Document:

Eighth Amended and Restated Stock Incentive Plan

 Exhibit 10.1 
 EIGHTH AMENDED AND RESTATED 
 OMNI ENERGY SERVICES CORP. 
 STOCK INCENTIVE PLAN 
 1. Purpose. The
purpose of the Stock Incentive Plan (the “Plan”) of OMNI Energy Services Corp. (“OMNI”) is to increase shareholder value and to advance the interests of OMNI and its subsidiaries (collectively, the “Company”) by
furnishing a variety of economic incentives (the “Incentives”) designed to attract, retain and motivate key employees, officers and directors and to strengthen the mutuality of interests between such employees, officers and directors and
OMNI’s shareholders. Incentives consist of opportunities to purchase or receive shares of common stock, $.01 par value per share, of OMNI (the “Common Stock”), on terms determined under the Plan. As used in the Plan, the term
“subsidiary” means any corporation of which OMNI owns (directly or indirectly) within the meaning of Section 425(f) of the Internal Revenue Code of 1986, as amended (the “Code”), 50% or more of the total combined voting
power of all classes of stock. 
 2. Administration. 
 2.1. Composition. The Plan shall be administered by the Compensation Committee of the Board of Directors of OMNI or by a subcommittee thereof (the “Committee”). The Committee shall consist of not fewer than
two members of the Board of Directors, each of whom shall (a) qualify as a “non-employee director” under Rule 16b-3 under the Securities Exchange Act of 1934 (the “1934 Act”) or any successor rule, and (b) qualify as an
“outside director” under Section 162(m) of the Code. 
 2.2. Authority. The Committee shall have plenary authority to award
Incentives under the Plan, to interpret the Plan, to establish any rules or regulations relating to the Plan that it determines to be appropriate, to enter into agreements with participants as to the terms of the Incentives (the “Incentive
Agreements”) and to make any other determination that it believes necessary or advisable for the proper administration of the Plan. Its decisions in matters relating to the Plan shall be final and conclusive on the Company and participants. The
Committee may delegate its authority hereunder to the extent provided in Section 3 hereof. The Committee shall have authority to award Incentives under the Plan to directors who are not also employees of the Company (“Outside
Directors”). 
 3. Eligible Participants. Key employees and officers of the Company (including officers who also serve as directors of
the Company), directors, consultants and advisors to the Company shall become eligible to receive Incentives under the Plan when designated by the Committee. Employees may be designated individually or by groups or categories, as the Committee deems
appropriate. With respect to participants not subject to Section 16 of the 1934 Act or Section 162(m) of the Code, the Committee may delegate to appropriate personnel of the Company its authority to designate participants, to determine the
size and type of Incentives to be received by those participants and to determine or modify performance objectives for those participants. 
 4. Types of Incentives. Incentives may be granted under the Plan to eligible participants in any of the following forms, either individually or in combination, (a) incentive stock options and non-qualified stock options;
(b) restricted stock; and (c) other stock-based awards (“Other Stock-Based Awards”). 
 5. Shares Subject to the Plan.

 5.1. Number of Shares. Subject to adjustment as provided in Section 10.5, a total of 5,750,000 shares of Common Stock are authorized
to be issued under the Plan. Subject to adjustment as provided in Section 10.5, Incentives with respect to no more than 

  

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500,000 may be granted through the Plan to a single participant in one calendar year. In the event that an Incentive granted hereunder expires or is
terminated or cancelled prior to exercise or payment, any shares of Common Stock that were issuable thereunder may again be issued under the Plan. In the event that shares of Common Stock are issued as Incentives under the Plan and thereafter are
forfeited or reacquired by the Company pursuant to rights reserved upon issuance thereof, such forfeited and reacquired shares may again be issued under the Plan. If an Other Stock-Based Award is to be paid in cash by its terms, the Committee need
not make a deduction from the shares of Common Stock issuable under the Plan with respect thereto. If and to the extent that an Other Stock-Based Award may be paid in cash or shares of Common Stock, the total number of shares available for issuance
hereunder shall be debited by the number of shares payable under such Incentive, provided that upon any payment of all or part of such Incentive in cash, the total number of shares available for issuance hereunder shall be credited with the
appropriate number of shares represented by the cash payment, as determined in the sole discretion of the Committee. Additional rules for determining the number of shares granted under the Plan may be made by the Committee, as it deems necessary or
appropriate. 
 5.2. Type of Common Stock. Common Stock issued under the Plan may be authorized and unissued shares or issued shares held as
treasury shares. 
 6. Stock Options. A stock option is a right to purchase shares of Common Stock from OMNI. Stock options granted under
this Plan may be incentive stock options or non-qualified stock options. Incentive stock options may be granted only to employees of the Company. Any option that is designated as a non-qualified stock option shall not be treated as an incentive
stock option. Each stock option granted by the Committee under this Plan shall be subject to the following terms and conditions: 
 6.1.
Price. The exercise price per share shall be determined by the Committee, subject to adjustment under Section 10.5; provided that in no event shall the exercise price be less than the Fair Market Value of a share of Common Stock on the date of
grant, except that in connection with an acquisition, consolidation, merger or other extraordinary transaction, options may be granted at less than the then Fair Market Value in order to replace options previously granted by one or more parties to
such transaction (or their affiliates) so long as the aggregate spread on such replacement options for any recipient of such options is equal to or less than the aggregate spread on the options being replaced. 
 6.2. Number. The number of shares of Common Stock subject to the option shall be determined by the Committee, subject to Section 5.1 and subject to
adjustment as provided in Section 10.5. 
 6.3. Duration and Time for Exercise. The term of each stock option shall be determined by the
Committee. Each stock option shall become exercisable at such time or times during its term as shall be determined by the Committee. Notwithstanding the foregoing, the Committee may accelerate the exercisability of any stock option at any time, in
addition to the automatic acceleration of stock options under Section 10.11. 
 6.4. Manner of Exercise. A stock option may be
exercised, in whole or in part, by giving written notice to the Company, specifying the number of shares of Common Stock to be purchased. The exercise notice shall be accompanied by the full purchase price for such shares. The option price shall be
payable in United States dollars and may be paid by (a) cash; (b) uncertified or certified check; (c) unless otherwise determined by the Committee, by delivery of shares of Common Stock held by the optionee for at least six months,
which shares shall be valued for this purpose at the 

  

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Fair Market Value on the business day immediately preceding the date such option is exercised; (d) unless otherwise determined by the Committee, by
delivering a properly executed exercise notice together with irrevocable instructions to a broker approved by OMNI (with a copy to OMNI) to promptly deliver to OMNI the amount of sale or loan proceeds to pay the exercise price; or (e) in such
other manner as may be authorized from time to time by the Committee. 
 6.5. Incentive Stock Options. Notwithstanding anything in the Plan
to the contrary, the following additional provisions shall apply to the grant of stock options that are intended to qualify as Incentive Stock Options (as such term is defined in Section 422 of the Code): 
 A. Any Incentive Stock Option agreement authorized under the Plan shall contain such other provisions as the Committee shall deem
advisable, but shall in all events be consistent with and contain or be deemed to contain all provisions required in order to qualify the options as Incentive Stock Options. 
 B. All Incentive Stock Options must be granted within ten years from the date on which this Plan is adopted by the Board of Directors.

 C. Unless sooner exercised, all Incentive Stock Options shall expire no later than ten years after the date of grant.

 D. No Incentive Stock Options shall be granted to any participant who, at the time such option is granted, would own
(within the meaning of Section 422 of the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the employer corporation or of its parent or subsidiary corporation. 
 E. The aggregate Fair Market Value (determined with respect to each Incentive Stock Option as of the time such Incentive Stock Option is
granted) of the Common Stock with respect to which Incentive Stock Options are exercisable for the first time by a participant during any calendar year (under the Plan or any other plan of OMNI or any of its subsidiaries) shall not exceed $100,000.
To the extent that such limitation is exceeded, such options shall not be treated, for federal income tax purposes, as Incentive Stock Options. 
 7. Restricted Stock 
 7.1. Grant of Restricted Stock. The Committee may award shares of restricted stock to such officers,
directors and key employees as the Committee determines pursuant to the terms of Section 3. An award of restricted stock shall be subject to such restrictions on transfer and forfeitability provisions and such other terms and conditions as the
Committee may determine, subject to the provisions of the Plan. An award of restricted stock may also be subject to the attainment of specified performance goals or targets. To the extent restricted stock is intended to qualify as performance-based
compensation under Section 162(m) of the Code, it must be granted subject to the attainment of performance goals as described in Section 7.2 below and meet the additional requirements imposed by Section 162(m). 
 7.2. Performance-Based Restricted Stock. To the extent that restricted stock granted under the Plan is intended to vest based upon the achievement of
pre-established performance goals rather than solely upon continued employment over a period of time, the performance goals pursuant to 

  

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which the restricted stock shall vest shall be any or a combination of the following performance measures: earnings per share, return on assets, an economic
value added measure, shareholder return, earnings, stock price, return on equity, return on total capital, safety performance, reduction of expenses or increase in cash flow of OMNI, a division of OMNI or a subsidiary. For any performance period,
such performance objectives may be measured on an absolute basis or relative to a group of peer companies selected by the Committee, relative to internal goals or relative to levels attained in prior years. The Committee may not waive any of the
pre-established performance goal objectives, except that such objectives shall be waived as provided in Section 10.11 hereof, or as may be provided by the Committee in the event of death, disability or retirement. 
 7.3. The Restricted Period. At the time an award of restricted stock is made, the Committee shall establish a period of time during which the transfer of
the shares of restricted stock shall be restricted (the “Restricted Period”). The Restricted Period shall be a minimum of one year, except that if the vesting of the shares of restricted stock is based upon the attainment of performance
goals, a minimum Restricted Period of six months is permitted. Each award of restricted stock may have a different Restricted Period. The expiration of the Restricted Period shall also occur as provided under Section 10.3 and under the
conditions described in Section 10.11 hereof. 
 7.4. Escrow. The participant receiving restricted stock shall enter into an Incentive
Agreement with the Company setting forth the conditions of the grant. Certificates representing shares of restricted stock shall be registered in the name of the participant and deposited with the Company, together with a stock power endorsed in
blank by the participant. Each such certificate shall bear a legend in substantially the following form: 
 The
transferability of this certificate and the shares of Common Stock represented by it are subject to the terms and conditions (including conditions of forfeiture) contained in the OMNI Energy Services Corp. Stock Incentive Plan (the
“Plan”), and an agreement entered into between the registered owner and OMNI Energy Services Corp. thereunder. Copies of the Plan and the agreement are on file at the principal office of OMNI Energy Services Corp. 
 7.5. Dividends on Restricted Stock. Any and all cash and stock dividends paid with respect to the shares of restricted stock shall be subject to any
restrictions on transfer, forfeitability provisions or reinvestment requirements as the Committee may, in its discretion, prescribe in the Incentive Agreement. 
 7.6. Forfeiture. In the event of the forfeiture of any shares of restricted stock under the terms provided in the Incentive Agreement (including any additional shares of restricted stock that may result from the
reinvestment of cash and stock dividends, if so provided in the Incentive Agreement), such forfeited shares shall be surrendered and the certificates cancelled. The participants shall have the same rights and privileges, and be subject to the same
forfeiture provisions, with respect to any additional shares received pursuant to Section 10.5 due to a recapitalization, merger or other change in capitalization. 
 7.7. Expiration of Restricted Period. Upon the expiration or termination of the Restricted Period and the satisfaction of any other conditions prescribed by the Committee, the restrictions applicable to the restricted
stock shall lapse and a stock certificate for the number of shares of restricted stock with respect to which the restrictions have lapsed shall be delivered, free of all such restrictions and legends, except any that may be imposed by law, to the
participant or the participant’s estate, as the case may be. 
  

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 7.8. Rights as a Shareholder. Subject to the terms and conditions of the Plan and subject to any
restrictions on the receipt of dividends that may be imposed in the Incentive Agreement, each participant receiving restricted stock shall have all the rights of a shareholder with respect to shares of stock during the Restricted Period, including
without limitation, the right to vote any shares of Common Stock. 
 8. Other Stock-Based Awards. 
 8.1. Terms of Other Stock-Based Awards. The Committee is hereby authorized to grant to eligible employees an “Other Stock-Based Award”, which
shall consist of an award, the value of which is based in whole or in part on the value of shares of Common Stock, that is not an instrument or Award specified in Sections 6 or 7 of the Plan. Other Stock-Based Awards may be awards of shares of
Common Stock or may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, shares of Common Stock (including, without limitation, securities convertible or exchangeable into or exercisable for
shares of Common Stock), as deemed by the Committee, consistent with the purposes of the Plan. The Committee shall determine the terms and conditions of any such Other Stock-Based Award and may provide that such awards would be payable in whole or
in part in cash. Except in the case of an Other Stock-Based Award granted in assumption of or in substitution for an outstanding award of a company acquired by the Company or with which the Company combines, the price at which securities may be
purchased pursuant to any Other Stock-Based Award granted under this Plan, or the provision, if any, of any such award that is analogous to the purchase or exercise price, shall not be less than 100% of the fair market value of the securities to
which such award relates on the date of grant. 
 8.2. Dividend Equivalents. In the sole and complete discretion of the Committee, an Other
Stock-Based Award under this Section 8 may provide the holder thereof with dividends or dividend equivalents, payable in cash or shares of Common Stock on a current or deferred basis. 
 8.3. Performance Goals. Other Stock-Based Awards intended to qualify as “performance-based compensation” under Section 162(m) of the Code
shall be paid based upon the achievement of pre-established performance goals. The performance goals pursuant to which Other Stock-Based Awards granted under the Plan shall be earned shall be any or a combination of the following performance
measures: earnings per share, return on assets, an economic value added measure, shareholder return, earnings, stock price, return on equity, return on total capital, safety performance, reduction of expenses or increase in cash flow of the Company,
a division of the Company or a subsidiary. For any performance period, such performance goals may be measured on an absolute basis or relative to a group of peer companies selected by the Committee, relative to internal goals or relative to levels
attained in prior years. The Committee may not waive any of the pre-established performance goal objectives if such Other Stock-Based Award is intended to constitute “performance-based compensation” under Section 162(m), except that
such objectives shall be waived as provided in Section 10.11 hereof, or as may be provided by the Committee in the event of death, disability or retirement. 
 8.4. Not a Shareholder. The grant of an Other Stock-Based Award to a participant shall not create any rights in such participant as a shareholder of the Company, until the issuance of shares of Common Stock with
respect to an award, at which time such stock shall be considered issued and outstanding. 
  

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 9. Formula Stock Options. 
 9.1 Grant of Options. At any time that an Outside Director first becomes a member of the Board of Directors of OMNI, such Outside Director shall be granted non-qualified options to purchase 10,000 shares of Common
Stock. In addition, for as long as the Plan remains in effect and shares of Common Stock remain available for issuance hereunder, each Outside Director shall be automatically granted a non-qualified stock option to purchase 5,000 shares of Common
Stock on the day following the annual meeting of shareholders of OMNI. 
 9.3. Exercisability of Stock Options. The stock options granted to
Outside Directors under Section 9.1 shall become exercisable one year after grant and shall expire ten years following the date of grant. 
 9.4. Exercise Price. The exercise price of the options granted to Outside Directors thereafter shall be equal to the Fair Market Value of a share of Common Stock on the date of grant. The exercise price may be paid as provided in
Section 6.4 hereof. 
 9.5. Exercise After Termination of Board Service. In the event an Outside Director ceases to serve on the Board,
the stock options granted hereunder must be exercised, to the extent otherwise exercisable at the time of termination of Board service, within three months from termination of Board service; provided, however, that in the event of termination of
Board service as a result of death, disability or retirement on or after reaching age 65, the stock options must be exercised, to the extent exercisable at the time of termination of Board service, within 18 months from the date of termination of
Board service; and further provided, that no stock options may be exercised later than ten years after the date of grant. 
 10. General.

 10.1. Duration. Subject to Section 10.10, the Plan shall remain in effect until all Incentives granted under the Plan have either
been satisfied by the issuance of shares of Common Stock or the payment of cash or been terminated under the terms of the Plan and all restrictions imposed on shares of Common Stock in connection with their issuance under the Plan have lapsed.

 10.2. Transferability. No Incentives granted hereunder may be transferred, pledged, assigned or otherwise encumbered by a participant
except: (a) by will; (b) by the laws of descent and distribution; (c) pursuant to a domestic relations order, as defined in the Code, if permitted by the Committee and so provided in the Incentive Agreement or an amendment thereto; or
(d) as to options only, if permitted by the Committee and so provided in the Incentive Agreement or an amendment thereto, (i) to Immediate Family Members, (ii) to a partnership in which Immediate Family Members, or entities in which
Immediate Family Members are the sole owners, members or beneficiaries, as appropriate, are the sole partners, (iii) to a limited liability company in which Immediate Family Members, or entities in which Immediate Family Members are the sole
owners, members or beneficiaries, as appropriate, are the sole members, or (iv) to a trust for the sole benefit of Immediate Family Members. “Immediate Family Members” shall be defined as the spouse and natural or adopted children or
grandchildren of the participant and their spouses. To the extent that an Incentive Stock Option is permitted to be transferred during the lifetime of the participant, it shall be treated thereafter as a nonqualified stock option. Any attempted
assignment, transfer, pledge, hypothecation or other disposition of Incentives, or levy of attachment or similar process upon Incentives not specifically permitted herein, shall be null and void and without effect. 
  

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 10.3. Effect of Termination of Employment or Death. Except as provided in Section 9.4 with respect
to Outside Directors, in the event that a participant ceases to be an employee of the Company for any reason, including death, disability, early retirement or normal retirement, any Incentives may be exercised, shall vest or shall expire at such
times as may be determined by the Committee in the Incentive Agreement. The Committee has complete authority to modify the treatment of an Incentive in the event of termination of employment of a participant by means of an amendment to the Incentive
Agreement. Consent of the participant to the modification is required only if the modification materially impairs the rights previously provided to the participant in the Incentive Agreement. 
 10.4. Additional Condition. Anything in this Plan to the contrary notwithstanding: (a) the Company may, if it shall determine it necessary or
desirable for any reason, at the time of award of any Incentive or the issuance of any shares of Common Stock pursuant to any Incentive, require the recipient of the Incentive, as a condition to the receipt thereof or to the receipt of shares of
Common Stock issued pursuant thereto, to deliver to the Company a written representation of present intention to acquire the Incentive or the shares of Common Stock issued pursuant thereto for his own account for investment and not for distribution;
and (b) if at any time the Company further determines, in its sole discretion, that the listing, registration or qualification (or any updating of any such document) of any Incentive or the shares of Common Stock issuable pursuant thereto is
necessary on any securities exchange or under any federal or state securities or blue sky law, or that the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection with the award of any
Incentive, the issuance of shares of Common Stock pursuant thereto, or the removal of any restrictions imposed on such shares, such Incentive shall not be awarded or such shares of Common Stock shall not be issued or such restrictions shall not be
removed, as the case may be, in whole or in part, unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company. 
 10.5. Adjustment. In the event of any merger, consolidation or reorganization of the Company with any other corporation or corporations, there shall be
substituted for each of the shares of Common Stock then subject to the Plan, including shares subject to restrictions, options or achievement of performance objectives, the number and kind of shares of stock or other securities to which the holders
of the shares of Common Stock will be entitled pursuant to the transaction. In the event of any recapitalization, stock dividend, stock split, combination of shares or other change in the Common Stock, the number of shares of Common Stock then
subject to the Plan, including shares subject to outstanding Incentives, shall be adjusted in proportion to the change in outstanding shares of Common Stock. In the event of any such adjustments, the purchase price of any option, the performance
objectives of any Incentive, and the shares of Common Stock issuable pursuant to any Incentive shall be adjusted as and to the extent appropriate, in the reasonable discretion of the Committee, to provide participants with the same relative rights
before and after such adjustment. No substitution or adjustment shall require the Company to issue a fractional share under this Plan and the substitution or adjustment shall be limited by deleting any fractional share. 
 10.6. Incentive Agreements. The terms of each Incentive granted to an employee, officer, consultant or advisor shall be stated in an agreement approved
by the Committee. 
  

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 10.7. Withholding. 
 A. The Company shall have the right to withhold from any payments made under the Plan or to collect as a condition of payment, any taxes
required by law to be withheld. At any time that a participant is required to pay to the Company an amount required to be withheld under applicable income tax laws in connection with the issuance of Common Stock, the lapse of restrictions on Common
Stock or the exercise of an option, the participant may, subject to disapproval by the Committee, satisfy this obligation in whole or in part by electing (the “Election”) to have the Company withhold shares of Common Stock having a value
equal to the amount required to be withheld. The value of the shares to be withheld shall be based on the Fair Market Value of the Common Stock on the date that the amount of tax to be withheld shall be determined (“Tax Date”). 

B. Each Election must be made prior to the Tax Date. The Committee may disapprove of any Election, may suspend or terminate the right
to make Elections, or may provide with respect to any Incentive that the right to make Elections shall not apply to such Incentive. If a participant makes an election under Section 83(b) of the Internal Revenue Code with respect to shares of
restricted stock, an Election is not permitted to be made. 
 10.8. No Continued Employment. No participant under the Plan shall have any
right, because of his or her participation, to continue in the employ of the Company for any period of time or to any right to continue his or her present or any other rate of compensation. 
 10.9. Deferral Permitted. Payment of cash or distribution of any shares of Common Stock to which a participant is entitled under any Incentive shall be
made as provided in the Incentive Agreement. Payment may be deferred at the option of the participant if provided in the Incentive Agreement. 
 10.10. Amendments to or Termination of the Plan. 
 A. The Board may amend, suspend or terminate the Plan or any
portion thereof at any time, provided that no amendment shall be made without shareholder approval if such approval is necessary to comply with any tax or regulatory requirement, including any approval necessary to qualify Incentives as
“performance- based” compensation under Section 162(m) or any successor provision, if such qualification is deemed necessary or advisable by the Committee. 
 B. Any provision of this Plan or any Incentive Agreement to the contrary notwithstanding, the Committee may cause any Incentive granted
hereunder to be cancelled in consideration of a cash payment or alternative Incentive made to the holder of such cancelled Incentive equal in value to such cancelled Incentive. The determinations of value under this subparagraph shall be made by the
Committee in its sole discretion. 
 10.11. Change of Control. 
 A. “Change of Control” shall mean: 
  

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 1. the acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the 1934 Act of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of more than 50% of the outstanding shares of the Common Stock; provided, however, that for purposes of this
subsection 1., the following shall not constitute a Change of Control: 
 (a) any acquisition of Common Stock directly or
indirectly from OMNI, 
 (b) any acquisition of Common Stock by OMNI, 
 (c) any acquisition of Common Stock by any employee benefit plan (or related trust) sponsored or maintained by OMNI or any corporation
controlled by OMNI, or 
 (d) any acquisition of Common Stock by any corporation pursuant to a transaction that complies with
clauses (a), (b) and (c) of subsection (A)(3) of this Section 10.11; or 
 2. individuals who, as of the date
of adoption of the Plan by the Board of Directors of OMNI (the “Adoption Date”), constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the Adoption Date whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be
considered a member of the Incumbent Board, unless such individual’s initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a person other than the Incumbent Board; or 
 3. Approval by the
shareholders of OMNI of a reorganization, merger or consolidation, or sale or other disposition of all of substantially all of the assets of the Company (a “Business Combination”), in each case, unless, following such Business Combination,

 (a) all or substantially all of the individuals and entities who were the beneficial owners of OMNI’s outstanding
common stock and OMNI’s voting securities entitled to vote generally in the election of directors immediately prior to such Business Combination have direct or indirect beneficial ownership, respectively, of more than 50% of the then
outstanding shares of common stock, and more than 50% of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, of the corporation resulting from such Business Combination (which,
for purposes of this paragraph (a) and paragraphs (b) and (c), shall include a corporation which as a result of such transaction controls the Company or all or substantially all of the Company’s assets either directly or through one
or more subsidiaries), and 
  

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 (b) except to the extent that such ownership existed prior to the Business Combination,
no person (excluding any corporation resulting from such Business Combination or any employee benefit plan or related trust of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 30%
or more of the then outstanding shares of common stock of the corporation resulting from such Business Combination or 30% or more of the combined voting power of the then outstanding voting securities of such corporation, and 
 (c) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members
of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or 
 4. approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 
 B. Upon a Change of Control, all outstanding options shall automatically become fully exercisable, all restrictions or limitations on any Incentives, including without limitation restricted stock, shall lapse and all
performance criteria and other conditions relating to the payment of Incentives shall be deemed to be achieved or waived by the Company, without the necessity of any action by any person. 
 C. No later than 30 days after the approval by the Board of a Change of Control of the types described in Subsections A.3 and A.4 of this
Section 10.11, and no later than 30 days after a Change of Control of the type described in Subsections A.1 and A.2 of this Section 10.11 of the Plan, the Committee (as the Committee was composed immediately prior to such Change of Control
and notwithstanding any removal or attempted removal of some or all of the members thereof as directors or Committee members), acting in its sole discretion without the consent or approval of any participant, may act to effect one or more of the
alternatives listed below and such act by the Committee may not be revoked or rescinded by persons not members of the Committee immediately prior to the Change of Control: 
 1. require that all outstanding options be exercised on or before a specified date (before or after such Change of Control) fixed by the
Committee, after which specified date all unexercised options shall terminate, 
 2. make such equitable adjustments to
Incentives then outstanding as the Committee deems appropriate to reflect such Change of Control (provided, however, that the Committee may determine in its sole discretion that no adjustment is necessary), or 
 3. provide that thereafter upon any exercise of an option the participant shall be entitled to purchase under such option, in lieu of the
number of shares of Common Stock then covered by such option, the number and class of shares of stock or other 

  

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securities or property (including, without limitation, cash) to which the participant would have been entitled pursuant to the terms of the agreement
providing for the merger, consolidation, asset sale, dissolution or other Change of Control of the type described in Sections 10.11.A.3 and A.4 of the Plan, if, immediately prior to such Change of Control, the participant had been the holder of
record of the number of shares of Common Stock then covered by such options. 
 10.12. Definition of Fair Market Value. Whenever “Fair
Market Value” of Common Stock shall be determined for purposes of this Plan, it shall be determined as follows: (i) if the Common Stock is listed on an established stock exchange or any automated quotation system that provides sale
quotations, the closing sale price for a share of the Common Stock on such exchange or quotation system on the applicable date; (ii) if the Common Stock is not listed on any exchange or quotation system, but bid and asked prices are quoted and
published, the mean between the quoted bid and asked prices on the applicable date, and if bid and asked prices are not available on such day, on the next preceding day on which such prices were available; and (iii) if the Common Stock is not
regularly quoted, the fair market value of a share of Common Stock on the applicable date as established by the Committee in good faith. 
 10.13. Loans. In order to assist a participant in acquiring shares of Common Stock pursuant to an Incentive granted under the Plan, the Committee may authorize, subject to the provisions of Regulation G of the Board of Governors of the
Federal Reserve System, at either the time of the grant of the Incentive, at the time of the acquisition of Common Stock pursuant to the Incentive, or at the time of the lapse of restrictions on shares of restricted stock granted under the Plan, the
extension of a loan to the participant by the Company. The terms of any loans, including the interest rate, collateral and terms of repayment, will be subject to the discretion of the Committee. The maximum credit available hereunder shall be equal
to the aggregate purchase price of the shares of Common Stock to be acquired pursuant to the Incentive plus the maximum tax liability that may be incurred in connection with the Incentive. 
 10.14. Tax Benefit Rights. The Committee may grant a tax benefit right (“TBR”) to a participant in the Plan on such terms as the Committee in
its discretion shall determine. A TBR may be granted only with respect to an Incentive granted under the Plan and may be granted concurrently with or after the grant of the Incentive. A TBR shall entitle a participant to receive from the Company an
amount in cash not to exceed the product of the ordinary income, if any, which the participant may realize as the result of the exercise of an option or the grant or vesting of restricted stock or an Other Stock-Based Award (including any income
realized as a result of the related TBR) multiplied by the then applicable highest stated federal and state tax rate for individuals. The Committee shall determine all terms and provisions of the TBR granted hereunder. 
  

 B-11Notice of Proposed Derivative Action Settlement

 Exhibit 10.1 
 UNITED STATES DISTRICT COURT 
 DISTRICT OF MASSACHUSETTS 
  

					
	IN RE BIOPURE CORPORATION        	 	)	    	Master Docket No. 1:04-cv-10177-NG
	DERIVATIVE LITIGATION	 	)	    	(Consolidated Derivative Action)
		 	)	    	
		 	)	    	Assigned to: Judge J. Nancy Gertner
		 	)	    	
	  
	 	)	    	Magistrate Judge Alexander

 NOTICE OF PROPOSED SETTLEMENT OF DERIVATIVE ACTION, SETTLEMENT 
 HEARING, AND RIGHT TO APPEAR 
  

	TO:	ALL RECORD HOLDERS AND BENEFICIAL OWNERS OF SHARES OF COMMON STOCK OF BIOPURE CORPORATION AS OF MAY 27, 2009. 

 PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. THE RIGHTS OF BIOPURE CORPORATION AND ANY SHAREHOLDER SEEKING TO ACT DERIVATIVELY ON ITS BEHALF
WILL BE AFFECTED BY THE LEGAL PROCEEDINGS IN THIS LITIGATION. IF THE COURT APPROVES THE PROPOSED SETTLEMENT, YOU WILL BE FOREVER BARRED FROM CONTESTING THE FAIRNESS, REASONABLENESS AND ADEQUACY OF THE PROPOSED SETTLEMENT AND FROM PURSUING SETTLED
AND RELEASED CLAIMS. 
 IF YOU HOLD COMMON STOCK FOR THE BENEFIT OF ANOTHER, PLEASE PROMPTLY TRANSMIT THIS DOCUMENT TO SUCH BENEFICIAL
OWNER. 
 The purpose of this notice is to advise you that, pending in the United States District Court for the District of Massachusetts
(the “Court”) is a proposed settlement (the “Settlement”) of this shareholders’ derivative action as provided for in a Stipulation and Agreement of Compromise, Settlement and Release (the “Stipulation”) dated
May 22, 2009. As more fully described below, the Settlement, as submitted to the Court for final approval, results in benefits to Biopure Corporation (“Biopure” or the “Company”) and its shareholders and will also involve
payment of counsel fees and expenses. The benefits are described below. The Settlement will not result in any payments to individual shareholders. This Notice describes the rights you may have in the derivative action and pursuant to the Stipulation
and what steps you may take, but are not required to take, in relation to the Settlement. 

 The Court has scheduled a hearing (the “Settlement Hearing”) at 2:30 p.m. on the 24th day of
July, 2009, in the United States District Court for the District of Massachusetts, 1 Courthouse Way, Boston, Massachusetts 02210 to: (a) determine whether the Court should approve the Settlement as fair, reasonable, adequate and in the best
interests of shareholders; (b) determine whether an Order and Final Judgment should be entered pursuant to the Stipulation; (c) consider the request by Plaintiffs’ counsel for an award of attorneys’ fees and expenses for
Plaintiffs’ counsel; and (d) rule on such other matters as the Court may deem appropriate. 
 Any shareholder who objects to
approval of the Settlement and/or to the application for attorneys’ fees and expenses must serve a written objection on counsel for the parties, identified on pages 6-7 of this Notice, and must additionally file his or her objection with the
Court. All written objections must be filed and served in the manner described on pages 6-7 of this Notice, no later than July 10, 2009. 
 This Notice contains summary information about the Settlement. The full terms and conditions of the Settlement are contained in the Stipulation. The Stipulation and additional information about this lawsuit are available from
plaintiffs’ counsel: 
 Douglas S. Johnston, Jr., Esq. 
 Barrett, Johnston & Parsley 
 217 Second Avenue, North 
 Nashville, TN 37201 
 THE FOLLOWING RECITATION DOES NOT
CONSTITUTE FINDINGS OF THE COURT. IT IS BASED ON STATEMENTS OF THE PARTIES AND SHOULD NOT BE UNDERSTOOD AS AN EXPRESSION OF ANY OPINION OF THE COURT AS TO THE MERITS OF ANY OF THE CLAIMS OR DEFENSES RAISED BY ANY OF THE PARTIES. 
 1. What is this lawsuit about? 
 On
January 26, 2004, Plaintiffs John and Laurie Parrott filed a derivative action complaint in the Court against certain present and former officers and directors of the Company, 

  

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with the Company named as a nominal defendant. On January 29, 2004, Plaintiff Rich Reinisch filed a similar derivative action on behalf of Biopure
alleging the same causes of action. On May 14, 2004, the Court entered an order consolidating the cases (the “Derivative Action”) and a Verified Consolidated Amended Shareholder Derivative Complaint was filed on July 14, 2004,
followed by a Verified Consolidated Second Amended Shareholder Derivative Complaint on March 30, 2006. The complaints assert claims derivatively on behalf of the Company against certain persons affiliated with the Company for alleged breach of
fiduciary duties, abuse of control, gross mismanagement, waste of corporate assets, unjust enrichment, insider selling and misappropriation of information. The complaints allege that the individual directors and officers breached fiduciary duties in
connection with disclosures concerning regulatory and clinical events. More specifically, Plaintiffs allege that the Defendants caused Biopure to issue misleading statements and conceal material facts from investors and the public concerning
Hemopure®, one of the Company’s primary products. After the Court denied the Company’s motions to dismiss the complaints, the Company appointed two disinterested directors as a special litigation committee to determine whether the
Company should pursue this action. The special litigation committee conducted its investigation and determined the Company should not pursue the action. The special litigation committee accordingly filed a motion to dismiss the action. After full
briefing by the Parties, the Court heard oral argument on the SLC’s motion to dismiss on March 9, 2009 and took the matter under advisement. That motion is pending; it has not been ruled on by the Court. 
 2. What does the settlement provide? 
 During part of the period this Derivative Action has been pending, the Company and certain former and present directors or officers were sued by the United States Securities and Exchange Commission (the “SEC). In September of 2006,
Biopure announced a settlement with 

  

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the SEC, a significant part of which required Biopure to engage an independent consultant to, among other things, review and recommend corporate governance
changes for the company relating to disclosure procedures. On December 21, 2006, counsel for the Plaintiffs sent a letter to the independent consultant along with a copy of a demand letter that Plaintiffs had sent to Defendants in May of 2006.
Subsequently, Biopure took certain actions related to corporate governance changes and/or disclosure procedures, which are listed on Exhibit A, attached to the Stipulation. Those corporate governance changes were instituted after the commencement of
the Derivative Action. Biopure (through its agents or counsel) and the independent consultant had been sent the demands by Plaintiffs referred to above prior to the independent consultant’s recommendations and the actions taken by Biopure. The
Parties acknowledge that some of those corporate governance changes implemented by Biopure were substantially similar to those demanded by Plaintiffs and that other corporate governance changes have been implemented by Biopure since the institution
of the Derivative Action, which are also substantially similar to certain changes demanded by Plaintiffs. The Plaintiffs’ demands for corporate governance changes, which were provided to the independent consultant, were part of the process
resulting in the corporate governance changes implemented by the Company. The Plaintiffs believe that the causes of action asserted in their complaints have merit, but also believe that the Settlement provides substantial immediate benefits for the
Company and its shareholders. Plaintiffs and their counsel believe that the terms and conditions of the Settlement are fair, reasonable, adequate, and proper, and that it is in the best interests of the Company and its shareholders to settle the
Derivative Action pursuant to the Stipulation. In reaching the Settlement, Plaintiffs have avoided the cost, time, and uncertainty of continued litigation. As with any lawsuit, the Plaintiffs, the Company, and shareholders would face an uncertain
outcome if litigation 
  

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 continued. Continued litigation of the Derivative Action could result in an outcome more or less beneficial to the
Plaintiffs, the Company, and shareholders than under the terms of the Stipulation. Based on all of these factors, Plaintiffs and their counsel believe the Settlement is in the best interests of the Company and its shareholders. Defendants have
vigorously denied, and continue to deny any wrongdoing or liability with respect to all claims, events, and transactions complained of in the Derivative Action. The Defendants have agreed to the Settlement to avoid the further expense,
inconvenience, and distraction of burdensome and protracted litigation, as well as to put to rest all controversies which were asserted or which could be asserted in connection with, or which arise out of, any of the matters or transactions set
forth or referred to in the complaints in this action. There has been no adverse determination by any court against any of the Defendants on the merits of the claims that Plaintiffs have asserted. 
 3. What happens next? 
 If the
Court determines that the Settlement, as provided for in the Stipulation, is fair, reasonable, adequate and in the best interests of the Company, the parties will ask the Court to enter an “Order and Final Judgment”, which will, among
other things: (1) approve the Settlement and adjudge its terms to be fair, reasonable, adequate and in the best interests of the Company, pursuant to Delaware law and Court rules; (2) authorize and direct the performance of the Settlement
in accordance with its terms and conditions; (3) determine that the requirements of Court Rules and due process have been satisfied in connection with this Notice; (4) dismiss the Derivative Action with prejudice in accordance with the
terms of the Stipulation, and grant the releases described in the Stipulation; and (5) award attorneys’ fees and expenses to Plaintiffs’ counsel. 
 4. How will the lawyers be paid? 
 The Plaintiffs in this action have been represented by several law
firms. You will not be charged directly by these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense. 
  

 -5- 

 At the Settlement Hearing, Plaintiffs’ counsel will request the Court for an award of
attorneys’ fees and reimbursement of expenses, not to exceed $600,000. The Company has agreed to cause its insurers to pay the fees and expenses so awarded not to exceed $600,000. 
 5. How do I tell the Court that I don’t like the settlement? 
 If you
are a Shareholder of the Company, you can tell the Court that you do not agree with the Settlement, the Order and Final Judgment, or the attorneys’ fees and expenses that Plaintiffs’ counsel intends to seek. To object, you or your counsel
must send a letter or other written filing saying that you object to the Settlement in IN RE BIOPURE CORPORATION DERIVATIVE LITIGATION, Civil Action No. 04-10177-NG. Be sure to (a) include your name, address, telephone number, and
signature; (b) state your intention to appear at the Final Settlement Hearing; (c) provide proof that you are a Shareholder; (d) include a full explanation of all reasons you object to the Settlement and the reasons you desire to
appear and be heard; and (e) describe any documents or writings you desire the Court to consider. YOUR WRITTEN OBJECTION MUST BE SERVED ON THE FOLLOWING COUNSEL AND MUST BE RECEIVED NO LATER THAN JULY 10, 2009: 
  

					
	 Douglas S. Johnston, Jr.
 Barrett, Johnston & Parsley
 217 Second Avenue, North
 Nashville, TN 37201
	 	 Robert A. Buhlman
 Bingham McCutchen LLP
 One Federal Street
 Boston, MA 02110
	 	 Bruce E. Falby
 DLA Piper LLP (US)
 33 Arch Street
 Boston, MA 02110

			
	 Plaintiffs’ Counsel
	 	Defendants’ Counsel	 	 Special Litigation
 Committees’
Counsel

  

 -6- 

 You must also file your objection with the United States District Court for the District of
Massachusetts. The address is: 1 Courthouse Way, Boston, Massachusetts 02210. YOUR OBJECTION MUST BE RECEIVED NO LATER THAN JULY, 10 2009. 
 6. What will happen at the Settlement Hearing? 
 The Court has scheduled a Settlement Hearing at
2:30p.m. on the 24th day of July, 2009, in the United States District Court for the District of Massachusetts, 1 Courthouse Way, Boston, Massachusetts 02210 to: (a) determine whether the Court should approve the Settlement as fair, reasonable,
adequate and in the best interests of shareholders; (b) determine whether the Court should enter an Order and Final Judgment pursuant to the Stipulation; (c) consider Plaintiffs’ request for an award of attorneys’ fees and
expenses for Plaintiffs’ counsel; and (d) rule on such other matters as the Court may deem appropriate. 
 You are welcome to come
to the Settlement Hearing at your own expense. If you send an objection, you are not required to come to Court to talk about it. As long as you serve your written objection on time, it will be before the Court when the Court considers whether to
approve the Settlement. You also may pay your own lawyer to attend the Settlement Hearing, but such attendance is not necessary. You are also not required to attend the Settlement Hearing if you agree with or approve of the terms of the Settlement.

 If you plan to attend the Settlement Hearing, please contact counsel for the Plaintiffs to confirm the time and date of the hearing. The
Settlement Hearing is presently scheduled for July 24, 2009. The Court, however, may change the time and date of the hearing. 
 7. Notice
to persons or entities holding ownership on behalf of others. 
 Brokerage firms, banks and/or other persons or entities who
hold shares of the common stock of the Company for the benefit of others are directed promptly to send this Notice to all of their respective beneficial owners. If additional copies of the Notice are needed for forwarding to such beneficial owners,
any requests for such copies may be made to Plaintiffs’ counsel: 
  

					
		 	 Douglas S. Johnston, Jr.
 Barrett, Johnston & Parsley
 217 Second Avenue, North
 Nashville, TN 37201
	 	

  

 -7- 

 8. Scope of this notice 
 This Notice is not all-inclusive. The references in this Notice to the pleadings in the Derivative Action, the Stipulation and other papers and
proceedings are only summaries and do not purport to be comprehensive. For the full details of the Derivative Action and the terms and conditions of the Settlement, including a complete copy of the Stipulation, shareholders are referred to the Court
files in the Derivative Action. You or your attorney may examine the Court files during regular business hours of each business day at the office of the Clerk, United States District Court, District of Massachusetts, 1 Courthouse Way, Boston,
Massachusetts 02210. 
 PLEASE DO NOT CALL THE COURT. 
  

			
	 Dated: June 2, 2009
	 	                            /s/     BIOPURE CORPORATION

  

 -8-

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