Document:

Exhibit 10.1

 

AMENDED AND RESTATED PROMISSORY NOTE

 

	$12,500,000.00	April 20,
2015         

  

WHEREAS, the Maker
(as defined below) previously executed that certain Promissory Note dated May 9, 2014, in the principal amount of Twelve Million
Five Hundred Thousand Dollars ($12,500,000.00) for the benefit of the Payee (as defined below) (the “Initial Note”);
and

 

WHEREAS, the Maker
and the Payee desire to amend and restate the Initial Note to, among other things, change the repayment schedule and the interest
rate;

 

NOW, THEREFORE, the
Initial Note is hereby amended and restated in its entirety to read as follows:

 

FOR VALUE RECEIVED,
the undersigned, HARD ROCK SOLUTIONS, LLC, a Utah limited liability company with its principal place of business at 2221 N. 3250
W. Vernal, Utah 84078 and SUPERIOR DRILLING SOLUTIONS, LLC, f/k/a Superior Drilling Products, LLC, a Utah limited liability company
with its principal place of business at 2221 N. 3250 W. Vernal, Utah 84078, (hereinafter collectively the “Maker”),
hereby promise to pay to the order of WMAFC, INC, f/k/a HARD ROCK SOLUTIONS, INC., a Texas corporation with its principal place
of business at 7507 County Road 72, Windsor, Colorado 80550 (the “Payee”), the principal sum of Twelve Million
Five Hundred Thousand and No/00 Dollars ($12,500,000.00) together with interest on the outstanding balance of the principal sum
at the rates and commencing at the times and pursuant to the terms hereinafter provided until this promissory note (“Promissory
Note”) is paid in full.

 

1.Terms. Capitalized
terms used herein without definition have the meanings ascribed to them in that certain Membership Interest Purchase Agreement
dated January 28, 2014 by and between Maker, Payee and James D. Isenhour, an individual (the “Purchase Agreement”).

 

2.Principal and Interest.
This Promissory Note shall bear interest from the date hereof until May 29, 2015 (for the actual number of days occurring in the
period for which interest is payable) at an adjustable interest rate per annum equal to the Prime Rate in effect. The term “Prime
Rate” shall mean the annual rate of interest specified by JP Morgan Chase Bank, N.A., as its prime rate, which may change
from time to time. Any change in the interest rate payable hereunder will take effect on the date of the change to the Prime Rate.
Commencing on May 29, 2015, the forgoing Prime Rate shall no longer apply and this Promissory Note shall forevermore bear interest
at a fixed interest rate equal to 5.25% per annum (“Fixed Rate”). All accrued and unpaid interest on this Promissory
Note shall be due and payable by Maker to Payee as follows:

 

(i)                
Commencing on May 29, 2015, a principal payment of $2,500,000.00 plus accrued interest at the Prime Rate in effect for the period;

 

(ii)              
Commencing on January 15, 2016, a principal payment of $2,500,000.00 plus accrued interest at the Fixed Rate in effect for the
period;

 

(iii)            
Commencing on July 15, 2016, a principal payment of $2,500,000.00 plus accrued interest at the Fixed Rate in effect for the period;

 

    	 

    	 

    

  

(iv)            
Commencing on January 16, 2017, a principal payment of $2,500,000.00 plus accrued interest at the Fixed Rate in effect for the
period; and

 

(v)              
On July 14, 2017, the final payment of the entire remaining principal balance of this Promissory Note in the amount of $2,500,000.00
plus accrued interest at the Fixed Rate in effect for the period is due in full.

 

3.Maturity
Date. The entire outstanding principal balance of this Promissory Note, together with all accrued but unpaid interest thereon,
shall be due and payable in full on July 14, 2017 (or, if such date is not a business day, then on the immediately preceding business
day), or upon any earlier acceleration of the Maker’s obligations hereunder, unless such obligations are earlier satisfied
in accordance with the terms hereof.

 

4.Default.If
Maker fails to pay, within fifteen (15) days, any principal of or interest on this Promissory Note when due (“Default”),
the holder of this Promissory Note or any part thereof may thereafter provide Maker written notice of the Default, and if Maker
continues to be in Default for thirty (30) days or more after receipt of written notice, Payee may declare the principal balance
hereof and the interest accrued hereon to be immediately due and payable.

 

A default under the
terms of the Security and Pledge Agreement securing this Promissory Note (hereinafter “Security Agreement”)
also is a default under this Promissory Note. If Maker is in default under the terms of the Security Agreement, Payee shall provide
Maker with written notice specifying such default and allow thirty (30) days from receipt of said notice to cure the default. Maker
shall not be in default under the terms of the Security Agreement until such notice has been given and Maker has failed to cure
the default within the thirty (30) day grace period. In the event of a default under the Security Agreement which is not cured
within the time period specified herein, Payee, at Payee’s option, may also accelerate the entire balance of this Promissory
Note.

 

If Payee elects to
accelerate the balance of this Promissory Note as permitted herein, the entire balance of principal, together with interest to
the date of default and all other amounts due under this Note or the Security Agreement shall, from the date of default, bear interest
at the rate of nine percent (9.00%) per annum (“Default Interest Rate”), and all such amounts shall be immediately
due and payable in full. Interest shall continue to accrue on the full amount of principal, interest and such other amounts due
as of the default date until the default has been cured. The Payee shall have the right to recover from Maker an additional amount
equal to Payee's reasonable costs in enforcing this Promissory Note and the Security Agreement in the event of default, including
reasonable attorney's fees and other costs related to the default, whether or not suit is commenced, and whether or not Payee elects
to accelerate the balance. All such reasonable fees and costs must be paid before a default will be cured.

 

4.Prepayment.
Maker may, at any time, prepay the outstanding balance of principal and interest due under this Promissory Note in whole or in
part, without premium or penalty. In the event of prepayment, there shall become due and payable an amount equal to all accrued
interest attributable to that portion of the outstanding principal balance of the Promissory Note being prepaid at that time. Partial
prepayments shall not defer the due dates for, or the amounts of, succeeding payments.

 

    	 

    	 

    

  

5.Payments and Computations.
All payments on account of indebtedness evidenced by this Promissory Note shall be made on the day when due in lawful money of
the United States. Payments are to be made at such place as Payee or the legal holders of this Promissory Note may, from time to
time, in writing appoint, and in the absence of such appointment, then at the place provided in the Notice section of the Purchase
Agreement.

 

6.Applicable
Law. Maker represents and agrees that this instrument and the rights and obligations of all parties hereunder shall be
governed by and construed under the laws of the State of Colorado without regard to the conflicts of law principles.

 

7.Severability.
The parties hereto intend and believe that each provision in this Promissory Note comports with all applicable local, state and
federal laws and judicial decisions. However, if any provision or provisions, or if any portion of any provision or provisions,
of this Promissory Note is found by a court of law to be in violation of any applicable local, state or federal ordinance, statute,
law, administrative or judicial decision, or public policy, and if the court should declare that portion, provision or provisions
to be illegal, invalid, unlawful, void or unenforceable as written, then it is the intent of Maker and Payee that such portion,
provision or provisions be given force to the fullest possible extent that they are legal, valid and enforceable, that the remainder
of this Promissory Note shall be construed as if the illegal, invalid, unlawful, void or unenforceable portion, provision or provisions
were not contained herein, and that the rights, obligations and interest of Maker and Payee or the legal holders hereof under the
remainder of this Promissory Note shall continue in full force and effect.

 

8.Maximum
Interest. Payee and Maker intend to contract in strict compliance with applicable usury law from time to time in effect.
In furtherance thereof Payee and Maker hereby stipulate and agree that none of the terms and provisions contained herein shall
ever be construed to create a contract to pay, for the use, forbearance or detention of money, interest in excess of the maximum
amount of interest permitted to be charged by applicable law from time to time in effect. Neither Maker nor any present or future
guarantors, endorsers, or other Persons hereafter becoming liable for payment of any indebtedness hereunder shall ever be liable
for unearned interest thereon or shall ever be required to pay interest thereon in excess of the maximum amount that may be lawfully
contracted for, charged, or received under applicable law from time to time in effect, and the provisions of this section shall
control over all other provisions hereof which may be in conflict or apparent conflict herewith. Payee expressly disavows any intention
to contract for, charge, collect or receive excessive or unearned interest or finance charges in the event the maturity of any
indebtedness hereunder is accelerated or upon the occurrence of any other event. If the maturity of any indebtedness hereunder
is accelerated for any reason, any such indebtedness is prepaid and as a result any amounts that constitute interest are in excess
of the legal maximum, or Payee or any other holder of any or all of the indebtedness hereunder shall otherwise charge, receive,
or collect, or any Person shall pay, moneys which would otherwise increase the interest on any or all of the indebtedness hereunder
to an amount in excess of that permitted by applicable law then in effect, then all sums that constitute interest in excess of
such legal limit shall, without penalty, be promptly applied to reduce the then outstanding principal of the related indebtedness
or, at Payee’s or holder’s option, promptly returned to Maker or the other payor thereof, as applicable, upon such
determination. In determining whether or not the interest paid or payable, under any specific circumstance, exceeds the maximum
amount permitted under applicable law, Payee and Maker (and any other payors thereof) shall to the greatest extent permitted under
applicable law, characterize any non-principal payment as an expense, fee or premium rather than as interest, exclude voluntary
prepayments and the effects thereof, and amortize, prorate, allocate, and spread the total amount of interest throughout the entire
contemplated term of the instruments evidencing the indebtedness hereunder in accordance with the amounts outstanding from time
to time thereunder and the maximum legal rate of interest from time to time in effect under applicable law in order to lawfully
contract for, charge, collect, or receive the maximum amount of interest permitted under applicable law. As used in this section
the term “applicable law” means the laws of the State of Colorado including the Laws of the United States of America,
as such Laws now exist or may be changed or amended or come into effect in the future.

 

    	 

    	 

    

  

9.Purchase
Agreement. This Promissory Note is the Note referred to in the Purchase Agreement. Payment of this Promissory Note is subject
to the Purchase Agreement and the parties hereto agree that this Promissory Note shall not be effective until the occurrence of
the Closing and the satisfaction of any obligations as specifically set forth in the Purchase Agreement.

 

10.Assignment.
Payee may assign this Promissory Note in whole or in part or any right to the proceeds hereof, provided that Payee gives Maker
prior written notice of any such assignment.

 

11.Notices.
All notices and other communications provided for hereunder shall be in writing (including facsimile communication) and mailed,
telegraphed, telecopied or delivered to the addresses provided for in the Purchase Agreement or, as to each party, at such other
address as designated by that party in a written notice to the other party. All notices and communications shall be deemed to have
been validly served, given or delivered (i) three (3) business days following deposit in the United States mail, with proper postage
prepaid; (ii) upon delivery if delivered by hand to the party to be notified; or (iii) the following day if sent by facsimile transmission.

 

12.Waiver.
Maker and-all parties now or hereafter liable for the payment hereof, whether as endorser, guarantor, surety or otherwise, generally
waive demand, presentment for payment, notice of dishonor, protest and notice of protest, notice of intent to accelerate and notice
of acceleration, and diligence in collecting or bringing suit against any party hereto, and agree to all extensions, renewals,
indulgences, releases or changes which from time to time may be granted by the holder hereof and to all partial payments hereon,
with or without notice before or after maturity.

 

13.Attorney’s
Fees. Should the indebtedness represented by this Promissory Note or any part hereof be collected at law or in equity or
through any bankruptcy, receivership, probate or other court proceedings or if this Promissory Note is placed in the hands of attorneys
for collection after any default, Payee and all endorsers, guarantors and sureties of this Promissory Note jointly and severally
agree to pay to the holder of this Promissory Note in addition to the principal and interest due and payable hereon all the costs
and expenses of said holder in enforcing this Promissory Note including, without limitation, reasonable attorneys’ fees and
legal expenses.

 

14.Collateral.
This Promissory Note is secured by a first lien security interest in all of the collateral described in the Security Agreement.

 

15.Promissory
Note. This Promissory Note shall constitute a modification and a renewal of the Initial Note, and shall supersede the Initial
Note.

 

Time is of the essence as to all dates set
forth herein.

 

[Signature page
follows]

 

    	 

    	 

    

 

 

Maker has executed
and delivered this Promissory Note as of the day and year first set forth above.

 

 

	MAKER:	HARD ROCK SOLUTIONS, LLC	 
	 	a Utah limited liability company	 
	 	 	 
	 	By Its Manager:	 
	 	Superior Drilling Solutions, LLC f/k/a Superior Drilling
Products, LLC,	 
	 	a Utah limited liability company	 
	 	 	 
	 	By: /s/ Troy Meier	 
	 	Troy Meier, President	 
	 	 	 
	 	 	 
	 	SUPERIOR DRILLING SOLUTIONS, LLC f/k/a Superior Drilling
Products, LLC,	 
	 	 	 
	 	a Utah limited liability company	 
	 	 	 
	 	By: /s/ Troy Meier	 
	 	Troy Meier, President	 
	 	 	 
	AGREED TO AND ACCEPTED on this 22nd day of April, 2015.	 	 
	 	WMAFC, INC. f/k/a HARD ROCK SOLUTIONS, INC.,	 
	 	a Texas corporation	 
	 	 	 
	 	By: /s/ James D. Isenhour	 
	 	James D. Isenhour, PresidentExhibit 10.1

 

CROSSROADS SYSTEMS, INC.

 

2010 STOCK INCENTIVE PLAN, AS AMENDED

 

Section
1.              PURPOSE

 

1.1           Purpose.
The purpose of the Crossroads Systems, Inc. 2010 Stock Incentive Plan, as amended (the “Plan”) is to
provide a means through which Crossroads Systems, Inc. (the “Company”) may attract able persons to serve as
employees, directors, or consultants of the Company or its subsidiaries and to provide a means whereby those individuals upon whom
the responsibilities of the successful administration and management of the Company rest, and whose present and potential contributions
to the welfare of the Company are of importance, may acquire and maintain stock ownership, thereby strengthening their concern
for the welfare of the Company. A further purpose of the Plan is to provide such individuals with additional incentive and reward
opportunities designed to enhance the profitable growth of the Company. Accordingly, the Plan provides for granting Incentive Stock
Options, options that do not constitute Incentive Stock Options, Restricted Stock Awards, or any combination of the foregoing,
as is best suited to the circumstances of the particular employee, consultant, or director as provided in the Plan.

 

Section
2.              DEFINITIONS

 

2.1           Definitions.
Whenever the following capitalized words or phrases are used, the following definitions will be applicable throughout the Plan,
unless specifically modified by any Section:

 

(a)          “Affiliate”
means, with respect to any person, any other person directly or indirectly controlling, controlled by, or under common control
with such other person.

 

(b)          “Award”
means, individually or collectively, any Option or Restricted Stock Award.

 

(c)          “Board”
means the board of directors of the Company.

 

(d)          “Change
of Control Value” means the amount determined in accordance with Section 9.4.

 

(e)          “Code”
means the Internal Revenue Code of 1986, as amended. Reference in the Plan to any section of the Code will be deemed to include
any amendments or successor provisions to such section and any regulations under such section.

 

(f)          “Committee”
means a committee of the Board that is selected by the Board as provided in Section 4.1.

 

(g)          “Common
Stock” means the common stock, $0.001 par value, of the Company or any security into which such common stock may
be changed by reason of any transaction or event of the type described in Section 9.

 

(h)          “Company”
means Crossroads Systems, Inc., a Delaware corporation.

 

(i)          “Consultant”
means any person who is not an Employee or Director and who is providing services to the Company or any parent or subsidiary corporation
(as defined in section 424 of the Code) as an advisor, consultant, or other non-common law employee.

 

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(j)          “Corporate
Change” means either (i) the Company will not be the surviving entity in any merger, share exchange, or consolidation
(or survives only as a subsidiary of an entity), (ii) the Company sells, leases, or exchanges, or agrees to sell, lease, or exchange,
all or substantially all of its assets to any other person or entity, (iii) the Company is to be dissolved and liquidated, (iv)
any person or entity, including a “group” as contemplated by Section 13(d)(3) of the 1934 Act, acquires or gains ownership
or control (including, without limitation, power to vote) of more than 50% of the outstanding shares of the Company’s voting
stock (based upon voting power), or (v) at such time as the Company becomes a reporting company under the 1934 Act, as a result
of or in connection with a contested election of Directors, the persons who were Directors of the Company before such election
will cease to constitute a majority of the Board; provided, however, that a Corporate Change will not include (A)
any reorganization, merger, consolidation, sale, lease, exchange, or similar transaction, which involves solely the Company and
one or more entities wholly-owned, directly or indirectly, by the Company immediately prior to such event or (B) the consummation
of any transaction or series of integrated transactions immediately following which the record holders of the voting stock of the
Company immediately prior to such transaction or series of transactions continue to hold 50% or more of the voting stock (based
upon voting power) of (1) any entity that owns, directly or indirectly, the stock of the Company, (2) any entity with which the
Company has merged, or (3) any entity that owns an entity with which the Company has merged.

 

(k)          “Director”
means (i) an individual elected to the Board by the stockholders of the Company or by the Board under applicable corporate law
who either is serving on the Board on the date the Plan is adopted by the Board or is elected to the Board after such date and
(ii) for purposes of and relating to eligibility for the grant of an Award, an individual elected to the board of directors of
any parent or subsidiary corporation (as defined in section 424 of the Code) of the Company.

 

(l)          “Employee”
means any person in an employment relationship with the Company or any parent or subsidiary corporation (as defined in section
424 of the Code).

 

(m)          “Fair
Market Value” means, as of any specified date, (i) the mean of the high and low sales prices of the Common Stock
either (A) if the Common Stock is traded on the National Market System of the NASDAQ, as reported on the National Market System
of NASDAQ on that date (or if no sales occur on that date, on the last preceding date on which such sales of the Common Stock are
so reported), or (B) if the Common Stock is listed on a national securities exchange, as reported on the stock exchange composite
tape on that date (or if no sales occur on that date, on the last preceding date on which such sales of the Common Stock are so
reported); (ii) if the Common Stock is not traded on the National Market System of the NASDAQ or a national securities exchange
but is traded over the counter at the time a determination of its fair market value is required to be made under the Plan, the
average between the reported high and low or closing bid and asked prices of Common Stock on the most recent date on which Common
Stock was publicly traded; (iii) in the event Common Stock is not publicly traded at the time a determination of its value is required
to be made under the Plan, the amount determined by the Committee in its discretion through the reasonable application of a reasonable
valuation method that considers applicable factors affecting market value and all information available as of the valuation date;
or (iv) on the date of an initial public offering of common stock, the offering price under such initial public offering. In its
determination of Fair Market Value, the Board may use an independent appraisal that meets the requirements of Code Section 401(a)(28)(c)
and the regulations thereunder, as long as such appraisal is as of a date that is no more than 12 months before the date of the
Board’s determination.

 

(n)          “Forfeiture
Restrictions” will have the meaning assigned to such term in Section 8.2.

 

(o)          “Holder”
means an Employee, Consultant, or Director who has been granted an Award.

 

(p)          “Incentive
Stock Option” means an incentive stock option within the meaning of section 422 of the Code.

 

(q)          “1934
Act” means the Securities Exchange Act of 1934, as amended.

 

(r)          “Nonstatutory
Stock Option” means Options that do not constitute Incentive Stock Options.

 

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(s)          “Option”
means an Award granted under Section 7 and includes both Incentive Stock Options and options that do not constitute
Incentive Stock Options.

 

(t)          “Option
Agreement” means a written agreement between the Company and a Holder with respect to an Option, including the accompanying
“Notice of Grant of Stock Option.”

 

(u)          “Plan”
means the Crossroads Systems, Inc. 2010 Stock Incentive Plan, as amended from time to time.

 

(v)         “Restricted
Stock Agreement” means a written agreement between the Company and a Holder with respect to a Restricted Stock Award.

 

(w)          “Restricted
Stock Award” means an Award granted under Section 8.

 

(x)          “Rule
16b-3” means SEC Rule 16b-3 promulgated under the 1934 Act, as such may be amended from time to time, and any successor
rule, regulation, or statute fulfilling the same or a similar function.

 

2.2           Number
and Gender. Wherever appropriate in the Plan, words used in the singular will be considered to include the plural, and
words used in the plural will be considered to include the singular. The masculine gender, where appearing in the Plan, will be
deemed to include the feminine gender.

 

2.3           Headings.
The headings of Sections and Subsections in the Plan are included solely for convenience, and, if there is any conflict between
such headings and the text of the Plan, the text will control. All references to Sections and Subsections are to this document
unless otherwise indicated.

 

Section
3.              EFFECTIVE DATE AND DURATION OF THE PLAN

 

3.1           Effective
Date. The Plan will become effective upon the date of its adoption by the Board, provided that the Plan is approved by
the stockholders of the Company within 12 months after such adoption. Notwithstanding any provision in the Plan, in any Option
Agreement, or in any Restricted Stock Agreement, no Option will be exercisable and no Restricted Stock Award will vest prior to
such stockholder approval.

 

3.2           Duration
of Plan. No further Awards may be granted under the Plan after ten years from the date the Plan is adopted by the Board.
The Plan will remain in effect until all Options granted under the Plan have been exercised, forfeited, assumed, substituted, satisfied
or expired and all Restricted Stock Awards granted under the Plan have vested or been forfeited.

 

Section
4.              ADMINISTRATION

 

4.1           Composition
of Committee. The Plan will be administered by a committee of, and appointed by, the Board. In the absence of the Board’s
appointment of such Committee to administer the Plan, the Board will serve as the Committee. Notwithstanding the foregoing, from
and after the date upon which the Company becomes a “publicly held corporation” (as defined in section 162(m) of the
Code and applicable interpretive authority under the Code), the Plan will be administered by a committee of, and appointed by,
the Board that will be comprised solely of two or more outside Directors (within the meaning of the term “outside directors”
as used in section 162(m) of the Code and applicable interpretive authority under the Code and within the meaning of “Non-Employee
Director” as defined in Rule 16b-3).

 

4.2           Powers.
Subject to the express provisions of the Plan, the Committee will have authority, in its discretion, to determine which Employees,
Consultants, or Directors will receive an Award, the time or times when such Award will be made, whether an Incentive Stock Option
or Nonstatutory Stock Option will be granted, and the number of shares to be subject to each Option or Restricted Stock Award.
In making such determinations, the Committee will take into account the nature of the services rendered by the respective Employees,
Consultants, or Directors, their present and potential contribution to the Company’s success, and such other factors as the
Committee in its discretion will deem relevant.

 

    	C-3

    	 

    

 

4.3           Additional
Powers. The Committee will have such additional powers as are delegated to it by the other provisions of the Plan. Subject
to the express provisions of the Plan, this will include the power (1) to construe the Plan and the respective agreements executed
under the Plan, (2) to prescribe rules and regulations relating to the Plan, (3) to determine the terms, restrictions, and provisions
of the agreement relating to each Award, including such terms, restrictions, and provisions as will be requisite in the judgment
of the Committee to cause designated Options to qualify as Incentive Stock Options, and (4) to make all other determinations necessary
or advisable for administering the Plan. The Committee may correct any defect, supply any omission, or reconcile any inconsistency
in the Plan or in any agreement relating to an Award in the manner and to the extent it will deem expedient to carry it into effect.
The determinations of the Committee on the matters referred to in this Section will be conclusive and binding on all persons.

 

4.4           Limitation
of Liability. The Committee and each member thereof shall be entitled to, in good faith, rely or act upon any report or
other information furnished to him or her by any officer or employee of the Company or an Affiliate, the Company’s legal
counsel, independent auditors, consultants or any other agents assisting in the administration of this Plan. Members of the Committee
and any officer or employee of the Company or an Affiliate acting at the direction or on behalf of the Committee shall not be personally
liable for any action or determination taken or made in good faith with respect to this Plan, and shall, to the fullest extent
permitted by law, be indemnified and held harmless by the Company with respect to any such action or determination.

 

Section
5.              STOCK SUBJECT TO THE PLAN

 

5.1           Stock
Offered. Subject to the limitations set forth in Section 5.2, the stock to be offered pursuant to the grant
of an Award may be (1) authorized but unissued Common Stock or (2) previously issued and outstanding Common Stock reacquired by
the Company. Any of such shares that remain unissued and are not subject to outstanding Awards at the termination of the Plan will
cease to be subject to the Plan, but until termination of the Plan the Committee will at all times make available a sufficient
number of shares to meet the requirements of the Plan.

 

5.2           Plan
and Individual Limitations on Shares. Subject to adjustment as provided in Section 9 with respect to shares
of Common Stock subject to Options then outstanding, the aggregate number of shares of Common Stock that may be issued under the
Plan will not exceed 5,250,000 shares, and in order that the applicable regulations under the Code relating to Incentive Stock
Options be satisfied, the maximum number of shares of Common Stock that may be delivered upon exercise of Incentive Stock Options
shall be 5,250,000, as adjusted under Section 9. Notwithstanding
any provision herein to the contrary, the maximum number of shares of Common Stock with respect to one or more Awards that may
be granted to any one Holder during each calendar year shall be 500,000, provided that in no event shall any Holder receive one
or more Awards of Restricted Stock in excess of 250,000 shares of Common Stock. Shares will be deemed to have been issued
under the Plan only (1) to the extent actually issued and delivered pursuant to an Award or (2) to the extent an Award is settled
in cash. To the extent that an Award lapses or the rights of its Holder terminate, any shares of Common Stock subject to such Award
will again be available for the grant of an Award. From and after the date upon which the Company becomes a “publicly held
corporation” (as defined in section 162(m) of the Code and applicable interpretive authority under the Code), the limitation
set forth in the preceding sentences will be applied in a manner that will permit compensation generated under the Plan to constitute
“performance-based” compensation for purposes of section 162(m) of the Code, including, without limitation, counting
against such maximum number of shares, to the extent required under section 162(m) of the Code and applicable interpretative authority
under the Code, any shares subject to Options that are canceled or repriced.

 

Section
6.              GRANT OF AWARDS

 

6.1           Eligibility
for Award. Awards may be granted only to persons who, at the time of grant, are Employees, Consultants, or Directors.

 

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6.2          Grant
of Awards. The Committee may from time to time in its discretion grant Awards to one or more Employees, Consultants, or
Directors determined by it to be eligible for participation in the Plan in accordance with the provisions of Section 6.1.
An Award may be granted on more than one occasion to the same person, and, subject to the limitations set forth in the Plan, such
Award may include an Incentive Stock Option, a Nonstatutory Stock Option, a Restricted Stock Award, or any combination thereof.

 

Section
7.             STOCK OPTIONS

 

7.1          Option
Period. The term of each Option will be as specified by the Committee at the date of grant.

 

7.2          Limitations
on Vesting and/or Exercise of Option. An Option will be vested and/or exercisable in whole or in part and at such times
as determined by the Committee and set forth in the Notice of Grant and Option Agreement; provided, however, that any Options granted
under the Plan will be subject to a one-year minimum vesting period (except as provided in Section 9.3). The Committee in
its discretion may provide that an Option will be vested or exercisable upon (1) the attainment of one or more performance goals
or targets established by the Committee, which are based on (i) the price of a share of Common Stock, (ii) the Company’s
earnings per share, (iii) the Company’s market share, (iv) the market share of a business unit of the Company designated
by the Committee, (v) the Company’s sales, (vi) the sales of a business unit of the Company designated by the Committee,
(vii) the net income (before or after taxes) of the Company or a business unit of the Company designated by the Committee, (viii)
the cash flow return on investment of the Company or any business unit of the Company designated by the Committee, (ix) the earnings
before or after interest, taxes, depreciation, and/or amortization of the Company or any business unit of the Company designated
by the Committee, (x) the economic value added, or (xi) the return on stockholders’ equity achieved by the Company; (2) the
Holder’s continued employment as an Employee with the Company or continued service as a Consultant or Director for a specified
period of time; (3) the occurrence of any event or the satisfaction of any other condition specified by the Committee in its sole
discretion; or (4) a combination of any of the foregoing. Each Option may, in the discretion of the Committee, have different provisions
with respect to vesting and/or exercise of the Option.

 

7.3          Special
Limitations on Incentive Stock Options.

 

(a)          An
Incentive Stock Option may be granted only to an individual who is an Employee at the time the Option is granted.

 

(b)          No
Incentive Stock Option will be granted to an individual if, at the time the Option is granted, such individual owns stock possessing
more than 10% of the total combined voting power of all classes of stock of the Company or of its parent or subsidiary corporation,
within the meaning of section 422(b)(6) of the Code, unless (1) at the time such Option is granted the option price is at least
110% of the Fair Market Value of the Common Stock subject to the Option and (2) such Option by its terms is not exercisable after
the expiration of five years from the date of grant.

 

(c)          If
an Option is designated as an Incentive Stock Option in the Notice of Grant of Stock Option, to the extent that such Option (together
with all Incentive Stock Options granted to the Optionee under the Plan and all other stock option plans of the Company and its
parent and subsidiaries) becomes exercisable for the first time during any calendar year for shares having a Fair Market Value
greater than $100,000, the portion of each such Incentive Stock Option that exceeds such amount will be treated as a Nonstatutory
Stock Option. For purposes of this Subsection, Options designated as Incentive Stock Options are taken into account in the order
in which they were granted, and the Fair Market Value of Common Stock is determined as of the time the Option with respect to such
Common Stock is granted. If the Code is amended to provide for a different limitation from that set forth in this Subsection, such
different limitation will be deemed incorporated in the Plan effective as of the date required or permitted by such amendment to
the Code. If the Option is treated as an Incentive Stock Option in part and as a Nonstatutory Stock Option in part by reason of
the limitation set forth in this Subsection, the Optionee may designate which portion of such Option the Optionee is exercising.
In the absence of such designation, the Optionee will be deemed to have exercised the Incentive Stock Option portion of the Option
first. Separate certificates representing each such portion will be issued upon the exercise of the Option.

 

    	C-5

    	 

    

 

(d)          An
Incentive Stock Option (1) will not be transferable otherwise than by will or the laws of descent and distribution and (2) will
be exercisable during the Holder’s lifetime only by such Holder or his guardian or legal representative.

 

(e)          The
price at which a share of Common Stock may be purchased upon exercise of an Incentive Stock Option will not be less than 100% of
the Fair Market Value of a share of Common Stock on the date such Option is granted.

 

7.4          Option
Agreement.

 

(a)          Each
Option will be evidenced by an Option Agreement in such form and containing such provisions not inconsistent with the provisions
of the Plan as the Committee from time to time will approve, including, without limitation, provisions to qualify an Incentive
Stock Option under section 422 of the Code and provisions relating to vesting and exercisability, including, but not limited to,
rules pertaining to the termination of employment or service as a Consultant or Director by retirement, disability, death or otherwise.
The terms and conditions of the Options and respective Option Agreements need not be identical. Subject to the consent of the Holder,
the Committee may, in its sole discretion, amend an outstanding Option Agreement from time to time in any manner that is not inconsistent
with the provisions of the Plan (including, without limitation, an amendment that accelerates the time at which the Option, or
a portion of the Option, may be exercisable, provided, however, that no Option may be amended to provide for a period of less than
one year from date of grant (except as provided in Section 9.3)).

 

(b)          Each
Option Agreement will specify the effect of termination of (1) employment, (2) the consulting, advisory, or other non-common law
employee relationship, or (3) membership on the Board, as applicable, on the vesting and/or exercisability of the Option.

 

(c)          An
Option Agreement may provide for the payment of the option price, in whole or in part, by the delivery of a number of shares of
Common Stock (plus cash if necessary) having a Fair Market Value equal to such option price. Moreover, an Option Agreement may
provide for a “cashless exercise” of the Option through procedures satisfactory to, and approved by and
in the sole discretion of, the Committee. Generally, and without limiting the Committee’s absolute discretion, a “cashless
exercise” will only be permitted at such times in which the shares underlying this Option are publicly traded.

 

7.5          Option
Price, Payment, and Exercise. Subject to Subsection 7.3(b) with respect to Incentive Stock Options, the price
at which a share of Common Stock may be purchased upon exercise of an Option will be determined by the Committee, but in no event
will the price be less than 100% of the Fair Market Value of a share of Common Stock on the date such Option is granted. The Option
or portion of the Option may be exercised by delivery of an irrevocable notice of exercise to the Secretary of the Company, except
as may otherwise be provided in the Option Agreement. The purchase price of the Option or portion of the Option will be paid in
full in the manner prescribed by the Committee. Separate stock certificates will be issued by the Company for those shares acquired
pursuant to the exercise of an Incentive Stock Option and for those shares acquired pursuant to the exercise of a Nonstatutory
Stock Option.

 

7.6          Repricing
Prohibited. Except in connection with an adjustment as provided in Section 9, the Committee may not authorize
the amendment of an outstanding Option to reduce the per share exercise price of the shares subject to such Option below the per
share exercise price as of the date of grant, and no outstanding Option may be exchanged for Options having a lower exercise price,
in each case without stockholder approval.

 

7.7          Stockholder
Rights and Privileges. The Holder will be entitled to all the privileges and rights of a stockholder only with respect
to such shares of Common Stock as have been purchased under the Option and for which certificates of stock have been registered
in the Holder’s name.

 

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7.8           Options
and Rights in Substitution for Stock Options Granted by Other Corporations. Options may be granted under the Plan from
time to time in substitution for stock options held by individuals employed by corporations who become Employees, Consultants,
or Directors as a result of a merger, consolidation, or other business combination of the employing corporation with the Company
or any subsidiary.

 

Section
8.              RESTRICTED STOCK AWARDS

 

8.1           Restricted
Stock Agreement. At the time any Award is made under this Section, the Company and the Holder will enter into a Restricted
Stock Agreement setting forth each of the matters contemplated by the Plan and such other matters as the Committee may determine
to be appropriate. The terms and provisions of the respective Restricted Stock Agreements need not be identical.

 

8.2           Forfeiture
Restrictions. Shares of Common Stock that are the subject of a Restricted Stock Award will be subject to restrictions on
disposition by the Holder and an obligation of the Holder to forfeit and surrender the shares to the Company under certain circumstances
(the “Forfeiture Restrictions”). The Forfeiture Restrictions will be determined by the Committee in its sole
discretion, and the Committee may provide that the Forfeiture Restrictions will lapse upon (1) the attainment of one or more performance
goals or targets established by the Committee, which are based on (i) the price of a share of Common Stock, (ii) the Company’s
earnings per share, (iii) the Company’s market share, (iv) the market share of a business unit of the Company designated
by the Committee, (v) the Company’s sales, (vi) the sales of a business unit of the Company designated by the Committee,
(vii) the net income (before or after taxes) of the Company or a business unit of the Company designated by the Committee, (viii)
the cash flow return on investment of the Company or any business unit of the Company designated by the Committee, (ix) the earnings
before or after interest, taxes, depreciation, and/or amortization of the Company or any business unit of the Company designated
by the Committee, (x) the economic value added, or (xi) the return on stockholders’ equity achieved by the Company; (2) the
Holder’s continued employment as an Employee with the Company or continued service as a Consultant or Director for a specified
period of time; (3) the occurrence of any event or the satisfaction of any other condition specified by the Committee in its sole
discretion; or (4) a combination of any of the foregoing; provided, however, that such Forfeiture Restrictions will remain in place
for a minimum one-year vesting period before lapsing (except as provided in Section 9.3). Each Restricted Stock Award may,
in the discretion of the Committee, have different Forfeiture Restrictions.

 

8.3           Other
Terms and Conditions. Common Stock awarded pursuant to a Restricted Stock Award will be represented by a stock certificate
registered in the name of the Holder of such Restricted Stock Award. Unless otherwise provided in the Restricted Stock Agreement,
the Holder will have the right to receive dividends with respect to Common Stock subject to a Restricted Stock Award, to vote Common
Stock subject to such Restricted Stock Agreement, and to enjoy all other stockholder rights, except that (1) the Holder will not
be entitled to delivery of the stock certificate until the Forfeiture Restrictions have lapsed, (2) the Company will retain custody
of the stock until the Forfeiture Restrictions have lapsed, (3) the Holder may not sell, transfer, pledge, exchange, hypothecate,
or otherwise dispose of the stock until the Forfeiture Restrictions have lapsed, and (4) a breach of the terms and conditions established
by the Committee pursuant to the Restricted Stock Agreement will cause a forfeiture of the Restricted Stock Award. At the time
of such Award, the Committee may, in its sole discretion, prescribe additional terms, conditions, or restrictions relating to Restricted
Stock Awards, including, but not limited to, rules pertaining to the termination of employment or service as a Consultant or Director
(by retirement, disability, death, or otherwise) of a Holder prior to lapse of the Forfeitures Restrictions. Such
additional terms, conditions, or restrictions will be set forth in the Restricted Stock Agreement made in conjunction with the
Award. Subject to the consent of the Holder and the restriction set forth in the last sentence of Section 8.4 below,
the Committee may, in its sole discretion, amend an outstanding Restricted Stock Agreement from time to time in any manner that
is not inconsistent with the provisions of the Plan.

 

8.4           Committee’s
Discretion to Accelerate Vesting of Restricted Stock Awards. The Committee may, in its discretion and as of a date determined
by the Committee, fully vest any or all Common Stock awarded to a Holder pursuant to a Restricted Stock Award, and, upon such vesting,
all restrictions applicable to such Restricted Stock Award will lapse as of such date provided that the Committee shall not fully
vest any Common Stock awarded to a holder pursuant to a Restricted Stock Award such that the vesting period shall be less than
a minimum of one-year from the date of grant (except as provided in Section 9.3). Any action by the Committee pursuant to
this Section may vary among individual Holders and may vary among the Restricted Stock Awards held by any individual Holder. Notwithstanding
the preceding provisions of this Section, from and after the date upon which the Company becomes a “publicly held corporation”
(as defined in section 162(m) of the Code and applicable interpretive authority under the Code), the Committee may not take any
action described in this Section with respect to a Restricted Stock Award that has been granted after such date to a “covered
employee” (within the meaning of Treasury Regulation section 1.162-27(c)(2)) if such Award has been designed to meet
the exception for performance-based compensation under section 162(m) of the Code.

 

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8.5           Payment
for Restricted Stock. The Committee will determine the amount and form of any payment for Common Stock received pursuant
to a Restricted Stock Award, provided that, in the absence of such a determination, a Holder will not be required to make
any payment for Common Stock received pursuant to a Restricted Stock Award, except to the extent otherwise required by law.

 

Section
9.              RECAPITALIZATION OR REORGANIZATION

 

9.1           No
Effect on Board’s or Stockholders’ Power. The existence of the Plan and the Awards granted under the Plan will
not affect in any way the right or power of the Board or the stockholders of the Company to make or authorize (1) any adjustment,
recapitalization, reorganization, or other change in the Company’s capital structure or its business, (2) any merger, share
exchange, or consolidation of the Company or any subsidiary, (3) any issue of debt or equity securities ranking senior to or affecting
Common Stock or the rights of Common Stock, (4) the dissolution or liquidation of the Company or any subsidiary, (5) any sale,
lease, exchange, or other disposition of all or any part of the Company’s assets or business, or (6) any other corporate
act or proceeding.

 

9.2           Adjustment
in the Event of Stock Subdivision, Consolidation, or Dividend. The shares with respect to which Options may be granted
are shares of Common Stock as presently constituted, but if, and whenever, prior to the expiration of an Option theretofore granted,
the Company shall effect a subdivision or consolidation of shares of Common Stock or the payment of a stock dividend on Common
Stock without receipt of consideration by the Company, the number of shares of Common Stock with respect to which such Option may
thereafter be exercised (1) in the event of an increase in the number of outstanding shares, will be proportionately increased,
and the purchase price per share will be proportionately reduced, and (2) in the event of a reduction in the number of outstanding
shares, will be proportionately reduced, and the purchase price per share will be proportionately increased, without changing the
aggregate purchase price or value as to which outstanding Awards remain exercisable or subject to restrictions. No fractional share
resulting from such adjustment shall be issued under the Plan.

 

9.3           Adjustment
in the Event of Recapitalization or Corporate Change.

 

 (a)          If
the Company recapitalizes, reclassifies its capital stock, or otherwise changes its capital structure (a “recapitalization”),
the number and class of shares of Common Stock covered by an Award theretofore granted will be adjusted so that such Option will
thereafter cover the number and class of shares of stock and securities to which the Holder would have been entitled pursuant to
the terms of the recapitalization if, immediately prior to the recapitalization, the Holder had been the holder of record of the
number of shares of Common Stock then covered by such Award.

 

 (b)          If
a Corporate Change occurs, then no later than (1) 10 days after the approval by the stockholders of the Company of a Corporate
Change, other than a Corporate Change resulting from a person or entity acquiring or gaining ownership or control of more than
50% of the outstanding shares of the Company’s voting stock, or (2) 30 days after a Corporate Change resulting from a person
or entity acquiring or gaining ownership or control of more than 50% of the outstanding shares of the Company’s voting stock,
the Committee, acting in its sole discretion and without the consent or approval of any Holder and notwithstanding any provision
of the Plan to the contrary, will effect one or more of the following alternatives, which alternatives may vary among individual
Holders and which may vary among Awards held by any individual Holder:

 

(i)          Accelerate
the vesting of any Awards (or any portion of any Award) then outstanding;

 

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(ii)         Accelerate
the time at which some or all of the Options (or any portion of the Options) then outstanding may be exercised so that such Options
(or any portion of such Options) may be exercised for a limited period of time on or before a specified date (before or after such
Corporate Change) fixed by the Committee, after which specified date all unexercised Options and all rights of Holders under such
Options will terminate;

 

(iii)        Require
the mandatory surrender to the Company by selected Holders of some or all of the outstanding Options (or any portion of such Options)
held by such Holders (irrespective of whether such Options (or any portion of such Options) are then vested or exercisable under
the provisions of the Plan) as of a date, before or after such Corporate Change, specified by the Committee, in which event the
Committee will then cancel such Options (or any portion of such Options) and cause the Company to pay each Holder an amount of
cash per share equal to the excess, if any, of the Change of Control Value of the shares subject to such Option over the exercise
price(s) under such Options for such shares;

 

(iv)        Make
such adjustments to Awards (or any portion of such Options) then outstanding as the Committee deems appropriate to reflect such
Corporate Change (provided, however, that the Committee may determine in its sole discretion that no adjustment is
necessary to one or more Awards (or any portion of such Awards) then outstanding); or

 

(v)         Provide
that the number and class of shares of Common Stock covered by an Option (or any portion of such Option) theretofore granted will
be adjusted so that such Option will thereafter cover the number and class of shares of stock or other securities or property (including,
without limitation, cash) to which the Holder would have been entitled pursuant to the terms of the agreement of merger, consolidation,
or sale of assets or dissolution if, immediately prior to such merger, consolidation, or sale of assets or dissolution, the Holder
had been the holder of record of the number of shares of Common Stock then covered by such Option.

 

9.4           Change
of Control Value. For purposes of Subsection 9.3(b)(iii) above, the “Change of Control Value” will equal
the amount determined in one of the following clauses, whichever is applicable:

 

 (a)          The
per share price offered to stockholders of the Company in any such merger, consolidation, sale of assets, or dissolution transaction;

 

 (b)          The
price per share offered to stockholders of the Company in any tender offer or exchange offer whereby a Corporate Change takes place;
or

 

 (c)          If
such Corporate Change occurs other than pursuant to a tender or exchange offer, the fair market value per share of the shares into
which such Options being surrendered are exercisable, as determined by the Committee as of the date determined by the Committee
to be the date of cancellation and surrender of such Options.

 

In the event that the consideration offered
to stockholders of the Company in any transaction described in this Section or in Section 9.3 above consists of anything
other than cash, the Committee will determine in its discretion the fair cash equivalent of the portion of the consideration offered
that is other than cash.

 

9.5           Other
Adjustments. In the event of changes in the outstanding Common Stock by reason of recapitalizations, mergers, consolidations,
reorganizations, liquidations, combinations, split-ups, split-offs, spin-offs, exchanges, issuances of rights or warrants, or other
relevant changes in capitalization or distributions to the holders of Common Stock occurring after the date of grant of any Award
and not otherwise provided for by this Section, (1) such Award and any agreement evidencing such Award shall be adjusted by the
Committee as it deems appropriate as to the number and price of shares of Common Stock or other consideration subject to such Award,
without changing the aggregate purchase price or value as to which outstanding Awards remain, and (2) the aggregate number of shares
available under the Plan and the maximum number of shares that may be subject to Awards to any one individual shall be adjusted
by the Committee as it deems appropriate, whose determination with respect to the adjustment shall be conclusive and binding on
all parties.

 

    	C-9

    	 

    

9.6           Stockholder
Action. If any event giving rise to an adjustment provided for in this Section requires stockholder action, such adjustment
will not be effective until such stockholder action has been taken.

 

9.7           No
Adjustment Except as Provided in the Plan. Except as expressly provided in the Plan, the issuance by the Company of shares
of stock of any class or securities convertible into shares of stock of any class for cash, property, labor, or services, upon
direct sale, upon the exercise of rights or warrants to subscribe for such shares or other securities, or upon conversion of shares
or obligations of the Company convertible into such shares or other securities, and in any case whether or not for fair value,
will not affect, and no adjustment by reason thereof will be made with respect to, the number of shares of Common Stock subject
to Awards theretofore granted or the purchase price per share, if applicable.

 

Section
10.            AMENDMENT AND TERMINATION OF THE PLAN

 

10.1         Termination
of Plan. The Board in its discretion may terminate the Plan at any time with respect to any shares of Common Stock for
which Awards have not theretofore been granted. In the absence of Board action, the Plan will terminate ten years from the effective
date.

 

10.2         Amendment
of Plan. The Board will have the right to alter or amend the Plan or any part of the Plan from time to time; provided that
no change in any Award theretofore granted may be made that would impair in a material manner the rights of the Holder without
the consent of the Holder; and provided, further, that the Board may not, without approval of the stockholders, amend
the Plan to (1) increase the maximum aggregate number of shares that may be issued under the Plan (other than as provided in Section
9); (2) change the class of individuals eligible to receive Awards under the Plan; (3) change the granting corporation; (4)
change the type of stock; (5) permit the Committee to extend the exercise period for an Option beyond ten (10) years from date
of grant; or (6) otherwise modify the Plan in a manner that would require shareholder approval under applicable exchange rules.

 

Section
11.           MISCELLANEOUS

 

11.1         No
Right To An Award. Neither the adoption of the Plan nor any action of the Board or of the Committee will be deemed to give
an Employee, Consultant, or Director any right to be granted an Option, any right to a Restricted Stock Award, or any other rights
under the Plan except as may be evidenced by an Option Agreement or a Restricted Stock Agreement duly executed on behalf of the
Company, and then only to the extent and on the terms and conditions expressly set forth in such Agreement.

 

11.2         Unfunded
Plan. The Plan will be unfunded. The Company will not be required to establish any special or separate fund or to make
any other segregation of funds or assets to insure the payment of any Award.

 

11.3         No
Employment/Consulting/Membership Rights Conferred. Nothing contained in the Plan will (1) confer upon any Employee or Consultant
any right with respect to continuation of employment or of a consulting, advisory, or other non-common law relationship with the
Company or any subsidiary or (2) interfere in any way with the right of the Company or any subsidiary to terminate any Employee’s
employment or any Consultant’s consulting, advisory, or other non-common law relationship at any time. Nothing contained
in the Plan will confer upon any Director any right with respect to continuation of membership on the Board.

 

11.4         Compliance
with Other Laws. The Company will not be obligated to issue any Common Stock pursuant to any Award granted under the Plan
at any time when the shares covered by such Award have not been registered under the Securities Act of 1933, as amended, and such
other state and federal laws, rules, or regulations as the Company or the Committee deems applicable and, in the opinion of legal
counsel to the Company, there is no exemption from the registration requirements of such laws, rules, or regulations available
for the issuance and sale of such shares. No fractional shares of Common Stock will be delivered, nor will any cash in lieu of
fractional shares be paid.

 

    	C-10

    	 

    

11.5         Withholding.
The Company will have the right to deduct or cause to be deducted in connection with all Awards any taxes required by law to be
withheld and to require any payments required to satisfy applicable withholding obligations.

 

11.6         No
Restriction on Corporate Action. Nothing contained in the Plan will be construed to prevent the Company or any subsidiary
from taking any corporate action that is deemed by the Company or such subsidiary to be appropriate or in its best interest, whether
or not such action would have an adverse effect on the Plan or any Award made under the Plan. No Employee, Consultant, Director,
beneficiary, or other person will have any claim against the Company or any subsidiary as a result of any such action.

 

11.7         Restrictions
on Transfer. An Award (other than an Incentive Stock Option, which will be subject to the transfer restrictions set forth
in Section 7.3) will not be transferable otherwise than (1) by will or the laws of descent and distribution or (2)
with the consent of the Committee.

 

11.8         Governing
Law. The Plan will be construed in accordance with the laws of the state of Delaware.

 

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