Document:

Exhibit
10.2

 

EMPLOYMENT
AGREEMENT

 

THIS
PERSONAL EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into this day 25 May 2015 by and between
ReWalk Robotics Ltd. (the “Company”), and Ori Gon

 

and
(the “Employee”) (each, a “Party” and collectively - the “Parties”).

 

WHEREAS,
the Company wishes to employ the Employee, and the Employee wishes to be employed by the Company; and

 

WHEREAS,
the Parties wish to state the terms and conditions of the Employee’s employment by the Company, as set forth below;

 

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

 

General

 

1. Position. The Employee shall serve in the position described in Section ‎4 to Schedule ‎1 attached hereto
(“Schedule ‎‎1”) (the “Position”). In such Position the Employee shall report regularly
and shall be subject to the direction and control of the Company’s management, and specifically under the direction of the person
specified in Section ‎5 to Schedule ‎‎1 (the “Direct Manager”). The Direct Manager may be replaced
from time to time by the Company at its discretion. The Employee shall act in accordance with the Company’s regulations, guidelines,
budgets, policies, procedures and general instructions, as shall be updated from time to time, and shall perform his duties diligently,
conscientiously and in furtherance of the Company’s best interests. The employee shall not use the tools, facilities and equipments
of the Company for personal purposes, unless approved in advance by the Employee’s Direct Manager. The Employee agrees and undertakes
to inform the Company, immediately after becoming aware of any matter that may in any way raise a conflict of interest between
the Employee and the Company.

 

2.
Full Time Employment. The Employee will be employed on a full time basis. The Employee shall devote the Employee’s entire
business time and attention to the business of the Company and shall not undertake or accept any other paid or unpaid employment
or occupation or engage in any other business activity, except with the prior written consent of the Company.

 

3.
 Location. The Employee shall perform the Employee’s duties hereunder at the Company’s facilities in Israel, but
understands and agrees that such duties may involve domestic and international travel.

 

4.
 Employee’s Representations and Warranties. The Employee confirms, represents and warrants that:

 

4.1.
the execution and delivery of this Agreement and the fulfillment of its terms: (a) will not constitute a default under or conflict
with any agreement or other instrument to which the Employee is a party or by which the Employee is bound; and (b) do not require
the consent of any person or entity. Further, with respect to any past engagement of the Employee with third parties and with
respect to any permitted engagement of the Employee with any third party during the term of the Employee’s engagement with the
Company (for purposes hereof, such third parties shall be referred to as “Other Employers”), the Employee represents,
warrants and undertakes that: (i) the Employee’s engagement with the Company is not and will not be in breach of any of the Employee’s
undertakings toward Other Employers, and (ii) the Employee will not disclose to the Company, nor use, in provision of any services
to the Company, any proprietary or confidential information belonging to any Other Employer; and

 

4.2.
subject to Sections ‎16-‎18 hereto, Employee shall continue to be bound by this Agreement even following change of control
in the Company.

 

5.
 Report. The Employee shall be required to comply with the Company guidelines (as amended from time to time) with
respect to the report and registration of hours the Employee devoted to the Company during each day of employment hereunder.

 

6.
 Proprietary Information; Assignment of Inventions and Non-Competition. By executing this Agreement the Employee
confirms and agrees to the provisions of the Company’s Proprietary Information, Assignment of Inventions and Non-Competition Agreement
attached as Schedule ‎‎6 hereto (“Employee’s Undertaking”). The Employee acknowledges and agrees
that 20% of the Base Salary is paid as special supplementary monthly compensation in consideration for Employee’s Undertaking
(the “Special Non-Competition Monthly Compensation”). The Employee warrants and represents that the Special Non-Competition
Monthly Compensation constitutes a real, appropriate and full consideration to any prejudice the Employee may suffer due to the
Employee’s non-competition obligations, including but not limited to restriction of the Employee’s freedom of employment.

 

     

     

    

 

Salary
and Additional Compensation; Bonuses; Insurance; Advanced Study Fund

 

7.
 Salary. The Company shall pay to the Employee as compensation for the employment services an aggregate base salary
in the gross monthly amount set forth in Section ‎6 to Schedule ‎‎1 (the “Base Salary”). In addition,
the Company shall pay to the Employee an additional gross monthly amount, as set forth in Section ‎7 to Schedule ‎‎1
for all of the Employee’s overtime hours, as they may be from time to time (the “Additional Compensation”;
the Base Salary together with the Additional Compensation, the “Salary”). In addition, the Company shall pay
the Employee for any and all daily travel costs to which the Employee may be entitled under any applicable law or orders, to the
extent any apply. Except as specifically set forth herein, the Salary includes any and all payments to which the Employee is entitled
from the Company hereunder and under any applicable law, regulation or agreement, and Employee waives any claim or demand for
any payment in excess thereof. The Employee’s Salary and other terms of employment may be reviewed and updated by the Company’s
management from time to time, at the Company’s sole discretion. The Salary is to be paid to the Employee in accordance with the
Company’s normal and reasonable payroll practices, after deduction of applicable taxes and like payments.

 

7.1.

 

8.
 Manager’s Insurance/Pension Fund.

 

8.1.
The Company will insure the Employee under a “Manager’s Insurance Policy” (“Bituach Menahalim”)
(“Policy”) or a Pension Fund (“Pension Fund”) to be selected by the Employee. At the end
of each month during the employment of Employee, the Company shall pay an aggregate amount equal to 13.33% of the Salary for the
preceding month to the Policy or 14.33% of the Salary for the preceding month to the Pension Fund (the “Company’s
Contribution”), as follows: (a) 8.33% for severance pay component; and (b) for savings and risk component, either (i)
in the case of a Policy, 5%, subject to deduction of 5% from the Salary by the Employee, as detailed below; or (ii) in
the case of a Pension Fund, 6%, subject to deduction of 5.5% from the Salary, as detailed below. In addition, if the Employee
shall elect a Policy, the Company shall pay up to 2.5% of the Salary towards loss of working capacity disability insurance (depending
on the cost to the Company necessary to provide coverage) to be purchased by the Company. The Employee agrees that the Company
shall deduct from the Salary an amount equal to 5% or 5.5% of the Salary for the preceding month, and shall pay such amount as
premium payable in respect for savings and risk component of the Policy or the Pension Fund, as the case may be (the “Employee’s
Contributions”). If the Employee elects to be insured under a combination of the Policy and Pension Plan, the Employee
may determine the allocation between the two, provided that, in any event the Company’s contributions
will not exceed the maximum amounts set forth above.

 

8.2.
The appointment of the insurance agent for the Policy and/or Pension Fund (as applicable)will be in the sole discretion of the
Company.

 

8.3.
The Company undertakes to transfer the Policy and/or Pension Fund (as applicable) to the Employee after termination of the Employee’s
employment with the Company, whether terminated by the Company or the Employee. Notwithstanding the above, in the event that the
Employee’s employment is terminated with “Cause” as defined in Section ‎18 hereto or if the Employee fails
to comply with any of the Employee’s obligations to the Company, the Company will not be obliged to release to the Employee the
Company’s Contributions.

 

8.4.
The Company’s Contributions will be in lieu of the severance pay that the Employee will be entitled to (if entitled)
in the event of termination of the Employee’s employment, all in accordance with the provisions of section 14 of the Severance
Pay Law, 5723-1963. The Employee’s signature on this Agreement represents the Employee’s agreement to the content
of this Section. The Company waives in advance any right it may have in the future for the return of the Company’s Contributions,
or any of them, unless:

 

8.4.1.
The Employee’s entitlement for severance pay has been deprived by a judgment, under the provisions of sections 16 or 17
of the Severance Pay Law, 5723-1963, and as long as it was so deprived; or

 

8.4.2.
The Employee has withdrawn monies from the Policy and/or Pension Fund (as applicable)not in circumstances of death,
disability or retirement at the age of 60 or more.

 

A
copy of the Order and Confirmation Regarding Payments of Employers to Pension Funds and Insurance Funds instead of Severance Pay
is attached as Schedule ‎‎8.4 to this Agreement.

 

8.5.
The Company’s Contribution to the Policy shall be calculated solely based on the Salary, and the Employee’s entitlement to severance
pay, if any, shall be calculated solely based on the Salary and no other payment, right or benefit to which the Employee is entitled
under this Agreement or by law shall be taken into account in such calculations.

 

9.
Further Education Fund (“Keren Hishtalmut”)

 

9.1.
The Company together with the Employee will maintain a Further Education Fund (the “Education Fund”). Each
month the Company shall contribute to the Education Fund an amount equal to 7.5 % of the Salary and the Employee shall
contribute to the Education Fund an amount equal to 2.5% of the Base Salary.

 

9.2.
The Employee hereby agrees that all of the Employee’s aforementioned contributions shall be transferred to the Education Fund
by the Company by deducting such amounts from each monthly Salary payment.

 

9.3.
The Company reserves the right not to release to the Employee the amounts contributed by the Company to the Education Fund in
the event that Employee’s termination was with “Cause,” as defined in Section ‎‎18 hereto.

 

    2

     

    

 

9.4.
For the avoidance of doubt, no amount remitted by the Company in respect of this Section ‎‎9 shall be considered as part
of the Salary for any purpose, including for purposes of any deduction therefrom or calculation of severance pay.

 

9.5.
The Employee acknowledges that the amounts accumulated in the Education Fund may be taxable and will bear all taxes in connection
therewith.

 

Additional
Benefits

 

10.
Expenses. The Company will reimburse the Employee for reasonable business expenses borne by the Employee, provided that such
expenses were approved in advance and in writing by the Company, and against valid invoices furnished by the Employee to the Company.

 

11.
 Vacation.

 

11.1.
During each year, the Employee shall be entitled to the number of paid vacation days set forth in Section 9 to Schedule ‎‎1
(“Annual Vacation Days”), to be used at times subject to the reasonable approval of the Company, and shall
be obligated to use at least seven (7) consecutive vacation days during each year (the “Mandatory Vacation Days”).
The Employee acknowledges and agrees that the Employee shall not be entitled to accumulate any Mandatory Vacation Days, but may
carry forward Excess Vacation Days (as defined in Section ‎11.2 below) from one year to the next, provided that
(a) such days may only be carried forward for a period of two (2) years, and (b) the Employee shall not be entitled to
accumulate more than the number of vacation days set forth in Section 10 to Schedule ‎1 at any time. During the Term, the
Employee shall not be entitled to receive payment in lieu of any unused vacation days. Upon termination of employment, the Employee
shall be entitled to redeem the unused vacation days the Employee is entitled to accumulate hereunder. In the event the Employee’s
employment shall terminate for any reason prior to the end of a year, the Employee shall only be entitled to such number of vacation
days pro-rated (on a linear basis) to the period of time in such year during which the Employee was employed by the Company. If
the Employee had used in such year more then such pro-rated amount of vacation days, such extra vacation days shall be deemed
a debt of the Employee to the Company which the Company may deduct from Employee’s Salary or any other monies due and payable
to the Employee by the Company, and the Employee hereby agrees to such deduction.

 

11.2.
“Excess Vacation Days” means all the Annual Vacation Days less the Mandatory Vacation Days.

 

12.
Sick Leave; Recuperation Pay. The Employee shall be entitled to that number of paid sick leave per year as set forth
in Section 11 to Schedule ‎‎1 (with unused days to be accumulated up to the limit set pursuant to applicable law, which,
for the avoidance of doubt, shall not be redeemable upon termination of employment or otherwise), and also to Recuperation Pay
(“Dmei Havra’a”) in accordance with to applicable law.

 

13.
Options. Subject to a resolution duly resolved by the Board of Directors of the Company (the “Board”),
the Board may, at its discretion, grant the Employee an option to purchase shares of the Company at a price per share and under
terms and conditions as determined by it (the “Option”). If granted, (A) the Option shall be subject to the terms
of (a) the Company’s applicable share option plan and (b) an option agreement to be executed between the Company and the Employee;
and (B) as a condition preceding to such grant, the Employee may be required to execute additional documents in compliance with
the applicable tax laws and/or other applicable laws.

 

14.
 Cellular Phone During the Term the Company may, at its discretion, provide the Employee a Company’s cellular phone
(the “Cellular Phone”), for use in connection with Employee’s duties hereunder, pursuant to Company’s policy,
as may be amended from time to time. The Company shall bear all expenses relating to the Employee’s use and maintenance
of the Cellular Phone attributed to the Employee under this Section up to an amount to be determined by the Company from time
to time, with any excess whereof to be borne solely by the Employee. Such amount in excess shall be deemed a debt of the Employee
to the Company which the Company may deduct from Employee’s Salary or any other monies due and payable to the Employee by the
Company, and the Employee hereby agrees to such deduction. The Employee shall return the Cellular Phone to Company’s principal
office immediately upon termination of Employee’s employment with Company or notice of termination or such other time as directed
by the Company at its sole discretion. Employee shall have no rights of lien with respect to the Cellular Phone. The Employee
shall bear and be liable for any and all tax liabilities applicable to the Employee in connection with the above.

 

15.
 Car.

 

15.1.
Subject to the Company sole discretion, the Company shall provide the Employee a car of make and model as set forth in Section
12 to Schedule ‎1 (the “Car”), as part of the Company’s car leasing arrangement. The Car (with the keys and
all licenses and other documentation relating to the Car) will be returned to the Company by the Employee immediately upon termination
of the Employee’s employment for whatever reason, or notice of termination or such other time as directed by the Company at its
sole discretion. Use of the Car shall be made at all times only in accordance with (a) the regulations, limitations, restrictions
and other provisions of the Company’s car policy, as may be amended from time to time by the Company, and (b) the documentation
provided by the leasing company, as amended from time to time. If required by the Company, the Employee will execute additional
documents with respect to the lease and use of the Car.

 

    3

     

    

 

15.2.
The Company will bear all of the fixed and variable maintenance cost, including license, insurance, gas, repairs etc., but excluding
personal traffic fines and the like. These payments will be paid by the Employee.

 

15.3.
The Employee shall bear and be liable for any and all tax liability applicable to the use of the Car (“Hachnasa Zkufa”)
and shall not be entitled to any reimbursement therefor. The Employee shall bear all expenses, loses, damages etc. caused as a
result of the breach of his duties under the Company’s and the leasing company’s instructions for use of the Car,
up to the “self payment” (Hishtatfut Atsmit) according to the leasing agreement.

 

15.4.
In the event of returning of the car for any reason, except termination of employment initiated by the Company during the first
six (6) months of employment, the Employee shall bear the fines for early returning of the car to the leasing company, according
to the leasing agreement (early returning in the first leasing year –3 month leasing payments). The Car will be returned
to the Company by the Employee upon the termination of employment.

 

15.5.
The Employee’s spouse and children may be granted use of the car subject to holding driver license of a minimum of 2 years
and subject to the terms and conditions of the leasing company ; no other person, except as otherwise authorized by the Company,
shall be granted use the car.

 

15.6.
The Employee shall:

 

15.6.1.
bear all costs of any tolls, in case used for personal purpose (e.g.: road number 6), tickets, traffic offense or fines
of any kind and any insurance self-participation payment related to the Car; such amounts shall be deemed a debt of the Employee
to the Company which the Company may deduct from Employee’s Salary or any other monies due and payable to the Employee by the
Company, and the Employee hereby agree to such deduction; and

 

15.6.2.
  take good care of the Car and ensure that the provisions and conditions of any policy of insurance relating thereto are
observed (including the provisions with respect to the protection of the Car).

 

15.7.
The Employee shall bear and be liable for any and all tax liability applicable to the use of the Car.

 

Term
and Termination of Employment

 

16.
Term. The Employee’s employment by the Company under this Agreement shall commence on the date set forth in Section
13 to Schedule ‎1 (the “Commencement Date”), and shall continue until it is terminated pursuant to the terms
set forth herein (the “Term”).

 

17.
 Termination at Will.

 

17.1.
Either Party may terminate the employment relationship hereunder at any time by giving the other Party a prior written notice
as set forth in Section 14 to Schedule ‎‎1 (the “Notice Period”). During the Notice Period and unless
otherwise determined by the Company in a written notice to the Employee pursuant to its right under Section ‎17.3 hereto:
(a) the employment relationship hereunder shall remain in full force and effect, (b) the Employee shall be obligated to continue
to discharge and perform all of the Employee’s duties and obligations with Company, and (c) the Employee shall cooperate with
the Company and assist the Company with the integration into the Company of the person who will assume the Employee’s responsibilities.
It is hereby clarified and agreed that if, during the Notice Period, Employee shall not attend the Company during normal working
hours for any reason other than as instructed or consented by the Company, the Employee shall not be entitled to any payment (including
Salary or any portion whereof) for such days of non-attendance.

 

17.2.
In the event that the Employee does not deliver to the Company the required prior notice, the Employee shall pay compensation
to the Company of an amount equal to the Salary to which the Employee would have been entitled during the Notice Period. Such
amount shall be deemed a debt of the Employee to the Company and the Company shall be entitled to deduct such amount from any
monies due and payable to the Employee.

 

17.3.
Notwithstanding the aforesaid, the Company is entitled to terminate this Agreement and the employment relationship with immediate
effect upon a written notice to Employee and payment to the Employee of a one time amount equal to the Salary to which the Employee
would have been entitled during the Notice Period, in lieu of such prior notice.

 

    4

     

    

 

18.
Termination for Cause. The Company may immediately terminate the employment relationship for Cause, and such termination
shall be effective as of the time of notice of the same. “Cause” means: (a) a material breach of this Agreement;
(b) any willful failure to perform or willful failure to perform competently any of the Company’s instructions or any of the Employee’s
fundamental functions or duties hereunder; (c) engagement in willful misconduct or acting in bad faith with respect to the Company,
(d) any act of personal dishonesty or a breach of trust in connection with the Employee’s responsibilities to the Company resulting
in substantial personal enrichment of the Employee; (e) any breach by the Employee of the Proprietary Information, Assignment
of Inventions and Non-Competition Agreement attached as Schedule ‎6 hereto; (f) conviction of a felony involving moral turpitude;
(g) the use by the Employee of a controlled substance without a prescription or the use of alcohol which in any way impairs the
Employee’s ability to carry out the Employee’s duties and responsibilities; or (h) any cause justifying termination or dismissal
in circumstances in which the Company can deny the Employee severance payment under applicable law.

 

Additional
Provisions:

 

19.
 No Conflict. During the Employee’s employment by the Company, the Employee shall not receive any payment, compensation
or benefit from any third party in connection, directly or indirectly, with the Employee’s position or employment in the Company.

 

20.
 Tax. Israeli income tax and other applicable withholdings shall be deducted at source from the payments to the Employee
according to any applicable law, including, but not limited to, National Security and Health Tax.

 

21.
Military Reserve Duty. In the event of the Employee shall be called to a military reserve duty (including a “one-day”
military reserve duty), the Company shall pay the Employee the full Salary for those dates the Employee is called to military
reserve duty, provided that the Employee provides the Company an appropriate certificate in order for
the Company to receive the amounts due from the Israel National Insurance Institute.

 

Miscellaneous

 

22. (a) The Parties agree that this Agreement constitutes, among others, notification in accordance with the Notice to Employees
(Employment Terms) Law, 2002. (b) The laws of the State of Israel shall apply to this Agreement and the sole and exclusive place
of jurisdiction in any matter arising out of or in connection with this Agreement shall be the Tel-Aviv Regional Labor Court.
(c) The provisions of this Agreement are in lieu of the provisions of any collective bargaining agreement, and therefore,
no collective bargaining agreement shall apply with respect to the relationship between the Parties hereto (subject to the applicable
provisions of law). (d) No failure, delay of forbearance of either Party in exercising any power or right hereunder shall in any
way restrict or diminish such Party’s rights and powers under this Agreement, or operate as a waiver of any breach or nonperformance
by either Party of any terms of conditions hereof. (e) In the event it shall be determined under any applicable law that a certain
provision set forth in this Agreement is invalid or unenforceable, such determination shall not affect the remaining provisions
of this Agreement unless the business purpose of this Agreement is substantially frustrated thereby. (f) The preface and schedules
to this Agreement constitute an integral and indivisible part hereof. (g) Wherever appropriate herein, words used in the singular
shall be considered to include the plural, and words used in the plural shall be considered to include the singular. The masculine
gender, where appearing in this Agreement, shall be deemed to include the feminine gender. (h) This Agreement constitutes the
entire understanding and agreement between the Parties hereto, supersedes any and all prior discussions, agreements and correspondence
with regard to the subject matter hereof, and may not be amended, modified or supplemented in any respect, except by a consent
by both Parties hereto. (i) The Employee acknowledges and confirms that all terms of the Employee’s employment are personal and
confidential, and undertake to keep such term in confidence and refrain from disclosing such terms and/or any other benefit received
from the Company to any third party, including, without limitation, other employees of the Company.

  

THE
EMPLOYEE ACKNOWLEDGES THAT HE IS FAMILIAR WITH AND UNDERSTANDS THE ENGLISH LANGUAGE AND THE PROVISIONS OF THIS AGREEMENT AND DOES
NOT REQUIRE TRANSLATION OF THIS AGREEMENT OR ITS SCHEDULES TO ANY OTHER LANGUAGE.

 

העובד
מצהיר בזאת כי השפה האנגלית
מוכרת ומובנת לו וכי הוא
אינו זקוק לתרגום הסכם
זה ונספחיו לשפה אחרת. 

  

IN
WITNESS WHEREOF the Parties have signed this Agreement as of the date first hereinabove set forth.

 

	 	/s/
    Ami Kraft	 	/s/
    Ori Gon
	 	ReWalk
                                         Robotics Ltd.
	 	Ori
    Gon
	 	 	 	 
	By:	Ami
    Kraft	 	 
	Title:	General
    Manager	 	 

  

    5

     

    

 

Schedule
‎1

To
the Personal Employment Agreement by and between

ReWalk
Robotics Ltd. and the Employee whose name is set forth herein

 

	1.
       Name of Employee:	Ori
Gon
	2.
       ID No. of Employee:	043190818
	3.
       Address of Employee:	Anielewicz
St 5 A Kiriat Motzkin

	4.
       Position in the Company:	 Corporate
    Controller
	5.
       Under the Direct Direction of:	Company
    CFO
	6.
       Base Salary:	NIS
    25,200
	7.
       Additional Compensation:	NIS
    6,300
	8.
       Bonus	Annual
    bonus program of 15% of annual Salary paid annually based on annual  objectives
	9.
       Vacation Days Per Year:	20
	10.
    Maximum Accumulation of Vacation Days:	30
    days
	11.
    Sick Leave Days Per Year:	In
    accordance with applicable law
	12.
    Car make and Model:	 Scoda
    Octavia
	13.
    Commencement Date:	July
    19, 2015
	14.
    Notice Period:	60
	15.
    Non Compete Period:	24
     months

  

	 	/s/ Ori
    Gon
	 	Ori
    Gon

 

     

     

    

 

Schedule
‎6

To
the Personal Employment Agreement by and between

ReWalk
Robotics Ltd. and the Employee whose name is set forth herein

 

	Name
    of employee: Ori Gon	 
	ID
    No.of employee: 043190818	 

 

General

 

1.
Capitalized terms herein shall have the meanings ascribed to them in the Agreement to which this Schedule is attached (the “Agreement”).
For purposes of any undertaking of the Employee toward the Company, the term “Company” shall include any parent
company, subsidiaries and affiliates of the Company. The Employee’s obligations and representations and the Company’s rights under
this Schedule ‎6 shall apply as of the Commencement Date, regardless of the date of execution of the Agreement.

 

2.
For the purpose of this Schedule ‎6 to the Agreement, the term “Field” shall refer to the Company’s field
of activities, i.e. ReWalk Exoskeleton and gaiting algorithm [.

 

Confidentiality;
Proprietary Information

 

3.
“Proprietary Information” means confidential or proprietary information, whether or not patentable, whether in
tangible or intangible form (including documentary, written, oral or computer generated), and whether or not marked or otherwise
asserted as confidential, concerning the Company, including, without limitation, (i) conceptions, inventions, developments, improvements,
designs, techniques, processes, methods, ideas, know-how, reports, research and research records, drawings, technical and other
data, formulations and the existence, scope or activities of any projects of the Company (ii) equipment, products (actual or planned),
information and industrial secrets; (iii) trade secrets and market information, including, without limitation, sales, costs, prices,
prospective customers, suppliers and sources of supply; (iv) forecasts, marketing activities and plans, advertising, competitive
environments and competitors; (v) operations, credit and financial data, business information, and any information relating to
the board, advisory board(s), investments, investors, consultants, employees, budget information and technical information (including
research and development), business, strategic plans and regulatory information and affairs of the Company and its products; and
(vi) patents, patent applications, copyright, trademark, trade dress, technologies and other intellectual property rights and
strategies related thereto.

 

4.
Proprietary Information shall be deemed to include any and all proprietary information disclosed by or on behalf of the Company
and irrespective of form but excluding information that (i) was known to Employee prior to Employee’s association with the Company,
as evidenced by written records; (ii) is or shall become part of the public knowledge except as a result of the breach of the
Agreement or this Schedule by Employee; (iii) reflects general skills and experience; or (iv) reflects information and data generally
and publicly known in the industries or trades in which the Company operates.

 

5.
Employee recognizes that the Company received and will receive confidential or proprietary information from third parties, subject
to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes.
In connection with such duties, such information shall be deemed Proprietary Information hereunder, mutatis mutandis.

 

6.
Employee agrees that all Proprietary Information, and patents, trademarks, copyrights and other intellectual property and ownership
rights in connection therewith shall be the property solely of the Company its assigns. At all times, both during the employment
relationship and after the termination of the engagement between the Parties, Employee will keep in confidence and trust all Proprietary
Information, and will not use or disclose any Proprietary Information or anything relating to it without the written consent of
the Company or its subsidiaries, except as may be necessary in the ordinary course of performing Employee’s duties under the Agreement.

 

7.
Upon termination of Employee’s engagement with the Company for whatever reason, Employee will promptly deliver to the Company
all documents and materials of any nature pertaining to Employee’s engagement with the Company, and will not keep or retain any
documents or materials or copies thereof containing any Proprietary Information.

 

8.
Employee’s undertakings set forth in Section ‎3 through Section ‎7 to this Schedule shall remain in full force and effect
after termination of the Agreement or any renewal thereof.

 

Disclosure
and Assignment of Inventions

 

9.
“Inventions” means any and all inventions, improvements, designs, concepts, techniques, methods, systems, processes,
know how, computer software programs, databases, mask works and trade secrets, whether or not patentable, copyrightable or protectable
as trade secrets; “Company Inventions” means any Inventions that are made or conceived or first reduced to practice
or created by Employee, whether alone or jointly with others, during the period of Employee’s engagement with the Company, and
which are: (i) developed using equipment, supplies, facilities or Proprietary Information of the Company, (ii) result from work
performed by Employee for the Company, or (iii) related to the Field (as defined in Section ‎2 to this Schedule above), or
to past, current or anticipated research and development of the Company.

 

     

     

    

 

10.
The Employee hereby confirms that all rights that the Employee may have had at any time in any and all Company’s Inventions are
and have been from inception in the ownership solely of the Company. If ever any doubt shall arise as to the Company’s rights
or title in any Company Invention and it shall be asserted that the Employee, allegedly, is the owner of any such rights or title,
then the Employee hereby irrevocably transfers and assigns in whole to the Company without any further royalty or payment any
and all rights, title and interest in any and all Company’s Inventions. The Employee has attached as Exhibit ‎‎10
hereto a complete list of all inventions to which the Employee claims ownerships (the “Prior Inventions”) and
that the Employee desires to exclude from the operation of this Schedule, and acknowledges and agrees that such list is complete.
If no such list is attached to this Schedule, the Employee represents that the Employee has no such Prior Inventions at the time
of signing this Schedule. The Prior Inventions, if any, patented or unpatented, are excluded from the scope of this Schedule.
If, in the course of performance of services for the Company, the Employee incorporates a Prior Invention into a Company product,
process or machine, the Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide
license (with rights to sublicense through multiple tiers of sub-licensees) to make, have made, modify, use and sell such Prior
Invention. Notwithstanding the foregoing, the Employee agrees that it will not incorporate, or permit to be incorporated, Prior
Inventions in any Company’s Inventions without the Company’s prior written consent. The Employee hereby represents and undertakes
that no third party, including any of Employee’s previous employers or any entity with whom the Employee was engaged, has any
rights in the Prior Inventions and that the Employee’s employment by the Company will not grant any third party any right in the
results of the Employee’s work.

 

11.
Employee undertakes and covenants that Employee will promptly disclose in confidence to the Company all Inventions deemed as Company
Inventions. The Employee agrees and undertakes not to disclose to the Company any confidential information of any third party
and, in the framework of the Employee’s employment by the Company, not to make any use of any intellectual property rights of
any third party.

 

12.
Employee hereby irrevocably transfers and assigns to the Company all worldwide patents, patent applications, copyrights, mask
works, trade secrets and other intellectual property rights in any Company Invention, and any and all moral rights that the Employee
may have in or with respect to any Company Invention. For the avoidance of any doubt, it is hereby clarified that the provisions
contained in Section ‎‎11 and this Section ‎‎12 to this Schedule will apply also to any “Service Inventions”
as defined in the Israeli Patent Law, 1967 (the “Patent Law”). In no event will such Service Invention become
the property of the Employee, and the provisions contained in Section 132(b) of the Patent Law shall not apply, unless the Company
provides in writing otherwise. The Employee will not be entitled to royalties or other payment with regard to any Prior Inventions,
Company Inventions, Service Inventions or any of the intellectual property rights set forth above, including any commercialization
of such Prior Inventions, Company Inventions, Service Inventions or other intellectual property rights, and the Employee hereby
specifically and irrevocably waives any right the Employee may have to such payment (including, inter-alia, in relation
with Section 134 of the Patent Law).

 

13.
Employee agrees to assist the Company, at the Company’s expense, in every proper way to obtain for the Company and enforce patents,
copyrights, mask work rights, and other legal protections for the Company Inventions in any and all countries. Employee will execute
any documents that the Company may request for use in obtaining or enforcing such patents, copyrights, mask work rights, trade
secrets and other legal protections. Such obligation shall continue beyond the termination of Employee’s engagement with the Company.
Employee hereby irrevocably designates and appoints the Company and its authorized officers and agents as Employee’s agent and
attorney in fact, coupled with an interest to act for and on Employee’s behalf and in Employee’s stead to execute and file any
document needed to apply for or prosecute any patent, copyright, trademark, trade secret, any applications regarding same or any
other right or protection relating to any Proprietary Information (including Company Inventions), and to do all other lawfully
permitted acts to further the prosecution and issuance of patents, copyrights, trademarks, trade secrets or any other right or
protection relating to any Proprietary Information (including Company Inventions), with the same legal force and effect as if
executed by Employee himself.

 

Non-Competition

 

14.
In consideration of Employee’s terms of employment hereunder, which include special compensation for the Employee’s undertakings
under this Section ‎14 and the following Section ‎‎15, and in order to enable the Company to effectively protect its
Proprietary Information, Employee agrees and undertakes that, so long as the Agreement is in effect and for a period of twenty
four(24) months following termination of the Agreement for whatever reason, the Employee will not, directly or indirectly, in
any capacity whatsoever, engage in, become financially interested in, be employed by, or have any connection with any business
or venture that is engaged in any activities competing with the activities of the Company.

 

     

     

    

 

15.
Employee agrees and undertakes that during the employment relationship and for a period of twelve (12) months following termination
of this engagement for whatever reason, Employee will not, directly or indirectly, including personally or in any business in
which Employee may be an officer, director or shareholder, solicit for employment any person who is employed by the Company, or
any person retained by the Company as a consultant, advisor or the like who is subject to an undertaking towards the Company to
refrain from engagement in activities competing with the activities of the Company (for purposes hereof, a “Consultant”),
or was retained as an employee or a Consultant during the six (6) months preceding termination of Employee’s employment with the
Company.

 

Reasonableness
of Protective Covenants

 

16.
Insofar as the protective covenants set forth in this Schedule (the “Protective Covenants”) are concerned, Employee
specifically acknowledges, stipulates and agrees that: (i) the Protective Covenants are reasonable, necessary and essential to
protect the goodwill, property and Proprietary Information of the Company, and the benefits, rights and expectations of the Company
in conducting and operating its business; (ii) the area and time duration of the Protective Covenants are in all things reasonable
and necessary to protect the goodwill and the operations and business of Company, and does not impose a greater restrain than
is necessary to protect the goodwill or other business interests of the Company, and (iii) good and valuable consideration exists
under the Agreement, for Employee’s agreement to be bound by the provisions of this Schedule. Nevertheless, if any of the restrictions
set forth in this Schedule is found by a court having jurisdiction to be unreasonable or overly-broad as to geographic area, scope
or time or to be otherwise unenforceable, the Parties hereto intend for the restrictions set forth in this Schedule to be reformed,
modified and redefined by such court so as to be reasonable and enforceable and, as so modified by such court, to be fully enforced.

 

Remedies
for Breach

 

17.
Employee acknowledges that the legal remedies for breach of the provisions of this Schedule may be found inadequate and therefore
agrees that, in the event of a breach or a threatened breach of any of such provisions, the Company shall have the right, in addition
to any other remedies which may be available to it under applicable law or otherwise, to obtain temporary, preliminary and permanent
injunctions against any and all such actions. 

 

	 	/s/ Ori
    Gon
	 	Ori
    Gon

  

     

     

    

 

Schedule
8.2

Objectives
and Targets Plan for 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

Schedule
‎8.4

Order
and Confirmation Regarding Payments of Employers 

to
Pension Funds and Insurance Funds instead of Severance Pay

 

Pursuant
to the power granted to me under section 14 of the Severance Pay Law 5723-1963 (“Law”) I hereby confirm that
payments paid by an employer, commencing the date hereof, to an employee’s comprehensive pension fund into a provident fund
which is not an insurance fund, as defined in the Income Tax Regulations (Registration and Management Rules of a Provident Fund)
5724-1964 (“Pension Fund”), or to a Manager’s Insurance Fund that includes the possibility of an allowance
or a combination of payments to an Allowance Plan and to a plan which is not an Allowance Plan in an Insurance Fund (“Insurance
Fund”), including payments which the employer paid by combination of payments to a Pension Fund and to an Insurance
Fund whether there exists a possibility in the Insurance Fund to an allowance plan (“Employer Payments”), will
replace the severance pay that the employee is entitled to for the salary and period of which the payments were paid (“Exempt
Wages”) if the following conditions are satisfied:

 

	(1)	Employer Payments
    –

 

	 	(A)	for Pension Funds
    are not less than 14.33 % of the Exempt Wages or 12% of the Exempt Wages, if the employer pays for the Employee’s employee
    an additional payment on behalf of the severance pay completion for a providence fund or Insurance Fund at the rate of 2.33%
    of the Exempt Wages. If an employer does not pay the additional 2.33% on top of the 12%, then the payment will constitute
    only 72% of the Severance Pay.

 

	 	(B)	to the Insurance
    Fund are not less that one of the following:

 

	 	(1)	13.33% of the Exempt
    Wages if the employer pays the employee additional payments to insure the Employee’s monthly income in case of work disability,
    in a plan approved by the Supervisor of the Capital Market, Insurance and Savings in the Finance Ministry, at the lower of,
    a rate required to insure 75% of the Exempt Wages or 2.5% of the Exempt Wages (“Disability Payment”).

 

	 	(2)	11% of the Exempt
    Wages if the employer pays an additional Disability Payment and in this case the Employer Payments will constitute only 72%
    of the employee’s severance pay; if, in addition to the abovementioned sum, the employer pays 2.33% of the Exempt Wages
    for the purpose of Severance Pay completion to providence fund or Insurance Funds, the Employer Payments will constitute 100%
    of the severance pay.

 

	(2)	A written agreement
    must be made between the employer and employee no later than 3 months after the commencement of the Employer Payments that
    includes –

 

	 	(A)	the agreement of
    the employee to the arrangement pursuant to this confirmation which details the Employer Payments and the name of the Pension
    Fund or Insurance Fund; this agreement must include a copy of this confirmation;

 

	 	(B)	an advanced waiver
    of the employer for any right that the Employee could have to have the Employee’s payments refunded unless the employee’s
    right to severance pay is denied by judgment according to sections 16 or 17 of the Law, and in case the employee withdrew
    monies from the Pension Fund or Insurance Fund not for an Approved Event; for this matter, Approved Event or purpose means
    death, disablement or retirement at the age of 60 or over.

 

	(3)	This confirmation
    does not derogate from the employee’s entitlement to severance pay according to the Law, Collective Agreement, Extension
    Order or personal employment agreement, for any salary above the Exempt Wages

  

[Name
and Title of the Minister]

 

	/s/ Ori GonExhibit 4.5

AMENDED AND RESTATED

SEANERGY MARITIME HOLDINGS CORPORATION

 2011 EQUITY INCENTIVE PLAN

ADOPTED ON FEBRUARY 1, 2018

ARTICLE I.

 General

1.1.          Purpose

The Seanergy Maritime Holdings Corporation 2011 Equity Incentive Plan (the "Plan") is designed to provide certain Key Persons (as defined below), whose initiative and efforts are deemed to be important to the successful conduct of the business of Seanergy Maritime Holdings Corporation (the "Company"), with incentives to (a) enter into and remain in the service of the Company or its Affiliates (as defined below), (b) acquire a proprietary interest in the success of the Company, (c) maximize their performance and (d) enhance the long-term performance of the Company.

1.2.          Administration

(a)          Administration.  The Plan shall be administered by the Compensation Committee of the Company's Board of Directors (the "Board") or such other committee of the Board as may be designated by the Board to administer the Plan (the "Administrator"); provided that (i) in the event the Company is subject to Section 16 of the U.S. Securities Exchange Act of 1934, as amended (the "1934 Act"), the Administrator shall be composed of two or more directors, each of whom is a "Non-Employee Director" (a "Non-Employee Director") under Rule 16b-3 (as promulgated and interpreted by the Securities and Exchange Commission (the "SEC") under the 1934 Act, or any successor rule or regulation thereto as in effect from time to time ("Rule 16b-3")), and (ii) the Administrator shall be composed solely of two or more directors who are "independent directors" under the rules of any stock exchange on which the Company's Common Stock (as defined below) is traded; provided further, however, that, (A) the requirement in the preceding clause (i) shall apply only when required to exempt an Award intended to qualify for an exemption under the applicable provisions referenced therein, (B) the requirement in the preceding clause (ii) shall apply only when required pursuant to the applicable rules of the applicable stock exchange and (C) if at any time the Administrator is not so composed as required by the preceding provisions of this sentence, that fact will not invalidate any grant made, or action taken, by the Administrator hereunder that otherwise satisfies the terms of the Plan.  Subject to the terms of the Plan and applicable law, and in addition to other express powers and authorizations conferred on the Administrator by the Plan, the Administrator shall have the full power and authority to: (1) designate the Persons (as defined below) to receive Awards (as defined below) under the Plan; (2) determine the types of Awards granted to a participant under the Plan; (3) determine the number of shares to be covered by, or with respect to which payments, rights or other matters are to be calculated with respect to, Awards; (4) determine the terms and conditions of any Awards; (5) determine whether, and to what extent, and under what circumstances, Awards may be settled or exercised in cash, shares, other securities, other Awards or other property, or cancelled, forfeited or suspended, and the methods by which Awards may be settled, exercised, cancelled, forfeited or suspended; (6) determine whether, to what extent, and under what circumstances cash, shares, other securities, other Awards, other property and other amounts payable with respect to an Award shall be deferred, either automatically or at the election of the holder thereof or the Administrator; (7) construe, interpret and implement the Plan and any Award Agreement (as defined below); (8) prescribe, amend, rescind or waive rules and regulations relating to the Plan, including rules governing its operation, and appoint such agents as it shall deem appropriate for the proper administration of the Plan; (9)  correct any defect, supply any omission and reconcile any inconsistency in the Plan or any Award Agreement; and (10) make any other determination and take any other action that the Administrator deems necessary or desirable for the administration of the Plan.  Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations and other decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Administrator, may be made at any time and shall be final, conclusive and binding upon all Persons.

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(b)          General Right of Delegation.  Except to the extent prohibited by applicable law, the applicable rules of a stock exchange or any charter, by-laws or other agreement governing the Administrator, the Administrator may delegate all or any part of its responsibilities to any Person or Persons selected by it; provided, however, that in no event shall an officer of the Company be delegated the authority to grant Awards to, or amend Awards held by, the following individuals: (i) individuals who are subject to Section 16 of the 1934 Act, or (ii) officers of the Company (or directors of the Company) to whom authority to grant or amend Awards has been delegated hereunder; provided, further, that any delegation of administrative authority shall only be permitted to the extent it is permissible under applicable securities laws (including, without limitation, Rule 16b-3, to the extent applicable) and the rules of any applicable stock exchange.  Any delegation hereunder shall be subject to the restrictions and limits that the Administrator specifies at the time of such delegation, and the Administrator may at any time rescind the authority so delegated or appoint a new delegate.  At all times, the delegatee appointed under this Section 1.2(b) shall serve in such capacity at the pleasure of the Administrator.

(c)          Indemnification.  No member of the Board, the Administrator or any employee of the Company or an Affiliate (each such Person, a "Covered Person") shall be liable for any action taken or omitted to be taken or any determination made in good faith with respect to the Plan or any Award hereunder.  Each Covered Person shall be indemnified and held harmless by the Company against and from (i) any loss, cost, liability or expense (including attorneys' fees) that may be imposed upon or incurred by such Covered Person in connection with or resulting from any action, suit or proceeding to which such Covered Person may be a party or in which such Covered Person may be involved by reason of any action taken or omitted to be taken under the Plan or any Award Agreement and (ii) any and all amounts paid by such Covered Person, with the Company's approval, in settlement thereof, or paid by such Covered Person in satisfaction of any judgment in any such action, suit or proceeding against such Covered Person; provided that the Company shall have the right, at its own expense, to assume and defend any such action, suit or proceeding and, once the Company gives notice of its intent to assume the defense, the Company shall have sole control over such defense with counsel of the Company's choice.  The foregoing right of indemnification shall not be available to a Covered Person to the extent that a court of competent jurisdiction in a final judgment or other final adjudication, in either case not subject to further appeal, determines that the acts or omissions of such Covered Person giving rise to the indemnification claim resulted from such Covered Person's bad faith, fraud or willful criminal act or omission or that such right of indemnification is otherwise prohibited by law or by the Company's articles of incorporation or by-laws (in each case, as amended and/or restated).  The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which Covered Persons may be entitled under the Company's articles of incorporation or by-laws (in each case, as amended and/or restated), as a matter of law, or otherwise, or any other power that the Company may have to indemnify such Persons or hold them harmless.

(d)          Delegation of Authority to Senior Officers.  The Administrator may, in accordance with and subject to the terms of Section 1.2(b), delegate, on such terms and conditions as it determines, to one or more senior officers of the Company the authority to make grants of Awards to employees of the Company and its Subsidiaries (as defined below)(including any such prospective employee) and consultants of the Company and its Subsidiaries.

2

(e)          Award Grants.  Notwithstanding anything to the contrary contained herein, the Board may, in its sole discretion, at any time and from time to time, grant Awards to Non-Employee Directors or administer the Plan with respect to such Awards, in which event the Board shall have all the authority and responsibility granted to the Administrator herein with respect to such Awards.  In determining Awards to be granted under the Plan, the Administrator shall take into account such factors as it deem advisable, which may include taking into account the Company's performance, the Award recipient's performance, and/or the satisfaction of any performance goals or targets as may established from time to time.

1.3.          Persons Eligible for Awards

The Persons eligible to receive Awards under the Plan are those directors, officers and employees (including any prospective officer or employee) of the Company and its Subsidiaries and Affiliates and consultants and service providers (including individuals who are employed by or provide services to any entity that is itself such a consultant or service provider) to the Company and its Subsidiaries and Affiliates (collectively, "Key Persons") as the Administrator shall select.

1.4.          Types of Awards

Awards may be made under the Plan in the form of (a) "incentive stock options" that are intended to qualify for special U.S. federal income tax treatment pursuant to Sections 421 and 422 of the Code (as defined below), as may be amended from time to time, or pursuant to a successor provision of the Code, and which is so designated in the applicable Award Agreement, (b) non-qualified stock options (i.e., any stock options granted under the Plan that are not "incentive stock options"), (c) stock appreciation rights, (d) restricted stock, (e) restricted stock units and (f) unrestricted stock, all as more fully set forth in the Plan.  The term "Award" means any of the foregoing that are granted under the Plan. No incentive stock option (other than an incentive stock option that may be assumed or issued by the Company in connection with a transaction to which Section 424(a) of the Code applies) may be granted under the Plan to a Person who is not eligible to receive an incentive stock option under the Code.

1.5.          Shares Available for Awards; Adjustments for Changes in Capitalization

(a)          Maximum Number.  Subject to adjustment as provided in Section 1.5(c), the aggregate number of shares of common stock of the Company, par value $.0001 ("Common Stock"), with respect to which Awards may at any time be granted under the Plan shall be 3,000,000.  The following shares of Common Stock shall again become available for Awards under the Plan: (i) any shares that are subject to an Award under the Plan and that remain unissued upon the cancellation or termination of such Award for any reason whatsoever; (ii) any shares of restricted stock forfeited pursuant to the Plan or the applicable Award Agreement; provided that any dividend equivalent rights with respect to such shares that have not theretofore been directly remitted to the grantee are also forfeited; and (iii) any shares in respect of which an Award is settled for cash without the delivery of shares to the grantee.  Any shares tendered or withheld to satisfy the grant or exercise price or tax withholding obligation pursuant to any Award shall again become available to be delivered pursuant to Awards under the Plan.

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(b)          Source of Shares.  Shares issued pursuant to the Plan may be authorized but unissued Common Stock or treasury shares.  The Administrator may direct that any stock certificate evidencing shares issued pursuant to the Plan shall bear a legend setting forth such restrictions on transferability as may apply to such shares.

(c)          Adjustments.  (i)  In the event that any dividend or other distribution (whether in the form of cash, Company shares, other securities or other property), stock split, reverse stock split, reorganization, merger, consolidation, split-up, combination, repurchase or exchange of Company shares or other securities of the Company, issuance of warrants or other rights to purchase Company shares or other securities of the Company, or other similar corporate transaction or event, other than an Equity Restructuring (as defined below), affects the Company shares such that an adjustment is determined by the Administrator to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to an Award, then the Administrator shall, in such manner as it may deem equitable, adjust any or all of the number of shares or other securities of the Company (or number and kind of other securities or property) with respect to which Awards may be granted under the Plan, including the maximum number of shares issuable to an individual as set forth in Section 1.5(d).

(ii)          The Administrator is authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including the events described in Section 1.5(c)(i) or the occurrence of a Change in Control (as defined below), other than an Equity Restructuring) affecting the Company, any Affiliate, or the financial statements of the Company or any Affiliate, or of changes in applicable rules, rulings, regulations or other requirements of any governmental body or securities exchange, accounting principles or law, whenever the Administrator determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to an Award, including providing for (A) adjustment to (1) the number of shares or other securities of the Company (or number and kind of other securities or property) subject to outstanding Awards or to which outstanding Awards relate and (2) the Exercise Price (as defined below) with respect to any Award and (B) a substitution or assumption of Awards, accelerating the exercisability or vesting of, or lapse of restrictions on, Awards, or accelerating the termination of Awards by providing for a period of time for exercise prior to the occurrence of such event, or, if deemed appropriate or desirable, providing for a cash payment to the holder of an outstanding Award in consideration for the cancellation of such Award (it being understood that, in such event, any option or stock appreciation right having a per share Exercise Price equal to, or in excess of, the Fair Market Value (as defined below) of a share subject to such option or stock appreciation right may be cancelled and terminated without any payment or consideration therefor); provided, however, that with respect to options and stock appreciation rights, unless otherwise determined by the Administrator, such adjustment shall be made in accordance with the provisions of Section 424(h) of the Code.

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(iii)          In the event of (A) a dissolution or liquidation of the Company, (B) a sale of all or substantially all the Company's assets or (C) a merger, reorganization or consolidation involving the Company or one of its Subsidiaries (as defined below), the Administrator shall have the power to:

(1)  provide that outstanding options, stock appreciation rights and/or restricted stock units (including any related dividend equivalent right) shall either continue in effect, be assumed or an equivalent award shall be substituted therefor by the successor corporation or a parent corporation or subsidiary corporation;

(2)  cancel, effective immediately prior to the occurrence of such event, options, stock appreciation rights and/or restricted stock units (including each dividend equivalent right related thereto) outstanding immediately prior to such event (whether or not then exercisable) and, in full consideration of such cancellation, pay to the holder of such Award a cash payment in an amount equal to the excess, if any, of the Fair Market Value (as of a date specified by the Administrator) of the shares subject to such Award over the aggregate Exercise Price of such Award (it being understood that, in such event, any option or stock appreciation right having a per share Exercise Price equal to, or in excess of, the Fair Market Value of a share subject to such option or stock appreciation right may be cancelled and terminated without any payment or consideration therefor); or

(3)  notify the holder of an option or stock appreciation right in writing or electronically that each option and stock appreciation right shall be fully vested and exercisable for a period of 30 days from the date of such notice, or such shorter period as the Administrator may determine to be reasonable, and the option or stock appreciation right shall terminate upon the expiration of such period (which period shall expire no later than immediately prior to the consummation of the corporate transaction).

(iv)          In connection with the occurrence of any Equity Restructuring, and notwithstanding anything to the contrary in this Section 1.5(c):

(A)          The number and type of securities or other property subject to each outstanding Award and the Exercise Price or grant price thereof, if applicable, shall be equitably adjusted; and

(B)          The Administrator shall make such equitable adjustments, if any, as the Administrator may deem appropriate to reflect such Equity Restructuring with respect to the aggregate number and kind of shares that may be issued under the Plan (including, but not limited to, adjustments of the limitations set forth in Sections 1.5(a) and 1.5(d)).  The adjustments provided under this Section 1.5(c)(iv) shall be nondiscretionary and shall be final and binding on the affected participant and the Company.

(d)          Individual Limit.  Except for the limits set forth in this Section 1.5, no provision of this Plan shall be deemed to limit the number or value of shares of Common Stock with respect to which the Administrator may make Awards to any Key Person.  Subject to adjustment as provided in Section 1.5(c), the total number of shares of Common Stock with respect to which incentive stock options may be granted under the Plan to any one employee of the Company or a "parent corporation" or "subsidiary corporation" (as such terms are defined in Section 424 of the Code) of the Company during any one calendar year shall not exceed 3,125,000.  Incentive stock options granted and subsequently cancelled or deemed to be cancelled (e.g., as a result of re-pricing) in a calendar year count against the limit in the preceding sentence even after their cancellation.

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1.6.          Definitions of Certain Terms

(a)          "Affiliate" shall mean (i) any entity that, directly or indirectly, is controlled by, controls or is under common control with, the Company and (ii) any entity in which the Company has a significant equity interest, in either case as determined by the Administrator.

(b)          Unless otherwise set forth in the applicable Award Agreement, in connection with a termination of employment or consultancy/service relationship or a dismissal from Board membership, for purposes of the Plan, the term "for Cause" shall be defined as follows:

(i)          if there is an employment, severance, consulting, service, change in control or other agreement governing the relationship between the grantee, on the one hand, and the Company or an Affiliate, on the other hand, that contains a definition of "cause" (or similar phrase), for purposes of the Plan, the term "for Cause" shall mean those acts or omissions that would constitute "cause" under such agreement; or

(ii)          if the preceding clause (i) is not applicable to the grantee, for purposes of the Plan, the term "for Cause" shall mean any of the following:

(A)          any failure by the grantee substantially to perform the grantee's employment or consulting/service or Board membership duties;

(B)          any excessive unauthorized absenteeism by the grantee;

(C)          any refusal by the grantee to obey the lawful orders of the Board or any other Person to whom the grantee reports;

(D)          any act or omission by the grantee that is or may be injurious to the Company or any Affiliate, whether monetarily, reputationally or otherwise;

(E)          any act by the grantee that is inconsistent with the best interests of the Company or any Affiliate;

(F)          the grantee's gross negligence that is injurious to the Company or any Affiliate, whether monetarily, reputationally or otherwise;

(G)          the grantee's material violation of any of the policies of the Company or an Affiliate, as applicable, including, without limitation, those policies relating to discrimination or sexual harassment;

(H)          the grantee's material breach of his or her employment or service contract with the Company or any Affiliate;

(I)          the grantee's unauthorized (1) removal from the premises of the Company or an Affiliate of any document (in any medium or form) relating to the Company or an Affiliate or the customers or clients of the Company or an Affiliate or (2) disclosure to any Person of any of the Company's, or any Affiliate's, confidential or proprietary information;

(J)          the grantee's being convicted of, or entering a plea of guilty or nolo contendere to, any crime that constitutes a felony or involves moral turpitude; and

(K)          the grantee's commission of any act involving dishonesty or fraud.

6

Any rights the Company or its Affiliates may have under the Plan in respect of the events giving rise to a termination or dismissal "for Cause" shall be in addition to any other rights the Company or its Affiliates may have under any other agreement with a grantee or at law or in equity.  Any determination of whether a grantee's employment, consultancy/service relationship or Board membership is (or is deemed to have been) terminated "for Cause" shall be made by the Administrator.  If, subsequent to a grantee's voluntary termination of employment or consultancy/service relationship or voluntarily resignation from the Board or involuntary termination of employment or consultancy/service relationship without Cause or removal from the Board other than "for Cause", it is discovered that the grantee's employment or consultancy/service relationship or Board membership could have been terminated "for Cause", the Administrator may deem such grantee's employment or consultancy/service relationship or Board membership to have been terminated "for Cause" upon such discovery and determination by the Administrator.

(c)          "Code" shall mean the Internal Revenue Code of 1986, as amended.

(d)          Unless otherwise set forth in the applicable Award Agreement, "Disability" shall mean the grantee's being unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or the grantee's, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the grantee's employer.  The existence of a Disability shall be determined by the Administrator.

(e)          "Equity Restructuring" shall mean a non-reciprocal transaction between the Company and its stockholders, such as a stock dividend, stock split, spin-off, rights offering or recapitalization through a large, nonrecurring cash dividend, that affects the shares of Common Stock (or other securities of the Company) or the share price thereof and causes a change in the per share value of the shares underlying outstanding Awards.

(f)          "Exercise Price" shall mean (i) in the case of options, the price specified in the applicable Award Agreement as the price-per-share at which such share can be purchased pursuant to the option or (ii) in the case of stock appreciation rights, the price specified in the applicable Award Agreement as the reference price-per-share used to calculate the amount payable to the grantee.

(g)          The "Fair Market Value" of a share of Common Stock on any day shall be the closing price on the Nasdaq Capital Market, or such other primary stock exchange upon which such shares are then listed, as reported for such day in The Wall Street Journal, or, if no such price is reported for such day, the average of the high bid and low asked price of Common Stock as reported for such day.  If no quotation is made for the applicable day, the Fair Market Value of a share of Common Stock on such day shall be determined in the manner set forth in the preceding sentence for the next preceding trading day.  Notwithstanding the foregoing, if there is no reported closing price or high bid/low asked price that satisfies the preceding sentences, or if otherwise deemed necessary or appropriate by the Administrator, the Fair Market Value of a share of Common Stock on any day shall be determined by such methods and procedures as shall be established from time to time by the Administrator.  The "Fair Market Value" of any property other than Common Stock shall be the fair market value of such property determined by such methods and procedures as shall be established from time to time by the Administrator.

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(h)          "Person" shall mean any individual, firm, corporation, partnership, limited liability company, trust, incorporated or unincorporated association, joint venture, joint stock company, governmental body or other entity of any kind.

(i)          "Repricing" shall mean (i) lowering the Exercise Price of an option or a stock appreciation right after it has been granted, (ii) the cancellation of an option or a stock appreciation right in exchange for cash or another Award when the Exercise Price exceeds the Fair Market Value of the underlying shares subject to the Award and (iii) any other action with respect to an option or a stock appreciation right that is treated as a repricing under (A) generally accepted accounting principles or (B) any applicable stock exchange rules.

(j)          Unless otherwise set forth in the applicable Award Agreement, "Retirement" shall mean a grantee's resignation of employment or consultancy/service relationship or dismissal from the Board, with the Company's or its applicable Affiliate's prior consent, on or after (i) his or her 65th birthday, (ii) the date on which he or she has attained age 60 and completed at least five years of service with the Company or one or more of its Affiliates (using any method of calculation the Administrator deems appropriate) or (iii) if approved by the Administrator, on or after his or her having completed at least 20 years of service with the Company or one or more of its Affiliates (using any method of calculation the Administrator deems appropriate).

(k)          "Subsidiary" shall mean any entity in which the Company, directly or indirectly, has a 50% or more equity interest.

ARTICLE II.

 Awards Under The Plan

2.1.          Agreements Evidencing Awards

Each Award granted under the Plan shall be evidenced by a written certificate ("Award Agreement"), which shall contain such provisions as the Administrator may deem necessary or desirable and which may, but need not, require execution or acknowledgment by a grantee.  The Award shall be subject to all of the terms and provisions of the Plan and the applicable Award Agreement.

2.2.          Grant of Stock Options and Stock Appreciation Rights

(a)          Stock Option Grants.  The Administrator may grant non-qualified stock options and/or incentive stock options (collectively, "options") to purchase shares of Common Stock from the Company to such Key Persons, and in such amounts and subject to such vesting and forfeiture provisions and other terms and conditions, as the Administrator shall determine, subject to the provisions of the Plan.  Except to the extent otherwise specifically provided in the applicable Award Agreement, no option will be treated as an "incentive stock option" for purposes of the Code.  Incentive stock options may be granted to employees of the Company and any "parent corporation" or "subsidiary corporation" (as such terms are defined in Section 424 of the Code) of the Company.  In the case of incentive stock options, the terms and conditions of such Awards shall be subject to such applicable rules as may be prescribed by Sections 421, 422 and 424 of the Code and any regulations related thereto, as may be amended from time to time.  If an option is intended to be an incentive stock option, and if for any reason such option (or any portion thereof) shall not qualify as an incentive stock option for purposes of Section 422 of the Code, then, to the extent of such non-qualification, such option (or portion thereof) shall be regarded as a non-qualified stock option appropriately granted under the Plan; provided that such option (or portion thereof) otherwise complies with the Plan's requirements relating to option Awards.  It shall be the intent of the Administrator to not grant an Award in the form of stock options to any Key Person who is then subject to the requirements of Section 409A of the Code with respect to such Award if the Common Stock (as defined below) underlying such Award does not then qualify as "service recipient stock" for purposes of Section 409A.  Furthermore, it shall be the intent of the Administrator, in granting options to Key Persons who are subject to Section 409A and/or 457 of the Code, to structure such options so as to comply with the requirements of Section 409A and/or 457 of the Code, as applicable.

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(b)          Stock Appreciation Right Grants; Types of Stock Appreciation Rights.  The Administrator may grant stock appreciation rights to such Key Persons, and in such amounts and subject to such vesting and forfeiture provisions and other terms and conditions, as the Administrator shall determine, subject to the provisions of the Plan.  The terms of a stock appreciation right may provide that it shall be automatically exercised for a payment upon the happening of a specified event that is outside the control of the grantee and that it shall not be otherwise exercisable.  Stock appreciation rights may be granted in connection with all or any part of, or independently of, any option granted under the Plan.  It shall be the intent of the Administrator to not grant an Award in the form of stock appreciation rights to any Key Person (i) who is then subject to the requirements of Section 409A of the Code with respect to such Award if the Common Stock underlying such Award does not then qualify as "service recipient stock" for purposes of Section 409A or (ii) if such Award would create adverse tax consequences for such Key Person under Section 457A of the Code.

(c)          Nature of Stock Appreciation Rights.  The grantee of a stock appreciation right shall have the right, subject to the terms of the Plan and the applicable Award Agreement, to receive from the Company an amount equal to (i) the excess of the Fair Market Value of a share of Common Stock on the date of exercise of the stock appreciation right over the Exercise Price of the stock appreciation right, multiplied by (ii) the number of shares with respect to which the stock appreciation right is exercised.  Each Award Agreement with respect to a stock appreciation right shall set forth the Exercise Price of such Award and, unless otherwise specifically provided in the Award Agreement, the Exercise Price of a stock appreciation right shall equal the Fair Market Value of a share of Common Stock on the date of grant; provided that in no event may such Exercise Price be less than the greater of (A) the Fair Market Value of a share of Common Stock on the date of grant and (B) the par value of a share of Common Stock.  Payment upon exercise of a stock appreciation right shall be in cash or in shares of Common Stock (valued at their Fair Market Value on the date of exercise of the stock appreciation right) or any combination of both, all as the Administrator shall determine.  Repricing of stock appreciation rights granted under the Plan shall not be permitted (1) to the extent such action could cause adverse tax consequences to the grantee under Sections 409A or 457A of the Code or (2) without prior shareholder approval, to the extent such approval would be required to be obtained by the Company pursuant to the applicable rules of any applicable stock exchange on which the Common Stock is then listed, and any action that would be deemed to result in a Repricing of a stock appreciation right shall be deemed null and void if it would cause such adverse tax consequences or if any requisite shareholder approval related thereto is not obtained prior to the effective time of such action.  Upon the exercise of a stock appreciation right granted in connection with an option, the number of shares subject to the option shall be reduced by the number of shares with respect to which the stock appreciation right is exercised.  Upon the exercise of an option in connection with which a stock appreciation right has been granted, the number of shares subject to the stock appreciation right shall be reduced by the number of shares with respect to which the option is exercised.

(d)          Option Exercise Price.  Each Award Agreement with respect to an option shall set forth the Exercise Price of such Award and, unless otherwise specifically provided in the Award Agreement, the Exercise Price of an option shall equal the Fair Market Value of a share of Common Stock on the date of grant; provided that in no event may such Exercise Price be less than the greater of (i) the Fair Market Value of a share of Common Stock on the date of grant and (ii) the par value of a share of Common Stock.  Repricing of options granted under the Plan shall not be permitted (1) to the extent such action could cause adverse tax consequences to the grantee under Sections 409A or 457A of the Code or (2) without prior shareholder approval, to the extent such approval would be required to be obtained by the Company pursuant to the applicable rules of any applicable stock exchange on which the Common Stock is then listed, and any action that would be deemed to result in a Repricing of an option shall be deemed null and void if it would cause such adverse tax consequences or if any requisite shareholder approval related thereto is not obtained prior to the effective time of such action.

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2.3.          Exercise of Options and Stock Appreciation Rights

Subject to the other provisions of this Article II and the Plan, each option and stock appreciation right granted under the Plan shall be exercisable as follows:

(a)          Timing and Extent of Exercise.  Options and stock appreciation rights shall be exercisable at such times and under such conditions as determined by the Administrator and set forth in the corresponding Award Agreement, but in no event shall any portion of such Award be exercisable subsequent to the tenth anniversary of the date on which such Award was granted.  Unless the applicable Award Agreement otherwise provides, an option or stock appreciation right may be exercised from time to time as to all or part of the shares as to which such Award is then exercisable.

(b)          Notice of Exercise.  An option or stock appreciation right shall be exercised by the filing of a written notice with the Company or the Company's designated exchange agent (the "Exchange Agent"), on such form and in such manner as the Administrator shall prescribe.

(c)          Payment of Exercise Price.  Any written notice of exercise of an option shall be accompanied by payment for the shares being purchased.  Such payment shall be made: (i) by certified or official bank check (or the equivalent thereof acceptable to the Company or its Exchange Agent) for the full option Exercise Price; (ii) with the consent of the Administrator, which consent shall be given or withheld in the sole discretion of the Administrator, by delivery of shares of Common Stock having a Fair Market Value (determined as of the exercise date) equal to all or part of the option Exercise Price and a certified or official bank check (or the equivalent thereof acceptable to the Company or its Exchange Agent) for any remaining portion of the full option Exercise Price; or (iii) at the sole discretion of the Administrator and to the extent permitted by law, by such other provision, consistent with the terms of the Plan, as the Administrator may from time to time prescribe (whether directly or indirectly through the Exchange Agent), or by any combination of the foregoing payment methods.

(d)          Delivery of Certificates Upon Exercise.  Subject to Sections 3.2, 3.4 and 3.13, promptly after receiving payment of the full option Exercise Price, or after receiving notice of the exercise of a stock appreciation right for which the Administrator determines payment will be made partly or entirely in shares, the Company or its Exchange Agent shall (i) deliver to the grantee, or to such other Person as may then have the right to exercise the Award, a certificate or certificates for the shares of Common Stock for which the Award has been exercised or, in the case of stock appreciation rights, for which the Administrator determines will be made in shares or (ii) establish an account evidencing ownership of the stock in uncertificated form.  If the method of payment employed upon an option exercise so requires, and if applicable law permits, an optionee may direct the Company or its Exchange Agent, as the case may be, to deliver the stock certificate(s) to the optionee's stockbroker.

(e)          No Stockholder Rights.  No grantee of an option or stock appreciation right (or other Person having the right to exercise such Award) shall have any of the rights of a stockholder of the Company with respect to shares subject to such Award until the issuance of a stock certificate to such Person for such shares.  Except as otherwise provided in Section 1.5(c), no adjustment shall be made for dividends, distributions or other rights (whether ordinary or extraordinary, and whether in cash, securities or other property) for which the record date is prior to the date such stock certificate is issued.

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2.4.          Termination of Employment; Death Subsequent to a Termination of Employment

(a)          General Rule.  Except to the extent otherwise provided in paragraphs (b), (c), (d), (e) or (f) of this Section 2.4 or Section 3.5(b)(iii), a grantee who incurs a termination of employment or consultancy/service relationship or dismissal from the Board may exercise any outstanding option or stock appreciation right on the following terms and conditions: (i) exercise may be made only to the extent that the grantee was entitled to exercise the Award on the date of termination of employment or consultancy/service relationship or dismissal from the Board, as applicable; and (ii) exercise must occur within three months after termination of employment or consultancy/service relationship or dismissal from the Board but in no event after the original expiration date of the Award.

(b)          Dismissal "for Cause".  If a grantee incurs a termination of employment or consultancy/service relationship or dismissal from the Board "for Cause", all options and stock appreciation rights not theretofore exercised shall immediately terminate upon the grantee's termination of employment or consultancy/service relationship or dismissal from the Board.

(c)          Retirement.  If a grantee incurs a termination of employment or consultancy/service relationship or dismissal from the Board as the result of his or her Retirement, then any outstanding option or stock appreciation right shall, to the extent exercisable at the time of such Retirement, remain exercisable for a period of three years after such Retirement; provided that in no event may such option or stock appreciation right be exercised following the original expiration date of the Award.

(d)          Disability.  If a grantee incurs a termination of employment or consultancy/service relationship or a dismissal from the Board by reason of a Disability, then any outstanding option or stock appreciation right shall, to the extent exercisable at the time of such termination or dismissal, remain exercisable for a period of one year after such termination or dismissal; provided that in no event may such option or stock appreciation right be exercised following the original expiration date of the Award.

(e)          Death.

(i)          Termination of Employment as a Result of Grantee's Death.  If a grantee incurs a termination of employment or consultancy/service relationship or leaves the Board as the result of his or her death, then any outstanding option or stock appreciation right shall, to the extent exercisable at the time of such death, remain exercisable for a period of one year after such death; provided that in no event may such option or stock appreciation right be exercised following the original expiration date of the Award.

(ii)          Restrictions on Exercise Following Death.  Any such exercise of an Award following a grantee's death shall be made only by the grantee's executor or administrator or other duly appointed representative reasonably acceptable to the Administrator, unless the grantee's will specifically disposes of such Award, in which case such exercise shall be made only by the recipient of such specific disposition.  If a grantee's personal representative or the recipient of a specific disposition under the grantee's will shall be entitled to exercise any Award pursuant to the preceding sentence, such representative or recipient shall be bound by all the terms and conditions of the Plan and the applicable Award Agreement which would have applied to the grantee.

(f)          Administrator Discretion.  The Administrator may, in writing, waive or modify the application of the foregoing provisions of this Section 2.4.

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2.5.          Transferability of Options and Stock Appreciation Rights

Except as otherwise specifically provided in this Plan or the applicable Award Agreement evidencing an option or stock appreciation right, during the lifetime of a grantee, each such Award granted to a grantee shall be exercisable only by the grantee, and no such Award may be sold, assigned, transferred, pledged or otherwise encumbered or disposed of other than by will or by the laws of descent and distribution.  The Administrator may, in any applicable Award Agreement evidencing an option or stock appreciation right, permit a grantee to transfer all or some of the options or stock appreciation rights to (a) the grantee's spouse, children or grandchildren ("Immediate Family Members"), (b) a trust or trusts for the exclusive benefit of such Immediate Family Members or (c) other parties approved by the Administrator.  Following any such transfer, any transferred options and stock appreciation rights shall continue to be subject to the same terms and conditions as were applicable immediately prior to the transfer.

2.6.          Grant of Restricted Stock

(a)          Restricted Stock Grants.  The Administrator may grant restricted shares of Common Stock to such Key Persons, in such amounts and subject to such vesting and forfeiture provisions and other terms and conditions as the Administrator shall determine, subject to the provisions of the Plan.  A grantee of a restricted stock Award shall have no rights with respect to such Award unless such grantee accepts the Award within such period as the Administrator shall specify by accepting delivery of a restricted stock Award Agreement in such form as the Administrator shall determine and, in the event the restricted shares are newly issued by the Company, makes payment to the Company or its Exchange Agent by certified or official bank check (or the equivalent thereof acceptable to the Administrator) in an amount at least equal to the par value of the shares covered by the Award (which payment may be waived at the time of grant of the restricted stock Award to the extent the restricted shares granted hereunder are otherwise deemed to be fully paid and non-assessable).

(b)          Issuance of Stock Certificate.  Promptly after a grantee accepts a restricted stock Award in accordance with Section 2.6(a), subject to Sections 3.2, 3.4 and 3.13, the Company or its Exchange Agent shall issue to the grantee a stock certificate or stock certificates for the shares of Common Stock covered by the Award or shall establish an account evidencing ownership of the stock in uncertificated form.  Upon the issuance of such stock certificates, or establishment of such account, the grantee shall have the rights of a stockholder with respect to the restricted stock, subject to: (i) the nontransferability restrictions and forfeiture provisions described in the Plan (including paragraphs (d) and (e) of this Section 2.6); (ii) in the Administrator's sole discretion, a requirement, as set forth in the Award Agreement, that any dividends paid on such shares shall be held in escrow and, unless otherwise determined by the Administrator, shall remain forfeitable until all restrictions on such shares have lapsed; and (iii) any other restrictions and conditions contained in the applicable Award Agreement.

(c)          Custody of Stock Certificate.  Unless the Administrator shall otherwise determine, any stock certificates issued evidencing shares of restricted stock shall remain in the possession of the Company until such shares are free of any restrictions specified in the applicable Award Agreement.  The Administrator may direct that such stock certificates bear a legend setting forth the applicable restrictions on transferability.

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(d)          Nontransferability.  Except as otherwise specifically provided in this Plan or the applicable Award Agreement evidencing a restricted stock Award, shares of restricted stock granted under the Plan may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of prior to the lapsing of all restrictions thereon.  The Administrator at the time of grant shall specify the date or dates (which may depend upon or be related to the attainment of performance goals and other conditions) on which the nontransferability of the restricted stock shall lapse.  The Administrator may, in any applicable Award Agreement evidencing a restricted stock Award, permit a grantee to transfer all or some of the shares of restricted stock prior to the lapsing of all restrictions thereon to (i) the grantee's Immediate Family Members, (ii) a trust or trusts for the exclusive benefit of such Immediate Family Members or (iii) other parties approved by the Administrator.  Following any permitted transfer prior to the lapsing of all restrictions on the restricted stock, any transferred shares of restricted stock shall continue to be subject to the same terms and conditions as were applicable immediately prior to the transfer.

(e)          Consequence of Termination of Employment.  Unless otherwise set forth in the applicable Award Agreement, (i) a grantee's termination of employment or consultancy/service relationship or dismissal from the Board for any reason other than death, Disability or Retirement shall cause the immediate forfeiture of all shares of restricted stock that have not yet vested as of the date of such termination of employment or consultancy/service relationship or dismissal from the Board and (ii) if a grantee incurs a termination of employment or consultancy/service relationship or dismissal from the Board as the result of his or her death, Disability or Retirement, all shares of restricted stock that have not yet vested as of the date of such termination or departure from the Board shall immediately vest as of such date.  Unless otherwise determined by the Administrator, all dividends paid on shares forfeited under this Section 2.6(e) that have not theretofore been directly remitted to the grantee shall also be forfeited, whether by termination of any escrow arrangement under which such dividends are held or otherwise.  The Administrator may, in writing, waive or modify the application of the foregoing provisions of this Section 2.6(e).

2.7.          Grant of Restricted Stock Units

(a)          Restricted Stock Unit Grants.  The Administrator may grant restricted stock units to such Key Persons, and in such amounts and subject to such vesting and forfeiture provisions and other terms and conditions, as the Administrator shall determine, subject to the provisions of the Plan.  A restricted stock unit granted under the Plan shall confer upon the grantee a right to receive from the Company, conditioned upon the occurrence of such vesting event as shall be determined by the Administrator and specified in the Award Agreement, the number of such grantee's restricted stock units that vest upon the occurrence of such vesting event multiplied by the Fair Market Value of a share of Common Stock on the date of vesting.  Payment upon vesting of a restricted stock unit shall be in cash or in shares of Common Stock (valued at their Fair Market Value on the date of vesting) or both, all as the Administrator shall determine, and such payments shall be made to the grantee at such time as provided in the Award Agreement, which the Administrator shall intend to be (i) if Section 409A of the Code is applicable to the grantee, within the period required by Section 409A such that it qualifies as a "short-term deferral" pursuant to Section 409A and the Treasury Regulations issued thereunder, unless the Administrator shall provide for deferral of the Award intended to comply with Section 409A, (ii) if Section 457A of the Code is applicable to the grantee, within the period required by Section 457A(d)(3)(B) such that it qualifies for the exemption thereunder, or (iii) if Sections 409A and 457A of the Code are not applicable to the grantee, at such time as determined by the Administrator.

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(b)          Dividend Equivalents.  The Administrator may include in any Award Agreement with respect to a restricted stock unit a dividend equivalent right entitling the grantee to receive amounts equal to the ordinary dividends that would be paid, during the time such Award is outstanding and unvested, on the shares of Common Stock underlying such Award if such shares were then outstanding.  In the event such a provision is included in a Award Agreement, the Administrator shall determine whether such payments shall be (i) paid to the holder of the Award, as specified in the Award Agreement, either (A) at the same time as the underlying dividends are paid, regardless of the fact that the restricted stock unit has not theretofore vested, or (B) at the time at which the Award's vesting event occurs, conditioned upon the occurrence of the vesting event, (ii) made in cash, shares of Common Stock or other property and (iii) subject to such other vesting and forfeiture provisions and other terms and conditions as the Administrator shall deem appropriate and as shall be set forth in the Award Agreement.

(c)          Consequence of Termination of Employment.  Unless otherwise set forth in the applicable Award Agreement, (i) a grantee's termination of employment or consultancy/service relationship or dismissal from the Board for any reason other than death, Disability or Retirement shall cause the immediate forfeiture of all restricted stock units that have not yet vested as of the date of such termination of employment or consultancy/service relationship or dismissal from the Board and (ii) if a grantee incurs a termination of employment or consultancy/service relationship or dismissal from the Board as the result of his or her death, Disability or Retirement, all restricted stock units that have not yet vested as of the date of such termination or departure from the Board shall immediately vest as of such date.  Unless otherwise determined by the Administrator, any dividend equivalent rights on any restricted stock units forfeited under this Section 2.7(c) that have not theretofore been directly remitted to the grantee shall also be forfeited, whether by termination of any escrow arrangement under which such dividends are held or otherwise.  The Administrator may, in writing, waive or modify the application of the foregoing provisions of this Section 2.7(c).

(d)          No Stockholder Rights.  No grantee of a restricted stock unit shall have any of the rights of a stockholder of the Company with respect to such Award unless and until a stock certificate is issued with respect to such Award upon the vesting of such Award (it being understood that the Administrator shall determine whether to pay any vested restricted stock unit in the form of cash or Company shares or both), which issuance shall be subject to Sections 3.2, 3.4 and 3.13.  Except as otherwise provided in Section 1.5(c), no adjustment to any restricted stock unit shall be made for dividends, distributions or other rights (whether ordinary or extraordinary, and whether in cash, securities or other property) for which the record date is prior to the date such stock certificate, if any, is issued.

(e)          Transferability of Restricted Stock Units.  Except as otherwise provided in an applicable Award Agreement evidencing a restricted stock unit, no restricted stock unit granted under the Plan shall be assignable or transferable.  The Administrator may, in any applicable Award Agreement evidencing a restricted stock unit, permit a grantee to transfer all or some of the restricted stock units to (i) the grantee's Immediate Family Members, (ii) a trust or trusts for the exclusive benefit of such Immediate Family Members or (iii) other parties approved by the Administrator.  Following any such transfer, any transferred restricted stock units shall continue to be subject to the same terms and conditions as were applicable immediately prior to the transfer.

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2.8.          Grant of Unrestricted Stock

The Administrator may grant (or sell at a purchase price at least equal to par value) shares of Common Stock free of restrictions under the Plan to such Key Persons and in such amounts and subject to such forfeiture provisions as the Administrator shall determine.  Shares may be thus granted or sold in respect of past services or other valid consideration.

ARTICLE III.

 Miscellaneous

3.1.          Amendment of the Plan; Modification of Awards

(a)          Amendment of the Plan.  The Board may from time to time suspend, discontinue, revise or amend the Plan in any respect whatsoever, except that no such amendment shall materially impair any rights or materially increase any obligations under any Award theretofore made under the Plan without the consent of the grantee (or, upon the grantee's death, the Person having the right to exercise the Award).  For purposes of this Section 3.1, any action of the Board or the Administrator that in any way alters or affects the tax treatment of any Award shall not be considered to materially impair any rights of any grantee.

(b)          Stockholder Approval Requirement.  If (1) required by applicable rules or regulations of a national securities exchange or the SEC, the Company shall obtain stockholder approval with respect to any amendment to the Plan that (i) expands the types of Awards available under the Plan, (ii) materially increases the aggregate number of shares which may be issued under the Plan, except as permitted pursuant to Section 1.5(c), (iii) materially increases the benefits to participants under the Plan, including any material change to (A) permit, or that has the effect of, a Repricing of any outstanding Award, (B) reduce the price at which shares or options to purchase shares may be offered or (C) extend the duration of the Plan, or (iv) materially expands the class of Persons eligible to receive Awards under the Plan, or (2) the Administrator determines that it desires to retain the ability to grant incentive stock options under the Plan thereafter, the Company shall obtain stockholder approval with respect to any amendment to the Plan that (i) increases the number of shares that may be issued under the Plan or the individual limit set forth under Section 1.5(d) of the Plan (except, in each case, as permitted pursuant to Section 1.5(c)) or (ii) expands the class of Persons eligible to receive incentive stock options under the Plan.

(c)          Modification of Awards.  The Administrator may cancel any Award under the Plan.  The Administrator also may amend any outstanding Award Agreement, including, without limitation, by amendment which would: (i) accelerate the time or times at which the Award becomes unrestricted, vested or may be exercised; (ii) waive or amend any goals, restrictions or conditions set forth in the Award Agreement; or (iii) waive or amend the operation of Sections 2.4, 2.6(e) or 2.7(c) with respect to the termination of the Award upon termination of employment or consultancy/service relationship or dismissal from the Board; provided, however, that no such amendment shall be made without shareholder approval if such approval is necessary to comply with any tax or regulatory requirement applicable to the Award.  However, any such cancellation or amendment (other than an amendment pursuant to Section 1.5, 3.5 or 3.16) that materially impairs the rights or materially increases the obligations of a grantee under an outstanding Award shall be made only with the consent of the grantee (or, upon the grantee's death, the Person having the right to exercise the Award).  In making any modification to an Award (e.g., an amendment resulting in a direct or indirect reduction in the Exercise Price or a waiver or modification under Section 2.4(f), 2.6(e) or 2.7(c)), the Administrator may consider the implications, if any, of such modification under the Code with respect to incentive stock options granted under the Plan and/or Sections 409A and 457A of the Code with respect to Awards granted under the Plan to individuals subject to such provisions of the Code.

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3.2.          Consent Requirement

(a)          No Plan Action Without Required Consent.  If the Administrator shall at any time determine that any Consent (as defined below) is necessary or desirable as a condition of, or in connection with, the granting of any Award under the Plan, the issuance or purchase of shares or other rights thereunder, or the taking of any other action thereunder (each such action being hereinafter referred to as a "Plan Action"), then such Plan Action shall not be taken, in whole or in part, unless and until such Consent shall have been effected or obtained to the full satisfaction of the Administrator.

(b)          Consent Defined.  The term "Consent" as used herein with respect to any Plan Action means (i) any and all listings, registrations or qualifications in respect thereof upon any securities exchange or under any federal, state or local law, rule or regulation, (ii) any and all written agreements and representations by the grantee with respect to the disposition of shares, or with respect to any other matter, which the Administrator shall deem necessary or desirable to comply with the terms of any such listing, registration or qualification or to obtain an exemption from the requirement that any such listing, qualification or registration be made and (iii) any and all consents, clearances and approvals in respect of a Plan Action by any governmental or other regulatory bodies.

3.3.          Nonassignability

Except as provided in Sections 2.4(e), 2.5, 2.6(d) or 2.7(e), (a) no Award or right granted to any Person under the Plan or under any Award Agreement shall be assignable or transferable other than by will or by the laws of descent and distribution and (b) all rights granted under the Plan or any Award Agreement shall be exercisable during the life of the grantee only by the grantee or the grantee's legal representative or the grantee's permissible successors or assigns (as authorized and determined by the Administrator).  All terms and conditions of the Plan and the applicable Award Agreements will be binding upon any permitted successors or assigns.

3.4.          Taxes

(a)          Withholding.  A grantee or other Award holder under the Plan shall be required to pay, in cash, to the Company, and the Company and its Affiliates shall have the right and are hereby authorized to withhold from any Award, from any payment due or transfer made under any Award or under the Plan or from any compensation or other amount owing to such grantee or other Award holder, the amount of any applicable withholding taxes in respect of an Award, its grant, its exercise, its vesting, or any payment or transfer under an Award or under the Plan, and to take such other action as may be necessary in the opinion of the Company to satisfy all obligations for payment of such taxes.  Whenever shares of Common Stock are to be delivered pursuant to an Award under the Plan, with the approval of the Administrator, which the Administrator shall have sole discretion whether or not to give, the grantee may satisfy the foregoing condition by electing to have the Company withhold from delivery shares having a value equal to the amount of minimum tax required to be withheld.  Such shares shall be valued at their Fair Market Value as of the date on which the amount of tax to be withheld is determined.  Fractional share amounts shall be settled in cash.  Such a withholding election may be made with respect to all or any portion of the shares to be delivered pursuant to an Award as may be approved by the Administrator in its sole discretion.

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(b)          Liability for Taxes.  Grantees and holders of Awards are solely responsible and liable for the satisfaction of all taxes and penalties that may arise in connection with Awards (including, without limitation, any taxes arising under Sections 409A and 457A of the Code) and the Company shall not have any obligation to indemnify or otherwise hold any such Person harmless from any or all of such taxes.  The Administrator shall have the discretion to organize any deferral program, to require deferral election forms, and to grant or, notwithstanding anything to the contrary in the Plan or any Award Agreement, to unilaterally modify any Award in a manner that (i) conforms with the requirements of Sections 409A and 457A of the Code (to the extent applicable), (ii) voids any participant election to the extent it would violate Sections 409A or 457A of the Code (to the extent applicable) and (iii) for any distribution event or election that could be expected to violate Section 409A of the Code, make the distribution only upon the earliest of the first to occur of a "permissible distribution event" within the meaning of Section 409A of the Code or a distribution event that the participant elects in accordance with Section 409A of the Code.  The Administrator shall have the sole discretion to interpret the requirements of the Code, including, without limitation, Sections 409A and 457A, for purposes of the Plan and all Awards.

3.5.          Change in Control

(a)          Change in Control Defined.  Unless otherwise set forth in the applicable Award Agreement, for purposes of the Plan, "Change in Control" shall mean the occurrence of any of the following:

(i)          any "person" (as defined in Section 13(d)(3) of the 1934 Act), company or other entity (other than (A) the Company, (B) any trustee or other fiduciary holding securities under an employee benefit plan of the Company or an Affiliate, (C) any company or other entity owned, directly or indirectly, by the holders of the voting stock of the Company in substantially the same proportions as their ownership of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Company or (D) Jelco Delta Holding Corp., Comet Shipholding Inc. or , Claudia Restis, or any entity which Jelco Delta Holding Corp., Comet Shipholding Inc., or  Claudia Restis directly or indirectly "controls" (as defined in Rule 12b-2 under the 1934 Act)) acquires "beneficial ownership" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of more than 50% of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Company;

(ii)          the sale of all or substantially all the Company's assets in one or more related transactions to any "person" (as defined in Section 13(d)(3) of the 1934 Act), company or other entity, other than such a sale (A) to a Subsidiary which does not involve a material change in the equity holdings of the Company, (B) to an entity which has acquired all or substantially all the Company's assets or (C) Jelco Delta Holding Corp., Comet Shipholding Inc., or Claudia Restis or any entity which Jelco Delta Holding Corp., Comet Shipholding Inc. or Claudia Restis directly or indirectly "controls" (as defined in Rule 12b-2 under the 1934 Act) (any such entity described in clause (A), (B) or (C), the "Acquiring Entity") if, immediately following such sale, 50% or more of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Acquiring Entity (or, if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of more than 50% of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Acquiring Entity) is beneficially owned by the holders of the voting stock of the Company, and such voting power among the persons who were holders of the voting stock of the Company immediately prior to such sale is, immediately following such sale, held in substantially the same proportions as the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Company immediately prior to such sale;

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(iii)          any merger, consolidation, reorganization or similar event of the Company or any Subsidiary as a result of which the holders of the voting stock of the Company immediately prior to such merger, consolidation, reorganization or similar event do not directly or indirectly hold 50% or more of the aggregate voting power of the capital stock of the surviving entity ordinarily entitled to elect directors of the surviving entity (or, if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of more than 50% of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the surviving entity) and such voting power among the persons who were holders of the voting stock of the Company immediately prior to such sale is, immediately following such sale, held in substantially the same proportions as the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Company immediately prior to such sale;

(iv)          the approval by the Company's stockholders of a plan of complete liquidation or dissolution of the Company; or

(v)          during any period of 12 consecutive calendar months, individuals:

		(A)	
who were directors of the Company on the first day of such period, or

		(B)	
whose election or nomination for election to the Board was recommended or approved by at least a majority of the directors then still in office who were directors of the Company on the first day of such period, or whose election or nomination for election were so approved,

shall cease to constitute a majority of the Board.

Notwithstanding the foregoing, unless otherwise set forth in the applicable Award Agreement, for each Award subject to Section 409A of the Code, a Change in Control shall be deemed to have occurred under this Plan with respect to such Award only if a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company shall also be deemed to have occurred under Section 409A of the Code, provided that such limitation shall apply to such Award only to the extent necessary to avoid adverse tax effects under Section 409A of the Code.

(b)          Effect of a Change in Control.  Unless the Administrator provides otherwise in an Award Agreement, upon the occurrence of a Change in Control:

(i)          notwithstanding any other provision of this Plan, any Award then outstanding shall become fully vested and any restriction and forfeiture provisions thereon imposed pursuant to the Plan and the Award Agreement shall lapse and any Award in the form of an option or stock appreciation right shall be immediately exercisable;

(ii)          to the extent permitted by law and not otherwise limited by the terms of the Plan, the Administrator may amend any Award Agreement in such manner as it deems appropriate;

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(iii)          a grantee who incurs a termination of employment or consultancy/service relationship or dismissal from the Board for any reason, other than a termination or dismissal "for Cause", concurrent with or within one year following the Change in Control may exercise any outstanding option or stock appreciation right, but only to the extent that the grantee was entitled to exercise the Award on the date of his or her termination of employment or consultancy/service relationship or dismissal from the Board, until the earlier of (A) the original expiration date of the Award and (B) the later of (x) the date provided for under the terms of Section 2.4 without reference to this Section 3.5(b)(iii) and (y) the first anniversary of the grantee's termination of employment or consultancy/service relationship or dismissal from the Board.

(c)          Miscellaneous.  Whenever deemed appropriate by the Administrator, any action referred to in paragraph (b)(ii) of this Section 3.5 may be made conditional upon the consummation of the applicable Change in Control transaction.  For purposes of the Plan and any Award Agreement granted hereunder, the term "Company" shall include any successor to Seanergy Maritime Holdings Corporation.

3.6.          Operation and Conduct of Business

Nothing in the Plan or any Award Agreement shall be construed as limiting or preventing the Company or any Affiliate from taking any action with respect to the operation and conduct of their business that they deem appropriate or in their best interests, including any or all adjustments, recapitalizations, reorganizations, exchanges or other changes in the capital structure of the Company or any Affiliate, any merger or consolidation of the Company or any Affiliate, any issuance of Company shares or other securities or subscription rights, any issuance of bonds, debentures, preferred or prior preference stock ahead of or affecting the Common Stock or other securities or rights thereof, any dissolution or liquidation of the Company or any Affiliate, any sale or transfer of all or any part of the assets or business of the Company or any Affiliate, or any other corporate act or proceeding, whether of a similar character or otherwise.

3.7.          No Rights to Awards

No Key Person or other Person shall have any claim to be granted any Award under the Plan.

3.8.          Right of Discharge Reserved

Nothing in the Plan or in any Award Agreement shall confer upon any grantee the right to continue his or her employment with the Company or any Affiliate, his or her consultancy/service relationship with the Company or any Affiliate, or his or her position as a director of the Company or any Affiliate, or affect any right that the Company or any Affiliate may have to terminate such employment or consultancy/service relationship or service as a director.

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3.9.          Non-Uniform Determinations

The Administrator's determinations and the treatment of Key Persons and grantees and their beneficiaries under the Plan need not be uniform and may be made and determined by the Administrator selectively among Persons who receive, or who are eligible to receive, Awards under the Plan (whether or not such Persons are similarly situated).  Without limiting the generality of the foregoing, the Administrator shall be entitled, among other things, to make non-uniform and selective determinations, and to enter into non-uniform and selective Award Agreements, as to (a) the Persons to receive Awards under the Plan, (b) the types of Awards granted under the Plan, (c) the number of shares to be covered by, or with respect to which payments, rights or other matters are to be calculated with respect to, Awards and (d) the terms and conditions of Awards.

3.10.          Other Payments or Awards

Nothing contained in the Plan shall be deemed in any way to limit or restrict the Company from making any award or payment to any Person under any other plan, arrangement or understanding, whether now existing or hereafter in effect.

3.11.          Headings

Any section, subsection, paragraph or other subdivision headings contained herein are for the purpose of convenience only and are not intended to expand, limit or otherwise define the contents of such subdivisions.

3.12.          Effective Date and Term of Plan

(a)          Adoption; Stockholder Approval.  The Plan was adopted by the Board on January 12, 2011.  The Board may, but need not, make the granting of any Awards under the Plan subject to the approval of the Company's stockholders.

(b)          Termination of Plan.  The Board may terminate the Plan at any time.  All Awards made under the Plan prior to its termination shall remain in effect until such Awards have been satisfied or terminated in accordance with the terms and provisions of the Plan and the applicable Award Agreements.  No Awards may be granted under the Plan following the tenth anniversary of the date on which the Plan was adopted by the Board.

3.13.          Restriction on Issuance of Stock Pursuant to Awards

The Company shall not permit any shares of Common Stock to be issued pursuant to Awards granted under the Plan unless such shares of Common Stock are fully paid and non-assessable under applicable law.  Notwithstanding anything to the contrary in the Plan or any Award Agreement, at the time of the exercise of any Award, at the time of vesting of any Award, at the time of payment of shares of Common Stock in exchange for, or in cancellation of, any Award, or at the time of grant of any unrestricted shares under the Plan, the Company and the Administrator may, if either shall deem it necessary or advisable for any reason, require the holder of an Award (a) to represent in writing to the Company that it is the Award holder's then-intention to acquire the shares with

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respect to which the Award is granted for investment and not with a view to the distribution thereof or (b) to postpone the date of exercise until such time as the Company has available for delivery to the Award holder a prospectus meeting the requirements of all applicable securities laws; and no shares shall be issued or transferred in connection with any Award unless and until all legal requirements applicable to the issuance or transfer of such shares have been complied with to the satisfaction of the Company and the Administrator.  The Company and the Administrator shall have the right to condition any issuance of shares to any Award holder hereunder on such Person's undertaking in writing to comply with such restrictions on the subsequent transfer of such shares as the Company or the Administrator shall deem necessary or advisable as a result of any applicable law, regulation or official interpretation thereof, and all share certificates delivered under the Plan shall be subject to such stop transfer orders and other restrictions as the Company or the Administrator may deem advisable under the Plan, the applicable Award Agreement or the rules, regulations and other requirements of the SEC, any stock exchange upon which such shares are listed, and any applicable securities or other laws, and certificates representing such shares may contain a legend to reflect any such restrictions.  The Administrator may refuse to issue or transfer any shares or other consideration under an Award if it determines that the issuance or transfer of such shares or other consideration might violate any applicable law or regulation or entitle the Company to recover the same under Section 16(b) of the 1934 Act, and any payment tendered to the Company by a grantee or other Award holder in connection with the exercise of such Award shall be promptly refunded to the relevant grantee or other Award holder.  Without limiting the generality of the foregoing, no Award granted under the Plan shall be construed as an offer to sell securities of the Company, and no such offer shall be outstanding, unless and until the Administrator has determined that any such offer, if made, would be in compliance with all applicable requirements of any applicable securities laws.

3.14.          Requirement of Notification of Election Under Section 83(b) of the Code or Upon Disqualifying Disposition Under Section 421(b) of the Code

(a)          Notification of Election Under Section 83(b) of the Code.  If an Award recipient, in connection with the acquisition of Company shares under the Plan, makes an election under Section 83(b) of the Code (to include in gross income in the year of transfer the amounts specified in Section 83(b) of the Code), the grantee shall notify the Administrator of such election within ten days of filing notice of the election with the U.S. Internal Revenue Service, in addition to any filing and notification required pursuant to regulations issued under Section 83(b) of the Code.

(b)          Notification of Disqualifying Disposition of Incentive Stock Options.  If an Award recipient shall make any disposition of Company shares delivered pursuant to the exercise of an incentive stock option under the circumstances described in Section 421(b) of the Code (relating to certain disqualifying dispositions) or any successor provision of the Code, the grantee shall notify the Company of such disposition within ten days thereof.

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3.15.          Severability

If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Administrator, such provision shall be construed or deemed amended to conform to the applicable laws or, if it cannot be construed or deemed amended without, in the determination of the Administrator, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

3.16.          Sections 409A and 457A

To the extent applicable, the Plan and Award Agreements shall be interpreted in accordance with Sections 409A and 457A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder.  Notwithstanding any provision of the Plan or any applicable Award Agreement to the contrary, in the event that the Administrator determines that any Award may be subject to Section 409A or 457A of the Code, the Administrator may adopt such amendments to the Plan and the applicable Award Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Administrator determines are necessary or appropriate to (i) exempt the Plan and Award from Sections 409A and 457A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (ii) comply with the requirements of Sections 409A and 457A of the Code and related Department of Treasury guidance and thereby avoid the application of penalty taxes under Sections 409A and 457A of the Code.

3.17.          Forfeiture; Clawback

The Administrator may, in its sole discretion, specify in the applicable Award Agreement that any realized gain with respect to options or stock appreciation rights and any realized value with respect to other Awards shall be subject to forfeiture or clawback, in the event of (a) a grantee's breach of any non-competition, non-solicitation, confidentiality or other restrictive covenants with respect to the Company or any Affiliate or (ii) a financial restatement that reduces the amount of bonus or incentive compensation previously awarded to a grantee that would have been earned had results been properly reported.

3.18.          No Trust or Fund Created

Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and an Award recipient or any other Person.  To the extent that any Person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company or its Affiliate.

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3.19.          No Fractional Shares

No fractional shares shall be issued or delivered pursuant to the Plan or any Award, and the Administrator shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional shares or whether such fractional shares or any rights thereto shall be canceled, terminated, or otherwise eliminated.

3.20.          Governing Law

The Plan will be construed and administered in accordance with the laws of the State of New York, without giving effect to principles of conflict of laws.

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