Document:

Exhibit 4.1

 

 

ADITX THERAPEUTICS, INC.

 

2017 EQUITY INCENTIVE PLAN

 

 

Established October 6, 2017

 

Ratified by Shareholder’s
on October 6, 2017

 

Amended and Restated December 21, 2018
and Ratified on December 21, 2019

 

     

     

    

 

ADITX THERAPEUTICS, INC.

 

2017 EQUITY INCENTIVE PLAN

 

1. 
Purpose. The purpose of the ADiTx Therapeutics, Inc. 2017 Equity Incentive Plan is to provide a means through which
the Company and its Affiliates may attract and retain key personnel and to provide a means whereby directors, officers, managers,
employees, consultants and advisors (and prospective directors, officers, managers, employees, consultants and advisors) of the
Company and its Affiliates can acquire and maintain an equity interest in the Company, or be paid incentive compensation, which
may (but need not) be measured by reference to the value of Common Shares, thereby strengthening their commitment to the welfare
of the Company and its Affiliates and aligning their interests with those of the Company’s stockholders.

 

 2. Definitions. The following definitions shall be applicable throughout this Plan:

 

(a) 
“Affiliate” means (i) any person or entity that directly or indirectly controls, is controlled by or
is under common control with the Company and/or (ii) to the extent provided by the Committee, any person or entity in which the
Company has a significant interest as determined by the Committee in its discretion. The term “control” (including,
with correlative meaning, the terms “controlled by” and “under common control with”), as applied to any
person or entity, means the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of such person or entity, whether through the ownership of voting or other securities, by contract or otherwise.

 

(b) 
“Award” means, individually or collectively, any Incentive Stock Option, Nonqualified Stock Option, Stock
Appreciation Right, Restricted Stock, Restricted Stock Unit, Stock Bonus Award and Performance Compensation Award granted under
this Plan.

 

(c) 
“Award Agreement” means an agreement made and delivered in accordance with Section 15(a) of this Agreement
evidencing the grant of an Award hereunder.

 

 (d) “Board” means the Board of Directors of the Company.

 

(e) 
“Business Combination” has the meaning given such term in the definition of “Change in Control.”

 

(f)  “Business Day” means any day other than a Saturday, a Sunday or a day on which banking institutions in
New York City are authorized or obligated by federal law or executive order to be closed.

 

(g) 
“Cause” means, in the case of a particular Award, unless the applicable Award Agreement states otherwise,
(i) the Company or an Affiliate having “cause” to terminate a Participant’s employment or service, as defined
in any employment or consulting agreement or similar document or policy between the Participant and the Company or an Affiliate
in effect at the time of such termination or (ii) in the absence of any such employment or consulting agreement, document or policy
(or the absence of any definition of “Cause” contained therein),

 

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(A)  a continuing
material breach or material default (including, without limitation, any material dereliction of duty) by Participant of any agreement
between the Participant and the Company, except for any such breach or default which is caused by the physical disability of the
Participant (as determined by a neutral physician), or a continuing failure by the Participant to follow the direction of a duly
authorized representative of the Company; (B) gross negligence, willful misfeasance or breach of fiduciary duty by the Participant;
(C ) the commission by the Participant of an act of fraud, embezzlement or any felony or other crime of dishonesty in connection
with the Participant’s duties; or (D) conviction of the Participant of a felony or any other crime that would materially
and adversely affect: (i) the business reputation of the Company or (ii) the performance of the Participant’s duties to the
Company. Any determination of whether Cause exists shall be made by the Committee in its sole discretion.

 

(h) 
“Change in Control” shall, in the case of a particular Award, unless the applicable Award Agreement states
otherwise or contains a different definition of “Change in Control,” be deemed to occur upon:

 

(i) 
An acquisition (whether directly from the Company or otherwise) of any voting securities of the Company (the “Voting
Securities”) by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the
Securities and Exchange Act of 1934, as amended (the “Exchange Act”)), immediately after which such Person
has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than fifty
percent (50%) of the combined voting power of the Company’s then outstanding Voting Securities.

 

(ii) 
The individuals who constitute the members of the Board cease, by reason of a financing, merger, combination, acquisition, takeover
or other non-ordinary course transaction affecting the Company, to constitute at least fifty-one percent (51%) of the members of
the Board; or

 

(iii) 
Approval by the Board and, if required, stockholders of the Company of, or execution by the Company of any definitive agreement
with respect to, or the consummation of (it being understood that the mere execution of a term sheet, memorandum of understanding
or other non-binding document shall not constitute a Change of Control):

 

(A) 
A merger, consolidation or reorganization involving the Company, where either or both of the events described in clauses (i) or
(ii) above would be the result;

 

(B) 
A liquidation or dissolution of or appointment of a receiver, rehabilitator, conservator or similar person for, or the filing by
a third party of an involuntary bankruptcy against, the Company; provided, however, that to the extent necessary to comply with
Section 409A of the Code, the occurrence of an event described in this subsection (B) shall not permit the settlement of Restricted
Stock Units granted under this Plan; or

 

(C) 
An agreement for the sale or other disposition of all or substantially all of the assets of the Company to any Person (other than
a transfer to a subsidiary of the Company).

 

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(i) 
“Code” means the Internal Revenue Code of 1986, as amended, and any successor thereto. References in
this Plan to any section of the Code shall be deemed to include any regulations or other interpretative guidance under such section,
and any amendments or successor provisions to such section, regulations or guidance.

 

(j) 
“Committee” means a committee of at least two people as the Board may appoint to administer this Plan
or, if no such committee has been appointed by the Board, the Board. Unless altered by an action of the Board, the Committee shall
be the Compensation Committee of the Board.

 

(k) 
“Common Shares” means the common stock, par value $0.001 per share, of the Company (and any stock or
other securities into which such common shares may be converted or into which they may be exchanged).

 

(l) 
“Company” means ADiTx Therapeutics, Inc., a Delaware corporation, together with its successors and assigns.

 

(m)  “Date of Grant” means the date on which the granting of an Award is authorized, or such other date as
may be specified in such authorization.

 

(n) 
“Disability” means a “permanent and total” disability incurred by a Participant while in
the employ of the Company or an Affiliate. For this purpose, a permanent and total disability shall mean that the Participant is
unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that
can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.

 

(o) 
“Effective Date” means the date as of which this Plan is adopted by the Board, subject to Section 3 of
this Plan.

 

(p) 
“Eligible Director” means a person who is (i) a “non-employee director” within the meaning
of Rule 16b-3 under the Exchange Act, and (ii) an “outside director” within the meaning of Section 162(m) of the Code.

 

(q) 
“Eligible Person” means any (i) individual employed by the Company or an Affiliate; provided, however,
that no such employee covered by a collective bargaining agreement shall be an Eligible Person unless and to the extent that such
eligibility is set forth in such collective bargaining agreement or in an agreement or instrument relating thereto; (ii) director
of the Company or an Affiliate; (iii) consultant or advisor to the Company or an Affiliate, provided that if the Securities Act
applies such persons must be eligible to be offered securities registrable on Form S-8 under the Securities Act; or (iv) prospective
employees, directors, officers, consultants or advisors who have accepted offers of employment or consultancy from the Company
or its Affiliates (and would satisfy the provisions of clauses (i) through (iii) above once he or she begins employment with or
begins providing services to the Company or its Affiliates).

 

(r)  “Exchange Act” has the meaning given such term in the definition of “Change in
Control,” and any reference in this Plan to any section of (or rule promulgated under) the Exchange Act shall be deemed
to include any rules, regulations or other interpretative guidance under such section or rule, and any amendments or
successor provisions to such section, rules, regulations or guidance.

 

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(s)  “Exercise
Price” has the meaning given such term in Section 7(b) of this Plan.

 

(t) 
“Fair Market Value”, unless otherwise provided by the Committee in accordance with all applicable laws,
rules regulations and standards, means, on a given date, (i) if the Stock is listed on a securities exchange, the closing sales
price on the principal such exchange on such date or, in the absence of reported sales on such date, the closing sales price on
the immediately preceding date on which sales were reported, or (ii) if the Stock is not listed on a securities exchange, the mean
between the bid and offered prices as quoted by the applicable interdealer quotation system for such date, provided that if the
Stock is not quoted on an interdealer quotation system or it is determined that the fair market value is not properly reflected
by such quotations, Fair Market Value will be determined by such other method as the Committee determines in good faith to be reasonable
and in compliance with Code Section 409A.

 

(u) 
“Immediate Family Members” shall have the meaning set forth in Section 15(b) of this Plan.

 

(v) 
“Incentive Stock Option” means an Option that is designated by the Committee as an incentive stock option
as described in Section 422 of the Code and otherwise meets the requirements set forth in this Plan.

 

(w) “Indemnifiable
Person” shall have the meaning set forth in Section 4(e) of this Plan.

 

(x) 
“Mature Shares” means Common Shares owned by a Participant that are not subject to any pledge or security
interest and that have been either previously acquired by the Participant on the open market or meet such other requirements, if
any, as the Committee may determine are necessary in order to avoid an accounting earnings charge on account of the use of such
shares to pay the Exercise Price or satisfy a withholding obligation of the Participant.

 

(y) 
“Negative Discretion” shall mean the discretion authorized by this Plan to be applied by the Committee
to eliminate or reduce the size of a Performance Compensation Award consistent with Section 162(m) of the Code.

 

(z) 
“Nonqualified Stock Option” means an Option that is not designated by the Committee as an Incentive Stock
Option.

 

 (aa) “Option” means an Award granted under Section 7 of this Plan.

 

(bb) “Option Period”
has the meaning given such term in Section 7(c) of this Plan.

 

(cc) 
“Participant” means an Eligible Person who has been selected by the Committee to participate in this
Plan and to receive an Award pursuant to Section 6 of this Plan.

 

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(dd) 
“Performance Compensation Award” shall mean any Award designated by the Committee as a Performance Compensation
Award pursuant to Section 11 of this Plan.

 

(ee) 
“Performance Criteria” shall mean the criterion or criteria that the Committee shall select for purposes
of establishing the Performance Goal(s) for a Performance Period with respect to any Performance Compensation Award under this
Plan.

 

(ff) 
“Performance Formula” shall mean, for a Performance Period, the one or more objective formulae applied
against the relevant Performance Goal to determine, with regard to the Performance Compensation Award of a particular Participant,
whether all, some portion but less than all, or none of the Performance Compensation Award has been earned for the Performance
Period.

 

(gg) 
“Performance Goals” shall mean, for a Performance Period, the one or more goals established by the Committee
for the Performance Period based upon the Performance Criteria.

 

(hh) 
“Performance Period” shall mean the one or more periods of time, as the Committee may select, over which
the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant’s right to,
and the payment of, a Performance Compensation Award.

 

(ii) “Permitted
Transferee” shall have the meaning set forth in Section 15(b) of this Plan.

 

(jj) “Person”
has the meaning given such term in the definition of “Change in Control.”

 

(kk) 
“Plan” means this ADiTx Therapeutics, Inc. 2017 Equity Incentive Plan, as amended from time to time.

 

(ll) 
“Retirement” means the fulfillment of each of the following conditions: (i) the Participant is good standing
with the Company as determined by the Committee; (ii) the voluntary termination by a Participant of such Participant’s employment
or service to the Company and (B) that at the time of such voluntary termination, the sum of: (1) the Participant’s age (calculated
to the nearest month, with any resulting fraction of a year being calculated as the number of months in the year divided by 12)
and (2) the Participant’s years of employment or service with the Company (calculated to the nearest month, with any resulting
fraction of a year being calculated as the number of months in the year divided by 12) equals at least 62 (provided that, in any
case, the foregoing shall only be applicable if, at the time of Retirement, the Participant shall be at least 55 years of age and
shall have been employed by or served with the Company for no less than 5 years).

 

(mm) “Restricted Period” means the period of time determined by the Committee during which an Award is subject
to restrictions or, as applicable, the period of time within which performance is measured for purposes of determining whether
an Award has been earned.

 

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(nn) 
“Restricted Stock Unit” means an unfunded and unsecured promise to deliver Common Shares, cash, other
securities or other property, subject to certain restrictions (including, without limitation, a requirement that the Participant
remain continuously employed or provide continuous services for a specified period of time), granted under Section 9 of this Plan.

 

(oo) 
“Restricted Stock” means Common Shares, subject to certain specified restrictions (including, without
limitation, a requirement that the Participant remain continuously employed or provide continuous services for a specified period
of time), granted under Section 9 of this Plan.

 

 (pp) “SAR Period” has the meaning given such term in Section 8(c) of this Plan.

 

(qq) 
“Securities Act” means the Securities Act of 1933, as amended, and any successor thereto. Reference in
this Plan to any section of the Securities Act shall be deemed to include any rules, regulations or other official interpretative
guidance under such section, and any amendments or successor provisions to such section, rules, regulations or guidance.

 

(rr) 
“Stock Appreciation Right” or “SAR” means an Award granted under Section 8
of this Plan which meets all of the requirements of Section 1.409A-1(b)(5)(i)(B) of the Treasury Regulations.

 

(ss) “Stock
Bonus Award” means an Award granted under Section 10 of this Plan.

 

(tt) 
“Strike Price” means, except as otherwise provided by the Committee in the case of Substitute Awards,
(i) in the case of a SAR granted in tandem with an Option, the Exercise Price of the related Option, or (ii) in the case of a SAR
granted independent of an Option, the Fair Market Value on the Date of Grant.

 

 (uu) “Subsidiary” means, with respect to any specified Person:

 

(i) 
any corporation, association or other business entity of which more than 50% of the total voting power of shares of outstanding
Company voting securities (without regard to the occurrence of any contingency and after giving effect to any voting agreement
or stockholders’ agreement that effectively transfers voting power) is at the time owned or controlled, directly or indirectly,
by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and

 

(ii) 
any partnership or limited liability company (or any comparable foreign entity) (a) the sole general partner or managing member
(or functional equivalent thereof) or the managing general partner of which is such Person or Subsidiary of such Person or (b)
the only general partners or managing members (or functional equivalents thereof) of which are that Person or one or more Subsidiaries
of that Person (or any combination thereof).

 

 (vv) “Substitute Award” has the meaning given such term in Section 5(e).

 

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(ww)  “Treasury Regulations” means any regulations, whether proposed, temporary or final, promulgated by the
U.S. Department of Treasury under the Code, and any successor provisions.

 

3. 
Effective Date; Duration. The Plan shall be effective as of October 6, 2017, 2017 (the “Effective Date”),
but no Award shall be exercised or paid (or, in the case of a stock Award, shall be granted unless contingent on stockholder approval)
unless and until this Plan has been approved by the stockholders of the Company, which approval shall be within twelve (12) months
after the date this Plan is adopted by the Board. The expiration date of this Plan, on and after which date no Awards may be granted
hereunder, shall be the tenth anniversary of the Effective Date; provided, however, that such expiration shall not affect
Awards then outstanding, and the terms and conditions of this Plan shall continue to apply to such Awards.

 

 4. Administration.

 

(a) 
The Committee shall administer this Plan. To the extent required to comply with the provisions of Rule 16b-3 promulgated under
the Exchange Act (if the Board is not acting as the Committee under this Plan) or necessary to obtain the exception for performance-based
compensation under Section 162(m) of the Code, as applicable, it is intended that each member of the Committee shall, at the time
he takes any action with respect to an Award under this Plan, be an Eligible Director. However, the fact that a Committee member
shall fail to qualify as an Eligible Director shall not invalidate any Award granted by the Committee that is otherwise validly
granted under this Plan. The acts of a majority of the members present at any meeting at which a quorum is present or acts approved
in writing by a majority of the Committee shall be deemed the acts of the Committee. Whether a quorum is present shall be determined
based on the Committee’s charter as approved by the Board.

 

(b) Subject to the
provisions of this Plan and applicable law, the Committee shall have the sole and plenary authority, in addition to other
express powers and authorizations conferred on the Committee by this Plan and its charter, to: (i) designate Participants;
(ii)  determine the type or types of Awards to be granted to a Participant; (iii) determine the number of Common Shares
to be covered by, or with respect to which payments, rights, or other matters are to be calculated in connection with,
Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and under what
circumstances Awards may be settled or exercised in cash, Common Shares, other securities, other Awards or other property, or
canceled, forfeited, or suspended and the method or methods by which Awards may be settled, exercised, canceled, forfeited,
or suspended; (vi) determine whether, to what extent, and under what circumstances the delivery of cash, Common Shares, other
securities, other Awards or other property and other amounts payable with respect to an Award; (vii) interpret, administer,
reconcile any inconsistency in, settle any controversy regarding, correct any defect in and/or complete any omission in this
Plan and any instrument or agreement relating to, or Award granted under, this Plan; (viii) establish, amend, suspend, or
waive any rules and regulations and appoint such agents as the Committee shall deem appropriate for the proper administration
of this Plan; (ix) accelerate the vesting or exercisability of, payment for, or lapse of restrictions on, Awards; and (x)
make any other determination and take any other action that the Committee deems necessary or desirable for the administration
of this Plan.

 

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(c) 
The Committee may delegate to one or more officers of the Company or any Affiliate the authority to act on behalf of the Committee
with respect to any matter, right, obligation, or election that is the responsibility of or that is allocated to the Committee
herein, and that may be so delegated as a matter of law, except for grants of Awards to persons (i) subject to Section 16 of the
Exchange Act or (ii) who are, or who are reasonably expected to be, “covered employees” for purposes of Section 162(m)
of the Code.

 

(d) 
Unless otherwise expressly provided in this Plan, all designations, determinations, interpretations, and other decisions under
or with respect to this Plan or any Award or any documents evidencing Awards granted pursuant to this Plan shall be within the
sole discretion of the Committee, may be made at any time and shall be final, conclusive and binding upon all persons or entities,
including, without limitation, the Company, any Affiliate, any Participant, any holder or beneficiary of any Award, and any stockholder
of the Company.

 

(e) 
No member of the Board, the Committee, delegate of the Committee or any employee, advisor or agent of the Company or the Board
or the Committee (each such person, an “Indemnifiable Person”) shall be liable for any action taken or
omitted to be taken or any determination made in good faith with respect to this Plan or any Award hereunder. Each Indemnifiable
Person shall be indemnified and held harmless by the Company against and from (and the Company shall pay or reimburse on demand
for) any loss, cost, liability, or expense (including attorneys’ fees) that may be imposed upon or incurred by such Indemnifiable
Person in connection with or resulting from any action, suit or proceeding to which such Indemnifiable Person may be a party or
in which such Indemnifiable Person may be involved by reason of any action taken or omitted to be taken under this Plan or any
Award Agreement and against and from any and all amounts paid by such Indemnifiable Person with the Company’s approval, in
settlement thereof, or paid by such Indemnifiable Person in satisfaction of any judgment in any such action, suit or proceeding
against such Indemnifiable Person, provided, that the Company shall have the right, at its own expense, to assume and defend
any such action, suit or proceeding and once the Company gives notice of its intent to assume the defense, the Company shall have
sole control over such defense with counsel of the Company’s choice. The foregoing right of indemnification shall not be
available to an Indemnifiable Person to the extent that a final judgment or other final adjudication (in either case not subject
to further appeal) binding upon such Indemnifiable Person determines that the acts or omissions of such Indemnifiable Person giving
rise to the indemnification claim resulted from such Indemnifiable Person’s bad faith, fraud or willful criminal act or omission
or that such right of indemnification is otherwise prohibited by law or by the Company’s Certificate of Incorporation or
Bylaws. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such Indemnifiable
Persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or
any other power that the Company may have to indemnify such Indemnifiable Persons or hold them harmless.

 

(f) 
Notwithstanding anything to the contrary contained in this Plan, the Board may, in its sole discretion, at any time and from time
to time, grant Awards and administer this Plan with respect to such Awards. In any such case, the Board shall have all the authority
granted to the Committee under this Plan.

 

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 5. Grant of Awards; Shares Subject to this Plan; Limitations.

 

(a) 
The Committee may, from time to time, grant Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Stock
Bonus Awards and/or Performance Compensation Awards to one or more Eligible Persons.

 

(b) 
Subject to Section 12 of this Plan, the Committee is authorized to deliver under this Plan an aggregate of 5,000,000 Common Shares.

 

(c) 
Common Shares underlying Awards under this Plan that are forfeited, cancelled, expire unexercised, or are settled in cash shall
be available again for Awards under this Plan at the same ratio at which they were previously granted. Notwithstanding the foregoing,
the following Common Shares shall not be available again for Awards under the Plan: (i) shares tendered or held back upon the exercise
of an Option or settlement of an Award to cover the Exercise Price of an Award; (ii) shares that are used or withheld to satisfy
tax obligations of the Participant; and (iii) shares subject to a Stock Appreciation Right that are not issued in connection with
the stock settlement of the SAR upon exercise thereof.

 

(d) 
Common Shares delivered by the Company in settlement of Awards may be authorized and unissued shares, shares held in the treasury
of the Company, shares purchased on the open market or by private purchase, or a combination of the foregoing.

 

(e) 
Subject to compliance with Section 1.409A-3(f) of the Treasury Regulations, Awards may, in the sole discretion of the Committee,
be granted under this Plan in assumption of, or in substitution for, outstanding awards previously granted by an entity acquired
by the Company or with which the Company combines (“Substitute Awards”). The number of Common Shares
underlying any Substitute Awards shall be counted against the aggregate number of Common Shares available for Awards under this
Plan.

 

(f) 
Notwithstanding any provision in the Plan to the contrary (but subject to adjustment as provided in Section 12), the Committee
shall not grant to any one Eligible Person in any one calendar year Awards for more than 120,000 Common Shares in the aggregate
without approval of the full Board.

 

6. 
Eligibility. Participation shall be limited to Eligible Persons who have entered into an Award Agreement or who have
received written notification from the Committee, or from a person designated by the Committee, that they have been selected to
participate in this Plan.

 

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 7. Options.

 

(a)  Generally.
Each Option granted under this Plan shall be evidenced by an Award Agreement (whether in paper or electronic medium
(including email or the posting on a web site maintained by the Company or a third party under contract with the Company)).
Each Option so granted shall be subject to the conditions set forth in this Section 7, and to such other conditions not
inconsistent with this Plan as may be reflected in the applicable Award Agreement. All Options granted under this Plan shall
be Nonqualified Stock Options unless the applicable Award Agreement expressly states that the Option is intended to be an
Incentive Stock Option. Notwithstanding any designation of an Option, to the extent that the aggregate Fair Market Value of
Common Shares with respect to which Options designated as Incentive Stock Options are exercisable for the first time by any
Participant during any calendar year (under all plans of the Company or any Subsidiary) exceeds $100,000, such excess Options
shall be treated as Nonqualified Stock Options. Incentive Stock Options shall be granted only to Eligible Persons who are
employees of the Company and its Affiliates, and no Incentive Stock Option shall be granted to any Eligible Person who is
ineligible to receive an Incentive Stock Option under the Code. No Option shall be treated as an Incentive Stock Option
unless this Plan has been approved by the stockholders of the Company in a manner intended to comply with the stockholder
approval requirements of Section 422(b)(1) of the Code, provided that any Option intended to be an Incentive Stock Option
shall not fail to be effective solely on account of a failure to obtain such approval, but rather such Option shall be
treated as a Nonqualified Stock Option unless and until such approval is obtained. In the case of an Incentive Stock Option,
the terms and conditions of such grant shall be subject to and comply with such rules as may be prescribed by Section 422 of
the Code. If for any reason an Option intended to be an Incentive Stock Option (or any portion thereof) shall not qualify as
an Incentive Stock Option, then, to the extent of such nonqualification, such Option or portion thereof shall be regarded as
a Nonqualified Stock Option appropriately granted under this Plan.

 

(b) 
Exercise Price. The exercise price (“Exercise Price”) per Common Share for each Option
shall not be less than 100% of the Fair Market Value of such share determined as of the Date of Grant; provided, however,
that in the case of an Incentive Stock Option granted to an employee who, at the time of the grant of such Option, owns shares
representing more than 10% of the voting power of all classes of shares of the Company or any Affiliate, the Exercise Price per
share shall not be less than 110% of the Fair Market Value per share on the Date of Grant; and, provided further, that notwithstanding
any provision herein to the contrary, the Exercise Price shall not be less than the par value per Common Share.

 

(c) 
Vesting and Expiration. Unless otherwise provided by the Committee in an Award Agreement, Options shall vest and
become exercisable in such manner and on such date or dates determined by the Committee and as set forth in the applicable Award
Agreement, and shall expire after such period, not to exceed ten (10) years from the Date of Grant, as may be determined by the
Committee (the “Option Period”); provided, however, that the Option Period shall not exceed five
(5) years from the Date of Grant in the case of an Incentive Stock Option granted to a Participant who on the Date of Grant owns
shares representing more than 10% of the voting power of all classes of shares of the Company or any Affiliate; and, provided,
further, that notwithstanding any vesting dates set by the Committee, the Committee may, in its sole discretion, accelerate
the exercisability of any Option, which acceleration shall not affect the terms and conditions of such Option other than with respect
to exercisability:

 

(i) 
an Option shall vest and become exercisable with respect to 100% of the Common Shares subject to such Option on the third (3rd)
anniversary of the Date of Grant;

 

(ii) 
the unvested portion of an Option shall expire upon termination of employment or service of the Participant granted the Option,
and the vested portion of such Option shall remain exercisable for:

 

(A) 
five years following termination of employment or service by reason of such Participant’s death or Disability (with the determination
of Disability to be made by the Committee on a case by case basis), but not later than the expiration of the Option Period;

 

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(B) 
for directors, officers and employees of the Company only, five years following termination of employment or service by reason
of such Participant’s Retirement, but not later than the expiration of the Option Period, (it being understood that any Incentive
Stock Option held by the Participant shall be treated as a Nonqualified Stock Option if exercise is not undertaken within 90 days
of the date of Retirement);

 

(C) five years
following the resignation of employment or service by the Participant, but not later than the expiration of the Option
Period;

 

(D) 
five years following termination of employment or service for any reason other than such Participant’s death, Disability,
resignation, or Retirement, and other than such Participant’s termination of employment or service for Cause, but not later
than the expiration of the Option Period; and

 

(E) three years
following termination of employment or service for Cause, but not later than the expiration of the Option Period.

 

(d) 
Method of Exercise and Form of Payment. No Common Shares shall be delivered pursuant to any exercise of an Option
until payment in full of the Exercise Price therefor is received by the Company and the Participant has paid to the Company an
amount equal to any federal, state, local and non-U.S. income and employment taxes required to be withheld. Options that have become
exercisable may be exercised by delivery of written or electronic notice of exercise to the Company accompanied by payment of the
Exercise Price. The Exercise Price shall be payable (i) in cash, check (subject to collection), cash equivalent and/or vested Common
Shares valued at the Fair Market Value at the time the Option is exercised (including, pursuant to procedures approved by the Committee,
by means of attestation of ownership of a sufficient number of Common Shares in lieu of actual delivery of such shares to the Company);
provided, however, that such Common Shares are not subject to any pledge or other security interest and are Mature Shares
and; (ii) by such other method as the Committee may permit in accordance with applicable law, in its sole discretion, including
without limitation: (A) in other property having a fair market value (as determined by the Committee in its discretion) on the
date of exercise equal to the Exercise Price or (B) if there is a public market for the Common Shares at such time, by means of
a broker-assisted “cashless exercise” pursuant to which the Company is delivered a copy of irrevocable instructions
to a stockbroker to sell the Common Shares otherwise deliverable upon the exercise of the Option and to deliver promptly to the
Company an amount equal to the Exercise Price or (C) by a “net exercise” method whereby the Company withholds from
the delivery of the Common Shares for which the Option was exercised that number of Common Shares having a Fair Market Value equal
to the aggregate Exercise Price for the Common Shares for which the Option was exercised. Any fractional Common Shares shall be
settled in cash. The payment to be made by the Participant for any federal, state, local and non-U.S. income and employment taxes
required to be withheld shall be paid in the form provided for in Section 15 of this agreement.

 

(e)  Notification
upon Disqualifying Disposition of an Incentive Stock Option. Each Participant awarded an Incentive Stock Option under
this Plan shall notify the Company in writing immediately after the date he makes a disqualifying disposition of any Common
Shares acquired pursuant to the exercise of such Incentive Stock Option. A disqualifying disposition is any disposition
(including, without limitation, any sale) of such Common Shares before the later of (A) two years after the Date of Grant of
the Incentive Stock Option or (B) one year after the date of exercise of the Incentive Stock Option. The Company may, if
determined by the Committee and in accordance with procedures established by the Committee, retain possession of any Common
Shares acquired pursuant to the exercise of an Incentive Stock Option as agent for the applicable Participant until the end
of the period described in the preceding sentence.

 

    12

     

    

 

(f)
Compliance with Laws, etc. Notwithstanding the foregoing, in no event shall a Participant be permitted to exercise
an Option in a manner that the Committee determines would violate the Sarbanes-Oxley Act of 2002, if applicable, or any other applicable
law or the applicable rules and regulations of the Securities and Exchange Commission or the applicable rules and regulations of
any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or traded.

 

 8. Stock Appreciation Rights.

 

(a) 
Generally. Each SAR granted under this Plan shall be evidenced by an Award Agreement (whether in paper or electronic
medium (including email or the posting on a web site maintained by the Company or a third party under contract with the Company)).
Each SAR so granted shall be subject to the conditions set forth in this Section 8, and to such other conditions not inconsistent
with this Plan as may be reflected in the applicable Award Agreement. Any Option granted under this Plan may include tandem SARs.
The Committee also may award SARs to Eligible Persons independent of any Option.

 

(b) 
Exercise Price. The Exercise Price per Common Share for each Option shall not be less than 100% of the Fair Market
Value of such share determined as of the Date of Grant.

 

(c) 
Vesting and Expiration. Unless otherwise provided by the Committee in an Award Agreement, a SAR granted in connection
with an Option shall become exercisable and shall expire according to the same vesting schedule and expiration provisions as the
corresponding Option. A SAR granted independent of an Option shall vest and become exercisable and shall expire in such manner
and on such date or dates determined by the Committee and shall expire after such period, not to exceed ten years, as may be determined
by the Committee (the “SAR Period”); provided, however, that notwithstanding any vesting dates
set by the Committee, the Committee may, in its sole discretion, accelerate the exercisability of any SAR, which acceleration shall
not affect the terms and conditions of such SAR other than with respect to exercisability:

 

(i) 
a SAR shall vest and become exercisable with respect to 100% of the Common Shares subject to such SAR on the third anniversary
of the Date of Grant;

 

(ii) 
the unvested portion of a SAR shall expire upon termination of employment or service of the Participant granted the SAR, and the
vested portion of such SAR shall remain exercisable for:

 

(A) 
five years following termination of employment or service by reason of such Participant’s death or Disability (with the determination
of Disability to be made by the Committee on a case by case basis), but not later than the expiration of the SAR Period;

 

    13

     

    

 

(B) 
for directors, officers and employees of the Company only, five years following termination of employment or service by reason
of such Participant’s Retirement;

 

(C) five years
following the resignation of employment or service by the Participant, but not later than the expiration of the SAR
Period;

 

(D) 
five years following termination of employment or service for any reason other than such Participant’s death, Disability,
resignation, or Retirement, and other than such Participant’s termination of employment or service for Cause, but not later
than the expiration of the SAR Period;

 

(E) three years
following termination of employment or service for Cause, but not later than the expiration of the SAR Period; and

 

(d) 
Method of Exercise. SARs that have become exercisable may be exercised by delivery of written or electronic notice
of exercise to the Company in accordance with the terms of the Award, specifying the number of SARs to be exercised and the date
on which such SARs were awarded. Notwithstanding the foregoing, if on the last day of the Option Period (or in the case of a SAR
independent of an option, the SAR Period), the Fair Market Value exceeds the Strike Price, the Participant has not exercised the
SAR or the corresponding Option (if applicable), and neither the SAR nor the corresponding Option (if applicable) has expired,
such SAR shall be deemed to have been exercised by the Participant on such last day and the Company shall make the appropriate
payment therefor.

 

(e) 
Payment. Upon the exercise of a SAR, the Company shall pay to the Participant an amount equal to the number of shares
subject to the SAR that are being exercised multiplied by the excess, if any, of the Fair Market Value of one Common Share on the
exercise date over the Strike Price, less an amount equal to any federal, state, local and non-U.S. income and employment taxes
required to be withheld. The Company shall pay such amount in cash, in Common Shares valued at fair market value, or any combination
thereof, as determined by the Committee. Any fractional Common Share shall be settled in cash.

 

 9. Restricted Stock and Restricted Stock Units.

 

(a) 
Generally. Each grant of Restricted Stock and Restricted Stock Units shall be evidenced by an Award Agreement (whether
in paper or electronic medium (including email or the posting on a web site maintained by the Company or a third party under contract
with the Company)). Each such grant shall be subject to the conditions set forth in this Section 9, and to such other conditions
not inconsistent with this Plan as may be reflected in the applicable Award Agreement.

 

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(b)  Restricted
Accounts; Escrow or Similar Arrangement. Upon the grant of Restricted Stock, a book entry in a restricted account
shall be established in the Participant’s name at the Company’s transfer agent and, if the Committee determines
that the Restricted Stock shall be held by the Company or in escrow rather than held in such restricted account pending the
release of the applicable restrictions, the Committee may require the Participant to additionally execute and deliver to the
Company (i) an escrow agreement satisfactory to the Committee, if applicable, and (ii) the appropriate share power (endorsed
in blank) with respect to the Restricted Stock covered by such agreement. If a Participant shall fail to execute an agreement
evidencing an Award of Restricted Stock and, if applicable, an escrow agreement and blank share power within the amount of
time specified by the Committee, the Award shall be null and void ab initio. Subject to the restrictions set forth in
this Section 9 and the applicable Award Agreement, the Participant generally shall have the rights and privileges of a
stockholder as to such Restricted Stock, including without limitation the right to vote such Restricted Stock and the right
to receive dividends, if applicable. To the extent shares of Restricted Stock are forfeited, any share certificates issued to
the Participant evidencing such shares shall be returned to the Company, and all rights of the Participant to such shares and
as a stockholder with respect thereto shall terminate without further obligation on the part of the Company.

 

(c) 
Vesting; Acceleration of Lapse of Restrictions. Unless otherwise provided by the Committee in an Award Agreement:
(i) the Restricted Period shall lapse with respect to 100% of the Restricted Stock and Restricted Stock Units on the third (3rd)
anniversary of the Date of Grant; and (ii) the unvested portion of Restricted Stock and Restricted Stock Units shall terminate
and be forfeited upon termination of employment or service of the Participant granted the applicable Award.

 

 (d) Delivery of Restricted Stock and Settlement of Restricted Stock Units.

 

(i)  Upon the
expiration of the Restricted Period with respect to any shares of Restricted Stock, the restrictions set forth in the applicable
shall be of no further force or effect with respect to such shares, except as set forth in the applicable Award Agreement. If an
escrow arrangement is used, upon such expiration, the Company shall deliver to the Participant, or his beneficiary, without charge,
the share certificate evidencing the shares of Restricted Stock that have not then been forfeited and with respect to which the
Restricted Period has expired (rounded down to the nearest full share). Dividends, if any, that may have been withheld by the Committee
and attributable to any particular share of Restricted Stock shall be distributed to the Participant in cash or, at the sole discretion
of the Committee, in shares of Common Stock having a Fair Market Value equal to the amount of such dividends, upon the release
of restrictions on such share and, if such share is forfeited, the Participant shall have no right to such dividends (except as
otherwise set forth by the Committee in the applicable Award Agreement).

 

(ii) 
Unless otherwise provided by the Committee in an Award Agreement, upon the expiration of the Restricted Period with respect
to any outstanding Restricted Stock Units, the Company shall deliver to the Participant, or his beneficiary, without charge,
one Common Share for each such outstanding Restricted Stock Unit; provided, however, that the Committee may, in its
sole discretion and subject to the requirements of Section 409A of the Code, elect to (i) pay cash or part cash and part
Common Share in lieu of delivering only Common Shares in respect of such Restricted Stock Units or (ii) defer the delivery of
Common Shares (or cash or part Common Shares and part cash, as the case may be) beyond the expiration of the Restricted
Period if such delivery would result in a violation of applicable law until such time as is no longer the case. If a cash
payment is made in lieu of delivering Common Shares, the amount of such payment shall be equal to the Fair Market Value of
the Common Shares as of the date on which the Restricted Period lapsed with respect to such Restricted Stock Units, less an
amount equal to any federal, state, local and non-U.S. income and employment taxes required to be withheld.

 

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10. 
Stock Bonus Awards. The Committee may issue unrestricted Common Shares, or other Awards denominated in Common Shares,
under this Plan to Eligible Persons, either alone or in tandem with other awards, in such amounts as the Committee shall from time
to time in its sole discretion determine. Each Stock Bonus Award granted under this Plan shall be evidenced by an Award Agreement
(whether in paper or electronic medium (including email or the posting on a web site maintained by the Company or a third party
under contract with the Company)). Each Stock Bonus Award so granted shall be subject to such conditions not inconsistent with
this Plan as may be reflected in the applicable Award Agreement.

 

 11. Performance Compensation Awards.

 

(a) 
Generally. The Committee shall have the authority, at the time of grant of any Award described in Sections 7 through
10 of this Plan, to designate such Award as a Performance Compensation Award intended to qualify as “performance-based compensation”
under Section 162(m) of the Code. The Committee shall have the authority to make an award of a cash bonus to any Participant and
designate such Award as a Performance Compensation Award intended to qualify as “performance-based compensation” under
Section 162(m) of the Code.

 

(b) 
Discretion of Committee with Respect to Performance Compensation Awards. With regard to a particular Performance
Period, the Committee shall have sole discretion to select the length of such Performance Period, the type(s) of Performance Compensation
Awards to be issued, the Performance Criteria that will be used to establish the Performance Goal(s), the kind(s) and/or level(s)
of the Performance Goals(s) that is (are) to apply and the Performance Formula. Within the first 90 calendar days of a Performance
Period (or, if longer or shorter, within the maximum period allowed under Section 162(m) of the Code, if applicable), the Committee
shall, with regard to the Performance Compensation Awards to be issued for such Performance Period, exercise its discretion with
respect to each of the matters enumerated in the immediately preceding sentence and record the same in writing.

 

(c)  Performance
Criteria. The Performance Criteria that will be used to establish the Performance Goal(s) shall be based on the
attainment of specific levels of performance of the Company and/or one or more Affiliates, divisions or operational units, or
any combination of the foregoing, as determined by the Committee, which criteria will be based on one or more of the
following business criteria: (i) revenue; (ii) sales; (iii) profit (net profit, gross profit, operating profit, economic
profit, profit margins or other corporate profit measures); (iv) earnings (EBIT, EBITDA, earnings per share, or other
corporate earnings measures); (v) net income (before or after taxes, operating income or other income measures); (vi) cash
(cash flow, cash generation or other cash measures); (vii) stock price or performance; (viii) total stockholder return (stock
price appreciation plus reinvested dividends divided by beginning share price); (ix) economic value added; (x) return
measures (including, but not limited to, return on assets, capital, equity, investments or sales, and cash flow return on
assets, capital, equity, or sales); (xi) market share; (xii) improvements in capital structure; (xiii) expenses (expense
management, expense ratio, expense efficiency ratios or other expense measures); (xiv) business expansion or consolidation
(acquisitions and divestitures); (xv) internal rate of return or increase in net present value; (xvi) working capital targets
relating to inventory and/or accounts receivable; (xvii) inventory management; (xviii) service or product delivery or
quality; (xix) customer satisfaction; (xx) employee retention; (xxi) safety standards; (xxii) productivity measures; (xxiii)
cost reduction measures; and/or (xxiv) strategic plan development and implementation. Any one or more of the Performance
Criteria adopted by the Committee may be used on an absolute or relative basis to measure the performance of the Company
and/or one or more Affiliates as a whole or any business unit(s) of the Company and/or one or more Affiliates or any
combination thereof, as the Committee may deem appropriate, or any of the above Performance Criteria may be compared to the
performance of a selected group of comparison companies, or a published or special index that the Committee, in its sole
discretion, deems appropriate, or as compared to various stock market indices. The Committee also has the authority to
provide for accelerated vesting of any Award based on the achievement of Performance Goals pursuant to the Performance
Criteria specified in this paragraph. To the extent required under Section 162(m) of the Code, the Committee shall, within
the first 90 calendar days of a Performance Period (or, if longer or shorter, within the maximum period allowed under Section
162(m) of the Code), define in an objective fashion the manner of calculating the Performance Criteria it selects to use for
such Performance Period and thereafter promptly communicate such Performance Criteria to the Participant.

 

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(d)  Modification
of Performance Goal(s). In the event that applicable tax and/or securities laws change to permit Committee discretion
to alter the governing Performance Criteria without obtaining stockholder approval of such alterations, the Committee shall
have sole discretion to make such alterations without obtaining stockholder approval. The Committee is authorized at any time
during the first 90 calendar days of a Performance Period (or, if longer or shorter, within the maximum period allowed under
Section 162(m) of the Code, if applicable), or at any time thereafter to the extent the exercise of such authority at such
time would not cause the Performance Compensation Awards granted to any Participant for such Performance Period to fail to
qualify as “performance-based compensation” under Section 162(m) of the Code, in its sole discretion, to adjust
or modify the calculation of a Performance Goal for such Performance Period, based on and in order to appropriately reflect
the following events: (i) asset write-downs; (ii)  litigation or claim judgments or settlements; (iii) the effect of
changes in tax laws, accounting principles, or other laws or regulatory rules affecting reported results; (iv) any
reorganization and restructuring programs; (v) extraordinary nonrecurring items as described in Accounting Principles Board
Opinion No. 30 (or any successor pronouncement thereto) and/or in management’s discussion and analysis of financial
condition and results of operations appearing in the Company’s annual report to stockholders for the applicable year;
(vi) acquisitions or divestitures; (vii) any other specific unusual or nonrecurring events, or objectively determinable
category thereof; (viii) foreign exchange gains and losses; and (ix) a change in the Company’s fiscal year.

 

 (e) Payment of Performance Compensation Awards.

 

(i) 
Condition to Receipt of Payment. Unless otherwise provided in the applicable Award Agreement, a Participant must
be employed by the Company on the last day of a Performance Period to be eligible for payment in respect of a Performance Compensation
Award for such Performance Period.

 

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(ii) 
Limitation. A Participant shall be eligible to receive payment in respect of a Performance Compensation Award only
to the extent that: (A) the Performance Goals for such period are achieved; and (B) all or some of the portion of such Participant’s
Performance Compensation Award has been earned for the Performance Period based on the application of the Performance Formula to
such achieved Performance Goals.

 

(iii) 
Certification. Following the completion of a Performance Period, the Committee shall review and certify in writing
whether, and to what extent, the Performance Goals for the Performance Period have been achieved and, if so, calculate and certify
in writing that amount of the Performance Compensation Awards earned for the period based upon the Performance Formula. The Committee
shall then determine the amount of each Participant’s Performance Compensation Award actually payable for the Performance
Period and, in so doing, may apply Negative Discretion.

 

(iv) 
Use of Negative Discretion. In determining the actual amount of an individual Participant’s Performance Compensation
Award for a Performance Period, the Committee may reduce or eliminate the amount of the Performance Compensation Award earned under
the Performance Formula in the Performance Period through the use of Negative Discretion if, in its sole judgment, such reduction
or elimination is appropriate. The Committee shall not have the discretion, except as is otherwise provided in this Plan, to (A)
grant or provide payment in respect of Performance Compensation Awards for a Performance Period if the Performance Goals for such
Performance Period have not been attained; or (B) increase a Performance Compensation Award above the applicable limitations set
forth in Section 5 of this Plan.

 

(f) 
Timing of Award Payments. Performance Compensation Awards granted for a Performance Period shall be paid to Participants
as soon as administratively practicable following completion of the certifications required by this Section 11, but in no event
later than two-and-one-half months following the end of the fiscal year during which the Performance Period is completed in order
to comply with the short-term deferral rules under Section 1.409A-1(b)(4) of the Treasury Regulations. Notwithstanding the foregoing,
payment of a Performance Compensation Award may be delayed, as permitted by Section 1.409A-2(b)(7)(i) of the Treasury Regulations,
to the extent that the Company reasonably anticipates that if such payment were made as scheduled, the Company’s tax deduction
with respect to such payment would not be permitted due to the application of Section 162(m) of the Code.

  

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12. 
Changes in Capital Structure and Similar Events. In the event of (a) any recapitalization, stock split, reverse stock
split, reorganization, merger, amalgamation, consolidation, split-up, split-off, combination, repurchase or exchange of Common
Shares or other securities of the Company, issuance of warrants or other rights to acquire Common Shares or other securities of
the Company, or other similar corporate transaction or event (including, without limitation, a Change in Control) that affects
the Common Shares, or (b) unusual or nonrecurring events (including, without limitation, a Change in Control) affecting the Company,
any Affiliate, or the financial statements of the Company or any Affiliate, or changes in applicable rules, rulings, regulations
or other requirements of any governmental body or securities exchange or inter-dealer quotation system, accounting principles or
law, such that in either case an adjustment is determined by the Committee in its sole discretion to be necessary or appropriate,
then the Committee shall make any such adjustments that are equitable, including without
limitation any or all of the following:

 

(i) 
adjusting any or all of (A) the number of Common Shares or other securities of the Company (or number and kind of other securities
or other property) that may be delivered in respect of Awards or with respect to which Awards may be granted under this Plan (including,
without limitation, adjusting any or all of the limitations under Section 5 of this Plan) and (B) the terms of any outstanding
Award, including, without limitation, (1) the number of Common Shares or other securities of the Company (or number and kind of
other securities or other property) subject to outstanding Awards or to which outstanding Awards relate, (2) the Exercise Price
or Strike Price with respect to any Award or (3) any applicable performance measures (including, without limitation, Performance
Criteria and Performance Goals);

 

(ii) 
providing for a substitution or assumption of Awards, accelerating the exercisability of, lapse of restrictions on, or termination
of, Awards or providing for a period of time for exercise prior to the occurrence of such event; and

 

(iii) 
subject to the requirements of Section 409A of the Code, canceling any one or more outstanding Awards and causing to be paid to
the holders thereof, in cash, Common Shares, other securities or other property, or any combination thereof, the value of such
Awards, if any, as determined by the Committee (which if applicable may be based upon the price per Common Share received or to
be received by other stockholders of the Company in such event), including without limitation, in the case of an outstanding Option
or SAR, a cash payment in an amount equal to the excess, if any, of the fair market value (as of a date specified by the Committee)
of the Common Shares subject to such Option or SAR over the aggregate Exercise Price or Strike Price of such Option or SAR, respectively
(it being understood that, in such event, any Option or SAR having a per share Exercise Price or Strike Price equal to, or in excess
of, the fair market value of a Common Share subject thereto may be canceled and terminated without any payment or consideration
therefor); provided, however, that in the case of any “equity restructuring” (within the meaning of the Financial
Accounting Standards Board Statement of Financial Accounting Standards No. 123 (revised 2004) or ASC Topic 718, or any successor
thereto), the Committee shall make an equitable or proportionate adjustment to outstanding Awards to reflect such equity restructuring.
Any adjustment in Incentive Stock Options under this Section 12 (other than any cancellation of Incentive Stock Options) shall
be made only to the extent not constituting a “modification” within the meaning of Section 424(h)(3) of the Code, and
any adjustments under this Section 12 shall be made in a manner that does not adversely affect the exemption provided pursuant
to Rule 16b-3 under the Exchange Act. The Company shall give each Participant notice of an adjustment hereunder and, upon notice,
such adjustment shall be conclusive and binding for all purposes.

 

13. 
Effect of Change in Control. Notwithstanding any provision specifically provided in an Award Agreement or any provision
of this Plan to the contrary, in the event of a Change in Control:

 

(a) 
the Committee may, in its sole discretion, accelerate the exercisability of any Option with respect to all or any portion of a
particular outstanding Award or Awards, which acceleration shall not affect the terms
and conditions of such Option other than with respect to exercisability;

 

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(b) the Committee may,
in its sole discretion, cause the Restricted Period, with respect to all or any portion of a particular outstanding Award or Awards,
to expire as of a time prior to the Change in Control (including without limitation a waiver of any applicable Performance Goals);

 

(c) 
the Committee may, in its sole discretion, with respect to all or any portion of a particular outstanding Award or Awards, cause
Performance Periods in effect on the date the Change in Control occurs to end on such date of the Change in Control, and if the
Committee, at its sole discretion does take said action, the committee shall (i) determine the extent to which Performance Goals
with respect to each such Performance Period have been met based upon such audited or unaudited financial information or other
information then available as it deems relevant and (ii) cause the Participant to receive partial or full payment of Awards for
each such Performance Period based upon the Committee’s determination of the degree of attainment of the Performance Goals,
or assuming that the applicable “target” levels of performance have been attained or on such other basis determined
by the Committee.

 

To the extent practicable, if any such
actions are taken by the Committee, in its sole discretion, under the immediately preceding clauses (a) through (c) such actions
shall occur in a manner and at a time which allows affected Participants the ability to participate in the Change in Control transactions
with respect to the Common Shares subject to their Awards.

 

 14. Amendments and Termination.

 

(a) 
Amendment and Termination of this Plan. The Board may amend, alter, suspend, discontinue, or terminate this Plan
or any portion thereof at any time; provided, that (i) no amendment to the definition of Eligible Person in Section 2(q),
Section 5(b), Section 11(c) or Section 14(b) (to the extent required by the proviso in such Section 14(b)) shall be made without
stockholder approval and (ii) no such amendment, alteration, suspension, discontinuation or termination shall be made without stockholder
approval if such approval is necessary to comply with any tax or regulatory requirement applicable to this Plan (including, without
limitation, as necessary to comply with any rules or requirements of any securities exchange or inter-dealer quotation system on
which the Common Shares may be listed or quoted or to prevent the Company from being denied a tax deduction under Section 162(m)
of the Code); and, provided, further, that any such amendment, alteration, suspension, discontinuance or termination that
would materially and adversely affect the rights of any Participant or any holder or beneficiary of any Award theretofore granted
shall not to that extent be effective without the prior written consent of the affected Participant, holder or beneficiary.

 

(c)  Amendment
of Award Agreements. The Committee may, to the extent consistent with the terms of any applicable Award Agreement,
waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate, any Award
theretofore granted or the associated Award Agreement, prospectively or retroactively; provided, however that any such
waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would materially and adversely
affect the rights of any Participant with respect to any Award theretofore granted shall not to that extent be effective
without the consent of the affected Participant; and, provided, further, that without stockholder approval, except as
otherwise permitted under Section 12 of this Plan, (i) no amendment or modification may reduce the Exercise Price of any
Option or the Strike Price of any SAR, (ii) the Committee may not cancel any outstanding Option or SAR and replace it with a
new Option or SAR, another Award or cash or take any action that would have the effect of treating such Award as a new Award
for tax or accounting purposes and (iii) the Committee may not take any other action that is considered a
“repricing” for purposes of the stockholder approval rules of the applicable securities exchange or inter-dealer
quotation system on which the Common Shares are listed or quoted.

 

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 15. General.

 

(a) 
Award Agreements. Each Award under this Plan shall be evidenced by an Award Agreement, which shall be delivered to
the Participant (whether in paper or electronic medium (including email or the posting on a web site maintained by the Company
or a third party under contract with the Company)) and shall specify the terms and conditions of the Award and any rules applicable
thereto, including without limitation, the effect on such Award of the death, Disability or termination of employment or service
of a Participant, or of such other events as may be determined by the Committee. The Company’s failure to specify any term
of any Award in any particular Award Agreement shall not invalidate such term, provided such terms was duly adopted by the Board
or the Committee.

 

(b)
Nontransferability; Trading Restrictions.

 

(i) 
Each Award shall be exercisable only by a Participant during the Participant’s lifetime, or, if permissible under applicable
law, by the Participant’s legal guardian or representative. No Award may be assigned, alienated, pledged, attached, sold
or otherwise transferred or encumbered by a Participant other than by will or by the laws of descent and distribution and any such
purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the
Company or an Affiliate; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge,
attachment, sale, transfer or encumbrance.

 

(ii) 
Notwithstanding the foregoing, the Committee may, in its sole discretion, permit Awards (other than Incentive Stock Options) to
be transferred by a Participant, with or without consideration, subject to such rules as the Committee may adopt consistent with
any applicable Award Agreement to preserve the purposes of this Plan, to: (A) any person who is a “family member” of
the Participant, as such term is used in the instructions to Form S-8 under the Securities Act (collectively, the “Immediate
Family Members”); (B) a trust solely for the benefit of the Participant and his or her Immediate Family Members;
or (C) a partnership or limited liability company whose only partners or stockholders are the Participant and his or her Immediate
Family Members; or (D) any other transferee as may be approved either (I) by the Board or the Committee in its sole discretion,
or (II) as provided in the applicable Award Agreement (each transferee described in clauses (A), (B) (C) and (D) above is hereinafter
referred to as a “Permitted Transferee”); provided, that the Participant gives the Committee advance
written notice describing the terms and conditions of the proposed transfer and the Committee notifies the Participant in writing
that such a transfer would comply with the requirements of this Plan.

 

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(iii) 
The terms of any Award transferred in accordance with the immediately preceding sentence shall apply to the Permitted Transferee
and any reference in this Plan, or in any applicable Award Agreement, to a Participant shall be deemed to refer to the Permitted
Transferee, except that (A) Permitted Transferees shall not be entitled to transfer any Award, other than by will or the laws of
descent and distribution; (B) Permitted Transferees shall not be entitled to exercise any transferred Option unless there shall
be in effect a registration statement on an appropriate form covering the Common Shares to be acquired pursuant to the exercise
of such Option if the Committee determines, consistent with any applicable Award Agreement, that such a registration statement
is necessary or appropriate; (C) the Committee or the Company shall not be required to provide any notice to a Permitted Transferee,
whether or not such notice is or would otherwise have been required to be given to the Participant under this Plan or otherwise;
and (D) the consequences of the termination of the Participant’s employment by, or services to, the Company or an Affiliate
under the terms of this Plan and the applicable Award Agreement shall continue to be applied with respect to the Participant, including,
without limitation, that an Option shall be exercisable by the Permitted Transferee only to the extent, and for the periods, specified
in this Plan and the applicable Award Agreement.

 

(iv)  
The Committee shall have the right, either on an Award-by-Award basis or as a matter of policy for all Awards or one or more classes
of Awards, to condition the delivery of vested Common Shares received in connection with such Award on the Participant’s
agreement to such restrictions as the Committee may determine.

 

(c)
Tax Withholding.

 

(i) 
A Participant shall be required to pay to the Company or any Affiliate, or the Company or any Affiliate shall have the right and
is hereby authorized to withhold, from any cash, Common Shares, other securities or other property deliverable under any Award
or from any compensation or other amounts owing to a Participant, the amount (in cash, Common Shares, other securities or other
property) of any required withholding taxes, including any federal, state, local and non-U.S. income and employment taxes in respect
of an Award, its exercise, or any payment or transfer under an Award or under this Plan and to take such other action as may be
necessary in the opinion of the Committee or the Company to satisfy all obligations for the payment of such withholding and taxes.

 

(ii) 
Without limiting the generality of clause (i) above, the Committee may, in its sole discretion, require a Participant to pay
the foregoing withholding liability in cash as a precondition to exercising the Participants Option until such time as
Company has registered its stock and has established a relationship with a broker-dealer acting on the Company’s behalf
to sell stock in the market. After such time the Committee, in its sole discretion, may permit a Participant to satisfy, in
whole or in part, the foregoing withholding liability by (A) the delivery of Common Shares (which are not subject to any
pledge or other security interest and are Mature Shares) owned by the Participant having a fair market value equal to such
withholding liability or (B)  having the Company withhold from the number of Common Shares otherwise issuable or
deliverable pursuant to the exercise or settlement of the Award a number of shares with a fair market value equal to such
withholding liability (but no more than the minimum required statutory withholding liability).

 

    22

     

    

 

(d) 
No Claim to Awards; No Rights to Continued Employment; Waiver. No employee of the Company or an Affiliate, or other
person, shall have any claim or right to be granted an Award under this Plan or, having been selected for the grant of an Award,
to be selected for a grant of any other Award. There is no obligation for uniformity of treatment of Participants or holders or
beneficiaries of Awards. The terms and conditions of Awards and the Committee’s determinations and interpretations with respect
thereto need not be the same with respect to each Participant and may be made selectively among Participants, whether or not such
Participants are similarly situated. Neither this Plan nor any action taken hereunder shall be construed as giving any Participant
any right to be retained in the employ or service of the Company or an Affiliate, nor shall it be construed as giving any Participant
any rights to continued service on the Board. The Company or any of its Affiliates may at any time dismiss a Participant from employment
or discontinue any consulting relationship, free from any liability or any claim under this Plan, unless otherwise expressly provided
in this Plan or any Award Agreement. By accepting an Award under this Plan, a Participant shall thereby be deemed to have waived
any claim to continued exercise or vesting of an Award or to damages or severance entitlement related to non-continuation of the
Award beyond the period provided under this Plan or any Award Agreement, notwithstanding any provision to the contrary in any written
employment contract or other agreement between the Company and its Affiliates and the Participant, whether any such agreement is
executed before, on or after the Date of Grant.

 

(e) 
International Participants. With respect to Participants who reside or work outside of the United States of America
and who are not (and who are not expected to be) “covered employees” within the meaning of Section 162(m) of the Code,
the Committee may in its sole discretion amend the terms of this Plan or outstanding Awards (or establish a sub-plan) with respect
to such Participants in order to conform such terms with the requirements of local law or to obtain more favorable tax or other
treatment for a Participant, the Company or its Affiliates.

 

(f) 
Designation and Change of Beneficiary. Each Participant may file with the Committee a written designation of one
or more persons as the beneficiary(ies) who shall be entitled to receive the amounts payable with respect to an Award, if any,
due under this Plan upon his or her death. A Participant may, from time to time, revoke or change his or her beneficiary designation
without the consent of any prior beneficiary by filing a new designation with the Committee. The last such designation filed with
the Committee shall be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective
unless received by the Committee prior to the Participant’s death, and in no event shall it be effective as of a date prior
to such receipt. If no beneficiary designation is filed by a Participant, the beneficiary shall be deemed to be his or her spouse
or, if the Participant is unmarried at the time of death, his or her estate. Upon the occurrence of a Participant’s divorce
(as evidenced by a final order or decree of divorce), any spousal designation previously given by such Participant shall automatically
terminate.

 

(g)  Termination
of Employment/Service. Unless determined otherwise by the Committee at any point following such event: (i) neither a
temporary absence from employment or service due to illness, vacation or leave of absence nor a transfer from employment or
service with the Company to employment or service with an Affiliate (or vice-versa) shall be considered a termination of
employment or service with the Company or an Affiliate; and (ii) if a Participant’s employment with the Company and its
Affiliates terminates, but such Participant continues to provide services to the Company and its Affiliates in a non-employee
capacity (or vice-versa), such change in status shall not be considered a termination of employment with the Company or an
Affiliate.

 

    23

     

    

  

(h) 
No Rights as a Stockholder. Except as otherwise specifically provided in this Plan or any Award Agreement, no person
shall be entitled to the privileges of ownership in respect of Common Shares that are subject to Awards hereunder until such shares
have been issued or delivered to that person. As such, no adjustments shall be made for dividends of any kind or nature, distributions,
or other rights for which the record date is prior to the date such shares have been issued or delivered to that person.

 

 (i) Government and Other Regulations.

 

(i) 
The obligation of the Company to settle Awards in Common Shares or other consideration shall be subject to all applicable laws,
rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions
of any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from
offering to sell or selling, any Common Shares pursuant to an Award unless such shares have been properly registered for sale pursuant
to the Securities Act with the Securities and Exchange Commission or unless the Company has received an opinion of counsel, satisfactory
to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption therefrom
and the terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation to register
for sale under the Securities Act any of the Common Shares to be offered or sold under this Plan. The Committee shall have the
authority to provide that all certificates for Common Shares or other securities of the Company or any Affiliate delivered under
this Plan shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under this Plan,
the applicable Award Agreement, the federal securities laws, or the rules, regulations and other requirements of the Securities
and Exchange Commission, any securities exchange or inter-dealer quotation system upon which such shares or other securities are
then listed or quoted and any other applicable federal, state, local or non-U.S. laws, and, without limiting the generality of
Section 9 of this Plan, the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference
to such restrictions. Notwithstanding any provision in this Plan to the contrary, the Committee reserves the right to add any additional
terms or provisions to any Award granted under this Plan that it in its sole discretion deems necessary or advisable in order that
such Award complies with the legal requirements of any governmental entity to whose jurisdiction the Award is subject.

 

(ii)  The
Committee may cancel an Award or any portion thereof if it determines, in its sole discretion, that legal or contractual
restrictions and/or blockage and/or other market considerations would make the Company’s acquisition of Common Shares
from the public markets, the Company’s issuance of Common Shares to the Participant, the Participant’s
acquisition of Common Shares from the Company and/or the Participant’s sale of Common Shares to the public markets,
illegal, impracticable or inadvisable. If the Committee determines to cancel all or any portion of an Award in accordance
with the foregoing, unless doing so would violate Section 409A of the Code, the Company shall pay to the Participant an
amount equal to the excess of (A) the aggregate fair market value of the Common Shares subject to such Award or portion 
thereof canceled (determined as of the applicable exercise date, or the date that the shares would have been vested or
delivered, as applicable), over (B) the aggregate Exercise Price or Strike Price (in the case of an Option or SAR,
respectively) or any amount payable as a condition of delivery of Common Shares (in the case of any other Award). Such amount
shall be delivered to the Participant as soon as practicable following the cancellation of such Award or portion thereof. The
Committee shall have the discretion to consider and take action to mitigate the tax consequence to the Participant in
cancelling an Award in accordance with this clause.

 

    24

     

    

 

(j) 
Payments to Persons Other Than Participants. If the Committee shall find that any person to whom any amount is payable
under this Plan is unable to care for his affairs because of illness or accident, or is a minor, or has died, then any payment
due to such person or his estate (unless a prior claim therefor has been made by a duly appointed legal representative) may, if
the Committee so directs the Company, be paid to his spouse, child, relative, an institution maintaining or having custody of such
person, or any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled to payment.
Any such payment shall be a complete discharge of the liability of the Committee and the Company therefor.

 

(k) 
Nonexclusivity of this Plan. Neither the adoption of this Plan by the Board nor the submission of this Plan to the
stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board to adopt such
other incentive arrangements as it may deem desirable, including, without limitation, the granting of stock options or other equity-based
awards otherwise than under this Plan, and such arrangements may be either applicable generally or only in specific cases.

 

(l) 
No Trust or Fund Created. Neither this Plan nor any Award shall create or be construed to create a trust or separate
fund of any kind or a fiduciary relationship between the Company or any Affiliate, on the one hand, and a Participant or other
person or entity, on the other hand. No provision of this Plan or any Award shall require the Company, for the purpose of satisfying
any obligations under this Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made
or otherwise to segregate any assets, nor shall the Company maintain separate bank accounts, books, records or other evidence of
the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights
under this Plan other than as general unsecured creditors of the Company, except that insofar as they may have become entitled
to payment of additional compensation by performance of services, they shall have the same rights as other employees under general
law.

 

(m) 
Reliance on Reports. Each member of the Committee and each member of the Board shall be fully justified in acting
or failing to act, as the case may be, and shall not be liable for having so acted or failed to act in good faith, in reliance
upon any report made by the independent public accountant of the Company and its Affiliates and/or any other information furnished
in connection with this Plan by any agent of the Company or the Committee or the Board, other than himself.

 

(n) 
Relationship to Other Benefits. No payment under this Plan shall be taken into account in determining any benefits
under any pension, retirement, profit sharing, group insurance or other benefit plan of the Company except as otherwise specifically
provided in such other plan.

 

    25

     

    

 

(o) 
Governing Law. This Award Agreement shall be governed by and construed in accordance with the laws of the State of
Delaware except as superseded by applicable Federal law.

 

(p) 
Severability. If any provision of this Plan or any Award or Award Agreement is or becomes or is deemed to be invalid,
illegal, or unenforceable in any jurisdiction or as to any person or entity or Award, or would disqualify this Plan or any Award
under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable
laws in the manner that most closely reflects the original intent of the Award or the Plan, or if it cannot be construed or deemed
amended without, in the determination of the Committee, materially altering the intent of this Plan or the Award, such provision
shall be construed or deemed stricken as to such jurisdiction, person or entity or Award and the remainder of this Plan and any
such Award shall remain in full force and effect.

 

(q) 
Obligations Binding on Successors. The obligations of the Company under this Plan shall be binding upon any successor
corporation or organization resulting from the merger, amalgamation, consolidation or other reorganization of the Company, or upon
any successor corporation or organization succeeding to substantially all of the assets and business of the Company.

 

(r) 
Code Section 162(m) Approval. If so determined by the Committee, the provisions of this Plan regarding Performance
Compensation Awards shall be disclosed and reapproved by stockholders no later than the first stockholder meeting that occurs in
the fifth year following the year in which stockholders previously approved such provisions, in each case in order for certain
Awards granted after such time to be exempt from the deduction limitations of Section 162(m) of the Code. Nothing in this clause,
however, shall affect the validity of Awards granted after such time if such stockholder approval has not been obtained.

 

(s) 
Expenses; Gender; Titles and Headings. The expenses of administering this Plan shall be borne by the Company and
its Affiliates. Masculine pronouns and other words of masculine gender shall refer to both men and women. The titles and headings
of the sections in this Plan are for convenience of reference only, and in the event of any conflict, the text of this Plan, rather
than such titles or headings shall control.

 

(t) 
Other Agreements. Notwithstanding the above, the Committee may require, as a condition to the grant of and/or the
receipt of Common Shares under an Award, that the Participant execute lock-up, stockholder or other agreements, as it may determine
in its sole and absolute discretion.

 

(u)  Section
409A. The Plan and all Awards granted hereunder are intended to comply with, or otherwise be exempt from, the
requirements of Section 409A of the Code. The Plan and all Awards granted under this Plan shall be administered, interpreted,
and construed in a manner consistent with Section 409A of the Code to the extent necessary to avoid the imposition of
additional taxes under Section 409A(a)(1)(B) of the Code. Notwithstanding anything in this Plan to the contrary, in no event
shall the Committee exercise its discretion to accelerate the payment or settlement of an Award where such payment or
settlement constitutes deferred compensation within the meaning of Section 409A of the Code unless, and solely to the extent
that, such accelerated payment or settlement is permissible under Section 1.409A-3(j)(4) of the Treasury Regulations. If a
Participant is a “specified employee” (within the meaning of Section 1.409A-1(i) of the Treasury Regulations) at
any time during the twelve (12)-month period ending on the date of his termination of employment, and any Award hereunder
subject to the requirements of Section 409A of the Code is to be satisfied on account of the Participant’s termination
of employment, satisfaction of such Award shall be suspended until the date that is six (6) months after the date of such
termination of employment.

 

(v) 
Payments. Participants shall be required to pay, to the extent required by applicable law, any amounts required to
receive Common Shares under any Award made under this Plan.

 

    26

     

    

  

	 	Stock Option Award
	Participant:
	Grant Date:
	Grant:                     Nonqualified Stock Option
	Expiration Date:

 

This Stock Option Award (“Award Agreement”)
evidences the grant, to the above-named Participant by Aditx Therapeutics, Inc., (the “Company”), of an option to purchase
the number of shares of common stock of the Company as set forth below (the “Award”). The general terms of the Award
are described below. The Award is subject to the terms provided herein and the terms, conditions and provisions in the Company’s
2017 Equity Incentive Plan, as amended from time to time (the “2017 Plan”), which are incorporated into this Award
Agreement by reference. Except as otherwise expressly provided, all capitalized terms used that are not defined herein shall have
the same meaning as provided in the 2017 Plan.

 

		1.	Grant of Award. Pursuant to the 2017 Plan,
subject to the terms and conditions contained herein, and subject to any applicable securities and/or other laws, the Award hereby
granted, as of the Grant Date set forth above, to the above-named Participant conveys to the Participant the right to purchase
from the Company up to                       shares
(the “Option Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”)
at an exercise price of $X.XX per share (the “Exercise Price”).

 

		2.	Nonqualified Stock Option. The Award granted hereunder is intended to be a nonqualified
stock option and is not intended to constitute or be treated as an Incentive Stock Option as such term is defined under Section
422 of the Internal Revenue Code, as amended.

 

		3.	Vesting. Pursuant
to the 2017 Plan, subject to the terms and conditions contained herein, and subject to any applicable securities and/or other
laws, the Option Shares granted herein shall vest as follows:                                                                                                                        

 

		4.	Expiration. The Award granted herein, unless earlier terminated or forfeited under the
terms provided herein and in the 2017 Plan, shall expire on the “Expiration Date” noted above. To the extent not previously
exercised, the Award and all rights with respect thereto, shall terminate and become null and void upon the Expiration Date.

 

    27

     

    

 

		5.	Termination. The following describes the effect of termination of Participants
                                                                        employment or service by reason of Participant’s death, Disability, resignation, retirement, termination and
                                                                        termination for Cause on the exercisability. In the event of each of the following to occur: (i) the unvested portion of an
                                                                        Award shall expire immediately and no longer be exercisable and (ii) any already vested portion of the Award shall remain
                                                                        exercisable as follows:

 

		(a)	until the Expiration Date in the event of termination
of employment or service by reason of such Participant’s death or Disability (with the determination of Disability to be
made by the Company on a case by case basis);

 

		(b)	for directors, officers and employees of the Company only, until the Expiration Date in
the event of termination of employment or service by reason of such Participant’s Retirement;

 

		(c)	until the Expiration Date in the event of the resignation of employment or service by the Participant;

 

		(d)	until the Expiration Date in the event of termination of employment or service
for any reason other than such Participant’s death, Disability, resignation, or Retirement, and other than such Participant’s
termination of employment or service for Cause; and

 

		(e)	for three years following termination of employment or service for Cause, but not later than
the Expiration Date.

 

		6.	Method of Exercise and Form of Payment. No Common Shares shall be delivered pursuant to
any exercise of an Award until payment in full of the Exercise Price therefor is received by the Company and the Participant has
paid to the Company an amount equal to any federal, state, local and non-U.S. income and employment taxes required to be withheld.
Options Shares that have become exercisable may be exercised by delivery of written or electronic notice of exercise to the Company
accompanied by payment of the Exercise Price.

 

		(a)	The Exercise Price shall be payable (i) in cash, check (subject to collection), cash equivalent
and/or vested Common Shares valued at the Fair Market Value at the time the Award is exercised (including, pursuant to procedures
approved by the Company, by means of attestation of ownership of a sufficient number of Common Shares in lieu of actual delivery
of such shares to the Company); provided, however, that such Common Shares are not subject to any pledge or other security
interest and are Mature Shares and; (ii) by such other method as the Committee may permit in accordance with applicable law, in
its sole discretion, including without limitation: (A) in other property having a fair market value (as determined by the Committee
in its discretion) on the date of exercise equal to the Exercise Price or (B) if there is a public market for the Common Shares
at such time, by means of a broker-assisted “cashless exercise” pursuant to which the Company is delivered a copy of
irrevocable instructions to a stockbroker to sell the Common Shares otherwise deliverable upon the exercise of the Award and to
deliver promptly to the Company an amount equal to the Exercise Price or (C) by a “net exercise” method whereby the
Company withholds from the delivery of the Common Shares for which the Award was exercised that number of Common Shares having
a Fair Market Value equal to the aggregate Exercise Price for the Common Shares for which the Award was exercised. Any fractional
Common Shares shall be settled in cash.

 

		(b)	The payment to be made by the Participant for any federal, state, local and non-U.S. income
and employment taxes required to be withheld shall be paid as provided for in the Tax Withholding section below.

 

    28

     

    

		(c)	The Company, at its sole discretion, may set a reasonable minimum number
of shares of Common Stock that may be purchased on any exercise of an Award, provided that such minimum number will not prevent
the Participant from exercising the Award for the full number of shares of Common Stock for which it is then exercisable.

 

		7.	Tax Withholding.

 

		(a)	A Participant shall be required to pay to the Company or any Affiliate, or the Company or any
Affiliate shall have the right and is hereby authorized to withhold, from any cash, Common Shares, other securities or other property
deliverable under any Award or from any compensation or other amounts owing to a Participant, the amount (in cash, Common Shares,
other securities or other property) of any required withholding taxes, including any federal, state, local and non-U.S. income
and employment taxes in respect of an Award, its exercise, or any payment or transfer under an Award or under this Plan and to
take such other action as may be necessary in the opinion of the Committee or the Company to satisfy all obligations for the payment
of such withholding and taxes.

 

		(b)	Without limiting the generality of clause (a) above,
the Company may, in its sole discretion, require a Participant to pay the foregoing withholding liability in cash until such time
as Company has registered its stock and has established a relationship with a broker-dealer acting on the Company’s behalf
to sell stock in the market. After such time the Company, in its sole discretion, may permit a Participant to satisfy, in whole
or in part, the foregoing withholding liability by (A) the delivery of Common Shares (which are not subject to any pledge or other
security interest and are Mature Shares) owned by the Participant having a fair market value equal to such withholding liability
or (B) having the Company withhold from the number of Common Shares otherwise issuable or deliverable pursuant to the exercise
or settlement of the Award a number of shares with a fair market value equal to such withholding liability (but no more than the
minimum required statutory withholding liability).

 

		8.	Stockholder Rights. Except as otherwise specifically provided in the 2017 Plan, the Participant
shall not be entitled to the privileges of ownership in respect of Common Shares that are subject to Awards hereunder until such
shares have been issued or delivered to that person. As such, no adjustments shall be made for dividends of any kind or nature,
distributions, or other rights for which the record date is prior to the date such shares have been issued or delivered to that
person.

 

		9.	Stock Certificate. Until the Option Shares are registered, each certificate representing
the Option Shares shall be stamped or otherwise imprinted with a legend substantially in the following form:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR IF APPLICABLE, STATE SECURITIES LAWS. THESE SHARES MAY
NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH SECURITIES
ACT AND APPLICABLE STATE LAWS OR COMPLIANCE WITH AN APPLICABLE EXEMPTION THEREFROM, SUCH COMPLIANCE, AT THE OPTION OF THE COMPANY,
TO BE EVIDENCED BY AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED

 

    29

     

    

 

		10.	Amendment. The Company may, subject to approval
of the Participant amend the Award at any time if the Company determines, in its sole discretion that amendment is necessary or
advisable in light of any applicable addition to or change in the Code, any regulations issued thereunder, or any federal or state
securities law or other applicable law or regulation.

 

		11.	Acknowledgement. The Participant acknowledges having received and read a copy of this Award
Agreement and the 2017 Plan and agrees to comply with the 2017 Plan and all laws, rules and regulations applicable to the Award
and to the sale or other disposition of the Common Stock of the Company received.

 

		12.	Entire Agreement. This Award Agreement contains the entire understanding between the parties.
No other representations or covenants have induced either party to execute this Award Agreement, and this Award Agreement supersedes
all prior understandings among the parties hereto with respect to the subject matter contained herein.

 

		13.	Notices. Any notice to the Company provided for in this Award Agreement shall be addressed
to the Company in care of its CEO at 11161 Anderson Street, Suite 105-10014 Loma Linda, California 92354, and any notice to the
Participant shall be addressed to the Participant at the address currently in the records of the Company. Any notice shall be deemed
duly given if and when properly addressed and posted by registered or certified mail, postage prepaid.

 

		14.	Severability. If any provision of this Award Agreement is held to be illegal or invalid
for any reason, the remaining provisions are to remain in full force and effect and are to be construed and enforced in accordance
with the purposes of this Award Agreement as if the illegal or invalid provision or provisions did not exist.

 

		15.	Governing Law. This Award Agreement shall be governed by and construed in accordance
with the internal laws of the State of Delaware except as superseded by applicable Federal law.

 

		16.	Headings. The section headings of this Award Agreement are for convenience of reference only and do not form a part
of the terms of this Award Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

    30

     

    

 

IN WITNESS WHEREOF, the
Company has caused its duly authorized officer to execute this Award Agreement, and the Participant has placed his or her signature
hereon, effective as of the Grant Date.

 

	 	ADITX THERAPEUTICS, INC.
	 	 
	 	 
	 	Amro Albanna
	 	CEO
	 	 
	 	ACCEPTED AND AGREED TO:
	 	 
	 	 
	 	Participant

 

 

31Exhibit (10)(a)

    

    

    

    

    

    

    Consent of Independent Registered Public Accounting Firm

    

    

    

    

    We consent to the reference to our firm under the caption “Independent Registered Public Accounting Firm” in
      Post-Effective Amendment No. 24 to the 1933 Act Registration Statement (Form N-4 No. 333-175691) and Amendment No. 567 to the 1940 Act Registration
      Statement (Form N-4 No.    811-09763), and to the use therein of our reports dated (a) April 1, 2020, with respect to the financial statements of Lincoln
      Life & Annuity Company of New York and (b) April 15, 2020, with respect to the financial statements of Lincoln New York Account N For Variable Annuities for the registration of
      interests in a separate account under individual flexible payment deferred variable annuity contracts.

    

    

    

    

    

    

    

    

    /s/ Ernst & Young LLP

    Philadelphia, Pennsylvania

    August 14, 2020

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