approval or consent.

 

3.8Information.
Seller acknowledges that (i) Seller and Seller Affiliate have received and reviewed the Company’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2012, Quarterly Report on Form 10-Q for the quarters ended March 31, 2013,
June 30, 2013 and September 30, 2013 respectively and the Company’s Current Reports on Form 8-K filed with
the SEC after September 30, 2013, and the other filings made by the Company with the SEC, (ii) Seller was a director
of the Company and had access to material non-public information relating to the Company, and (iii) Seller and Seller Affiliate
are familiar with the Company’s business and financial conditions. Seller further acknowledges that the Company has informed
Seller that the Company may have material non-public information regarding the Company (“MNPI”). Such MNPI,
when it is eventually available and disclosed publicly, may cause the market price of the Company’s common stock to increase
or decrease substantially. Seller understands, based on her experience, the disadvantage to which Seller is subject due to the
disparity of information between the Company and Seller. Notwithstanding this, Seller desires to engage in the transaction contemplated
hereunder. Seller hereby waives any future claim that Seller might have based on the failure by the Company to disclose the MNPI
and expressly releases the Company from any and all liabilities arising from the Company’s failure to disclose such MNPI,
and Seller agrees to make no claim against the Company in respect of the transaction contemplated under this Agreement related
to the Company’s failure to disclose such MNPI to Seller, except with respect to representations, warranties, covenants and
agreements expressly made by the Company in this Agreement. Based on such information and investigation as Seller has deemed appropriate
and without reliance upon any MNPI that the Company may have, Seller has independently made her own analysis and decision to enter
into the transaction contemplated hereunder. Except for the representations, warranties and agreements of the Company expressly
set forth in this Agreement, Seller is relying exclusively on her own sources of information, investment analysis and due diligence
(including such professional advice as she deems appropriate) with respect to the transaction contemplated hereunder.

 

    	5

    	 

    

 

3.9Foreign Corrupt
Practices Act. Any proceeds received by Seller under this Agreement will be received by Seller as principal and not as agent
for others, and no part of any payment hereunder will be paid or assigned to or shared with any third party except for the payment
of lawful costs and expenses. Neither Seller nor Seller Affiliate is an officer or employee of, or acting in an official capacity
for, any Government Entity (as defined below), any political party or official thereof, or any candidate for political office (individually
and collectively, a “Government Official”). Neither Seller nor Seller Affiliate is holding or using any Subject
Shares on behalf of any Government Official or Government Entity. “Government Entity” as used in this Section 3.9
means any government or any department, agency or instrumentality thereof, including any entity or enterprise owned or controlled
by a government or a public international organization.

 

3.10Joint Obligors.
Seller and Seller Affiliate hereby represent and warrant that they collectively act as one party under this Agreement and shall
be jointly and severally liable for any of their obligations hereunder.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company hereby
represents and warrants to Seller and Seller Affiliate as of the date hereof and as of the Closing Date as follows:

 

4.1Authorization;
Enforcement; Validity. The execution and delivery by the Company of this Agreement, the performance by the Company of its obligations
hereunder and the consummation by the Company of the transactions contemplated hereby have been duly authorized by all requisite
corporate actions on the part of the Company. This Agreement has been duly and validly executed and delivered by the Company, and
is a valid and binding obligation of the Company enforceable against the Company in accordance with the respective terms herein.

 

4.2No Conflict.
The execution and delivery by the Company of this Agreement, and the performance by the Company of its obligations hereunder, as
of the date hereof do not and as of the Closing Date will not (i) violate or contravene any provision of applicable Law or
Order, (ii) violate or contravene the certificate of incorporation or by-laws of the Company, or (iii) violate or contravene,
or require any consent or other action by any Person under, constitute a default under, any agreement, contract or note binding
upon the Company.

 

    	6

    	 

    

 

4.3No Approvals.
No filing with, or consent, approval, authorization, order, registration, qualification or decree of, any court or governmental
authority or agency, domestic or foreign, is necessary or required for the execution and delivery of this Agreement, the performance
by the Company of its obligations hereunder or the consummation of the transactions contemplated by this Agreement.

 

4.4Funds.
The Company will have sufficient funds lawfully available to pay the Purchase Price at Closing and effect the repurchase of the
Subject Shares contemplated hereby.

 

4.5Independent
Investigation. The Company acknowledges that neither Seller nor Seller Affiliate has made any representation or warranty except
as expressly set forth in Article III of this Agreement and in making its decision to enter into this Agreement and to consummate
the transactions contemplated hereby, the Company has relied solely on its own investigation and the express representations and
warranties of Seller and Seller Affiliate set forth in Article III of this Agreement.

 

ARTICLE V

COVENANTS AND AGREEMENTS

 

5.1Restrictive
Legends. To the extent any of the Remaining Shares are represented by a certificate that bears a legend restricting transfer
of such Remaining Shares, the Company shall use its commercially reasonable efforts to cause the Company’s transfer agent
to remove such restrictive legend and provide Seller with one or more certificates for such Remaining Shares as instructed by Seller
free from any restrictive legends. The Company hereby acknowledges that neither Seller nor Seller Affiliate is an “affiliate”
of the Company as the term is defined under Rule 144.

 

5.2Transfer
of Remaining Shares. The Company agrees that, after the Settlement Completion, Seller may transfer all or any portion of the
Remaining Shares in one or more transactions (including, for the avoidance of doubt, initially transferring all the Remaining Shares
to a company organized in the British Virgin Islands directly or indirectly wholly owned by a daughter of Seller and Seller Affiliate)
so long as such transfer(s) shall be in compliance with applicable Laws and the transfer restriction set forth below in this Section
5.2. The Company shall use its commercially reasonable efforts to assist with such transfer(s), including causing the Company’s
transfer agent to cooperate with such transfer(s). Notwithstanding anything to the contrary contained herein, Seller shall not,
and shall cause her permitted assignee not to, sell or transfer, directly or indirectly, any Remaining Shares to any company that
engages in the plasma related business in China or controlling shareholder(s) of any such company (collectively, “Restricted
Transferees”) without the prior approval by the board of directors of the Company. For the avoidance of doubt, the foregoing
transfer restriction shall not apply to the sale or transfer of the Remaining Shares to a Restricted Transferee in connection with
or as part of a Change of Control Transaction.

    	7

    	 

    

 

 

5.3Registration
Rights. As a material inducement to Seller to enter into this Agreement, the Company shall, upon a request from Seller or Seller’s
permitted assigns after the Settlement Completion, use commercially reasonable efforts to prepare and file with the Commission
a Registration Statement covering the resale of all Registrable Securities for an offering to be made on a continuous basis pursuant
to Rule 415. If, after the Settlement Completion, the Company proposes to file a registration statement under the Securities Act
providing for a public offering of the Company’s securities, the Company shall notify Seller or Seller’s permitted
transferee of the proposed filing and afford Seller or Seller’s permitted assigns an opportunity to include in such registration
statement all or any part of the Registrable Securities then held by Seller or Seller’s permitted assigns.

 

5.4Seller Options.
As a further material inducement to Seller to enter into this Agreement and notwithstanding anything to the contrary in any other
agreement or arrangement between Seller and the Company prior to the date of this Agreement, the Company agrees to allow Seller
to exercise the Seller Options in one or more transactions at any time following the Closing but prior to the date that one month
following the Closing. For the avoidance of doubt and without limiting the generality of the foregoing, during such period Seller
shall not be restricted or prevented from exercising the Seller Options by any trading blackout window imposed by the Company (under
its insider trading policy or otherwise). Any securities received by Seller as a result of her due exercise of the Seller Options
shall be considered Remaining Shares for the purposes of this Agreement.

 

5.5Further Cooperation.
Subject to the terms and conditions provided herein, each of the Parties shall use commercially reasonable efforts to promptly
take, or cause to be taken, all necessary actions proper under applicable Laws, to obtain consents or provide notices or effect
registrations and filing or remove impediments necessary to consummate the transactions contemplated hereby as promptly as practicable
following the date hereof. Each Party shall execute and deliver at the Closing documents required to be executed and delivered
by it as Closing conditions, shall take all steps necessary and proceed diligently and act in good faith to satisfy each condition
in Article VI and shall not take or fail to take any action that could reasonably be expected to result in the non-fulfillment
or delay of any such condition.

 

5.6Exclusivity.
Without the prior written consent of the Company, during the period starting from the date hereof and ending on the earlier date
of (x) the Long Stop Date (as defined below), and (y) the date when this Agreement is terminated in accordance with Section 8.1(a)
(the “Exclusive Period”), neither Seller nor Seller Affiliate, or any of their agents, representatives or advisors
shall contact, discuss or negotiate with any third party (other than in connection with the performance by Seller and Seller Affiliate
under the Settlement Agreement or as required by any Law or Order under the HK Lawsuit) with respect to (i) any transaction
relating to the sale, acquisition, exchange, pledge, or transfer of any securities of the Company held by Seller; or (ii) any
contract, agreement, arrangement, understanding or other commitments relating to potential disposal, voting, settlement or other
arrangements in relation to shares of Common Stock held by Seller.

 

    	8

    	 

    

 

During the Exclusive
Period, Seller and Seller Affiliate shall not, and shall cause their agents, representatives and advisors not to, take any action
to initiate, contact, induce, solicit, encourage, participate or assist any Person other than the Company and its affiliates in
any offer, inquires, discussions, proposals or negotiations in connection with any transaction, contract, agreement, arrangement
or commitments referred to above other than in connection with the performance by Seller and Seller Affiliate under the Settlement
Agreement or as required by any Law or Order under the HK Lawsuit. During the Exclusive Period, Seller shall not sell, transfer
or otherwise dispose or subject to any Encumbrance, any shares of Common Stock registered under the name of Seller, except that
such restriction shall not apply to any sale of such shares by Seller in accordance with the Order of any court of competent jurisdiction.

 

5.7Confidentiality.
Except as otherwise required by applicable Law, or regulations of stock exchange, or otherwise permitted by this Agreement, the
Company, on the one hand, and Seller and Seller Affiliate, on the other hand, shall not disclose to any third party any content
or information in connection with this Agreement and the transactions contemplated hereby, or non-public information relating to
the other Party (“Confidential Information”) without the prior consent of the other Party and shall keep Confidential
Information strictly confidential. The Company may disclose Confidential Information to its and its affiliates’ directors,
officers, managers, employees, investors and potential investors and the Company, Seller and Seller Affiliate may disclose Confidential
Information to their respective professional advisers, accountants or lawyers on a need-to-know basis; provided, however, that
the disclosing Party shall ensure that such Persons are subject to the same confidentiality obligation as they were under this
Agreement. Notwithstanding anything herein to the contrary, the Parties acknowledge that (i) Seller may be required to file
with the SEC such schedules and forms as may be required under Section 13(d) and Section 16 of the United States Securities
Exchange Act of 1934, as amended (the “Exchange Act”), as applicable and (ii) the Company may be required
to file with the SEC such forms as may be required under the Exchange Act, each of which may need to disclose information with
respect to the transactions contemplated hereby and contain as an exhibit thereto a copy of this Agreement, and nothing contained
in this Section ‎5.7 is intended to limit or restrict such ability to file
such schedules and forms or any amendments thereto. To the extent practicable and permitted by applicable Law, prior to Seller’s
or the Company’s disclosure of Confidential Information to a Government Authority or stock exchange (including Seller’s
or the Company’s disclosure to the SEC), Seller or the Company shall notify each other in advance of such disclosure and
shall obtain each other’s consent with respect to the contents of such disclosure, which consent shall not be unreasonably
withheld or delayed.

 

5.8No Claim
by Seller or Seller Affiliate. Following Closing, which shall have occurred in accordance with the terms and conditions of
this Agreement, Seller and Seller Affiliate hereby irrevocably waive their right to, and undertake that they shall not, make any
claim (whether directly or indirectly through third parties) or take any other action against the Company, its and its affiliates’
directors, officers, employees, shareholders, owners, representatives, agents or advisors, for any reason or cause, other than
with respect to any inaccuracy in or breach of any representation or warranty of the Company under this Agreement, in connection
with the Subject Shares, this Agreement or the transactions contemplated hereby.

 

5.9Stock-Splits,
Reclassification or Reorganization. If after the date hereof and prior to Closing, the number of Common Stock is increased
or decreased as a result of a stock dividend, a subdivision or split-up of Common Stock, a consolidation, combination, reverse
stock split, reorganization or reclassification of Common Stock, a merger with or into or consolidation with another corporation
undertaken by the Company, or any other similar event, the number of Subject Shares to be sold by Seller hereunder and the Purchase
Price for such Subject Shares shall be appropriately and equitably adjusted to reflect the intent of the agreement set forth in
Section 2.1.

 

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5.10Performance
of Settlement Agreement. Seller and Seller Affiliate shall, jointly and severally, duly perform all of their obligations under
the Settlement Agreement.

 

5.11Delivery
of Share Certificates. Seller and Seller Affiliate shall use commercially reasonable efforts to cause the Share Certificates
to be delivered to the Company or the transfer agent of the Company on or prior to the Closing. The Company shall use its commercially
reasonable efforts to, upon the receipt by the Company or the Company’s transfer agent of the relevant affidavit of lost
stock certificate, assist Seller in obtaining a replacement certificate for Seller’s lost stock certificate (Certificate
No. 819) representing 215,000 shares of Common Stock or cancel such lost certificate and reissue to Seller a new certificate representing
such shares of Common Stock, including using its commercially reasonable efforts in causing the Company’s transfer agent
to waive any requirement for bond money from Seller in connection with such replacement or reissuance certificate.

 

ARTICLE VI

CONDITIONS TO CLOSING

 

6.1Conditions
to Seller’s Obligations. The obligation of Seller to proceed with the Closing is subject to the fulfillment, at or before
the Closing, of each of the following conditions (all or any of which may be waived in whole or in part by Seller jointly in their
sole discretion):

 

(a)Representations
and Warranties. Each of the representations and warranties made by the Company in this Agreement shall be true and correct
in all respects on and as of the Closing Date as though such representation or warranty was made on and as of the Closing Date.

 

(b)Performance.
The Company shall have performed and complied with each agreement, covenant and obligation required by this Agreement to be so
performed or complied with by it in all material respects at or before the Closing.

 

(c)Injunctions;
Illegality. No provision of any applicable Law or Order shall restrain, enjoin or otherwise prohibit the consummation of the
Closing.

 

(d)Settlement
Agreement. The Settlement Agreement shall be effective and valid.

 

6.2Conditions
to the Company’s Obligations. The obligation of the Company to proceed with the Closing is subject to the fulfillment,
at or before the Closing, of each of the following conditions (all or any of which may be waived in whole or in part by the Company
in its sole discretion):

 

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(a)Representations
and Warranties. Each of the representations and warranties made by Seller and Seller Affiliate in this Agreement shall be true
and correct in all respects on and as of the Closing Date as though such representation or warranty was made on and as of the Closing
Date.

 

(b)Performance.
Seller and Seller Affiliate shall have performed and complied with each agreement, covenant and obligation required by this Agreement
to be so performed or complied with by Seller and Seller Affiliate at or before the Closing.

 

(c)Injunctions;
Illegality. No provision of any applicable Law shall restrain, enjoin or otherwise prohibit the consummation of the Closing.
The injunction order issued on May 31, 2013 by the HK Court prohibiting Seller from disposing of, charging, encumbering, pledging,
transferring, diminishing the value of or otherwise dealing with the shares of Common Stock held in Seller’s name shall have
been lifted.

 

(d)Settlement
Agreement. The Settlement Agreement shall be effective and valid.

 

ARTICLE VII

INDEMNIFICATION

 

7.1Indemnification
by Seller and Seller Affiliate. Seller and Seller Affiliate shall indemnify the Company and each of its and its affiliates’
directors, officers, employees, shareholders, owners, representatives, agents and advisors (collectively, the “Indemnified
Parties”) and save and hold each of them harmless against any direct losses (the “Losses”) suffered,
incurred or paid by the Indemnified Parties (including reasonable legal fees), arising from, as a result of or in connection with:
(i) any failure of any representation or warranty made by Seller and Seller Affiliate in Article III to be true and correct
in all respects as of the date hereof and as of the Closing Date; (ii) any breach of any covenant or agreement by Seller or
Seller Affiliate contained in this Agreement; (iii) the HK Lawsuit or the Settlement Agreement or (iv) any other claims or
actions with respect to Seller’s ownership of the Subject Shares.

 

7.2Limitation.

 

(a)The aggregate
amount of all Losses for which Seller and Seller Affiliate shall be liable pursuant to Section 7.1 shall not exceed 110% of
the Purchase Price.

 

(b)Net payments by
Seller and Seller Affiliate pursuant to Section 7.1 in respect of any Losses shall be limited to the amount of any liability
or damage that remains after deducting therefrom any insurance proceeds and any indemnity, contribution or other similar payment
actually received by the Indemnified Parties in respect of any such claim. The Company shall, and shall procure the other Indemnified
Parties to, use its or their commercially reasonable efforts to recover under insurance policies or indemnity, contribution or
other similar agreements, if any, for any Losses and shall promptly refund any such recovery received by the Indemnified Party
to Seller and Seller Affiliate.

 

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(c)In no event shall
Seller or Seller Affiliate be liable to any Indemnified Party for any punitive, incidental, consequential, special or indirect
damages, including Loss of profit or opportunity.

 

7.3Exclusive
Remedies. Subject to Section 8.7, the Company acknowledges and agrees that its sole and exclusive remedy with respect to any
and all claims for any breach of any representation, warranty, covenant, agreement or obligation of Seller and Seller Affiliate
set forth herein, shall be pursuant to the indemnification provisions set forth in this Article VII.

 

ARTICLE VIII

GENERAL PROVISIONS

 

8.1Termination.

 

(a)This Agreement
may be terminated and the transactions contemplated by this Agreement may be abandoned at any time prior to the Closing:

 

(i)by a written
agreement between the Parties;

 

(ii)by the Company
or Seller if the Closing shall not have occurred by the date that is two (2) months following the date hereof (the “Long
Stop Date”); provided that the right to terminate this Agreement under this Section 8.1(a)(ii) shall not be available
to any Party whose failure to fulfill any obligation (including without limitation the obligations under Section ‎5.5)
under this Agreement shall be the cause of the failure of the Closing to occur on or before such date;

 

(iii)by the Company
if there has been a breach of any material covenant or a breach of any material representation or warranty or other agreement contemplated
hereunder of Seller or Seller Affiliate, which breach would cause the failure of any condition precedent set forth in Section 6.2;

 

(iv)automatically
upon completion of transfer of any Subject Shares by Seller to any third party pursuant to the Order of a court of competent jurisdiction
after the date hereof; or

 

(v)automatically
upon termination of the Settlement Agreement.

 

(b)In the event of
termination of this Agreement as provided in Section 8.1(a), this Agreement shall forthwith become void, and there shall be no
liability or obligation on the part of the Parties hereto and, as applicable, the officers, directors and shareholders of the Company;
provided that (i) each Party shall remain liable for any breaches of this Agreement or in any other instruments delivered pursuant
to this Agreement prior to its termination; and (ii) the provisions of Section ‎5.7 and this Article VIII shall
remain in full force and effect and survive any termination of this Agreement. Notwithstanding anything to the contrary in this
Agreement, the Company agrees that neither Seller nor Seller Affiliate shall be held liable in the event that this Agreement is
terminated pursuant to Section 8.1(a)(iv).

 

    	12

    	 

    

 

8.2Amendment.
This Agreement may be amended and any right hereunder extended or waived) by the Parties at any time by execution of an instrument
in writing signed on behalf of each Party.

 

8.3Expenses
and Fees; Taxes. Unless otherwise agreed among the Parties, all fees and expenses incurred in connection with the transactions
contemplated by this Agreement, including all legal, accounting, financial advisory, consulting and all other fees and expenses
of third parties incurred by a Party in connection with the negotiation and effectuation of the terms and conditions of this Agreement
and the transactions contemplated hereby, shall be the obligation of the respective Party incurring such fees and expenses. Each
Party shall comply with all applicable tax Law and be responsible for and pay all of its own taxes and government levies as required
under applicable Law.

 

8.4Notices.
All notices and other communications hereunder shall be in writing and shall be deemed given when delivered personally or by commercial
messenger or courier service, or mailed by registered or certified mail (return receipt requested) or sent via facsimile or email
(with acknowledgment of complete transmission) to the Parties at the following addresses or at such other address for a Party as
shall be specified by like notice); provided, however, that notices sent by mail will not be deemed given until received:

 

If to Seller and/or
Seller Affiliate, to:

 

Mr. Tung Lam

Ms. Siuling Chan

c/o Dorsey & Whitney LLP

88 Queensway

Suite 3008 One Pacific Place

Hong Kong

Email: lam.tung@hotmail.com

Attention: Catherine X. Pan-Giordano, Esq.

 

If to the Company, to:

 

China Biologic Products, Inc.

18th Floor, Jialong International Building

19 Chaoyang Park Road

Chaoyang District, Beijing 100125

People’s Republic of China

Fax: +86-10-65983222

Attention: Chief Financial Officer

 

8.5Counterparts;
Facsimiles. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement
and shall become effective when one or more counterparts have been signed by each Party and delivered to the other Parties, it
being understood that all Parties need not sign the same counterpart for it to be effective among the Parties. A facsimile, telecopy
or other reproduction of this Agreement may be executed by one or more Parties hereto and delivered by such Party by facsimile
or any similar electronic transmission device pursuant to which the signature of or on behalf of such Party can be seen. Such execution
and delivery shall be considered valid, binding and effective for all purposes.

    	13

    	 

    

 

8.6Severability.
In the event that any provision of this Agreement or the application thereof, becomes or is declared by a court of competent jurisdiction
to be illegal, void or unenforceable, the remainder of this Agreement will continue in full force and effect and the application
of such provision to other Persons or circumstances will be interpreted so as reasonably to effect the intent of the Parties. The
Parties further agree to replace such void or unenforceable provision of this Agreement with a valid and enforceable provision
that will achieve, to the extent possible, the economic, business and other purposes of such void or unenforceable provision.

 

8.7Specific
Performance. The Parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement
were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the Parties
shall be entitled to seek an injunction or injunctions without the need to post any bond or other financial assurances in order
to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof in any court of the United States
or any state, province or other locale, both U.S. and non-U.S., having jurisdiction, this being in addition to any other remedy
to which they are entitled at law or in equity.

 

8.8Governing
Law; Dispute Resolution. This Agreement shall be governed by and construed in accordance with the laws of New York State, without
regard to the principle of conflict laws thereunder. All disputes between the Parties arising out of or relating to this Agreement
shall be finally settled at the Hong Kong International Arbitration Centre (the “Centre”) in accordance with
the Rules of Arbitration of the Center by one arbitrator appointed in accordance with said Arbitration Rules. The place of arbitration
shall be in Hong Kong. The arbitration shall be conducted in English. The resolution of any dispute by arbitration pursuant to
this Section 8.8 shall be non-appealable, final, binding and conclusive on the Parties to such dispute and may be enforced
and entered as a judgment in any court of law with jurisdiction thereof. Notwithstanding the foregoing, any Party shall be free
to seek interim or permanent equitable or injunctive relief, or both, from any court having jurisdiction to grant the same.

 

8.9Entire Agreement;
No Third Party Beneficiaries; Assignment. This Agreement and the documents and instruments and other agreements among the Parties
hereto referenced herein: (a) constitute the entire agreement among the Parties with respect to the subject matter hereof and supersede
all prior agreements and understandings both written and oral, among the Parties with respect to the subject matter hereof; (b)
are not intended to confer upon any other Person any rights or remedies hereunder; and (c) shall not be assigned by operation of
law or otherwise.

 

8.10No Strict
Construction. The language used in this Agreement will be deemed to be the language chosen by the Parties to express their
mutual intent, and no rules of strict construction will be applied against any Party.

 

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IN WITNESS WHEREOF,
the Parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year
first above written. 

 

	 	China Biologic Products, Inc.
	 	 
	 	By: 	/s/ David (Xiaoying) Gao	 
	 	Name:	David (Xiaoying) Gao
	 	Title: 	Chief Executive Officer

 

    	15

    	 

    

IN WITNESS WHEREOF,
the Parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year
first above written. 

 

	 	Siu Ling Chan
	 	 
	 	/s/ Siu Ling Chan	 
	 	 	 
	 	 	 
	 	 	 
	 	Lam Tung	 
	 	 	 
	 	/s/ Lam Tung	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 

 

 

 

 

 

 

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