Document:

wve-ex1032_118.htm

Exhibit 10.3.2

Execution Version

Second Amendment To 

Collaboration and License Agreement

This Second Amendment (this “Second Amendment”) to the Collaboration Agreement (as defined below) is entered into as of October 15, 2021 (“Second Amendment Effective Date”) by and among Wave Life Sciences USA, Inc., a corporation organized and existing under the Laws of the State of Delaware (“Wave US”), Wave Life Sciences UK Limited, a private limited company incorporated under the laws of England and Wales (“Wave UK”, and together with Wave US, “Wave”), and Takeda Pharmaceutical Company Limited, a corporation organized and existing under the Laws of Japan (“Takeda”).  Wave and Takeda are referred to in this Agreement individually as a “Party” and collectively as the “Parties”. Capitalized terms that are not defined herein will have the meanings ascribed to them in the Collaboration Agreement.

RECITALS

WHEREAS, Wave and Takeda are Parties to that certain Collaboration and License Agreement executed as of February 19, 2018, as amended by the First Amendment to the Collaboration and License Agreement, dated August 4, 2020 (such amendment, the “First Amendment”, and such agreement as amended, the “Collaboration Agreement”);

WHEREAS, pursuant to [***] the Collaboration Agreement with respect to the Licensed Category 2 Targets in existence [***] (the “Existing Licensed Category 2 Targets”).  For purposes of this Second Amendment, Existing Licensed Category 2 Targets shall [***];

WHEREAS, the Parties agree to wind down all Licensed Category 2 Programs associated with the Existing Licensed Category 2 Targets (the “Existing Licensed Category 2 Programs”); and 

WHEREAS, the Parties desire to amend the Collaboration Agreement in connection with such wind-down.

NOW, THEREFORE, in consideration of the premises and the mutual promises and conditions set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, do hereby agree as follows:

1.Program Wind Down Payment

1.1Takeda will pay a one-time non-refundable, non-creditable and not subject to set-off, payment of Twenty-Two Million Five Hundred Thousand Dollars ($22,500,000.00) to Wave as [***] with respect to the Existing Licensed Category 2 Programs (such payment, the “Program Wind-Down Payment”), such payment to be made no later [***] (the date Wave receives the Program Wind-Down Payment, the “Program Wind-Down Payment Date”).  Wave desires that the Program Wind-Down Payment be allocated between Wave US and Wave UK and Takeda will make the Program Wind-Down Payment to each of Wave US and Wave UK as indicated on Exhibit A to this Second Amendment.  

1.2Takeda will pay to Wave the full amount of the Program Wind-Down Payment and will not apply the amount of any previously unspent amount of any Annual Research Fees paid by Takeda to Wave pursuant to Section 11.4.1 of the Collaboration Agreement against the Program Wind-Down Payment. Other than the Program Wind-Down Payment, Wave will not seek reimbursement or payment from Takeda for any other Licensed Category 2 Research Expenses or other amounts related to the Existing Licensed Category 2 Programs whenever incurred, including during the fourth (4th) year of the Initial Licensed Category 2 Research Term.

 

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2.Licensed Category 2 Programs

2.1Notwithstanding anything to the contrary in the Collaboration Agreement [***], effective as of the Program Wind-Down Payment Date, the Parties hereby [***] agree to wind down the Existing Licensed Category 2 Programs, including the Licensed Category 2 Research Term with respect to all Existing Licensed Category 2 Targets, and all Existing Licensed Category 2 [***]. All Existing Licensed Category 2 Targets will be [***] of the Collaboration Agreement and, except as otherwise set forth in this Second Amendment, [***] of the Collaboration Agreement will apply with respect to the Existing Licensed Category 2 Targets [***]. 

2.2Except as expressly set forth in this Second Amendment (including Section 4.3 of this Second Amendment), as of the Second Amendment Effective Date, Takeda will have no further rights or obligations (including under Section 13.6.1.2 of the Collaboration Agreement) to Wave with respect to the Existing Licensed Category 2 Programs, including any Existing Licensed Category 2 Targets or Licensed Category 2 Compounds associated with such Existing Licensed Category 2 Programs.  Except as expressly set forth in this Second Amendment (including Section 4.3 of this Second Amendment), as of the Second Amendment Effective Date, Takeda will have no further rights or obligations under Article 4 or Sections 5.2 or 11.4.1 of the Collaboration Agreement to Wave with respect to any Licensed Category 2 Programs, including any Licensed Category 2 Compounds or any Licensed Category 2 Targets.  For the avoidance of doubt, the foregoing sentence does not limit Takeda’s obligations under Section 1 of this Second Amendment.  

2.3Except as expressly set forth in this Second Amendment (including Sections 4.3 and 4.6 of this Second Amendment), as of the Second Amendment Effective Date, Wave will have no further rights or obligations (including under Section 13.6.1.1 of the Collaboration Agreement) to Takeda with respect to the Existing Licensed Category 2 Programs, including any Existing Licensed Category 2 Targets or Licensed Category 2 Compounds associated with such Existing Licensed Category 2 Programs.  Except as expressly set forth in this Second Amendment (including Sections 4.3 and 4.6 of this Second Amendment), as of the Second Amendment Effective Date, Wave will have no further rights or obligations under Article 4 or Sections 5.2 or 11.4.1 of the Collaboration Agreement to Takeda with respect to any Licensed Category 2 Programs, including any Licensed Category 2 Compounds or any Licensed Category 2 Targets

2.4For the avoidance of doubt, if (a) pursuant to Section 3.4.2.1 of the Collaboration Agreement, Wave elects to convert a Candidate Category 1 Target that is the subject of an Option Exercise Notice into a Licensed Category 2 Target and to convert all Candidate Category 1 Compounds, Candidate Category 1 Products, and Companion Diagnostics directed to such Candidate Category 1 Target into Licensed Category 2 Compounds, Licensed Category 2 Products, and Companion Diagnostics directed to such Licensed Category 2 Target (as applicable), or (b) pursuant to Section 3.4.2.2 of the Collaboration Agreement, Takeda deems that Wave provided a Conversion Notice with respect to a Licensed Category 1 Target and thereby a Licensed Category 1 Target is converted to a Licensed Category 2 Target and all Licensed Category 1 Compounds, Licensed Category 1 Products, and Companion Diagnostics directed to such Licensed Category 1 Target are converted into Licensed Category 2 Compounds, Licensed Category 2 Products, and Companion Diagnostics directed to such Licensed Category 2 Target, respectively, then, in either case ((a) or (b)), the Collaboration Agreement (as amended by this Second Amendment) shall continue to apply with respect to such Licensed Category 2 Compounds, Licensed Category 2 Products, and Companion Diagnostics directed to such Licensed Category 2 Target.  For the further avoidance of doubt, Section 11.4.1 of the Collaboration Agreement does not apply with respect to any Licensed Category 2 Target the subject of a Conversion Notice and Takeda shall have no obligations and Wave shall have no rights under Section 11.4.1.

3.Amendment

3.1Notwithstanding anything to the contrary in the Collaboration Agreement, Takeda hereby grants to Wave and its Affiliates, an exclusive, royalty-free, fully paid, worldwide, irrevocable, perpetual license, with the right to grant sublicenses through multiple tiers, under the Reversion Technology, solely to the extent necessary to Exploit Reversion Products in the Field in the Territory (such license, the “Reversion License” for  purposes of this Second Amendment and the Collaboration Agreement).   Except as modified by this Section 3.1 of this Second Amendment, Section 16.6.3 of the Collaboration Agreement shall apply with respect to such Reversion License.

 

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3.2Notwithstanding anything to the contrary in the Collaboration Agreement, the Parties acknowledge and agree that Sections 16.6.4, 16.6.5, 16.6.6, 16.6.7, 16.6.8 and 16.6.9 of the Collaboration Agreement are not applicable for the Existing Licensed Category 2 Targets, and Takeda shall have no obligations under any such Section of the Collaboration Agreement under this Second Amendment, the wind down of such Existing Licensed Category 2 Programs [***]. Takeda hereby represents and warrants to Wave as of the Second Amendment Effective Date that, to the knowledge of Takeda, Takeda is not party to any Third Party agreement relating exclusively to the Exploitation of any Reversion Product.  Notwithstanding anything to the contrary in this Section 3.2 of this Second Amendment, if following the Second Amendment Effective Date, Takeda determines that it is party to any Third Party agreement relating exclusively to the Exploitation of any Reversion Product, then Takeda shall promptly give Wave notice of the same and the Parties shall comply with Section 16.6.7 of the Collaboration Agreement. 

3.3Solely for purposes of this Second Amendment and with respect to all Existing Licensed Category 2 Targets, Section 16.9 of the Collaboration Agreement is hereby amended and restated as follows: 

“In addition to the termination consequences set forth in Section 16.6 (Effects of Termination by Wave for Cause or Takeda for Convenience) (together with the Sections referenced therein), the following provisions will survive termination of this Agreement with respect to all Existing Licensed Category 2 Targets:  all of Sections 1 (Definitions), 5.5 (Scientific Records) to the extent consistent with the applicable Party’s record retention policies, 10.7 (No Other Rights) (solely in case of termination), 12 (Confidentiality and Publication), 14.5 (Limitation of Liability), 15.1 (Inventorship), 15.2 (Ownership), 15.4.3 (Joint Collaboration IP), 15.4.4 (Patent Assistance) (solely with respect to Joint Collaboration IP), 15.5 (Third Party Infringement and Defense) (solely with respect to Joint Collaboration IP), 15.9 (Common Interest), Section 16.9 (Survival), and 17 (Miscellaneous).  Except as otherwise set forth in this Second Amendment, termination of this Agreement with respect to the Existing Licensed Category 2 Targets will not relieve the Parties of any liability or obligation which accrued hereunder prior to the effective date of such termination, nor preclude either Party from pursuing all rights and remedies it may have hereunder or at law or in equity, with respect to any breach of this Agreement.”  

3.4Section 5.3.2 of the Collaboration Agreement is hereby amended and restated in its entirety as follows:

“5.3.2Licensed Category 2 Transition Plan. On a Licensed Category 2 Target-by-Licensed Category 2 Target basis, no later than sixty (60) days after a Conversion Notice pursuant to Section 3.4.2.1 or Takeda deeming a failure to pay as delivery of a Conversion Notice pursuant to Section 3.4.2.2, the Parties will prepare a plan for the transition from Wave to Takeda of all further Development and regulatory activities for Licensed Category 2 Compounds, Licensed Category 2 Products, and Companion Diagnostics directed to the applicable Licensed Category 2 Target, including any required technology transfer (for each such Licensed Category 2 Target, a “Licensed Category 2 Transition Plan”). Each Licensed Category 2 Transition Plan will include (a) the assignment from Wave to Takeda of all INDs, Regulatory Approvals, Regulatory Materials and other regulatory documentation related to such Licensed Category 2 Compounds, Licensed Category 2 Products, and Companion Diagnostics directed to the applicable Licensed Category 2 Target, and (b) a detailed budget for such activities, that takes into account the expected costs of such activities (for each Licensed Category 2 Target, the “Licensed Category 2 Transition Budget”).  The JSC will review and discuss each such Licensed Category 2 Transition Plan and each such Licensed Category 2 Transition Plan will be subject to Takeda’s final decision making authority pursuant to Section 9.7.2.2. The Parties understand that a Licensed Category 2 Transition Plan, along with the Parties’ obligations thereunder, will commence after a Conversion Notice pursuant to Section 3.4.2.1 or Takeda deeming a failure to pay as delivery of a Conversion Notice pursuant to Section 3.4.2.2, and such obligations will continue beyond the transfer to Takeda of Regulatory Lead with respect thereto. The Parties agree that, notwithstanding anything in this Agreement to the contrary, Wave will not be required to perform activities under a Licensed Category 2 Transition Plan unless Takeda fully funds Wave’s activities in accordance with and to the extent set forth in Section 5.3.5 (Licensed Category 2 Development Expenses) other than any costs or expenses of Wave or its Affiliates to the extent caused by Wave’s breach of this Agreement.  For the avoidance of doubt, and notwithstanding anything to the contrary contained in this Agreement, from and after a Conversion Notice pursuant to Section 3.4.2.1 or deemed provision of a Conversion Notice pursuant to Section 

 

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3.4.2.2, (x) Takeda shall be the Development Lead and the Regulatory Lead for all Licensed Category 2 Compounds, Licensed Category 2 Products, and Companion Diagnostics directed to the applicable Licensed Category 2 Target and (y) the Licensed Category 2 Development Term shall be deemed to have commenced upon the relevant Conversion Notice, or Takeda deeming a failure to pay as a Conversion Notice.  This Section 5.3.2 will control in the event of a conflict with Section 3.4.2.”

3.5This Second Amendment will control in the event of a conflict with the Collaboration Agreement with respect to any Licensed Category 2 Targets.

4.Additional Terms.

4.1Each Party will be responsible for its own attorneys’ fees related to this Second Amendment.  

4.2The Parties hereby disband the Category 2 Research Committee as of the Program Wind-Down Payment Date. 

4.3 Wave will [***] during a meeting of the JSC or another forum mutually acceptable to the Parties, [***] part of the Licensed Category 2 Research Program [***] within thirty (30) days following [***] pursuant to this Section 4.3 of this Second Amendment is and will remain [***] and is and will be subject to Article 12 of the Collaboration Agreement; and [***] under the Collaboration Agreement and to inform [***].

4.4Neither Party will make any press release related to this Second Amendment without the written agreement of both Parties as to the substance of any such press release, except for the press release attached to this Second Amendment as Exhibit C, except that following such press release, either Party may make subsequent public disclosure of the information contained in such press release without the further approval of the other Party (so long as such information remains true and correct).

4.5Effective as of the Program Wind-Down Payment Date, each Party hereby grants the other Party [***]. 

4.6Wave will indemnify, hold harmless, and defend Takeda Indemnitees from and against any and all Losses arising out of or resulting from, directly or indirectly, the Exploitation of [***] by or on behalf of Wave or any of its Related Parties.  Notwithstanding the foregoing, Wave will have no obligation to indemnify the Takeda Indemnitees to the extent that the Losses arise out of or result from, directly or indirectly, matters for which Takeda is obligated to indemnify Wave under Sections 14.1 of the Collaboration Agreement.  Sections 14.4 and 14.5 of the Collaboration Agreement (mutatis mutandis) will apply to all claims under this Section 4.6 of this Second Amendment.

5.Miscellaneous.

5.1Except as herein provided, the Collaboration Agreement and all of its terms remain in full force and effect.  The Collaboration Agreement will, together with this Second Amendment, be read and construed as a single agreement.

5.2This Second Amendment may be executed in two or more counterparts, including by facsimile or PDF signature pages, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

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IN WITNESS WHEREOF, the Parties have caused this Second Amendment to be executed by their duly authorized representatives as of the Second Amendment Effective Date.

 

	
WAVE LIFE SCIENCES USA, INC.
	
 
	
WAVE LIFE SCIENCES UK LIMITED

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
BY:
	
 
	
/s/ Kyle Moran
	
 
	
BY:
	
 
	
/s/ Kate Burt

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
NAME:
	
 
	
Kyle Moran
	
 
	
NAME:
	
 
	
Kate Burt

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
TITLE:
	
 
	
Chief Financial Officer
	
 
	
TITLE:
	
 
	
VP, Corporate Development

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
TAKEDA PHARMACEUTICAL COMPANY LIMITED
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
BY:
	
 
	
/s/ Ceri Davies
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
NAME:
	
 
	
/s/ Ceri Davies
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
TITLE:
	
 
	
Vice President
	
 
	
 
	
 
	
 

 

 

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Exhibit A

 

Allocation of Program Wind-Down Payment

 

	
 
	
•
	
Wave US ==  $[***]

 

	
 
	
•
	
Wave UK ==  $[***]

 

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Exhibit B

[***].

 

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Exhibit C

Press Release

 

	
	

 

Wave Life Sciences and Takeda Amend CNS Collaboration  

 

Amendment to ongoing collaboration allows Wave to advance or partner CNS programs, including those using ADAR editing

 

Takeda option to co-develop and co-commercialize late-stage CNS programs, including clinical programs WVE-004 and WVE-003, remains unchanged

 

CAMBRIDGE, Mass., October 18, 2021 – Wave Life Sciences Ltd. (Nasdaq: WVE), a clinical-stage genetic medicines company committed to delivering life-changing treatments for people battling devastating diseases, today announced an amendment to its ongoing collaboration with Takeda Pharmaceutical Company Limited, which immediately discontinues the discovery research component of the collaboration that provided Takeda with the right to license multiple preclinical programs for central nervous system (CNS) indications over a four-year research term. Under terms of the amendment, Takeda will pay Wave $22.5 million for collaboration-related research and preclinical expenses. The amendment announced today allows Wave to advance CNS programs independently or enter partnerships in the CNS field outside of the three specified targets, which are part of the ongoing late-stage collaboration between the companies.

 

The late-stage component of the original collaboration led by Wave remains unchanged, including Takeda’s option to co-develop and co-commercialize CNS therapies for three targets, C9orf72, HTT and ATXN3, including WVE-004 and WVE-003. WVE-004 and WVE-003 are currently being investigated in the ongoing Phase 1b/2a FOCUS-C9 clinical trial for the treatment of amyotrophic lateral sclerosis and frontotemporal dementia, and the ongoing Phase 1b/2a SELECT-HD clinical trial for the treatment of Huntington’s disease, respectively. Should Takeda opt in on any of these programs, Wave would receive an opt-in payment and would lead manufacturing and joint clinical co-development activities. Takeda would lead joint co-commercial activities in the United States and all commercial activities outside of the United States. Global costs and potential profits would be shared 50:50 and Wave would be eligible to receive development and commercial milestone payments.

 

“This amendment streamlines our existing collaboration with Takeda and immediately enables us to advance or partner early-stage CNS programs, outside of the C9orf72, HTT, and ATXN3 targets, and including those leveraging our ADAR editing capability,” said Paul Bolno, MD, MBA, President and Chief Executive Officer of Wave Life Sciences. “Over many years, the collaboration with Takeda has yielded value for Wave and the patients we aim to serve. We look forward to continuing the partnership as we advance our ongoing clinical programs.”

 

Wave’s cash runway remains unchanged. The company expects that its existing cash and cash equivalents, together with expected and committed cash from its existing collaboration, will enable the company to fund its operating and capital expenditure requirements into the second quarter of 2023.

 

 

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About Wave Life Sciences

 

Wave Life Sciences (Nasdaq: WVE) is a clinical-stage genetic medicines company committed to delivering life-changing treatments for people battling devastating diseases. Wave aspires to develop best-in-class medicines across multiple therapeutic modalities using PRISM, the company’s proprietary discovery and drug development platform that enables the precise design, optimization and production of stereopure oligonucleotides. Driven by a resolute sense of urgency, the Wave team is targeting a broad range of genetically defined diseases so that patients and families may realize a brighter future. To find out more, please visit www.wavelifesciences.com and follow Wave on Twitter @WaveLifeSci.

 

Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements regarding the collaboration and license agreement between Wave and Takeda, including the current amendment and the terms and payment related thereto; the anticipated benefits of the amendment; and the anticipated duration of our cash runway. The words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements in this press release are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release and actual results may differ materially from those indicated by these forward-looking statements as a result of these risks, uncertainties and important factors, including, without limitation, the risks and uncertainties described in the section entitled “Risk Factors” in Wave’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC), as amended, and in other filings Wave makes with the SEC from time to time. Wave undertakes no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.

 

# # #

 

Investor Contact:

Kate Rausch

617-949-4827

krausch@wavelifesci.com 

 

Media Contact:

Alicia Suter

617-949-4817

asuter@wavelifesci.com  

 

 

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  Exhibit 10.1

   

  AMENDED AND RESTATED WINC, INC.

  EXECUTIVE SEVERANCE PLAN

   

  Adopted on October 10, 2021

  As Amended and Restated on February 28, 2022

   

  	Winc, Inc., a Delaware corporation (the “Company”), has adopted this Amended and Restated Winc, Inc. Executive Severance Plan, including the attached Exhibits (the “Plan”), for the benefit of Participants (as defined below) on the terms and conditions hereinafter stated.  The Plan, as set forth herein, is intended to provide severance protections to a select group of management or highly compensated employees (within the meaning of ERISA (as defined below)) in connection with qualifying terminations of employment.

   

  1.	Defined Terms.  Capitalized terms used but not otherwise defined herein shall have the meanings indicated below:

   

  1.1	“Base Compensation” means the Participant’s annual base salary rate in effect immediately prior to a Qualifying Termination, disregarding any reduction which gives rise to Good Reason. 

   

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

   

  1.3	“Cash Salary Severance” means the portion of a Participant’s Cash Severance that is based on the Participant’s Base Compensation determined in accordance with Exhibit A or Exhibit B attached hereto, as applicable.

   

  1.4	“Cash Salary Severance Period” means the number of months during which the Participant is entitled to Cash Salary Severance beginning on the Date of Termination and determined in accordance with Exhibit A or Exhibit B attached hereto, as applicable.

   

  1.5	“Cash Severance” means the Cash Salary Severance and, with respect to a CIC Termination, the Incentive Compensation Severance, determined in accordance with Exhibit A or Exhibit B attached hereto, as applicable.

   

  1.6	“Cause” means, except as may otherwise be provided in a Participant’s employment agreement to the extent such agreement is in effect at the relevant time, any of the following events: 

  (a)	the Participant’s embezzlement, theft, fraud, misappropriation or any other intentional act of dishonesty involving the Company or any of its customers, vendors, agents or employees;

  (b)	the Participant’s conviction (including a plea of nolo contendere) of any felony or other crime or misdemeanor involving moral turpitude;

  (c)	the Participant’s continued and deliberate failure, for thirty (30) days after written notice, to substantially perform the Participant’s duties and responsibilities to the Company that materially and adversely affects the business or reputation of the Company;

  (d)	the Participant’s unauthorized use or intentional disclosure of any proprietary information or trade secrets of the Company outside the ordinary course of business, provided such use or disclosure materially damages the Company or its business or reputation; or

  (e)	the Participant’s breach of any material obligations under any written agreement the Participant has with the Company.

  Notwithstanding the foregoing, the termination of the Participant’s employment under subsection (c), (d), or (e) shall not be deemed to be for Cause unless and until there shall have been delivered to the Participant a notice specifying the particular act or acts or failure to act that is the basis of such notice, and the Participant fails, within ten (10) days of the Participant’s 

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  receipt of such notice, to substantially correct the same (to the extent correctable).  For clarity, a termination without “Cause” does not include any termination that occurs as a result of the Participant’s death or disability. 

  1.7	“Change in Control” shall have the meaning set forth in the Company’s 2021 Incentive Award Plan, as may be amended from time to time.

   

  1.8	“CIC Protection Period” means the period beginning three months prior to the date of a Change in Control and ending on and including the one-year anniversary of the date of a Change in Control. 

   

  1.9	“CIC Termination” means a Qualifying Termination which occurs during the CIC Protection Period.

   

  1.10	“Claimant” shall have the meaning set forth in Section 11.1 hereof.

   

  1.11	“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985.

   

  1.12	“COBRA Period” means the number of months used to calculate the COBRA Premium Payment, determined in accordance with Exhibit A or Exhibit B attached hereto, as applicable.

   

  1.13	“COBRA Premium Payment” shall have the meaning set forth in Section 4.2(b) hereof.

   

  1.14	“Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto.

   

  1.15	“Committee” means the Compensation Committee of the Board, or such other committee as may be appointed by the Board to administer the Plan.

   

  1.16	“Date of Termination” means the effective date of the termination of the Participant’s employment.

   

   

  1.17	“Employee” means an individual who is an employee of the Company or any of its subsidiaries.

   

  1.18	“Equity Award” means a Company equity-based award that vests solely based on the passage of time granted under any equity-based award plan of the Company, including, but not limited to, the Company’s 2021 Incentive Award Plan, as may be amended from time to time.

   

  1.19	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

   

  1.20	“Excise Tax” shall have the meaning set forth in Section 7.1 hereof.

   

  1.21	“Good Reason” means the occurrence of any one or more of the following events without the Participant’s prior written consent, unless the Company fully corrects the circumstances constituting Good Reason (provided such circumstances are capable of correction) as provided below:

   

  (a)	a material diminution in the Participant’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities, excluding for this purpose any isolated, insubstantial or inadvertent actions not taken in bad faith and which are remedied by the Company promptly after receipt of notice thereof given by the Participant;

  (b)	a material change in the geographic location at which the Participant performs his or her principal duties for the Company to a new location that is more than 30 miles from the location at which the Participant performs his or her principal duties for the Company as of the date on which the Participant first becomes a Participant in the Plan; or

  (c)	any material reduction in the Participant’s Base Compensation.

  Notwithstanding the foregoing, the Participant will not be deemed to have resigned for Good Reason unless (1) the Participant provides written notice to the Company setting forth in reasonable detail the facts and circumstances claimed by 

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  the Participant to constitute Good Reason within 90 days after the date of the occurrence of any event that the Participant knows or should reasonably have known to constitute Good Reason; (2) the Company fails to cure such acts or omissions within 30 days following its receipt of such notice; and (3) the effective date of the Participant’s termination for Good Reason occurs no later than 60 days after the expiration of the Company’s cure period.  With respect to the foregoing definition, the term “Company” will be interpreted to include any subsidiary, parent, affiliate, or any successor thereto, if appropriate.

   

  1.22	“Incentive Compensation Severance” means the portion of a Participant’s Cash Severance that is based on the Participant’s Target Incentive Compensation, determined in accordance with Exhibit B attached hereto.  

   

  1.23	“Independent Advisors” shall have the meaning set forth in Section 7.2 hereof.

   

  1.24	“Participant” means each Employee who is selected by the Administrator to participate in the Plan and is provided with (and, if applicable, countersigns) a Participation Notice in accordance with the Plan, other than any Employee who, at the time of his or her termination of employment, is covered by a plan or agreement with the Company or a subsidiary that provides for cash severance or termination benefits that explicitly supersedes and/or replaces the payments and benefits provided under this Plan.  For the avoidance of doubt, retention bonus payments, change in control bonus payments and other similar cash payments shall not constitute “cash severance” for purposes of this definition.  

   

  1.25	“Participation Notice” shall have the meaning set forth in Section 2 hereof.

   

  1.26	“Qualifying Termination” means a termination of the Participant’s employment by (i) the Company without Cause or (ii) the Participant for Good Reason.  Notwithstanding anything contained herein, in no event shall a Participant be deemed to have experienced a Qualifying Termination (a) if such Participant is offered and/or accepts a comparable employment position with the Company or any subsidiary, or (b) if in connection with a Change in Control or any other corporate transaction or sale of assets involving the Company or any subsidiary, such Participant is offered and accepts a comparable employment position with the successor or purchaser entity (or an affiliate thereof), as applicable.  A Qualifying Termination shall not include a termination due to the Participant’s death or disability.

   

  1.27	“Release” shall have the meaning set forth in Section 4.4 hereof.

   

  1.28	“Severance Benefits” means the severance payments and benefits to which a Participant may become entitled pursuant to Section 4 of the Plan and Exhibit A or Exhibit B, as applicable and each as attached hereto. 

   

  1.29	“Target Incentive Compensation” means the Participant’s target cash performance bonus, if any, for the year in which the Date of Termination occurs. 

  1.30	“Total Payments” shall have the meaning set forth in Section 7.1 hereof.

  2.	Effectiveness of the Plan; Notification.  The Plan, as amended and restated, became effective on February 28, 2022. The Administrator shall, pursuant to a written notice to any Employee (a “Participation Notice”), notify each Participant that such Participant has been selected to participate in the Plan.  

   

  3.	Administration.  Subject to Section 13.3 hereof, the Plan shall be interpreted, administered and operated by the Committee (the “Administrator”), which shall have complete authority, subject to the express provisions of the Plan, to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to the Plan, and to make all other determinations necessary or advisable for the administration of the Plan.  The Administrator may delegate any of its duties hereunder to a subcommittee, or to such person or persons from time to time as it may designate other than to any Participant in the Plan, and the Administrator may delegate (other than to any Participant in the Plan) its duty to provide a Participation Notice to a Participant in the Plan.  All decisions, interpretations and other actions of the Administrator (including with respect to whether a Qualifying Termination has occurred) shall be final, conclusive and binding on all parties who have an interest in the Plan.

   

  4.	Severance Benefits. 

   

  3

  

  4.1	Eligibility.  Each Employee who qualifies as a Participant and who experiences a Qualifying Termination is eligible to receive Severance Benefits under the Plan.

   

  4.2	Qualifying Termination Payment.  In the event that a Participant experiences a Qualifying Termination (other than a CIC Termination), then, subject to the Participant’s execution and, to the extent applicable, non-revocation of a Release in accordance with Section 4.4 hereof, and subject to any additional requirements specified in the Plan, the Company shall pay or provide to the Participant the following Severance Benefits:

   

  (a)	Cash Salary Severance Payment.  The Company shall pay to the Participant an amount equal to the Cash Salary Severance determined in accordance with Exhibit A attached hereto.  Subject to Section 6.2 hereof, the Cash Salary Severance (as set forth on Exhibit A) shall be paid in substantially equal installments in accordance with the Company’s normal payroll practice over the Cash Salary Severance Period, but commencing on the first payroll date following the 60th day following the Date of Termination (and amounts otherwise payable prior to such first payroll date shall be paid on such date without interest thereon). 

    

  (b)	COBRA.  Subject to the requirements of the Code, if the Participant properly elects healthcare continuation coverage under the Company’s group health plans pursuant to COBRA, to the extent that the Participant is eligible to do so, then the Company shall subsidize the COBRA premiums for the Participant and the Participant’s covered dependents until the earlier of the end of the month during which the Participant’s COBRA Period, determined in accordance with Exhibit A attached hereto, ends or the date the Participant becomes eligible for healthcare coverage under a subsequent employer’s health plan (the “COBRA Premium Payment”). Such subsidy shall be made by direct payment or, at the Company’s election, by reimbursement to the Participant, and shall equal an amount determined based on the same benefit levels and cost to the Participant as would have applied based on the Participant’s elections in effect on the Date of Termination if the Participant’s employment had not been terminated.  Notwithstanding the foregoing, (i) if any plan pursuant to which such benefits are provided is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application of Code Section 409A under Treasury Regulation Section 1.409A-1(a)(5), or (ii) the Company is otherwise unable to continue to cover the Participant under its group health plans without penalty under applicable law (including without limitation, Section 2716 of the Public Health Service Act), then, in either case, an amount equal to each remaining Company reimbursement shall thereafter be paid to the Participant in substantially equal monthly installments over the COBRA Period (or the remaining portion thereof).
 

  4.3	CIC Termination Payment.  In the event that a Participant experiences a CIC Termination, then, subject to the Participant’s execution and, to the extent applicable, non-revocation of a Release in accordance with Section 4.4 hereof, and subject to any additional requirements specified in the Plan:

   

  (a)	Cash Severance Payment.  The Company shall pay or provide to the Participant, as applicable, an amount equal to the Cash Severance determined in accordance with Exhibit B attached hereto and paid in accordance with following provisions:

     

  (i)Cash Salary Severance Payment.  Subject to Section 6.2 hereof, the Cash Salary Severance (as set forth on Exhibit B) shall be paid in substantially equal installments in accordance with the Company’s normal payroll practice over the Cash Salary Severance Period, but commencing on the first payroll date following the 60th day following the Date of Termination (and amounts otherwise payable prior to such first payroll date shall be paid on such date without interest thereon); provided, that in the event the CIC Termination occurs prior to a Change in Control, then any incremental Cash Salary Severance that would have been payable between the Date of Termination and the Change in Control date (i.e., incremental Cash Salary Severance above the Cash Salary Severance payable upon a Qualifying Termination that is not a CIC Termination) instead shall be paid in a single lump sum on the date of the Change in Control. 

   

  (ii)Incentive Compensation Severance Payment.  The Incentive Compensation Severance (as set forth on Exhibit B) shall be paid in a single lump sum on the first payroll date following the 60th day following the Date of Termination; provided that in the event the CIC Termination occurs prior to a Change in Control, then the Incentive Compensation Severance shall be paid in a single lump sum on the date of the Change in Control.

   

  4

  

  (b)	COBRA.  The Company shall provide to the Participant the COBRA Premium Payment set forth in Section 4.2(b) hereof; provided, however, that the COBRA Period shall be determined in accordance with Exhibit B attached hereto (instead of in accordance with Exhibit A).

   

  (c)	Equity Acceleration.  Each outstanding Equity Award held by the Participant as of his or her Date of Termination shall vest and, as applicable, become exercisable as specified in Exhibit B, upon the later of the effectiveness of the Release and as of immediately prior to the consummation of a Change in Control.

   

  4.4	Release.  Notwithstanding anything herein to the contrary, no Participant shall be eligible or entitled to receive or retain any Severance Benefits under the Plan unless he or she executes a general release of claims substantially in the form attached hereto as Exhibit C (the “Release”) within 21 days (or 45 days if necessary to comply with applicable law) after the Date of Termination and, if he or she is entitled to a seven day post-signing revocation period under applicable law, does not revoke such Release during such seven day period.

   

  5.	Limitations.  Notwithstanding any provision of the Plan to the contrary, if a Participant’s status as an Employee is terminated for any reason other than due to a Qualifying Termination, the Participant shall not be entitled to receive any Severance Benefits under the Plan, and the Company shall not have any obligation to such Participant under the Plan.

   

  6.	Section 409A.

   

  6.1	General.  To the extent applicable, the Plan shall be interpreted and applied consistent and in accordance with Code Section 409A and Department of Treasury regulations and other interpretive guidance issued thereunder.  Notwithstanding any provision of the Plan to the contrary, to the extent that the Administrator determines that any payments or benefits under the Plan may not be either compliant with or exempt from Code Section 409A and related Department of Treasury guidance, the Administrator may in its sole discretion adopt such amendments to the Plan or take such other actions that the Administrator determines are necessary or appropriate to (a) exempt the compensation and benefits payable under the Plan from Code Section 409A and/or preserve the intended tax treatment of such compensation and benefits, or (b) comply with the requirements of Code Section 409A and related Department of Treasury guidance; provided, however, that this Section 6.1 shall not create any obligation on the part of the Administrator to adopt any such amendment or take any other action, nor shall the Company have any liability for failing to do so.

   

  6.2	Potential Six-Month Delay.  Notwithstanding anything to the contrary in the Plan, no amounts shall be paid to any Participant under the Plan during the six-month period following such Participant’s “separation from service” (within the meaning of Code Section 409A(a)(2)(A)(i) and Treasury Regulation Section 1.409A-1(h)) to the extent that the Administrator determines that paying such amounts at the time or times indicated in the Plan would result in a prohibited distribution under Code Section 409A(a)(2)(B)(i).  If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day following the end of such six-month period (or such earlier date upon which such amount can be paid under Code Section 409A without resulting in a prohibited distribution, including as a result of the Participant’s death), the Participant shall receive payment of a lump-sum amount equal to the cumulative amount that would have otherwise been payable to the Participant during such six-month period without interest thereon.

   

  6.3	Separation from Service.  A termination of employment shall not be deemed to have occurred for purposes of any provision of the Plan providing for the payment of any amounts or benefits that constitute “nonqualified deferred compensation” under Code Section 409A upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of the Plan, references to a “termination,” “termination of employment” or like terms shall mean “separation from service”.

   

  6.4	Reimbursements.  To the extent that any payments or reimbursements provided to a Participant under the Plan are deemed to constitute compensation to the Participant to which Treasury Regulation Section 1.409A-3(i)(1)(iv) would apply, such amounts shall be paid or reimbursed reasonably promptly, but not later than December 31st of the year following the year in which the expense was incurred.  The amount of any such payments eligible for reimbursement in one year shall not affect the payments or expenses that are eligible for payment or reimbursement in any other taxable year, and the Participant’s right to such payments or reimbursement of any such expenses shall not be subject to liquidation or exchange for any other benefit.

   

  5

  

  6.5	Installments.  For purposes of applying the provisions of Code Section 409A to the Plan, each separately identified amount to which a Participant is entitled under the Plan shall be treated as a separate payment.  In addition, to the extent permissible under Code Section 409A, the right to receive any installment payments under the Plan 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 Treasury Regulation Section 1.409A-2(b)(2)(iii).  Whenever a payment under the Plan specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company.

   

  7.	Limitation on Payments. 

   

  7.1	Best Pay Cap.  Notwithstanding any other provision of the Plan, in the event that any payment or benefit received or to be received by a Participant (including any payment or benefit received in connection with a termination of the Participant’s employment, whether pursuant to the terms of the Plan or any other plan, arrangement or agreement) (all such payments and benefits, including the Severance Benefits, being hereinafter referred to as the “Total Payments”) would be subject (in whole or part), to the excise tax imposed under Code Section 4999 (the “Excise Tax”), then, after taking into account any reduction in the Total Payments provided by reason of Code Section 280G in such other plan, arrangement or agreement, the Cash Severance benefits under the Plan shall first be reduced, and any noncash severance payments shall thereafter be reduced, to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax but only if (a) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments) is greater than or equal to (b) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which the Participant would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments).

   

  7.2	Certain Exclusions.  For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (a) no portion of the Total Payments, the receipt or retention of which the Participant has waived at such time and in such manner so as not to constitute a “payment” within the meaning of Code Section 280G(b), will be taken into account; (b) no portion of the Total Payments will be taken into account which, in the written opinion of an independent, nationally recognized accounting firm (the “Independent Advisors”) selected by the Company, does not constitute a “parachute payment” within the meaning of Code Section 280G(b)(2) (including by reason of Code Section 280G(b)(4)(A)) and, in calculating the Excise Tax, no portion of such Total Payments will be taken into account which, in the opinion of Independent Advisors, constitutes reasonable compensation for services actually rendered, within the meaning of Code Section 280G(b)(4)(B), in excess of the “base amount” (as defined in Code Section 280G(b)(3)) allocable to such reasonable compensation; and (c) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Independent Advisors in accordance with the principles of Code Sections 280G(d)(3) and (4).

   

  8.	No Mitigation.  No Participant shall be required to seek other employment or attempt in any way to reduce or mitigate any Severance Benefits payable under the Plan and the amount of any such Severance Benefits shall not be reduced by any other compensation paid or provided to any Participant following such Participant’s termination of employment.

   

  9.	Successors.	

   

  9.1	Company Successors.  The Plan shall inure to the benefit of and shall be binding upon the Company and its successors and assigns.  Any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume and agree to perform the obligations of the Company under the Plan.

   

  9.2	Participant Successors.  The Plan shall inure to the benefit of and be enforceable by each Participant’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, legatees or other beneficiaries.  If a Participant dies while any amount remains payable to such Participant hereunder, all such amounts shall be paid in accordance with the terms of the Plan to the executors, personal representatives or administrators of such Participant’s estate.

  6

  

   

  10.	Notices.  All communications relating to matters arising under the Plan shall be in writing and shall be deemed to have been duly given when hand delivered, faxed, emailed or mailed by reputable overnight carrier or United States certified mail, return receipt requested, addressed, if to a Participant, to the address or email address on file with the Company or to such other address or email address as the Participant may have furnished to the other in writing in accordance herewith and, if to the Company, to such address or email address as may be specified from time to time by the Administrator, except that notice of change of address shall be effective only upon actual receipt.

   

  11.	Claims Procedure; Arbitration.

   

  11.1	Claims.  Generally, Participants are not required to present a formal claim in order to receive benefits under the Plan.  If, however, any person (the “Claimant”) believes that benefits are being denied improperly, that the Plan is not being operated properly, that fiduciaries of the Plan have breached their duties, or that the Claimant’s legal rights are being violated with respect to the Plan, the Claimant must file a formal claim, in writing, with the Administrator.  This requirement applies to all claims that any Claimant has with respect to the Plan, including claims against fiduciaries and former fiduciaries, except to the extent the Administrator determines, in its sole discretion that it does not have the power to grant all relief reasonably being sought by the Claimant.  A formal claim must be filed within 90 days after the date the Claimant first knew or should have known of the facts on which the claim is based, unless the Administrator consents otherwise in writing.  The Administrator shall provide a Claimant, on request, with a copy of the claims procedures established under Section 11.2 hereof. 

   

  11.2	Claims Procedure.  The Administrator has adopted procedures for considering claims (which are set forth in Exhibit D attached hereto), which it may amend or modify from time to time, as it sees fit.  These procedures shall comply with all applicable legal requirements.  These procedures may provide that final and binding arbitration shall be the ultimate means of contesting a denied claim (even if the Administrator or its delegates have failed to follow the prescribed procedures with respect to the claim).  The right to receive benefits under the Plan is contingent on a Claimant using the prescribed claims and arbitration procedures to resolve any claim. 

   

  12.	Covenants.

   

  12.1	Restrictive Covenants. A Participant’s right to receive and/or retain the Severance Benefits payable under this Plan is conditioned upon and subject to the Participant’s continued compliance with any restrictive covenants (e.g., confidentiality, invention assignment, non-solicitation, non-disparagement) contained in any other written agreement between the Participant and the Company, as in effect on the date of the Participant’s Qualifying Termination.

   

  12.2	Return of Property.  A Participant’s right to receive and/or retain the Severance Benefits payable under the Plan is conditioned upon the Participant’s return to the Company of all Company documents (and all copies thereof) and other Company property (in each case, whether physical, electronic or otherwise) in the Participant’s possession or control.

   

  13.	Miscellaneous.

   

  13.1	Entire Plan; Relation to Other Agreements.  The Plan, together with any Participation Notice issued in connection with the Plan, contains the entire understanding of the parties relating to the subject matter hereof and supersedes any prior agreement, arrangement and understanding between any Participant, on the one hand, and the Company and/or any subsidiary, on the other hand, with respect to the subject matter hereof. Severance payable under the Plan is not intended to duplicate any other severance benefits payable to a Participant by the Company. By participating in the Plan and accepting the Severance Benefits hereunder, the Participant acknowledges and agrees that any prior agreement, arrangement and understanding between any Participant, on the one hand, and the Company and/or any subsidiary, on the other hand, with respect to the subject matter hereof is hereby revoked and ineffective with respect to the Participant (including with respect to any severance arrangement contained in an effective employment agreement, employment letter agreement by and between the Participant and the Company (and/or any subsidiary)).

   

  13.2	No Right to Continued Service.  Nothing contained in the Plan shall (a) confer upon any Participant any right to continue as an employee of the Company or any subsidiary, (b) constitute any contract of employment or agreement 

  7

  

  to continue employment for any particular period, or (c) interfere in any way with the right of the Company to terminate a service relationship with any Participant, with or without Cause.

   

  13.3	Termination and Amendment of Plan.  The Plan may not be amended, modified, suspended or terminated except with the express written consent of each Participant who would be adversely affected by any such amendment, modification, suspension or termination.

   

  13.4	Survival.  Section 7 (Limitation on Payments), Section 11 (Claims Procedure; Arbitration) and Section 12 (Covenants) hereof shall survive the termination or expiration of the Plan and shall continue in effect.

   

  13.5	Severance Benefit Obligations.  Notwithstanding anything contained herein, Severance Benefits paid or provided under the Plan may be paid or provided by the Company or any subsidiary employer, as applicable.

   

  13.6	Withholding.  The Company shall have the authority and the right to deduct and withhold an amount sufficient to satisfy federal, state, local and foreign taxes required by law to be withheld with respect to any Severance Benefits payable under the Plan. 

   

  13.7	Benefits Not Assignable.  Except as otherwise provided herein or by law, no right or interest of any Participant under the Plan shall be assignable or transferable, in whole or in part, either directly or by operation of law or otherwise, including without limitation by execution, levy, garnishment, attachment, pledge or in any manner; no attempted assignment or transfer thereof shall be effective; and no right or interest of any Participant under the Plan shall be liable for, or subject to, any obligation or liability of such Participant.  When a payment is due under the Plan to a Participant who is unable to care for his or her affairs, payment may be made directly to his or her legal guardian or personal representative.

   

  13.8	Applicable Law.  The Plan is intended to be an unfunded “top hat” pension plan within the meaning of U.S. Department of Labor Regulation Section 2520.104-23 and shall be interpreted, administered, and enforced as such in accordance with ERISA.  To the extent that state law is applicable, the statutes and common law of the State of Delaware, excluding any that mandate the use of another jurisdiction’s laws, will apply. 

   

  13.9	Validity.  The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision of the Plan, which shall remain in full force and effect. 

   

  13.10	Captions.  The captions contained in the Plan are for convenience only and shall have no bearing on the meaning, construction or interpretation of the Plan’s provisions.

   

  13.11	Expenses.  The expenses of administering the Plan shall be borne by the Company or its successor, as applicable.

   

  13.12	Unfunded Plan.  The Plan shall be maintained in a manner to be considered “unfunded” for purposes of ERISA.  The Company shall be required to make payments only as benefits become due and payable.  No person shall have any right, other than the right of an unsecured general creditor against the Company, with respect to the benefits payable hereunder, or which may be payable hereunder, to any Participant, surviving spouse or beneficiary hereunder.  If the Company, acting in its sole discretion, establishes a reserve or other fund associated with the Plan, no person shall have any right to or interest in any specific amount or asset of such reserve or fund by reason of amounts which may be payable to such person under the Plan, nor shall such person have any right to receive any payment under the Plan except as and to the extent expressly provided in the Plan.  The assets in any such reserve or fund shall be part of the general assets of the Company, subject to the control of the Company.

   

  * * * * *

   

  8

  

  	I hereby certify that the foregoing Plan was duly adopted by the Board of Directors of Winc, Inc. on February 28, 2022.

   

   

  Signature: /s/ Matthew Thelen__________________

   

  Name: Matthew Thelen

   

  Title:   General Counsel

   

   

  S-1

   

   

   

   

   

   

   

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  Exhibit A

  Calculation of QUALIFYING TERMINATION Severance Amounts

  				
	Tier
	Cash Salary Severance
	Cash Salary Severance Period
	COBRA Period (1)

	1
	100% Base Compensation
	6 months
	6 months

   

  (1)   COBRA Period begins on the first day of the calendar month following the calendar month in which the Date of Termination occurs.

  Exh. B-1

   

  |US-DOCS\125010999.8||

  

   

  Exhibit B

  Calculation of CIC TERMINATION Severance Amounts

  						
	Tier
	Cash Severance
	Cash Salary Severance Period
	Equity Acceleration
	COBRA Period (1)

	Cash Salary Severance
	Incentive Compensation Severance

	1
	100% Base Compensation 
	100% Target Incentive Compensation
	12 Months
	Full vesting acceleration (and, as applicable, exercisability) of Equity Awards
	12 months 

   

   

  (1)   COBRA Period begins on the first day of the calendar month following the calendar month in which the Date of Termination occurs.

  Exh. B-1

   

  |US-DOCS\125010999.8||

  

   

   

  EXHIBIT C

   

  FORM OF GENERAL RELEASE

   

  1.	Release For valuable consideration, the receipt and adequacy of which are hereby acknowledged, the undersigned does hereby release and forever discharge the “Releasees” hereunder, consisting of Winc, Inc. a Delaware corporation (the “Company”), and the Company’s partners, subsidiaries, associates, affiliates, successors, heirs, assigns, agents, directors, officers, employees, representatives, lawyers, insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, losses, costs, attorneys’ fees or expenses, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which the undersigned now has or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof.  The Claims released herein include, without limiting the generality of the foregoing, any Claims in any way arising out of, based upon, or related to the employment or termination of employment of the undersigned by the Releasees, or any of them; any alleged breach of any express or implied contract of employment; any alleged torts or other alleged legal restrictions on Releasees’ right to terminate the employment of the undersigned; and any alleged violation of any federal, state or local statute or ordinance including, without limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination In Employment Act, the Americans With Disabilities Act.  

  2.	Claims Not Released.  Notwithstanding the foregoing, this general release (the “Release”) shall not operate to release any rights or claims of the undersigned (i) to the payments or benefits provided under the Winc, Inc. Executive Severance Plan that are conditioned on the undersigned’s execution of this Release, (ii) to accrued or vested benefits the undersigned may have, if any, as of the date hereof under any applicable plan, policy, practice, program, contract or agreement with the Company, (iii) to any Claims, including claims for indemnification and/or advancement of expenses arising under any indemnification agreement between the undersigned and the Company or under the bylaws, certificate of incorporation or other similar governing document of the Company, (iv) to any Claims which cannot be waived by an employee under applicable law, or (v) with respect to the undersigned’s right to communicate directly with, cooperate with, or provide information to, any federal, state or local government regulator.

  3.	Unknown Claims.

  THE UNDERSIGNED ACKNOWLEDGES THAT THE UNDERSIGNED HAS BEEN ADVISED BY LEGAL COUNSEL AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

  “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”

  THE UNDERSIGNED, BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY RIGHTS THE UNDERSIGNED MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

  Exh. C-1

   

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  4.	Exceptions.  Notwithstanding anything in this Release to the contrary, nothing contained in this Release shall prohibit the undersigned from (i) filing a charge with, reporting possible violations of federal law or regulation to, participating in any investigation by, or cooperating with any governmental agency or entity or making other disclosures that are protected under the whistleblower provisions of applicable law or regulation and/or (ii) communicating directly with, cooperating with, or providing information (including trade secrets) in confidence to, any federal, state or local government regulator (including, but not limited to, the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, or the U.S. Department of Justice) for the purpose of reporting or investigating a suspected violation of law, or from providing such information to the undersigned’s attorney or in a sealed complaint or other document filed in a lawsuit or other governmental proceeding.  Pursuant to 18 USC Section 1833(b), the undersigned will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made: (x) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (y) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

  5.	Representations.  The undersigned represents and warrants that there has been no assignment or other transfer of any interest in any Claim which the undersigned may have against Releasees, or any of them, and the undersigned agrees to indemnify and hold Releasees, and each of them, harmless from any liability, Claims, demands, damages, costs, expenses and attorneys’ fees incurred by Releasees, or any of them, as the result of any such assignment or transfer or any rights or Claims under any such assignment or transfer.  It is the intention of the parties that this indemnity does not require payment as a condition precedent to recovery by the Releasees against the undersigned under this indemnity.

  6.	No Action.  The undersigned agrees that if the undersigned hereafter commences any suit arising out of, based upon, or relating to any of the Claims released hereunder or in any manner asserts against Releasees, or any of them, any of the Claims released hereunder, then the undersigned agrees to pay to Releasees, and each of them, in addition to any other damages caused to Releasees thereby, all attorneys’ fees incurred by Releasees in defending or otherwise responding to said suit or Claim.

  7.	No Admission.  The undersigned further understands and agrees that neither the payment of any sum of money nor the execution of this Release shall constitute or be construed as an admission of any liability whatsoever by the Releasees, or any of them, who have consistently taken the position that they have no liability whatsoever to the undersigned.

  8.	[OWBPA.  The undersigned agrees and acknowledges that this Release constitutes a knowing and voluntary waiver and release of all Claims the undersigned has or may have against the Company and/or any of the Releasees as set forth herein, including, but not limited to, all Claims arising under the Older Worker’s Benefit Protection Act and the Age Discrimination in Employment Act. In accordance with the Older Worker’s Benefit Protection Act, the undersigned is hereby advised as follows:

  (i)the undersigned has read the terms of this Release, and understands its terms and effects, including the fact that the undersigned agreed to release and forever discharge the Company and each of the Releasees, from any Claims released in this Release;

   

  (ii)the undersigned understands that, by entering into this Release, the undersigned does not waive any Claims that may arise after the date of the undersigned’s execution of this Release, including without limitation any rights or claims that the undersigned may have to secure enforcement of the terms and conditions of this Release;

   

  Exh. C-2

   

  |

  

   

  (iii)the undersigned has signed this Release voluntarily and knowingly in exchange for the consideration described in this Release, which the undersigned acknowledges is adequate and satisfactory to the undersigned and which the undersigned acknowledges is in addition to any other benefits to which the undersigned is otherwise entitled;

   

  (iv)the Company advises the undersigned to consult with an attorney prior to executing this Release; 

   

  (v)the undersigned has been given at least [21] days in which to review and consider this Release.  To the extent that the undersigned chooses to sign this Release prior to the expiration of such period, the undersigned acknowledges that the undersigned has done so voluntarily, had sufficient time to consider the Release, to consult with counsel and that the undersigned does not desire additional time and hereby waives the remainder of the [21]-day period; and

   

  (vi)the undersigned may revoke this Release within seven days from the date the undersigned signs this Release and this Release will become effective upon the expiration of that revocation period.  If the undersigned revokes this Release during such seven-day period, this Release will be null and void and of no force or effect on either the Company or the undersigned and the undersigned will not be entitled to any of the payments or benefits which are expressly conditioned upon the execution and non-revocation of this Release.  Any revocation must be in writing and sent to [name], via electronic mail at [email address], on or before [11:59 p.m. Pacific time] on the seventh day after this Release is executed by the undersigned.]1

   

  9.	Governing Law. This Release is deemed made and entered into in the State of California, and in all respects shall be interpreted, enforced and governed under the internal laws of the State of California, to the extent not preempted by federal law.

  IN WITNESS WHEREOF, the undersigned has executed this Release this ____ day of ___________, ____.

   

  								 

   

   

   

   

  1 Note to Draft: Applicable to employees 40 years of age or older.  In addition, for group terminations, the consideration should be 45 (and not 21) days.

  Exh. C-3

   

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  EXHIBIT D

  Detailed Claims Procedures

   

  Section 1.1.	Claim Procedure.  Claims for benefits under the Plan shall be administered in accordance with Section 503 of ERISA and the Department of Labor Regulations thereunder.  The Administrator shall have the right to delegate its duties under this Exhibit and all references to the Administrator shall be a reference to any such delegate, as well.  The Administrator shall make all determinations as to the rights of any Participant, beneficiary, alternate payee or other person who makes a claim for benefits under the Plan (each, a “Claimant”).  A Claimant may authorize a representative to act on his or her behalf with respect to any claim under the Plan.  A Claimant who asserts a right to any benefit under the Plan he has not received, in whole or in part, must file a written claim with the Administrator.  All written claims shall be submitted to the head of Human Resources of Winc, Inc.

   

  (a)	Regular Claims Procedure.	The claims procedure in this subsection (a) shall apply to all claims for Plan benefits.

   

  (1)	Timing of Denial.  If the Administrator denies a claim in whole or in part (an “adverse benefit determination”), then the Administrator will provide notice of the decision to the Claimant within a reasonable period of time, not to exceed 90 days after the Administrator receives the claim, unless the Administrator determines that an extension of time for processing is required.  In the event that the Administrator determines that such an extension is required, written notice of the extension will be furnished to the Claimant before the end of the initial 90 day review period.  The extension will not exceed a period of 90 days from the end of the initial 90 day period, and the extension notice will indicate the special circumstances requiring such extension of time and the date by which the Administrator expects to render the benefit decision. 

   

  (2)	Denial Notice.  The Administrator shall provide every Claimant who is denied a claim for benefits with a written or electronic notice of its decision.  The notice will set forth, in a manner to be understood by the Claimant:

   

  (i)the specific reason or reasons for the adverse benefit determination;

   

  (ii)reference to the specific Plan provisions on which the determination is based;

   

  (iii)a description of any additional material or information necessary for the Claimant to perfect the claim and an explanation as to why such information is necessary; and

   

  (iv)an explanation of the Plan’s appeal procedure and the time limits applicable to such procedures, including a statement of the Claimant’s right to bring an action under Section 502(a) of ERISA after receiving a final adverse benefit determination upon appeal.

   

  (3) Appeal of Denial.  The Claimant may appeal an initial adverse benefit determination by submitting a written appeal to the Administrator within 60 days of receiving notice of the denial of the claim.  The Claimant:

   

  (i)may submit written comments, documents, records and other information relating to the claim for benefits; 

  Exh. D-1

   

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  (ii)will be provided, upon request and without charge, reasonable access to and copies of all documents, records and other information relevant to the Claimant’s claim for benefits; and

   

  (iii)will receive a review that takes into account all comments, documents, records and other information submitted by the Claimant relating to the appeal, without regard to whether such information was submitted or considered in the initial benefit determination.

   

  (4)	Decision on Appeal.  The Administrator will conduct a full and fair review of the claim and the initial adverse benefit determination.  The Administrator holds regularly scheduled meetings at least quarterly.  The Administrator shall make a benefit determination no later than the date of the regularly scheduled meeting that immediately follows the Plan’s receipt of an appeal request, unless the appeal request is filed within 30 days preceding the date of such meeting.  In such case, a benefit determination may be made by no later than the date of the second regularly scheduled meeting following the Plan’s receipt of the appeal request.  If special circumstances require a further extension of time for processing, a benefit determination shall be rendered no later than the third regularly scheduled meeting of the Administrator following the Plan’s receipt of the appeal request.  If such an extension of time for review is required, the Administrator shall provide the Claimant with written notice of the extension, describing the special circumstances and the date as of which the benefit determination will be made, prior to the commencement of the extension.  The Administrator generally cannot extend the review period any further unless the Claimant voluntarily agrees to a longer extension.  The Administrator shall notify the Claimant of the benefit determination as soon as possible but not later than five days after it has been made.

   

  (5)	Notice of Determination on Appeal.  The Administrator shall provide the Claimant with written or electronic notification of its benefit determination on review.  In the case of an adverse benefit determination, the notice shall set forth, in a manner intended to be understood by the Claimant:

   

  (i)the specific reason or reasons for the adverse benefit determination;

   

  (ii)reference to the specific Plan provisions on which the adverse benefit determination is based; 

   

  (iii)a statement that the Claimant is entitled to receive, upon request and without charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim for benefits;

   

  (iv)a statement describing any voluntary appeal procedures offered by the Plan and the Claimant’s right to obtain the information about such procedures; and

   

  (v)a statement of the Claimant’s right to bring an action under Section 502(a) of ERISA.

   

  (b)	 Exhaustion; Judicial Proceedings.  No action at law or in equity shall be brought to recover benefits under the Plan until the claim and appeal rights described in the Plan have been exercised and the Plan benefits requested in such appeal have been denied in whole or in part.  If any judicial proceeding is undertaken to appeal the denial of a claim or bring any other action under ERISA other than a breach of fiduciary claim, the evidence presented may be strictly limited to the evidence timely presented to the Administrator.  Any such judicial proceeding must be filed by the earlier of: (a) one year after the 

  Exh. D-2

   

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  Administrator’s final decision regarding the claim appeal or (b) one year after the Participant or other Claimant commenced payment of the Plan benefits at issue in the judicial proceeding.  The jurisdiction and venue for any judicial proceedings arising under or relating to the Plan will be exclusively in the courts in California, including the federal courts located there should federal jurisdiction exist.  This paragraph (c) shall not be construed to prohibit the enforcement of any arbitration agreements.

   

  (c)	Administrator’s Decision is Binding.  Benefits under the Plan shall be paid only if the Administrator decides in its sole discretion that a Claimant is entitled to them.  In determining claims for benefits, the Administrator has the authority to interpret the Plan, to resolve ambiguities, to make factual determinations, and to resolve questions relating to eligibility for and amount of benefits.  Subject to applicable law, any decision made in accordance with the above claims procedures is final and binding on all parties and shall be given the maximum possible deference allowed by law.  A misstatement or other mistake of fact shall be corrected when it becomes known and the Administrator shall make such adjustment on account thereof as it considers equitable and practicable.

   

   

  Exh. D-3

   

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