Document:

EX-10.1

 Exhibit 10.1 

MEI PHARMA, INC. 

AMENDED AND RESTATED 

2008 STOCK OMNIBUS EQUITY COMPENSATION PLAN 

Section 1. Purpose 
 The Plan
authorizes the Compensation Committee to provide Advisors, Employees and Non-Employee Directors that are providing, or have agreed to provide, services to the Company or its Affiliates, who are in a position to contribute to the long-term success of
the Company or its Affiliates, with Grants. The Company believes that this incentive program will cause those Advisors, Employees and Non-Employee Directors to increase their interest in the welfare of the Company and its Affiliates, and aid in
attracting, retaining and motivating Advisors, Employees and Non-Employee Directors of outstanding ability. 
 The Plan was originally
effective as of December 9, 2008 upon approval by the stockholders of the Company, and amended and restated effective October 21, 2011, provided, however, that the share increase was effective December 1, 2011 upon approval by
the stockholders of the Company. The Plan was further amended and restated effective January 29, 2013, provided, however, that the share increase was effective March 26, 2013 upon approval by the stockholders of the Company. This
amendment and restatement of the Plan is effective as of the Restatement Effective Date, subject to approval by the Company’s stockholders; provided, however, that if this amendment and restatement is not so approved, the prior version
of the Plan (as in effect immediately prior to the Board’s approval of this amendment and restatement) shall continue to operate according to its terms. 

Section 2. Definitions 
 Capitalized
terms used herein shall have the meanings set forth in this Section. 
 (a) “Advisor” shall mean advisors who render bona fide
services to the Company or its subsidiaries where the services are not in connection with the offer and sale of securities in a capital-raising transaction and the Advisors do not directly or indirectly promote or maintain a market for the
Company’s securities. 
 (b) “Affiliate” shall mean any Person which is included as a member with the Company in a controlled
group of corporations, within the meaning of Code section 414(b), or which is a trade or business (whether or not incorporated) included with the Company in a group of trades or business under common control, within the meaning of Code section
414(c); provided, however, that in applying Code sections 1563(a)(1), (2) and (3) for purposes of determining a controlled group of corporations under Code section 414(b), the language “at least 20 percent” is used
instead of “at least 80 percent” each place it appears in Code sections 1563(a)(1), (2) and (3), and in applying Treas. Reg. section 1.414(c)-2 for purposes of determining trades or businesses (whether or not incorporated) that are
under common control for purposes of Code section 414(c), the language “at least 20 percent” is used instead of “at least 80 percent” each place it appears in Treas. Reg. section 1.414(c)-2. 

(c) “Board” shall mean the Board of Directors of the Company. 

(d) “Cash-Based Award” shall mean any Grant denominated in cash, as described in Section 9. 

(e) “Cause” shall have the meaning ascribed thereto in any effective employment or service agreement between the Company and the
Grantee, or if no employment agreement is in effect that contains a definition of cause, then Cause shall mean a finding by the Compensation Committee, in its sole and absolute discretion, that the Grantee has (i) committed a felony or a crime
involving moral turpitude, (ii) committed any act of gross negligence or fraud, (iii) failed, refused or neglected to substantially perform his duties (other than by reason of a physical or mental impairment) or to implement the directives
of the Company, (iv) materially violated any policy of the Company, or (v) engaged in conduct that is materially injurious to the Company, monetarily or otherwise. 

  
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 (f) “Change in Control” shall be deemed to have occurred if: 

(i) Any “person” (as such term is used in sections 13(d) and 14(d) of the Exchange Act) becomes a “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the voting power of the then outstanding securities of the Company; provided that a Change in Control shall not be
deemed to occur as a result of a transaction in which the Company becomes a subsidiary of another corporation and in which the stockholders of the Company, immediately prior to the transaction, will beneficially own, immediately after the
transaction, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the parent corporation would be entitled in the election of directors. 

(ii) The consummation of (A) a merger or consolidation of the Company with another corporation where the stockholders of the Company,
immediately prior to the merger or consolidation, will not beneficially own, immediately after the merger or consolidation, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the surviving corporation would
be entitled in the election of directors, or where the members of the Board, immediately prior to the merger or consolidation, would not, immediately after the merger or consolidation, constitute a majority of the board of directors of the surviving
corporation, (B) a sale or other disposition of all or substantially all of the assets of the Company, or (C) a liquidation or dissolution of the Company. 

Notwithstanding the foregoing definition of Change in Control, the Compensation Committee may modify the definition of Change in Control for a particular
Grant as it deems appropriate to comply with Code section 409A or otherwise. 
 (g) “Code” shall mean the Internal Revenue Code of
1986, as amended and the regulations promulgated thereunder. 
 (h) “Company” shall mean MEI Pharma, Inc., a corporation organized
under the laws of the State of Delaware. 
 (i) “Compensation Committee” shall mean the members of the Board appointed by the
Board to serve as the Compensation Committee with responsibility for the administration of the Plan, or if no such members of the Board are appointed, then the Compensation Committee shall consist of all of the members of the Board. In any case, the
Board shall approve and administer all grants made to Non-Employee Directors. The members of the Board appointed to serve as the Compensation Committee, if applicable, should consist of two or more Persons who are “outside directors” as
defined under Code section 162(m), and related Treasury regulations, and “non-employee directors” as defined under Rule 16b-3 under the Exchange Act. To the extent that the Board or a subcommittee administers the Plan, references in the
Plan to the “Compensation Committee” shall be deemed to refer to the Board or such subcommittee. 
 (j) “Disability” or
“Disabled” shall mean a Grantee’s becoming disabled within the meaning of Code section 22(e)(3) or as otherwise determined by the Compensation Committee. 

(k) “Employee” shall mean any individual that is providing, or has agreed to provide, services to the Company or an Affiliate of the
Company as an employee. 
 (l) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

(m) “Exercise Price” shall mean the purchase price of a Share subject to an Option, which shall not be less than the Fair Market
Value of a Share as of the date an Option is granted. 
 (n) “Fair Market Value” of a Share on any given date, unless the
Compensation Committee determines otherwise with respect to a particular Grant, shall mean (i) if the principal trading market for the Shares is a 

  
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national securities exchange, the last reported sale price during regular trading hours thereof of a Share on the relevant date or (if there were no trades on that date) the last reported sales
price during regular trading hours on the latest preceding date upon which a sale was reported, (ii) if the Shares are not principally traded on such exchange, the mean between the last reported “bid” and “asked” prices of a
Share during regular trading hours on the relevant date, as reported on the OTC Bulletin Board, or (iii) if the Shares are not publicly traded or, if publicly traded, are not so reported, the Fair Market Value per share shall be as determined
by the Compensation Committee pursuant to any reasonable valuation method authorized under the Code. 
 (o) “Full Value Award”
shall mean a Grant other than an Option or SAR, and which is settled in Shares. 
 (p) “Grant” shall mean a grant of Options,
SARs, Stock Awards, Stock Units, Cash-Based Awards or Other Stock-Based Awards under the Plan. 
 (q) “Grant Letter” shall mean a
letter, certificate or other agreement accepted by the Grantee, evidencing the making of a Grant hereunder and containing such terms and conditions, not inconsistent with the express provisions of the Plan, as the Compensation Committee shall
approve. 
 (r) “Grantee” shall mean an Advisor, Employee or Non-Employee Director made a Grant under the Plan. 

(s) “ISO” shall mean any Option or portion thereof that meets the requirements of an incentive stock option under Code section 422
and that is designated by the Compensation Committee to be an ISO. 
 (t) “Non-Employee Director” shall mean a member of the Board
who is not an Employee. 
 (u) “Nonqualified Option” shall mean any Option or portion thereof that is not an ISO. 

(v) “Options” shall refer to options issued under and subject to the Plan. 

(w) “Other Stock-Based Award” shall mean any Grant based on, measured by or payable in Shares (other than those described in
Sections 5, 6, 7 and 8 of the Plan), as described in Section 9. 
 (x) “Person” shall mean an individual, partnership,
corporation, limited liability company or partnership, trust, unincorporated organization, joint venture, government (or agency or political subdivision thereof) or any other entity of any kind. 

(y) “Plan” shall mean this Amended and Restated MEI Pharma, Inc. 2008 Omnibus Equity Compensation Plan as set forth herein and as
amended from time to time. 
 (z) “Restatement Effective Date” shall mean December 3, 2014, provided that this amendment and
restatement of the Plan is approved by the Company’s stockholders on such date. 
 (aa) “SAR” shall mean a stock appreciation
right with respect to a Share. 
 (bb) “Share” shall mean a share of common stock of the Company. 

(cc) “Stock Award” shall mean an award of Shares, with or without restrictions. 

(dd) “Stock Unit” shall mean a unit that represents a hypothetical Share. 

(ee) “Substitute Awards” shall mean Grants made or Shares issued by the Company in assumption of, or in substitution or exchange
for, awards previously granted, or the right or obligation to make future awards, in each case by a company acquired by the Company or any Company subsidiary or with which the Company or any subsidiary combines. 

  
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 Section 3. Shares Available under the Plan 

 

	 	(a)	Shares Authorized. Subject to adjustment as provided in Sections 3(b) and 13 below, as of the Restatement Effective Date, (i) 2,407,479 Shares, less (ii) one Share for every one Share that was subject
to an Option or SAR granted after June 30, 2014 and 1.25 Shares for every one Share that was subject to a Full Value Award granted after June 30, 2014, shall be authorized for Grants made under the Plan. A maximum of 2,000,000 Shares may
be subject to ISOs granted under the Plan. Any Shares issued hereunder may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares purchased in the open market or otherwise. 

 

	 	(b)	Share Counting. 

  

	 	(i)	For each Share that is subject to an Option or SAR granted after June 30, 2014, the Share limit referred above in Section 3(a) shall be reduced by one Share for every one Share that was subject to an Option or
SAR and for each Share that is subject to a Full Value Award granted after June 30, 2014, the Share limit shall be reduced by 1.25 Shares for every one Share that was subject to a Full Value Award. 

 

	 	(ii)	If any Shares subject to a Grant are forfeited, a Grant expires or a Grant is settled for cash (in whole or in part), then the Shares subject to such Grant shall, to the extent of such forfeiture, expiration or cash
settlement, be added to the Shares available for Grants under the Plan, subject to the mechanism set forth in Section 3(b)(iv). 

  

	 	(iii)	Notwithstanding anything to the contrary contained herein, the following Shares shall not be added to the Shares that may be subject to Grants under the Plan: (A) Shares tendered by the Grantee or withheld by the
Company in payment of the Exercise Price of an Option, (B) Shares tendered by the Grantee or withheld by the Company to satisfy any tax withholding obligation with respect to Grants, (C) Shares subject to a SAR that are not issued in
connection with its stock settlement on exercise thereof, and (D) Shares reacquired by the Company on the open market or otherwise using cash proceeds from the exercise of Options. 

 

	 	(iv)	Any Shares that again become available for Grants under the Plan pursuant to this Section 3 shall be added as (A) one Share for every one Share subject to Options or SARs granted under the Plan, and
(B) as 1.25 Shares for every one Share subject to Full Value Awards granted under the Plan. 

  

	 	(c)	Substitute Awards. Substitute Awards shall not reduce the Shares authorized for grant under the Plan or the limitations on grants to a Grantee under Section 3(e), nor shall Shares subject to a Substitute
Award be added to the Shares available for issuance or transfer under the Plan as provided in Sections 3(a) and (b) above. Additionally, in the event that a company acquired by the Company or any Company subsidiary or with which the Company or
any subsidiary combines has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as
adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of the entities party to
such acquisition or combination) may be used for Grants under the Plan and shall not reduce the Shares authorized for Grants under the Plan (and Shares subject to such Grants shall not be added to the Shares available for Grants under the Plan as
provided in Sections 3(a) and (b) above); provided that Grants using such available shares shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination,
and shall only be made to individuals who were not Employees or directors prior to such acquisition or combination. 

  

	 	(d)	Individual Limits on Grants to Non-Employee Directors. Notwithstanding any other provision of the Plan to the contrary, including but not limited to Section 3(e) below, during any single calendar
year, no Non-Employee Director may be granted (i) Options or SARs with respect to more than 40,000 Shares and (ii) Full Value Awards with respect to more than 40,000 Shares. 

  
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	 	(e)	Individual Limits on Grants to Advisors and Employees. Subject to adjustment as provided in Section 13, no Advisor or Employee may be granted (i) Options or SARs during any calendar year with respect to
more than 1,000,000 Shares and (ii) Full Value Awards during any calendar year that are intended to comply with the performance-based exception under Code section 162(m) and are denominated in Shares under which more than 1,000,000 Shares may
be earned for each 12 months in the vesting period or performance period. During any calendar year, no Advisor or Employee may be granted awards that are intended to comply with the performance-based exception under Code section 162(m) and are
denominated in cash under which more than $3,000,000 may be earned for each 12 months in the performance period. Each of the limitations in this Section 3(e) shall be multiplied by two with respect to Grants made to an Employee during the first
calendar year in which the Employee commences employment or service with the Company and its subsidiaries. If a Grant is cancelled, the cancelled Grant shall continue to be counted toward the applicable limitation in this Section 3(e).

 Section 4. Administration of the Plan 

(a) Authority of the Compensation Committee. The Plan shall be administered by the Compensation Committee. The Compensation Committee
shall have full and final authority to take the following actions, in each case subject to and consistent with the provisions of the Plan: 

(i) to select the Advisors, Employees and Non-Employee Directors to whom Grants may be made; 

(ii) to determine the number of Shares subject to each such Grant; 

(iii) to determine the terms and conditions of any Grant made under the Plan; 

(iv) to determine whether to accelerate the exercisability of any or all applicable outstanding Grants at any time for any
reason; 
 (v) to determine the restrictions or conditions related to the delivery, holding and disposition of Shares
acquired pursuant to a Grant; 
 (vi) to prescribe the form of each Grant Letter; 

(vii) to adopt, amend, suspend, waive and rescind such rules and regulations and appoint such agents as the Compensation
Committee may deem necessary or advisable to administer the Plan; 
 (viii) to correct any defect or supply any omission or
reconcile any inconsistency in the Plan and to construe and interpret the Plan and any Grant, Grant Letter or other instrument hereunder; and 

(ix) to make all other decisions and determinations as may be required under the terms of the Plan or as the Compensation
Committee may deem necessary or advisable for the administration of the Plan. 
 All Grants shall be made conditional upon the
Grantee’s acknowledgement, in writing or by acceptance of the Grant, that all decisions and determinations of the Compensation Committee shall be final and binding on the Grantee, his or her beneficiaries and any other Person having or claiming
an interest under such Grant. 
 (b) Manner of Exercise of Compensation Committee Authority. Any action of the Compensation Committee
with respect to the Plan shall be final, conclusive and binding on all Persons, including the Company, its Affiliates, Grantees, or any Person claiming any rights under the Plan from or through any Grantee, except to the extent the Compensation
Committee may subsequently modify, or take further action not inconsistent with, its prior action. If not specified in the Plan, the time at which the Compensation Committee must or may make any determination shall be determined by the Compensation
Committee, and any such determination may thereafter be modified by the Compensation Committee. The express grant of any specific power to the Compensation Committee, and the taking of any action by the Compensation Committee, shall not be construed
as limiting any power or authority of the Compensation Committee. The Compensation Committee may delegate to officers or managers of the Company or any Affiliate of the Company the authority, subject to such terms as the Compensation Committee shall
determine, to perform such functions as the Compensation Committee may determine, to the extent permitted under applicable law. 

  
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 (c) Limitation of Liability. Each member of the Compensation Committee shall be entitled
to, in good faith, rely or act upon any report or other information furnished to him by any officer or other employee of the Company or any of its Affiliates, the Company’s independent certified public accountants or any executive compensation
consultant, legal counsel or other professional retained by the Company to assist in the administration of the Plan. To the fullest extent permitted by applicable law, no member of the Compensation Committee, nor any officer or employee of the
Company acting on behalf of the Compensation Committee, shall be personally liable for any action, determination or interpretation taken or made in good faith with respect to the Plan, and all members of the Compensation Committee and any officer or
employee of the Company acting on its behalf shall, to the extent permitted by law, be fully indemnified and protected by the Company with respect to any such action, determination or interpretation. 

Section 5. Options 
 The Compensation
Committee may grant Options to an Employee, Advisor or member of the Board upon such terms as the Compensation Committee deems appropriate. The following provisions are applicable to Options: 

(a) Number of Shares. The Compensation Committee shall determine the number of Shares that will be subject to each Grant of Options to
an Employee, Advisor or member of the Board. 
 (b) Type of Option and Price. 

(i) The Compensation Committee may grant ISOs or Nonqualified Stock Options or any combination of the two, all in accordance with the terms
and conditions set forth herein. ISOs may be granted only to employees of the Company or its parent or subsidiary corporations, as defined in Code section 424. Nonqualified Options may be granted to Employees, Advisors or members of the Board. 

(ii) The Exercise Price of Shares subject to an Option shall be determined by the Compensation Committee and may be equal to or greater than
the Fair Market Value of a Share on the date the Option is granted. However, an ISO may not be granted to an Employee who, at the time of grant, owns stock possessing more than 10% of the total combined voting power of all classes of stock of the
Company, or any parent or subsidiary corporation of the Company, as defined in Code section 424, unless the Exercise Price per Share is not less than 110% of the Fair Market Value of a Share on the date of grant. 

(iii) Each ISO shall provide that, if the aggregate Fair Market Value of the Shares on the date of the grant with respect to which ISOs are
exercisable for the first time by a Grantee during any calendar year, under the Plan or any other stock option plan of the Company or a parent or subsidiary of the Company, exceeds $100,000, then the Option, as to the excess, shall be treated as a
Nonqualified Option. 
 (c) Option Term. The Compensation Committee shall determine the term of each Option. Notwithstanding the
foregoing, the term of any Option shall not exceed ten years from the date of grant. 
 (d) Option Termination. Except as provided
below, an Option may only be exercised while the Grantee is employed or engaged by the Company or any Affiliate as an Advisor, Employee or member of the Board. Unless otherwise determined by the Compensation Committee and set forth in a Grant
Letter, Options shall terminate on the earliest of: 
 (i) the date on which the Grantee is no longer employed or engaged by the Company and
any Affiliate on account of the Grantee’s termination for Cause. In addition, notwithstanding any other provisions of this Section 5, if the Compensation Committee determines that the Grantee has engaged in conduct that constitutes Cause
at any time while the Grantee is employed or engaged by the Company and any Affiliate or after the Grantee’s termination of employment or engagement, any Option held by the Grantee shall immediately terminate and the Grantee shall automatically
forfeit all Shares underlying any exercised portion of an Option for 

  
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which the Company has not yet delivered the Share certificates, upon refund by the Company of the Exercise Price paid by the Grantee for such Shares. Upon any exercise of an Option, the Company
may withhold delivery of Share certificates pending resolution of an inquiry that could lead to a finding resulting in a forfeiture; 
 (ii)
the 91st day following the date the Grantee is no longer employed or engaged by the Company and any Affiliate for any reason other than Cause, death, or Disability; provided, however, that in all cases the portion of any Option that is
not vested on the date of termination of employment or engagement shall terminate immediately upon such termination; 
 (iii) the first
anniversary of the date the Grantee’s employment or engagement by the Company and any Affiliate terminates on account of the Grantee’s death or Disability; provided, however, that the portion of any Option that is not vested
on the date of such termination of employment or engagement shall terminate immediately upon such termination; 
 (iv) the tenth anniversary
of the date of grant as set forth in the Grant Letter; and 
 (v) cancellation, termination or expiration of the Options pursuant to
action taken by the Compensation Committee in accordance with Section 13. 
 Notwithstanding the foregoing, in the event that on the
last business day of the term of an Option (other than an ISO) (i) the exercise of the Option is prohibited by applicable law or (ii) Shares may not be purchased or sold by certain employees or directors of the Company due to the
“black-out period” of a Company policy or a “lock-up” agreement undertaken in connection with an issuance of securities by the Company, the term of the Option shall be extended for a period of 30 days following the end of the
legal prohibition, black-out period or lock-up agreement. 
 For purposes of the Plan, employment or engagement by the Company and any
Affiliate shall mean employment or service as an Employee, Advisor or member of the Board (so that, for purposes of exercising Options, a Grantee shall not be considered to have terminated his employment or engagement until the Grantee ceases to be
an Employee, Advisor and member of the Board), unless the Compensation Committee determines otherwise. 
 (e) Exercise of Options.
Only the vested portion of any Option may be exercised. A Grantee may exercise an Option that has become exercisable, in whole or in part, by delivering a notice of exercise to the Company. The Grantee shall pay the Exercise Price for an Option as
specified by the Compensation Committee (i) in cash, (ii) unless the Compensation Committee determines otherwise, by delivering Shares owned by the Grantee and having a Fair Market Value on the date of exercise at least equal to the
Exercise Price or by attestation (on a form prescribed by the Compensation Committee) to ownership of Shares having a Fair Market Value on the date of exercise at least equal to the Exercise Price, (iii) by payment through a broker in
accordance with procedures permitted by Regulation T of the Federal Reserve Board, or (iv) by such other method as the Compensation Committee may approve. In addition, in the event the Compensation Committee so determines, to the extent an
Option is at the time exercisable for vested shares of Company Stock, all or any part of that vested portion may be surrendered to the Company for an appreciation distribution payable in Shares with a Fair Market Value at the time of the Option
surrender equal to the dollar amount by which the then Fair Market Value of the Shares subject to the surrendered portion exceeds the aggregate Exercise Price payable for those Shares. Shares used to exercise an Option shall have been held by the
Grantee for the requisite period of time necessary to avoid adverse accounting consequences to the Company with respect to the Option. Payment for the Shares to be issued or transferred pursuant to the Option, and any required withholding taxes,
must be received by the Company by the time specified by the Compensation Committee depending on the type of payment being made, but in all cases prior to the issuance or transfer of such Shares. 

Notwithstanding the foregoing, a Grant Letter may provide that if on the last day of the term of an Option the Fair Market Value of one Share
exceeds the Exercise Price per Share, the Grantee has not exercised the 

  
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Option (or a tandem SAR, if applicable) and the Option has not expired, the Option shall be deemed to have been exercised by the Grantee on such day with payment made by withholding Shares
otherwise issuable in connection with the exercise of the Option. In such event, the Company shall deliver to the Grantee the number of Shares for which the Option was deemed exercised, less the number of Shares required to be withheld for the
payment of the total Exercise Price and required withholding taxes; provided, however, any fractional Share shall be settled in cash. 
 (f)
Grants to Non-Exempt Employees. Notwithstanding the foregoing, Options granted to persons who are non-exempt employees under the Fair Labor Standards Act of 1938, as amended, may not be exercisable for at least six months after the date of
grant (except that such Options may become exercisable, as determined by the Compensation Committee, upon the Grantee’s death, Disability or retirement, or upon a Change in Control or other circumstances permitted by applicable regulations).

 Section 6. Stock Awards 
 The
Compensation Committee may issue or transfer Shares to an Employee, Advisor or member of the Board under a Stock Award, upon such terms as the Compensation Committee deems appropriate. The following provisions are applicable to Stock Awards: 

(a) General Requirements. Shares issued or transferred pursuant to Stock Awards may be issued or transferred for consideration or for no
consideration, and subject to restrictions or no restrictions, as determined by the Compensation Committee. The Compensation Committee may, but shall not be required to, establish conditions under which restrictions on Stock Awards shall lapse over
a period of time or according to such other criteria as the Compensation Committee deems appropriate, including, without limitation, restrictions based upon the achievement of specific performance goals. The period of time during which the Stock
Awards will remain subject to restrictions will be designated in the Grant Letter as the “Restriction Period.” 
 (b) Number of
Shares. The Compensation Committee shall determine the number of Shares to be issued or transferred pursuant to a Stock Award and the restrictions applicable to such Shares. 

(c) Requirement of Employment or Service. If the Grantee is no longer employed or engaged by the Company or any Affiliate during a
period designated in the Grant Letter as the Restriction Period, or if other specified conditions are not met, the Stock Award shall terminate as to all Shares covered by the Grant as to which the restrictions have not lapsed, and those Shares must
be immediately returned to the Company. The Compensation Committee may, however, provide for complete or partial exceptions to this requirement as it deems appropriate. 

(d) Restrictions on Transfer and Legend on Stock Certificate. During the Restriction Period, a Grantee may not sell, assign, transfer,
pledge or otherwise dispose of the Shares of a Stock Award except under Section 14(b) below. Unless otherwise determined by the Compensation Committee, the Company will retain possession of certificates for Shares of Stock Awards until all
restrictions on such Shares have lapsed. Each certificate for a Stock Award, unless held by the Company, shall contain a legend giving appropriate notice of the restrictions in the Grant. The Grantee shall be entitled to have the legend removed from
the stock certificate covering the Shares subject to restrictions when all restrictions on such Shares have lapsed. The Compensation Committee may determine that the Company will not issue certificates for Stock Awards until all restrictions on such
Shares have lapsed. 
 (e) Right to Vote and to Receive Dividends. Unless the Compensation Committee determines otherwise, during the
Restriction Period, the Grantee shall have the right to vote Shares of Stock Awards and to receive any dividends or other distributions paid on such Shares, subject to any restrictions deemed appropriate by the Compensation Committee, including,
without limitation, the achievement of specific performance goals. Notwithstanding the provisions of this Section, any cash dividends, stock and any other property (other than 

  
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cash) distributed as a dividend or otherwise with respect to any Stock Award that vests based on achievement of performance goals shall either (i) not be paid or credited or (ii) be
accumulated and subject to restrictions and risk of forfeiture to the same extent as the Shares underlying the Stock Award with respect to which such cash, stock or other property has been distributed and shall be paid at the time such restrictions
and risk of forfeiture lapse. 
 (f) Lapse of Restrictions. All restrictions imposed on Stock Awards shall lapse upon the expiration
of the applicable Restriction Period and the satisfaction of all conditions, if any, imposed by the Compensation Committee. The Compensation Committee may determine, as to any or all Stock Awards, that the restrictions shall lapse without regard to
any Restriction Period. 
 Section 7. Stock Units 

The Compensation Committee may grant Stock Units, each of which shall represent one hypothetical Share, to an Employee, Advisor or member of
the Board, upon such terms and conditions as the Compensation Committee deems appropriate. The following provisions are applicable to Stock Units: 

(a) Crediting of Units. Each Stock Unit shall represent the right of the Grantee to receive a Share or an amount of cash based on the
value of a Share, if and when specified conditions are met. All Stock Units shall be credited to bookkeeping accounts established on the Company’s records for purposes of the Plan. 

(b) Terms of Stock Units. The Compensation Committee may grant Stock Units that are payable if specified performance goals or other
conditions are met, or under other circumstances. Stock Units may be paid at the end of a specified performance period or other period, or payment may be deferred to a date authorized by the Compensation Committee. The Compensation Committee shall
determine the number of Stock Units to be granted and the requirements applicable to such Stock Units. 
 (c) Requirement of Employment
or Service. If the Grantee is no longer employed or engaged by the Company or any Affiliate prior to the vesting of Stock Units, or if other conditions established by the Compensation Committee are not met, the Grantee’s Stock Units shall
be forfeited. The Compensation Committee may, however, provide for complete or partial exceptions to this requirement as it deems appropriate. 

(d) Payment With Respect to Stock Units. Payments with respect to Stock Units shall be made in cash, Shares or any combination of the
foregoing, as the Compensation Committee shall determine. 
 Section 8. Stock Appreciation Rights 

The following provisions are applicable to SARs: 

(a) General Requirements. The Compensation Committee may grant SARs to an Employee, Advisor or member of the Board separately or in
tandem with any Option (for all or a portion of the applicable Option). Tandem SARs may be granted either at the time the Option is granted or at any time thereafter while the Option remains outstanding; provided, however, that, in the
case of an ISO, SARs may be granted only at the time of the grant of the ISO. The Compensation Committee shall establish the base amount of the SAR at the time the SAR is granted, which shall be equal to or greater than the Fair Market Value of a
Share as of the date of grant of the SAR. The base amount of each SAR shall be equal to the per Share Exercise Price of the related Option, provided such Exercise Price is equal to or greater than the Fair Market Value of a Share as of the date of
grant of the SAR or, if there is no related Option, an amount equal to or greater than the Fair Market Value of a Share as of the date of grant of the SAR. No SAR shall have a term that is greater than ten years. 

Notwithstanding the foregoing, in the event that on the last business day of the term of a SAR (x) the exercise of the SAR is prohibited
by applicable law or (y) Shares may not be purchased or sold by certain employees or directors of the Company due to the “black-out period” of a Company policy or a “lock-up”

  
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agreement undertaken in connection with an issuance of securities by the Company, the term shall be extended for a period of 30 days following the end of the legal prohibition, black-out period
or lock-up agreement. 
 (b) Tandem SARs. In the case of tandem SARs, the number of SARs granted to a Grantee that shall be
exercisable during a specified period shall not exceed the number of Shares that the Grantee may purchase upon the exercise of the related Option during such period. Upon the exercise of an Option, the SARs relating to the Shares covered by such
Option shall terminate. Upon the exercise of SARs, the related Option shall terminate to the extent of an equal number of Shares. 
 (c)
Exercisability. A SAR shall be exercisable during the period specified by the Compensation Committee in the Grant Letter and shall be subject to such vesting and other restrictions as may be specified in the Grant Letter. The Compensation
Committee may accelerate the exercisability of any or all outstanding SARs at any time for any reason. SARs may only be exercised while the Grantee is employed or engaged by the Company or Affiliate or during the applicable period after termination
of employment or engagement as described in Section 5(c) above. A tandem SAR shall be exercisable only during the period when the Option to which it is related is also exercisable. 

A Grant Letter may provide that if on the last day of the term of a SAR the Fair Market Value of one Share exceeds the base amount per Share
of the SAR, the Grantee has not exercised the SAR or the tandem Option (if applicable), and the SAR has not otherwise expired, the SAR shall be deemed to have been exercised by the Grantee on such day. In such event, the Company shall make payment
to the Grantee in accordance with this Section, reduced by the number of Shares (or cash) required for withholding taxes; any fractional Share shall be settled in cash. 

(d) Grants to Non-Exempt Employees. Notwithstanding the foregoing, SARs granted to persons who are non-exempt employees under the Fair
Labor Standards Act of 1938, as amended, may not be exercisable for at least six months after the date of grant (except that such SARs may become exercisable, as determined by the Compensation Committee, upon the Grantee’s death, Disability or
retirement, or upon a Change in Control or other circumstances permitted by applicable regulations). 
 (e) Value of SARs. When a
Grantee exercises SARs, the Grantee shall receive in settlement of such SARs an amount equal to the value of the stock appreciation for the number of SARs exercised. The stock appreciation for a SAR is the amount by which the Fair Market Value of
the underlying Share on the date of exercise of the SAR exceeds the base amount of the SAR as described in subsection (a) above. 
 (f)
Form of Payment. The appreciation in a SAR shall be paid in Shares, cash or any combination of the foregoing, as the Compensation Committee shall determine. For purposes of calculating the number of Shares to be received, Shares shall be
valued at their Fair Market Value on the date of exercise of the SAR. 
 Section 9. Cash-Based Awards and Other Stock-Based Awards 

The Compensation Committee may grant Cash-Based Awards or Other Stock-Based Awards to any Employee, Advisor or member of the Board, on such
terms and conditions as the Compensation Committee shall determine. Cash-Based Awards and Other Stock-Based Awards may be awarded subject to the achievement of performance goals or other conditions and may be payable in cash, Company Stock or any
combination of the foregoing, as the Compensation Committee shall determine. 
 Section 10. Dividend Equivalents 

The Compensation Committee may grant Dividend Equivalents in connection Stock Units or Other
Stock-Based Awards. No Dividend Equivalents or dividends may be granted in connection with Options or SARs. Dividend Equivalents may be paid currently or accrued as contingent cash obligations and may be
payable 

  
 10 

 
in cash or Shares, and upon such terms as the Compensation Committee may establish, including, without limitation, the achievement of specific performance goals. Notwithstanding the foregoing in
this Section 10, any Dividend Equivalents granted in connection with Stock Units or Other Stock-Based Awards that are subject to specified performance goals shall be payable only if and to the extent the underlying Stock Units or Other
Stock-Based Awards are payable, as determined by the Compensation Committee. 
 Section 11. Qualified Performance-Based Compensation 

The Compensation Committee may determine that Stock Awards, Stock Units, Cash-Based Awards, Other Stock-Based Awards and Dividend Equivalents
granted to an Employee shall be considered “qualified performance-based compensation” under Code section 162(m). The following provisions shall apply to Grants of Stock Awards, Stock Units, Cash-Based Awards, Other Stock-Based Awards and
Dividend Equivalents that are to be considered “qualified performance-based compensation” under Code section 162(m): 
 (a)
Performance Goals. 
 (i) When Stock Awards, Stock Units, Cash-Based Awards, Other Stock-Based Awards or Dividend Equivalents that
are to be considered “qualified performance-based compensation” are granted, the Compensation Committee shall establish in writing (A) the objective performance goals that must be met, (B) the performance period during which the
performance will be measured, (C) the threshold, target and maximum amounts that may be paid if the performance goals are met, and (D) any other conditions that the Compensation Committee deems appropriate and consistent with the Plan and
Code section 162(m). 
 (ii) The business criteria may relate to the performance of the Company, or the performance of a parent company, a
subsidiary, division, business segment or business unit of the Company or a subsidiary, or based upon performance relative to performance of other companies or upon comparisons or any of the indicators of performance relative to performance of other
companies, or any combination of the foregoing. The Compensation Committee shall use objectively determinable performance goals based on one or more of the following criteria: stock price, earnings per share, net earnings, operating earnings,
earnings before income taxes, EBITDA (earnings before income tax expense, interest expense, and depreciation and amortization expense), return on assets, shareholder return, return on equity, growth in assets, unit volume, sales or market share, or
strategic business criteria consisting of one or more objectives based on meeting specified revenue goals, market penetration goals, geographic business expansion goals, cost targets or goals relating to acquisitions or divestitures; pre- or
after-tax income or loss (before or after allocation of corporate overhead and bonus); appreciation in and/or maintenance of the price of the Shares or any other publicly-traded securities of the Company; improvement in or attainment of expense
levels or working capital levels, including cash, inventory and accounts receivable; general and administrative expense savings; year-end cash; regulatory achievements (including submitting or filing applications or other documents with regulatory
authorities or receiving approval of any such applications or other documents and passing pre-approval inspections (whether of the Company or the Company’s third-party manufacturer) and validation of manufacturing processes (whether the
Company’s or the Company’s third-party manufacturer’s); clinical achievements (including initiating clinical studies, initiating enrollment, completing enrollment or enrolling particular numbers of subjects in clinical studies,
completing phases of a clinical study (including the treatment phase), or announcing or presenting preliminary or final data from clinical studies, in each case, whether on particular timelines or generally); strategic partnerships or transactions
(including in-licensing and out-licensing of intellectual property); establishing relationships with commercial entities with respect to the marketing, distribution and sale of the Company’s products (including with group purchasing
organizations, distributors and other vendors); co-development, co-marketing, profit sharing, joint venture or other similar arrangements; financing and other capital raising transactions (including sales of the Company’s equity or debt
securities); debt level year-end cash position; competitive market metrics; timely completion of new product roll-outs; sales or licenses of the Company’s assets (including its intellectual property, whether in a particular jurisdiction or
territory or globally, or through partnering transactions); royalty income; implementation, completion or attainment of measurable objectives with respect to research, 

  
 11 

 
development, manufacturing, commercialization, products or projects, acquisitions and divestitures. The Compensation Committee may provide for exclusion of the impact of an event or occurrence
which the Compensation Committee determines should appropriately be excluded, including (A) restructurings, discontinued operations, extraordinary items, and other unusual or non-recurring charges, (B) an event either not directly related
to the operations of the Company, Company subsidiary, division, business segment or business unit or not within the reasonable control of management, or (C) the cumulative effects of tax or accounting changes in accordance with U.S. generally
accepted accounting principles. 
 (b) Establishment of Goals. The Compensation Committee shall establish the performance goals (and
any exclusions) in writing either before the beginning of the performance period or during a period ending no later than the earlier of (i) 90 days after the beginning of the performance period or (ii) the date on which 25% of the
performance period has been completed, or such other date as may be required or permitted under applicable regulations under Code section 162(m). The performance goals shall satisfy the requirements for “qualified performance-based
compensation,” including the requirement that the achievement of the goals be substantially uncertain at the time they are established and that the goals be established in such a way that a third party with knowledge of the relevant facts could
determine whether and to what extent the performance goals have been met. The Compensation Committee shall not have discretion to increase the amount of compensation that is payable upon achievement of the designated performance goals. 

(c) Announcement of Grants. The Compensation Committee shall certify and announce the results for each performance period to all
Grantees after the announcement of the Company’s financial results for the performance period. If and to the extent that the Compensation Committee does not certify that the performance goals have been met, the grants of Stock Awards, Stock
Units, Cash-Based Awards, Other Stock-Based Awards and Dividend Equivalents for the performance period shall be forfeited or shall not be made, as applicable. If Dividend Equivalents are granted as “qualified performance-based
compensation” under Code section 162(m), a Grantee may not accrue more than $1,000,000 of such Dividend Equivalents during any calendar year. 

(d) Death, Disability or Other Circumstances. The Compensation Committee may provide that Stock Awards, Stock Units, Cash-Based Awards,
Other Stock-Based Awards and Dividend Equivalents shall be payable or restrictions on such Grants shall lapse, in whole or in part, in the event of the Grantee’s death or Disability during the performance period, or under other circumstances
consistent with the Treasury regulations and rulings under Code section 162(m). 
 Section 12. Deferrals 

The Compensation Committee may permit or require a Grantee to defer receipt of the payment of cash or the delivery of Shares that would
otherwise be due to such Grantee in connection with any Stock Units, Cash-Based Awards, or Other Stock-Based Awards. If any such deferral election is permitted or required, the Compensation Committee shall establish rules and procedures for such
deferrals and may provide for interest or other earnings to be paid on such deferrals. The rules and procedures for any such deferrals shall be consistent with applicable requirements of Code section 409A. 

Section 13. Adjustment Upon Changes in Capitalization. 

In the event any recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, exchange
or issuance of Shares or other securities, any stock dividend or other special and nonrecurring dividend or distribution (whether in the form of cash, securities or other property other than a regular cash dividend), liquidation, dissolution, or
other similar transactions or events, affects the Shares or the value thereof, then the Compensation Committee shall make such adjustment, in such manner as the Compensation Committee deems appropriate, in order to prevent dilution or enlargement of
the rights of Grantees under the Plan, including adjustment in (i) the number and kind of Shares deemed to be available thereafter for Grants under Section 3, (ii) the number and kind of Shares that may be delivered or deliverable in

  
 12 

 
respect of outstanding Grants, and (iii) the price per share or the applicable market value of such Grants. In addition, the Compensation Committee shall make such adjustments as are
appropriate in the terms and conditions of, and the criteria included in, Grants (including, without limitation, cancellation of Grants in exchange for the in-the-money value, if any, of the vested portion thereof, cancellation of unvested Grants
for no consideration, cancellation of out-of-the-money Grants for no consideration, substitution of Grants using securities of a successor or other entity, acceleration of the time that Grants expire, or adjustment of performance targets) in
recognition of unusual or nonrecurring events (including, without limitation, a Change in Control or an event described in the preceding sentence) affecting the Company or any Affiliate of the Company or the financial statements of the Company or
any Affiliate of the Company, or in response to changes in applicable laws, regulations or accounting principles. Any adjustments to outstanding Grants shall be consistent with Code section 409A or 424, to the extent applicable. Any adjustments
determined by the Compensation Committee shall be final, binding and conclusive. 
 Section 14. Restrictions on Shares. 

(a) Restrictions on Issuing Shares. No Shares shall be issued or transferred under the Plan unless and until all applicable legal
requirements have been complied with to the satisfaction of the Compensation Committee. The Compensation Committee shall have the right to condition any Grant on the Grantee’s undertaking in writing to comply with such restrictions on any
subsequent disposition of the Shares issued or transferred thereunder as the Compensation Committee shall deem necessary or advisable as a result of any applicable law, regulation or official interpretation thereof. 

(b) Transfer Restrictions. 

(i) Nontransferability of Grants. Except as provided below, only the Grantee may exercise rights under a Grant during the
Grantee’s lifetime. No Grant under the Plan and no Shares that have not been issued or as to which any applicable restriction, performance or deferral period has not lapsed, may be sold, assigned, transferred, pledged or otherwise encumbered,
except (A) by will or by the laws of descent and distribution or (B) with respect to Grants other than ISOs, pursuant to a domestic relations order. When a Grantee dies, the personal representative or other Person entitled to succeed to
the rights of the Grantee may exercise such rights. Any such successor must furnish proof satisfactory to the Company of his or her right to receive the Grant under the Grantee’s will or under the applicable laws of descent and distribution.

 (ii) Transfer of Nonqualified Stock Options. Notwithstanding (i) above, the Compensation Committee may provide, in a Grant
Letter, that a Grantee may transfer Nonqualified Options to family members, or one or more trusts or other entities for the benefit of or owned by family members, consistent with the applicable securities laws, according to such terms as the
Compensation Committee may determine; provided that the Grantee receives no consideration for the transfer of the Nonqualified Option and the transferred Nonqualified Option shall continue to be subject to the same terms and conditions as were
applicable to the Nonqualified Option immediately before the transfer. 
 (c) ISO Notice. A Grantee shall notify the Company of any
disposition of Shares acquired upon exercise of an ISO if such disposition occurs within one year of the date of such exercise or within two years of the date of grant of such ISO. The Company may impose such procedures as it determines may be
necessary to ensure that such notification is made. 
 (d) Requirements for Issuance or Transfer of Shares. No Shares shall be issued
or transferred in connection with any Grant made hereunder unless and until all legal requirements applicable to the issuance or transfer of such Shares have been complied with to the satisfaction of the Compensation Committee. The Compensation
Committee shall have the right to condition any Grant on the Grantee’s undertaking in writing to comply with such restrictions on his or her subsequent disposition of the Shares as the Compensation Committee shall deem necessary or advisable,
and certificates representing such Shares may be legended to reflect any such restrictions. 

  
 13 

 
Certificates representing Shares issued or transferred under the Plan may be subject to such stop-transfer orders and other restrictions as the Compensation Committee deems appropriate to comply
with applicable laws, regulations and interpretations, including any requirement that a legend be placed thereon. 
 Section 15. Withholding of
Taxes. 
 All Grants made under the Plan shall be subject to applicable federal (including FICA), state and local tax withholding
requirements. The Company may require that the Grantee or other Person receiving or exercising Grants pay to the Company or any Affiliate the amount of any federal, state or local taxes that the Company or any Affiliate is required to withhold with
respect to such Grants, or the Company or any Affiliate may deduct from other wages paid by the Company or any Affiliate the amount of any withholding taxes due with respect to such Grants. If the Compensation Committee so permits, a Grantee may
elect to satisfy the applicable tax withholding obligation with respect to a Grant by having Shares withheld up to an amount that does not exceed the Grantee’s minimum applicable withholding tax rate for federal (including FICA), state and
local tax liabilities. The election must be in a form and manner prescribed by the Compensation Committee and may be subject to the prior approval of the Compensation Committee. 

Section 16. Consequences of a Change in Control. 

The Compensation Committee may provide in a Grant Letter or otherwise terms under which Grants may vest and, as applicable, be exercisable or
payable in the event of a Change in Control or in the event of a Grantee’s termination of employment or engagement by the Company and any Affiliate in connection with, upon or within a specified time period after a Change of Control. In
addition, in the event of a Change in Control, the Compensation Committee may take one or more of the following actions with respect to any or all outstanding Grants: the Compensation Committee may (i) require that Grantees surrender their
outstanding vested Options and SARs in exchange for one or more payments by the Company, in cash or Shares as determined by the Compensation Committee, in an amount equal to the amount by which the then Fair Market Value of the Shares subject to the
Grantee’s unexercised, vested Options and SARs exceeds the Exercise Price of the vested Options or the base amount of the vested SARs, as applicable, (ii) provide for the cancellation of unvested Grants for no consideration,
(iii) provide for the cancellation of out-of-the-money Grants for no consideration, (iv) after giving Grantees an opportunity to exercise their outstanding Options and SARs, terminate any or all unexercised Options and SARs at such time as
the Compensation Committee deems appropriate, or (v) determine that outstanding Options and SARs that are not exercised shall be assumed by, or replaced with comparable options or rights by, the surviving corporation, (or a parent or subsidiary
of the surviving corporation), and other outstanding Grants that remain in effect after the Change in Control shall be converted to similar grants of the surviving corporation (or a parent or subsidiary of the surviving corporation). Such surrender
or termination shall take place as of the date of the Change in Control or such other date as the Compensation Committee may specify (subject to consummation of the Change in Control). 

Section 17. General Provisions 
 (a)
Grant Letter. Each Grant shall be evidenced by a Grant Letter. The terms and provisions of such Grant Letters may vary among Grantees and among different Grants made to the same Grantee. 

(b) No Right to Employment. The making of a Grant in any year shall not give the Grantee any right to similar grants in future years,
any right to continue such Grantee’s employment relationship with the Company or its Affiliates, or, until Shares are issued, any rights as a stockholder of the Company. All Grantees shall remain subject to discharge to the same extent as if
the Plan were not in effect. For purposes of the Plan, a sale of any Affiliate of the Company that employs or engages a Grantee shall be treated as the termination of such Grantee’s employment or engagement, unless the Grantee shall otherwise
continue to provide services to the Company or another subsidiary of the Company as an employee or director. 

  
 14 

 (c) No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to
the Plan or any Grant. Except as otherwise provided under the Plan, the Compensation Committee shall determine whether cash, other awards or other property shall be issued or paid in lieu of such fractional Shares or whether such fractional Shares
or any rights thereto shall be forfeited or otherwise eliminated. 
 (d) No Funding. No Grantee, and no beneficiary or other Persons
claiming under or through the Grantee, shall have any right, title or interest by reason of any Option to any particular assets of the Company or Affiliates of the Company, or any Shares allocated or reserved for the purposes of the Plan or subject
to any Grant except as set forth herein. The Company shall not be required to establish any fund or make any other segregation of assets to assure satisfaction of the Company’s obligations under the Plan. 

(e) Governing Law; Jurisdiction. The Plan shall be governed by and construed in accordance with the laws of the State of Delaware,
without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. To the
extent the Grantee is a party to an employment agreement with the Company or any of its subsidiaries that provides for binding arbitration of employment disputes, then any disputes between the Company and such Grantee arising under the Plan shall be
arbitrated in accordance with the procedures set forth in such employment agreement. 
 (f) Compliance with Law. The Plan, the
exercise of Options and SARs and the obligations of the Company to issue or transfer Shares under Grants shall be subject to all applicable laws and regulations, and to approvals by any governmental or regulatory agency as may be required. With
respect to Persons subject to section 16 of the Exchange Act, it is the intent of the Company that the Plan and all transactions under the Plan comply with all applicable provisions of Rule 16b-3 or its successors under the Exchange Act. In
addition, it is the intent of the Company that ISOs comply with the applicable provisions of Code section 422, that the Plan comply with the applicable provisions of Code section 162(m) and that, to the extent applicable, Grants be exempt from or
comply with the requirements of Code section 409A. Notwithstanding the foregoing, the Compensation Committee makes no representation that the Grants awarded under the Plan shall be exempt from or comply with Code section 409A and makes no
undertaking to preclude Code section 409A from applying to Grants awarded under the Plan. To the extent that any legal requirement of section 16 of the Exchange Act or Code sections 422, 162(m) or 409A as set forth in the Plan ceases to be required
under section 16 of the Exchange Act or Code sections 422, 162(m) or 409A, that Plan provision shall cease to apply. To the extent applicable, if on the date of a Grantee’s “separation from service” (as such term is defined under Code
section 409A), Shares (or shares of any other company required to be aggregated with the Company for purposes of Code section 409A and its corresponding regulations) are publicly-traded on an established securities market or otherwise and the
Grantee is a “specified employee” (as such term is defined in Code section 409A(a)(2)(B)(i) and its corresponding regulations) as determined by the Compensation Committee (or its delegate) in its discretion in accordance with the
requirements of Code sections 409A and 416, then all Grants that are deemed to be deferred compensation subject to the requirements of Code section 409A and payable within six months following such Grantee’s “separation from service”
shall be postponed for a period of six months following the Grantee’s “separation from service” with the Company, to the extent necessary to avoid the imposition of penalty taxes thereunder. The Compensation Committee may revoke any
Grant if it is contrary to law or modify a Grant to bring it into compliance with any valid and mandatory government regulation. The Compensation Committee may, in its sole discretion, agree to limit its authority under this Section 

(g) Grants made in Connection with Corporate Transactions and Otherwise. Nothing contained in the Plan shall be construed to
(i) limit the right of the Compensation Committee to make Grants under the Plan in connection with the acquisition, by purchase, lease, merger, consolidation or otherwise, of the business or assets of any corporation, firm or association,
including Grants to employees thereof who become Employees, or (ii) limit the right of the Company to grant stock options or make other awards outside of the Plan. The Compensation Committee may make a Grant to an employee of another
corporation who becomes an Employee by reason of a corporate merger, consolidation, acquisition of stock or property, reorganization or liquidation 

  
 15 

 
involving the Company, in substitution for awards made by such corporation. Notwithstanding anything in the Plan to the contrary, the Compensation Committee may establish such terms and
conditions of the new Grants as it deems appropriate, including setting the Exercise Price of Options at a price necessary to retain for the Grantee the same economic value as the prior options. 

(h) Application of Company Clawback Policy. All Grants under the Plan are subject to the applicable provisions of the
Company’s clawback or recoupment policy approved by the Board or the Compensation Committee; as such policy may be in effect from time to time. 

Section 18. Amendment or Termination. 

(a) Amendment. The Board may amend or terminate the Plan at any time; provided, however, that the Board shall not amend the Plan without
stockholder approval if such approval is required in order to comply with the Code or other applicable law (including Rule 16b-3 under the Exchange Act), or to comply with applicable stock exchange requirements; and further provided that the Board
may not, without the approval of the Company’s stockholders, to the extent required by such applicable law, amend the Plan to (a) increase the number of Shares that may be the subject of Grants under the Plan (except for adjustments
pursuant to Section 13), (b) expand the types of awards available under the Plan, (c) materially expand the class of persons eligible to participate in the Plan, (d) amend Section 5 and Section 8 to eliminate the
requirements relating to minimum exercise price, minimum grant price and stockholder approval, (e) increase the maximum permissible term of any Option or the maximum permissible term of a SAR, (f) add performance goals to Section 11,
(g) increase any of the limitations in Section 3, or (h) amend Section 18(b). 
 (b) No Repricing Without Stockholder
Approval. Notwithstanding anything in the Plan to the contrary, and other than pursuant to Section 13, the Compensation Committee shall not without the approval of the Company’s stockholders (a) lower the Exercise Price per Share of
an Option (or grant price of a SAR) after it is granted, (b) cancel an Option or SAR in exchange for an Option or SAR with a lower Exercise Price, cash or another Grant (other than in connection with a Change in Control), or (c) take any
other action with respect to an Option or SAR that would be treated as a repricing under the rules and regulations of the principal U.S. national securities exchange on which the Shares are listed. 

(c) Stockholder Re-Approval Requirement. If Stock Awards, Stock Units, Cash-Based Awards, Other Stock-Based Awards or Dividend
Equivalents are granted as “qualified performance-based compensation” under Section 11 above, the Plan must be reapproved by the stockholders no later than the first stockholders meeting that occurs in the fifth year following the
year in which the stockholders previously approved the provisions of Section 11, if required by Code section 162(m) or the regulations thereunder. 

(d) Termination of Plan. The Plan shall terminate on December 3, 2024, unless the Plan is terminated earlier by the Board or is
extended by the Board with the approval of the stockholders; provided, however, in no event may an ISO be granted more than ten years after the date of the adoption of the Plan by the Board. 

(e) Termination and Amendment of Outstanding Grants. A termination or amendment of the Plan that occurs after a Grant is made shall not
materially impair the rights of a Grantee unless the Grantee consents or unless the Compensation Committee acts under Section 17(f) above. The termination of the Plan shall not impair the power and authority of the Compensation Committee with
respect to an outstanding Grant. Whether or not the Plan has terminated, an outstanding Grant may be terminated or amended under Section 17(f) above or may be amended by agreement of the Company and the Grantee consistent with the Plan. 

(f) Prior Plan. Any Grants made under the Plan prior to the Restatement Effective Date shall be governed by the terms of the Plan in
effect at the time each such Grant was made, unless further amended in accordance with the terms of the Grant and such version of the Plan. For the avoidance of doubt, any Grants made under the Plan on or after the Restatement Effective Date, shall
be subject to the terms of the Plan in effect on and after the Restatement Effective Date. 

  
 16Exhibit 10.1

 

 

 

 

 

Circulating Fund Loan Contract

 

 

 

Bank of Ningbo

Circulating Fund
Loan Contract

 

Code No: 05302LK20148092

 

 

Lender: Baizhang Branch, Bank of Ningbo

Borrower: Ningbo Keyuan Plastic Co., Ltd.

 

According to relevant laws,
regulations and rules of People’s Republic of China, Borrower, and Lender, after reaching agreement through negotiations,
hereby enter into this contract and Borrower, Lender herein shall abide by this contract.

 

Article 1 Credit Matters

 

1.1 Lender shall agree
to grant the loan to Borrower after examination according to the application of Borrower, and the sort of loan is short-term
(Rong Chu Ying) loan .

 

1.2 The intended use of
the loan is to purchase commodities . Borrower shall not alter the intended use of loan confirmed hereto without Lender’s
written consent.

 

1.3 The currency type and
amount of loan: Twenty Two Million U.S. Dollars ONLY (in words)

 

1.4 The loan period is
from August 28, 2014 to August 28, 20154.During the period of contract, any lending date, or expiration date shall
be prolonged into the next banking day if the lending date or expiration date is not on banking days.

 

    	1

    	 

    

 

1.5 In case that a lending
date, amount of borrowing, the interest of loan and expiration date hereto differs with that in the loan certificate, those of
the loan certificate and appendix hereto (if any) shall prevail. And Lender has no objection towards it. The loan certificate is
an indispensable part hereof.

 

1.6 Interest Rate and Readjustment

 

1.6.1 Interest Rate of
Loan

 

1.6.1.1 The RMB Interest
Rate: the benchmark interest rate shall accord to what People’s Bank of China published of the same period and level,        /       
(increased/decreased) by       /         %.
Hereby the annual interest rate is        /     %. Hereby the conversion
equation is that monthly interest rate= annual interest rate/12, and daily interest rate= annual interest rate/360.

 

1.6.1.2 Foreign Currency
Loan Rate:                         /                   .

 

1.6.2 Loan interest shall
be calculated daily from the date when loan is transferred into Borrower’s appointed account by Lender.

 

1.6.3 Before releasing
the loan, in case of adjustment in benchmark interest rate applicable to the loan under the contract, the new benchmark interest
rate shall apply and the new loan interest rate shall be recalculated according to Clause 1.6.1 and applied to the contract.

 

1.6.4 After releasing
the loan, In case that the adjustment of benchmark interest rate is applicable to the loan herein and the period of loan is less
than one year (included one year), the loan interest shall be readjusted through the measures below:

 

(1) Continue to carry out
the interest rate recorded in the loan certificate, and the interest rate shall not be calculated by period.

 

(2) New loan interest
rate shall be confirmed and applied on condition that it is readjusted      
(monthly/quarterly) on the corresponding date in every month/quarter (the last day of month/quarter In case that there is no
corresponding date) and according to the benchmark interest rate readjusted at this time (In case that the interest rate has
been readjusted for twice or more than twice during the period, the last readjustment shall apply) and fluctuation rate in
Clause 1.6.1 hereto.

 

In case that the period of loan exceeds one year,
the loan interest rate shall be readjusted by measures __ below.

 

(1) Since January 1th of
next year from the date of benchmark interest rate readjustment, new loan interest rate shall be confirmed and applied in accordance
with the benchmark interest rate this time (In the even that benchmark interest rate has been readjusted twice or more than twice
in one year, the last interest rate shall apply) and the fluctuation rate in Clause 1.6.1 hereto;

 

(2) New loan interest
rate shall be confirmed and applied on condition that it is readjusted ___ (monthly/quarterly/yearly) on the corresponding
date in every month/quarter/year (the last day of month/quarter/year In case that there is no corresponding date) and
according to the benchmark interest rate this time (In case that the interest rate has been readjusted for twice or more than
twice during the period of Article herein, the last readjustment shall apply ) and fluctuation rate in Clause 1.6.1
hereto;

 

    	2

    	 

    

 

(3) Continue to carry out
the interest rate recorded in the loan certificate, and the interest rate shall not be calculated by period;

 

(4) From the date when
the benchmark interest rate is readjusted, new loan interest rate shall be confirmed and applied in accordance with readjusted
benchmark interest rate this time and fluctuation rate in Clause 1.6.1 hereto;

 

(5) Other measures:
                                                                               ;

 

1.7
The type of interest settlement: ______(Monthly/quarterly/annually/finally with principal clear). In case that interest
settlement accords with (Monthly/quarterly/annually), hereby the expiry date for interest is 20th in  (month/last month
of quarter/last month of year) and the interest payment date is the next day of the expiry date; when the loan becomes due, the
interest shall be paid with the principal.

 

1.8 Drawing Conditions. 

 

Unless Lender waives partially
or wholly, or Borrower conforms to the following conditions, Lender shall be entitled to reject the application of drawing from
Borrower.

 

1.8.1 The Lender continues
to be legal and valid, and abide by the promises hereto continually.

 

1.8.2 This contract has
come into force and the guarantee contract hereof has also come into force legally.

 

1.8.3 The obligations hereof
have been fully fulfilled without defaults.

 

1.8.4 Materials used to
loan and others have been provided in accordance with the requirements of Lender.

 

1.9 Payment of Loan

 

1.9.1 The loan hereto shall
be paid by measure NO.         

 

(1) Entrusted payment of
Lender, i.e., Lender shall pay loan to the transaction counterparty conformed to the intended use hereto through Borrower’s
account in accordance with the withdrawal application and payment entrustment by Borrower.

 

(2) Self payment of Borrower,
i.e., after Lender pays the loan to Borrower according to Borrower’s application to Borrower’s account, Borrower shall
pay the loan to the transaction counterparty conformed to the intended use hereto by self.

(3)                                                                                                                

 

Lender can determine
independently the payment of loan hereto in accordance with relevant materials and laws, regulations provided by Borrower. 

 

1.9.2 Borrower agrees that
in the event of entrusted payment, Lender may transfer the loan to the account of Borrower and transfer it to account of the transaction
counterparty directly from Borrower’s account.

 

Borrower shall not withdraw
when the loan is in Borrower’s account. Moreover, Borrower shall also be obliged to repay without Lender’s responsibility
In case that the fund is taken by coercive measures including but not limited to sealing up and deduction.

 

    	3

    	 

    

 

1.9.3 Either Lender
choose to entrusted payment or self-payment, it shall be deemed that the Lender’s obligation of transferring the loan is
fulfilled and Lender shall repay the loan according to the terms hereof once the loan is transferred into Borrower’s account
according to its requirement. That’s to say Borrower drew loan successfully hereto.

 

1.9.4 Borrower,
choosing entrusted payment, shall provide contracts, certificates and pay warrant relevant to loan, Lender will make formal examination
and consent to fulfill the obligation of transferring the loan. Otherwise, Lender shall be entitled to reject to transfer loan
to Borrower. For self-payment, Borrower shall report payment of loan to Lender in each three months and provide record of loan
use, account information, payment document according to Lender’s requirements for Lender to check. Otherwise, Lender shall
be entitled to exercise one or all rights in Clause 2.3 hereto.

 

1.9.5 In the case that
conforms to self-payment, Lender consents to that Borrower can withdraw loans at Lender’s counter or E-bank (if applicable),
or by other approach approved by Lender. Borrower agrees to conduct the drawing of loan according to Lender’s requirement
and confirmed the loans withdrawn at Lender’s counter or E-bank or by other approach approved by Lender.

 

1.10 Account for fund return:
Borrower shall open an account for fund return, and the number of account is 53022027000000404 ; Borrower shall report
the fund information to Lender on time; Lender shall be entitled to withdraw the loan in advance according to fund information.

 

1.11 Account for repayment:
Borrower shall open an account with Lender, and the number is 53022027000000404. Borrower shall deposit fund with interest
fully into repayment account and authorize Lender to deduct. In the event of any loan principal or interest or other fees due,
Borrower shall deposit money into the repayment account on time and authorize Lender to deduct in anytime. If due to the readjustment
of the benchmark interest rate made by China People’s Bank in same level and time, Borrower shall deposit repayment fully
on time. Otherwise, all consequences involved including but not limited to extra interest for penalty and the adverse effect involved
with Borrower’s credit record shall be undertaken by Borrower, having no relation with Lender. In the event of any loss report,
freezing, stopping payment, or closing of the repayment account, or request to change the repayment account by Borrower, Borrower
shall conduct alteration formalities from Lender. Before the alteration formalities come into force, Borrower shall conduct repayment
at Lender’s counter In case that the fund in the former repayment account is insufficient for payment. In case that Borrower
fails to conduct an alteration formality or conduct repayment at Lender’s counter thereby and consequently fails to pay the
due principal and interested and other fees fully in time, Borrower shall undertake the liability for defaults.

 

Article Two Obligations and Rights of Lender

 

2.1 Lender shall be entitled
to receive principal amount of loan, interest, compound interest, extra interest for penalty in accordance with this contract and
certificates hereto or to do so in advance.

 

    	4

    	 

    

 

2.2 Lender shall be entitled
to know information concerning Borrower’s production and operation, financial operation, stock commodity and utilization
of loan, to inspect the use and management of the collateral, and to require Borrower to provide authentic, complete financial
statements such as document, material and information monthly. Lender shall be also entitled to inquire, print, keep and utilize
Borrower’s basic information and credit record through People’s Bank Credit System or other institute and system in
accordance with relevant regulations.

 

2.3 In case of any of
the following situation, Lender shall be entitled to identify Borrower’s all credits including but not limited to loan, discount,
bank acceptance bill, international trade finance, bank guarantee letter to expire in advance and take measures below.(1) To terminate
relevant contracts, agreements, including but not limited in this contract in advance; (2) To cease to transfer new loan to Borrower
and declare the advanced expiry of the Contract and withdraw all loans with interest and its expenses in advance; (3) To deduct
relevant funds from any Borrower’s account to repay loan, interest and other fees; (4) To require Borrower to add another
guarantee protection approved by Lender; (5) To bring a case to court and to take property preservation measures such as sealing
up, freezing and deducting; (6) To take other property preservation measures. All other branches of Bank of Ningbo shall be endowed
with the rights mentioned above for Borrower.

 

(1) Production halts,
shutdown, dismissal, being takeover, cancellation of registration, declaration of bankruptcy, suspension for internal rectification
of the Borrower, or cancelling or nullifying of its business license;

 

(2) Borrower conceals
material facts involved with formulation of this contract or provides fake materials, information cannot match the fact or materials
provided include fake information; Or provides fake report forms, certificates, documents and materials during the valid period;

 

(3) Borrower fails to
repay the loan and interest according to this contract and relevant provisions hereto (including declaration of advanced expiry
and the repayment after expiry);

 

(4) Borrower fails to
conform to intended use of loan settled hereto and relevant certificates;

 

(5) Borrower fails to
fulfill obligations agreed with Lender or a third party or specified by laws and regulations;

 

(6) Disposal of any
property by Borrower may influence or has influenced ability to repay the Lender before clearing off loan and debts (including
but not limited in donating, moving , transferring and selling in bargain);

 

(7) The credit of Borrower
is getting worse and its operation gets tough, financial operation declines or exceeds the financial index set by Lender or both
parties hereto;

 

(8) Borrower fails to
repay loan fund according to the mode agreed;

 

(9) Borrower gets involved
in economic dispute or lawsuit or any property of Borrower is taken by sealing up, freezing and deducting and other protection
measures;

 

    	5

    	 

    

 

(10) Borrower gets involved
in crime and is charged, fined, or its legal representative or major person in charge gets involved in crime and is detained, arrested,
treated by impulsive measures, sued, sentenced or fined;

 

(11) Borrower fails
to fulfill any obligation hereto or of relevant certificates or violates Clause and promises hereto or of relevant certificates;

 

(12) The guarantee contract
becomes invalid or guarantor’s ability declines, or price decrease of commodities guaranteed affects the creditor’s
rights hereto;

 

(13) Guarantor violates
the regulations of the Guarantee Contract;

 

(14) Any matter other
than the matters mentioned above which may adversely affect the repayment obligation by Borrower under the Contract as judged by
the Lender. 

 

Lender shall be entitled
to judge whether above cases appeared independently.

 

2.4 During the process
of repayment, Lender shall be entitled to judge Borrower has one or more cases mentioned below by independent judgment and take
measures as below: (1) To alter the payment of loan fund from self-payment into entrusted payment (including partially entrusted
payment); (2) To cease grant and pay the loan fund;(3) To negotiate with Borrower to add conditions on granting and payment.

(1) Borrower’s credit
declines;

(2) Borrower’s main
business is not profitable enough;

(3) Exceptions occurred
during Borrower utilizing loan;

(4) ______________________________________ 

 

2.5 In case that Borrower
fails to repay due debts (including advanced expiry) such as principal of loan, interest, compound interest and penalty interest,
Lender shall be entitled to deduct corresponding amount to repay the debts from any branch of Bank of Ningbo. In the even that
Lender deducts unexpired fixed deposit from Borrower’s account, interest shall be paid according to the interest rate of
current deposit published in bulletin at the paying date if it is necessary to be wholly withdrawn in advance; if it is necessary
to withdraw part of unexpired deposit, interest of part deposit withdrawn shall be paid according to the interest rate of current
deposit published in bulletin at the paying date and interest of the rest shall be paid according to the rate of fixed deposit
by period from the date of opening account to expiring day. The loss from deduction shall be undertaken by Borrower. Borrower hereby
irrevocably authorizes Lender to deduct the amount mentioned above at any time. 

 

2.6 In case that Borrower
defaults Clause hereto or evades Lender’s supervision, conceals essential fact involved with this contract or provides fake
materials and other violating behaviors, Lender shall be entitled to open violation information or provide information for reminding
repayment to News agent, Media and public announcement, or bulletin to department concerned and to prosecute responsibilities for
violation of Borrower according to laws, regulations and previsions hereto.

 

    	6

    	 

    

 

2.7 Lender shall be entitled
to attend Borrower’s large amount financing, sale of property and its merge, separation, reform of shareholding and bankruptcy
liquidation activities.

 

2.8 Borrower and mortgagor
shall conduct legal formalities such as mortgage registration, property insurance according to Lender’s requirements. These
formalities shall be continuously valid and Lender shall be entitled to request to be the first holder to endow insurance fund
and get relevant duplicate copy of insurance contracts and certificates. Otherwise, Lender shall be entitled to reject to provide
loan hereto.

 

2.9 Lender shall be entitled
to request Borrower’s account reconciliation on time.

 

2.10 Under the prerequisite
that Borrower and guarantor hereto fulfill obligations herein and the obligations of the Guarantee Contract, Lender shall grant
the loan fund to Borrower according to this contract and provisions hereto.

 

2.11 Lender shall be
entitled to take measures in Article 2.3 hereto in case of any matter that poses a threat to normal operation of the guarantor
hereto or seriously and adversely affects the guarantor’s capacity hereto, including but not limited to production stop,
shutdown, cancellation or revoking of registration, bankruptcy, difficulties in operation, decline of financial operation, legal
representative or major person in charge getting involved in any illegal activity, proceeding, or major economic dispute, or the
property thereof being frozen, deducted or treated with other property protection measures, or the value decline of the collateral
used for guarantee under the Contract, or the same being frozen, deducted or treated with other property protection measures, and
that Borrower fails to provide guarantee according to Lender’s requirements.

 

Article Three Borrower’s Promises

 

3.1 To provide authentic,
complete and valid materials to Lender;

 

3.2 To cooperate with Lender
to conduct loan repayment, post-loan management and relevant check;

 

3.3 To avoid investing
loan into fixed assets, equity, the production or operation prohibited or restricted by competent authorities government, and not
to evade entrusted payments by Lender by breaking up the whole into parts;

 

3.4 Borrower promises to
completely fulfill all obligations hereto.

 

Article Four Borrower’s Rights and
Obligations 

 

4.1 Borrower shall be entitled
to get and utilize loan in accordance with this contract and provisions in relevant certificates.

 

4.2 Borrower shall pay
off principal of loan, interest, compound interest and penalty interest as well as legal fares, costs of preservation, execution
fees, lawyer’s fees, travel expenses according to the Contract and relevant loan certificates. Borrower hereby irrevocably
authorizes Lender to make deduction deduct according to Clause 2.5.

 

4.3 Borrower shall utilize
loan without occupation and appropriation according to provisions hereto.

 

4.4 Borrower shall provide
to Lender authentic, complete financial reports and other materials, information and actively cooperate with Lender for check of
operation, financial operation, and stock commodities according to provisions hereto.

    	7

    	 

    

 

4.5 Borrower shall notice
Lender in writing 30 days in advance, identify the liability of repayment or make repayment in advance, and obtain a written consent
from Lender before conducting activities such as contracting, renting, reform of shareholding, joint operation, merging, separating,
joint venture, reducing capital, transferring assets, investing abroad, substantially increasing debt financing or applying to
cease business, dismissal, bankruptcy and other activities influential enough to alter debtor-creditor relationship or the realization
of Lender’s credit rights. Otherwise, Borrower shall not conduct activities above.

 

4.6 Borrower shall notice
Lender in writing within three days and provide repayment measures in case of any matter other than those mentioned above that
poses a threat to normal operation or seriously and adversely affects Borrower’s capacity to fulfill the repayment obligation
under the contract, including but not limited to all cases in Clause 2.3 hereto.

 

4.7 Before paying off the
debts under the Contract, Borrower shall notice Lender in writing and get Lender’s written consent before providing guarantee
for a third party’s debt or use its main property to set mortgage, pledge guarantee that may influence Borrower’s capacity
to repay debts hereto.

 

4.8 Borrower shall not
surreptitiously withdraw or transfer funds or sell properties at low price or as present or transfer shares without authorizations
to evade Lender’s debts or weaken its capacity to repay debts.

 

4.9 In case that Borrower
alters its name, legal representative, legal address, range of operation, contact way, contact number and so forth, Borrower shall
send a notice in written and documentary evidence concerning alteration authorized by competent authorities to Lender within 5
days after the alternation. Otherwise, all responsibilities and consequences thereof shall be undertaken by Borrower.

 

4.10 Borrower shall provide
other guaranteeing measures approved by Lender within ten days in case that production stop, shutdown, cancellation or revoking
of registration, bankruptcy, or loss in operation of the Guarantor under the contact causes loss of the guaranteeing capability
for the debt under the Contract in part or in full or the value of the collateral used for guarantee under the Contract declines
or is involved in a dispute of ownership.

 

4.11 Borrower is obliged
to cooperate with Lender to check account.

 

4.12 Borrower shall undertake
fares of lawyer service, insurance, transportation, assessment, registration, custody, verification, notarization, drawing, guarantee
according to this contract and provisions hereto.

 

4.13 Borrower shall immediately
sign for debt collection letter or documents of debt collection from Lender directly or by mail, and give the receipt to Lender
or resend the receipt to Lender within three days after sign-off.

 

Article Five Guarantee of Loan

 

The guarantee type for
the loan of this contract shall be Guarantee and Pledge, and guarantee contract shall be signed up separately. The contract
numbers are  0530213720148013, 0530213720148014, 053022720148002.

 

    	8

    	 

    

 

Article Six Default Liability

 

6.1 After the Contract
cames into force, Parties hereto shall fulfill the obligations and promises in provisions hereto. Any party fails to fulfill the
obligations and promises in provisions hereto in part or in full shall undertake the default liability and compensate for the other
party.

 

6.2 Lender shall compensate
the damage caused by Lender’s default, to the extent of direct damage, excluding indirect damage and expected damage.

 

6.3 In case that loan
expires (including being declared to expire in advance) and Borrower fails to repay principal of loan in accordance with provisions
hereto, Lender shall add extra interest rate amounting to 50 % of the loan rate agreed in the Contract for penalty over
the actual days after the expiry date on the unpaid loan.

 

6.4 In case that Borrower
fails to utilize loan on intended purpose, Lender shall be entitled to add extra interest rate amounting to 80 % of the
loan rate agreed in the Contract for penalty over the actual days after the date that Borrower uses the loan in a way breaching
the Contract for the loan used therewith. 

 

6.5 In case that Borrower
fails to repay the due interest, Lender shall be entitled to add compound interest. In period of loan, compound interest shall
be added according to the rate and settlement under the Contract. In case that Borrower fails to repay the due interest after the
expiry date or to use the loan on intended purpose, the compound interest shall be calculated and added according to relevant rate
and settlement corresponding to interest rate for penalty.

 

6.6 In case that readjustment
of loan interest rate occurs, interest rate for penalty shall be readjusted on the basis of loan interest rate hereto according
to Article 6.3 and Article 6.4 and conform to the loan interest rate, calculated by stages.

 

6.7 In case that Borrower
intentionally conceals fake materials, information relevant to crucial fact for formulating contract, Lender shall be entitled
to collect default penalty, amounting to 10% of the loan being released according to provisions hereto.

 

6.8 Borrower shall undertake
fares including but not limited to legal fare, arbitration fees, costs of preservation, execution fees, lawyer’s fare, travel
expenses and other fares to realize creditor’s rights during the process of Lender realizing its creditor’s rights.

 

6.9 In case that Borrower
violates obligations hereto or the guarantor under the Contract violates the obligations thereof, Borrower shall undertake default
liability hereto, and the Lender shall be entitled to recognize advanced expiry of credits with Lender, including but not limited
to loan, discount, bank acceptance bill, international trade financing, bank guarantee letter and so forth. Lender shall also
be entitled to take all measures regulated in Article 2.3 hereto.

 

    	9

    	 

    

 

Article Seven
Contract’s Coming into effect, Alteration, Assignment and rescission

 

7.1 The contract shall
go into effect after signed or sealed by responsible persons of Borrower and Lender. And it will be terminated on the day that
all debits under the Contract has been paid off.

 

7.2 With the permission
of Lender, Borrower can apply to repay in advance. At the same time, Lender shall be entitled to collect      /      
% of amount of money paid in advance as corresponding penalty.

 

7.3 In case that Borrower
request to renew loan time limit, Borrower shall send a written application and guarantee’s written consent for extended
guarantee to Lender seven days before the expiry date of the loan term. After Lender’s examination and singing a renewal
agreement, the loan under the Contract can be renewed.

 

7.4 After the Contract
comes into force, any party hereto shall not alter or cancel the Contract without authorization unless specified in the contract,
laws and regulations. In case that it is necessary to alter or cancel the contract, both Parties hereto shall negotiate and reach
an agreement in writing. Before the written agreement is reached, all terms herein are valid.

 

7.5 Lender may transfer
the right hereto to a third party without Borrower’s consent. The transferring notice thereof may be sent through a written
notice or published on open media as an announcement.

 

7.6 Borrower shall not
transfer any obligations under the Contract to a third party without Lender’s permission.

 

Article Eight Dispute
Settlement

 

8.1 Should any dispute happens in the process of performing the contract, all parties hereto shall resolve them
through consultations. If no settlement is reached, both parties hereto shall follow Measure (1) below:

(1) Both parties hereto
may file a lawsuit in the local People’s Court of the place where Lender is located.

(2) Both parties hereto
may file a lawsuit in the local People’s Court of the place the Contract is signed.

(3) Hand in to                       
Arbitration Commission for arbitration according to valid Arbitration regulations at that time.

8.2 During the consultation
or lawsuit, both Parties hereto shall continue to fulfill the obligations hereto not involved. Neither of party shall evade obligations
under the Contract by excuses of consultation and lawsuit.

 

Article Nine Other
Provisions

 

9.1 If part of terms under
provisions hereto becomes invalid or canceled, it shall not influence other term’s effect. Other terms are still valid.

 

9.2
Unless Borrower notices Lender in writing on alteration of address and contact way below, any notice sent by Lender shall be regarded
as being received after three days according to the address and contact way below. The notice sent on address and contact way
below shall be regarded as immediate arrival.

Borrower’s Tel. No.:
86232933  and Fax No.: 86232618 

Address:
Qingshi Industrial Zone of Ningbo Economic and Technological Development Zone

 

    	10

    	 

    

9.3 Headings hereto are only for referring
conveniently, not a part of contract. Any terms hereto shall not be interpreted, comprehended or effected and limited by headings.

 

9.4
Unless agreed under the Contract or specified in relevant laws and regulations, or expressly represented by the observant party
in writing, no action, omission, delay in action or other measures by the observant party shall be deemed as waiving any right
under the Contract in case Default Party violates or default any provisions and obligations under the Contract at any time.

 

9.5 In case that any party hereto requests
a notarization, representatives of both parties hereto shall apply to notarization institution and make it clear that the Contract
is enforceable. Borrower shall undertake notarial fees and acknowledge that the Contract is enforceable after notarization. If
Borrower fails to fulfill obligations under the Contract, Lender shall be legally apply to People’s Court with jurisdiction
for enforcement.

 

9.6 Lender shall undertake no responsibilities
in case that the Contract cannot be fully performed on account of alteration of laws, regulations and emergency measure.

 

9.7 Matters have not settled in this contract
shall be conducted according to relevant provisions of laws, regulations, People’s Bank of China, China Banking Regulatory
Commission and Lender.

 

9.8 Supplementary terms:

 

 

 

 

Article Ten This contract shall be made
in duplicate, having the same legal effect.

 

Article Eleven This contract, supplemental
agreements, certificates, Borrower’s promises, entrusting letters of payment constitute the complete contract, of which parts
above may be formulated in paper, electronic manuscript and other ways authorized by Lender.

 

Article Twelve Presentments and Statements

 

Lender has required
Borrower to fully and completely understood the terms hereto, particularly the terms in bold and made explanation for corresponding
terms as required by Borrower. Parties signing contract have fully and completely understood the meanings and legal consequences
of terms hereto.

 

Borrower hereby declares
that the terms involving Borrower’s obligations and disadvantages have been noticed and accepted.

(The Remainder of this Page Intentionally
Left Blank)

 

    	11

    	 

    

 

 

Page of Signatures and seals for Circulating
Fund Loan Contract:

 

	 	 

 

 

 

 

	
        Lender (common seal/special contract seal):

         
	
        Borrower (common seal):

        

	 	 
	Legal Representative (Person in Charge)	Legal Representative
	
        Authorized Agent:

         
	Authorized Agent:

 

 

 

 

 

Date of signing: August 28th, 2014

Place of signing: Bank of Ningbo

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