Document:

Exhibit 10.1

 

3M COMPANY

2016 LONG-TERM INCENTIVE PLAN

 

Amended and Restated Effective May 11,
2021

 

The Plan’s purpose is to enhance the Company’s
ability to attract, retain and motivate persons who make (or are expected to make) important contributions to the Company by providing
these individuals with equity ownership opportunities. This Plan constitutes an amendment and restatement of the 3M Company 2016 Long-Term
Incentive Plan originally adopted by the Board on February 2, 2016, and by the stockholders on May 10, 2016 (the “Original
Plan”). This amended and restated Plan shall be effective on the Restatement Effective Date.

 

ARTICLE I.

Definitions

 

As used in the Plan, the following words and phrases
will have the meanings specified below, unless the context clearly indicates otherwise:

 

1.1            “Administrator”
means the Board or a Committee to the extent that the Board’s powers or authority under the Plan have been delegated to such Committee.
With reference to the Board’s or a Committee’s powers or authority under the Plan that have been delegated to one or more
officers pursuant to Section 3.2, the term “Administrator” shall refer to such person(s) unless and until such delegation
has been revoked.

 

1.2            “Applicable
Law” means any applicable law, including without limitation: (a) provisions of the Code, the Securities Act, the Exchange
Act and any rules or regulations thereunder; (b) corporate, securities, tax or other laws, statutes, rules, requirements or
regulations, whether U.S. or non-U.S. federal, state or local; and (c) rules of any securities exchange or automated quotation
system on which the Shares are listed, quoted or traded.

 

1.3            “Award”
means an Option, Stock Appreciation Right, Restricted Stock award, Restricted Stock Unit award, Performance Bonus Award, Performance Share
award or Other Stock or Cash Based Award granted to a Participant under the Plan.

 

1.4            “Award
Agreement” means a written agreement evidencing an Award, which may be electronic, that contains such terms and conditions
as the Administrator determines, consistent with and subject to the terms and conditions of the Plan.

 

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

 

1.6            “Change
in Control” means the occurrence of a “change in control event,” as defined in Treasury Regulation Section 1.409A-3(i)(5) or
such other regulation or guidance issued under Section 409A. The Administrator shall have full and final authority, which shall be
exercised in its sole discretion, to determine conclusively whether a Change in Control has occurred pursuant to the above definition,
the date of the occurrence of such Change in Control and any incidental matters relating thereto; provided that any exercise of authority
in conjunction with a determination of whether a Change in Control is a “change in control event” as defined in Treasury Regulation
Section 1.409A-3(i)(5) shall be consistent with such regulation. Further and for the avoidance of doubt, a transaction will
not constitute a Change in Control if its sole purpose is to (i) change the jurisdiction of the Company’s incorporation, or
(ii) create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s
securities immediately before such transaction.

 

     

     

    

1.7            “Code”
means the U.S. Internal Revenue Code of 1986, as amended, and all regulations, guidance, compliance programs and other interpretative
authority issued thereunder.

 

1.8            “Committee”
means one or more committees or subcommittees of the Board, which may include one or more Company directors or executive officers, to
the extent Applicable Laws permit. To the extent required to comply with the provisions of Rule 16b-3, it is intended that each member
of the Committee will be, at the time the Committee takes any action with respect to an Award that is subject to Rule 16b-3, a “non-employee
director” within the meaning of Rule 16b-3; however, a Committee member’s failure to qualify as a “non-employee
director” within the meaning of Rule 16b-3 will not invalidate any Award granted by the Committee that is otherwise validly
granted under the Plan.

 

1.9            “Common
Stock” means the common stock of the Company.

 

1.10            “Company”
means 3M Company, a Delaware corporation, or any successor.

 

1.11            “Designated
Beneficiary” means the beneficiary or beneficiaries the Participant designates, in a manner the Company permits and determines,
to receive amounts due or exercise the Participant’s rights if the Participant dies. Without a Participant’s effective designation,
 “Designated Beneficiary” will mean the Participant’s estate or legal heirs.

 

1.12            “Director”
means a Board member.

 

1.13            “Disability”
means a permanent and total disability under Section 22(e)(3) of the Code.

 

1.14            “Dividend
Equivalents” means a right granted to a Participant to receive the equivalent value (in cash or Shares) of dividends paid
on a specified number of Shares. Such Dividend Equivalents shall be converted to cash or additional Shares, or a combination of cash and
Shares, by such formula and at such time and subject to such limitations as may be determined by the Administrator.

 

1.15            “Employee”
means any employee of the Company or any of its Subsidiaries.

 

1.16            “Equity
Restructuring” means a nonreciprocal transaction between the Company and its stockholders, such as a stock dividend, stock
split (including a reverse stock split), spin-off or recapitalization through a large, nonrecurring cash dividend, that affects the number
or kind of Shares (or other Company securities) or the share price of Common Stock (or other Company securities) and causes a change in
the per share value of the Common Stock underlying outstanding Awards.

 

1.17            “Exchange
Act” means the U.S. Securities Exchange Act of 1934, as amended, and all regulations, guidance and other interpretative
authority issued thereunder.

 

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1.18            “Fair
Market Value” means, as of any date, the value of a Share determined as follows: (i) if the Common Stock is listed
on any established stock exchange, the value of a Share will be the closing sales price for a Share as quoted on such exchange for such
date, or if no sale occurred on such date, the last day preceding such date during which a sale occurred, as reported in The Wall Street
Journal or another source the Company deems reliable; (ii) if the Common Stock is not listed on an established stock exchange
but is quoted on a national market or other quotation system, the value of a Share will be the closing sales price for a Share on such
date, or if no sales occurred on such date, then on the last date preceding such date during which a sale occurred, as reported in The
Wall Street Journal or another source the Administrator deems reliable; or (iii) if the Common Stock is not listed on any established
stock exchange or quoted on a national market or other quotation system, the value of a Share will be established by the Administrator
in its sole discretion.

 

1.19            “Full
Value Award” shall mean any Award that is settled in Shares other than: (a) an Option, (b) a Stock Appreciation
Right or (c) any other Award for which the Participant pays the intrinsic value existing as of the date of grant (whether directly
or by forgoing a right to receive a payment from the Company or any Subsidiary).

 

1.20            “Greater
Than 10% Stockholder” means an individual then owning (within the meaning of Section 424(d) of the Code) more
than 10% of the total combined voting power of all classes of stock of the Company or any parent corporation or subsidiary corporation
of the Company, as determined in accordance with in Section 424(e) and (f) of the Code, respectively.

 

1.21            “Incentive
Stock Option” means an Option that meets the requirements to qualify as an “incentive stock option” as defined
in Section 422 of the Code.

 

1.22            “Misconduct”
will have the meaning assigned to such term in the applicable Award Agreement or, if not defined therein, (A) the Participant’s
willful failure to substantially perform the Participant’s duties (other than a failure resulting from the Participant’s Disability);
(B) the Participant’s willful failure to carry out, or comply with any lawful and reasonable directive of the Board or the
Participant’s immediate supervisor; (C) the occurrence of any act or omission by the Participant that could reasonably be expected
to result in (or has resulted in) the Participant’s conviction, plea of no contest, plea of nolo contendere, or imposition of unadjudicated
probation for any felony or indictable offense or crime involving moral turpitude; (D) the Participant’s commission of an act
of fraud, embezzlement, misappropriation, misconduct, or breach of fiduciary duty against the Company or any of its Subsidiaries or affiliates
or any of their officers, directors, employees, customers, suppliers, insurers or agents; (E) the Participant’s material breach
of any material provision of any written agreement with the Company or any Subsidiary; or (F) any other intentional misconduct by
the Participant significantly affecting the business or affairs of the Company or any Subsidiary in an adverse manner. The Committee shall
have the authority to determine conclusively whether a Participant has committed Misconduct pursuant to the above definition, the date
of the occurrence of such Misconduct and any incidental matters relating thereto; provided, however, that the Company’s Chief Executive
Officer may establish a committee of two or more officers of the Company (at least one of whom shall be the Company’s Chief Executive
Officer or Senior Vice President, Human Resources) to make any and all such determinations with respect to any Participant who is not
then, and was not previously, subject to Section 16 of the Exchange Act with respect to the Company. The foregoing definition shall
not in any way preclude or restrict the right of the Company or any Subsidiary to discharge or dismiss any Participant or other person
in the service of the Company or any Subsidiary for any other acts or omissions, but such other acts or omissions shall not be deemed,
for purposes of the Plan, to constitute Misconduct.

 

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1.23            “Nonqualified
Stock Option” means an Option that is not an Incentive Stock Option.

 

1.24            “Option”
means a right granted under Article V to purchase a specified number of Shares at a specified price per Share during a specified
time period. An Option may be either an Incentive Stock Option or a Nonqualified Stock Option.

 

1.25            “Other
Stock or Cash Based Awards” means cash awards, awards of Shares, and other awards valued wholly or partially by referring
to, or are otherwise based on, Shares or other property.

 

1.26            “Overall
Share Limit” means the sum of (i) 53,635,024 Shares; and (ii) the number of Shares that are subject to Prior Plan
Awards that become available for issuance under the Plan on or after the Restatement Effective Date pursuant to Article IV.

 

1.27            “Participant”
means a Service Provider who has been granted an Award.

 

1.28            “Performance-Based
Compensation” means any compensation granted under the Plan prior to November 2, 2018 that is intended to continue
to qualify as “performance-based compensation” as described in Section 162(m)(4)(C) of the Code prior to its repeal.

 

1.29            “Performance
Bonus Award” has the meaning set forth in Section 7.3.

 

1.30            “Performance
Criteria” mean the criteria (and adjustments) that the Administrator, in its sole discretion, may select to establish one
or more performance goals for an Award for a specified Performance Period.

 

(a)            The
Performance Criteria that may be used to establish performance goals for Awards may include, without limitation, one or more of the following:
(i) net earnings or losses (either before or after one or more of (A) interest, (B) taxes, (C) depreciation, (D) amortization,
and (E) non-cash equity-based compensation expense); (ii) gross or net sales or revenue or sales or revenue growth; (iii) gross
or net organic sales volume or organic sales volume growth, (iv) net income (either before or after taxes) or adjusted net income;
(v) sales from one or more products (or categories of products) as a percentage of total sales or revenue; (vi) profits (including
but not limited to gross profits, net profits, profit growth, net operation profit or economic profit), profit return ratios or operating
margin; (vii) operating earnings (either before or after taxes or before or after allocation of corporate overhead and bonus); (viii) cash
flow (including operating cash flow, free cash flow, free cash flow conversion or cash flow return on capital); (ix) return on assets;
(x) return on capital or invested capital; (xi) cost of capital; (xii) return on stockholders’ equity; (xiii) total
stockholder return; (xiv) return on sales; (xv) costs, reductions in costs and cost control measures; (xvi) expenses; (xvii) working
capital; (xviii) earnings or loss per share (“EPS”) or EPS growth; (xix) adjusted earnings or loss
per share; (xx) price per share or dividends per share (or appreciation in or maintenance of such price or dividends); (xxi) regulatory
achievements or compliance; (xxii) implementation, completion or attainment of objectives relating to research, development, regulatory,
commercial, or strategic milestones or developments; (xxiii) market share; (xxiv) economic value or economic value added models;
(xxv) division, group or corporate financial goals; (xxvi) customer satisfaction/growth; (xxvii) customer service; (xxviii) employee
satisfaction; (xxix) recruitment and maintenance of personnel; (xxx) human resources management; (xxxi) supervision of
litigation and other legal matters; (xxxii) strategic partnerships and transactions; (xxxiii) financial ratios (including those
measuring liquidity, activity, profitability or leverage); (xxxiv) debt levels or reductions; (xxxv) sales-related goals; (xxxvi) financing
and other capital raising transactions; (xxxvii) cash on hand; (xxxviii) acquisition activity; (xxxix) investment sourcing
activity; and (xl) marketing initiatives, any of which may be measured in absolute terms or as compared to any incremental increase
or decrease. Such performance goals also may be expressed in terms of the Company’s performance or the performance of a Subsidiary,
division, business segment or business unit of the Company or a Subsidiary, or may be expressed in terms of performance relative to performance
of one or more other companies or by comparisons of any of the indicators of performance relative to performance of other companies. Any
performance goals that are financial metrics may be determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”),
in accordance with accounting principles established by the International Accounting Standards Board (“IASB Principles”),
or may be adjusted when established to include or exclude any items otherwise includable or excludable under GAAP or under IASB Principles.

 

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(b)            The
Committee, in its sole discretion, may provide for exclusion of the impact of an event or occurrence which the Committee determines should
appropriately be excluded, which adjustments may be based on any of the following, without limitation: (i) restructurings, discontinued
operations, special items, and other unusual, infrequently occurring or non-recurring charges, events or items; (ii) asset sales
or write-downs; (iii) litigation or claim judgments or settlements; (iv) acquisitions or divestitures; (v) reorganization
or change in the corporate structure or capital structure of the Company; (vi) an event either not directly related to the operations
of the Company, Subsidiary, division, business segment or business unit or not within the reasonable control of management; (vii) foreign
exchange gains and losses; (viii) a change in the fiscal year of the Company; (ix) the refinancing or repurchase of bank loans
or debt securities; (x) unbudgeted capital expenditures; (xi) the issuance or repurchase of equity securities and other changes
in the number of outstanding shares; (xii) conversion of some or all of convertible securities to Common Stock; (xiii) any business
interruption event; (xiv) changes in pricing; (xv) changes in foreign currency exchange rates; (xvi) the cumulative effects
of tax or accounting changes in accordance with U.S. generally accepted accounting principles; (xvii) unusual tax transactions; or
(xviii) the effect of changes in other laws or regulatory rules affecting reported results.

 

1.31            “Performance
Period” means one or more periods of time, which may be of varying and overlapping durations, as the Committee may select,
over which the attainment of one or more performance goals will be measured for the purpose of determining a Participant’s right
to, and the payment of, an Award.

 

1.32            “Performance
Share” means a right granted to a Participant pursuant to Section 7.1 and subject to Section 7.2, to receive Shares,
the payment of which is contingent upon achieving certain performance goals or other performance-based targets established by the Administrator.

 

1.33            “Plan”
means this amended and restated 3M Company 2016 Long-Term Incentive Plan.

 

1.34            “Prior
Plan” means the 3M 2008 Long-Term Incentive Plan.

 

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1.35            “Prior
Plan Award” means an award outstanding under the Prior Plan as of the Restatement Effective Date.

 

1.36            “Restatement
Effective Date” has the meaning set forth in Section 10.3.

 

1.37            “Restricted
Stock” means Shares awarded to a Participant under Article VI, subject to certain vesting conditions and other restrictions.

 

1.38            “Restricted
Stock Unit” means an unfunded, unsecured right to receive, on the applicable settlement date, one Share or an amount in
cash or other consideration determined by the Administrator to be of equal value as of such settlement date, subject to certain vesting
conditions and other restrictions.

 

1.39            “Retires”
or Retirement” will have the meaning assigned to such term in the applicable Award Agreement or, if not defined therein,
a Participant’s Termination of Service after attaining age 55 with at least 10 years of employment service.

 

1.40            “Rule 16b-3”
means Rule 16b-3 promulgated under the Exchange Act.

 

1.41            “Section 409A”
means Section 409A of the Code.

 

1.42            “Securities
Act” means the U.S. Securities Act of 1933, as amended, and all regulations, guidance and other interpretative authority
issued thereunder.

 

1.43            “Service
Provider” means an Employee or Director.

 

1.44            “Shares”
means shares of Common Stock.

 

1.45            “Stock
Appreciation Right” or “SAR” means a right granted under Article V to receive a payment equal
to the excess of the Fair Market Value of a specified number of Shares on the date the right is exercised over the exercise price set
forth in the applicable Award Agreement.

 

1.46            “Subsidiary”
means any entity (other than the Company), whether domestic or foreign, in an unbroken chain of entities beginning with the Company if
each of the entities other than the last entity in the unbroken chain beneficially owns, at the time of the determination, securities
or interests representing at least 50% of the total combined voting power of all classes of securities or interests in one of the other
entities in such chain or any other entity in which the Company has a significant equity interest, as determined by the Administrator.

 

1.47            “Substitute
Awards” means Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, awards
previously granted, or the right or obligation to make future awards, in each case by a company or other entity acquired by the Company
or any Subsidiary or with which the Company or any Subsidiary combines.

 

1.48            “Termination
of Service” means:

 

(a)            As
to an Employee, the time when the employee-employer relationship between a Participant and the Company or any Subsidiary is terminated
for any reason, including, without limitation, a termination by resignation, discharge, death, disability or retirement; but excluding
terminations where the Participant simultaneously commences or remains in employment with the Company or any Subsidiary.

 

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(b)            As
to a non-employee Director, the time when a Participant who is a non-employee Director ceases to be a Director for any reason, including,
without limitation, a termination by resignation, failure to be elected, death or retirement, but excluding terminations where the Participant
simultaneously commences employment with the Company or any Subsidiary.

 

The Company, in its sole discretion, shall determine
the effect of all matters and questions relating to any Termination of Service, including, without limitation, whether a Termination of
Service has occurred, whether a Termination of Service resulted from a discharge for Misconduct and all questions of whether particular
leaves of absence constitute a Termination of Service. For purposes of the Plan, a Participant’s employee-employer relationship
shall be deemed to be terminated in the event that the Subsidiary employing or contracting with such Participant ceases to remain a Subsidiary
following any merger, sale of stock or other corporate transaction or event (including, without limitation, a spin-off), even though the
Participant may subsequently continue to perform services for that entity.

 

ARTICLE II.

Eligibility

 

Service Providers are eligible to be granted Awards
under the Plan, subject to the limitations described herein. No Service Provider shall have any right to be granted an Award pursuant
to the Plan.

 

ARTICLE III.

Administration and Delegation

 

3.1            Administration.
The Plan is administered by the Administrator. The Administrator has authority to determine which Service Providers receive Awards, grant
Awards and set Award terms and conditions, subject to the conditions and limitations in the Plan. The Administrator also has the authority
to take all actions and make all determinations under the Plan, to interpret the Plan and Award Agreements and to adopt, amend and repeal
Plan administrative rules, guidelines and practices as it deems advisable. The Administrator may correct defects and ambiguities, supply
omissions, reconcile inconsistencies in the Plan or any Award and make all other determinations that it deems necessary or appropriate
to administer the Plan and any Awards. The Administrator’s determinations under the Plan are in its sole discretion and will be
final and binding on all persons having or claiming any interest in the Plan or any Award.

 

3.2            Appointment
of Committees. To the extent Applicable Laws permit, the Board or any Committee may delegate any or all of its powers under the Plan
to one or more Committees or officers of the Company or any of its Subsidiaries. Any delegation hereunder shall be subject to the restrictions
and limits that the Board or Committee specifies at the time of such delegation or that are otherwise included in the applicable organizational
documents of the Company, and the Board or Committee, as applicable, may at any time rescind the authority so delegated or appoint a new
delegatee. At all times, the delegatee appointed under this Section 3.2 shall serve in such capacity at the pleasure of the Board
or the Committee, as applicable, and the Board or the Committee may abolish any Committee to which authority has been delegated at any
time and re-vest in itself any previously delegated authority.

 

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ARTICLE IV.

Stock Available for Awards

 

4.1            Number
of Shares. Subject to adjustment under Article VIII and the terms of this Article IV, Awards may be made under the Plan
covering up to the Overall Share Limit. As of the effective date of the Original Plan, the Company ceased granting awards under the Prior
Plan; however, Prior Plan Awards will remain subject to the terms of the Prior Plan. Shares issued or delivered under the Plan may consist
of authorized but unissued Shares, Shares purchased on the open market or treasury Shares. Notwithstanding the foregoing, the aggregate
number of Shares available for issuance under the Plan shall be reduced by 2.5 Shares for each Share delivered in settlement of any Full
Value Award, and by one share for every one share granted that is subject to Options or Stock Appreciation Rights.

 

4.2            Share
Recycling. If all or any part of an Award or Prior Plan Award expires, lapses or is terminated, exchanged for cash, surrendered, repurchased,
canceled without having been fully exercised or forfeited, in any case, in a manner that results in the Company acquiring Shares covered
by the Award or Prior Plan Award at a price not greater than the price (as adjusted to reflect any Equity Restructuring) paid by the Participant
for such Shares or not issuing any Shares covered by the Award or Prior Plan Award, the unused Shares covered by the Award or Prior Plan
Award will, as applicable, become or again be available for Awards under the Plan. Further, Shares delivered (either by actual delivery
or attestation) to the Company by a Participant or withheld by the Company to satisfy any applicable tax withholding obligation with respect
to a Full Value Award (including Shares retained by the Company from the Full Value Award creating the tax obligation) will, as applicable,
become or again be available for Award grants under the Plan. Notwithstanding the foregoing, following the Restatement Effective Date,
the following Shares shall not become or again be available for Award grants under the Plan: (a) Shares delivered (either by actual
delivery or attestation) to the Company by a Participant or withheld by the Company to satisfy the applicable exercise price of an Option
or a Prior Plan Award that is an option and/or to satisfy any applicable tax withholding obligation with respect to an Option or Stock
Appreciation Right or a Prior Plan Award that is an option or a stock appreciation right (including Shares retained by the Company from
the Option or Stock Appreciation Right or Prior Plan Award that is an option or a stock appreciation right being exercised and/or creating
the tax obligation), (b) Shares subject to a Stock Appreciation Right that are not issued in connection with the settlement or exercise,
as applicable, of the Stock Appreciation Right, and (c) Shares purchased on the open market with the cash proceeds from the exercise
of Options. The payment of Dividend Equivalents in cash in conjunction with any outstanding Awards or Prior Plan Awards shall not count
against the Overall Share Limit. Any Shares that again become available for Awards under the Plan pursuant to this Section shall
be added as (i) one Share for every one Share subject to Options or Stock Appreciation Rights granted under the Plan or options or
stock appreciation rights granted under the Prior Plan, and (ii) as 2.5 Shares for every one Share subject to Full Value Awards granted
under the Plan or awards other than options or stock appreciation rights granted under the Prior Plan.

 

4.3            Incentive
Stock Option Limitations. Notwithstanding anything to the contrary herein, no more than 44,000,000 Shares (as adjusted to reflect
any Equity Restructuring) may be issued pursuant to the exercise of Incentive Stock Options.

 

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4.4            Substitute
Awards. In connection with an entity’s merger or consolidation with the Company or any Subsidiary or the Company’s or
any Subsidiary’s acquisition of an entity’s property or stock, the Administrator may grant Awards in substitution for any
options or other stock or stock-based awards granted before such merger or consolidation by such entity or its affiliate. Substitute Awards
may be granted on such terms and conditions as the Administrator deems appropriate, notwithstanding limitations on Awards in the Plan.
Substitute Awards will not count against the Overall Share Limit (nor shall Shares subject to a Substitute Award be added to the Shares
available for Awards under the Plan as provided above), except that Shares acquired by exercise of substitute Incentive Stock Options
will count against the maximum number of Shares that may be issued pursuant to the exercise of Incentive Stock Options under the Plan.
Additionally, in the event that a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines
has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination,
the shares available for grant pursuant to the terms of such pre-existing plan (as appropriately adjusted to reflect the transaction)
may be used for Awards under the Plan and shall not reduce the Shares authorized for grant under the Plan (and Shares subject to such
Awards (which, for the avoidance of doubt excludes Substitute Awards) may again become available for Awards under the Plan as provided
under Section 4.2 above); provided that Awards using such available shares (or any Shares that again become available for issuance
under the Plan under Section 4.2 above) shall not be made after the date awards or grants could have been made under the terms of
the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not employees or directors
of the Company or any of its Subsidiaries prior to such acquisition or combination.

 

4.5            Non-Employee
Director Compensation. Notwithstanding any provision to the contrary in the Plan or in any policy of the Company regarding non-employee
Director compensation, the Administrator may establish compensation for non-employee Directors from time to time, subject to the limitations
in the Plan. The Administrator will from time to time determine the terms, conditions and amounts of all such non-employee Director compensation
in its sole discretion and pursuant to the exercise of its business judgment, taking into account such factors, circumstances and considerations
as it shall deem relevant from time to time, provided that the sum of any cash compensation, or other compensation, and the value (determined
as of the grant date in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, or any successor
thereto) of Awards granted to a non-employee Director as compensation for services as a non-employee Director during any calendar year
may not exceed $600,000.

 

ARTICLE V.

Stock Options and Stock Appreciation Rights

 

5.1            General.
The Administrator may grant Options or Stock Appreciation Rights to one or more Service Providers, subject to such terms and conditions
not inconsistent with the Plan as the Administrator shall determine. The Administrator will determine the number of Shares covered by
each Option and Stock Appreciation Right, the exercise price of each Option and Stock Appreciation Right and the conditions and limitations
applicable to the exercise of each Option and Stock Appreciation Right. A Stock Appreciation Right will entitle the Participant (or other
person entitled to exercise the Stock Appreciation Right) to receive from the Company upon exercise of the exercisable portion of the
Stock Appreciation Right an amount determined by multiplying the excess, if any, of the Fair Market Value of one Share on the date of
exercise over the exercise price per Share of the Stock Appreciation Right by the number of Shares with respect to which the Stock Appreciation
Right is exercised, subject to any limitations of the Plan or that the Administrator may impose and payable in cash, Shares valued at
Fair Market Value on the date of exercise or a combination of the two as the Administrator may determine or provide in the Award Agreement.

 

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5.2            Exercise
Price. The Administrator will establish each Option’s and Stock Appreciation Right’s exercise price and specify the exercise
price in the Award Agreement. The exercise price will not be less than 100% of the Fair Market Value on the grant date of the Option or
Stock Appreciation Right.

 

5.3            Duration
of Options. Each Option or Stock Appreciation Right will be exercisable at such times and as specified in the Award Agreement, provided
that the term of an Option or Stock Appreciation Right will not exceed ten years.

 

5.4            Exercise.

 

(a)            Exercise
Procedure. Options and Stock Appreciation Rights may be exercised by delivering to the Company a notice of exercise, in a form and
manner the Company approves (which may be electronic or telephonic), signed or authenticated by the person authorized to exercise the
Option or Stock Appreciation Right, together with, as applicable, payment in full of (i) the exercise price for the number of Shares
for which the Option is exercised in a manner specified in Section 5.5 and (ii) all applicable taxes in a manner specified in
Section 9.5.

 

(b)            Limited
Automatic Exercise. Notwithstanding anything to the contrary in Section 5.4(a), unless otherwise determined in the Award Agreement,
the vested and exercisable portion of an Option or Stock Appreciation Right that remains outstanding immediately prior to the expiration
of its full term (or, if applicable, the limited post-termination exercise window) shall be deemed to have been exercised by the Participant
at such time if (i) the Participant has accepted the Option or Stock Appreciation Right, (ii) the Fair Market Value of one Share
exceeds the applicable exercise price per Share, and (iii) either (A) such Option or Stock Appreciation Right remains outstanding
on the last day of its full term or (B) the Participant’s Option or Stock Appreciation Right otherwise would terminate prior
to the last day of its full term as a result of the Participant’s death. For the avoidance of doubt, an Option or Stock Appreciation
Right that terminates upon the expiration of its limited post-termination exercise window shall not be deemed to have remained outstanding
on the last day of its full term for purposes of clause (iii) in the preceding sentence. In the event an Option or Stock Appreciation
Right is exercised pursuant to this Section 5.4(b), the Company shall deliver to the Participant the number of Shares for which the
Option or Stock Appreciation Right was deemed exercised, less the number of Shares required to be withheld for the payment of the total
purchase price and required withholding taxes. Unless the Company otherwise determines, an Option or Stock Appreciation Right may not
be exercised for a fraction of a Share.

 

5.5            Payment
Upon Exercise. The Administrator shall determine the methods (or combination of methods) by which payment of the exercise price of
an Option shall be made, including, without limitation:

 

(a)            cash,
check or wire transfer of immediately available funds; provided that the Company may limit the use of one of the foregoing methods if
one or more of the methods below is permitted;

 

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(b)            if
there is a public market for Shares at the time of exercise, unless the Company otherwise determines, (A) delivery (including telephonically
to the extent permitted by the Company) of a notice that the Participant has placed a market sell order with a broker acceptable to the
Company with respect to Shares then issuable upon exercise of the Option and that the broker has been directed to deliver promptly to
the Company funds sufficient to pay the exercise price, or (B) the Participant’s delivery to the Company of a copy of irrevocable
and unconditional instructions to a broker acceptable to the Company to deliver promptly to the Company an amount sufficient to pay the
exercise price by cash, check or wire transfer of immediately available funds; provided that such amount is paid to the Company at such
time as may be required by the Company;

 

(c)            to
the extent permitted by the Administrator, delivery (either by actual delivery or attestation) of Shares owned by the Participant valued
at their Fair Market Value on the date of delivery (or such other date determined by the Administrator);

 

(d)            to
the extent permitted by the Administrator, surrendering Shares then issuable upon the Option’s exercise valued at their Fair Market
Value on the exercise date; or

 

(e)            to
the extent permitted by the Administrator, delivery of a promissory note or any other lawful consideration.

 

5.6            Additional
Terms of Incentive Stock Options. The Administrator may grant Incentive Stock Options only to employees of the Company, any of its
present or future parent or subsidiary corporations, as defined in Sections 424(e) or (f) of the Code, respectively, and
any other entities the employees of which are eligible to receive Incentive Stock Options under the Code. If an Incentive Stock Option
is granted to a Greater Than 10% Stockholder, the exercise price will not be less than 110% of the Fair Market Value on the Option’s
grant date, and the term of the Option will not exceed five years. All Incentive Stock Options will be subject to and construed consistently
with Section 422 of the Code. By accepting an Incentive Stock Option, the Participant agrees to give prompt notice to the Company
of dispositions or other transfers (other than in connection with a Change in Control) of Shares acquired under the Option made within
(i) two years from the grant date of the Option or (ii) one year after the transfer of such Shares to the Participant, specifying
the date of the disposition or other transfer and the amount the Participant realized, in cash, other property, assumption of indebtedness
or other consideration, in such disposition or other transfer. Neither the Company nor the Administrator will be liable to a Participant,
or any other party, if an Incentive Stock Option fails or ceases to qualify as an “incentive stock option” under Section 422
of the Code. Any Incentive Stock Option or portion thereof that fails to qualify as an “incentive stock option” under Section 422
of the Code for any reason, including becoming exercisable with respect to Shares having a fair market value exceeding the $100,000 limitation
under Treasury Regulation Section 1.422-4, will be a Nonqualified Stock Option.

 

ARTICLE VI.

Restricted Stock; Restricted Stock Units

 

6.1            General.
The Administrator may grant Restricted Stock, or the right to purchase Restricted Stock, to any Service Provider, subject to forfeiture
or the Company’s right to repurchase all or part of such shares at their issue price or other stated or formula price from the Participant
if conditions the Administrator specifies in the Award Agreement are not satisfied before the end of the applicable restriction period
or periods that the Administrator establishes for such Award. In addition, the Administrator may grant to Service Providers Restricted
Stock Units, which may be subject to vesting and forfeiture conditions during the applicable restriction period or periods, as set forth
in an Award Agreement. The Award Agreement for each Restricted Stock and Restricted Stock Unit Award shall set forth the terms and conditions
not inconsistent with the Plan as the Administrator shall determine.

 

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6.2            Restricted
Stock.

 

(a)            Dividends.
Subject to any limitations approved by the Administrator and set forth in the Award Agreement, Participants holding shares of Restricted
Stock will be entitled to all ordinary cash dividends paid with respect to such Shares, subject to the remainder of Section 6.2(a).
In addition, unless the Administrator provides otherwise and subject to the provisions of this Section 6.2(a) below, if any
dividends or distributions are paid in Shares, or consist of a dividend or distribution to holders of Common Stock of cash or property
other than an ordinary cash dividend, the Shares or other cash or property will be subject to the same restrictions on transferability
and forfeitability as the shares of Restricted Stock with respect to which they were paid. Notwithstanding anything to the contrary herein,
dividends with respect to an Award of Restricted Stock subject to vesting shall be accumulated and subject to vesting to the same extent
as the related shares of Restricted Stock. All such dividends shall be paid as soon as administratively practicable following the time
the applicable Restricted Stock vests and becomes non-forfeitable or such later time as may be set forth in the Award Agreement.

 

(b)            Stock
Certificates. The Company may require that the Participant deposit in escrow with the Company (or its designee) any stock certificates
issued in respect of shares of Restricted Stock, together with a stock power endorsed in blank.

 

6.3            Restricted
Stock Units. The Administrator may provide that settlement of Restricted Stock Units will occur upon or as soon as reasonably practicable
after the Restricted Stock Units vest or will instead be deferred, on a mandatory basis or at the Participant’s election.

 

ARTICLE VII.

OTHER TYPES OF AWARDS

 

7.1            General.
The Administrator may grant Performance Share awards, Performance Bonus Awards, Dividend Equivalents or Other Stock or Cash Based Awards,
to one or more Service Providers, in such amounts and subject to such terms and conditions not inconsistent with the Plan as the Administrator
shall determine.

 

7.2            Performance
Share Awards. Each Performance Share award shall be denominated in a number of Shares or in unit equivalents of Shares and/or units
of value (including a dollar value of Shares) and may be linked to any one or more of the Performance Criteria or other specific criteria,
including service to the Company or Subsidiaries, determined to be appropriate by the Administrator, in each case on a specified date
or dates or over any Performance Period. In making such determinations, the Administrator may consider (among such other factors as it
deems relevant in light of the specific type of Award) the contributions, responsibilities and other compensation of the particular Participant.

 

7.3            Performance
Bonus Awards. Each right to receive a bonus granted under this Section 7.3 shall be denominated in the form of cash and shall
be initially payable in cash (but may, in the discretion of the Administrator, be payable in Shares or a combination of cash and Shares)
(a “Performance Bonus Award”) and shall be payable upon the attainment of performance goals that are established
by the Administrator and relate to one or more of the Performance Criteria or other specific criteria, including service to the Company
or Subsidiaries, in each case on a specified date or dates or over any Performance Period.

 

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7.4            Dividend
Equivalents. If the Administrator provides, an Award (other than an Option or Stock Appreciation Right) may provide a Participant
with the right to receive Dividend Equivalents. Dividend Equivalents may be, settled in cash or Shares and shall be subject to the same
restrictions on transferability and forfeitability as the Award with respect to which the Dividend Equivalents are granted and subject
to other terms and conditions as set forth in the Award Agreement. Notwithstanding anything to the contrary herein, Dividend Equivalents
with respect to an Award subject to vesting shall either (i) to the extent permitted by Applicable Law, not be paid or credited or
(ii) be accumulated and subject to vesting to the same extent as the related Award. All such Dividend Equivalents shall be paid at
such time as the Administrator shall specify in the applicable Award Agreement.

 

7.5            Other
Stock or Cash Based Awards. Other Stock or Cash Based Awards may be granted to Participants, including Awards entitling Participants
to receive Shares to be delivered in the future and including annual or other periodic or long-term cash bonus awards (whether based on
specified Performance Criteria or otherwise), in each case subject to any conditions and limitations in the Plan. Such Other Stock or
Cash Based Awards will also be available as a payment form in the settlement of other Awards, as standalone payments and as payment in
lieu of compensation to which a Participant is otherwise entitled. Other Stock or Cash Based Awards may be paid in Shares, cash or other
property, as the Administrator determines. Subject to the provisions of the Plan, the Administrator will determine the terms and conditions
of each Other Stock or Cash Based Award, including any purchase price, performance goal (which may be based on the Performance Criteria
or otherwise), transfer restrictions, and vesting conditions, which will be set forth in the applicable Award Agreement.

 

ARTICLE VIII.

Adjustments for Changes in Common Stock

and Certain Other Events

 

8.1            Equity
Restructuring(a)        . In connection with any Equity Restructuring,
notwithstanding anything to the contrary in this Article VIII the Administrator will equitably adjust the terms of the Plan and each
outstanding Award as it deems appropriate to reflect the Equity Restructuring, which may include (i) adjusting the number and type
of securities subject to each outstanding Award and/or with respect to which Awards may be granted under the Plan (including, but not
limited to, adjustments of the limitations in Article IV hereof on the maximum number and kind of shares that may be issued and the
individual Award limitations in Section 10.18 hereof); (ii) adjusting the terms and conditions of (including the grant or exercise
price), and the performance goals or other criteria included in, outstanding Awards; and (iii) granting new Awards or making cash
payments to Participants. The adjustments provided under this Section 8.1 will be nondiscretionary and final and binding on all interested
parties, including the affected Participant and the Company; provided that the Administrator will determine whether an adjustment is equitable.

 

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8.2            Corporate
Transactions. In the event of any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or
other property), reorganization, merger, consolidation, split-up, spin off, combination, amalgamation, repurchase, recapitalization, liquidation,
dissolution, or sale, transfer, exchange or other disposition of all or substantially all of the assets of the Company, or sale or exchange
of Common Stock or other securities of the Company, Change in Control, issuance of warrants or other rights to purchase Common Stock or
other securities of the Company, other similar corporate transaction or event, other unusual or nonrecurring transaction or event affecting
the Company or its financial statements or any change in any Applicable Laws or accounting principles, the Administrator, on such terms
and conditions as it deems appropriate, either by the terms of the Award or by action taken prior to the occurrence of such transaction
or event (except that action to give effect to a change in Applicable Law or accounting principles may be made within a reasonable period
of time after such change) and either automatically or upon the Participant’s request, is hereby authorized to take any one or more
of the following actions whenever the Administrator determines that such action is appropriate in order to (x) prevent dilution or
enlargement of the benefits or potential benefits intended by the Company to be made available under the Plan or with respect to any Award
granted or issued under the Plan, (y) to facilitate such transaction or event or (z) give effect to such changes in Applicable
Laws or accounting principles:

 

(a)            To
provide for the cancellation of any such Award in exchange for either an amount of cash or other property with a value equal to the amount
that could have been obtained upon the exercise or settlement of the vested portion of such Award or realization of the Participant’s
rights under the vested portion of such Award, as applicable; provided that, if the amount that could have been obtained upon the exercise
or settlement of the vested portion of such Award or realization of the Participant’s rights, in any case, is equal to or less than
zero, then the Award may be terminated without payment;

 

(b)           To
provide that such Award shall vest and, to the extent applicable, be exercisable as to all shares covered thereby, notwithstanding anything
to the contrary in the Plan or the provisions of such Award;

 

(c)            To
provide that such Award be assumed by the successor or survivor corporation or entity, or a parent or subsidiary thereof, or shall be
substituted for by awards covering the stock of the successor or survivor corporation or entity, or a parent or subsidiary thereof, with
appropriate adjustments as to the number and kind of shares and/or applicable exercise or purchase price, in all cases, as determined
by the Administrator;

 

(d)           To
make adjustments in the number and type of shares of Common Stock (or other securities or property) subject to outstanding Awards and/or
with respect to which Awards may be granted under the Plan (including, but not limited to, adjustments of the limitations in Article IV
hereof on the maximum number and kind of shares which may be issued) and/or in the terms and conditions of (including the grant or exercise
price), and the criteria included in, outstanding Awards;

 

(e)            To
replace such Award with other rights or property selected by the Administrator; and/or

 

(f)            To
provide that the Award will terminate and cannot vest, be exercised or become payable after the applicable event.

 

8.3            Administrative
Stand Still. In the event of any pending stock dividend, stock split, combination or exchange of shares, merger, consolidation or
other distribution (other than normal cash dividends) of Company assets to stockholders, or any other extraordinary transaction or change
affecting the Shares or the share price of Common Stock (including any Equity Restructuring or any securities offering or other similar
transaction) or for reasons of administrative convenience or to facilitate compliance with any Applicable Laws, the Company may refuse
to permit the exercise or settlement of one or more Awards for such period of time as the Company may determine to be reasonably appropriate
under the circumstances.

 

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8.4            General.
Except as expressly provided in the Plan or the Administrator’s action under the Plan, no Participant will have any rights due to
any subdivision or consolidation of Shares of any class, dividend payment, increase or decrease in the number of Shares of any class or
dissolution, liquidation, merger, or consolidation of the Company or other corporation. Except as expressly provided with respect to an
Equity Restructuring under Section 8.1 above or the Administrator’s action under the Plan, no issuance by the Company of Shares
of any class, or securities convertible into Shares of any class, will affect, and no adjustment will be made regarding, the number of
Shares subject to an Award or the Award’s grant or exercise price. The existence of the Plan, any Award Agreements and the Awards
granted hereunder will not affect or restrict in any way the Company’s right or power to make or authorize (i) any adjustment,
recapitalization, reorganization or other change in the Company’s capital structure or its business, (ii) any merger, consolidation,
spinoff, dissolution or liquidation of the Company or sale of Company assets or (iii) any sale or issuance of securities, including
securities with rights superior to those of the Shares or securities convertible into or exchangeable for Shares. The Administrator may
treat Participants and Awards (or portions thereof) differently under this Article VIII.

 

ARTICLE IX.

Provisions Applicable to Awards

 

9.1            Transferability.
Except as the Administrator may determine or provide in an Award Agreement or otherwise for Awards other than Incentive Stock Options,
Awards may not be sold, assigned, transferred, pledged or otherwise encumbered, either voluntarily or by operation of law, except by will
or the laws of descent and distribution, or, subject to the Administrator’s consent, pursuant to a domestic relations order, and,
during the life of the Participant, will be exercisable only by the Participant. References to a Participant, to the extent relevant in
the context, will include references to a transferee approved by the Administrator.

 

9.2            Documentation.
Each Award will be evidenced in an Award Agreement, which may be written or electronic, as the Administrator determines. Each Award may
contain such terms and conditions as are not inconsistent with those set forth in the Plan.

 

9.3            Discretion.
Except as the Plan otherwise provides, each Award may be made alone or in addition or in relation to any other Award. The terms of each
Award to a Participant need not be identical, and the Administrator need not treat Participants or Awards (or portions thereof) uniformly.

 

9.4            Changes
in Participant’s Status. The Company will determine how the disability, death, retirement, authorized leave of absence or any
other change or purported change in a Participant’s Service Provider status affects an Award and the extent to which, and the period
during which, the Participant, the Participant’s legal representative, conservator, guardian or Designated Beneficiary may exercise
rights under the Award, if applicable. Except to the extent otherwise required by Applicable Law or expressly authorized by the Company
or by the Company’s written policy on leaves of absence, no service credit shall be given for vesting purposes for any period the
Participant is on a leave of absence.

 

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9.5            Withholding.
Each Participant must pay the Company, or make provision satisfactory to the Administrator for payment of, any taxes required by law to
be withheld in connection with such Participant’s Awards by the date of the event creating the tax liability. The Company may deduct
an amount sufficient to satisfy such tax obligations based on the minimum statutory withholding rates (or such other rate as may be determined
by the Company after considering any accounting consequences or costs) from any payment of any kind otherwise due to a Participant. Subject
to any Company insider trading policy (including blackout periods) and the terms of the applicable Award Agreement, Participants may satisfy
such tax obligations (i) in cash, by wire transfer of immediately available funds, by check made payable to the order of the Company;
provided that the Company may limit the use of one of the foregoing methods if one or more of the exercise methods below is permitted,
(ii) to the extent permitted by the Administrator, in whole or in part by delivery of Shares, including Shares delivered by attestation
and Shares retained from the Award creating the tax obligation, valued at their Fair Market Value on the date of delivery (or such other
date determined by the Administrator), (iii) if there is a public market for Shares at the time the tax obligations are satisfied,
unless the Company otherwise determines, (A) delivery (including telephonically to the extent permitted by the Company) of a notice
that the Participant has placed a market sell order with a broker acceptable to the Company with respect to Shares then issuable upon
exercise of the Award and that the broker has been directed to deliver promptly to the Company funds sufficient to satisfy the tax obligations,
or (B) the Participant’s delivery to the Company of a copy of irrevocable and unconditional instructions to a broker acceptable
to the Company to deliver promptly to the Company an amount sufficient to satisfy the tax withholding by cash, check or wire transfer
of immediately available funds; provided that such amount is paid to the Company at such time as may be required by the Company, (iv) to
the extent permitted by the Administrator, delivery of a promissory note or any other lawful consideration or (v) any combination
of the foregoing payment forms approved by the Administrator. If any tax withholding obligation will be satisfied under clause (ii) of
the immediately preceding sentence by the Company’s retention of Shares from the Award creating the tax obligation and there is
a public market for Shares at the time the tax obligation is satisfied, the Company may elect to instruct any brokerage firm determined
acceptable to the Company for such purpose to sell on the applicable Participant’s behalf some or all of the Shares retained and
to remit the proceeds of the sale to the Company or its designee, and each Participant’s acceptance of an Award under the Plan will
constitute the Participant’s authorization to the Company and instruction and authorization to such brokerage firm to complete the
transactions described in this sentence.

 

9.6            Amendment
of Award; Prohibition on Repricing. The Administrator may amend, modify or terminate any outstanding Award, including by substituting
another Award of the same or a different type, changing the exercise or settlement date, converting an Incentive Stock Option to a Nonqualified
Stock Option and providing for cash settlement of an outstanding award. The Participant’s consent to such action will be required
unless (i) the action, taking into account any related action, does not materially and adversely affect the economic benefits to
be delivered under the Award as of the date of such amendment, modification or termination, or (ii) the change is permitted under
Article VIII or pursuant to Sections 10.5 or 10.6. Other than pursuant to Sections 8.1 and 8.2, the Administrator shall not without
the approval of the Company’s stockholders (a) lower the exercise price per Share of an Option or Stock Appreciation Right
after it is granted, (b) cancel an Option or Stock Appreciation Right when the exercise price per Share exceeds the Fair Market Value
of one Share in exchange for cash or another Award, or (c) take any other action with respect to an Option or Stock Appreciation
Right that the Company determines would be treated as a repricing under the rules and regulations of the principal U.S. national
securities exchange on which the Shares are listed.

 

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9.7            Conditions
on Delivery of Stock. The Company will not be obligated to deliver any Shares under the Plan or remove restrictions from Shares previously
delivered under the Plan until (i) all Award conditions have been met or removed to the Company’s satisfaction, (ii) as
determined by the Company, all other legal matters regarding the issuance and delivery of such Shares have been satisfied, including any
applicable securities laws and stock exchange or stock market rules and regulations, (iii) any approvals from governmental agencies
that the Company determines are necessary or advisable have been obtained, and (iv) the Participant has executed and delivered to
the Company such representations or agreements as the Company deems necessary or appropriate to satisfy any Applicable Laws. The inability
or impracticability of the Company to obtain or maintain authority from any regulatory body having jurisdiction, which authority is deemed
by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained, and
shall constitute circumstances in which the Administrator may determine to amend or cancel Awards pertaining to such Shares, with or without
consideration to the Participant.

 

9.8            Acceleration.
The Administrator may at any time provide that any Award will become immediately vested and fully or partially exercisable, free of some
or all restrictions or conditions, or otherwise fully or partially realizable.

 

9.9            Fractional
Shares. Unless otherwise determined by the Company, fractional shares of Stock may be issued under the Plan. To the extent the Company
determines that fractional shares of Stock will not be issued, the Company shall determine, in its sole and absolute discretion, whether
cash shall be given in lieu of fractional shares or whether such fractional shares shall be eliminated by rounding down.

 

ARTICLE X.

Miscellaneous

 

10.1          No
Right to Employment or Other Status. No person will have any claim or right to be granted an Award, and the grant of an Award will
not be construed as giving a Participant the right to continue employment or any other relationship with the Company or a Subsidiary.
The Company and its Subsidiaries expressly reserve the right at any time to dismiss or otherwise terminate their relationship with a Participant
free from any liability or claim under the Plan or any Award, except as expressly provided in an Award Agreement.

 

10.2          No
Rights as Stockholder; Certificates. Subject to the Award Agreement, no Participant or Designated Beneficiary will have any rights
as a stockholder with respect to any Shares to be distributed under an Award until becoming the record holder of such Shares. Notwithstanding
any other provision of the Plan, unless the Company otherwise determines or Applicable Laws require, the Company will not be required
to deliver to any Participant certificates evidencing Shares issued in connection with any Award and instead such Shares may be recorded
in the books of the Company (or, as applicable, its transfer agent or stock plan administrator). The Company may place legends on any
share certificate or book entry to reference restrictions applicable to the Shares (including, without limitation, restrictions applicable
to Restricted Stock).

 

10.3          Restatement
Effective Date and Term of Plan. This amended and restated Plan will become effective on the date it is approved by the Company’s
stockholders (the “Restatement Effective Date”). The Plan will expire on, and no Award may be granted pursuant
to the Plan after the tenth anniversary of the date of the Board’s adoption of this amended and restated Plan, but Awards previously
granted may extend beyond that date and shall remain in force according to the terms of the Plan and the applicable Award Agreement. If
the Plan is not approved by the Company’s stockholders within twelve (12) months following the Board’s adoption of this amended
and restated Plan, this amended and restated Plan will not become effective and the Original Plan will continue in full force and effect
in accordance with its terms.

 

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10.4          Amendment
of Plan. The Board or the Compensation Committee of the Board may amend, suspend or terminate the Plan at any time and from time to
time; provided that no amendment, other than an increase to the Overall Share Limit, may materially and adversely affect the economic
benefits to be delivered under any outstanding award as of the date of such amendment without the affected Participant’s consent.
No Awards may be granted under the Plan during any suspension period or after Plan termination. Awards outstanding at the time of any
Plan suspension or termination will continue to be governed by the Plan and the Award Agreement, as in effect before such suspension or
termination. The Board will obtain stockholder approval of any Plan amendment to the extent necessary to comply with Applicable Laws.

 

10.5          Provisions
for Foreign Participants. The Administrator may modify Awards granted to Participants who are foreign nationals employed or residing
outside the United States or establish subplans or procedures under the Plan to address differences in laws, rules, regulations or customs
of such foreign jurisdictions with respect to tax, securities, currency, employee benefit or other matters.

 

10.6          Section 409A.

 

(a)            General.
The Company intends that all Awards be structured to comply with, or be exempt from, Section 409A, such that no adverse tax consequences,
interest, or penalties under Section 409A apply. Notwithstanding anything in the Plan or any Award Agreement to the contrary, the
Administrator may, without a Participant’s consent, amend the Plan or Awards, adopt policies and procedures, or take any other actions
(including amendments, policies, procedures and retroactive actions) as are necessary or appropriate to preserve the intended tax treatment
of Awards, including any such actions intended to (A) exempt the Plan or any Award from Section 409A, or (B) comply with
Section 409A, including regulations, guidance, compliance programs and other interpretative authority that may be issued after an
Award’s grant date. The Company makes no representations or warranties as to an Award’s tax treatment under Section 409A
or otherwise. The Company will have no obligation under this Section 10.6 or otherwise to avoid the taxes, penalties or interest
under Section 409A with respect to any Award and will have no liability to any Participant or any other person if any Award, compensation
or other benefits under the Plan are determined to constitute noncompliant “nonqualified deferred compensation” subject to
taxes, penalties or interest under Section 409A.

 

(b)            Separation
from Service. If an Award constitutes “nonqualified deferred compensation” under Section 409A, any payment or settlement
of such Award upon a Participant’s Termination of Service will, to the extent necessary to avoid taxes under Section 409A,
be made only upon the Participant’s “separation from service” (within the meaning of Section 409A), whether such
 “separation from service” occurs upon or after the Participant’s Termination of Service. For purposes of the Plan or
any Award Agreement relating to any such payments or benefits, references to a “termination,” “termination of employment”
or like terms mean a “separation from service.”

 

(c)            Payments
to Specified Employees. Notwithstanding any contrary provision in the Plan or any Award Agreement, any payment(s) of “nonqualified
deferred compensation” required to be made under an Award to a “specified employee” (as defined under Section 409A
and as the Company determines) due to his or her “separation from service” will, to the extent necessary to avoid taxes under
Section 409A(a)(2)(B)(i) of the Code, be delayed for the six-month period immediately following such “separation from
service” (or, if earlier, until the specified employee’s death) and will instead be paid (as set forth in the Award Agreement)
on the day immediately following such six-month period or as soon as administratively practicable thereafter (without interest). Any payments
of “nonqualified deferred compensation” under such Award payable more than six months following the Participant’s “separation
from service” will be paid at the time or times the payments are otherwise scheduled to be made.

 

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10.7          Limitations
Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan, the Plan and any Award granted or awarded
to any Participant who is then subject to Section 16 of the Exchange Act shall be subject to any additional limitations set forth
in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 under the
Exchange Act or any successor rule) that are requirements for the application of such exemptive rule. To the extent permitted by applicable
law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such applicable exemptive
rule.

 

10.8          Limitations
on Liability. Notwithstanding any other provisions of the Plan, no individual acting as a director, officer or other employee of the
Company or any Subsidiary will be liable to any Participant, former Participant, spouse, beneficiary, or any other person for any claim,
loss, liability, or expense incurred in connection with the Plan or any Award, and such individual will not be personally liable with
respect to the Plan because of any contract or other instrument executed in his or her capacity as an Administrator, director, officer
or other employee of the Company or any Subsidiary. The Company will indemnify and hold harmless each director, officer or other employee
of the Company or any Subsidiary that has been or will be granted or delegated any duty or power relating to the Plan’s administration
or interpretation, against any cost or expense (including attorneys’ fees) or liability (including any sum paid in settlement of
a claim with the Company’s approval) arising from any act or omission concerning the Plan unless arising from such person’s
own fraud or bad faith; provided that he or she gives the Company an opportunity, at its own expense, to handle and defend the same before
he or she undertakes to handle and defend it on his or her own behalf.

 

10.9          Data
Privacy. As a condition for receiving any Award, each Participant explicitly and unambiguously consents to the collection, use and
transfer, in electronic or other form, of personal data as described in this Section by and among the Company and its Subsidiaries
and affiliates exclusively for implementing, administering and managing the Participant’s participation in the Plan. The Company
and its Subsidiaries and affiliates may hold certain personal information about a Participant, including the Participant’s name,
address and telephone number; birthdate; social security, insurance number or other identification number; salary; nationality; job title(s);
any Shares held in the Company or its Subsidiaries and affiliates; and Award details (the “Data”), to implement,
manage and administer the Plan and Awards. The Company and its Subsidiaries and affiliates may transfer the Data amongst themselves as
necessary to implement, administer and manage a Participant’s participation in the Plan, and the Company and its Subsidiaries and
affiliates may transfer the Data to third parties assisting the Company with Plan implementation, administration and management. These
recipients may be located in the Participant’s country, or elsewhere, and the Participant’s country may have different data
privacy laws and protections than the recipients’ country. By accepting an Award, each Participant authorizes such recipients to
receive, possess, use, retain and transfer the Data, in electronic or other form, to implement, administer and manage the Participant’s
participation in the Plan, including any required Data transfer to a broker or other third party with whom the Company or the Participant
may elect to deposit any Shares. The Company may cancel Participant’s ability to participate in the Plan and, in the Company’s
sole discretion, the Participant may forfeit any outstanding Awards if the Participant refuses or withdraws the consents in this Section 10.9.

 

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10.10        Severability.
If any portion of the Plan or any action taken under it is held illegal or invalid for any reason, the illegality or invalidity will not
affect the remaining parts of the Plan, and the Plan will be construed and enforced as if the illegal or invalid provisions had been excluded,
and the illegal or invalid action will be null and void.

 

10.11        Governing
Documents. If any contradiction occurs between the Plan and any Award Agreement or other written agreement between a Participant and
the Company (or any Subsidiary), the Plan will govern, unless such Award Agreement or other written agreement was approved by the Administrator
and expressly provides that a specific provision of the Plan will not apply.

 

10.12        Governing
Law. The Plan and all Awards will be governed by and interpreted in accordance with the laws of the State of Delaware, disregarding
the choice-of-law principles of the State of Delaware and any other state requiring the application of a jurisdiction’s laws other
than the State of Delaware.

 

10.13        Clawback
Provisions. All Awards (including the gross amount of any proceeds, gains or other economic benefit the Participant actually or constructively
receives upon receipt or exercise of any Award or the receipt or resale of any Shares underlying the Award) will be subject to recoupment
by the Company to the extent required to comply with Applicable Laws or any policy of the Company providing for the reimbursement of incentive
compensation.

 

10.14        Titles
and Headings. The titles and headings in the Plan are for convenience of reference only and, if any conflict, the Plan’s text,
rather than such titles or headings, will control.

 

10.15        Conformity
to Applicable Laws. Participant acknowledges that the Plan is intended to conform to the extent necessary with Applicable Laws. Notwithstanding
anything herein to the contrary, the Plan and all Awards will be administered only in a manner intended to conform with Applicable Laws.
To the extent Applicable Laws permit, the Plan and all Award Agreements will be deemed amended as necessary to conform to Applicable Laws.

 

10.16        Relationship
to Other Benefits. No payment under the Plan will be taken into account in determining any benefits under any pension, retirement,
savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Subsidiary, except as expressly provided
in writing in such other plan or an agreement thereunder.

 

    20

     

    

10.17        Broker-Assisted
Sales. In the event of a broker-assisted sale of Shares in connection with the payment of amounts owed by a Participant under or with
respect to the Plan or Awards, including amounts to be paid under the final sentence of Section 9.5: (a) any Shares to be sold
through the broker-assisted sale will be sold on the day the payment first becomes due, or as soon thereafter as practicable; (b) such
Shares may be sold as part of a block trade with other Participants in the Plan in which all participants receive an average price; (c) the
applicable Participant will be responsible for all broker’s fees and other costs of sale, and by accepting an Award, each Participant
agrees to indemnify and hold the Company harmless from any losses, costs, damages, or expenses relating to any such sale; (d) to
the extent the Company or its designee receives proceeds of such sale that exceed the amount owed, the Company will pay such excess in
cash to the applicable Participant as soon as reasonably practicable; (e) the Company and its designees are under no obligation to
arrange for such sale at any particular price; and (f) in the event the proceeds of such sale are insufficient to satisfy the Participant’s
applicable obligation, the Participant may be required to pay immediately upon demand to the Company or its designee an amount in cash
sufficient to satisfy any remaining portion of the Participant’s obligation.

 

10.18        Individual
Award Limitations. Notwithstanding any provision in the Plan to the contrary, and subject to adjustment as provided in Article VIII,
(i) the maximum aggregate number of Shares with respect to all Options and Stock Appreciation Rights that may be granted to any one
person during any calendar year shall be 500,000; (ii) the maximum aggregate number of Shares that may be earned with respect to
all Awards of Restricted Stock, Restricted Stock Units, Performance Shares and Other Stock or Cash Based Awards that are intended to qualify
as Performance-Based Compensation and are denominated in Shares that may be granted to any one person during any calendar year shall be
500,000; and (iii) the maximum aggregate amount that may become payable (in cash, Shares or any combination thereof) pursuant to
all Performance Bonus Awards that may be granted to any one person during any calendar year shall be U.S. $10,000,000; provided, however,
that in no event will more than the Overall Share Limit be granted to any one person during any calendar year of the Company with respect
to one or more Award denominated in Shares. For purposes of this Section 10.18, each Share subject to an Award (including a Full
Value Award) shall be counted as one Share against the specified limit. Each of the limitations in this Section, other than the Overall
Share Limit, shall be multiplied by two (2) with respect to Awards granted to a Participant during the calendar year in which the
Participant commences employment with the Company and/or its Subsidiaries.

 

10.19        Performance-Based
Compensation. Notwithstanding any provision in the Plan to the contrary, and subject to adjustment as provided in Article VIII,
if any Award is intended to continue to qualify as Performance-Based Compensation pursuant to the transition relief rules in the
Tax Cuts and Jobs Act of 2017, to the extent any of the provisions of the Plan or any Award (or any amendments hereto pursuant to this
amendment and restatement of the Plan) would cause such Award to fail to so qualify, any such provisions shall not apply to such Award
to the extent necessary to ensure the such Award continues to so qualify. In addition, any Award which is intended to continue to qualify
as Performance-Based Compensation pursuant to the transition relief rules in the Tax Cuts and Jobs Act of 2017 shall be subject to
any additional limitations set forth in Section 162(m) of the Code that are requirements for qualification as Performance-Based
Compensation, and the Plan and the applicable Award Agreement shall be deemed amended to the extent necessary to conform to such requirements.
Should any Awards be intended to continue to qualify as Performance-Based Compensation pursuant to the transition relief rules in
the Tax Cuts and Jobs Act of 2017, the Administrator with respect to such Awards shall be a Committee comprised solely of two or more
Directors, each of whom is intended to be an “outside director” within the meaning of Section 162(m) of the Code;
provided that a Committee member’s failure to qualify as an “outside director” within the meaning of Section 162(m) will
not invalidate any Award granted by the Committee that is otherwise validly granted under the Plan. No adjustment or action described
in Article VIII or in any other provision of the Plan shall be authorized to the extent that such adjustment or action would cause
an Award intended to continue to qualify as Performance-Based Compensation to fail to so qualify as Performance-Based Compensation, unless
the Administrator determines that the Award should not so qualify.

 

    21ex_247767.htm

Exhibit 4.1

 

WARRANT

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. THE NUMBER OF SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 1(a) OF THIS WARRANT.

 

Enservco Corporation

 

Warrant to Purchase Common Stock

 

 

 

Date of Issuance: February 11, 2021 (“Issuance Date”)

 

Enservco Corporation, a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Cross River Partners, L.P., a Delaware limited partnership, the registered holder hereof or its permitted assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below), upon exercise of this Warrant to Purchase Common Stock (including any Warrants to Purchase Common Stock issued in exchange, transfer or replacement hereof, the “Warrant”), at any time or times beginning one year after the Issuance Date, but not after 11:59 p.m., Eastern time, on the Expiration Date (as defined below), 150,418 (subject to adjustment as provided herein) fully paid and non-assessable shares of Common Stock (as defined below) (the “Warrant Shares”). Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in Section 17. This Warrant is the Warrant issued pursuant to that certain Note Conversion Agreement dated as of February 3, 2021 by and among the Company and the Holder, as amended from time to time.

 

 

 

 

 

1.         Exercise of Warrant.

 

(a)         Mechanics of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in Section 1(d)), this Warrant may be exercised by the Holder on any day beginning one year after the Issuance Date (an “Exercise Date”), in whole or in part, by delivery (whether via facsimile or otherwise) of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant. Within one (1) Trading Day following an exercise of this Warrant as aforesaid, the Holder shall deliver payment to the Company of an amount equal to the Exercise Price multiplied by the number of Warrant Shares as to which this Warrant was so exercised (the “Aggregate Exercise Price”) in cash or via wire transfer of immediately available funds. The Holder shall not be required to deliver the original of this Warrant in order to effect an exercise hereunder. Execution and delivery of an Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original of this Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. Execution and delivery of an Exercise Notice for all of the then-remaining Warrant Shares shall have the same effect as cancellation of the original of this Warrant after delivery of the Warrant Shares in accordance with the terms hereof. On or before the second (2nd) Trading Day following the date on which the Company has received an Exercise Notice, the Company shall transmit by facsimile or electronic mail an acknowledgment of confirmation of receipt of such Exercise Notice, in the form attached hereto as Exhibit B, to the Holder and the Company’s transfer agent (the “Transfer Agent”), which confirmation shall constitute an instruction to the Transfer Agent to process such Exercise Notice in accordance with the terms herein. On or before the third (3rd) Trading Day following the date on which the Company has received such Exercise Notice (or such earlier date as required pursuant to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade of such Warrant Shares initiated on the applicable Exercise Date), the Company shall (X) provided that the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the Holder or, at the Holder’s instruction pursuant to the Exercise Notice, the Holder’s agent or designee, in each case, sent by reputable overnight courier to the address as specified in the applicable Exercise Notice, a certificate, registered in the Company’s share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice), for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of an Exercise Notice, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the Holder’s DTC account or the date of delivery of the certificates evidencing such Warrant Shares (as the case may be). If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then, at the request of the Holder, the Company shall as soon as practicable and in no event later than five (5) Business Days after any exercise and at its own expense, issue and deliver to the Holder (or its designee) a new Warrant (in accordance with Section 7(d)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional shares of Common Stock are to be issued upon the exercise of this Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to the nearest whole number. The Company shall pay any and all transfer, stamp, issuance and similar taxes, costs and expenses (including, without limitation, fees and expenses of the Transfer Agent) that may be payable with respect to the issuance and delivery of Warrant Shares upon exercise of this Warrant. Notwithstanding the foregoing, the Company’s failure to deliver Warrant Shares to the Holder on or prior to the later of (i) three (3) Trading Days after receipt of the applicable Exercise Notice (or such earlier date as required pursuant to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade of such Warrant Shares initiated on the applicable Exercise Date) and (ii) one (1) Trading Day after the Company’s receipt of the Aggregate Exercise Price (such later date, the “Share Delivery Deadline”) shall not be deemed to be a breach of this Warrant.

 

(b)         Exercise Price. For purposes of this Warrant, “Exercise Price” means, as of any given Exercise Date, $2.507 per share.

 

(c)         Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant Shares to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance with Section 13.

 

(d)         Limitations on Exercises.

 

(i)         Principal Market Regulation. The Company shall not issue any shares of Common Stock upon the exercise of this Warrant if the issuance of such shares of Common Stock would exceed the aggregate number of shares of Common Stock which the Company may issue without breaching the Company’s obligations under the rules or regulations of the Principal Market (the number of shares which may be issued without violating such rules and regulations, the “Exchange Cap”), except that such limitation shall not apply in the event that the Company (A) obtains the approval of its stockholders as required by the applicable rules of the Principal Market for issuances of shares of Common Stock in excess of such amount or (B) obtains a written opinion from outside counsel to the Company that such approval is not required, which opinion shall be reasonably satisfactory to the Holder or (C) obtains a waiver from the Principal Market of the applicable rules of such Principal Market for the issuance of shares of Common Stock in excess of such amount. Until such approval or such written opinion is obtained, Holder shall not be issued in the aggregate, upon exercise of the Warrant, shares of Common Stock in an amount greater than the Exchange Cap as of the Issuance Date.

 

2

 

 

(e)         Reservation of Shares.

 

(i)         Required Reserve Amount. So long as this Warrant remains outstanding, the Company shall at all times keep reserved for issuance under this Warrant a number of shares of Common Stock at least equal to 125% of the maximum number of shares of Common Stock issuable hereunder (without regard to any limitations on exercise) (the “Required Reserve Amount”); provided that at no time shall the number of shares of Common Stock reserved pursuant to this Section 1(e)(i) be reduced other than proportionally in connection with any exercise or redemption of this Warrant or such other event covered by Section 2(a) below.

 

(ii)         Insufficient Authorized Shares. If, notwithstanding Section 1(e)(i) above, and not in limitation thereof, at any time while this Warrant remain outstanding, the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve the Required Reserve Amount (an “Authorized Share Failure”), then the Company shall immediately take all action necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than ninety (90) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders or complete a consent solicitation in lieu of a meeting for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its reasonable best efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal.

 

2.         ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 2.

 

(a)         Stock Dividends and Splits. Without limiting any provision of Section 2(b) or Section 4, if the Company, at any time on or after the Issuance Date, (i) pays a stock dividend on one or more classes of its then outstanding shares of Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its then outstanding shares of Common Stock into a larger number of shares or (iii) combines (by combination, reverse stock split or otherwise) one or more classes of its then outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination.

 

(b)         Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to paragraphs (a) or (d) of this Section 2, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise contained herein).

 

(c)         Stock Combination Event Adjustment. If at any time and from time to time on or after the Issuance Date there occurs any stock split, stock dividend, stock combination recapitalization or other similar transaction involving the Common Stock (each, a “Stock Combination Event”, and such date thereof, the “Stock Combination Event Date”) and the Event Market Price is less than the Exercise Price then in effect (after giving effect to the adjustment in clause 2(a) above), then on the sixteenth (16th) Trading Day immediately following such Stock Combination Event, the Exercise Price then in effect on such sixteenth (16th) Trading Day (after giving effect to the adjustment in clause 2(b) above) shall be reduced (but in no event increased) to the Event Market Price. For the avoidance of doubt, if the adjustment in the immediately preceding sentence would otherwise result in an increase in the Exercise Price hereunder, no adjustment shall be made.

 

3

 

 

(d)         Other Events. In the event that the Company shall take any action to which the provisions hereof are not strictly applicable, or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features), then the Company’s board of directors shall in good faith determine and implement an appropriate adjustment in the Exercise Price and the number of Warrant Shares (if applicable) so as to protect the rights of the Holder, provided that no such adjustment pursuant to this Section 2(e) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2, provided further that if the Holder does not accept such adjustments as appropriately protecting its interests hereunder against such dilution, then the Company’s board of directors and the Holder shall agree, in good faith, upon an independent investment bank of nationally recognized standing to make such appropriate adjustments, whose determination shall be final and binding absent manifest error and whose fees and expenses shall be borne by the Company.

 

(e)         Calculations. All calculations under this Section 2 shall be made by rounding to the nearest cent or the nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issuance or sale of Common Stock.

 

(f)         Voluntary Adjustment by Company. The Company may at any time during the term of this Warrant, with the prior written consent of the Holder, reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the board of directors of the Company.

 

3.          [Reserved].

 

4.         FUNDAMENTAL TRANSACTIONS. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 4 pursuant to written agreements in form and substance satisfactory to the Holder, including agreements to deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, which is exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (a “Successor Entity Security”) (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such adjustments to the number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction). Upon the consummation of a Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of the applicable Fundamental Transaction, the provisions of this Warrant referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such Successor Entity had been named as the Company herein. In addition to and not in substitution for any other rights hereunder, prior to the consummation of a Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities with respect to or in exchange for shares of Common Stock (a “Corporate Event”), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon an exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction but prior to the Expiration Date, in lieu of the shares of the Common Stock issuable upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of stock (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant). Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory to the Holder.

 

4

 

 

5.         NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation, Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issuance or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (a) shall not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price, and (b) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock upon the exercise of this Warrant. Notwithstanding anything herein to the contrary, if after the sixty (60) calendar day anniversary of the Issuance Date, the Holder is not permitted to exercise this Warrant in full for any reason (other than pursuant to restrictions set forth in Section 1(d) hereof), the Company shall use its best efforts to promptly remedy such failure, including, without limitation, obtaining such consents or approvals as necessary to permit such exercise into shares of Common Stock.

 

6.         WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in its capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in its capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices and other information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

 

7.         REISSUANCE OF WARRANTS.

 

(a)         Transfer of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

 

(b)         Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant Shares then underlying this Warrant.

 

(c)         Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, no warrants for fractional shares of Common Stock shall be given.

 

(d)         Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

 

5

 

 

8.         NOTICES.

 

(a)         Timing of Notices. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant (other than the issuance of shares of Common Stock upon exercise in accordance with the terms hereof), including in reasonable detail a description of such action and the reason therefor. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon each adjustment of the Exercise Price and the number of Warrant Shares, setting forth in reasonable detail, and certifying, the calculation of such adjustment(s), (ii) at least fifteen (15) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares of Common Stock, (B) with respect to any grants, issuances or sales of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property to holders of shares of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder, (iii) at least ten (10) Trading Days prior to the consummation of any Fundamental Transaction, setting forth in reasonable detail any material events with respect to such Event of Default and any efforts by the Company to cure such Event of Default.

 

(b)         Written Notices. All notices and other communications to any party herein to be effective shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail, email, or sent by facsimile as follows:

 

 

	
			To the Holder:

				
			Cross River Partners LP

			
	 	
			31 Bailey Avenue, Suite D

			
	 	
			Ridgefield, CT 06877

			
	 	
			Email: rmurphy@cross-river.com

			
	 	
			Attention: Richard Murphy

			
	 	 
	
			To the Company:

				
			Enservco Corporation

			
	 	
			14133 County Road 9 1⁄2

			
	 	
			Longmont, Colorado  80504

			
	 	
			Email: rmurphy@enservco.com

			
	 	
			Facsimile: 720-974-3417

			
	 	
			Attention: Richard A. Murphy

			
	 	 
	 	
			with a copy to

			
	 	 
	 	
			Maslon LLP

			
	 	
			3300 Wells Fargo Center

			
	 	
			90 South Seventh Street

			
	 	
			Minneapolis, MN 55402

			
	 	
			Email: doug.holod@maslon.com

			
	 	
			Facsimile: 612-642-8313

			
	 	
			Attention: Doug Holod, Esq.

			

 

Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto. All such notices and other communications shall, when transmitted by overnight delivery, or faxed, be effective when delivered for overnight (next-day) delivery, or transmitted in legible form by facsimile machine, respectively, or if mailed, upon the third Business Day after the date deposited into the mail or if delivered, upon delivery.

 

(c)         Email Communications. Notices and other communications to the Lender hereunder may be delivered or furnished by email. Unless the Lender otherwise prescribes, notices and other communications sent to an email address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return email or other written acknowledgement); provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

 

6

 

 

9.           AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant (other than Section 1(d)) may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.

 

10.        SEVERABILITY. If any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

11.         GOVERNING LAW. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Delaware. The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts located in the State of Delaware for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s obligations to the Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or other court ruling in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

12.        CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant.

 

13.         DISPUTE RESOLUTION.

 

(a)         In the case of a dispute relating to the Exercise Price, the Closing Sale Price, Black Scholes Consideration Value or fair market value or the arithmetic calculation of the number of Warrant Shares (as the case may be) (including, without limitation, a dispute relating to the determination of any of the foregoing), the Company or the Holder (as the case may be) shall submit the dispute to the other party via facsimile (A) if by the Company, within two (2) Business Days after the occurrence of the circumstances giving rise to such dispute or (B) if by the Holder, at any time after the Holder learned of the circumstances giving rise to such dispute. If the Holder and the Company are unable to promptly resolve such dispute relating to such Exercise Price, such Closing Sale Price, such Black Scholes Consideration Value or such fair market value or such arithmetic calculation of the number of Warrant Shares (as the case may be), at any time after the second (2nd) Business Day following such initial notice by the Company or the Holder (as the case may be) of such dispute to the Company or the Holder (as the case may be), then the Holder may, at its sole option, select an independent, reputable investment bank to resolve such dispute.

 

7

 

 

(b)         The Holder and the Company shall each deliver to such investment bank (A) a copy of the initial dispute submission so delivered in accordance with the first sentence of this Section 13 and (B) written documentation supporting its position with respect to such dispute, in each case, no later than 5:00 p.m. (Eastern time) by the fifth (5th) Business Day immediately following the date on which the Holder selected such investment bank (the “Dispute Submission Deadline”) (the documents referred to in the immediately preceding clauses (A) and (B) are collectively referred to herein as the “Required Dispute Documentation”) (it being understood and agreed that if either the Holder or the Company fails to so deliver all of the Required Dispute Documentation by the Dispute Submission Deadline, then the party who fails to so submit all of the Required Dispute Documentation shall no longer be entitled to (and hereby waives its right to) deliver or submit any written documentation or other support to such investment bank with respect to such dispute and such investment bank shall resolve such dispute based solely on the Required Dispute Documentation that was delivered to such investment bank prior to the Dispute Submission Deadline). Unless otherwise agreed to in writing by both the Company and the Holder or otherwise requested by such investment bank, neither the Company nor the Holder shall be entitled to deliver or submit any written documentation or other support to such investment bank in connection with such dispute (other than the Required Dispute Documentation).

 

(c)         The Company and the Holder shall cause such investment bank to determine the resolution of such dispute and notify the Company and the Holder of such resolution no later than ten (10) Business Days immediately following the Dispute Submission Deadline. The fees and expenses of such investment bank shall be borne solely by the Company, and such investment bank’s resolution of such dispute shall be final and binding upon all parties absent manifest error.

 

14.        REMEDIES, CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific performance and/or other injunctive relief). The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, exercises and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required. The Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions of this Warrant (including, without limitation, compliance with Section 2 hereof). The issuance of shares and certificates for shares as contemplated hereby upon the exercise of this Warrant shall be made without charge to the Holder or such shares for any issuance tax or other costs in respect thereof, provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf.

 

15.         PAYMENT OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Warrant is placed in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding or the holder otherwise takes action to collect amounts due under this Warrant or to enforce the provisions of this Warrant or (b) there occurs any bankruptcy, reorganization, receivership of the company or other proceedings affecting company creditors’ rights and involving a claim under this Warrant, then the Company shall pay the costs incurred by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, without limitation, attorneys’ fees and disbursements.

 

16.         [Reserved].

 

17.         CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

(a)         “1933 Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.

 

(b)         “1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

 

8

 

 

(c)         “Adjustment Right” means any right granted with respect to any securities issued in connection with, or with respect to, any issuance or sale (or deemed issuance or sale in accordance with Section 2) of shares of Common Stock (other than rights of the type described in Section 3 and 4(a) hereof) that could result in a decrease in the net consideration received by the Company in connection with, or with respect to, such securities.

 

(d)         “Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common control with, such Person, it being understood for purposes of this definition that “control” of a Person means the power directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the election of directors of such Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

 

(e)         [Reserved].

 

(f)         [Reserved].

 

(g)         “Black Scholes Consideration Value” means the value of the applicable Option, Convertible Security or Adjustment Right (as the case may be) as of the date of issuance thereof calculated using the Black Scholes Option Pricing Model obtained from the “OV” function on Bloomberg utilizing (i) an underlying price per share equal to the Closing Sale Price of the Common Stock on the Trading Day immediately preceding the public announcement of the execution of definitive documents with respect to the issuance of such Option or Convertible Security (as the case may be), (ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of such Option, Convertible Security or Adjustment Right (as the case may be) as of the date of issuance of such Option, Convertible Security or Adjustment Right (as the case may be), (iii) a zero cost of borrow and (iv) an expected volatility equal to the greater of 100% and the 30 day volatility obtained from the “HVT” function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately following the date of issuance of such Option, Convertible Security or Adjustment Right (as the case may be).

 

(h)         “Bloomberg” means Bloomberg, L.P.

 

(i)         “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in State of Delaware are authorized or required by law to remain closed.

 

(j)         “Closing Sale Price” means, for any security as of any date, the last closing trade price for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing trade price, then the last trade price of such security prior to 4:00:00 p.m., Eastern time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last trade price of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing does not apply, the last trade price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no last trade price is reported for such security by Bloomberg, the average of the ask prices of any market makers for such security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 13. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

 

(k)         “Common Stock” means (i) the Company’s shares of common stock, $0.005 par value per share, and (ii) any capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock.

 

(l)         “Convertible Securities” means any stock or other security (other than Options) that is at any time and under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock.

 

9

 

 

(m)         “Eligible Market” means The New York Stock Exchange, the Nasdaq Capital Market, the Nasdaq Global Select Market, the Nasdaq Global Market, the OTCQX, the OTCQB or the Principal Market.

 

(n)         “Event Market Price” means, with respect to any Stock Combination Event Date, the quotient determined by dividing (x) the sum of the VWAP of the Common Stock for each of the five (5) lowest Trading Days during the fifteen (15) consecutive Trading Day period ending and including the Trading Day immediately preceding the sixteenth (16th) Trading Day after such Stock Combination Event Date, divided by (y) five (5).

 

(o)         [Reserved].

 

(p)         Expiration Date” means the date that is the sixty month anniversary of the Issuance Date or, if such date falls on a day other than a Trading Day or on which trading does not take place on the Principal Market (a “Holiday”), the next date that is not a Holiday.

 

(q)         [Reserved].

 

(r)         “Fundamental Transaction” means (A) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Subject Entity, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company or any of its “significant subsidiaries” (as defined in Rule 1-02 of Regulation S-X) to one or more Subject Entities, or (iii) make, or allow one or more Subject Entities to make, or allow the Company to be subject to or have its Common Stock be subject to or party to one or more Subject Entities making, a purchase, tender or exchange offer that is accepted by the holders of at least either (x) 50% of the outstanding shares of Common Stock, (y) 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock held by all Subject Entities making or party to, or Affiliated with any Subject Entities making or party to, such purchase, tender or exchange offer were not outstanding; or (z) such number of shares of Common Stock such that all Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such purchase, tender or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding shares of Common Stock, or (iv) consummate a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more Subject Entities whereby all such Subject Entities, individually or in the aggregate, acquire, either (x) at least 50% of the outstanding shares of Common Stock, (y) at least 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock held by all the Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such stock purchase agreement or other business combination were not outstanding; or (z) such number of shares of Common Stock such that the Subject Entities become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding shares of Common Stock, or (v) reorganize, recapitalize or reclassify its Common Stock, (B) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions, allow any Subject Entity individually or the Subject Entities in the aggregate to be or become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, whether through acquisition, purchase, assignment, conveyance, tender, tender offer, exchange, reduction in outstanding shares of Common Stock, merger, consolidation, business combination, reorganization, recapitalization, spin-off, scheme of arrangement, reorganization, recapitalization or reclassification or otherwise in any manner whatsoever, of either (x) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock, (y) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock not held by all such Subject Entities as of the date of this Warrant calculated as if any shares of Common Stock held by all such Subject Entities were not outstanding, or (z) a percentage of the aggregate ordinary voting power represented by issued and outstanding shares of Common Stock or other equity securities of the Company sufficient to allow such Subject Entities to effect a statutory short form merger or other transaction requiring other shareholders of the Company to surrender their shares of Common Stock without approval of the shareholders of the Company or (C) directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions, the issuance of or the entering into any other instrument or transaction structured in a manner to circumvent, or that circumvents, the intent of this definition in which case this definition shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this definition to the extent necessary to correct this definition or any portion of this definition which may be defective or inconsistent with the intended treatment of such instrument or transaction.

 

10

 

 

(s)         “Group” means a “group” as that term is used in Section 13(d) of the 1934 Act and as defined in Rule 13d-5 thereunder.

 

(t)         [Reserved].

 

(u)         [Reserved].

 

(v)         “Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

(w)         “Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

(x)         “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

 

(y)         “Principal Market” means the NYSE American, (or, if the shares of Common Stock are not listed on the NYSE American, and are listed on one or more Eligible Markets, the primary Eligible Market in which the shares of Common Stock are then listed).

 

(z)         [Reserved].

 

(aa)         “SEC” means the United States Securities and Exchange Commission or the successor thereto.

 

(bb)         “Subject Entity” means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons or Group.

 

(cc)         “Successor Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into.

 

(dd)         “Trading Day” means, as applicable, (x) with respect to all price or trading volume determinations relating to the Common Stock, any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded, provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., Eastern time) unless such day is otherwise designated as a Trading Day in writing by the Holder or (y) with respect to all determinations other than price or trading volume determinations relating to the Common Stock, any day on which The New York Stock Exchange (or any successor thereto) is open for trading of securities.

 

(ee)         [Reserved].

 

11

 

 

(ff)         “VWAP” means, for any security as of any date, the dollar volume-weighted average price for such security on the Principal Market (or, if the Principal Market is not the principal trading market for such security, then on the principal securities exchange or securities market on which such security is then traded) during the period beginning at 9:30:01 a.m., Eastern time, and ending at 4:00:00 p.m., Eastern time, as reported by Bloomberg through its “HP” function (set to weighted average) or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., Eastern time, and ending at 4:00:00 p.m., Eastern time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the VWAP cannot be calculated for such security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 13. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination, recapitalization or other similar transaction during such period.

 

[signature page follows]

 

12

 

 

IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

 

	 	ENSERVCO CORPORATION
	 	 
	 	 
	 	/s/ Marjorie A. Hargrave                                            
	 	
			Marjorie A. Hargrave, President and Chief Financial

			Officer

			

 

 

13

 

 

 

EXHIBIT A

 

EXERCISE NOTICE

 

TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

ENSERVCO CORPORATION

 

The undersigned holder hereby exercises the right to purchase _________________ of the shares of Common Stock (“Warrant Shares”) of Enservco Corporation, a Delaware corporation (the “Company”), evidenced by Warrant to Purchase Common Stock No. ___ (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1.         Exercise Price. The Exercise Price of the Warrant is $0.20 per share; therefore, the Aggregate Exercise Price for purchase of the Warrant Shares is $                           .

 

2.         Payment of Exercise Price. The Holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance with the terms of the Warrant.

 

3.         Delivery of Warrant Shares. The Company shall deliver to Holder, or its designee or agent as specified below, __________ shares of Common Stock in accordance with the terms of the Warrant. Delivery shall be made to Holder, or for its benefit, as follows:

 

☐Check here if requesting delivery as a certificate to the following name and to the following address:

 

                                                                                                                                                        

                                                                                                                                                        

                                                                                                                                                        

                                                                                                                                                        

 

☐Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

 

DTC Participant:                                                                                                                           

 

DTC Number:                                                                                                                                

 

Account Number:                                                                                                                          

 

 

Name of Registered Holder:

 

CROSS RIVER PARTNERS, L.P.

 

By:                                                                                      

 

Print Name:                                                                        

 

Title:                                                                                   

 

Tax ID:                                                                                

Facsimile:                                                                           

Email Address:                                                                   

 

Date:                                        

 

 

Exercise Notice

 

 

 

 

EXHIBIT B

 

ACKNOWLEDGMENT

 

The Company hereby acknowledges this Exercise Notice and hereby directs ______________ to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated _________, 20___, from the Company and acknowledged and agreed to by _______________.

 

 

	 	ENSERVCO CORPORATION
	 	 
	 	 
	 	                                                                       
	 	 
	 	Print Name:                                                   
	 	 
	 	Title:                                                               

 

 

 

 

 

 

Acknowledgement

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