Document:

exhibit101ppc2019ltip

                                                                                                                                                            Annex A                                         PILGRIM’S PRIDE CORPORATION                          2019 LONG TERM INCENTIVE PLAN                                                     ARTICLE 1.       PURPOSES OF THE PLAN         The purposes of the Pilgrim’s Pride Corporation 2019 Long Term Incentive Plan (the “Plan”)  are to attract and retain the best available personnel, to provide additional incentives to Employees,  Directors and Consultants  and to  promote the success  and  enhance the value of the Company’s  business by linking the personal interests of the Directors, Employees and Consultants to those of  Company  stockholders  and  by  providing  such  individuals  with  an  incentive  for  outstanding  performance to generate superior returns to Company stockholders.          ARTICLE 2.       DEFINITIONS         Wherever the following terms are used in the Plan they shall have the meanings specified  below, unless the context clearly indicates otherwise.  The singular pronoun shall include the plural  where the context so indicates.         2.1   “Affiliate” means  (a) a  Subsidiary,  (b) any  entity  in  which  the  Company  has  a    significant equity interest, or (c) any entity that directly or through one or more intermediaries is    controlled by the Company, in each case, as determined by the Committee.         2.2   “Award” means an Option, an award of Restricted Stock, a Stock Appreciation Right,    an award of Performance Shares, an award of Performance Stock Units, a Dividend Equivalent    Right, an award of Restricted Stock Units, a Performance Bonus Award, a Performance-Based    Award  or  any  other  right  or  benefit,  including  any  other Award  under Article  8,  granted  to  a    Participant pursuant to the Plan.         2.3   “Award Agreement” means any written agreement, contract, or other instrument or    document evidencing the terms and conditions of an Award, including through electronic medium.         2.4   “Board” means the Board of Directors of the Company.         2.5   “Change in Control” shall mean the occurrence of any of the following events:                 (a) a direct or indirect sale, transfer, conveyance or other disposition (other than by    way  of  merger  or  consolidation)  of  all  or  substantially  all  the  assets  of  the  Company  and  its    subsidiaries taken as a whole to any “person” or “group” (as such terms are used in Section 13(d)(3)    of the Exchange Act) as an entirety or substantially as an entirety in one transaction or series of    transactions;                 (b) the consummation of any transaction (including, without limitation, any merger,    consolidation  or  recapitalization)  to  which  the  Company  is  a  party  the  result  of  which  is  that    immediately after such transaction the stockholders of the Company immediately prior to such                                          1                                           

 

                                                                                                                                                        Annex A   transaction beneficially own less than 50.1% of the total voting power generally entitled to vote in  the election of directors, managers or trustees of the person surviving such transaction;               (c) any “person” or “group” (as such terms are used in Section 13(d)(3) of the  Exchange Act)  becomes  the  ultimate “beneficial  owner,” as  defined  in  Rule  13d-3  under  the  Exchange Act, of more than 50% of the total voting power generally entitled to vote in the election  of directors, managers or trustees of the Company on a fully-diluted basis;               (d) during any period of two consecutive years, individuals who at the beginning of  such period constituted the members of the Board (together with any new directors whose election  by such Board or whose nomination for election by the stockholders of the Company was approved  by a vote of a majority of the directors then still in office who were either directors at the beginning  of such period or whose election or nomination for election was previously so approved) cease for  any reason to constitute a majority of the members of the Board then in office; or               (e) the adoption of a plan for the liquidation or dissolution of the Company.   Notwithstanding the foregoing, to the extent that any amount constituting “non-qualified deferred  compensation” under Section 409A of the Code (as defined below) would become payable under this  Plan by reason of a Change in Control, which does not also constitute a change in ownership or  effective control of the Company or a change in the ownership of a substantial portion of the assets  of the Company within the meaning of Section 409A of the Code, then the amount shall be payable  on the earliest payment event permissible under Section 409A of the Code that is set forth in the  Award Agreement.       2.6   “Code” means the U.S. Internal Revenue Code of 1986, as amended.       2.7   “Committee” means the committee of the Board appointed or described in Article 11 to  administer the Plan.       2.8   “Common Stock” means the common stock of the Company, par value $0.01 per share,  and such other securities of the Company that may be substituted for the Common Stock pursuant to  Article 10.       2.9   “Company” means Pilgrim’s Pride Corporation, a Delaware corporation.       2.10  “Consultant” means any consultant or adviser if: (a) the consultant or adviser renders  bona fide services to the Company or any Affiliate; (b) the services rendered by the consultant or  adviser are not in connection with the offer or sale of securities in a capital-raising transaction and do  not directly or indirectly promote or maintain a market for the Company’s securities; and (c) the  consultant or adviser is a natural person.       2.11  “Director” means a member of the Board, or as applicable, a member of the board of  directors of a Subsidiary.       2.12  “Disability” means that a Participant is unable to carry out the responsibilities and  functions of the position held by the Participant by reason of any medically determined physical or                                          2                                         

 

                                                                                                                                                        Annex A       mental impairment for a period of not less than ninety (90) consecutive days.  A Participant shall not  be considered to have incurred a Disability unless he or she furnishes proof of such impairment, such  as  a  treating  physician’s  written  certification,  sufficient  to  satisfy  the  Board  in  its  discretion.   Notwithstanding the foregoing, for purposes of Incentive Stock Options granted under the Plan,  “Disability” means the Participant is disabled within the meaning of Section 22(e)(3) of the Code.       2.13  “Dividend  Equivalent  Right” means  a  right  granted  to  a  Participant  pursuant  to  Section 8.3 hereof to receive the equivalent value (in cash or Shares) of dividends paid on the  Shares.       2.14  Effective Date” shall have the meaning set forth in Section 12.1 hereof.       2.15  “Eligible  Individual” means  any  person  who  is  an  Employee,  a  Consultant  or  a  Director, as determined by the Committee.       2.16  “Employee” means a full time or part time employee of the Company or any Affiliate,  including an officer or Director, who is treated as an employee in the personnel records of the  Company or Affiliate for the relevant period, but shall exclude individuals who are classified by the  Company or Affiliate as (a) leased from or otherwise employed by a third party, (b) independent  contractors or (c) intermittent or temporary, even if any such classification is changed retroactively  as a result of an audit, litigation or otherwise.  A Participant shall not cease to be an Employee in the  case of (i) any vacation or sick time or otherwise approved paid time off in accordance with the  Company or an Affiliate’s policy or (ii) transfers between locations of the Company or between the  Company and/or any Affiliate.  Neither services as a Director nor payment of a director’s fee by the  Company or an Affiliate shall be sufficient to constitute “employment” by the Company or any  Affiliate.       2.17  “Equity Restructuring” shall mean a nonreciprocal transaction between the company  and its stockholders, such as a stock dividend, stock split, spin-off, rights offering or recapitalization  through  a  large,  nonrecurring  cash  dividend,  that  affects  the  Shares  (or  other  securities  of  the  Company) or the price of Shares (or other securities) and causes a change in the per share value of  the Shares underlying outstanding Awards.       2.18  “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.       2.19  “Fair Market Value” means, as of any given date, (a) if Shares are traded on any  established stock exchange, the closing price of a Share as quoted on the principal exchange on  which the Shares are listed, as reported in the Wall Street Journal (or such other source as the  Company may deem reliable for such purposes) for such date, or if no sale occurred on such date,  the first trading date immediately prior to such date during which a sale occurred; or (b) if Shares are  not traded on an exchange but are regularly quoted on a national market or other quotation system,  the closing sales price on such date as quoted on such market or system, or if no sales occurred on  such date, then on the date immediately prior to such date on which sales prices are reported; or (c)  in the absence of an established market for the Shares of the type described in clauses (a) or (b) of  this Section 2.19, the fair market value established by the Committee acting in good faith.                                          3                                         

 

                                                                                                                                                        Annex A           2.20  “Incentive Stock Option” means an Option that is intended to meet the requirements of  Section 422 of the Code or any successor provision thereto.       2.21  “Independent Director” means a Director of the Company who is not an Employee.       2.22  “Non-Employee Director” means a Director of the Company who qualifies as a “Non- Employee Director” as defined in Rule 16b-3(b)(3) under the Exchange Act, or any successor rule.       2.23  “Non-Qualified Stock Option” means an Option that is not intended to be an Incentive  Stock Option.       2.24  “Option” means a right granted to a Participant pursuant to Article 5 to purchase a  specified number of Shares at a specified price during specified time periods.  An Option may be  either an Incentive Stock Option or a Non-Qualified Stock Option.       2.25  “Participant” means  any  Eligible  Individual  who,  as  an  Independent  Director,  Consultant or Employee, has been granted an Award pursuant to the Plan.       2.26  “Performance-Based Award” means an Award granted pursuant to Article 6 or Article 8  that vests, in whole or in part, based on the attainment of Performance Goals.       2.27  “Performance Bonus Award” has the meaning set forth in Section 8.5 hereof.       2.28  “Performance Criteria” means the criteria that the Committee selects for purposes of  establishing the Performance Goal or Performance Goals for a Participant for a Performance Period.   The Performance Criteria that may be used to establish Performance Goals include, but are not  limited to the following:  revenue; earnings or net earnings (including earnings before or after any  one or more of the following: interest, taxes, depreciation, or amortization); sales; economic value- added; cash flow (including, but not limited to, operating cash flow and free cash flow); cash flow  return on capital; earnings per share of Common Stock (including earnings before any one or more  of the following: interest, taxes, depreciation, amortization, restructuring costs or rental expenses);  return on equity; return on capital; total stockholder return; return on invested capital; return on  assets or net assets; return on sales; income or net income (either before or after taxes); operating  earnings;  operating  income  or  net  operating  income;  operating  profit  or  net  operating  profit;  operating or net profit margin; cost reductions or savings or expense management; funds from  operations; appreciation in the Fair Market Value of shares of Common Stock; working capital;  market share; productivity; expense; operating efficiency; customer satisfaction; and safety record,  any of which may be measured in absolute terms or as compared to any incremental increase, on a  consolidated basis, on an adjusted basis, or as compared to the performance of a published or special  index, including, but not limited to, the Standard & Poor’s 500 Stock Index, the Nasdaq Market  Index, the Russell 2000 index or a group of comparable companies, or any combination thereof.       2.29  “Performance Goals” means, for a Performance Period, the goals established in writing  by the Committee for the Performance Period based upon the Performance Criteria.  Depending on                                          4                                         

 

                                                                                                                                                        Annex A                   the Performance Criteria used to establish such Performance Goals, the Performance Goals may be  expressed  in  terms  of  overall  Company  performance,  the  performance  of  an  Affiliate,  the  performance of a division, business unit, geography, segment, product, product line, partnership,  joint venture, minority investment or any combination thereof, of the Company or an Affiliate, or the  performance of an individual.  The Committee, in its discretion, may appropriately adjust or modify  the calculation of Performance Goals for such Performance Period in order to prevent the dilution or  enlargement of the rights of Participants (a) in the event of, or in anticipation of, any unusual or  extraordinary corporate item, transaction, event, or development, or (b) in recognition of, or in  anticipation of, any other unusual or nonrecurring events affecting the Company, or the financial  statements of the Company, or in response to, or in anticipation of, changes in applicable laws,  regulations, accounting principles, or business conditions.       2.30  “Performance Period” means one or more periods of time, which may be of varying and  overlapping durations, as the Committee may select, over which the attainment of one or more  Performance Goals will be measured for the purpose of determining a Participant’s right to, and the  payment of, a Performance-Based Award.       2.31  “Performance Share” means a right granted to a Participant pursuant to Section 8.1  hereof, to receive Shares, the payment of which is contingent upon achieving certain Performance  Goals or other performance-based targets established by the Committee.       2.32  “Performance Stock Unit” means a right granted to a Participant pursuant to Section 8.2  hereof, to receive Shares, the payment of which is contingent upon achieving certain Performance  Goals or other performance-based targets established by the Committee.       2.33  “Plan” means this Pilgrim’s Pride Corporation 2019 Long Term Incentive Plan, as it  may be amended from time to time.       2.34  “Restricted Stock” means Shares awarded to a Participant pursuant to Article 6 that are  subject to certain restrictions and may be subject to risk of forfeiture.       2.35  “Restricted Stock Unit” means an Award granted pursuant to Section 8.4 hereof and  shall be evidenced by a bookkeeping entry representing the equivalent of one Share.       2.36  “Section 409A Compliance” shall have the meaning assigned to it in Section 9.6 hereof.       2.37  “Securities Act” shall mean the U.S. Securities Act of 1933, as amended.       2.38  “Share” means a share of Common Stock.       2.39  “Stock Appreciation Right” or “SAR” means a right granted pursuant to Article 7 to  receive a payment equal to the excess of the Fair Market Value of a specified number of Shares on  the date the SAR is exercised over the Fair Market Value on the date the SAR was granted as set  forth in the applicable Award Agreement.                                          5                                         

 

                                                                                                                                                        Annex A           2.40  “Subsidiary” means any “subsidiary corporation” as defined in Section 424(f) of the  Code and any applicable regulations promulgated thereunder or any other entity of which a majority  of the outstanding voting stock or voting power is beneficially owned directly or indirectly by the  Company.        ARTICLE 3.       SHARES SUBJECT TO THE PLAN       3.1   Number of Shares.               (a) Subject to Article 10 and Section 3.1(b) hereof, the aggregate number of Shares  which may be issued or transferred pursuant to Awards under the Plan is 2,000,000 Shares, all of  which may be issued upon the exercise of Incentive Stock Options.               (b) To the extent that an Award terminates, expires, lapses for any reason, or is  settled in cash, any Shares subject to the Award shall again be available for the grant of an Award  pursuant to the Plan.  Additionally, any Shares tendered or withheld to satisfy the grant or exercise  price or tax withholding obligation pursuant to any Award shall again be available for the grant of an  Award.  To the extent permitted by applicable law or any exchange rule, Shares issued in assumption  of, or in substitution for, any outstanding awards of any entity acquired in any form of combination  by the Company or any Subsidiary shall not be counted against Shares available for grant pursuant to  this Plan.  The payment of Dividend Equivalent Rights in cash in conjunction with any outstanding  Awards  shall  not  be  counted  against  the  Shares  available  for issuance  under  the  Plan.   Notwithstanding the provisions of this Section 3.1(b), no Shares may again be optioned, granted or  awarded if such action would cause an Incentive Stock Option to fail to qualify as an incentive stock  option under Section 422 of the Code.       3.2   Shares Distributed.  Any Shares distributed pursuant to an Award may consist, in whole  or in part, of authorized and unissued Shares, treasury Shares or Shares purchased on the open  market.       3.3   Limitation on Number of Shares Subject to Awards.  Notwithstanding any provision in  the Plan to the contrary, the maximum number of Shares with respect to one or more Awards that  may be granted to any one Participant during any fiscal year shall be 2,000,000 Shares and the  maximum  amount that may be paid  in cash during  any fiscal  year with respect  to  any Award  (including, without limitation, any Performance Bonus Award) shall be $10,000,000.       3.4   Repricing.  Notwithstanding the foregoing, a Repricing (as defined below) is prohibited  without prior stockholder approval.  Subject to compliance with the provisions of the immediately  preceding sentence regarding a Repricing, the Committee may, at any time or from time to time: (a)  authorize the Company, with the consent of the respective Participants, to issue new Awards in  exchange for the surrender and cancellation of any or all outstanding Awards or (b) buy from a  Participant an Award previously granted with payment in cash, Shares (including Restricted Stock)  or other consideration, based on such terms and conditions as the Committee and the Participant may  agree.  For purposes of the Plan, “Repricing” means any of the following or any other action that has  the same purpose and effect: (i) lowering the exercise price of an outstanding Option or SAR granted  under the Plan after it is granted or (ii) canceling an outstanding Award granted under the                                         6                                         

 

                                                                                                                                                        Annex A                   Plan at a time when its exercise or purchase price exceeds the then Fair Market Value of the stock  underlying such outstanding Award, in exchange for another Award or a cash payment, unless the  cancellation and exchange occurs in connection with a merger, amalgamation, consolidation, sale of  substantially all the Company’s assets, acquisition, spin-off or other similar corporate transaction.        ARTICLE 4.       ELIGIBILITY AND PARTICIPATION       4.1   Eligibility.  Each Eligible Individual shall be eligible to be granted one or more Awards  pursuant to the Plan.       4.2   Participation.  Subject to the provisions of the Plan, the Committee may, from time to  time, select from among all Eligible Individuals, those to whom Awards shall be granted and shall  determine the nature and amount of each Award.  No Eligible Individual shall have any right to be  granted an Award pursuant to this Plan.       4.3   Non-U.S. Participants.  Notwithstanding any provision of the Plan to the contrary, in  order to comply with the laws in countries outside the United States in which the Company and its  Affiliates operate or have Eligible Individuals, the Committee, in its sole discretion, shall have the  power and authority to: (a) determine which Affiliates shall be covered by the Plan; (b) determine  which Eligible Individuals outside the United States are eligible to participate in the Plan; (c) modify  the terms and conditions of any Award granted to Eligible Individuals outside the United States to  comply with applicable laws of jurisdictions outside of the United States; (d) establish subplans and  modify exercise procedures and other terms and procedures and rules, to the extent such actions may  be necessary or advisable (any such subplans and/or modifications shall be attached to this Plan as  appendices), including adoption of rules, procedures or subplans applicable to particular Affiliates or  Participants  residing  in  particular  locations; provided,  however,  that  no  such subplans  and/or  modifications shall increase the share limitations contained in Sections 3.1 and 3.3 hereof; and (e)  take any action, before or after an Award is made, that it deems advisable to obtain approval or  comply  with  any  necessary  local  governmental  regulatory  exemptions  or  approvals.   Without  limiting the generality of the foregoing, the Committee is specifically authorized to adopt rules,  procedures and subplans with provisions that limit or modify rights on death, disability or retirement  or on termination of employment, available methods of exercise or settlement of an Award, payment  of income, social insurance contributions and payroll taxes, the shifting of employer tax liability to  the Participant, the withholding procedures and handling of any Share certificates or other indicia of  ownership which may vary with local requirements.  Notwithstanding the foregoing, the Committee  may  not  take  any  actions  hereunder,  and  no Awards  shall  be  granted,  that  would  violate  the  Exchange Act, the Code, any securities law or governing statute or any other applicable law.        ARTICLE 5.       STOCK OPTIONS       5.1   General.  The Committee is authorized to grant Options to Eligible Individuals on the  following terms and conditions:                                          7                                         

 

                                                                                                                                                        Annex A                               (a) Exercise Price.  The exercise price per Share subject to an Option shall be  determined by the Committee and set forth in the Award Agreement; provided that, subject to  Section 5.2(c) hereof, the per Share exercise price for any Option shall not be less than 100% of the  Fair Market Value of a Share on the date of grant.               (b) Time and Conditions of Exercise.  The Committee shall determine the time or  times at which an Option may be exercised in whole or in part; provided that the term of any Option  granted  under  the  Plan  shall  not  exceed  ten  years.   The  Committee  shall  also  determine  the  performance or other conditions, if any, that must be satisfied before all or part of an Option may be  exercised.               (c) Payment.  The Committee shall determine the methods by which the exercise  price of an Option may be paid, the form of payment, including, without limitation: (i) cash or check,  (ii) surrender of Shares or delivery of a properly executed form of attestation of ownership of Shares  as the Committee may require (including withholding of Shares otherwise deliverable upon exercise  of the Award) which have a Fair Market Value on the date of surrender or attestation equal to the  aggregate exercise price of the Shares as to which the Award shall be exercised, (iii) promissory note  bearing interest at no less than such rate as shall then preclude the imputation of interest under the  Code), (iv) other property acceptable to the Committee (including through the delivery of a notice  that the Participant has placed a market sell order with a broker with respect to Shares then issuable  upon exercise of the Option, and that the broker has been directed to pay a sufficient portion of the  net proceeds of the sale to the Company in satisfaction of the Option exercise price; provided that  payment of such proceeds is then made to the Company upon settlement of such sale, or (v) any  combination of the foregoing methods of payment.  The Committee shall also determine the methods  by which Shares shall be delivered or deemed to be delivered to Participants.  Notwithstanding any  other provision of the Plan to the contrary, no Participant who is a Director or an “executive officer”  of the Company within the meaning of Section 13(k) of the Exchange Act shall be permitted to pay  the exercise price of an Option, or continue any extension of credit with respect to the exercise price  of an Option with a loan from the Company or a loan arranged by the Company in violation of  Section 13(k) of the Exchange Act.               (d) Evidence of Grant.  All Options shall be evidenced by an Award Agreement  between the Company and the Participant.  The Award Agreement shall include such additional  provisions as may be specified by the Committee.       5.2   Incentive Stock Options.  Incentive Stock Options shall be granted only to Employees  of the Company or any Subsidiary, and the terms of any Incentive Stock Options granted pursuant to  the Plan, in addition to the requirements of Section 5.1 hereof, must comply with the provisions of  this Section 5.2.               (a) Expiration.  Subject to Section 5.2(c) hereof, an Incentive Stock Option shall  expire and may not be exercised to any extent by anyone after the first to occur of the following  events:                   (i)   Ten years from the date it is granted, unless an earlier time is set in the  Award Agreement;                                         8                                         

 

                                                                                                                                                            Annex A                          (ii) Three months after the Participant’s termination of employment as an    Employee; and                     (iii) One year after the date of the Participant’s termination of employment or  service on account of Disability or death.  Upon the Participant’s Disability or death, any Incentive  Stock Options exercisable at the Participant’s Disability or death may be exercised by the Participant’s  legal representative or representatives, by the person or persons entitled to do so pursuant to the  Participant’s last will and testament, or, if the Participant fails to make testamentary disposition of  such Incentive Stock Option or dies intestate, by the person or persons entitled to receive the Incentive  Stock Option pursuant to the applicable laws of descent and distribution.                 (b) Dollar Limitation.  The aggregate Fair Market Value (determined as of the time    the Option  is  granted)  of  all  Shares  with  respect  to  which  Incentive  Stock  Options  are  first    exercisable by a Participant in any calendar year may not exceed $100,000 or such other limitation    as imposed by Section 422(d) of the Code, or any successor provision.  To the extent that Incentive    Stock Options are first exercisable by a Participant in excess of such limitation, the excess shall be    considered Non-Qualified Stock Options.                 (c) Ten  Percent  Owners.  An  Incentive  Stock  Option  shall  be  granted  to  any    individual who, at the date of grant, owns stock possessing more than ten percent of the total    combined voting power of all classes of Shares of the Company only if such Option is granted at a    price  that  is  not  less  than  110%  of  Fair  Market  Value  on  the  date  of  grant  and  the  Option  is    exercisable for no more than five years from the date of grant.                 (d) Notice of Disposition.  The Participant shall give the Company prompt notice of    any disposition of Shares acquired by exercise of an Incentive Stock Option within (i) two years    from the date of grant of such Incentive Stock Option or (ii) one year after the transfer of such    Shares to the Participant.                 (e) Right to Exercise.  During a Participant’s lifetime, an Incentive Stock Option    may be exercised only by the Participant.                 (f) Failure to Meet Requirements.  Any Option (or portion thereof) purported to be    an Incentive Stock Option, which, for any reason, fails to meet the requirements of Section 422 of    the Code shall be considered a Non-Qualified Stock Option.         5.3   Substitution of Stock Appreciation Rights.  The Committee may provide in the Award    Agreement evidencing the grant of an Option that the Committee, in its sole discretion, shall have to    right to substitute a Stock Appreciation Right for such Option at any time prior to or upon exercise of    such Option; provided, that such Stock Appreciation Right shall be exercisable with respect to the    same number of Shares for which such substituted Option would have been exercisable.          ARTICLE 6.       RESTRICTED STOCK AWARDS         6.1   Grant of Restricted Stock.  The Committee is authorized to make Awards of Restricted    Stock to any Eligible Individual selected by the Committee in such amounts and subject to such                                           9                                           

 

                                                                                                                                                        Annex A      terms and conditions as determined by the Committee.  All Awards of Restricted Stock shall be  evidenced by an Award Agreement.       6.2   Purchase  Price.   At  the  time  of  the  grant  of  an  Award  of  Restricted  Stock,  the  Committee shall determine the price, if any, to be paid by the Participant for each Share subject to  the Award of Restricted Stock.  To the extent required by applicable law, the price to be paid by the  Participant for each Share subject to the Award of Restricted Stock shall not be less than the par  value of a Share (or such higher amount required by applicable law).  The purchase price of Shares  acquired pursuant to the Award of Restricted Stock shall be paid either: (i) in cash at the time of  purchase; (ii) at the sole discretion of the Committee, by services rendered or to be rendered to the  Company or an Affiliate; or (iii) in any other form of legal consideration that may be acceptable to  the Committee in its sole discretion and in compliance with applicable law.       6.3   Issuance and Restrictions.  Restricted Stock shall be subject to such restrictions on  transferability and other restrictions as the Committee may impose (including, without limitation,  limitations on the right to vote Restricted Stock or the right to receive dividends on the Restricted  Stock).  These restrictions may lapse separately or in combination at such times, pursuant to such  circumstances, in such installments, or otherwise, as the Committee determines at the time of the  grant of the Award or thereafter.       6.4   Forfeiture.  Except as otherwise determined by the Committee at the time of the grant  of  the Award  or  thereafter,  upon  termination  of  employment  or  service  during  the  applicable  restriction period, Restricted Stock that is at that time subject to restrictions shall be forfeited;  provided, however, that the Committee may (a) provide in any Restricted Stock Award Agreement  that restrictions or forfeiture conditions relating to Restricted Stock will be waived in whole or in  part in the event of terminations resulting from specified causes, and (b) in other cases waive in  whole or in part restrictions or forfeiture conditions relating to Restricted Stock.       6.5   Certificates for Restricted Stock.  Restricted Stock granted pursuant to the Plan may be  evidenced in such manner as the Committee shall determine.  If certificates representing shares of  Restricted Stock are registered in the name of the Participant, certificates must bear an appropriate  legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock, and the  Company may, at its discretion, retain physical possession of the certificate until such time as all  applicable restrictions lapse.        ARTICLE 7.       STOCK APPRECIATION RIGHTS       7.1   Grant of Stock Appreciation Rights.               (a) A Stock Appreciation Right may be granted to any Eligible Individual selected  by the Committee.  A Stock Appreciation Right shall be subject to such terms and conditions not  inconsistent with the Plan as the Committee shall impose and shall be evidenced by an Award  Agreement, provided that the term of any Stock Appreciation Right shall not exceed ten years.                                         10                                         

 

                                                                                                                                                        Annex A                               (b) A Stock Appreciation Right shall entitle the Participant (or other person entitled  to exercise the Stock Appreciation Right pursuant to the Plan) to exercise all or a specified portion of  the Stock Appreciation Right (to the extent then exercisable pursuant to its terms) and to receive  from the Company an amount equal to the product of (i) the excess of (A) the Fair Market Value of  the Shares on the date the Stock Appreciation Right is exercised over (B) the Fair Market Value of  the Shares on the date the Stock Appreciation Right was granted and (ii) the number of Shares with  respect to which the Stock Appreciation Right is exercised, subject to any limitations the Committee  may impose.       7.2   Payment and Limitations on Exercise.               (a) Subject to Section 7.2(b) hereof, payment of the amounts determined under  Section 7.1(b) hereof shall be in cash, in Shares (based on its Fair Market Value as of the date the  Stock Appreciation Right is exercised) or a combination of both, as determined by the Committee.               (b) To the extent any payment under Section 7.1(b) hereof is effected in Shares, it  shall be made subject to satisfaction of all provisions of Article 5 pertaining to Options.        ARTICLE 8.       OTHER TYPES OF AWARDS       8.1   Performance Share Awards.  Any Eligible Individual selected by the Committee may be  granted one or more Awards of Performance Shares which shall be denominated in a number of  Shares and which may be linked to any one or more of the Performance Criteria or other specific  performance criteria determined appropriate by the Committee, in each case on a specified date or  dates or over any period or periods determined by the Committee.  In making such determinations,  the Committee shall consider (among such other factors as it deems relevant in light of the specific  type  of  award)  the  contributions,  responsibilities  and  other  compensation  of  the  particular  Participant.       8.2   Performance Stock Units.  Any Eligible Individual selected by the Committee may be  granted one or more Performance Stock Unit awards which shall be denominated in unit equivalents  of Shares and/or units of value including dollar value of Shares and which may be linked to any one  or more of the Performance Criteria or other specific performance criteria determined appropriate by  the Committee, in each case on a specified date or dates or over any period or periods determined by  the Committee.  In making such determinations, the Committee shall consider (among such other  factors as it deems relevant in light of the specific type of award) the contributions, responsibilities  and other compensation of the particular Participant.                                         11                                         

 

                                                                                                                                                        Annex A          8.3   Dividend Equivalent Rights.  Any Eligible Individual selected by the Committee may  be granted Dividend Equivalent Rights based on the dividends declared on the Shares that are  subject to any Award, to be credited as of dividend payment dates, during the period between the  date the Award is granted and the date the Award is exercised, vests or expires, as determined by the  Committee.  Such Dividend Equivalent Rights shall be converted to cash or additional Shares by  such  formula  and  at  such  time  and  subject  to  such  limitations  as  may  be  determined  by  the  Committee.       8.4   Restricted Stock Units.  The Committee is authorized to make Awards of Restricted  Stock Units to any Eligible Individual selected by the Committee in such amounts and subject to  such terms and conditions as determined by the Committee.  At the time of grant, the Committee  shall specify the date or dates on which the Restricted Stock Units shall become fully vested and  nonforfeitable, and may specify such conditions to vesting as it deems appropriate.  At the time of  grant, the Committee shall specify the maturity date applicable to each grant of Restricted Stock  Units which shall be no earlier than the vesting date or dates of the Award and may be determined at  the election of the grantee.  On the maturity date, the Company shall, subject to Section 9.5(b),  transfer to the Participant one unrestricted, fully transferable Share for each Restricted Stock Unit  scheduled to be paid out on such date and not previously forfeited.  Alternatively, settlement of a  Restricted Stock Unit may be made in cash or any combination of cash and Shares, as determined by  the Committee, in its sole discretion, at the time of grant of the Restricted Stock Units.  Methods of  converting Restricted Stock Units into cash may include, without limitation, a method based on the  average Fair Market Value of Shares over a series of trading days.  A holder of Restricted Stock  Units shall have no rights other than those of a general creditor of the Company.  Restricted Stock  Units represent an unfunded and unsecured obligation of the Company, subject to the terms and  conditions of the applicable Award Agreement evidencing the grant of the Restricted Stock Unit.       8.5   Performance Bonus Awards.  Any Eligible Individual selected by the Committee may  be granted one or more Performance-Based Awards in the form of a cash bonus (a “Performance  Bonus Award”) payable upon the attainment  of Performance Goals  that are established by the  Committee and relate to one or more of the Performance Criteria, in each case on a specified date or  dates or over any period or periods determined by the Committee.       8.6   Other Awards.  The Committee is authorized under the Plan to make any other Award to  an Eligible Individual that is not inconsistent with the provisions of the Plan and that by its terms  involves or might involve the issuance of (i) Shares, (ii) a right with an exercise or conversion  privilege related to the passage of time, the occurrence of one or more events, or the satisfaction of  performance criteria or other conditions, or (iii) any other security with the value derived from the  value of the Shares.  The Committee may establish one or more separate programs under the Plan for  the purpose of issuing particular forms of Awards to one or more classes of Participants on such  terms and conditions as determined by the Committee from time to time.       8.7   Term.  Except as otherwise provided herein, the term of any Award of  Performance  Shares, Performance Stock Units, Dividend Equivalent Rights, Restricted Stock Units and any other  Award granted pursuant to this Article 8 shall be set by the Committee in its discretion.                                         12                                         

 

                                                                                                                                                        Annex A          8.8   Exercise or Purchase Price.  The Committee may establish the exercise or purchase  price, if any, of any Award of Performance Shares, Performance Stock Units, Restricted Stock Units  and any other Award granted pursuant to this Article 8; provided, however, that such price shall not  be less than the par value of a Share on the date of grant, unless otherwise permitted by applicable  state law.       8.9   Exercise upon Termination of Employment or Service.  An Award of Performance  Shares, Performance Stock Units, Dividend Equivalent Rights, Restricted Stock Units and any other  Award granted pursuant to this Article 8 shall only be exercisable or payable while the Participant is  an Employee, Consultant or Director, as applicable; provided, however, that the Committee in its  sole and absolute discretion may provide that an Award of Performance Shares, Performance Stock  Units, Dividend Equivalent Rights, Restricted Stock Units or any other Award granted pursuant to  this Article 8 may be exercised or paid subsequent to a termination of employment or service, as  applicable, or following  a Change in  Control  of  the Company, or because of the Participant’s  retirement, death or disability, or otherwise.       8.10  Form of Payment.  Payments with respect to any Awards granted under this Article 8  shall be made in cash, in Shares or a combination of both, as determined by the Committee.       8.11  Award Agreement.  All Awards under this Article 8 shall be subject to such additional  terms  and  conditions  as  determined  by  the  Committee and  shall  be  evidenced  by  an  Award  Agreement.       8.12  Payment of Performance-Based Awards.  Unless otherwise provided in the applicable  Award Agreement, a Participant must be employed by the Company or an Affiliate on the day a  Performance-Based  Award  for  the  appropriate  Performance  Period  is  paid  to  the  Participant.   Furthermore, a Participant shall be eligible to receive payment pursuant to a Performance-Based  Award for a Performance Period only if the Performance Goals for such period are achieved.  In  determining the amount earned by a Participant under a Performance-Based Award, the Committee  shall have the right to modify the amount payable at a given level of performance, if in its sole and  absolute discretion, such modification is appropriate, or to take into account additional factors that  the Committee may deem relevant to the assessment of individual or corporate performance for the  Performance Period.        ARTICLE 9.       PROVISIONS APPLICABLE TO AWARDS       9.1   Stand-Alone and Tandem Awards.  Awards granted pursuant to the Plan may, in the  discretion of the Committee, be granted either alone, in addition to, or in tandem with, any other  Award granted pursuant to the Plan. Awards granted in addition to or in tandem with other Awards  may be granted either at the same time as or at a different time from the grant of such other Awards.       9.2   Award Agreement.  Awards under the Plan shall be evidenced by Award Agreements  that set forth the terms, conditions and limitations for each Award which may include the term of an  Award, the provisions applicable in the event the Participant’s employment or service terminates,                                         13                                         

 

                                                                                                                                                        Annex A      and the Company’s authority to unilaterally or bilaterally amend, modify, suspend, cancel or rescind  an Award.       9.3   Limits on Transfer.  No right or interest of a Participant in any Award may be pledged,  encumbered, or hypothecated to or in favor of any party other than the Company or an Affiliate, or  shall be subject to any lien, obligation, or liability of such Participant to any other party other than  the Company or an Affiliate.  Except as otherwise provided by the Committee, no Award shall be  assigned, transferred, or otherwise disposed of by a Participant (including, without limitation, to a  third party financial institution or for consideration) other than by will or the laws of descent and  distribution or pursuant to beneficiary designation procedures approved from time to time by the  Committee (or the Board in the case of Awards granted to Independent Directors).  The Committee  by express provision in the Award or an amendment thereto may permit an Award (other than an  Incentive Stock Option) to be transferred to, exercised by and paid to certain persons or entities  related  to  the  Participant,  including,  but  not  limited  to,  members  of  the  Participant’s  family,  charitable  institutions,  or  trusts  or  other  entities  whose  beneficiaries  or  beneficial  owners  are  members of the Participant’s family and/or charitable institutions, or to such other persons or entities  as may be expressly approved by the Committee, pursuant to such conditions and procedures as the  Committee  may  establish.   Any  permitted  transfer  shall  be  subject  to  the  condition  that  the  Committee receive evidence satisfactory to it that the transfer is being made for estate and/or tax  planning  purposes  (or  to  a “blind  trust” in  connection  with  the  Participant’s  termination  of  employment or service with the Company or an Affiliate to assume a position with a governmental,  charitable,  educational  or  similar  non-profit  institution)  and  on  a  basis  consistent  with  the  Company’s lawful issue of securities.       9.4   Beneficiaries.  Notwithstanding Section 9.3 hereof, a Participant may, in the manner  determined by the Committee, designate a beneficiary to exercise the rights of the Participant and to  receive any distribution with respect to any Award upon the Participant’s death.  A beneficiary, legal  guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject to  all terms and conditions of the Plan and any Award Agreement applicable to the Participant, except  to the extent the Plan and Award Agreement otherwise provide, and to any additional restrictions  deemed necessary or appropriate by the Committee.  If the Participant is married and resides in a  community property state, a designation of a person other than the Participant’s spouse as his or her  beneficiary with respect to more than 50% of the Participant’s interest in the Award shall not be  effective without the prior written consent of the Participant’s spouse.  If no beneficiary has been  designated or survives the Participant, payment shall be made to the person entitled thereto pursuant  to  the  Participant’s  will  or  the  laws  of  descent  and  distribution.   Subject  to  the  foregoing,  a  beneficiary designation may be changed or revoked by a Participant at any time provided the change  or revocation is filed with the Committee prior to the Participant’s death.       9.5   Stock Certificates; Book Entry Procedures.               (a) Notwithstanding anything herein to the contrary, the Company shall not be  required to issue or deliver any certificates evidencing Shares pursuant to the exercise or vesting of  any Award, unless and until the Board has determined, with advice of counsel, that the issuance and  delivery of such certificates is in compliance with all applicable laws, regulations of governmental                                         14                                         

 

                                                                                                                                                        Annex A                   authorities and, if applicable, the requirements of any exchange on which the Shares are listed or  traded.  All certificates evidencing Shares delivered pursuant to the Plan are subject to any stop- transfer orders and other restrictions as the Committee deems necessary or advisable to comply with  federal, state local, securities or other laws, including laws of jurisdictions outside of the United  States, rules and regulations and the rules of any national securities exchange or automated quotation  system on which the Shares are listed, quoted, or traded.  The Committee may place legends on any  certificate evidencing Shares to reference restrictions applicable to the Shares.  In addition to the  terms and conditions provided herein, the Board may require that a Participant make such reasonable  covenants, agreements, and representations as the Board, in its discretion, deems advisable in order  to comply with any such laws, regulations, or requirements. The Committee shall have the right to  require any Participant to comply with any timing or other restrictions with respect to the settlement  or exercise of any Award, including a window-period limitation, as may be imposed in the discretion  of the Committee.               (b) Notwithstanding any other provision of the Plan, unless otherwise determined  by the Committee or required by any applicable law, rule or regulation, the Company shall not  deliver to any Participant certificates evidencing Shares issued in connection with any Award and  instead such Shares shall be recorded in the books of the Company (or, as applicable, its transfer  agent or stock plan administrator).       9.6   Accelerated Vesting and Deferral  Limitations.  The Committee shall not have the  discretionary authority to accelerate or delay issuance of Shares under an Award that constitutes a  deferral of compensation within the meaning of Section 409A of the Code, except to the extent that  such acceleration or delay may, in the discretion of the Committee, be effected in a manner that will  not cause any person to incur taxes, interest or penalties under Section 409A of the Code (“Section  409A Compliance”).       9.7   Paperless Administration.  In the event that the Company establishes, for itself or using  the services of a third party, an automated system for the documentation, granting or exercise of  Awards, such as a system using an internet website or interactive voice response, then the paperless  documentation, granting or exercise of Awards by a Participant may be permitted through the use of  such an automated system.       ARTICLE 10.       CHANGES IN CAPITAL STRUCTURE       10.1  Adjustments.               (a) In the event of any stock dividend, stock split, combination or exchange of  shares, merger, consolidation or other distribution (other than normal cash dividends) of Company  assets to stockholders, or any other change affecting the Shares or the price of the Shares other than  an Equity Restructuring, the Committee shall make such adjustments, if any, as the Committee in its  discretion may deem appropriate to reflect such change with respect to (i) the aggregate number and  kind of shares that may be issued under the Plan (including, but not limited to, adjustments of the  limitations in Sections 3.1 and 3.3 hereof); (ii) the terms and conditions of any outstanding Awards                                         15                                         

 

                                                                                                                                                        Annex A                   (including, without limitation, any applicable performance targets or criteria with respect thereto);  and (iii) the grant or exercise price per Share for any outstanding Awards under the Plan.               (b) In the event of any transaction or event described in Section 10.1(a) hereof or  any unusual or nonrecurring transactions or events affecting the Company, any affiliate of the  Company, or the financial statements of the Company or any affiliate, or of changes in applicable  laws, regulations or accounting principles, the Committee, in its sole and absolute discretion, and on  such terms and conditions as it deems appropriate, either by the terms of the Award or by action  taken prior to the occurrence of such transaction or event and either automatically or upon the  Participant’s request, is hereby authorized to take any one or more of the following actions whenever  the Committee determines that such action is appropriate in order to prevent dilution or enlargement  of the benefits or potential benefits intended to be made available under the Plan or with respect to  any Award under the Plan, to facilitate such transactions or events or to give effect to such changes in  laws, regulations or principles:                     (i) To provide for either (A) termination of any such Award in exchange for  an amount of cash, if any, equal to the amount that would have been attained upon the exercise of  such Award or realization of the Participant’s rights (and, for the avoidance of doubt, if as of the date  of the occurrence of the transaction or event described in this Section 10.1 the Committee determines  in  good  faith  that  no  amount  would  have  been  attained  upon  the  exercise  of  such Award  or  realization of the Participant’s rights, then such Award may be terminated by the Company without  payment)  or  (B)  the  replacement  of  such Award  with  other  rights  or  property  selected  by  the  Committee in its sole discretion;                     (ii) To provide that such Award be assumed by the successor or survivor  corporation, or a parent or subsidiary thereof, or shall be substituted for by similar options, rights or  awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof,  with appropriate adjustments as to the number and kind of shares and prices;                      (iii) To  make  adjustments  in  the  number  and  type  of  Shares  (or  other  securities or property) subject to outstanding Awards, and in the number and kind of outstanding  Restricted Stock and/or in the terms and conditions of (including the grant or exercise price), and the  criteria included in outstanding options, rights and awards and options, rights and awards which may  be granted in the future;                     (iv) To provide that such Award shall be exercisable or payable or fully  vested with respect to all Shares covered thereby, notwithstanding anything to the contrary in the  Plan or the applicable Award Agreement; and                     (v) To provide that the Award cannot vest, be exercised or become payable  after such event.               (c) In  connection  with  the  occurrence  of  any  Equity  Restructuring,  and  notwithstanding anything to the contrary in Sections 10.1(a) and 10.1(b) hereof:                                         16                                         

 

                                                                                                                                                        Annex A                                     (i) The number and type of securities subject to each outstanding Award and  the exercise price or grant price thereof, if applicable, shall be equitably adjusted.  The adjustments  provided under this Section 10.1(c)(i) shall be nondiscretionary and shall be final and binding on the  affected Participant and the Company.                     (ii) The Committee shall make such equitable adjustments, if any, as the  Committee in its discretion may deem appropriate to reflect such Equity Restructuring with respect  to the aggregate number and kind of shares that may be issued under the Plan (including, but not  limited to, adjustments of the limitations in Sections 3.1 and 3.3 hereof).       10.2  Acceleration Upon a Change in Control and for Other Reasons.               (a) Notwithstanding Section 10.1 hereof, and except as may otherwise be provided  in any applicable Award Agreement or other written agreement entered into between the Company  and a Participant, if a Change in Control occurs and a Participant’s Awards are not converted,  assumed, or replaced by a successor entity, then immediately prior to the Change in Control such  Awards shall become fully exercisable and all forfeiture restrictions on such Awards shall lapse.   Upon, or in anticipation of, a Change in Control, the Committee may cause any and all Awards  outstanding hereunder to terminate at a specific time in the future, including, but not limited to, the  date of such Change in Control, and shall give each Participant the right to exercise or accelerate  such Awards during a period of time as the Committee, in its sole and absolute discretion, shall  determine.                 (b) Regardless of whether an event has occurred as described in Section 10.2(a)  above, and subject to Article 6 and Article 8 as to Performance-Based Awards, the Committee may in  its sole discretion at any time determine that, upon the termination of employment or service of a  Participant for any  reason, or the occurrence of  a Change of Control,  all or a portion  of such  Participant’s Options or SARs shall become fully or partially exercisable, that all or a part of the  restrictions on all or a portion of the Participant’s outstanding Awards shall lapse, and/or that any  Performance Criteria with respect to any Awards held by that Participant shall be deemed to be  wholly  or  partially  satisfied,  in  each  case,  as  of  such  date  as  the  Committee  may,  in  its  sole  discretion, declare.                (c) The Committee may discriminate among Participants and among Awards made  to a Participant in exercising its discretion pursuant to this Section 10.2.  In the event that the terms  of any agreement between the Company or any Affiliate and a Participant contains provisions that  conflict with and are more restrictive than the provisions of this Section 10.2, this Section 10.2 shall  prevail and control and the more restrictive terms of such agreement (and only such terms) shall be  of no force or effect.       10.3  No Other Rights.  Except as expressly provided in the Plan, no Participant shall have  any rights by reason of any subdivision or consolidation of Shares of any class, the payment of any  dividend,  any  increase  or  decrease  in  the  number  of  Shares  of  any  class  or  any  dissolution,  liquidation, merger, or consolidation of the Company or any other corporation.  Except as expressly  provided in the Plan or pursuant to action of the Committee under the Plan, no issuance by the  Company of Shares of any class, or securities convertible into Shares of any class, shall affect, and                                        17                                         

 

                                                                                                                                                        Annex A   no adjustment by reason thereof shall be made with respect to, the number of Shares subject to an  Award or the grant or exercise price of any Award.       ARTICLE 11.             ADMINISTRATION       11.1  Committee.  Unless and until the Board delegates administration of the Plan to a  Committee as set forth below, the Plan shall be administered by the full Board, and for such purposes  the term “Committee” as used in this Plan shall be deemed to refer to the Board.  The Board, at its  discretion or as otherwise necessary to comply with the requirements of Rule 16b-3 promulgated  under the Exchange Act or to the extent required by any other applicable rule or regulation, may  delegate administration of the Plan to a Committee consisting of two or more members of the Board.   Unless  otherwise  determined  by  the  Board,  the  Committee  shall  consist  of  at  least  one  Non- Employee Director and one “independent director” under the rules of Nasdaq (or other principal  securities market on which Shares are traded); provided that any action taken by the Committee shall  be valid and effective, whether or not members of the Committee at the time of such action are later  determined not to have satisfied the requirements for membership set forth in this Section 11.1 or  otherwise provided in any charter of the Committee.  Notwithstanding the foregoing: (a) the full  Board, acting by a majority of its members in office, shall conduct the general administration of the  Plan with respect to all Awards granted to Independent Directors and for purposes of such Awards  the  term “Committee” as  used  in  this  Plan  shall  be  deemed  to  refer  to  the  Board  and  (b)  the  Committee may delegate its authority hereunder to the extent permitted by Section 11.5 hereof.  In  its sole discretion, the Board may at any time and from time to time exercise any and all rights and  duties of the Committee under the Plan except with respect to matters which under Rule 16b-3 under  the Exchange Act, or any regulations or rules issued thereunder, are required to be determined in the  sole  discretion  of  the  Committee.   Except  as  may  otherwise  be  provided  in  the  certificate  of  incorporation  or  bylaws  of  the  Company  or  in  any  charter  of  the  Committee,  appointment  of  Committee members shall be effective upon acceptance of appointment; Committee members may  resign at any time by delivering written notice to the Board; and vacancies in the Committee may  only be filled by the Board.       11.2  Action  by  the  Committee.   Unless  otherwise  established  by  the  Board  or  in  the  certificate of incorporation or bylaws of the Company or in any charter of the Committee, a majority  of the Committee shall constitute a quorum and the acts of a majority of the members present at any  meeting at which a quorum is present, and acts approved in writing by a majority of the Committee  in lieu of a meeting, shall be deemed the acts of the Committee.  Each member of the Committee is  entitled to, in good faith, rely or act upon any report or other information furnished to that member  by any officer or other employee of the Company or any Affiliate, the Company’s independent  certified public accountants, or any executive compensation consultant or other professional retained  by the Company to assist in the administration of the Plan.       11.3  Authority  of  Committee.   Subject  to  any  specific  designation  in  the  Plan,  the  Committee has the exclusive power, authority and discretion to:             (a)   Designate Participants to receive Awards;             (b)   Determine the type or types of Awards to be granted to each Participant;                                         18                                         

 

                                                                                                                                                            Annex A                    (c) Determine the number of Awards to be granted and the number of Shares to    which an Award will relate;                 (d) Determine the terms and conditions of any Award granted pursuant to the Plan,    including, but not limited to, the exercise price, grant price, or purchase price, any reload provision,    any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions or    restrictions on the exercisability of an Award, and accelerations or waivers thereof, any provisions    related  to  non-competition  and  recapture  of  gain  on  an  Award,  based  in  each  case  on  such    considerations as the Committee in its sole discretion determines;                 (e) Determine whether, to what extent, and pursuant to what circumstances an    Award may be settled in, or the exercise price of an Award may be paid in, cash, Shares, other    Awards, or other property, or an Award may be canceled, forfeited, or surrendered;                 (f) Prescribe the form of each Award Agreement, which need not be identical for    each Participant;               (g)   Decide all other matters that must be determined in connection with an  Award;                 (h) Establish, adopt, or revise any rules and regulations as it may deem necessary or    advisable to administer the Plan;                  (i) Determine conclusively whether a Change in Control of the Company has    occurred pursuant to the definition in Section 2.5, and the date of the occurrence of such Change in    Control and any incidental matters relating thereto;                 (j) Interpret the terms of, and any matter arising pursuant to, the Plan or any Award    Agreement; and                 (k) Make all other decisions and determinations that may be required pursuant to    the Plan or as the Committee deems necessary or advisable to administer the Plan.         11.4  Decisions Binding.  The Committee’s interpretation of the Plan, any Awards granted    pursuant to the Plan, any Award Agreement and all decisions and determinations by the Committee    with respect to the Plan are final, binding, and conclusive on all parties.         11.5  Delegation of Authority.  To the extent permitted by applicable law, the Board may    from time to time delegate to a committee of one or more members of the Board or one or more    officers of the Company the authority to  grant or amend Awards to Participants other than (a)    Employees who are subject to Section 16 of the Exchange Act or (b) officers of the Company (or    Directors) to whom authority to grant or amend Awards has been delegated hereunder.  For the    avoidance of doubt, provided it meets the limitation in the preceding sentence, this delegation shall    include the right to modify Awards as necessary to accommodate changes in the laws or regulations,    including in jurisdictions outside the United States.  Any delegation hereunder shall be subject to the    restrictions and limits that the Board specifies at the time of such delegation, and the Board may                                          19                                           

 

                                                                                                                                                            Annex A        at any time rescind the authority so delegated or appoint a new delegatee.  At all times, the delegatee    appointed under this Section 11.5 shall serve in such capacity at the pleasure of the Board.         ARTICLE 12.       EFFECTIVE AND EXPIRATION DATE         12.1  Effective Date.  The Plan is effective as of December 28, 2019.         12.2  Expiration Date.  The Plan will expire on, and no Award may be granted pursuant to the    Plan after December 28, 2029, except that no Incentive Stock Options may be granted under the Plan    after the earlier of the tenth anniversary of (a) the date the Plan is approved by the Board or (b) the    Effective Date.  Any Awards that are outstanding on the tenth anniversary of the Effective Date shall    remain in force according to the terms of the Plan and the applicable Award Agreement.   ARTICLE 13.       AMENDMENT, MODIFICATION, AND TERMINATION         13.1  Amendment, Modification, and Termination.  Subject to Section 14.14 hereof, with the    approval of the Board, at any time and from time to time, the Committee may terminate, amend or    modify the Plan; provided, however, that (a) to the extent necessary and desirable to comply with    any  applicable  law,  regulation,  or  stock  exchange  rule,  the  Company  shall  obtain  stockholder    approval  of  any Plan  amendment  in  such a manner  and to  such  a degree  as  required, and (b)    stockholder approval shall be required for any amendment to the Plan that (i) increases the number    of shares available under the Plan (other than any adjustment as provided by Article 10), or (ii)    permits the Committee to extend the exercise period for an Option beyond ten years from the date of    grant.         13.2  Awards Previously Granted.  Except with respect to amendments made  pursuant to    Section 14.14 hereof, no termination, amendment, or modification of the Plan shall adversely affect    in any material way any Award previously granted pursuant to the Plan without the prior written    consent of the Participant; provided, however, that an amendment or modification that may cause an    Incentive Stock Option to become a Non-Qualified Stock Option shall not be treated as adversely    affecting the rights of the Participant.         ARTICLE 14.       GENERAL PROVISIONS         14.1  No Rights to Awards.  No Eligible Individual or other person shall have any claim to be    granted any Award pursuant to the Plan, and neither the Company nor the Committee is obligated to    treat Eligible Individuals, Participants or any other persons uniformly.         14.2  No Stockholders Rights.  Except as otherwise provided herein, a Participant shall have    none of the rights of a stockholder with respect to Shares covered by any Award, including the right    to  vote  or  receive  dividends,  until  the  Participant  becomes  the  record  owner  of  such  Shares,    notwithstanding the exercise of an Option or other Award.         14.3  Withholding.  The Company or any Affiliate, as appropriate, shall have the authority    and the right to deduct or withhold, or require a Participant to remit to the Company, an amount    sufficient to satisfy U.S. federal, state, and local taxes and taxes imposed by jurisdictions outside                                          20                                           

 

                                                                                                                                                        Annex A      of the United States (including the Participant’s employment tax obligations) required by law to be  withheld with respect to any taxable event concerning a Participant arising as a result of this Plan or  to take such other action as may be necessary in the opinion of the Company or an Affiliate, as  appropriate, to satisfy withholding obligations for the payment of taxes.  The Committee may in its  discretion and in satisfaction of the foregoing requirement allow a Participant to elect to have the  Company withhold Shares otherwise issuable under an Award (or allow the return of Shares) having  a Fair Market Value equal to the sums required to be withheld.  Notwithstanding any other provision  of the Plan, the number of Shares which may be withheld with respect to the issuance, vesting,  exercise or payment of any Award (or which may be repurchased from the Participant of such Award  within six months (or such other period as may be determined by the Committee) after such Shares  were acquired by the Participant from the Company) in order to satisfy the Participant’s U.S. federal,  state, local and non-U.S. income and payroll tax liabilities with respect to the issuance, vesting,  exercise or payment of the Award shall be limited to the number of Shares which have a Fair Market  Value on the date of withholding or repurchase equal to the aggregate amount of such liabilities  based on the minimum statutory withholding rates for federal, state, local and foreign income tax and  payroll tax purposes that are applicable to such supplemental taxable income.  No Shares shall be  delivered hereunder to any Participant or other person until the Participant or such other person has  made arrangements acceptable to the Committee for the satisfaction of the tax obligations with  respect to any taxable event concerning the Participant or such other person arising as a result of this  Plan.       14.4  No Right to Employment or Services.  Nothing in the Plan or any Award Agreement  shall interfere with or limit in any way the right of the Company or any Affiliate to terminate any  Participant’s employment or services at any time, nor confer upon any Participant any right to  continue in the employ or service of the Company or any Affiliate.       14.5  Unfunded  Status  of Awards.  The  Plan  is  intended  to  be  an “unfunded” plan  for  incentive compensation.  With respect to any payments not yet made to a Participant pursuant to an  Award, nothing contained in the Plan or any Award Agreement shall give the Participant any rights  that are greater than those of a general creditor of the Company or any Affiliate.       14.6  Indemnification.  To the extent allowable pursuant to applicable law, each member of  the Committee or of the Board shall be indemnified and held harmless by the Company from any  loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member in  connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a  party or in which he or she may be involved by reason of any action or failure to act pursuant to the  Plan and against and from any and all amounts paid by him or her in satisfaction of judgment in such  action, suit, or proceeding against him or her; provided he or she gives the Company an opportunity,  at its own expense, to handle and defend the same before he or she undertakes to handle and defend  it on his or her own behalf.  The foregoing right of indemnification shall not be exclusive of any  other rights of indemnification to which such persons may be entitled pursuant to the Company’s  Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the  Company may have to indemnify them or hold them harmless.                                            21                                         

 

                                                                                                                                                        Annex A          14.7  Relationship to other Benefits.  No payment pursuant to the Plan shall be taken into  account in determining any benefits pursuant to any pension, retirement, savings, profit sharing,  group insurance, welfare or other benefit plan of the Company or any Affiliate except to the extent  otherwise expressly provided in writing in such other plan or an agreement thereunder.       14.8  Expenses.  The expenses of administering the Plan shall be borne by the Company and  its Affiliates.       14.9  Titles  and  Headings.  The  titles  and  headings  of  the  Sections  in  the  Plan  are  for  convenience of reference only and, in the event of any conflict, the text of the Plan, rather than such  titles or headings, shall control.       14.10 Fractional  Shares.   No  fractional  Shares  shall  be  issued  and  the  Committee  shall  determine, in its discretion, whether cash shall be given in lieu of fractional shares or whether such  fractional shares shall be eliminated by rounding up or down as appropriate.       14.11 Limitations Applicable to Section 16 Persons.  Notwithstanding any other provision of  the Plan, the Plan, and any Award granted or awarded to any Participant who is then subject to  Section 16 of the Exchange Act, shall be subject to any additional limitations set forth in any  applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule  16b-3 under the Exchange Act) that are requirements for the application of such exemptive rule.  To  the extent permitted by applicable law, the Plan and Awards granted or awarded hereunder shall be  deemed amended to the extent necessary to conform to such applicable exemptive rule.       14.12 Government and Other Regulations.  The obligation of the Company to make payment  of awards in Shares or otherwise shall be subject to all applicable laws, rules, and regulations of the  United States and jurisdictions outside the United States, and to such approvals by government  agencies, including government agencies in jurisdictions outside of the United States, in each case as  may be required or as the Company deems necessary or advisable.  Without limiting the foregoing,  the Company shall have no obligation to issue or deliver evidence of title for Shares subject to  Awards granted hereunder prior to: (i) obtaining any approvals from governmental agencies that the  Company determines are necessary or advisable, and (ii) completion of any registration or other  qualification  with  respect  to  the  Shares  under  any  applicable  law  in  the  United  States  of  in  a  jurisdiction outside of the United States or ruling of any governmental body that the Company  determines to be necessary or advisable or at a time when any such registration or qualification is not  current, has been suspended or otherwise has ceased to be effective.  The inability or impracticability  of the Company to obtain or maintain authority from any regulatory body having jurisdiction, which  authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any  Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell  such Shares as to which such requisite authority shall not have been obtained.  The Company shall  be under no obligation to register pursuant to the Securities Act, as amended, any of the Shares paid  pursuant to the Plan.  If the Shares paid pursuant to the Plan may in certain circumstances be exempt  from registration pursuant to the Securities Act, as amended, the Company may restrict the transfer  of  such  Shares  in  such  manner  as  it  deems  advisable  to  ensure  the  availability  of  any  such  exemption.                                         22                                         

 

                                                                                                                                                            Annex A              14.13 Governing Law.  The Plan and all Award Agreements, and all controversies arising  thereunder or related thereto, shall be construed in accordance with and governed by the laws of the  State of Delaware without regard to principles of conflict of laws that would apply to any other law.         14.14 Section 409A.  Except as provided in Section 14.15 hereof, to the extent that the  Committee determines that any Award granted under the Plan is subject to Section 409A of the Code,  the Award Agreement evidencing such Award shall incorporate the terms and conditions required by  Section  409A  of  the  Code.   To  the  extent  applicable,  the  Plan  and Award Agreements  shall  be  interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and  other interpretive guidance issued thereunder, including, without limitation, any such regulations or  other guidance that may be issued after the Effective Date.  Notwithstanding any provision of the Plan  to the contrary, in the event that following the Effective Date the Committee determines that any  Award may be subject to Section 409A of the Code and related Department of Treasury guidance  (including such Department of Treasury guidance as may be issued after the Effective Date), the  Committee may adopt such amendments to the Plan and the applicable Award Agreement or adopt  other policies and procedures (including amendments, policies and procedures with retroactive effect),  or take any other actions, that the Committee determines are necessary or appropriate to (a) exempt the  Award from Section 409A of the Code and/or preserve the intended tax treatment of the benefits  provided with respect to the Award, or (b) comply with the requirements of Section 409A of the Code  and related Department of Treasury guidance and thereby avoid the application of any penalty taxes  under such Section.         14.15 No Representations or Covenants with respect to Tax Qualification.  Although the  Company may endeavor to (1) qualify an Award for favorable tax treatment under the laws of the  United States or jurisdictions outside of the United States (e.g., incentive stock options under Section  422 of the Code or French-qualified stock options) or (2) avoid adverse tax treatment (e.g., under  Section  409A  of  the  Code),  the  Company  makes  no  representation  to  that  effect  and  expressly  disavows any covenant to maintain favorable or avoid unfavorable tax treatment, anything to the  contrary  in  this  Plan,  including  Section  14.14  hereof,  notwithstanding.   The  Company  shall  be  unconstrained in its corporate activities without regard to the potential negative tax impact on holders  of Awards under the Plan.         14.16 Applicable Policies Notwithstanding any other provision of the Plan or an Award  agreement to the contrary, acceptance by any Participant of any Award granted pursuant to the Plan  constitutes such Participant’s acknowledgement and agreement that all Awards made pursuant to the  Plan shall be subject to (a) Section 304 of the Sarbanes Oxley Act of 2002, (b) any rules and/or  regulations issued pursuant to the Dodd-Frank Act of 2010 or any clawback policy adopted by the  Company pursuant to such rules and/or regulations and (c) the insider trading policy of the Company.                                                                                     23Exhibit 10.3

    

    

    

    
      
        
          
            
              
                
                  CHEMBIO DIAGNOSTICS, INC.

                  2019 OMNIBUS INCENTIVE PLAN

                  Chembio Diagnostics, Inc., a Nevada corporation, sets forth herein the terms of its 2019 Omnibus Incentive
                      Plan, as follows:

                  
                    
                      	1.	
                              PURPOSE

                            

                    

                  

                  The Plan is intended to enhance the Company’s and its Affiliates’ (as defined herein) ability to attract
                      and retain highly qualified officers, Non-Employee Directors (as defined herein), key employees, consultants and advisors, and to motivate such officers, Non-Employee Directors, key employees, consultants and advisors to serve the
                      Company and its Affiliates and to expend maximum effort to improve the business results and earnings of the Company, by providing to such persons an opportunity to acquire or increase a direct proprietary interest in the operations
                      and future success of the Company.  To this end, the Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, other stock-based awards and cash awards. Any
                      of these awards may, but need not, be made as performance incentives to reward attainment of performance goals in accordance with the terms hereof. Stock options granted under the Plan may be non-qualified stock options or incentive
                      stock options, as provided herein.  Upon becoming effective, the Plan replaces, and no further awards shall be made under, the Predecessor Plan (as defined herein).

                  
                    
                      	2.	
                              DEFINITIONS

                            

                    

                  

                  For purposes of interpreting the Plan and related documents (including Award Agreements), the following
                      definitions shall apply:

                  2.1      “Affiliate” means any company or other trade or business that “controls,” is “controlled by” or is “under common control” with the Company within the meaning of Rule 405 of Regulation C under the Securities Act,
                        including, without limitation, any Subsidiary.

                  2.2      “Award” means a grant of an Option, Stock Appreciation Right,
                        Restricted Stock, Restricted Stock Unit, or Other Stock-based Award under the Plan.

                  2.3      “Award Agreement” means a written agreement between the Company and a
                        Grantee, or notice from the Company or an Affiliate to a Grantee that evidences and sets forth the terms and conditions of an Award.

                  2.4      “Beneficial Owner” means “Beneficial Owner” as defined in Rule 13d-3
                        and Rule 13d-5 under the Exchange Act; except that, in calculating the beneficial ownership of any particular Person, such Person shall be deemed to have beneficial ownership of all securities that such Person has the right to
                        acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time. The term “Beneficial Ownership” has a corresponding meaning.

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

                  2.6      “Change in Control” shall have the meaning set forth in Section 14.3.2.

                  2.7      “Code” means the Internal Revenue Code of 1986, as now in effect or as
                        hereafter amended. References to the Code shall include the valid and binding governmental regulations, court decisions and other regulatory and judicial authority issued or rendered thereunder.

                  2.8      “Committee” means the Compensation Committee of the Board or any
                        committee or other person or persons designated by the Board to administer the Plan.  The Board will cause the Committee to satisfy the applicable requirements of any stock exchange on which the Common Stock may then be listed.  For
                        purposes of Awards to Grantees who are subject to Section 16 of the Exchange Act, Committee means all of the members of the Committee who are “non-employee directors” within the meaning of Rule 16b-3 adopted under the Exchange Act. 
                        All references in the Plan to the Board shall mean such Committee or the Board.

                   

                      

                  
                    A-1

                    
                      

                  

                  2.9      “Company” means Chembio Diagnostics, Inc., a Nevada corporation, or
                        any successor corporation.

                  2.10     “Common Stock” or “Stock” means a share of common stock of the Company, par value $2.00 per share.

                  2.11    “Corporate Transaction” means a reorganization, merger, statutory
                        share exchange, consolidation, sale of all or substantially all of the Company’s assets, or the acquisition of assets or stock of another entity by the Company, or other corporate transaction involving the Company or any of its
                        Subsidiaries.

                  2.12     “Effective Date” means June 18, 2019, the date the Plan was approved
                        by the Company’s stockholders.

                  2.13    “Exchange Act” means the Securities Exchange Act of 1934, as now in
                        effect or as hereafter amended.

                  2.14   “Fair Market Value” of a share of Common Stock as of a particular date
                        means (i) if the Common Stock is listed on a national securities exchange, the closing or last price of the Common Stock on the composite tape or other comparable reporting system for the applicable date, or if the applicable date
                        is not a trading day, the trading day immediately preceding the applicable date, or (ii) if the shares of Common Stock are not then listed on a national securi-ties ex-change, the closing or last price of the Common Stock quoted by
                        an established quotation service for over-the-counter securities, or (iii) if the shares of Common Stock are not then listed on a national securi-ties ex-change or quoted by an established quotation service for over-the-counter
                        securities, -or the value of such shares is not oth-er-wise determi-nable, such value as de-ter-mined by the Board in good faith in its sole discretion.

                  2.15   “Family Member” means a person who is a spouse, former spouse, child,
                        stepchild, grandchild, parent, stepparent, grandparent, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother, sister, brother-in-law, or sister-in-law, including adoptive relationships, of the applicable
                        individual, any person sharing the applicable individual’s household (other than a tenant or employee), a trust in which any one or more of these persons have more than fifty percent of the beneficial interest, a foundation in which
                        any one or more of these persons (or the applicable individual) control the management of assets, and any other entity in which one or more of these persons (or the applicable individual) own more than fifty percent of the voting
                        interests.

                  2.16  “Grant Date” means, as determined by the Board, the latest to occur
                        of (i) the date as of which the Board approves an Award, (ii) the date on which the recipient of an Award first becomes eligible to receive an Award under Section 6 hereof, or (iii) such other date as may be specified by the Board in the Award Agreement.

                  2.17    “Grantee” means a person who receives or holds an Award under the
                        Plan.

                  2.18    “Incentive Stock Option” means an “incentive stock option” within the
                        meaning of Section 422 of the Code, or the corresponding provision of any subsequently enacted tax statute, as amended from time to time.

                  2.19    “Non-Employee Director” means a member of the Board who is not an
                        officer or employee of the Company or any Subsidiary.

                  2.20    “Non-qualified Stock Option” means an Option that is not an Incentive
                        Stock Option.

                  2.21    “Option” means an option to purchase one or more shares of Stock
                        pursuant to the Plan.

                   

                      

                  
                    A-2

                    
                      

                  

                  2.22     “Option Price” means the exercise price for each share of Stock
                        subject to an Option.

                  2.23    “Other Stock-based Awards” means Awards consisting of Stock units, or
                        other Awards, valued in whole or in part by reference to, or otherwise based on, Common Stock, other than Options, Stock Appreciation Rights, Restricted Stock, and Restricted Stock Units.

                  2.24    “Person” means an individual, entity or group within the meaning of
                        Section 13(d)(3) or 14(d)(2) of the Exchange Act.

                  2.25    “Plan” means this Chembio Diagnostics, Inc. 2019 Omnibus Incentive
                        Plan, as amended from time to time.

                  2.26    “Predecessor Plan” means the Chembio Diagnostics, Inc. 2014 Stock
                        Incentive Plan.

                  2.27    “Purchase Price” means the purchase price for each share of Stock
                        pursuant to a grant of Restricted Stock.

                  2.28    “Restricted Period” shall have the meaning set forth in Section 10.1 hereof.

                  2.29    “Restricted Stock” means shares of Stock, awarded to a Grantee
                        pursuant to Section 10 hereof.

                  2.30    “Restricted Stock Unit” means a bookkeeping entry representing the
                        equivalent of shares of Stock, awarded to a Grantee pursuant to Section 10 hereof.

                  2.31    “SAR Exercise Price” means the per share exercise price of a SAR
                        granted to a Grantee under Section 9 hereof.

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

                  2.33    “Section 409A” means Section 409A of the Code.

                  2.34    “Securities Act” means the Securities Act of 1933, as now in effect or
                        as hereafter amended.

                  2.35    “Separation from Service” means a termination of Service by a Service
                        Provider, as determined by the Board, which determination shall be final, binding and conclusive; provided if any Award governed by Section 409A is to be distributed on a Separation from Service, then the definition of Separation
                        from Service for such purposes shall comply with the definition provided in Section 409A.

                  2.36   “Service” means service as a Service Provider to the Company or an
                        Affiliate. Unless otherwise stated in the applicable Award Agreement, a Grantee’s change in position or duties shall not result in interrupted or terminated Service, so long as such Grantee continues to be a Service Provider to the
                        Company or an Affiliate.

                  2.37     “Service Provider” means an employee, officer, Non-Employee Director,
                        consultant or advisor of the Company or an Affiliate.

                  2.38    “Stock Appreciation Right” or “SAR” means a right granted to a Grantee
                        under Section 9 hereof.

                  2.39    “Subsidiary” means any “subsidiary corporation” of the Company within
                        the meaning of Section 424(f) of the Code.

                  2.40   “Substitute Award” means any Award granted in assumption of or in
                        substitution for an award of a company or business acquired by the Company or a Subsidiary or with which the Company or an Affiliate combines.

                   

                      

                  
                    A-3

                    
                      

                  

                  2.41   “Ten Percent Stockholder” means an individual who owns more than ten
                        percent (10%) of the total combined voting power of all classes of outstanding stock of the Company, its parent or any of its Subsidiaries. In determining stock ownership, the attribution rules of Section 424(d) of the Code shall be
                        applied.

                  2.42    “Termination Date” means the date that is ten (10) years after the
                        Effective Date, unless the Plan is earlier terminated by the Board under Section 5.2 hereof.

                  
                    
                      	3.	
                              ADMINISTRATION OF THE PLAN

                            

                    

                  

                  3.1      
                    General.

                  The Board shall have such powers and authorities related to the administration of the Plan as are
                      consistent with the Company’s certificate of incorporation and bylaws and applicable law. The Board shall have the power and authority to delegate its responsibilities hereunder to the Committee, which shall have full authority to act
                      in accordance with its charter, and with respect to the authority of the Board to act hereunder, all references to the Board shall be deemed to include a reference to the Committee, to the extent such power or responsibilities have
                      been delegated.  Except as otherwise may be required by applicable law, regulatory requirement or the certificate of incorporation or the bylaws of the Company, the Board shall have full power and authority to take all actions and to
                      make all determinations required or provided for under the Plan, any Award or any Award Agreement, and shall have full power and authority to take all such other actions and make all such other determinations not inconsistent with the
                      specific terms and provisions of the Plan that the Board deems to be necessary or appropriate to the administration of the Plan.  The Committee shall administer the Plan; provided that, the Board shall retain the right to exercise the
                      authority of the Committee to the extent consistent with applicable law and the applicable requirements of any securities exchange on which the Common Stock may then be listed.  The interpretation and construction by the Board of any
                      provision of the Plan, any Award or any Award Agreement shall be final, binding and conclusive. Without limitation, the Board shall have full and final authority, subject to the other terms and conditions of the Plan, to:

                  (i)    designate Grantees;

                  (ii)   determine the type or types of Awards to be made to a Grantee;

                  (iii)  determine the number of shares of Stock to be subject to an Award;

                  (iv)  establish the terms and conditions of each Award (including, but not limited to, the Option Price of
                      any Option, the nature and duration of any restriction or condition (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of an Award or the shares of Stock subject thereto, and any terms or
                      conditions that may be necessary to qualify Options as Incentive Stock Options);

                  (v)   prescribe the form of each Award Agreement; and

                  (vi)  amend, modify, or supplement the terms of any outstanding Award including the authority, in order to
                      effectuate the purposes of the Plan, to modify Awards to foreign nationals or individuals who are employed outside the United States to recognize differences in local law, tax policy, or custom.

                  To the extent permitted by applicable law, the Board may delegate its authority as identified herein to any individual or
                      committee of individuals (who need not be directors), including without limitation the authority to make Awards to Grantees who are not subject to Section 16 of the Exchange Act or who are not Covered Employees.  To the extent that
                      the Board delegates its authority to make Awards as provided by this Section 3.1, all references in the Plan to the Board’s authority to make Awards and determinations with respect thereto
                      shall be deemed to include the Board’s delegate.  Any such delegate shall serve at the pleasure of, and may be removed at any time by the Board.

                   

                    

                  
                    A-4

                    
                      

                  

                  3.2      
                    No Repricing.

                  Notwithstanding any provision herein to the contrary, the repricing of Options or SARs is prohibited
                      without prior approval of the Company’s stockholders.  For this purpose, a “repricing” means any of the following (or any other action that has the same effect as any of the following): (i) changing the terms of an Option or SAR to
                      lower its Option Price or SAR Exercise Price; (ii) any other action that is treated as a “repricing” under generally accepted accounting principles; and (iii) repurchasing for cash or canceling an Option or SAR at a time when its
                      Option Price or SAR Exercise Price is greater than the Fair Market Value of the underlying shares in exchange for another Award, unless the cancellation and exchange occurs in connection with a change in capitalization or similar
                      change under Section 14.  A cancellation and exchange under clause (iii) would be considered a “repricing” regardless of whether it is treated as a “repricing” under generally accepted
                      accounting principles and regardless of whether it is voluntary on the part of the Grantee.

                  3.3        Clawbacks.

                  Awards shall be subject to the requirements of (i) Section 954 of the Dodd-Frank Wall Street Reform and
                      Consumer Protection Act (regarding recovery of erroneously awarded compensation) and any implementing rules and regulations thereunder, (ii) similar rules under the laws of any other jurisdiction, (iii) any compensation recovery
                      policies adopted by the Company to implement any such requirements or (iv) any other compensation recovery policies as may be adopted from time to time by the Company, all to the extent determined by the Committee in its discretion to
                      be applicable to a Grantee.

                  3.4      
                    Minimum Vesting Conditions.

                  Notwithstanding any other provision of the Plan to the contrary, equity-based Awards granted under the
                      Plan shall vest no earlier than the first anniversary of the date the Award is granted, excluding, for this purpose, any (i) Substitute Awards, (ii) shares delivered in lieu of fully vested cash incentive compensation under any
                      applicable plan or program of the Company, and (iii) Awards to Non-Employee Directors that vest on the earlier of the one-year anniversary of the date of grant or the next annual meeting of stockholders (provided that such vesting
                      period under this clause (iii) may not be less than 50 weeks after grant); provided, that, the Board may grant equity-based Awards without regard to the foregoing minimum vesting requirement with respect to a maximum of five percent
                      (5%) of the available share reserve authorized for issuance under the Plan pursuant to Section 4.1 (subject to adjustment under Section 14); and,
                      provided further, for the avoidance of doubt, that the foregoing restriction does not apply to the Board’s discretion to provide for accelerated exercisability or vesting of any Award, including in cases of retirement, death,
                      disability or a Change in Control, in the terms of the Award or otherwise.

                  3.5      
                    Deferral Arrangement.

                  The Board may permit or require the deferral of any Award payment into a deferred compensation
                      arrangement, subject to such rules and procedures as it may establish and in accordance with Section 409A, which may include provisions for the payment or crediting of interest or dividend equivalents, including converting such
                      credits into deferred Stock units.

                  3.6      
                    No Liability.

                  No member of the Board or of the Committee shall be liable for any action or determination made in good
                      faith with respect to the Plan, any Award or Award Agreement.

                  3.7      
                    Book Entry.

                  Notwithstanding any other provision of this Plan to the contrary, the Company may elect to satisfy any requirement under this
                      Plan for the delivery of stock certificates through the use of book-entry.

                   

                    

                  
                    A-5

                    
                      

                  

                  
                    
                      	4.	
                              STOCK SUBJECT TO THE PLAN

                            

                    

                  

                  4.1      
                    Authorized Number of Shares

                  
                    Subject to adjustment under Section 14, the total number
                      of shares of Common Stock authorized to be awarded under the Plan shall not exceed 2,400,000.  In addition, shares of Common Stock underlying any outstanding award granted under the Predecessor Plan that, following the Effective Date,
                      expires, or is terminated, surrendered or forfeited for any reason without issuance of such shares shall be available for the grant of new Awards under this Plan.  As provided in Section 1, no
                      new awards shall be granted under the Predecessor Plan following the Effective Date.  Shares issued under the Plan may consist in whole or in part of authorized but unissued shares, treasury shares, or shares purchased on the open
                      market or otherwise, all as determined by the Company from time to time.

                  

                  4.2      
                    Share Counting

                  4.2.1              General

                  Each share of Common Stock granted in connection with an Award shall be counted as one share against the
                      limit in Section 4.1, subject to the provisions of this Section 4.2.

                  4.2.2              Cash-Settled Awards

                  Any Award settled in cash shall not be counted as shares of Common Stock for any purpose under this Plan.

                  4.2.3              Expired or Terminated Awards

                  If any Award under the Plan expires, or is terminated, surrendered or forfeited, in whole or in part,
                      without issuance or delivery of vested shares, the unissued or surrendered Common Stock covered by such Award shall again be available for the grant of Awards under the Plan.

                  4.2.4              Payment of Option Price or Tax Withholding in Shares

                  The full number of shares of Common Stock with respect to which an Option or SAR is granted shall count
                      against the aggregate number of shares available for grant under the Plan.  Accordingly, if in accordance with the terms of the Plan, a Grantee pays the Option Price for an Option by either tendering previously owned shares or having
                      the Company withhold shares, then such shares surrendered to pay the Option Price shall continue to count against the aggregate number of shares available for grant under the Plan set forth in Section
                        4.1 above.  In addition, if in accordance with the terms of the Plan, a Grantee satisfies any tax withholding requirement with respect to any taxable event arising as a result of this Plan for any Award (including Restricted
                      Stock and Restricted Stock Units) by either tendering previously owned shares or having the Company withhold shares, then such shares surrendered to satisfy such tax withholding requirements shall continue to count against the
                      aggregate number of shares available for grant under the Plan set forth in Section 4.1 above.  Any shares of Common Stock repurchased by the Company with cash proceeds from the exercise of
                      Options shall not be added back to the pool of shares available for grant under the Plan set forth in Section 4.1 above.

                  4.2.5              Substitute Awards

                  In the case of any Substitute Award, such Substitute Award shall not be counted against the number of shares reserved under the
                      Plan.

                   

                    

                  
                    A-6

                    
                      

                  

                  4.3      
                    Award Limits

                  4.3.1               Incentive Stock Options.

                  
                    Subject to adjustment under Section 14, 2,400,000 shares
                      of Common Stock available for issuance under the Plan shall be available for issuance under Incentive Stock Options.

                  

                  
                    
                      	5.	
                              EFFECTIVE DATE, DURATION, AND AMENDMENTS

                            

                    

                  

                  5.1      
                    Term.

                  The Plan shall be effective as of the Effective Date, provided that it has been approved by the Company’s
                      stockholders.  The Plan shall terminate automatically on the ten (10) year anniversary of the Effective Date and may be terminated on any earlier date as provided in Section 5.2.

                  5.2      
                    Amendment and Termination of the Plan.

                  The Board may, at any time and from time to time, amend, suspend, or terminate the Plan as to any Awards
                      which have not been made. An amendment shall be contingent on approval of the Company’s stockholders to the extent stated by the Board, required by applicable law or required by applicable stock exchange listing requirements. 
                      Notwithstanding the foregoing, any amendment to Section 3.2 shall be contingent upon the approval of the Company’s stockholders.  No Awards shall be made
                      after the Termination Date. The applicable terms of the Plan, and any terms and conditions applicable to Awards granted prior to the Termination Date shall survive the termination of the Plan and continue to apply to such Awards.  No
                      amendment, suspension, or termination of the Plan shall, without the consent of the Grantee, materially impair rights or obligations under any Award theretofore awarded.

                  
                    
                      	6.	
                              AWARD ELIGIBILITY AND LIMITATIONS

                            

                    

                  

                  6.1      
                    Service Providers.

                  Subject to this Section 6.1, Awards may be made to any Service
                      Provider, including any Service Provider who is an officer, Non-Employee Director, consultant or advisor of the Company or of any Affiliate, as the Board shall determine and designate from time to time in its discretion.

                  6.2      
                    Successive Awards.

                  An eligible person may receive more than one Award, subject to such restrictions as are provided herein.

                  6.3      Stand-Alone, Additional, Tandem, and Substitute Awards.

                  Awards may, in the discretion of the Board, be granted either alone or in addition to, in tandem with, or in substitution or
                      exchange for, any other Award or any award granted under another plan of the Company, any Affiliate, or any business entity to be acquired by the Company or an Affiliate, or any other right of a Grantee to receive payment from the
                      Company or any Affiliate. Such additional, tandem, and substitute or exchange Awards may be granted at any time. If an Award is granted in substitution or exchange for another Award, the Board shall have the right to require the
                      surrender of such other Award in consideration for the grant of the new Award. Subject to Section 3.2, the Board shall have the right, in its discretion,
                      to make Awards in substitution or exchange for any other award under another plan of the Company, any Affiliate, or any business entity to be acquired by the Company or an Affiliate. In addition, Awards may be granted in lieu of cash
                      compensation, including in lieu of cash amounts payable under other plans of the Company or any Affiliate, in which the value of Stock subject to the Award is equivalent in value to the cash compensation (for example, Restricted Stock
                      Units or Restricted Stock).

                   

                    

                  
                    A-7

                    
                      

                  

                  
                    
                      	7.	
                              AWARD AGREEMENT

                            

                    

                  

                  Each Award shall be evidenced by an Award Agreement, in such form or forms as the Board shall from time to
                      time determine, consistent with the terms of the Plan.  Without limiting the foregoing, an Award Agreement may be provided in the form of a notice which provides that acceptance of the Award constitutes acceptance of all terms of the
                      Plan and the notice.  Award Agreements granted from time to time or at the same time need not contain similar provisions but shall be consistent with the terms of the Plan.  Each Award Agreement evidencing an Award of Options shall
                      specify whether such Options are intended to be Non-qualified Stock Options or Incentive Stock Options, and in the absence of such specification such options shall be deemed Non-qualified Stock Options.

                  
                    
                      	8.	
                              TERMS AND CONDITIONS OF OPTIONS

                            

                    

                  

                  8.1      
                    Option Price.

                  The Option Price of each Option shall be fixed by the Board and stated in the related Award Agreement. The
                      Option Price of each Option (except those that constitute Substitute Awards) shall be at least the Fair Market Value on the Grant Date of a share of Stock; provided, however, that in the event that a Grantee is a Ten Percent Stockholder as of the Grant Date, the Option Price of an Option granted to such Grantee that is intended to be an Incentive Stock Option shall be not less
                      than 110 percent of the Fair Market Value of a share of Stock on the Grant Date.  In no case shall the Option Price of any Option be less than the par value of a share of Stock.

                  8.2      
                    Vesting.

                  Subject to Section 8.3 hereof,

                      each Option shall become exercisable at such times and under such conditions (including, without limitation, performance requirements) as shall be determined by the Board and stated in the Award Agreement.

                  8.3      
                    Term.

                  Each Option shall terminate, and all rights to purchase shares of Stock thereunder shall cease, upon the
                      expiration of ten (10) years from the Grant Date, or under such circumstances and on such date prior thereto as is set forth in the Plan or as may be
                      fixed by the Board and stated in the related Award Agreement; provided, however, that in the event that the Grantee is a Ten Percent Stockholder, an
                      Option granted to such Grantee that is intended to be an Incentive Stock Option at the Grant Date shall not be exercisable after the expiration of five (5) years from its Grant Date.

                  8.4      
                    Limitations on Exercise of Option.

                  Notwithstanding any other provision of the Plan, in no event may any Option be exercised, in whole or in
                      part, (i) prior to the date the Plan is approved by the stockholders of the Company as provided herein or (ii) after the occurrence of an event which results in termination of the Option.

                  8.5      
                    Method of Exercise.

                  An Option that is exercisable may be exercised by the Grantee’s delivery of a notice of exercise to the
                      Company, setting forth the number of shares of Stock with respect to which the Option is to be exercised, accompanied by full payment for the shares.  To be effective, notice of exercise must be made in accordance with procedures
                      established by the Company from time to time.

                  8.6      
                    Rights of Holders of Options.

                  Unless otherwise stated in the related Award Agreement, an individual holding or exercising an Option shall have none of the
                      rights of a stockholder (for example, the right to receive cash or dividend payments or distributions attributable to the subject shares of Stock or to direct the voting of the subject shares of Stock) until the shares of Stock
                      covered thereby are fully paid and issued to her/him. Except as provided in Section 14 hereof or the related Award Agreement, no adjustment shall be made for dividends, distributions or other
                      rights for which the record date is prior to the date of such issuance.

                   

                    

                  
                    A-8

                    
                      

                  

                  8.7      
                    Delivery of Stock Certificates.

                  Promptly after the exercise of an Option by a Grantee and the payment in full of the Option Price, such
                      Grantee shall be entitled, subject to any transaction fees, as required, to the issuance of a stock certificate or certificates evidencing his or her ownership of the shares of Stock subject to the Option.

                  8.8      
                    Limitations on Incentive Stock Options.

                  An Option shall constitute an Incentive Stock Option only (i) if the Grantee of such Option is an employee
                      of the Company or any Subsidiary of the Company; (ii) to the extent specifically provided in the related Award Agreement; and (iii) to the extent that the aggregate Fair Market Value (determined at the time the Option is granted) of
                      the shares of Stock with respect to which all Incentive Stock Options held by such Grantee become exercisable for the first time during any calendar year (under the Plan and all other plans of the Grantee’s employer and its
                      Affiliates) does not exceed $100,000. This limitation shall be applied by taking Options into account in the order in which they were granted.

                  
                    
                      	9.	
                              TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS

                            

                    

                  

                  9.1      
                    Right to Payment.

                  A SAR shall confer on the Grantee a right to receive, upon exercise thereof, the excess of (i) the Fair
                      Market Value of one share of Stock on the date of exercise over (ii) the SAR Exercise Price, as determined by the Board. The Award Agreement for a SAR (except those that constitute Substitute Awards) shall specify the SAR Exercise
                      Price, which shall be fixed on the Grant Date as not less than the Fair Market Value of a share of Stock on that date.  SARs may be granted alone or in conjunction with all or part of an Option or at any subsequent time during the
                      term of such Option or in conjunction with all or part of any other Award. A SAR granted in tandem with an outstanding Option following the Grant Date of such Option shall have a grant price that is equal to the Option Price; provided, however, that the SAR’s grant price may not be less than the Fair Market Value of a share of Stock on the Grant Date of the SAR to the extent
                      required by Section 409A.

                  9.2      
                    Other Terms.

                  The Board shall determine at the Grant Date, the time or times at which and the circumstances under which
                      a SAR may be exercised in whole or in part (including based on achievement of performance goals and/or future service requirements), the time or times at which SARs shall cease to be or become exercisable following Separation from
                      Service or upon other conditions, the method of exercise, whether or not a SAR shall be in tandem or in combination with any other Award, and any other terms and conditions of any SAR.

                  9.3      Term of SARs.

                  The term of a SAR granted under the Plan shall be determined by the Board, in its sole discretion; provided, however, that such term shall not exceed ten (10) years.

                  9.4      
                    Payment of SAR Amount.

                  Upon exercise of a SAR, a Grantee shall be entitled to receive payment from the Company (in cash or Stock,
                      as determined by the Board) in an amount determined by multiplying:

                  (i)     the difference between the Fair Market Value of a share of Stock on the date of exercise over the SAR Exercise Price; by

                   

                    

                  
                    A-9

                    
                      

                  

                  (ii)       the number of shares of Stock with respect to which the SAR is exercised.

                  
                    
                      	10.	
                              TERMS AND CONDITIONS OF RESTRICTED STOCK AND RESTRICTED STOCK UNITS

                            

                    

                  

                  10.1    Restrictions.

                  At the time of grant, the Board may, in its sole discretion, establish a period of time (a “Restricted Period”) and any additional restrictions including the satisfaction of corporate or individual performance objectives applicable to an Award of Restricted Stock or Restricted Stock Units
                      as determined by the Board. Each Award of Restricted Stock or Restricted Stock Units may be subject to a different Restricted Period and additional restrictions. Neither Restricted Stock nor Restricted Stock Units may be sold,
                      transferred, assigned, pledged or otherwise encumbered or disposed of during the Restricted Period or prior to the satisfaction of any other applicable restrictions.

                  10.2    Restricted Stock Certificates.

                  The Company shall issue stock, in the name of each Grantee to whom Restricted Stock has been granted,
                      stock certificates or other evidence of ownership representing the total number of shares of Restricted Stock granted to the Grantee, as soon as reasonably practicable after the Grant Date. The Board may provide in an Award Agreement
                      that either (i) the Secretary of the Company shall hold such certificates for the Grantee’s benefit until such time as the Restricted Stock is forfeited to the Company or the restrictions lapse, or (ii) such certificates shall be
                      delivered to the Grantee; provided, however, that such certificates shall bear a legend or legends that comply with the applicable securities laws and
                      regulations and make appropriate reference to the restrictions imposed under the Plan and the Award Agreement.

                  10.3    Rights of Holders of Restricted Stock.

                  Unless the Board otherwise provides in an Award Agreement and subject to Section 16.12, holders of Restricted Stock shall have rights as stockholders of the Company, including voting and dividend rights.

                  10.4    Rights of Holders of Restricted Stock Units.

                  10.4.1            Settlement of Restricted Stock Units.

                  Restricted Stock Units may be settled in cash or Stock, as determined by the Board and set forth in the
                      Award Agreement. The Award Agreement shall also set forth whether the Restricted Stock Units shall be settled (i) within the time period specified for “short term deferrals” under Section 409A or (ii) otherwise within the requirements
                      of Section 409A, in which case the Award Agreement shall specify upon which events such Restricted Stock Units shall be settled.

                  10.4.2           Voting and Dividend Rights.

                  Unless otherwise stated in the applicable Award Agreement and subject to Section

                        16.12, holders of Restricted Stock Units shall not have rights as stockholders of the Company, including no voting or dividend or dividend equivalents rights.

                  10.4.3           Creditor’s Rights.

                  A holder of Restricted Stock Units shall have no rights other than those of a general creditor of the Company. Restricted Stock
                      Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Award Agreement.

                   

                    

                  
                    A-10

                    
                      

                  

                  10.5    Purchase of Restricted Stock.

                  The Grantee shall be required, to the extent required by applicable law, to purchase the Restricted Stock
                      from the Company at a Purchase Price equal to the greater of (i) the aggregate par value of the shares of Stock represented by such Restricted Stock or (ii) the Purchase Price, if any, specified in the related Award Agreement. If
                      specified in the Award Agreement, the Purchase Price may be deemed paid by Services already rendered. The Purchase Price shall be payable in a form described in Section 11 or, in the discretion of the Board, in consideration for past Services rendered.

                  10.6    Delivery of Stock.

                  Upon the expiration or termination of any Restricted Period and the satisfaction of any other conditions
                      prescribed by the Board, the restrictions applicable to shares of Restricted Stock or Restricted Stock Units settled in Stock shall lapse, and, unless otherwise provided in the Award Agreement, a stock certificate for such shares
                      shall be delivered, free of all such restrictions, to the Grantee or the Grantee’s beneficiary or estate, as the case may be.

                  
                    
                      	11.	
                              FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK

                            

                    

                  

                  11.1    General Rule.

                  Payment of the Option Price for the shares purchased pursuant to the exercise of an Option or the Purchase
                      Price for Restricted Stock shall be made in cash or in cash equivalents acceptable to the Company, except as provided in this Section 11.

                  11.2    Surrender of Stock.

                  To the extent the Award Agreement so provides, payment of the Option Price for shares purchased pursuant
                      to the exercise of an Option or the Purchase Price for Restricted Stock may be made all or in part through the tender to the Company of shares of Stock, which shares shall be valued, for purposes of determining the extent to which the
                      Option Price or Purchase Price for Restricted Stock has been paid thereby, at their Fair Market Value on the date of exercise or surrender.  Notwithstanding the foregoing, in the case of an Incentive Stock Option, the right to make
                      payment in the form of already owned shares of Stock may be authorized only at the time of grant.

                  11.3    Cashless Exercise.

                  With respect to an Option only (and not with respect to Restricted Stock), to the extent permitted by law
                      and to the extent the Award Agreement so provides, payment of the Option Price may be made all or in part by delivery (on a form acceptable to the Company) of an irrevocable direction to a licensed securities broker acceptable to the
                      Company to sell shares of Stock and to deliver all or part of the sales proceeds to the Company in payment of the Option Price and any withholding taxes described in Section 16.3.

                  11.4    Other Forms of Payment.

                  To the extent the Award Agreement so provides, payment of the Option Price or the Purchase Price for
                      Restricted Stock may be made in any other form that is consistent with applicable laws, regulations and rules, including, but not limited to, the Company’s withholding of shares of Stock otherwise due to the exercising Grantee.

                  
                    
                      	12.	
                              OTHER STOCK-BASED AWARDS

                            

                    

                  

                  12.1    Grant of Other Stock-based Awards.

                  Other Stock-based Awards may be granted either alone or in addition to or in conjunction with other Awards under the Plan. 
                      Other Stock-based Awards may be granted in lieu of other cash or other compensation to which a Service Provider is entitled from the Company or may be used in the settlement of amounts payable in shares of Common Stock under any other
                      compensation plan or arrangement of the Company.  Subject to the provisions of the Plan, the Committee shall have the sole and complete authority to determine the persons to whom and the time or times at which such Awards shall be
                      made, the number of shares of Common Stock to be granted pursuant to such Awards, and all other conditions of such Awards.  Unless the Committee determines otherwise, any such Award shall be confirmed by an Award Agreement, which
                      shall contain such provisions as the Committee determines to be necessary or appropriate to carry out the intent of this Plan with respect to such Award.

                   

                    

                  
                    A-11

                    
                      

                  

                  12.2    Terms of Other Stock-based Awards.

                  Any Common Stock subject to Awards made under this Section 12 may
                      not be sold, assigned, transferred, pledged or otherwise encumbered prior to the date on which the shares are issued, or, if later, the date on which any applicable restriction, performance or deferral period lapses.

                  
                    
                      	13.	
                              REQUIREMENTS OF LAW

                            

                    

                  

                  13.1    General.

                  The Company shall not be required to sell or issue any shares of Stock under any Award if the sale or
                      issuance of such shares would constitute a violation by the Grantee, any other individual exercising an Option, or the Company of any provision of any law or regulation of any governmental authority, including without limitation any
                      federal or state securities laws or regulations. If at any time the Company shall determine, in its discretion, that the listing, registration or qualification of any shares subject to an Award upon any securities exchange or under
                      any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the issuance or purchase of shares hereunder, no shares of Stock may be issued or sold to the Grantee or any other individual
                      exercising an Option pursuant to such Award unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby
                      shall in no way affect the date of termination of the Award. Specifically, in connection with the Securities Act, upon the exercise of any Option or the delivery of any shares of Stock underlying an Award, unless a registration
                      statement under such Act is in effect with respect to the shares of Stock covered by such Award, the Company shall not be required to sell or issue such shares unless the Board has received evidence satisfactory to it that the Grantee
                      or any other individual exercising an Option may acquire such shares pursuant to an exemption from registration under the Securities Act. Any determination in this connection by the Board shall be final, binding, and conclusive. The
                      Company may, but shall in no event be obligated to, register any securities covered hereby pursuant to the Securities Act. The Company shall not be obligated to take any affirmative action in order to cause the exercise of an Option
                      or the issuance of shares of Stock pursuant to the Plan to comply with any law or regulation of any governmental authority. As to any jurisdiction that expressly imposes the requirement that an Option shall not be exercisable until
                      the shares of Stock covered by such Option are registered or are exempt from registration, the exercise of such Option (under circumstances in which the laws of such jurisdiction apply) shall be deemed conditioned upon the
                      effectiveness of such registration or the availability of such an exemption.

                  13.2    Rule 16b-3.

                  During any time when the Company has a class of equity security registered under Section 12 of the Exchange Act, it is the
                      intent of the Company that Awards and the exercise of Options granted to officers and directors hereunder will qualify for the exemption provided by Rule 16b-3 under the Exchange Act. To the extent that any provision of the Plan or
                      action by the Board or Committee does not comply with the requirements of Rule 16b-3, it shall be deemed inoperative to the extent permitted by law and deemed advisable by the Board, and shall not affect the validity of the Plan. In
                      the event that Rule 16b-3 is revised or replaced, the Board may exercise its discretion to modify this Plan in any respect necessary to satisfy the requirements of, or to take advantage of any features of, the revised exemption or its
                      replacement.

                   

                    

                  
                    A-12

                    
                      

                  

                  
                    
                      	14.	
                              EFFECT OF CHANGES IN CAPITALIZATION

                            

                    

                  

                  14.1    Changes in Stock.

                  If (i) the number of outstanding shares of Stock is increased or decreased or the shares of Stock are
                      changed into or exchanged for a different number or kind of shares or other securities of the Company on account of any recapitalization, reclassification, stock split, reverse split, combination of shares, exchange of shares, stock
                      dividend or other distribution payable in capital stock, or other increase or decrease in such shares effected without receipt of consideration by the Company occurring after the Effective Date or (ii) there occurs any spin-off,
                      split-up, extraordinary cash dividend or other distribution of assets by the Company, the number and kinds of shares for which grants of Awards may be made under the Plan (including the per-Grantee maximums set forth in Section 4) shall be equitably adjusted by the Company; provided that any such adjustment shall comply with Section 409A. In addition, in the event of any such increase or decease in the number of
                      outstanding shares or other transaction described in clause (ii) above, the number and kind of shares for which Awards are outstanding and the Option Price per share of outstanding Options and SAR Exercise Price per share of
                      outstanding SARs shall be equitably adjusted; provided that any such adjustment shall comply with Section 409A.

                  14.2    Effect of Certain Transactions.

                  Except as otherwise provided in an Award Agreement and subject to the provisions of Section 14.3, in the event of a Corporate Transaction, the Plan and the Awards issued hereunder shall continue in effect in accordance with their respective terms, except that following a Corporate
                      Transaction either (i) each outstanding Award shall be treated as provided for in the agreement entered into in connection with the Corporate Transaction or (ii) if not so provided in such agreement, each Grantee shall be entitled to
                      receive in respect of each share of Common Stock subject to any outstanding Awards, upon exercise or payment or transfer in respect of any Award, the same number and kind of stock, securities, cash, property or other consideration
                      that each holder of a share of Common Stock was entitled to receive in the Corporate Transaction in respect of a share of Common stock; provided, however,
                      that, unless otherwise determined by the Committee, such stock, securities, cash, property or other consideration shall remain subject to all of the conditions, restrictions and performance criteria which were applicable to the Awards
                      prior to such Corporate Transaction.  Without limiting the generality of the foregoing, the treatment of outstanding Options and SARs pursuant to this Section 14.2 in connection with a
                      Corporate Transaction in which the consideration paid or distributed to the Company’s stockholders is not entirely shares of common stock of the acquiring or resulting corporation may include the cancellation of outstanding Options
                      and SARs upon consummation of the Corporate Transaction as long as, at the election of the Committee, (i) the holders of affected Options and SARs have been given a period of at least fifteen days prior to the date of the consummation
                      of the Corporate Transaction to exercise the Options or SARs (to the extent otherwise exercisable) or (ii) the holders of the affected Options and SARs are paid (in cash or cash equivalents) in respect of each Share covered by the
                      Option or SAR being canceled an amount equal to the excess, if any, of the per share price paid or distributed to stockholders in the Corporate Transaction (the value of any non-cash consideration to be determined by the Committee in
                      its sole discretion) over the Option Price or SAR Exercise Price, as applicable.  For avoidance of doubt, (1) the cancellation of Options and SARs pursuant to clause (ii) of the preceding sentence may be effected notwithstanding
                      anything to the contrary contained in this Plan or any Award Agreement and (2) if the amount determined pursuant to clause (ii) of the preceding sentence is zero or less, the affected Option or SAR may be cancelled without any payment
                      therefore.  The treatment of any Award as provided in this Section 14.2 shall be conclusively presumed to be appropriate for purposes of Section 14.1.

                  14.3    Change in Control

                  14.3.1            Consequences of a Change in Control

                  In the event of a Change in Control of the Company, the Board, in its discretion, may, at any time an Award is granted, or at
                      any time thereafter, (i) accelerate the time period relating to the exercise or vesting of the Award; or (ii) take one or more of the following actions, which may vary among individual Grantees: (A) provide for the purchase of the
                      Award for an amount of cash or other property that could have been received upon the exercise or vesting of the Award (less any applicable Option Price or SAR Exercise Price in the cash of Options and SARs); (B) adjust the terms of
                      the Awards in a manner determined by the Board to reflect the Change in Control; (C) cause the Awards to be assumed, or new rights substituted therefor, by another entity, through the continuance of the Plan and the assumption of
                      outstanding Awards, or the substitution for such Awards of comparable value covering shares of a successor corporation, with appropriate adjustments as to the number and kind of shares and exercise prices, in which event the Plan and
                      such Awards, or the new options and rights substituted therefor, shall continue in the manner and under the terms so provided; (D) accelerate the time at which Options or SARs then outstanding may be exercised so that such Options and
                      SARs may be exercised for a limited period of time on or before a specified date fixed by the Board, after which specified date, all unexercised Options and SARs shall terminate; or (E) make such other provision as the Board may
                      consider equitable.

                   

                    

                  
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                  14.3.2            Change in Control Defined

                  Except as may otherwise be defined in an Award Agreement, a “Change in
                        Control” shall mean the occurrence of any of the following events: (i) the acquisition, directly or indirectly, by any Person or group (within the meaning of Section 13(d)(3) of the Exchange Act) of the Beneficial Ownership
                      of more than fifty percent of the outstanding securities of the Company; (ii) a merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state
                      in which the Company is incorporated; (iii) the sale, transfer or other disposition of all or substantially all of the assets of the Company; (i) a complete liquidation or dissolution of the Company; or (v) any reverse merger in which
                      the Company is the surviving entity but in which securities possessing more than fifty percent of the total combined voting power of the Company’s outstanding securities are transferred to a Person or Persons different from the
                      Persons holding those securities immediately prior to such merger.

                  Notwithstanding the foregoing, if it is determined that an Award hereunder is subject to the requirements
                      of Section 409A and payable upon a Change in Control, the Company will not be deemed to have undergone a Change in Control unless the Company is deemed to have undergone a “change in control event” pursuant to the definition of such
                      term in Section 409A.

                  14.4    Adjustments

                  Adjustments under this Section 14 related to shares of Stock or
                      securities of the Company shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. No fractional shares or other securities shall be issued pursuant to any such adjustment, and any
                      fractions resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole share.

                  
                    
                      	15.	
                              NO LIMITATIONS ON COMPANY

                            

                    

                  

                  The making of Awards pursuant to the Plan shall not affect or limit in any way the right or power of the
                      Company to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or any part of its business or assets.

                  
                    
                      	16.	
                              TERMS APPLICABLE GENERALLY TO AWARDS GRANTED UNDER THE PLAN

                            

                    

                  

                  16.1    Disclaimer of Rights.

                  No provision in the Plan or in any Award Agreement shall be construed to confer upon any individual the right to remain in the
                      employ or service of the Company or any Affiliate, or to interfere in any way with any contractual or other right or authority of the Company either to increase or decrease the compensation or other payments to any individual at any
                      time, or to terminate any employment or other relationship between any individual and the Company. In addition, notwithstanding anything contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement,
                      no Award granted under the Plan shall be affected by any change of duties or position of the Grantee, so long as such Grantee continues to be a Service Provider. The obligation of the Company to pay any benefits pursuant to this Plan
                      shall be interpreted as a contractual obligation to pay only those amounts described herein, in the manner and under the conditions prescribed herein. The Plan shall in no way be interpreted to require the Company to transfer any
                      amounts to a third party trustee or otherwise hold any amounts in trust or escrow for payment to any Grantee or beneficiary under the terms of the Plan.

                   

                    

                  
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                  16.2    Nonexclusivity of the Plan.

                  Neither the adoption of the Plan nor the submission of the Plan to the stockholders of the Company for
                      approval shall be construed as creating any limitations upon the right and authority of the Board to adopt such other incentive compensation arrangements (which arrangements may be applicable either generally to a class or classes of
                      individuals or specifically to a particular individual or particular individuals), including, without limitation, the granting of stock options as the Board in its discretion determines desirable.

                  16.3    Withholding Taxes.

                  The Company or an Affiliate, as the case may be, shall have the right to deduct from payments of any kind
                      otherwise due to a Grantee any federal, state, or local taxes of any kind required by law to be withheld (i) with respect to the vesting of or other lapse of restrictions applicable to an Award, (ii) upon the issuance of any shares of
                      Stock upon the exercise of an Option or SAR, or (iii) otherwise due in connection with an Award.  At the time of such vesting, lapse, or exercise, the Grantee shall pay to the Company or the Affiliate, as the case may be, any amount
                      that the Company or the Affiliate may reasonably determine to be necessary to satisfy such withholding obligation. Subject to the prior approval of the Company or the Affiliate, which may be withheld by the Company or the Affiliate,
                      as the case may be, in its sole discretion, the Grantee may elect to satisfy such obligations, or the Company may require such obligations (up to maximum statutory rates) to be satisfied, in whole or in part, (i) by causing the
                      Company or the Affiliate to withhold the number of shares of Stock otherwise issuable to the Grantee as may be necessary to satisfy such withholding obligation or (ii) by delivering to the Company or the Affiliate shares of Stock
                      already owned by the Grantee. The shares of Stock so delivered or withheld shall have an aggregate Fair Market Value equal to such withholding obligations (up to maximum statutory rates).  The Fair Market Value of the shares of Stock
                      used to satisfy such withholding obligation shall be determined by the Company or the Affiliate as of the date that the amount of tax to be withheld is to be determined. A Grantee who has made an election pursuant to this Section 16.3 may satisfy his or her withholding obligation only with shares of Stock that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements.

                  16.4    Captions.

                  The use of captions in this Plan or any Award Agreement is for the convenience of reference only and shall
                      not affect the meaning of any provision of the Plan or any Award Agreement.

                  16.5    Other Provisions.

                  Each Award Agreement may contain such other terms and conditions not inconsistent with the Plan as may be
                      determined by the Board, in its sole discretion.  In the event of any conflict between the terms of an employment agreement and the Plan, the terms of the employment agreement govern.

                  16.6    Number and Gender.

                  With respect to words used in this Plan, the singular form shall include the plural form, the masculine
                      gender shall include the feminine gender, etc., as the context requires.

                  16.7    Severability.

                  If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in
                      any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction.

                   

                    

                  
                    A-15

                    
                      

                  

                  16.8    Governing Law.

                  The Plan shall be governed by and construed in accordance with the laws of the State of Nevada without
                      giving effect to the principles of conflicts of law, and applicable Federal law.

                  16.9    Section 409A.

                  The Plan is intended to comply with Section 409A to the extent subject thereto, and, accordingly, to the
                      maximum extent permitted, the Plan shall be interpreted and administered to be in compliance therewith. Any payments described in the Plan that are due within the “short-term deferral period” as defined in Section 409A shall not be
                      treated as deferred compensation unless applicable laws require otherwise. Notwithstanding anything to the contrary in the Plan, to the extent required to avoid accelerated taxation and tax penalties under Section 409A, amounts that
                      would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan during the six (6) month period immediately following the Grantee’s Separation from Service shall instead be paid on the first payroll date
                      after the six-month anniversary of the Grantee’s Separation from Service (or the Grantee’s death, if earlier). Notwithstanding the foregoing, neither the Company nor the Committee shall have any obligation to take any action to
                      prevent the assessment of any excise tax or penalty on any Grantee under Section 409A and neither the Company nor the Committee will have any liability to any Grantee for such tax or penalty.

                  16.10  Separation from Service.

                  The Board shall determine the effect of a Separation from Service upon Awards, and such effect shall be
                      set forth in the appropriate Award Agreement.  Without limiting the foregoing, the Board may provide in the Award Agreements at the time of grant, or any time thereafter with the consent of the Grantee, the actions that will be taken
                      upon the occurrence of a Separation from Service, including, but not limited to, accelerated vesting or termination, depending upon the circumstances surrounding the Separation from Service.

                  16.11  Transferability of Awards.

                  16.11.1        Transfers in General.

                  Except as provided in Section 16.11.2, no Award shall be
                      assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of descent and distribution, and, during the lifetime of the Grantee, only the Grantee personally (or the Grantee’s personal
                      representative) may exercise rights under the Plan.

                  16.11.2              Family Transfers.

                  If authorized in the applicable Award Agreement, a Grantee may transfer, not for value, all or part of an
                      Award (other than Incentive Stock Options) to any Family Member.  For the purpose of this Section 16.11.2, a “not for value” transfer is a transfer which is (i) a gift, (ii) a transfer under a
                      domestic relations order in settlement of marital property rights; or (iii) a transfer to an entity in which more than fifty percent of the voting interests are owned by Family Members (or the Grantee) in exchange for an interest in
                      that entity.  Following a transfer under this Section 16.11.2, any such Award shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer.
                      Subsequent transfers of transferred Awards are prohibited except to Family Members of the original Grantee in accordance with this Section 16.11.2 or by will or the laws of descent and
                      distribution.

                  16.12  Dividends and Dividend Equivalent Rights.

                  If specified in the Award Agreement, the recipient of an Award (other than Options or SARs) may be entitled to receive
                      dividends or dividend equivalents with respect to the Common Stock or other securities covered by an Award.  The terms and conditions of a dividend equivalent right may be set forth in the Award Agreement.  Dividend equivalents
                      credited to a Grantee may be reinvested in additional shares of Stock or other securities of the Company at a price per unit equal to the Fair Market Value of a share of Stock on the date that such dividend was paid to stockholders,
                      as determined in the sole discretion of the Committee.  Notwithstanding any provision herein to the contrary, in no event will dividends or dividend equivalents vest or otherwise be paid out prior to the time that the underlying Award
                      (or portion thereof) has vested and, accordingly, will be subject to cancellation and forfeiture if such Award does not vest (including both time-based and performance-based Awards).

                   

                    

                  
                    The Plan was adopted by the Board of Directors on April 29, 2019.

                  

                  

                  

                A-16

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