Document:

EX-4.49

 Exhibit 4.49 

THE SYMBOL “[***]” OR “[REDACTED]” DENOTES PLACES WHERE CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT
BECAUSE IT IS BOTH (i) NOT MATERIAL, AND (ii) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL 
 DATED
1 April 2021 
 USD300,000,000 REVOLVING LOAN FACILITY AGREEMENT 

BETWEEN 
 YOUDAO, INC.

 and 
 NETEASE,
INC. 

 THIS FACILITY AGREEMENT is entered into on 1 April 2021 (the “Effective
Date”), by and between the following Parties: 
  

	(I)	 Youdao, Inc., a company with limited liability incorporated under the laws of Cayman Islands, with its
registered office at PO Box 309, Ugland House, Grand Cayman, KYl- 1104, Cayman Islands (the “Borrower”); and 

  

	(2)	 NetEase, Inc., a company with limited liability incorporated under the laws of Cayman Islands, with its
registered office at PO Box 309, Ugland House, Grand Cayman, KYl- 1104, Cayman Islands (the “Lender”). 

BACKGROUND 
 The Lender has agreed to
provide the Borrower an unsecured revolving loan facility on the date of this agreement (the “Agreement”) to provide funds for the Borrower to support its general corporate requirements set forth herein. 

For purpose of this Agreement, the Lender and the Borrower are hereinafter individually referred to as a Party, and collectively as the Parties.
 
 AGREED TERMS 
  

	1.	 DEFINITIONS AND INTERPRETATION 

 

	1.1	 Definitions 

The following definitions apply in this Agreement. 

“Business Day” means any day that is not a Saturday, Sunday, legal holiday or other day on which commercial banks are required
or authorized by law to be closed in the PRC and Hong Kong. 
 “Availability Period” means the period from the Effective
Date to the date falling 35 months after the Effective Date. 
 “Drawdown Date” means the date of advance of a Loan. 

“Interest Period” means each period determined under this Agreement by reference to which interest on a Loan is calculation.

 “LIBOR” means, in relation to any Interest Period the rate displayed on page LIBOR0 I of the Reuters screen (or any
replacement page which displays that rate) on two London Business Days before the first day of the relevant Interest Period, or any other rate agreed between the Borrower and the Lender prior to the commencement of that Interest Period. If the
relevant page is replaced or the service ceases to be available, the Lender may specify another page or service displaying the appropriate rate at which deposits in the USD are being offered to leading banks in the London interbank market. If, in
either case, that rate displayed is less than zero, LIBOR shall be deemed to be zero. 

  
 1 

 “Loan” means the principal amount of the loan made or to be made by the
Lender to the Borrower under Loan Drawdown Notice or (as the context requires) the principal amount outstanding for the time being of that loan. 

“London Business Day” means a day (other than a Saturday or a Sunday) on which banks are open for general business in London.

 “Margin” means 1.1 % per annum. 

“Material Adverse Effect” means any material adverse effect on (i) the business or financial condition of the Borrower,
including but not limited to material deterioration of business conditions, serious losses, insolvency; (ii) the ability of the Borrower to perform its payment obligations under this Agreement; or (iii) the validity, legality or
enforceability of this Agreement, or the rights and remedies of the Lender under this Agreement. 
 “PRC” means the
People’s Republic of China. 
 “Final Maturity Date” means the <late falling 36 months after the Effective Date of
this Agreement. 
 “Facility Amount” means USD300,000,000 on the Effective Date. 

“USD” means the lawful currency of the United States of America. 

 

	1.2	 Interpretation 

In this Agreement, to the extent applicable, 
  

	 	(a)	 clause, schedule and paragraph headings shall not affect the interpretation of this Agreement;

  

	 	(b)	 a reference to a person shall include a reference to an individual, firm, company, corporation,
partnership, unincorporated body of persons, government, state or agency of a state or any association, trust, joint venture or consortium (whether or not having separate legal personality) and that person’s personal representatives,
successors, permitted assigns and permitted transferees; 

  

	 	(c)	 unless the context otherwise requires, words in the singular shall include the plural and in the plural shall
include the singular; 

  

	 	(d)	 a reference to a Party shall include that Party’s successors, permitted assigns and permitted transferees;

  

	 	(e)	 a reference to a statute or statutory provision is a reference to it as amended, extended or re-enacted from time to time; 

  

	 	(f)	 a reference to a statute or statutory provision shall include all subordinate legislation made from time to
time under that statute or statutory provision; 

  

	 	(g)	 a reference to writing or written includes fax and email; 

 

	 	(h)	 a reference to this Agreement (or any provision of it) or to any other agreement or document referred to
in this Agreement is a reference to this Agreement, that provision or such other agreement or document as amended (in each case, other than in breach of the provisions of this Agreement) from time to time; 

  
 2 

	 	(i)	 unless the context otherwise requires, a reference to a clause or schedule is to a clause of, or schedule to,
this Agreement and a reference to a paragraph is to a paragraph of the relevant schedule; 

  

	 	(j)	 any words following the terms including, include, in particular, for example or any similar expression
shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those terms; 

  

	 	(k)	 a reference to an amendment includes a novation, re-enactment,
supplement or variation (and amended shall be construed accordingly); 

  

	 	(I)	 a reference to an authorization includes an approval, authorization, consent, exemption, filing,
licence, notarisation, registration and resolution; and 

  

	 	(m)	 a reference to a regulation includes any regulation, rule, official directive, request or guideline
(whether or not having the force of law) of any governmental, inter-governmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organization. 

 

	2.	 THE FACILITY 

 

	2.1	 Subject to the terms of this Agreement, the Lender grants to the Borrower a revolving loan facility under which
the Lender shall make available to the Borrower Loans during the Availability Period up to the Facility Amount. 

  

	2.2	 The agreement principal amount of the Loans made available by the Lender during the Availability Period shall
not exceed the Facility Amount. 

  

	3.	 THE LOAN 

 

	3.1	 Subject to the terms of this Agreement, the Borrower may borrow a Loan during the Availability Period by
delivering a completed Loan Drawdown Notice, form of which is set out in Schedule A, two (2) Business Days before the proposed date of drawdown. The form and substance of Loan Drawdown Notice shall be satisfactory to the Lender.

  

	3.2	 The principal amount of each Loan shall be in a minimum of USD2,000,000 and an integral multiple of
USD2,000,000 (or if less, the balance of the undrawn Facility Amount) 

  

	3.3	 The currency of each drawdown shall be USD or any other currency mutually agreed by the Lender and the
Borrower. 

  

	3.4	 In case of any inconsistency between the contents of the Loan Drawdown Notice and the provisions hereof, this
Agreement shall prevail. 

  
 3 

	4.	 PURPOSE 

The Borrower shall use all money borrowed under this Agreement for the purposes below only and not for any other proposes: 

 

	 	(a)	 research and development expenses of the Borrower; 

 

	 	(b)	 sales and marketing expenses of the Borrower; 

 

	 	(c)	 capital injection into subsidiaries; 

 

	 	(d)	 making advances to subsidiaries or affiliates; and 

 

	 	(e)	 share repurchases. 

  

	5.	 INTEREST PERIOD 

 

	5.1	 Each Loan has successive Interest Periods. 

 

	5.2	 Each Interest Period for a Loan will start on its Drawdown Date or on the expiry of its preceding Interest
Period and will be of a duration equal to the Interest Period stated in the Loan Drawdown Notice of that Loan. 

  

	5.3	 The Interest Period that the Borrower may select in the Loan Drawdown Notice will be 1 month or 3 months.

  

	5.4	 If an Interest Period would otherwise overrun the Final Maturity Date, it shall be shortened so that it ends on
the Final Maturity Date. 

  

	5.5	 The Borrower may consolidate and/or split the Loans borrowed by it by written notice to the Lender provided
that there will not be, as a result of such consolidation and/or splitting, more than four (4) Loans in aggregate borrowed by the Borrower under this Agreement with Interest Period that end on different days. Loans which have been consolidated
shall be treated as one Loan. 

  

	5.6	 The Lender and the Borrower may enter into such other arrangement as they may agree for the adjustment of
Interest Periods and the consolidation and/or splitting of Loans borrowed by the Borrower. 

  

	6.	 INTEREST 

 

	6.1	 The interest rate on each Loan for each of its Interest Period is the percentage rate per annum which is the
aggregate of the applicable LIB OR and Margin. 

  

	6.2	 Accrued interest at the rates determined by the Lender in accordance with above on each Loan is payable by the
Borrower on the last day of each Interest Period for that Loan. 

  
 4 

	6.3	 Interests for a Loan under this Agreement shall be calculated on the basis of the actual number of days used
and a year with 360 days. 

  

	6.4	 If the Borrower fails to pay on the due date any amount payable by it under this Agreement, the rate of
interest will be equal to the aggregate of: 

  

	 	(a)	 LIBOR; 

  

	 	(b)	 the Margin; and 

  

	 	(c)	 Default interest 2 % per annum. 

 

	7.	 REPAYMENT 

 

	7.1	 The Borrower may repay a Loan together with accrued interests any time before the Final Maturity Date, only if
the Borrower provides a written notice to the Lender three (3) Business Days before the date of actual repayment and set out which specific Loan is to be repaid. 

 

	7.2	 Loans repaid during the Availability Period can be re-borrowed during
the Availability Period, provided that the aggregate principal amount of the Loans does not exceed the Facility Amount. Notwithstanding any other terms and conditions, all the unpaid Loans and the accrued interests become mature on the Final
Maturity Date. 

  

	7.3	 If any payment becomes due on a day that is not a Business Day, the due date of such payment will be extended
to the next succeeding Business Day, or, if that Business Day falls in the following calendar month, such due date shall be the immediately preceding Business Day. 

 

	7.4	 All payments made by the Borrower under this Agreement shall be made in full, without set-off, counterclaim or condition, and free and clear of, and without any deduction or withholding. 

  

	8.	 REPRESENTATIONS AND WARRANTIES 

The Borrower represents and warrants to the Lender which are deemed to be repeated at all times as from the Effective Date of this Agreement
until all its liabilities under this Agreement have been discharged: 
  

	8.1	 The Borrower has the power and capacity to execute and perform its obligations under this Agreement.

  

	8.2	 The execution and performance of this Agreement by Borrower do not violate any laws or regulations or
government approvals, authorizations, notices or other governmental documents having binding effect on or affecting Borrower, nor do they violate any agreements between the Borrower and any third party or any covenant made to any third party.

  
 5 

	8.3	 This Agreement shall constitute lawful, valid and enforceable obligations on the Borrower upon execution.

  

	8.4	 There are no pending disputes, litigations, arbitrations, administrative proceedings or any other legal
proceedings relating to or involving the Borrower that may have a Material Adverse Effect. 

  

	8.5	 The Borrower shall ensure that at all times any unsecured claims of the Lender against it under this Agreement
rank at least pari passu with the claims of all its other unsecured creditors except those creditors whose claims are mandatorily preferred by laws. 

  

	8.6	 No Event of Default is continuing or might be expected to result from any drawdown. 

 

	9.	 COVENANTS 

The Borrower covenants with the Lender that, as from the Effective Date of this Agreement until all its liabilities under this Agreement have
been discharged: 
  

	9.1	 The Borrower will promptly, after becoming aware of them, notify the Lender of any material litigation,
arbitration or administrative proceedings or claim against it. 

  

	9.2	 The Borrower will comply, in all respect, with all applicable laws, if failure to do so has or is reasonably
likely to have a Material Adverse Effect on its ability to perform its obligations under this Agreement. 

  

	9.3	 The Borrower will refrain from taking any action that may have a Material Adverse Effect on its ability to
perform its obligations under this Agreement. 

  

	9.4	 The Borrower will not use the revolving loan for any purpose other than the purposes set out in Clause 4 under
this Agreement, except with t the prior written consent of the Lender. 

  

	9.5	 The Borrower will be subject to the Lender’s inspection and supervision of the use of revolving loan under
this Agreement. The Borrower shall provide financial accounting statements and other information in a timely manner at the request of the Lender. 

  

	9.6	 The Borrower will procure no other event or circumstance occurs which is reasonably likely to have a Material
Adverse Effect on its ability to perform its obligations under this Agreement. 

  

	10.	 EVENT OF DEFAULT 

 

	10.1	 Non-payment 

The Borrower does not pay on the due date any amount payable pursuant to this Agreement in the currency in which it is expressed to be payable
unless: 
  

	 	(a)	 its failure to pay is caused by administrative or technical error; or 

 

	 	(b)	 payment is made within five (5) Business Days of its due date. 

  
 6 

	10.2	 Misrepresentation 

Any representation or statement made or deemed to be made by the Borrower in this Agreement or any other document delivered by or on behalf of
the Borrower under or in connection with this Agreement is or proves to have been incorrect or misleading in any material respect when made or deemed to be made. 
  

	10.3	 Insolvency 

  

	 	(a)	 The Borrower is or is presumed or deemed to be unable or admits inability to pay its debts as they fall due,
suspends making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness. 

 

	 	(b)	 A moratorium is declared in respect of any indebtedness of the Borrower. 

 

	10.4	 Illegality 

  

	 	(a)	 It is or becomes unlawful for the Borrower to perform any of its obligations under this Agreement.

  

	 	(b)	 Any obligations of the Borrower under any this Agreement are not or cease to be legal, valid, binding or
enforceable. 

  

	11.	 LENDER’S RIGHT TO DEMAND
REPAYMENT 

 If the Borrower breaches any provisions or causes any Event of Default of this Agreement or
is reasonably believed by the Lender suffering a Material Adverse Effect, the Lender reserves the right 
  

	 	(a)	 to unilaterally rescind this Agreement and demand repayment of the principal and accrued interests of the
revolving loan in full. The Borrower shall, within three (3) Business Days of receiving such written notice, repay such principal and accrued interests of the loan in full as required by the Lender; and 

 

	 	(b)	 to reduce the Facility Amount to zero, 

and the Borrower shall compensate the Lender for any reasonable actual direct economic losses caused by the Borrower’s breaches under this
Agreement; 
  

	12.	 ACCOUNTS AND CERTIFICATES 

 

	12.1	 The Lender shall maintain accounts evidencing the amounts owed to it by the Borrower, in accordance with its
usual practice. Entries in those accounts shall be prima facie evidence of the existence and amount of the Borrower’s obligations as recorded in them. 

  
 7 

	12.2	 If the Lender issues any certificate, determination or notification of a rate or any amount payable under this
Agreement, it shall be (in the absence of manifest error) conclusive evidence of the matter to which it relates. 

  

	13.	 AMENDMENTS, WAIVERS AND CONSENTS
AND REMEDIES 

  

	13.1	 No amendment of this Agreement shall be effective unless it is in writing and signed by, or on behalf of, each
Party to it (or its authorized representative). 

  

	13.2	 A waiver of any right or remedy under this Agreement or by law, or any consent given under this Agreement, is
only effective if given in writing by the waiving or consenting Party and shall not be deemed a waiver of any other breach or default. It only applies in the circumstances for which it is given and shall not prevent the Party giving it from
subsequently relying on the relevant provision. 

  

	13.3	 A failure or delay by a Party to exercise any right or remedy provided under this Agreement or by law shall not
constitute a waiver of that or any other right or remedy, prevent or restrict any further exercise of that or any other right or remedy or constitute an election to affirm this Agreement. No single or partial exercise of any right or remedy provided
under this Agreement or by law shall prevent or restrict the further exercise of that or any other right or remedy. No election to affirm this Agreement by the Lender shall be effective unless it is in writing. 

 

	13.4	 The rights and remedies provided under this Agreement are cumulative and are in addition to, and not exclusive
of, any rights and remedies provided by law. 

  

	14.	 SEVERANCE 

If any provision (or part of a provision) of this Agreement is or becomes invalid, illegal or unenforceable, it shall be deemed modified to the
minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision (or part of a provision) shall be deemed deleted. Any modification to or deletion of a provision (or part of a provision)
under this clause shall not affect the legality, validity and enforceability of the rest of this Agreement. 
  

	15.	 ASSIGNMENT AND TRANSFER 

The Borrower may not assign any of its rights or transfer any of its rights or obligations under this Agreement without the Lender’s prior
express written consent. 
 The Lender may assign any of its rights or transfer by novating any of its rights and obligations under this
Agreement to an affiliate of the Lender according to the procedure at its own discretion at any time without prior written consent of the Borrower. 

  
 8 

	16.	 COUNTERPARTS 

This Agreement may be executed in counterparts, and by the Parties on separate counterparts, but shall not be effective until each Party has
executed at least one counterpart. Each counterpart shall constitute an original of this Agreement, but the counterparts shall together constitute one and the same instrument. The exchange of a fully executed version of this Agreement (in
counterparts or otherwise) by electronic transmission in PDF format or by facsimile shall be sufficient to bind the Parties to the terms and conditions of this Agreement and no exchange of originals is necessary. 

 

	17.	 THIRD PARTY RIGHTS 

A person who is not a Party to this agreement has no right under the Contracts (Rights of Third Parties) Ordinance to enforce or enjoy the
benefit of any term of this Agreement. This does not affect any right or remedy of a third party which exists, or is available, apart from that Ordinance. 
  

	18.	 NOTICES 

 

	18.1	 Any notice or other communication given to a Party under or in connection with, this Agreement shall be:

  

	 	(a)	 in writing; 

  

	 	(b)	 delivered by hand, by email, by pre-paid first-class post or other next
working day delivery service or sent by fax; and 

  

	 	(c)	 sent to: 

  

	 	(i)	 the Borrower at: 

***** 
  

	 	(ii)	 the Lender at: 

***** 
 or to any other address
or fax number as is notified in writing by one Party to the other from time to time. 
  

	18.2	 Any notice or other communication that the Lender gives to the Borrower under or in connection with, this
Agreement shall be deemed to have been received: 

  

	 	(a)	 if delivered by hand, at the time it is left at the relevant address; 

  
 9 

	 	(b)	 if delivered by email, at the time it transmitted the e-mail to the e-mail address provided by the intended recipient; 

  

	 	(c)	 if posted by pre-paid first-class post or other next working day
delivery service, on the second Business Day after posting; and 

  

	 	(d)	 if sent by fax, when received in legible form. 

 

	18.3	 Any notice or other communication given to the Lender shall be deemed to have been received only on actual
receipt. 

  

	19.	 GOVERNING LAW AND JURISDICTION

  

	19.1	 This Agreement and any dispute or claim arising out of or in connection with it or its subject matter shall be
governed by, and construed in accordance with, Hong Kong law. 

  

	19.2	 Any dispute, controversy, difference or claim arising out of or relating to this Agreement, including the
existence, validity, interpretation, performance, breach or termination thereof or any dispute regarding non-contractual obligations arising out of or relating to it shall be referred to and finally resolved
by arbitration administered by the Hong Kong International Arbitration Center (HKIAC) under the HKIAC Administered Arbitration Rules in force when the notice of arbitration is submitted. The seat of arbitration shall be Hong Kong.

  

	20.	 VALIDITY 

This Agreement become effective on the date stated at the beginning of it and end on the Final Maturity Date. This Agreement could be extended
if Parties mutually agree and sign an extending loan agreement within 30 days prior to the expiration of the Final Maturity Date. 

  
 10 

 SIGNATURE PAGES 

The Borrower: 
 YOUDAO, INC. 

 

			
	
	/s/ Feng Zhou
	By:	 	Feng Zhou (Chief Executive Officer)

 The Lender: 

NETEASE, INC. 
  

			
	
	/s/ Charles Zhaoxuan Yang
	By:	 	 Charles Zhaoxuan Yang (Chief Financial Officer)

			
	 Schedule A:
	 	
	
	Loan Drawdown Notice
		
	From:	 	Youdao, Inc. as Borrower
		
	To:	 	NetEase, Inc. or its assignee as Lender
		
	Date:	 	

 Youdao, Inc. – USD300,000,000 Revolving Facility Agreement dated _____ 2021 (the “Facility Agreement”)

  

	1.	 We refer to the Facility Agreement. This is a Loan Drawdown Notice. Terms defined in the Facility
Agreement shall have the same meaning in this Loan Drawdown Notice. 

  

	2.	 We wish to borrow a Loan on the following terms. This Loan Drawdown Notice is irrevocable.

  

							
	Lender	  	NetEase, Inc. or its assignee	  	 
	Borrower	  	Youdao Inc.	  	 	  	 
	Loan Purpose	  	 	  	 	  	 
	
Borrower Bank
 Account
Details
	  	Bank Name	  	 	  	 
	  	Bank SWIFT Code	  	 	  	 
	  	Account Name	  	 	  	 
	  	Account Number	  	 	  	 
	Loan Currency	  	 	  	Loan Amount	  	 
	Interest Rate	  	LIBOR+ 1.1%	  	Interest Period	  	1 or 3 months
	Drawdown Date	  	 	  	Final Maturity Date	  	 

  

					
	For and on behalf of:	 	    	 	Acknowledged by:
	YOUDAO, INC.	 		 	[NETEASE, INC. or its assignee]
			
	  
	 		 	  

	Authorized Signatory	 		 	Authorized Signatorybicx_ex101.htm

EXHIBIT 10.1
 BIOCORRX, INC. 
 2022 OMNIBUS SECURITIES AND INCENTIVE PLAN
 695,000 SHARES OF COMMON STOCK
  
 Table of Contents
    
 	  
	  
	  
	 Page
	  

	  
	  
	  
	  
	  

	 ARTICLE I PURPOSE
	  
	  1
	  

	  
	  
	  
	  
	  

	 ARTICLE II DEFINITIONS. 
	  
	  1
	  

	  
	  
	  
	  
	  

	 ARTICLE III EFFECTIVE DATE OF PLAN
	  
	  4
	  

	  
	  
	  
	  
	  

	 ARTICLE IV ADMINISTRATION
	  
	  4
	  

	  
	Section 4.1 Administration	  
	  
	  

	  
	Section 4.2 Powers	  
	  
	  

	  
	Section 4.3 Additional Powers	  
	  
	  

	  
	Section 4.4 Delegation	  
	  
	  

	  
	Section 4.5 Power and Authority of the Board	  
	  
	  

	  
	  
	  
	  
	  

	 ARTICLE V SHARES SUBJECT TO PLAN AND LIMITATIONS THEREON
	  
	  5
	  

	  
	Section 5.1 Shares Grant and Award Limits	  
	  
	  

	  
	Section 5.2 Prior Stock Plan	  
	  
	  

	  
	Section 5.3 Common Stock Offered	  
	  
	  

	  
	Section 5.4 Limitations on Awards for Directors	  
	  
	  

	  
	  
	  
	  
	  

	 ARTICLE VI ELIGIBILITY FOR AWARDS.
	  
	  6
	  

	  
	  
	  
	  
	  

	 ARTICLE VII OPTIONS.
	  
	  6
	  

	  
	Section 7.1 Option Period	  
	  
	  

	  
	Section 7.2 Limitations on Exercise of Option	  
	  
	  

	  
	Section 7.3 Special Limitations on Incentive Share Options	  
	  
	  

	  
	Section 7.4 Option Agreement	  
	  
	  

	  
	Section 7.5 Option Price and Payment	  
	  
	  

	  
	Section 7.6 Stockholder Rights and Privileges	  
	  
	  

	  
	Section 7.7 Options and Rights in Substitution for Stock or Share Options Granted by Other Corporations	  
	  
	  

	  
	Section 7.8 Prohibition Against Repricing	  
	  
	  

	  
	  
	  
	  
	  

	 ARTICLE VIII RESTRICTED SHARE AWARDS
	  
	  8
	  

	  
	Section 8.1 Restriction Period	  
	  
	  

	  
	Section 8.2 Other Terms and Conditions	  
	  
	  

	  
	Section 8.3 Payment for Restricted Shares	  
	  
	  

	  
	Section 8.4 Restricted Share Award Agreements	  
	  
	  

	  
	  
	  
	  
	  

	 ARTICLE IX UNRESTRICTED SHARE AWARDS.
	  
	  8
	  

	  
	  
	  
	  
	  

	 ARTICLE X. RESTRICTED SHARE UNIT AWARDS.
	  
	  8
	  

	  
	Section 10.1 Terms and Conditions	  
	  
	  

	  
	Section 10.2 Payments	  
	  
	  

	  
	  
	  
	  
	  

	 ARTICLE XI PERFORMANCE UNIT AWARDS.
	  
	  9
	  

	  
	Section 11.1 Terms and Conditions	  
	  
	  

	  
	Section 11.2 Payments	  
	  
	  

  
 	 
	 -i-

	

	 

  
 	 ARTICLE XII DISTRIBUTION EQUIVALENT RIGHTS.
	  
	  9
	  

	  
	Section 12.1 Terms and Conditions	  
	  
	  

	  
	Section 12.2 Interest Equivalents	  
	  
	  

	  
	  
	  
	  
	  

	 ARTICLE XIII SHARE APPRECIATION RIGHTS.
	  
	  9
	  

	  
	Section 13.1 Terms and Conditions	  
	  
	  

	  
	Section 13.2 Tandem Share Appreciation Rights	  
	  
	  

	  
	  
	  
	  
	  

	 ARTICLE XIV RECAPITALIZATION OR REORGANIZATION
	  
	  10
	  

	  
	Section 14.1 Adjustments to Common Stock	  
	  
	  

	  
	Section 14.2 Recapitalization	  
	  
	  

	  
	Section 14.3 Other Events	  
	  
	  

	  
	Section 14.4 Powers Not Affected	  
	  
	  

	  
	Section 14.5 No Adjustment for Certain Awards	  
	  
	  

	  
	  
	  
	  
	  

	 ARTICLE XV AMENDMENT AND TERMINATION OF PLAN
	  
	  11
	  

	  
	  
	  
	  
	  

	 ARTICLE XVI MISCELLANEOUS. 
	  
	  11
	  

	  
	Section 16.1 No Right to Award	  
	  
	  

	  
	Section 16.2 No Rights Conferred	  
	  
	  

	  
	Section 16.3 Other Laws; No Fractional Shares; Withholding	  
	  
	  

	  
	Section 16.4 No Restriction on Corporate Action	  
	  
	  

	  
	Section 16.5 Restrictions on Transfer	  
	  
	  

	  
	Section 16.6 Beneficiary Designations	  
	  
	  

	  
	Section 16.7 Rule 16b‐3	  
	  
	  

	  
	Section 16.8 Section 409A	  
	  
	  

	  
	Section 16.9 Indemnification	  
	  
	  

	  
	Section 16.10 Other Plans	  
	  
	  

	  
	Section 16.11 Limits of Liability	  
	  
	  

	  
	Section 16.12 Governing Law	  
	  
	  

	  
	Section 16.13 Severability of Provisions	  
	  
	  

	  
	Section 16.14 No Funding	  
	  
	  

	  
	Section 16.15 Headings	  
	  
	  

	  
	Section 16.16 Terms of Award Agreements	  
	  
	  

   
 	 
	 -ii-

	

	 

  
 BIOCORRX, INC. 
 2022 OMNIBUS SECURITIES AND INCENTIVE PLAN 
 695,000 SHARES OF COMMON STOCK
  
 ARTICLE I 
 PURPOSE
  
 The purpose of this BioCorRx, Inc. 2022 Omnibus Securities and Incentive Plan (the “Plan”) is to benefit the stockholders of BioCorRx, Inc., a Nevada corporation (the “Company”), by assisting the Company to attract, retain and provide incentives to key management employees and non-employee directors of, and non-employee consultants to, the Company and its Affiliates, and to align the interests of such employees, non-employee directors and non-employee consultants with those of the Company’s stockholders.  Accordingly, the Plan provides for the granting of Distribution Equivalent Rights, Incentive Share Options, Non‐Qualified Share Options, Performance Unit Awards, Restricted Share Awards, Restricted Share Unit Awards, Share Appreciation Rights, Tandem Share Appreciation Rights, Unrestricted Share Awards or any combination of the foregoing, as may be best suited to the circumstances of the particular Employee, Director or Consultant as provided herein.
  
 ARTICLE II 
 DEFINITIONS
  
 The following definitions shall be applicable throughout the Plan unless the context otherwise requires:
  
 “Affiliate” shall mean any corporation which, with respect to the Company, is a “subsidiary corporation” within the meaning of Section 424(f) of the Code.
  
 “Award” shall mean, individually or collectively, any Distribution Equivalent Right, Option, Performance Unit Award, Restricted Share Award, Restricted Share Unit Award, Share Appreciation Right or Unrestricted Share Award.
  
 “Award Agreement” shall mean a written agreement between the Company and the Holder with respect to an Award, setting forth the terms and conditions of the Award, and each of which shall constitute a part of the Plan.
  
 “Board” shall mean the Board of Directors of the Company.
  
 “Change of Control” shall mean (i) for a Holder who is a party to an employment or consulting agreement with the Company or an Affiliate which agreement defines “Change of Control” (or a similar term) therein, “Change of Control” shall have the same meaning as provided for in such agreement, or (ii) for a Holder who is not a party to such an agreement, “Change of Control” shall mean the satisfaction of any one or more of the following conditions (and the “Change of Control” shall be deemed to have occurred as of the first day that any one or more of the following conditions shall have been satisfied):
  
 (a) Any person (as such term is used in paragraphs 13(d) and 14(d)(2) of the Exchange Act, hereinafter in this definition, “Person”), other than the Company or an Affiliate or an employee benefit plan of the Company or an Affiliate, becomes the beneficial owner (as defined in Rule 13d‐3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities;
  
 (b) The closing of a merger, consolidation or other business combination (a “Business Combination”) other than a Business Combination in which holders of the Common Stock immediately prior to the Business Combination have substantially the same proportionate ownership of the Company or surviving corporation immediately after the Business Combination as immediately before;
  
 (c) The closing of an agreement for the sale or disposition of all or substantially all of the Company’s assets to any entity that is not an Affiliate;
  
 	 
	
	

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 (d) The approval by the holders of shares of Common Stock of a Plan of complete liquidation of the Company other than a liquidation of the Company into any subsidiary or a liquidation a result of which Persons who were stockholders of the Company immediately prior to such liquidation have substantially the same proportionate ownership of shares of the surviving corporation immediately after such liquidation as immediately before; or
  
 (e) Within any twenty‐four (24)-month period, the Incumbent Directors shall cease to constitute at least a majority of the Board or the board of directors of any successor to the Company; provided, however, that any director elected to the Board, or nominated for election, by a majority of the Incumbent Directors then still in office, shall be deemed to be an Incumbent Director for purposes of this paragraph (e), but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of an individual, entity or “group” other than the Board (including, but not limited to, any such assumption that results from paragraph (a), (b), (c) or (d) of this definition).
  
 Notwithstanding the foregoing, a “Change of Control” shall not be deemed to occur if the Company files for bankruptcy, liquidation or reorganization under the United States Bankruptcy Code.
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended. Reference in the Plan to any section of the Code shall be deemed to include any amendments or successor provisions to any section and any regulation under such section.
  
 “Committee” shall mean the Compensation Committee of the Board or such other committee designated by the Board to administer the Plan.
  
 “Common Share” shall mean a share of Common Stock.
  
 “Common Stock” shall mean the common stock, par value $0.001 per share, of the Company.
  
 “Company” shall mean BioCorRx, Inc., a Nevada corporation, and any successor thereto.
  
 “Consultant” shall mean any non‐Employee advisor to the Company or an Affiliate who or which has contracted directly with the Company or an Affiliate to render bona fide consulting or advisory services thereto.
  
 “Director” shall mean a member of the Board or a member of the board of directors of an Affiliate, in either case, who is not an Employee.
  
 “Distribution Equivalent Right” shall mean an Award granted under Article XII of the Plan which entitles the Holder to receive bookkeeping credits, cash payments and/or Common Share distributions equal in amount to the distributions that would have been made to the Holder had the Holder held a specified number of Common Stock during the period the Holder held the Distribution Equivalent Right.
  
 “Distribution Equivalent Right Award Agreement” shall mean a written agreement between the Company and a Holder with respect to a Distribution Equivalent Right Award.
  
 “Effective Date” shall have the meaning ascribed to that term in Article III.
  
 “Employee” shall mean any employee, including officers, of the Company or an Affiliate.
  
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
  
 “Fair Market Value” shall mean, as determined consistent with the applicable requirements of Sections 409A and 422 of the Code, as of any specified date, the closing sales price of the Common Stock for such date (or, in the event that the Common Stock are not traded on such date, on the immediately preceding trading date) as reported in The Wall Street Journal or a comparable reporting service. If the Common Stock are not listed on a national securities exchange, but are quoted on the OTC Markets OTC Link, the Fair Market Value of the Common Stock shall be the mean of the bid and asked prices per Common Share for such date. If the Common Stock are not quoted or listed as set forth above, Fair Market Value shall be determined by the Committee in good faith by any fair and reasonable means (which means, with respect to a particular Award grant, may be set forth with greater specificity in the applicable Award Agreement). The Fair Market Value of property other than Common Stock shall be determined by the Committee in good faith by any fair and reasonable means, and consistent with the applicable requirements of Sections 409A and 422 of the Code.
  
 	 
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 “Family Member” shall mean any child, stepchild, grandchild, parent, stepparent, spouse, former spouse, sibling, niece, nephew, mother‐in‐law, father‐in‐law, son‐in‐law, daughter‐in‐law, brother‐in‐law or sister‐in‐law, including adoptive relationships, any person sharing the Holder’s household (other than a tenant or employee of the Holder), a trust in which such persons have more than fifty percent (50%) of the beneficial interest, a foundation in which such persons (or the Holder) control the management of assets and any other entity in which such persons (or the Holder) own more than fifty percent (50%) of the voting interests.
  
 “Holder” shall mean an Employee, Director or Consultant who has been granted an Award or any such individual’s beneficiary, estate or representative, to the extent applicable.
  
 “Incentive Share Option” shall mean an Option which is intended by the Committee to constitute an “incentive stock option” under Section 422 of the Code.
  
 “Incumbent Director” shall mean, with respect to any period of time specified under the Plan for purposes of determining whether or not a Change of Control has occurred, the individuals who were members of the Board at the beginning of such period.
  
 “Non‐Qualified Share Option” shall mean an Option which is not an Incentive Share Option.
  
 “Option” shall mean an Award granted under Article VII of the Plan of an option to purchase Common Stock and includes both Incentive Share Options and Non‐Qualified Share Options.
  
 “Option Agreement” shall mean a written agreement between the Company and a Holder with respect to an Option.
  
 “Performance Unit” shall mean a Unit awarded to a Holder pursuant to a Performance Unit Award.
  
 “Performance Unit Award” shall mean an Award granted under Article XI of the Plan under which, upon the satisfaction of predetermined individual and/or Company (and/or Affiliate) performance goals and/or objectives, a cash payment shall be made to the Holder, based on the number of Units awarded to the Holder.
  
 “Performance Unit Award Agreement” shall mean a written agreement between the Company and a Holder with respect to a Performance Unit Award.
  
 “Plan” shall mean this BioCorRx, Inc. 2022 Omnibus Securities and Incentive Plan, as amended from time to time, together with each of the Award Agreements utilized hereunder.
  
 “Restricted Share Award” shall mean an Award granted under Article VIII of the Plan of Common Stock, the transferability of which by the Holder shall be subject to Restrictions.
  
 “Restricted Share Award Agreement” shall mean a written agreement between the Company and a Holder with respect to a Restricted Share Award.
  
 “Restricted Share Unit Award” shall mean an Award granted under Article X of the Plan under which, upon the satisfaction of predetermined individual service‐related vesting requirements, a cash payment shall be made to the Holder, based on the number of Units awarded to the Holder.
  
 	 
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 “Restricted Share Unit Award Agreement” shall mean a written agreement between the Company and a Holder with respect to a Restricted Share Unit Award.
  
 “Restriction Period” shall mean the period of time for which Common Stock subject to a Restricted Share Award shall be subject to Restrictions, as set forth in the applicable Restricted Share Award Agreement.
  
 “Restrictions” shall mean forfeiture, transfer and/or other restrictions applicable to Common Stock awarded to an Employee, Director or Consultant under the Plan pursuant to a Restricted Share Award and set forth in a Restricted Share Award Agreement.
  
 “Rule 16b‐3” shall mean Rule 16b‐3 promulgated by the Securities and Exchange Commission under the Exchange Act, as such may be amended from time to time, and any successor rule, regulation or statute fulfilling the same or a substantially similar function.
  
 “Share Appreciation Right” shall mean an Award granted under Article XIII of the Plan of a right, granted alone or in connection with a related Option, to receive a payment on the date of exercise.
  
 “Share Appreciation Right Award Agreement” shall mean a written agreement between the Company and a Holder with respect to a Share Appreciation Right.
  
 “Tandem Share Appreciation Right” shall mean a Share Appreciation Right granted in connection with a related Option, the exercise of which shall result in termination of the otherwise entitlement to purchase some or all of the Common Stock under the related Option, all as set forth in Section 13.2.
  
 “Ten Percent Shareholder” shall mean an Employee who, at the time an Option is granted to him or her, owns shares possessing more than ten percent (10%) of the total combined voting power of all classes of shares of the Company or of any parent corporation or subsidiary corporation thereof (both as defined in Section 424 of the Code), within the meaning of Section 422(b)(6) of the Code.
  
 “Units” shall mean bookkeeping units, each of which represents such monetary amount as shall be designated by the Committee in each Performance Unit Award Agreement, or represents one (1) Common Share for purposes of each Restricted Share Unit Award.
  
 “Unrestricted Share Award” shall mean an Award granted under Article IX of the Plan of Common Stock which are not subject to Restrictions.
  
 “Unrestricted Share Award Agreement” shall mean a written agreement between the Company and a Holder with respect to an Unrestricted Share Award.
  
 ARTICLE III
 EFFECTIVE DATE OF PLAN
  
 The Plan shall be effective as of April 25, 2022 (the “Effective Date”), subject to approval by the Board.
  
 ARTICLE IV
 ADMINISTRATION
  
 Section 4.1. Administration. The Plan shall be administered by the Committee.
  
 Section 4.2. Powers. Subject to the provisions of the Plan, the Committee shall have the sole authority, in its discretion, to make all determinations under the Plan, including, but not limited to, determining which Employees, Directors or Consultants shall receive an Award, the time or times when an Award shall be made (the date of grant of an Award shall be the date on which the Award is awarded by the Committee), what type of Award shall be granted, the term of an Award, the date or dates on which an Award vests (including acceleration of vesting), the form of any payment to be made pursuant to an Award, the terms and conditions of an Award (including the forfeiture of the Award (and/or any financial gain) if the Holder of the Award violates any applicable restrictive covenant thereof), the Restrictions under a Restricted Share Award and the number of Common Stock which may be issued under an Award, all as applicable. In making such determinations, the Committee may take into account the nature of the services rendered by the respective Employees, Directors and Consultants, their present and potential contribution to the Company’s (or the Affiliate’s) success and such other factors as the Committee, in its discretion, shall deem relevant.
  
 	 
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 Section 4.3. Additional Powers. The Committee shall have such additional powers as are delegated to it under the other provisions of the Plan. Subject to the express provisions of the Plan, the Committee is authorized to construe the Plan and the respective Award Agreements executed hereunder, to prescribe such rules and regulations relating to the Plan as it may deem advisable to carry out the intent of the Plan, and to determine the terms, restrictions and provisions of each Award, including such terms, restrictions and provisions as shall be requisite in the judgment of the Committee to cause designated Options to qualify as Incentive Share Options, and to make all other determinations necessary or advisable for administering the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in any Award Agreement in the manner and to the extent it shall deem expedient to carry it into effect. The determinations of the Committee on the matters referred to in this Article IV shall be conclusive and binding on the Company and all Holders.
  
 Section 4.4. Delegation. The Committee may delegate to one or more officers or Directors of the Company, subject to such terms, conditions and limitations as the Committee may establish, in its sole discretion, the authority to grant Awards; provided, however, that the Committee shall not delegate such authority (i) with regard to grants of Awards to be made to officers of the Company or any Affiliate who are subject to Section 16 of the Exchange Act, or (ii) in such a manner as would cause the Plan not to comply with the requirements of applicable law or applicable exchange rules.
  
 Section 4.5. Power and Authority of the Board. Notwithstanding anything to the contrary contained herein, (i) the Board may, at any time and from time to time, without any further action of the Committee, exercise the powers and duties of the Committee under the Plan, unless the exercise of such powers and duties by the Board would cause the Plan not to comply with the requirements of Rule 16b-3, other applicable law or applicable exchange rules, and (ii) only the Committee (or another committee of the Board comprised of directors who qualify as independent directors within the meaning of the independence rules of any applicable securities exchange where the shares of Common Stock are then listed) may grant Awards to Directors who are not also Employees.
  
 ARTICLE V
 SHARES SUBJECT TO PLAN AND LIMITATIONS THEREON
  
 Section 5.1. Shares Grant and Award Limits. The Committee may from time to time grant Awards to one or more Employees, Directors and/or Consultants determined by it to be eligible for participation in the Plan in accordance with the provisions of Article VI. Subject to Article XIV, the aggregate number of Common Shares (including Common Shares underlying Options designated as Incentive Share Options) that may be issued under the Plan shall not exceed the sum of (i) six hundred ninety-five thousand (695,000) Common Shares. The Common Stock shall be deemed to have been issued under the Plan solely to the extent actually issued and delivered pursuant to an Award. To the extent that an Award lapses, expires, is canceled, is terminated unexercised or ceases to be exercisable for any reason, or the rights of its Holder terminate, any Common Stock subject to such Award shall again be available for the grant of a new Award.
  
 Section 5.2. 2018 Equity Incentive Plan. On and after Board of Directors approval of this Plan, no awards shall be granted under the 2018 Equity Incentive Plan, but all outstanding awards previously granted under that plan shall remain outstanding and subject to the plan’s terms. However, to the extent that an award under the 2018 Equity Incentive Plan lapses, expires, is canceled, is terminated unexercised or ceases to be exercisable for any reason, or the rights of its holder terminate, any Common Shares subject to such award shall again be available for the grant of a new Award under this Plan.
  
 Section 5.3. Common Stock Offered. The Common Stock to be offered pursuant to the grant of an Award may be authorized but unissued Common Stock or Common Stock previously issued and outstanding and reacquired by the Company.
  
 	 
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 Section 5.4. Limitations on Awards for Directors. Notwithstanding any provision to the contrary in the Plan, the sum of the grant date fair value of equity-based Awards (such value computed as of the date of grant in accordance with applicable financial accounting rules) and the amount of any cash-based compensation granted to a Director during any calendar year shall not exceed Three Hundred Thousand Dollars $300,000. The independent members of the Board may make exceptions to this limit for a non-executive chair of the Board, provided that the non-employee Director receiving such additional compensation may not participate in the decision to award such compensation.
  
 ARTICLE VI
 ELIGIBILITY FOR AWARDS
  
 Awards made under the Plan may be granted solely to persons who, at the time of grant, are Employees, Directors or Consultants (or any such person to whom an offer of employment or engagement with the Company or any Affiliate is extended). An eligible person must be a natural person, and may only be granted an Award in connection with the provision of services not related to capital raising or promoting or maintaining a market for the Common Stock. An Award may be granted on more than one occasion to the same Employee, Director or Consultant, and, subject to the limitations set forth in the Plan, such Award may include a Non‐Qualified Share Option, a Restricted Share Award, an Unrestricted Share Award, a Distribution Equivalent Right Award, a Performance Unit Award, a Share Appreciation Right, a Tandem Share Appreciation Right, any combination thereof or, solely for Employees, an Incentive Share Option.
  
 ARTICLE VII
 OPTIONS
  
 Section 7.1. Option Period. The term of each Option shall be as specified in the Option Agreement; provided, however, that except as set forth in Section 7.3, no Option shall be exercisable after the expiration of ten (10) years from the date of its grant.
  
 Section 7.2. Limitations on Exercise of Option. An Option shall be exercisable in whole or in such installments and at such times as specified in the Option Agreement.
  
 Section 7.3. Special Limitations on Incentive Share Options. To the extent that the aggregate Fair Market Value (determined at the time the respective Incentive Share Option is granted) of Common Stock with respect to which Incentive Share Options are exercisable for the first time by an individual during any calendar year under all plans of the Company and any parent corporation or subsidiary corporation thereof (both as defined in Section 424 of the Code) which provide for the grant of Incentive Share Options exceeds One Hundred Thousand Dollars ($100,000) (or such other individual limit as may be in effect under the Code on the date of grant), the portion of such Incentive Share Options that exceeds such threshold shall be treated as Non‐Qualified Share Options. Incentive Share Options shall be granted to Employees only. The Committee shall determine, in accordance with applicable provisions of the Code, Treasury Regulations and other administrative pronouncements, which of a Holder’s Options, which were intended by the Committee to be Incentive Share Options when granted to the Holder, will not constitute Incentive Share Options because of such limitation, and shall notify the Holder of such determination as soon as practicable after such determination. No Incentive Share Option shall be granted to an Employee if, at the time the Incentive Share Option is granted, such Employee is a Ten Percent Shareholder, unless (i) at the time such Incentive Share Option is granted the Option price is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock subject to the Incentive Share Option, and (ii) such Incentive Share Option by its terms is not exercisable after the expiration of five (5) years from the date of grant. No Incentive Share Option shall be granted more than ten (10) years from the date on which the Plan is approved by the Board. The designation by the Committee of an Option as an Incentive Share Option shall not guarantee the Holder that the Option will satisfy the applicable requirements for “incentive stock option” status under Section 422 of the Code.
  
 	 
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 Section 7.4. Option Agreement. Each Option shall be evidenced by an Option Agreement in such form and containing such provisions not inconsistent with the provisions of the Plan as the Committee from time to time shall approve, including, but not limited to, provisions intended to qualify an Option as an Incentive Share Option. An Option Agreement may provide for the payment of the Option price, in whole or in part, by the delivery of a number of Common Stock (plus cash if necessary) that have been owned by the Holder for at least six (6) months and having a Fair Market Value equal to such Option price, or such other forms or methods as the Committee may determine from time to time, in each case, subject to such rules and regulations as may be adopted by the Committee. Each Option Agreement shall specify the effect of termination of employment, Director status or Consultant status on the exercisability of the Option. Moreover, without limiting the generality of the foregoing, an Option Agreement may provide for a “cashless exercise” of the Option, in whole or in part, by (a) establishing procedures whereby the Holder, by a properly‐executed written notice, directs (i) an immediate market sale or margin loan as to all or a part of Common Stock to which he is entitled to receive upon exercise of the Option, pursuant to an extension of credit by the Company to the Holder of the Option price, (ii) the delivery of the Common Stock from the Company directly to a brokerage firm, and (iii) the delivery of the Option price from sale or margin loan proceeds from the brokerage firm directly to the Company, or (b) reducing the number of Common Stock to be issued upon exercise of the Option by the number of such Shares having an aggregate Fair Market Value equal to the Option price (or portion thereof to be so paid) as of the date of the Option’s exercise. Each Option Agreement shall specify the effect of the termination of the Holder’s employment, Director status or Consultant status on the exercisability of the Option. An Option Agreement may also include provisions relating to (i) subject to the provisions hereof, accelerated vesting of Options, including, but not limited to, upon the occurrence of a Change of Control, (ii) tax matters (including provisions covering any applicable Employee wage withholding requirements), and (iii) any other matters not inconsistent with the terms and provisions of the Plan that the Committee shall, in its sole discretion, determine. The terms and conditions of the respective Option Agreements need not be identical.
  
 Section 7.5. Option Price and Payment. The price at which a Common Share may be purchased upon exercise of an Option shall be determined by the Committee and shall not be less than the Fair Market Value of a Common Share on the date of grant of such Option; provided, however, that such Option price as determined by the Committee shall be subject to adjustment as provided in Article XIV. The Option price or portion thereof shall be paid in full in the manner prescribed by the Committee as set forth in the Plan and the applicable Option Agreement, which manner, with the consent of the Committee, may include the withholding of Common Stock otherwise issuable in connection with the exercise of the Option, for purposes of Section 7.4(b). Separate share certificates shall be issued by the Company for those Common Stock acquired pursuant to the exercise of an Incentive Share Option and for those Common Stock acquired pursuant to the exercise of a Non‐Qualified Share Option.
  
 Section 7.6. Stockholder Rights and Privileges. The Holder of an Option shall be entitled to all the privileges and rights of a stockholder of the Company solely with respect to such Common Stock as have been purchased under the Option and for which share certificates have been registered in the Holder’s name.
  
 Section 7.7. Options and Rights in Substitution for Stock or Share Options Granted by Other Corporations. Options may be granted under the Plan from time to time in substitution for stock or share options held by individuals employed by entities who become Employees as a result of a merger or consolidation of the employing entity with the Company or any Affiliate, or the acquisition by the Company or an Affiliate of the assets of the employing entity or the acquisition by the Company or an Affiliate of stock or shares of the employing entity with the result that such employing entity becomes an Affiliate. Notwithstanding Section 7.5, the Committee may designate a purchase price below Fair Market Value on the date of grant if the Option is granted in substitution for a stock option previously granted by an entity that is acquired by or merged with the Company or an Affiliate.
  
 Section 7.8. Prohibition Against Repricing. Except to the extent (i) approved in advance by holders of a majority of the shares of the Company entitled to vote generally in the election of directors, or (ii) as a result of any Change of Control or any adjustment as provided in Article XIV, the Committee shall not have the power or authority to reduce, whether through amendment or otherwise, the exercise price under any outstanding Option or Share Appreciation Right, or to grant any new Award or make any payment of cash in substitution for or upon the cancellation of Options and/or Share Appreciation Rights previously granted.
  
 ARTICLE VIII
 RESTRICTED SHARE AWARDS
  
 Section 8.1. Restriction Period. At the time a Restricted Share Award is made, the Committee shall establish the Restriction Period applicable to such Award. Each Restricted Share Award may have a different Restriction Period, in the discretion of the Committee. The Restriction Period applicable to a particular Restricted Share Award shall not be changed except as permitted by Section 8.2.
  
 	 
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 Section 8.2. Other Terms and Conditions. Common Stock awarded pursuant to a Restricted Share Award shall be represented by a share certificate registered in the name of the Holder of such Restricted Share Award. If provided for under the Restricted Share Award Agreement, the Holder shall have the right to vote Common Stock subject thereto and to enjoy all other stockholder rights, including the entitlement to receive dividends on the Common Stock during the Restriction Period, except that (i) the Holder shall not be entitled to delivery of the share certificate until the Restriction Period shall have expired, (ii) the Company shall retain custody of the share certificate during the Restriction Period (with a share power endorsed by the Holder in blank), (iii) the Holder may not sell, transfer, pledge, exchange, hypothecate or otherwise dispose of the Common Stock during the Restriction Period, and (iv) a breach of the terms and conditions established by the Committee pursuant to the Restricted Share Award Agreement shall cause a forfeiture of the Restricted Share Award. At the time of such Award, the Committee may, in its sole discretion, prescribe additional terms and conditions or restrictions relating to Restricted Share Awards, including, but not limited to, rules pertaining to the effect of termination of employment, Director status or Consultant status prior to expiration of the Restriction Period. Such additional terms, conditions or restrictions shall be set forth in a Restricted Share Award Agreement made in conjunction with the Award. Such Restricted Share Award Agreement may also include provisions relating to (i) subject to the provisions hereof, accelerated vesting of Awards, including, but not limited to, accelerated vesting upon the occurrence of a Change of Control, (ii) tax matters (including provisions covering any applicable Employee wage withholding requirements), and (iii) any other matters not inconsistent with the terms and provisions of the Plan that the Committee shall, in its sole discretion, determine. The terms and conditions of the respective Restricted Share Agreements need not be identical.
  
 Section 8.3. Payment for Restricted Shares. The Committee shall determine the amount and form of any payment from a Holder for Common Stock received pursuant to a Restricted Share Award, if any, provided that in the absence of such a determination, a Holder shall not be required to make any payment for Common Stock received pursuant to a Restricted Share Award, except to the extent otherwise required by law.
  
 Section 8.4. Restricted Share Award Agreements. At the time any Award is made under this Article VIII, the Company and the Holder shall enter into a Restricted Share Award Agreement setting forth each of the matters contemplated hereby and such other matters as the Committee may determine to be appropriate.
  
 ARTICLE IX
 UNRESTRICTED SHARE AWARDS
  
 Pursuant to the terms of the applicable Unrestricted Share Award Agreement, a Holder may be awarded (or sold) Common Stock which are not subject to Restrictions, in consideration for past services rendered thereby to the Company or an Affiliate or for other valid consideration.
  
 ARTICLE X
 RESTRICTED SHARE UNIT AWARDS
  
 Section 10.1. Terms and Conditions. The Committee shall set forth in the applicable Restricted Share Unit Award Agreement the individual service‐based vesting requirement which the Holder would be required to satisfy before the Holder would become entitled to payment pursuant to Section 10.2 and the number of Units awarded to the Holder. At the time of such Award, the Committee may, in its sole discretion, prescribe additional terms and conditions or restrictions relating to Restricted Share Unit Awards, including, but not limited to, rules pertaining to the effect of termination of employment, Director status or Consultant status prior to expiration of the applicable vesting period. The terms and conditions of the respective Restricted Share Unit Award Agreements need not be identical.
  
 Section 10.2. Payments. The Holder of a Restricted Share Unit shall be entitled to receive a cash payment equal to the Fair Market Value of an Common Share, or one (1) Common Share, as determined, in the sole discretion, of the Committee and as set forth in the Restricted Share Unit Award Agreement, for each Restricted Share Unit subject to such Restricted Share Unit Award, if the Holder satisfies the applicable vesting requirement.
  
 	 
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 ARTICLE XI
 PERFORMANCE UNIT AWARDS
  
 Section 11.1. Terms and Conditions. The Committee shall set forth in the applicable Performance Unit Award Agreement the performance goals and objectives (and the period of time to which such goals and objectives shall apply) which the Holder and/or the Company would be required to satisfy before the Holder would become entitled to payment pursuant to Section 11.2, the number of Units awarded to the Holder and the dollar value assigned to each such Unit. At the time of such Award, the Committee may, in its sole discretion, prescribe additional terms and conditions or restrictions relating to Performance Unit Awards, including, but not limited to, rules pertaining to the effect of termination of employment, Director status or Consultant status prior to expiration of the applicable performance period. The terms and conditions of the respective Performance Unit Award Agreements need not be identical.
  
 Section 11.2. Payments. The Holder of a Performance Unit shall be entitled to receive a cash payment equal to the dollar value or number of Common Shares assigned to such Unit under the applicable Performance Unit Award Agreement if the Holder and/or the Company satisfy (or partially satisfy, if applicable under the applicable Performance Unit Award Agreement) the performance goals and objectives set forth in such Performance Unit Award Agreement.
  
 ARTICLE XII
 DISTRIBUTION EQUIVALENT RIGHTS
  
 Section 12.1. Terms and Conditions. The Committee shall set forth in the applicable Distribution Equivalent Rights Award Agreement the terms and conditions applicable to such Award, including whether the Holder is to receive credits currently in cash, is to have such credits reinvested (at Fair Market Value determined as of the date of reinvestment) in additional Common Stock or is to be entitled to choose among such alternatives. Distribution Equivalent Rights Awards may be settled in cash or in Common Stock, as set forth in the applicable Distribution Equivalent Rights Award Agreement. A Distribution Equivalent Rights Award may, but need not, be awarded in tandem with another Award, whereby, if so awarded, such Distribution Equivalent Rights Award shall expire, terminate or be forfeited by the Holder, as applicable, under the same conditions as under such other Award.
  
 Section 12.2. Interest Equivalents. The Distribution Equivalent Rights Award Agreement for a Distribution Equivalent Rights Award may provide for the crediting of interest on a Distribution Rights Award to be settled in cash at a future date, at a rate set forth in the applicable Distribution Equivalent Rights Award Agreement, on the amount of cash payable thereunder.
  
 ARTICLE XIII
 SHARE APPRECIATION RIGHTS
  
 Section 13.1. Terms and Conditions. The Committee shall set forth in the applicable Share Appreciation Right Award Agreement the terms and conditions of the Share Appreciation Right, including (i) the base value (the “Base Value”) for the Share Appreciation Right, which for purposes of a Share Appreciation Right which is not a Tandem Share Appreciation Right, shall be not less than the Fair Market Value of a Common Share on the date of grant of the Share Appreciation Right (unless granted in substitution for an appreciation right previously granted by an entity that is acquired by or merged with the Company or an Affiliate), (ii) the number of Common Stock subject to the Share Appreciation Right, (iii) the period during which the Share Appreciation Right may be exercised; provided, however, that no Share Appreciation Right shall be exercisable after the expiration of ten (10) years from the date of its grant, and (iv) any other special rules and/or requirements which the Committee imposes upon the Share Appreciation Right. Upon the exercise of some or all of the portion of a Share Appreciation Right, the Holder shall receive a payment from the Company, in cash or in the form of Common Stock having an equivalent Fair Market Value or in a combination of both, as determined, in the sole discretion of the Committee, equal to the product of:
  
 (a) The excess of (i) the Fair Market Value of a Common Share on the date of exercise, over (ii) the Base Value, multiplied by;
  
 	 
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 (b) The number of Common Stock with respect to which the Share Appreciation Right is exercised.
  
 Section 13.2. Tandem Share Appreciation Rights. If the Committee grants a Share Appreciation Right which is intended to be a Tandem Share Appreciation Right, the Tandem Share Appreciation Right shall be granted at the same time as the related Option, and the following special rules shall apply:
  
 (a) The Base Value shall be equal to or greater than the per Common Share exercise price under the related Option;
  
 (b) The Tandem Share Appreciation Right may be exercised for all or part of the Common Stock which are subject to the related Option, but solely upon the surrender by the Holder of the Holder’s right to exercise the equivalent portion of the related Option (and when an Common Share is purchased under the related Option, an equivalent portion of the related Tandem Share Appreciation Right shall be cancelled);
  
 (c) The Tandem Share Appreciation Right shall expire no later than the date of the expiration of the related Option;
  
 (d) The value of the payment with respect to the Tandem Share Appreciation Right may be no more than one hundred percent (100%) of the difference between the per Common Share exercise price under the related Option and the Fair Market Value of the Common Stock subject to the related Option at the time the Tandem Share Appreciation Right is exercised, multiplied by the number of the Common Stock with respect to which the Tandem Share Appreciation Right is exercised; and
  
 (e) The Tandem Share Appreciation Right may be exercised solely when the Fair Market Value of the Common Stock subject to the related Option exceeds the per Common Share exercise price under the related Option.
  
 ARTICLE XIV
 RECAPITALIZATION OR REORGANIZATION
  
 Section 14.1. Adjustments to Common Stock. The shares with respect to which Awards may be granted under the Plan are Common Stock as presently constituted; provided, however, that if, and whenever, prior to the expiration or distribution to the Holder of Common Stock underlying an Award theretofore granted, the Company shall effect a subdivision or consolidation of the Common Stock or the payment of a Common Share dividend on Common Stock without receipt of consideration by the Company, the number of Common Stock with respect to which such Award may thereafter be exercised or satisfied, as applicable, (i) in the event of an increase in the number of outstanding Common Stock, shall be proportionately increased, and the purchase price per Common Share shall be proportionately reduced, and (ii) in the event of a reduction in the number of outstanding Common Stock, shall be proportionately reduced, and the purchase price per Common Share shall be proportionately increased. Notwithstanding the foregoing or any other provision of this Article XIV, any adjustment made with respect to an Award (x) which is an Incentive Share Option, shall comply with the requirements of Section 424(a) of the Code, and in no event shall any adjustment be made which would render any Incentive Share Option granted under the Plan to be other than an “incentive stock option” for purposes of Section 422 of the Code, and (y) which is a Non‐Qualified Share Option, shall comply with the requirements of Section 409A of the Code, and in no event shall any adjustment be made which would render any Non‐Qualified Share Option granted under the Plan to become subject to Section 409A of the Code.
  
 Section 14.2. Recapitalization. If the Company recapitalizes or otherwise changes its capital structure, thereafter upon any exercise or satisfaction, as applicable, of a previously granted Award, the Holder shall be entitled to receive (or entitled to purchase, if applicable) under such Award, in lieu of the number of Common Stock then covered by such Award, the number and class of shares and securities to which the Holder would have been entitled pursuant to the terms of the recapitalization if, immediately prior to such recapitalization, the Holder had been the holder of record of the number of Common Stock then covered by such Award.
  
 	 
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 Section 14.3. Other Events. In the event of changes to the outstanding Common Stock by reason of extraordinary cash dividend, reorganization, mergers, consolidations, combinations, split‐ups, spin‐offs, exchanges, stock split, reverse stock split or other relevant changes in capitalization occurring after the date of the grant of any Award and not otherwise provided for under this Article XIV, any outstanding Awards and any Award Agreements evidencing such Awards shall be adjusted by the Committee, in such manner as the Committee shall deem equitable or appropriate taking into consideration the applicable accounting and tax consequences, as to the number and price of Common Stock or other consideration subject to such Awards. In the event of any adjustment pursuant to Sections 14.1, 14.2 or this Section 14.3, the aggregate number of Common Stock available under the Plan pursuant to Section 5.1 may be appropriately adjusted by the Committee, the determination of which shall be conclusive. In addition, the Committee may make provision for a cash payment to a Holder or a person who has an outstanding Award. The number of Common Stock subject to any Award shall be rounded to the nearest whole number.
  
 Section 14.4. Powers Not Affected. The existence of the Plan and the Awards granted hereunder shall not affect in any way the right or power of the Board or of the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change of the Company’s capital structure or business, any merger or consolidation of the Company, any issue of debt or equity securities ahead of or affecting Common Stock or the rights thereof, the dissolution or liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding.
  
 Section 14.5. No Adjustment for Certain Awards. Except as hereinabove expressly provided, the issuance by the Company of shares of any class or securities convertible into shares of any class, for cash, property, labor or services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor or upon conversion of shares or obligations of the Company convertible into such shares or other securities, and in any case whether or not for fair value, shall not affect previously granted Awards, and no adjustment by reason thereof shall be made with respect to the number of Common Stock subject to Awards theretofore granted or the purchase price per Common Share, if applicable.
  
 ARTICLE XV
 AMENDMENT AND TERMINATION OF PLAN
  
 The Plan shall continue in effect, unless sooner terminated pursuant to this Article XV, until the tenth (10th) anniversary of the date on which it is adopted by the Board (except as to Awards outstanding on that date). The Board, in its discretion, may terminate the Plan at any time with respect to any shares for which Awards have not theretofore been granted; provided, however, that the Plan’s termination shall not materially and adversely impair the rights of a Holder with respect to any Award theretofore granted without the consent of the Holder. The Board shall have the right to alter or amend the Plan or any part hereof from time to time; provided, however, stockholder approval shall be required for ay modification of the Plan that requires stockholder approval under the rules or regulations of the Securities and Exchange Commission or any securities exchange applicable to the Company. In addition, unless otherwise permitted under the Award Agreement, no change in any Award theretofore granted may be made which would materially and adversely impair the rights of a Holder with respect to such Award without the consent of the Holder.
  
 ARTICLE XVI
 MISCELLANEOUS
  
 Section 16.1. No Right to Award. Neither the adoption of the Plan by the Company nor any action of the Board or the Committee shall be deemed to give an Employee, Director or Consultant any right to an Award except as may be evidenced by an Award Agreement duly executed on behalf of the Company, and then solely to the extent and on the terms and conditions expressly set forth therein.
  
 Section 16.2. No Rights Conferred. Nothing contained in the Plan shall (i) confer upon any Employee any right with respect to continuation of employment with the Company or any Affiliate, (ii) interfere in any way with any right of the Company or any Affiliate to terminate the employment of an Employee at any time, (iii) confer upon any Director any right with respect to continuation of such Director’s membership on the Board, (iv) interfere in any way with any right of the Company or an Affiliate to terminate a Director’s membership on the Board at any time, (v) confer upon any Consultant any right with respect to continuation of such Consultant’s consulting engagement with the Company or any Affiliate, or (vi) interfere in any way with any right of the Company or an Affiliate to terminate a Consultant’s consulting engagement with the Company or an Affiliate at any time.
  
 	 
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 Section 16.3. Other Laws; No Fractional Shares; Withholding. The Company shall not be obligated by virtue of any provision of the Plan to recognize the exercise of any Award or to otherwise sell or issue Common Stock in violation of any laws, rules or regulations, and any postponement of the exercise or settlement of any Award under this provision shall not extend the term of such Award. Neither the Company nor its directors or officers shall have any obligation or liability to a Holder with respect to any Award (or Common Stock issuable thereunder) (i) that shall lapse because of such postponement, or (ii) for any failure to comply with the requirements of any applicable law, rules or regulations, including, but not limited to, any failure to comply with the requirements of Section 409A of this Code. No fractional Common Stock shall be delivered, nor shall any cash in lieu of fractional Common Stock be paid. The Company shall have the right to deduct in cash (whether under this Plan or otherwise) in connection with all Awards any taxes required by law to be withheld and to require any payments required to enable it to satisfy its withholding obligations. In the case of any Award satisfied in the form of Common Stock, no Common Stock shall be issued unless and until arrangements satisfactory to the Company shall have been made to satisfy any tax withholding obligations applicable with respect to such Award. Subject to such terms and conditions as the Committee may impose, the Company shall have the right to retain, or the Committee may, subject to such terms and conditions as it may establish from time to time, permit Holders to elect to tender, Common Stock (including Common Stock issuable in respect of an Award) to satisfy, in whole or in part, the amount required to be withheld.
  
 Section 16.4. No Restriction on Corporate Action. Nothing contained in the Plan shall be construed to prevent the Company or any Affiliate from taking any corporate action which is deemed by the Company or such Affiliate to be appropriate or in its best interest, whether or not such action would have an adverse effect on the Plan or any Award made under the Plan. No Employee, Director, Consultant, beneficiary or other person shall have any claim against the Company or any Affiliate as a result of any such action.
  
 Section 16.5. Restrictions on Transfer. No Award under the Plan or any Award Agreement and no rights or interests herein or therein, shall or may be assigned, transferred, sold, exchanged, encumbered, pledged or otherwise hypothecated or disposed of by a Holder except (i) by will or by the laws of descent and distribution, or (ii) except for an Incentive Share Option, by gift to any Family Member of the Holder. An Award may be exercisable during the lifetime of the Holder only by such Holder or by the Holder’s guardian or legal representative unless it has been transferred by gift to a Family Member of the Holder, in which case it shall be exercisable solely by such transferee. Notwithstanding any such transfer, the Holder shall continue to be subject to the withholding requirements provided for under Section 16.3 hereof.
  
 Section 16.6. Beneficiary Designations. The Committee may also establish procedures as it deems appropriate for a Holder to designate a person or persons, as beneficiary or beneficiaries, to exercise the rights of the Holder and receive any property distributable with respect to any Award in the event of the Holder’s death. In the absence of any such written beneficiary designation, for purposes of the Plan, a Holder’s beneficiary shall be the Holder’s estate.
  
 Section 16.7. Rule 16b‐3. It is intended that the Plan and any Award made to a person subject to Section 16 of the Exchange Act shall meet all of the requirements of Rule 16b‐3. If any provision of the Plan or of any such Award would disqualify the Plan or such Award under, or would otherwise not comply with the requirements of, Rule 16b‐3, such provision or Award shall be construed or deemed to have been amended as necessary to conform to the requirements of Rule 16b‐3.
  
 Section 16.8. Section 409A. Notwithstanding anything in the Plan or any Award to the contrary, to the extent that any amount or benefit that constitutes “deferred compensation” to a Holder under Section 409A of the Code and applicable guidance thereunder is otherwise payable or distributable to a Holder under the Plan or any Award solely by reason of the occurrence of a change in control event or due to the Holder’s disability or “separation from service” (as such term is defined under Section 409A of the Code), such amount or benefit will not be payable or distributable to the Holder by reason of such circumstance unless the Committee determines in good faith that (i) the circumstances giving rise to such change in control event, disability or separation from service meet the definition of a change in control event, disability or separation from service, as the case may be, in Section 409A of the Code and applicable proposed or final regulations, or (ii) the payment or distribution of such amount or benefit would be exempt from the application of Section 409A of the Code by reason of the short-term deferral exemption or otherwise. Any payment or distribution that otherwise would be made to a Holder who is a “specified employee” (as defined under Section 409A of the Code) on account of separation from service may not be made before the date which is six (6) months after the date of the specified employee’s separation from service (or if earlier, upon the specified employee’s death) unless the payment or distribution is exempt from the application of Section 409A of the Code by reason of the short-term deferral exemption or otherwise.
  
 	 
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 Section 16.9. Indemnification. Each person who is or shall have been a member of the Board or of the Committee shall be indemnified and held harmless by the Company against and from any loss, cost, liability or expense that may be imposed upon or reasonably incurred thereby in connection with or resulting from any claim, action, suit or proceeding to which such person may be made a party or may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid thereby in settlement thereof, with the Company’s approval, or paid thereby in satisfaction of any judgment in any such action, suit or proceeding against such person; provided, however, that such person shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive and shall be independent of any other rights of indemnification to which such persons may be entitled under the Company’s Articles of Incorporation or By‐laws, by contract, as a matter of law, or otherwise.
  
 Section 16.10. Other Plans. No Award, payment or amount received hereunder shall be taken into account in computing an Employee’s salary or compensation for the purposes of determining any benefits under any pension, retirement, life insurance or other benefit plan of the Company or any Affiliate, unless such other plan specifically provides for the inclusion of such Award, payment or amount received. Nothing in the Plan shall be construed to limit the right of the Company to establish other plans or to pay compensation to its employees, directors and other service providers, in cash or property, in a manner which is not expressly authorized under the Plan.
  
 Section 16.11. Limits of Liability. Any liability of the Company with respect to an Award shall be based solely upon the contractual obligations created under the Plan and the Award Agreement. None of the Company, any member of the Board nor any member of the Committee shall have any liability to any party for any action taken or not taken, in good faith, in connection with or under the Plan.
  
 Section 16.12. Governing Law. Except as otherwise provided herein, the Plan shall be construed in accordance with Delaware law, without regard to principles of conflicts of law.
  
 Section 16.13. Severability of Provisions. If any provision of the Plan is held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision of the Plan, and the Plan shall be construed and enforced as if such invalid or unenforceable provision had not been included in the Plan.
  
 Section 16.14. No Funding. The Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or to make any other segregation of funds or assets to ensure the payment of any Award.
  
 Section 16.15. Headings. Headings used throughout the Plan are for convenience only and shall not be given legal significance.
  
 Section 16.16. Terms of Award Agreements. Each Award shall be evidenced by an Award Agreement. The terms of the Award Agreements utilized under the Plan need not be the same.
  
 	 
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