Exhibit 10.3
TIZIANA LIFE SCIENCES LTD
2021 EQUITY INCENTIVE PLAN1
Section 1. Purpose of
the Plan.
The purpose of the Tiziana
Life Sciences Ltd 2021 Equity Incentive Plan (the “Plan”) is to assist the Company and its Subsidiaries in attracting
and retaining valued Employees, Consultants and Non-Employee Directors by offering them a greater stake in the Company’s success
and a closer identity with it, and to encourage ownership of the Company’s shares by such Employees, Consultants and Non-Employee
Directors.
Upon the approval of the Plan
by the shareholders of the Company, no new awards will be granted under the Tiziana Life Sciences plc Employee Share Option Plan with
Non-Employee Sub-Plan and US Sub-Plan with California Supplement, as amended and/or restated from time to time (collectively, the “Prior
Equity Plan”).
Section 2. Definitions.
As used herein, the following
definitions shall apply:
2.1. “Award”
means the grant of Options, SARs, Restricted Stock, Restricted Stock Units, Performance Stock, Performance Stock Units and Other Share-Based
Awards under the Plan.
2.2. “Award
Agreement” means the written agreement, instrument or document evidencing an Award.
2.3. “Board”
means the Board of Directors of the Company.
2.4.
“Bye-laws” means the bye-laws of the Company, as amended and/or restated and in effect from time to time.
2.5. “Cause”
means,
(a) if
the applicable Participant is party to an effective employment, consulting, severance or similar agreement with the Company or a Subsidiary,
and such term is defined therein, “Cause” shall have the meaning provided in such agreement;
(b) if
the applicable Participant is not a party to an effective employment, consulting, severance or similar agreement with the Company or a
Subsidiary or if no definition of “Cause” is set forth in the applicable employment, consulting, severance or similar agreement,
“Cause” shall have the meaning provided in the applicable Award Agreement;
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All share numbers will be adjusted in connection with any stock
split, reverse stock split or similar capitalization adjustment pursuant to Section 8.1
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(c) if
neither clause (a) nor clause (b) applies, then “Cause” shall mean the Participant’s (i) engaging in (A) willful
or gross misconduct or (B) willful or gross neglect; (ii) failing to follow the lawful directions of superiors or the Board or the
written policies and practices of the Company or any Subsidiary; (iii) indictment for, conviction of, plea of guilty or no contest to,
or commission of, a felony or a crime involving any of the following: moral turpitude, dishonesty, breach of trust or unethical business
conduct; or indictment for, conviction of, plea of guilty or no contest to, or commission of, any crime involving the Company or any Subsidiary;
(iv) fraud, misappropriation or embezzlement; (v) material breach of the Participant’s employment or service agreement (if any)
with the Company or any Subsidiary, whether or not such breach results in the termination of the Participant’s employment or other
service; (vi) acts or omissions constituting a material failure to perform substantially and adequately the duties assigned to the Participant
that are consistent with his or her position(s); (vii) illegal act detrimental to the Company or any Subsidiary; (viii) repeated failure
to devote substantially all of the Participant’s business time and efforts to the Company or any Subsidiary if required by the Participant’s
employment or service agreement; or (ix) abuse of illegal drugs or other controlled substances or the Participant’s habitual intoxication
while providing services to the Company or any Subsidiary; or
(d) in
respect of the removal of a director of the Company by shareholders, if none of clauses (a) to (c) apply, as “cause” is used
in the Bye-laws.
A Participant’s resignation
or death, in either case, at a time when Cause to terminate the Participant’s employment or other service exists shall be treated
as a termination for Cause for all purposes of the Plan and the Participant’s Awards and Award Agreements.
2.6. “Change
in Control” means, unless otherwise provided in an Award Agreement, after the Effective Date:
(a) the
acquisition in one or more transactions (whether by purchase, merger, amalgamation or otherwise) by any “Person” (as such
term is used for purposes of Section 13(d) or Section 14(d) of the Exchange Act, but excluding, for this purpose, (i) the
Company and the Subsidiaries, (ii) any employee benefit plan of the Company or any Subsidiary or (iii) an entity owned, directly
or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of shares of the Company) of
“Beneficial Ownership” (within the meaning of Rule 13d-3 under the Exchange Act), of more than fifty percent (50%) of
the combined voting power of the Company’s then issued and outstanding voting securities (the “Voting Securities”);
(b) a
change in the composition of the Board such that the individuals who as of any date constitute the Board (the “Incumbent Board”)
cease to constitute a majority of the Board at any time during the 24-month period immediately following such date; provided, however,
that if the election, or nomination for election by the Company’s shareholders, of any new director was approved by a vote of at
least a majority of the Incumbent Board, such new director shall be considered as a member of the Incumbent Board, and provided further
that any reductions in the size of the Board that are instituted voluntarily by the Incumbent Board shall not constitute a Change in Control,
and after any such reduction the “Incumbent Board” shall mean the Board as so reduced;
(c) a
complete liquidation or dissolution or winding up of the Company (other than pursuant to a transaction in which the assets of the Company
are distributed to an entity owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as
their ownership of shares of the Company); or
(d) the
sale, directly or indirectly, of all or substantially all of the Company’s and its Subsidiaries’ assets (determined on a consolidated
basis), other than to a Person described in any of clauses (i), (ii) or (iii) of Section 2.6(a) above.
Notwithstanding the foregoing, (i) a restructuring,
reorganization or similar or analogous event in which the shareholders of the Company immediately before such event have “Beneficial
Ownership” (within the meaning of Rule 13d-3 under the Exchange Act) of the Company, or of the resulting entity, immediately
after such event in substantially the same proportions as their ownership of Shares of the Company immediately before such event shall
not constitute a Change in Control and (ii) an IPO shall not be considered a Change in Control.
2.7. “Code”
means the Internal Revenue Code of 1986, as amended.
2.8. “Company”
means Tiziana Life Sciences Ltd, an exempted company incorporated under the laws of Bermuda, or any successor corporation or company.
2.9. “Committee”
means the Compensation Committee of the Board, provided that the Committee shall at all times have at least two members, each of whom
shall be a “non-employee director” as defined in Rule 16b-3 under the Exchange Act and an “independent director”
under the rules of any applicable stock exchange.
2.10. “Consultant”
means a natural person (within the meaning of Form S-8 of the Securities Act) who provides bona fide services to the Company or any Subsidiary
other than in connection with the offer or sale of Shares or other securities or shares in a capital-raising transaction and is not engaged
in activities that directly or indirectly promote or maintain a market for the Shares or other securities of the Company.
2.11. “Disability”
means,
(a) if
the applicable Participant is party to an effective employment, consulting, severance or similar agreement with the Company or a Subsidiary,
and such term is defined therein, “Disability” shall have the meaning provided in such agreement;
(b) if
the applicable Participant is not a party to an effective employment, consulting, severance or similar agreement with the Company or a
Subsidiary or if no definition of “Disability” is set forth in the applicable employment, consulting, severance or similar
agreement, “Disability” shall have the meaning provided in the applicable Award Agreement;
(c) if
neither clause (a) nor clause (b) applies, then “Disability” shall mean that the Participant is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which
has lasted or can be expected to last for a continuous period of not less than 12 months.
2.12. “Effective
Date” means the day immediately prior to the IPO Registration Date, provided that the Plan is approved by the shareholders of
the Company prior to such day.
2.13. “Employee”
means an officer or other employee of the Company or a Subsidiary, including without limitation a director who is such an employee.
2.14. “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the regulations issued thereunder.
2.15. “Fair
Market Value” means, on any given date (i) if the Shares are listed on any established stock exchange or a national market
system, including without limitation NASDAQ, the closing sales price for such Shares as quoted on such exchange or system on the day of
determination, as reported in The Wall Street Journal or such other source as the Committee deems reliable (or, if no closing sales
price was reported on that date, on the last trading date such closing sales price was reported); (ii) if clause (i) does not
apply, then if the Shares are regularly quoted by a recognized securities dealer but selling prices are not reported, the mean between
the high bid and low asked prices for the Shares on the day of determination (or, if no bids and asks were reported on that date, on the
last trading date such bids and asks were reported); or (iii) if neither clause (i) nor clause (ii) applies, such value
as the Committee in its discretion may in good faith determine in accordance with Section 409A of the Code and the regulations thereunder
(and, with respect to Incentive Stock Options, in accordance with Section 422 of the Code and the regulations thereunder).
2.16. “IPO”
means (i) the initial public offering of the Company’s Shares, other than pursuant to a Form S-8 (or any successor form thereto),
or (ii) the Company’s Shares becoming subject to registration under the Exchange Act.
2.17. “IPO
Registration Date” means the date on which the Company’s registration statement on Form S-1 in connection with its
initial public offering of Shares is declared effective by the Securities and Exchange Commission under the Securities Act.
2.18.
“Incentive Stock Option” means an Option or portion thereof intended to meet the requirements of an incentive stock
option as defined in Section 422 of the Code and designated as an Incentive Stock Option, and which in fact meets such requirements
of Section 422 of the Code.
2.19. “Incumbent
Director” means a director who either (i) is a member of the Board as of the Effective Date, or (ii) is elected, or
nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such
election or nomination.
2.20. “Non-Employee
Director” means a member of the Board who is not an Employee.
2.21. “Non-Qualified
Option” means an Option or portion thereof that is designated as not being an Incentive Stock Option or that does not otherwise
qualify as an Incentive Stock Option.
2.22. “Option”
means a right granted under Section 6.1 of the Plan to purchase a specified number of Shares at a specified price. An Option may
be an Incentive Stock Option or a Non-Qualified Option; provided, however, that unless otherwise explicitly stated in an Award Agreement,
each Option is hereby designated as a Non-Qualified Option.
2.23. “Other
Share-Based Award” means a right granted under Section 6.7 of the Plan.
2.24. “Participant”
means any Employee, Non-Employee Director or Consultant who receives an Award.
2.25. “Performance
Goals” means any goals established by the Committee in its sole discretion, the attainment of which is substantially uncertain
at the time such goals are established. Performance Goals may be described in terms of Company-wide objectives or objectives that are
related to the performance of the individual Participant or a Subsidiary, division, department or function within the Company or a Subsidiary.
Performance Goals may be measured on an absolute or relative basis. Relative performance may be measured, for example, by a group of peer
companies or by a financial market index. Performance Goals may include, but are not limited to: achievement
of specified research and development, publication, clinical and/or regulatory milestones, total shareholder return, earnings before interest,
taxes, depreciation and amortization, net income (loss) (either before or after interest, taxes, depreciation and/or amortization), changes
in the market price of the Shares, economic value-added, funds from operations or similar measure, sales or revenue, acquisitions or strategic
transactions, operating income (loss), cash flow (including, but not limited to, operating cash flow and free cash flow), return on capital,
assets, equity, or investment, return on sales, gross or net profit levels, productivity, expense, margins, operating efficiency, customer
satisfaction, working capital, earnings (loss) per Share, sales or market shares and number of customers, any of which may be measured
either in absolute terms or as compared to any incremental increase or as compared to results of a peer group, and any combination
of any of the foregoing criteria. If the Committee determines that a change in the business, operations, corporate structure or capital
structure of the Company or a Subsidiary, or the manner in which it conducts its business, or other events or circumstances render the
Performance Goals unsuitable, the Committee may modify such Performance Goals and/or the related minimum, target, maximum and/or other
acceptable levels of achievement, in whole or in part, as the Committee deems appropriate and equitable.
2.26. “Performance
Period” means the period selected by the Committee during which performance is measured for the purpose of determining the extent
to which a Performance Goal has been achieved.
2.27. “Performance
Stock” means Shares awarded by the Committee under Section 6.6 of the Plan that are subject to Performance Goals.
2.28. “Performance
Stock Unit” means the right granted under Section 6.5 of the Plan to receive, on the date of settlement, one Share or an
amount equal to the Fair Market Value of one Share, which right is subject to Performance Goals. Performance Stock Units may be settled
in cash, Shares or any combination thereof; provided, however, that unless otherwise provided in an Award Agreement, Performance Stock
Units shall be settled in Shares.
2.29. “Person”
means an individual, corporation, partnership, association, company, estate or other entity.
2.30. “Restricted
Stock” means a Share awarded by the Committee under Section 6.3 of the Plan.
2.31. “Restricted
Stock Unit” means the right granted under Section 6.4 of the Plan to receive, on the date of settlement, one Share or an
amount equal to the Fair Market Value of one Share. An Award of Restricted Stock Units may be settled in cash, Shares or any combination
of the foregoing; provided, however, that unless otherwise provided in an Award Agreement, Restricted Stock Units shall be settled in
Shares.
2.32. “Restriction
Period” means the period during which Performance Stock, Performance Stock Units, Restricted Stock and Restricted Stock Units
are subject to forfeiture.
2.33. “SAR”
means a share appreciation right awarded by the Committee under Section 6.2 of the Plan.
2.34. “Securities
Act” means the Securities Act of 1933, as amended.
2.35. “Share”
means one common share of the Company, par value $0.0005 per share, or any shares hereafter issued or which may be issuable in substitution
or exchange for a Share.
2.36. “Subsidiary”
means any corporation, partnership, joint venture, company or other business entity of which 50% or more of the issued and outstanding
voting power is beneficially owned, directly or indirectly, by the Company.
2.37. “Ten
Percent Shareholder” means a Person who on any given date owns, either directly or indirectly (taking into account the attribution
rules contained in Section 424(d) of the Code), shares possessing more than 10% of the total combined voting power of all classes
of shares of the Company, a “parent” or a “subsidiary” (as the terms “parent” and “subsidiary”
are defined in Code Section 424).
Section 3. Eligibility.
Any Employee, Non-Employee
Director or Consultant shall be eligible to be selected to receive an Award under the Plan, as determined in the sole discretion of the
Committee.
Section 4. Administration
of the Plan.
4.1. The
Plan and all Award Agreements shall be administered by the Committee. Any action of the Committee in administering the Plan and an Award
Agreement shall be final, conclusive and binding on all Persons, including without limitation the Company, its Subsidiaries, Participants,
Persons claiming rights from or through Participants and shareholders of the Company. No member of the Committee (or any person to whom
the Committee has delegated authority to act under the Plan) shall be personally liable for any action, determination, or interpretation
taken or made in good faith by the Committee (or such person) with respect to the Plan or any Awards granted hereunder, and all members
of the Committee (and such persons to whom the Committee has delegated authority to act under the Plan) shall be fully indemnified and
protected by the Company in respect of any such action, determination or interpretation to the fullest extent permitted by applicable
law.
4.2. Subject
to the provisions of the Plan, the Committee shall have full and final authority in its discretion to (i) select the Employees, Non-Employee
Directors and Consultants who will receive Awards pursuant to the Plan; provided that Awards granted to Non-Employee Directors shall be
subject to approval by the full Board; (ii) determine the type or types of Awards to be granted to each Participant; (iii) determine
the number of Shares to which an Award will relate, the terms and conditions of any Award granted under the Plan (including, but not limited
to, restrictions as to vesting, Performance Goals relating to an Award, transferability or forfeiture, exercisability or settlement of
an Award, waivers or accelerations thereof, and waivers of or modifications to Performance Goals relating to an Award, based in each case
on such considerations as the Committee shall determine) and all other matters to be determined in connection with an Award; (iv) determine
the exercise price or purchase price (if any) of an Award; (v) determine whether, to what extent, and under what circumstances an
Award may be cancelled, forfeited, or surrendered; (vi) determine whether (and, if necessary, certify that) Performance Goals to
which an Award is subject are satisfied; (vii) determine whether Participants will be permitted to defer the settlement of certain
Awards; (viii) correct any defect or supply any omission or reconcile any inconsistency in the Plan and Award Agreements, and adopt,
amend and rescind such rules, regulations, guidelines, forms of agreements and instruments relating to the Plan and Award Agreements as
it may deem necessary or advisable; (ix) construe and interpret the Plan and Award Agreements; and (x) make all other determinations
as it may deem necessary or advisable for the administration of the Plan and Award Agreements Notwithstanding anything in the Plan or
an Award Agreement to the contrary, no “underwater” Option or “underwater” SAR may be repriced, replaced or regranted
through cancellation, nor may any “underwater” Option or “underwater” SAR be repurchased for cash, in any case,
without the approval of the shareholders of the Company, provided that nothing herein shall prevent the Committee from taking any action
provided for in Sections 7 or 8 of the Plan.
4.3. To
the extent permitted by applicable law and the Bye-laws, the Committee may delegate some or all of its authority with respect to the Plan
and Awards to any executive officer of the Company or any other person or persons designated by the Committee, in each case, acting individually
or as a committee, provided that the Committee may not delegate its authority hereunder to any person to make Awards to (a) Employees
who are (i) subject to the requirements of Rule 16b-3 of the Exchange Act or (ii) officers or other Employees who are delegated
authority by the Committee pursuant to this Section 4.3 or (b) members of the Board. Any delegation hereunder shall be subject to
the restrictions and limits that the Committee specifies at the time of such delegation or thereafter in its sole discretion. The Committee
may at any time rescind the authority delegated to any person pursuant to this Section 4.3. Any action undertaken by any such person or
persons in accordance with the Committee’s delegation of authority pursuant to this Section 4.3 shall have the same force and effect
as if undertaken directly by the Committee.
4.4. Notwithstanding
any other provision to the contrary, Awards granted to Non-Employee Directors shall be administered by the full Board, and any authority
reserved under the Plan for the Committee with regard to Awards granted to Non-Employee Directors shall be exercised by the full Board.
Section 5. Shares Subject
to the Plan.
5.1. Subject
to adjustment as provided in Section 8 hereof and this Section 5, the maximum number of Shares that may be issued pursuant to
Awards under the Plan shall be 15,000,000 Shares (the “Cap”). The Cap shall be increased by the number of Shares corresponding
(as determined by the Committee in its absolute discretion) to the securities underlying the portion of an award granted under the Prior
Equity Plan that is cancelled, terminated or forfeited or lapses, in any case, on or after the Effective Date. No more than 15,000,000
Shares issued under the Plan may be issued pursuant to the exercise of Incentive Stock Options. The Shares issued under the Plan may,
at the election of the Board, be (i) authorized but previously unissued Shares or (ii) Shares previously issued and outstanding
and repurchased by the Company which have been cancelled or are held in treasury by the Company. Notwithstanding the foregoing, Shares
issued under Awards granted in assumption, substitution or exchange for previously granted awards of a company acquired by the Company
or any Subsidiary (“Substitute Awards”) shall not count against the Cap, and to the extent permitted by the rules of
the stock exchange on which the Shares are then listed or quoted, shares under a shareholder approved plan of an acquired company (adjusted
to reflect the transaction) may be used for Awards under the Plan and do not count against the Cap. No Non-Employee Director may be granted
Awards in any one calendar year covering a number of Shares that have a Fair Market Value on the grant date in excess of (i) $1,000,000
in the first calendar year of such Non-Employee Director’s initial service as a Non-Employee Director or (ii) $750,000 in any other
calendar year of such Non-Employee Director’s service.
5.2. If
any Shares subject to an Award under the Plan are forfeited or such Award otherwise terminates for any reason whatsoever without an actual
distribution of Shares to the Participant, any Shares counted against the number of Shares available for issuance pursuant to the Plan
with respect to such Award shall, to the extent of any such forfeiture or termination, be added back to the Cap and shall again be available
for Awards under the Plan; provided, however, that (i) such treatment shall not apply for Substitute Awards and (ii) the Committee may
adopt procedures for the counting of Shares relating to any Award to ensure appropriate counting, avoid double counting, provide for adjustments
in any case in which the number of Shares actually distributed differs from the number of Shares previously counted in connection with
such Award, and if necessary, to comply with applicable law or regulations. In addition, and notwithstanding anything contained herein
to the contrary, Shares tendered in payment of the exercise price or withholding taxes with respect to an Award shall not become, or again
be, available for Awards under the Plan.
5.3. If,
due to any legal impediment or restriction, Shares which would otherwise be subject to forfeiture are not capable of forfeiture, then
it shall be a term of this Plan and any relevant Award that such Shares shall be forfeited by way of the Company repurchasing the Shares
at their nominal value.
Section 6. Awards.
Awards may be granted on the
terms and conditions set forth in this Section 6. In addition, the Committee may impose on any Award or the settlement or exercise
thereof, at the grant date or thereafter, such additional terms and conditions, not inconsistent with the provisions of the Plan, as the
Committee shall determine, including without limitation terms requiring forfeiture of Awards in the event of a Participant’s termination
of employment or other service with the Company or any Subsidiary; provided, however, that the Committee shall retain full power to accelerate
or waive any such additional term or condition as it may have previously imposed (provided that, in any case, any such action is permitted
under Code Section 409A). The right of a Participant to exercise or receive a grant or settlement of any Award, and the timing thereof,
may be subject to such Performance Goals as may be determined by the Committee. Each Award, and the terms and conditions applicable thereto,
shall be evidenced by an Award Agreement.
6.1. Options. Options
give a Participant the right to purchase a specified number of Shares from the Company for a specified time period at a fixed exercise
price, as provided in the applicable Award Agreement. Options may be either Incentive Stock Options or Non-Qualified Options; provided
that Incentive Stock Options may be granted only to employees of the Company or a “subsidiary” (as defined in Code Section
424(f)) of the Company. The grant of Options shall be subject to the following terms and conditions:
(a) Exercise
Price. The price per Share at which Shares may be purchased upon exercise of an Option shall be determined
by the Committee and specified in the Award Agreement, but shall be not less than the Fair Market Value of one Share on the grant date
(or 110% of the Fair Market Value of one Share on the grant date in the case of an Incentive Stock Option granted to a Ten Percent Shareholder).
(b) Term
of Options. The term of an Option shall be specified in the Award Agreement, but shall in no event be greater
than ten years from the grant date (or five years from the grant date in the case of an Incentive Stock Option granted to a Ten Percent
Shareholder).
(c) Exercise
of Option. Each Award Agreement with respect to an Option shall specify the time or times at which an Option
may be exercised in whole or in part and the terms and conditions applicable thereto, including without limitation (i) a vesting
schedule which may be based upon the passage of time, attainment of Performance Goals or a combination thereof, (ii) whether the
exercise price for an Option shall be paid in cash, with Shares, with any combination of cash and Shares, or with other legal consideration
that the Committee may deem appropriate and to the extent permitted by applicable law, (iii) the methods of payment, which may include
payment through cashless and net exercise arrangements, to the extent permitted by applicable law and (iv) the methods by which,
or the time or times at which, Shares will be delivered or deemed to be delivered to Participants upon the exercise of such Option. Payment
of the exercise price shall in all events be made within three days after the date of exercise of an Option. With respect to any Participant
who is subject to Section 16 of the Exchange Act with respect to the Company, such Participant may direct the Company to reduce the
number of Shares that would otherwise be deliverable upon the exercise of his or her Option by the number of Shares having a Fair Market
Value on the date of exercise equal to the exercise price of the portion of the Option then being exercised.
(d) Incentive
Stock Options. Each Participant awarded an Incentive Stock Option under the Plan shall notify the Company in
writing immediately after the date he or she makes a “disqualifying disposition” (as defined in Section 421(b) of the
Code) of any Shares acquired pursuant to the exercise of such Incentive Stock Option. The Company may, if determined by the Committee
and in accordance with procedures established by it, retain possession of any Shares acquired pursuant to the exercise of an Incentive
Stock Option as agent for the applicable Participant until the end of any period during which a disqualifying disposition could occur,
subject to complying with any instructions from such Participant as to the sale of such Shares. The aggregate Fair Market Value, determined
as of the grant date, for Awards granted under the Plan (or any other stock or share option plan required to be taken into account under
Section 422(d) of the Code) that are intended to be Incentive Stock Options which are first exercisable by the Participant during
any calendar year shall not exceed $100,000. To the extent an Award purporting to be an Incentive Stock Option exceeds the limitation
in the previous sentence or does not otherwise qualify as an Incentive Stock Option, the portion of the Award in excess of such limit
or that does not so qualify shall be a Non-Qualified Option.
(e) No
Dividend Equivalent Rights. No Participant shall be entitled to dividends or dividend equivalent rights or
payments with respect to any Shares underlying the Participant’s Options.
6.2. Share
Appreciation Rights. A SAR shall confer on the Participant a right to receive, upon exercise thereof, the excess of (i) the
Fair Market Value of one Share on the date of exercise over (ii) the grant price of the SAR as determined by the Committee, but which
may never be less than the Fair Market Value of one Share on the grant date. No payment from the Participant shall be required to exercise
a SAR. The grant of SARs shall be subject to the following terms and conditions:
(a) General. Each
Award Agreement with respect to a SAR shall specify the number of SARs granted, the grant price of the SAR, the time or times at which
the SAR may be exercised in whole or in part (including without limitation vesting upon the passage of time, the attainment of Performance
Goals or a combination thereof), the method of exercise, the method of settlement (in cash, Shares or a combination thereof), the method
by which Shares will be delivered or deemed to be delivered to Participants (if applicable) and any other terms and conditions of the
SAR. Unless provided otherwise in an Award Agreement, all SARs shall be settled in Shares.
(b) Term. The
term of a SAR shall be specified in the Award Agreement, but shall in no event be greater than ten years from the grant date.
(c) No
Dividend Equivalent Rights. No Participant shall be entitled to dividends or dividend equivalent rights or
payments with respect to any Shares underlying the Participant’s SARs.
6.3. Restricted
Stock. An Award of Restricted Stock is a grant by the Company of a specified number of Shares to the Participant,
which Shares are subject to forfeiture upon the occurrence of specified events during the Restriction Period. Such an Award shall be subject
to the following terms and conditions:
(a) General. Each
Award Agreement with respect to Restricted Stock shall specify the duration of the Restriction Period and/or each installment thereof,
the conditions under which the Restricted Stock may be forfeited to the Company, and the amount, if any, the Participant must pay to receive
the Restricted Stock. Such restrictions may include a vesting schedule based upon the passage of time.
(b) Transferability. During
the Restriction Period, the transferability of Restricted Stock shall be prohibited or restricted in the manner and to the extent prescribed
in the applicable Award Agreement. Such restrictions may include, without limitation, rights of repurchase or first refusal in the Company
or provisions subjecting the Restricted Stock to a continuing substantial risk of forfeiture in the hands of any transferee.
(c) Shareholder
Rights. Unless otherwise provided in the applicable Award Agreement, during the Restriction Period the Participant
shall have all the rights of a shareholder with respect to Restricted Stock, including, without limitation, the right to receive dividends
thereon (whether in cash or Shares) and to vote such Shares of Restricted Stock in accordance with the Bye-laws. Dividends may, in the
discretion of the Committee, be paid currently or subject to the same restrictions as the underlying Restricted Stock, in either case,
as set forth in the applicable Award Agreement (and the Committee may, in its sole discretion, withhold any cash dividends paid on Restricted
Stock until the restrictions applicable to such Restricted Stock have lapsed); provided, however, that dividends paid on unvested Restricted
Stock that is subject to Performance Goals shall not be paid or released unless and until the applicable Performance Goals have been achieved.
(d) Additional
Matters. Upon an Award of Restricted Stock, the Committee may direct the number of Shares subject to such Award
be issued to the Participant or placed in a restricted stock account (including without limitation an electronic account) with the transfer
agent and in either case designating the Participant as the registered owner. The certificate(s), if any, representing such Shares shall
be physically or electronically legended, as applicable, as to sale, transfer, assignment, pledge or other encumbrances during the Restriction
Period and, if issued to the Participant, returned to the Company to be held in escrow during the Restriction Period. If a share certificate
has been issued to the Participant and if requested by the Committee, the Participant shall sign a share transfer form or other instruments
of assignment (including a power of attorney, as appropriate) endorsed in blank to the Company to be held in escrow during the Restriction
Period.
6.4. Restricted
Stock Units. Restricted Stock Units are solely a device for the measurement and determination of the amounts
to be paid to a Participant under the Plan. Restricted Stock Units do not constitute Shares and shall not be treated as (or as giving
rise to) property or as a trust fund of any kind; provided, however, that the Company may establish a bookkeeping reserve to meet its
obligations hereunder or a trust or other funding vehicle that would not cause the Plan to be deemed to be funded for tax purposes or
for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended. The right of any Participant in respect of
an Award of Restricted Stock Units shall be no greater than the right of any unsecured general creditor of the Company. The grant of Restricted
Stock Units shall be subject to the following terms and conditions:
(a) Restriction
Period. Each Award Agreement with respect to Restricted Stock Units shall specify the duration of the Restriction
Period, if any, and/or each installment thereof and the conditions under which such Award may be forfeited to the Company. Such restrictions
may include a vesting schedule based upon the passage of time.
(b) Settlement. Unless
otherwise provided in an Award Agreement, (i) an Award of Restricted Stock Units shall be settled in Shares, provided that any fractional
Restricted Stock Units shall be settled in cash and (ii) subject to the Participant’s continued employment or other service
with the Company or a Subsidiary from the date of grant through the expiration of the Restriction Period (or applicable portion thereof),
the vested portion of an Award of Restricted Stock Units shall be settled within 60 days after the expiration of the Restriction
Period (or applicable portion thereof).
(c) Shareholder
Rights. Nothing contained in the Plan shall be construed to give any Participant rights as a shareholder with
respect to an Award of Restricted Stock Units (including, without limitation, any voting, dividend or derivative or other similar rights).
Notwithstanding the foregoing, the Committee may provide in an Award Agreement that amounts equal to any dividends declared during the
Restriction Period or deferral period on the Shares represented by an Award of Restricted Stock Units will be credited to the Participant’s
account and settled in Shares unless otherwise specified in the applicable Award Agreement at the same time (and subject to the same forfeiture
restrictions) as the Restricted Stock Units to which such dividend equivalents relate (with the number of Shares released in payment of
such dividend equivalents to equal the amount of dividend equivalents then being settled, divided by the Fair Market Value of one Share
on the settlement date of such dividend equivalents); provided, however, that the Committee may determine at or after the grant date to
settle any such dividend equivalents in cash.
6.5. Performance
Stock Units. Performance Stock Units are solely a device for the measurement and determination of the amounts
to be paid to a Participant under the Plan. Performance Stock Units do not constitute Shares and shall not be treated as (or as giving
rise to) property or as a trust fund of any kind; provided, however, that the Company may establish a bookkeeping reserve to meet its
obligations hereunder or a trust or other funding vehicle that would not cause the Plan to be deemed to be funded for tax purposes or
for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended. The right of any Participant in respect of
an Award of Performance Stock Units shall be no greater than the right of any unsecured general creditor of the Company. The grant of
Performance Stock Units shall be subject to the following terms and conditions:
(a) Restriction
Period. Each Award Agreement with respect to Performance Stock Units shall specify the duration of the Performance
Period and the Restriction Period, if any, and/or each installment thereof, the Performance Goals applicable to the Performance Stock
Units and the conditions under which the Performance Stock Units may be forfeited to the Company. Such restrictions shall include a vesting
schedule based on the attainment of one or more Performance Goals.
(b) Settlement. Unless
otherwise provided in an Award Agreement, subject to the Participant’s continued employment or other service with the Company or
a Subsidiary from the grant date through the expiration of the Restriction Period (or applicable portion thereof), the vested portion
of an Award of Performance Stock Units shall be settled within 60 days after the expiration of the Restriction Period (or applicable
portion thereof). Unless provided otherwise in an Award Agreement, all Performance Stock Units will be settled in Shares (except that
fractional Performance Stock Units shall be settled in cash).
(c) Shareholder
Rights. Nothing contained in the Plan shall be construed to give any Participant rights as a shareholder with
respect to an Award of Performance Stock Units (including, without limitation, any voting, dividend or derivative or other similar rights).
Notwithstanding the foregoing, the Committee may provide in an Award Agreement that amounts equal to any dividends declared by the Company
during the Restriction Period on the Shares represented by an Award of Performance Stock Units will be credited to the Participant’s
account and settled in cash or Shares at the same time (and subject to the same forfeiture restrictions and Performance Goals) as the
Performance Stock Units to which such dividend equivalents relate (with the number of Shares released in payment of such dividend equivalents
to equal the amount of dividend equivalents then being settled in Shares, divided by the Fair Market Value of one Share on the settlement
date of such dividend equivalents).
6.6. Performance
Stock. An Award of Performance Stock is a grant by the Company of a specified number of Shares to the Participant,
which Shares are conditional on the achievement of one or more Performance Goals during the Performance Period and subject to forfeiture
upon the occurrence of specified events during the Restriction Period. An Award of Performance Stock shall be subject to the following
terms and conditions:
(a) General. Each
Award Agreement with respect to Performance Stock shall specify the duration of the Performance Period and the Restriction Period, if
any, and/or each installment thereof, the Performance Goals applicable to the Performance Stock and the conditions under which the Performance
Stock may be forfeited to the Company, and the amount, if any, the Participant must pay to receive the Performance Stock.
(b) Transferability. During
the Restriction Period, if any, the transferability of Performance Stock shall be prohibited or restricted in the manner and to the extent
prescribed in the applicable Award Agreement. Such restrictions may include, without limitation, rights of repurchase or first refusal
in the Company or provisions subjecting the Performance Stock to a continuing substantial risk of forfeiture in the hands of any transferee.
(c) Shareholder
Rights. Unless otherwise provided in the applicable Award Agreement, during the Restriction Period the Participant
shall have all the rights of a shareholder with respect to Performance Stock, including, without limitation, the right to receive dividends
thereon (whether in cash or Shares), but only to the extent that Performance Stock vests based on the achievement of Performance Goals,
and to vote such Shares of Performance Stock. Dividends shall be subject to the same restrictions (and Performance Goals) as the underlying
Performance Stock and the Committee shall withhold any cash dividends paid on Performance Stock until the Performance Goals are achieved
and restrictions applicable to such Performance Stock have lapsed.
6.7. Other
Share-Based Awards. The Committee is authorized, subject to limitations under applicable law, to grant to Participants
any type of Award (in addition to those Awards provided in Sections 6.1, 6.2, 6.3, 6.4, 6.5 and 6.6 hereof) that is payable in, or
valued in whole or in part by reference to, Shares, and that is deemed by the Committee to be consistent with the purposes of the Plan,
including, without limitation, fully vested Shares and dividend equivalents (“Other Awards”).
6.8. Termination
of Employment or Other Service. Unless otherwise provided in an Award Agreement, and except as otherwise provided in Section 7.2
hereof, upon a Participant’s termination of employment or other service with the Company and its Subsidiaries (x) for any reason
other than for Cause, the unvested portion of each Award shall be immediately forfeited upon such termination with no compensation or
other payment due the Participant, and the vested portion of each Option and SAR shall be exercisable for the period set forth in the
Award Agreement (but not beyond the stated term of such vested Option or vested SAR) or (y) for Cause, all vested and unvested Awards
granted to such Participant shall be immediately forfeited upon such termination with no compensation or other payment due the Participant.
Section 7. Change in
Control.
7.1. General. Unless
otherwise provided in an Award Agreement, a Change in Control shall not, in and of itself, accelerate the vesting, settlement or exercisability
of outstanding Awards. Notwithstanding the foregoing and unless otherwise provided in an Award Agreement, if (i) the successor corporation
or company (or its direct or indirect parent) does not agree to assume an outstanding Award or does not agree to substitute or replace
such Award with an award involving the ordinary or common equity securities of such successor corporation or company (or its direct or
indirect parent) on terms and conditions necessary to preserve the rights of the applicable Participant with respect to such Award, (ii) the
securities of the Company or the successor corporation or company (or its direct or indirect parent) will not be publicly traded on a
U.S. securities exchange immediately following such Change in Control or (iii) the Change in Control is not approved by a majority
of the Incumbent Directors immediately prior to such Change in Control, then the Committee, in its sole discretion, may take one or more
of the following actions with respect to all, some or any such Awards: (a) accelerate the vesting and, if applicable, exercisability
of such Awards such that the Awards are fully vested and, if applicable, exercisable (effective immediately prior to such Change in Control);
(b) with respect to any Awards that do not constitute “non-qualified deferred compensation” within the meaning of Code
Section 409A, accelerate the settlement of such Awards upon such Change in Control; (c) with respect to Awards that constitute
“non-qualified deferred compensation” within the meaning of Code Section 409A, terminate all such Awards and settle all
such Awards for a cash payment equal to the Fair Market Value of the Shares underlying such Awards less the amount the Participant is
required to pay for such Shares, if any, provided that (I) such Change in Control satisfies the requirements of Treasury Regulation
Section 1.409A-3(i)(5)(v), (vi) or (vii) and (II) all other arrangements that would be aggregated with such Awards
under Code Section 409A are terminated and liquidated within 30 days before or 12 months after such Change in Control;
(d) cancel any outstanding Option or SAR in exchange for a cash payment in an amount equal to the excess, if any, of the Fair Market
Value as of the date of the Change in Control of the Shares underlying the portion of the Option or SAR being so cancelled over the exercise
price or grant price, as the case may be, of such portion, provided that any Option or SAR with a per Share exercise price or grant price,
as the case may be, that equals or exceeds the Fair Market Value of one Share on the date of the Change in Control shall be cancelled
with no payment due the Participant and (e) take such other actions as the Committee deems appropriate (to the extent permitted by
Code Section 409A). If any action is taken with respect to any Award under items (a) through (e) of this Section 7.1 and
such Award is subject to Performance Goals, such Performance Goals shall be deemed satisfied based on the actual level of achievement
of the applicable Performance Goals through the date of the Change in Control or, if determined by the Committee in its sole discretion
prior to such Change in Control, using the applicable target level of achievement rather than such actual level of achievement. The judgment
of the Committee with respect to any matter referred to in this Section 7.1 shall be conclusive and binding upon each Participant (and
all other Persons) without the need for any amendment to the Plan or any Award or Award Agreement. Notwithstanding the foregoing, no Award
that constitutes “non-qualified deferred compensation” (within the meaning of Section 409A of the Code) shall be payable
upon the occurrence of a Change in Control unless such Change in Control satisfies the requirements of Treasury Regulation Section 1.409A-3(i)(5).
7.2. Termination
Following a Change in Control. Notwithstanding anything contained in the Plan to the contrary, unless otherwise
provided in an Award Agreement, in the event that Awards under the Plan are assumed in connection with a Change in Control or are substituted
with new awards, in either case, pursuant to Section 7.1 above, and a Participant’s employment or other service with the Company
and its Subsidiaries is terminated by the Company or a Subsidiary without Cause or due to Disability or as the result of the Participant’s
death, in any case, within 24 months following a Change in Control, (i) the unvested portion of such Participant’s Awards
(including without limitation any awards received in substitution of an Award) shall vest in full (with any applicable Performance Goals
being deemed to have been achieved at target or, if greater, actual levels of performance), (ii) Awards of Options and SARs (including,
without limitation, options and stock or share appreciation rights received in substitution of an Award) shall remain exercisable by the
Participant or the Participant’s beneficiary or legal representative, as the case may be, for a period of one year thereafter (but
not beyond the stated term of such Option or SAR), (iii) all Restricted Stock Units and Performance Stock Units (including, without
limitation, restricted stock units and performance stock units received in substitution of an Award) shall be settled within 30 days
after such termination and (iv) all Other Share-Based Awards (including, without limitation, any other share-based awards received
in substitution of an Award) shall be settled within 30 days after such termination; provided, however, that with respect to clauses (iii)
and (iv), if settlement of such Awards on the date described in this Section 7.2 would violate Code Section 409A, then such
Award instead shall be settled in full at the time it otherwise would have been settled in connection with a termination of employment
or service without Cause or due to death or Disability, as applicable.
Section 8. Adjustments
upon Changes in Capitalization.
8.1. In
order to prevent dilution or enlargement of the rights of Participants under the Plan as a result of any share dividend, recapitalization,
consolidation, sub-division, forward share split or reverse share split, reorganization, spin-off, extraordinary cash distribution or
other similar or analogous corporate transaction or event, in any case, that occurs on or after the date the Plan is approved by the Board
(even if such date is prior to the Effective Date), that affects the Shares and which is effected without the receipt of consideration
by the Company, the Committee shall adjust (i) the number and (if applicable) kind of Shares which may thereafter be issued in connection
with Awards, (ii) the number and (if applicable) kind of Shares issuable in respect of outstanding Awards, (iii) the Cap and the
specific Share limitations under Section 5 hereof and (iv) the exercise or grant price relating to any Award. Any such adjustment
shall be made in an equitable manner which reflects the effect of such transaction or event. It is provided, however, that in the case
of any such transaction or event, the Committee may make any additional adjustments to the items in clauses (i) through (iv) above
which it deems appropriate in the circumstances, or make provision for a cash payment with respect to any outstanding Award.
8.2. In
addition to the adjustments described in Section 8.1 above, the Committee is authorized to make adjustments in the terms and conditions
of, and the criteria included in, Awards, including without limitation any Performance Goals, in recognition of unusual or nonrecurring
events affecting the Company or any Subsidiary, or in response to changes in applicable laws, regulations, or accounting principles (including,
without limitation, (a) asset write-downs; (b) significant litigation or claim judgments or settlements; (c) the effect
of changes in tax laws, accounting standards or principles, or other laws or regulatory rules affecting reporting results; (d) any
reorganization and/or restructuring programs or change in the corporate structure or capital structure of the Company or a Subsidiary;
(e) extraordinary nonrecurring items as described in management’s discussion and analysis of financial condition and results
of operations appearing in the Company’s annual report to shareholders for the applicable year or period; (f) acquisitions
or divestitures; (g) any other specific unusual or nonrecurring events or objectively determinable category thereof; (h) foreign
exchange gains and losses; and (i) a change in the Company’s fiscal year).
8.3. If
Sections 7 and 8 hereof could both apply to an event, Section 7 shall control.
Section 9. Termination
and Amendment.
9.1. Changes
to the Plan and Awards. The Board (or, if such power has been delegated to the Committee, the Committee) may
amend, alter, suspend, discontinue, or terminate the Plan without the consent of the Company’s shareholders or Participants, except
that any such amendment or alteration shall be subject to the approval of the Company’s shareholders if (i) such action would
increase the number of Shares subject to the Plan (other than in connection with adjustments under Section 8.1 hereof), (ii) such
action would decrease the price at which Awards may be granted, or (iii) such shareholder approval is required by any applicable
federal, state or foreign law or regulation or the rules of any stock exchange or automated quotation system on which the Shares may then
be listed or quoted, and the Board may otherwise, in its discretion, determine to submit such other changes to the Plan to the Company’s
shareholders for approval; provided, however, that except as provided in Section 18 hereof, without the consent of an affected Participant,
no amendment, alteration, suspension, discontinuation, or termination of the Plan may materially and adversely affect the rights of such
Participant under any outstanding Award unless such amendment, alteration, suspension, discontinuation or termination is required by applicable
law or the rules of any applicable securities exchange.
9.2. The
Committee may waive any conditions or rights under, or amend, alter, suspend, discontinue, or terminate, any Award theretofore granted
and any Award Agreement relating thereto; provided, however, that except as provided in Section 18 hereof, without the consent of an affected
Participant, no such amendment, alteration, suspension, discontinuation or termination of any Award may materially and adversely affect
the rights of such Participant under such Award unless such amendment, alteration, suspension, discontinuation or termination is required
by applicable law or the rules of any applicable securities exchange.
9.3. No
Repricing. Notwithstanding anything in the Plan or an Award Agreement to the contrary, no “underwater” Option or “underwater”
SAR may be repriced, replaced or regranted through cancellation, nor may any “underwater” Option or “underwater”
SAR be repurchased for cash, in any case, without the approval of the shareholders of the Company, provided that nothing herein shall
prevent the Committee from taking any action provided for in Sections 7 and/or 8 hereof.
Section 10. No Right
to Award, Employment or Service.
No Employee, Consultant or
Non-Employee Director shall have any right or claim to be granted any Award under the Plan, and there is no obligation that the terms
of Awards be uniform or consistent among Participants. Neither the Plan nor any action taken hereunder shall be construed as giving any
Participant any right to be retained in the employ or service of the Company or any Subsidiary. For purposes of the Plan, a transfer of
employment or service between the Company and any of its Subsidiaries shall not be deemed a termination of employment or service; provided,
however, that individuals employed by, or otherwise providing services to, an entity that ceases to be a Subsidiary shall be deemed to
have incurred a termination of employment or service, as the case may be, as of the date such entity ceases to be a Subsidiary unless
such individual becomes an employee of, or service provider to, the Company or another Subsidiary as of the date of such cessation. A
change in status from Employee to Consultant shall be deemed to be a termination of employment, unless otherwise determined by the Committee.
The Committee may adopt rules and make determinations on how a leave of absence will impact an Award, including, without limitation, tolling
the vesting schedule or treating such leave of absence as a termination of employment or other service (such rules may be applied retroactively).
Section 11. Taxes.
Each Participant must make
appropriate arrangement acceptable to the Company in its discretion for the payment of any taxes relating to an Award granted hereunder.
The Company or any Subsidiary is authorized to withhold from any payment relating to an Award under the Plan, including without limitation
from a distribution of Shares or cash, amounts of withholding and other taxes due in connection with any transaction involving an Award,
and to take such other action as the Committee may deem advisable to enable the Company and Participants to satisfy obligations for the
payment of withholding taxes and other tax obligations relating to any Award (including without limitation withholding from any payroll
or other payment due to a Participant). This authority shall include the ability to withhold or receive Shares or other property and to
make cash payments in respect thereof in satisfaction of a Participant’s tax obligations. Withholding of taxes in the form of Shares
with respect to an Award shall not occur at a rate that equals or exceeds the rate that would result in liability accounting treatment.
Section 12. Limits on
Transferability; Beneficiaries.
No Award or other right or
interest of a Participant under the Plan shall be (i) pledged, encumbered, or hypothecated to, or in favor of, or subject to any
lien, obligation, or liability of such Participant to, any party, other than the Company or any Subsidiary, or (ii) assigned or transferred
by such Participant other than by will or the laws of descent and distribution, and such Awards and rights shall be exercisable during
the lifetime of the Participant only by the Participant or (with respect to Awards other than Incentive Stock Options) his or her guardian
or legal representative. Notwithstanding the foregoing, the Committee may, in its discretion, provide that Non-Qualified Options, SARs,
Performance Stock and Restricted Stock be transferable, without consideration, to immediate family members (i.e., children, grandchildren
or spouse), to trusts for the benefit of such immediate family members and to partnerships in which such family members are the only partners
(any vesting conditions shall be unaffected by such transfer). The Committee may attach to such transferability feature such terms and
conditions as it deems advisable. In addition, a Participant may, in the manner established by the Committee, designate a beneficiary
(which may be a Person or a trust) to exercise the rights of the Participant, and to receive any distribution, with respect to any Award
upon the death of the Participant. A beneficiary, guardian, legal representative or other Person claiming any rights under the Plan from
or through any Participant shall be subject to all terms and conditions of the Plan and any Award Agreement applicable to such Participant,
except as otherwise determined by the Committee, and to any additional restrictions deemed necessary or appropriate by the Committee.
Section 13. Foreign
Nationals.
Without amending the Plan,
Awards may be granted to Employees, Consultants and Non-Employee Directors who are foreign nationals or are employed or providing services
outside the United States or both, on such terms and conditions different from those specified in the Plan as may, in the judgment of
the Committee, be necessary or desirable to further the purpose of the Plan. Moreover, the Committee may approve such supplements to,
or sub-plans, amendments, restatements or alternative versions of, the Plan as it may consider necessary or appropriate for such purposes
without thereby affecting the terms of the Plan as in effect for any other purpose, provided that no such supplements, sub-plans, amendments,
restatements or alternative versions shall include any provisions that are prohibited by the terms of the Plan, as then in effect, unless
the Plan could have been amended to eliminate such prohibition without further approval by the shareholders of the Company. For the avoidance
of doubt, Shares that are covered by outstanding Awards granted under any supplement, sub-plan or alternative version of the Plan shall
be considered as if they are granted under the Plan for purposes of determining the number of Shares available for future issuance under
Section 5 of the Plan.
Section 14. Securities
Law Requirements.
14.1. No
Shares may be issued hereunder if the Company shall at any time determine that to do so would (i) violate the listing requirements
of an applicable securities or stock exchange, or adversely affect the registration or qualification of the Company’s Shares under
any state or federal law, or otherwise violate any applicable law, rule or regulation, or (ii) require the consent or approval of
any regulatory or supervising body or shareholders. In any of the events referred to in clause (i) or clause (ii) above, the
issuance of such Shares shall be suspended and shall not be effective unless and until it is done in compliance with all applicable laws,
rules and regulations, and such listing, registration, qualifications, consents or approval shall have been effected or obtained free
of any conditions not acceptable to the Company in its sole discretion, notwithstanding any termination of any Award or any portion of
any Award during the period when issuance has been suspended (provided, however, that if permitted under Code Section 409A, the Committee
may toll the expiration date of an Award such that it will not terminate during any such period of suspension).
14.2. The
Committee may require, as a condition to the issuance of Shares hereunder, representations, warranties and agreements to the effect that
such Shares are being purchased or acquired by the Participant for investment only and without any present intention to sell or otherwise
distribute such Shares, and that the Participant will not dispose of such Shares in transactions which, in the opinion of counsel to the
Company, would violate the registration provisions of the Securities Act and the rules and regulations thereunder.
Section 15. Termination.
Unless earlier terminated,
the Plan shall terminate with respect to the grant of new Awards on the earlier of the 10-year anniversary of the date the Plan was first
approved by the shareholders of the Company or the 10-year anniversary of the date the Plan was first approved by the Board, and no Awards
under the Plan shall thereafter be granted; provided that no such termination shall impact Awards that were granted prior to such termination.
Section 16. Fractional
Shares.
The Company will not be required
to issue any fractional Shares pursuant to the Plan. The Committee may provide for the elimination of fractions and settlement of such
fractional Shares in cash, in its sole discretion.
Section 17. Discretion.
In exercising, or declining
to exercise, any grant of authority or discretion hereunder, the Committee may consider or ignore such factors or circumstances and may
accord such weight to such factors and circumstances as the Committee alone and in its sole judgment deems appropriate and without regard
to the effect such exercise, or declining to exercise such grant of authority or discretion, would have upon the affected Participant,
any other Participant, any Employee, any Consultant, any Non-Employee Director, the Company, any Subsidiary, any affiliate, any shareholder
or any other Person.
Section 18. Code Section
409A.
The Plan and all Awards are
intended to comply with, or be exempt from, Code Section 409A and all regulations, guidance, compliance programs and other interpretative
authority thereunder, and shall be interpreted in a manner consistent therewith without increasing the cost to the Company. In the event
that a Participant is a “specified employee” within the meaning of Code Section 409A, and a payment or benefit provided
for under the Plan would be subject to additional tax under Code Section 409A if such payment or benefit is paid within six (6) months
after such Participant’s “separation from service” (within the meaning of Code Section 409A), then such payment
or benefit shall not be paid (or commence) during the six (6) month period immediately following such Participant’s separation
from service except as provided in the immediately following sentence. In such an event, any payments or benefits that would otherwise
have been made or provided during such six (6) month period and which would have incurred such additional tax under Code Section 409A
shall instead be paid to the Participant in a lump-sum, without interest, on the earlier of (i) the first business day of the seventh
month following the month in which such Participant’s separation from service occurs or (ii) the tenth business day following
such Participant’s death (but not earlier than if such delay had not applied). A Participant’s right to receive any installment
payments under an Award Agreement, including without limitation as the result of any deferral of an Award in accordance with Code Section 409A,
shall be treated as a right to receive a series of separate payments and, accordingly, each such installment payment shall at all times
be considered a separate and distinct payment as permitted under Code Section 409A. Notwithstanding anything contained in the Plan
or in an Award Agreement to the contrary, neither the Company, any member of the Committee nor any Subsidiary shall have any liability
or obligation to any Participant or any other Person for taxes, interest, penalties or fines (including without limitation any of the
foregoing resulting from the failure of any Award granted hereunder to comply with, or be exempt from, Code Section 409A). For purposes
of any Award that constitutes “non-qualified deferred compensation” under Code Section 409A, the terms “termination
of employment” or “termination of service” and similar phrases to each shall mean “separation from service”
within the meaning of Code Section 409A.
Section 19. Governing
Law.
The validity and construction
of the Plan and any Award Agreements entered into hereunder shall be construed and enforced in accordance with the laws of the State of
Delaware, but without giving effect to the conflict of laws principles thereof.
Section 20. Recoupment/Share
Ownership.
Any Award granted pursuant
to the Plan (and all Shares acquired hereunder) shall be subject to mandatory repayment and clawback pursuant to the terms of the Company’s
corporate governance guidelines, as in effect from time to time, and as may be otherwise required by applicable law or the rules of any
applicable securities exchange. Additional recoupment and clawback policies may be provided in the Participant’s Award Agreement.
In addition, all Awards granted under the Plan (and all Shares acquired hereunder) shall be subject to the holding periods set forth in
the Company’s share ownership guidelines, as in effect from time to time.
Section 21. Effective
Date.
The Plan shall become effective
upon the Effective Date.
[end of Plan]
TIZIANA LIFE SCIENCES LTD
2021 EQUITY INCENTIVE PLAN
UNITED KINGDOM SUPPLEMENT
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1.1
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Expressions used in this United Kingdom Supplement (the “Supplement”) shall bear the
same meanings as in the Tiziana Life Sciences Ltd 2021 Equity Incentive Plan (the “Plan”) and/or the applicable Award
Agreement unless the context otherwise requires or unless they are expressly given different meanings.
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1.2
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This Supplement shall apply to any Award granted to a Participant who is resident in the United Kingdom
for tax purposes at the time the Award is granted or on the occurrence of any taxable event in respect of the Award and to any Participant
who is not resident in the United Kingdom at such time(s) but who is granted the Award in respect of duties performed in the United Kingdom
(a “UK Participant”).
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1.3
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This Supplement has effect pursuant to Section 13 of the Plan and is supplemental to and should be read
as a part of the Plan and the applicable Award Agreement. In the case of a UK Participant, the terms of this Supplement shall have effect
in priority to the terms of any Award Agreement and the Plan, and in the event of any inconsistency between this Supplement and an Award
Agreement or the Plan, the terms of this Supplement shall apply.
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2.
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Additional Terms for UK Participants
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2.1
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Employer National Insurance Contributions Indemnity. In the case of any Award to a UK Participant
in the form of Options, Restricted Stock, Restricted Stock Units, Performance Stock, Performance Stock Units or Other Share-Based Award,
if required by the Board, it shall be a condition of such Award that the UK Participant irrevocably agrees that the Company and/or any
applicable Subsidiary may recover from the UK Participant the whole or any part of any employer National Insurance Contributions, Apprenticeship
Levy or other social security contributions for which the Company and/or any applicable Subsidiary is liable to account in respect of
the Award, in each case to the extent permitted by applicable law, and/or that the UK Participant shall enter into such election (using
a form approved by HM Revenue & Customs) as may be required for the whole or any part of such taxes to be transferred to the UK Participant.
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2.2
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Date of Termination. For the purposes of Sections 6.8 and 7.2 of the Plan (and the corresponding
provisions in any Award Agreement) the termination of employment of a UK Participant for Cause or as the result of the UK Participant’s
resignation shall be deemed to occur on the earlier of (i) the date on which the UK Participant’s employment terminates, and (ii)
the date on which the UK Participant gives or receives notice of the termination of employment.
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2.3
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Bankruptcy. Unless otherwise provided in an Award Agreement, the unvested portion of a Participant’s
Award shall be immediately forfeited with no compensation or other payment due to the Participant upon the Participant (i) being declared
bankrupt, (ii) making an application for an interim order or any proposal for a voluntary arrangement within Part VIII of the Insolvency
Act 1988, or (iii) proposing any form of compromise with his creditors or any class of creditors.
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2.4
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Tax Election. In the case of an Award to a UK Participant in the form of Options, Restricted Stock,
Restricted Stock Units, Performance Stock, Performance Stock Units or Other Share-Based Award, unless the Board determines otherwise,
it shall be a condition of the Award that the UK Participant enters into a joint tax election with his or her employer pursuant to Section
431(1) of the Income Tax (Earnings and Pensions) Act 2003 in respect of any Shares acquired pursuant to such Award, such election to be
made no later than 14 days following the date on which such Shares are acquired.
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2.5
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Relationship to Employment Contract. The rights of a UK Participant under the terms of his or her
office or employment with the Company or any Subsidiary shall not be affected by the Plan, this Supplement or any Award Agreement. The
value of any benefit realised by a UK Participant in respect of an Award shall not be taken into account in determining any pension or
similar entitlement.
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2.6
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Limitation on Claims. A UK Participant shall have no right to compensation or damages on account
of any loss in respect of an Award where the loss arises (or is claimed to arise), in whole or in part, from termination of office or
employment with, or notice to terminate office or employment given by or to, the Company or any Subsidiary. This exclusion of liability
shall apply however termination of office or employment, or the giving of notice, is caused, and however compensation or damages are claimed.
A UK Participant shall have no right to compensation or damages from the Company or any Subsidiary on account of any loss in respect of
an Award where the loss arises (or is claimed to arise), in whole or in part, from any Change in Control, any company ceasing to be a
Subsidiary or the transfer or any business from the Company or any Subsidiary to any other person.
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[End of Supplement]
22
