Document:

Exhibit 10.1

 

First
Amendment to License Agreement

 

This First
Amendment to License Agreement (the “Amendment”) is made and entered into as of September 19, 2019, by and between
AC Immune SA, a Swiss Company (“ACI”) and Eli Lilly and Company, an Indiana Corporation (“Lilly”). (As
used herein ACI and Lilly may be individually referred to as a “Party” and collectively referred to as the “Parties”).

 

RECITALS

 

WHEREAS,
ACI and Lilly are parties to that certain License Agreement dated December 11, 2018 (the “Agreement”) related to developing
small molecule tau inhibitors; and

 

WHEREAS,
the Parties desire to amend the Agreement to reflect the Parties’ agreement to the terms and conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the premises and the mutual promises and conditions set forth herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, do hereby
agree as follows:

 

AGREEMENT

 

		1.	Definitions.
                                         All capitalized terms used in this Amendment but not otherwise defined herein shall have
                                         the same meanings given to such terms in the Agreement.

 

		2.	Amendments
                                         to Agreement.

 

		a)	Section
                                         7.2.1(i) of the Agreement shall be deleted in its entirety and replaced with the following:
                                         

 

		(i)	(a)
                                         within ten (10) Business Days after the end of the Lilly Pre-Clinical Activities Period,
                                         but in no event later than October 7, 2019, thirty million Swiss Francs (CHF 30,000,000)
                                         and (b) thirty million Swiss Francs (CHF 30,000,000) no later than March 31, 2020; provided,
                                         that no such payment of such thirty million Swiss Francs (CHF 30,000,000) under this
                                         Section 7.2.1(i)(b) will be due by Lilly if Lilly provides ACI with notice of termination
                                         of this Agreement pursuant to Section 12.2.6 after October 7, 2019 and at least ten (10)
                                         Business Days prior to March 31, 2020.

 

		b)	Section
                                         12.2.6 of the Agreement shall be deleted in its entirety and replaced with the following:

 

Termination
before March 31, 2020. At any time after October 7, 2019 and on or before the tenth (10th) Business Day prior to
March 31, 2020, Lilly may terminate this Agreement immediately upon written notice to ACI. For clarity, if Lilly terminates this
Agreement in accordance with this Section 12.2.6, Lilly shall not be obligated to pay the thirty million Swiss Francs (CHF 30,000,000)
payment set forth in Section 7.2.1(i)(b).

 

    1 

     

    

 

		3.	Limitation
                                         of this Amendment. Except as expressly provided herein, the Agreement is, and shall
                                         continue to be, in full force and effect in accordance with its terms, without further
                                         amendments thereto.

 

		4.	Counterparts.
                                         This Amendment may be executed in two (2) or more counterparts, each of which shall be
                                         deemed to be an original, but all of which together shall constitute one and the same
                                         instrument. This Amendment may be executed by facsimile, PDF format via email or other
                                         electronically transmitted signatures and such signatures shall be deemed to bind each
                                         Party hereto as if they were original signatures.

 

[Signature
Page to Follow]

 

    2 

     

    

THIS AMENDMENT IS EXECUTED by
the authorized representatives of the Parties as of the date first written above.

 

 

	ELI
    LILLY AND COMPANY	 	AC
    IMMUNE SA
	 	 	 
	By:	/s/ David Ricks	 	 	By:	/s/ Andrea Pfeifer
	Name: 	David Ricks	 	 	Name: 	Andrea Pfeifer
	Title: 	President and CEO	 	 	Title: 	Chief Executive Officer
	 	 	 
	 	 	 
	 	 	AC
        IMMUNE SA

        

	 	 	 
	 	 	By:	/s/ Martin Velasco
	 	 	Name: 	Martin Velasco
	 	 	Title: 	Vice-Chairman

 

 

 

 

 

    3IMMUNIC, INC.

 

2019 OMNIBUS EQUITY INCENTIVE PLAN

 

     

    

    

 

TABLE OF CONTENTS

 

PAGE

 

	Article 1. Effective Date, Objectives and Duration	1
	1.1	Effective Date of the Plan	1
	1.2	Objectives of the Plan	1
	1.3	Duration of the Plan	1
	 	 	 
	Article 2. Definitions	1
	2.1	“Affiliate”	1
	2.2	“Award”	1
	2.3	“Award Agreement”	1
	2.4	“Board”	2
	2.5	“Bonus Shares”	2
	2.6	“Cause”	2
	2.7	“CEO”	2
	2.8	“Change in Control”	2
	2.9	“Code”	2
	2.10	“Committee” or “Incentive Plan Committee”	2
	2.11	“Compensation Committee”	2
	2.12	“Common Stock”	2
	2.13	“Corporate Transaction”	2
	2.14	“Deferred Stock”	2
	2.15	“Disability” or “Disabled”	2
	2.16	“Dividend Equivalent”	3
	2.17	“Effective Date”	3
	2.18	“Eligible Person”	3
	2.19	“Exchange Act”	3
	2.20	“Exercise Price”	3
	2.21	“Fair Market Value”	3
	2.22	“Grant Date”	4
	2.23	“Grantee”	4
	2.24	“Incentive Stock Option”	4
	2.25	“Including” or “includes”	4
	2.26	“Management Committee”	4
	2.27	“Non-Employee Director”	4
	2.28	“Option”	4
	2.29	“Other Stock-Based Award”	4
	2.30	“Performance Period”	4
	2.31	“Performance Share” and “Performance Unit”	4
	2.32	“Period of Restriction”	4
	2.33	“Person”	4
	2.34	“Restricted Shares”	4
	2.35	“Restricted Stock Units”	4
	2.36	“Rule 16b-3”	4
	2.37	“SEC”	4
	2.38	“Section 16 Non-Employee Director”	5
	2.39	“Section 16 Person”	5
	2.40	“Separation from Service”	5
	2.41	“Share”	5
	2.42	“Stock Appreciation Right” or “SAR”	5
	2.43	“Subsidiary Corporation”	5
	2.44	“Surviving Company”	5
	2.45	“Term”	5
	2.46	“Termination of Affiliation”	5

 

     

    

    

 

TABLE OF CONTENTS

 

PAGE

 

	Article 3. Administration	6
	3.1	Committee	6
	3.2	Powers of Committee	6
	3.3	No Repricings	8
	 	 	 
	Article 4. Shares Subject to the Plan	8
	4.1	Number of Shares Available for Grants	8
	4.2	Adjustments in Authorized Shares and Awards; Corporate Transaction, Liquidation or Dissolution	9
	 	 	 
	Article 5. Eligibility and General Conditions of Awards	10
	5.1	Eligibility	10
	5.2	Award Agreement	10
	5.3	General Terms and Termination of Affiliation	10
	5.4	Nontransferability of Awards	11
	5.5	Cancellation and Rescission of Awards	11
	5.6	Stand-Alone, Tandem and Substitute Awards	12
	5.7	Compliance with Rule 16b-3	12
	5.8	Deferral of Award Payouts	13
	 	 	 
	Article 6. Stock Options	13
	6.1	Grant of Options	13
	6.2	Award Agreement	13
	6.3	Option Exercise Price	13
	6.4	Grant of Incentive Stock Options	13
	6.5	Payment of Exercise Price	14
	 	 	 
	Article 7. Stock Appreciation Rights	15
	7.1	Issuance	15
	7.2	Award Agreements	15
	7.3	SAR Exercise Price	15
	7.4	Exercise and Payment	15
	 	 	 
	Article 8. Restricted Shares	16
	8.1	Grant of Restricted Shares	16
	8.2	Award Agreement	16
	8.3	Consideration for Restricted Shares	16
	8.4	Effect of Forfeiture	16
	8.5	Escrow; Legends	16
	 	 	 
	Article 9. Performance Units and Performance Shares	16
	9.1	Grant of Performance Units and Performance Shares	16
	9.2	Value/Performance Goals	16
	9.3	Earning of Performance Units and Performance Shares	17
	 		 
	Article 10. Deferred Stock and Restricted Stock Units	17
	10.1	Grant of Deferred Stock and Restricted Stock Units	17
	10.2	Vesting and Delivery	17
	10.3	Voting and Dividend Equivalent Rights Attributable to Deferred Stock and Restricted Stock Units	18
	 	 	 
	Article 11. Dividend Equivalents	18
	 	 
	Article 12. Bonus Shares	18

 

     

    

    

 

TABLE OF CONTENTS

 

PAGE

 

	Article 13. Other Stock-Based Awards	18
	 	 
	Article 14. Non-Employee Director Awards	19
	 	 
	Article 15. Amendment, Modification, and Termination	19
	15.1	Amendment, Modification, and Termination	19
	15.2	Awards Previously Granted	19
	 		 
	Article 16. Compliance with Section 409A of the Code	19
	16.1	Awards Subject to Section 409A of the Code	19
	16.2	Deferral and/or Distribution Elections	19
	16.3	Subsequent Elections	20
	16.4	Distributions Pursuant to Deferral Elections	20
	16.5	Six Month Delay	20
	16.6	Death or Disability	20
	16.7	No Acceleration of Distributions	21
	 		 
	Article 17. Withholding	21
	17.1	Required Withholding	21
	17.2	Notification under Code Section 83(b)	21
	 		 
	Article 18. Additional Provisions	22
	18.1	Successors	22
	18.2	Severability	22
	18.3	Requirements of Law	22
	18.4	Securities Law Compliance	22
	18.5	Forfeiture Events	23
	18.6	No Rights as a Stockholder	23
	18.7	Nature of Payments	23
	18.8	Non-Exclusivity of Plan	23
	18.9	Governing Law	23
	18.10	Unfunded Status of Awards; Creation of Trusts	24
	18.11	Affiliation	24
	18.12	Participation	24
	18.13	Military Service	24
	18.14	Construction	24
	18.15	Headings	24
	18.16	Obligations	24
	18.17	No Right to Continue as Director	24
	18.18	Stockholder Approval	24

 

     

    

    

 

IMMUNIC, INC.

 

2019 OMNIBUS EQUITY INCENTIVE PLAN

 

Article 1.

Effective Date, Objectives and Duration

 

1.1              
Effective Date of the Plan. The Board of Directors
of Immunic, Inc., a Delaware corporation (the “Company”), adopted this 2019 Omnibus Equity Incentive Plan (the
“Plan”) effective as of June 14, 2019 (the “Effective Date”).

 

1.2              
Objectives of the Plan. The Plan is intended:
(a) to allow selected employees of and consultants to the Company and its Affiliates to acquire or increase equity ownership in
the Company, thereby strengthening their commitment to the success of the Company and stimulating their efforts on behalf of the
Company, and to assist the Company and its Affiliates in attracting new employees, officers and consultants and retaining existing
employees and consultants, (b) to optimize the profitability and growth of the Company and its Affiliates through incentives which
are consistent with the Company’s goals, (c) to provide Grantees with an incentive for excellence in individual performance,
(d) to promote teamwork among employees, consultants and Non-Employee Directors, and (e) to attract and retain highly qualified
persons to serve as Non-Employee Directors and to promote ownership by such Non-Employee Directors of a greater proprietary interest
in the Company, thereby aligning such Non-Employee Directors’ interests more closely with the interests of the Company’s
stockholders.

 

1.3              
Duration of the Plan. The Plan shall commence
on the Effective Date and shall remain in effect, subject to the right of the Board to amend or terminate the Plan at any time
pursuant to Article 15 hereof, until the earlier of the tenth (10th) anniversary of the Effective Date, or the date
all Shares subject to the Plan shall have been purchased or acquired and the restrictions on all Restricted Shares granted under
the Plan shall have lapsed according to the Plan’s provisions.

 

Article 2.

Definitions

 

Whenever used in the
Plan, the following terms shall have the meanings set forth below:

 

2.1              
“Affiliate” means any corporation
or other entity, including but not limited to partnerships, limited liability companies and joint ventures, with respect to which
the Company, directly or indirectly, owns as applicable: (a) stock possessing more than fifty percent (50%) of the total combined
voting power of all classes of stock entitled to vote, or more than fifty percent (50%) of the total value of all shares of all
classes of stock of such corporation, or (b) an aggregate of more than fifty percent (50%) of the profits interest or capital interest
of a non-corporate entity. 

 

2.2              
“Award” means Options (including non-qualified
options and Incentive Stock Options), SARs, Restricted Shares, Performance Units (which may be paid in cash), Performance Shares,
Deferred Stock, Restricted Stock Units, Dividend Equivalents, Bonus Shares or Other Stock-Based Awards granted under the Plan.

 

2.3              
“Award Agreement” means either: (a)
a written agreement entered into by the Company and a Grantee setting forth the terms and provisions applicable to an Award granted
under this Plan, or (b) a written statement issued by the Company to a Grantee describing the terms and provisions of such Award,
including any amendment or modification thereof. The Committee may provide for the use of electronic, internet or other non-paper
Award Agreements and the use of electronic, internet or other non-paper means for the acceptance thereof and actions thereunder
by the Grantee.

 

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2.4              
“Board” means the Board of Directors
of the Company.

 

2.5              
“Bonus Shares” means Shares that are
awarded to a Grantee with or without cost and without restrictions either in recognition of past performance (whether determined
by reference to another employee benefit plan of the Company or otherwise), as an inducement to become an Eligible Person or, with
the consent of the Grantee, as payment in lieu of any cash remuneration otherwise payable to the Grantee.

 

2.6              
“Cause” means, except as otherwise
defined in an Award Agreement:

 

(a)               
the commission of any act by a Grantee constituting a felony or crime of moral turpitude (or their equivalent in a non-United States
jurisdiction);

 

(b)               
an act of dishonesty, fraud, intentional misrepresentation, or harassment which, as determined in good faith by the Committee,
would: (a) materially adversely affect the business or the reputation of the Company or any of its Affiliates with their respective
current or prospective customers, suppliers, lenders and/or other third parties with whom such entity does or might do business;
or (b) expose the Company or any of its Affiliates to a risk of civil or criminal legal damages, liabilities or penalties;

 

(c)               
any material misconduct in violation of the Company’s or an Affiliate’s written policies; or

 

(d)               
willful and deliberate non-performance of the Grantee’s duties in connection with the business affairs of the Company or
its Affiliates;

 

provided, however,
that if the Grantee has a written employment or consulting agreement with the Company or any of its Affiliates or participates
in any severance plan established by the Company that includes a definition of “cause,” Cause shall have the meaning
set forth in such employment or consulting agreement or severance plan.

 

2.7              
“CEO” means the Chief Executive Officer
of the Company.

 

2.8              
“Change in Control” shall have the
meaning set forth in Section 16.4(e). 

 

2.9              
“Code” means the Internal Revenue
Code of 1986, as amended from time to time. References to a particular section of the Code include references to regulations and
rulings thereunder and to successor provisions.

 

2.10          
“Committee” or “Incentive Plan Committee” has
the meaning set forth in Section 3.1(a).

 

2.11          
“Compensation Committee” means the
compensation committee of the Board.

 

2.12          
“Common Stock” means the common stock,
$0.0001 par value, of the Company.

 

2.13          
“Corporate Transaction” shall have
the meaning set forth in Section 4.2(b).

 

2.14          
“Deferred Stock” means a right, granted
under Article 10, to receive Shares at the end of a specified deferral period. 

 

2.15          
“Disability” or “Disabled” means,
unless otherwise defined in an Award Agreement, or as otherwise determined under procedures established by the Committee for purposes
of the Plan:

 

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(a)               
Except as provided in (b) below, a disability within the meaning of Section 22(e)(3) of the Code; and

 

(b)               
In the case of any Award that constitutes deferred compensation within the meaning of Section 409A of the Code, a disability as
defined in regulations under Section 409A of the Code. For purpose of Section 409A of the Code, a Grantee will be considered Disabled
if:

 

(i)                     
the Grantee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve
(12) months, or

 

(ii)                   
the Grantee is, by reason of any medically determinable physical or mental impairment which can be expected to result in death
or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for
a period of not less than three (3) months under an accident and health plan covering employees of the Grantee’s employer.

 

2.16          
“Dividend Equivalent” means a right
to receive payments equal to dividends or property, if and when paid or distributed, on a specified number of Shares. 

 

2.17          
“Effective Date” has the meaning set
forth in Section 1.1.

 

2.18          
“Eligible Person” means any individual
who is an employee (including any officer) of, a non-employee consultant to, or a Non-Employee Director of, the Company or any
Affiliate; provided, however, that solely with respect to the grant of an Incentive Stock Option, an Eligible Person shall be any
employee (including any officer) of the Company or any Subsidiary Corporation. Notwithstanding the foregoing, an Eligible Person
shall also include an individual who is expected to become an employee of, non-employee consultant to, or Non-Employee Director
of, the Company or any Affiliate within a reasonable period of time after the grant of an Award (other than an Incentive Stock
Option); provided that any Award granted to any such individual shall be automatically terminated and cancelled without consideration
if the individual does not begin performing services for the Company or any Affiliate within twelve (12) months after the Grant
Date. Solely for purposes of Section 5.6(b), current or former employees or non-employee directors or consultants of an Acquired
Entity who receive Substitute Awards in substitution for Acquired Entity Awards shall be considered Eligible Persons under this
Plan with respect to such Substitute Awards.

 

2.19          
“Exchange Act” means the Securities
Exchange Act of 1934, as amended from time to time. References to a particular section of the Exchange Act include references to
successor provisions.

 

2.20          
“Exercise Price” means: (a) with respect
to an Option, the price at which a Share may be purchased by a Grantee pursuant to such Option or (b) with respect to an SAR, the
price established at the time an SAR is granted pursuant to Article 7, which is used to determine the amount, if any, of the payment
due to a Grantee upon exercise of the SAR.

 

2.21          
“Fair Market Value” of a Share means
a price that is based on the opening, closing, actual, high, low, or the arithmetic mean of selling prices of a Share reported
on an established stock exchange which is the principal exchange upon which the Shares are traded on the applicable date or the
preceding trading day. Unless the Committee determines otherwise, if the Shares are traded over the counter at the time a determination
of its Fair Market Value is required to be made hereunder, Fair Market Value shall be deemed to be equal to the arithmetic mean
between the reported high and low or closing bid and asked prices of a Share on the applicable date or, if no such trades were
made that day, then the most recent date on which Shares were publicly traded. In the event Shares are not publicly traded at the
time a determination of their value is required to be made hereunder, the determination of their Fair Market Value shall be made
by the Committee in such manner as it deems appropriate, provided such manner is consistent with Treasury Regulation Section 1.409A-1(b)(5)(iv)(B).

 

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2.22          
“Grant Date” means the date on which
an Award is granted or such later date as specified in advance by the Committee.

 

2.23          
“Grantee” means a person who has been
granted an Award.

 

2.24          
“Incentive Stock Option” means an
Option that is intended to meet the requirements of Section 422 of the Code.

 

2.25          
“Including” or “includes” means
“including, without limitation,” or “includes, without limitation,” respectively.

 

2.26          
“Management Committee” has the meaning
set forth in Section 3.1(b).

 

2.27          
“Non-Employee Director” means a member
of the Board who is not an employee of the Company or any Affiliate.

 

2.28          
“Option” means an option granted under
Article 6 of the Plan.

 

2.29          
“Other Stock-Based Award” means a
right, granted under Article 13 hereof, that relates to or is valued by reference to Shares or other Awards relating to Shares.

 

2.30          
“Performance Period” means, with respect
to an Award of Performance Shares or Performance Units, the period of time during which the performance vesting conditions applicable
to such Award must be satisfied.

 

2.31          
“Performance Share” and “Performance Unit” have
the respective meanings set forth in Article 9.

 

2.32          
“Period of Restriction” means the
period during which Restricted Shares are subject to forfeiture if the conditions specified in the Award Agreement are not satisfied.

 

2.33          
“Person” means any individual, sole
proprietorship, partnership, joint venture, limited liability company, trust, unincorporated organization, association, corporation,
institution, public benefit corporation, entity or government instrumentality, division, agency, body or department.

 

2.34          
“Restricted Shares” means Shares granted
under Article 8 that are both subject to forfeiture and are nontransferable if the Grantee does not satisfy the conditions specified
in the Award Agreement applicable to such Shares.

 

2.35          
“Restricted Stock Units” means rights,
granted under Article 10, to receive Shares if the Grantee satisfies the conditions specified in the Award Agreement applicable
to such rights. 

 

2.36          
“Rule 16b-3” means Rule 16b-3 promulgated
by the SEC under the Exchange Act, as amended from time to time, together with any successor rule. 

 

2.37          
“SEC” means the United States Securities
and Exchange Commission, or any successor thereto.

 

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2.38          
“Section 16 Non-Employee Director” means
a member of the Board who satisfies the requirements to qualify as a “non-employee director” under Rule 16b-3.

 

2.39          
“Section 16 Person” means a person
who is subject to potential liability under Section 16(b) of the Exchange Act with respect to transactions involving equity securities
of the Company.

 

2.40          
“Separation from Service” means, with
respect to any Award that constitutes deferred compensation within the meaning of Section 409A of the Code, a “separation
from service” as defined in Treasury Regulation Section 1.409A-1(h). For this purpose, a “separation from service”
is deemed to occur on the date that the Company and the Grantee reasonably anticipate that the level of bona fide services the
Grantee would perform for the Company and/or any Affiliates after that date (whether as an employee, Non-Employee Director or consultant
or independent contractor) would permanently decrease to a level that, based on the facts and circumstances, would constitute a
separation from service; provided that a decrease to a level that is fifty percent (50%) or more of the average level of bona fide
services provided over the prior thirty-six (36) months shall not be a separation from service, and a decrease to a level that
is twenty percent (20%) or less of the average level of such bona fide services shall be a separation from service. The Committee
retains the right and discretion to specify, and may specify, whether a separation from service occurs with respect to those individuals
who are performing services for the Company or an Affiliate immediately prior to an asset purchase transaction in which the Company
or an Affiliate is the seller and who continue to perform services for the buyer (or an affiliate thereof) immediately following
such asset purchase transaction; provided, such specification is made in accordance with the requirements of Treasury Regulation
Section 1.409A-1(h)(4).

 

2.41          
“Share” means a share of Common Stock,
and such other securities of the Company, as may be substituted or resubstituted for Shares pursuant to Section 4.2 hereof.

 

2.42          
“Stock Appreciation Right” or “SAR” means
an Award granted under Article 7 of the Plan.

 

2.43          
“Subsidiary Corporation” means a corporation
other than the Company in an unbroken chain of corporations beginning with the Company if, at the time of granting the Option,
each of the corporations other than the last corporation in the unbroken chain owns stock possessing fifty percent (50%) or more
of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

 

2.44          
“Surviving Company” means (a) the
surviving corporation in any merger, consolidation or similar transaction, involving the Company (including the Company if the
Company is the surviving corporation), (b) or the direct or indirect parent company of such surviving corporation or (c) the direct
or indirect parent company of the Company following a sale of substantially all of the outstanding stock of the Company.

 

2.45          
“Term” of any Option or SAR means
the period beginning on the Grant Date of an Option or SAR and ending on the date such Option or SAR expires, terminates or is
cancelled. No Option or SAR granted under this Plan shall have a Term exceeding ten (10) years

 

2.46          
“Termination of Affiliation” occurs
on the first day on which an individual is for any reason no longer performing services in the capacity of an employee of, a non-employee
consultant to, or a Non-Employee Director of, the Company or any Affiliate or, with respect to an individual who is an employee
of, a non-employee consultant to, or a Non-Employee Director of, an Affiliate, the first day on which such entity ceases to be
an Affiliate of the Company unless such individual continues to perform Services for the Company or another Affiliate without interruption
after such entity ceases to be an Affiliate. Notwithstanding the foregoing, if an Award constitutes deferred compensation within
the meaning of Section 409A of the Code, Termination of Affiliation with respect to such Award shall mean the Grantee’s Separation
from Service.

 

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Article 3.

Administration

 

3.1              
Committee.

 

(a)               
Subject to Article 14, and to Section 3.2, the Plan shall be administered by a Committee (the “Incentive Plan Committee”
or the “Committee”) of directors of the Company appointed by the Board from time to time. Notwithstanding the
foregoing, either the Board or the Compensation Committee may at any time and in one or more instances reserve administrative powers
to itself as the Committee or exercise any of the administrative powers of the Committee. The number of members of the Committee
may from time to time be increased or decreased as the Board or Compensation Committee deems appropriate. To the extent the Board
or Compensation Committee considers it desirable to comply with Rule 16b-3, the Committee shall consist of two (2) or more directors
of the Company, all of whom qualify as Section 16 Non-Employee Directors.

 

(b)               
The Board or the Compensation Committee may appoint and delegate to another committee (“Management Committee”),
or to the CEO, any or all of the authority of the Board or the Committee, as applicable, with respect to Awards to Grantees other
than Grantees who are executive officers, Non-Employee Directors, or Section 16 Persons at the time any such delegated authority
is exercised.

 

(c)               
Unless the context requires otherwise, any references herein to “Committee” include references to the Incentive Plan
Committee, the Board or the Compensation Committee to the extent the Incentive Plan Committee, the Board or the Compensation Committee,
as applicable, has assumed or exercises administrative powers itself as the Committee pursuant to subsection (a), and to the Management
Committee or the CEO to the extent either has been delegated authority pursuant to subsection (b), as applicable; provided that
(a) for purposes of Awards to Non-Employee Directors, “Committee” shall include only the full Board, and (b) for purposes
of Awards intended to comply with Rule 16b-3, the “Committee” shall include only the Incentive Plan Committee or the
Compensation Committee.

 

3.2              
Powers of Committee. Subject to and consistent
with the provisions of the Plan (including Article 14), the Committee has full and final authority and sole discretion as follows;
provided that any such authority or discretion exercised with respect to a specific Non-Employee Director shall be approved by
the affirmative vote of a majority of the members of the Board, even if not a quorum, but excluding the Non-Employee Director with
respect to whom such authority or discretion is exercised:

 

(a)               
to determine when, to whom and in what types and amounts Awards should be granted;

 

(b)               
to grant Awards to Eligible Persons in any number and to determine the terms and conditions applicable to each Award (including
the number of Shares or the amount of cash or other property to which an Award will relate, any Exercise Price or purchase price,
any limitation or restriction, any schedule for or performance conditions relating to the earning of the Award or the lapse of
limitations, forfeiture restrictions, restrictions on exercisability or transferability, any performance goals including those
relating to the Company and/or an Affiliate and/or any division thereof and/or an individual, and/or vesting based on the passage
of time, based in each case on such considerations as the Committee shall determine);

 

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(c)               
to determine the benefit payable under any Performance Unit, Performance Share, Dividend Equivalent, Other Stock-Based Award or
Cash Incentive Award and to determine whether any performance or vesting conditions have been satisfied;

 

(d)               
to determine whether or not specific Awards shall be granted in connection with other specific Awards, and if so, whether they
shall be exercisable cumulatively with, or alternatively to, such other specific Awards and all other matters to be determined
in connection with an Award;

 

(e)               
to determine the Term of any Option or SAR;

 

(f)                
to determine the amount, if any, that a Grantee shall pay for Restricted Shares, whether to permit or require the payment of cash
dividends thereon to be deferred and the terms related thereto, when Restricted Shares (including Restricted Shares acquired upon
the exercise of an Option) shall be forfeited and whether such shares shall be held in escrow;

 

(g)               
to determine whether, to what extent and under what circumstances an Award may be settled in, or the exercise price of an Award
may be paid in, cash, Shares, other Awards or other property, or an Award may be accelerated, vested, canceled, forfeited or surrendered
or any terms of the Award may be waived, and to accelerate the exercisability of, and to accelerate or waive any or all of the
terms and conditions applicable to, any Award or any group of Awards for any reason and at any time;

 

(h)               
to determine with respect to Awards granted to Eligible Persons whether, to what extent and under what circumstances cash, Shares,
other Awards, other property and other amounts payable with respect to an Award will be deferred, either at the election of the
Grantee or automatically pursuant to the terms of the Award Agreement;

 

(i)                
to offer to exchange or buy out any previously granted Award for a payment in cash, Shares or other Award;

 

(j)                
to construe and interpret the Plan and to make all determinations, including factual determinations, necessary or advisable for
the administration of the Plan;

 

(k)               
to make, amend, suspend, waive and rescind rules and regulations relating to the Plan;

 

(l)                
to appoint such agents as the Committee may deem necessary or advisable to administer the Plan;

 

(m)             
to determine the terms and conditions of all Award Agreements applicable to Eligible Persons (which need not be identical) and,
with the consent of the Grantee, to amend any such Award Agreement at any time, among other things, to permit transfers of such
Awards to the extent permitted by the Plan; provided that the consent of the Grantee shall not be required for any amendment (a)
which does not adversely affect the rights of the Grantee, (b) which is necessary or advisable (as determined by the Committee)
to carry out the purpose of the Award as a result of any new applicable law or change in an existing applicable law, or (c) to
the extent the Award Agreement specifically permits amendment without consent;

 

(n)               
to cancel, with the consent of the Grantee, outstanding Awards and to grant new Awards in substitution therefor;

 

     7

    

    

 

(o)               
to impose such additional terms and conditions upon the grant, exercise or retention of Awards as the Committee may, before or
concurrently with the grant thereof, deem appropriate, including limiting the percentage of Awards which may from time to time
be exercised by a Grantee;

 

(p)               
to make adjustments in the terms and conditions of, and the criteria in, Awards in recognition of unusual or nonrecurring events
(including events described in Section 4.2) affecting the Company or an Affiliate or the financial statements of the Company or
an Affiliate, or in response to changes in applicable laws, regulations or accounting principles;

 

(q)               
to correct any defect or supply any omission or reconcile any inconsistency, and to construe and interpret the Plan, the rules
and regulations, and Award Agreement or any other instrument entered into or relating to an Award under the Plan; and

 

(r)                
to take any other action with respect to any matters relating to the Plan for which it is responsible and to make all other decisions
and determinations as may be required under the terms of the Plan or as the Committee may deem necessary or advisable for the administration
of the Plan.

 

Any action of the Committee
with respect to the Plan shall be final, conclusive and binding on all persons, including the Company, its Affiliates, any Grantee,
any person claiming any rights under the Plan from or through any Grantee, and stockholders, except to the extent the Committee
may subsequently modify, or take further action not consistent with, its prior action. If not specified in the Plan, the time at
which the Committee must or may make any determination shall be determined by the Committee, and any such determination may thereafter
be modified by the Committee. The express grant of any specific power to the Committee, and the taking of any action by the Committee,
shall not be construed as limiting any power or authority of the Committee. Subject to Section 3.1(b), the Committee may delegate
to officers of the Company or any Affiliate the authority, subject to such terms as the Committee shall determine, to perform specified
functions under the Plan.

 

3.3              
No Repricings. Notwithstanding any provision in
Section 3.2 to the contrary, the terms of any outstanding Option or SAR may not be amended to reduce the Exercise Price of such
Option or SAR or cancel any outstanding Option or SAR in exchange for other Options or SARs with an Exercise Price that is less
than the Exercise Price of the cancelled Option or SAR or for any cash payment (or Shares having with a Fair Market Value) in an
amount that exceeds the excess of the Fair Market Value of the Shares underlying such cancelled Option or SAR over the aggregate
Exercise Price of such Option or SAR or for any other Award, without stockholder approval; provided, however, that the restrictions
set forth in this Section 3.3, shall not apply (a) unless the Company has a class of stock that is registered under Section 12
of the Exchange Act or (b) to any adjustment allowed under to Section 4.2.

 

Article 4.

Shares Subject to the Plan

 

4.1              
Number of Shares Available for Grants. Subject
to adjustment as provided in Section 4.2 and except as provided in Section 5.6(b), the maximum number of Shares hereby reserved
for delivery under the Plan shall be:

 

(a)               
1,500,000 Shares, plus

 

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(b)               
an annual increase to be added as of the first day of the Company’s fiscal year, beginning in 2020 and occurring each year
thereafter through 2029, equal to four percent (4%) of the total number of Shares of Common Stock issued and outstanding on a fully-diluted
basis as of the end of the Company's immediately preceding fiscal year (or such lesser number of shares, including no shares, determined
by the Board in its sole discretion); provided, however, that the aggregate number of additional Shares available for issuance
pursuant to this paragraph (b) shall not exceed a total of 4,900,000 Shares.

 

Up to a maximum of 4.9 million Shares may be delivered pursuant
to the exercise of Incentive Stock Options granted hereunder.

 

If any Shares subject
to an Award granted hereunder (other than a Substitute Award granted pursuant to Section 5.6(b)) are forfeited or such Award otherwise
terminates without payment or delivery of such Shares, the Shares subject to such Award, to the extent of any such forfeiture or
termination, shall again be available for grant under the Plan. For avoidance of doubt, however, if any Shares subject to an Award
granted hereunder are withheld or applied as payment in connection with the exercise of an Award or the withholding or payment
of taxes related thereto (“Returned Shares”), such Returned Shares will be treated as having been delivered
for purposes of determining the maximum number of Shares available for grant under the Plan and shall not again be treated as available
for grant under the Plan. Moreover, the number of Shares available for issuance under the Plan may not be increased through the
Company’s purchase of Shares on the open market with the proceeds obtained from the exercise of any Options granted hereunder.
Upon settlement of an SAR, the number of Shares underlying the portion of the SAR that is exercised will be treated as having been
delivered for purposes of determining the maximum number of Shares available for grant under the Plan and shall not again be treated
as available for issuance under the Plan.

 

Shares delivered pursuant
to the Plan may be, in whole or in part, authorized and unissued Shares, or treasury Shares, including Shares repurchased by the
Company for purposes of the Plan.

 

4.2              
Adjustments in Authorized Shares and Awards; Corporate Transaction, Liquidation or Dissolution.

 

(a)               
Adjustment in Authorized Shares and Awards. In the event that the Committee determines that any dividend or other distribution
(whether in the form of cash, Shares, or other property), recapitalization, forward or reverse stock split, subdivision, consolidation
or reduction of capital, reorganization, merger, consolidation, scheme of arrangement, split-up, spin-off or combination involving
the Company or repurchase or exchange of Shares or other securities of the Company or other rights to purchase Shares or other
securities of the Company, or other similar corporate transaction or event affects the Shares such that any adjustment is determined
by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to
be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (a) the
number and type of Shares (or other securities or property) with respect to which Awards may be granted, (b) the number and type
of Shares (or other securities or property) subject to outstanding Awards, (c) the Exercise Price with respect to any Option or
SAR or, if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award, and (d) the number and
kind of Shares of outstanding Restricted Shares, or the Shares underlying any other form of Award. Notwithstanding the foregoing,
no such adjustment shall be authorized with respect to any Options or SARs to the extent that such adjustment would cause the Option
or SAR to violate Section 424(a) of the Code or otherwise subject any Grantee to taxation under Section 409A of the Code; and provided
further that the number of Shares subject to any Award denominated in Shares shall always be a whole number.

 

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(b)               
Merger, Consolidation or Similar Corporate Transaction. In the event of a merger or consolidation of the Company with or
into another corporation or a sale of substantially all of the stock of the Company (a “Corporate Transaction”),
unless an outstanding Award is assumed by the Surviving Company or replaced with an equivalent Award granted by the Surviving Company
in substitution for such outstanding Award, the Committee shall cancel any outstanding Awards that are not vested and nonforfeitable
as of the consummation of such Corporate Transaction (unless the Committee accelerates the vesting of any such Awards) and with
respect to any vested and nonforfeitable Awards, the Committee may either (a) allow all Grantees to exercise such Awards of Options
and SARs within a reasonable period prior to the consummation of the Corporate Transaction and cancel any outstanding Options or
SARs that remain unexercised upon consummation of the Corporate Transaction, or (b) cancel any or all of such outstanding Awards
in exchange for a payment (in cash, or in securities or other property) in an amount equal to the amount that the Grantee would
have received (net of the Exercise Price with respect to any Options or SARs) if such vested Awards were settled or distributed
or such vested Options and SARs were exercised immediately prior to the consummation of the Corporate Transaction. Notwithstanding
the foregoing, if an Option or SAR is not assumed by the Surviving Company or replaced with an equivalent Award issued by the Surviving
Company and the Exercise Price with respect to any outstanding Option or SAR exceeds the Fair Market Value of the Shares immediately
prior to the consummation of the Corporation Transaction, such Awards shall be cancelled without any payment to the Grantee.

 

(c)               
Liquidation or Dissolution of the Company. In the event of the proposed dissolution or liquidation of the Company, each
Award will terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Committee.
Additionally, the Committee may, in the exercise of its sole discretion, cause Awards to be vested and non-forfeitable and cause
any conditions on any such Award to lapse, as to all or any part of such Award, including Shares as to which the Award would not
otherwise be exercisable or non-forfeitable, and allow all Grantees to exercise such Awards of Options and SARs within a reasonable
period prior to the consummation of such proposed action. Any Awards that remain unexercised upon consummation of such proposed
action shall be cancelled.

 

(d)               
Deferred Compensation. Notwithstanding the foregoing provisions of this Section 4.2, if an Award constitutes deferred compensation
within the meaning of Section 409A of the Code, no payment or settlement of such Award shall be made pursuant to Section 4.2(b)
or (c), unless the Corporate Transaction or the dissolution or liquidation of the Company, as applicable, constitutes a Change
in Control.

 

Article 5.

Eligibility and General Conditions of Awards

 

5.1              
Eligibility. The Committee may in its discretion
grant Awards to any Eligible Person, whether or not he or she has previously received an Award; provided, however, that all Awards
made to Non-Employee Directors shall be determined by the Board in its sole discretion. Awards made to Eligible Persons who are
principally employed outside the United States shall be subject to the terms of this Plan, except as otherwise modified in an appendix
to this Plan or in the Award Agreement. Subject to Sections 15.1 and 15.2, the Board may amend the appendix to reflect changes
in foreign law or the Company’s or Affiliates’ workforce or operations. 

 

5.2              
Award Agreement. To the extent not set forth in
the Plan, the terms and conditions of each Award shall be set forth in an Award Agreement.

 

5.3              
General Terms and Termination of Affiliation.
The Committee may impose on any Award or the exercise or settlement thereof, at the date of grant or, subject to the provisions
of Section 15.2, thereafter, such additional terms and conditions not inconsistent with the provisions of the Plan as the Committee
shall determine, including terms requiring forfeiture, acceleration or pro-rata acceleration of Awards in the event of a Termination
of Affiliation by the Grantee. Except as may be required under the Delaware General Corporation Law, Awards may be granted for
no consideration other than prior and future services. Except as set forth in an Award Agreement or as otherwise determined by
the Committee, (a) all Options and SARs that are not vested and exercisable at the time of a Grantee’s Termination of Affiliation,
and any other Awards that remain subject to a risk of forfeiture or which are not otherwise vested at the time of the Grantee’s
Termination of Affiliation shall be forfeited to the Company and (b) all outstanding Options and SARs not previously exercised
shall expire three months after the Grantee’s Termination of Affiliation.

 

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5.4              
Nontransferability of Awards.

 

(a)               
Each Award and each right under any Award shall be exercisable only by the Grantee during the Grantee’s lifetime or, if permissible
under applicable law, by the Grantee’s guardian or legal representative or by a transferee receiving such Award pursuant
to a qualified domestic relations order (a “QDRO”), as defined in the Code or Title I of the Employee Retirement
Income Security Act of 1974, as amended, or the rules thereunder.

 

(b)               
No Award (prior to the time, if applicable, Shares are delivered in respect of such Award), and no right under any Award, may be
assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Grantee otherwise than by will or by the
laws of descent and distribution (or in the case of Restricted Shares, to the Company) or pursuant to a QDRO, and any such purported
assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or
any Affiliate; provided that the designation of a beneficiary to receive benefits in the event of the Grantee’s death shall
not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.

 

(c)               
Notwithstanding subsections (a) and (b) above, to the extent provided in the Award Agreement or as otherwise approved by the Committee,
Options (other than Incentive Stock Options) and Restricted Shares may be transferred without consideration to a Permitted Transferee.
For this purpose, a “Permitted Transferee” in respect of any Grantee means any member of the Immediate Family of such
Grantee, any trust of which all of the primary beneficiaries are such Grantee or members of his or her Immediate Family, or any
partnership (including limited liability companies and similar entities) of which all of the partners or members are such Grantee
or members of his or her Immediate Family; and the “Immediate Family” of a Grantee means the Grantee’s spouse,
children, stepchildren, grandchildren, parents, stepparents, siblings, grandparents, nieces and nephews. Such Option may be exercised
by such transferee in accordance with the terms of the Award Agreement. If so determined by the Committee, a Grantee may, in the
manner established by the Committee, designate a beneficiary or beneficiaries to exercise the rights of the Grantee and to receive
any distribution with respect to any Award upon the death of the Grantee. A transferee, beneficiary, guardian, legal representative
or other person claiming any rights under the Plan from or through any Grantee shall be subject to the provisions of the Plan and
any applicable Award Agreement, except to the extent the Plan and Award Agreement otherwise provide with respect to such persons,
and to any additional restrictions or limitations deemed necessary or appropriate by the Committee.

 

(d)               
Nothing herein shall be construed as requiring the Committee to honor a QDRO except to the extent required under applicable law.

 

5.5              
Cancellation and Rescission of Awards. Unless
the Award Agreement specifies otherwise, the Committee may cancel, rescind, suspend, withhold, or otherwise limit or restrict any
unexercised Award at any time if the Grantee is not in compliance with all applicable provisions of the Award Agreement and the
Plan or if the Grantee has a Termination of Affiliation.

 

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5.6              
Stand-Alone, Tandem and Substitute Awards. 

 

(a)               
Awards granted under the Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with,
or in substitution for, any other Award granted under the Plan unless such tandem or substitution Award would subject the Grantee
to tax penalties imposed under Section 409A of the Code. If an Award is granted in substitution for another Award or any non-Plan
award or benefit, the Committee shall require the surrender of such other Award or non-Plan award or benefit in consideration for
the grant of the new Award. Awards granted in addition to or in tandem with other Awards or non-Plan awards or benefits may be
granted either at the same time as or at a different time from the grant of such other Awards or non-Plan awards or benefits; provided,
however, that if any SAR is granted in tandem with an Incentive Stock Option, such SAR and Incentive Stock Option must have the
same Grant Date and Term, and the Exercise Price of the SAR may not be less than the Exercise Price of the Incentive Stock Option.

 

(b)               
The Committee may, in its discretion and on such terms and conditions as the Committee considers appropriate in the circumstances,
grant Awards under the Plan (“Substitute Awards”) in substitution for stock and stock-based awards (“Acquired
Entity Awards”) held by current or former employees or non-employee directors of, or consultants to, another corporation
or entity who become Eligible Persons as the result of a merger or consolidation of the employing corporation or other entity (the
“Acquired Entity”) with the Company or an Affiliate or the acquisition by the Company or an Affiliate of property
or stock of the Acquired Entity immediately prior to such merger, consolidation or acquisition in order to preserve for the Grantee
the economic value of all or a portion of such Acquired Entity Award at such price as the Committee determines necessary to achieve
preservation of economic value. The limitations in Section 4.1 on the number of Shares reserved or available for grants shall not
apply to Substitute Awards granted under this Section 5.6(b).

 

5.7              
Compliance with Rule 16b-3. The provisions of
this Section 5.7 will not apply unless and until the Company has a class of stock that is registered under Section 12 of the Exchange
Act.

 

(a)               
Six-Month Holding Period Advice. Unless a Grantee
could otherwise dispose of or exercise a derivative security or dispose of Shares delivered under the Plan without incurring liability
under Section 16(b) of the Exchange Act, the Committee may advise or require a Grantee to comply with the following in order to
avoid incurring liability under Section 16(b) of the Exchange Act: (a) at least six (6) months must elapse from the date of acquisition
of a derivative security under the Plan to the date of disposition of the derivative security (other than upon exercise or conversion)
or its underlying equity security, and (b) Shares granted or awarded under the Plan other than upon exercise or conversion of a
derivative security must be held for at least six (6) months from the date of grant of an Award.

 

(b)               
Reformation to Comply with Exchange Act Rules.
To the extent the Committee determines that a grant or other transaction by a Section 16 Person should comply with applicable provisions
of Rule 16b-3 (except for transactions exempted under alternative Exchange Act rules), the Committee shall take such actions as
necessary to make such grant or other transaction so comply, and if any provision of this Plan or any Award Agreement relating
to a given Award does not comply with the requirements of Rule 16b-3 as then applicable to any such grant or transaction, such
provision will be construed or deemed amended, if the Committee so determines, to the extent necessary to conform to the then applicable
requirements of Rule 16b-3.

 

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(c)               
Rule 16b-3 Administration. Any function relating
to a Section 16 Person shall be performed solely by the Committee or the Board if necessary to ensure compliance with applicable
requirements of Rule 16b-3, to the extent the Committee determines that such compliance is desired. Each member of the Committee
or person acting on behalf of the Committee shall be entitled to, in good faith, rely or act upon any report or other information
furnished to him by any officer, manager or other employee of the Company or any Affiliate, the Company’s independent certified
public accountants or any executive compensation consultant or attorney or other professional retained by the Company to assist
in the administration of the Plan. 

 

5.8              
Deferral of Award Payouts. The Committee may permit
a Grantee to defer, or if and to the extent specified in an Award Agreement, require the Grantee to defer, receipt of the payment
of cash or the delivery of Shares that would otherwise be due by virtue of the lapse or waiver of restrictions with respect to
Restricted Stock Units, the satisfaction of any requirements or goals with respect to Performance Units or Performance Shares,
the lapse or waiver of the deferral period for Deferred Stock, or the lapse or waiver of restrictions with respect to Other Stock-Based
Awards or Cash Incentive Awards. If the Committee permits such deferrals, the Committee shall establish rules and procedures for
making such deferral elections and for the payment of such deferrals, which shall conform in form and substance with applicable
regulations promulgated under Section 409A of the Code and Article 16 to ensure that the Grantee is not subjected to tax penalties
under Section 409A of the Code with respect to such deferrals. Except as otherwise provided in an Award Agreement, any payment
or any Shares that are subject to such deferral shall be made or delivered to the Grantee as specified in the Award Agreement or
pursuant to the Grantee’s deferral election.

 

Article 6.

Stock Options

 

6.1              
Grant of Options. Subject to and consistent with
the provisions of the Plan, Options may be granted to any Eligible Person in such number, and upon such terms, and at any time
and from time to time as shall be determined by the Committee.

 

6.2              
Award Agreement. Each Option grant shall be evidenced
by an Award Agreement that shall specify the Exercise Price, the Term of the Option, the number of Shares to which the Option pertains,
the time or times at which such Option shall be exercisable and such other provisions as the Committee shall determine.

 

6.3              
Option Exercise Price. The Exercise Price of an
Option under this Plan shall be determined in the sole discretion of the Committee but may not be less than one hundred percent
(100%) of the Fair Market Value of a Share on the Grant Date. 

 

6.4              
Grant of Incentive Stock Options. At the time
of the grant of any Option, the Committee may in its discretion designate that such Option shall be made subject to additional
restrictions to permit it to qualify as an Incentive Stock Option. Any Option designated as an Incentive Stock Option:

 

(a)               
shall be granted only to an employee of the Company or a Subsidiary Corporation;

 

(b)               
shall have an Exercise Price of not less than one hundred percent (100%) of the Fair Market Value of a Share on the Grant Date,
and, if granted to a person who owns capital stock (including stock treated as owned under Section 424(d) of the Code) possessing
more than ten percent (10%) of the total combined voting power of all classes of capital stock of the Company or any Subsidiary
Corporation (a “10% Owner”), have an Exercise Price not less than one hundred and ten percent (110%) of the
Fair Market Value of a Share on its Grant Date;

 

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(c)               
shall be for a period of not more than ten (10) years (five (5) years if the Grantee is a 10% Owner) from its Grant Date, and shall
be subject to earlier termination as provided herein or in the applicable Award Agreement;

 

(d)               
shall not have an aggregate Fair Market Value (as of the Grant Date) of Shares with respect to which Incentive Stock Options (whether
granted under the Plan or any other stock option plan of the Grantee’s employer or any parent or Subsidiary Corporation (“Other
Plans”)) are exercisable for the first time by such Grantee during any calendar year (“Current Grant”),
determined in accordance with the provisions of Section 422 of the Code, which exceeds one hundred thousand dollars ($100,000)
(the “$100,000 Limit”);

 

(e)               
shall, if the aggregate Fair Market Value of the Shares (determined on the Grant Date) with respect to the Current Grant and all
Incentive Stock Options previously granted under the Plan and any Other Plans which are exercisable for the first time during a
calendar year (“Prior Grants”) would exceed the $100,000 Limit, be, as to the portion in excess of the $100,000
Limit, exercisable as a separate option that is not an Incentive Stock Option at such date or dates as are provided in the Current
Grant;

 

(f)                
shall require the Grantee to notify the Committee of any disposition of any Shares delivered pursuant to the exercise of the Incentive
Stock Option under the circumstances described in Section 421(b) of the Code (relating to holding periods and certain disqualifying
dispositions) (“Disqualifying Disposition”) within ten (10) days of such a Disqualifying Disposition;

 

(g)               
shall by its terms not be assignable or transferable other than by will or the laws of descent and distribution, and may be exercised,
during the Grantee’s lifetime, only by the Grantee; provided, however, that the Grantee may, to the extent provided in the
Plan in any manner specified by the Committee, designate in writing a beneficiary to exercise his or her Incentive Stock Option
after the Grantee’s death; and

 

(h)               
shall, if such Option nevertheless fails to meet the foregoing requirements, or otherwise fails to meet the requirements of Section
422 of the Code for an Incentive Stock Option, be treated for all purposes of this Plan, except as otherwise provided in subsections
(d) and (e) above, as an Option that is not an Incentive Stock Option.

 

Notwithstanding the
foregoing and Section 3.2, the Committee may, without the consent of the Grantee, at any time before the exercise of an Option
(whether or not an Incentive Stock Option), take any action necessary to prevent such Option from being treated as an Incentive
Stock Option.

 

6.5              
Payment of Exercise Price. Except as otherwise
provided in an Award Agreement, Options shall be exercised by the delivery of a written notice of exercise to the Company, setting
forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares made
by any one or more of the following means:

 

(a)               
cash, personal check or wire transfer;

 

(b)               
with the approval of the Committee, delivery of Common Stock owned by the Grantee prior to exercise, such shares valued at Fair
Market Value on the date of exercise;

 

(c)               
with the approval of the Committee, Shares acquired upon the exercise of such Option, such Shares valued at Fair Market Value on
the date of exercise;

 

     14

    

    

 

(d)               
with the approval of the Committee, Restricted Shares held by the Grantee prior to the exercise of the Option, valued at Fair Market
Value on the date of exercise; or

 

(e)               
subject to applicable law (including the prohibited loan provisions of Section 402 of the Sarbanes Oxley Act of 2002), through
the sale of the Shares acquired on exercise of the Option through a broker-dealer to whom the Grantee has submitted an irrevocable
notice of exercise and irrevocable instructions to deliver promptly to the Company the amount of sale proceeds sufficient to pay
for such Shares, together with, if requested by the Company, the amount of federal, state, local or foreign withholding taxes payable
by Grantee by reason of such exercise.

 

The Committee may in
its discretion specify that, if any Restricted Shares (“Tendered Restricted Shares”) are used to pay the Exercise
Price, (a) all the Shares acquired on exercise of the Option shall be subject to the same restrictions as the Tendered Restricted
Shares, determined as of the date of exercise of the Option, or (b) a number of Shares acquired on exercise of the Option equal
to the number of Tendered Restricted Shares shall be subject to the same restrictions as the Tendered Restricted Shares, determined
as of the date of exercise of the Option.

 

Article 7.

Stock Appreciation Rights

 

7.1              
Issuance. Subject to and consistent with the provisions
of the Plan, the Committee, at any time and from time to time, may grant SARs to any Eligible Person either alone or in addition
to other Awards granted under the Plan. Such SARs may, but need not, be granted in connection with a specific Option granted under
Article 6. The Committee may impose such conditions or restrictions on the exercise of any SAR as it shall deem appropriate.

 

7.2              
Award Agreements. Each SAR grant shall be evidenced
by an Award Agreement in such form as the Committee may approve and shall contain such terms and conditions not inconsistent with
other provisions of the Plan as shall be determined from time to time by the Committee.

 

7.3              
SAR Exercise Price. The Exercise Price of a SAR
shall be determined by the Committee in its sole discretion; provided that the Exercise Price shall not be less than one hundred
percent (100%) of the Fair Market Value of a Share on the date of the grant of the SAR.

 

7.4              
Exercise and Payment. Upon the exercise of an
SAR, a Grantee shall be entitled to receive payment from the Company in an amount determined by multiplying:

 

(a)               
The excess of the Fair Market Value of a Share on the date of exercise over the Exercise Price; by

 

(b)               
The number of Shares with respect to which the SAR is exercised.

 

SARs shall be deemed
exercised on the date written notice of exercise in a form acceptable to the Committee is received by the Secretary of the Company.
The Company shall make payment in respect of any SAR within five (5) days of the date the SAR is exercised. Any payment by the
Company in respect of a SAR may be made in cash, Shares, other property, or any combination thereof, as the Committee, in its sole
discretion, shall determine or, to the extent permitted under the terms of the applicable Award Agreement, at the election of the
Grantee.

 

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Article 8.

Restricted Shares

 

8.1              
Grant of Restricted Shares. Subject to and consistent
with the provisions of the Plan, the Committee, at any time and from time to time, may grant Restricted Shares to any Eligible
Person in such amounts as the Committee shall determine.

 

8.2              
Award Agreement. Each grant of Restricted Shares
shall be evidenced by an Award Agreement that shall specify the Period(s) of Restriction, the number of Restricted Shares granted,
and such other provisions as the Committee shall determine. The Committee may impose such conditions and/or restrictions on any
Restricted Shares granted pursuant to the Plan as it may deem advisable, including restrictions based upon the achievement of specific
performance goals, time-based restrictions on vesting following the attainment of the performance goals, and/or restrictions under
applicable securities laws; provided that such conditions and/or restrictions may lapse, if so determined by the Committee, in
the event of the Grantee’s Termination of Affiliation due to death, Disability, or involuntary termination by the Company
or an Affiliate without Cause.

 

8.3              
Consideration for Restricted Shares. The Committee
shall determine the amount, if any, that a Grantee shall pay for Restricted Shares.

 

8.4              
Effect of Forfeiture. If Restricted Shares are
forfeited, and if the Grantee was required to pay for such shares or acquired such Restricted Shares upon the exercise of an Option,
the Grantee shall be deemed to have resold such Restricted Shares to the Company at a price equal to the lesser of (a) the amount
paid by the Grantee for such Restricted Shares, or (b) the Fair Market Value of a Share on the date of such forfeiture. The Company
shall pay to the Grantee the deemed sale price as soon as is administratively practical. Such Restricted Shares shall cease to
be outstanding and shall no longer confer on the Grantee thereof any rights as a stockholder of the Company, from and after the
date of the event causing the forfeiture, whether or not the Grantee accepts the Company’s tender of payment for such Restricted
Shares.

 

8.5              
Escrow; Legends. The Committee may provide that
the certificates for any Restricted Shares (a) shall be held (together with a stock power executed in blank by the Grantee) in
escrow by the Secretary of the Company until such Restricted Shares become nonforfeitable or are forfeited and/or (b) shall bear
an appropriate legend restricting the transfer of such Restricted Shares under the Plan. If any Restricted Shares become nonforfeitable,
the Company shall cause certificates for such shares to be delivered without such legend.

 

Article 9.

Performance Units and Performance Shares

 

9.1              
Grant of Performance Units and Performance Shares.
Subject to and consistent with the provisions of the Plan, Performance Units or Performance Shares may be granted to any Eligible
Person in such amounts and upon such terms, and at any time and from time to time, as shall be determined by the Committee.

 

9.2              
Value/Performance Goals. The Committee shall set
performance goals in its discretion which, depending on the extent to which they are met, will determine the number or value of
Performance Units or Performance Shares that will be paid to the Grantee.

 

(a)               
Performance Unit. Each Performance Unit shall have an initial value that is established by the Committee at the time of
grant.

 

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(b)               
Performance Share. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date
of grant.

 

9.3              
Earning of Performance Units and Performance Shares.
After the applicable Performance Period has ended, the Grantee of Performance Units or Performance Shares shall be entitled to
payment based on the level of achievement of performance goals set by the Committee. At the discretion of the Committee, the settlement
of Performance Units or Performance Shares may be in cash, Shares of equivalent value, or in some combination thereof, as set forth
in the Award Agreement. If a Grantee is promoted, demoted or transferred to a different business unit of the Company during a Performance
Period, then, to the extent the Committee determines that the Award, the performance goals, or the Performance Period are no longer
appropriate, the Committee may adjust, change, eliminate or cancel the Award, the performance goals, or the applicable Performance
Period, as it deems appropriate in order to make them appropriate and comparable to the initial Award, the performance goals, or
the Performance Period. At the discretion of the Committee, a Grantee may be entitled to receive any dividends or Dividend Equivalents
declared with respect to Shares deliverable in connection with vested Performance Shares which have been earned, but not yet delivered
to the Grantee. 

 

Article 10.

Deferred Stock and Restricted Stock Units

 

10.1          
Grant of Deferred Stock and Restricted Stock Units.
Subject to and consistent with the provisions of the Plan, the Committee, at any time and from time to time, may grant Deferred
Stock and/or Restricted Stock Units to any Eligible Person, in such amount and upon such terms as the Committee shall determine.
Deferred Stock must conform in form and substance with applicable regulations promulgated under Section 409A of the Code and with
Article 16 to ensure that the Grantee is not subjected to tax penalties under Section 409A of the Code with respect to such Deferred
Stock. 

 

10.2          
Vesting and Delivery. 

 

(a)               
Delivery with Respect to Deferred Stock. Delivery of Shares subject to a Deferred Stock grant will occur upon expiration
of the deferral period or upon the occurrence of one or more of the distribution events described in Section 409A(a)(2) of the
Code as specified by the Committee in the Grantee’s Award Agreement for the Award of Deferred Stock. An Award of Deferred
Stock may be subject to such substantial risk of forfeiture conditions as the Committee may impose, which conditions may lapse
at such times or upon the achievement of such objectives as the Committee shall determine at the time of grant or thereafter. Unless
otherwise determined by the Committee, to the extent that the Grantee has a Termination of Affiliation while the Deferred Stock
remains subject to a substantial risk of forfeiture, such Deferred Shares shall be forfeited, unless the Committee determines that
such substantial risk of forfeiture shall lapse in the event of the Grantee’s Termination of Affiliation due to death, Disability,
or involuntary termination by the Company or an Affiliate without “cause.”

 

(b)               
Delivery with Respect to Restricted Stock Units. Delivery of Shares subject to a grant of Restricted Stock Units shall occur
no later than the fifteenth (15th) day of the third (3rd) month following the end of the taxable year of
the Grantee or the fiscal year of the Company in which the Grantee’s rights under such Restricted Stock Units are no longer
subject to a substantial risk of forfeiture as defined in final regulations under Section 409A of the Code. Unless otherwise determined
by the Committee, to the extent that the Grantee has a Termination of Affiliation while the Restricted Stock Units remains subject
to a substantial risk of forfeiture, such Restricted Stock Units shall be forfeited, unless the Committee determines that such
substantial risk of forfeiture shall lapse in the event of the Grantee’s Termination of Affiliation due to death, Disability,
or involuntary termination by the Company or an Affiliate without “cause.”

 

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10.3          
Voting and Dividend Equivalent Rights Attributable to Deferred Stock and Restricted Stock Units.
A Grantee awarded Deferred Stock or Restricted Stock Units shall have no voting rights with respect to such Deferred Stock or Restricted
Stock Units prior to the delivery of Shares in settlement of such Deferred Stock and/or Restricted Stock Units. Unless otherwise
determined by the Committee, a Grantee shall have the rights to receive Dividend Equivalents in respect of Deferred Stock and/or
Restricted Stock Units, which Dividend Equivalents shall be deemed reinvested in additional Shares of Deferred Stock or Restricted
Stock Units, as applicable, which shall remain subject to the same forfeiture conditions applicable to the Deferred Stock or Restricted
Stock Units to which such Dividend Equivalents relate. 

 

Article 11.

Dividend Equivalents

 

The Committee is authorized
to grant Awards of Dividend Equivalents alone or in conjunction with other Awards. The Committee may provide that Dividend Equivalents
shall be paid or distributed when accrued or shall be deemed to have been reinvested in additional Shares or additional Awards
or otherwise reinvested subject to distribution at the same time and subject to the same conditions as the Award to which it relates;
provided, however, that any Dividend Equivalents granted in conjunction with any Award that is subject to forfeiture conditions
shall remain subject to the same forfeiture conditions applicable to the Award to which such Dividend Equivalents relate and any
payments in respect of any Dividend Equivalents granted in conjunction with any Options or SARs may not be conditioned, directly
or indirectly, on the Grantee’s exercise of the Options or SARs or paid at the same time that the Options or SARs are exercised.
The timing of payment or distribution of Dividend Equivalents must comply with the requirements of Section 409A of the Code.

 

Article 12.

Bonus Shares

 

Subject to the terms
of the Plan, the Committee may grant Bonus Shares to any Eligible Person, in such amount and upon such terms and at any time and
from time to time as shall be determined by the Committee.

 

Article 13.

Other Stock-Based Awards

 

The Committee is authorized,
subject to limitations under applicable law, to grant such other Awards that are denominated or payable in, valued in whole or
in part by reference to, or otherwise based on, or related to, Shares, as deemed by the Committee to be consistent with the purposes
of the Plan, including Shares awarded which are not subject to any restrictions or conditions, convertible or exchangeable debt
securities or other rights convertible or exchangeable into Shares, and Awards valued by reference to the value of securities of
or the performance of specified Affiliates. Subject to and consistent with the provisions of the Plan, the Committee shall determine
the terms and conditions of such Awards. Except as provided by the Committee, Shares delivered pursuant to a purchase right granted
under this Article 13 shall be purchased for such consideration, paid for by such methods and in such forms, including cash, Shares,
outstanding Awards or other property, as the Committee shall determine.

 

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Article 14.

Non-Employee Director Awards

 

Subject to the terms
of the Plan, the Board may grant Awards to any Non-Employee Director, in such amount and upon such terms and at any time and from
time to time as shall be determined by the full Board in its sole discretion. Except as otherwise provided in Section 5.6(b), a
Non-Employee Director may not be granted Awards with respect to Shares that have a Fair Market Value (determined as of the date
of grant) in excess of five hundred thousand dollars ($500,000) in a single calendar year.

 

Article 15.

Amendment, Modification, and Termination

 

15.1          
Amendment, Modification, and Termination. Subject
to Section 15.2, the Board may, at any time and from time to time, alter, amend, suspend, discontinue or terminate the Plan in
whole or in part without the approval of the Company’s stockholders, except that (a) any amendment or alteration shall be
subject to the approval of the Company’s stockholders if such stockholder approval is required by any federal or state law
or regulation or the rules of any stock exchange or automated quotation system on which the Shares may then be listed or quoted,
and (b) the Board may otherwise, in its discretion, determine to submit other such amendments or alterations to stockholders for
approval.

 

15.2          
Awards Previously Granted. Except as otherwise
specifically permitted in the Plan or an Award Agreement, no termination, amendment, or modification of the Plan shall adversely
affect in any material way any Award previously granted under the Plan, without the written consent of the Grantee of such Award.

 

Article 16.

Compliance with Section 409A of the Code

 

16.1          
Awards Subject to Section 409A of the Code. The
provisions of this Article 16 shall apply to any Award or portion thereof that is or becomes deferred compensation subject to Section
409A of the Code (a “409A Award”), notwithstanding any provision to the contrary contained in the Plan or the
Award Agreement applicable to such Award. 

 

16.2          
Deferral and/or Distribution Elections. Except
as otherwise permitted or required by Section 409A of the Code, the following rules shall apply to any deferral and/or elections
as to the form or timing of distributions (each, an “Election”) that may be permitted or required by the Committee
with respect to a 409A Award:

 

(a)               
Any Election must be in writing and specify the amount being deferred, and the time and form of distribution (i.e., lump sum or
installments) as permitted by this Plan. An Election may but need not specify whether payment will be made in cash, Shares or other
property.

 

(b)               
Any Election shall become irrevocable as of the deadline specified by the Committee, which shall not be later than December 31
of the year preceding the year in which services relating to the Award commence; provided, however, that if the Award qualifies
as “performance-based compensation” for purposes of Section 409A of the Code and is based on services performed over
a period of at least twelve (12) months, then the deadline may be no later than six (6) months prior to the end of such Performance
Period.

 

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(c)               
Unless otherwise provided by the Committee, an Election shall continue in effect until a written election to revoke or change such
Election is received by the Committee, prior to the last day for making an Election for the subsequent year.

 

16.3          
Subsequent Elections. Except as otherwise permitted
or required by Section 409A of the Code, any 409A Award which permits a subsequent Election to further defer the distribution or
change the form of distribution shall comply with the following requirements:

 

(a)               
No subsequent Election may take effect until at least twelve (12) months after the date on which the subsequent Election is made;

 

(b)               
Each subsequent Election related to a distribution upon separation from service, a specified time, or a Change in Control must
result in a delay of the distribution for a period of not less than five (5) years from the date such distribution would otherwise
have been made; and

 

(c)               
No subsequent Election related to a distribution to be made at a specified time or pursuant to a fixed schedule shall be made less
than twelve (12) months prior to the date the first scheduled payment would otherwise be made.

 

16.4          
Distributions Pursuant to Deferral Elections.
Except as otherwise permitted or required by Section 409A of the Code, no distribution in settlement of a 409A Award may commence
earlier than:

 

(a)               
Separation from Service;

 

(b)               
the date the Participant becomes Disabled (as defined in Section 2.15(b);

 

(c)               
the Participant’s death;

 

(d)               
a specified time (or pursuant to a fixed schedule) that is either (a) specified by the Committee upon the grant of the Award and
set forth in the Award Agreement or (b) specified by the Grantee in an Election complying with the requirements of Section 16.2
and/or 16.3, as applicable; or

 

(e)               
a change in ownership of the Company or a substantial portion of its assets within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(v)
or (vii) or a change in effective control of the Company within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(vi) (a
“Change in Control”).

 

16.5          
Six Month Delay. Notwithstanding anything herein
or in any Award Agreement or Election to the contrary, to the extent that distribution of a 409A Award is triggered by a Grantee’s
Separation from Service, if the Grantee is then a “specified employee” (as defined in Treasury Regulation Section 1.409A-1(i)),
no distribution may be made before the date which is six (6) months after such Grantee’s Separation from Service, or, if
earlier, the date of the Grantee’s death.

 

16.6          
Death or Disability. Unless the Award Agreement
otherwise provides, if a Grantee dies or becomes Disabled before complete distribution of amounts payable upon settlement of a
409A Award, such undistributed amounts, to the extent vested, shall be distributed as provided in the Participants Election. If
the Participant has made no Election with respect to distributions upon death or Disability, all such distributions shall be paid
in a lump sum within ninety (90) days following the date of the Participant’s death or Disability.

 

     20

    

    

 

16.7          
No Acceleration of Distributions. This Plan does
not permit the acceleration of the time or schedule of any distribution under a 409A Award, except as provided by Section 409A
of the Code and/or applicable regulations or rulings issued thereunder.

 

Article 17.

Withholding

 

17.1          
Required Withholding.

 

(a)               
The Committee in its sole discretion may provide that when taxes are to be withheld in connection with the exercise of an Option
or SAR, or upon the lapse of restrictions on Restricted Shares, or upon the transfer of Shares, or upon payment of any other benefit
or right under this Plan (the date on which such exercise occurs or such restrictions lapse or such payment of any other benefit
or right occurs hereinafter referred to as the “Tax Date”), the Grantee may elect to make payment for the withholding
of federal, state and local taxes, including Social Security and Medicare (“FICA”) taxes by one or a combination
of the following methods:

 

(i)                     
paying an amount in cash equal to the amount to be withheld (including cash obtained through the sale of the Shares acquired on
exercise of an Option or SAR, upon the lapse of restrictions on Restricted Shares, or upon the transfer of Shares, through a broker-dealer
to whom the Grantee has submitted an irrevocable instructions to deliver promptly to the Company, the amount to be withheld);

 

(ii)                   
delivering part or all of the amount to be withheld in the form of Common Stock valued at its Fair Market Value on the Tax Date;

 

(iii)                 
requesting the Company to withhold from those Shares that would otherwise be received upon exercise of the Option or SAR, upon
the lapse of restrictions on Restricted Stock, or upon the transfer of Shares, a number of Shares having a Fair Market Value on
the Tax Date equal to the amount to be withheld; or

 

(iv)                  
withholding from any compensation otherwise due to the Grantee.

 

The Committee
in its sole discretion may provide that the maximum amount of tax withholding (a) upon exercise of an Option or SARs, (b) upon
the lapse of restrictions on Restricted Shares, (c) upon the transfer of Shares, (d) to be satisfied by withholding Shares upon
exercise of such Option or SAR, (e) upon the lapse of restrictions on Restricted Shares, or (f) upon the transfer of Shares, pursuant
to clause (c) above, shall not exceed the minimum amount of taxes, including FICA taxes, required to be withheld under federal,
state and local law. An election by Grantee under this subsection is irrevocable. Any fractional share amount and any additional
withholding not paid by the withholding or surrender of Shares must be paid in cash. If no timely election is made, the Grantee
must deliver cash to satisfy all tax withholding requirements.

 

(b)               
Any Grantee who makes a Disqualifying Disposition (as defined in Section 6.4(f)) or an election under Section 83(b) of the Code
shall remit to the Company an amount sufficient to satisfy all resulting tax withholding requirements in the same manner as set
forth in subsection (a).

 

17.2          
Notification under Code Section 83(b). If the
Grantee, in connection with the exercise of any Option, or the grant of Restricted Shares, makes the election permitted under Section
83(b) of the Code to include in such Grantee’s gross income in the year of transfer the amounts specified in Section 83(b)
of the Code, then such Grantee shall notify the Company of such election within ten (10) days of filing the notice of the election
with the Internal Revenue Service, in addition to any filing and notification required pursuant to regulations issued under Section
83(b) of the Code. The Committee may, in connection with the grant of an Award or at any time thereafter, prohibit a Grantee from
making the election described above.

 

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Article 18.

Additional Provisions

 

18.1          
Successors. Subject to Section 4.2(b), all obligations
of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether
the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise of all or substantially
all of the business and/or assets of the Company.

 

18.2          
Severability. If any part of the Plan is declared
by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any other
part of the Plan. Any Section or part of a Section so declared to be unlawful or invalid shall, if possible, be construed in a
manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining
lawful and valid.

 

18.3          
Requirements of Law. The granting of Awards and
the delivery of Shares under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by
any governmental agencies or national securities exchanges as may be required. Notwithstanding any provision of the Plan or any
Award, Grantees shall not be entitled to exercise, or receive benefits under, any Award, and the Company (and any Affiliate) shall
not be obligated to deliver any Shares or deliver benefits to a Grantee, if such exercise or delivery would constitute a violation
by the Grantee or the Company of any applicable law or regulation.

 

18.4          
Securities Law Compliance.

 

(a)               
If the Committee deems it necessary to comply with any applicable securities law, or the requirements of any stock exchange upon
which Shares may be listed, the Committee may impose any restriction on Awards or Shares acquired pursuant to Awards under the
Plan as it may deem advisable. In addition, if requested by the Company and any underwriter engaged by the Company, Shares acquired
pursuant to Awards may not be sold or otherwise transferred or disposed of for such period following the effective date of any
registration statement of the Company filed under the Securities Act as the Company or such underwriter shall specify reasonably
and in good faith, not to exceed ninety (90) days in the case of any public offering. All certificates for Shares delivered under
the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as
the Committee may deem advisable under the rules, regulations and other requirements of the SEC, any stock exchange upon which
Shares are then listed, any applicable securities law, and the Committee may cause a legend or legends to be put on any such certificates
to make appropriate reference to such restrictions. If so requested by the Company, the Grantee shall make a written representation
to the Company that he or she will not sell or offer to sell any Shares unless a registration statement shall be in effect with
respect to such Shares under the Securities Act of 1933, as amended, and any applicable state securities law or unless he or she
shall have furnished to the Company, in form and substance satisfactory to the Company, that such registration is not required.

 

     22

    

    

 

(b)               
If the Committee determines that the exercise or nonforfeitability of, or delivery of benefits pursuant to, any Award would violate
any applicable provision of securities laws or the listing requirements of any national securities exchange or national market
system on which are listed any of the Company’s equity securities, then the Committee may postpone any such exercise, nonforfeitability
or delivery, as applicable, but the Company shall use all reasonable efforts to cause such exercise, nonforfeitability or delivery
to comply with all such provisions at the earliest practicable date.

 

18.5          
Forfeiture Events. Notwithstanding any provisions
herein to the contrary, the Committee shall have the authority to determine (and may so provide in any Award Agreement) that a
Grantee’s (including his or her estate’s, beneficiary’s or transferee’s) rights (including the right to
exercise any Option or SAR), payments and benefits with respect to any Award shall be subject to reduction, cancellation, forfeiture
or recoupment (to the extent permitted by applicable law) in the event of the Participant’s termination for Cause; serious
misconduct; violation of the Company’s or an Affiliate’s policies; breach of fiduciary duty; unauthorized disclosure
of any trade secret or confidential information of the Company or an Affiliate; breach of applicable noncompetition, nonsolicitation,
confidentiality or other restrictive covenants; or other conduct or activity that is in competition with the business of the Company
or an Affiliate, or otherwise detrimental to the business, reputation or interests of the Company and/or an Affiliate; or upon
the occurrence of certain events specified in the applicable Award Agreement (in any such case, whether or not the Grantee is then
an Employee or Non-Employee Director). The determination of whether a Grantee's conduct, activities or circumstances are described
in the immediately preceding sentence shall be made by the Committee in its discretion, and pending any such determination, the
Committee shall have the authority to suspend the exercise, payment, delivery or settlement of all or any portion of such Grantee’s
outstanding Awards pending any investigation of the matter. 

 

18.6          
No Rights as a Stockholder. No Grantee shall have
any rights as a stockholder of the Company with respect to the Shares (other than Restricted Shares) which may be deliverable upon
exercise or payment of such Award until such Shares have been delivered to him or her. Restricted Shares, whether held by a Grantee
or in escrow by the Secretary of the Company, shall confer on the Grantee all rights of a stockholder of the Company, except as
otherwise provided in the Plan or Award Agreement. At the time of a grant of Restricted Shares, the Committee may require the payment
of cash dividends thereon to be deferred and, if the Committee so determines, reinvested in additional Restricted Shares. Stock
dividends and deferred cash dividends issued with respect to Restricted Shares shall be subject to the same restrictions and other
terms as apply to the Restricted Shares with respect to which such dividends are issued. The Committee may in its discretion provide
for payment of interest on deferred cash dividends.

 

18.7          
Nature of Payments. Unless otherwise specified
in the Award Agreement, Awards shall be special incentive payments to the Grantee and shall not be taken into account in computing
the amount of salary or compensation of the Grantee for purposes of determining any pension, retirement, death or other benefit
under (a) any pension, retirement, profit sharing, bonus, insurance or other employee benefit plan of the Company or any Affiliate,
except as such plan shall otherwise expressly provide, or (b) any agreement between (a) the Company or any Affiliate and (b) the
Grantee, except as such agreement shall otherwise expressly provide.

 

18.8          
Non-Exclusivity of Plan. Neither the adoption
of the Plan by the Board nor its submission 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 compensatory arrangements for employees or Non-Employee Directors as
it may deem desirable.

 

18.9          
Governing Law. The Plan, and all agreements hereunder,
shall be construed in accordance with and governed by the laws of the State of Delaware, other than its laws respecting choice
or conflicts of law rule or principles that might otherwise refer construction or interpretation of the Plan to the substantive
law of another jurisdiction. Unless otherwise provided in the Award Agreement, Participants are deemed to submit to the exclusive
jurisdiction and venue of the federal or state courts of the State of Delaware, to resolve any and all issues that may arise out
of or relate to the Plan or any related Award Agreement.

 

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18.10       
Unfunded Status of Awards; Creation of Trusts.
The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation. With respect to any
payments not yet made to a Grantee pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give any such
Grantee any rights that are greater than those of a general creditor of the Company; provided, however, that the Committee may
authorize the creation of trusts or make other arrangements to meet the Company’s obligations under the Plan to deliver cash,
Shares or other property pursuant to any Award which trusts or other arrangements shall be consistent with the “unfunded”
status of the Plan unless the Committee otherwise determines.

 

18.11       
Affiliation. Nothing in the Plan or an Award Agreement
shall interfere with or limit in any way the right of the Company or any Affiliate to terminate any Grantee’s employment
or consulting contract at any time, nor confer upon any Grantee the right to continue in the employ of or as an officer of or as
a consultant to or Non-Employee Director of the Company or any Affiliate.

 

18.12       
Participation. No employee or officer shall have
the right to be selected to receive an Award under this Plan or, having been so selected, to be selected to receive a future Award.

 

18.13       
Military Service. Awards shall be administered
in accordance with Section 414(u) of the Code and the Uniformed Services Employment and Reemployment Rights Act of 1994.

 

18.14       
Construction. The following rules of construction
will apply to the Plan: (a) the word “or” is disjunctive but not necessarily exclusive, and (b) words in the singular
include the plural, words in the plural include the singular, and words in the neuter gender include the masculine and feminine
genders and words in the masculine or feminine gender include the other neuter genders.

 

18.15       
Headings. The headings of articles and sections
are included solely for convenience of reference, and if there is any conflict between such headings and the text of this Plan,
the text shall control.

 

18.16       
Obligations. Unless otherwise specified in the
Award Agreement, the obligation to deliver, pay or transfer any amount of money or other property pursuant to Awards under this
Plan shall be the sole obligation of a Grantee’s employer; provided that the obligation to deliver or transfer any Shares
pursuant to Awards under this Plan shall be the sole obligation of the Company.

 

18.17       
No Right to Continue as Director. Nothing in the
Plan or any Award Agreement shall confer upon any Non-Employee Director the right to continue to serve as a director of the Company.

 

18.18       
Stockholder Approval. All Incentive Stock Options
granted on or after the Effective Date and prior to the date the Company’s stockholders approve the Plan are expressly conditioned
upon and subject to approval of the Plan by the Company’s stockholders.

 

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Annex A

 

Notwithstanding anything to the contrary
in the Plan, the following provisions shall apply to Grantees who are German residents employed with an Affiliate of the Company
operating a business in Germany:

 

		1.	Article 17 of the Plan shall read:

 

“Required Withholding

 

(a)               
The Committee in its sole discretion may provide that when taxes, including social security contributions (Sozialversicherungsbeiträge)
are to be withheld in connection with the exercise of an Option or upon the transfer of Shares, or upon payment of any other benefit
or right under this Plan (the date on which such exercise occurs or such transfer of Shares or such payment of any other benefit
or right occurs hereinafter referred to as the “Tax Date”), the Grantee may elect to make payment for the withholding
of German taxes, e.g. wage tax including social security contributions (Sozialversicherungsbeiträge), by one or a combination
of the following methods to the Company or the appropriate Affiliate that employed the Grantee:

 

(i)                     
payment of an amount in cash equal to the amount to be withheld (including cash obtained through the sale of the Shares acquired
on exercise of an Option or upon the transfer of Shares, through a broker-dealer to whom the Grantee has submitted an irrevocable
instructions to deliver promptly to the Company or the appropriate Affiliate that employed the Grantee, the amount to be withheld);

 

(ii)                   
requesting the Company to withhold from those Shares that would otherwise be received upon exercise of the Option or upon the transfer
of Shares, a number of Shares having a Fair Market Value on the Tax Date equal to the amount to be withheld; or

 

(iii)                 
withholding from any compensation otherwise due to the Grantee.

 

The Committee
in its sole discretion may provide that the maximum amount of tax withholding upon exercise of an Option or upon the transfer of
Shares, to be satisfied by withholding Shares upon exercise of such Option or upon the transfer of Shares, pursuant to clause (ii)
above shall not exceed the minimum amount of taxes, including social security contributions, required to be withheld under federal,
state and local law.  An election by a Grantee under this subsection is irrevocable.  Any fractional share amount and
any additional withholding not paid by the withholding or surrender of Shares must be paid in cash.  If no timely election
is made, the Grantee must deliver cash to satisfy all tax withholding requirements.”

 

		2.	Participation in the
Plan and the grant of Awards does not result in the establishment of an employment relationship with the Company. Irrespective
of in the Plan, the employing Affiliate, namely Immunic AG or Immunic GmbH, shall remain the sole employing entity (“Employing
Entity”) of the Grantee. Participation in the Plan does constitute a component of remuneration under employment with
the Employing Entity. Any actions undertaken by the Employing Entity or involvement of the Employing Entity in the administration
of the Plan are performed in the name of the Company and/or the Committee and shall not be deemed to establish any claim against
the Employing Entity for performance of the Plan. Thus, the Employing Entity shall not be held liable for proper performance of
the Plan. Irrespective of any information provided or support delivered by the Employing Entity, the Employing Entity does not
assume any obligation in the context of the Plan.

 

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		3.	Participation in the
Plan is governed by the laws of the State of Delaware, other than its laws respecting choice or conflicts of law rule or principles
that might otherwise refer construction or interpretation of the Plan to the substantive law of another jurisdiction. Grantee submits
to the exclusive jurisdiction and venue of the federal or state courts of the State of Delaware.

 

		4.	Participation in the
Plan is granted on an exclusively voluntary basis. Even if there is a repeated grant of rights and without express notification
that the grant is paid voluntarily, no legal claim for future grants exists, and further grants remain in the complete discretion
of the Company.

 

		5.	To the extent that participation
in the Plan is subject to mandatory German laws which cannot be circumvented by no. 2 above, the definition of “Cause”
(as set forth in Section 2.6) or any Award Agreement shall be interpreted to mean a serious cause as determined in section 626
of the German Civil Code (“Bürgerliches Gesetzbuch”) as regards a material breach of the Grantee’s
obligations deriving from employment with the Employing Entity as well as determined in the Protection Against Unfair Dismissal
Act (“Kündigungsschutzgesetz”) for a dismissal based on the behavior of an employee (“verhaltensbedingter
Kündigungsgrund”). To the extent that participation in the Plan is subject to mandatory German laws that cannot
be circumvented by Section 2 of this Annex A, “Disability” or “Disabled” shall be interpreted pursuant
to the German Social Security Code IX (“Sozialgesetzbuch IX”). Termination of Affiliation shall occur on the
expiration of the last day the Grantee is employed with the Employing Entity, thus, start of a release from duties to work for
whatever reason or any other paid or unpaid absence from work while the employment relationship with the Employing Entity is continuing
shall not be deemed a Termination of Affiliation. 

 

		6.	Participation in the
Plan requires the processing of personal data of the Grantee as defined in and as may be subject to the provisions of Regulation
(EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard
to the processing of personal data and on the free movement of such data and repealing Directive 95/46/EC (General Data Protection
Regulation) and of the Federal Data Protection Act (Bundesdatenschutzgesetz) and other data protection legislation of
the Federal Republic of Germany (together “Applicable Data Protection Laws”). The Company will process Grantee’s
personal data in strict compliance with Applicable Data Protection Laws. The Grantee acknowledges that its consent may be required
for such processing under Applicable Data Protection Laws and agrees that its participation in the Plan and the grant of any Awards
or any other rights hereunder is subject to the Grantee providing and not withdrawing such consent.

 

* * * * * *

 

26

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