Document:

Exhibit
10.2

 

EXPION360
INC.

2021
INCENTIVE AWARD PLAN

 

ARTICLE
I. PURPOSE

 

The
Plan’s purpose is to enhance the Company’s
ability to attract, retain and motivate persons
who make (or are expected to make)
important contributions to the Company
by providing these individuals with equity ownership
opportunities.

 

ARTICLE
II. DEFINITIONS

 

As
used in the Plan,
the following words and phrases have the
meanings specified below, unless the context clearly
indicates otherwise:

 

2.1              
“Administrator” means the Board
or a Committee to the extent that the
Board’s powers or authority
under the Plan have been delegated
to such Committee. With reference to
the Board’s or a Committee’s powers
or authority under the Plan that have
been delegated to one or more
officers pursuant to Section 4.2, the term
“Administrator” shall refer to such officer(s) unless and until such delegation
has been revoked.

 

2.2              
“Applicable Law”
means any applicable law, including without limitation:
(a) provisions of the Code, the Securities
Act, the Exchange Act and any rules or regulations
thereunder; (b) corporate, securities, tax or other
laws, statutes, rules, requirements or regulations,
whether U.S. or non-U.S. federal, state
or local; and (c)
rules of any securities exchange or automated
quotation system on which the Shares are listed,
quoted or traded.

 

2.3              
“Award” means an Option award, Stock Appreciation Right award, Restricted Stock
award, Restricted Stock Unit award, Performance Bonus Award, Performance Stock Unit award, Dividend Equivalents award
or Other Stock or Cash Based Award
granted to a Participant under the Plan.

 

2.4              
“Award Agreement” means an agreement
evidencing an Award, which may be written
or electronic, that contains such terms
and conditions as the Administrator determines,
consistent with and subject to the terms
and conditions of the Plan.

 

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

 

2.6              
“Cause” shall have the meaning
ascribed to such term, or term of similar
effect, in any offer letter, employment, severance or
similar agreement, including any Award Agreement,
between the Participant and the Company or any Subsidiary; provided, that in the
absence of an offer
letter, employment, severance or similar agreement containing such definition,
“Cause” means, with respect to a Participant,
the occurrence of any of the following: (a)
an act of dishonesty made by the Participant
in connection with the Participant’s
responsibilities as a Service Provider; (b) the Participant’s
conviction of, or
plea of nolo
contendere to, a felony or any crime involving
fraud, embezzlement or any other act
of moral turpitude, or a material
violation of federal or state
law by the Participant that the Administrator reasonably determines has had or will
have a material detrimental effect on
the Company’s or any Subsidiary’s reputation
or business; (c) the Participant’s
gross misconduct; (d) the Participant’s willful and material
unauthorized use or disclosure of
any proprietary information or trade
secrets of the Company, any Subsidiary
or any other party to whom the Participant
owes an obligation of nondisclosure as
a result of the Participant’s relationship with
the Company or any Subsidiary; (e) the Participant’s
willful breach of any material obligations under any written
agreement, covenant, rule, procedure, policy or manual with or
of the Company or any Subsidiary; or
(f) the Participant’s continued substantial
failure to perform the Participant’s
duties as a Service Provider (other than as a result
of the Participant’s physical or mental
incapacity) after the Participant has received
a written demand for performance (which may be delivered
by electronic mail or other
means) that sets forth the factual basis for the determination that the Participant
has not substantially performed the Participant’s
duties and has failed to cure such non-performance
to the Administrator’s reasonable satisfaction within 10
days after receiving
such notice. For purposes
of this Section 2.6, no act or failure
to act shall be considered willful
unless it is done in bad faith
and without reasonable intent that the act or failure
to act was in
the best interest of the Company or required
by law. Any act, or failure
to act, based upon authority or instructions
given to the Participant pursuant to a direct
instruction from the Company’s chief executive officer or
based on the advice of counsel
for the Company will be conclusively presumed
to be done or omitted to be done by the
Participant in good faith and in the best interest
of the Company.

     

     

    

		2.7	“Change
                                            in
                                            Control”
                                            means any of the
                                            following:

 

(a)               
A transaction or series of transactions
(other than an offering of Common Stock
to the general public through a registration statement
filed with the Securities and Exchange Commission)
whereby any “person” or related
“group” of “persons” (as such terms are used
in Sections 13(d) and 14(d)(2) of the
Exchange Act) directly or indirectly acquires beneficial ownership (within the meaning
of Rules 13d-3 and 13d-5 under the
Exchange Act) of the Company’s securities possessing more than 50%
of the total combined voting power of
the Company’s securities outstanding immediately after such acquisition;
provided, however, that the following acquisitions shall not constitute a Change
in Control: (i) any acquisition by the Company
or any Subsidiary; (ii) any acquisition
by an employee benefit plan maintained by the Company
or any Subsidiary, (iii) any acquisition which
complies with Sections 2.7(c)(i), 2.7(c)(ii) and 2.7(c)(iii); or (iv)
in respect of an Award held
by a particular Participant, any acquisition
by the Participant or any group
of persons including the Participant (or any entity
controlled by the Participant or any group
of persons including the Participant);

 

 

Board;

		(b)	The
                                            Incumbent Directors cease for any reason
                                            to constitute a majority
                                            of the

 

(c)               
The consummation by the Company (whether directly
involving the Company or indirectly involving
the Company through one or more intermediaries)
of (x) a merger, consolidation, reorganization, or business
combination, (y) a sale or other
disposition of all or substantially all
of the Company’s assets in any single
transaction or series of related transactions
or (z) the acquisition of
assets or stock of another entity, in
each case other than a transaction:

(i) 
which results in the Company’s voting securities
outstanding immediately before the transaction continuing to represent
(either by remaining outstanding or by
being converted into voting securities of
the Company or the person that, as a
result of the
transaction, controls, directly or indirectly, the Company or owns,
directly or indirectly, all or substantially
all of the Company’s assets or otherwise
succeeds to the business of the Company
(the Company or such person, the “Successor
Entity”)) directly or indirectly, at least
a majority of the combined voting power
of the Successor Entity’s outstanding voting securities
immediately after the transaction;

 

(ii) 
after which no person
or group beneficially owns voting securities
representing 50% or more of
the combined voting power of the Successor
Entity; provided, however, that no person or group
shall be treated
for purposes of this Section 2.7(c)(ii) as beneficially
owning 50% or more of the combined voting power
of the Successor Entity solely as a result
of the voting power held in the Company
prior to the consummation of the transaction;
and

 

(iii) 
after which at least a majority of the
members of the board of directors
(or the analogous governing body) of the Successor
Entity were Board members at the time
of the Board’s approval of the execution
of the initial agreement providing for such transaction;
or

 

		(d)	The
                                            completion of
                                            a liquidation or dissolution
                                            of the Company.

 

Notwithstanding
the foregoing,
if a Change in Control constitutes a
payment event with respect to any Award
(or any portion of an Award) that provides
for the deferral of compensation
that is subject to Section 409A, to the extent
required to avoid the imposition of additional
taxes under Section 409A, the transaction or event
described in subsection (a), (b), (c) or (d)
of this Section 2.7 with
respect to such Award (or portion thereof) shall only constitute a Change in Control
for purposes of the payment timing of
such Award if such transaction also constitutes
a “change in control event,” as defined
in Treasury Regulation Section 1.409A-3(i)(5).

 

The
Administrator shall have full and final
authority, which shall be exercised in its sole
discretion, to determine conclusively whether a Change
in Control has occurred pursuant to the above
definition, the date of such Change in Control
and any incidental matters relating thereto; provided that any exercise
of authority in conjunction with
a determination of whether a Change
in Control is a “change in control event”
as defined in Treasury Regulation Section 1.409A-3(i)(5) shall be
consistent with such regulation.

 

2.8              
“Code” means the U.S. Internal
Revenue Code of 1986, as amended, and all regulations,
guidance, compliance programs and other interpretative
authority issued thereunder.

 

2.9              
“Committee” means one or more
committees or subcommittees of
the Board, which may include one
or more Directors or
executive officers of the Company, to
the extent permitted by Applicable Law. To
the extent required to comply with the provisions
of Rule 16b-3,
it is intended that each member of the
Committee will be, at the time the Committee
takes any action with respect to an
Award that is subject to Rule
16b-3, a “non-employee director” within the meaning
of Rule 16b-3; however, a Committee member’s
failure to qualify as a “non-employee
director” within the meaning of Rule
16b-3 will not invalidate any Award
granted by the Committee that is otherwise validly granted under the Plan.

     

     

    

 

		2.10	“Common
                                            Stock” means the Class A
                                            common stock of the Company.

 

		2.11	“Company”
                                            means Expion360 Inc., a
                                            Nevada corporation, or any successor.

 

2.12          
“Consultant” means any person, including
any adviser, engaged by the Company
or a Subsidiary to render services to such
entity if the consultant or
adviser: (i) renders bona fide services
to the Company or a Subsidiary; (ii) renders services
not in connection with the offer or sale
of securities in a capital-raising transaction
and does not directly or indirectly promote
or maintain a market for the Company’s
securities; and (iii) is a natural person.

 

2.13          
“Designated Beneficiary” means, if permitted
by the Company, the beneficiary or
beneficiaries the Participant designates, in a manner
the Company determines, to receive amounts due or exercise
the Participant’s rights if the Participant dies. Without a Participant’s
effective designation, “Designated Beneficiary” will mean the Participant’s
estate or legal heirs.

 

		2.14	“Director”
                                            means a Board
                                            member.

 

		2.15	“Disability”
                                            means a permanent
                                            and total disability under Section
                                            22(e)(3) of the
                                            Code.

 

2.16          
“Dividend Equivalents” means a right
granted to a Participant to receive the equivalent
value (in cash or Shares) of dividends
paid on a specified number of Shares. Such
Dividend Equivalent shall be converted to cash
or additional Shares, or a combination
of cash and Shares,
by such formula and at such time
and subject to such limitations as may
be determined by the Administrator.

 

		2.17	“Effective
                                            Date” has the meaning set forth in
                                            Section 11.3.

 

		2.18	“Employee”
                                            means any employee of
                                            the Company or any of its
                                            Subsidiaries.

 

2.19          
“Equity Restructuring” means a
nonreciprocal transaction between the Company and
its stockholders, such as a stock dividend, stock
split (including a reverse stock split), spin-off or
recapitalization through a large, nonrecurring
cash dividend, that affects the number or kind
of Shares (or other Company securities)
or the share price of Common
Stock (or other Company securities) and causes
a change in the per share value of the
Common Stock underlying outstanding Awards.

 

2.20          
“Exchange Act” means the U.S. Securities
Exchange Act of 1934, as amended, and all regulations,
guidance and other interpretative authority issued thereunder.

 

		2.21	“Fair
                                            Market Value”
                                            means, as of
                                            any date, the value
                                            of a Share determined as follows:

(i) 
if the Common Stock is listed on any established
stock exchange, the value of a Share will be
the closing sales price for a Share
as quoted on such exchange for such date,
or if no sale occurred on such date, the last
day preceding such date during which
a sale occurred, as reported in The Wall
Street Journal or another source the Administrator
deems reliable; (ii) if the Common Stock is
not listed on an established stock exchange but is quoted on a national market or
other quotation system, the value of a Share
will be the closing sales price for a Share
on such date, or if no sales occurred on such date, then on the last date preceding such date during which a sale occurred, as reported
in The Wall Street Journal or another source the Administrator deems reliable; or (iii)
if the Common Stock is not listed on
any established stock exchange or quoted on
a national market or
other quotation system, the value established
by the Administrator in its sole discretion. Notwithstanding the foregoing, with respect to any Award granted after the effectiveness
of the Company’s registration statement relating to its initial public offering but prior to the Public Trading Date, the Fair
Market Value means the initial public offering price of a Share as set forth in the Company’s final prospectus relating to its
initial public offering filed with the Securities and Exchange Commission.

 

2.22          
“Good Reason” shall have the
meaning ascribed to such term, or term of similar
effect, in any offer letter, employment, severance
or similar agreement, including any Award Agreement,
between the Participant and the Company or any Subsidiary;
provided, that in the absence of an offer
letter, employment, severance or similar agreement containing such definition,
Good Reason means the occurrence of one or more
of the following without the Participant’s consent: (i) a material
reduction in the Participant’s base compensation, unless such diminution applies
to all similarly situated employees, or

(ii) 
a relocation of the
principal place at which the Participant must
perform services by more than 50 miles, unless
such relocation is set forth in an
offer letter, employment agreement or similar agreement entered into between Participant
and the Company prior to a Change in
Control, or otherwise agreed by the Company
(or any Subsidiary) and the Participant. In
order to establish Good Reason, the Participant must provide the Administrator with notice
of the event giving rise to Good Reason within
30 days of the occurrence of
such event, the event shall remain uncured 30 days
thereafter and the Participant must actually terminate services within 30 days following
the end of such cure period.

 

     

     

    

2.23          
“Greater Than 10% Stockholder”
means an individual then owning (within the
meaning of Section 424(d) of the Code) more
than 10% of the total combined voting power
of all classes of stock
of the Company or any parent corporation
or subsidiary corporation of the Company, as
determined in accordance with Section 424(e) and (f)
of the Code, respectively.

 

2.24          
“Incentive Stock Option” means an Option
that meets the requirements to qualify as an “incentive
stock option” as defined in Section 422 of the
Code.

 

2.25          
“Incumbent Directors” means, for any period
of 12 consecutive months, individuals who, at the
beginning of such period, constitute the Board together with any new Director(s)
(other than a Director designated by a person
who shall have entered into an agreement with the
Company to effect a transaction described
in clause (a) or (c)
of the Change in Control
definition) whose election or nomination for election to the
Board was approved by a vote of at least
a majority (either by a specific vote or by
approval of the proxy statement of the
Company in which such person is named
as a nominee for Director without objection
to such nomination) of the
Directors then still in office who either were Directors at the beginning of
the 12-month period or whose
election or nomination for election
was previously so approved.
No individual initially elected or nominated as a director
of the Company as a result of an
actual or threatened election contest with respect
to Directors or as a result of
any other actual or threatened solicitation of proxies by or on behalf of any person other
than the Board shall be an Incumbent Director.

 

		2.26	“Non-Employee
                                            Director” means a
                                            Director who is not
                                            an Employee.

 

		2.27	“Nonqualified
                                            Stock Option”
                                            means
                                            an Option
                                            that is not an Incentive Stock Option.

 

2.28          
“Option” means a right granted
under Article VI to purchase a specified number
of Shares at a specified
price per Share during a specified time period.
An Option may be either an Incentive
Stock Option or a Nonqualified Stock
Option.

 

2.29 
“Other Stock or Cash Based Awards”
means cash awards, awards of Shares, and
other awards valued wholly or partially by
referring to, or are otherwise based on, Shares
or other property.

 

2.30          
“Overall Share Limit”
means the sum of (i)
10% of the fully diluted shares of all
classes of the Company’s common stock outstanding
immediately following the Public Trading Date plus (ii) any Shares
that are subject to Awards that become available for issuance
under the Plan pursuant to Article V
plus (iv) an increase commencing on January
1, 2022 and continuing annually on the anniversary
thereof through (and including) January 1, 2031, equal to the lesser of (A)
5% of the aggregate number of shares
of all classes of the Company’s
common stock outstanding on the
last day of the immediately preceding calendar year and (B)
such smaller number of Shares
as determined by the Board or the Committee.

 

		2.31	“Participant”
                                            means a Service
                                            Provider who has been granted an Award.

 

		2.32	“Performance
                                            Bonus Award” has
                                            the meaning set forth
                                            in Section 8.3.

 

2.33          
“Performance Stock Unit”
means a right granted to a Participant
pursuant to Section 8.1 and subject
to Section 8.2, to receive cash or Shares,
the payment of which is contingent upon
achieving certain performance goals or other
performance-based targets established by the Administrator.

 

2.34          
“Permitted Transferee” means, with respect to a Participant,
any “family member” of the Participant,
as defined in the General Instructions to Form S-8
Registration Statement under the Securities Act (or any successor
form thereto), or any other transferee specifically
approved by the Administrator after taking into account Applicable Law.

 

		2.35	“Plan”
                                            means this 2021 Incentive Award Plan.

 

2.36          
“Public Trading Date” means the first date upon which
Common Stock is listed (or approved for listing)
upon notice of issuance
on any securities exchange or designated
(or approved for designation) upon notice of issuance as a national
market security on an interdealer
quotation system.

 

2.37          
“Restricted Stock” means Shares awarded to a Participant
under Article VII, subject to certain vesting
conditions and other restrictions.

     

     

    

2.38          
 “Restricted Stock Unit”
means an unfunded, unsecured right to
receive, on the applicable settlement date,
one Share or an amount in cash
or other consideration determined by the Administrator
to be equal to the Fair Market Value
as of such settlement date, subject
to certain vesting conditions and other restrictions.

 

2.39          
“Rule 16b-3” means Rule 16b-3
promulgated under the Exchange Act, including
any amendments thereto.

 

2.40          
“Section 409A” means Section 409A
of the Code and the
regulations promulgated thereunder by the United States Treasury Department, as amended
or as may be amended
from time to time.

 

2.41          
“Securities Act” means the U.S.
Securities Act of 1933, as amended, and all
regulations, guidance and other interpretative authority issued thereunder.

 

		2.42	“Service
                                            Provider” means an Employee, Consultant or
                                            Director.

 

		2.43	“Shares”
                                            means shares of
                                            Common Stock.

 

2.44          
“Stock Appreciation Right” or “SAR”
means a right granted under Article VI to receive
a payment equal to the excess of the
Fair Market Value of a specified
number of Shares on the
date the right is exercised over the exercise
price set forth in the applicable Award
Agreement.

 

2.45          
“Subsidiary” means any entity (other
than the Company), whether U.S. or non-U.S., in an
unbroken chain of entities beginning with the Company
if each of the entities other than the
last entity in the unbroken chain beneficially owns,
at the time of the determination, securities
or interests representing at least
50% of the total combined voting power
of all classes of securities
or interests in one of
the other entities in such chain.

 

2.46          
“Substitute Awards” means Awards granted or
Shares issued by the Company in assumption
of, or in substitution or exchange
for, awards previously granted, or the right
or obligation to make
future awards, in each case by a company
or other entity acquired by the Company
or any Subsidiary or with which the Company
or any Subsidiary combines.

 

2.47          
“Tax-Related Items” means any and all
U.S. and non-U.S. federal, state and/or local taxes (including, without limitation, income tax, social
insurance, payroll tax, fringe benefits
tax, payment on account, employment tax, stamp
tax or other tax-related items related to Participant’s
participation in the Plan and legally applicable or deemed
applicable to Participant and any employer
tax liability which has been transferred to a Participant)
for which a Participant is liable in connection
with Awards and/or Shares.

 

		2.48	“Termination
                                            of
                                            Service”
                                            means:

 

(a)               
As to a Consultant, the time
when the engagement of a Participant as a Consultant
to the Company or a Subsidiary is terminated
for any reason, with or without Cause, including,
without limitation, by resignation, discharge, death or retirement,
but excluding terminations where the Consultant simultaneously commences or remains
in employment or service with the Company
or any Subsidiary.

 

(b)               
As to a Non-Employee Director,
the time when a Participant who is a Non- Employee
Director ceases to be a Director for any reason, including, without limitation, a
termination by resignation, failure to be elected,
death or retirement, but excluding terminations
where the Participant simultaneously commences or remains
in employment or service with the Company
or any Subsidiary.

 

(c)            
As to an Employee, the time
when the employee-employer relationship between a Participant and the Company
or any Subsidiary is terminated for
any reason, including, without limitation, a termination
by resignation, discharge, death, disability or retirement;
but excluding terminations where the Participant simultaneously commences or remains
in employment or service with the Company
or any Subsidiary.

 

The
Company, in its sole discretion, shall determine the
effect of all matters and questions
relating to any Termination of Service,
including, without limitation, whether a Termination of
Service has occurred, whether a Termination
of Service resulted from a discharge
for Cause and all questions of
whether particular leaves of absence
constitute a Termination of Service.
For purposes of the Plan, a Participant’s
employee-employer relationship or consultancy relationship shall be deemed
to be terminated in the event
that the Subsidiary employing or contracting
with such Participant ceases to remain
a Subsidiary following any merger, sale of
stock or other corporate transaction or event
(including, without limitation, a spin-off),
even though the Participant may subsequently
continue to perform services for that entity.

 

     

     

    

ARTICLE
III. ELIGIBILITY

 

Service
Providers are eligible to be granted
Awards under the Plan, subject to the limitations
described herein. No Service Provider shall have any right to be granted an Award pursuant
to the Plan and neither the Company
nor the Administrator is obligated to
treat Service Providers, Participants or any other
persons uniformly.

 

ARTICLE
IV. 

ADMINISTRATION
AND DELEGATION

 

4.1              
Administration.

 

(a)               
The Plan is administered by the Administrator. The
Administrator has authority to determine which Service
Providers receive Awards, grant Awards and set
Award terms and conditions,
subject to the conditions and limitations in the
Plan. The Administrator also has the authority to take all actions
and make
all determinations under the Plan, to interpret the Plan and Award Agreements and to adopt,
amend and repeal Plan
administrative rules, guidelines and practices
as it deems advisable. The Administrator
may correct defects and ambiguities,
supply omissions, reconcile inconsistencies in the Plan or any Award
and make all other determinations that it
deems necessary or appropriate
to administer the Plan and any Awards.
The Administrator (and each member thereof) is entitled to, in
good faith, rely upon any report or other information
furnished to the Administrator or member thereof
by any officer or other Employee, 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. The Administrator’s
determinations under the Plan are in its
sole discretion and will be final, binding
and conclusive on all persons having
or claiming any interest in the Plan or
any Award.

 

(b)               
Without limiting the foregoing, the Administrator
has the exclusive power, authority and sole discretion to: (i)
designate Participants; (ii) determine the type or types of
Awards to be granted to each
Participant; (iii) determine the number of Awards
to be granted and the number
of Shares to which an Award
will relate; (iv) subject to the limitations in the
Plan, determine the terms and conditions of
any Award and related
Award Agreement, including, but not limited to, the
exercise price, grant price, purchase price, any performance criteria, any restrictions
or limitations on the
Award, any schedule for vesting,
lapse of forfeiture restrictions or restrictions on the exercisability
of an Award, and accelerations, waivers
or amendments thereof; (v) determine whether, to what
extent, and under what circumstances
an Award may be settled in, or the exercise
price of an Award may be paid
in cash, Shares, or other property, or an Award
may be canceled, forfeited, or surrendered;
and (vi) make all other decisions and determinations
that may be required pursuant to the Plan
or as the Administrator deems necessary
or advisable to administer the Plan.

 

4.2              
Delegation of Authority.To
the extent permitted by Applicable Law, the
Board or any Committee may
delegate any or all of its
powers under the Plan to one or
more Committees or officers of
the Company or any of its Subsidiaries; provided,
however, that in no event shall an officer of the Company
or any of its Subsidiaries be delegated the
authority to grant Awards to, or
amend Awards held by,
the following individuals: (a) individuals who are subject to Section
16 of the Exchange Act, or

(b)
officers of the Company
or any of its Subsidiaries or Directors
to whom authority to grant or
amend Awards has been delegated hereunder. Any delegation hereunder shall be subject
to the restrictions and limits that the Board
or Committee specifies at the time of
such delegation or that are otherwise
included in the applicable organizational documents, and the
Board or Committee, as applicable,
may at any time rescind the authority
so delegated or appoint
a new delegatee. At all
times, the delegatee appointed under this Section 4.2 shall serve in such
capacity at the pleasure of the Board
or the Committee, as applicable,
and the Board or the Committee may
abolish any committee at any time
and re-vest in itself any previously
delegated authority. Further, regardless of any
delegation, the Board or a Committee may,
in its discretion, exercise any and all rights
and duties as the Administrator under the
Plan delegated thereby, except with respect to Awards
that are required to be determined in
the sole discretion of the Board or
Committee under the rules of any securities
exchange or automated quotation system on which
the Shares are listed, quoted or traded.

     

     

    

ARTICLE
V.

STOCK
AVAILABLE FOR AWARDS

 

5.1              
Number of Shares.Subject
to adjustment under Article IX and the
terms of this Article V, Awards
may be made under the
Plan covering up to the Overall Share Limit. Shares issued or
delivered under the Plan may consist
of authorized but unissued Shares, Shares purchased
on the open market or treasury
Shares.

 

		5.2	Share
                                            Recycling.

 

(a)                 
If all or any part of an Award expires,
lapses or is terminated, converted into
an award in respect of shares
of another entity in connection
with a spin-off or other similar event, exchanged
or settled for cash, surrendered, repurchased,
canceled without having been fully exercised or forfeited,
in any case, in a manner that results in the Company
acquiring Shares covered by the Award at 
a price not greater than the price (as adjusted
to reflect any Equity Restructuring) paid by
the Participant for such Shares or
not issuing any Shares covered by the
Award, the unused Shares covered by the Award
will, as applicable, become or again
be available as Common
Stock for Awards under the Plan.
The payment of Dividend Equivalents in cash
in conjunction with any outstanding Awards
shall not count against the Overall Share Limit.

 

(b) 
In addition, the following shall be
available as Shares for future grants of
Awards: (i) Shares tendered by a Participant
or withheld by the
Company in payment of the exercise price
of an Option; (ii) Shares tendered by the Participant
or withheld by the Company to satisfy
any tax withholding obligation with respect to an Award; and (iii)
Shares subject to a Stock Appreciation Right that are not issued
in connection with the stock settlement of the Stock Appreciation Right on exercise
thereof. Notwithstanding the provisions of this
Section 5.2(b), no Shares may again
be optioned, granted or awarded pursuant
to an Incentive Stock Option if such action would
cause such Option to fail to qualify
as an incentive stock option under Section
422 of the Code.

 

5.3              
Incentive Stock Option Limitations.Notwithstanding
anything to the contrary herein, no more
than 1,000,000 Shares (as adjusted to reflect any
Equity Restructuring) may be issued pursuant
to the exercise of Incentive Stock Options.

 

5.4              
Substitute Awards.In connection
with an entity’s merger or consolidation
with the Company or any Subsidiary or
the Company’s or any Subsidiary’s acquisition
of an entity’s property or stock, the
Administrator may grant Substitute Awards in respect
of any options or other
stock or stock- based awards granted
before such merger or consolidation
by such entity or its affiliate. Substitute Awards may
be granted on such terms and conditions
as the Administrator deems appropriate,
notwithstanding limitations on Awards in the Plan.
Substitute Awards will not count
against the Overall Share Limit (nor shall Shares
subject to a Substitute Award be added to the Shares
available for Awards under the Plan
as provided under Section 5.2 above),
except that Shares acquired by exercise of
substitute Incentive Stock Options will count against
the maximum number of Shares that may
be issued pursuant to the exercise of
Incentive Stock Options under the Plan. Additionally,
in the event that a company acquired by the Company
or any Subsidiary or with which the Company
or any Subsidiary combines has shares available
under a pre-existing
plan approved by stockholders and not adopted
in contemplation of such
acquisition or combination, the shares available
for grant pursuant to the terms of such pre-existing
plan (as appropriately adjusted to reflect the transaction)
may be used for Awards under the
Plan and shall not count against the Overall Share Limit (and Shares subject to such
Awards may again become available
for Awards under the Plan as provided
under Section 5.2 above); provided that Awards
using such available shares shall not
be made after the date awards or grants could
have been made under the terms
of the pre- existing plan, absent the
acquisition or combination,
and shall only be made to individuals who were
not Service Providers prior to such acquisition or combination.

 

5.5              
Non-Employee Director Award Limit.Notwithstanding any provision
to the contrary in the Plan or in
any policy of the Company regarding non-employee
director compensation, the sum of the grant
date fair value (determined as of the grant date in accordance with Financial Accounting
Standards Board Accounting Standards Codification Topic 718, or any successor
thereto) of all equity-based Awards and the maximum
amount that may become payable pursuant
to all cash-based Awards that may be granted
to a Service Provider as compensation
for services as a Non-Employee Director during
any calendar year shall not exceed $1,000,000.

 

ARTICLE
VI.

STOCK
OPTIONS AND
STOCK APPRECIATION
RIGHTS

 

6.1              
General.The Administrator may
grant Options or Stock Appreciation Rights
to one or more Service Providers, subject to such terms
and conditions not inconsistent with
the Plan as the Administrator shall determine.
The Administrator will determine the number of Shares
covered by each Option and Stock Appreciation Right, the exercise price of each
Option and Stock Appreciation Right and the conditions
and limitations applicable to the exercise
of each Option and Stock Appreciation Right.
A Stock Appreciation Right will entitle
the Participant (or other person entitled to exercise
the Stock Appreciation Right) to receive from the Company
upon exercise of the
exercisable portion of the Stock Appreciation Right an amount
determined by multiplying (x) the excess,
if any, of the Fair Market Value of one Share
on the date of exercise over the exercise
price per Share of the Stock Appreciation Right
by

(y) 
the number of Shares with respect to which the Stock
Appreciation Right is exercised, subject to any limitations
of the Plan or that
the Administrator may impose, and payable
in cash, Shares valued at Fair Market
Value on the date of exercise
or a combination of the two as the Administrator
may determine or provide
in the Award Agreement.

 

6.2              
Exercise Price. The Administrator will
establish each Option’s and Stock Appreciation
Right’s exercise price and specify the exercise
price in the Award Agreement. Subject
to Section 6.6, the exercise price will not
be less than 100% of
the Fair Market Value on the grant date
of the Option or Stock Appreciation Right.
Notwithstanding the foregoing, in the case
of an Option or Stock
Appreciation Right that is a Substitute Award, the exercise price per share of the
Shares subject to such Option or
Stock Appreciation Right, as applicable, may
be less than the Fair Market Value per share
on the date of grant;
provided that the exercise price of any Substitute Award
shall be determined
in accordance with the applicable requirements
of Sections 424 and
409A of the Code.

     

     

    

6.3              
 Duration of Options.Subject
to Section 6.6, each Option or Stock
Appreciation Right will be exercisable at such times and as specified
in the Award Agreement, provided that the term
of an Option or Stock Appreciation Right will not exceed ten
years; provided, further, that, unless otherwise determined by the Administrator
or specified in the Award Agreement,
(a) no portion of an Option or Stock Appreciation
Right which is unexercisable at a Participant’s
Termination of Service shall thereafter become
exercisable and (b) the portion of an
Option or Stock Appreciation Right that
is unexercisable at a Participant’s Termination
of Service shall automatically expire
on the date of
such Termination of Service.
In addition, in no event
shall an Option or Stock Appreciation Right granted
to an Employee who is a non-exempt employee
for purposes of overtime
pay under the U.S. Fair Labor Standards Act of
1938 be exercisable earlier than six months
after its date of grant.
Notwithstanding the foregoing, if the Participant, prior to the end of the
term of an Option or Stock Appreciation Right,
commits an act of Cause
(as determined by the Administrator),
or violates any non-competition, non-solicitation
or confidentiality provisions of
any employment contract, confidentiality and nondisclosure
agreement or other agreement between the Participant and the Company
or any of its Subsidiaries, the right to exercise the Option
or Stock Appreciation Right, as applicable,
may be terminated by the Company and
the Company may suspend the Participant’s right
to exercise the Option or Stock
Appreciation Right when it reasonably
believes that the Participant may have
participated in any such act or
violation.

 

6.4              
Exercise.Options and Stock Appreciation
Rights may be exercised by delivering
to the Company (or such other person
or entity designated by the Administrator)
a notice of exercise,
in a form and manner the Company approves (which may
be written, electronic or telephonic
and may contain representations and warranties
deemed advisable by the
Administrator), signed or authenticated by the person
authorized to exercise the Option or Stock Appreciation
Right, together with, as applicable, (a) payment
in full of the
exercise price for the number of Shares for
which the Option is exercised in a manner specified
in Section 6.5 and (b) satisfaction
in full of any withholding
obligation for Tax-Related Items in a manner specified in Section
10.5. The Administrator may, in its discretion,
limit exercise with respect to fractional Shares and require
that any partial exercise of an Option
or Stock Appreciation Right be with
respect to a minimum number of Shares.

 

6.5              
Payment Upon Exercise.The Administrator
shall determine the methods by which payment of the exercise
price of an Option shall be made, including,
without limitation:

 

(a)               
Cash, check or wire transfer of immediately
available funds; provided that the Company may limit the use
of one of the foregoing methods if one or
more of the methods below is permitted;

 

(b)                If
there is a public market for
Shares at the time of exercise,
unless the Company otherwise determines, (A) delivery (including electronically
or telephonically to the extent permitted
by the Company) of a notice that the Participant
has placed a market sell order with
a broker acceptable to the Company with respect
to Shares then issuable upon exercise of the
Option and that the broker has been directed to deliver promptly to the Company
funds sufficient to pay the exercise
price, or (B) the Participant’s
delivery to the Company of a copy of irrevocable
and unconditional instructions to a broker acceptable to the Company to deliver
promptly to the Company an amount
sufficient to pay the exercise price
by cash, wire
transfer of immediately available funds or check; provided that such amount is paid
to the Company at such time
as may be required by the Company;

 

(c)               
To the extent permitted by the Administrator, delivery
(either by actual delivery or attestation)
of Shares owned by the Participant valued
at their Fair Market Value on the
date of delivery;

 

(d)               
To the extent permitted by the Administrator, surrendering
Shares then issuable upon the Option’s exercise valued at their Fair Market
Value on the exercise date;

 

(e)               
To the extent permitted by the Administrator, delivery
of a promissory note or any other lawful
consideration; or

 

 

payment
forms.

		(f)	To
                                            the extent permitted by the
                                            Administrator, any combination of the
                                            above

 

6.6              
Additional Terms of Incentive Stock
Options.The Administrator
may grant Incentive Stock Options
only to employees of the Company, any
of its present or future parent or subsidiary
corporations, as defined in Sections 424(e) or (f)
of the Code, respectively, and any other
entities the employees of which
are eligible to receive Incentive Stock Options
under the Code. If an Incentive Stock
Option is granted to a Greater Than 10% Stockholder,
the exercise price will not be
less than 110% of the Fair Market Value
on the Option’s grant date, and the term
of the Option will not exceed five years. All Incentive Stock Options
(and Award Agreements related thereto) will be subject
to and construed consistently with Section
422 of the Code. By accepting an Incentive
Stock Option, the Participant agrees to give
prompt notice to the Company of dispositions
or other transfers (other than in connection
with a Change in Control) of
Shares acquired under the Option made within the later of
(a) two years from the grant date of
the Option or (b) one year after the
transfer of such Shares to the Participant,
specifying the date of the disposition or other
transfer and the amount the Participant realized, in cash, other
property, assumption of indebtedness or other
consideration, in such disposition or other transfer. Neither the Company
nor the Administrator will be liable to a Participant,
or any other party, if an Incentive
Stock Option fails or ceases to qualify
as an “incentive stock option” under Section 422 of the
Code. Any Incentive Stock Option or portion
thereof that fails to qualify as an “incentive
stock option” under Section 422 of the Code
for any reason, including becoming exercisable with respect to Shares having a fair
market value exceeding the $100,000 limitation
under Treasury Regulation Section 1.422-4, will be a Nonqualified
Stock Option.

 

     

     

    

ARTICLE
VII.

RESTRICTED
STOCK;
RESTRICTED STOCK
UNITS

 

7.1              
General.The Administrator may
grant Restricted Stock, or the right to
purchase Restricted Stock, to any Service Provider,
subject to forfeiture or the
Company’s right to repurchase all or
part of the underlying Shares at their issue price or
other stated or formula
price from the Participant if conditions
the Administrator specifies in the Award Agreement
are not satisfied before the end of the applicable
restriction period or periods that the Administrator establishes for such Award.
In addition, the Administrator
may grant
Restricted Stock Units, which
may be subject to vesting
and forfeiture conditions during the applicable
restriction period or periods, as set forth
in an Award Agreement, to Service
Providers, which, for the avoidance of doubt,
to the extent determined necessary or appropriate
by the Administrator and set forth in
an Award Agreement, may permit
Restricted Stock Units to vest following
a Termination of Service.
The Administrator shall establish the purchase price, if any,
and form of payment for Restricted
Stock and Restricted Stock Units; provided, however, that if a purchase
price is charged, such purchase price shall be no less
than the par value, if any, of the Shares
to be purchased, unless otherwise permitted by Applicable
Law. In all cases, legal consideration shall
be required for each issuance of Restricted
Stock and Restricted Stock Units to the
extent required by Applicable Law. The Award Agreement
for each Award of Restricted Stock and Restricted
Stock Units shall set forth the terms and conditions
not inconsistent with the Plan as the Administrator shall determine.

 

		7.2	Restricted
                                            Stock.

 

(a)               
Stockholder Rights.Unless otherwise determined by the Administrator,
each Participant holding Shares of Restricted Stock will be entitled
to all the rights of a stockholder
with respect to such Shares, subject to the restrictions
in the Plan and the applicable Award Agreement,
including the right to receive all dividends and other
distributions paid or made with respect
to the Shares to the extent such dividends and other
distributions have a record date that is
on or after the date
on which such Participant becomes the record
holder of such Shares; provided, however, that
with respect to a share of Restricted
Stock subject to restrictions or vesting conditions,
except in connection with a spin-off
or other similar event as otherwise permitted under
Section 9.2, dividends which are paid to Company
stockholders prior to the removal of restrictions
and satisfaction of vesting
conditions shall only be paid to the Participant to the extent that the restrictions are
subsequently removed and the vesting conditions are subsequently
satisfied and the share of Restricted
Stock vests.

 

(b)               
Stock Certificates.he Company
may require that the Participant deposit
in escrow with the Company (or its
designee) any stock certificates issued in respect
of Shares of Restricted Stock, together with
a stock power endorsed in blank.

 

(c)               
Section 83(b) Election. If a Participant
makes an election under Section 83(b)
of the Code to be taxed with respect to the
Restricted Stock as of the date of transfer
of the Restricted Stock rather than as of the
date or dates upon which
such Participant would otherwise be taxable under Section 83(a) of the Code,
such Participant shall be required to deliver
a copy of such election to the Company
promptly after filing such election with the Internal Revenue Service along with
proof of the timely filing thereof.

 

7.3              
Restricted Stock Units. The Administrator may
provide that settlement of Restricted
Stock Units will occur upon
or as soon as reasonably practicable after
the Restricted Stock Units vest or will
instead be deferred, on
a mandatory basis or at
the Participant’s election, subject to compliance with Applicable Law. A Participant
holding Restricted Stock Units will have
only the rights of a general unsecured creditor
of the Company (solely to the extent of any
rights then applicable to Participant
with respect to such Restricted Stock Units) until delivery of Shares,
cash or other securities or
property is made as specified
in the applicable Award Agreement.

 

ARTICLE
VIII. 

OTHER
TYPES OF AWARDS

 

8.1              
General.The Administrator may
grant Performance Stock Unit awards, Performance Bonus Awards, Dividend Equivalents
or Other Stock or Cash Based Awards, to one
or more Service Providers, in such amounts
and subject to such terms and conditions
not inconsistent with the Plan as the Administrator shall determine.

 

8.2              
Performance Stock Unit Awards.Each Performance Stock Unit award shall be denominated
in a number of Shares
or in unit equivalents of
Shares or units of
value (including a dollar value of Shares)
and may be linked to any
one or more of performance or other
specific criteria, including service to the Company or Subsidiaries,
determined to be appropriate by the Administrator,
in each case on a specified date or
dates or over any period
or periods determined by the Administrator.
In making such determinations,
the Administrator may consider
(among such other factors as it deems
relevant in light of
the specific type of award)
the contributions, responsibilities and other compensation of the particular
Participant.

     

     

    

 

		8.3	Performance
                                            Bonus Awards.Each right to receive a
                                            bonus granted under this Section

8.3 
shall be denominated in the form of cash
(but may be payable in cash,
stock or a combination thereof) (a “Performance
Bonus Award”) and shall be payable
upon the attainment of performance
goals that are established by the Administrator and relate to one
or more of performance
or other specific criteria, including service to the Company
or Subsidiaries, in each case on
a specified date or
dates or over any period or
periods determined by the Administrator.

 

8.4              
Dividend Equivalents. If the Administrator
provides, an Award (other than an Option
or Stock Appreciation Right) may provide a Participant
with the right to receive Dividend Equivalents.
Dividend Equivalents may be paid currently
or credited to an account for the Participant, settled
in cash or Shares and subject
to the same restrictions on transferability
and forfeitability as the Award with respect
to which the Dividend Equivalents are granted and subject
to other terms and conditions
as set forth in the Award Agreement. Notwithstanding
anything to the contrary herein, Dividend Equivalents with respect to an Award
subject to vesting shall either (i) to the
extent permitted by Applicable Law, not
be paid or
credited or (ii)
be accumulated and subject to vesting to
the same extent as the related Award. All such
Dividend Equivalents shall be paid at such time
as the Administrator shall specify in the applicable
Award Agreement or as determined by the Administrator
in the event not specified in such Award Agreement.

 

8.5              
Other Stock or Cash Based Awards.Other
Stock or Cash Based Awards may be
granted to Participants, including Awards entitling Participants to receive cash
or Shares to be delivered in the
future and annual or other periodic or long-term
cash bonus awards (whether based on specified
performance criteria or otherwise), in each
case subject to any conditions and limitations
in the Plan. Such Other Stock or Cash Based
Awards will also be available as a payment
form in the settlement of other Awards, as
standalone payments and as payment in lieu
of compensation to which a Participant
is otherwise entitled, subject to compliance with Section 409A. Other Stock or Cash
Based Awards may be paid
in Shares, cash or other
property, as the Administrator determines. Subject to the provisions
of the Plan, the Administrator
will determine the terms
and conditions of each Other Stock or
Cash Based Award, including any purchase price, performance
goal(s), transfer restrictions, and vesting conditions, which will be set forth in
the applicable Award Agreement. Except in connection
with a spin-off or other similar event as otherwise
permitted under Article IX, dividends that are paid prior to vesting
of any Other Stock or Cash Based Award shall
only be paid to the applicable Participant
to the extent that the vesting conditions
are subsequently satisfied and the Other Stock or Cash
Based Award vests.

 

ARTICLE
IX.

ADJUSTMENTS
FOR CHANGES
IN COMMON STOCK AND CERTAIN OTHER EVENTS

 

9.1              
Equity Restructuring.In
connection with any Equity Restructuring, notwithstanding
anything to the contrary in this Article IX,
the Administrator will equitably adjust the terms of the
Plan and each outstanding Award as it
deems appropriate to reflect
the Equity Restructuring, which may include
(i) adjusting the number and type
of securities subject to each outstanding Award
or with respect to which Awards
may be granted under the Plan (including, but not
limited to, adjustments of the
limitations in Article V hereof on the maximum
number and kind of shares that may
be issued); (ii) adjusting the terms
and conditions of (including the grant
or exercise price), and the performance goals
or other criteria included in, outstanding
Awards; and (iii) granting new Awards
or making cash payments to Participants.
The adjustments provided under this Section 9.1 will be nondiscretionary
and final and binding on all interested parties,
including the affected Participant and the Company; provided that the Administrator will
determine whether an adjustment is equitable.

 

9.2              
Corporate Transactions.In the event
of any extraordinary dividend or other
distribution (whether in the form of cash, Common
Stock, other securities, or
other property), reorganization, merger, consolidation, split-up, spin off,
combination, amalgamation, repurchase, recapitalization, liquidation, dissolution,
or sale, transfer, exchange or
other disposition of all
or substantially all of the
assets of the Company, or sale or
exchange of Common Stock or other
securities of the Company, Change in Control,
issuance of warrants or other rights
to purchase Common Stock or other
securities of the Company, other similar corporate transaction or
event, other unusual or nonrecurring
transaction or event affecting the Company
or its financial statements or any change
in any Applicable Law or accounting
principles, the Administrator, on such terms
and conditions as it deems appropriate, either
by the terms of the Award or by action
taken prior to the occurrence of such transaction
or event (except that action to give
effect to a change in Applicable
Law or accounting principles may be made
within a reasonable period of time after
such change) and either automatically or upon the
Participant’s request, is hereby authorized to take
any one or more of the following actions whenever
the Administrator determines that such action is appropriate in order to (x) prevent
dilution or enlargement of the
benefits or potential benefits intended by the Company
to be made available under the Plan or
with respect to any Award granted or issued
under the Plan, (y) to facilitate such
transaction or event
or (z) give effect
to such changes in Applicable Law or
accounting principles:

 

(a)               
To provide for the cancellation of
any such Award in exchange for either
an amount of cash or
other property with a value equal to
the amount that could have been obtained upon
the exercise
or settlement
of the vested portion of such Award or
realization of the Participant’s rights under
the vested portion of such
Award, as applicable, in each case as of the date
of such cancellation; provided that, if the
amount that could have been obtained upon the exercise
or settlement of
the vested portion of such Award or realization
of the Participant’s rights, in
any case, is equal to or less than zero,
then the Award may be terminated without payment;

     

     

    

 

(b)               
To provide that such Award shall
vest and, to the extent applicable, be
exercisable as to all Shares (or other
property) covered thereby, notwithstanding anything to the contrary in the
Plan or the provisions of such
Award;

 

(c)               
To provide that such Award be assumed
by the successor or survivor
corporation or entity, or a parent or
subsidiary thereof, or shall
be substituted for by awards covering
the stock of the successor or survivor
corporation or entity, or a parent
or subsidiary thereof, with appropriate adjustments as to the number
and kind of shares
and applicable exercise or purchase price,
in all cases, as determined by the Administrator;

 

(d)               
To make adjustments in the number and type
of Shares (or other
securities or property) subject to outstanding
Awards or with respect to which
Awards may be granted under the Plan (including,
but not limited to, adjustments of the limitations
in Article V hereof on the maximum
number and kind of Shares which may
be issued) or in
the terms and conditions of
(including the grant or exercise
price), and the criteria included in, outstanding
Awards;

 

(e)               
To replace such Award with other
rights or property selected by the
Administrator; or

 

(f)                
To provide that the Award will terminate
and cannot vest, be exercised
or become payable after the applicable event.

 

		9.3	Change
                                            in
                                            Control.

 

(a)               
Notwithstanding any other provision of the
Plan, in the event of a Change
in Control, unless the Administrator elects to (i)
terminate an Award in exchange for cash,
rights or property, or (ii) cause an
Award to become fully exercisable
and no longer subject to any forfeiture restrictions
prior to the consummation of a Change in Control,
pursuant to Section 9.2, (A) such
Award (other than any portion subject to performance-based
vesting) shall continue in effect or be assumed
or an equivalent Award substituted
by the successor corporation or a parent
or subsidiary of the successor corporation
and (B) the portion of such Award
subject to performance-based vesting
shall be subject to the terms and conditions
of the applicable Award Agreement and,
in the absence of applicable
terms and conditions, the Administrator’s
discretion.

 

(b)               
In the event that the successor
corporation in a Change in Control refuses
to assume or substitute for an Award
(other than any portion subject to performance-based vesting, which shall be handled
as specified in the individual Award
Agreement or as otherwise provided by
the Administrator), the Administrator shall cause
such Award to become fully vested and,
if applicable, exercisable
immediately prior to the consummation
of such transaction and all forfeiture restrictions
on such Award to lapse and, to the extent
unexercised upon the consummation of such transaction,
to terminate in exchange for cash, rights or
other property. The Administrator shall notify the Participant
of any Award that becomes exercisable pursuant
to the preceding sentence that such Award shall be fully
exercisable for a period of time as determined
by the Administrator from the date of
such notice (which shall be 15 days if no period
is determined by the Administrator), contingent
upon the occurrence of the
Change in Control, and such Award shall terminate
upon the consummation of the Change
in Control in accordance with the preceding sentence.

 

(c)               
For the purposes of this
Section 9.3, an Award shall be considered
assumed if, following the Change in Control,
the Award confers the right to purchase
or receive, for each Share subject to
the Award immediately prior to the Change
in Control, the consideration (whether stock, cash, or other
securities or property) received in the Change
in Control by holders of Common Stock
for each Share held on the effective date of
the transaction (and if holders were offered
a choice of consideration, the type
of consideration chosen by the holders
of a majority of the outstanding Shares); provided,
however, that if such consideration received in the Change
in Control was not solely common stock of the
successor corporation or its parent, the
Administrator may, with the consent
of the successor corporation, provide for the consideration
to be received upon the exercise of
the Award, for each Share subject to an Award,
to be solely common stock of the successor corporation
or its parent equal in fair market
value to the per-share consideration received
by holders of Common Stock in the Change
in Control.

 

9.4              
Administrative Stand Still.In
the event of any pending stock dividend,
stock split, combination or exchange of
shares, merger, consolidation or other
distribution (other than normal cash dividends)
of Company assets to stockholders,
or any other extraordinary transaction or
change affecting the Shares or the share
price of Common Stock (including
any Equity Restructuring or any securities
offering or other similar transaction) or
for reasons of administrative
convenience or to facilitate compliance with any Applicable
Law, the Administrator may refuse to permit
the exercise or settlement of one or more
Awards for such period
of time as the Company may determine
to be reasonably appropriate under the circumstances.

 

9.5              
General.Except as expressly provided in
the Plan or the Administrator’s action under
the Plan, no Participant will have
any rights due to any subdivision or
consolidation of Shares of
any class, dividend payment, increase or decrease
in the number of Shares of any class
or dissolution, liquidation, merger, or consolidation
of the Company or other
corporation. Except as expressly provided with respect
to an Equity Restructuring under Section
9.1 above or the Administrator’s action
under the Plan, no issuance
by the Company of Shares of
any class, or securities convertible
into Shares of any class,
will affect, and no adjustment will be made
regarding, the number of Shares subject
to an Award or the Award’s grant price
or exercise price. The existence
of the Plan, any Award Agreements and
the Awards granted hereunder will not affect
or restrict in any way
the Company’s right or power to
make or authorize (i) any adjustment,
recapitalization, reorganization or other change
in the Company’s capital structure or its business,
(ii) any merger, consolidation, spinoff, dissolution or
liquidation of the
Company or sale of Company
assets or (iii) any sale or issuance
of securities, including securities with rights superior to those
of the Shares or
securities convertible into or exchangeable
for Shares.

     

     

    

ARTICLE
X.

PROVISIONS
APPLICABLE TO AWARDS

 

10.1          
Transferability.

 

(aNo
Award may be sold, assigned, transferred, pledged
or otherwise encumbered, either voluntarily or by operation
of law, except by will
or the laws of descent and distribution,
unless and until such Award has been exercised
or the Shares underlying such Award
have been issued, and all restrictions applicable
to such Shares have lapsed.
During the life of a Participant,
Awards will be exercisable only by the Participant.
After the death of a Participant,
any exercisable portion of an Award may,
prior to the time when such portion becomes unexercisable
under the Plan or the applicable Award
Agreement, be exercised by the Participant’s
personal representative or by any person empowered to do so under
the deceased Participant’s will or under the then-Applicable
Law of descent and distribution.

References
to a Participant,
to the extent relevant in the context, will
include references to a transferee approved
by the Administrator.

 

(b)               
Notwithstanding Section 10.1(a), the Administrator, in its sole discretion, may
determine to permit a Participant
or a Permitted Transferee of such Participant
to transfer an Award other
than an Incentive Stock Option (unless such Incentive
Stock Option is intended to become a
Nonqualified Stock Option) to any one or more
Permitted Transferees of such Participant, subject to the following terms and conditions:
(i) an Award transferred to a Permitted Transferee
shall not be assignable or transferable
by the Permitted Transferee other than (A)
to another Permitted Transferee of the
applicable Participant or (B) by will or
the laws of descent
and distribution; (ii) an Award transferred
to a Permitted Transferee shall continue to be subject
to all the terms and conditions
of the Award as applicable
to the original Participant (other than the ability to further
transfer the Award to any person other than another
Permitted Transferee of the applicable Participant);
(iii) the Participant (or transferring Permitted Transferee) and the receiving Permitted
Transferee shall execute any and all documents requested by the Administrator,
including, without limitation, documents to (A) confirm the status
of the transferee as a Permitted Transferee,
(B) satisfy any requirements
for an exemption for the transfer under Applicable Law and (C)
evidence the transfer; and (iv) any
transfer of an Award to a Permitted
Transferee shall be without consideration, except as required
by Applicable Law. In addition, and
further notwithstanding Section 10.1(a), the Administrator, in its sole discretion, may
determine to permit a Participant to
transfer Incentive Stock Options to a trust
that constitutes a Permitted Transferee if, under
Section 671 of the Code and other Applicable
Law, the Participant is considered the
sole beneficial owner of the Incentive Stock
Option while it is held in the trust.

 

(c)               
Notwithstanding Section 10.1(a), if permitted by the Administrator,
a Participant may, in the manner
determined by the Administrator, designate a Designated
Beneficiary. A Designated Beneficiary, legal guardian, legal representative, or
other person claiming any rights pursuant
to the Plan is subject to all
terms and conditions of the Plan and
any Award Agreement applicable to the Participant
and any additional restrictions deemed necessary or appropriate
by the Administrator. If the Participant
is married or
a domestic partner in a domestic partnership
qualified under Applicable Law and resides in a community
property state, a designation of a person other
than the Participant’s spouse or
domestic partner, as applicable, as the
Participant’s Designated Beneficiary with respect to more than 50%
of the Participant’s
interest in the
Award shall not be effective without the prior
written or electronic consent of the Participant’s
spouse or domestic partner. Subject to the foregoing,
a beneficiary designation may be changed
or revoked by a Participant at any time;
provided that the change or revocation is delivered
in writing to the Administrator prior
to the Participant’s death.

 

10.2          
Documentation. Each Award will be evidenced
in an Award Agreement in such form
as the Administrator determines in its discretion.
Each Award may contain such terms and conditions
as are determined by the Administrator in its
sole discretion, to the extent not inconsistent with those set forth in
the Plan.

 

10.3          
Discretion.Except as the Plan otherwise
provides, each Award may be made alone
or in addition or in
relation to any other Award. The terms
of each Award to a Participant need not be
identical, and the Administrator need
not treat Participants or Awards (or
portions thereof) uniformly.

 

10.4          
Changes in Participant’s Status.
The Administrator will determine
how the disability, death, retirement, authorized leave of
absence or any other change or purported
change in a Participant’s Service Provider status affects an Award
and the extent to which, and the period during
which, the Participant, the Participant’s legal representative, conservator, guardian
or Designated Beneficiary may exercise rights
under the Award, if applicable. Except to the
extent otherwise required by Applicable Law or expressly
authorized by the Company, service credit shall be given
for vesting periods for any period the
Participant is on a leave of absence
in accordance with the Company’s written
policy on leaves of absence (or in the
absence of such policy that is applicable with
respect to such determination, no service credit
shall be given for vesting purposes for
any period the Participant is on
a leave of absence).

 

     

     

    

10.5          
Withholding.Each Participant must pay the
Company or a Subsidiary or other Participant’s
employing company, as applicable, or make
provision satisfactory to the Administrator
for payment of, any Tax-Related Items to be
withheld in connection with such Participant’s
Awards and/or Shares. At the Company’s
discretion and subject to any Company
insider trading policy (including black- out periods),
any withholding obligation for Tax-Related Items
may be satisfied by
(i) deducting an amount sufficient to
satisfy such withholding obligation from any
payment of any kind otherwise due to a Participant;
(ii) accepting a payment from the Participant
in cash, by wire transfer of immediately
available funds, or by check made payable to the order of the
Company or a Subsidiary, as applicable;

(iii)  accepting
the delivery of Shares, including Shares
delivered by attestation; (iv) retaining
Shares from an Award; (v) if there
is a public market for
Shares at the time the withholding
obligation for Tax-Related Items is to be satisfied,
selling Shares issued pursuant to an Award, either voluntarily by the Participant or mandatorily
by the Company; (vi) accepting delivery of a promissory
note or any other lawful consideration;
(vii) any other method of withholding
determined by the Company and, to the
extent required by Applicable Law or the
Plan, approved by the Administrator; and/or (viii) any combination
of the foregoing payment forms. The amount
withheld pursuant to any of the foregoing payment forms shall be determined
by the Company and may be up to, but no greater
than, the aggregate amount of such obligations
based on the maximum statutory withholding rates
in the applicable Participant’s jurisdiction(s) for all Tax-Related Items.
If any tax withholding obligation will
be satisfied under clause (v) of the
preceding paragraph, each Participant’s acceptance of an Award under the
Plan will constitute the
Participant’s authorization to the Company
and instruction and authorization to any brokerage
firm selected by the Company to effect the
sale to complete the transactions described
in clause (v).

 

10.6          
Amendment of Award; Repricing.he
Administrator may amend,
modify or terminate any outstanding Award,
including by substituting another Award of the same
or a different type, changing the exercise
or settlement date, and converting an
Incentive Stock Option to a Nonqualified Stock Option.
The Participant’s consent to such action will
be required unless (i) the action, taking
into account any related action, does not materially
and adversely affect the Participant’s
rights under the Award, or (ii)
the change is permitted under Article IX
or pursuant to Section 11.6. In
addition, the Administrator shall, without the approval
of the stockholders of the Company, have
the authority to

		(a)	amend
                                            any outstanding
                                            Option or Stock Appreciation Right to
                                            reduce its exercise price per Share or

		(b)	cancel
                                            any Option
                                            or Stock Appreciation Right
                                            in exchange for cash or
                                            another Award.

 

10.7          
Conditions on Delivery of Stock.The
Company will not be obligated to deliver
any Shares under the Plan or remove restrictions
from Shares previously delivered under the Plan until (i) all Award
conditions have been met
or removed to the Company’s satisfaction,
(ii) as determined by the Company, all
other legal matters regarding the issuance and delivery
of such Shares have been satisfied, including, without limitation, any applicable
securities laws and stock exchange or stock market rules
and regulations, (iii) any approvals from governmental
agencies that the Company determines are necessary or advisable
have been obtained, and (iv) the Participant has executed
and delivered to the Company such representations
or agreements as the Administrator deems
necessary or appropriate to satisfy Applicable
Law. The inability or impracticability of the Company
to obtain or maintain authority to issue
or sell any securities 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, and
shall constitute circumstances in which the
Administrator may determine
to amend or cancel Awards
pertaining to such Shares, with or
without consideration to the Participant.

 

10.8          
Acceleration.The Administrator may
at any time provide that any Award will
become immediately vested and fully
or partially exercisable, free of some
or all restrictions or conditions, or
otherwise fully or partially realizable.

 

ARTICLE
XI. MISCELLANEOUS

 

11.1          
No Right to Employment or Other
Status.No person will have any
claim or right to be granted
an Award, and the grant of an Award
will not be construed as giving a Participant
the right to commence or continue
employment or any other relationship with the Company
or a Subsidiary. The Company and its Subsidiaries
expressly reserve the right at any time
to dismiss or otherwise
terminate its relationship with a Participant free from any liability
or claim under the Plan or any
Award, except as expressly provided in an Award
Agreement or other written agreement between
the Participant and the Company or any Subsidiary.

     

     

    

11.2          
 No Rights as Stockholder; Certificates.
Subject to the Award Agreement,
no Participant or Designated Beneficiary
will have any rights as a stockholder
with respect to any Shares to be distributed under an Award
until becoming the record holder of such
Shares. Notwithstanding any other provision of the Plan,
unless the Administrator otherwise determines or Applicable
Law requires, the Company will not
be required to deliver to any Participant
certificates evidencing Shares issued in connection with any Award
and instead such Shares may
be recorded in the books of the
Company (or, as applicable, its transfer agent
or stock plan administrator). The Company may
place legends on any share certificate or book
entry to reference restrictions applicable to the Shares
(including, without limitation, restrictions applicable to Restricted
Stock).

 

11.3          
Effective Date. The Plan, as set
forth herein, was approved by the Board on November
15, 2021. The Plan will become effective on the date
prior to the Public Trading Date (the “Effective
Date”), provided that it is approved by the Company’s stockholders prior
to such date and occurring within 12 months
following the date the Board approved the Plan.
If the Plan is not approved by the Company’s
stockholders within the foregoing time frame, the Plan will
not become effective.
No Incentive Stock Option may be granted
pursuant to the Plan after the tenth anniversary
of the earlier of (i)
the date the Plan was approved by the
Board or (ii)
the date the Plan was approved by the Company’s
stockholders.

 

11.4          
Amendment of Plan.The
Board may amend,
suspend or terminate the Plan at any time
and from time to time; provided that (a)
no amendment requiring stockholder approval to
comply with Applicable Law shall be effective
unless approved by the stockholders, and (b) no
amendment, other than an increase to
the Overall Share Limit or pursuant to Article
IX or Section 11.6, may materially and
adversely affect any Award outstanding at the
time of such amendment without the affected
Participant’s consent. No Awards may be granted
under the Plan during any suspension period or after
Plan termination. Awards outstanding at the time of any
Plan suspension or termination will continue
to be governed by the Plan and the
Award Agreement, as each in effect before such suspension or
termination. The Board will obtain stockholder
approval of any Plan amendment to the
extent necessary to comply with Applicable
Law.

 

11.5          
Provisions for Non-U.S. Participants.The
Administrator may modify
Awards granted to Participants who are nationals
of a country other than the United States
or employed or residing
outside the United States, establish subplans or
procedures under the Plan or take any
other necessary or appropriate action to address
Applicable Law, including (a) differences
in laws, rules, regulations or customs
of such jurisdictions with respect to tax,
securities, currency, employee benefit or other matters,

(b)
listing and other requirements of any non-U.S.
securities exchange, and (c) any necessary
local governmental or regulatory exemptions
or approvals.

 

		11.6	Section
                                            409A.

 

(a)               
General.The Company intends that
all Awards be structured to comply
with, or be exempt from,
Section 409A, such that no
adverse tax consequences, interest, or penalties
under Section 409A apply. Notwithstanding anything
in the Plan or any Award Agreement to
the contrary, the Administrator may, without
a Participant’s consent, amend this Plan or Awards,
adopt policies
and procedures, or take
any other actions (including amendments, policies, procedures and retroactive
actions) as are necessary or appropriate to preserve
the intended tax treatment of Awards, including
any such actions intended to (A) exempt this Plan or
any Award from Section 409A, or
(B) comply with Section 409A, including regulations,
guidance, compliance programs and other interpretative
authority that may be issued after an
Award’s grant date. The Company makes
no representations or warranties
as to an Award’s tax treatment under Section
409A or otherwise. The Company will have
no obligation under this Section 11.6 or
otherwise to avoid the taxes,
penalties or interest under Section 409A with respect
to any Award and will have no liability
to any Participant or any
other person if any Award, compensation
or other benefits under the Plan are determined
to constitute noncompliant “nonqualified deferred compensation” subject to taxes,
penalties or interest under Section 409A.

 

(b)               
Separation from Service.If an Award
constitutes “nonqualified deferred compensation” under Section 409A, any payment
or settlement of such
Award upon a Participant’s Termination of
Service will, to the extent necessary
to avoid taxes under Section 409A, be made only
upon the Participant’s “separation from service” (within the meaning
of Section 409A), whether such “separation from service” occurs upon
or after the Participant’s Termination
of Service. For purposes of this Plan or any
Award Agreement relating to any such payments or
benefits, references to a “termination,”
“termination of employment” or like
terms means a “separation
from service.”

 

(c)               
Payments to Specified Employees.Notwithstanding
any contrary provision in the Plan or
any Award Agreement, any payment(s)
of “nonqualified deferred compensation”
required to be made under an Award to
a “specified employee” (as defined under
Section 409A and as the Administrator determines) due to such employee’s
“separation from service” will, to the extent necessary to avoid
taxes under Section 409A(a)(2)(B)(i) of the Code,
be delayed for the six-month period immediately
following such “separation from service” (or, if earlier, until the specified
employee’s death) and will instead be paid
(as set forth in the Award
Agreement) on the day immediately following
such

six-month
period or as
soon as administratively
practicable thereafter (without interest). Any payments of “nonqualified deferred
compensation” under such Award payable
more than six months following the Participant’s “separation from service”
will be paid at the time
or times the payments are otherwise scheduled
to be made.

 

     

     

    

(d)               
Separate Payments. If an Award
includes a “series of installment payments”
within the meaning of Section 1.409A-2(b)(2)(iii) of Section
409A, the Participant’s right to the series of installment
payments will be treated as a right
to a series of separate payments
and not as a right to a single
payment and, if an Award includes “dividend
equivalents” within the meaning of Section
1.409A- 3(e) of Section 409A, the Participant’s right to receive
the dividend equivalents will be treated
separately from the right to other amounts under the Award.

 

(e)                Change
in Control.Any payment due upon a Change in Control of the
Company will be paid only if such
Change in Control constitutes a “change
in ownership” or “change in effective control” within the
meaning of Section 409A, and in the event
that such Change in Control does not constitute
a “change in the ownership” or “change
in the effective control” within the meaning of Section
409A, such Award for which payment
is due upon a Change in Control of
the Company will vest upon
the Change in Control and any payment will
be delayed until the first compliant date under Section 409A.

 

11.7          
Limitations on Liability.Notwithstanding
any other provisions of the
Plan, no individual acting as a Director, officer
or other Employee will be
liable to any Participant, former
Participant, spouse, beneficiary, or any other
person for any claim, loss, liability,
or expense incurred in connection with the
Plan or any Award,
and such individual will not be personally
liable with respect to the Plan because
of any contract or
other instrument executed in such person’s capacity as an Administrator,
Director, officer or other Employee. The Company will indemnify
and hold harmless each Director, officer or other
Employee that has been or
will be granted or delegated
any duty or power relating to the Plan’s
administration or interpretation, against any cost or
expense (including attorneys’ fees) or
liability (including any sum paid in settlement
of a claim with the Administrator’s approval)
arising from any act or omission concerning this Plan unless arising from such person’s
own fraud or bad faith; provided that
the Director, officer or other Employee gives
the Company an opportunity, at its
own expense, to handle and defend the same
before undertaking to handle and defend it
on such person’s own behalf.

 

11.8          
Severability.If any portion of
the Plan or any action
taken under it is held illegal or invalid
for any reason, the illegality
or invalidity will not affect the remaining
parts of the Plan, and the Plan will
be construed and enforced as if the illegal
or invalid provisions had been
excluded, and the illegal or invalid
action will be null and void.

 

11.9          
Governing Documents. If any contradiction
occurs between the Plan and any Award Agreement or other
written agreement between a Participant and the
Company (or any Subsidiary), the Plan will
govern, unless such Award Agreement or
other written agreement was approved by the Administrator
and expressly provides that a specific provision
of the Plan will not apply.

 

11.10       
Governing Law.The Plan and all
Awards will be
governed by and interpreted in accordance
with the laws of the State
of Nevada, without regard to the
conflict of law rules thereof or of any
other jurisdiction. By accepting an Award, each Participant
irrevocably and unconditionally consents to submit
to the exclusive jurisdiction of the
courts of the State of Nevada
and of the United States of
America, in each case located in the
State of Nevada,
for any action arising out of or relating
to the Plan (and agrees not to commence
any litigation relating thereto except in such courts),
and further agrees that service of any process,
summons, notice or document by U.S.
registered mail to the address contained
in the records of the Company shall be effective
service of process for any litigation
brought against it in any such court. By accepting an Award,
each Participant irrevocably and unconditionally waives any objection
to the laying of venue of any litigation
arising out of the Plan or Award
hereunder in the courts of the State
of Nevada or the United States of
America, in each case located in the
State of Nevada, and further irrevocably
and unconditionally waives and agrees not to plead
or claim in any such court
that any such litigation brought in any
such court has been brought in an inconvenient
forum. By accepting an Award,
each Participant irrevocably and unconditionally waives, to the fullest
extent permitted by Applicable Law, any and all
rights to trial by jury in connection with any litigation
arising out of or relating to the
Plan or any Award hereunder.

11.11       
 Clawback Provisions.All Awards (including
the gross amount of any proceeds, gains
or other economic benefit the Participant actually or constructively
receives upon receipt or exercise of any
Award or the receipt or resale
of any Shares underlying the Award)
will be subject to recoupment by the Company
to the extent required to comply with
Applicable Law or any policy
of the Company providing for the reimbursement of incentive
compensation, whether or not such policy was in place
at the time of grant of an Award.

 

11.12       
Titles and Headings.The
titles and headings in the
Plan are for convenience of reference only and, if any conflict,
the Plan’s text, rather than such titles or headings,
will control.

 

     

     

    

11.13       
Conformity to Applicable Law.
Participant acknowledges that the Plan is intended
to conform to the extent necessary with
Applicable Law. Notwithstanding
anything herein to the contrary, the Plan and
all Awards will be administered only in
a manner intended to conform with Applicable
Law. To the extent Applicable Law permits,
the Plan and all Award Agreements will be
deemed amended as necessary to conform
to Applicable Law.

 

11.14       
Relationship to Other Benefits.
No payment under the Plan will be taken into account in determining any benefits
under any pension, retirement, savings, profit sharing, group insurance, welfare
or other benefit plan of the
Company or any Subsidiary, except as expressly
provided in writing in such other plan
or an agreement thereunder.

 

11.15       
Unfunded Status of Awards.The
Plan is intended to be an “unfunded” plan
for incentive compensation. With respect to any payments
not yet made to a Participant pursuant
to an Award, nothing contained in the Plan
or Award Agreement shall give
the Participant any rights that are greater
than those of a general creditor of the Company
or any Subsidiary.

 

11.16       
Limitations Applicable to Section 16
Persons.Notwithstanding any other provision
of the Plan, the Plan and any
Award granted or awarded to any individual
who is then subject to Section 16 of
the Exchange Act shall be subject
to any additional limitations set forth in any applicable
exemptive rule under Section 16 of the Exchange
Act (including Rule 16b-3) that are requirements
for the application of such exemptive
rule. To the extent permitted by Applicable Law,
the Plan and Awards granted
or awarded hereunder shall be deemed
amended to the extent necessary to conform to such applicable
exemptive rule.

 

11.17       
Prohibition on Executive Officer and
Director Loans.Notwithstanding any
other provision of the Plan to the contrary,
no Participant who is a Director
or an “executive officer”
of the Company within the meaning of Section
13(k) of the Exchange Act shall be
permitted to make payment
with respect to any Awards granted under the
Plan, or continue any extension
of credit with respect to such payment,
with a loan from the Company or a loan
arranged by the Company in violation
of Section 13(k) of the Exchange Act.

 

11.18        Broker-Assisted
Sales.In the event of a broker-assisted
sale of Shares in connection with the payment
of amounts owed by a Participant under
or with respect to the Plan or Awards,
including amounts to be paid under the final sentence of Section
10.5: (a) any Shares to be sold through the
broker-assisted sale will be sold on the day
the payment first becomes due, or as soon
thereafter as practicable; (b) such Shares may be sold as
part of a block trade with other Participants in the Plan
in which all Participants receive an average
price; (c) the applicable Participant will be responsible
for all broker’s fees and other costs of sale,
and by accepting an Award, each Participant
agrees to indemnify and hold the Company
and its Directors, officers and other Employees harmless
from any losses, costs, damages, or expenses
relating to any such sale; (d) to the extent
the Company or its designee receives proceeds of
such sale that exceed the amount owed, the
Company will pay such excess in cash to the applicable
Participant as soon as reasonably practicable;
(e) the Company and its designees are under
no obligation to arrange
for such sale at any particular price; and (f)
in the event the proceeds of such
sale are insufficient to satisfy the Participant’s
applicable obligation, the Participant may be required
to pay immediately upon demand to the
Company or its designee an amount in
cash sufficient to satisfy any remaining portion
of the Participant’s obligation.

 

*
* * * *

     

     

    

EXPION360
INC.

 

2021
INCENTIVE AWARD PLAN STOCK OPTION GRANT
NOTICE

 

Expion360
Inc., a Nevada
corporation, (the “Company”), pursuant to its 2021 Incentive Award Plan,
as may be amended from time
to time (the “Plan”), hereby grants
to the holder listed below (“Participant”),
an option to purchase the number
of shares of Common Stock (the
“Shares”), set forth below (the “Option”). This Option is subject
to all of the terms
and conditions set forth herein. Unless otherwise defined herein, the terms defined
in the Plan shall have the same defined
meanings in this Grant Notice,
and the Stock Option Agreement.

 

 

Participant:
_____________________

 

Grant
Date: _____________________

 

Vesting
Commencement Date: ________

 

Exercise
Price per Share: ____________

 

Total
Number of Shares
Subject to the Option: _________

 

Expiration
Date: ________________________

 

Subject
to the limitations
set forth in this
Grant Notice, the Plan and the Stock Option Agreement,
the Options will vest
in accordance with the following schedule:

 

Vesting
Schedule:

 

	 	 
	 	 

 

 

Type
of Option:☐
Incentive Stock Option☐ Nonqualified Stock
Option

 

If
the Company
uses an electronic capitalization table system (such as
Shareworks, Carta or Equity Edge) and
the fields in the Stock Option Grant
Notice (as defined above) are blank or the
information is otherwise provided in a different format electronically, the blank
fields and other information will be deemed
to come from the electronic capitalization system
and is considered part of the
Award and Award Agreement. In
addition, the Company’s signature below shall be deemed
to have occurred by the Company’s
input of the Option (as defined below)
in such electronic capitalization table system and Participant’s
signature below shall be deemed to have
occurred by Participant’s online acceptance
of the Options
through such electronic capitalization table system,
including any acceptance through a prior electronic
capitalization system.

     

     

    

 

By
Participant’s acceptance of the
Option through the online acceptance procedure established by the Company, or by
Participant’s signature and the Company’s signature below, Participant agrees
to be bound by the terms and conditions of
the Plan, and this Grant Notice. Participant has reviewed
the Plan, and this Grant Notice
in their entirety, has had an opportunity
to obtain the advice of counsel
prior to executing this Grant Notice
and fully understands all provisions of
the Plan, and this Grant Notice.

Participant
hereby agrees to accept
as binding, conclusive and final all decisions or interpretations
of the

 

Administrator
upon any questions
arising under the Plan, the Stock Option Agreement
or this Grant Notice.

 

	EXPION360 INC.:	 	PARTICIPANT:
	 	 	 
	By: ___________________	 	By:________________
	Printed Name: ___________	 	Printed Name:_____________
	Title: _________________	 	 
	Address: ______________	 	Address:________________

 

 

EXPION360
INC.

2021
INCENTIVE AWARD PLAN 

RESTRICTED
STOCK UNIT AWARD GRANT
NOTICE

 

Expion360
Inc., a Nevada
corporation, (the “Company”), pursuant to its 2021 Incentive Award Plan,
as may be amended from time
to time (the “Plan”), hereby grants
to the holder listed below (“Participant”),
an award of restricted stock units (“Restricted
Stock Units” or “RSUs”). Each
vested Restricted Stock Unit represents the right to receive, one share
of Common Stock (“Share”). This
award of Restricted
Stock Units is subject to all of the
terms and conditions set forth
herein and the Plan, which is incorporated
herein by reference. Unless otherwise defined herein, the terms
defined in the Plan shall have the same
defined meanings in this Restricted Stock Unit Award
Grant Notice (the “Grant
Notice”).

 

Participant:
__________________

 

Grant
Date: __________________

 

Total
Number of RSUs: _________

 

Vesting
Schedule:Subject to
the limitations set forth in this Grant Notice, the Plan

and
the Agreement,
the RSUs shall vest in accordance with
the vesting schedule set forth in the table below, subject to
Participant not experiencing a Termination of
Service prior to the applicable vesting
date unless otherwise required by Applicable
Law; provided, that, notwithstanding the foregoing,
in the event any such vesting date occurs
prior to the six-month anniversary of
the Public Trading Date, the RSUs scheduled
to vest on such date shall instead vest on
the six-month anniversary of the Public Trading
Date.

 

	 	 
	 	 

 

Termination
of Services:Except
as otherwise provided
by the Administrator or required by

Applicable
Law, if Participant
experiences a Termination of Service,
all RSUs that have not become vested
on or prior to the date of such Termination of Service
will thereupon be automatically
forfeited by Participant without payment
of any consideration therefor.

 

If the Company
uses an electronic capitalization table system (such as
Shareworks, Carta or Equity Edge)
and the fields in this Grant Notice are
blank or the information is otherwise provided in a different
format electronically, the blank fields and
other information will be deemed to come from
the electronic capitalization system and is considered part
of this Grant Notice. In
addition, the Company’s signature below shall
be deemed to have occurred
by the Company’s input of the RSUs
in such electronic capitalization
table system and Participant’s
signature below shall be deemed to have
occurred by Participant’s online acceptance
of the RSUs through such electronic capitalization
table system.

     

     

    

 

By
Participant’s acceptance of the
RSUs through the online acceptance procedure established by the Company or by signature
and the Company’s signature below, Participant
agrees to be bound by the terms and
conditions of the
Plan, and this Grant Notice. Participant has reviewed the Plan, and this
Grant Notice in their entirety, has had an opportunity
to obtain the advice of
counsel prior to executing this Grant Notice
and fully understands all provisions of the Plan, and this
Grant Notice. Participant hereby agrees
to accept as binding, conclusive and final
all decisions or interpretations of the Administrator
upon any questions arising under the Plan,
or this Grant Notice. In addition, by
accepting the RSUs through the online
acceptance procedure established by the Company or by signing
below, Participant also agrees that the Company, in its
sole discretion, may satisfy any withholding
obligations in accordance with Article

10.5
of the Plan by (i) withholding shares of
Common Stock otherwise issuable to Participant
upon vesting of the RSUs, (ii) instructing a broker
on Participant’s behalf to sell shares
of Common Stock otherwise issuable to
Participant upon vesting of the RSUs
and submit the proceeds of such sale
to the Company, or (iii) using any other method
permitted by Article 10.5 of the
Plan.

 

	EXPION360 INC.:	 	PARTICIPANT:
	 	 	 
	By: ___________________	 	By:________________
	Printed Name: ___________	 	Printed Name:_____________
	Title: _________________	 	 
	Address: ______________	 	Address:________________Exhibit
10.3

 

EXPION360
INC.

2021
EMPLOYEE STOCK PURCHASE
PLAN

 

ARTICLE
1 PURPOSE

 

The
Plan’s purpose is to assist employees
of the Company and its Designated Subsidiaries
in acquiring a stock ownership interest in
the Company, and to help such employees provide for
their future security and to encourage
them to remain in the employment of the
Company and its Subsidiaries.

 

The
Plan consists of two components: the Section
423 Component and the Non-Section 423 Component.
The Section 423 Component is intended
to qualify as an “employee stock purchase plan”
under Section 423 of the Code and shall be
administered, interpreted and construed in
a manner consistent with the requirements of Section
423 of the Code. In addition, this
Plan authorizes the grant of Options under
the Non-Section 423 Component, which need not qualify
as Options granted pursuant to an “employee stock purchase plan” under Section
423 of the Code; such Options granted under the
Non-Section 423 Component shall be granted
pursuant to separate Offerings containing
such sub-plans, appendices, rules or procedures
as may be adopted by the Administrator
and designed to achieve tax, securities
laws or other objectives for Eligible
Employees and the Designated Subsidiaries in locations
outside the United States. Except as
otherwise provided herein, the Non-Section 423 Component
will operate and be administered in the
same manner as the Section 423 Component.
Offerings intended to be made under the Non-Section
423 Component will be designated
as such by the Administrator at or prior
to the time of such Offering.

 

For
purposes of this
Plan, the Administrator may
designate separate Offerings under
the Plan, the terms
of which need not be identical, in which
Eligible Employees will participate, even if the dates of the
applicable Offering Period(s) in each such Offering is identical, provided that the
terms of participation are the same
within each separate Offering under the Section 423 Component as determined under Section
423 of the Code. Solely by way of example and
without limiting the foregoing, the Company
could, but shall not be required
to, provide for simultaneous Offerings under the Section
423 Component and the Non-Section 423
Component of the Plan.

 

ARTICLE
2 DEFINITIONS

 

As
used in the Plan,
the following words and phrases have the
meanings specified below, unless the context clearly
indicates otherwise:

 

2.1              
“Administrator” means the Committee,
or such individuals to which authority
to administer the Plan
has been delegated under Section 7.1 hereof.

 

2.2              
“Agent” means the brokerage firm,
bank or other financial institution, entity or person(s),
if any, engaged, retained, appointed or
authorized to act as the agent of
the Company or an Employee with regard
to the Plan.

 

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

 

2.4              
“Code” means the U.S. Internal
Revenue Code of 1986, as amended, and all regulations,
guidance, compliance programs and other interpretative
authority issued thereunder.

 

		2.5	“Committee”
                                            means the
                                            Compensation Committee of
                                            the Board.

 

		2.6	“Common
                                            Stock” means the common stock
                                            of the Company.

 

		2.7	“Company”
                                            means Expion360 Inc., a
                                            Nevada corporation, or any successor.

 

2.8              
“Compensation” of an Employee
means the regular earnings or base salary paid
to the Employee from the Company on
each Payday as compensation for services to
the Company or any Designated Subsidiary, before deduction
for any salary deferral contributions made by the Employee
to any tax-qualified or nonqualified deferred
compensation plan, including overtime, shift differentials, vacation pay, salaried production
schedule premiums, holiday pay, jury duty
pay, funeral leave pay, paid time off, military
pay and prior week adjustments, but excluding
bonuses and commissions, meal and rest break premiums
under California state law or similar
amounts paid in accordance with applicable
law of any other jurisdiction, education
or tuition reimbursements, imputed income arising under any group
insurance or benefit program, travel
expenses, business and moving reimbursements, including tax gross
ups and taxable mileage allowance, income received in connection
with any stock options, restricted stock, restricted stock units or other
compensatory equity awards and all contributions made by the Company
or any Designated Subsidiary for the Employee’s
benefit under any employee benefit plan now or hereafter
established. For any Participants in non-U.S.
jurisdictions, the Administrator will have discretion to determine
the application of this definition. Compensation shall be calculated
before deduction of any income or employment
tax withholdings, but such amounts shall
be withheld from the Employee’s net income.

 

2.9              
“Designated Subsidiary” means each Subsidiary,
including any Subsidiary in existence
on the Effective Date and any Subsidiary formed
or acquired following the Effective Date, that has
been designated by the Board or Committee from
time to time in its sole discretion as
eligible to participate in
the Plan, in accordance with
Section 7.2 hereof, such designation
to specify whether such participation is in the Section
423 Component or Non-Section
423 Component. A Designated Subsidiary
may participate in either the Section
423 Component or Non-Section 423 Component,
but not both; provided that a Subsidiary that, for U.S. tax
purposes, is disregarded from the Company
or any Subsidiary that participates
in the Section 423 Component shall automatically constitute a Designated
Subsidiary that participates in the Section 423 Component. The designation
by the Administrator of Designated Subsidiaries
and changes in such designations by the Administrator
shall not require stockholder approval. Only Subsidiary Corporations may be designated
as Designated Subsidiaries for purposes of
the Section 423 Component, and if an entity
does not so qualify, it shall automatically
be deemed to  constitute
a Designated Subsidiary that participates in the
Non-Section 423 Component.

     

     

    

 

		2.10	“Effective
                                            Date” means the date
                                            immediately prior to the
                                            Public Trading Date.

2.11          
 “Eligible Employee” means, except as otherwise provided by the Administrator
or in an Offering Document, an Employee:

 

(a) 
who is customarily scheduled to work
at least 20 hours per
week;

 

		(b)	whose
                                            customary employment is
                                            more than five months in a calendar
                                            year; and

 

(c) 
who, after the granting of the
Option, would not be deemed for purposes
of Section 423(b)(3) of the Code to
possess 5% or more of
the total combined voting power or value
of all classes of
stock of the Company or any Subsidiary.

 

For
purposes of clause
(c), the rules of Section
424(d) of the Code with regard to the
attribution of stock ownership shall apply in determining
the stock ownership of an individual,
and stock which an Employee may purchase under
outstanding options shall be treated as
stock owned by the Employee.

 

Notwithstanding
the foregoing,
the Administrator may exclude
from participation in the Section 423
Component as an Eligible Employee:

 

(x) 
any Employee that is a “highly
compensated employee” of the Company or any Designated
Subsidiary (within the meaning of Section 414(q)
of the Code), or that is such
a “highly compensated employee” (A)
with compensation above a specified level,
(B) who is an officer
or (C) who is subject to the disclosure
requirements of Section 16(a) of the
Exchange Act; or

 

(y) 
any Employee who is a citizen or resident
of a foreign jurisdiction (without regard
to whether they are also a citizen of the United
States or a resident alien (within the
meaning of Section 7701(b)(1)(A) of the
Code)) if either (A) the grant of the
Option is prohibited under the laws of
the jurisdiction governing such Employee, or
(B) compliance with the laws
of the foreign jurisdiction would cause the Section
423 Component, any Offering thereunder or
an Option granted thereunder to violate the requirements
of Section 423 of the Code;

 

provided
that any exclusion
in clauses (x) or (y) shall be
applied in an identical manner under each Offering
to all Employees of the
Company and all Designated Subsidiaries, in accordance
with Treas. Reg. § 1.423-2(e).

 

Notwithstanding
the foregoing,
the first sentence in this definition shall
apply in determining who is an “Eligible
Employee,” except (a) the Administrator may limit
eligibility further within the Company or a Designated Subsidiary so as to
only designate some Employees of the
Company or a Designated Subsidiary as Eligible
Employees, and (b) to the extent the restrictions
in the first sentence in this definition are
not consistent with applicable local laws, the applicable local laws shall control, in each case,
in accordance with the requirements of
Section 423 of the Code with respect to the
Section 423 Component.

 

2.12          
“Employee” means an individual who renders services to a Designated
Subsidiary in the status of an employee,
and, with respect to the Section 423 Component,
a person who is an officer or other
employee (as defined in accordance with Section 3401(c) of
the Code) of the Company or any Designated
Subsidiary. The Company shall determine in
good faith and in the exercise of its discretion
whether an individual has become or has
ceased to be an
Employee and the effective date of such
individual’s attainment or termination
of such status. For purposes of
an individual’s participation in, or
other rights under the Plan, all such determinations
by the Company shall be final,
binding and conclusive, notwithstanding that any court
of law or governmental agency subsequently makes
a contrary determination. For purposes
of the Plan, the employment relationship shall
be treated as continuing intact while
the individual is on sick leave or other
leave of absence approved by the Company or
a Designated Subsidiary (which, for purposes of
the Section 423 Component, must meet the requirements
of Treas. Reg. § 1.421-7(h)(2)). For
purposes of the
Section 423 Component, where the period of an approved leave of absence
exceeds three months, or such other period specified in Treas. Reg.
§ 1.421-1(h)(2), and the individual’s
right to reemployment is not provided either
by statute or contract, the employment
relationship shall be deemed to have
terminated for purposes of the Plan
on the first day immediately following such three-month
period, or such other period specified
in Treas. Reg. § 1.421-1(h)(2).

     

     

    

 

		2.13	“Enrollment
                                            Date” means the first date of
                                            each Offering Period.

 

		2.14	“Exchange
                                            Act” means the
                                            U.S. Securities Exchange Act of
                                            1934, as amended.

 

2.15          
“Exercise Date” means the last Trading Day
of each Purchase Period, except as provided
in Section 5.2 hereof.

 

2.16          
“Fair Market Value” means,
as of any date, the value
of Common Stock determined as follows:

 

(a)               
If the Common Stock is (i)
listed on any established securities exchange (such as the New
York Stock Exchange or Nasdaq
Stock Market), (ii) listed on any national market
system or (iii) listed, quoted or
traded on any automated quotation system,
its Fair Market Value shall be the closing
sales price for a share of Common Stock
as quoted on such exchange or system for such
date or, if there is no closing
sales price for a share of Common Stock
on the date in question, the closing sales price
for a share of Common Stock on the last
preceding date for which such quotation exists, as reported in The
Wall Street Journal or such other source as the Administrator
deems reliable;

 

(b)               
If the Common Stock is not listed on an established
securities exchange, national market system
or automated quotation system, but the Common
Stock is regularly quoted by a recognized securities
dealer, its Fair Market Value shall be the
mean of the high bid and low asked prices for
such date or, if there are no high
bid and low asked prices for a share
of Common Stock on such date, the high
bid and low asked prices for a share
of Common Stock on the last preceding
date for which such information exists, as reported
in The Wall Street Journal or such
other source as the Administrator deems
reliable; or

 

(c)               
If the Common Stock is neither
listed on an established securities exchange, national market
system or automated quotation system
nor regularly quoted by a recognized securities dealer,
its Fair Market Value shall be established
by the Administrator in good faith
(and, with respect to the initial Offering
Period of the Plan, as set
forth in the Offering Document for the initial
Offering Period).

 

2.17          
“Grant Date” means the first Trading
Day of an Offering Period (or, with respect
to the initial Offering Period of the Plan,
such date set forth in the Offering Document approved
by the Administrator with respect to the initial
Offering Period).

 

		2.18	“New
                                            Exercise Date” has the meaning set
                                            forth in Section 5.2(b) hereof.

 

2.19          
“Non-Section 423 Component” means those Offerings under the Plan,
together with the sub-plans, appendices, rules
or procedures, if any, adopted by the
Administrator as a part of this Plan, in
each case, pursuant to which Options
may be granted to Eligible Employees that need
not satisfy the requirements for Options granted pursuant to an “employee stock
purchase plan” that are set forth under Section
423 of the Code.

 

2.20            
“Offering” means an offer under
the Plan of an Option that may
be exercised during an Offering Period
as further described in Article 4 hereof.
Unless otherwise specified by the Administrator, each Offering
to the Eligible Employees of the Company
or a Designated Subsidiary shall be deemed a separate
Offering, even if the dates and other
terms of the applicable Offering Periods of
each such Offering are identical and the provisions of the Plan
will separately apply to each Offering. To the
extent permitted by Treas. Reg. § 1.423-2(a)(1),
the terms of each separate Offering under the Section 423 Component need not
be identical, provided that the terms
of the Section 423 Component and an
Offering thereunder together satisfy Treas. Reg. § 1.423-2(a)(2)
and (a)(3).

 

2.21          
“Offering Period” means such period of time
commencing on such date(s) as determined
by the Board or Committee, in its
discretion, and with respect to which Options shall be granted
to Participants. The duration and timing of Offering
Periods may be established or
changed by the Board or Committee
at any time, in its
sole discretion. Notwithstanding the foregoing, in no event
may an Offering Period exceed 27 months.

 

2.22          
“Option” means the right to purchase shares of Common
Stock pursuant to the Plan during each
Offering Period.

 

2.23          
“Option Price” means the purchase
price of a share of Common
Stock hereunder as provided in Section
4.2 hereof.

 

2.24          
“Parent” means any entity that
is a parent corporation of the Company
within the meaning of Section 424 of the
Code.

 

		2.25	“Participant”
                                            means any
                                            Eligible Employee who elects to participate
                                            in the Plan.

 

2.26          
“Payday” means the regular and recurring
established day for payment of Compensation
to an Employee of the Company or any
Designated Subsidiary.

     

     

    

2.27          
 “Plan” means this 2021 Employee Stock Purchase Plan, including both the
Section 423 Component and Non-Section
423 Component and any other sub-plans
or appendices hereto, as amended from time
to time.

 

2.28          
“Plan Account” means a bookkeeping
account established and maintained by the Company
in the name of each Participant.

 

2.29          
“Pricing Date”
means the date upon which the Company’s
Registration Statement on Form S-1 filed with
the U.S. Securities and Exchange
Commission relating to the underwritten public offering of shares
of Common Stock becomes effective.

 

2.30          
“Public Trading Date” means the first date upon which
Common Stock is listed (or approved for listing)
upon notice of issuance
on any securities exchange or designated
(or approved for designation) upon notice of issuance as a national
market security on an interdealer
quotation system.

 

2.31          
“Purchase Period” means such period of time
commencing on such dates as determined
by the Board or Committee, in its
discretion, within each Offering Period. The duration and timing
of Purchase Periods may be established
or changed by the Board
or Committee at any time,
in its sole discretion. Notwithstanding the foregoing,
in no event may a Purchase
Period exceed the duration of the Offering Period under which it is established.

 

2.32          
“Section 409A” means Section 409A
of the Code and the
regulations promulgated thereunder by the United States Treasury Department, as amended
or as may be amended
from time to time.

 

2.33          
“Section 423 Component” means
those Offerings under the Plan that are intended
to meet the requirements under Section 423(b)
of the Code.

 

2.34          
“Subsidiary” means (a) any Subsidiary
Corporation, and (b) with respect to any
Offering pursuant to the Non-Section 423 Component
only, Subsidiary may also include any corporate
or noncorporate entity in which the
Company has a direct or indirect
equity interest or significant business relationship.

 

2.35          
“Subsidiary Corporation” shall mean any corporation,
other than the Company, in an unbroken chain of corporations
beginning with the Company if, at the
time of the determination, each of
the corporations other than the last corporation
in an unbroken chain owns stock
possessing 50% or more of the total combined
voting power of all classes of stock
in one of the other corporations in such
chain, or any other entity that is a subsidiary
corporation of the Company within the meaning
of Section 424 of the Code.

 

2.36          
“Trading Day” means a day on
which national stock exchanges in the United States
are open for trading.

 

		2.37	“Treas.
                                            Reg.” means U.S. Department of
                                            the Treasury regulations.

     

     

    
		2.38	“Withdrawal
                                            Election” has
                                            the meaning set forth in Section
                                            6.1(a) hereof.

 

ARTICLE
3 PARTICIPATION

 

		3.1	Eligibility.

 

(a)               
Any Eligible Employee who is employed
by the Company or a Designated Subsidiary
on a given Enrollment Date for an Offering Period shall be eligible
to participate in the Plan during such
Offering Period, subject to the requirements of
Articles 4 and 5 hereof, and, for
the Section 423 Component, the limitations
imposed by Section 423(b) of the Code.

 

(b)               
No Eligible Employee shall be granted an Option
under the Section 423 Component which permits the Participant’s rights to purchase
shares of Common Stock under the Plan,
and to purchase stock under all other employee
stock purchase plans of the Company, any Parent
or any Subsidiary subject to Section
423 of the Code, to accrue at a rate
which exceeds $25,000 of fair market
value of such stock (determined at the
time such Option is granted)
for each calendar year in which such Option is outstanding
at any time. The limitation under this Section
3.1(b) shall be applied in accordance
with Section 423(b)(8) of the
Code.

 

		3.2	Election
                                            to
                                            Participate;
                                            Payroll
                                            Deductions

 

(a)               
Except as provided in Sections
3.2(e) and 3.3 hereof or in an applicable Offering
Document, an Eligible Employee may become
a Participant in the Plan only by means
of payroll deduction. Each individual who
is an Eligible Employee as of an Offering
Period’s Enrollment Date may elect
to participate in such Offering Period and
the Plan by delivering to the
Company a payroll deduction authorization no later
than the period of time prior to the
applicable Enrollment Date that is determined
by the Administrator, in its sole discretion.

 

(b)               
Subject to Section 3.1(b) hereof and except
as may otherwise be determined
by the Administrator and/or as set forth
in the Offering Document, payroll deductions (i) shall equal at least
1% of the Participant’s Compensation
as of each Payday
of the Offering Period following the
Enrollment Date, but not more than 15% of the Participant’s
Compensation as of each Payday of the Offering
Period following the Enrollment Date; and (ii) will be
expressed as a whole number percentage. Amounts
deducted from a Participant’s Compensation with respect to an Offering
Period pursuant to this Section

3.2
shall be deducted each Payday through payroll deduction
and credited to the Participant’s Plan Account; provided that for the first Offering
Period, payroll deductions shall not begin until such date determined
by the Administrator, in its sole discretion.

 

(c)               
Unless otherwise determined by the Administrator and/or
as set forth in the Offering Document, following
at least one payroll deduction, a Participant
may decrease (to as low as
1%) the amount deducted from such Participant’s
Compensation only once during an Offering Period
by delivering written notice of such decrease
in such form as may be established
by the Administrator to be effective
no later
than ten calendar days after the Company’s receipt of such
notice (or such shorter or longer period
of time determined by the Administrator
and/or as set forth in the Offering Document). Unless otherwise determined by the Administrator
and/or as set forth in the Offering Document,
a Participant may not increase
the amount deducted from such Participant’s
Compensation during an Offering Period.

 

(d)                 
Upon the completion of
an Offering Period, each Participant
in such Offering Period shall automatically participate in the immediately
following Offering Period at the same payroll deduction percentage
as in effect at the termination of
such Offering Period, unless such Participant
delivers to the Company a different election with respect to the successive
Offering Period in accordance with Section
3.2(a) hereof, or unless such Participant becomes ineligible for participation
in the Plan. Such Participant will be
deemed to have accepted the terms
and conditions of the Plan, the applicable
Offering Document, any sub-plan, enrollment form,
subscription agreement and/or any other terms
and conditions of participation
in effect at the time each subsequent Offering
Period begins.

 

(e)               
Notwithstanding any other provisions of
the Plan to the contrary, in non-U.S.
jurisdictions where participation in the Plan through payroll deductions is prohibited,
the Administrator may provide that an Eligible Employee may elect to participate
through contributions to the Participant’s account under the Plan
in a form acceptable to the Administrator
in lieu of or in
addition to payroll deductions; provided, however, that, for
any Offering under the Section 423 Component,
the Administrator must determine that any alternative method of contribution
is applied on an equal and uniform
basis to all Eligible Employees in the
Offering.

 

(f)                
To determine which Designated Subsidiaries shall participate in the Non-Section
423 Component and which shall participate
in the Section 423 Component.

 

     

     

    

ARTICLE
4 

PURCHASE
OF SHARES

 

4.1              
Grant of Option.The
Company may make one or more
Offerings under the Plan, which may be
successive or overlapping
with one another, until the earlier of: (i)
the date on which the shares of
Common Stock available under the Plan have
been sold or (ii) the date
on which the Plan is suspended
or terminates. The Administrator shall designate
the terms and conditions of each Offering
in writing, including without limitation, the Offering
Period and the Purchase Periods, as set forth
in an offering document (the “Offering Document”). Each Participant shall
be granted an Option with respect to an Offering
Period on the applicable Grant Date. Subject to the
limitations of Section 3.1(b) hereof, the number of shares
of Common Stock subject to a Participant’s
Option shall be determined by dividing (a)
such Participant’s payroll deductions accumulated prior to an Exercise
Date and retained in the Participant’s
Plan Account on such Exercise Date by (b) the
applicable Option Price; provided that, unless otherwise set forth in the Offering Document,
in no event shall a Participant be permitted
to purchase during each Offering Period more
than 100,000 shares of Common Stock (subject
to any adjustment pursuant to Section 5.2 hereof).
The Administrator and/or the Offering Document
may, for future Offering Periods, increase
or decrease, in its absolute discretion, the maximum
number of shares of Common Stock that
a Participant may purchase
during such future Offering Periods. Each Option shall expire
on the last Exercise
Date for the applicable Offering Period immediately after the automatic exercise
of the Option in accordance with Section 4.3
hereof, unless such Option terminates earlier in accordance
with Article 6 hereof.

 

4.2              
Option Price.The “Option
Price” per share of Common Stock to be paid by a Participant
upon exercise of the Participant’s Option
on an Exercise Date for an Offering
Period shall equal 85% of the lesser
of the Fair Market Value of a share of Common
Stock on (a) the applicable Grant Date
and (b) the applicable Exercise Date, or such other price designated by the Administrator;
provided that in no event shall the Option
Price per share of Common Stock be less than the
par value per share of the Common Stock;
provided further, that no Option Price shall be designated
by the Administrator that would cause the Section
423 Component to fail to meet the requirements
under Section 423(b) of the Code.

 

		4.3	Purchase
                                            of
                                            Shares.

 

(a)               
On each Exercise Date for an Offering
Period, each Participant shall automatically and without any action on such
Participant’s part be deemed to have
exercised the Participant’s Option to purchase
at the applicable per share Option Price the largest
number of whole shares of Common Stock
which can be purchased
with the amount in the Participant’s
Plan Account. Except as may otherwise
be provided by the
Administrator with respect to any Offering and/or as set forth
in the Offering Document, any balance less
than the per share Option Price that is remaining in the Participant’s
Plan Account (after exercise of such Participant’s Option) as of the Exercise
Date shall be promptly refunded to the applicable
Participant.

 

(b)               
As soon as practicable following each Exercise
Date, the number of shares of Common Stock
purchased by such Participant pursuant to Section
4.3(a) hereof shall be delivered (either in share
certificate or book entry form), in the
Company’s sole discretion, to either
(i) the Participant or

(ii)
an account established in the Participant’s
name at a stock brokerage or other
financial services firm designated by the Company. If
the Company is required to obtain
from any commission or agency
authority to issue any such shares of
Common Stock, the Company shall seek
to obtain such authority. Inability of the Company
to obtain from any such commission or
agency authority which counsel for the Company deems
necessary for the lawful issuance of any
such shares shall relieve the Company from
liability to any Participant except to refund
to the Participant such Participant’s Plan Account balance, without interest thereon.
The Company may require that such shares
of Common Stock be retained with a particular
Agent for a designated period of time, including
until such shares are sold and/or may establish
other procedures to permit tracking of qualifying
and disqualifying dispositions of such shares
of Common Stock or to otherwise facilitate compliance
with applicable law or administration
of the Plan.

 

4.4               Automatic
Termination of Offering
Period.If the Fair Market Value of a share of
Common Stock on any Exercise Date (except the final
scheduled Exercise Date of any Offering
Period) is lower than the Fair Market Value of
a share of Common Stock
on the Grant Date for an Offering Period, then
such Offering Period shall terminate on such
Exercise Date after the automatic exercise of the
Option in accordance with Section 4.3 hereof,
and each Participant shall automatically be enrolled
in the Offering Period
that commences immediately following such Exercise
Date and such Participant’s payroll deduction authorization
shall remain in effect for such Offering Period.

 

4.5              
Transferability of Rights.An
Option granted under the Plan shall
not be transferable, other than by will or the applicable
laws of descent and distribution, and is exercisable
during the Participant’s lifetime only by the Participant.
No option or interest or
right to the Option shall be available
to pay off any debts, contracts or engagements
of the Participant or the Participant’s
successors in interest or shall
be subject to disposition
by pledge, encumbrance, assignment or any other
means whether such disposition be voluntary or involuntary
or by operation of law by judgment,
levy, attachment, garnishment or any other legal
or equitable proceedings (including bankruptcy), and any attempt
at disposition of the Option shall have
no effect.

 

     

     

    

ARTICLE
5

PROVISIONS
RELATING TO
COMMON STOCK

 

5.1              
Common Stock Reserved.Subject
to adjustment as provided in Section
5.2 hereof, the maximum number of shares
of Common Stock that shall be made
available for sale under the Plan shall
be the sum of (a) 2% of the
fully diluted shares of all classes of
the Company’s common stock outstanding
as of immediately following the Public
Trading Date and (b) an increase commencing
on January 1, 2022 and continuing annually
on the anniversary thereof through (and including)
January 1, 2031, equal to the lesser
of (A) 1% of the aggregate
number of shares of all
classes of the Company’s common
stock outstanding on the last day of the
immediately preceding calendar year and (B) such smaller number
of shares of Common Stock as determined
by the Board or the Committee;
provided, however, no more than 2,500,000 Shares may
be issued under the Plan. Shares made available for sale under the Plan
may be authorized but unissued shares, treasury
shares of Common Stock, or reacquired
shares reserved for issuance under the Plan. All or any portion
of such maximum number of shares may
be issued under the Section 423 Component.

 

		5.2	Adjustments
                                            Upon Changes in
                                            Capitalization, Dissolution, Liquidation, Merger
                                            or Asset Sale

 

(a)               
Changes in Capitalization.
Subject to any required action by the stockholders
of the Company, the number of
shares of Common Stock which
have been authorized for issuance
under the Plan but not yet placed under Option, as well
as the price per share and the number
of shares of Common Stock covered
by each Option under the Plan which has not yet
been exercised shall be proportionately
adjusted for any increase or decrease
in the number of issued shares of Common
Stock resulting from a stock split, reverse
stock split, stock dividend, combination or reclassification
of the Common Stock,
or any other increase or decrease
in the number of shares
of Common Stock 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.” Such adjustment shall be made
by the Administrator, whose determination in that respect shall be final,
binding and conclusive. Except as expressly
provided herein, no issuance by the Company
of shares of stock of any class,
or securities convertible into shares
of stock of any class, shall
affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of shares
of Common Stock subject to an Option.

 

(b)               
Dissolution or Liquidation.In
the event of the proposed dissolution
or liquidation of the
Company, the Offering Periods then in progress shall be shortened
by setting a new Exercise Date (the “New Exercise Date”), and shall
terminate immediately prior to the consummation of such proposed
dissolution or liquidation, unless provided otherwise
by the Administrator. The New Exercise Date
shall be before the date of the Company’s
proposed dissolution or liquidation. The Administrator shall notify each Participant
in writing prior to the New Exercise Date, that the Exercise Date for the Participant’s
Option has been changed to the New Exercise
Date and that the Participant’s Option shall
be exercised automatically on the New Exercise
Date, unless prior to such date the Participant
has withdrawn from the Offering Period as provided
in Section 6.1 hereof or
the Participant has ceased to be an
Eligible Employee as provided in Section
6.2 hereof.

 

(c)               
Merger or Asset
Sale.In the event
of a proposed sale of all
or substantially all of the assets of
the Company, or the merger of the Company
with or into another corporation, each
outstanding Option shall be assumed or an
equivalent Option substituted by the successor
corporation or a Parent or
Subsidiary of the successor corporation.
If the successor corporation refuses to assume
or substitute for the Option, any Offering Periods then in progress shall be shortened
by setting a New Exercise Date and any Offering
Periods then in progress shall end on the New
Exercise Date. The New Exercise Date shall be before the date of the Company’s
proposed sale or merger. The Administrator
shall notify each Participant in writing prior
to the New Exercise Date, that the Exercise
Date for the Participant’s Option has been
changed to the New Exercise Date and that
the Participant’s Option shall be exercised
automatically on the New Exercise Date, unless prior to such date the Participant
has withdrawn from the Offering Period as provided
in Section 6.1 hereof or the
Participant has ceased to be an Eligible Employee as provided
in Section 6.2 hereof.

 

5.3              
Insufficient Shares.If the Administrator
determines that, on a given Exercise Date, the number
of shares of Common
Stock with respect to which Options are to be exercised
may exceed the number of shares
of Common Stock remaining available for sale
under the Plan on such Exercise
Date, the Administrator shall make a pro
rata allocation of the
shares of Common Stock available for issuance
on such Exercise Date in as uniform
a manner as shall be practicable
and as it shall determine in its sole discretion
to be equitable among all Participants exercising
Options to purchase Common Stock on such
Exercise Date, and unless additional shares are authorized
for issuance under the Plan, no further
Offering Periods shall take place and the Plan shall terminate pursuant to Section
7.5 hereof. If an Offering
Period is so terminated, then the balance of
the amount credited to the Participant’s
Plan Account which has not been applied to the purchase
of shares of Common Stock shall be paid
to such Participant in one lump sum
in cash within 30 days after such Exercise
Date, without any interest thereon.

 

5.4              
Rights as Stockholders.
With respect to shares of Common Stock
subject to an Option, a Participant shall not
be deemed to be a stockholder of the
Company and shall not have any of the rights
or privileges of a stockholder. A Participant
shall have the rights and privileges of a stockholder
of the Company when, but not until, shares
of Common Stock have been deposited
in the designated brokerage account following exercise of the Participant’s Option.

     

     

    

 

ARTICLE
6 

TERMINATION
OF PARTICIPATION

 

6.1              
Cessation of Contributions; Voluntary Withdrawal.

 

(a)               
A Participant may cease payroll
deductions during an Offering Period and elect
to withdraw from the Plan by delivering
written notice of such election to the Company
in such form and at such time prior
to the Exercise Date for such Offering Period as
may be established by the Administrator
(a “Withdrawal Election”). A Participant electing to cease
payroll deductions and withdraw from the Plan may
elect to (i) exercise the Participant’s Option in accordance
with Section 4.3 with the funds credited to the Participant’s
Plan Account prior to the date on which
the Withdrawal Election is given effect (in accordance
with the withdrawal procedures established by the
Administrator pursuant to this Section 6.1(a)) and after such exercise, shall cease
to participate in the Plan and/or (ii) withdraw all
of the funds then credited to the Participant’s
Plan Account as of the date on which the Withdrawal
Election is given effect (in accordance with the withdrawal procedures established
by the Administrator pursuant to this Section 6.1(a)),
in which case, amounts credited to such Plan
Account shall be returned to the Participant
in one lump-sum payment in cash within
30 days after such election
is received by the Company, without
any interest thereon, and the Participant shall cease to participate in the Plan and the Participant’s
Option for such Offering Period shall terminate. For clarity, during an Offering
Period, a Participant may elect to withdraw
from the Plan pursuant to clause (i) and then
subsequently elect to withdraw from the Plan pursuant to clause
(ii), but a withdrawal pursuant to clause (ii)
shall be final for such Offering
Period. Upon receipt of a Withdrawal
Election, the Participant’s payroll deduction authorization shall terminate.

 

(b)               
A Participant’s withdrawal from the Plan shall
not have any effect upon the Participant’s
eligibility to participate in any similar plan
which may hereafter be adopted
by the Company or in succeeding Offering Periods
which commence after the termination of the Offering Period from which the Participant
withdraws.

 

(c)               
Except as otherwise permitted by the Administrator
and/or as set forth in the Offering Document,
a Participant who ceases contributions to the Plan
during any Offering Period shall not be permitted
to resume contributions to the Plan during
that Offering Period.

 

6.2              
Termination of Eligibility.Subject
to Section 7.17, upon a Participant’s
ceasing to be an Eligible Employee, for any reason,
such Participant’s Option for the applicable
Offering Period shall automatically terminate, the Participant shall be deemed
to have elected to withdraw from the
Plan, and such Participant’s Plan Account shall
be paid to such Participant
or, in the case of the Participant’s
death, to the person or persons
entitled thereto pursuant to applicable law, within 30
days after such cessation of
being an Eligible Employee, without
any interest thereon.

ARTICLE
7 

GENERAL
PROVISIONS

 

7.1              
Administration.

 

(a)               
The Plan shall be administered by the Committee,
which shall be
composed of members
of the Board. To the extent permitted under
applicable law, the Committee may delegate administrative
or other tasks under the Plan to the services of
an Agent or Employees to assist
in the administration of the Plan, including
establishing and maintaining an individual
securities account under the Plan for each Participant.

 

(b)               
It shall be the duty of the Administrator
to conduct the general administration of the Plan in accordance
with the provisions of the
Plan. The Administrator shall have the
power, subject to, and within the limitations of,
the express provisions of the Plan:

 

(i) 
To establish and terminate Offerings;

 

(ii) 
To determine when and how Options shall be
granted and the provisions and terms
of each Offering (which need not be identical);

 

(iii)   
(iv) To impose a mandatory holding period pursuant
to which Participants may not dispose
of or transfer shares of
Common Stock purchased under the Plan
for a period of time determined by the Administrator
in its discretion; and

 

(v)
To construe and
interpret the Plan, the terms of any Offering
and the terms of the Options and to
adopt such rules for the administration, interpretation, and application
of the Plan as are consistent
therewith and to interpret, amend or revoke
any such rules. The Administrator, in the exercise of this
power, may correct any defect,
omission or inconsistency in the Plan,
any Offering or any Option, in a manner and
to the extent it shall deem necessary or expedient
to administer the Plan, subject to Section
423 of the Code for the Section 423
Component.

 

(c)               
The Administrator may adopt rules
or procedures relating to the operation and
administration of the Plan to accommodate the specific
requirements of local laws and procedures.
Without limiting the generality of the foregoing,
the Administrator is specifically authorized to adopt
rules and procedures regarding handling of participation elections, payroll deductions,
payment of interest, conversion of local
currency, payroll tax, withholding procedures and handling of stock
certificates which vary with local requirements. In its absolute
discretion, the Board may at any time and from time
to time exercise any and all
rights and duties of the Administrator under the Plan.

 

     

     

    

(d)               
The Administrator may adopt sub-plans
applicable to particular Designated Subsidiaries or locations,
which sub-plans may be designed to be
outside the scope of Section
423 of the Code. The rules of
such sub-plans may take precedence over other provisions of
this Plan, with the exception of Section
5.1 hereof, but unless otherwise superseded
by the terms of such sub-plan, the provisions
of this Plan shall govern the operation
of such sub-plan.

 

(e)               
All expenses and liabilities incurred by the Administrator
in connection with the administration
of the Plan shall be borne by the Company.
The Administrator may, with the approval
of the Committee, employ attorneys, consultants, accountants, appraisers, brokers
or other persons. The Administrator,
the Company and its officers and directors
shall be entitled to rely upon the
advice, opinions or valuations of
any such persons. All actions taken and all
interpretations and determinations made by the Administrator
in good faith shall be final and binding
upon all Participants, the Company and all
other interested persons. No member of the Board
or Administrator shall be personally
liable for any action, determination or
interpretation made in good faith with
respect to the Plan or the options, and
all members of the Board or
Administrator shall be fully protected
by the Company in respect to any
such action, determination, or interpretation.

 

7.2              
Designation of Subsidiary
Corporations. The Board or Administrator
shall designate from time to time
the Subsidiaries that shall constitute Designated Subsidiaries, and determine
whether such Designated Subsidiaries shall participate in the Section
423 Component or Non-Section
423 Component. The Board or Administrator may
designate a Subsidiary, or terminate
the designation of a Subsidiary,
without the approval of the stockholders of the Company.

 

7.3              
Reports.Individual accounts shall be maintained
for each Participant in the Plan. Statements
of Plan Accounts shall be made available
to Participants at least annually, which statements
shall set forth the amounts of payroll deductions,
the Option Price, the number of shares
purchased and the remaining cash balance, if any.

 

7.4              
No Right to Employment.Nothing
in the Plan shall be construed to give
any person (including any Participant)
the right to remain in the employ
of the Company, a Parent or
a Subsidiary or to affect the right
of the Company, any Parent
or any Subsidiary to terminate
the employment of any person (including any Participant)
at any time, with or without cause, which right
is expressly reserved.

 

		7.5	Amendment
                                            and
                                            Termination of the Plan.

 

(a)                 
The Board may, in its sole
discretion, amend, suspend or terminate the Plan at any time
and from time to time. To the
extent necessary to comply with Section 423
of the Code (or any successor rule or
provision), with respect to the
Section 423 Component, or any other
applicable law, regulation or stock exchange rule, the Company
shall obtain stockholder approval of any such amendment to the
Plan in such a manner and to such a
degree as required by Section
423 of the Code or
such other law, regulation or rule.

 

(b)               
If the Administrator determines that the ongoing
operation of the Plan may
result in unfavorable financial accounting consequences, the Administrator
may, to the extent permitted under Section 423
of the Code, for the Section 423 Component,
in its discretion and, to the extent necessary or desirable,
modify or amend the Plan to reduce
or eliminate such accounting consequence including,
but not limited to:

(i) 
 altering the Option Price for any Offering Period
including an Offering Period underway at
the time of the change
in Option Price;

 

(ii) 
shortening any Offering Period so that
the Offering Period ends on a new Exercise
Date, including an Offering Period underway at the
time of the Administrator action; and

 

		(iii)	allocating
                                            shares of
                                            Common Stock.

 

Such
modifications or amendments
shall not require stockholder approval or
the consent of any Participant.

 

(c)               
Upon termination of the Plan, the balance
in each Participant’s Plan Account shall be refunded
as soon as practicable after such termination, without any interest
thereon.

 

7.6              
Use of Funds; No Interest Paid.
All funds received by the Company by reason
of purchase of
shares of Common Stock under the
Plan shall be included in the general funds
of the Company free of any trust or
other restriction and may be used
for any corporate purpose, except for funds contributed
under Offerings in which the local
law of a non-U.S. jurisdiction requires that contributions to the Plan
by Participants be segregated from the
Company’s general corporate funds and/or deposited with an independent
third party for Participants in non-U.S.
jurisdictions. No interest shall be paid to
any Participant or credited
under the Plan, except as may be required
by local law in a non-U.S. jurisdiction.
If the segregation of funds
and/or payment of interest on any Participant’s
account is so required, such provisions shall
apply to all Participants in the relevant Offering
except to the extent otherwise permitted by Treas.
Reg § 1.423-2(f). With respect to any Offering
under the Non-Section 423 Component, the payment
of interest shall apply as determined
by the Administrator (but absent any such determination,
no interest shall apply).

 

     

     

    

7.7              
Term; Approval by Stockholders.No
Option may be granted during any period
of suspension of the Plan or after
termination of the Plan. The Plan
shall be submitted for the approval
of the Company’s stockholders within 12 months
after the date of the Board’s initial adoption
of the Plan. Options may be granted
prior to such stockholder approval; provided, however, that such Options shall not
be exercisable prior to the time
when the Plan is approved
by the stockholders; provided, further that if such
approval has not been obtained by the
end of the 12-month period, all Options previously granted
under the Plan shall thereupon terminate and be
canceled and become null and void
without being exercised.

 

7.8              
Effect Upon Other Plans.The adoption of
the Plan shall not affect any other
compensation or incentive plans in effect
for the Company, any Parent or any Subsidiary.
Nothing in the Plan shall be construed
to limit the right of the
Company, any Parent or any Subsidiary
(a) to establish any other forms of incentives
or compensation for Employees of
the Company or any Parent or any Subsidiary,
or (b) to grant or assume
Options otherwise than under the Plan in connection
with any proper corporate purpose, including, but not by way
of limitation, the grant or assumption
of options in connection with the acquisition,
by purchase, lease, merger, consolidation or otherwise,
of the business, stock or assets
of any corporation, firm or association.

 

7.9              
Conformity to Securities Laws.
Notwithstanding any other provision of the Plan,
the Plan and the participation in the Plan
by any individual who is then subject to Section
16 of the Exchange Act shall be subject
to any additional limitations set forth in any applicable
exemption rule under Section 16 of the Exchange Act
(including any amendment to Rule 16b-3
of the Exchange Act) that are requirements
for the application of such exemptive rule. To the extent permitted by
applicable law, the Plan shall be
deemed amended to the extent necessary
to conform to such applicable exemptive rule.

 

7.10          
Notice of Disposition of Shares.
Each Participant in the Section 423 Component shall give
the Company prompt notice of any disposition
or other transfer of
any shares of Common Stock,
acquired pursuant to the exercise of an Option granted under the Section
423 Component, if such disposition or transfer
is made (a) within two years after the applicable Grant
Date or (b) within one year after the
transfer of such shares of Common
Stock to such Participant upon exercise
of such Option. The Company may direct that
any certificates evidencing shares acquired pursuant to the Plan refer to such
requirement.

 

7.11          
Tax Withholding.The Company
or any Parent or any Subsidiary shall
be entitled to withhold any federal,
state or local tax or other
amounts required to be withheld by applicable
law with respect to participation in
the Plan by (a) withholding from wages
or other cash compensation payable to
each Participant, (b) withholding from the
proceeds of the
sale of shares of Common
Stock purchased under the Plan, either
through a Participant’s voluntary sale
or through a mandatory sale arranged
by the Company, (c) withholding shares
of Common Stock otherwise issuable upon exercise
of an Option under the Plan or
(d) withholding by any other method determined
by the Company and compliant with applicable
law. If any withholding obligation described
in the foregoing sentence will be satisfied
under clause (b) thereof, each Participant’s enrollment in the Plan will
constitute the Participant’s authorization to the
Company and instruction and authorization
to the Agent selected to effect the sale to
complete the transactions described in clause
(b).

 

7.12          
Governing Law.The Plan and all
rights and obligations thereunder shall be construed and enforced
in accordance with the laws of the State of Nevada,
without regard to the conflict of law rules
thereof or of any other jurisdiction.

 

7.13          
Notices.All notices or other communications
by a Participant to the Company under
or in connection with the Plan shall be
deemed to have been duly
given when received in the form specified by the
Company at the location, or by the person,
designated by the Company for the receipt thereof.

 

		7.14	Conditions
                                            To
                                            Issuance of Shares.

 

(a)               
Notwithstanding anything herein to the contrary, the
Company shall not be required to issue or
deliver any certificates or make
any book entries evidencing shares of Common
Stock pursuant to the exercise of
an Option by a Participant, unless and until
the Board or the Committee has determined,
with advice of counsel, that the issuance of
such shares of Common Stock is in compliance
with all applicable laws, regulations of
governmental authorities and, if applicable, the requirements
of any
securities exchange or automated quotation
system on which the shares
of Common Stock are listed or traded,
and the shares of Common Stock are covered
by an effective registration statement or
applicable exemption from registration. In addition
to the terms and conditions provided herein, the Board
or the Committee may require
that a Participant make such reasonable
covenants, agreements, and representations as the Board or the Committee, in its discretion,
deems advisable in order to comply with any such laws, regulations, or requirements.

     

     

    

 

(b)                 
All certificates for shares of
Common Stock delivered pursuant to the Plan
and all shares of Common Stock issued
pursuant to book entry procedures
are subject to any stop-transfer orders and
other restrictions as the Committee deems
necessary or advisable to comply
with federal, state, or foreign securities
or other laws, rules and regulations
and the rules of any securities
exchange or automated quotation system
on which the shares of
Common Stock are listed, quoted, or traded.
The Committee may place legends on any
certificate or book entry evidencing shares
of Common Stock to reference restrictions applicable
to the shares of Common
Stock.

 

(c)               
The Committee shall have the
right to require any Participant to
comply with any timing or other
restrictions with respect to the settlement,
distribution or exercise of any Option,
including a window-period limitation, as may
be imposed in the sole discretion
of the Committee.

 

(d)               
Notwithstanding any other provision of the
Plan, unless otherwise determined by the Committee
or required by any applicable law, rule
or regulation, the Company may,
in lieu of delivering to any Participant
certificates evidencing shares of Common Stock issued
in connection with any Option, record
the issuance of shares
of Common Stock in the books of the
Company (or, as applicable, its transfer
agent or stock plan administrator).

 

7.15          
Equal Rights and Privileges.All Eligible Employees of the
Company (or of any Designated Subsidiary) granted Options pursuant to an
Offering under the Section 423 Component shall have equal rights and privileges
under this Plan to the extent required under
Section 423 of the Code so that
the Section 423 Component qualifies as an “employee
stock purchase plan” within the meaning of Section
423 of the Code. Any provision
of the Section 423 Component
that is inconsistent with Section 423 of the Code
shall, without further act or amendment by the Company
or the Board, be reformed to comply
with the equal rights and privileges requirement
of Section 423 of the
Code. Eligible Employees participating in the Non-Section 423 Component
need not have the same rights
and privileges as Eligible
Employees participating in the Section 423 Component.

 

7.16          
Rules Particular to Specific
Jurisdictions.Notwithstanding anything herein to the
contrary, the terms and conditions of
the Plan with respect to Participants who
are tax residents of a particular
non-U.S. country or who are foreign nationals or employed
in non-U.S. jurisdictions may be subject
to an addendum to the
Plan in the form of an appendix or sub-plan
(which appendix or sub-plan may be designed
to govern Offerings under the Section
423 Component or the
Non-Section 423 Component, as determined
by the Administrator). To the extent that the
terms and conditions set forth
in an appendix or sub-plan conflict with
any provisions of the
Plan, the provisions of the appendix or
sub- plan shall govern. The adoption
of any such appendix or
sub-plan shall be pursuant to Section
7.1 above. Without limiting the foregoing,
the Administrator is specifically authorized to adopt
rules and procedures, regarding
the exclusion
of particular Subsidiaries from participation in the Plan, eligibility to participate,
the definition of Compensation, handling
of payroll deductions or other contributions
by Participants, payment of interest, conversion
of local currency, data privacy security, payroll tax,
withholding procedures, establishment of bank or trust
accounts to hold payroll deductions or
contributions, determination of beneficiary
designation requirements, and handling of stock
certificates, in each case, in accordance with the requirements
of Section 423 of the Code with respect
to the Section 423 Component. The Administrator also
is authorized to determine that, to the extent permitted by Treas.
Reg § 1.423-2(f), the terms of
an Option granted under the Plan or an Offering
to citizens or residents of a non-U.S.
jurisdiction will be less favorable than
the terms of an Option granted under the Plan
or the same Offering to Employees resident
solely in the United States. To the extent
any sub-plan or appendix or other
changes approved by the Administrator are inconsistent with the requirements of
Section 423 of the Code or would
jeopardize the tax-qualified status of the Section
423 Component, the change shall cause the Designated
Subsidiaries affected thereby to be considered Designated Subsidiaries in a separate
Offering under the Non-Section 423 Component instead of the Section
423 Component. To the extent any Employee of a Designated
Subsidiary in the Section 423 Component is a citizen
or resident of a foreign jurisdiction (without
regard to whether they are also a U.S.
citizen or a resident alien (within the meaning of Section
7701(b)(1)(A) of the Code)) and compliance
with the laws of the foreign
jurisdiction would cause the Section 423 Component,
any Offering or the option to violate
the requirements of Section 423 of the
Code, such Employee shall be considered
a Participant in a separate Offering
under the Non- Section 423 Component.

 

Notwithstanding
any other provisions
of the Plan to the
contrary, in non-U.S. jurisdictions where participation in the
Plan through payroll deductions is prohibited, the Administrator
may provide that an Eligible
Employee may elect to participate through contributions to his or her account under
the Plan in a form acceptable to the Administrator
in lieu of or in
addition to payroll deductions; provided, however, that, for
any Offering under the Section 423 Component,
the Administrator must determine that any alternative method of contribution
is applied on an equal and uniform basis
to all Eligible Employees in the Offering.

     

     

    

 

7.17          
Section 409A. The Section 423 Component
of the Plan and the Options granted
pursuant to Offerings thereunder are intended
to be exempt from the application of
Section 409A. Neither the Non-Section 423
Component nor any Option granted pursuant to
an Offering thereunder is intended to constitute or
provide for “nonqualified deferred compensation” within the meaning
of Section 409A. Notwithstanding any provision
of the Plan to the contrary, if the
Administrator determines that any Option granted under the Plan
may be or become subject to Section 409A or
that any provision of the
Plan may cause an Option granted under the Plan
to be or become subject
to Section 409A, the Administrator may
adopt such amendments to the Plan and/or adopt
other policies and procedures (including amendments, policies and procedures
with retroactive effect), or take any other actions
as the Administrator determines are necessary or appropriate
to avoid the imposition of
taxes under Section 409A, either through compliance with the requirements of Section
409A or with an available exemption therefrom.

*
* * * *

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