0001654954-17-003384.txt : 20170417
20170417170558
S-1
S-1
S-1
000165495417003384
16
WRAP TECHNOLOGIES, INC.
>0001654954-17-003384.hdr.sgml : 20170417
20170417
<SEC-HEADER>0001654954-17-003384.hdr.sgml : 20170417
<ACCEPTANCE-DATETIME>20170417170558
ACCESSION NUMBER:		0001654954-17-003384
CONFORMED SUBMISSION TYPE:	S-1
PUBLIC DOCUMENT COUNT:		16
FILED AS OF DATE:		20170417

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			WRAP TECHNOLOGIES, INC.
		CENTRAL INDEX KEY:			0001702924
		IRS NUMBER:				980551945
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-1
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-217340
		FILM NUMBER:		17765194

	BUSINESS ADDRESS:	
		STREET 1:		4620 ARVILLE STREET, STE E
		CITY:			LAS VEGAS
		STATE:			NV
		ZIP:			89103
		BUSINESS PHONE:		800-583-2652

	MAIL ADDRESS:	
		STREET 1:		4620 ARVILLE STREET, STE E
		CITY:			LAS VEGAS
		STATE:			NV
		ZIP:			89103
</SEC-HEADER>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>7
<FILENAME>ex10-2.htm
<DESCRIPTION>2017 EQUITY COMPENSATION PLAN
<TEXT>
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<title>ex10-2</title>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Exhibit 10.2</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
</font><font style="font-size: 15px"><font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman;">WRAP
TECHNOLOGIES, INC.</font></font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 15px"><font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
<font style="font-size: 15px">2017 Equity Compensation
Plan</font></font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
1.&#xA0;&#xA0;&#xA0;&#xA0;Purposes.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a)&#xA0; Eligible Stock Award
Recipients</font>.&#xA0;&#xA0;The persons eligible to receive Stock
Awards are the Employees, Directors and Consultants of the Company
and its Affiliates.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Available Stock
Awards</font>.&#xA0;&#xA0;The purpose of the Plan is to provide a
means by which eligible recipients of Stock Awards may be given an
opportunity to benefit from increases in value of the Common Stock
through the granting of the following Stock Awards: (i)&#xA0;Stock
Options, (iii)&#xA0;Common Stock, (iv)&#xA0;Restricted Stock, and
(v) Restricted Stock Units.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> General
Purpose</font>.&#xA0;&#xA0;The Company, by means of the Plan, seeks
to retain the services of the group of persons eligible to receive
Stock Awards, to secure and retain the services of new members of
this group and to provide incentives for such persons to exert
maximum efforts for the success of the Company and its
Affiliates.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
2.&#xA0;&#xA0;&#xA0;&#xA0;Definitions.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Affiliate</font>&#x201D;
means any parent corporation or subsidiary corporation of the
Company, whether now or hereafter existing, as those terms are
defined in Sections&#xA0;424(e) and (f), respectively, of the
Code.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Board</font>&#x201D;
means the Board of Directors of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> <font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">&#x201C;Cause&#x201D;</font>
for termination of Continuous Service means there exists (i) a
reasonable and good faith finding by the Company as determined by
it in its sole discretion, of a material and repeated failure of
the Participant to provide his or her full business time and
attention to his reasonably assigned duties for the Company
(including, without limitation, unexcused failure to report for
work) for reasons other than the Participant&#x2019;s death or
disability, or the Participant's gross negligence or willful
misconduct; which failure or deficiency remains uncured (if
curable) for a period of thirty (30) days following written notice
by the Company to the Participant which specifies the reasons for
the potential cause determination; (ii) the material breach by the
Participant of any of the provisions of his or her employment
agreement (if the Participant has an employment agreement with the
Company) for reasons other than the Participant&#x2019;s death or
disability, which breach remains uncured (if curable) for a period
of thirty (30) days following written notice by the Company to the
Participant which specifies the reasons for the potential cause
determination; (iii) the conviction of the Participant of, or the
entry of a pleading of guilty or <font style="text-decoration: underline">nolo</font> <font style="text-decoration: underline">contendere</font> by the Participant
to, any felony; (iv) the Participant having committed any theft,
embezzlement, fraud or other intentional act of dishonesty
involving the business of the Company; or (v) any adjudication in
any civil suit, or written acknowledgment by the Participant in any
agreement or stipulation of the commission of any theft,
embezzlement, fraud or other intentional act of dishonesty
involving any other person.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">(d</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="font-style: italic">
Intentionally Left Blank.</font></font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(e</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> <font style="font-family: Times New Roman; font-size: 13px">&#x201C;<font style="font-weight: bold; font-style: italic">Code</font>&#x201D; means
the Internal Revenue Code of 1986, as amended.&#xA0;&#xA0;Reference
to a specific section of the Code or regulation thereunder shall
include such section or regulation, any valid regulation
promulgated under such section, and any comparable provision of any
future legislation or regulation amending, supplementing or
superseding such section or regulation.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(f</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> <font style="font-family: Times New Roman; font-size: 13px">&#x201C;<font style="font-weight: bold; font-style: italic">Committee</font>&#x201D;
means a committee of one or more members of the Board appointed by
the Board in accordance with subsection&#xA0;3(c).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(g</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> <font style="font-family: Times New Roman; font-size: 13px">&#x201C;<font style="font-weight: bold; font-style: italic">Common Stock</font>&#x201D;
means the common stock of the Company.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-1-</font></div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(h</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Company</font>&#x201D;
means Wrap Technologies, Inc., a Delaware corporation.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(i</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Consultant</font>&#x201D;
means any person, including an advisor, (i)&#xA0;engaged by the
Company or an Affiliate to render consulting or advisory services
and who is compensated for such services or (ii)&#xA0;who is a
member of the Board of Directors of an
Affiliate.&#xA0;&#xA0;However, the term &#x201C;Consultant&#x201D;
shall not include either Directors who are not compensated by the
Company for their services as Directors or Directors who are merely
paid a director&#x2019;s fee by the Company for their services as
Directors.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(j</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Continuous
Service</font>&#x201D; means that the Participant&#x2019;s service
with the Company or an Affiliate, whether as an Employee, Director
or Consultant, is not interrupted or terminated.&#xA0;&#xA0;The
Participant&#x2019;s Continuous Service shall not be deemed to have
terminated merely because of a change in the capacity in which the
Participant renders service to the Company or an Affiliate as an
Employee, Consultant or Director or a change in the entity for
which the Participant renders such service, provided that there is
no interruption or termination of the Participant&#x2019;s
Continuous Service.&#xA0;&#xA0;For example, a change in status from
an Employee of the Company to a Consultant of an Affiliate or a
Director will not constitute an interruption of Continuous
Service.&#xA0;&#xA0;The Board or the chief executive officer of the
Company, in that party&#x2019;s sole discretion, may determine
whether Continuous Service shall be considered interrupted in the
case of any leave of absence approved by that party, including sick
leave, military leave or any other personal leave.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(k</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Covered
Employee</font>&#x201D; means the chief executive officer and the
four (4) other highest compensated officers of the Company for whom
total compensation is required to be reported to stockholders under
the Exchange Act, as determined for purposes of Section&#xA0;162(m)
of the Code.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(l</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Director</font>&#x201D;
means a member of the Board of Directors of the
Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(m</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> <font style="font-family: Times New Roman; font-size: 13px">&#x201C;<font style="font-weight: bold; font-style: italic">Disability</font>&#x201D;
means the permanent and total disability of a person within the
meaning of Section&#xA0;22(e)(3) of the Code.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(n</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Employee</font>&#x201D;
means any person employed by the Company or an
Affiliate.&#xA0;&#xA0;Mere service as a Director or payment of a
director&#x2019;s fee by the Company or an Affiliate shall not be
sufficient to constitute &#x201C;employment&#x201D; by the Company or
an Affiliate.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(o</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Exchange
Act</font>&#x201D; means the Securities Exchange Act of 1934, as
amended.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(p</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Fair
Market Value</font>&#x201D; means, as of any date, the value of the
Common Stock determined as follows:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(i</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> If the Common
Stock is listed on any established stock exchange or traded on a
NASDAQ Capital Market or quoted on the Over the Counter Bulletin
Board, the Fair Market Value of a share of Common Stock shall be
the closing sales price (last trade) for such stock as quoted on
such exchange or market (or the exchange or market with the
greatest volume of trading in the Common Stock) on the last market
trading day prior to the day of determination, as reported in
<font style="font-style: italic">The Wall Street Journal</font> or
such other source as the Board deems reliable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 36px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 60px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> In the absence of
such markets for the Common Stock, the Fair Market Value shall be
determined in good faith by the Board.<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(q</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> <font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">&#x201C;Good
Reason&#x201D;</font><font style="font-weight: bold">&#xA0;</font>means, without the written consent
of the Participant, (i) a material reduction by the Company in the
Participant's duties or position, (ii) a reduction of the
Participant's compensation or benefits as set forth in the
Company&#x2019;s benefits policies as of the date hereof or in
Participant&#x2019;s employment agreement, (iii) the relocation of
the Participant&#x2019;s principal place of employment by more than
50 miles, or (iv) any material breach by the Company of the
Participant&#x2019;s employment agreement, if any. Prior to a
termination of Continuous Service with good reason, the Company
shall have thirty (30) days to cure the deficiency or deficiencies
related to the potential good reason determination.</font></div>
<div style="text-align: justify; margin-left: 0px; text-indent: 24px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-2-</font></div>
</div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(r</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> <font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">&#x201C; Incentive Stock
Option</font><font style="font-style: italic">&#x201D;</font> means
a Stock Option meeting the requirements of Section 421(b) of the
Code<font style="font-style: italic">.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(s</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Non-Employee
Director</font>&#x201D; means a Director who either (i)&#xA0;is not
a current Employee or Officer of the Company or its parent or a
subsidiary, does not receive compensation (directly or indirectly)
from the Company or its parent or a subsidiary for services
rendered as a consultant or in any capacity other than as a
Director (except for an amount as to which disclosure would not be
required under Item 404(a) of Regulation&#xA0;S-K promulgated
pursuant to the Securities Act
(&#x201C;Regulation&#xA0;S-K&#x201D;)), does not possess an interest
in any other transaction as to which disclosure would be required
under Item 404(a) of Regulation&#xA0;S-K and is not engaged in a
business relationship as to which disclosure would be required
under Item 404(b) of Regulation&#xA0;S-K; or (ii)&#xA0;is otherwise
considered a &#x201C;non-employee director&#x201D; for purposes of
Rule&#xA0;16b-3.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(t</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Non-statutory
Stock Option</font>&#x201D; means an Option not intended to qualify
as an Incentive Stock Option.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(u</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Officer</font>&#x201D;
means a person who is an officer of the Company within the meaning
of Section&#xA0;16 of the Exchange Act and the rules and
regulations promulgated thereunder.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(v</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Option</font>&#x201D;
means a Stock Option granted pursuant to the Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(w</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Option
Agreement</font>&#x201D; means a written agreement between the
Company and an Optionholder evidencing the terms and conditions of
an individual Option grant.&#xA0;&#xA0;Each Option Agreement shall
be subject to the terms and conditions of the Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(x</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Optionholder</font>&#x201D;
means a person to whom an Option is granted pursuant to the Plan
or, if applicable, such other person who holds an outstanding
Option.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(y</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Outside
Director</font>&#x201D; means a Director who either (i)&#xA0;is not
a current employee of the Company or an &#x201C;affiliated
corporation&#x201D; (within the meaning of Treasury Regulations
promulgated under Section&#xA0;162(m) of the Code), is not a former
employee of the Company or an &#x201C;affiliated corporation&#x201D;
receiving compensation for prior services (other than benefits
under a tax-qualified pension plan), was not an officer of the
Company or an &#x201C;affiliated corporation&#x201D; at any time and
is not currently receiving direct or indirect remuneration from the
Company or an &#x201C;affiliated corporation&#x201D; for services in
any capacity other than as a Director or (ii)&#xA0;is otherwise
considered an &#x201C;outside director&#x201D; for purposes of
Section&#xA0;162(m) of the Code.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(z</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Participant</font>&#x201D;
means a person to whom a Stock Award is granted pursuant to the
Plan or, if applicable, such other person who holds an outstanding
Stock Award.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(aa</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Plan</font>&#x201D;
means this Wrap Technologies, Inc. 2017 Equity Compensation
Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(bb</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Restricted
Stock</font>&#x201D; means shares of Common Stock issued pursuant to
a Restricted Stock award under Section&#xA0;7(b) of the
Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(cc</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Restricted
Stock Unit</font>&#x201D; means a bookkeeping entry representing an
amount equal to the Fair Market Value of one share of Common Stock,
granted pursuant to Section 7(c).&#xA0;&#xA0;Each Restricted Stock
Unit represents an unfunded and unsecured obligation of the
Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(dd</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Rule&#xA0;16b-3</font>&#x201D;
means Rule&#xA0;16b-3 promulgated under the Exchange Act or any
successor to Rule&#xA0;16b-3, as in effect from time to
time.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ee</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Securities
Act</font>&#x201D; means the Securities Act of 1933, as
amended.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ff</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Stock
Award</font>&#x201D; means any equity grant under the Plan,
including any grant of an Option, a Restricted Stock Unit, Common
Stock, or Restricted Stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-3-</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(gg</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Stock
Award Agreement</font>&#x201D; means a written agreement between the
Company and a holder of a Stock Award evidencing the terms and
conditions of an individual Stock Award grant.&#xA0;&#xA0;Each
Stock Award Agreement shall be subject to the terms and conditions
of the Plan. In the case of a Stock Award consisting of Restricted
Stock, it shall mean a written agreement between the Company and a
Participant evidencing the terms and restrictions applying to an
individual grant of Restricted Stock, and in the case of a Stock
Award consisting of Restricted Stock Units, it shall mean a written
agreement between the Company and a Participant evidencing the
terms and restrictions applying to an individual grant of
Restricted Stock Units.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(hh</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Stock</font>
<font style="font-weight: bold; font-style: italic">Award Transfer
Program</font>&#x201D; means any program instituted by the Board
which would permit Participants the opportunity to transfer any
outstanding Stock Awards to a financial institution or other person
or entity approved by the Board.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Ten
Percent Stockholder</font>&#x201D; means a person who owns (or is
deemed to own pursuant to Section&#xA0;424(d) of the Code) stock
possessing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or of any of its
Affiliates.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
3.&#xA0;&#xA0;&#xA0;&#xA0;Administration.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Administration by
Board</font>.&#xA0;&#xA0;The Board shall administer the Plan unless
and until the Board delegates administration to a Committee, as
provided in subsection&#xA0;3(c).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Powers of
Board</font>.&#xA0;&#xA0;The Board shall have the power, subject
to, and within the limitations of, the express provisions of the
Plan:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(i</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To determine the
Fair Market Value;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To select the
persons to whom Stock Awards may be granted hereunder;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(iii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To determine the
number of shares of Common Stock to be covered by each Stock Award
granted hereunder;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(iv</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To approve forms
of Stock Award Agreements for use under the Plan;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(v</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To determine the
terms and conditions, not inconsistent with the terms of the Plan,
of any Stock Award granted hereunder.&#xA0;&#xA0;Such terms and
conditions include, but are not limited to, the exercise price, the
time or times when Stock Awards may be exercised (which may be
based on performance criteria), any vesting acceleration or waiver
of forfeiture restrictions, and any restriction or limitation
regarding any Stock Award or the shares of Common Stock relating
thereto, based in each case on such factors as the Board will
determine;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(vi</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To determine the
terms and conditions of any, and to institute any, Stock Award
Transfer Program in accordance with Section 10(b);</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(vii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To construe and
interpret the terms of the Plan and Stock Awards granted pursuant
to the Plan;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(viii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To prescribe,
amend and rescind rules and regulations relating to the Plan,
including rules and regulations relating to sub-plans established
for the purpose of satisfying applicable foreign laws;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ix</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To modify or amend
each Stock Award (subject to Section&#xA0;13(e) of the Plan),
including but not limited to the discretionary authority to extend
the post-termination exercisability period of Stock Awards and to
extend the maximum term of an Option (subject to Section 6(a)
regarding Incentive Stock Options);</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(x</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To allow
Participants to satisfy withholding tax obligations in such manner
as prescribed in Section 11(f);</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-4-</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(xi</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To authorize any
person to execute on behalf of the Company any instrument required
to effect the grant of a Stock Award previously granted by the
Board;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(xii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To allow a
Participant to defer the receipt of the payment of cash or the
delivery of shares of Common Stock that would otherwise be due to
such Participant under a Stock Award pursuant to such procedures as
the Board may determine; and</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(xiii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To make all other
determinations deemed necessary or advisable for administering the
Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Delegation to
Committee</font>.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(i</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
General</font>.&#xA0;&#xA0;The Board may delegate administration of
the Plan to a Committee or Committees of one (1) or more members of
the Board, and the term &#x201C;Committee&#x201D; shall apply to any
person or persons to whom such authority has been
delegated.&#xA0;&#xA0;If administration is delegated to a
Committee, the Committee shall have, in connection with the
administration of the Plan, the powers theretofore possessed by the
Board, including the power to delegate to a subcommittee any of the
administrative powers the Committee is authorized to exercise (and
references in this Plan to the Board shall thereafter be to the
Committee or subcommittee), subject, however, to such resolutions,
not inconsistent with the provisions of the Plan, as may be adopted
from time to time by the Board.&#xA0;&#xA0;The Board may abolish
the Committee at any time and revest in the Board the
administration of the Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Committee
Composition</font>.&#xA0;&#xA0;In the discretion of the Board, a
Committee may consist solely of two or more Outside Directors, in
accordance with Section&#xA0;162(m) of the Code, and/or solely of
two or more Non-Employee Directors, in accordance with
Rule&#xA0;16b-3.&#xA0;&#xA0;Within the scope of such authority, the
Board or the Committee may (1)&#xA0;delegate to a committee of one
or more members of the Board who are not Outside Directors the
authority to grant Stock Awards to eligible persons who are either
(a)&#xA0;not then Covered Employees and are not expected to be
Covered Employees at the time of recognition of income resulting
from such Stock Award or (b)&#xA0;not persons with respect to whom
the Company wishes to comply with Section&#xA0;162(m) of the Code
and/or) (2)&#xA0;delegate to a committee of one or more members of
the Board who are not Non-Employee Directors the authority to grant
Stock Awards to eligible persons who are not then subject to
Section&#xA0;16 of the Exchange Act.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(d</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Effect of Board&#x2019;s
and/or Committee&#x2019;s Decision</font>.&#xA0;&#xA0;All
determinations, interpretations and constructions made by the Board
or the Committee in good faith shall not be subject to review by
any person and shall be final, binding and conclusive on all
persons.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
4.&#xA0;&#xA0;&#xA0;&#xA0;Shares Subject To The Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Share
Reserve</font>.&#xA0;&#xA0;Subject to the provisions of
Section&#xA0;12 relating to adjustments upon changes in Common
Stock, the total number of shares of Common Stock that may be
issued pursuant to Stock Awards shall not exceed in the aggregate
of 2,000,000 shares (the &#x201C;<font style="font-weight: bold; text-decoration: underline">Reserved
Shares</font>&#x201D;).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Reversion of Shares to
the Share Reserve</font>.&#xA0;&#xA0;Subject to the provisions of
4(a) above, if any Stock Award shall for any reason expire or
otherwise terminate, in whole or in part, without having been
exercised in full, the shares of Common Stock not acquired under
such Stock Award shall revert to and again become available for
issuance under the Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> <font style="font-weight: bold">Source of Shares</font>.&#xA0;&#xA0;The shares
of Common Stock subject to the Plan may be unissued shares or
reacquired shares, bought on the market or
otherwise.<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
5.&#xA0;&#xA0;&#xA0;&#xA0;Eligibility.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> <font style="font-weight: bold">Consultants</font>.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(i</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> A Consultant shall
not be eligible for the grant of a Stock Award if, at the time of
grant, either the offer or the sale of the Company&#x2019;s
securities to such Consultant is not exempt under Rule&#xA0;701 of
the Securities Act (&#x201C;Rule&#xA0;701&#x201D;) because of the
nature of the services that the Consultant is providing to the
Company, or because the Consultant is not a natural person, or as
otherwise provided by Rule&#xA0;701, unless the Company determines
that such grant need not comply with the requirements of
Rule&#xA0;701 and will satisfy another exemption under the
Securities Act as well as comply with the securities laws of all
other relevant jurisdictions.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-5-</font></div>
</div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> A Consultant shall
not be eligible for the grant of a Stock Award if, at the time of
grant, a Form S-8 Registration Statement under the Securities Act
(&#x201C;Form S-8&#x201D;) is not available to register either the
offer or the sale of the Company&#x2019;s securities to such
Consultant because of the nature of the services that the
Consultant is providing to the Company, or because the Consultant
is not a natural person, or as otherwise provided by the rules
governing the use of Form S-8, unless the Company determines both
(i)&#xA0;that such grant (A)&#xA0;shall be registered in another
manner under the Securities Act (e.g., on a Form S-3 Registration
Statement) or (B)&#xA0;does not require registration under the
Securities Act in order to comply with the requirements of the
Securities Act, if applicable, and (ii)&#xA0;that such grant
complies with the securities laws of all other relevant
jurisdictions.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(iii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> Rule&#xA0;701 and
Form S-8 generally are available to consultants and advisors only
if (i)&#xA0;they are natural persons; (ii)&#xA0;they provide bona
fide services to the issuer, its parents, its majority-owned
subsidiaries or majority-owned subsidiaries of the issuer&#x2019;s
parent; and (iii)&#xA0;the services are not in connection with the
offer or sale of securities in a capital-raising transaction, and
do not directly or indirectly promote or maintain a market for the
issuer&#x2019;s securities.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
6.&#xA0;&#xA0;&#xA0;&#xA0;Option Provisions.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">Each
Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate.&#xA0;&#xA0;All
Options shall be non-statutory Stock Options at the time of
grant.&#xA0;&#xA0;The provisions of separate Options need not be
identical, but each Option shall include (through incorporation of
provisions hereof by reference in the Option or otherwise) the
substance of each of the following provisions:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 12px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
Term</font>.&#xA0;&#xA0;No Stock Option shall be exercisable after
the expiration of ten (10) years from the date it was
granted.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">(b</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="font-style: italic">
Intentionally Left Blank</font>.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Exercise Price of a Stock
Option</font>.&#xA0;&#xA0;The exercise price of each Stock Option
shall be not less than one hundred percent (100%) of the Fair
Market Value of the Common Stock subject to the Option on the date
the Option is granted.&#xA0;&#xA0;Notwithstanding the foregoing, a
Stock Option may be granted with an exercise price lower than that
set forth in the preceding sentence if such Option is granted
pursuant to an assumption or substitution for another option in a
manner satisfying the provisions of Section&#xA0;424(a) of the
Code. Notwithstanding the foregoing, <font style="color: #000000">the exercise price of an Incentive Stock Option
granted to any Ten Percent Stockholder shall in no event be less
than one hundred and ten percent (110%) of the Fair Market Value of
the stock covered by the Incentive Stock Option at the time the
Incentive Stock Option is granted. No Incentive Stock Option
granted to any Ten Percent Stockholder shall be exercisable more
than five (5) years after the date of
grant.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; text-indent: 24px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(d</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
Consideration</font>.&#xA0;&#xA0;The purchase price of Common Stock
acquired pursuant to an Option shall be paid, to the extent
permitted by applicable statutes and regulations, either
(i)&#xA0;in cash at the time the Option is exercised or
(ii)&#xA0;at the discretion of the Board at the time of the grant
of the Option (or subsequently in the case of a Non-statutory Stock
Option) (1)&#xA0;by delivery to the Company of other Common Stock,
(2)&#xA0;according to a deferred payment or other similar
arrangement with the Optionholder or (3)&#xA0;in any other form of
legal consideration that may be acceptable to the Board (which
includes a cashless exercise election).&#xA0;&#xA0;Unless otherwise
specifically provided in the Option, the purchase price of Common
Stock acquired pursuant to an Option that is paid by delivery to
the Company of other Common Stock acquired, directly or indirectly
from the Company, shall be paid only by shares of the Common Stock
of the Company that have been held for more than six (6) months (or
such longer or shorter period of time required to avoid a charge to
earnings for financial accounting purposes).&#xA0;&#xA0;At any time
that the Company is incorporated in Delaware, payment of the Common
Stock&#x2019;s &#x201C;par value,&#x201D; as defined in the Delaware
General Corporation Law, shall not be made by deferred
payment.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">In the
case of any deferred payment arrangement, interest shall be
compounded at least annually and shall be charged at the market
rate of interest necessary to avoid a charge to earnings for
financial accounting purposes.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-6-</font></div>
</div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; text-indent: 24px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">In the
case of a cashless exercise, the following formula will be
used:</font></div>
<div style="text-align: justify; margin-left: 0px; text-indent: 24px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">If
elected by the Holder, the Holder shall be entitled to receive a
certificate for the number of Option Shares equal to the quotient
obtained by dividing [(A-B) (X)] by (A), where:</font></div>
<div style="text-align: justify; margin-left: 0px; text-indent: 24px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 48px; text-indent: 0px; margin-right: 0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px"><font style="color: #000000">
</font>(A) = the closing stock price (trade) or Fair Market Value
on the trading day immediately preceding the date of such
election,;</font></div>
<div style="text-align: justify; margin-left: 48px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 48px; text-indent: 0px; margin-right: 0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">(B)
= the Exercise Price of the Option, as adjusted; and</font></div>
<div style="text-align: justify; margin-left: 48px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 48px; text-indent: 0px; margin-right: 0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">(X)
=&#xA0; the number of Option Shares issuable upon exercise of the
Option in accordance with the terms of the Option by means of a
cash exercise rather than a cashless exercise.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Notwithstanding
anything herein to the contrary, on the Termination Date,
unexercised vested Options shall be automatically exercised via
cashless exercise pursuant to this Section 6(d).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">(e)&#xA0; Vesting.</font>&#xA0; (i) The total
number of shares of Common Stock subject to an Option may, but need
not, vest and therefore become exercisable in periodic installments
that may, but need not, be equal.&#xA0;&#xA0;The Option may be
subject to such other terms and conditions on the time or times
when it may be exercised (which may be based on performance or
other criteria) as the Board may deem appropriate.&#xA0;&#xA0;The
vesting provisions of individual Options may vary.&#xA0;&#xA0;The
provisions of this subsection&#xA0;6(e) are subject to any Option
provisions governing the minimum number of shares of Common Stock
as to which an Option may be exercised.</font></div>
<div style="text-align: justify; margin-left: 0px; text-indent: 24px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(f</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Termination of Continuous
Service</font>.&#xA0;&#xA0;In the event an Optionholder&#x2019;s
Continuous Service terminates, the Optionholder (or the
Optionholder&#x2019;s heirs, executor or successors) may exercise
his or her Option (to the extent that the Optionholder was entitled
to exercise such Option as of the date of termination) but only
within such period of time ending on the earlier of (i)&#xA0;the
date three (3) months following the termination of the
Optionholder&#x2019;s Continuous Service (or such longer period
specified in the Option Agreement), or (ii)&#xA0;the expiration of
the term of the Option as set forth in the Option
Agreement.&#xA0;&#xA0;If, after termination, the Optionholder does
not exercise his or her Option within the time specified in the
Option Agreement, the Option shall be exercised on a cashless basis
per section 6(d) or terminate.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(g</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Extension of Termination
Date</font>.&#xA0;&#xA0;An Optionholder&#x2019;s Option Agreement
may also provide that if the exercise of the Option following the
termination of the Optionholder&#x2019;s Employment and/or
Continuous Service would be prohibited at any time solely because
the issuance of shares of Common Stock would violate the
registration requirements under the Securities Act, then the Option
shall terminate on the earlier of (i)&#xA0;the expiration of the
term of the Option set forth in Section&#xA0;6(a) or (ii)&#xA0;the
expiration of a period of six (6) months after the termination of
the Optionholder&#x2019;s Continuous Service during which the
exercise of the Option would not be in violation of such
registration requirements.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">(h</font><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
Intentionally Left Blank.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">(i</font><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
Intentionally Left Blank.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(j</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Early
Exercise</font>.&#xA0;&#xA0;The Option may, but need not, include a
provision whereby the Optionholder may elect at any time before the
Optionholder&#x2019;s Continuous Service terminates to exercise the
Option as to any part or all of the shares of Common Stock subject
to the Option prior to the full vesting of the
Option.&#xA0;<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
7.&#xA0;&#xA0;&#xA0;&#xA0;Provisions of Stock Awards other than
Options.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Stock
Awards</font>.&#xA0;&#xA0;Each Stock Award Agreement with regard to
Common Stock shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate.&#xA0;&#xA0;The
terms and conditions of Stock Award Agreements for Common Stock may
change from time to time, and the terms and conditions of separate
Stock Award Agreements for Common Stock need not be identical, but
each Stock Award Agreement shall include (through incorporation of
provisions hereof by reference in the agreement or otherwise) the
substance of each of the following provisions:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-7-</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(i</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
Consideration</font>.&#xA0;&#xA0;A Stock Award of Common Stock may
be awarded in consideration for past services actually rendered to
the Company or an Affiliate for its benefit.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
Vesting</font>.&#xA0;&#xA0;Stock Awards other than Options shall
vest in accordance with the schedule determined by the Board, which
shall be set forth in the applicable Stock Award
Agreement.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(iii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Termination of
Participant&#x2019;s Continuous Service</font>.&#xA0;&#xA0;In the
event a Participant&#x2019;s Continuous Service terminates, the
Company may reacquire any or all of the shares of Common Stock held
by the Participant which have not vested as of the date of
termination under the terms of the Stock Award
Agreement.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Restricted Stock
Awards</font>.&#xA0;&#xA0;Each Stock Award Agreement with regard to
Restricted Stock shall be in such form and shall contain such terms
and conditions as the Board shall deem appropriate.&#xA0;&#xA0;The
terms and conditions of the Stock Award Agreement may change from
time to time, and the terms and conditions of separate Stock Award
Agreement for Restricted Stock need not be identical, but each
Stock Award Agreement regarding Restricted Stock shall include
(through incorporation of provisions hereof by reference in the
agreement or otherwise) the substance of each of the following
provisions:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(i</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
Transferability</font>.&#xA0;&#xA0;Except as provided in this
Section 7(b) or Section 10, shares of Restricted Stock may not be
sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated until such time as the shares of Restricted Stock have
vested.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Other
Restrictions</font>.&#xA0;&#xA0;The Board, in its sole discretion,
may impose such other restrictions on shares of Restricted Stock as
it may deem advisable or appropriate.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(iii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Removal of
Restrictions</font>.&#xA0;&#xA0;Except as otherwise provided in
this Section 7(b), shares of Restricted Stock covered by each
Restricted Stock grant made under the Plan will be released from
escrow as soon as practicable after the date the shares of
Restricted Stock vest or at such other time as the Board may
determine.&#xA0;&#xA0;The Board, in its discretion, may accelerate
the time at which any restrictions will lapse or be
removed.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(iv</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Voting
Rights</font>.&#xA0;&#xA0;During the period in which the shares of
Restricted Stock are not transferable, Participants holding shares
of Restricted Stock granted hereunder may exercise full voting
rights with respect to those Shares, unless the Board determines
otherwise.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(v</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Dividends and Other
Distributions</font>.&#xA0;&#xA0;During the period in which the
shares of Restricted Stock are not transferable, Participants
holding shares of Restricted Stock will be entitled to receive all
dividends and other distributions paid with respect to such shares,
unless the Board provides otherwise.&#xA0;&#xA0;If any such
dividends or distributions are paid in shares, the shares will be
subject to the same restrictions on transferability and
forfeitability as the shares of Restricted Stock with respect to
which they were paid.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(vi</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Return of Restricted
Stock to the Company</font>.&#xA0;&#xA0;On the date set forth in
the Stock Award Agreement, the Restricted Stock for which
restrictions have not lapsed will revert to the Company and again
will become available for grant under the Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Restricted Stock
Units</font>.&#xA0;&#xA0;Restricted Stock Units may be granted at
any time and from time to time as determined by the
Board.&#xA0;&#xA0;After the Board determines that it will grant
Restricted Stock Units under the Plan, it shall advise the
Participant in a Stock Award Agreement for Restricted Stock Units
of the terms, conditions, and restrictions related to the grant,
including the number of Restricted Stock Units.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(i</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Vesting Criteria and
Other Terms</font>.&#xA0;&#xA0;The Board shall set vesting criteria
in its discretion, which, depending on the extent to which the
criteria are met, will determine the number of Restricted Stock
Units that will be paid out to the Participant.&#xA0;&#xA0;The
Board may set vesting criteria based upon the achievement of
Company-wide, business unit, or individual goals (including, but
not limited to, continued employment), or any other basis
determined by the Board in its discretion.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-8-</font></div>
</div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> <font style="font-weight: bold">Settlement of Restricted Stock
Units</font>.&#xA0;&#xA0;Restricted Stock Units shall be settled
within 10 business days after vesting, either by delivery to the
Participant of shares of Common Stock (with appropriate Securities
Act restrictive legends) or, at the election of the Company, by
delivery to the Participant of a cash payment based upon the Fair
Market Value of the Company&#x2019;s Common Stock on the date of
vesting for each Restricted Stock Unit
vested.&#xA0;<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
8.&#xA0;&#xA0;&#xA0;&#xA0;Covenants of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Availability of
Shares</font>.&#xA0;&#xA0;During the terms of the Stock Awards, the
Company shall keep available at all times the number of shares of
Common Stock required to satisfy such Stock Awards.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Securities Law
Compliance</font>.&#xA0;&#xA0;The Company shall seek to obtain from
each regulatory commission or agency having jurisdiction over the
Plan such authority as may be required to grant Stock Awards and to
issue and sell shares of Common Stock upon exercise of the Stock
Awards; <font style="font-style: italic">provided, however</font>,
that this undertaking shall not require the Company to register
under the Securities Act the Plan, any Stock Award or any Common
Stock issued or issuable pursuant to any such Stock
Award.&#xA0;&#xA0;If, after reasonable efforts, the Company is
unable to obtain from any such regulatory commission or agency the
authority which counsel for the Company deems necessary for the
lawful issuance and sale of Common Stock under the Plan, the
Company shall be relieved from any liability for failure to issue
and sell Common Stock upon exercise of such Stock Awards unless and
until such authority is obtained.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
9.&#xA0;&#xA0;&#xA0;&#xA0;Use of Proceeds from Stock</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">Proceeds from the
sale of Common Stock pursuant to Stock Awards shall constitute
general funds of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
10.&#xA0;&#xA0;&#xA0;Transferability of Awards.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
General</font>.&#xA0;&#xA0;Unless determined otherwise by the
Board, a Stock Award may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than
by will, by the laws of descent or distribution, to a revocable
trust, or as permitted by Rule 701, and may be exercised, during
the lifetime of the Participant, only by the
Participant.&#xA0;&#xA0;If the Board makes a Stock Award
transferable, such Stock Award will contain such additional terms
and conditions as the Board deems appropriate.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Stock Award Transfer
Program</font>.&#xA0;&#xA0;Notwithstanding any contrary provision
of the Plan, the Board shall have all discretion and authority to
determine and implement the terms and conditions of any Stock Award
Transfer Program instituted pursuant to this Section 10(b) and
shall have the authority to amend the terms of any Stock Award
participating, or otherwise eligible to participate in, the Stock
Award Transfer Program, including (but not limited to) the
authority to (i) amend (including to extend) the expiration date,
post-termination exercise period and/or forfeiture conditions of
any such Stock Award, (ii) amend or remove any provisions of the
Stock Award relating to the Stock Award holder&#x2019;s continued
service to the Company, (iii) amend the permissible payment methods
with respect to the exercise or purchase of any such Stock Award,
(iv) amend the adjustments to be implemented in the event of
changes in the capitalization and other similar events with respect
to such Stock Award, and (v) make such other changes to the terms
of such Stock Award as the Board deems necessary or appropriate in
its sole discretion.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
11.&#xA0;&#xA0;&#xA0;Miscellaneous.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Acceleration of
Exercisability and Vesting</font>.&#xA0;&#xA0;The Board shall have
the power to accelerate the time at which a Stock Award may first
be exercised or the time during which a Stock Award or any part
thereof will vest in accordance with the Plan, notwithstanding the
provisions in the Stock Award stating the time at which it may
first be exercised or the time during which it will
vest.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-9-</font></div>
</div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Stockholder
Rights</font>.&#xA0;&#xA0;Except to the limited extent provided in
Section 7(b), no Participant (nor any beneficiary) shall have any
of the rights or privileges of a stockholder of the Company with
respect to any shares of Common Stock issuable pursuant to a Stock
Award (or exercise thereof), unless and until certificates
representing such shares shall have been issued, recorded on the
records of the Company or its transfer agents or registrars, and
delivered to the Participant (or beneficiary).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> No Employment or other
Service Rights</font>.&#xA0;&#xA0;Nothing in the Plan or any
instrument executed or Stock Award granted pursuant thereto shall
confer upon any Participant any right to continue to serve the
Company or an Affiliate in the capacity in effect at the time the
Stock Award was granted or shall affect the right of the Company or
an Affiliate to terminate (i)&#xA0;the employment of an Employee
with or without notice and with or without cause, (ii)&#xA0;the
service of a Consultant pursuant to the terms of such
Consultant&#x2019;s agreement with the Company or an Affiliate or
(iii)&#xA0;the service of a Director pursuant to the Bylaws of the
Company or an Affiliate, and any applicable provisions of the
corporate law of the state in which the Company or the Affiliate is
incorporated, as the case may be.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">(d</font><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
Intentionally Left Blank.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(e</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Investment
Assurances</font>.&#xA0;&#xA0;The Company may require a
Participant, as a condition of exercising or acquiring Common Stock
under any Stock Award, (i)&#xA0;to give written assurances
satisfactory to the Company as to the Participant&#x2019;s knowledge
and experience in financial and business matters and/or to employ a
purchaser representative reasonably satisfactory to the Company who
is knowledgeable and experienced in financial and business matters
and that he or she is capable of evaluating, alone or together with
the purchaser representative, the merits and risks of exercising
the Stock Award; and (ii)&#xA0;to give written assurances
satisfactory to the Company stating that the Participant is
acquiring Common Stock subject to the Stock Award for the
Participant&#x2019;s own account and not with any present intention
of selling or otherwise distributing the Common
Stock.&#xA0;&#xA0;The foregoing requirements, and any assurances
given pursuant to such requirements, shall be inoperative if
(1)&#xA0;the issuance of the shares of Common Stock upon the
exercise or acquisition of Common Stock under the Stock Award has
been registered under a then currently effective registration
statement under the Securities Act or (2)&#xA0;as to any particular
requirement, a determination is made by counsel for the Company
that such requirement need not be met in the circumstances under
the then applicable securities laws.&#xA0;&#xA0;The Company may,
upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary
or appropriate in order to comply with applicable securities laws,
including, but not limited to, legends restricting the transfer of
the Common Stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(f</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Withholding
Obligations</font>.&#xA0;&#xA0;To the extent provided by the terms
of a Stock Award Agreement, the Participant may satisfy any
federal, state or local tax withholding obligation relating to the
exercise or acquisition of Common Stock under a Stock Award by any
of the following means, <font style="color: #000000">if authorized
by the Board in its sole discretion, after considering any tax,
accounting and financial consequences</font><font style="color: #000000; font-family: Times New Roman">&#xA0;</font>(in
addition to the Company&#x2019;s right to withhold from any
compensation paid to the Participant by the Company), or by a
combination of such means: (i)&#xA0;tendering a cash payment;
(ii)&#xA0;authorizing the Company to withhold shares of Common
Stock from the shares of Common Stock otherwise issuable to the
Participant as a result of the exercise or acquisition of Common
Stock under the Stock Award, <font style="font-style: italic">provided, however</font>, that no shares of
Common Stock are withheld with a value exceeding the minimum amount
of tax required to be withheld by law; or (iii)&#xA0;delivering to
the Company owned and unencumbered shares of Common
Stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(g</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Information
Obligation</font>.&#xA0;&#xA0;To the extent required by applicable
state law, the Company shall deliver financial statements to
Participants at least annually.&#xA0;&#xA0;This
subsection&#xA0;10(g) shall not apply to key Employees whose duties
in connection with the Company assure them access to equivalent
information.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
12.&#xA0;&#xA0;&#xA0;Adjustments upon Changes in
Stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Capitalization
Adjustments</font>.&#xA0;&#xA0;If any change is made in the Common
Stock subject to the Plan, or subject to any Stock Award, without
the receipt of consideration by the Company (through merger,
consolidation, reorganization, recapitalization, reincorporation,
stock dividend, dividend in property other than cash, stock split,
liquidating dividend, combination of shares, exchange of shares,
change in corporate structure or other transaction not involving
the receipt of consideration by the Company), the Plan will be
appropriately adjusted in the class(es) and maximum number of
securities subject to the Plan pursuant to Section&#xA0;4(a) and
the maximum number of securities subject to award to any person
pursuant to Section&#xA0;5(c), and the outstanding Stock Awards
will be appropriately adjusted in the class(es) and number of
securities and price per share of Common Stock subject to such
outstanding Stock Awards.&#xA0;&#xA0;The Board shall make such
adjustments, and its determination shall be final, binding and
conclusive.&#xA0;&#xA0;(The conversion of any convertible
securities of the Company shall not be treated as a transaction
&#x201C;without receipt of consideration&#x201D; by the
Company.)</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Dissolution or
Liquidation</font>.&#xA0;&#xA0;In the event of a dissolution or
liquidation of the Company, then all outstanding Stock Awards shall
terminate immediately prior to such event.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Asset Sale, Merger,
Consolidation or Reverse Merger</font>.&#xA0;&#xA0;In the event of
(i)&#xA0;a sale, lease or other disposition of all or substantially
all of the assets of the Company, (ii)&#xA0;a merger or
consolidation in which the Company is not the surviving corporation
or (iii)&#xA0;a reverse merger in which the Company is the
surviving corporation but the shares of Common Stock outstanding
immediately preceding the merger are converted by virtue of the
merger into other property, whether in the form of securities, cash
or otherwise (individually, a &#x201C;Corporate Transaction&#x201D;),
then any surviving corporation or acquiring corporation shall
assume any Stock Awards outstanding under the Plan or shall
substitute similar stock awards (including an award to acquire the
same consideration paid to the stockholders in the Corporate
Transaction) for those outstanding under the Plan.&#xA0;&#xA0;In
the event any surviving corporation or acquiring corporation
refuses to assume such Stock Awards or to substitute similar stock
awards for those outstanding under the Plan, then with respect to
Stock Awards held by Participants whose Continuous Service has not
terminated, the vesting of such Stock Awards (and, if applicable,
the time during which such Stock Awards may be exercised) shall be
accelerated in full, and the Stock Awards shall terminate if not
exercised (if applicable) at or prior to the Corporate
Transaction.&#xA0;&#xA0;With respect to any other Stock Awards
outstanding under the Plan, such Stock Awards shall terminate if
not exercised (if applicable) prior to the Corporate Transaction.
Notwithstanding the foregoing provisions of this paragraph,
Participants shall be allowed not less than six (6) months to
exercise Stock Awards so vested.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
13.&#xA0;&#xA0;&#xA0;Amendment of the Plan and Stock
Awards.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Amendment of
Plan</font>.&#xA0;&#xA0;The Board at any time, and from time to
time, may amend the Plan.&#xA0;&#xA0;However, except as provided in
Section&#xA0;12 relating to adjustments upon changes in Common
Stock, no amendment shall be effective unless approved by the
stockholders of the Company to the extent stockholder approval is
necessary to satisfy the requirements of Section&#xA0;422 of the
Code, Rule&#xA0;16b-3 or any NASDAQ or securities exchange listing
requirements.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Stockholder
Approval</font>.&#xA0;&#xA0;The Board may, in its sole discretion,
submit any other amendment to the Plan for stockholder approval,
including, but not limited to, amendments to the Plan intended to
satisfy the requirements of Section&#xA0;162(m) of the Code and the
regulations thereunder regarding the exclusion of performance-based
compensation from the limit on corporate deductibility of
compensation paid to certain executive officers.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Contemplated
Amendments</font>.&#xA0;&#xA0;It is expressly contemplated that the
Board may amend the Plan in any respect the Board deems necessary
or advisable to provide eligible Employees with the maximum
benefits provided or to be provided under the provisions of the
Code and the regulations promulgated thereunder relating to
Incentive Stock Options and/or to bring the Plan and/or Incentive
Stock Options granted under it into compliance
therewith.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(d</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> No Impairment of
Rights</font>.&#xA0;&#xA0;Rights under any Stock Award granted
before amendment of the Plan shall not be impaired by any amendment
of the Plan unless (i)&#xA0;the Company requests the consent of the
Participant and (ii)&#xA0;the Participant consents in
writing.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(e</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Amendment of Stock
Awards</font>.&#xA0;&#xA0;The Board at any time, and from time to
time, may amend the terms of any one or more Stock Awards;
<font style="font-style: italic">provided, however</font>, that the
rights under any Stock Award shall not be impaired by any such
amendment unless (i)&#xA0;the Company requests the consent of the
Participant, and (ii)&#xA0;the Participant consents in
writing.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
14.&#xA0;&#xA0;&#xA0;Termination or Suspension of the
Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Plan
Term</font>.&#xA0;&#xA0;The Board may suspend or terminate the Plan
at any time.&#xA0;&#xA0;Unless sooner terminated, the Plan shall
terminate on the day before the tenth (10th) anniversary of the
date the Plan is adopted by the Board.&#xA0;&#xA0;No Stock Awards
may be granted under the Plan while the Plan is suspended or after
it is terminated.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> No Impairment of
Rights</font>.&#xA0;&#xA0;Suspension or termination of the Plan
shall not impair rights and obligations under any Stock Award
granted while the Plan is in effect except with the written consent
of the Participant.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
15.&#xA0;&#xA0;&#xA0;Effective Date of Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">The
Plan shall become effective as of the date of approval by the
Board.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
16.&#xA0;&#xA0;&#xA0;Choice of Law.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">The law
of the State of Delaware shall govern all questions concerning the
construction, validity and interpretation of this Plan, without
regard to such state&#x2019;s conflict of laws rules.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">IN
WITNESS WHEREOF, the Company, by its duly authorized officer, has
executed this Plan on the date indicated below.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 51%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">WRAP
TECHNOLOGIES, INC.&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 51%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 49%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Dated:
March 31, 2017</font></div>
</td>
<td style="vertical-align: middle; width: 51%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline"><font style="font-family: Times New Roman; font-size: 13px">/s/ James A.
Barnes</font></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 51%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Name:
James A. Barnes</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 51%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Title:
Chief Executive Officer</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Approved By the Board of Directors on March 28, 2017</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Approved By Stockholders: March 28, 2017</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Termination Date: March 28, 2027</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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</DOCUMENT>
EX-10.2
7
ex10-2.htm
2017 EQUITY COMPENSATION PLAN
ex10-2
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>7
<FILENAME>ex10-2.htm
<DESCRIPTION>2017 EQUITY COMPENSATION PLAN
<TEXT>
<html>
<head>
<!-- Document created using Blueprint(R) - powered by Issuer Direct - www.issuerdirect.com -->
<!-- Copyright 2017 Issuer Direct Corporation -->
<title>ex10-2</title>
</head>
<body style="font-family: Times New Roman; font-size: 13px;">
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Exhibit 10.2</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
</font><font style="font-size: 15px"><font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman;">WRAP
TECHNOLOGIES, INC.</font></font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 15px"><font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
<font style="font-size: 15px">2017 Equity Compensation
Plan</font></font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
1.&#xA0;&#xA0;&#xA0;&#xA0;Purposes.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a)&#xA0; Eligible Stock Award
Recipients</font>.&#xA0;&#xA0;The persons eligible to receive Stock
Awards are the Employees, Directors and Consultants of the Company
and its Affiliates.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Available Stock
Awards</font>.&#xA0;&#xA0;The purpose of the Plan is to provide a
means by which eligible recipients of Stock Awards may be given an
opportunity to benefit from increases in value of the Common Stock
through the granting of the following Stock Awards: (i)&#xA0;Stock
Options, (iii)&#xA0;Common Stock, (iv)&#xA0;Restricted Stock, and
(v) Restricted Stock Units.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> General
Purpose</font>.&#xA0;&#xA0;The Company, by means of the Plan, seeks
to retain the services of the group of persons eligible to receive
Stock Awards, to secure and retain the services of new members of
this group and to provide incentives for such persons to exert
maximum efforts for the success of the Company and its
Affiliates.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
2.&#xA0;&#xA0;&#xA0;&#xA0;Definitions.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Affiliate</font>&#x201D;
means any parent corporation or subsidiary corporation of the
Company, whether now or hereafter existing, as those terms are
defined in Sections&#xA0;424(e) and (f), respectively, of the
Code.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Board</font>&#x201D;
means the Board of Directors of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> <font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">&#x201C;Cause&#x201D;</font>
for termination of Continuous Service means there exists (i) a
reasonable and good faith finding by the Company as determined by
it in its sole discretion, of a material and repeated failure of
the Participant to provide his or her full business time and
attention to his reasonably assigned duties for the Company
(including, without limitation, unexcused failure to report for
work) for reasons other than the Participant&#x2019;s death or
disability, or the Participant's gross negligence or willful
misconduct; which failure or deficiency remains uncured (if
curable) for a period of thirty (30) days following written notice
by the Company to the Participant which specifies the reasons for
the potential cause determination; (ii) the material breach by the
Participant of any of the provisions of his or her employment
agreement (if the Participant has an employment agreement with the
Company) for reasons other than the Participant&#x2019;s death or
disability, which breach remains uncured (if curable) for a period
of thirty (30) days following written notice by the Company to the
Participant which specifies the reasons for the potential cause
determination; (iii) the conviction of the Participant of, or the
entry of a pleading of guilty or <font style="text-decoration: underline">nolo</font> <font style="text-decoration: underline">contendere</font> by the Participant
to, any felony; (iv) the Participant having committed any theft,
embezzlement, fraud or other intentional act of dishonesty
involving the business of the Company; or (v) any adjudication in
any civil suit, or written acknowledgment by the Participant in any
agreement or stipulation of the commission of any theft,
embezzlement, fraud or other intentional act of dishonesty
involving any other person.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">(d</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="font-style: italic">
Intentionally Left Blank.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(e</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> <font style="font-family: Times New Roman; font-size: 13px">&#x201C;<font style="font-weight: bold; font-style: italic">Code</font>&#x201D; means
the Internal Revenue Code of 1986, as amended.&#xA0;&#xA0;Reference
to a specific section of the Code or regulation thereunder shall
include such section or regulation, any valid regulation
promulgated under such section, and any comparable provision of any
future legislation or regulation amending, supplementing or
superseding such section or regulation.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(f</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> <font style="font-family: Times New Roman; font-size: 13px">&#x201C;<font style="font-weight: bold; font-style: italic">Committee</font>&#x201D;
means a committee of one or more members of the Board appointed by
the Board in accordance with subsection&#xA0;3(c).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(g</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> <font style="font-family: Times New Roman; font-size: 13px">&#x201C;<font style="font-weight: bold; font-style: italic">Common Stock</font>&#x201D;
means the common stock of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-1-</font></div>
</div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(h</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Company</font>&#x201D;
means Wrap Technologies, Inc., a Delaware corporation.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(i</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Consultant</font>&#x201D;
means any person, including an advisor, (i)&#xA0;engaged by the
Company or an Affiliate to render consulting or advisory services
and who is compensated for such services or (ii)&#xA0;who is a
member of the Board of Directors of an
Affiliate.&#xA0;&#xA0;However, the term &#x201C;Consultant&#x201D;
shall not include either Directors who are not compensated by the
Company for their services as Directors or Directors who are merely
paid a director&#x2019;s fee by the Company for their services as
Directors.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(j</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Continuous
Service</font>&#x201D; means that the Participant&#x2019;s service
with the Company or an Affiliate, whether as an Employee, Director
or Consultant, is not interrupted or terminated.&#xA0;&#xA0;The
Participant&#x2019;s Continuous Service shall not be deemed to have
terminated merely because of a change in the capacity in which the
Participant renders service to the Company or an Affiliate as an
Employee, Consultant or Director or a change in the entity for
which the Participant renders such service, provided that there is
no interruption or termination of the Participant&#x2019;s
Continuous Service.&#xA0;&#xA0;For example, a change in status from
an Employee of the Company to a Consultant of an Affiliate or a
Director will not constitute an interruption of Continuous
Service.&#xA0;&#xA0;The Board or the chief executive officer of the
Company, in that party&#x2019;s sole discretion, may determine
whether Continuous Service shall be considered interrupted in the
case of any leave of absence approved by that party, including sick
leave, military leave or any other personal leave.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(k</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Covered
Employee</font>&#x201D; means the chief executive officer and the
four (4) other highest compensated officers of the Company for whom
total compensation is required to be reported to stockholders under
the Exchange Act, as determined for purposes of Section&#xA0;162(m)
of the Code.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(l</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Director</font>&#x201D;
means a member of the Board of Directors of the
Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(m</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> <font style="font-family: Times New Roman; font-size: 13px">&#x201C;<font style="font-weight: bold; font-style: italic">Disability</font>&#x201D;
means the permanent and total disability of a person within the
meaning of Section&#xA0;22(e)(3) of the Code.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(n</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Employee</font>&#x201D;
means any person employed by the Company or an
Affiliate.&#xA0;&#xA0;Mere service as a Director or payment of a
director&#x2019;s fee by the Company or an Affiliate shall not be
sufficient to constitute &#x201C;employment&#x201D; by the Company or
an Affiliate.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(o</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Exchange
Act</font>&#x201D; means the Securities Exchange Act of 1934, as
amended.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(p</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Fair
Market Value</font>&#x201D; means, as of any date, the value of the
Common Stock determined as follows:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(i</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> If the Common
Stock is listed on any established stock exchange or traded on a
NASDAQ Capital Market or quoted on the Over the Counter Bulletin
Board, the Fair Market Value of a share of Common Stock shall be
the closing sales price (last trade) for such stock as quoted on
such exchange or market (or the exchange or market with the
greatest volume of trading in the Common Stock) on the last market
trading day prior to the day of determination, as reported in
<font style="font-style: italic">The Wall Street Journal</font> or
such other source as the Board deems reliable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 36px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 60px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> In the absence of
such markets for the Common Stock, the Fair Market Value shall be
determined in good faith by the Board.<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(q</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> <font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">&#x201C;Good
Reason&#x201D;</font><font style="font-weight: bold">&#xA0;</font>means, without the written consent
of the Participant, (i) a material reduction by the Company in the
Participant's duties or position, (ii) a reduction of the
Participant's compensation or benefits as set forth in the
Company&#x2019;s benefits policies as of the date hereof or in
Participant&#x2019;s employment agreement, (iii) the relocation of
the Participant&#x2019;s principal place of employment by more than
50 miles, or (iv) any material breach by the Company of the
Participant&#x2019;s employment agreement, if any. Prior to a
termination of Continuous Service with good reason, the Company
shall have thirty (30) days to cure the deficiency or deficiencies
related to the potential good reason determination.</font></div>
<div style="text-align: justify; margin-left: 0px; text-indent: 24px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-2-</font></div>
</div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(r</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> <font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">&#x201C; Incentive Stock
Option</font><font style="font-style: italic">&#x201D;</font> means
a Stock Option meeting the requirements of Section 421(b) of the
Code<font style="font-style: italic">.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(s</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Non-Employee
Director</font>&#x201D; means a Director who either (i)&#xA0;is not
a current Employee or Officer of the Company or its parent or a
subsidiary, does not receive compensation (directly or indirectly)
from the Company or its parent or a subsidiary for services
rendered as a consultant or in any capacity other than as a
Director (except for an amount as to which disclosure would not be
required under Item 404(a) of Regulation&#xA0;S-K promulgated
pursuant to the Securities Act
(&#x201C;Regulation&#xA0;S-K&#x201D;)), does not possess an interest
in any other transaction as to which disclosure would be required
under Item 404(a) of Regulation&#xA0;S-K and is not engaged in a
business relationship as to which disclosure would be required
under Item 404(b) of Regulation&#xA0;S-K; or (ii)&#xA0;is otherwise
considered a &#x201C;non-employee director&#x201D; for purposes of
Rule&#xA0;16b-3.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(t</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Non-statutory
Stock Option</font>&#x201D; means an Option not intended to qualify
as an Incentive Stock Option.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(u</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Officer</font>&#x201D;
means a person who is an officer of the Company within the meaning
of Section&#xA0;16 of the Exchange Act and the rules and
regulations promulgated thereunder.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(v</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Option</font>&#x201D;
means a Stock Option granted pursuant to the Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(w</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Option
Agreement</font>&#x201D; means a written agreement between the
Company and an Optionholder evidencing the terms and conditions of
an individual Option grant.&#xA0;&#xA0;Each Option Agreement shall
be subject to the terms and conditions of the Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(x</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Optionholder</font>&#x201D;
means a person to whom an Option is granted pursuant to the Plan
or, if applicable, such other person who holds an outstanding
Option.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(y</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Outside
Director</font>&#x201D; means a Director who either (i)&#xA0;is not
a current employee of the Company or an &#x201C;affiliated
corporation&#x201D; (within the meaning of Treasury Regulations
promulgated under Section&#xA0;162(m) of the Code), is not a former
employee of the Company or an &#x201C;affiliated corporation&#x201D;
receiving compensation for prior services (other than benefits
under a tax-qualified pension plan), was not an officer of the
Company or an &#x201C;affiliated corporation&#x201D; at any time and
is not currently receiving direct or indirect remuneration from the
Company or an &#x201C;affiliated corporation&#x201D; for services in
any capacity other than as a Director or (ii)&#xA0;is otherwise
considered an &#x201C;outside director&#x201D; for purposes of
Section&#xA0;162(m) of the Code.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(z</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Participant</font>&#x201D;
means a person to whom a Stock Award is granted pursuant to the
Plan or, if applicable, such other person who holds an outstanding
Stock Award.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(aa</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Plan</font>&#x201D;
means this Wrap Technologies, Inc. 2017 Equity Compensation
Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(bb</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Restricted
Stock</font>&#x201D; means shares of Common Stock issued pursuant to
a Restricted Stock award under Section&#xA0;7(b) of the
Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(cc</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Restricted
Stock Unit</font>&#x201D; means a bookkeeping entry representing an
amount equal to the Fair Market Value of one share of Common Stock,
granted pursuant to Section 7(c).&#xA0;&#xA0;Each Restricted Stock
Unit represents an unfunded and unsecured obligation of the
Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(dd</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Rule&#xA0;16b-3</font>&#x201D;
means Rule&#xA0;16b-3 promulgated under the Exchange Act or any
successor to Rule&#xA0;16b-3, as in effect from time to
time.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ee</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Securities
Act</font>&#x201D; means the Securities Act of 1933, as
amended.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ff</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Stock
Award</font>&#x201D; means any equity grant under the Plan,
including any grant of an Option, a Restricted Stock Unit, Common
Stock, or Restricted Stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-3-</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(gg</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Stock
Award Agreement</font>&#x201D; means a written agreement between the
Company and a holder of a Stock Award evidencing the terms and
conditions of an individual Stock Award grant.&#xA0;&#xA0;Each
Stock Award Agreement shall be subject to the terms and conditions
of the Plan. In the case of a Stock Award consisting of Restricted
Stock, it shall mean a written agreement between the Company and a
Participant evidencing the terms and restrictions applying to an
individual grant of Restricted Stock, and in the case of a Stock
Award consisting of Restricted Stock Units, it shall mean a written
agreement between the Company and a Participant evidencing the
terms and restrictions applying to an individual grant of
Restricted Stock Units.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(hh</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Stock</font>
<font style="font-weight: bold; font-style: italic">Award Transfer
Program</font>&#x201D; means any program instituted by the Board
which would permit Participants the opportunity to transfer any
outstanding Stock Awards to a financial institution or other person
or entity approved by the Board.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font>
&#x201C;<font style="font-weight: bold; font-style: italic">Ten
Percent Stockholder</font>&#x201D; means a person who owns (or is
deemed to own pursuant to Section&#xA0;424(d) of the Code) stock
possessing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or of any of its
Affiliates.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
3.&#xA0;&#xA0;&#xA0;&#xA0;Administration.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Administration by
Board</font>.&#xA0;&#xA0;The Board shall administer the Plan unless
and until the Board delegates administration to a Committee, as
provided in subsection&#xA0;3(c).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Powers of
Board</font>.&#xA0;&#xA0;The Board shall have the power, subject
to, and within the limitations of, the express provisions of the
Plan:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(i</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To determine the
Fair Market Value;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To select the
persons to whom Stock Awards may be granted hereunder;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(iii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To determine the
number of shares of Common Stock to be covered by each Stock Award
granted hereunder;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(iv</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To approve forms
of Stock Award Agreements for use under the Plan;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(v</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To determine the
terms and conditions, not inconsistent with the terms of the Plan,
of any Stock Award granted hereunder.&#xA0;&#xA0;Such terms and
conditions include, but are not limited to, the exercise price, the
time or times when Stock Awards may be exercised (which may be
based on performance criteria), any vesting acceleration or waiver
of forfeiture restrictions, and any restriction or limitation
regarding any Stock Award or the shares of Common Stock relating
thereto, based in each case on such factors as the Board will
determine;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(vi</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To determine the
terms and conditions of any, and to institute any, Stock Award
Transfer Program in accordance with Section 10(b);</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(vii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To construe and
interpret the terms of the Plan and Stock Awards granted pursuant
to the Plan;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(viii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To prescribe,
amend and rescind rules and regulations relating to the Plan,
including rules and regulations relating to sub-plans established
for the purpose of satisfying applicable foreign laws;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ix</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To modify or amend
each Stock Award (subject to Section&#xA0;13(e) of the Plan),
including but not limited to the discretionary authority to extend
the post-termination exercisability period of Stock Awards and to
extend the maximum term of an Option (subject to Section 6(a)
regarding Incentive Stock Options);</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(x</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To allow
Participants to satisfy withholding tax obligations in such manner
as prescribed in Section 11(f);</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-4-</font></div>
</div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(xi</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To authorize any
person to execute on behalf of the Company any instrument required
to effect the grant of a Stock Award previously granted by the
Board;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(xii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To allow a
Participant to defer the receipt of the payment of cash or the
delivery of shares of Common Stock that would otherwise be due to
such Participant under a Stock Award pursuant to such procedures as
the Board may determine; and</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(xiii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> To make all other
determinations deemed necessary or advisable for administering the
Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Delegation to
Committee</font>.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(i</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
General</font>.&#xA0;&#xA0;The Board may delegate administration of
the Plan to a Committee or Committees of one (1) or more members of
the Board, and the term &#x201C;Committee&#x201D; shall apply to any
person or persons to whom such authority has been
delegated.&#xA0;&#xA0;If administration is delegated to a
Committee, the Committee shall have, in connection with the
administration of the Plan, the powers theretofore possessed by the
Board, including the power to delegate to a subcommittee any of the
administrative powers the Committee is authorized to exercise (and
references in this Plan to the Board shall thereafter be to the
Committee or subcommittee), subject, however, to such resolutions,
not inconsistent with the provisions of the Plan, as may be adopted
from time to time by the Board.&#xA0;&#xA0;The Board may abolish
the Committee at any time and revest in the Board the
administration of the Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Committee
Composition</font>.&#xA0;&#xA0;In the discretion of the Board, a
Committee may consist solely of two or more Outside Directors, in
accordance with Section&#xA0;162(m) of the Code, and/or solely of
two or more Non-Employee Directors, in accordance with
Rule&#xA0;16b-3.&#xA0;&#xA0;Within the scope of such authority, the
Board or the Committee may (1)&#xA0;delegate to a committee of one
or more members of the Board who are not Outside Directors the
authority to grant Stock Awards to eligible persons who are either
(a)&#xA0;not then Covered Employees and are not expected to be
Covered Employees at the time of recognition of income resulting
from such Stock Award or (b)&#xA0;not persons with respect to whom
the Company wishes to comply with Section&#xA0;162(m) of the Code
and/or) (2)&#xA0;delegate to a committee of one or more members of
the Board who are not Non-Employee Directors the authority to grant
Stock Awards to eligible persons who are not then subject to
Section&#xA0;16 of the Exchange Act.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(d</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Effect of Board&#x2019;s
and/or Committee&#x2019;s Decision</font>.&#xA0;&#xA0;All
determinations, interpretations and constructions made by the Board
or the Committee in good faith shall not be subject to review by
any person and shall be final, binding and conclusive on all
persons.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
4.&#xA0;&#xA0;&#xA0;&#xA0;Shares Subject To The Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Share
Reserve</font>.&#xA0;&#xA0;Subject to the provisions of
Section&#xA0;12 relating to adjustments upon changes in Common
Stock, the total number of shares of Common Stock that may be
issued pursuant to Stock Awards shall not exceed in the aggregate
of 2,000,000 shares (the &#x201C;<font style="font-weight: bold; text-decoration: underline">Reserved
Shares</font>&#x201D;).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Reversion of Shares to
the Share Reserve</font>.&#xA0;&#xA0;Subject to the provisions of
4(a) above, if any Stock Award shall for any reason expire or
otherwise terminate, in whole or in part, without having been
exercised in full, the shares of Common Stock not acquired under
such Stock Award shall revert to and again become available for
issuance under the Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> <font style="font-weight: bold">Source of Shares</font>.&#xA0;&#xA0;The shares
of Common Stock subject to the Plan may be unissued shares or
reacquired shares, bought on the market or
otherwise.<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
5.&#xA0;&#xA0;&#xA0;&#xA0;Eligibility.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> <font style="font-weight: bold">Consultants</font>.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(i</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> A Consultant shall
not be eligible for the grant of a Stock Award if, at the time of
grant, either the offer or the sale of the Company&#x2019;s
securities to such Consultant is not exempt under Rule&#xA0;701 of
the Securities Act (&#x201C;Rule&#xA0;701&#x201D;) because of the
nature of the services that the Consultant is providing to the
Company, or because the Consultant is not a natural person, or as
otherwise provided by Rule&#xA0;701, unless the Company determines
that such grant need not comply with the requirements of
Rule&#xA0;701 and will satisfy another exemption under the
Securities Act as well as comply with the securities laws of all
other relevant jurisdictions.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-5-</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> A Consultant shall
not be eligible for the grant of a Stock Award if, at the time of
grant, a Form S-8 Registration Statement under the Securities Act
(&#x201C;Form S-8&#x201D;) is not available to register either the
offer or the sale of the Company&#x2019;s securities to such
Consultant because of the nature of the services that the
Consultant is providing to the Company, or because the Consultant
is not a natural person, or as otherwise provided by the rules
governing the use of Form S-8, unless the Company determines both
(i)&#xA0;that such grant (A)&#xA0;shall be registered in another
manner under the Securities Act (e.g., on a Form S-3 Registration
Statement) or (B)&#xA0;does not require registration under the
Securities Act in order to comply with the requirements of the
Securities Act, if applicable, and (ii)&#xA0;that such grant
complies with the securities laws of all other relevant
jurisdictions.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(iii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> Rule&#xA0;701 and
Form S-8 generally are available to consultants and advisors only
if (i)&#xA0;they are natural persons; (ii)&#xA0;they provide bona
fide services to the issuer, its parents, its majority-owned
subsidiaries or majority-owned subsidiaries of the issuer&#x2019;s
parent; and (iii)&#xA0;the services are not in connection with the
offer or sale of securities in a capital-raising transaction, and
do not directly or indirectly promote or maintain a market for the
issuer&#x2019;s securities.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
6.&#xA0;&#xA0;&#xA0;&#xA0;Option Provisions.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">Each
Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate.&#xA0;&#xA0;All
Options shall be non-statutory Stock Options at the time of
grant.&#xA0;&#xA0;The provisions of separate Options need not be
identical, but each Option shall include (through incorporation of
provisions hereof by reference in the Option or otherwise) the
substance of each of the following provisions:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 12px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
Term</font>.&#xA0;&#xA0;No Stock Option shall be exercisable after
the expiration of ten (10) years from the date it was
granted.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">(b</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="font-style: italic">
Intentionally Left Blank</font>.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Exercise Price of a Stock
Option</font>.&#xA0;&#xA0;The exercise price of each Stock Option
shall be not less than one hundred percent (100%) of the Fair
Market Value of the Common Stock subject to the Option on the date
the Option is granted.&#xA0;&#xA0;Notwithstanding the foregoing, a
Stock Option may be granted with an exercise price lower than that
set forth in the preceding sentence if such Option is granted
pursuant to an assumption or substitution for another option in a
manner satisfying the provisions of Section&#xA0;424(a) of the
Code. Notwithstanding the foregoing, <font style="color: #000000">the exercise price of an Incentive Stock Option
granted to any Ten Percent Stockholder shall in no event be less
than one hundred and ten percent (110%) of the Fair Market Value of
the stock covered by the Incentive Stock Option at the time the
Incentive Stock Option is granted. No Incentive Stock Option
granted to any Ten Percent Stockholder shall be exercisable more
than five (5) years after the date of
grant.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; text-indent: 24px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(d</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
Consideration</font>.&#xA0;&#xA0;The purchase price of Common Stock
acquired pursuant to an Option shall be paid, to the extent
permitted by applicable statutes and regulations, either
(i)&#xA0;in cash at the time the Option is exercised or
(ii)&#xA0;at the discretion of the Board at the time of the grant
of the Option (or subsequently in the case of a Non-statutory Stock
Option) (1)&#xA0;by delivery to the Company of other Common Stock,
(2)&#xA0;according to a deferred payment or other similar
arrangement with the Optionholder or (3)&#xA0;in any other form of
legal consideration that may be acceptable to the Board (which
includes a cashless exercise election).&#xA0;&#xA0;Unless otherwise
specifically provided in the Option, the purchase price of Common
Stock acquired pursuant to an Option that is paid by delivery to
the Company of other Common Stock acquired, directly or indirectly
from the Company, shall be paid only by shares of the Common Stock
of the Company that have been held for more than six (6) months (or
such longer or shorter period of time required to avoid a charge to
earnings for financial accounting purposes).&#xA0;&#xA0;At any time
that the Company is incorporated in Delaware, payment of the Common
Stock&#x2019;s &#x201C;par value,&#x201D; as defined in the Delaware
General Corporation Law, shall not be made by deferred
payment.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">In the
case of any deferred payment arrangement, interest shall be
compounded at least annually and shall be charged at the market
rate of interest necessary to avoid a charge to earnings for
financial accounting purposes.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-6-</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; text-indent: 24px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">In the
case of a cashless exercise, the following formula will be
used:</font></div>
<div style="text-align: justify; margin-left: 0px; text-indent: 24px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">If
elected by the Holder, the Holder shall be entitled to receive a
certificate for the number of Option Shares equal to the quotient
obtained by dividing [(A-B) (X)] by (A), where:</font></div>
<div style="text-align: justify; margin-left: 0px; text-indent: 24px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 48px; text-indent: 0px; margin-right: 0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px"><font style="color: #000000">
</font>(A) = the closing stock price (trade) or Fair Market Value
on the trading day immediately preceding the date of such
election,;</font></div>
<div style="text-align: justify; margin-left: 48px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 48px; text-indent: 0px; margin-right: 0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">(B)
= the Exercise Price of the Option, as adjusted; and</font></div>
<div style="text-align: justify; margin-left: 48px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 48px; text-indent: 0px; margin-right: 0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">(X)
=&#xA0; the number of Option Shares issuable upon exercise of the
Option in accordance with the terms of the Option by means of a
cash exercise rather than a cashless exercise.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Notwithstanding
anything herein to the contrary, on the Termination Date,
unexercised vested Options shall be automatically exercised via
cashless exercise pursuant to this Section 6(d).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">(e)&#xA0; Vesting.</font>&#xA0; (i) The total
number of shares of Common Stock subject to an Option may, but need
not, vest and therefore become exercisable in periodic installments
that may, but need not, be equal.&#xA0;&#xA0;The Option may be
subject to such other terms and conditions on the time or times
when it may be exercised (which may be based on performance or
other criteria) as the Board may deem appropriate.&#xA0;&#xA0;The
vesting provisions of individual Options may vary.&#xA0;&#xA0;The
provisions of this subsection&#xA0;6(e) are subject to any Option
provisions governing the minimum number of shares of Common Stock
as to which an Option may be exercised.</font></div>
<div style="text-align: justify; margin-left: 0px; text-indent: 24px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(f</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Termination of Continuous
Service</font>.&#xA0;&#xA0;In the event an Optionholder&#x2019;s
Continuous Service terminates, the Optionholder (or the
Optionholder&#x2019;s heirs, executor or successors) may exercise
his or her Option (to the extent that the Optionholder was entitled
to exercise such Option as of the date of termination) but only
within such period of time ending on the earlier of (i)&#xA0;the
date three (3) months following the termination of the
Optionholder&#x2019;s Continuous Service (or such longer period
specified in the Option Agreement), or (ii)&#xA0;the expiration of
the term of the Option as set forth in the Option
Agreement.&#xA0;&#xA0;If, after termination, the Optionholder does
not exercise his or her Option within the time specified in the
Option Agreement, the Option shall be exercised on a cashless basis
per section 6(d) or terminate.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(g</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Extension of Termination
Date</font>.&#xA0;&#xA0;An Optionholder&#x2019;s Option Agreement
may also provide that if the exercise of the Option following the
termination of the Optionholder&#x2019;s Employment and/or
Continuous Service would be prohibited at any time solely because
the issuance of shares of Common Stock would violate the
registration requirements under the Securities Act, then the Option
shall terminate on the earlier of (i)&#xA0;the expiration of the
term of the Option set forth in Section&#xA0;6(a) or (ii)&#xA0;the
expiration of a period of six (6) months after the termination of
the Optionholder&#x2019;s Continuous Service during which the
exercise of the Option would not be in violation of such
registration requirements.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">(h</font><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
Intentionally Left Blank.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">(i</font><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
Intentionally Left Blank.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(j</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Early
Exercise</font>.&#xA0;&#xA0;The Option may, but need not, include a
provision whereby the Optionholder may elect at any time before the
Optionholder&#x2019;s Continuous Service terminates to exercise the
Option as to any part or all of the shares of Common Stock subject
to the Option prior to the full vesting of the
Option.&#xA0;<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
7.&#xA0;&#xA0;&#xA0;&#xA0;Provisions of Stock Awards other than
Options.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Stock
Awards</font>.&#xA0;&#xA0;Each Stock Award Agreement with regard to
Common Stock shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate.&#xA0;&#xA0;The
terms and conditions of Stock Award Agreements for Common Stock may
change from time to time, and the terms and conditions of separate
Stock Award Agreements for Common Stock need not be identical, but
each Stock Award Agreement shall include (through incorporation of
provisions hereof by reference in the agreement or otherwise) the
substance of each of the following provisions:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-7-</font></div>
</div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(i</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
Consideration</font>.&#xA0;&#xA0;A Stock Award of Common Stock may
be awarded in consideration for past services actually rendered to
the Company or an Affiliate for its benefit.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
Vesting</font>.&#xA0;&#xA0;Stock Awards other than Options shall
vest in accordance with the schedule determined by the Board, which
shall be set forth in the applicable Stock Award
Agreement.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(iii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Termination of
Participant&#x2019;s Continuous Service</font>.&#xA0;&#xA0;In the
event a Participant&#x2019;s Continuous Service terminates, the
Company may reacquire any or all of the shares of Common Stock held
by the Participant which have not vested as of the date of
termination under the terms of the Stock Award
Agreement.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Restricted Stock
Awards</font>.&#xA0;&#xA0;Each Stock Award Agreement with regard to
Restricted Stock shall be in such form and shall contain such terms
and conditions as the Board shall deem appropriate.&#xA0;&#xA0;The
terms and conditions of the Stock Award Agreement may change from
time to time, and the terms and conditions of separate Stock Award
Agreement for Restricted Stock need not be identical, but each
Stock Award Agreement regarding Restricted Stock shall include
(through incorporation of provisions hereof by reference in the
agreement or otherwise) the substance of each of the following
provisions:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(i</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
Transferability</font>.&#xA0;&#xA0;Except as provided in this
Section 7(b) or Section 10, shares of Restricted Stock may not be
sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated until such time as the shares of Restricted Stock have
vested.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Other
Restrictions</font>.&#xA0;&#xA0;The Board, in its sole discretion,
may impose such other restrictions on shares of Restricted Stock as
it may deem advisable or appropriate.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(iii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Removal of
Restrictions</font>.&#xA0;&#xA0;Except as otherwise provided in
this Section 7(b), shares of Restricted Stock covered by each
Restricted Stock grant made under the Plan will be released from
escrow as soon as practicable after the date the shares of
Restricted Stock vest or at such other time as the Board may
determine.&#xA0;&#xA0;The Board, in its discretion, may accelerate
the time at which any restrictions will lapse or be
removed.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(iv</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Voting
Rights</font>.&#xA0;&#xA0;During the period in which the shares of
Restricted Stock are not transferable, Participants holding shares
of Restricted Stock granted hereunder may exercise full voting
rights with respect to those Shares, unless the Board determines
otherwise.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(v</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Dividends and Other
Distributions</font>.&#xA0;&#xA0;During the period in which the
shares of Restricted Stock are not transferable, Participants
holding shares of Restricted Stock will be entitled to receive all
dividends and other distributions paid with respect to such shares,
unless the Board provides otherwise.&#xA0;&#xA0;If any such
dividends or distributions are paid in shares, the shares will be
subject to the same restrictions on transferability and
forfeitability as the shares of Restricted Stock with respect to
which they were paid.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(vi</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Return of Restricted
Stock to the Company</font>.&#xA0;&#xA0;On the date set forth in
the Stock Award Agreement, the Restricted Stock for which
restrictions have not lapsed will revert to the Company and again
will become available for grant under the Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Restricted Stock
Units</font>.&#xA0;&#xA0;Restricted Stock Units may be granted at
any time and from time to time as determined by the
Board.&#xA0;&#xA0;After the Board determines that it will grant
Restricted Stock Units under the Plan, it shall advise the
Participant in a Stock Award Agreement for Restricted Stock Units
of the terms, conditions, and restrictions related to the grant,
including the number of Restricted Stock Units.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(i</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Vesting Criteria and
Other Terms</font>.&#xA0;&#xA0;The Board shall set vesting criteria
in its discretion, which, depending on the extent to which the
criteria are met, will determine the number of Restricted Stock
Units that will be paid out to the Participant.&#xA0;&#xA0;The
Board may set vesting criteria based upon the achievement of
Company-wide, business unit, or individual goals (including, but
not limited to, continued employment), or any other basis
determined by the Board in its discretion.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-8-</font></div>
</div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(ii</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font></font> <font style="font-weight: bold">Settlement of Restricted Stock
Units</font>.&#xA0;&#xA0;Restricted Stock Units shall be settled
within 10 business days after vesting, either by delivery to the
Participant of shares of Common Stock (with appropriate Securities
Act restrictive legends) or, at the election of the Company, by
delivery to the Participant of a cash payment based upon the Fair
Market Value of the Company&#x2019;s Common Stock on the date of
vesting for each Restricted Stock Unit
vested.&#xA0;<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
8.&#xA0;&#xA0;&#xA0;&#xA0;Covenants of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Availability of
Shares</font>.&#xA0;&#xA0;During the terms of the Stock Awards, the
Company shall keep available at all times the number of shares of
Common Stock required to satisfy such Stock Awards.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Securities Law
Compliance</font>.&#xA0;&#xA0;The Company shall seek to obtain from
each regulatory commission or agency having jurisdiction over the
Plan such authority as may be required to grant Stock Awards and to
issue and sell shares of Common Stock upon exercise of the Stock
Awards; <font style="font-style: italic">provided, however</font>,
that this undertaking shall not require the Company to register
under the Securities Act the Plan, any Stock Award or any Common
Stock issued or issuable pursuant to any such Stock
Award.&#xA0;&#xA0;If, after reasonable efforts, the Company is
unable to obtain from any such regulatory commission or agency the
authority which counsel for the Company deems necessary for the
lawful issuance and sale of Common Stock under the Plan, the
Company shall be relieved from any liability for failure to issue
and sell Common Stock upon exercise of such Stock Awards unless and
until such authority is obtained.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
9.&#xA0;&#xA0;&#xA0;&#xA0;Use of Proceeds from Stock</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">Proceeds from the
sale of Common Stock pursuant to Stock Awards shall constitute
general funds of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
10.&#xA0;&#xA0;&#xA0;Transferability of Awards.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
General</font>.&#xA0;&#xA0;Unless determined otherwise by the
Board, a Stock Award may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than
by will, by the laws of descent or distribution, to a revocable
trust, or as permitted by Rule 701, and may be exercised, during
the lifetime of the Participant, only by the
Participant.&#xA0;&#xA0;If the Board makes a Stock Award
transferable, such Stock Award will contain such additional terms
and conditions as the Board deems appropriate.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Stock Award Transfer
Program</font>.&#xA0;&#xA0;Notwithstanding any contrary provision
of the Plan, the Board shall have all discretion and authority to
determine and implement the terms and conditions of any Stock Award
Transfer Program instituted pursuant to this Section 10(b) and
shall have the authority to amend the terms of any Stock Award
participating, or otherwise eligible to participate in, the Stock
Award Transfer Program, including (but not limited to) the
authority to (i) amend (including to extend) the expiration date,
post-termination exercise period and/or forfeiture conditions of
any such Stock Award, (ii) amend or remove any provisions of the
Stock Award relating to the Stock Award holder&#x2019;s continued
service to the Company, (iii) amend the permissible payment methods
with respect to the exercise or purchase of any such Stock Award,
(iv) amend the adjustments to be implemented in the event of
changes in the capitalization and other similar events with respect
to such Stock Award, and (v) make such other changes to the terms
of such Stock Award as the Board deems necessary or appropriate in
its sole discretion.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
11.&#xA0;&#xA0;&#xA0;Miscellaneous.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Acceleration of
Exercisability and Vesting</font>.&#xA0;&#xA0;The Board shall have
the power to accelerate the time at which a Stock Award may first
be exercised or the time during which a Stock Award or any part
thereof will vest in accordance with the Plan, notwithstanding the
provisions in the Stock Award stating the time at which it may
first be exercised or the time during which it will
vest.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-9-</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Stockholder
Rights</font>.&#xA0;&#xA0;Except to the limited extent provided in
Section 7(b), no Participant (nor any beneficiary) shall have any
of the rights or privileges of a stockholder of the Company with
respect to any shares of Common Stock issuable pursuant to a Stock
Award (or exercise thereof), unless and until certificates
representing such shares shall have been issued, recorded on the
records of the Company or its transfer agents or registrars, and
delivered to the Participant (or beneficiary).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> No Employment or other
Service Rights</font>.&#xA0;&#xA0;Nothing in the Plan or any
instrument executed or Stock Award granted pursuant thereto shall
confer upon any Participant any right to continue to serve the
Company or an Affiliate in the capacity in effect at the time the
Stock Award was granted or shall affect the right of the Company or
an Affiliate to terminate (i)&#xA0;the employment of an Employee
with or without notice and with or without cause, (ii)&#xA0;the
service of a Consultant pursuant to the terms of such
Consultant&#x2019;s agreement with the Company or an Affiliate or
(iii)&#xA0;the service of a Director pursuant to the Bylaws of the
Company or an Affiliate, and any applicable provisions of the
corporate law of the state in which the Company or the Affiliate is
incorporated, as the case may be.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">(d</font><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font>
Intentionally Left Blank.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(e</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Investment
Assurances</font>.&#xA0;&#xA0;The Company may require a
Participant, as a condition of exercising or acquiring Common Stock
under any Stock Award, (i)&#xA0;to give written assurances
satisfactory to the Company as to the Participant&#x2019;s knowledge
and experience in financial and business matters and/or to employ a
purchaser representative reasonably satisfactory to the Company who
is knowledgeable and experienced in financial and business matters
and that he or she is capable of evaluating, alone or together with
the purchaser representative, the merits and risks of exercising
the Stock Award; and (ii)&#xA0;to give written assurances
satisfactory to the Company stating that the Participant is
acquiring Common Stock subject to the Stock Award for the
Participant&#x2019;s own account and not with any present intention
of selling or otherwise distributing the Common
Stock.&#xA0;&#xA0;The foregoing requirements, and any assurances
given pursuant to such requirements, shall be inoperative if
(1)&#xA0;the issuance of the shares of Common Stock upon the
exercise or acquisition of Common Stock under the Stock Award has
been registered under a then currently effective registration
statement under the Securities Act or (2)&#xA0;as to any particular
requirement, a determination is made by counsel for the Company
that such requirement need not be met in the circumstances under
the then applicable securities laws.&#xA0;&#xA0;The Company may,
upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary
or appropriate in order to comply with applicable securities laws,
including, but not limited to, legends restricting the transfer of
the Common Stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(f</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Withholding
Obligations</font>.&#xA0;&#xA0;To the extent provided by the terms
of a Stock Award Agreement, the Participant may satisfy any
federal, state or local tax withholding obligation relating to the
exercise or acquisition of Common Stock under a Stock Award by any
of the following means, <font style="color: #000000">if authorized
by the Board in its sole discretion, after considering any tax,
accounting and financial consequences</font><font style="color: #000000; font-family: Times New Roman">&#xA0;</font>(in
addition to the Company&#x2019;s right to withhold from any
compensation paid to the Participant by the Company), or by a
combination of such means: (i)&#xA0;tendering a cash payment;
(ii)&#xA0;authorizing the Company to withhold shares of Common
Stock from the shares of Common Stock otherwise issuable to the
Participant as a result of the exercise or acquisition of Common
Stock under the Stock Award, <font style="font-style: italic">provided, however</font>, that no shares of
Common Stock are withheld with a value exceeding the minimum amount
of tax required to be withheld by law; or (iii)&#xA0;delivering to
the Company owned and unencumbered shares of Common
Stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(g</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Information
Obligation</font>.&#xA0;&#xA0;To the extent required by applicable
state law, the Company shall deliver financial statements to
Participants at least annually.&#xA0;&#xA0;This
subsection&#xA0;10(g) shall not apply to key Employees whose duties
in connection with the Company assure them access to equivalent
information.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
12.&#xA0;&#xA0;&#xA0;Adjustments upon Changes in
Stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Capitalization
Adjustments</font>.&#xA0;&#xA0;If any change is made in the Common
Stock subject to the Plan, or subject to any Stock Award, without
the receipt of consideration by the Company (through merger,
consolidation, reorganization, recapitalization, reincorporation,
stock dividend, dividend in property other than cash, stock split,
liquidating dividend, combination of shares, exchange of shares,
change in corporate structure or other transaction not involving
the receipt of consideration by the Company), the Plan will be
appropriately adjusted in the class(es) and maximum number of
securities subject to the Plan pursuant to Section&#xA0;4(a) and
the maximum number of securities subject to award to any person
pursuant to Section&#xA0;5(c), and the outstanding Stock Awards
will be appropriately adjusted in the class(es) and number of
securities and price per share of Common Stock subject to such
outstanding Stock Awards.&#xA0;&#xA0;The Board shall make such
adjustments, and its determination shall be final, binding and
conclusive.&#xA0;&#xA0;(The conversion of any convertible
securities of the Company shall not be treated as a transaction
&#x201C;without receipt of consideration&#x201D; by the
Company.)</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Dissolution or
Liquidation</font>.&#xA0;&#xA0;In the event of a dissolution or
liquidation of the Company, then all outstanding Stock Awards shall
terminate immediately prior to such event.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Asset Sale, Merger,
Consolidation or Reverse Merger</font>.&#xA0;&#xA0;In the event of
(i)&#xA0;a sale, lease or other disposition of all or substantially
all of the assets of the Company, (ii)&#xA0;a merger or
consolidation in which the Company is not the surviving corporation
or (iii)&#xA0;a reverse merger in which the Company is the
surviving corporation but the shares of Common Stock outstanding
immediately preceding the merger are converted by virtue of the
merger into other property, whether in the form of securities, cash
or otherwise (individually, a &#x201C;Corporate Transaction&#x201D;),
then any surviving corporation or acquiring corporation shall
assume any Stock Awards outstanding under the Plan or shall
substitute similar stock awards (including an award to acquire the
same consideration paid to the stockholders in the Corporate
Transaction) for those outstanding under the Plan.&#xA0;&#xA0;In
the event any surviving corporation or acquiring corporation
refuses to assume such Stock Awards or to substitute similar stock
awards for those outstanding under the Plan, then with respect to
Stock Awards held by Participants whose Continuous Service has not
terminated, the vesting of such Stock Awards (and, if applicable,
the time during which such Stock Awards may be exercised) shall be
accelerated in full, and the Stock Awards shall terminate if not
exercised (if applicable) at or prior to the Corporate
Transaction.&#xA0;&#xA0;With respect to any other Stock Awards
outstanding under the Plan, such Stock Awards shall terminate if
not exercised (if applicable) prior to the Corporate Transaction.
Notwithstanding the foregoing provisions of this paragraph,
Participants shall be allowed not less than six (6) months to
exercise Stock Awards so vested.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
13.&#xA0;&#xA0;&#xA0;Amendment of the Plan and Stock
Awards.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Amendment of
Plan</font>.&#xA0;&#xA0;The Board at any time, and from time to
time, may amend the Plan.&#xA0;&#xA0;However, except as provided in
Section&#xA0;12 relating to adjustments upon changes in Common
Stock, no amendment shall be effective unless approved by the
stockholders of the Company to the extent stockholder approval is
necessary to satisfy the requirements of Section&#xA0;422 of the
Code, Rule&#xA0;16b-3 or any NASDAQ or securities exchange listing
requirements.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Stockholder
Approval</font>.&#xA0;&#xA0;The Board may, in its sole discretion,
submit any other amendment to the Plan for stockholder approval,
including, but not limited to, amendments to the Plan intended to
satisfy the requirements of Section&#xA0;162(m) of the Code and the
regulations thereunder regarding the exclusion of performance-based
compensation from the limit on corporate deductibility of
compensation paid to certain executive officers.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(c</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Contemplated
Amendments</font>.&#xA0;&#xA0;It is expressly contemplated that the
Board may amend the Plan in any respect the Board deems necessary
or advisable to provide eligible Employees with the maximum
benefits provided or to be provided under the provisions of the
Code and the regulations promulgated thereunder relating to
Incentive Stock Options and/or to bring the Plan and/or Incentive
Stock Options granted under it into compliance
therewith.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(d</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> No Impairment of
Rights</font>.&#xA0;&#xA0;Rights under any Stock Award granted
before amendment of the Plan shall not be impaired by any amendment
of the Plan unless (i)&#xA0;the Company requests the consent of the
Participant and (ii)&#xA0;the Participant consents in
writing.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(e</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Amendment of Stock
Awards</font>.&#xA0;&#xA0;The Board at any time, and from time to
time, may amend the terms of any one or more Stock Awards;
<font style="font-style: italic">provided, however</font>, that the
rights under any Stock Award shall not be impaired by any such
amendment unless (i)&#xA0;the Company requests the consent of the
Participant, and (ii)&#xA0;the Participant consents in
writing.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
14.&#xA0;&#xA0;&#xA0;Termination or Suspension of the
Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(a</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> Plan
Term</font>.&#xA0;&#xA0;The Board may suspend or terminate the Plan
at any time.&#xA0;&#xA0;Unless sooner terminated, the Plan shall
terminate on the day before the tenth (10th) anniversary of the
date the Plan is adopted by the Board.&#xA0;&#xA0;No Stock Awards
may be granted under the Plan while the Plan is suspended or after
it is terminated.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">(b</font></font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">)&#xA0;</font></font> No Impairment of
Rights</font>.&#xA0;&#xA0;Suspension or termination of the Plan
shall not impair rights and obligations under any Stock Award
granted while the Plan is in effect except with the written consent
of the Participant.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
15.&#xA0;&#xA0;&#xA0;Effective Date of Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">The
Plan shall become effective as of the date of approval by the
Board.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">
16.&#xA0;&#xA0;&#xA0;Choice of Law.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">The law
of the State of Delaware shall govern all questions concerning the
construction, validity and interpretation of this Plan, without
regard to such state&#x2019;s conflict of laws rules.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">IN
WITNESS WHEREOF, the Company, by its duly authorized officer, has
executed this Plan on the date indicated below.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 51%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">WRAP
TECHNOLOGIES, INC.&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 51%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 49%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Dated:
March 31, 2017</font></div>
</td>
<td style="vertical-align: middle; width: 51%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline"><font style="font-family: Times New Roman; font-size: 13px">/s/ James A.
Barnes</font></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 51%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Name:
James A. Barnes</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 51%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Title:
Chief Executive Officer</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Approved By the Board of Directors on March 28, 2017</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Approved By Stockholders: March 28, 2017</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Termination Date: March 28, 2027</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-12-</font></div>
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