Document:

Blueprint

 

 

[***] = Confidential Information has been
omitted and filed separately with the Securities and Exchange
Commission. 

Confidential
treatment has been requested with respect to the omitted
information.

 

CONTRIBUTION AGREEMENT (351)

 

            

This Contribution
Agreement (this “Agreement”) is
entered into as of August 25, 2017 (the “Effective
Date”), among TacticGem LLC, a Delaware limited
liability company (the “Company”),
Monopar Therapeutics Inc., a Delaware corporation
(“Monopar”), Gem
Pharmaceuticals, LLC, an Alabama limited liability company
(“Gem”) and
Tactic Pharma, LLC, an Illinois limited liability company
(“Tactic”, and
collectively with Gem, the owners of 100% of the issued and
outstanding limited liability company interests of the Company).
The Company, Monopar, Tactic, and Gem are sometimes hereinafter
referred to collectively as the “Parties”, and
each individually as a “Party”.

 

BACKGROUND INFORMATION

 

A.           The
parties have entered into that certain Contribution Agreement by
and among the Company, Tactic, and Gem, dated as of August 24, 2017
(the “721
Contribution Agreement”) whereby Gem contributed to
the Company all of Gem’s right, title and interest in and to
the property and assets described on Exhibit A attached hereto
(collectively, the “Gem Contributed
Assets”) and Tactic contributed to the Company the
Tactic Contributed Assets (as defined in the 721 Contribution
Agreement).

 

B.           Pursuant
to this Agreement and subsequent to the contributions contemplated
by the 721 Contribution Agreement, the Company will contribute (the
“Company
Contribution”) to Monopar all of the Company’s
right, title and interest in and to the Gem Contributed Assets in
exchange for 3,055,394.12 shares of Monopar’s common stock.
Subsequent to the transactions contemplated by the 721 Contribution
Agreement and this Agreement, the Company will own 7,166,667 shares
of Monopar common stock, which will constitute 79.70% of the total
number of shares outstanding of Monopar. By a separate agreement
(the “Investor Contribution
Agreement”), entered into on or before this Agreement,
between Monopar and a third party investor (the “Investor”),
the Investor will contribute $2,000,004 to Monopar in exchange for
333,334 shares of common stock (the “Investor
Contribution”, and together with the Company
Contribution, the “351
Transaction”). The Company and the Investor,
collectively, will own at least 80% of the total combined voting
power of all classes of stock entitled to vote and at least 80% of
the total number of shares of all classes of stock of Monopar
subsequent to the 351 Transaction.

 

C.           It
is the intent of the Parties hereto that the 351 Transaction
constitutes a tax-free transfer pursuant to Section 351 of the
Internal Revenue Code of 1986, as amended.

 

 

 

STATEMENT OF AGREEMENT

 

NOW,
THEREFORE, in consideration of the mutual covenants herein
contained and for other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the Parties
agree as follows:

 

ARTICLE I

COMPANY CONTRIBUTION

 

§1.1           

Contribution. As of the Effective Date, (a) the Company hereby
contributes the Gem Contributed Assets to Monopar, and (b) Monopar
hereby accepts the Gem Contributed Assets, and assumes and
agrees to perform all obligations, restrictions and conditions
which are applicable to the Gem Contributed Assets to the extent
such obligations arise or accrue from and after the Effective Date
(except as otherwise provided in this Agreement). Monopar does not
assume or otherwise accept responsibility for any Liabilities (as
defined in the 721 Agreement) or obligations of Gem, Tactic, or the
Company, provided that Monopar will assume the obligations of Gem
accruing or arising after the Effective Date under the agreements
listed on the attached Exhibit B (the
“Assigned
Contracts”), with Gem being responsible for all such
liabilities and obligations accruing or arising prior to the
Effective Date.

 

§1.2           Shares
Issued. In exchange for the Gem
Contributed Assets, Monopar shall issue 3,055,394.12 shares
of its common stock (the “Issued Stock”)
to the Company. The Company shall hold
such shares as a separate block of stock that may be specifically
indentified as separate from the other 4,111,272.88 shares of
Monopar common stock held by the Company.

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES

 

§2.1           

Representations and Warranties
of the Company, Tactic, and Gem. The representations and warranties of the Company,
Tactic, and Gem set forth in Article 5 of the 721 Agreement are
hereby made by them to Monopar and incorporated by reference in
this Agreement as if fully rewritten herein.

 

§ 2.2                      

Representations and Warranties
of Monopar. Monopar hereby represents and warrants to each
of the other Parties hereto that the statements contained in
this §2.2 are, except as would not be reasonably expected to
have a material adverse effect, true and correct as of the
Effective Date.

 

(a)           

Organization;
Authority; Enforceability.
Monopar is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware, and
has full corporate power and authority to execute and deliver this
Agreement and perform its obligations hereunder. This Agreement
constitutes the legal, valid, and binding obligation of Monopar,
enforceable against Monopar in accordance with its terms, subject
to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium, and other similar laws relating to
and/or affecting creditors’ rights generally and to general
equitable principles. The Issued Stock, when issued pursuant to the
terms and conditions of this Agreement, will be duly authorized,
validly issued, fully paid, and non-assessable, and issued in
compliance with all applicable federal and state securities
laws.

 

 

 

(b)           Non-Contravention.
Neither the execution and delivery of this Agreement, nor the
consummation of the transactions contemplated hereby, will (i)
violate any constitution, statute, regulation, rule, injunction,
judgment, order, decree, ruling, charge, or other restriction of
any government, governmental agency, or court to which
Monopar is subject or
any provision of Monopar’s Organizational Documents or any
other governing document of Monopar or (ii) conflict with, result
in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate,
terminate, modify, or cancel, or require any notice under any
agreement, contract, lease, license, instrument, or other
arrangement to which any assets of Monopar are subject (or result
in the imposition of any Encumbrance upon any assets of
Monopar).

 

(c)           Private
Placement Memorandum of Monopar. The Private Placement Memorandum of Monopar dated
August 22, 2017, which includes the private placement memorandum
dated March 25, 2017 (the “PPM”)
contains information about Monopar. The PPM was prepared for an
offering limited to accredited investors and does not contain all
of the information that would be included in a registration
statement filed with the SEC. Monopar is not aware of any
inaccurate statements of fact in the PPM.

 

(d)           Capitalization.
(i) The authorized capital of Monopar as of July 31, 2017 consisted
of 40,000,000 shares of common stock, $0.001 par value per share,
and 8,675,919.61 shares of common stock outstanding
(non-dilutive); (ii) on a fully
diluted basis, accounting for all issued options, there were
9,231,439.61 shares of common stock outstanding as of July 31,
2017; (iii) following the surrender of 2,888,727.12 shares of
Tactic’s Monopar common stock back to Monopar, Monopar would
have shares outstanding of 5,787,192.5 shares of common stock
(non-dilutive), and 6,342,712.5 shares of common stock on a
fully-diluted basis; and (iv) 700,000 shares of Common Stock have
been reserved for issuance under Monopar’s 2016 Stock
Incentive Plan, of which 555,520 shares are subject to issued and
outstanding options. All outstanding shares of Monopar common stock
have been duly authorized and validly issued, are fully paid
and non-assessable, and to Monopar’s knowledge, issued in
compliance with all applicable federal and state securities
laws.

 

 

(e)           

Disclosure. No representation
or warranty or other statement made by Monopar in this Agreement,
or otherwise in connection with the transactions contemplated
hereby contains any material untrue statement or omits to state a
material fact necessary to make any of them, in light of the
circumstances in which it was made, not misleading in any adverse
respect.

 

 

 

(f)           No
Other Representations and Warranties. Except for the
representations and warranties set forth in this Agreement, each of
the Company, Tactic, and Gem acknowledges and agrees that no
representation or warranty of any kind whatsoever, express or
implied, at law or in equity, is made or shall be deemed to have
been made by or on behalf of Monopar to the Company, Tactic, or
Gem, and Monopar hereby disclaims any such representation or
warranty, whether by or on behalf of Monopar. 

 

 

 

ARTICLE III

POST-CLOSING MATTERS

 

§3.1           Tax
Matters. Each Party
shall cooperate fully, as and to the extent reasonably requested by
any other Party, in connection with the preparation and filing of
any Tax Return (as defined in the 721 Agreement) and any audit with
respect to Tax (as defined in the 721 Agreement), with respect to
the Gem Contributed Assets. Such cooperation shall include the
retention and, upon request, the provision of records and
information which are reasonably relevant to any such Tax Return or
audit or any tax planning and shall also include making employees
available on a mutually convenient basis to provide additional
information and explanation of any material provided hereunder.
Each Party further agrees, upon request, to use its commercially
reasonable efforts to obtain any certificate or other document from
any taxing authority or any other individual, corporation,
partnership, limited liability company, association, trust or any
other entity or organization as may be necessary to mitigate,
reduce or eliminate any Tax that could be imposed (including any
sales, use, documentary, stamp, gross receipts, registration,
transfer, conveyance, excise, recording, license, stock transfer
stamps and other similar taxes and fees arising out of or in
connection with or attributable to the transactions effected
pursuant to this Agreement (collectively, “Transfer
Taxes”; but for purposes of clarification, Transfer
Taxes do not include any income taxes incurred by or allocable to
any party in connection with or
attributable to the transfer of the Gem Contributed Assets, and the
transactions affected pursuant to this Agreement). The
Company shall bear and be responsible for the timely payment of,
and to such extent shall indemnify and hold harmless Monopar
against any Transfer Taxes, and Gem and Tactic shall each in turn
bear and be responsible for the timely payment of, and to such
extent shall indemnify and hold harmless the Company against, fifty
percent (50%) of such Transfer Taxes so paid.

 

§3.2           Consulting
Relationship with Gem Personnel. Each of Gerald M. Walsh and Richard D. Olson shall
become consultants of Monopar at the Effective Date and Monopar
will execute a consulting agreement with such individuals in
substantially the form of the attached Exhibit
C.

 

§ 3.3                      Indemnification.

 

(a) Notwithstanding any investigation
conducted at any time with regard thereto, by or on behalf of the
Company, Tactic, Gem or Monopar, all representations, warranties,
covenants and agreements of the Parties in this Agreement
(including those incorporated by reference) and in any other
documents executed or delivered by any of them pursuant to this
Agreement or in connection with the transactions contemplated by
this Agreement (collectively, the “Additional
Documents”) shall survive the execution, delivery, and
performance of this Agreement and the Additional
Documents.

 

 

 

(b) (i)
Each Party shall defend, indemnify and hold harmless the other
Parties, and their directors, officers, employees and
representatives from and against any and all Damages asserted
against, resulting to, imposed upon, or incurred or suffered by
such Party, directly or indirectly, as a result of or arising from
any Indemnifiable Claims as set forth in Sections 9.2, 9.3, 9.4, 9.5, 9.7, 9.8 and 9.9 of
the 721 Contribution Agreement (the “Indemnification
Provisions”), which are
hereby incorporated by reference; and (ii) Monopar shall
defend, indemnify and hold harmless each of the Parties from and
against any and all Damages asserted against, resulting to, imposed
upon, or incurred or suffered by Gem, directly or indirectly, as a
result of or arising from any material breaches of the
representations and warranties of Monopar in §2.2 pursuant to
the Indemnification Provisions.
Indemnification by any Party to this Agreement shall be governed by
the Indemnification Provisions. References to the
“Agreement” in such Sections shall be interpreted to
refer to this Agreement in the context of Indemnifiable Claims
under this Agreement.

 

§3.4. Tax Treatment. Each of the Parties
acknowledges and agrees that the contribution of the Gem
Contributed Assets to Monopar is intended to qualify for treatment
as an exchange described in Section 351(a) of the Internal Revenue
Code of 1986, as amended (the "Code"). All Parties agree to
prepare or cause to be prepared their Tax Returns in accordance
with the immediately preceding sentence, including complying with
the record keeping requirements of Treasury Regulation Section
1.351-3.

 

ARTICLE
IV

REGISTRATION RIGHTS

 

§ 4.1 Registration
Rights.

 

(a)
Monopar shall, upon direction by the Company at any time after
Monopar has been subject to the reporting requirements of the
Securities and Exchange Act of 1934 for at least 12 months (the
“Initial
Holding Period”), file with the U.S. Securities and
Exchange Commission (“SEC”) a Form S-3 or other
appropriate form of registration statement, covering the resale of
any Monopar common stock by the Company, Gem, or Tactic and shall
use its best efforts to have such registration statement declared
effective as soon as practical thereafter. During the period that
the registration statement is effective, Monopar shall make all
public filings required in the normal course of its business and
necessary to maintain the effectiveness of the registration
statement during the period of resale of any Monopar common stock
by the Company, Gem, or Tactic; provided that the Company, Gem, and
Tactic agree that Monopar may, from time to time, inform the
Company, Gem, and Tactic that it may not sell Monopar common stock
until further notice if circumstances exist which have not been
disclosed publicly and the omission of which, in the reasonable
opinion of Monopar, would result in a material omission of fact in
the registration statement. The Company, Gem, and Tactic agree that
upon receipt of such notice and until otherwise informed by
Monopar, the Company, Gem, and Tactic shall not sell, or permit to
be

 

 

 

[***] = Confidential Information has been
omitted and filed separately with the Securities and Exchange
Commission. 

Confidential
treatment has been requested with respect to the omitted
information.

 

sold,
the Monopar common stock. The Company, Gem, and Tactic acknowledge
that Monopar cannot guarantee receipt of approval from the SEC, and
in the event that approval is not granted, the Company, Gem, and/or
Tactic, as applicable, must hold the Monopar common stock until
such time as the Company, Gem, and/or Tactic may be permitted to
sell the Monopar common stock pursuant to applicable securities
laws or exemptions therefrom. Monopar shall pay the costs to
prepare and file the registration statement, including the
registration fee due to the SEC and all legal and accounting
expenses and the cost of compliance with the securities or blue sky
laws in the State of Delaware or any other state. The Company, Gem,
or Tactic, as applicable (the party which is the seller of such
Monopar common stock) shall pay all other costs of sale of the
Monopar common stock, including any underwriting fees, commissions
on sale or stock transfer taxes resulting from the sale of the
Monopar common stock. In the event that a registration statement
for the resale of the Monopar common stock is not approved by the
SEC, Monopar shall, upon written request of the Company, prepare
and file a registration statement on Form S-1 registering for sale
any of the common stock and use its best efforts to have such
registration statement declared effective as soon as practical
thereafter. Monopar shall pay the costs to prepare and file such
registration statement, including the registration fee due to the
SEC and all legal and accounting expenses and the cost of
compliance with the securities or blue sky laws in the State of
Delaware or any other State. Additionally, the Company, Gem, and
Tactic shall receive the piggyback registration rights set forth in
(b) below.

 

 (b)           At
any time following the Effective Date (but without obligation to do
so) if Monopar proposes to register any of its common stock under
the Securities Act of 1933, as amended (the “Securities
Act”) in connection with the public offering of such
securities solely for cash (other than a registration effected
solely to implement an employee benefit plan or a transaction to
which Rule 145 of the Securities Act is applicable or a
registration using any form that does not permit secondary sales of
securities), Monopar will give written notice to the Company, Gem,
and Tactic of its intention to do so and, upon written request of
the Company, Gem, or Tactic, delivered to Monopar within 15 days
after receipt of notice, Monopar will use its best efforts at its
own expense (but excluding any underwriting commissions and stock
transfer taxes accruing to any common stock registered by the
Company, Gem, or Tactic) to cause to be registered under the
Securities Act the shares of common stock specified by the Company,
Gem, or Tactic, subject to (1) the right of other holders of
restricted stock to include their stock in any such registration
prior to the inclusion of the common stock, including but not
limited to rights of parties acquiring shares of common stock under
any agreement that Monopar will register the resale thereof, (2)
the Company’s acceptance of the terms of any underwriting
agreement entered into or proposed to be entered into between
Monopar and any underwriter of such offering, and (3) if the sole
or managing underwriter of such offering determines that the
aggregate number of shares of common stock which have been
requested by the Company, Gem, or Tactic to be included in the
registration should be limited to a lesser number or not included
due to market conditions, then Monopar may only sell the lesser
portion, if any. If a limitation is imposed on the number of common
stock includable by Monopar in any such offering, Monopar shall
give the Company, Gem, and Tactic, as applicable, prompt written
notice thereof.

 

§4.2              Form
10. Monopar shall
exert its commercially reasonable best efforts to cause to be filed
with the Securities and Exchange Commission (the
“SEC”),
under the Securities Exchange Act of 1934 (the “1934 Act”), a
registration statement on Form 10 (or another appropriate form), to
register Monopar’s shares of common stock, $0.001 par value
per share, within [***] after the Effective Date.

 

 

ARTICLE V

MISCELLANEOUS PROVISIONS

 

§5.1           Severability.
Any term or provision of this Agreement that is invalid or
unenforceable in any situation in any jurisdiction (as determined
by a court) shall not affect the validity or enforceability of the
remaining terms and provisions hereof or the validity or
enforceability of the offending term or provision in any other
situation or in any other jurisdiction.

 

 

 

§5.2           Notices.
All notices, requests, demands, claims, and other communications
hereunder shall be made as set forth in Section 11.1 of the 721
Contribution Agreement.

 

§5.3           Construction.
The parties have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question
of intent or interpretation arises, this Agreement shall be
construed as if drafted jointly by the parties and no presumption
or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any of the provisions of this
Agreement. Any reference to any federal, state, local, or foreign
statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires
otherwise.

 

§5.4           Entire
Agreement; Amendment; Waivers, etc. This Agreement
(including its schedules and exhibits), along with the 721
Agreement and the Investor Contribution Agreement constitutes the
entire agreement among the Parties and supersedes all prior
agreements and understandings, agreements or representations by or
among the Parties, written and oral, with respect to their subject
matter. No amendment, supplement, waiver or termination of this
Agreement is binding unless executed in writing by the Party to be
bound thereby. No waiver of any of the provisions of this Agreement
constitutes a waiver of any other provision of this Agreement,
whether or not similar, unless otherwise expressly
provided.

 

§5.5           Successors
and Assigns. Except as otherwise expressly permitted in this
Agreement, the Parties agree not to assign this Agreement or any of
the rights, interests, or obligations hereunder to any other person
or entity (whether in whole or in part, whether directly or
indirectly, and whether voluntarily or, to the fullest extent
permitted by applicable law, involuntarily), except with the prior
written consent of the other Party, which consent such Party may
grant or withhold in its sole discretion, and which consent, if
granted, does not imply any other consent in the future. Any
purported assignment in violation of this Section will be void and
of no legal effect. This Agreement will inure to the benefit of and
be binding upon each Party to this Agreement and each Party’s
successors, heirs, permitted assigns, and legal
representatives.

 

§5.6           Captions.
The headings of the Sections and Articles of this Agreement are
inserted for convenience only and shall not constitute a part
hereof or affect in any way the meaning or interpretation of this
Agreement.

 

§5.7           Counterparts.
This Agreement may be executed in any number of separate
counterparts (including facsimile and electronic transmission),
each of which upon execution and delivery will constitute an
original and all of which taken together will constitute one
agreement.

 

§5.8           Governing
Law; Consent to Jurisdiction and Venue.

 

(a)           THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY
CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE
STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE
LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE
APPLIED.

 

 

 

(b)           Each of
the Parties hereto irrevocably submits itself to the exclusive
jurisdiction of the United States District Court of the Northern
District of Illinois (unless such court lacks jurisdiction under
Applicable Law, in which case each Party submits itself exclusively
to the jurisdiction of the state courts of Illinois sitting in Cook
County) for the purpose of any Action arising out of or relating to
this Agreement and/or the transactions contemplated
hereby.

 

(c)           Each
of the Parties hereto irrevocably agrees that all claims with
respect to any such Action arising out of or relating to this
Agreement and/or the transactions contemplated hereby shall be
heard and determined exclusively in United States District Court of
the Northern District of Illinois (unless such court lacks
jurisdiction under Applicable Law, in which case each Party submits
itself exclusively to the jurisdiction of the state courts of
Illinois sitting in Cook County).

 

 

§ 5.9                      WAIVER
OF JURY TRIAL. AS A SPECIFICALLY BARGAINED INDUCEMENT FOR
EACH OF THE PARTIES TO ENTER INTO THIS AGREEMENT (EACH PARTY HAVING
HAD OPPORTUNITY TO CONSULT COUNSEL), EACH PARTY EXPRESSLY WAIVES
THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT, ACTION OR PROCEEDING
RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR ANY
TRANSACTIONS RELATED HERETO OR CONTEMPLATED HEREBY.

 

 

§ 5.10                      Defined
Terms. Any terms not defined in this Agreement shall have
the meanings assigned to them in the 721 Agreement.

 

 

The
Parties have duly executed this Agreement as of the date first
above written.

 

 

	

MONOPAR THERAPEUTICS, INC.

	

TACTICGEM LLC

 

By: CDR
Pharma LLC

Its:
Manager

 

	

By:/s/ Chandler
Robinson

Chandler Robinson, CEO

	

By: /s/ Chandler Robinson

Its:
Member of the Manager

	

 

 

TACTIC PHARMA, LLC

 

	

 

 

GEM PHARMACEUTICALS, LLC

	

By: /s/ Chandler
Robinson

Its: Manager

	

By: /s/ Arthur
Klausner

Arthur Klausner, CEO

 

 

 

 

 

 

 

 

 

EXHIBIT
A

 

 

Gem
Contributed Assets

 

See
Attached.

 

 

 

 

[***] = Confidential Information has
been omitted and filed separately with the Securities and Exchange
Commission. 

Confidential
treatment has been requested with respect to the omitted
information.

 

“Gem
Contributed Assets” means, collectively, the following (each
as defined herein):

 

1.           
$5,000,000 in cash.

2.            

All right, title
and interest, tangible and intangible, in and to the following
(individually and collectively, the
“Compounds”):

a.            

GPX-100

b.            

GPX-150

c.            

GPX-160

d.            

GPX-170

e.            

GPX-180

3.            

The Related
Assets

4.            

All of the Gem
Contributed Intellectual Property

5.            

All of the Gem
Contracts including:

a.            

License
Agreements

b.            

Research and
Collaboration Agreements

c.            

Manufacturing,
Clinical Research and Compound Storage Agreements

6.            

All inventory of
product, including raw materials, work in process and finished
product

7.            

All works-made-for
hire agreements relating to the Compounds.

8.            

After Closing, Gem
will use reasonable good faith efforts to cause Monopar and the
Company to be added as additional insureds to its product liability
and comprehensive general liability insurance policies (the
“Gem Insurance Policies”). Such rights as additional
insureds shall be transferred to each of Monopar and the Company
and shall be considered Gem Contributed Assets.

 

B.            

“GPX-150”
means:

 

1.
[***]

2.
[***]

3. Any
[***]

4.
[***]

5. Any
formulation of [***]

6. Any
uses of [***]

 

C.            

“GPX-160”
means:

 

1.            

[***]

2.            

[***]

3.            

[***]

4.            

Any formulation of
[***]

5.            

Any uses of
[***]

 

D.            

“GPX-100”
means:

 

1.
[***]

2.
[***]

3.
[***]

4.
[***]

5. Any
formulation of [***]

6. Any
uses of [***]

 

 

 

[***] = Confidential Information has
been omitted and filed separately with the Securities and Exchange
Commission. 

Confidential
treatment has been requested with respect to the omitted
information.

 

E.            

“GPX-170”
means:

 

1.
[***]

2.
[***]

3. Any
[***]

4.
[***]

5. Any
formulation of [***]

6. Any
uses and formulations of [***] and

 

F.            

“GPX-180”
means:

 

1.
[***]

2.
[***] and [***].

3. Any
[***]

4.
[***]

5. Any
formulation of [***]

6. Any
uses and formulations of [***]

 

G.            

“Related
Assets” means:

 

1.            

All assets related
to Gem’s use and development of the Compounds (including
without limitation [***] for any purpose, all assets used by Gem,
and necessary or useful to Gem as of Closing, in conducting
research, development, testing, marketing, selling, manufacturing
and/or distributing the Compounds and any other analogs derived
from them and their use (including without limitation [***] or any
other analogs derived from GPX-100, GPX-150, GPX-160, GPX-170, or
GPX-180)) as such activity is presently conducted and as such
activity is presently planned to be conducted, including, but not
limited to, all inventory of Compounds, all other inventory,
agreements, contracts, licenses, Intellectual Property related to
or useful for the Business, intellectual property assignments, ,
orphan drug or other regulatory designations, pending orphan drug
or other regulatory applications, trademarks, service marks and all
goodwill associated therewith, pre-clinical and clinical data,
manufacturing equipment; anthracycline molecules that,
[***].

2.            

The
[***].

3.            

Manufacturing
agreements.

4.            

Written reports,
regulatory documents, case reports, and manufacturing
methods.

5.            

All FDA and other
regulatory authorities filings and scientific studies relating to
the Compounds and the Related Assets including the
following:

a.            

Orphan drug
designation [***]

b.            

[***] GPX-150
[***]. All relevant filings and approvals in the US for GPX-150
have been made to this IND and are part of the IND record. [Date
February 7, 2007]

 

 

 

[***] = Confidential Information has
been omitted and filed separately with the Securities and Exchange
Commission. 

Confidential
treatment has been requested with respect to the omitted
information.

 

 

H.            

“Gem
Contributed Intellectual Property” has the meaning set forth
in Section 10 of the Agreement. “Intellectual Property”
means:

 

All
domestic and foreign (1) patents and patent applications, and all
patents issuing thereon, including without limitation utility,
model and design patents and certificates of invention, together
with all reissue patents, patents of addition, divisionals,
provisional applications, renewals, continuations,
continuations-in-part, substitutions, additions, extensions,
confirmations, re-examinations, and all foreign counterparts of the
forgoing which are in the process of being prepared, and all
inventions and improvements disclosed therein including the right
to claim priority benefit of or to any of the foregoing
(collectively, “Patents”); (2) trademarks, service
marks, trade dress, trade names, brand names, designs, logos,
commercial symbols and corporate names, and all registrations,
applications and goodwill associated therewith (collectively,
“Trademarks”); (3) copyrights and all works of
authorship, whether or not registered or copyrightable, and all
applications, registrations, and renewals in connection therewith
(collectively, “Copyrights”); (4) confidential and
proprietary information, including without limitation, trade
secrets, know-how, formulae, ideas, concepts, discoveries,
innovations, improvements, results, reports, information and data,
research, laboratory and programmer notebooks, methods, procedures,
proprietary technology, operating and maintenance manuals,
engineering and other drawings and sketches, customer lists,
supplier lists, pricing information, cost information, business
manufacturing and production processes and techniques, designs,
specifications, and blueprints (collectively, “Trade
Secrets”); and (5) all other intellectual property and
proprietary rights in any form or medium known or later devised,
all copies and tangible embodiments of the foregoing, and all
goodwill associated with any of the foregoing; and (6) the right to
bring suit, the right to claim and retain all damages and/or seek
other remedies for the past, present, and future infringement
and/or misappropriation of and the right to collect royalties and
other payments under or on account of any of the foregoing; in each
case whether registered or unregistered.

 

U.S.
patents and patent applications within the Gem Contributed
Intellectual Property:

 

1.            

[***].

2.            

[***].

3.            

[***].

4.            

[***].

5.            

[***].

6.            

[***].

7.            

[***].

8.            

Patent pending
[***], filed [***]: covers the composition of [***] and the
[***].

9.            

[***]

 

 

 

[***] = Confidential Information has
been omitted and filed separately with the Securities and Exchange
Commission. 

Confidential
treatment has been requested with respect to the omitted
information.

 

Foreign
patents and patent applications within the within the Gem
Contributed Intellectual Property:

 

	

Country

	

Patent
#

	

Based
on U.S. Patent No.

	
 [***]

	
 [***]

	
 [***]

 

 

 

[***] = Confidential Information has
been omitted and filed separately with the Securities and Exchange
Commission. 

Confidential
treatment has been requested with respect to the omitted
information.

 

	

	

	

 

	
 [***]

	

[***]

	

[***]

 

    Copyrights
and Trade Secrets within the Gem Contributed Intellectual
Property:

 

1.            

Analysis of [***]
for GPX-150

2.            

Analysis of
[***]for GPX-150

3.            

Analysis of [***]
for GPX-100

 

           Unpatented
inventions within the Gem Contributed Intellectual
Property:

 

           1.
GPX-160, GPX-170 and GPX-180

 

           Trademarks
within the Gem Contributed Intellectual Property:

 

          
1.            Gem
Pharmaceuticals (unregistered

2.           
On [***], Gem submitted an International Non-Proprietary Name
(INN)request to the World Health Organization for GPX-150, 
[***]

 

I.            

Gem
Contracts

 

License
Agreements (no active license agreements)

 

1.            

Non-binding term
sheet with Vitel Laboratories, expired on August 1,
2017.

2.            

Coronado
Biosciences agreement, expired on October 8, 2010.

3.            

[AOI, expired on
February 5, 2003]

 

Assigned
Research and Collaboration Agreements (no active agreements other
than [***])

 

1.
[***]:

-- two
Service Agreements, each expired April 30, 2016; fully completed
and fully paid

--
Service Agreement expired August 14, 2017; work complete but final
report due to be delivered soon after Closing. Gem agrees to
promptly deliver to Monopar said report upon receipt, to pay in
full all amounts owed under said Agreement, and if requested, to
use reasonable good faith efforts to obtain a consent from BSU in
substantially the same form as Exhibit E to the Contribution
Agreement.

 

 

 

 

[***] = Confidential Information has
been omitted and filed separately with the Securities and Exchange
Commission. 

Confidential
treatment has been requested with respect to the omitted
information.

 

--Service
Agreement expiring August 31, 2017; work complete and final report
has been delivered. Gem agrees to pay in full all amounts owed
under said Agreement.

2.
[***], expired on June 24, 2015.

3.
Agreements with [***] as reflected in proposals of [***] dated
April 21, 2016, June 24, 2016, July 5, 2016, and December 6,
2016.

Assigned
Manufacturing, Clinical Research and Compound Storage
Agreements

1.            

Manufacturing (All
manufacturing agreements other than [***] have
expired)

 

a.            

Tetrionics, expired
January, 2005.

b.            

SAFC, expired
August, 2015.

c.            

[***], dated May
31, 2017.

d.            

Bioserv, expired
January, 2016.

 

2.            

Clinical Research
Organizations (no active agreements)

 

a.            

Premier Research ,
expired on May 14, 2014.

b.            

Clinical Trial Data
Services, expired on March 26, 2017.

 

3.            

Compound
Storage

a.            

Clinical Supplies
Management, Inc., dated October 16, 2014.

 

 

 

[***] = Confidential Information has
been omitted and filed separately with the Securities and Exchange
Commission. 

Confidential
treatment has been requested with respect to the omitted
information.

 

Other
Gem Contracts

 

1.            

Renewal Service
Agreement between Gem Pharmaceuticals, LLC and CPAGlobaldated
August 31, 2016.

 

J.            

All inventory of
product, including raw materials, work in process and finished
product

 

1.            

Inventory of
GPX-150 and GPX-100 located in [***]

●            

200 vials of
GPX-150 product (about 50 mg/vial = about 10 grams of GPX-150 mixed
with lactose)

●            

6.8 grams of
GPX-150 from a batch made in 2006

2.            

Inventory of
clinical-grade GPX-150 located at CSM in [***]

●            

GPX-150 Powder
14.11 grams – expired 17 Nov 2016

●            

GPX-150 50mg vial
406 vials – expired 31 Oct 2016

3.            

Inventory of
GPX-150 (approximately 15 grams) located at [***]

 

 

 

 

 

EXHIBIT
B

 

Assigned
Contracts

 

 

1.
Master Services Agreement by and between Gem and Clinical Supplies
Management, Inc., dated October 1, 2014

 

2.
Renewal Service Agreement between Gem Pharmaceuticals, LLC and CPA
Global dated August 31, 2016

 

 

 

 

EXHIBIT
C

 

Form of
Consulting Agreement

 

See
attached.

 

 

 

 

[***] = Confidential Information has
been omitted and filed separately with the Securities and Exchange
Commission. 

Confidential
treatment has been requested with respect to the omitted
information.

 

CONSULTING AGREEMENT

 

This
Consulting Agreement (herein referred to as “Agreement”) is made and entered
into as of this day of , 2017 (the “Effective Date”), by and between
Monopar Therapeutics, Inc. (herein referred to as
“Monopar”), a
Delaware corporation, located at 5 Revere Dr., Suite 200,
Northbrook, IL 60062, and Gerald M. Walsh (herein referred to as
“Jerry”) who
resides at [***] (each herein referred
to as “Party” and collectively as
“Parties”).

 

RECITALS

 

WHEREAS, Jerry
specializes in the fields of pharmacology, toxicology, intellectual
property, and pharmaceutical management.

 

WHEREAS, Monopar
desires to contract with Jerry to provide certain consultation
services, as requested by Monopar, and Jerry wishes to provide such
services to Monopar, upon the terms and conditions set forth
below.

 

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

 

1. 

Consulting Arrangement. Jerry
agrees to perform consulting services as described herein upon the
terms and conditions herein set forth.

 

2.

Term of Agreement. Subject to
the provision for early termination set forth below in Section 5 of this Agreement, this
Agreement shall commence as of the Effective Date and shall
continue from the Effective Date through one year later (the “Term”).

 

3.

Duties of Jerry.

 

3.1 

Specific Duties. Jerry shall
provide consulting services to Monopar, such duties to include: See
Appendix A (herein referred to as the “Services”).

 

3.2 

Obligations. Jerry shall be
diligent in the performance of Services, and be professional in his
commitment to meeting his obligations hereunder. Jerry represents
and warrants that he is not party to any other existing agreement,
which would prevent him from entering into this Agreement or which
would adversely affect this Agreement. Jerry may be engaged or
employed in any other business, profession, or other activity but
Jerry shall not perform Services for any other individuals or
entities in direct competition with Monopar, within the scope of
Services under this Agreement, during the Term of this Agreement,
and for two years after its termination, except as provided for by
mutual written agreement of the Parties. Jerry shall not perform
services for any party which would require or facilitate the
unauthorized disclosure of any confidential or proprietary
information of Monopar.

 

 

 

[***] = Confidential Information has
been omitted and filed separately with the Securities and Exchange
Commission. 

Confidential
treatment has been requested with respect to the omitted
information.

 

3.3 

Reporting. Jerry will report to
Andrew P. Mazar, Ph.D. and liase with Chandler Robinson, M.D.,
Patrice Rioux, M.D. and/or any other assigned Monopar employee or
consultant as may be designated in writing by Monopar.

 

3.4            

Compensation. Monopar shall pay
Jerry as follows:

 

a.
[***] per month payable within thirty (30) days of the end of each
month.

 

b.
[***] per hour for consulting work that exceeds fifteen (15) hours
per month, and has been approved by Monopar. Jerry will document
all hours, including the initial fifteen (15) hours, and invoice
Monopar monthly for the hours above the first fifteen (15)
hours.

 

Jerry
shall not be reimbursed, and is responsible for the facilities
and equipment necessary to perform Services required under
this Agreement.

 

4.

Reimbursement of Expenses.
Monopar shall promptly reimburse Jerry for all direct expenses
incurred in providing the Services to Monopar pursuant to this
Agreement, including travel, meals and lodging as long as
Monopar’s prior approval has been obtained. Invoices
submitted by Jerry pursuant to this Section 4 shall also include a detail of
all reimbursable expenses incurred during the period covered by
such invoice as well as receipts. Per diem for food will be
reimbursed as per IRS specified rates in effect at that
time.

 

5.

Termination of Agreement - Failure to
perform. In the event that Jerry ceases to perform the
Services or breaches his obligations as required hereunder for any
reason and such cessation or breach remains uncured for ten (10)
business days following Monopar’s written notice thereof to
Jerry, Monopar shall have the right to immediately terminate this
Agreement upon notice to Jerry and to enforce such other rights and
remedies under this Agreement as it may have as a result of said
breach.

 

In the
event that Monopar breaches its obligations under this Agreement
and such breach remains uncured for ten (10) business days
following Jerry’s written notice thereof to Monopar, Jerry
shall have the right to immediately terminate this Agreement upon
notice to Monopar and to enforce such other rights and remedies
under this Agreement as it may have as a result of said
breach.

 

 

 

6.

Certain Liabilities. It is
understood and agreed that Jerry shall be acting as an independent
contractor and not as an agent or employee of, or partner, joint
venturer or in any other relationship with Monopar. Jerry will be
solely responsible for all insurance, employment taxes, FICA taxes
and all obligations to governments or other organizations for its
employees arising out of this consulting assignment. Jerry
acknowledges that no income, social security or other taxes shall
be withheld or accrued by Monopar for Jerry’s benefit. Jerry
assumes all risks and hazards encountered in the performance of
duties under this Agreement. Unless Monopar has provided prior
written approval, Jerry shall not use any sub-contractors to
perform obligations hereunder. Jerry shall be solely responsible
for any and all injuries, including death, to all persons and any
and all loss or damage to property, which may result from
performance under this Agreement.

 

 

 

7.

Indemnities. Jerry hereby
agrees to indemnify Monopar and hold Monopar harmless from and
against all claims (whether asserted by a person, firm, entity or
governmental unit or otherwise), liabilities, losses, damages,
expenses, charges and fees which Monopar may sustain or incur
arising out of or attributable to any gross negligence or willful
misconduct by Jerry, as applicable, in the performance under this
Agreement. Monopar hereby agrees to indemnify Jerry and hold Jerry
harmless from and against all liabilities, losses, damages,
expenses, charges and fees which Jerry may sustain or incur by
reason of any claim which may be asserted against Jerry by any
person, firm, corporation or governmental unit and which may arise
out of or be attributable to any gross negligence or willful
misconduct by Monopar or its employees or contractors, as
applicable, in the performance of this Agreement.

 

8.

Warranties. The Services shall
be performed in a professional manner, consistent with industry
standards. In performing the Services under this Agreement, Jerry
shall not make any unauthorized use of any confidential or
proprietary information of any other party or infringe the
intellectual property rights of any other party. Monopar represents
and warrants that it has full right, power, and authority to enter
into this Agreement and to perform its obligations
hereunder.

 

9.

Arbitration. Any controversy or
claim between Monopar and Jerry arising out of or relating to this
Agreement, or the breach thereof, shall be submitted to arbitration
in accordance with the rules of the American Arbitration
Association. The site of the arbitration shall be Chicago, IL, and
except as provided herein the arbitration shall be conducted in
accordance with the Rules of the American Arbitration Association
prevailing at the time the demand for arbitration is made
hereunder. At least one member of the arbitration panel shall be a
financial expert knowledgeable in the area of biopharmaceutical
corporate compliance. Judgment upon any award rendered by the
arbitrator(s) may be entered in any court of competent jurisdiction
and shall be binding and final. The cost of arbitration shall be
borne by the losing Party, as determined by the
arbitrator(s).

 

10.

Confidential Information. Jerry
has executed the attached confidential disclosure agreement
referenced herein as Appendix
B prior to commencement of the Services. Jerry hereby
represents and warrants that the obligations thereunder shall be
binding.

 

11. 

Inventions. Jerry agrees that
all ideas, developments, suggestions and inventions conceived or
reduced to practice, as a result of Services provided by Jerry
under this Agreement, shall be the exclusive property of Monopar
and shall be promptly communicated and assigned to Monopar. Jerry
shall require any other parties contracted by Jerry to disclose the
same to Jerry and to be bound by the provisions of this paragraph.
During the period of this Agreement and thereafter at any
reasonable time when called upon to do so by Monopar, Jerry shall
require any employees of or other parties contracted by Jerry to
execute patent applications, assignments to Monopar (or any
designee of Monopar) and other papers and to perform acts which
Monopar believes necessary to secure to Monopar full protection and
ownership of the rights in and to the services performed by Jerry
and/or for the preparation, filing and prosecution of applications
for patents or inventions made by any employees of or other parties
contracted by Jerry hereunder. The decision to file patent
applications on inventions made by any employees of or other
parties contracted by Jerry shall be made by Monopar and shall be
for such countries, as Monopar shall elect. Monopar agrees to bear
all the expense in connection with the preparation, filing and
prosecution of applications for patents and for all matters
provided in this paragraph requiring the time and/or assistance of
Jerry as to such inventions. Notwithstanding the foregoing, ideas,
developments, suggestions, and inventions conceived or reduced to
practice by Jerry that do not directly arise from Jerry’s
performance under this Agreement, shall be owned by
Jerry.

 

 

 

[***] = Confidential Information has
been omitted and filed separately with the Securities and Exchange
Commission. 

Confidential
treatment has been requested with respect to the omitted
information.

 

12. 

Miscellaneous.

 

12.1 

Notice. Any notices to be given
hereunder by either Party to the other may be effectuated, in
writing, by personal delivery, by electronic mail, or by mail,
registered or certified, postage prepaid, with return receipt
requested or by Federal Express. Mailed notices shall be addressed
to the parties at the following addresses:

 

If to
Monopar:                                   
Monopar Therapeutics, Inc

5
Revere Dr.

Suite
200

           

Northbrook, IL,
60062

Attention: Chandler
Robinson, M.D.

Email:
[***]

 

 

If to
Jerry:                                                      

Gerald
M.Walsh

           
           
           
           
           
           
    [***]

 

or at
such other addresses as either Monopar or Jerry may designate by
written notice to each other. Notices delivered personally shall be
deemed duly given on the date of actual receipt, mailed notices
shall be deemed duly given as of the fourth day after the date so
mailed, and electronic mail shall be deemed duly given upon
confirmation of receipt by recipient.

 

12.2 

Waiver of Breach. The waiver by
either Party to a breach of any provision in this Agreement cannot
operate or be construed as a waiver of any subsequent breach by
either Party.

 

12.3 

Severability. If any provision
of this Agreement is determined by a court of competent
jurisdiction to be invalid or unenforceable, that provision shall
be deemed modified to the extent necessary to make it valid or
enforceable, or if it cannot be so modified, then severed, and the
remainder of the Agreement shall continue in full force and effect
as if the Agreement had been signed with the invalid portion so
modified or severed.

 

 

 

12.4 

Choice of Law. This Agreement
has been made and entered into in the State of Illinois, and the
laws of such state, excluding its choice of law rules, shall govern the validity and
interpretation of this Agreement and the performance due hereunder.
The losing party in any dispute hereunder shall pay the
attorneys’ fees and disbursements of the prevailing
party.

 

12.5 

Integration. The drafting,
execution and delivery of this Agreement by the Parties have been
induced by no representations, statements, warranties or agreements
other than those expressed herein. This Agreement embodies the
entire understanding of the Parties, and there are no further or
other agreements or understandings, written or oral, in effect
between the Parties relating to the subject matter hereof unless
expressly referred to herein.

 

12.6 

Modification. This Agreement
may not be modified unless such is in writing and signed by both
Parties to this Agreement.

 

12.7 

Assignment. Jerry shall not be
permitted to assign this Agreement to any other person or entity
without the prior written consent of Monopar. Jerry hereby agrees
that Monopar shall be permitted to assign this Agreement to any
affiliate of Monopar. This Agreement shall be binding upon and
shall inure to the benefit of the successors and permitted assigns
of the parties.

 

12.8 

Survival. The provisions of
Sections 7, 8, 9, 10, and
11 shall survive expiration
or termination of this Agreement for any reason. Expiration or
termination of this Agreement shall not affect Monopar’s
obligations to pay any amounts that may then be due to
Jerry.

 

12.9 

Force Majeure. If Jerry’s
performance of his obligations under this Agreement is prevented or
delayed due to a flood, earthquake, war, terrorist act, revolution,
riot, or insurrection, Jerry shall not be deemed in breach of his
obligations under this Agreement or otherwise liable for any costs,
charges or losses sustained or incurred by Monopar, to the extent
arising directly from such force majeure event.

 

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement as
of the day and year first above written.

 

ACCEPTED
AND AGREED TO:

 

	

Gerald
M. Walsh

 

	
 

	

Monopar Therapeutics Inc

 

	
 

	
 

	
 

	

By: Individual

 

 

	
 

	

By: Chandler Robinson

 

Its: Chief Executive Officer

 

 

 

 

APPENDIX A

 

Services
include, but are not limited to, assisting the Monopar Management
team with the following:

 

1.            

Near and long term
planning of product development for existing Monopar drugs such as
Validive, ATN-658, GPX-150, GPX-160, GPX-170, and
GPX-180.

 

2.            

Developing near and
long term budgets for product development programs: preclicnal,
clinical, manufacturing, and related regulatory
affairs.

 

3.            

Designing,
managing, evaluating, and reporting for preclinical and clinical
studies and for manufacturing API and drug product.

 

4.            

Data storage and
retrieval for preclinical, clinical, manufacturing, and regulatory
programs.

 

5.            

Identifying and
evaluating suitable in-licensing drug products, including
evaluation of strength and scope of patent protection.

 

6.            

Identifying
patentable IP based on data from Monopar’s preclinical,
clinical, and manufacturing programs.

 

7.            

Creating
presentation content for Board Meetings, fund raising, and M&A
activities.

 

8.            

Evaluating
qualifications of employment candidates for Monopar.

 

9.            

Any other Services
required by Monopar.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix
B

 

 

See
executed CDA attached

 

  

 

 

[***] = Confidential Information has
been omitted and filed separately with the Securities and Exchange
Commission. 

Confidential
treatment has been requested with respect to the omitted
information.

 

 

MONOPAR THERAPEUTICS INC.

CONFIDENTIAL DISCLOSURE AGREEMENT

 

AGREEMENT
between the individual Gerald M. Walsh (“Recipient”)
and Monopar Therapeutics Inc.
(“Monopar”).

 

 

In
consideration for the mutual agreements contained herein and the
other provisions of this Agreement, the receipt of which is hereby
acknowledged by the parties, the parties hereto agree as
follows:

 

1. Scope of Confidential Information

 

“Confidential
Information” means, subject to the other provisions of this
Section:

 

(a) all
information, whether oral or written, disclosed by Monopar that is
described in Schedule A under “Description of Confidential
Information”. Confidential Information may relate to the
activities or property of Monopar or any of Monopar’s
members, directors, officers, employees, consultants, agents,
representatives or affiliated entities (collectively,
“Associated Persons”); and

 

(b) any
written material prepared by Recipient or Recipient’s
partners, directors, officers, employees, agents, representatives
or affiliated entities (collectively, “Associated
Persons”) containing any Monopar Confidential
Information.

 

“Confidential
Information” does not include information that: (i) was
available to Recipient (free of any confidentiality obligation in
favor of Monopar) prior to disclosure of such information by
Monopar to Recipient; (ii) is made available to Recipient from a
third party which (at the time of such availability) was not, to
Recipient’s knowledge, subject to a confidentiality
obligation with respect to such information; (iii) is made
available to third parties by Monopar without restriction on the
disclosure of such information, (iv) is or becomes available to the
public on or after the date of this Agreement (other than as a
result of disclosure prohibited by any confidentiality obligation
contained herein); or (v) is developed independently by Recipient
or its Associated Persons without reference to the Confidential
Information.

 

Recipient
agrees that it will not disclose to Monopar or to any of its
employees or consultants any confidential, proprietary, or trade
secret information, or any other form of confidential protectable
intellectual property, regardless of whether such information is
the property of Recipient itself or of some other individual or
organization.

 

2. Use and Disclosure of Confidential Information

 

(a)
Recipient agrees: (i) to preserve the confidentiality of
Confidential Information for [***] from the date of signing this
Agreement; (ii) to use and/or permit the use of Confidential
Information only for the purposes of, and to the extent necessary
for, evaluating a business relationship between the parties and, if
such a relationship is consummated, carrying out such relationship;
(iii) to disclose Confidential Information to, and to permit the
use of Confidential Information by, only such persons within
Recipient who Recipient reasonably determines need to know such
information in connection with the activities described in (ii)
above; and (iv) to use reasonable care to maintain the
confidentiality of Confidential Information, provided that such
care shall be at least as great as the precautions taken by
Recipient to protect its own confidential and/or proprietary
information.

 

(b)
Notwithstanding anything to the contrary herein, Recipient is free
to make (and this Agreement does not restrict) disclosure of any
Confidential Information in a judicial, legislative, or
administrative investigation or proceeding or to a government or
other regulatory agency; provided that, to the extent permitted by,
and practicable under, the circumstances, Recipient provides to
Monopar (i) prior notice of the intended disclosure or (ii) if
prior notice is not permitted or practicable under the
circumstances, prompt notice of such disclosure.

 

3. Certain Rights and Limitations

 

(a) All
Confidential Information shall remain the property of Monopar. The
provision of Confidential Information hereunder shall not transfer
any right, title or interest in such information to Recipient.
Monopar does not grant any express or implied right to Recipient to
or under Monopar’s patents, copyrights, trademarks, trade
secret information or other proprietary rights.

 

(b)
Recipient agrees to adhere to all applicable laws and regulations
relating to the export of technical data received
hereunder.

 

(c)
This Agreement imposes no obligations on either party to purchase,
sell, license, transfer or otherwise transact in any technology,
services or products. This Agreement does not create any agency or
partnership relationship between the parties hereto.

 

(d) All
information disclosed hereunder is without representation or
warranty of any kind whatsoever, including without limitation, any
representation or warranty as to accuracy or completeness, whether
express or implied.

 

4. Remedies

 

(a)
Upon Monopar’s reasonable request, Recipient agrees to return
promptly to Monopar all Confidential Information that is in writing
and in the possession of Recipient and, upon written request, to
certify the return or destruction (at Monopar’s option) of
all Confidential Information.

 

(b)
Recipient agrees that monetary damages may not be an adequate
remedy for improper disclosure or use of Confidential Information,
that Monopar, upon breach of this contract, shall be entitled to
such injunctive or equitable relief as may be deemed proper by a
court of competent jurisdiction, without waiving any other right or
remedy, and that Recipient shall not resist an application for such
relief on the ground that Monopar has an adequate remedy at
law.

 

5. Miscellaneous

 

 (a)
Except where expressly indicated otherwise, the words
“written” or “in writing” shall include,
but not be limited to, written or printed documents, electronic and
facsimile transmissions and computer disks or tapes (whether
machine or user readable).

 

(b) In
the event that any one or more of the provisions of this Agreement
will for any reason be held to be invalid, illegal or unenforceable
by a court of competent jurisdiction, the remaining provisions of
this Agreement will be unimpaired, and the invalid, illegal or
unenforceable provisions will be replaced by a mutually acceptable
provision, which being valid, legal or enforceable, comes closest
to the intention of the parties underlying the invalid, illegal or
unenforceable provision.

 

(c) No
amendment or alteration of the terms of this Agreement shall be
effective unless made in writing and executed by both parties
hereto.

 

(d) A
failure or delay in exercising any right in respect of this
Agreement will not be presumed to operate as a waiver, and a single
or partial exercise of any right will not be presumed to preclude
any subsequent or further exercise of that right or the exercise of
any other right. Any modification or waiver of any provision of
this Agreement shall not be effective unless made in writing. Any
such waiver shall be effective only in the specific instance and
for the purpose given.

 

(e)
This Agreement and its enforcement
shall be governed by, and construed in accordance with, the laws of
the State of Illinois, without regard to conflicts-of-law
principles.

 

 

 

 

[***] = Confidential Information has
been omitted and filed separately with the Securities and Exchange
Commission. 

Confidential
treatment has been requested with respect to the omitted
information.

[SIGNATURE PAGE
FOLLOWS]

 

 

 

IN
WITNESS WHEREOF, the parties hereto have executed this
Agreement.

 

 

 

	

“RECIPIENT”

 

 

 

 

By:_______________________________________

Name:
Gerald M. Walsh

Title:
Consultant

 

 

Date:_____________________________________

 

Notices
hereunder shall be sent to:

Gerald
M. Walsh

[***]

 

 

	

“MONOPAR”

 

Monopar
Therapeutics Inc.

 

 

By:_______________________________________

Name:
Chandler D. Robinson

 Title:
CEO

 

 

Date:
_____________________________________

 

Notices
hereunder shall be sent to:

 

[***]

 

 

 

 

	
 

	
 

SCHEDULE A

 

Description
of Confidential Information Disclosed by Monopar:

 

(a) The
identity of the particular compound or compounds under
investigation by Monopar; (b) the medical indication and/or other
purpose for which any of these compounds are being investigated by
Monopar; (c) the (known or putative) mechanism of action of any of
these compounds; (d) any techniques used by Monopar to discover,
develop, produce, or test any of these compounds; and (e) any
non-public business, financial, regulatory, clinical or scientific
information pertaining to Monopar or the compound or compounds that
Monopar identifies as confidential when disclosed.Blueprint

 

 

MONOPAR
THERAPEUTICS INC. 2016 STOCK INCENTIVE PLAN

 

 

 

1.
Purpose of the
Plan.

 

 

The
purpose of this Plan is to enhance shareholder value by linking the
compensation of officers, directors, key employees and consultants
of the Company to increases in the price of Monopar Therapeutics
Inc. common stock and the achievement of other performance
objectives, and to encourage ownership in the Company by key
personnel and consultants whose long-term employment and retention
is considered essential to the Company’s continued progress
and success. The Plan is also intended to assist the Company in the
recruitment of new employees and consultants and to motivate,
retain and encourage such employees, directors and consultants to
act in the shareholders’ interest and share in the
Company’s success.

 

 

 

2.
Definitions.

 

 

As used
herein, the following definitions shall apply:

 

 

(a) “Administrator” means the
Board, any Committee or such delegates as shall be administering
the Plan in accordance with Section 4 of the Plan.

 

 

(b) “Affiliate” means any
Subsidiary or other entity that is directly or indirectly
controlled by the Company or any entity in which the Company has a
significant ownership interest as determined by the Administrator.
The Administrator shall, in its sole discretion, determine which
entities are classified as Affiliates and designated as eligible to
participate in this Plan.

 

(c) “Applicable Law” means the
requirements relating to the administration of stock option plans
under U.S. federal and state laws, any stock exchange or quotation
system on which the Company has listed or submitted for quotation
the Common Shares to the extent provided under the terms of the
Company’s agreement with such exchange or quotation system
and, with respect to Awards subject to the laws of any foreign
jurisdiction where Awards are, or will be, granted under the Plan,
the laws of such jurisdiction.

 

 

(d) “Award” means a Stock Award,
Option, Stock Appreciation Right, or Other Stock-Based Award
granted in accordance with the terms of the Plan, or any other
property (including cash) granted pursuant to the provisions of the
Plan.

 

 

(e) “Awardee” means an Employee,
Director or Consultant who has been granted an Award under the
Plan.

 

(f) “Award Agreement” means a
Stock Award Agreement, Option Agreement, Stock Appreciation Right
Agreement, or Other Stock-Based Award Agreement, which may be in
written or electronic format, in such form and with such terms as
may be specified by the Administrator, evidencing the terms and
conditions of an individual Award. Each Award Agreement is subject
to the terms and conditions of the Plan. The effectiveness of an
Award shall not be subject to the Award Agreement’s being
signed by

 

 

 

 

 

the
Company and/or the Participant receiving the Award unless
specifically so provided in the Award Agreement.

 

(g)

“Board” means the Board of
Directors of the Company.

 

 

(h) “Change of Control” shall
mean, except as otherwise provided in an Award Agreement, one of
the following shall have taken place after the date of this
Plan:

 

 

(i) any
“person” (as such term is used in Sections 13(d) or
14(d) of the Exchange Act) (other than the Company, any majority
controlled subsidiary of the Company, or the fiduciaries of any
Company benefit plans) becomes the beneficial owner (as defined in
Rules 13d-3 and 13d-5 under the Exchange Act), directly or
indirectly, of 30% or more of the total voting power of the voting
securities of the Company then outstanding and entitled to vote
generally in the election of directors of the Company; provided,
however, that no Change of Control shall occur upon the acquisition
of securities directly from the Company;

 

 

 

(ii) individuals
who, as of the beginning of any 24 month period, constitute the
Board (as of the date hereof, the “Incumbent Board”) cease for any
reason during such 24 month period to constitute at least a
majority of the Board, provided that any individual becoming a
Director subsequent to the date hereof whose election, or
nomination for election by the Company’s shareholders, was
approved by a vote of at least a majority of the Directors then
comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding for
this purpose any such individual whose initial assumption of office
is in connection with an actual or threatened election contest
relating to the election of the Directors of the Company;
or

 

 

(iii) consummation
of (A) a merger, consolidation or reorganization of the Company, in
each case, with respect to which all or substantially all of the
individuals and entities who were the respective beneficial owners
of the voting securities of the Company immediately prior to such
merger, consolidation or reorganization do not, following such
merger, consolidation or reorganization, beneficially own, directly
or indirectly, at least 65% of the combined voting power of the
then outstanding voting securities entitled to vote generally in
the election of directors of the entity or entities resulting from
such merger, consolidation or reorganization, (B) a complete
liquidation or dissolution of the Company, or (C) a sale or other
disposition of all or substantially all of the assets of the
Company, unless at least 65% of the combined voting power of the
then outstanding voting securities entitled to vote generally in
the election of directors of the entity or entities that acquire
such assets are beneficially owned by individuals or entities who
or that were beneficial owners of the voting securities of the
Company immediately before such sale or other
disposition.

 

Notwithstanding the
foregoing, if any payment or distribution event applicable to an
Award is subject to the requirements of Section 409A(a)(2)(A) of
the Code, the determination of the occurrence of a Change of
Control shall be governed by applicable

 

 

 

 

 

provisions of
Section 409A(a)(2)(A) of the Code and regulations and rulings
issued thereunder for purposes of determining whether such payment
or distribution may then occur.

 

 

 

(i) “Code” means the United
States Internal Revenue Code of 1986, as amended, and any successor
thereto, the Treasury Regulations thereunder and other relevant
interpretive guidance issued by the Internal Revenue Service or the
Treasury Department. Reference to any specific section of the Code
shall be deemed to include such regulations and guidance, as well
as any successor provision of the Code.

 

 

(j) “Committee” means a
committee of Directors appointed by the Board in accordance with
Section 4 of the Plan or, in the absence of any such special
appointment, the Compensation Committee of the Board.

 

 

(k) “Common Shares” means the
common shares, $0.001 par value, of the Company, or any security of
the Company issued in substitution, exchange or lieu
thereof.

 

 

(l) “Company” means Monopar
Therapeutics Inc., a Delaware corporation, or, except as utilized
in the definition of Change of Control, its successor.

 

 

(m) “Consultant” means an
individual providing services to the Company or any of its
Affiliates as an independent contractor, and includes prospective
consultants who have accepted offers of consultancy for the Company
or any of its Affiliates, so long as such person (i) renders bona
fide services that are not in connection with the offer and sale of
the Company’s securities in a capital-raising transaction,
(ii) does not directly or indirectly promote or maintain a market
for the Company’s securities, and (iii) otherwise qualifies
as a consultant under the applicable rules of the SEC for
registration of shares of stock on a Form S-8 registration
statement

 

 

(n)

“Conversion Award” has the meaning
set forth in Section 4(b)(xii) of the Plan.

 

 

(o) “Director” means a member of
the Board. Any Director who does not serve as an employee of the
Company is referred to herein as a “Non-employee
Director.”

 

(p) “Disability” means (i)
“Disability” as defined in any employment, consulting
or similar agreement to which the Participant is a party, or (ii)
if there is no such agreement or it does not define
“Disability,” (A) permanent and total disability as
determined under the Company’s long-term disability plan
applicable to the Participant, or (B) if there is no such plan
applicable to the Participant or the Committee determines otherwise
in an applicable Award Agreement, “Disability” shall
mean the Participant’s continuous illness, injury or
incapacity for a period of six consecutive months, as determined by
the Administrator in its discretion. Notwithstanding the above,
with respect to an Incentive Stock Option, Disability shall mean
permanent and total disability as defined in Section 22(e)(3) of
the Code and, with respect to any Award that constitutes
“nonqualified deferred compensation” within the meaning
of Section 409A of the Code, the foregoing definition shall apply
for purposes of vesting of such Award, provided that such Award
shall not be settled until the earliest of: (x) the
Participant’s “disability” within the meaning of
Section 409A of the Code, (y) the Participant’s
“separation from service”

 

 

 

 

 

within
the meaning of Section 409A of the Code and (z) the date such Award
would otherwise be settled pursuant to the terms of the Award
Agreement.

 

(q) “Disaffiliation” means a
Subsidiary’s or Affiliate’s ceasing to be a Subsidiary
or Affiliate for any reason (including, without limitation, as a
result of a public offering, or a spin-off or sale by the Company,
of the stock of the Subsidiary or Affiliate) or a sale of a
division of the Company and its Affiliates.

 

(r) “Employee” means a regular,
active employee of the Company or any Affiliate, including an
Officer or Director who is also a regular, active employee of the
Company or any Affiliate. The Administrator shall determine whether
the Chairman of the Board qualifies as an “Employee.”
For any and all purposes under the Plan, the term
“Employee” shall not include a person hired as an
independent contractor, leased employee, consultant or a person
otherwise designated by the Administrator, the Company or an
Affiliate at the time of hire as not eligible to participate in or
receive benefits under the Plan or not on the payroll, even if such
ineligible person is subsequently determined to be a common law
employee of the Company or an Affiliate or otherwise an employee by
any governmental or judicial authority. Unless otherwise determined
by the Administrator in its sole discretion, for purposes of the
Plan, an Employee shall be considered to have terminated employment
and to have ceased to be an Employee if his or her employer ceases
to be an Affiliate, even if he or she continues to be employed by
such employer.

 

 

(s) “Exchange Act” means the
United States Securities Exchange Act of 1934, as amended, and any
successor thereto.

 

(t) “Fair Market Value” means a
valuation performed by a qualified independent appraiser within the
previous twelve months, taking into consideration all available
information.

 

 

 

(u) “Grant Date” means, with
respect to each Award, the date upon which the Award is granted to
an Awardee pursuant to this Plan, which may be a designated future
date as of which such Award will be effective, as determined by the
Committee.

 

 

(v) “Incentive Stock Option”
means an Option that is identified in the Option Agreement as
intended to qualify as an incentive stock option within the meaning
of Section 422 of the Code and the regulations promulgated
thereunder, and that actually does so qualify.

 

 

(w) “Nonqualified Stock Option”
means an Option that is not an Incentive Stock Option.

 

 

(x) “Officer” means a person who
is an officer of the Company within the meaning of Section 16 of
the Exchange Act and the rules and regulations promulgated
thereunder.

 

 

(y) “Option” means a right
granted under Section 8 of the Plan to purchase a number of Shares
at such exercise price, at such times, and on such other terms and
conditions as are specified in the agreement or other documents
evidencing the Award (the “Option

 

 

 

 

 

Agreement”). 
Both Incentive Stock Options and Nonqualified Stock Options may be
granted under the Plan.

 

(z) “Other Stock-Based Award”
means an Award granted pursuant to Section 12 of the Plan on such
terms and conditions as are specified in the agreement or other
documents evidencing the Award (the “Other Stock-Based     Award
Agreement”).

 

 

(aa)
“Participant”
means the Awardee or any person (including any estate) to whom an
Award has been assigned or transferred as permitted
hereunder.

 

 

(bb)
“Plan” means
this 2016 Stock Incentive Plan, as set forth herein and as
hereafter amended from time to time.

 

 

(cc)
“Qualifying Performance
Criteria” shall have the meaning set forth in Section
13(b) of the Plan.

 

 

(dd)
“Retirement”
means, unless the Administrator determines otherwise, Termination
of Employment, voluntary or involuntary, by a Participant from the
Company and its Affiliates, other than a Termination for Cause,
after attaining age fifty-five (55) and having at least five (5)
years of service with the Company and its Affiliates, excluding
service with an Affiliate of the Company prior to the time that
such Affiliate became an Affiliate of the Company. For Plan
purposes, a “voluntary” Termination of Employment is a
Termination of Employment where the Participant does not qualify
for severance benefits, whether under a severance agreement or the
Company’s or any of its Affiliate’s severance policy,
plan or other arrangement.

 

 

   (ee) “Securities Act” means the
United States Securities Act of 1933, as amended. (ff) “Share” means a Common
Share, as adjusted in accordance with Section 15 of

the
Plan.

 

 

(gg)
“Stock Appreciation
Right” means a right granted under Section 10 of the
Plan on such terms and conditions as are specified in the agreement
or other documents evidencing the Award (the “Stock Appreciation Right
Agreement”).

 

 

(hh)
“Stock Award”
means an award or issuance of Shares or Stock Units made under
Section 11 of the Plan, the grant, issuance, retention, vesting
and/or transferability of which is subject during specified periods
of time to such conditions (including, without limitation,
continued employment or performance conditions) and terms as are
expressed in the agreement or other documents evidencing the Award
(the “Stock Award
Agreement”).

 

 

(ii)
“Stock Unit”
means a bookkeeping entry representing an amount equivalent to the
Fair Market Value of one Share, payable in cash, property or
Shares. Stock Units represent an unfunded and unsecured obligation
of the Company, except as otherwise provided for by the
Administrator.

 

 

 

 

 

(jj)
“Subsidiary”
means any company (other than the Company) in an unbroken chain of
companies beginning with the Company, provided each company in the
unbroken chain (other than the Company) owns, at the time of
determination, stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other companies
in such chain.

 

 

 

(kk)
“Termination for
Cause” means, unless otherwise provided in an Award
Agreement, Termination of Employment on account of any act of fraud
or intentional misrepresentation or embezzlement, misappropriation
or conversion of assets of the Company or any Affiliate, or the
intentional and repeated violation of the written policies or
procedures of the Company, provided that, for an Employee who is
party to an individual severance or employment agreement defining
Cause, “Cause” shall have the meaning set forth in such
agreement except as may be otherwise provided in such agreement.
For purposes of this Plan, a Participant’s Termination of
Employment shall be deemed to be a Termination for Cause if, after
the Participant’s employment has terminated, facts and
circumstances are discovered that would have justified, in the
opinion of the Committee, a Termination for Cause.

 

 

(ll)
“Termination of
Employment” means for purposes of this Plan, unless
otherwise determined by the Administrator, ceasing to be an
Employee (as determined in accordance with Section 3401(c) of the
Code and the regulations promulgated thereunder) of the Company or
one of its Subsidiaries or Affiliates. Unless otherwise determined
by the Committee in the terms of an Award Agreement or otherwise,
if a Participant’s employment with the Company and its
Affiliates terminates but such Participant continues to provide
services to the Company and its Affiliates in a Non-employee
Director capacity, such change in status shall be deemed a
Termination of Employment. A Participant employed by, or performing
services for, a Subsidiary or an Affiliate or a division of the
Company and its Affiliates shall be deemed to incur a Termination
of Employment if, as a result of a Disaffiliation, such Subsidiary,
Affiliate, or division ceases to be a Subsidiary, Affiliate or
division, as the case may be, and the Participant does not
immediately thereafter become an Employee of (or service provider
for), or member of the board of directors of, the Company or
another Subsidiary or Affiliate. Temporary absences from employment
because of illness, vacation or leave of absence and transfers
among the Company and its Subsidiaries and Affiliates shall not be
considered Terminations of Employment. In addition, Termination of
Employment shall mean a “separation from service” as
defined in regulations issued under Code Section 409A whenever
necessary to ensure compliance therewith for any payment or
settlement of a benefit conferred under this Plan that is subject
to such Code section, and, for such purposes, shall be determined
based upon a reduction in the bona fide level of services performed
to a level equal to twenty percent (20%) or less of the average
level of services performed by the Employee during the immediately
preceding 36-month period. For the purposes of this Plan,
Termination of Employment shall also mean the termination of a
Consultant’s services to the Company and the termination of a
Director’s position as a member of the Board of Directors of
the Company.

 

 

 

 

 

3.
Stock Subject to the Plan.

 

 

 

(a) Aggregate Limit. Subject to the
provisions of Section 15(a) of the Plan, the maximum aggregate
number of Shares which may be subject to Awards granted under the
Plan is 10,000 Shares, less one Share for every one Share that was
subject to an option or stock appreciation right granted under any
prior plan, and one share for every one Share that was subject to
an award other than an option or stock appreciation right granted
under any prior plan. Any Shares that are subject to Options or
Stock Appreciation Rights shall be counted against this limit as
one Share for every one Share granted, and any Shares that are
subject to Awards other than Options or Stock Appreciation Rights
shall be counted against this limit as one Share for every one
Share granted. After the Effective Date of the Plan (as provided in
Section 6), no awards may be granted under any prior plan. Shares
subject to or delivered under Conversion Awards shall not reduce
the aggregate number of Shares which may be subject to or delivered
under Awards granted under this Plan. The Shares issued under the
Plan may be either Shares reacquired by the Company, including
Shares purchased in the open market, or authorized but unissued
Shares.

 

 

Notwithstanding any
other provision of this Plan, the Company has no prior
plans.

 

(b) Code Section 162(m) and 422 Limits; Other
Share Limitations. Subject to the provisions of Section
15(a) of the Plan, no Employee may be granted under this Plan (i)
Options or Stock Appreciation Rights during any calendar year with
respect to more than 1,000 Shares, and (ii) Stock Awards and Other
Stock-Based Awards that are intended to comply with the
performance-based exception under Code Section 162(m) and are
denominated in Shares under which more than 1,000 Shares may be
earned for each calendar year (or other 12 month period) in the
vesting or performance period. During any calendar year, no
Participant may be granted an Award that is intended to comply with
the performance-based exception under Code Section 162(m) and is
denominated in cash under which more than one million dollars
($1,000,000.00) may be earned for each calendar year (or other 12
month period) in the performance period. The foregoing limitations
in this section shall be multiplied by two with respect to Awards
granted to a Participant during the first calendar year in which
the Participant commences employment with the Company and its
Affiliates. Subject to the provisions of Section 15(a) of the Plan,
the aggregate number of Shares that may be subject to all Incentive
Stock Options granted under the Plan shall not exceed 10,000
Shares. Notwithstanding anything to the contrary in the Plan, the
limitations set forth in this Section 3(b) shall be subject to
adjustment under Section 15(a) of the Plan only to the extent that
such adjustment will not affect the status of any Award intended to
qualify as “performance-based compensation” under
Section 162(m) of the Code.

 

(c) Limit on Awards to Directors.
Notwithstanding any other provision of the Plan to the contrary,
the aggregate Grant Date Fair Market Value (computed as of the date
of grant in accordance with applicable financial accounting rules)
of all Awards granted to any Non-employee Director during any
single calendar year (excluding Awards made at the election of the
Non-employee Director in lieu of all or a portion of annual and
committee cash retainers) shall not exceed one million dollars
($1,000,000.00).

 

 

 

 

 

(d)

Share Counting Rules.

 

 

 

(i) For purposes of
this Section 3 of the Plan, Shares subject to Awards that have been
canceled, expired, settled in cash, or forfeited for any reason (in
whole or in part) shall not reduce the aggregate number of Shares
which may be subject to Awards granted under this Plan and shall be
available for future Awards granted under this Plan in accordance
with Section 3(d)(iii). In addition, if any Shares subject to an
award under any prior plan are canceled, expired, settled in cash,
or forfeited for any reason (in whole or in part) after December
31, 2015, then such Shares subject to an award under any prior plan
shall, to the extent of such cancellation, expiration, settlement
in cash, or forfeiture, again be available for grant under this
Plan in accordance with Section 3(d)(iii). Notwithstanding the
foregoing, Shares added back under the provisions of this
subsection (d) shall not be counted when determining the limit on
Shares that may be granted as Incentive Stock Options under
subsection (b), above.

 

 

(ii) Notwithstanding
anything to the contrary contained herein, the following Shares
shall not be added to the Shares authorized for grant under
paragraph (i) of this Section: (a) Shares tendered by the
Participant or withheld by the Company in payment of the purchase
price of an Option or, after December 31, 2015, an option under any
prior plan, (b) Shares tendered by the Participant or withheld by
the Company to satisfy any tax withholding obligation with respect
to Options or Stock Appreciation Rights or, after December 31,
2015, options or stock appreciation rights under any prior plan,
(c) Shares subject to a Stock Appreciation Right or, after December
31, 2015, a stock appreciation right under any prior plan, that are
not issued in connection with its stock settlement on exercise
thereof, and (d) Shares reacquired by the Company on the open
market or otherwise using cash proceeds from the exercise of
Options or, after December 31, 2015, options under any prior plan.
Shares subject to Awards that have been retained by the Company in
payment or satisfaction of the tax withholding obligation of an
Awardee, other than for an Option or Stock Appreciation Right as
described above, and Shares that have been delivered (either
actually or constructively by attestation) to the Company in
payment or satisfaction of the tax withholding obligation of an
Awardee, other than for an Option or Stock Appreciation Right as
described above, shall again be available for grant under the Plan.
Similarly, if any Shares subject to an award under any prior plan
are, after December 31, 2015, either retained by the Company in
payment or satisfaction of the tax withholding obligation of an
awardee, other than for an option or a stock appreciation right as
described above, or if Shares are delivered (either actually or
constructively by attestation) to the Company in payment or
satisfaction of the tax withholding obligation of an awardee under
a prior plan, other than for an option or stock appreciation right,
as described above, then such Shares subject to an award under any
prior plan shall, to the extent of such tendering or withholding,
again be available for grant under this Plan.

 

 

(iii) Any
Shares that again become available for grant pursuant to this
Section shall be added back as (i) one Share for every one Share
subject to Options or Stock Appreciation Rights granted under the
Plan or options or stock appreciation rights

 

 

 

 

 

granted
under any prior plan, and (ii) as one Share for every one Share
subject to Awards other than Options or Stock Appreciation Rights
granted under the Plan or awards other than options or stock
appreciation rights granted under any prior plan.

 

 

 

(iv) Conversion
Awards shall not reduce the Shares authorized for grant under the
Plan or the limitations on Awards to a Participant under subsection
(b), above, nor shall Shares subject to a Conversion Award again be
available for an Award under the Plan as provided in this
subsection (d).

 

 

4.
Administration of
the Plan.

 

(a) Procedure.

 

 

(i) Multiple Administrative Bodies. The
Plan shall be administered by the Board, a Committee designated by
the Board to so administer this Plan and/or their respective
delegates.

 

(ii) Section
162(m). To the extent that the Administrator determines it
to be desirable to qualify Awards granted hereunder as
“performance-based compensation” within the meaning of
Code Section 162(m), Awards to “covered employees”
(within the meaning of Code Section 162(m)) or to Employees that
the Committee determines may be “covered employees” in
the future shall be made by a Committee of two or more
“outside directors” within the meaning of Section
162(m) of the Code. References herein to the Administrator in
connection with Awards intended to qualify as
“performance-based compensation” shall mean a Committee
meeting the “outside director” requirements of Code
Section 162(m). Notwithstanding any other provision of the Plan,
the Administrator shall not have any discretion or authority to
make changes to any Award that is intended to qualify as
“performance-based compensation” to the extent that the
existence of such discretion or authority would cause such Award
not to so qualify.

 

 

(iii) Rule
16b-3. To the extent desirable to qualify transactions
hereunder as exempt under Rule 16b-3 promulgated under the Exchange
Act (“Rule
16b-3”), Awards to Officers and Directors shall be
made by the entire Board or a Committee of two or more
“non-employee directors” within the meaning of Rule
16b-3.

 

 

(iv)

Other Administration. To the extent
required by the rules of the principal

 

U.S.
national securities exchange on which the Shares are traded, the
members of the Committee shall also qualify as “independent
directors” as set forth in such rules. Except to the extent
prohibited by Applicable Law, the Board or a Committee may delegate
to a Committee of one or more Directors or to authorized officers
of the Company the power to approve Awards to persons eligible to
receive Awards under the Plan who are not (A) subject to Section 16
of the Exchange Act or (B) at the time of such approval,
“covered employees” under Section 162(m) of the
Code.

 

 

(v) Awards to Directors. The Board shall
have the power and authority to grant Awards to Non-employee
Directors, including the authority to determine the number and type
of awards to be granted; determine the terms and conditions,
not

 

 

 

 

 

inconsistent with
the terms of this Plan, of any award; and to take any other actions
the Board considers appropriate in connection with the
administration of the Plan.

 

(vi) Delegation
of Authority for the Day-to-Day Administration of the Plan.
Except to the extent prohibited by Applicable Law, the
Administrator may delegate to one or more individuals the
day-to-day administration of the Plan and any of the functions
assigned to it in this Plan. Such delegation may be revoked at any
time.

 

(b) Powers of the Administrator. Subject to
the provisions of the Plan and, in the case of a Committee or
delegates acting as the Administrator, subject to the specific
duties delegated to such Committee or delegates, the Administrator
shall have the authority, in its discretion:

 

 

(i) to select the
Non-employee Directors, Consultants and Employees of the Company or
its Affiliates to whom Awards are to be granted
hereunder;

 

 

(ii) to
determine the number of Common Shares to be covered by each Award
granted hereunder;

 

 

(iii) to
determine the type of Award to be granted to the selected Employees
and Non-employee Directors;

 

 

(iv)

to approve forms of
Award Agreements;

 

 

 

(v) to determine the
terms and conditions, not inconsistent with the terms of the Plan,
of any Award granted hereunder. Such terms and conditions include,
but are not limited to, the exercise and/or purchase price, the
time or times when an Award may be exercised (which may or may not
be based on performance criteria), the vesting schedule, any
vesting and/or exercisability provisions, terms regarding
acceleration of Awards or waiver of forfeiture restrictions, the
acceptable forms of consideration for payment for an Award, the
term, and any restriction or limitation regarding any Award or the
Shares relating thereto, based in each case on such factors as the
Administrator, in its sole discretion, shall determine and may be
established at the time an Award is granted or
thereafter;

 

 

(vi)

to correct
administrative errors;

 

 

 

(vii) to
construe and interpret the terms of the Plan (including sub-plans
and Plan addenda) and Awards granted pursuant to the
Plan;

 

 

(viii) to
adopt rules and procedures relating to the operation and
administration of the Plan to accommodate the specific requirements
of local laws and procedures. Without limiting the generality of
the foregoing, the Administrator is specifically authorized (A) to
adopt rules and procedures regarding the conversion of local
currency, the shift of tax liability from employer to employee
(where legally permitted) and withholding procedures and handling
of stock certificates which vary with local requirements, and (B)
to adopt sub-plans and Plan addenda as the

 

 

 

 

 

Administrator deems
desirable, to accommodate foreign laws, regulations and
practice;

 

 

(ix) to
prescribe, amend and rescind rules and regulations relating to the
Plan, including rules and regulations relating to sub-plans and
Plan addenda;

 

(x) to modify or amend
each Award, including, but not limited to, the acceleration of
vesting and/or exercisability, provided, however, that any such
modification or amendment (A) is subject to the plan amendment
provisions set forth in Section 16 of the Plan, and (B) may not
materially impair any outstanding Award unless agreed to in writing
by the Participant, except that such agreement shall not be
required if the Administrator determines in its sole discretion
that such modification or amendment either (Y) is required or
advisable in order for the Company, the Plan or the Award to
satisfy any Applicable Law or to meet the requirements of any
accounting standard, or (Z) is not reasonably likely to
significantly diminish the benefits provided under such Award, or
that adequate compensation has been provided for any such
diminishment, except following a Change of Control;

 

 

(xi) to
allow or require Participants to satisfy withholding tax amounts by
electing to have the Company withhold from the Shares to be issued
upon exercise of a Nonqualified Stock Option or vesting of a Stock
Award that number of Shares having a Fair Market Value equal to the
amount required to be withheld. The Fair Market Value of the Shares
to be withheld shall be determined in such manner and on such date
that the Administrator shall determine or, in the absence of
provision otherwise, on the date that the amount of tax to be
withheld is to be determined. All elections by a Participant to
have Shares withheld for this purpose shall be made in such form
and under such conditions as the Administrator may
provide;

 

 

(xii) to
authorize conversion or substitution under the Plan of any or all
stock options, stock appreciation rights or other stock awards held
by awardees of an entity acquired by the Company (the
“Conversion
Awards”). Any conversion or substitution shall be
effective as of the close of the merger or acquisition. The
Conversion Awards may be Nonqualified Stock Options or Incentive
Stock Options, as determined by the Administrator, with respect to
options granted by the acquired entity;

 

 

(xiii) to
authorize any person to execute on behalf of the Company any
instrument required to effect the grant of an Award previously
granted by the Administrator;

 

(xiv) to
impose such restrictions, conditions or limitations as it
determines appropriate as to the timing and manner of any resale by
a Participant or of other subsequent transfers by the Participant
of any Shares issued as a result of or under an Award or upon the
exercise of an Award, including, without limitation, (A)
restrictions under an insider trading policy, (B) restrictions as
to the use of a specified brokerage firm for such resale or other
transfers, and (C) institution of “blackout” periods on
exercises of Awards;

 

 

 

 

 

(xv) to
provide, either at the time an Award is granted or by subsequent
action, that an Award shall contain as a term thereof, a right,
either in tandem with the other rights under the Award or as an
alternative thereto, of the Participant to receive, without payment
to the Company, a number of Shares, cash or a combination thereof,
the amount of which is determined by reference to the value of the
Award; and

 

 

 

(xvi) to
make all other determinations deemed necessary or advisable for
administering the Plan and any Award granted
hereunder.

 

 

(c) Effect of Administrator’s
Decision. All questions arising under the Plan or under any
Award shall be decided by the Administrator in its total and
absolute discretion. All decisions, determinations and
interpretations by the Administrator regarding the Plan, any rules
and regulations under the Plan and the terms and conditions of any
Award granted hereunder, shall be final and binding on all
Participants. The Administrator shall consider such factors as it
deems relevant, in its sole and absolute discretion, to making such
decisions, determinations and interpretations, including, without
limitation, the recommendations or advice of any officer or other
employee of the Company and such attorneys, consultants and
accountants as it may select.

 

 

(d) Indemnity. To the extent allowable
under Applicable Law, each member of the Committee or of the Board
and any person to whom the Board or Committee has delegated any of
its authority under the Plan shall be indemnified and held harmless
by the Company from any loss, cost, liability, or expense that may
be imposed upon or reasonably incurred by such person in connection
with or resulting from any claim, action, suit, or proceeding to
which he or she may be a party or in which he or she may be
involved by reason of any action or failure to act pursuant to the
Plan, and against and from any and all amounts paid by him or her
in satisfaction of judgment in such action, suit, or proceeding
against him or her; provided he or she gives the Company an
opportunity, at its own expense, to handle and defend the same
before he or she undertakes to handle and defend it on his or her
own behalf. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which such
persons may be entitled pursuant to the Company’s Articles of
Incorporation or By-laws, as a matter of law, or otherwise, or any
power that the Company may have to indemnify them or hold them
harmless.

 

 

5.
Eligibility.

 

 

 

Awards
may be granted only to Directors, Employees and Consultants of the
Company or any of its Affiliates; provided, however, that Incentive
Stock Options may be granted only to Employees of the Company and
its Subsidiaries (within the meaning of Section 424(f) of the
Code).

 

 

 

6.
Term of Plan.

 

 

The
Plan shall become effective upon its approval by shareholders of
the Company. It shall continue in effect for a term of ten (10)
years from the date the Plan is approved by the

 

 

 

 

 

shareholders of the
Company (the “Effective
Date”) unless terminated earlier under Section 16 of
the Plan.

 

 

 

7.
Term of Award.

 

 

Subject
to the provisions of the Plan, the term of each Award shall be
determined by the Administrator and stated in the Award Agreement,
and may extend beyond the termination of the Plan. In the case of
an Option or a Stock Appreciation Right, the term shall be ten (10)
years from the Grant Date or such shorter term as may be provided
in the Award Agreement. Notwithstanding the foregoing, the term of
Awards other than Awards that are structured to qualify as
Incentive Stock Options under Section 9 shall be extended
automatically if the Award would expire at a time when trading in
Common Shares is prohibited by law or the Company’s insider
trading policy to the 30th day after the expiration of the
prohibition.

 

 

 

8.
Options.

 

 

The
Administrator may grant an Option or provide for the grant of an
Option, either from time to time in the discretion of the
Administrator or automatically upon the occurrence of specified
events, including, without limitation, the achievement of
performance goals.

 

 

(a) Option Agreement. Each Option Agreement
shall contain provisions regarding (i) the number of Shares that
may be issued upon exercise of the Option, (ii) the type of Option,
(iii) the exercise price of the Option and the means of payment of
such exercise price, (iv) the term of the Option, (v) such terms
and conditions regarding the vesting and/or exercisability of an
Option as may be determined from time to time by the Administrator,
(vi) restrictions on the transfer of the Option and forfeiture
provisions, and

(vii)
such further terms and conditions, in each case not inconsistent
with this Plan, as may be determined from time to time by the
Administrator.

 

 

 

(b) Exercise Price. The per share exercise
price for the Shares to be issued upon exercise of an Option shall
be determined by the Administrator, except that the per Share
exercise price shall be no less than 100% of the Fair Market Value
per Share on the Grant Date, except with respect to Conversion
Awards.

 

 

(c) No Option Repricings. Subject to
Section 15 of the Plan, the exercise price of an Option may not be
reduced without shareholder approval, nor may outstanding Options
be cancelled in exchange for cash, other Awards or Options with an
exercise price that is less than the exercise price of the original
Option without shareholder approval.

 

 

 

(d) No Reload Grants. Options shall not be
granted under the Plan in consideration for and shall not be
conditioned upon the delivery of Shares to the Company in payment
of the exercise price and/or tax withholding obligation under any
other employee stock option.

 

 

(e) Vesting Period and Exercise Dates.
Options granted under this Plan shall vest and/or be exercisable at
such time and in such installments during the period prior to the
expiration of the Option’s term as determined by the
Administrator and as specified in the Option Agreement. The
Administrator shall have the right to make the timing of
the

 

 

 

 

 

ability
to exercise any Option granted under this Plan subject to continued
active employment (or retention in the case of a consultant or
Director), the passage of time and/or such performance requirements
as deemed appropriate by the Administrator. At any time after the
grant of an Option, the Administrator may reduce or eliminate any
restrictions surrounding any Participant’s right to exercise
all or part of the Option.

 

 

 

(f) Form of Consideration. The
Administrator shall determine the acceptable form of consideration
for exercising an Option, including the method of payment, either
through the terms of the Option Agreement or at the time of
exercise of an Option. Acceptable forms of consideration may
include:

 

 

   
(i) cash;

 

(ii)

check or wire
transfer (denominated in U.S. Dollars);

 

 

(iii) subject
to any conditions or limitations established by the
Administrator, other Shares which were held for a period of more
than six (6) months on the date of surrender and which have a Fair
Market Value on the date of surrender equal to or greater than the
aggregate exercise price of the Shares as to which said Option
shall be exercised (it being agreed that the excess of the Fair
Market Value over the aggregate exercise price, if any, shall be
refunded to the Awardee in cash);

 

 

(iv) subject
to any conditions or limitations established by the Administrator,
the Company withholding Shares otherwise issuable upon exercise of
an Option;

 

 

(v) consideration
received by the Company under a broker-assisted sale and remittance
program acceptable to the Administrator and in compliance with
Applicable Law;

 

 

 

(vi) such
other consideration and method of payment for the issuance of
Shares to the extent permitted by Applicable Law; or

 

 

(vii)

any combination of
the foregoing methods of payment.

 

 

(g)

Procedure for Exercise; Rights as a
Shareholder.

 

(i) Any Option granted
hereunder shall be exercisable according to the terms of the Plan
and at such times and under such conditions as determined by the
Administrator and set forth in the applicable Option
Agreement.

 

 

(ii) An
Option shall be deemed exercised when (A) the Company receives (1)
written or electronic notice of exercise (in accordance with the
Option Agreement or procedures established by the Administrator)
from the person entitled to exercise the Option and (2) full
payment for the Shares with respect to which the related Option is
exercised, and (B) with respect to Nonqualified Stock Options,
provisions acceptable to the Administrator have been made for
payment of all applicable withholding taxes.

 

 

 

 

 

(iii) Unless
provided otherwise by the Administrator or pursuant to this Plan,
until the Shares are issued (as evidenced by the appropriate entry
on the books of the Company or of a duly authorized transfer agent
of the Company), no right to vote or receive dividends or any other
rights as a shareholder shall exist with respect to the Shares
subject to an Option, notwithstanding the exercise of the
Option.

 

 

 

(iv) The
Company shall issue (or cause to be issued) such Shares as soon as
administratively practicable after the Option is exercised. An
Option may not be exercised for a fraction of a Share.

 

 

(h)

Termination of Employment, Consultancy or Board
Membership.

 

 

(i) The Administrator
shall determine as of the Grant Date (subject to modification
subsequent to the Grant Date) the effect a Termination of
Employment due to (A) Disability, (B) Retirement, (C) death, or (D)
otherwise (including Termination for Cause) shall have on any
Option.

 

 

(ii)
Unless otherwise provided in the Award Agreement:

 

 

(A) Upon termination from
membership on the Board by a Non- employee Director for reasons
other than Retirement as set forth in subparagraph
(D)
below, any Option held by such Director that (1) has not vested and
is not exercisable as of the effective date of such termination
from membership on the Board shall be subject to immediate
cancellation and forfeiture or (2) is vested and exercisable as of
the effective date of such termination shall remain exercisable for
five (5) years thereafter, or the remaining term of the Option, if
less;

 

 

(B) Upon Termination of
Employment, excluding termination from membership on the Board by a
Non-employee Director, due to death or Disability, any Option held
by such Employee that is vested and exercisable as of the effective
date of such Termination of Employment shall remain exercisable for
one year after such Termination of Employment due to death or
Disability or the remaining term of the Option, if
less;

 

 

 

(C) Upon Termination of
Employment, excluding termination from membership on the Board by a
Non-employee Director, due to death or Disability, any Option held
by such Employee that is not yet vested shall vest in full as of
the date of death or Disability, and any such vested Options shall
remain exercisable for one year after such Termination of
Employment due to death or Disability or the remaining term of the
Option, if less;

 

 

(D) Upon Termination of
Employment due to Retirement, (1) any Option held by such Awardee
shall, to the extent not already vested, become ratably vested
(rounded up or down to the nearest whole Share) based upon the full
months of the applicable vesting period elapsed as of the end of
the month in which the Termination of Employment due to Retirement
occurs over the total number of months in such period; provided,
however, that, in the case of a

 

 

 

 

 

Retirement due to a
voluntary Termination of Employment, the terms of this Section
8(h)(ii)(D)(1) shall not apply with respect to any Option granted
less than six (6) months prior to the effective date of such
Termination of Employment; and (2) any Option held
by an Awardee at Retirement, to the extent vested and exercisable
as of the effective date of such Retirement (including, without
limitation, any Options that have ratably vested pursuant to the
preceding clause (1)), will remain outstanding for the lesser of
five (5) years or the remaining term of the Option;
and

 

 

(E)" Any other Termination of
Employment, termination from membership on the Board by a
Non-employee Director, shall result in immediate cancellation and
forfeiture of all outstanding Options that have not vested as of
the effective date of such Termination of Employment, and any
vested and exercisable Options held at the time of such Termination
of Employment shall remain exercisable for ninety (90) days
thereafter, or the remaining term of the Option, if less.
Notwithstanding the foregoing, all outstanding and unexercised
Options shall be immediately cancelled in the event of a
Termination for Cause.

 

 

9.
Incentive Stock Option Limitations/Terms.

 

 

(a) Eligibility. Only employees (as
determined in accordance with Section 3401(c) of the Code and the
regulations promulgated thereunder) of the Company or any of its
Subsidiaries may be granted Incentive Stock Options. No Incentive
Stock Option shall be granted to any such employee who as of the
Grant Date owns stock possessing more than 10% of the total
combined voting power of the Company, except in compliance with
Section 422 of the Code regarding 10 – percent
shareholders.

 

 

(b) $100,000 Limitation. Notwithstanding
the designation “Incentive Stock Option” in an Option
Agreement, if and to the extent that the aggregate Fair Market
Value of the Shares with respect to which Incentive Stock Options
are exercisable for the first time by the Awardee during any
calendar year (under all plans of the Company and any of its
Subsidiaries) exceeds U.S. $100,000, such Options shall be treated
as Nonqualified Stock Options. For purposes of this Section 9(b) of
the Plan, Incentive Stock Options shall be taken into account in
the order in which they were granted. The Fair Market Value of the
Shares shall be determined as of the Grant Date.

 

 

(c) Transferability. The Option Agreement
must provide that an Incentive Stock Option is not transferable by
the Awardee otherwise than by will or the laws of descent and
distribution, and, during the lifetime of such Awardee, must not be
exercisable by any other person. If the terms of an Incentive Stock
Option are amended to permit transferability, the Option will be
treated for tax purposes as a Nonqualified Stock
Option.

 

(d) Exercise Price. The per Share exercise
price of an Incentive Stock Option shall in no event be
inconsistent with the requirements for qualification of the
Incentive Stock Option under Section 422 of the Code.

 

 

 

 

 

(e) Other Terms. Option Agreements
evidencing Incentive Stock Options shall contain such other terms
and conditions as may be necessary to qualify, to the extent
determined desirable by the Administrator, with the applicable
provisions of Section 422 of the Code. If any such terms and
conditions, as of the Grant Date or any later date, do not so
comply, the Option will be treated thereafter for tax purposes as a
Nonqualified Stock Option.

 

 

10.
Stock
Appreciation Rights.

 

 

A
“Stock Appreciation Right” is a right that entitles the
Awardee to receive, in cash or Shares (as determined by the
Administrator), value equal to or otherwise based on the excess
of

(i) the Fair Market
Value of a specified number of Shares at the time of exercise over
(ii) the aggregate exercise price of the right, as established by
the Administrator on the Grant Date. Stock Appreciation Rights may
be granted to Awardees either alone (“freestanding”) or
in addition to or in tandem with other Awards granted under the
Plan and may, but need not, relate to a specific Option granted
under Section 8 of the Plan. Any Stock Appreciation Right granted
in tandem with an Option may be granted at the same time such
Option is granted or at any time thereafter before exercise or
expiration of such Option, and shall be based on the Fair Market
Value of one Share on the Grant Date or, if applicable, on the
Grant Date of the Option with respect to a Stock Appreciation Right
granted in exchange for or in tandem with, but subsequent to, the
Option (subject to the requirements of Section 409A of the Code).
All Stock Appreciation Rights under the Plan, other than Conversion
Awards, shall be granted subject to the same terms and conditions
applicable to Options as set forth in Section 8 of the Plan.
Subject to the provisions of Section 8 of the Plan, the
Administrator may impose such other conditions or restrictions on
any Stock Appreciation Right as it shall deem
appropriate.

 

11. 
Stock Awards.

 

 

(a) Stock Award Agreement. Each Stock Award
Agreement shall contain provisions regarding (i) the number of
Shares subject to such Stock Award or a formula for determining
such number, (ii) the purchase price of the Shares, if any, and the
means of payment for the Shares, (iii) the performance criteria, if
any, and level of achievement versus these criteria that shall
determine the number of Shares granted, issued, retainable and/or
vested, (iv) such terms and conditions on the grant, issuance,
vesting and/or forfeiture of the Shares as may be determined from
time to time by the Administrator, (v) restrictions on the
transferability of the Stock Award, and (vi) such further terms and
conditions, in each case not inconsistent with this Plan, as may be
determined from time to time by the Administrator. The Committee
may, in its sole discretion, waive the vesting restrictions and any
other conditions set forth in any Award Agreement under such terms
and conditions as the Committee shall deem appropriate, subject to
the limitations imposed under Code Section 162(m) and the
regulations thereunder in the case of an Award intended to comply
with the performance-based exception under Code Section 162(m),
unless determined otherwise under the circumstances by the
Committee.

 

 

 

(b) Restrictions and Performance Criteria.
The grant, issuance, retention and/or vesting of Stock Awards
issued to Employees may be subject to such performance criteria and
level of achievement versus these criteria as the Administrator
shall determine, which

 

 

 

 

 

criteria may be
based on financial performance, personal performance evaluations
and/or completion of service by the Awardee. Notwithstanding
anything to the contrary herein, the performance criteria for any
Stock Award that is intended to satisfy the requirements for
“performance-based compensation” under Section 162(m)
of the Code (a “Performance
Stock Award”) shall be established by the
Administrator based on one or more Qualifying Performance Criteria
selected by the Administrator and specified in writing not later
than ninety (90) days after the commencement of the period of
service (or, if earlier, the elapse of 25% of such period) to which
the performance goals relate or otherwise within the time period
required by the Code or the applicable Treasury Regulations,
provided that the outcome is substantially uncertain at that time.
Stock Awards for which vesting is not based on the attainment of
performance criteria are referred to as “Restricted Stock
Awards.”

 

(c)

Termination of Employment or Board Membership.

 

 

(i) The Administrator
shall determine as of the Grant Date (subject to modification
subsequent to the Grant Date) the effect a Termination of
Employment due to (A) Disability, (B) Retirement (C) death, or (D)
otherwise (including Termination for Cause) shall have on any Stock
Award.

 

 

(ii)

Unless otherwise
provided in the Award Agreement:

 

 

(A) A Termination of Employment
due to Disability or death shall result in immediate full vesting
of any as yet unvested Stock Award, and in the case of a Stock
Award that vests upon the achievement of performance goals, the
vested amount shall be based upon the target award
amount;

 

 

(B) A Termination of Employment
due to Retirement shall result in vesting of a prorated portion of
any Stock Award (rounded up or down to the nearest whole Share),
based upon the full months of the applicable performance period,
vesting period or other period of restriction elapsed as of the end
of the month in which the Termination of Employment due to
Retirement occurs over the total number of months in such period;
provided, however, that, in the case of a Retirement due to
voluntary Termination of Employment, the terms of this Section
11(c)(ii)(B) shall not apply with respect to any Stock Award
granted less than six (6) months prior to the effective date of
such Termination of Employment; and

 

 

(C) Any other Termination of
Employment shall result in immediate cancellation and forfeiture of
all outstanding, unvested Stock Awards.

 

If
clause (B) of this Section 11(c)(ii) applies to a Stock Award under
which vesting is based on the attainment of performance criteria
over a performance period, the ratable vesting percentage
determined by the portion of the performance period during which
the Awardee was an Employee of the Company or an Affiliate shall be
applied to determine the portion of the Stock

 

 

 

 

 

Award
that is vested based upon actual performance results after the
completion of the performance period.

 

(d) Rights as a Shareholder. Unless
otherwise provided for by the Administrator, the Participant shall
have the rights equivalent to those of a shareholder and shall be a
shareholder only after Shares are issued (as evidenced by the
appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) to the
Participant.

 

 

12.
Other Stock-Based Awards.

 

(a) Other Stock-Based Awards. An
“Other Stock-Based Award” means any other type of
equity-based or equity-related Award not otherwise described by the
terms of this Plan (including the grant or offer for sale of
unrestricted Shares), as well as any cash bonus based on the
attainment of Qualifying Performance Criteria as described in
Section 13(b), in such amount and subject to such terms and
conditions as the Administrator shall determine. Such Awards may
involve the transfer of actual Shares to Participants, or payment
in cash or otherwise of amounts based on the value of Shares or
pursuant to attainment of a performance goal. Each Other
Stock-Based Award will be evidenced by an Award Agreement
containing such terms and conditions as may be determined by the
Administrator.

 

(b) Value of Other Stock-Based Awards. Each
Other Stock-Based Award shall be expressed in terms of Shares or
units based on Shares or a target amount of cash, as determined by
the Administrator. The Administrator may establish performance
goals in its discretion. If the Administrator exercises its
discretion to establish performance goals, the number and/or value
of Other Stock-Based Awards that will be paid out to the
Participant will depend on the extent to which the performance
goals are met. Notwithstanding anything to the contrary herein, the
performance criteria for any Other Stock-Based Award that is
intended to satisfy the requirements for “performance-based
compensation” under Section 162(m) of the Code shall be
established by the Administrator based on one or more Qualifying
Performance Criteria selected by the Administrator and specified in
writing not later than ninety (90) days after the commencement of
the period of service (or, if earlier, the elapse of 25% of such
period) to which the performance goals relate and otherwise within
the time period required by the Code and the applicable Treasury
Regulations, provided that the outcome is substantially uncertain
at that time.

 

 

(c) Payment of Other Stock-Based Awards.
Payment, if any, with respect to Other Stock-Based Awards shall be
made in accordance with the terms of the Award, in cash or Shares
or a combination thereof, as the Administrator
determines.

 

(d)

Termination of Employment, Consultancy, or Board
Membership.

 

 

(i) The Administrator
shall determine as of the Grant Date (subject to modification
subsequent to the Grant Date) the effect a Termination of
Employment

 

 

 

 

 

due to
(A) Disability, (B) Retirement, (C) death, or (D) otherwise
(including Termination for Cause) shall have on any Other
Stock-Based Award.

 

(ii)

Unless otherwise
provided in the Award Agreement:

 

 

(A) A Termination of Employment
due to Disability or death shall result in immediate full vesting
of any as yet unvested Other Stock-Based Award, and in the case of
an Other Stock-Based Award which vests on the basis of attainment
of a performance goal, the vested amount shall be based upon the
target award amount;

 

 

(B) A Termination of Employment
due to Retirement shall result in vesting of a prorated portion of
any Other Stock-Based Award (rounded up or down to the nearest
whole Share or unit based on Shares, as applicable), based upon the
full months of the applicable performance period, vesting period or
other period of restriction elapsed as of the end of the month in
which the Termination of Employment due to Retirement occurs over
the total number of months in such period; provided, however, that,
in the case of a Retirement due to voluntary Termination of
Employment, the terms of this Section 12(d)(ii)(B) shall not apply
with respect to any Other Stock-Based Award granted less than six
(6) months prior to the effective date of such Termination of
Employment; and

 

 

(C) Any other Termination of
Employment shall result in immediate cancellation and forfeiture of
all outstanding, unvested Other Stock-Based Awards.

 

 

If
clause (B) of this Section 12(d)(ii) applies to an Other
Stock-Based Award under which vesting is based on the attainment of
performance criteria over a performance period, the ratable vesting
percentage determined by the portion of the performance period
during which the Awardee was an Employee of the Company or an
Affiliate shall be applied to determine the portion of the Other
Stock-Based Award that is vested based upon actual performance
results after the completion of the performance
period.

 

 

 

13.
Other Provisions Applicable to Awards.

 

 

(a) Non-Transferability of Awards. Unless
determined otherwise by the Administrator, an Award may not be
sold, pledged, assigned, hypothecated, transferred or disposed of
in any manner other than by beneficiary designation, will or by the
laws of descent or distribution, including but not limited to any
attempted assignment or transfer in connection with the settlement
of marital property or other rights incident to a divorce or
dissolution, and any such attempted sale, assignment or transfer
shall be of no effect prior to the date an Award is vested and
settled. The Administrator may only make an Award transferable to
an Awardee’s family member or any other person or entity
provided the Awardee does not receive consideration for such
transfer. If the Administrator makes an Award transferable, either
as of the Grant Date or thereafter, such Award shall
contain

 

 

 

 

 

such
additional terms and conditions as the Administrator deems
appropriate, and any transferee shall be deemed to be bound by such
terms upon acceptance of such transfer.

 

(b) Qualifying Performance
Criteria. For purposes of this
Plan, the term “Qualifying Performance Criteria”
shall mean any one or more of the following performance criteria,
either individually, alternatively or in any combination, on a
basis consistent with U.S. Generally Accepted Accounting Principles
(“GAAP”) or on a
non-GAAP or adjusted GAAP basis, applied to either the Company as a
whole or to a Subsidiary, business unit, Affiliate or business
segment, either individually, alternatively or in any combination,
and measured either annually or cumulatively over a period of
years, on an absolute basis or relative to a pre-established
target, to previous years’ results or to a designated
comparison group, in each case as specified by the Committee in the
Award or by duly adopted resolution: (i) sales or cash return on
sales; (ii) cash flow or free cash flow or net cash from operating
activity; (iii) earnings (including gross margin, earnings before
or after interest and taxes, earnings before taxes, and net
earnings); (iv) basic or diluted earnings per share; (v) growth in
earnings or earnings per share; (vi) stock price; (vii) return on
equity or average shareholders’ equity; (viii) total
shareholder return; (ix) return on capital; (x) return on assets or
net assets; (xi) return on investments; (xii) revenue or gross
profits; (xiii) income before or after interest, taxes,
depreciation and amortization, or net income; (xiv) pretax income
before allocation of corporate overhead and bonus; (xv) operating
income or net operating income; (xvi) operating profit or net
operating profit (whether before or after taxes); (xvii) operating
margin; (xviii) return on operating revenue; (xix) working capital
or net working capital; (xx) market share; (xxi) asset velocity
index; (xxii) contract awards or backlog; (xxiii) overhead or other
expense or cost reduction; (xxiv) growth in shareholder value
relative to the moving average of the S&P 500 Index or a peer
group index; (xxv) credit rating; (xxvi) strategic plan development
and implementation; (xxvii) improvement in workforce diversity;
(xxviii) customer satisfaction; (xxvix) employee satisfaction;
(xxx) management succession plan development and implementation;
and (xxxi) employee or customer retention. With respect to any
Award that is intended to satisfy the requirements for
“performance-based compensation” under Section 162(m)
of the Code, the performance criteria must be Qualifying
Performance Criteria, and the Administrator will (within the first
quarter of the performance period, but in no event more than ninety
(90) days into that period) establish the specific performance
targets (including thresholds and whether to exclude certain
extraordinary, non-recurring, or similar items) and Award amounts
(subject to the right of the Administrator to exercise discretion
to reduce payment amounts following the conclusion of the
performance period). Extraordinary, non-recurring items that may be
the basis of adjustment include acquisitions or divestitures,
restructurings, discontinued operations, extraordinary items, and
other unusual or non-recurring charges, an event either not
directly related to the operations of the Company, Subsidiary,
division, business segment or business unit or not within the
reasonable control of management, the cumulative effects of tax or
accounting changes in accordance with U.S. GAAP, and foreign
exchange gains or losses.

 

(c) Certification. Prior to the payment of
any compensation under an Award intended to qualify as
“performance-based compensation” under Section 162(m)
of the Code, the Administrator shall certify in writing the extent
to which any Qualifying Performance

 

 

 

 

 

Criteria and any
other material terms under such Award have been satisfied (other
than in cases where such criteria relate solely to the increase in
the value of the Common Shares).

 

(d) Discretionary Adjustments Pursuant to Section
162(m). Notwithstanding satisfaction or completion of any
Qualifying Performance Criteria, to the extent specified as of the
Grant Date, the number of Shares, Options or other benefits
granted, issued, retainable and/or vested under an Award on account
of satisfaction of such Qualifying Performance Criteria may be
reduced (but not increased) by the Administrator on the basis of
such further considerations as the Administrator in its sole
discretion shall determine.

 

(e) Six Month Holding Period for Purposes of Rule
16b-3. If the Company is subject to the reporting
requirements of Section 13 of the Exchange Act, the Plan
Administrator shall ensure that transactions between the Company
and an Officer or Director under this Plan are exempt from Section
16(b) of the Exchange Act pursuant to one of the exemptions
available under 17 C.F.R. 240.16b-3. If the Administrator
determines that the exemption pursuant to 17 C.F.R. 240.16b-3(d)(3)
is to be used, then (i) shares purchased upon exercise of an Option
or another derivative security (as defined in Exchange Act Rule
16a-1(c)) issued under this Plan by an Officer or Director may not
be sold before at least six months have elapsed from the date the
Option or other derivative security was granted; and (ii) any other
equity securities of the Company acquired by an Officer or Director
under this Plan other than as described in subparagraph (i) above
may not be sold before at least six months have elapsed from the
date they equity security was acquired.

 

 

 

14.
Dividends and Dividend Equivalents.

 

 

Awards
other than Options and Stock Appreciation Rights may provide the
Awardee with the right to receive dividend payments or dividend
equivalent payments on the Shares subject to the Award, whether or
not such Award is vested. Notwithstanding the foregoing, dividends
or dividend equivalents shall not be paid with respect to Stock
Awards or Other Stock-Based Awards that, in either case, vest based
on the achievement of performance goals prior to the date the
performance goals are satisfied and the Award is earned, and then
shall be payable only with respect to the number of Shares or Stock
Units actually earned under the Award. Such payments may be made in
cash, Shares or Stock Units or may be credited as cash or Stock
Units to an Awardee’s account and later settled in cash or
Shares or a combination thereof, as determined by the
Administrator. Such payments and credits may be subject to such
conditions and contingencies as the Administrator may
establish.

 

 

 

15.
Adjustments upon Changes in Capitalization, Organic Change or
Change of Control.

 

 

 

(a) Adjustment Clause. In the event of (i)
a stock dividend, extraordinary cash dividend, stock split, reverse
stock split, share combination, or recapitalization or similar
event affecting the capital structure of the Company (each, a
“Share Change”),
or (ii) a merger, consolidation, acquisition of property or shares,
separation, spin-off, reorganization, liquidation, Disaffiliation,
or similar event affecting the Company or any of its Subsidiaries
(each, an “Organic
Change”), the Administrator or the Board may in its
discretion make such substitutions or adjustments as it deems
appropriate and equitable

 

 

 

 

 

to (i)
the Share limitations set forth in Section 3 of the Plan, (ii) the
number and kind of Shares covered by each outstanding Award, and
(iii) the price per Share subject to each such outstanding Award.
In the case of Organic Changes, such adjustments may include,
without limitation, (x) the cancellation of outstanding Awards in
exchange for payments of cash, property or a combination thereof
having an aggregate value equal to the value of such Awards, as
determined by the Administrator or the Board in its sole discretion
(it being understood that in the case of an Organic Change with
respect to which shareholders receive consideration other than
publicly traded equity securities of the ultimate surviving entity,
any such determination by the Administrator that the value of an
Option or Stock Appreciation Right shall for this purpose be deemed
to equal the excess, if any, of the value of the consideration
being paid for each Share pursuant to such Organic Change over the
exercise price of such Option or Stock Appreciation Right shall
conclusively be deemed valid); (y) the substitution of other
property (including, without limitation, cash or other securities
of the Company and securities of entities other than the Company)
for the Shares subject to outstanding Awards; and (z) in connection
with any Disaffiliation, arranging for the assumption of Awards, or
replacement of Awards with new awards based on other property or
other securities (including, without limitation, other securities
of the Company and securities of entities other than the Company),
by the affected Subsidiary, Affiliate, or division or by the entity
that controls such Subsidiary, Affiliate, or division following
such Disaffiliation (as well as any corresponding adjustments to
Awards that remain based upon Company securities). The Committee
may adjust in its sole discretion the Qualifying Performance
Criteria applicable to any Awards to reflect any Share Change and
any Organic Change and any unusual or non-recurring events and
other extraordinary items, impact of charges for restructurings,
discontinued operations, and the cumulative effects of accounting
or tax changes, each as defined by GAAP or as identified in the
Company’s financial statements, notes to the financial
statements, management’s discussion and analysis or the
Company’s other SEC filings, provided that in the case of
Qualifying Performance Criteria applicable to any performance-based
Awards intended to qualify under Code Section 162(m), such
adjustment does not violate Section 162(m) of the Code. Any
adjustment under this Section 15(a) need not be the same for all
Participants.

 

 

 

(b) Change of Control. In the event of a
Change of Control, unless otherwise determined by the Administrator
as of the Grant Date of a particular Award (or subsequent to the
Grant Date), the following acceleration, exercisability and
valuation provisions shall apply:

 

 

(i) On the date that
such Change of Control occurs, any or all Options and Stock
Appreciation Rights awarded under this Plan not previously
exercisable and vested shall become fully exercisable and
vested.

 

(ii) Except
as may be provided in an individual severance or employment
agreement (or severance plan) to which an Awardee is a party, in
the event of an Awardee’s Termination of Employment within
two (2) years after a Change of Control for any reason other than
because of the Awardee’s death, Retirement, Disability or
Termination for Cause, each Option and Stock Appreciation Right
held by the Awardee (or a transferee) that is vested shall remain
exercisable until the

 

 

 

 

 

earlier
of the third (3rd) anniversary
of such Termination of Employment (or any later date until which it
would remain exercisable under such circumstances by its terms) or
the expiration of its original term. In the event of an
Awardee’s Termination of Employment more than two (2) years
after a Change of Control, or within two (2) years after a Change
of Control because of the Awardee’s death, Retirement,
Disability or Termination for Cause, the provisions of Sections
8(h) and 10 of the Plan shall govern (as applicable).

 

 

(iii) On
the date that such Change of Control occurs, the restrictions and
conditions applicable to any or all Stock Awards and Other
Stock-Based Awards shall lapse and such Awards shall be fully
vested. Unless otherwise provided in an Award at the Grant Date,
upon the occurrence of a Change of Control, any performance based
Award shall be deemed fully earned at the target amount as of the
date on which the Change of Control occurs. All Stock Awards, Other
Stock-Based Awards and cash Awards shall be settled or paid within
thirty (30) days of vesting hereunder. Notwithstanding the
foregoing, if the Change of Control would not qualify as a
permissible date of distribution under Section 409A(a)(2)(A) of the
Code, and the regulations thereunder, the Awardee shall be entitled
to receive the payment of cash or settlement of Shares under the
Award, as applicable, from the Company on the date that would have
applied absent this provision.

 

 

(iv) The
Administrator, in its discretion, may determine that, upon the
occurrence of a Change of Control of the Company, each Option and
Stock Appreciation Right outstanding shall terminate within a
specified number of days after notice to the Participant, and/or
that each Participant shall receive, with respect to each Share
subject to such Option or Stock Appreciation Right, an amount equal
to the excess of the Fair Market Value of such Share immediately
prior to the occurrence of such Change of Control over the exercise
price per Share of such Option and/or Stock Appreciation Right;
such amount to be payable in cash, in one or more kinds of stock or
property (including the stock or property, if any, payable in the
transaction) or in a combination thereof, as the Committee, in its
discretion, shall determine, and if there is no excess value, the
Committee may, in its discretion, cancel such Awards.

 

(c) Section 409A. Notwithstanding the
foregoing: (i) any adjustments made pursuant to Section 15(a) of
the Plan to Awards that are considered “deferred
compensation” within the meaning of Section 409A of the Code
shall be made in compliance with the requirements of Section 409A
of the Code; (ii) any adjustments made pursuant to Section 15(a) of
the Plan to Awards that are not considered “deferred
compensation” subject to Section 409A of the Code shall be
made in such a manner as to ensure that after such adjustment, the
Awards either continue not to be subject to Section 409A of the
Code or comply with the requirements of Section 409A of the Code;
(iii) the Administrator shall not have the authority to make any
adjustments pursuant to Section 15(a) of the Plan to the extent
that the existence of such authority would cause an Award that is
not intended to be subject to Section 409A of the Code to be
subject thereto; and (iv) if any Award is subject to Section 409A
of the Code, Section 15(b) of the Plan shall be applicable only to
the extent specifically provided in the Award Agreement and
permitted pursuant to

 

 

 

 

 

 

 

Section
24 of the Plan in order to ensure that such Award complies with
Code Section 409A.

 

 

 

16.
Amendment and
Termination of the Plan.

 

 

(a) Amendment and Termination. The Board
may amend, alter or discontinue the Plan or any Award Agreement,
but any such amendment shall be subject to approval of the
shareholders of the Company in the manner and to the extent
required by Applicable Law. In addition, without limiting the
foregoing, unless approved by the shareholders of the Company and
subject to Section 16(b), no such amendment shall be made that
would:

 

 

 

(i) increase the
maximum aggregate number of Shares which may be subject to Awards
granted under the Plan;

 

 

(ii) reduce
the minimum exercise price for Options or Stock Appreciation Rights
granted under the Plan; or

 

 

 

(iii) reduce
the exercise price of outstanding Options or Stock Appreciation
Rights, as prohibited by Section 8(c) without shareholder
approval.

 

 

(b) Effect of Amendment or Termination. No
amendment, suspension or termination of the Plan shall materially
impair the rights of any Participant with respect to an outstanding
Award, unless mutually agreed otherwise between the Participant and
the Administrator, which agreement must be in writing and signed by
the Participant and the Company, except that no such agreement
shall be required if the Administrator determines in its sole
discretion that such amendment either (i) is required or advisable
in order for the Company, the Plan or the Award to satisfy any
Applicable Law or to meet the requirements of any accounting
standard, or (ii) is not reasonably likely to significantly
diminish the benefits provided under such Award, or that any such
diminishment has been adequately compensated, except that this
exception shall not apply following a Change of Control.
Termination of the Plan shall not affect the Administrator’s
ability to exercise the powers granted to it hereunder with respect
to Awards granted under the Plan prior to the date of such
termination.

 

 

(c) Effect of the Plan on Other
Arrangements. Neither the adoption of the Plan by the Board
or a Committee nor the submission of the Plan to the shareholders
of the Company for approval shall be construed as creating any
limitations on the power of the Board or any Committee to adopt
such other incentive arrangements as it or they may deem desirable,
including without limitation, the granting of restricted shares or
restricted share units or stock options otherwise than under the
Plan, and such arrangements may be either generally applicable or
applicable only in specific cases.

 

 

17.
Designation of Beneficiary.

 

 

 

(a) An Awardee may file
a written designation of a beneficiary who is to receive the
Awardee’s rights pursuant to Awardee’s Award or the
Awardee may include his or her Awards in an omnibus beneficiary
designation for all benefits under the Plan. To the extent that
Awardee has completed a designation of beneficiary while employed
with the

 

 

 

 

 

Company, such
beneficiary designation shall remain in effect with respect to any
Award hereunder until changed by the Awardee to the extent
enforceable under Applicable Law.

 

(b) Such designation of
beneficiary may be changed by the Awardee at any time by written
notice. In the event of the death of an Awardee and in the absence
of a beneficiary validly designated under the Plan who is living at
the time of such Awardee’s death, the Company shall allow the
legal representative of the Awardee’s estate to exercise the
Award.

 

 

18.
No Right to Awards or to Employment.

 

No
person shall have any claim or right to be granted an Award and the
grant of any Award shall not be construed as giving an Awardee the
right to continue in the employ of the Company or its Affiliates.
Further, the Company and its Affiliates expressly reserve the
right, at any time, to dismiss any Employee or Awardee at any time
without liability or any claim under the Plan, except as provided
herein or in any Award Agreement entered into
hereunder.

 

 

19.
Legal Compliance.

 

Shares
shall not be issued pursuant to an Option, Stock Appreciation
Right, Stock Award or Other Stock-Based Award unless such Option,
Stock Appreciation Right, Stock Award or Other Stock-Based Award
and the issuance and delivery of such Shares shall comply with
Applicable Law, specifically including without limitation all
applicable federal and state securities laws and regulations, and
shall be further subject to the approval of counsel for the Company
with respect to such compliance. Unless the Awards and Shares
covered by this Plan have been registered under the Securities Act
or the Company has determined that such registration is
unnecessary, each person receiving an Award and/or Shares pursuant
to any Award may be required by the Company (a) to give a
representation in writing that such person is acquiring such Shares
for his or her own account for investment and not with a view to,
or for sale in connection with, the distribution of any part
thereof, and (b) to make such additional representations,
warranties, and agreements with respect to the investment intent of
such person or persons as the Company may request.

 

 

All
certificates for Shares or certificates, agreements, or other
documents evidencing securities delivered under the Plan shall be
subject to such stop-transfer orders and other restrictions as the
Company may deem advisable under the rules, regulations, and other
requirements of the Securities and Exchange Commission, any
securities law, and the Company may cause a legend or legends to be
put on any such certificates, agreements or other documents to make
appropriate reference to such restrictions.

 

 

In the
case of the exercise of an Option by a person or estate acquiring
the right to exercise such Option by bequest or inheritance, the
Administrator may require reasonable evidence as to the ownership
of such Option and may require such consents and releases of taxing
authorities as the Administrator deems advisable.

 

 

 

 

 

20.
Inability to Obtain Authority.

 

 

 

To the
extent the Company is unable to or the Administrator deems it
unfeasible to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company’s
counsel to be advisable or necessary to the lawful issuance and
sale of any Shares hereunder, the Company shall be relieved of any
liability with respect to the failure to issue or sell such Shares
as to which such requisite authority shall not have been
obtained.

 

 

21.
Reservation of Shares.

 

 

The
Company, during the term of this Plan, will at all times reserve
and keep available such number of Shares as shall be sufficient to
satisfy the requirements of the Plan.

 

22.
Notice.

 

Any
written notice to the Company required by any provisions of this
Plan shall be addressed to the Secretary of the Company and shall
be effective when received. Any notice to a Participant hereunder
shall be addressed to the last address of record with the Company
and shall be effective when sent via first class mail, courier
service, or electronic mail to such last address of
record.

 

 

23.
Governing Law; Interpretation of Plan and Awards.

 

(a) This Plan and all
determinations made and actions taken pursuant hereto shall be
governed by the substantive laws, but not the choice of law rules,
of the state of Delaware, except as to matters governed by U.S.
federal law.

 

 

(b) In the event that
any provision of the Plan or any Award granted under the Plan is
declared to be illegal, invalid or otherwise unenforceable by a
court of competent jurisdiction, such provision shall be reformed,
if possible, to the extent necessary to render it legal, valid and
enforceable, or otherwise deleted, and the remainder of the terms
of the Plan and/or Award shall not be affected except to the extent
necessary to reform or delete such illegal, invalid or
unenforceable provision.

 

 

(c) The headings
preceding the text of the sections hereof are inserted solely for
convenience of reference, and shall not constitute a part of the
Plan, nor shall they affect its meaning, construction or
effect.

 

(d) The terms of the
Plan and any Award shall inure to the benefit of and be binding
upon the parties hereto and their respective permitted heirs,
beneficiaries, successors and assigns.

 

 

24.
Section 409A.

 

It is
the intention of the Company that no Award shall be “deferred
compensation” subject to Section 409A of the Code, unless and
to the extent that the Administrator specifically determines
otherwise, and the Plan and the terms and conditions of all Awards
shall be interpreted accordingly. The terms and conditions
governing any Awards that the Administrator

 

 

 

 

 

determines will be
subject to Section 409A of the Code, including any rules for
elective or mandatory deferral of the delivery of cash or Shares
pursuant thereto and any rules regarding treatment of such Awards
in the event of a Change of Control, shall be set forth in the
applicable Award Agreement, deferral election forms and procedures,
and rules established by the Administrator, and shall comply in all
respects with Section 409A of the Code. The following rules will
apply to Awards intended to be subject to Section 409A of the Code
(“409A
Awards”):

 

 

 

(a) If a Participant is
permitted to elect to defer an Award or any payment under an Award,
such election will be permitted only at times in compliance with
Code Section 409A.

 

 

 

(b) The Company shall
have no authority to accelerate distributions relating to 409A
Awards in excess of the authority permitted under Section
409A.

 

 

(c) Any distribution of
a 409A Award following a Termination of Employment that would be
subject to Code Section 409A(a)(2)(A)(i) as a distribution
following a separation from service of a “specified
employee” as defined under Code Section 409A(a)(2)(B)(i),
shall occur no earlier than the expiration of the six-month period
following such Termination of Employment.

 

 

(d) In the case of any
distribution of a 409A Award, if the timing of such distribution is
not otherwise specified in the Plan or an Award Agreement or other
governing document, the distribution shall be made not later than
the end of the calendar year during which the settlement of the
409A Award is specified to occur.

 

 

(e) In the case of an
Award providing for distribution or settlement upon vesting or the
lapse of a risk of forfeiture, if the time of such distribution or
settlement is not otherwise specified in the Plan or an Award
Agreement or other governing document, the distribution or
settlement shall be made not later than March 15 of the year
following the year in which the Award vested or the risk of
forfeiture lapsed.

 

 

(f) Notwithstanding
anything herein to the contrary, in no event shall the Company or
the Administrator be liable for the payment of, or any gross up
payment in connection with, any taxes or penalties owed by the
Participant pursuant to Code Section 409A.

 

 

25.
Limitation on Liability.

 

 

 

The
Company and any Affiliate which is in existence or hereafter comes
into existence shall not be liable to a Participant, an Employee,
an Awardee or any other persons as to:

 

 

(a) The Non-Issuance of Shares. The
non-issuance or sale of Shares as to which the Company has been
unable to obtain from any regulatory body having jurisdiction the
authority deemed by the Company’s counsel to be necessary to
the lawful issuance and sale of any shares hereunder;
and

 

 

 

 

 

(b) Tax or Exchange Control Consequences.
Any tax consequence or any exchange control obligation owed, by any
Participant, Employee, Awardee or other person due to the receipt,
exercise or settlement of any Option or other Award granted
hereunder.

 

 

 

26.
Unfunded Plan.

 

 

Insofar
as it provides for Awards, the Plan shall be unfunded. Although
bookkeeping accounts may be established with respect to Awardees
who are granted Stock Awards or Other Stock-Based Awards under this
Plan, any such accounts will be used merely as a bookkeeping
convenience. The Company shall not be required to segregate any
assets which may at any time be represented by Awards, nor shall
this Plan be construed as providing for such segregation. Neither
the Company nor the Administrator shall be deemed to be a trustee
of stock or cash to be awarded under the Plan. Any liability of the
Company to any Participant with respect to an Award shall be based
solely upon any contractual obligations which may be created by the
Plan; no such obligation of the Company shall be deemed to be
secured by any pledge or other encumbrance on any property of the
Company. Neither the Company nor the Administrator shall be
required to give any security or bond for the performance of any
obligation which may be created by this Plan.

 

 

27.
Foreign Employees.

 

 

Awards
may be granted hereunder to Employees and Consultants who are
foreign nationals, who are located outside the United States or who
are not compensated from a payroll maintained in the United States,
or who are otherwise subject to (or could cause the Company to be
subject to) legal or regulatory provisions of countries or
jurisdictions outside the United States, on such terms and
conditions different from those specified in the Plan as may, in
the judgment of the Administrator, be necessary or desirable to
foster and promote achievement of the purposes of the Plan, and, in
furtherance of such purposes, the Administrator may make such
modifications, amendments, procedures, or subplans as may be
necessary or advisable to comply with such legal or regulatory
provisions.

 

 

28.
Tax Withholding.

 

 

Each
Participant shall pay to the Company, or make arrangements
satisfactory to the Company regarding the payment of, any federal,
state, local or foreign taxes of any kind required by law to be
withheld with respect to any Award under the Plan no later than the
date as of which any amount under such Award first becomes
includible in the gross income of the Participant for any tax
purposes with respect to which the Company has a tax withholding
obligation. Unless otherwise determined by the Company, withholding
obligations may be settled with Shares, including Shares that are
part of the Award that gives rise to the withholding requirement;
provided, however, that not more than the legally required minimum
withholding may be settled with Shares that are part of the Award.
The obligations of the Company under the Plan shall be conditional
on such payment or arrangements, and the Company and its Affiliates
shall, to the extent permitted by law, have the right to deduct any
such taxes from any vested Shares or any other payment due to the
participant at that time or at any future time. The Administrator
may establish such procedures as it deems appropriate, including
making irrevocable elections, for the settlement of withholding
obligations with Shares.

 

 

 

 

 

29.

Cancellation of Award; Forfeiture of
Gain.

 

 

 

Notwithstanding
anything to the contrary contained herein, an Award Agreement may
provide that the Award will be cancelled and the Participant will
forfeit the Shares or cash received or payable on the vesting or
exercise of the Award, and that the amount of any proceeds of the
sale or gain realized on the vesting or exercise of the Award must
be repaid to the Company, under such conditions as may be required
by Applicable Law or established by the Committee in its sole
discretion.

 

 

30.

Data
Privacy and Transfer

 

As a
condition of acceptance of an Award, the Participant explicitly
thereby consents to the collection, use and transfer, in electronic
or other form, of personal data by and among, as applicable, the
Company and its Affiliates for the exclusive purpose of
implementing, administering and managing the Participant’s
participation in the Plan. The Participant understands that the
Company and its Affiliates hold certain personal information about
the Participant, including the Participant’s name, home
address and telephone number, date of birth, social security or
other identification number, salary, nationality, job title, Shares
held in the Company or any Subsidiary, details of all Awards or any
other entitlement to Shares awarded, canceled, exercised, vested,
unvested or outstanding in the Participant’s favor, for the
purpose of implementing, managing and administering the Plan (the
“Data”). The
Participant further understands that the Company and its Affiliates
may transfer the Data among themselves as necessary for the purpose
of implementation, management and administration of the Plan, and
that the Company and its Affiliates may each further transfer the
Data to any third parties assisting the Company in the
implementation, management, and administration of the Plan. The
Participant understands that these recipients may be located in the
Participant’s country, or elsewhere, and that the
recipient’s country may have different data privacy laws and
protections than the Participant’s country. The Participant
understands that he or she may request a list with the names and
addresses of any potential recipients of the Data by contacting his
or her local human resources representative. The Participant,
through participation in the Plan and acceptance of an Award under
the Plan, authorizes such recipients to receive, possess, use,
retain and transfer the Data, in electronic or other form, for the
purposes of implementing, administering and managing the Plan,
including any requisite transfer of such Data as may be required to
a broker or other third party with whom the Participant may elect
to deposit any Shares. In addition, by accepting an Award under the
Plan, each Participant agrees and acknowledges (i) that the Data
will be held only as long as is necessary to implement, manage, and
administer the Plan; (ii) that the Participant may, at any time,
view the Data, request additional information about the storage and
processing of the Data, require any necessary amendments to the
Data, or refuse or withdraw consent to the use and transfer of the
Data, without cost, by delivering such revocation or withdrawal of
consent in writing to a designated human resources representative;
and (iii) that refusal or withdrawal of consent may affect the
Participant’s ability to participate in the Plan
thereafter.

 

 

 

 

 

This
Plan was adopted by the Board of Directors of the Company on April
4, 2016.

 

This
Plan was approved by the stockholders of the Company on April 4,
2016.

 

 

 

MONOPAR
THERAPEUTICS INC.

 

 

 

 
04/04/2016

 

 

 

 

 

 

 

By:
/s/ Chandler D.
Robinson

 

Name:
Chandler D. Robinson

Title:
CEO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

.

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