Document:

Exhibit 10.18

 

Francesca’s Holdings Corporation

 

November 26, 2014

 

Michael W. Barnes

Frisco, Texas

 

Re:    Terms of Employment

 

Dear Mike:

 

We are pleased to offer you a position with
Francesca’s Holdings Corporation and subsidiaries (the “Company”) as the President and Chief Executive
Officer and Chairman of the board of directors, reporting to the Company’s board of directors. You will be based at the Company’s
corporate headquarters (the “Corporate Headquarters”) in Houston, Texas.

 

In accordance with our discussions, set forth
below are the terms and conditions of our offer of employment to you, subject only to our completion of a satisfactory background
check and approval of the Company’s Board of Directors.

 

1.          Start
Date. We look forward to a start date of December 4, 2014 (the “Start Date”). Your employment with
the Company shall be on an at-will basis. The terms of your employment hereunder shall be governed by the laws of the State of
Texas.

 

2.          Time
Commitment to Duties. You shall devote substantially all of your business time to the proper and efficient performance
of services under this Agreement.

 

3.          Annual
Base Salary. Your initial Base Salary shall be at the rate of $875,000 per annum, commencing as of January 5, 2015.
Your Base Salary may be increased from time to time by the Board of Directors of the Company (the “Board”).

 

4.          Annual
Bonus. Commencing with the fiscal year of the Company that commences on or about February 1, 2015, your aggregate threshold,
target and maximum annual incentive bonus amounts for a particular fiscal year shall equal Fifty Percent (50%), One Hundred Fifty
Percent (150%) and Two Hundred Percent (200%), respectively, of your Base Salary for that fiscal year; provided, if actual achieved
amount falls between any of the established threshold, target or maximum amounts, the bonus amount will scale up pro-rata in accordance
with the actual achieved amount. For purposes of the annual bonus award, all applicable targets will be set by the Board of Directors.

 

5.          Retirement,
Welfare and Fringe Benefits. You shall be entitled to participate in all employee savings and welfare benefit plans and programs,
and fringe benefit plans and programs, made available by the Company to the Company’s employees generally, in accordance
with the eligibility and participation provisions of such plans and as such plans or programs may be in effect from time to time.

 

6.          Business
Expenses. You shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business expenses incurred
by you in connection with the performance of your duties hereunder in accordance with the Company’s expense reimbursement
policies and procedures.

 

    	 

    	 

    

  

7.          Vacation.
You shall be entitled to twenty-five (25) working days of paid vacation per annum, accruing in accordance with the Company’s
vacation policy.

 

8.          Performance
Based Restricted Stock Award. During the Company’s 2015 fiscal year and for each year thereafter, the Company will grant
to you (so long as you are employed by the Company at the time it grants its annual equity awards) an award of restricted shares
of common stock. The award will be granted under the Francesca’s Holdings Corporation 2011 Equity Incentive Plan, and the
terms and conditions of the award will be determined by the Board. The target number of shares of any common stock subject to the
award will equal $2,500,000 divided by the closing price of a share of Company common stock on The Nasdaq Stock Market on the last
trading day prior to the date of grant of the award.

 

9.          Hiring
Grant of Stock Options. Upon commencement of employment with the Company, you will be granted an award of One Million (1,000,000)
stock options to acquire shares of common stock (“Option Grant”). Fifty percent (50%) of these shares will vest after
year 3 if the stock achieves a $20 or higher value for 60 of 90 consecutive trading days during that 3 year period and you are
still employed by the Company. The remaining 50% of the shares will vest at the end of year 5 if the stock achieves a $25 or higher
value for 60 of 90 consecutive trading days at any time between years 3 and 5 and you are still employed by the Company. If the
year 3 price target is missed, 100% of the shares can vest at the end of year 5 if the stock achieves a $25 or higher value for
60 of 90 consecutive trading days between years 3 and 5 and you are still employed by the Company.

 

10.         Effect
of Change in Control on Option Grant. In the event a Change in Control (as defined below) occurs prior to the last day of the
5-year period in section 9 above and prior to a termination of your employment with the Company for any reason and provided further
that the value of the Company’s common stock is equal to or greater than One Hundred Forty Percent (140%) of the exercise
price per share of the Option Grant, the total number of shares subject to the Option Grant that are outstanding and unvested as
of the date of such Change in Control shall remain eligible to vest and become exercisable on the first to occur of the
following events after such Change in Control (regardless of whether the stock price goals in section 9 above are attained after
the date of such event):

 

(i)          The
date you cease to be employed by the Company due to a termination of the your employment by the Company without Cause;

 

(ii)         The
date you cease to be employed by the Company due to a termination of employment by you for Good Reason (as defined below); and

 

(iii)        The
last day of the 5-year period in section 9 above, subject to your continuous employment by the Company through the last day
of such 5-year period.

 

    	-2-

    	 

    

  

11.         Termination
of Employment.

 

(a)          Termination.
Your employment by the Company may be terminated by the Company: (i) immediately upon notice, with Cause (as defined below),
or (ii) with no less than thirty (30) days’ advance written notice to you, without Cause, or (iii) immediately
in the event of your Disability (as defined below) or your death. You may terminate your employment by the Company for any reason
with no less than thirty (30) days’ advance written notice to the Company. The date your employment by the Company terminates
is referred to herein as your “Severance Date.”

 

(b)          Benefits
upon Termination. Regardless of the reason for the termination of your employment with the Company, in connection with such
termination the Company will pay you accrued and unused vacation (if any) and you will be entitled to any benefits that are due
to you under the Company’s 401(k) plan in accordance with the terms of that plan. If you hold any stock options or other
equity or equity-based awards granted by the Company, the terms and conditions applicable to those awards will control as to the
consequences of a termination of your employment on those awards. In addition to the foregoing, if your employment with the Company
terminates as a result of a termination by the Company of your employment without Cause (as defined below), the Company will (subject
to the other conditions set forth in subsection (c) below) continue to pay you (as severance pay) your Base Salary and Target Bonus,
at the rate in effect immediately prior to the Severance Date and subject to tax withholding and other authorized deductions, for
a period of eighteen (18) months following your Severance Date (the “Severance Benefit”), in accordance with
the Company’s standard payroll practices.

 

(c)          Conditions
for Receipt of Severance Benefit. In order to receive any Severance Benefit, you must, upon or promptly following your Severance
Date, provide the Company with a separation agreement which shall contain a valid, executed general release agreement in a form
acceptable to the Company, and such release shall have not been revoked. You agree and acknowledge that such separation agreement
may contain additional restrictive covenants, including, without limitation, non-solicitation, non-compete and non-disparagement
covenants covering a period of 18 months after Severance Date.

 

12.         Defined
Terms. As used in this Agreement, the following terms shall be defined as follows:

 

(a)          “Cause”
shall mean that one or more of the following has occurred: (i) you have committed a felony (under the laws of the United States
or any relevant state, or a similar crime or offense under the applicable laws of any relevant foreign jurisdiction); (ii) you
have engaged in acts of fraud, dishonesty or other acts of material misconduct in the course of your duties; (iii) your abuse
of narcotics or alcohol that has or may reasonably harm the Company; (iv) any violation by you of the Company’s written
policies; (v) your failure to perform or uphold your duties and/or you fail to comply with reasonable directives of the Company’s
Board of Directors; or (vi) any breach by you of any provision of Section 6, or any material breach by you of this Agreement
or any other contract you are a party to with the Company.

 

    	-3-

    	 

    

  

(b)          “Change
in Control”. The occurrence of any of the following shall be deemed a “Change in Control”: (a) a change
in the ownership of the Company occurs on the date that any one Person (as defined below) or more than one Person acting as a group
(as determined under Treas. Reg. Section 1.409A-3(i)(5)(v)(B)), other than a subsidiary of the Company, acquires ownership
of stock of the Company that, together with stock held by such Person or group, constitutes more than 85% of the total fair market
value or total voting power of stock of the Company or (b) a change in the ownership of a substantial portion of the Company’s
assets occurs on the date that any one Person, or more than one Person acting as a group (as determined under Treas. Reg. Section 1.409A-3(i)(5)(v)(B)),
other than a subsidiary, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition
by such Person or Persons) assets from the Company that have a total gross fair market value of more than 85% of the total gross
fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions.

 

(c)          “Disability”
shall mean a physical or mental impairment which renders you unable to perform the essential functions of your employment with
the Company, even with reasonable accommodation that does not impose an undue hardship on the Company, for more than 180 days in
any 12-month period, unless a longer period is required by federal or state law, in which case that longer period would apply.

 

(d)          “Good
Reason” means the occurrence (without your consent) of any one or more of the following conditions: (A) a material diminution
by the Company in your rate of Base Salary; (B) a material diminution by the Company in your authority, duties, or responsibilities;
(C) a material change in the geographic location of your principal office with the Company (for this purpose, in no event shall
a relocation of such office to a new location that is not more than fifty (50) miles from the current location of the Company’s
executive offices constitute a “material change”); or (D) a material breach by the Company of this Agreement.

 

IN WITNESS WHEREOF, each party has signed this
Agreement on the date shown below.

 

	Francesca’s Holdings Corporation	 	Michael W. Barnes
	 	 	 	 	 
	By:	/s/ Greg Brenneman	 	By:	/s/ Michael Barnes
	 	Name: Greg Brenneman   	 	 	Name: Michael Barnes
	 	Title: Chairman	 	 	 
	 	 	 	 	 
	Date:	November 26, 2014	 	Date:	November 26, 2014

 

    	-4-Exhibit 10.19

 

FRANCESCA’S HOLDINGS CORPORATION

2011 EQUITY INCENTIVE PLAN

NONQUALIFIED STOCK OPTION AGREEMENT

 

THIS NONQUALIFIED STOCK OPTION AGREEMENT
(this “Option Agreement”) dated December 4, 2014 by and between Francesca’s Holdings Corporation, a Delaware
corporation (the “Corporation”), and Michael W. Barnes (the “Grantee”) evidences the nonqualified
stock option (the “Option”) granted by the Corporation to the Grantee as to the number of shares of the Corporation’s
Common Stock first set forth below.

 

	
        Number of Shares of Common Stock:1   1,000,000       Award Date:  December 4, 2014

         

        Exercise Price per Share:1                              $11.56              Expiration Date:1,2 December 3, 2024

         

        Vesting1,2
         The Option shall become vested in accordance with the performance-based and time-based vesting requirements set forth
        in Section 1 of the Terms and Conditions of Nonqualified Stock Option (the “Terms”) attached to this Option
        Agreement.

         

 

The Option is granted under the Francesca’s
Holdings Corporation 2011 Equity Incentive Plan (the “Plan”) and subject to the Terms (incorporated herein by
this reference) and to the Plan. The Option has been granted to the Grantee in addition to, and not in lieu of, any other form
of compensation otherwise payable or to be paid to the Grantee. Capitalized terms are defined in the Plan if not defined herein.
The parties agree to the terms of the Option set forth herein. The Grantee acknowledges receipt of a copy of the Terms, the Plan
and the Prospectus for the Plan. The Option is in full satisfaction of Grantee’s rights to receive a stock option award pursuant
to Sections 9 and 10 of that certain offer letter dated November 26, 2014 to which the Grantee and the Corporation are parties.

 

	“GRANTEE”	
        FRANCESCA’S HOLDINGS CORPORATION

        a Delaware corporation

 

	/s/ Michael W. Barnes	 	 	 
	Signature	 	By:	/s/ Kal Malik

 

	Michael W. Barnes	 	Print Name:	Kal Malik
	Print Name	 	 

 

	 	Title:	EVP and Chief Administrative Officer

 

CONSENT OF SPOUSE

 

In consideration of the Corporation’s
execution of this Option Agreement, the undersigned spouse of the Grantee agrees to be bound by all of the terms and provisions
hereof and of the Plan.

 

	/s/ Jennifer L. Barnes	 	12/5/2014	 
	Signature of Spouse	 	Date	 

 

 

1
Subject to adjustment under Section 7.1 of the Plan.

2
Subject to early termination under Sections 1 and 5 of the Terms and Section 7.2 of the Plan.

 

    	 

    	 

    

 

TERMS AND CONDITIONS
OF NONQUALIFIED STOCK OPTION

 

		1.	Vesting.

 

1.1          Performance-Based
and Time-Based Vesting. The Option is subject to both a time-based vesting requirement and a performance-based
vesting requirement. The total number of shares subject to the Option (subject to adjustment under Section 7.1 of the Plan) is
divided into two separate tranches as follows: one-half (1/2) of the total number of shares subject to the Option (rounded to the
nearest whole share) will be eligible to vest with respect to a performance measurement period consisting of the Tranche 1 Performance
Period (the “Tranche 1 Shares”); and one-half (1/2) of the total number of shares subject to the Option (rounded
to the nearest whole share) will be eligible to vest with respect to a performance measurement period consisting of the Tranche
2 Performance Period (the “Tranche 2 Shares”). The “Tranche 1 Performance Period” means the
three-year period consisting of the Corporation’s 2015, 2016 and 2017 fiscal years (ending on the Saturday closest to January
31 of 2016, 2017 and 2018, respectively). The “Tranche 2 Performance Period” means the two-year period consisting
of the Corporation’s 2018 and 2019 fiscal years (ending on the Saturday closest to January 31 of 2019 and 2020, respectively).

 

(A)         Vesting
of the Tranche 1 Shares. The Tranche 1 Shares shall vest and become exercisable with respect to all of the shares subject to
the Tranche 1 Shares on the last day of the Tranche 1 Performance Period, provided that (1) the closing price of the Corporation’s
Common Stock (in regular trading on The Nasdaq Stock Market or other principal exchange on which the Corporation’s Common
Stock is then listed or admitted to trade) equals or exceeds twenty dollars ($20.00) (subject to adjustment pursuant to Section
7) for not less than sixty (60) trading days during a period of not less than ninety (90) consecutive trading days during the Tranche
1 Performance Period, and (2) the Grantee continues to be employed by the Corporation or a Subsidiary through the last day of the
Tranche 1 Performance Period. To the extent the Tranche 1 Shares do not become eligible to vest in accordance with this Section
1.1(A), such Tranche 1 Shares shall, subject to the Grantee’s continued employment by the Corporation or a Subsidiary
through the last day of the Tranche 1 Performance Period, remain eligible to vest in accordance with Section 1.1(B) of this Option
Agreement (such shares, the “Carryover Shares”).

 

(B)         Vesting
of the Tranche 2 Shares and Carryover Shares. The Tranche 2 Shares (and, if applicable, any Carryover Shares) shall vest and
become exercisable with respect to all of the shares subject to the Tranche 2 Shares (and, if applicable, any Carryover Shares)
on the last day of the Tranche 2 Performance Period, provided that (1) the closing price of the Corporation’s Common Stock
(in regular trading on The Nasdaq Stock Market or other principal exchange on which the Corporation’s Common Stock is then
listed or admitted to trade) equals or exceeds twenty-five dollars ($25.00) (subject to adjustment pursuant to Section 7) for not
less than sixty (60) trading days during a period of not less than ninety (90) consecutive trading days during the Tranche 2 Performance
Period, and (2) the Grantee continues to be employed by the Corporation or a Subsidiary through the last day of the Tranche
2 Performance Period. For purposes of clarity, in no event shall the Tranche 2 Shares become eligible to vest during the Tranche
1 Performance Period.

 

    	1

    	 

    

 

1.2         Effect
of a Qualifying Change in Control. In the event a Qualifying Change in Control (as defined below) occurs prior to the last
day of the Tranche 2 Performance Period and prior to a termination of the Grantee’s employment by or service to the Corporation
or a Subsidiary for any reason, the total number of shares subject to the Option that are outstanding and unvested as of the date
of such Qualifying Change in Control shall remain eligible to vest and become exercisable on the first to occur of the following
events after such Qualifying Change in Control (regardless of whether the stock price goals of Section 1.1(A) or Section 1.1(B),
as the case may be, are attained after the date of such event):

 

(i)          The
date the Grantee ceases to be employed by or ceases to provide services to the Corporation or a Subsidiary due to a termination
of the Grantee’s employment by the Corporation or a Subsidiary without Cause (as defined below);

 

(ii)         The
date the Grantee ceases to be employed by or ceases to provide services to the Corporation or a Subsidiary due to a termination
of employment by the Grantee for Good Reason (as defined below); and

 

(iii)        The
last day of the Tranche 2 Performance Period, subject to the Grantee’s continuous employment by or service to the Corporation
or a Subsidiary through the last day of the Tranche 2 Performance Period.

 

1.3         Effect
of a Change in Control that is Not a Qualifying Change in Control. Notwithstanding anything contained herein to the contrary,
in the event a Change in Control (as defined below) occurs prior to the last day of the Tranche 2 Performance Period and such Change
in Control does not constitute a Qualifying Change in Control for purposes of this Option Agreement, the shares subject
to the Option shall terminate to the extent such shares have not become vested pursuant to Section 1 hereof prior to the Change
in Control.

 

1.4         Termination
at the End of the Tranche 2 Performance Period. The Tranche 2 Shares and, if applicable, any Carryover Shares, shall terminate
as of the end of the Tranche 2 Performance Period to the extent such shares have not become vested pursuant to Section 1 hereof
prior to such date.

 

1.5         Defined
Terms. The following definitions shall apply for purposes of this Option Agreement:

 

(i)          “Cause”
with respect to the Grantee means the definition of “Cause” provided in any written offer letter or similar written
agreement between the Grantee and the Corporation or any Subsidiary. If the Grantee is not covered by such an agreement with the
Corporation or a Subsidiary that defines such term, then “Cause” with respect to the Grantee means that one or more
of the following has occurred:  (A) the Grantee has committed a felony or a crime involving moral turpitude (under the
laws of the United States or any relevant state, or a similar crime or offense under the applicable laws of any relevant foreign
jurisdiction); (B) the Grantee has engaged in acts of fraud, dishonesty or other acts of material misconduct in the course
of the Grantee’s duties; (C) the Grantee’s abuse of narcotics or alcohol that, in the reasonable view of the Board
has or may reasonably cause material harm to the Corporation; (D) any material violation by the Grantee of the Corporation’s
written policies that, in the reasonable view of the Board, causes material harm to the Company; (E) the Grantee’s material
failure to perform or uphold his duties and/or his material failure to comply with reasonable directives of the Corporation’s
Board of Directors, as applicable; or (F) any material breach by the Grantee of this Option Agreement or any other contract
the Grantee is a party to with the Corporation or any Subsidiary.

 

    	2

    	 

    

 

(ii)         “Change
in Control” with respect to the Grantee means the definition of “Change in Control” provided in any written
offer letter or similar written agreement between the Grantee and the Corporation or any Subsidiary. If the Grantee is not covered
by such an agreement with the Corporation or a Subsidiary that defines such term, then “Change in Control” with respect
to the Grantee has the meaning ascribed to such term in the Plan.

 

(iii)        “Good
Reason” with respect to the Grantee means the definition of “Good Reason” provided in any written offer letter
or similar written agreement between the Grantee and Corporation or any Subsidiary. If the Grantee is not covered by such an agreement
with the Corporation or a Subsidiary that defines such term, then “Good Reason” with respect to the Grantee means the
occurrence (without the Grantee’s consent) of any one or more of the following conditions: (A) a material diminution by the
Company in the Grantee’s rate of base salary; (B) a material diminution by the Company in the Grantee’s authority,
duties, or responsibilities; (C) a material change in the geographic location of the Grantee’s principal office with the
Corporation (for this purpose, in no event shall a relocation of such office to a new location that is not more than fifty (50)
miles from the current location of the Corporation’s executive offices constitute a “material change”); or (D)
a material breach by the Corporation of this Option Agreement; provided, however, that any such condition or conditions, as applicable,
shall not constitute Good Reason unless both (x) the Grantee provides written notice to the Corporation of the condition claimed
to constitute Good Reason within sixty (60) days of the initial existence of such condition(s) (such notice to be delivered in
accordance with Section 8), and (y) the Corporation fails to remedy such condition(s) within thirty (30) days of receiving such
written notice thereof; and provided, further, that in all events the termination of the Grantee’s employment with the Corporation
shall not constitute a termination for Good Reason unless such termination occurs not more than one hundred and twenty (120) days
following the initial existence of the condition claimed to constitute Good Reason.

 

(iii)        “Qualifying
Change in Control” means a Change in Control pursuant to which the value of a share of the Corporation’s Common
Stock upon (or immediately prior to, as the case may be) such Change in Control is equal to or greater than One Hundred Forty Percent
(140%) of the Exercise Price per share of the Option (after giving effect to any adjustments pursuant to Section 7).

 

(iv)        “Severance
Date” means the last day that the Grantee is employed by or provides services to the Corporation or a Subsidiary.

 

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(v)         “Total
Disability” means a “permanent and total disability” (within the meaning of Section 22(e)(3) of the Code
or as otherwise determined by the Administrator).

 

2.           Limits
on Exercise; Incentive Stock Option Status.

 

The Option may be exercised only to the
extent the Option is vested and exercisable.

 

		·	Cumulative Exercisability. To the extent that the Option is vested and exercisable, the Grantee has the right to exercise
the Option (to the extent not previously exercised), and such right shall continue, until the expiration or earlier termination
of the Option.

 

		·	No Fractional Shares. Fractional share interests shall be disregarded, but may be cumulated.

 

		·	Minimum Exercise. No fewer than 100 shares of Common Stock (subject to adjustment under Section 7.1 of the Plan) may
be purchased at any one time, unless the number purchased is the total number at the time exercisable under the Option.

 

		·	Nonqualified Stock Option. The Option is a nonqualified stock option and is not, and shall not be, an incentive stock
option within the meaning of Section 422 of the Code.

 

3.           Continuance
of Employment/Service Required; No Employment/Service Commitment.

 

Except as expressly provided in Section
1 of this Option Agreement, the vesting schedule applicable to the Option requires continued employment or service through each
applicable vesting date as a condition to the vesting of the applicable installment of the Option and the rights and benefits under
this Option Agreement. Employment or service for only a portion of the vesting period, even if a substantial portion, will not
(except as expressly provided in Section 1) entitle the Grantee to any proportionate vesting or avoid or mitigate a termination
of rights and benefits upon or following a termination of employment or services as provided in Section 5 below or under the Plan.

 

Nothing contained in this Option Agreement
or the Plan constitutes a continued employment or service commitment by the Corporation or any of its Subsidiaries, affects the
Grantee’s status, if he is an employee, as an employee at will who is subject to termination without cause, confers upon
the Grantee any right to remain employed by or in service to the Corporation or any Subsidiary, interferes in any way with the
right of the Corporation or any Subsidiary at any time to terminate such employment or service, or affects the right of the Corporation
or any Subsidiary to increase or decrease the Grantee’s other compensation.

 

4.           Method
of Exercise of Option.

 

The Option shall be exercisable by the delivery
to the Secretary of the Corporation (or such other person as the Administrator may require pursuant to such administrative exercise
procedures as the Administrator may implement from time to time) of:

 

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		·	a written notice stating the number of shares of Common Stock to be purchased pursuant to the Option or by the completion of
such other administrative exercise procedures as the Administrator may require from time to time;

 

		·	payment in full for the Exercise Price of the shares to be purchased in cash, check or by electronic funds transfer to the
Corporation, or (subject to compliance with all applicable laws, rules, regulations and listing requirements and further subject
to such rules as the Administrator may adopt as to any non-cash payment) in shares of Common Stock already owned by the Grantee,
valued at their fair market value (as determined under the Plan) on the exercise date;

 

		·	any written statements or agreements required pursuant to Section 8.1 of the Plan; and

 

		·	satisfaction of the tax withholding provisions of Section 8.5 of the Plan.

 

The Administrator also may, but is not required to, authorize
a non-cash payment alternative pursuant to the terms of the Plan.

 

5.           Early
Termination of Option.

 

5.1           Expiration
Date. Subject to earlier termination as provided in Section 1 and below in this Section 5, the Option will terminate on the
“Expiration Date” set forth on the cover page of this Option Agreement (the “Expiration Date”).

 

5.2           Possible
Termination of Option upon Certain Corporate Events. The Option is subject to termination in connection with certain corporate
events as provided in Section 7.2 of the Plan.

 

5.3           Termination
of Option upon a Termination of Grantee’s Employment or Services. Subject to earlier termination on the Expiration Date
of the Option or pursuant to Section 5.2 above and subject to accelerated vesting as provided in Sections 1.2 above, if the Grantee
ceases to be employed by or ceases to provide services to the Corporation or a Subsidiary, the following rules shall apply:

 

		·	other than as expressly provided below in this Section 5.3, (a) the Grantee will have until the date that is 3 months after
his Severance Date to exercise the Option (or portion thereof) to the extent that it was vested on the Severance Date, (b) the
Option, to the extent not vested on the Severance Date, shall terminate on the Severance Date, and (c) the Option, to the extent
exercisable for the 3-month period following the Severance Date and not exercised during such period, shall terminate at
the close of business on the last day of the 3-month period;

 

		·	if the termination of the Grantee’s employment or services is the result of the Grantee’s death or Total Disability,
(a) the Grantee (or his beneficiary or personal representative, as the case may be) will have until the date that is 12 months
after the Grantee’s Severance Date to exercise the Option (or portion thereof) to the extent that it was vested on the Severance
Date, (b) the Option, to the extent not vested on the Severance Date, shall terminate on the Severance Date, and (c) the Option,
to the extent exercisable for the 12-month period following the Severance Date and not exercised during such period, shall terminate
at the close of business on the last day of the 12-month period;

 

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		·	if the Grantee’s employment or services are terminated by the Corporation or a Subsidiary for Cause, the Option (whether
vested or not) shall terminate on the Severance Date.

 

In all events the Option is subject to earlier
termination on the Expiration Date of the Option or as contemplated by Section 1 and Section 5.2 of this Option Agreement. The
Administrator shall be the sole judge of whether the Grantee continues to render employment or services for purposes of this Option
Agreement.

 

6.           Non-Transferability.

 

The Option and any other rights of the Grantee
under this Option Agreement or the Plan are nontransferable and exercisable only by the Grantee, except as set forth in Section
5.7 of the Plan.

 

7.           Adjustments
Upon Specified Events.

 

Upon the occurrence of certain events relating
to the Corporation’s stock contemplated by Section 7.1 of the Plan, the Administrator shall make adjustments in accordance
with such section in the number and kind of securities that may become vested under the Option as well as the stock price vesting
hurdles set forth in this Option Agreement.

 

8.           Notices.

 

Any notice to be given under the terms of
this Option Agreement shall be in writing and addressed to the Corporation at its principal office to the attention of the Secretary,
and to the Grantee at the address last reflected on the Corporation’s payroll records, or at such other address as either
party may hereafter designate in writing to the other. Any such notice shall be delivered in person or shall be enclosed in a properly
sealed envelope addressed as aforesaid, registered or certified, and deposited (postage and registry or certification fee prepaid)
in a post office or branch post office regularly maintained by the United States Government. Any such notice shall be given only
when received, but if the Grantee is no longer employed by the Corporation or a Subsidiary, shall be deemed to have been duly given
five business days after the date mailed in accordance with the foregoing provisions of this Section 8.

 

9.           Plan.

 

The Option and all rights of the Grantee
under this Option Agreement are subject to the terms and conditions of the Plan, incorporated herein by this reference. The Grantee
agrees to be bound by the terms of the Plan and this Option Agreement (including these Terms). The Grantee acknowledges having
read and understanding the Plan, the Prospectus for the Plan, and this Option Agreement. Unless otherwise expressly provided in
other sections of this Option Agreement, provisions of the Plan that confer discretionary authority on the Board or the Administrator
do not and shall not be deemed to create any rights in the Grantee unless such rights are expressly set forth herein or are otherwise
in the sole discretion of the Board or the Administrator so conferred by appropriate action of the Board or the Administrator under
the Plan after the date hereof.

 

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10.          Entire
Agreement.

 

This Option Agreement (including these Terms)
and the Plan together constitute the entire agreement and supersede all prior understandings and agreements, written or oral, of
the parties hereto with respect to the subject matter hereof. The Plan and this Option Agreement may be amended pursuant to Section 8.6
of the Plan. Such amendment must be in writing and signed by the Corporation. The Corporation may, however, unilaterally waive
any provision hereof in writing to the extent such waiver does not adversely affect the interests of the Grantee hereunder, but
no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision
hereof.

 

11.          Governing
Law.

 

This Option Agreement shall be governed
by and construed and enforced in accordance with the laws of the State of Delaware without regard to conflict of law principles
thereunder.

 

12.         Effect
of this Agreement.

 

Subject to the Corporation’s right
to terminate the Option pursuant to Section 7.2 of the Plan, this Option Agreement shall be assumed by, be binding upon and inure
to the benefit of any successor or successors to the Corporation.

 

13.         Counterparts.

 

This Option Agreement may be executed simultaneously
in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the
same instrument.

 

14.         Section
Headings.

 

The section headings of this Option Agreement
are for convenience of reference only and shall not be deemed to alter or affect any provision hereof.

 

15.         Waiver
of Jury Trial.

 

EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM AGAINST OUT OF OR RELATING TO THE PLAN OR THIS OPTION AGREEMENT
(INCLUDING THESE TERMS).

 

    	7

    	 

    

 

16.         Clawback
Policy.

 

The Option is subject to the terms of the
Corporation’s recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions
of applicable law, any of which could in certain circumstances require repayment or forfeiture of the Option and repayment for
forfeiture of any shares of Common Stock or other cash or property received with respect to the Option (including any value received
from a disposition of the shares acquired upon exercise of the Option).

 

    	8

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