Document:

EX-10.5

 Exhibit 10.5 

AUGUST 2014 STOCK INCENTIVE PLAN 

For: 
 AVADIM
TECHNOLOGIES INC. 
 Dated August 14, 2014 

Avadim Technologies Inc. 

81 Thompson Street 
 Asheville,
North Carolina 28803 

 AVADIM TECHNOLOGIES INC. 

AUGUST 2014 STOCK INCENTIVE PLAN 

 

	1.	 PURPOSE 

1.1 The purpose of this August 2014 Stock Incentive Plan (the “Plan”) is to advance the interests of Avadim Technologies Inc. (the
“Company”) by encouraging Eligible Participants (as herein defined) to acquire shares of the Company, thereby increasing their proprietary interest in the Company, encouraging them to remain associated with the Company and furnish
them with additional incentive in their efforts on behalf of the Company in the conduct of their affairs. 
 1.2 This Plan is specifically designed for
Eligible Participants of the Company who are residents of the United States and/or subject to taxation in the United States, although Awards (as herein defined) under this Plan may be issued to other Eligible Participants. 

 

	2.	 DEFINITIONS 

2.1 As used herein, the following definitions shall apply: 
  

	 	(a)	 “Administrator” means the Committee or otherwise the Board; 

 

	 	(b)	 “Affiliate” and “Associate” have the meanings ascribed to such terms in Rule 12b-2 promulgated under the Exchange Act; 

  

	 	(c)	 “Applicable Laws” means the legal requirements relating to the administration of stock
incentive plans, if any, under applicable provisions of federal securities laws, state corporate laws, state or provincial securities laws, the Code, the rules of any applicable stock exchange or national market system, and the rules of any foreign
jurisdiction applicable to Awards granted to residents therein; 

  

	 	(d)	 “Award” means the grant of an Option, SAR, Restricted Stock, unrestricted. Shares, Restricted
Stock Unit, Deferred Stock Unit or other right or benefit under this Plan; 

  

	 	(e)	 “Award Agreement” means the written agreement evidencing the grant of an Award executed by the
Company and the Grantee, including any amendments thereto; 

  

	 	(f)	 “Award Right” means each right to acquire a Share pursuant to an Award; 

 

	 	(g)	 “Board” means the Board of Directors of the Company; 

  
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	 	(h)	 “Cause” means, with respect to the termination by the Company or a Related Entity of the
Grantee’s Continuous Service, that such termination is for “Cause” as such term is expressly defined in a then-effective written agreement between the Grantee and the Company or such Related Entity, or in the absence of such
then-effective written agreement and definition, is based on, in the determination of the Administrator, the Grantee’s: 

  

	 	(i)	 refusal or failure to act in accordance with any specific, lawful direction or order of the Company or a
Related Entity; 

  

	 	(ii)	 unfitness or unavailability for service or unsatisfactory performance (other than as a result of Disability);

  

	 	(iii)	 performance of any act or failure to perform any act in bad faith and to the detriment of the Company or a
Related Entity; 

  

	 	(iv)	 dishonesty, intentional misconduct or material breach of any agreement with the Company or a Related Entity; or

  

	 	(v)	 commission of a crime involving dishonesty, breach of trust, or physical or emotional harm to any person;

  

	 	(i)	 “Change of Control” means, except as provided below, a change in ownership or control of the
Company effected through any of the following transactions: 

  

	 	(i)	 the direct or indirect acquisition by any person or related group of persons (other than an acquisition from or
by the Company or by a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than 50% of the total combined voting power of the Company’s outstanding securities pursuant to a tender or exchange offer made directly to the
Company’s shareholders which a majority of the Continuing Directors who are not Affiliates or Associates of the offeror do not recommend such shareholders accept; 

 

	 	(ii)	 a change in the composition of the Board over a period of 36 months or less such that a majority of the Board
members (rounded up to the next whole number) ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who are Continuing Directors; 

 

	 	(iii)	 the sale or exchange by the Company (in one or a series of transactions) of all or substantially all of its
assets to any other person or entity; or 

  

	 	(iv)	 approval by the shareholders of the Company of a plan to dissolve and liquidate the Company.

  
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 Notwithstanding the foregoing, the following transactions shall not
constitute a “Change of Control”: 
  

	 	(i)	 the closing of any public offering of the Company’s securities pursuant to an effective registration
statement filed under the United States Securities Act of 1933, as amended; 

  

	 	(ii)	 the closing of a public offering of the Company’s securities through the facilities of any stock exchange;
or 

  

	 	(iii)	 with respect to an Award that is subject to Section 409A of the Code, and payment or settlement of such
Award is to be accelerated in connection with an event that would otherwise constitute a Change of Control, no event set forth previously in this definition shall constitute a Change of Control for purposes of this Plan or any Award Agreement unless
such event also constitutes a “change in the ownership”, a “change in the effective control” or a “change in the ownership of a substantial portion of the assets of the corporation” as defined under
Section 409A of the Code and Treasury guidance formulated thereunder, which guidance currently provides that: 

  

	 	(A)	 a change in ownership of a corporation shall be deemed to have occurred if any one person or more than one
person acting as a group acquires stock of a corporation that constitutes more than 50% of the total Fair Market Value or total voting power of the stock of the corporation. Stock acquired by any person or group of people who already owns more than
50% of such total Fair Market Value or total voting power of stock shall not trigger a change in ownership; 

  

	 	(B)	 a change in the effective control of a corporation generally shall be deemed to have occurred if within a 12-month period either: 

  

	 	(I)	 any one person or more than one person acting as a group acquires ownership of stock possessing 35% or more of
the total voting power of the stock of the corporation; or 

  

	 	(II)	 a majority of the members of the corporation’s board of directors is replaced by directors whose
appointment or election is not endorsed by a majority of the members of the corporation’s board of directors prior to the date of the appointment or election; and 

 

	 	(C)	 a change in the ownership of a substantial portion of the corporation’s assets generally is deemed to
occur if within a 12-month period any person, or more than one person acting as a group, acquires assets from the corporation that have a total gross fair market value at least equal to 40% of the total gross
fair market value of all the corporation’s assets immediately prior to such acquisition. The gross fair market value of assets is determined without regard to any liabilities; 

  
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	 	(j)	 “Code” means the United States Internal Revenue Code of 1986, as amended;

  

	 	(k)	 “Committee” means the Compensation Committee or any other committee appointed by the Board to
administer this Plan in accordance with the provisions of this Plan; provided, however, that: 

  

	 	(i)	 where available, the Committee shall consist of two or more members of the Board; 

 

	 	(ii)	 where available, the directors appointed to serve on the Committee shall be “non-employee directors” (within the meaning of Rule 16b-3 promulgated under the Exchange Act) and “outside directors” (within the meaning of
Section 162(m) of the Code) to the extent that Rule 16b-3 and, if necessary for relief from the limitation under Section 162(m) of the Code and such relief is sought by the Company,
Section 162(m) of the Code, respectively, are applicable; 

  

	 	(iii)	 the mere fact that a Committee member shall fail to qualify under either of the foregoing requirements set
forth in Section 2.1(k)(ii) shall not invalidate any Award made by the Committee which Award is otherwise validly made under the Plan; and 

  

	 	(iv)	 members of the Committee may be appointed from time to time by, and shall serve at the pleasure of, the Board;

  

	 	(l)	 “Common Stock” means the Common stock of the Company; 

 

	 	(m)	 “Company” means Avadim Technologies Inc., a Wyoming corporation; 

 

	 	(n)	 “Consultant” means any person (other than an Employee) who is engaged by the Company or any
Related Entity to render consulting or advisory services to the Company or such Related Entity; 

  

	 	(o)	 “Continuing Directors” means members of the Board who either (i) have been Board members
continuously for a period of at least 36 months, or (ii) have been Board members for less than 36 months and were appointed or nominated for election as Board members by at least a majority of the Board members described in clause (i) who
were still in office at the time such appointment or nomination was approved by the Board; 

  

	 	(p)	 “Continuous Service” means that the provision of services to the Company or a Related Entity
in any capacity of Employee, Director or Consultant that is not interrupted or terminated. Continuous Service shall not be considered interrupted in the case of (i) any approved leave of absence, (ii) transfers between locations of the
Company or among the Company, any Related Entity, or any successor, in any 

  
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capacity of Employee, Director or Consultant, or (iii) any change in status as long as the individual remains in the service of the Company or a Related Entity in any capacity of Employee,
Director or Consultant (except as otherwise provided in the Award Agreement). An approved leave of absence shall include sick leave, maternity or paternity leave, military leave, or any other authorized personal leave. For purposes of Incentive
Stock Options, no such leave may exceed 90 calendar days, unless reemployment upon expiration of such leave is guaranteed by statute or contract; 

  

	 	(q)	 “Corporate Transaction” means any of the following transactions: 

 

	 	(i)	 a merger or consolidation in which the Company is not the surviving entity, except for a transaction the
principal purpose of which is to change the jurisdiction in which the Company is organized; 

  

	 	(ii)	 the sale, transfer or other disposition of all or substantially all of the assets of the Company (including the
capital stock of the Company’s subsidiary corporations) in connection with the complete liquidation or dissolution of the Company; or 

  

	 	(iii)	 any reverse merger in which the Company is the surviving entity but in which securities possessing more than
50% of the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to such merger; 

 

	 	(r)	 “Covered Employee” means an Employee who is a “covered employee” under
Section 162(m)(3) of the Code; 

  

	 	(s)	 “Deferred Stock Units” means Awards that are granted to Directors and are subject to the
additional provisions set out in Subpart A which is attached hereto and which forms a material part hereof; 

  

	 	(t)	 “Director” means a member of the Board or the board of directors of any Related Entity;

  

	 	(u)	 “Disability” or “Disabled” means that a Grantee is unable to carry out the
responsibilities and functions of the position held by the Grantee by reason of any medically determinable physical or mental impairment. A Grantee shall not be considered to have incurred a Disability unless he or she furnishes proof of such
impairment sufficient to satisfy the Administrator in its discretion. Notwithstanding the above, (i) with respect to an Incentive Stock Option, Disability or Disabled shall mean permanent and total disability as defined in Section 22(e)(3)
of the Code and (ii) to the extent an Option is subject to Section 409A of the Code, and payment or settlement of the Option is to be accelerated solely as a result of the Eligible Participant’s Disability, Disability shall have the
meaning ascribed thereto under Section 409A of the Code and the Treasury guidance promulgated thereunder; 

  
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	 	(v)	 “Disinterested Shareholder Approval” means approval by a majority of the votes cast by all the
Company’s shareholders at a duly constituted shareholders’ meeting, excluding votes attached to shares beneficially owned by Insiders; 

  

	 	(w)	 “Eligible Participant” means any person who is an Officer, a Director, an Employee or a
Consultant, including individuals who are foreign nationals or are employed or reside outside the United States; 

  

	 	(x)	 “Employee” means any person who is a full-time or part-time employee of the Company or any
Related Entity; 

  

	 	(y)	 “Exchange Act” means the United States Securities Exchange Act of 1934, as amended;

  

	 	(z)	 “Fair Market Value” means, as of any date, the value of a Share determined in good faith by
the Administrator. By way of illustration, but not limitation, for the purpose of this definition, good faith shall be met if the Administrator employs the following methods: 

 

	 	(i)	 Listed Stock. If the Common Stock is traded on any established stock exchange or quoted on a national
market system, Fair Market Value shall be (A) the closing sales price for the Common Stock as quoted on that stock exchange or system for the date the value is to be determined (the “Value Date”), or (B) if the rules of
the applicable stock exchange require, the volume-weighted average trading price for five days prior to the date the Board approves the grant of the Award. If no sales are reported as having occurred on the Value Date, Fair Market Value shall be
that closing sales price for the last preceding trading day on which sales of Common Stock is reported as having occurred. If no sales are reported as having occurred during the five trading days before the Value Date, Fair Market Value shall be the
closing bid for Common Stock on the Value Date. If the Common Stock is listed on multiple exchanges or systems, Fair Market Value shall be based on sales or bids on the primary exchange or system on which Common Stock is traded or quoted. If the
rules of any applicable stock exchange or system require a different method of calculating Fair Market Value, then such method as is required by those rules; 

  

	 	(ii)	 Stock Quoted by Securities Dealer. If Common Stock is regularly quoted by a recognized securities dealer
but selling prices are not reported on any established stock exchange or quoted on a national market system, Fair Market Value shall be the mean between the high bid and low asked prices on the Value Date. If no prices are quoted for the Value Date,
Fair Market Value shall be the mean between the high bid and low asked prices on the last preceding trading day on which any bid and asked prices were quoted; 

  
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	 	(iii)	 No Established Market. If Common Stock is not traded on any established stock exchange or quoted on a
national market system and is not quoted by a recognized securities dealer, the Administrator will determine Fair Market Value in good faith. The Administrator will consider the following factors, and any others it considers significant, in
determining Fair Market Value: (A) the price at which other securities of the Company have been issued to purchasers other than Employees, Directors, or Consultants; (B) the Company’s net worth, prospective earning power,
dividend-paying capacity, and non-operating assets, if any; and (C) any other relevant factors, including the economic outlook for the Company and the Company’s industry, the Company’s position
in that industry, the Company’s goodwill and other intellectual property, and the values of securities of other businesses in the same industry; 

  

	 	(iv)	 Additional Valuation. For publicly traded companies, any valuation method permitted under Section 20.2031-2 of the Estate Tax Regulations; or 

  

	 	(v)	 Non-Publicly Traded Stock. For
non-publicly traded stock, the Fair Market Value of the Common Stock at the Grant Date based on an average of the Fair Market Values as of such date set forth in the opinions of completely independent and
well-qualified experts (the Participant’s status as a majority or minority shareholder may be taken into consideration). 

Regardless of whether the Common Stock offered under the Award is publicly traded, a good faith attempt under this definition shall not be met
unless the Fair Market Value of the Common Stock on the Grant Date is determined with regard to nonlapse restrictions (as defined in Section 1.83-3(h) of the Treasury Regulations) and without regard to
lapse restrictions (as defined in Section 1.83-3(i) of the Treasury Regulations); 
  

	 	(aa)	 “Grantee” means an Eligible Participant who receives an Award pursuant to an Award Agreement;

  

	 	(bb)	 “Grant Date” means the date the Administrator approves that grant of an Award. However, if the
Administrator specifies that an Award’s Grant Date is a future date or the date on which a condition is satisfied, the Grant Date for such Award is that future date or the date that the condition is satisfied; 

 

	 	(cc)	 “Incentive Stock Option” means an Option within the meaning of Section 422 of the Code;

  

	 	(dd)	 “Insider” means: 

 

	 	(i)	 a Director or Senior Officer of the Company; 

 

	 	(ii)	 a Director or Senior Officer of a person that is itself an Insider or Subsidiary of the Company;

  

	 	(iii)	 a person that has 

  
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	 	(A)	 direct or indirect beneficial ownership of, 

 

	 	(B)	 control or direction over, or 

 

	 	(C)	 a combination of direct or indirect beneficial ownership of and control or direction over,

 securities of the Company carrying more than 10% of the voting rights attached to all the Company’s outstanding
voting securities, excluding, for the purpose of the calculation of the percentage held, any securities held by the person as underwriter in the course of a distribution; or 
  

	 	(iv)	 the Company itself, if it has purchased, redeemed or otherwise acquired any securities of its own issue, for so
long as it continues to hold those securities; 

  

	 	(ee)	 “Named Executive Officer” means, if applicable, an Eligible Participant who, as of the date of
vesting and/or payout of an Award, is one of the group of Covered Employees as defined; 

  

	 	(ff)	 “Non-Qualified Stock Option” means an Option which is
not an Incentive Stock Option; 

  

	 	(gg)	 “Officer” means a person who is an officer, including a Senior Officer, of the Company or a
Related Entity within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder; 

  

	 	(hh)	 “Option” means an option to purchase Shares pursuant to an Award Agreement granted under the
Plan; 

  

	 	(ii)	 “Parent” means a “parent corporation”, whether now or hereafter existing, as defined
in Section 424(e) of the Code; 

  

	 	(jj)	 “Performance-Based Compensation” means compensation qualifying as “performance-based
compensation” under Section 162(m) of the Code; 

  

	 	(kk)	 “Plan” means this August 2014 Stock Incentive Plan as amended from time to time;

  

	 	(ll)	 “Related Entity” means any Parent or Subsidiary, and includes any business, corporation,
partnership, limited liability company or other entity in which the Company, a Parent or a Subsidiary holds a greater than 50% ownership interest, directly or indirectly; 

 

	 	(mm)	 “Related Entity Disposition” means the sale, distribution or other disposition by the Company
of all or substantially all of the Company’s interests in any Related Entity effected by a sale, merger or consolidation or other transaction involving that Related Entity or the sale of all or substantially all of the assets of that Related
Entity; 

  
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	 	(nn)	 “Restricted Stock” means Shares issued under the Plan to the Grantee for such consideration,
if any, and subject to such restrictions on transfer, rights of first refusal, repurchase provisions, forfeiture provisions, and other terms and conditions as, established by the Administrator and specified in the related Award Agreement;

  

	 	(oo)	 “Restricted Stock Unit” means a notional account established pursuant to an Award granted to a
Grantee, as described in this Plan, that is (i) valued solely by reference to Shares, (ii) subject to restrictions specified in the Award Agreement, and (iii) payable only in Shares; 

 

	 	(pp)	 “Restriction Period” means the period during which the transfer of Shares of Restricted Stock
is limited in some way (based on the passage of time, the achievement of performance objectives, or the occurrence of other events as determined by the Administrator, in its sole discretion) or the Restricted Stock is not vested;

  

	 	(qq)	 “SAR” means a stock appreciation right entitling the Grantee to Shares or cash compensation,
as established by the Administrator, measured by appreciation in the value of Common Stock; 

  

	 	(rr)	 “SEC” means the United States Securities Exchange Commission; 

 

	 	(ss)	 “Senior Officer” means: 

 

	 	(i)	 the chair or vice chair of the Board, the president, the chief executive officer, the chief financial officer,
a vice-president, the secretary, the treasurer or the general manager of the Company or a Related Entity; 

  

	 	(ii)	 any individual who performs functions for a person similar to those normally performed by an individual
occupying any office specified in Section 2.1(ss)(i) above; and 

  

	 	(iii)	 the five highest paid employees of the Company or a Related Entity, including any individual referred to in
Section 2.1(ss)(i) or 2.1(ss)(ii) and excluding a commissioned salesperson who does not act in a managerial capacity; 

  

	 	(tt)	 “Share” means a share of the Common Stock; and 

 

	 	(uu)	 “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as
defined in Section 424(f) of the Code. 

  
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	3.	 STOCK SUBJECT TO THE PLAN 

Number of Shares Available 
 3.1
(a)Subject to the provisions of Section 18, the maximum aggregate number of Shares which may be issued pursuant to all Awards (including Incentive Stock Options) under this Plan is 5,503,458 (the “Maximum Number”). See
Section 29 for Reservation of Shares. 
  

	 	(b)	 Shares that have been issued under the Plan pursuant to an Award shall not be returned to the Plan and shall
not become available for future issuance under the Plan except that Shares (i) covered by an Award (or portion of an Award) which is forfeited or cancelled, expires or is settled in cash, or (ii) withheld to satisfy a Grantee’s
minimum tax withholding obligations, shall be deemed not to have been issued for purposes of determining the Maximum Number of Shares which may be issued under the Plan. Also, only the net numbers of Shares that are issued pursuant to the exercise
of an Award shall be counted against the Maximum Number. 

  

	 	(c)	 However, in the event that prior to the Award’s cancellation, termination, expiration, forfeiture or
lapse, the holder of the Award at any time received one or more elements of beneficial ownership pursuant to such Award (as defined by the SEC, pursuant to any rule or interpretations promulgated under Section 16 of the Exchange Act), the
Shares subject to such Award shall not again be made available for regrant under the Plan. 

 Shares to Insiders

 3.2 Subject to Section 15.1(b) and 15.1(c), no Insider of the Company is eligible to receive an Award where: 

 

	 	(a)	 the Insider is not a Director or Senior Officer of the Company; 

 

	 	(b)	 any Award, together with all of the Company’s other previously established or proposed Awards under the
Plan could result at any time in: 

  

	 	(i)	 the number of Shares reserved for issuance pursuant to Options granted to Insiders exceeding 50% of the
outstanding issue of Common Stock; or 

  

	 	(ii)	 the issuance to Insiders pursuant to the exercise of Options, within a one year period of a number of Shares
exceeding 50% of the outstanding issue of the Common Stock; 

 provided, however, that this restriction on the eligibility of Insiders to
receive an Award shall cease to apply if it is no longer required under any Applicable Laws. 
 Limitations on Award 

3.3 Unless and until the Administrator determines that an Award to a Grantee is not designed to qualify as Performance-Based Compensation, the following limits
(the “Award Limits”) shall apply to grants of Awards to Grantees subject to the Award Limits by Applicable Laws under this Plan: 

  
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	 	(a)	 Options and SARs. Notwithstanding any provision in the Plan to the contrary (but subject to adjustment
as provided in Section 18), the maximum number of Shares with respect to one or more Options and/or Stock Appreciation Rights that may be granted during any one calendar year under the Plan to any one Grantee shall be 1,467,589, all of which
may be granted as Incentive Stock Options); and 

  

	 	(b)	 Other Awards. The maximum aggregate grant with respect to Awards of Restricted Stock, unrestricted
Shares, Restricted Stock Units and Deferred Stock Units (or used to provide a basis of measurement for or to determine the value of Restricted Stock Units and Deferred Stock Units) in any one calendar year to any one Grantee (determined on the date
of payment of settlement) shall be 1,467,589. 

  

	4.	 ADMINISTRATION 

Authority of Plan Administrator 

4.1 Authority to control and manage the operation and administration of this Plan shall be vested in the Administrator. 

Powers of the Administrator 
 4.2
Subject to Applicable Laws and the provisions of the Plan or subplans hereof (including any other powers given to the Administrator hereunder), and except as otherwise provided by the Board, the Administrator shall have the exclusive power and
authority, in its discretion: 
  

	 	(a)	 to construe and interpret this Plan and any agreements defining the rights and obligations of the Company and
Grantees under this Plan; 

  

	 	(b)	 to select the Eligible Participants to whom Awards may be granted from time to time hereunder;

  

	 	(c)	 to determine whether and to what extent Awards are granted hereunder; 

 

	 	(d)	 to determine the number of Shares or the amount of other consideration to be covered by each Award granted
hereunder; 

  

	 	(e)	 to approve forms of Award Agreements for use under the Plan, which need not be identical for each Grantee;

  

	 	(f)	 to determine the terms and conditions of any Award granted under the Plan, including, but not limited to, the
exercise price, grant price or purchase price based on the Fair Market Value of the same, any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions on the exercisability of the Award, and
acceleration or waivers thereof, based in each case on such considerations as the Committee in its sole discretion determines that is not inconsistent with any rule or regulation under any tax or securities laws or includes an alternative right that
does not disqualify an Incentive Stock Option under applicable regulations; 

  
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	 	(g)	 to amend the terms of any outstanding Award granted under the Plan, provided that any amendment that would
adversely affect the Grantee’s rights under an existing Award shall not be made without the Grantee’s consent unless as a result of a change in Applicable Law; 

 

	 	(h)	 to suspend the right of a holder to exercise all or part of an Award for any reason that the Administrator
considers in the best interest of the Company; 

  

	 	(i)	 subject to regulatory approval, amend or suspend the Plan, or revoke or alter any action taken in connection
therewith, except that no general amendment or suspension of the Plan, shall, without the written consent of all Grantees, alter or impair any Award granted under the Plan unless as a result of a change in the Applicable Law; 

 

	 	(j)	 to establish additional terms, conditions, rules or procedures to accommodate the rules or laws of applicable
foreign jurisdictions and to afford Grantees favorable treatment under such laws; provided, however, that no Award shall be granted under any such additional terms, conditions, rules or procedures with terms or conditions which are inconsistent with
the provisions of the Plan; 

  

	 	(k)	 to further define the terms used in this Plan; 

 

	 	(l)	 to correct any defect or supply any omission or reconcile any inconsistency in this Plan or in any Award
Agreement; 

  

	 	(m)	 to provide for rights of refusal and/or repurchase rights; 

 

	 	(n)	 to amend outstanding Award Agreements to provide for, among other things, any change or modification which the
Administrator could have provided for upon the grant of an Award or in furtherance of the powers provided for herein that does not disqualify an Incentive Stock Option under applicable regulations unless the Grantee so consents;

  

	 	(o)	 to prescribe, amend and rescind rules and regulations relating to the administration of this Plan; and

  

	 	(p)	 to take such other action, not inconsistent with the terms of the Plan, as the Administrator deems appropriate.

  
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 Effect of Administrator’s Decision 

4.3 All decisions, determinations and interpretations of the Administrator shall be conclusive and binding on all persons. The Administrator shall not be
liable for any decision, action or omission respecting this Plan, or any Awards granted or Shares sold under this Plan. In the event an Award is granted in a manner inconsistent with the provisions of this Section 4, such Award shall be
presumptively valid as of its grant date to the extent permitted by the Applicable Laws. 
 Action by Committee 

4.4 Except as otherwise provided by committee charter or other similar corporate governance documents, for purposes of administering the Plan, the following
rules of procedure shall govern the Committee. A majority of the Committee shall constitute a quorum. The acts of a majority of the members present at any meeting at which a quorum is present, and acts approved unanimously in writing by the members
of the Committee in lieu of a meeting, shall be deemed the acts of the Committee. Each member of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that member by any officer or other employee
of the Company or any Parent or Affiliate, the Company’s independent certified public accountants, or any executive compensation consultant or other professional retained by the Company to assist in the administration of the Plan. 

Limitation on Liability 
 4.5 To
the extent permitted by applicable law in effect from time to time, no member of the Administrator shall be liable for any action or omission of any other member of the Administrator nor for any act or omission on the member’s own part,
excepting only the member’s own wilful misconduct or gross negligence, arising out of or related to this Plan. The Company shall pay expenses incurred by, and satisfy a judgment or fine rendered or levied against, a present or former member of
the Administrator in any action against such person (whether or not the Company is joined as a party defendant) to impose liability or a penalty on such person for an act alleged to have been committed by such person while a member of the
Administrator arising with respect to this Plan or administration thereof or out of membership on the Administrator or by the Company, or all or any combination of the preceding, provided, the member was acting in good faith, within what such member
reasonably believed to have been within the scope of his or her employment or authority and for a purpose which he or she reasonably believed to be in the best interests of the Company or its stockholders. Payments authorized hereunder include
amounts paid and expenses incurred in settling any such action or threatened action. The provisions of this Section 4.5 shall apply to the estate, executor, administrator, heirs, legatees or devisees of a member of the Administrator, and the
term “person” as used on this Section 4.5 shall include the estate, executor, administrator, heirs, legatees, or devisees of such person. 
  

	5.	 ELIGIBILITY 

Except as otherwise provided, all types of Awards may be granted to Eligible Participants. An Eligible Participant who has been granted an
Award may be, if he or she continues to be eligible, granted additional Awards. 

  
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	6.	 AWARDS 

Type of Awards 
 6.1 The
Administrator is authorized to award any type of arrangement to an Eligible Participant that is not inconsistent with the provisions of the Plan and that by its terms involves or might involve the issuance of: 

 

	 	(a)	 Shares, including unrestricted Shares; 

 

	 	(b)	 Options; 

  

	 	(c)	 SARs or similar rights with a fixed or variable price related to the Fair Market Value of the Shares and with
an exercise or conversion privilege related to the passage of time, the occurrence of one or more events, or the satisfaction of performance criteria or other conditions; 

 

	 	(d)	 any other security with the value derived from the value of the Shares, such as Restricted Stock and Restricted
Stock Units; 

  

	 	(e)	 Deferred Stock Units; 

 

	 	(f)	 Dividend Equivalent Rights, as defined in Section 13; or 

 

	 	(g)	 any combination of the foregoing. 

Designation of Award 
 6.2 Each
type of Award shall be designated in the Award Agreement. In the case of an Option, the Option shall be designated as either an Incentive Stock Option or a Non-Qualified Stock Option. But see
Section 7.3(a) regarding exceeding the Incentive Stock Option threshold. 
  

	7.	 GRANT OF OPTIONS; TERMS AND CONDITIONS OF GRANT 

Grant of Options 
 7.1 (a)One or
more Options may be granted to any Eligible Participant. Subject to the express provisions of this Plan, the Administrator shall determine from the Eligible Participants those individuals to whom Options under this Plan may be granted. The Shares
underlying a grant of an Option may be in the form of Restricted Stock or unrestricted Stock. 
  

	 	(b)	 Further, subject to the express provisions of this Plan, the Administrator shall specify the Grant Date, the
number of Shares covered by the Option, the exercise price and the terms and conditions for exercise of the Options. As soon as practicable after the Grant Date, the Company shall provide the Grantee with a written Award Agreement in the form
approved by the Administrator, which sets out the Grant Date, the number of Shares covered by the Option, the exercise price and the terms and conditions for exercise of the Option. 

  
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	 	(c)	 The Administrator may, in its absolute discretion, grant Options under this Plan at any time and from time to
time before the expiration of this Plan. 

 General Terms and Conditions 

7.2 Except as otherwise provided herein, the Options shall be subject to the following terms and conditions and such other terms and conditions not
inconsistent with this Plan as the Administrator may impose: 
  

	 	(a)	 Exercise of Option. The Administrator may determine in its discretion whether any Option shall be
subject to vesting and the terms and conditions of any such vesting. The Award Agreement shall contain any such vesting schedule; 

  

	 	(b)	 Option Term. Each Option and all rights or obligations thereunder shall expire on such date as shall be
determined by the Administrator, but not later than ten years after the Grant Date (five years in the case of an Incentive Stock Option when the Optionee beneficially owns more than 10% of the total combined voting power of all classes of stock of
the Company or any Parent or Subsidiary (a “Ten Percent Stockholder”), as determined with reference to Rule 13d-3 of the Exchange Act), and shall be subject to earlier termination as
hereinafter provided; 

  

	 	(c)	 Exercise Price. The Exercise Price of any Option shall be determined by the Administrator when the
Option is granted, at such Exercise Price as may be determined by the Administrator in the Administrator’s sole and absolute discretion; provided, however, that the Exercise Price may not be less than 100% of the Fair Market Value of the Shares
on the Grant Date with respect to any Incentive Stock Options which are granted and, provided further, that the Exercise Price of any Incentive Stock Option granted to a Ten Percent Stockholder shall not be less than 110% of the Fair Market Value of
the Shares on the Grant Date. Payment for the Shares purchased shall be made in accordance with Section 16 of this Plan. The Administrator is authorized to issue Options, whether Incentive Stock Options or
Non-qualified Stock Options, at an option price lower than or in excess of the Fair Market Value on the Grant Date, to determine the terms and conditions of any Award granted under the Plan, including, but not
limited to, the exercise price, grant price or purchase price, any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions on the exercisability of the Award, and acceleration or waivers thereof,
based in each case on such considerations as the Committee in its sole discretion determines that is not inconsistent with any rule or regulation under any tax or securities laws or includes an alternative right that does not disqualify an Incentive
Stock Option under applicable regulations; 

  

	 	(d)	 Method of Exercise. Options may be exercised only by delivery to the Company of a stock option exercise
agreement (the “Exercise Agreement”) in a form approved by the Administrator (which need not be the same for each Grantee), stating the number of Shares being purchased, the restrictions imposed on the Shares purchased under such
Exercise Agreement, if any, and such representations and agreements regarding the Grantee’s investment intent and access to information and other matters, if any, as may be required or desirable by the Company to comply with applicable
securities laws, together with payment in full of the exercise price for the number of Shares being purchased; 

  
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	 	(e)	 Exercise After Certain Events. 

 

	 	(i)	 Termination of Continuous Services. 

 

	 	(A)	 Options. 

  

	 	(I)	 Termination of Continuous Services. If for any reason other than Disability or death, a Grantee
terminates Continuous Services with the Company or a Subsidiary, vested Options held at the date of such termination may be exercised, in whole or in part, either (i) at any time within three months after the date of such termination, or
(ii) during any greater or lesser period as specified in the Award Agreement or (iii) during any greater or lesser period as may be determined by the Administrator, in its sole and absolute discretion, prior the date of such termination
(but in no event after the earlier of (A) the expiration date of the Option as set forth in the Award Agreement and (B) ten years from the Grant Date (five years for a Ten Percent Stockholder if the Option is an Incentive Stock Option)).

  

	 	(II)	 Continuation of Services as Consultant/Advisor. If a Grantee granted an Incentive Stock Option
terminates employment but continues as a Consultant (no termination of Continuous Services), the Grantee need not exercise an Incentive Stock Option within either of the termination periods provided for immediately hereinabove but shall be entitled
to exercise, in whole or in part, either (i) at any time within three months after the then date of termination of Continuous Services to the Company or a Subsidiary, or (ii) during any greater or lesser period as specified in the Award
Agreement or (iii) during any greater or lesser period as may be determined by the Administrator, in its sole and absolute discretion, prior the date of such then termination of Continuous Services to the Company or the Subsidiary (one year in
the event of Disability or death) (but in no event after the earlier of (A) the expiration date of the Option as set forth in the Award Agreement and (B) ten years from the Grant Date (five years for a Ten Percent Stockholder if the Option
is an Incentive Stock Option)). However, if the Grantee does not exercise within three months of termination of employment, pursuant to Section 422 of the Code the Option shall not qualify as an Incentive Stock Option. 

  
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	 	(B)	 Disability and Death. If a Grantee becomes Disabled while rendering Continuous Services to the Company
or a Subsidiary, or dies while employed by the Company or Subsidiary or within three months thereafter, vested Options then held may be exercised by the Grantee, the Grantee’s personal representative, or by the person to whom the Option is
transferred by the laws of descent and distribution, in whole or in part, at any time within one year after the termination because of the Disability or death or any lesser period specified in the Award Agreement (but in no event after the earlier
of (i) the expiration date of the Option as set forth in the Award Agreement, and (ii) ten years from the Grant Date (five years for a Ten Percent Stockholder if the Option is an Incentive Stock Option). 

Limitations on Grant of Incentive Stock Options 

7.3 (a)Threshold. The aggregate Fair Market Value (determined as of the Grant Date) of the Shares for which Incentive Stock Options may first become
exercisable by any Grantee during any calendar year under this Plan, together with that of Shares subject to Incentive Stock Options first exercisable by such Grantee under any other plan of the Company or any Parent or Subsidiary, shall not exceed
$100,000. For purposes of this Section 7.3(a), all Options in excess of the $100,000 threshold shall be treated as Non-Qualified Stock Options notwithstanding the designation as Incentive Stock Options.
For this purpose, Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares shall be determined as of the date the Option with respect to such Shares is granted. 

 

	 	(b)	 Compliance with Section 422 of the Code. There shall be imposed in the Award
Agreement relating to Incentive Stock Options such terms and conditions as are required in order that the Option be an “incentive stock option” as that term is defined in Section 422 of the Code. 

 

	 	(c)	 Requirement of Employment. No Incentive Stock Option may be granted to any person who is not an Employee
of the Company or a Parent or Subsidiary of the Company. 

  

	8.	 RESTRICTED STOCK AWARDS 

Grant of Restricted Stock Awards 

8.1 Subject to the terms and provisions of this Plan, the Administrator is authorized to make awards of Restricted Stock to any Eligible Participant in such
amounts and subject to such terms and conditions as may be selected by the Administrator. The restrictions may lapse separately or in combination at such times, under such circumstances, in such instalments, time-based or upon the satisfaction of
performance goals or otherwise, as the Administrator determines at the time of the grant of the Award or thereafter. (See Performance Goals, Section 14.4). All awards of Restricted Stock shall be evidenced by Award Agreements. 

  
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 Consideration 

8.2 Restricted Stock may be issued in connection with: 
  

	 	(a)	 Services. Services rendered to the Company or an Affiliate (i.e. bonus); and/or 

 

	 	(b)	 Purchase Price. A purchase price, as specified in the Award Agreement related to such Restricted Stock,
equal to not be less than 100% of the Fair Market Value of the Shares underlying the Restricted Stock on the date of issuance. 

Voting and Dividends 
 8.3 Unless
the Administrator in its sole and absolute discretion otherwise provides in an Award Agreement, holders of Restricted Stock shall have the right to vote such Restricted Stock and the right to receive any dividends declared or paid with respect to
such Restricted Stock. The Administrator may provide that any dividends paid on Restricted Stock must be reinvested in shares of Stock, which may or may not be subject to the same vesting conditions and restrictions applicable to such Restricted
Stock. All distributions, if any, received by a Grantee with respect to Restricted Stock as a result of any stock split, stock dividend, combination of shares, or other similar transaction shall be subject to the restrictions applicable to the
original Award. 
 Forfeiture 

8.4 In the case of an event of forfeiture pursuant to the Award Agreement, including failure to satisfy the restriction period or a performance objective
during the applicable restriction period, any Restricted Stock that has not vested prior to the event of forfeiture shall automatically expire, and all of the rights, title and interest of the Grantee thereunder shall be forfeited in their entirety
including but not limited to any right to vote and receive dividends with respect to the Restricted Stock. Notwithstanding the foregoing, the Administrator may provide in any Award Agreement that restrictions or forfeiture conditions relating to
Restricted Stock shall be waived in whole or in part in the event of terminations resulting from specified causes, and the Administrator may in other cases waive in whole or in part restrictions or forfeiture conditions relating to Restricted Stock,
provided such waiver is in accordance with the Applicable Laws. 
 Certificates for Restricted Stock 

8.5 Restricted Stock granted under this Plan may be evidenced in such manner as the Administrator shall determine, including by way of certificates. The
Administrator may provide in an Award Agreement that either (i) the Secretary of the Company shall hold such certificates for the Grantee’s benefit until such time as the Restricted Stock is forfeited to the Company or the restrictions
lapse, (see Escrow; Pledge of Shares, Section 23) or (ii) such certificates shall be delivered to the Grantee, provided, however, that such certificates shall bear a legend or legends that comply with the applicable securities laws and
regulations and make appropriate reference to the restrictions imposed under this Plan and the Award Agreement. 

  
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	9.	 UNRESTRICTED STOCK AWARDS 

The Administrator may, in its sole discretion, grant (or sell at not less than 100% of the Fair Market Value or such other higher purchase
price determined by the Administrator in the Award Agreement) an Award of unrestricted Shares to any Grantee pursuant to which such Grantee may receive Shares free of any restrictions under this Plan. 

 

	10.	 RESTRICTED STOCK UNITS 

Grant of Restricted Stock Units 

10.1 Subject to the terms and provisions of this Plan, the Administrator is authorized to make awards of Restricted Stock Units to any Eligible Participant in
such amounts and subject to such terms and conditions as may be selected by the Administrator. These restrictions may lapse separately or in combination at such times, under such circumstances, in such instalments, time-based or upon the
satisfaction of performance goals or otherwise, as the Administrator determines at the time of the grant of the Award or thereafter. (See Performance Goals, Section 14.4). All awards of Restricted Stock Units shall be evidenced by Award
Agreements. 
 Number of Restricted Stock Units 

10.2 The Award Agreement shall specify the number of Share equivalent units granted and such other provisions as the Administrator determines. 

Consideration 
 10.3 Restricted
Stock Units may be issued in connection with: 
  

	 	(a)	 Services. Services rendered to the Company or an Affiliate (i.e. bonus); and/or 

 

	 	(b)	 Purchase Price. A purchase price as specified in the Award Agreement related to such Restricted Stock
Units, equal to not be less than 100% of the Fair Market Value of the Shares underlying the Restricted Stock Units on the date of issuance. 

No Voting Rights 
 10.4 The holders
of Restricted Stock Units shall have no rights as stockholders of the Company. 
 Dividend Equivalency 

10.5 The Administrator, in its sole and absolute discretion, may provide in an Award Agreement evidencing a grant of Restricted Stock Units that the holder
shall be entitled to receive, upon the Company’s payment of a cash dividend on its outstanding Shares, a cash payment for each Restricted Stock Unit. (See Section 13, Dividend Equivalent Right). Such Award Agreement may also provide that
such cash payment shall be deemed reinvested in additional Restricted Stock Units at a price per unit equal to the Fair Market Value of a Share on the date that such dividend is paid. 

  
 - 19 - 

 Creditor’s Rights 

10.6 A holder of Restricted Stock Units shall have no rights other than those of a general creditor of the Company. Restricted Stock Units represent an
unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Award Agreement. 
 Settlement
of Restricted Stock Units 
 10.7 Each Restricted Stock Unit shall be paid and settled by the issuance of Restricted Stock or unrestricted Shares in
accordance with the Award Agreement and if such settlement is subject to Section 409A of the Code only upon any one or more of the following as provided for in the Award Agreement: 

 

	 	(a)	 a specific date or date determinable by a fixed schedule; 

 

	 	(b)	 upon the Eligible Participant’s termination of Continuous Services to the extent the same constitutes a
separation from services for purposes of Section 409A of the Code except that if an Eligible Participant is a “key employee” as defined in Section 409A of the Code for such purposes, then payment or settlement shall occur 6
months following such separation of service; 

  

	 	(c)	 as a result of the Eligible Participant’s death or Disability; or 

 

	 	(d)	 in connection with or as a result of a Change of Control in compliance with Section 409A of the Code.

 Forfeiture 

10.8 Upon failure to satisfy any requirement for settlement as set forth in the Award Agreement, including failure to satisfy any restriction period or
performance objective, any Restricted Stock Units held by the Grantee shall automatically expire, and all of the rights, title and interest of the Grantee thereunder shall be forfeited in their entirety including but not limited to any right to
receive dividends with respect to the Restricted Stock Units. 
  

	11.	 DIRECTOR SHARES AND DIRECTOR DEFERRED STOCK UNITS 

The grant of Awards of Shares to Directors and the election by Directors to defer the receipt of the Awards of Shares (the “Deferred
Stock Units”) shall be governed by the provisions of Subpart A which is attached hereto. The provisions of Subpart A are attached hereto as part of this Plan and are incorporated herein by reference. 

 

	12.	 STOCK APPRECIATION RIGHTS 

Awards of SARs 
 12.1 An SAR is an
award to receive a number of Shares (which may consist of Restricted Stock), or cash, or Shares and cash, as determined by the Administrator in accordance with Section 12.4 below, for services rendered to the Company. A SAR may be awarded
pursuant to an Award Agreement that shall be in such form (which need not be the same for each Grantee) as the Administrator shall from time to time approve, and shall comply with and be subject to the terms and conditions of this Plan. A SAR may
vary from Grantee to Grantee and between groups of Grantees, and may be based upon performance objectives (See Performance Goals in Section 14.4). 

  
 - 20 - 

 Term 

12.2 The term of a SAR shall be set forth in the Award Agreement as determined by the Administrator. 

Exercise 
 12.3 A Grantee desiring
to exercise a SAR shall give written notice of such exercise to the Company, which notice shall state the proportion of Shares and cash that the Grantee desires to receive pursuant to the SAR exercised, subject to the discretion of the
Administrator. Upon receipt of the notice from the Grantee, subject to the Administrator’s election to pay cash as provided in Section 12.4 below, the Company shall deliver to the person entitled thereto (i) a certificate or
certificates for Shares and/or (ii) a cash payment, in accordance with Section 12.4 below. The date the Company receives written notice of such exercise hereunder is referred to in this Section 12 as the “exercise date”.

 Number of Shares or Amount of Cash 

12.4 Subject to the discretion of the Administrator to substitute cash for Shares, or some portion of the Shares for cash, the amount of Shares that may be
issued pursuant to the exercise of a SAR shall be determined by dividing: (i) the total number of Shares as to which the SAR is exercised, multiplied by the amount by which the Fair Market Value of the Shares on the exercise date exceeds the
Fair Market Value of a Share on the date of grant of the SAR; by (ii) the Fair Market Value of a Share on the exercise date; provided, however, that fractional Shares shall not be issued and in lieu thereof, a cash adjustment shall be paid. In
lieu of issuing Shares upon the exercise of a SAR, the Administrator in its sole discretion may elect to pay the cash equivalent of the Fair Market Value of the Shares on the exercise date for any or all of the Shares that would otherwise be
issuable upon exercise of the SAR. 
 Effect of Exercise 

12.5 A partial exercise of a SAR shall not affect the right to exercise the remaining SAR from time to time in accordance with this Plan and the applicable
Award Agreement with respect to the remaining shares subject to the SAR. 
 Forfeiture 

12.6 In the case of an event of forfeiture pursuant to the Award Agreement, including failure to satisfy any restriction period or a performance objective, any
SAR that has not vested prior to the date of termination shall automatically expire, and all of the rights, title and interest of the Grantee thereunder shall be forfeited in their entirety. 

  
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	13.	 DIVIDEND EQUIVALENT RIGHT 

A dividend equivalent right is an Award entitling the recipient to receive credits based on cash distributions that would have been paid on the
Shares specified in the dividend equivalent right (or other Award to which it relates) if such Shares had been issued to and held by the recipient (a “Dividend Equivalent Right”). A Dividend Equivalent Right may be granted hereunder
to any Grantee as a component of another Award or as a freestanding Award. The terms and conditions of Dividend Equivalent Right shall be specified in the grant. Dividend equivalents credited to the holder of a Dividend Equivalent Right may be paid
currently or may be deemed to be reinvested in additional Shares, which may thereafter accrue additional equivalents. Any such reinvestment shall be at Fair Market Value on the date of reinvestment. Dividend Equivalent Rights may be settled in cash
or Shares or a combination thereof, in a single instalment or instalments, all determined in the sole discretion of the Administrator. A Dividend Equivalent Right granted as a component of another Award may provide that such Dividend Equivalent
Right shall be settled upon exercise, settlement, or payment of, or lapse of restrictions on, such other Award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under the same conditions as such other Award. A
Dividend Equivalent Right granted as a component of another Award may also contain terms and conditions different from such other Award. 
  

	14.	 TERMS AND CONDITIONS OF AWARDS 

In General 
 14.1 Subject to the
terms of the Plan and Applicable Laws, the Administrator shall determine the provisions, terms, and conditions of each Award including, but not limited to, the Award vesting schedule, repurchase provisions, rights of first refusal, forfeiture
provisions, form of payment (cash, Shares, or other consideration) upon settlement of the Award, payment contingencies, and satisfaction of any performance criteria. 

Term of Award 
 14.2 The term of
each Award shall be the term stated in the Award Agreement. 
 Transferability 

14.3 (a)Limits on Transfer. No right or interest of a Grantee in any unexercised or restricted Award may be pledged, encumbered or hypothecated to or in
favor of any party other than to the Company or a Related Entity or Affiliate. No Award shall be sold, assigned, transferred or disposed of by a Grantee other than by the laws of descent and distribution or, in the case of an Incentive Stock Option,
pursuant to a domestic relations order that would satisfy Section 414(p)(1)(A) of the Code if such Section applied to an Award under the Plan; provided, however, that the Administrator may (but need not) permit other transfers where the
Administrator concludes that such transferability (i) does not result in accelerated taxation or other adverse tax consequences, (ii) does not cause any Option intended to be an Incentive Stock Option to fail to be described in
Section 422(b) of the Code, and (iii) is otherwise appropriate and desirable, taking into account any factors deemed relevant, including, without limitation, state or federal tax or securities laws applicable to transferable Awards. 

  
 - 22 - 

	 	(b)	 Beneficiaries. Notwithstanding Section 14.3(a), a Grantee may, in the manner determined by the
Administrator, designate a beneficiary to exercise the rights of the Grantee and to receive any distribution with respect to any Award upon the Grantee’s death. A beneficiary, legal guardian, legal representative or other person claiming any
rights under the Plan is subject to all terms and conditions of the Plan and any Award Agreement applicable to the Grantee, except to the extent the Plan and such Award Agreement otherwise provide, and to any additional restrictions deemed necessary
or appropriate by the Administrator. If no beneficiary has been designated or survives the Grantee, payment shall be made to the Grantee’s estate. Subject to the foregoing, a beneficiary designation may be changed or revoked by a Grantee at any
time, provided the change or revocation is filed with the Administrator. 

 Performance Goals 

14.4 In order to preserve the deductibility of an Award under Section 162(m) of the Code, the Administrator may determine that any Award granted pursuant
to this Plan to a Grantee that is or is expected to become a Covered Employee shall be determined solely on the basis of (a) the achievement by the Company or Subsidiary of a specified target return, or target growth in return, on equity or
assets, (b) the Company’s stock price, (c) the Company’s total shareholder return (stock price appreciation plus reinvested dividends) relative to a defined comparison group or target over a specific performance period,
(d) the achievement by the Company or a Parent or Subsidiary, or a business unit of any such entity, of a specified target, or target growth in, net income, earnings per share, earnings before income and taxes, and earnings before income,
taxes, depreciation and amortization, or (e) any combination of the goals set forth in (a) through (d) above. If an Award is made on such basis, the Administrator shall establish goals prior to the beginning of the period for which such
performance goal relates (or such later date as may be permitted under Section 162(m) of the Code or the regulations thereunder but not later than 90 days after commencement of the period of services to which the performance goal relates), and
the Administrator has the right for any reason to reduce (but not increase) the Award, notwithstanding the achievement of a specified goal. Any payment of an Award granted with performance goals shall be conditioned on the written certification of
the Administrator in each case that the performance goals and any other material conditions were satisfied. 
 In addition, to the extent
that Section 409A is applicable, (i) performance-based compensation shall also be contingent on the satisfaction of pre-established organizational or individual performance criteria relating to a
performance period of at least 12 consecutive months in which the Eligible Participant performs services and (ii) performance goals shall be established not later than 90 calendar days after the beginning of any performance period to which the
performance goal relates, provided that the outcome is substantially uncertain at the time the criteria are established. 

  
 - 23 - 

 Acceleration 

14.5 The Administrator may, in its sole discretion (but subject to the limitations of and compliance with Section 409A of the Code and Section 14.7
in connection therewith), at any time (including, without limitation, prior to, coincident with or subsequent to a Change of Control) determine that (a) all or a portion of a Grantee’s Awards shall become fully or partially exercisable,
and/or (b) all or a part of the restrictions on all or a portion of the outstanding Awards shall lapse, in each case, as of such date as the Administrator may, in its sole discretion, declare. The Administrator may discriminate among Grantees
and among Awards granted to a Grantee in exercising its discretion pursuant to this Section 14.5. 
 Compliance with
Section 162(m) of the Code 
 14.6 Notwithstanding any provision of this Plan to the contrary, if the Administrator determines that compliance
with Section 162(m) of the Code is required or desired, all Awards granted under this Plan to Named Executive Officers shall comply with the requirements of Section 162(m) of the Code. In addition, in the event that changes are made to
Section 162(m) of the Code to permit greater flexibility with respect to any Award or Awards under this Plan, the Administrator may make any adjustments it deems appropriate. 

Compliance with Section 409A of the Code 

14.7 Notwithstanding any provision of this Plan to the contrary, if any provision of this Plan or an Award Agreement contravenes any regulations or Treasury
guidance promulgated under Section 409A of the Code or could cause an Award to be subject to the interest and penalties under Section 409A of the Code, such provision of this Plan or any Award Agreement shall be modified to maintain, to
the maximum extent practicable, the original intent of the applicable provision without violating the provisions of Section 409A of the Code. In addition, in the event that changes are made to Section 409A of the Code to permit greater
flexibility with respect to any Award under this Plan, the Administrator may make any adjustments it deems appropriate. 

Section 280G of the Code 

14.8 Notwithstanding any other provision of this Plan to the contrary, unless expressly provided otherwise in the Award Agreement, if the right to receive or
benefit from an Award under this Plan, either alone or together with payments that a Grantee has a right to receive from the Company, would constitute a “parachute payment” (as defined in Section 280G of the Code), all such payments
shall be reduced to the largest amount that shall result in no portion being subject to the excise tax imposed by Section 4999 of the Code. 

Exercise of Award Following Termination of Continuous Service 

14.9 An Award may not be exercised after the termination date of such Award set forth in the Award Agreement and may be exercised following the termination of
a Grantee’s Continuous Service only to the extent provided in the Award Agreement. Where the Award Agreement permits a Grantee to exercise an Award following the termination of the Grantee’s Continuous Service for a specified period, the
Award shall terminate to the extent not exercised on the last day of the specified period or the last day of the original term of the Award, whichever occurs first. 

  
 - 24 - 

 Cancellation of Awards 

14.10 In the event a Grantee’s Continuous Services has been terminated for “Cause”, he or she shall immediately forfeit all rights to any
and all Awards outstanding. The determination that termination was for Cause shall be final and conclusive. In making its determination, the Board shall give the Grantee an opportunity to appear and be heard at a hearing before the full Board and
present evidence on the Grantee’s behalf. Should any provision to this Section 14.10. be held to be invalid or illegal, such illegality shall not invalidate the whole of this Section 14, but, rather, this Plan shall be construed as if
it did not contain the illegal part or narrowed to permit its enforcement, and the rights and obligations of the parties shall be construed and enforced accordingly. 
  

	15.	 ADDITIONAL TERMS IF THE COMPANY BECOMES LISTED ON A STOCK EXCHANGE 

15.1 In the event the Shares become listed on a stock exchange, and to the extent required by the rules of such stock exchange, then the following terms and
conditions shall apply to an Award in addition to those contained herein, as applicable: 
  

	 	(a)	 the exercise price of an Award must not be lower than 100% of the Fair Market Value (without discount) of the
Shares on the stock exchange at the time the Award is granted; 

  

	 	(b)	 the number of securities issuable to Insiders, at any time, under all of the Company’s security based
compensation arrangements (whether entered into prior to or subsequent to such listing), cannot exceed 10% of the Company’s total issued and outstanding Common Stock, unless the Company obtains Disinterested Shareholder Approval; and

  

	 	(c)	 the number of securities issued to Insiders, within any one year period, under all of the Company’s
security based compensation arrangements (whether entered into prior to or subsequent to such listing), cannot exceed 10% of the issued and outstanding Common Stock, unless the Company obtains Disinterested Shareholder Approval.

  

	16.	 PAYMENT FOR SHARE PURCHASES 

Payment 
 16.1 Payment for Shares
purchased pursuant to this Plan may be made: 
  

	 	(a)	 Cash. By cash, cashier’s check or wire transfer or, at the discretion of the Administrator
expressly for the Grantee and where permitted by law as follows: 

  

	 	(b)	 Surrender of Shares. If permitted by the policies of any stock exchange on which the Company may be
listed from time to time, by surrender of shares of Common Stock of the Company that have been owned by the Grantee for more than six months, or lesser period if the surrender of shares is otherwise exempt from Section 16 of the Exchange Act,
(and, if such shares were purchased from the Company by use of a promissory note, such note has been fully paid with respect to such shares); 

  
 - 25 - 

	 	(c)	 Deemed Net-Stock Exercise. If permitted by the policies of any
stock exchange on which the Company may be listed from time to time, by forfeiture of Shares equal to the value of the exercise price pursuant to a “deemed net-stock exercise” by requiring the
Grantee to accept that number of Shares determined in accordance with the following formula, rounded down to the nearest whole integer: 

  

 
 where: 

a =    net Shares to be issued to Grantee; 

b =    number of Awards being exercised; 

c =    Fair Market Value of a Share; and 

d =    Exercise price of the Awards; 
  

	 	(d)	 Cashless Exercise. If permitted by the policies of any stock exchange on which the Company may be listed
from time to time, by a “cashless exercise”, in which event the Company shall issue to the Grantee the number of Shares of Common Stock determined as follows: 

 
 

 
 where: 
  

	 	a =	 the net Shares to be issued to Grantee; 

 

	 	b =	 the number of Awards being exercised; 

 

	 	c =	 the average of the “Closing Sale Prices” of the Shares of Common Stock (as reported by Bloomberg
Financial Markets) for at least the two trading days ending on the date immediately preceding the Exercise Date; and 

  

	 	d =	 the Exercise price of the Award. 

For purposes of such an Award, “Closing Sale Price” means, for any security as of any date, the last trade price for such
security on the principal securities exchange or trading market for such security, as reported by Bloomberg Financial Markets, or, if such exchange or trading market begins to operate on an extended hours basis and does not designate the last trade
price, then the last trade price of such security 

  
 - 26 - 

 
prior to 4:00 p.m., New York City time, as reported by Bloomberg Financial Markets, or if the foregoing do not apply, the last trade price of such security in the
over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg Financial Markets, or, if no last trade price is reported for such
security by Bloomberg Financial Markets, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported by the OTC Markets Group Inc.. If the Closing Sale Price cannot be calculated for a security
on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company and the Grantee. If the Company and the Grantee are unable to agree upon
the fair market value of such security, then the Company shall, within two business days submit via facsimile (a) the disputed determination of the Closing Sale Price to an independent, reputable investment bank selected by the Company and
approved by the Grantee or (b) the disputed arithmetic calculation of the Shares of Common Stock to the Company’s independent, outside accountant. The Company shall cause at its expense the investment bank or the accountant, as the case
may be, to perform the determinations or calculations and notify the Company and the Grantee of the results no later than ten business days from the time it receives the disputed determinations or calculations. Such investment bank’s or
accountant’s determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other
similar transaction during the applicable calculation period. For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and acknowledged that the Shares of Common Stock issued in a cashless exercise transaction shall
be deemed to have been acquired by the Grantee, and the holding period for the shares shall be deemed to have commenced, on the date the Award was originally issued (provided that the United States Securities and Exchange Commission continues to
take the position that such treatment is proper at the time of such exercise); or 
  

	 	(e)	 Broker-Assisted. By delivering a properly executed exercise notice to the Company together with a copy
of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds necessary to pay the exercise price and the amount of any required tax or other withholding obligations. 

 

	 	(f)	 Combination of Methods. By any combination of the foregoing methods of payment or any other
consideration or method of payment as shall be permitted by applicable corporate law and the policies of any stock exchange on which the Company may be listed from time to time. 

  
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	17.	 WITHHOLDING TAXES 

Withholding Generally 
 17.1
Whenever Shares are to be issued in satisfaction of Awards granted under this Plan or Shares are forfeited pursuant to a deemed net-stock exercise, the Company may require the Grantee to remit to the Company
an amount sufficient to satisfy the foreign, federal, state, provincial, or local income and employment tax withholding obligations, including, without limitation, on exercise of an Award. When, under applicable tax laws, a Grantee incurs tax
liability in connection with the exercise or vesting of any Award, the disposition by a Grantee or other person of an Award or an Option prior to satisfaction of the holding period requirements of Section 422 of the Code, or upon the exercise
of a Non-Qualified Stock Option, the Company shall have the right to require such Grantee or such other person to pay by cash, or check payable to the Company, the amount of any such withholding with respect
to such transactions. Any such payment must be made promptly when the amount of such obligation becomes determinable. 
 Stock for
Withholding 
 17.2 To the extent permissible under applicable tax, securities and other laws, the Administrator may, in its sole discretion and upon
such terms and conditions as it may deem appropriate, permit a Grantee to satisfy his or her obligation to pay any withholding tax, in whole or in part, with Shares up to an amount not greater than the Company’s minimum statutory withholding
rate for federal and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income. The Administrator may exercise its discretion, by (i) directing the Company to apply Shares to which the Grantee is
entitled as a result of the exercise of an Award, or (ii) delivering to the Company Shares that have been owned by the Grantee for more than six months, unless the delivery of Shares is otherwise exempt from Section 16 of the Exchange Act.
A Grantee who has made an election pursuant to this Section 17.2 may satisfy his or her withholding obligation only with Shares that are not subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements. The Shares so
applied or delivered for the withholding obligation shall be valued at their Fair Market Value as of the date of measurement of the amount of income subject to withholding. 
  

	18.	 ADJUSTMENTS UPON CHANGES IN CAPITALIZATION 

In General 
 18.1 Subject to any
required action by the shareholders of the Company, the number of Shares covered by each outstanding Award, and the number of Shares which have been authorized for issuance under the Plan but as to which no Awards have yet been granted or which have
been returned to the Plan, the exercise or purchase price of each such outstanding Award, as well as any other terms that the Administrator determines require adjustment shall be proportionately adjusted for (i) any increase or decrease in the
number of issued Shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Shares, or (ii) any other increase or decrease in the number of issued Shares effected without receipt of
consideration by the Company; provided, however that conversion of any convertible securities of the Company shall not be deemed to have been effected without receipt of consideration. The Administrator shall make the appropriate adjustments to
(i) the maximum number and/or class of securities issuable under this Plan; and (ii) the number and/or class of securities and the exercise price per Share in effect under each outstanding Award in order to prevent the dilution or
enlargement of benefits thereunder; provided, however, that the number of Shares subject to any Award shall always be a whole number and the Administrator shall make such adjustments as are necessary to insure Awards of whole Shares. Such adjustment
shall be made by the Administrator and its determination shall be final, binding and conclusive. 

  
 - 28 - 

 Company’s Right to Effect Changes in Capitalization 

18.2 The existence of outstanding Awards shall not affect the Company’s right to effect adjustments, recapitalizations, reorganizations or other changes
in its or any other corporation’s capital structure or business, any merger or consolidation, any issuance of bonds, debentures, preferred or prior preference stock ahead of or affecting the Shares, the dissolution or liquidation of the
Company’s or any other corporation’s assets or business or any other corporate act whether similar to the events described above or otherwise. 
  

	19.	 CORPORATE TRANSACTIONS/CHANGES IN CONTROL/RELATED ENTITY DISPOSITIONS 

Company is Not the Survivor 
 19.1
Subject to Section 19.3 and except as may otherwise be provided in an Award Agreement, the Administrator shall have the authority, in its absolute discretion, exercisable either in advance of any actual or anticipated Corporate Transaction,
Change in Control or Related Entity Disposition in which the Company is not the surviving corporation, or at the time of an actual Corporate Transaction, Change in Control or Related Entity Disposition in which the Company is not the surviving
corporation (a) to cancel each outstanding Award upon payment in cash to the Grantee of the amount by which any cash and the Fair Market Value of any other property which the Grantee would have received as consideration for the Shares covered
by the Award if the Award had been exercised before such Corporate Transaction, Change in Control or Related Entity Disposition exceeds the exercise price of the Award, or (b) to negotiate to have such Award assumed by the surviving
corporation. The determination as to whether the Company is the surviving corporation is at the sole and absolute discretion of the Administrator. 

In addition to the foregoing, in the event of a dissolution or liquidation of the Company, or a Corporate Transaction or Related Entity
Disposition in which the Company is not the surviving corporation, the Administrator, in its absolute discretion, may accelerate the time within which each outstanding Award may be exercised. Section 19.3 shall control with respect to any
acceleration in vesting in the event of Change of Control. 
 The Administrator shall also have the authority: 

 

	 	(a)	 to release the Awards from restrictions on transfer and repurchase or forfeiture rights of such Awards on such
terms and conditions as the Administrator may specify; and 

  

	 	(b)	 to condition any such Award’s vesting and exercisability or release from such limitations upon the
subsequent termination of the Continuous Service of the Grantee within a specified period following the effective date of the Corporate Transaction, Change in Control or Related Entity Disposition. 

  
 - 29 - 

 Effective upon the consummation of a Corporate Transaction, Change in Control or Related
Entity Disposition governed by this Section 19.1, all outstanding Awards under this Plan not exercised by the Grantee or assumed by the successor corporation shall terminate. 

Company is the Survivor 
 19.2 In
the event of a Corporate Transaction, Change in Control or Related Entity Disposition in which the Company is the surviving corporation, the Administrator shall determine the appropriate adjustment of the number and kind of securities with respect
to which outstanding Awards may be exercised, and the exercise price at which outstanding Awards may be exercised. The Administrator shall determine, in its sole and absolute discretion, when the Company shall be deemed to survive for purposes of
this Plan. Subject to any contrary language in an Award Agreement evidencing an Award, any restrictions applicable to such Award shall apply as well to any replacement shares received by the Grantee as a result. 

Change in Control 
 19.3 If there
is a Change of Control, all outstanding Awards shall fully vest immediately upon the Company’s public announcement of such a Change of Control. 
  

	20.	 PRIVILEGES OF STOCK OWNERSHIP 

No Grantee shall have any of the rights of a stockholder with respect to any Shares until the Shares are issued to the Grantee. After Shares
are issued to the Grantee, the Grantee shall be a stockholder and have all the rights of a stockholder with respect to such Shares, including the right to vote and receive all dividends or other distributions made or paid with respect to such
Shares; provided, that if such Shares are Restricted Stock, then any new, additional or different securities the Grantee may become entitled to receive with respect to such Shares by virtue of a stock dividend, stock split or any other change in the
corporate or capital structure of the Company shall be subject to the same restrictions as the Restricted Stock. The Company shall issue (or cause to be issued) such stock certificate promptly upon exercise of the Award. 

 

	21.	 RESTRICTION ON SHARES 

At the discretion of the Administrator, the Company may reserve to itself and/or its assignee(s) in the Award Agreement that the Grantee not
dispose of the Shares for a specified period of time, or that the Shares are subject to a right of first refusal or a right to repurchase by the Company at the Shares’ Fair Market Value at the time of sale. The terms and conditions of any such
rights or other restrictions shall be set forth in the Award Agreement evidencing the Award. 
  

	22.	 CERTIFICATES 

All certificates for Shares or other securities delivered under this Plan shall be subject to such stock transfer orders, legends and other
restrictions as the Administrator may deem necessary or advisable, including restrictions under any applicable federal, state or foreign securities law, or any rules, regulations and other requirements of the SEC or any stock exchange or automated
quotation system upon which the Shares may be listed or quoted. 

  
 - 30 - 

	23.	 ESCROW; PLEDGE OF SHARES 

To enforce any restrictions on a Grantee’s Shares, the Administrator may require the Grantee to deposit all certificates representing
Shares, together with stock powers or other instruments of transfer approved by the Administrator, appropriately endorsed in blank, with the Company or an agent designated by the Company to hold in escrow until such restrictions have lapsed or
terminated, and the Administrator may cause a legend or legends referencing such restrictions to be placed on the certificates. 
  

	24.	 SECURITIES LAW AND OTHER REGULATORY COMPLIANCE 

Compliance With Applicable Law 

24.1 An Award shall not be effective unless such Award is in compliance with all applicable federal and state securities laws, rules and regulations of any
governmental body, and the requirements of any stock exchange or automated quotation system upon which the Shares may then be listed or quoted, as they are in effect on the Grant Date and also on the date of exercise or other issuance.
Notwithstanding any other provision in this Plan, the Company shall have no obligation to issue or deliver certificates for Shares under this Plan prior to (i) obtaining any approvals from governmental agencies that the Company determines are
necessary or advisable; and/or (ii) completion of any registration or other qualification of such Shares under any state or federal laws or rulings of any governmental body that the Company determines to be necessary or advisable. The Company
shall be under no obligation to register the Shares with the Securities Exchange Commission or to effect compliance with the registration, qualification or listing requirements of any state securities laws, stock exchange or automated quotation
system, and the Company shall have no liability for any inability or failure to do so. Evidences of ownership of Shares acquired pursuant to an Award shall bear any legend required by, or useful for purposes of compliance with, applicable securities
laws, this Plan or the Award Agreement. 
 During any time when the Company has a class of equity security registered under Section 12
of the Exchange Act, it is the intent of the Company that Awards pursuant to this Plan and the exercise of Awards granted hereunder shall qualify for the exemption provided by Rule 16b-3 under the Exchange
Act. To the extent that any provision of this Plan or action by the Board or the Administrator does not comply with the requirements of Rule 16b-3, it shall be deemed inoperative to the extent permitted by law
and deemed advisable by the Board or the Administrator, and shall not affect the validity of this Plan. In the event that Rule 16b-3 is revised or replaced, the Administrator may exercise its discretion to
modify this Plan in any respect necessary to satisfy the requirements of, or to take advantage of any features of, the revised exemption or its replacement. 

Investment Representation 
 24.2 As
a condition to the exercise of an Award, the Company may require the person exercising such Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to
sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any Applicable Laws. 

  
 - 31 - 

	25.	 NO OBLIGATION TO EMPLOY 

Nothing in this Plan or any Award granted under this Plan shall confer or be deemed to confer on any Grantee any right to continue in the
employ of, or to continue any other relationship with, the Company or to limit in any way the right of the Company to terminate such Grantee’s employment or other relationship at any time, with or without Cause. 

 

	26.	 EFFECTIVE DATE AND TERM OF PLAN 

This Plan shall become effective upon the earlier to occur of its adoption by the Board or its approval by the shareholders of the Company. It
shall continue in effect for a term of ten years unless sooner terminated. 
  

	27.	 SHAREHOLDER APPROVAL 

This Plan shall be subject to approval by the shareholders of the Company within 12 months from the date the Plan is adopted by the
Company’s Board for any and all intended Incentive Stock Options granted hereunder. Such shareholder approval shall be obtained in the degree and manner required under Applicable Laws. The Administrator may grant Awards under this Plan prior to
approval by the shareholders, however, until such approval is obtained, all Option Awards granted under this Plan shall be deemed Non-Qualified Stock Options. In the event that shareholder approval is not
obtained within the 12 month period provided above, all Incentive Stock Option Awards previously granted under this Plan shall be deemed Non-Qualified Stock Options. 

 

	28.	 AMENDMENT, SUSPENSION OR TERMINATION OF THIS PLAN OR AWARDS 

The Board may amend, suspend or terminate this Plan at any time and for any reason. To the extent necessary to comply with Applicable Laws, the
Company shall obtain shareholder approval of any Plan amendment in such a manner and to such a degree as required. Shareholder approval shall be required for the following types of amendments to this Plan: (i) any change to those persons who
are entitled to become participants under the Plan which would have the potential of broadening or increasing Insider participation; or (ii) the addition of any form of financial assistance or amendment to a financial assistance provision which
is more favourable to Grantees. 
 Further, the Board may, in its discretion, determine that any amendment should be effective only if
approved by the shareholders even if such approval is not expressly required by this Plan or by law. No Award may be granted during any suspension of this Plan or after termination of this Plan. 

Any amendment, suspension or termination of this Plan shall not affect Awards already granted, and such Awards shall remain in full force and
effect as if this Plan had not been amended, suspended or terminated, unless mutually agreed otherwise between the Grantee and the Administrator, which agreement must be in writing and signed by the Grantee and the Company. At any time and from time
to time, the Administrator may amend, modify, or terminate any outstanding Award or Award Agreement without approval of the Grantee; provided, however, that subject to the applicable Award Agreement, no such amendment, modification or termination
shall, without the Grantee’s consent, reduce or diminish the value of such Award determined as if the Award had been exercised, vested, cashed in or otherwise settled on the date of such amendment or termination. 

  
 - 32 - 

 Notwithstanding any provision herein to the contrary, the Administrator shall have broad
authority to amend this Plan or any outstanding Award under this Plan without approval of the Grantee to the extent necessary or desirable: (i) to comply with, or take into account changes in, applicable tax laws, securities laws, accounting
rules and other applicable laws, rules and regulations; or (ii) to ensure that an Award is not subject to interest and penalties under Section 409A of the Code or the excise tax imposed by Section 4999 of the Code. 

Further, notwithstanding any provision herein to the contrary, and subject to Applicable Law, the Administrator may, in its absolute
discretion, amend or modify this Plan: (i) to make amendments which are of a “housekeeping” or clerical nature; (ii) to change the vesting provisions of an Award granted hereunder, as applicable; (iii) to change the
termination provision of an Award granted hereunder, as applicable, which does not entail an extension beyond the original expiry date of such Award; and (iv) the addition of a cashless exercise feature, payable in cash or securities, which
provides for a full deduction of the number of underlying securities from the Maximum Number. 
  

	29.	 RESERVATION OF SHARES 

The Company, during the term of this Plan, shall at all times reserve and keep available such number of Shares as shall be sufficient to
satisfy the requirements of this Plan. 
 The Shares to be issued hereunder upon exercise of an Award may be either authorized but unissued;
supplied to the Plan through acquisitions of Shares on the open market; Shares forfeited back to the Plan; Shares surrendered in payment of the exercise price of an Award; or Shares withheld for payment of applicable employment taxes and/or
withholding obligations resulting from the exercise of an Award. 
 The inability of the Company to obtain authority from any regulatory
body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such
Shares as to which such requisite authority shall not have been obtained. 
  

	30.	 EXCHANGE AND BUYOUT OF AWARDS 

The Administrator may, at any time or from time to time, authorize the Company, with the consent of the respective Grantees, to issue new
Awards in exchange for the surrender and cancellation of any or all outstanding Awards. The Administrator may at any time buy from a Grantee an Award previously granted with payment in cash, Shares (including Restricted Stock) or other
consideration, based on such terms and conditions as the Administrator and the Grantee may agree. 

  
 - 33 - 

	31.	 APPLICABLE TRADING POLICY 

The Administrator and each Eligible Participant will ensure that all actions taken and decisions made by the Administrator or an Eligible
Participant, as the case may be, pursuant to this Plan comply with any Applicable Laws and policies of the Company relating to insider trading or “blackout” periods. 

 

	32.	 GOVERNING LAW 

The Plan shall be governed by the laws of the State of Wyoming; provided, however, that any Award Agreement may provide by its terms that it
shall be governed by the laws of any other jurisdiction as may be deemed appropriate by the parties thereto. 
  

	33.	 MISCELLANEOUS 

Except as specifically provided in a retirement or other benefit plan of the Company or a Related Entity, Awards shall not be deemed
compensation for purposes of computing benefits or contributions under any retirement plan of the Company or a Related Entity, and shall not affect any benefits under any other benefit plan of any kind or any benefit plan subsequently instituted
under which the availability or amount of benefits is related to level of compensation. The Plan is not a “Retirement Plan” or “Welfare Plan” under the Employee Retirement Income Security Act of 1974, as amended. 

  
 - 34 - 

 SUBPART A 

STOCK AND DEFERRED STOCK UNITS FOR ELIGIBLE DIRECTORS 

A. Stock Award. The Administrator shall pay Eligible Remuneration to each Director pursuant to an Award Agreement. 

B. Election. Further, the Administrator may, in its sole discretion, permit each Eligible Director to receive all or any portion of his Eligible
Remuneration during the Remuneration Period in the form of Deferred Stock Units under this Plan (an “Election”). All deferrals pursuant to such an Election shall be evidenced by an Award Agreement. 

For purposes of this Subpart A, the following definitions shall apply: 

“Annual Retainer” for a particular Director means the retainer (including any additional amounts payable for serving as lead Director or on
any committee of the Board), payable to that Director for serving as a Director for the relevant Remuneration Period, as determined by the Board; 

“Attendance Fee” means amounts payable annually to a Director as a Board meeting attendance fee or a committee meeting attendance fee, or any
portion thereof; 
 “Canadian Director” means a Director who is a resident of Canada for the purposes of the Canadian Tax Act, and whose
income from employment by the Company or Related Entity is subject to Canadian income tax, notwithstanding any provision of the Canada-United States Income Tax Convention (1980), as amended; 

“Canadian Tax Act” and “Canadian Tax Regulations” means respectively the Income Tax Act (Canada), as amended and the
Income Tax Regulation promulgated thereunder, as amended; 
 “Deferred Stock Unit” means a right granted by the Company to an Eligible
Director to receive, on a deferred payment basis, Shares under this Plan; 
 “Eligible Director” is any Director of this Company or Related
Entity that the Administrator determines is eligible to elect to receive Deferred Stock Units under this Plan; 
 “Eligible Remuneration”
means all amounts payable to an Eligible Director in Shares, including all or part of amounts payable in satisfaction of the Annual Retainer, Attendance Fees or any other fees relating to service on the Board which are payable to an Eligible
Director or in satisfaction of rights or property surrendered by an Eligible Director to the Company; it being understood that the amount of Eligible Remuneration payable to any Eligible Director may be calculated by the Administrator in a different
manner than Eligible Remuneration payable to another Eligible Director in its sole and absolute discretion; 
 “Prescribed Plan or
Arrangement” means a prescribed plan or arrangement as defined in s.6801(d) of the Canadian Tax Regulation; 
 “Remuneration
Period” means, as applicable, (a) the period commencing on the Effective Date of this Plan and ending on the last day of the calendar year in which the Effective Date occurs; and (b) thereafter each subsequent calendar year, or
where the context requires, any portion of such period; and 

  
 - 1 - 

 “Salary Deferral Arrangement” means a salary deferral arrangement as defined in the
Canadian Tax Act. 
 1. Election. An Eligible Director who desires to defer receipt of all or a portion of his or her Eligible Remuneration in any
calendar year shall make such election in writing to the Company specifying: 
  

	 	(a)	 the dollar amount or percentage of Eligible Remuneration to be deferred; and 

 

	 	(b)	 the deferral period. 

Otherwise, such election must be made before the first day of the calendar year in which the Eligible Remuneration shall be payable, however a
newly appointed Eligible Director shall be eligible to defer payment of future Eligible Remuneration by providing written election to the Company within 30 calendar days of his or her appointment to the Board of Directors. The elections made
pursuant to this Section shall be irrevocable with respect to Eligible Remuneration to which such elections pertain and shall also apply to subsequent Eligible Remuneration payable in future calendar years unless such Eligible Director notifies the
Company in writing, before the first day of the applicable calendar year, that he or she desires to change such election. 
 If the Eligible
Director does not timely deliver an election in respect of a particular Remuneration Period, the Eligible Director will receive the Eligible Remuneration as provided for in the Award Agreement. 

2. Determination Of Deferred Stock Units. The Company will maintain a separate account for each Eligible Director to which it will quarterly credit
Deferred Stock Units at the end of March, June, November and December, or as otherwise determined by the Administrator, the Deferred Stock Units granted to the Eligible Director for the relevant Remuneration Period. The number of Deferred Stock
Units (including fractional Deferred Stock Units, computed to three digits) to be credited to an account for an Eligible Director will be determined on the date approved by the Administrator by dividing the appropriate amount of Eligible
Remuneration to be deferred into Deferred Stock Units by the Fair Market Value on that date. 
 3. No Voting Rights. The holders of Deferred Stock
Units shall have no rights as stockholders of the Company. 
 4. Dividend Equivalency. The Company will, on any date on which a cash or stock dividend
is paid on its outstanding Shares, credit to each Eligible Director’s account that number of additional Deferred Stock Units (including fractional Deferred Stock Units, computed to three digits) calculated by (i) multiplying the amount of
the dividend per Share by the number of Deferred Stock Units in the account as of the record date for payment of the dividend, and (ii)dividing the amount obtained in (i) by the Fair Market Value on the date on which the dividend is paid. (See
Section 13 of the Plan, Dividend Equivalent Right). 

  
 - 2 - 

 5. Eligible Director’s Account. A written confirmation of the balance in each Eligible
Directors’ Account will be sent by the Company to the Eligible Director upon request of the Eligible Director. 
 6. Creditor’s Rights. A
holder of Deferred Stock Units shall have no rights other than those of a general creditor of the Company. Deferred Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and condition of the applicable Award
Agreement. 
 7. Settlement of Deferred Stock Units. Subject to Section 8, each Deferred Stock Unit shall be paid and settled by the issuance of
Restricted or unrestricted Shares in accordance with the Award Agreement and if such settlement is subject to Section 409A of the Code only upon any one or more of the following as provided for in the Award Agreement: 

(a) a specific date or date determinable by a fixed schedule; 

(b) upon the Eligible Director’s termination of Continuous Services to the extent the same constitutes a separation from services for the
purposes of Section 409A of the Code except that if an Eligible Director is a “key employee” as defined in Section 409A of the Code for such purposes, then payment or settlement shall occur 6 months following such separation of
service; 
 (c) as a result of the Eligible Director’s death or Disability; or 

(d) in connection with or as a result of a Change in Control in compliance with 409A of the Code. 

The Company will issue one Share for each whole Deferred Stock Unit credited to the Eligible Director’s account (net of any applicable
withholding tax as provided for in this Plan). Such payment shall be made by the Company as soon as reasonably possible following the settlement date. Fractional Shares shall not be issued, and where the Eligible Director would be entitled to
receive a fractional Shares in respect of any fractional Deferred Stock Unit, the Company shall pay to such Eligible Director, in lieu of such fractional Shares, cash equal to the Fair Market Value of such fractional Shares calculated as of the day
before such payment is made, net of any applicable withholding tax. 
 8. Canadian Directors. If a Deferred Stock Unit is granted to an Eligible
Director who is a Canadian Director would otherwise constitute a Salary Deferred Arrangement, the Award Agreement pertaining to that Deferred Stock Unit shall contain such other or additional terms as will cause the Deferred Stock Unit to be a
Prescribed Plan or Arrangement. 
 9 Issuance of Stock Certificates. A stock certificate or certificates shall be registered and issued in the name of
the holder of Deferred Stock Units and delivered to such holder as soon as practicable after such Deferred Stock Units have become payable or satisfied in accordance with the terms of the Plan 

10. Non-Exclusivity. Nothing in this Subpart A shall prohibit the Administrator from making discretionary Awards
to Eligible Directors pursuant to the other provisions of this Plan or outside this Plan, not otherwise inconsistent with these provisions. 
 11. Defined
Terms. Capitalized terms used in this Subpart A and not defined herein have the meaning give in the Plan. 
  

 

  
 - 3 -EX-10.6

 Exhibit 10.6 

AVADIM TECHNOLOGIES INC. 

RESTRICTED STOCK PLAN 

Section 1.        Purpose 

Avadim Technologies Inc., a Wyoming corporation (the “Company”) hereby adopts this Avadim Technologies Inc. Restricted Stock
Plan (the “Plan”). The purposes of this Plan are to (i) advance the interests of the Company; (ii) recognize and compensate selected individuals who contribute to the development and success of the Company and its
Affiliates; (iii) maintain the competitive position of the Company and its Affiliates by attracting and retaining Eligible Recipients who are in a position to contribute to the long-term success of the Company and its Affiliates; and
(iv) provide incentive compensation to Eligible Recipients based upon the Company’s and its Affiliates’ performance. 

Section 2.        Definitions 

Wherever the following initially capitalized terms are used in this Plan, they shall have the meanings specified below unless the context
clearly indicates otherwise: 
 “Affiliate” means, with respect to any Person, any other Person that controls, is
controlled by or is under common control with such Person. For the purposes of this definition, “control” (including, without limitation, with its correlative meanings, the terms “controlled by” and “under common control
with”), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of securities, by contract
or otherwise. 
 “Award” means an award of Restricted Stock under this Plan. 

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

“Cause” means, with respect to a Termination of Employment by the Company, that such termination is for “Cause” as
such term is expressly defined in a then-effective written agreement between the Grantee and the Company or such Affiliate, or in the absence of such then-effective written agreement and definition, is based on, in the Sole Discretion of the
Committee, the Grantee’s: (i) refusal or failure to act in accordance with any specific, lawful direction or order of the Company or Affiliate of the Company; (ii) unfitness or unavailability for service or unsatisfactory performance
(other than as a result of Disability); (iii) performance of any act or failure to perform any act in bad faith and to the detriment of the Company or Affiliate of the Company; (iv) dishonesty, intentional misconduct or material breach of any
agreement with the Company or Affiliate of the Company; (v) commission of a crime involving dishonesty, breach of trust, or physical or emotional harm to any person; (vi) committing an act that can cause damage or has the potential to
cause damage to the reputation of the Company; 
 “Change in Control” shall mean the occurrence of either of the following:

 (a)        Any “person” (as such term is used in Sections 13(d) and
14(d)(2) of the Exchange Act) who did not own shares of the capital stock of the Company on the date of effectiveness of this Plan shall, together with his, her or its “Affiliates” and “Associates” (as such terms are defined in Rule 12b-2 promulgated under the Exchange Act), become the “Beneficial Owner” (as such term is defined in Rule 13d-3 promulgated under the Exchange Act),
directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities (any such person being hereinafter referred to as an “Acquiring
Person”); or 

 (b)        There should occur (i) any
consolidation, merger or reorganization involving the Company and the Company shall not be the continuing or surviving corporation or the shares of the Company’s capital stock shall be converted into cash, securities or other property;
provided, however, that this subclause (i) shall not apply to a merger, consolidation or reorganization in which (A) the Company is the surviving corporation and (B) the shareholders of the Company immediately prior to the transaction
own, directly or indirectly immediately following such merger, consolidation or reorganization at least fifty percent (50%) of the combined voting power of the surviving corporation in substantially the same proportion as their ownership immediately
before such merger, consolidation or reorganization; (ii) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company; or (iii) any
liquidation or dissolution of the Company. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended. 

“Committee” shall mean the Compensation Committee of the Board, if any, or any other committee of the Board, in either case,
as described in Section 4, appointed by the Board from time to time to administer this Plan and to perform the functions set forth herein. If no such committee is so appointed, the Committee shall mean the Board. 

“Common Stock” shall mean the common stock of the Company or any securities resulting from any reclassification or
recapitalization of such shares, and the Company may assign its rights and obligations under this Plan to the issuer of any such securities. 

“Company” shall mean Avadim Technologies Inc., a corporation organized under the laws of the State of Wyoming or any business
organization that succeeds to its business and elects to continue this Plan. 
 “Director” shall mean a member of the
Board. 
 “Disability” shall mean a physical or mental infirmity which impairs the Grantee’s ability to perform the
essential functions of his/her position for a period of one hundred eighty (180) consecutive days. 
 “Eligible
Recipient” shall mean any of the following individuals who is designated by the Committee as eligible to receive Restricted Stock subject to the conditions set forth herein: (a) any Director, (b) any Employee, or (c) any
other Person that provides services to the Company. 
 “Employee” shall mean any individual who works for or provide
services to the Company or its Subsidiaries including, without limitation, any director, consultant, service provider, officer, employee, agent, advisor, independent contractor, or any individual to whom the Employer has engaged to provide services.

 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the
Securities Exchange Commission thereunder. 
 “Grantee” shall mean an Eligible Recipient granted an Award. 

“Law” means any federal, state, local, foreign, or other constitution, statute, treaty, ordinance, rule, regulation,
regulatory or administrative guidance, principle of common law or equity, order or other law, requirement, or standard promulgated by any governmental authority of any jurisdiction. 

“Permitted Transferee” means with respect to any stockholder of the Company who is a natural person, (A) the spouse, any
lineal ancestor or descendant (including by adoption and stepchildren) of such 

 
stockholder or any of their Permitted Transferees or any trust of which such stockholder or any Permitted Transferees of such stockholder are the controlling trustees and which is established
solely for the benefit of any of the foregoing individuals, (B) a corporation, partnership, limited liability company or other state law entity in which the stockholder, recipient or grantee of Options or Shares owns an equity interest greater
than fifty percent (50%), or (C) the estate of a stockholder established by reason of any of the foregoing individual’s death or any beneficiaries of such estate. 

“Person” shall mean an individual, partnership, corporation, limited liability company, trust, unincorporated organization,
joint venture, or any other entity of any kind. 
 “Plan” shall mean the Avadim Technologies Inc. Restricted Stock Plan as
set forth herein and as amended from time to time. 
 “Qualified IPO” shall mean the consummation of an underwritten public
offering of Shares registered under the Securities Act on or before January 1, 2021 that results in gross proceeds to the Company of at least $10 million. 

“Restricted Stock” shall mean Common Stock awarded under and subject to this Plan that have not vested pursuant to
Section 5 or Section 7 of this Plan. 
 “Restricted Stock Agreement” shall mean a letter, certificate or other
agreement between the Company and the Grantee, evidencing the grant of Restricted Stock hereunder and setting forth the terms and conditions thereof, not inconsistent with the express provisions of this Plan, as the Committee shall approve in its
Sole Discretion. 
 “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of
the Securities Exchange Commission thereunder. 
 “Share” shall mean a share of Common Stock, Restricted Stock, or any
securities resulting from any reclassification or recapitalization of such shares, and the Company may assign its rights and obligations under this Plan to the issuer of any such securities. The attributes of the Shares are as set forth in the
Company’s Amended and Restated Certificate of Incorporation. 
 “Sole Discretion” with respect to a decision or action
to be made or taken by the Company, the Board, or the Committee (collectively, the “Decider”) and notwithstanding any other provision of this Plan to the contrary, the Decider is entitled, to the fullest extent permitted by Law, to
consider only those interests or factors as the Decider desires, including the Decider’s own interests, without regard to, and without having any duty or obligation (including having no fiduciary or other common law duty or other duty that may
exist at, or be implied by Law that would or might otherwise apply) to consider the interests of, or consequences to, the Company, the Grantees, the shareholders, or any other Person. 

“Subsidiary” shall mean an entity in an unbroken chain beginning with the Company if each of the entities other than the last
entity in the unbroken chain owns fifty percent (50%) or more of the total combined voting power of all classes of equity in one of the other entities in such chain. 

“Termination of Employment” shall mean the date on which the relationship between a Grantee and the Company, its Affiliates,
or its Subsidiaries, under which the Grantee provides service to the Company, its Affiliates, or its Subsidiaries as an employee, officer, director, advisor, independent contractor, or otherwise, is terminated for any or no reason, with or without
Cause, including, but not by way of limitation, a termination by resignation, discharge, death, disability or retirement. The Committee shall determine in its Sole Discretion the effect of all matters and questions relating to Termination of

 
Employment (subject to the provisions of any agreement between an Employee and the Company, its Affiliates, or its Subsidiaries), including, but not by way of limitation, the question of whether
a Termination of Employment resulted from a discharge for Cause, the application of Sections 5, 6, 7 and 8 of this Plan, and all questions of whether particular leaves of absence constitute Terminations of Employment. Notwithstanding any other
provision of this Plan, the Company, its Affiliates, or its Subsidiaries have an absolute and unrestricted right to terminate a Grantee’s employment (or other service-providing relationship) at any time for any reason whatsoever, with or
without Cause, except to the extent expressly provided otherwise in writing. 
 “Transfer” shall mean, to directly or
indirectly, sell, transfer, assign, pledge, encumber, mortgage, hypothecate or in any way alienate all or any shares of Restricted Stock, or any rights or profits therefrom, whether now owned or hereafter acquired, whether voluntarily,
involuntarily, or by operation of law, including in conjunction with any divorce proceedings, or by gift, bequest or otherwise. 

“Transferee” means any Person to whom a Transfer is made. 

Section 3.        Shares Available under the Plan 

Subject to Section 8, the stock subject to an award of Restricted Stock shall be shares of the Company’s authorized but unissued,
reacquired, or treasury Common Stock, and the aggregate number of such shares which may be issued upon any such awards shall not exceed an amount determined from time to time by the Board in its Sole Discretion. If, for any reason, any share of
Restricted Stock is forfeited by the Grantee pursuant to Section 6 hereof, such share may again be granted or awarded hereunder, subject to the limitations set forth in this Section. The Board may, in its Sole Discretion, modify the aggregate
number of shares of Restricted Stock that may be issued under this Plan; provided, however, the Board may not reduce the aggregate number of such shares that may be issued below the number of such shares issued and outstanding at the time of the
reduction. 
 Section 4.        Administration of the Plan 

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

(i)    to select the Eligible Recipients to be awarded Restricted Stock; 

(ii)    to determine the number of shares of Restricted Stock granted in an Award; 

(iii)    to determine the purchase price, if any, and the form of payment for any Restricted Stock awarded under this
Plan, including, without limitation, the Company’s financing the Grantee’s payment or the Company’s guarantee of third-party financing of the Grantee’s payment; 

(iv)    to determine and/or modify the terms and conditions applicable to any Restricted Stock awarded under this Plan,
including without limitation, conditions related to payment of the Company’s tax withholding obligations, vesting, forfeiture, delivery, holding, and disposition of the Restricted Stock; 

(v)    to determine when and if any restrictions applicable to any Restricted Stock granted under this Plan lapse; 

(vi)    to prescribe the form of each Restricted Stock Agreement; 

 (vii)    to adopt, amend, suspend, waive and rescind such rules and
regulations and appoint such agents as the Committee may deem necessary or advisable to administer this Plan; 

(viii)    to correct any defect or supply any omission or reconcile any inconsistency in this Plan and to construe and
interpret this Plan and any Restricted Stock, Award, or Restricted Stock Agreement, or other instrument hereunder; and 

(ix)    to make all other decisions and determinations as may be required under the terms of this Plan or as the Committee
may deem necessary or advisable for the administration of this Plan. 
 (b)    Manner of Exercise of Committee
Authority. Any action of the Committee with respect to this Plan shall be final, conclusive and binding on all Persons, including, without limitation, the Company, its Affiliates, its Subsidiaries, Grantees, or any Person claiming any rights
under this Plan from or through any Grantee, except to the extent the Committee may subsequently modify, or take further action not consistent with, its prior action. If not specified in this 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. The Committee may delegate to officers or managers of the Company or any Affiliate of the Company the authority, subject to such terms as the Committee shall determine, to perform such
functions as the Committee may determine, to the extent permitted under applicable law. 
 (c)    Limitation of
Liability. Each member 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 or other employee of the Company or any of its Affiliates or Subsidiaries, the
Company’s independent certified public accountants or any executive compensation consultant, legal counsel or other professional retained by the Company to assist in the administration of this Plan. To the fullest extent permitted by applicable
law, no member of the Committee, nor any officer, advisor or employee of the Company acting on behalf of the Committee, shall be personally liable for any action, determination or interpretation taken or made in good faith with respect to this Plan,
and all members of the Committee and any officer, advisor or employee of the Company acting on its behalf shall, to the extent permitted by law, be fully indemnified and protected by the Company with respect to any such action, determination or
interpretation. 
 Section 5.        Vesting of Restricted Stock 

Except as otherwise provided in the Grantee’s Restricted Stock Agreement or as otherwise provided herein, no Restricted Stock shall vest
until the later of (i) the completion of a Qualified IPO, (ii) the first date on which the Grantee would not be subject to suit under the “short swing” profit rules of §16(b) of the Exchange Act for the sale of the
Restricted Stock at a profit following completion of a Qualified IPO, or (iii) the first date on which the Restricted Stock is no longer subject to a lock-up or similar agreement entered into by the
Grantee following completion of a Qualified IPO (collectively, the “Purpose Vesting Conditions”). In addition to the Purpose Vesting Conditions, each share of Restricted Stock shall be subject to and vest in accordance with the
schedule or other vesting conditions set forth on the Grantee’s Restricted Stock Agreement (the “Earn-out Vesting Conditions”). For the avoidance of doubt, unless the Committee determines
otherwise, no Restricted Stock shall vest until all applicable Purpose Vesting Conditions and Earn-out Conditions have been satisfied. The Committee may accelerate the vesting of any or all outstanding shares
of Restricted Stock at any time and from time to time for any reason or no reason. 

 Section 6.        Forfeiture of Restricted Stock

 Unless otherwise determined by the Committee, in its Sole Discretion, or set forth in the applicable Restricted Stock Agreement, all
of the following Restricted Stock shall be forfeited and automatically canceled and any certificate or book entry representing or evidencing such Restricted Stock will likewise be canceled at no cost to the Company on the earlier of: 

(a)    with regard to any Restricted Stock of a Grantee, upon the Grantee’s Termination of Employment by (i) the
Grantee for any or no reason other than due to Death or disability, or (ii) the Company for Cause; 
 (b)    with
regard to any Restricted Stock of a Grantee for which the Earn-out Vesting Conditions have not been satisfied and, in the discretion of the Committee, will not be satisfied within three months of the
Grantee’s Termination of Employment, upon the Grantee’s Termination of Employment for any or no reason; 

(c)    with regard to any Restricted Stock of a Grantee for which, in the discretion of the Committee, it has become
impossible for the Purpose Vesting Conditions or Earn-our Vesting Conditions to be satisfied; or 

(d)    upon the cancellation, termination or expiration of the Restricted Stock pursuant to action taken by the Committee
in accordance with Section 8 or Section 9. 
 Section 7.        Acceleration of Vesting

 (a)    Acceleration of Vesting on Termination of Employment. Unless otherwise provided in a Restricted
Stock Agreement, upon the Grantee’s Termination of Employment, all unsatisfied Earn-out Vesting Conditions at the time of such Termination of Employment will be waived, and the Grantee will retain any
Restricted Stock, subject to any outstanding Purpose Vesting Conditions, so long as (i) the Committee determines that the Earn-out Vesting Conditions would be met within three months of such Termination
of Employment, and (ii) the Grantee’s Termination of Employment was for any of the following reasons: (A) termination by the Company, other than termination for Cause, or (B) Disability or death. 

(b)    Acceleration of Vesting on Change in Control. Unless otherwise provided in a Restricted Stock Agreement, all
Restricted Stock shall become fully vested immediately upon a Change in Control that is not a Qualified IPO. 

Section 8.        Adjustment Upon Changes in Capitalization 

In the event any recapitalization, forward or reverse split, reorganization, merger, consolidation,
spin-off, combination, repurchase, exchange or issuance of Shares or other securities, any stock dividend or other special and nonrecurring dividend or distribution (whether in the form of cash, securities or
other property), liquidation, dissolution, or other similar transactions or events, affects the Shares, then the Committee may make such equitable adjustments, if any, as it determines in its discretion are appropriate in order to prevent
unanticipated dilution or enlargement of the rights of Grantees under this Plan, including, without limitation, adjustment in the number and kind of shares deemed to be available thereafter for grants of Restricted Stock under Section 3. 

Section 9.        Restrictions/Rights on Restricted Stock 

(a)    Restrictions on Issuing Shares. No shares of Restricted Stock shall be issued or Transferred to a Grantee
under this Plan unless and until all applicable legal requirements have been complied with to 

 
the satisfaction of the Committee. The Committee shall have the right to condition the acquisition of Restricted Stock on the Grantee’s undertaking in writing to comply with such
restrictions on any subsequent disposition of the Restricted Stock issued or Transferred thereunder as the Committee shall deem necessary or advisable as a result of any applicable law, regulation, official interpretation thereof, or any
underwriting agreement. 
 (b)    Transfer Restrictions. Unless otherwise determined by the Committee, no
Restricted Stock may be Transferred or otherwise encumbered unless the Company is duly provided thirty (30) days advance written notice and either (i) the Transfer is pursuant to a domestic relations order (within the meaning of Rule 16a-12 promulgated under the Exchange Act), or (ii) the Transferee of such Transfer is a Permitted Transferee of the transferor-Grantee and the Transfer is expressly approved in writing by the Committee in each
instance. Any Transfer of Restricted Stock in violation of this Subsection shall be null and void, and each Grantee and Transferee agrees that any such Transfer or acquisition may and shall be enjoined or rescinded. The restrictions contained in
this Subsection shall apply to all current or future Grantees, assignees, or successors thereto. Upon any Transfer of Restricted Stock from a transaction permitted under this Subsection, subsequent to such Transfer, such Restricted Stock shall in
the hands of the Transferee once again be subject to all of the restrictions and other terms of this Plan and the transferor-Grantee’s Restricted Stock Agreement as if such Transferee was the original party thereto. Upon such Transfer, the
Restricted Stock shall remain subject to the terms of this Plan and the transferor-Grantee’s Restricted Stock Agreement in the hands of the Transferee and as a condition precedent to such Transfer, the Transferee shall be required to execute an
agreement to that effect. 
 (c)    Voting. Unless otherwise provided in the Restricted Stock Agreement, a
Grantee or Permitted Transferee of Restricted Stock shall have the same voting and other shareholder rights as a holder of Common Stock; provided, however, no such shareholder rights shall exist prior to the actual issuance of Restricted Stock in
the name of the Grantee or Permitted Transferee. 
 (d)    Certificates for Shares. Shares issued under this Plan
may be evidenced in such manner as the Committee shall determine and may be evidenced by book entries on the Company’s share register pending satisfaction of vesting conditions. If certificates representing Restricted Stock are issued and
registered in the name of a Grantee, such certificates shall be endorsed with the following legend (or such other language as determined by the Committee): 

“THE SALE, TRANSFER OR ASSIGNMENT OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS OF
(A) THAT CERTAIN RESTRICTED STOCK PLAN OF THE COMPANY DATED ●, 2016, AND (B) THAT CERTAIN RESTRICTED STOCK AGREEMENT DATED              PURSUANT TO WHICH THE
COMPANY ISSUED THE SECURITIES REPRESENTED BY THIS CERTIFICATE. COPIES OF SUCH PLAN AND AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE COMPANY. 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN FULLY PAID FOR AND ARE SUBJECT TO RESTRICTIONS ON TRANSFER PURSUANT TO WY STAT.
§ 17-16-621(E).” 
 Certificates representing
Restricted Stock or Shares issued pursuant to this Plan that have vested shall also be endorsed with the following legend (or similar language as determined by the Committee) and any other legends determined by the Committee or required under
applicable state securities laws: 

 “THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED, OR THE LAWS OF ANY STATE, AND ARE BEING ISSUED PURSUANT TO AN EXEMPTION FROM REGISTRATION PERTAINING TO SUCH SECURITIES AND PURSUANT TO A REPRESENTATION BY THE SECURITY HOLDER NAMED HEREON THAT SAID SECURITIES HAVE BEEN ACQUIRED
FOR PURPOSES OF INVESTMENT AND NOT FOR PURPOSES OF DISTRIBUTION. THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION, OR THE AVAILABILITY OF AN EXEMPTION FROM SUCH REGISTRATION.” 

The Company may retain physical possession of certificates representing Restricted Stock, in which case the Company may require that the
Grantee deliver a power of transfer to the Company, endorsed in blank, relating to such Restricted Stock. 

Section 10.        General Provisions 

(a)    Restricted Stock Agreement. Each Award under this Plan shall be evidenced by a Restricted Stock Agreement.
The terms and provisions of such Restricted Stock Agreements may vary among Grantees and among different Awards granted to the same Grantee. 

(b)    No Right to Employment. The grant of an Award under this Plan in any year shall not give the Grantee any
right to similar grants in future years, any right to continue such Grantee’s employment, contractor or other relationship, as applicable, with the Company or its Affiliates. All Grantees shall remain subject to discharge to the same extent as
if this Plan were not in effect. For purposes of this Plan, a Grantee shall cease to be an Employee upon a sale of any Subsidiary of the Company that employs or engages such Grantee, unless the Grantee shall otherwise continue to provide services to
the Company or another Subsidiary of the Company as an officer, employee or director. 
 (c)    No Funding. No
Grantee, and no beneficiary or other Persons claiming under or through the Grantee, shall have any right, title or interest by reason of any Award under this Plan to any particular assets of the Company or Affiliates of the Company, or any Shares
allocated or reserved for the purposes of this Plan except as set forth herein. The Company shall not be required to establish any fund or make any other segregation of assets to assure satisfaction of the Company’s obligations under this Plan.

 (d)    Employee Data Privacy. By accepting an Award, the Grantee: (i) consents to the collection, use and
transfer of personal data as described in this Section 10(d), (ii) understands that the Company and its Affiliates hold certain personal information about the Grantee including, but not limited to, name, home address and telephone number, date
of birth, social security number, salary, nationality, job title, common shares or directorships held in the Company, details of all other entitlement to common shares awarded, cancelled, exercised, vested, unvested or outstanding in the
Grantee’s favor, for the purpose of managing and administering the Award (“Data”), (iii) understands that the Company and/or its Affiliates will transfer Data amongst themselves as necessary for the purposes of implementation,
administration and management of this Award, and that the Company and/or any of its Affiliates may each further transfer Data to any third parties assisting the Company in such implementation, administration and management, (iv) authorizes the
Company and/or its Affiliates to receive, possess, use, retain and transfer Data in electronic or other form, for the purposes of implementing, administering and managing the Award, including any requisite transfer of such Data as may be required
for the administration of this Award and/or the subsequent holding Shares on the Grantee’s behalf to a broker or other third party with whom the Shares acquired on exercise may be deposited, and (v) understands that it may, at any time,
view the Data, require any necessary amendments to it or withdraw the consent herein in writing by contacting the local human resources representative. 

 (e)    Governing Law; Jurisdiction. The corporate laws of the
State of North Carolina will govern all questions concerning the relative rights of the Company and its stockholders hereunder. All other questions concerning the validity, and interpretation of this Plan and any Restricted Stock Agreement shall be
governed by and construed in accordance with the domestic laws of the State of North Carolina, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of North Carolina or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the State of North Carolina. Each Grantee, and each beneficiary or other Person claiming under or through the Grantee by accepting the grant of an Award, consents to the
exclusive jurisdiction of any state or federal court located within the State of North Carolina, agrees that all actions or proceedings relating to this Plan shall be litigated in such courts, waives any defense of forum non
conveniens, and agrees to be bound by any final and nonappealable judgment rendered thereby in connection with this Plan and any Restricted Stock Agreement. To the extent the Grantee is a party to an employment agreement with the Company or
any of its Affiliates that provides for binding arbitration of employment disputes, then any disputes between the Company and such Grantee arising under this Plan shall be arbitrated in accordance with the procedures set forth in such employment
agreement. 
 (f)    Taxes. Before the Company issues any Shares to a Grantee pursuant to this Plan, the Company
shall have the right to require that the Grantee make such provision, or furnish the Company such authorization, necessary or desirable so that the Company may satisfy its obligation under applicable tax laws to withhold for income or other taxes
due upon or incident to such issuance of Restricted Stock to such Grantee. 

Section 11.        Amendment or Termination 

In addition to its authority elsewhere in this Plan, the Committee may, at any time and in its Sole Discretion, amend or terminate this Plan.
Any amendment or termination of this Plan shall not affect Restricted Stock already outstanding under this Plan, and such Restricted Stock shall remain in full force and effect as if this Plan has not been amended or terminated, unless mutually
agreed otherwise between the Grantee and the Company, which agreement must be in writing and signed by the Grantee and the Company. At any time and from time to time, the Committee may amend, modify, or terminate any outstanding Restricted Stock or
Restricted Stock Agreement without approval of the Grantee; provided, however, that subject to the applicable Restricted Stock Agreement, no such amendment, modification or termination shall, without the Grantee’s consent, reduce or diminish
the value of such Restricted Stock determined as if the Restricted Stock had been vested on the date of such amendment or termination. 

Notwithstanding any provision herein to the contrary, the Committee shall have broad authority to amend this Plan or any outstanding
Restricted Stock under this Plan without approval of the Grantee to the extent necessary or desirable: (i) to comply with, or take into account changes in, applicable tax laws, securities laws, accounting rules and other applicable laws, rules
and regulations; or (ii) to ensure that such Restricted Stock is not subject to interest and penalties under Section 409A of the Code or the excise tax imposed by Section 4999 of the Code. Further, notwithstanding any provision herein
to the contrary, and subject to applicable laws, the Committee may, in its absolute discretion, amend or modify this Plan to make amendments which are of a “housekeeping” or clerical nature. 

 AVADIM TECHNOLOGIES INC. 

RESTRICTED STOCK AGREEMENT 

Dated:● 

Grantee: ● 

THIS RESTRICTED STOCK AGREEMENT is made as of ● (“Effective Date”) between Avadim Technologies Inc., a Wyoming
corporation (the “Company”), and ● (the “Grantee”). To carry out the purposes of the Avadim Technologies Inc. Restricted Stock Plan (the “Plan”), by affording Grantee the opportunity to
acquire shares of Restricted Stock of the Company, and in consideration of the mutual agreements and other matters set forth herein and in the Plan, the Company and Grantee hereby agree as follows: 

1.    Award of Shares. Upon execution of this Agreement, the Company shall issue ● shares of Restricted Stock
to Grantee (the “Restricted Shares”). Grantee acknowledges receipt of a copy of the Plan, and agrees that this award of Restricted Stock shall be subject to all of the terms and conditions set forth herein and in the Plan, including
future amendments thereto, if any, pursuant to the terms thereof, which Plan is incorporated herein by reference as a part of this Agreement. In the event of any conflict between the terms of this Agreement and the Plan, the terms of the Plan shall
govern unless this Agreement expressly states that it shall take precedence with respect to such conflict. Unless otherwise defined herein, all capitalized terms contained herein shall have the meaning set forth in the Plan. 

2.    Vesting; Forfeiture Restrictions. The Restricted Shares shall vest in accordance with Section 5,
Section 6 and Section 7 of the Plan and shall be subject to the forfeiture, transfer and other restrictions set forth in the Plan. In addition, the Restricted Shares shall be subject to the following
Earn-out Vesting Conditions: 
  

● 

3.    Certificates. The Restricted Shares shall be evidenced by a book entry on the Share Register maintained by
the Company and no certificates shall be issued representing the Restricted Shares. The Grantee acknowledges that the Restricted Shares are subject to restrictions on transfer as provided in the Plan. Upon vesting of any Restricted Shares, the
Company will issue to the Recipient a certificate evidencing the Restricted Shares in Grantee’s name which shall bear the legend, if any, required under the Plan. 

4.    Consideration. It is understood that the consideration for the issuance of Restricted Shares is ●, in
addition to the covenants provided herein. 
 5.    Withholding of Tax. Except as otherwise provided herein, to
the extent that the receipt of the Restricted Shares results in compensation income to Grantee for federal or state tax purposes, Grantee shall deliver to the Company at the time of such receipt, such amount of money as the Company may require to
meet its withholding obligation under applicable tax laws or regulations, and, if Grantee fails to do so, the Company is authorized to withhold from any cash or Restricted Stock remuneration then or thereafter payable to Grantee any tax required to
be withheld by reason of such resulting compensation income. To the extent that an event occurs upon which Restricted Stock become vested, resulting in compensation income to Grantee for federal or state tax purposes and Grantee has not otherwise
made arrangements to satisfy its withholding obligation, the Company is authorized to withhold from any cash or Restricted Stock remuneration then or thereafter payable to Grantee any tax required to be withheld by reason of such resulting
compensation income. 

 6.    Status of Restricted Shares. The Restricted Shares have not
been registered under the Securities Act of 1933, as amended (the “1933 Act”), or under any state securities laws, and are “restricted securities” as defined in Rule 144 under the 1933 Act. Grantee agrees that the
Restricted Shares will not be sold or otherwise disposed of in any manner that would constitute a violation of any applicable federal or state securities laws. Grantee also agrees: (i) that the certificates representing the Restricted Shares
may bear such legend or legends as the Board deems appropriate in order to ensure compliance with applicable securities laws, (ii) that the Company may refuse to register the transfer of the Restricted Shares on the stock transfer records of
the Company if such proposed transfer would in the opinion of counsel satisfactory to the Company constitute a violation of any applicable securities law, and (iii) that the Company may give related instructions to its transfer agent, if any,
to stop registration of the transfer of the Restricted Shares. 
 7.    Board and Committee’s Powers. No
provision contained in this Agreement shall in any way terminate, modify or alter, or be construed or interpreted as terminating, modifying or altering any of the powers, rights or authority vested in the Board or the Committee pursuant to the terms
of the Plan, including, without limitation, the Board or the Committee’s rights to make certain determinations and elections with respect to the Restricted Shares. 

8.    Binding Effect. This Agreement shall be binding upon and inure to the benefit of any successors to the
Company and all persons lawfully claiming under Grantee. 

9.    Non-alienation. Grantee shall not have any right to pledge,
hypothecate, anticipate or assign this Agreement or the rights hereunder, except by will or the laws of descent and distribution. 

10.    Not a Contract of Employment. This Agreement shall not be deemed to constitute a contract of employment, nor
shall any provision hereof affect: (a) the right of the Company to discharge Grantee at will, or (b) the terms and conditions of any other agreement between the Company and Grantee except as expressly provided herein. 

11.    Covenants not to Disclose, Compete or Solicit. 

 

	 	a.	 The Grantee acknowledge that (i) the Company is engaged in a continuous program of research, development
and production respecting its business (the foregoing, together with any other businesses in which the Company engages from the date of Grantee’s employment or engagement to the date of the termination of Grantee’s employment or engagement
with the Company and its Subsidiaries, is referred to as the “Company Business”); (ii) Grantee’s work for and position with the Company and/or one of its Subsidiaries has allowed Grantee, and will continue to allow Grantee,
access to trade secrets of, and Confidential Information concerning the Company Business; (iii) the Company Business is national and international in scope; (iv) the Company would not have agreed to grant you the Restricted Shares but for
the agreements and covenants contained in this Restricted Stock Agreement; and (v) the agreements and covenants contained in this Restricted Stock Agreement are necessary and essential to protect the Company Business, and the goodwill and
customer relationships that the Company and its Subsidiaries have expended significant resources to develop. Grantee understands and agrees that if Confidential Information were used in competition against the Company, the Company would experience
serious harm and the competitor would have a unique advantage against the Company. 

  

	 	b.	 Confidential Information. Grantee acknowledges that the continued success of the Company depends upon the use
and protection of a large body of confidential and proprietary information. All of such confidential and 

	 	
proprietary information now existing or to be developed in the future shall be referred to herein as “Confidential Information.” Confidential Information will be interpreted as
broadly as possible to include all information of any sort (whether merely remembered or embodied in a tangible or intangible form) that is (i) related to the Company’s current or potential Avadim Technologies Inc. Restricted Stock
Agreement Page 2 of 3 business and (ii) is not generally or publicly known. Confidential Information includes, without limitation, the information, observations and data obtained by Grantee during the course of Grantee’s performance of
services for the Company concerning the business and affairs of the Company and/or during any prior employment or engagement with the Company and/or any of its predecessors, information concerning acquisition opportunities in or reasonably related
to the Company’s business or industry of which Grantee becomes aware through Grantee’s employment with the Company, the persons or entities that are current, former or prospective suppliers or customers of any one or more of them, product
research and development, product formulations, and product formulation techniques and processes, as well as development, transition and transformation plans, methodologies and methods of doing business, all trade secrets, intellectual property,
strategic, marketing and expansion plans, including plans regarding planned and potential sales, financial and business plans, employee lists and information, locations of sales representatives, new and existing programs and services, prices and
terms, customer service, support and equipment. Therefore, Grantee agrees that Grantee shall only use such Confidential Information as may be required on behalf of the Company in connection with Grantee’s performance under this Agreement and
solely in the best interests of the Company and that Grantee shall not disclose to or for the benefit of any unauthorized person or for Grantee’s use for Grantee’s own account any of such Confidential Information without the prior approval
of the Board, unless and to the extent that any Confidential Information (i) becomes generally known to and available for use by the public other than as a result of Grantee’s acts or omissions, or (ii) is required to be disclosed
pursuant to any applicable law or court order. 

  

	 	c.	 Non-Competition. Grantee will not during Grantee’s employment or
engagement with the Company and for a period of twenty-four (24) months immediately thereafter, take a position, whether paid or unpaid, as an employee, consultant, owner or otherwise, in which Grantee performs duties similar to those performed
pursuant to Grantee’s employment or engagement at the Company including any management level, product development, fundraising, marketing, or financial-related position, for a Competitive Business in the Restricted Territory. For purposes of
this Agreement, “Competitive Business” shall mean an entity, business or person that is engaged in the business of developing, manufacturing, marketing, selling, and/or distributing skin therapy, skin infection prevention, wound
care, or muscle performance products and/or any other business or products engaged in by the Company or actively being developed or considered for development by management of the Company. (Each of the products referenced in this preceding sentence
is referred to herein as a “Competitive Product”.) For the purposes of this Agreement, the “Restricted Territory” shall be: (i) all countries where the Company is engaged in or is actively pursuing business and
/or, (ii) the United States of America and Ghana and/or (iii) the United States of America and/or (iv) North Carolina. Grantee acknowledges and agrees that the Company sells its products in the United States and internationally.

	 	d.	 Non-Solicitation. Grantee will not during Grantee’s employment or
engagement with the Company and for a period of twenty-four (24) months thereafter, (i) solicit, encourage or induce, or attempt to solicit, encourage or induce, any employee, consultant or contractor of the Company to leave the employ of
the Company, or in any way interfere with the relationship between the Company and any employee, consultant or contractor thereof, (ii) solicit for employment or a business relationship any person who was an employee, consultant or contractor
of the Company at any time within one month of Grantee’s termination of employment with the Company, or (iii) solicit, encourage or induce, or attempt to solicit, encourage or induce, any customer, supplier, licensee, licensor, franchisee
or other business relation of the Company to cease doing business with the Company, (B) solicit, or attempt to solicit, the business or patronage of any such customer, supplier, licensee, franchisee or other business relation of the Company in
connection with any Competitive Product, or (C) in any way interfere with the relationship between any such customer, supplier, licensee, licensor, franchisee or other business relation and the Company (including, without limitation, making any
negative or disparaging statements or communications regarding the Company). 

  

	 	e.	 Nothing in this Section 11 prohibits Grantee from being a passive owner of not more than 3% of any class
of securities of a publicly traded entity (or any amount of any class of securities of the Company), provided that Grantee does not engage in any other activity prohibited by this Section 11 or any other provision of this Restricted Stock
Agreement. 

  

	 	f.	 Any breach of any provision of this Section 11 will result in immediate and complete forfeiture of the
Restricted Stock. In addition, Grantee hereby agrees that if Grantee violates any provision of this Section 11, the Company will be entitled to injunctive relief, specific performance, or such other legal and equitable relief as is needed to
prevent or enjoin any violation of the provisions of this Restricted Stock Agreement in addition to and not to the exclusion of any other remedy that may be allowed by law for damages experienced prior to the issuance of injunctive relief.

  

	 	g.	 Grantee acknowledges that Grantee has given careful consideration to the restrictions imposed by this
Restricted Stock Agreement, and Grantee fully agrees that they are necessary for the reasonable and proper protection of the business of the Company and its Subsidiaries. The restrictions set forth herein shall be construed as a series of separate
and severable covenants. Grantee agrees that each and every restriction imposed by this Restricted Stock Agreement is reasonable with respect to subject matter, time period, and geographical area. Except as expressly set forth herein, the
restrictions imposed by this Restricted Stock Agreement shall continue during their full time periods and throughout the geographical area set forth in this Restricted Stock Agreement. 

 

	 	h.	 Grantee stipulates and agrees that one of the purposes of this Restricted Stock Agreement is to fully resolve
and bring finality to any concerns over the enforceability of the restrictions specified in this Section 11. Grantee also stipulates and agrees that (i) the enforceability of the restrictions specified in this Section 11, and
(ii) the Company’s agreement herein to provide Grantee with the Restricted Stock are mutually dependent clauses and obligations without which 

	 	
this Restricted Stock Agreement would not be made by the parties. Accordingly, Grantee agrees not to sue or otherwise pursue a legal claim to set aside or avoid enforcement of the restrictions
specified in this Section 11. And, in the event that Grantee or any other party pursues a legal challenge to the enforceability of any material provision of the restrictions in Section 11 of this Restricted Stock Agreement and a material
provision is found unenforceable by a court of law or other legally binding authority such that Grantee is no longer bound by a material provision of this Section 11, then the Restricted Stock shall be forfeited. The foregoing is not intended
as a liquidated damage remedy but is instead a return-of-gains and contractual rescission remedy due to the mutual dependent nature of the subject provisions in this
Restricted Stock Agreement. 

  

	 	i.	 If any of the restrictions specified in this Section 11 are deemed unenforceable as written, Grantee and
the Company expressly authorize the court to revise, delete, or add to the restrictions contained in this Section 11 to the extent necessary to enforce the intent of the parties and to provide the goodwill, Confidential Information, and other
business interests of the Company and its Subsidiaries with effective protection. In the event that such reformation of the restriction is acceptable to the Company, then the forfeiture and rescission (return of gain) remedies provided for in
subsection 11(h) above shall not apply. 

  

	 	j.	 The provisions of this Section 11 are not intended to override, supersede, reduce, modify or affect in any
manner any other non-competition or non-solicitation agreement between Grantee and the Company or any Subsidiary, and instead are intended to supplement any such
agreements. 

  

	 	12.	 Rights to Inventions. 

 

	 	a.	 “Intellectual Property” means all concepts and ideas; inventions, whether patentable or not;
discoveries; designs; processes; methods; formulas; software; names; trade secrets; know-how; and techniques; including improvements thereof; concerning any present or reasonably anticipated activities of the
Company or made or created with the use of Confidential Information or any equipment, supplies, or facilities of the Company. Grantee acknowledges that this section does not apply to intellectual property that was developed entirely on
Grantee’s own time without use of Company’s equipment, supplies, facilities, or Intellectual Property, and which does not relate to the present or reasonably activated activities of the Company, and which does not result from work Grantee
performs for the Company. By Grantee’s signature below, Grantee assigns and agrees to assign to the Company all rights to and title and interest in Intellectual Property made or conceived by Grantee, either solely or in collaboration with
others, or suggested by or resulting from any work performed by Grantee on behalf of Company during the course of Grantee’s performance under this Agreement and/or during any prior employment with the Company, in any capacity and whether or not
during working hours. All such Intellectual Property is a “work made for hire” and Grantee is compensated by Grantee’s salary unless regulated otherwise by applicable law and shall become and remain the exclusive property of the
Company and the Company’s successors and assigns. Grantee further agrees to inform the Company promptly and fully of all Intellectual Property by written reports, setting forth in detail the procedures employed and the results achieved. Grantee
agrees to submit such a written report promptly after completion of any studies or research projects 

	 	
undertaken on the Company’s behalf, whether or not in Employee’s opinion a given project has resulted in Intellectual Property. Grantee agrees to cooperate in confirming, protecting,
and obtaining legal protection of the Company’s ownership rights of the Intellectual Property in accordance with the terms of this provision and, on Company’s request, to properly execute or cause to be executed a document confirming
Grantee’s assignment to the Company and to do anything else necessary to enable Company to secure patent or other rights therefore in the United States and in foreign countries, all at no expense to Grantee and at no charge to Company. Grantee
agrees that the obligations pursuant to this provision are in effect during Grantee’s employment or engagement with the Company and for twelve (12) months after the end of Grantee’s employment or engagement, Intellectual Property made
or conceived by Grantee or for which Grantee files or causes to be filed a patent, copyright, or trademark application within one year after termination of employment or engagement with Company being presumed to have been made or conceived during
employment or engagement with Company. Grantee represents and warrants that there are no inventions or other Intellectual Property that Grantee invented or conceived before becoming employed or engaged by the Company or at any time prior to the
Effective Date to which Grantee, or any assignee of Grantee, now claims title and that are to be excluded from this Agreement. 

  

	 	b.	 Exception to Assignments. Grantee and Company understand that the provisions of this Restricted Stock Agreement
requiring assignment of inventions to the Company do not apply to any invention which qualifies fully for exclusion under the provisions of North Carolina General Statute 66-57.1 or other applicable state law.
In order to assist in the determination of which inventions qualify for such exclusion, Grantee will report to the Company promptly in writing, during and after the term of employment or engagement with the Company, all Inventions solely or jointly
conceived or developed or reduced to practice by Grantee during the period of employment or engagement with the Company, including those asserted by the Grantee to be nonassignable. 

13.    Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to
be an original, but all of which together will constitute one and the same Agreement. 
 14.    Governing law.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of North Carolina. 

15.    Additional Provisions. N/A. 

[Signatures on Following Page] 

 IN WITNESS WHEREOF, the Company has caused this Restricted Stock Agreement to be duly
executed under seal by an officer thereunto duly authorized, and Grantee has executed under seal this Restricted Stock Agreement, all effective as of the Effective Date. 
  

			
	 AVADIM TECHNOLOGIES INC.
  

By:
                                         
                    (SEAL)
	 	 GRANTEE:
  

                          
                                         
  (SEAL)

	Name:                                     
                                   	 	Name:                                     
                                     
	Title:                                    
                                      	 	Title (if applicable):

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