Document:

Exhibit 101

		

			Exhibit 10.1

		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			ATRICURE, INC.
		

		
			SECOND AMENDED AND RESTATED 2014 STOCK INCENTIVE PLAN
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

		TABLE OF CONTENTS
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						1.

					
					
						Purposes

					1 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						2.

					
					
						Definitions

					1 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						3.

					
					
						Administration of the Plan

					5 
				
	
					
						﻿

					
					
						(a)

					
					
						Authority of Committee

					5 
				
	
					
						﻿

					
					
						(b)

					
					
						Binding Authority

					6 
				
	
					
						﻿

					
					
						(c)

					
					
						Delegation of Authority

					6 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						4.

					
					
						Eligibility

					6 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						5.

					
					
						Common Shares Subject to the Plan

					6 
				
	
					
						﻿

					
					
						(a)

					
					
						Authorized Number of Common Shares

					6 
				
	
					
						﻿

					
					
						(b)

					
					
						Share Counting

					7 
				
	
					
						﻿

					
					
						(c)

					
					
						Award Limitations.

					7 
				
	
					
						﻿

					
					
						(d)

					
					
						Shares to be Delivered

					8 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						6.

					
					
						Awards to Participants

					8 
				
	
					
						﻿

					
					
						(a)

					
					
						Stock Options.

					8 
				
	
					
						﻿

					
					
						(b)

					
					
						Stock Appreciation Rights

					10 
				
	
					
						﻿

					
					
						(c)

					
					
						Restricted Shares and Restricted Share Units

					11 
				
	
					
						﻿

					
					
						(d)

					
					
						Performance-Based Exception

					12 
				
	
					
						﻿

					
					
						(e)

					
					
						Unrestricted Share Awards

					13 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						7.

					
					
						Deferred Payment

					13 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						8.

					
					
						Dilution and Other Adjustments

					13 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						9.

					
					
						Change in Control

					14 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						10.

					
					
						Termination

					14 
				
	
					
						﻿

					
					
						(a)

					
					
						Termination by Death, Disability, or Retirement

					14 
				
	
					
						﻿

					
					
						(b)

					
					
						Termination for Cause

					14 
				
	
					
						﻿

					
					
						(c)

					
					
						Other Terminations

					15 
				
	
					
						﻿

					
					
						(d)

					
					
						Limitation for ISOs

					15 
				
	
					
						﻿

					
					
						(e)

					
					
						Transfers and Leaves of Absence

					15 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						11.

					
					
						Recoupment or Recovery Policy

					15 
				
	
					
						﻿

					
					
						 

					
					
						 

				

		

		

		 

		

			i

		

 

		

			 

		

		﻿
		

			
					
						12.

					
					
						Miscellaneous Provisions

					15 
				
	
					
						﻿

					
					
						(a)

					
					
						Rights as a Shareholder

					15 
				
	
					
						﻿

					
					
						(b)

					
					
						No Loans

					15 
				
	
					
						﻿

					
					
						(c)

					
					
						Assignment or Transfer

					15 
				
	
					
						﻿

					
					
						(d)

					
					
						Withholding Taxes

					15 
				
	
					
						﻿

					
					
						(e)

					
					
						No Rights to Awards

					15 
				
	
					
						﻿

					
					
						(f)

					
					
						Beneficiary Designation

					15 
				
	
					
						﻿

					
					
						(g)

					
					
						Fractional Shares

					15 
				
	
					
						﻿

					
					
						(h)

					
					
						Unfunded Plan

					15 
				
	
					
						﻿

					
					
						(i)

					
					
						Severability

					15 
				
	
					
						﻿

					
					
						(j)

					
					
						Limitation of Liability

					15 
				
	
					
						﻿

					
					
						(k)

					
					
						Successors

					15 
				
	
					
						﻿

					
					
						(l)

					
					
						Code Section 409A Compliance

					15 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						13.

					
					
						Effective Date, Amendments, Governing Law and Plan Termination

					15 
				
	
					
						﻿

					
					
						(a)

					
					
						Effective Date

					15 
				
	
					
						﻿

					
					
						(b)

					
					
						Amendments

					15 
				
	
					
						﻿

					
					
						(c)

					
					
						Governing Law

					15 
				
	
					
						﻿

					
					
						(d)

					
					
						Plan Termination

					15 
				

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			ii

		

 

		

			 

		

		ATRICURE, INC.
SECOND AMENDED AND RESTATED 2014 STOCK INCENTIVE PLAN
		

		
			﻿
		

		
			1.Purposes 
		

		
			The purposes of the Plan are to provide long-term incentives to those persons with significant responsibility for the success and growth of the Company, to align the interests of such persons with those of the Company’s shareholders, to assist the Company in recruiting, retaining and motivating employees, directors and consultants on a competitive basis and to link compensation to performance. 
		

		
			2.Definitions 
		

		
			For purposes of the Plan, the following capitalized terms shall have the meanings specified below: 
		

		
			(a)“Affiliate” has the meaning set forth in Rule 12b-2 under the Exchange Act.
		

		
			(b)“Award” means a grant of Stock Options, Stock Appreciation Rights, Restricted Shares, Restricted Share Units, or unrestricted Common Shares or any or all of them, to a Participant. 
		

		
			(c)“Award Agreement” means an agreement, either in written or electronic format, between the Company and a Participant setting forth the terms and conditions of an Award granted to the Participant. 
		

		
			(d)“Beneficial Owner” has the meaning given in Rule 13d-3 under the Exchange Act.
		

		
			(e)“Board” means the Board of Directors of the Company. 
		

		
			(f)“Cause” means with respect to any Participant, unless otherwise provided in the applicable Award Agreement (i) indictment for, conviction of, or plea of guilty or no contest by the Participant to a felony, or of any criminal act, that has an adverse effect on the Participant’s qualifications or ability to perform his duties; (ii) the unreasonable deliberate and material failure or refusal by the Participant to perform his employment duties (other than as a result of PTO, sickness, disability, illness or injury), and the failure to rectify the same within thirty (30) days after the Company shall have given notice to the Participant identifying such failure or refusal and demanding that it be rectified; (iii) the Participant’s commission of any act of fraud, embezzlement, dishonesty or other misconduct that has caused, or would reasonably be expected to cause, material injury or economic harm to the Company; (iv) an act of gross negligence on the part of the Participant that has caused, or would reasonably be expected to cause, material injury or economic harm to the Company; (v) a deliberate and material violation of a written material Company policy; or (vi) a material breach of the Plan or any change-in control or non-disclosure agreement to which Participant and the Company may be parties (or, in each case, any successor thereto or amendment thereof) which (and only if the same shall be curable) Participant fails to cure within thirty (30) days after the Company shall have given notice to the Participant identifying such breach and demanding that it be cured. Any purported termination by the Company for Cause 
		

		 

		

			1

		

 

		

			 

		

		which does not satisfy the applicable requirements of this Section (2)(f) shall be conclusively deemed to be a termination by the Company without Cause for purposes of the Plan.
		

		
			(g)“Change in Control” means the occurrence of any of the following events: 
		

		
			(i)Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities;
		

		
			(ii)The consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets;
		

		
			(iii)A change in the composition of the Board occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” means directors who either (A) are directors as of the effective date of the Plan, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but will not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company); or
		

		
			(iv)The consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.
		

		
			Notwithstanding anything herein to the contrary, and only to the extent that an Award is subject to Code Section 409A and payment of the Award pursuant to the application of the definition of “Change in Control” above would cause such Award not to otherwise comply with Code Section 409A, payment of an Award may occur upon a Change in Control only to the extent that the event constitutes a “change in the ownership or effective control” of the Company or a “change in the ownership of a substantial portion of the assets” of the Company under Code Section 409A.
		

		
			(h)“Code” means the Internal Revenue Code of 1986, as amended, and any rules, regulations or guidance promulgated thereunder.  Any reference to the Code or a section thereof shall also refer to any successor Code or section. 
		

		
			(i)“Committee” means a committee appointed by the Board consisting of at least three members of the Board, all meeting the definitions of “outside director” set forth in Code Section 162(m), “independent director” set forth in The Nasdaq Stock Market rules, and “non-employee director” set forth in Rule 16b-3 of the Exchange Act, or any successor definitions adopted for a similar purpose by the Internal Revenue Service, any national securities exchange on which the Common Shares are listed or the Securities and Exchange Commission. 
		

		 

		

			2

		

 

		

			 

		

		
			(j)“Common Share” or “Common Shares” means one or more of the shares of common stock,  par value $.001, of the Company. 
		

		
			(k)“Company” means AtriCure, Inc., a corporation organized under the laws of the State of Delaware, its subsidiaries, divisions and affiliated businesses. 
		

		
			(l)“Date of Grant” means the date on which the Committee authorizes the grant of an Award or such later date as may be specified by the Committee in such authorization. 
		

		
			(m)“Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code, provided that in the case of Awards other than ISOs, the Committee in its discretion may determine whether a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Committee from time to time.
		

		
			(n)“Effective Date” has the meaning set forth in Section 13(a). 
		

		
			(o)“Exchange Act” means the Securities Exchange Act of 1934, as amended, and any rules, regulations, schedules or guidance promulgated thereunder.  Any reference to the Exchange Act or a section thereof shall also refer to any successor Exchange Act or section. 
		

		
			(p) “Exercise Price” means the purchase price of a Common Share covered by a Stock Option or SAR, as applicable. 
		

		
			(q)“Fair Market Value” on any date means the closing price of the Common Shares as reported on The Nasdaq Stock Market or, if applicable, any other national securities exchange on which the Common Shares are principally traded, or, if there were no sales of Common Shares on such date, then on the immediately preceding date on which there were any sales of Common Shares.  If the Common Shares cease to be traded on a national securities exchange, the Fair Market Value shall be determined pursuant to a reasonable valuation method prescribed by the Committee.  In the case of an ISO (or Tandem SAR), Fair Market Value shall be determined by the Committee in accordance with Code Section 422.  For Awards intended to be exempt from Code Section 409A, Fair Market Value shall be determined by the Committee in accordance with Code Section 409A. 
		

		
			(r)“Full-Value Award” means Restricted Shares, Restricted Share Units or unrestricted Common Shares. 
		

		
			(s)“ISO” means an Incentive Stock Option satisfying the requirements of Code Section 422 and designated as an ISO by the Committee. 
		

		
			(t)“Non-Employee Director” means a member of the Board who is not an employee of the Company. 
		

		
			(u)“NQSO” means a non-qualified Stock Option that does not satisfy the requirements of Code Section 422 or that is not designated as an ISO by the Committee. 
		

		 

		

			3

		

 

		

			 

		

		
			(v)“Participant” means a person eligible to receive an Award under the Plan, as set forth in Section 4, and designated by the Committee to receive an Award subject to the conditions set forth in the Plan and any Award Agreement. 
		

		
			(w)“Performance-Based Exception” means the performance-based exception to the deductibility limitations of Code Section 162(m), as set forth in Code Section 162(m)(4)(C) and applicable Treasury Department regulations thereunder. 
		

		
			(x)“Performance Goals” means the goals established by the Committee, as described in Section 6(d)(ii). 
		

		
			(y)“Performance Measures” means the criteria set out in Section 6(d)(iii) that may be used by the Committee as the basis for a Performance Goal. 
		

		
			(z)“Performance Period” means the period established by the Committee during which the achievement of Performance Goals is assessed in order to determine whether and to what extent an Award that is conditioned on attaining Performance Goals has been earned. 
		

		
			(aa)“Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, except that such term shall not include (i)  the Company or any of its Affiliates, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of  the Company or any of its subsidiaries, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities or (iv) a corporation owned, directly or indirectly, by the shareholders of  the Company in substantially the same proportions as their ownership of  Company securities.
		

		
			(bb)“Plan” means the AtriCure, Inc.  Second Amended and Restated 2014 Stock Incentive Plan, as amended and restated from time to time. 
		

		
			(cc)“Prior Plan” means the AtriCure, Inc. 2005 Equity  Incentive Plan, as it may have been amended and restated.
		

		
			(dd)“Restricted Shares” means Common Shares that are subject to restrictions, as described in Section 6(c). 
		

		
			(ee)“Restricted Share Units” means a right, as described in Section 6(c), denominated in Common Shares to receive an amount, payable in either cash, Common Shares, Restricted Shares, or a combination thereof, equal to the value of a specified number of Common Shares. 
		

		
			(ff)“Restriction Period” means, with respect to any Full-Value Award, the period during which any risk of forfeiture or other restrictions set by the Committee, including performance restrictions, remain in effect until such time as they have lapsed under the terms and conditions of the Full-Value Award or as otherwise determined by the Committee, including the Performance Period for Full-Value Awards intended to qualify for the Performance-Based Exception. 
		

		
			(gg)“Retirement” means retirement with the Company at or after age 65 or at or after the later of age 55 and ten years of service. 
		

		 

		

			4

		

 

		

			 

		

		
			(hh)“Securities Act” means the Securities Act of 1933, as amended, and any rules, regulations, schedules or guidance promulgated thereunder.  Any reference to the Securities Act or a section thereof shall also refer to any successor Securities Act or section. 
		

		
			(ii)“Stock Appreciation Right” or “SAR” means the right, as described in Section 6(b), to receive a payment equal to the excess of the Fair Market Value of a Common Share on the date the SAR is exercised over the Exercise Price established for that SAR at the time of grant, multiplied by the number of Common Shares with respect to which the SAR is exercised. 
		

		
			(jj)“Stock Option” means the right, as described in Section 6(a), to purchase Common Shares at a specified price for a specified period of time.  Stock Options include ISOs and NQSOs. 
		

		
			(kk)“Tandem SAR” means a SAR granted in tandem with a Stock Option. 
		

		
			3.Administration of the Plan 
		

		
			(a)Authority of Committee.  The Plan shall be administered by the Committee.  Unless otherwise determined by the Board, the Compensation Committee of the Board shall serve as the Committee.  The Committee shall have all the powers vested in it by the terms of the Plan, such powers to include the sole and exclusive authority to (within the limitations described in the Plan): 
		

		
			(i)select Participants to be granted Awards under the Plan and grant Awards pursuant to the terms of the Plan; 
		

		
			(ii)determine the type, size and terms of the Awards to be granted to each Participant; 
		

		
			(iii)determine the time when Awards are to be granted and any conditions that must be satisfied before an Award is granted; 
		

		
			(iv)establish objectives and conditions for earning an Award; 
		

		
			(v)determine all other terms and conditions, not inconsistent with the terms of the Plan and any operative employment or other agreement, of any Award granted under the Plan, and determine the appropriate Award Agreement evidencing the Award; 
		

		
			(vi)determine whether the terms, conditions, and objectives for earning an Award have been met, including, without limitation, any such determination or certification, as the case may be, required for compliance with Code Section 162(m); 
		

		
			(vii)modify or waive the terms and conditions of Awards granted under the Plan, not inconsistent with the terms of the Plan and any operative employment or other agreement, accelerate the vesting, exercise or payment of an Award or cancel or suspend an Award; 
		

		
			(viii)determine whether the amount or payment of an Award should be reduced or eliminated, and determine if, when and under what conditions payment of all or any part of any Award may be deferred; 
		

		 

		

			5

		

 

		

			 

		

		
			(ix)determine the guidelines and/or procedures for the payment or exercise of Awards; 
		

		
			(x)determine whether any Awards granted to an employee should qualify for the Performance-Based Exception; 
		

		
			(xi)adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan; 
		

		
			(xii)construe, interpret, administer and implement the Plan, any Award Agreements or related documents and correct any defect, supply an omission or reconcile any inconsistency in or between the Plan, any Award Agreement or related documents; and 
		

		
			(xiii)make factual determinations with respect to the Plan and any Awards and otherwise supervise the administration of the Plan. 
		

		
			(b)Binding Authority.  The Committee’s interpretations of the Plan, and all actions taken and determinations made by the Committee pursuant to the powers vested in it under the Plan, shall be conclusive and binding on all parties, including the Company, its shareholders and all Participants. 
		

		
			(c)Delegation of Authority.  To the extent not prohibited by law or the rules of the national securities exchange on which the Company’s Common Shares are listed, the Committee may allocate its authority hereunder to one or more of its members or delegate its authority hereunder to one or more Non-Employee Directors, except that no such allocation or delegation shall be permitted with respect to Awards intended to qualify for the Performance-Based Exception, and may grant authority to employees of the Company to execute documents on behalf of the Committee or to otherwise assist in the administration and operation of the Plan. The Committee may delegate to the Company’s Chief Executive Officer, with the required approval of the Company’s Chief Financial Officer or Vice President, Human Resources, the authority to grant new hire and recognition Awards to Service Providers other than to the Chief Executive Officer, members of the Board of Directors and officers who report directly to the Chief Executive Officer representing up to an annual aggregate amount of 250,000 Shares.  When the Committee otherwise delegates its authority hereunder to one or more officers of the Company, it shall specify the total number of Awards that the officer or officers may award and the terms on which any Awards may be issued, offered or sold. In no event shall the Committee authorize any officer to designate an officer delegated authority under the Plan as a recipient of any Awards.
		

		
			4.Eligibility 
		

		
			Subject to the terms and conditions of the Plan, the Committee may select, from all eligible persons, Participants to whom Awards shall be granted under the Plan and shall determine the nature and amount of each Award.  Eligible persons include any of the following individuals: (i) any officer or key employee of the Company, (ii) any consultant (as defined in the General Instructions to the Form S-8 registration statement under the Securities Act) to the Company, and (iii) any Non-Employee Director.  All Awards shall be evidenced by an Award Agreement, and Awards may be conditioned upon the Participant’s execution of an Award Agreement. 
		

		 

		

			6

		

 

		

			 

		

		
			5.Common Shares Subject to the Plan 
		

		
			(a)Authorized Number of Common Shares.  Unless otherwise authorized by the Company’s shareholders and subject to this Section 5 and Section 8, the maximum aggregate number of Common Shares available for issuance under the Plan is 1,750,000, plus (i) the number of Common Shares that, on the Effective Date, are available to be granted under the Prior Plan but which are not then subject to outstanding awards under the Prior Plan, and (ii) the number of Common Shares subject to outstanding awards under the Prior Plan as of the Effective Date which thereafter are forfeited, settled in cash or cancelled or expire.  Upon the Effective Date, the Prior Plan will terminate; provided that all outstanding awards under the Prior Plan as of the Effective Date shall remain outstanding and shall be administered and settled in accordance with the provisions of the Prior Plan, as applicable. The maximum number of Common Shares available for issuance with respect to ISOs is 1,750,000.
		

		
			(b)Share Counting.  The following rules shall apply in determining the number of Common Shares available for grant under the Plan: 
		

		
			(i)Common Shares subject to any Award shall be counted against the maximum share limitation as one Common Share for every Common Share subject thereto. 
		

		
			(ii)To the extent that any Award is forfeited, cancelled, settled in cash, returned to the Company for failure to satisfy vesting requirements or other conditions of the Award or otherwise terminates without an issuance of Common Shares being made, the maximum share limitation shall be credited with one Common Share for each Common Share subject to such Award, and such number of credited Common Shares may again be made subject to Awards under the Plan. 
		

		
			(iii)Any Common Shares tendered by a Participant or withheld as full or partial payment of withholding or other taxes or as payment for the exercise or conversion price of an Award or repurchased by the Company with Stock Option proceeds shall not be added back to the number of Common Shares available for issuance under the Plan.  Upon exercise of a SAR, the number of Common Shares subject to the Award that are being exercised shall be counted against the maximum aggregate number of Common Shares that may be issued under the Plan on the basis of one Common Share for every Common Share subject thereto, regardless of the actual number of Common Shares used to settle the SAR upon exercise. 
		

		
			(iv)Any Common Shares underlying Awards granted through the assumption of, or in substitution for, outstanding awards previously granted to individuals who become employees of the Company as a result of a merger, consolidation, acquisition or other corporate transaction shall not, unless required by law or regulation, count against the reserve of available Common Shares under the Plan. 
		

		
			(c)Award Limitations.    Subject to the adjustment provisions of Section 8:
		

		
			(i)The maximum aggregate number of Common Shares that may be subject to Stock Options or SARs granted in any calendar year to any one Participant shall be 1,750,000 Common Shares. 
		

		 

		

			7

		

 

		

			 

		

		
			(ii)The maximum aggregate number of Common Shares that may be subject to Full-Value Awards granted in any calendar year to any one Participant shall be 1,750,000 Common Shares. 
		

		
			(d)Shares to be Delivered.  Common Shares to be delivered by the Company under the Plan may consist in whole or in part of authorized but unissued shares or treasury shares. 
		

		
			6.Awards to Participants 
		

		
			(a)Stock Options.
		

		
			(i)Grants.  Subject to the terms and conditions of the Plan, Stock Options may be granted to Participants, in such number and upon such terms and conditions as the Committee determines, and may consist of ISOs or NQSOs.  Stock options may be granted alone or with Tandem SARs.  With respect to Stock Options granted with Tandem SARs, the exercise of either such Stock Options or Tandem SARs will result in the simultaneous cancellation of the same number of Stock Options or Tandem SARs, as the case may be. The Committee shall not grant any Stock Options that become exercisable earlier than one year from the Date of Grant.
		

		
			(ii)Exercise Price.  The Exercise Price shall be equal to or, at the Committee’s discretion, greater than the Fair Market Value on the date the Stock Option is granted, unless the Stock Option was granted through the assumption of, or in substitution for, outstanding awards previously granted to individuals who became employees of the Company as a result of a merger, consolidation, acquisition or other corporate transaction, in which case the assumption or substitution shall be accomplished in a manner that permits the Stock Option to be exempt from Code Section 409A. 
		

		
			(iii)Term.  The term of Stock Options shall be determined by the Committee in its sole discretion, but in no event shall the term exceed ten years from the Date of Grant. 
		

		
			(iv)ISO Limits.  ISOs may be granted only to Participants who are employees of the Company (or of any parent or subsidiary corporation within the meaning of Code Section 424) on the Date of Grant, and may only be granted to an employee who, at the time the Stock Option is granted, does not own more than ten percent of the total combined voting power of all classes of stock of the Company (or of any parent or subsidiary corporation within the meaning of Code Section 424), unless (A) the Exercise Price is at least 110% percent of the Fair Market Value on the Date of Grant, and (B) the ISO is not exercisable after five years from the Date of Grant.  The aggregate Fair Market Value of all Common Shares, determined at the time the ISOs are granted, with respect to which ISOs are exercisable by a Participant for the first time during any calendar year (under all plans of the Company) shall not exceed $100,000 or such other amount as may subsequently be specified by the Code.  If such Fair Market Value exceeds the $100,000 limit, the ISOs exceeding the limit shall be treated as NQSOs, taking the Stock Options in the order each was granted.  The terms of all ISOs shall be consistent with and contain or be deemed to contain all provisions required to qualify as an “incentive stock option” under Code Section 422. 
		

		
			(v)No Repricing.  Subject to the adjustment provisions of Section 8, without the approval of the Company’s shareholders, (A) the Exercise Price for any outstanding Stock Option may not be decreased after the Date of Grant, (B) no outstanding Stock Option may be 
		

		 

		

			8

		

 

		

			 

		

		surrendered to the Company as consideration for the grant of a new Stock Option with a lower Exercise Price, and (C) no other modifications to any outstanding Stock Option may be made that would be treated as a “repricing” under the then applicable rules, regulations or listing requirements adopted by the national securities exchange on which the Common Shares are listed. Neither the Board nor the Committee shall offer a cash buy-out of “underwater” Stock Options, and such buyouts of “underwater” Stock Options shall be prohibited.
		

		
			(vi) Form of Payment.  Vested Stock Options may be exercised in whole or in part, and the Exercise Price shall be paid to the Company at the time of exercise, subject to any applicable rules or regulations adopted by the Committee: 
		

		
			(A)to the extent permitted by applicable law, pursuant to cashless exercise procedures that are approved by the Committee; 
		

		
			(B)through the tender of unrestricted Common Shares owned by the Participant (or by delivering a certification or attestation of ownership of such Common Shares) valued at their Fair Market Value on the date of exercise; 
		

		
			(C)in cash or its equivalent; or 
		

		
			(D)by any combination of (A), (B), and (C) above. 
		

		
			(vii)No Dividends or Shareholder Rights.  No dividends or dividend equivalents may be paid on Stock Options.  Except as otherwise provided herein, a Participant shall have no rights as a holder of Common Shares covered by a Stock Option unless and until such Common Shares have been registered to the Participant as the owner. 
		

		
			(viii)Other Restrictions.  Stock Options may be granted subject to such terms and conditions as the Committee determines, including, without limitation: forfeiture conditions, transfer restrictions, restrictions based upon the achievement of specific Performance Goals (Company-wide, divisional and/or individual) which may be based on one or more Performance Measures, time-based restrictions on vesting and/or restrictions under applicable federal or state securities laws.
		

		
			(ix)Terms and Conditions of Non-Qualified Options Granted to Non-Employee Directors.   Each Non-Employee Director shall be granted a NQSO for 50,000 Common Shares, or such other number as may be determined by the Board from time to time, upon appointment or election (the “Initial Option”) and shall be granted a NQSO for 10,000 Common Shares, or such other number as may be determined by the Board of Directors from time to time immediately after each subsequent annual meeting of shareholders if such person is serving as a Non-Employee Director at such time either by virtue of being re-elected or serving a term in excess of six months (the “Annual Option”). All grants shall be made on the date of the event giving rise to the NQSO and shall have an Exercise Price of Fair Market Value on such date.  Subject to the other terms and conditions herein, the Initial Option will vest and become exercisable as to one-quarter (1/4) of the Common Shares upon each one (1) year anniversary of the vesting commencement date, provided that the Participant continues to serve as a Director through each such date. Subject to the other terms and conditions herein, the Annual Option will vest and become exercisable as to 
		

		 

		

			9

		

 

		

			 

		

		one-half (1/2) of the Common Shares upon each one (1) year anniversary of the vesting commencement date, provided that the Participant continues to serve as a director through each such date. 
		

		
			(A)All NQSOs granted to Non-Employee Directors shall be exercisable in the manner provided herein for a term of ten years.
		

		
			(B)All NQSOs granted to Non-Employee Directors shall be transferable as provided in Section 12(c) and shall terminate in accordance with Section 10.
		

		
			(b)Stock Appreciation Rights. 
		

		
			(i)Grants.  Subject to the terms and provisions of the Plan, SARs may be granted to Participants, in such number and upon such terms and conditions as the Committee determines, and may be granted alone or as Tandem SARs.  With respect to Tandem SARs, the exercise of either such Stock Options or SARs will result in the simultaneous cancellation of the same number of Tandem SARs or Stock Options, as the case may be. The Committee shall not grant any SARs that become exercisable earlier than one year from the Date of Grant.
		

		
			(ii)Exercise Price.  The Exercise Price shall be equal to or, at the Committee’s discretion, greater than Fair Market Value on the date the SAR is granted, unless the SAR was granted through the assumption of, or in substitution for, outstanding awards previously granted to individuals who became employees of the Company as a result of a merger, consolidation, acquisition or other corporate transaction involving the Company, in which case the assumption or substitution shall be accomplished in a manner that permits the SAR to be exempt from Code Section 409A. 
		

		
			(iii)Term.  The term of a SAR shall be determined by the Committee in its sole discretion, but in no event shall the term exceed ten (10) years from the Date of Grant; provided that, each SAR granted in tandem with a Stock Option shall terminate upon the termination or exercise of the related Stock Option. 
		

		
			(iv)No Repricing.  Subject to the adjustment provisions of Section 8, without the approval of the Company’s shareholders, (A) the Exercise Price for any outstanding SAR may not be decreased after the Date of Grant, (B) no outstanding SAR may be surrendered to the Company as consideration for the grant of a new SAR with a lower Exercise Price, and (C) no other modifications to any outstanding SAR may be made that would be treated as a “repricing” under the then applicable rules, regulations or listing requirements adopted by the national securities exchange on which the Common Shares are listed. 
		

		
			(v)Form of Payment.  Vested SARs may be exercised in whole or in part, and the Committee may authorize payment of a SAR in the form of cash, Common Shares valued at its Fair Market Value on the date of the exercise or a combination thereof, or by any other method as the Committee may determine. 
		

		
			(vi)Tandem SARs.  Tandem SARs may be exercised for all or part of the Common Shares subject to the related Stock Option upon the surrender of the right to exercise the 
		

		 

		

			10

		

 

		

			 

		

		equivalent portion of the related Stock Option.  A Tandem SAR may be exercised only with respect to the Common Shares for which its related Stock Option is then exercisable.  Notwithstanding any other provision of the Plan to the contrary, with respect to a Tandem SAR granted in connection with an ISO: (A) the Tandem SAR will expire no later than the expiration of the underlying ISO; (B) the value of the payout with respect to the Tandem SAR may be for no more than 100% of the excess of the Fair Market Value of the Common Shares subject to the underlying ISO at the time the  Tandem SAR is exercised over the Exercise Price of the underlying ISO; and (C) the Tandem SAR may be exercised only when the Fair Market Value of the Common Shares subject to the ISO exceeds the Exercise Price of the ISO. 
		

		
			(vii)No Dividends or Shareholder Rights.  No dividends or dividend equivalents may be paid on SARs.  Except as otherwise provided herein, a Participant shall have no rights as a holder of Common Shares covered by a SAR unless and until such Common Shares have been registered to the Participant as the owner. 
		

		
			(viii)Other Restrictions.  SARs may be granted subject to such terms and conditions as the Committee determines, including, without limitation: forfeiture conditions, transfer restrictions, restrictions based upon the achievement of specific Performance Goals (Company-wide, divisional and/or individual) which may be based on one or more Performance Measures, time-based restrictions on vesting and/or restrictions under applicable federal or state securities laws.
		

		
			(c)Restricted Shares and Restricted Share Units. 
		

		
			(i)Grants.  Subject to the terms and provisions of the Plan, Restricted Shares and Restricted Share Units may be granted to Participants in such number and upon such terms and conditions as the Committee determines.  Restricted Shares will be registered in the name of the Participant and deposited with the Company or its agent in certificated or book-entry form. The Committee shall not grant any Restricted Shares or Restricted Share Units that become vested, unrestricted or payable, as the case may be, earlier than one year from the Date of Grant.
		

		
			(ii)Restrictions.  Restricted Shares or Restricted Share Units may be granted at no cost or at a purchase price determined by the Committee, which may be less than the Fair Market Value, but subject to such terms and conditions as the Committee determines, including, without limitation: forfeiture conditions, transfer restrictions, restrictions based upon the achievement of specific Performance Goals (Company-wide, divisional and/or individual) which may be based on one or more Performance Measures, time-based restrictions on vesting and/or restrictions under applicable federal or state securities laws.  Subject to Sections 9 and 10, for Awards to employees, no Restricted Shares or Restricted Share Units conditioned upon the achievement of performance shall be based on a Restriction Period of less than one year, and, except as may be determined by the Committee, any Restriction Period based solely on continued employment or service (time-based) shall be for a minimum of three years, subject to (A) pro rata or graded vesting prior to the expiration of such time-based Restriction Period, and (B) acceleration due to the Participant’s death, Disability or Retirement, in each case as specified in the applicable Award Agreement; provided that the Restriction Period applicable to the first vesting date of an Award subject to pro rata or graded vesting (as referenced in (A) above) may be for less than one year, provided the first vesting date is no earlier than the fiscal year-end date of the fiscal year 
		

		 

		

			11

		

 

		

			 

		

		during which the Award was granted.  To the extent the Restricted Shares or Restricted Share Units are intended to qualify for the Performance-Based Exception, except as may be determined by the Committee, the applicable restrictions shall be based on the achievement of Performance Goals over a Performance Period, as described in Section 6(d). 
		

		
			(iii)Transfer Restrictions.  During the Restriction Period, Restricted Shares and Restricted Share Units may not be sold, assigned, transferred or otherwise disposed of, or mortgaged, pledged or otherwise encumbered.  In order to enforce the limitations imposed upon the Restricted Shares, the Committee may (A) cause a legend or legends to be placed on any certificates evidencing such Restricted Shares, and/or (B) cause “stop transfer” instructions to be issued, as it deems necessary or appropriate. 
		

		
			(iv)Dividends and Voting Rights.  Unless otherwise determined by the Committee, during the Restriction Period, Participants who hold Restricted Shares shall have the right to receive dividends in cash or other property or other distribution or rights in respect of the Restricted Shares and shall have the right to vote the Restricted Shares as the record owners; provided that, unless otherwise determined by the Committee, any dividends or other property payable to a Participant during the Restriction Period shall be distributed to the Participant only if and when the restrictions imposed on the applicable Restricted Shares lapse.  Unless otherwise determined by the Committee, during the Restriction Period, Participants who hold Restricted Share Units shall be credited with dividend equivalents in respect of such Restricted Share Units; provided that, unless otherwise determined by the Committee, such dividend equivalents shall be distributed (without interest) to the Participant only if and when the restrictions imposed on the applicable Restricted Share Units lapse.  Participants shall have no other rights as a shareholder with respect to Restricted Share Units unless otherwise determined by the Committee.  Notwithstanding the forgoing, no Restricted Shares or Restricted Share Units intended to qualify for the Performance-Based Exception shall provide the Participant with dividend or shareholder rights unless otherwise determined by the Committee; provided, however, that if dividend rights are provided, any dividends or other property otherwise payable to the Participant during the Restriction Period with respect to such Restricted Shares or Restricted Share Units shall accumulate and be payable only if and when the specific Performance Goals are attained. 
		

		
			(v)Payment of Restricted Share Units.  Restricted Share Units that become payable in accordance with their terms and conditions shall be settled in cash, Common Shares, Restricted Shares, or a combination thereof, as determined by the Committee. 
		

		
			(vi)Ownership.  Restricted Shares shall be registered in the name of the Participant on the books and records of the Company or its designee (or by one or more physical certificates if physical certificates are issued) subject to the applicable restrictions imposed by the Plan.  At the end of the Restriction Period that applies to Restricted Shares, the number of shares to which the Participant is entitled shall be delivered to the Participant free and clear of the restrictions, either in certificated or book-entry form.  No Common Shares shall be registered in the name of the Participant with respect to Restricted Share Units, and Participants shall have no ownership interest in the Common Shares to which the Restricted Share Units relate, unless and until payment is made in Common Shares. 
		

		 

		

			12

		

 

		

			 

		

		
			(vii)Forfeiture.  If a Participant who holds Restricted Shares or Restricted Share Units fails to satisfy the restrictions, terms or conditions applicable to the Award, except as otherwise determined by the Committee, the Participant shall forfeit the Restricted Shares or Restricted Share Units.  The Committee may at any time waive such restrictions or accelerate the date or dates on which the restrictions will lapse; however, to the extent the Restricted Shares or Restricted Share Units are intended to qualify for the Performance-Based Exception, the provisions of Section 6(d)(iv) will apply. 
		

		
			(d)Performance-Based Exception. 
		

		
			(i)Grants.  Subject to the provisions of the Plan, Full-Value Awards granted in a manner that is intended to qualify for the Performance-Based Exception shall be conditioned upon the achievement of Performance Goals as the Committee shall determine, in its sole discretion. 
		

		
			(ii)Performance Goals.  Performance Goals shall be based on one or more Performance Measures, over a Performance Period, as to be determined by the Committee.  Performance Goals shall be objective (as that term is described in Treasury Regulations under Code Section 162(m)) and shall be established in writing by the Committee not later than 90 days after the beginning of the Performance Period (but in no event after 25% of the Performance Period has elapsed), and while the outcome as to the Performance Goal is substantially uncertain.
		

		
			(iii)Performance Measures.  The Performance Measure(s) may be described in terms of objectives that are related to the individual Participant or objectives that are Company-wide or related to a subsidiary, division, department, region, function or business unit of the Company, and shall consist of one or more or any combination of the following criteria: cash flow, profit, revenue, stock price, market share, sales, net income, operating income, return ratios, earnings per share, earnings (which may include an add back for taxes, interest, and/or depreciation and amortization), operating earnings, profit margins, earnings per Common Share, favorable comparison to established budgets, return on shareholders’ equity, return on assets, attainment of strategic and operational initiatives, comparisons with various stock market indices, reduction in costs or a combination of such factors, personal performance measures, working capital, total assets, net assets, return on sales, return on invested capital, gross margin, costs, shareholders’ equity, shareholder return and/or productivity or productivity improvement. The Performance Goals based on these Performance Measures may be expressed in absolute terms or relative to the performance of other entities. 
		

		
			(iv)Treatment of Awards.  With respect to any Full-Value Award that is intended to qualify for the Performance-Based Exception: (A) the Committee shall interpret the Plan and this Section 6(d) in light of Code Section 162(m), (B) the Committee shall not amend the Full-Value Award in any way that would adversely affect the treatment of the Full-Value Award under Code Section 162(m), and (C) such Full-Value Award and any dividends or other property otherwise payable with respect to such Full-Value Award shall not vest or be paid until the Committee shall first have certified that the Performance Goals have been achieved. 
		

		 

		

			13

		

 

		

			 

		

		
			(e)Unrestricted Share Awards.   
		

		
			(i)Subject to the terms and provisions of the Plan, the Committee may grant awards of unrestricted Common Shares to Participants in such number and upon such terms and conditions as the Committee determines in recognition of outstanding achievements or contributions by such Participants or otherwise.  Unrestricted Common Shares issued on a bonus basis may be issued for no cash consideration.  The Committee shall not grant any awards of unrestricted Common Shares that become vested earlier than one year from the Date of Grant.
		

		
			7.Deferred Payment 
		

		
			Subject to the terms of the Plan, the Committee may determine that all or a portion of any Award to a Participant, whether it is to be paid in cash, Common Shares or a combination thereof, shall be deferred or may, in its sole discretion, approve deferral elections made by Participants.  Deferrals shall be for such periods and upon such terms as the Committee may determine in its sole discretion, which terms shall comply with Code Section 409A. 
		

		
			8.Dilution and Other Adjustments 
		

		
			In the event of any merger, reorganization, consolidation, liquidation, recapitalization, reclassification, redesignation, stock dividend, other extraordinary distribution (whether in the form of cash, shares or otherwise), stock split, reverse stock split, spin off, combination, repurchase or exchange of shares or issuance of warrants or rights to purchase shares or other securities, or other change in corporate structure affecting the Common Shares, the Committee shall make such adjustments in the aggregate number and type of Common Shares which may be delivered and the individual award maximums as set forth in Section 5, the number and type of Common Shares subject to outstanding Awards and the Exercise Price or other price of Common Shares subject to outstanding Awards (provided the number of Common Shares subject to any Award shall always be a whole number), as may be and to the extent determined to be appropriate and equitable by the Committee, in its sole discretion, to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan.  Such adjustment shall be conclusive and binding for all purposes of the Plan.  The Committee shall determine whether and the extent to which any recapitalization, extraordinary distribution, reclassification,  repurchase or exchange of shares or other event requires any such adjustment.  Any such adjustment of an ISO or SAR shall be made in compliance with Code Sections 422 and 424, and no such adjustment shall be made that would cause any Award which is or becomes subject to Code Section 409A to fail to comply with the requirements of Code Section 409A or is exempt from Code Section 409A to become subject to Code Section 409A. 
		

		
			9.Change in Control
		

		
			Notwithstanding any other provision of the Plan to the contrary, immediately upon the occurrence of a Change in Control, the following provisions of this Section 9 shall apply except to the extent that (i) the applicable Award is assumed or an equivalent option or right substituted by the successor corporation or a parent or subsidiary of the successor corporation; or (ii) an Award Agreement provides for a different treatment (in which case the Award Agreement shall govern): 
		

		
			(a)all outstanding Stock Options and SARs vest and become fully exercisable; and 
		

		 

		

			14

		

 

		

			 

		

		
			(b)all Full-Value Awards become fully vested and, with respect to Full-Value Awards granted in a manner intended to qualify for the Performance-Based Exception, all Performance Goals or other vesting criteria will be deemed achieved at target levels and all other terms and conditions met.
		

		
			10.Termination 
		

		
			(a)Termination by Death, Disability, or Retirement.  If a Participant’s employment by the Company terminates by reason of death, Disability or Retirement, or in the case of an advisory relationship if such business relationship terminates by reason of death or Disability, any Award held by such Participant, unless otherwise determined by the Committee at grant or otherwise interpreted pursuant to Section 12(l) hereof, shall be fully vested and may thereafter be exercised by the Participant or by the Participant’s beneficiary or legal representative, for a period of one (1) year following termination of employment, in the case of death or Disability, and 90 days in the case of Retirement, or such longer period as the Committee may specify at or after grant in all cases other than ISOs, or until the expiration of the stated term of such Award, whichever period is shorter; provided that, for Full-Value Awards intended to qualify for the Performance-Based Exception, no vesting may occur or no distribution may be made in the case of Retirement prior to the attainment of the Performance Goals. 
		

		
			(b)Termination for Cause.  If a Participant’s employment or service terminates for Cause, (i) all Stock Options and SARs (or portions thereof) which have not been exercised, whether vested or not, and (ii) all unvested Full-Value Awards, shall immediately be forfeited upon termination, including such Awards that are subject to performance conditions (or unearned portions thereof). 
		

		
			(c)Other Terminations.  If a Participant’s employment or service terminates, voluntarily or involuntarily, for any reason other than death, Disability, Retirement or Cause, (i) any vested portion of Stock Options or SARs held by the Participant at the time of termination may be exercised for a period of three months (or such other period as the Committee may specify at or after the time of grant) from the termination date, or until the expiration of the original term of the Stock Option or SAR, whichever period is shorter, (ii) no unvested portion of any Stock Option or SAR shall become vested, including such Awards that are subject to performance conditions (or unearned portions thereof), and (iii) all unvested Full-Value Awards, including such Awards that are subject to performance conditions (or unearned portions thereof), shall immediately be forfeited upon termination. 
		

		
			(d)Limitation for ISOs.  No ISO may be exercised more than three months following termination of employment for any reason (including Retirement) other than death or Disability, nor more than one year following termination of employment for the reason of death or Disability (as defined in Code Section 422), or such Award will no longer qualify as an ISO and shall thereafter be, and receive the tax treatment applicable to, a NQSO.  For this purpose, a termination of employment is cessation of employment, under the rules applicable to ISOs, such that no employment relationship exists between the Participant and the Company. 
		

		
			(e)Transfers and Leaves of Absence.  The transfer of a Participant within the Company shall not be deemed a termination of employment except as required by Code Sections 422 and 
		

		 

		

			15

		

 

		

			 

		

		409A, and other applicable laws.  The following leaves of absences are not deemed to be a termination of employment: 
		

		
			(i)if approved in writing by the Company, for military service, sickness or any other purpose approved by the Company, and the period of absence does not exceed 90 days; 
		

		
			(ii)if in excess of 90 days, if approved in writing by the Company, but only if the Participant’s right to reemployment is guaranteed by statute or contract and provided that the Participant returns to work within 30 days after the end of such absence; and 
		

		
			(iii)subject to the restrictions of Code Section 409A and to the extent that such discretion is permitted by law, if the Committee determines in its discretion that the absence is not a termination of employment. 
		

		
			11.Recoupment or Recovery Policy
		

		
			Any Award shall be subject to forfeiture or repayment pursuant to the terms of any applicable compensation recoupment or recovery policy adopted by the Company, Committee or Board, as thereafter amended, including any policy adopted to comply with the rules of any national securities exchange on which the Common Shares are traded or the Securities and Exchange Commission. 
		

		
			12.Miscellaneous Provisions
		

		
			(a)Rights as a Shareholder.  Except as otherwise provided herein, a Participant shall have no rights as a shareholder with respect to Awards hereunder, unless and until the Common Shares have been registered to the Participant as the owner. 
		

		
			(b)No Loans.  No loans from the Company to Participants shall be permitted in connection with the Plan. 
		

		
			(c)Assignment or Transfer.  Except as otherwise provided under the Plan, no Award or any rights or interests therein shall be transferable other than by will or the laws of descent and distribution.  The Committee may, in its discretion, provide that an Award (other than an ISO) is transferable without the payment of any consideration to a Participant’s family member, subject to such terms and conditions as the Committee may impose.  For this purpose, “family member” has the meaning given to such term in the General Instructions to the Form S-8 registration statement under the Securities Act.  All Awards shall be exercisable, during the Participant’s lifetime, only by the Participant or a person who is a permitted transferee pursuant to this Section 12(c).  Once awarded, the Common Shares (other than Restricted Shares) received by Participants may be freely transferred, assigned, pledged or otherwise subjected to lien, subject to the restrictions imposed by the Securities Act, Section 16 of the Exchange Act and the Company’s Insider Trading Policy, each as amended. Notwithstanding the foregoing, the Committee may, with respect to particular Awards, establish or modify the terms of the Award to allow the Award to be transferred at the request of a Participant to trusts established by a Participant or as to which a Participant is a grantor or to the spouse or lineal descendants of a Participant or otherwise for personal and tax planning purposes of a Participant. If the Committee allows such transfer, such Awards shall not be exercisable for a period of six months following the action of the Committee.
		

		 

		

			16

		

 

		

			 

		

		
			(d)Withholding Taxes.  The Company shall have the right to deduct from all Awards paid in cash to a Participant any taxes required by law to be withheld with respect to such Awards.  All statutory minimum applicable withholding taxes arising with respect to Awards paid in Common Shares to a Participant shall be satisfied by the Company retaining Common Shares having a Fair Market Value on the date the tax is to be determined that is equal to the amount of such statutory minimum applicable withholding tax (rounded, if necessary, to the next lowest whole number of Common Shares); provided, however, that, subject to any restrictions or limitations that the Company deems appropriate, a Participant may elect to satisfy such statutory minimum applicable withholding tax through cash or cash proceeds. 
		

		
			(e)No Rights to Awards.  Neither the Plan nor any action taken hereunder shall be construed as giving any person any right to be retained in the employ or service of the Company, and the Plan shall not interfere with or limit in any way the right of the Company to terminate any person’s employment or service at any time.  Except as set forth herein, no employee or other person shall have any claim or right to be granted an Award under the Plan.  By accepting an Award, the Participant acknowledges and agrees that (i) the Award will be exclusively governed by the Plan, including the right of the Company to amend or cancel the Plan at any time without the Company incurring liability to the Participant (except, to the extent the terms of the Award so provide, for Awards already granted under the Plan), (ii) the Participant is not entitled to future award grants under the Plan or any other plan, and (iii) the value of any Awards received shall be excluded from the calculation of termination or other severance payments or benefits. 
		

		
			(f)Beneficiary Designation.  To the extent allowed by the Committee, each Participant under the Plan may name any beneficiary or beneficiaries to whom any benefit under the Plan is to be paid in case of his or her death before he or she receives all of such benefit.  Unless the Committee determines otherwise, each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Committee and shall be effective only when received in writing by the Company during the Participant’s lifetime.  In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate. 
		

		
			(g)Fractional Shares.  Fractional Common Shares shall not be issued or transferred under an Award, but the Committee may direct that cash be paid in lieu of fractional shares or may round off fractional shares, in its discretion. 
		

		
			(h)Unfunded Plan.  The Plan shall be unfunded and any benefits under the Plan shall represent an unsecured promise to pay by the Company.  With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give the Participant any rights that are greater than those of a general unsecured creditor of the Company. 
		

		
			(i)Severability.  If any provision of the Plan is deemed illegal or invalid, the illegality or invalidity shall not affect the remaining provisions of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
		

		
			(j)Limitation of Liability.  Members of the Board and the Committee and officers and employees of the Company who are their designees acting under the Plan shall be fully protected 
		

		 

		

			17

		

 

		

			 

		

		in relying in good faith upon the advice of counsel and shall incur no liability except for gross or willful misconduct in the performance of their duties hereunder. 
		

		
			(k)Successors.  All obligations of the Company with respect to Awards granted under the Plan shall be binding on any successor to the Company, whether as a result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 
		

		
			(l)Code Section 409A Compliance.  Each Award granted under the Plan is intended to be either exempt from or in compliance with the requirements of Code Section 409A and any regulations or guidance that may be adopted thereunder, including any transition relief available under applicable guidance.  The Plan may be amended or interpreted by the Committee as it determines appropriate in accordance with Code Section 409A in order for the Plan and Awards to comply with Code Section 409A.  If a Participant is a “specified employee” as defined in Code Section 409A at the time of the Participant’s separation from service with the Company, then solely to the extent necessary to avoid the imposition of any additional tax under Code Section 409A, the commencement of any payments or benefits under an Award shall be deferred until the date that is six months following the Participant’s separation from service (or such other period as required to comply with Code Section 409A).  Notwithstanding the foregoing, the Company does not guarantee that Awards under the Plan will comply with Code Section 409A and the Committee is under no obligation to make any changes to Awards to cause such compliance.
		

		
			13.Effective Date, Amendments, Governing Law and Plan Termination 
		

		
			(a)Effective Date.  The Effective Date of the Plan is the date on which the Company’s shareholders approve the Plan at a duly held shareholder meeting. 
		

		
			(b)Amendments.    
		

		
			(i)Amendment of the Plan.  The Committee or the Board may at any time terminate or amend the Plan in whole or in part, but no such action shall materially and adversely affect any rights or obligations with respect to any Awards granted prior to the date of such termination or amendment without the consent of the affected Participant, except to the extent that the Committee reasonably determines that such termination or amendment is necessary or appropriate to comply with applicable law or the rules and regulations of any stock exchange on which the Common Shares are traded or to preserve any intended favorable, or avoid any unintended unfavorable, tax effects for the Company, Plan or Participants.  Notwithstanding the foregoing, unless the Company’s shareholders shall have first approved the amendment, no amendment of the Plan shall be effective if the amendment would: (A) increase the maximum number of Common Shares that may be delivered under the Plan or to any one individual (except to the extent made pursuant to Section 8 hereof), (B) extend the maximum period during which Awards may be granted under the Plan, (C) add to the types of awards that can be made under the Plan, (D) modify the requirements as to eligibility for participation in the Plan, (E) permit a repricing or decrease the Exercise Price to less than the Fair Market Value on the Date of Grant of any Stock Option or SAR, except for adjustments made pursuant to Section 8, (F) materially increase benefits to Participants, or (G) otherwise require shareholder approval pursuant to the 
		

		 

		

			18

		

 

		

			 

		

		Plan or applicable law or the rules of the principal securities exchange on which Common Shares are traded. 
		

		
			(ii)Amendment of Awards.  The Committee may amend, prospectively or retroactively, the terms of an Award, provided that no such amendment is inconsistent with the terms of the Plan or would materially and adversely affect the rights of any Participant without his or her written consent. 
		

		
			(c)Governing Law.  To the extent not preempted by Federal law, the Plan and all Award Agreements are construed in accordance with and governed by the laws of the State of Delaware.  The Plan is not intended to be governed by the Employment Retirement Income Security Act of 1974, and shall be so construed and administered. 
		

		
			(d)Plan Termination.  No Awards shall be made under the Plan after the tenth anniversary of the Effective Date. 
		

		
			﻿
		

		
			﻿
		

		 

		

			19Exhibit

Exhibit 10.1
TENTH AMENDMENT TO THIRD AMENDED 
AND RESTATED CREDIT AGREEMENT
THIS TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (the "Tenth Amendment to Third Amended and Restated Credit Agreement", or this "Amendment") is entered into as of May ___, 2016, among VANGUARD NATURAL GAS, LLC, a Kentucky limited liability company ("Borrower"), CITIBANK, N.A., as Administrative Agent and L/C Issuer (the "Administrative Agent"), and the financial institutions party hereto (the "Lenders").
R E C I T A L S
A.    Borrower, the financial institutions signing as Lenders and Administrative Agent are parties to a Third Amended and Restated Credit Agreement dated as of September 30, 2011, and as amended by a First Amendment to Third Amended and Restated Credit Agreement dated as of November 30, 2011, and as amended by a Second Amendment to Third Amended and Restated Credit Agreement dated as of June 29, 2012, and as amended by a Third Amendment to Third Amended and Restated Credit Agreement dated as of December 31, 2012, and as amended by a Fourth Amendment to Third Amended and Restated Credit Agreement dated as of April 16, 2013, and as amended by a Fifth Amendment to Third Amended and Restated Credit Agreement dated as of November 5, 2013, and as amended by a Sixth Amendment to Third Amended and Restated Credit Agreement dated as of April 30, 2014, and as amended by a Seventh Amendment to Third Amended and Restated Credit Agreement dated as of October 30, 2014, and as amended by an Eighth Amendment to Third Amended and Restated Credit Agreement dated as of June 3, 2015, and as amended by a Ninth Amendment to Third Amended and Restated Credit Agreement dated as of November 6, 2015 (collectively, the "Original Credit Agreement"). 
B.    Borrower has requested certain amendments to the Original Credit Agreement as set forth herein.  Accordingly, the parties hereto desire to amend the Original Credit Agreement as hereinafter provided.
NOW, THEREFORE, in consideration of these premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Same Terms.  All terms used herein which are defined in the Original Credit Agreement shall have the same meanings when used herein, unless the context hereof otherwise requires or provides.  In addition, (i) all references in the Loan Documents to the "Agreement" shall mean the Original Credit Agreement, as amended by this Amendment, as the same shall hereafter be amended from time to time, and (ii) all references in the Loan Documents to the "Loan Documents" shall mean the Loan Documents, as amended by this Amendment or the Modification Papers, as the same shall hereafter be amended from time to time.  In addition, the following terms have the meanings set forth below:
"Effective Date" means the date on which the conditions specified in Section 2 below are satisfied (or waived in writing by the Administrative Agent).
"Modification Papers" means this Amendment, the Guaranty/Debtor Confirmation Letters and each of the other certificates, documents and agreements executed in connection with the transactions contemplated by this Amendment.
2.
    Conditions Precedent.  The obligations, agreements and waivers of Lenders as set forth in this Amendment are subject to the satisfaction (in the opinion of Administrative Agent), unless waived in writing by Administrative Agent, of each of the following conditions:
(a)
    Tenth Amendment to Third Amended and Restated Credit Agreement.  This Amendment shall be executed and delivered by the Borrower and the Required Lenders.
(b)
    Guaranty/Debtor Confirmation Letters.  The Administrative Agent shall have received a letter (each, a "Guaranty/Debtor Confirmation Letter") executed by each Loan Party (other than Borrower) in favor of Administrative Agent confirming that the Security Instruments previously executed by it remain in full force and effect to secure or guaranty, as applicable, the Obligations, as modified by this Agreement.
(c)
    Fees and Expenses.  Administrative Agent shall have received payment of all out-of-pocket fees and expenses (including reasonable attorneys' fees and expenses) incurred by Administrative Agent in connection with the preparation, negotiation and execution of the Modification Papers.
(d)
    Representations and Warranties.  Administrative Agent shall have received a certificate to the effect that all representations and warranties contained herein or in the other Modification Papers or otherwise made in writing in connection herewith or therewith shall be true and correct in all material respects (except that any representation or warranty that is qualified as to materiality or any a Material Adverse Effect clause shall be true and correct in all respects) with the same force and effect as though such representations and warranties have been made on and as of the Effective Date except to the extent such representations and warranties expressly relate to an earlier date, such representations and warranties shall be true and correct in all material respects (except that any representation or warranty that is qualified as to materiality or any a Material Adverse Effect clause shall be true and correct in all respects) as of such earlier date.
(e)
    No Event of Default.   No Default or Event of Default exists or will exist as a result of the execution of this Amendment. 
3.
    Amendments to Original Credit Agreement.  Subject to the satisfaction of the conditions set forth in Section 2 hereof, on and as of the Effective Date:
(a)
    Section 1.02 of the Original Credit Agreement shall be amended by adding the following definitions in alphabetical order thereto:
"Bail-In Action" means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.
"Bail-In Legislation" means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.
"EEA Financial Institution" means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.
"EEA Member Country" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.
"EEA Resolution Authority" means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.
"EU Bail-In Legislation Schedule" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.   
"Liquidity" means, as of any date of determination, the sum of (a) unrestricted cash and cash equivalents of the Borrower on such date (including cash and cash equivalents held in an account subject to the Administrative Agent’s Lien securing the Obligations), plus (b) the Available Funds on such date, provided that if a Borrowing Base Deficiency exists on such date, "Liquidity" means (x) unrestricted cash and cash equivalents of the Borrower on such date (including cash and cash equivalents held in an account subject to the Administrative Agent’s Lien securing the Obligations) minus (y) the Borrowing Base Deficiency on such date.
"Write-Down and Conversion Powers" means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.
(b)
    The following definition in Section 1.02 shall be amended and restated to read in its entirety as follows:
"Lender Insolvency Event" means that (i) a Lender or its Parent Company is insolvent, or is generally unable to pay its debts as they become due, or admits in writing its inability to pay its debts as they become due, or makes a general assignment for the benefit of its creditors, (ii) such Lender or its Parent Company is the subject of a bankruptcy, insolvency, reorganization, liquidation or similar proceeding, or a receiver, trustee, conservator, intervenor or sequestrator, or a similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation, or any other state or federal regulatory authority acting in such a capacity, has been appointed for such Lender or its Parent Company, or such Lender or its Parent Company has taken any action in furtherance of or indicating its consent to or acquiescence in any such proceeding or appointment or (iii) such Lender or its Parent Company has become the subject of a Bail-In Action, provided that a Lender Insolvency Event shall not occur solely by virtue of the ownership or acquisition of any Equity Interest in that Lender or its Parent Company by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender; provided further that a Lender Insolvency Event shall not occur solely by virtue of the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official by a supervisory authority or regulator with respect to a Lender or its Parent Company under the Dutch Financial Supervision Act 2007 (as amended from time to time and including any successor legislation).
(c)
    Article VII of the Original Credit Agreement shall be amended to insert a new Section 7.26 immediately after Section 7.25 thereof to read in its entirety as follows:
Section 7.26.    Neither the Parent, the Borrower, nor any Subsidiary is an EEA Financial Institution.
(d)
    Section 8.11(a) of the Original Credit Agreement shall be amended and restated to read in its entirety as follows:
(a)    The Borrower at its sole expense will, and will cause the Parent and each Subsidiary to, promptly execute and deliver to the Administrative Agent all such other documents, agreements and instruments reasonably requested by the Administrative Agent to comply with, cure any defects or accomplish the conditions precedent, covenants and agreements of the Borrower, the Parent or any Subsidiary, as the case may be, in the Loan Documents, including Notes (and to deliver a Note to any Lender at its request), or to further evidence and more fully describe the collateral intended as security for the Obligations, or to correct any omissions in this Agreement or the Security Instruments, or to state more fully the obligations secured therein, or to perfect, protect or preserve any Liens created pursuant to this Agreement or any of the Security Instruments or the priority thereof, or to make any recordings, file any notices or obtain any consents, all as may be reasonably necessary or appropriate, in the sole discretion of the Administrative Agent, in connection therewith.  Borrower does hereby grant Administrative Agent a special power of attorney to act in the name, place and stead of Borrower for the purpose of taking any and all actions requested by Administrative Agent to be taken by Borrower and the other Loan Parties pursuant to this Section 8.11(a).  The special power of attorney herein granted may be exercised any time after the expiration of 15 days after a request made by Administrative Agent for an action under this Section 8.11(a) has not been taken or made; provided, however, so long as no Event of Default exists, if and for so long as Borrower, Parent or any other Loan Party is diligently pursuing such requested action the Administrative Agent shall refrain from utilizing such power of attorney without Borrower’s written consent.  Borrower recognizes that such power of attorney is in favor of Administrative Agent and is coupled with an interest under this Agreement and, thus, irrevocable as long as this Agreement is in force and effect.  All Persons dealing with Administrative Agent, or any officer thereof, or any substitute, shall be fully protected in treating the powers and authorities conferred by this Section as continuing in full force and effect until advised by Administrative Agent of the occurrence of the termination of all of the Aggregate Commitments and payment in full of all Obligations (other than contingent indemnification obligations), the expiration or termination of all Letters of Credit (other than Letters of Credit as to which other arrangements satisfactory to the Administrative Agent and the Issuing Bank shall have been made), and the expiration or termination of all Secured Swap Agreements (other than Secured Swap Agreements and Secured Treasury Management Agreement as to which other arrangements satisfactory to the Swap Lender or Treasury Management Bank, as applicable, shall have been made).
(e)
    Each reference to "80%" occurring in the fourth, seventh and thirteenth lines of Section 8.14(a) of the Original Credit Agreement shall be replaced with a reference to "95%".
(f)
    Section 9.04(b) of the Original Credit Agreement shall be amended by (i) deleting the "or" at the end of clause (ii) thereof and replacing the "." at the end of clause (iii) with "; or", and (ii) adding the following clause (iv) at the end thereof to read in its entirety as follows:
(iv)    prior to the date that is one year after the Maturity Date, call, make or offer to make any optional or voluntary Redemption of or otherwise optionally or voluntarily Redeem (whether in whole or in part) the Senior Notes, provided that Borrower may refinance or repurchase such Senior Notes with the proceeds of other Senior Notes or Second Lien Debt issued in accordance with Section 9.02(i) or (j), as applicable, if (A) no Default or Event of Default has occurred and is continuing or would exist after giving effect to such refinancing, (B) after giving effect to such refinancing, the amount of Available Funds is not less than 10% of the Aggregate Commitments, (C) all prepayments required hereunder have been made and (D) no Borrowing Base Deficiency exists after giving effect to such refinancing; provided, however, that notwithstanding any of the requirements of this clause (iv), so long as no Default, Event of Default or Borrowing Base Deficiency has occurred and is continuing or would exist after giving effect to such Redemption, the Borrower, the Parent and any other Loan Party may at any time call, make or offer to make any optional or voluntary Redemption of or otherwise optionally or voluntarily Redeem (whether in whole or in part) the Senior Notes with proceeds of any equity issuance or contribution received by the Parent or any other Loan Party.
(g)
    Section 9.05(h) of the Original Credit Agreement shall be amended by (i) deleting the "and" at the end of clause (iii) and replacing the "." at the end of clause (iv) with ", and", and (ii) adding a new clause (v) at the end thereof to read in its entirety as follows:
"(v) no Default, Event of Default or Borrowing Base Deficiency has occurred and is continuing or would exist after giving effect to such Investment."
(h)
    Section 10.01(q)(iii) is amended by adding the phrase "or the Second Lien Debt or any other Liens permitted under Section 9.03" immediately after the phrase "under this Agreement".
(i)
    Section 10.01 shall be amended by adding the following clause (s) at the end thereof to read in their respective entireties as follows:
(s)    Any Loan Party makes any payment of principal, accrued interest, fees, expense reimbursements or other amounts under or with respect to any Senior Notes or Second Lien Debt when (A) a Default or Event of Default has occurred and is continuing or would exist after giving effect to such payment, or (B) with respect to payments made on or after September 15, 2016, after giving pro forma effect to such payment, Borrower's Liquidity is less than $50,000,000. 
(j)
    Section 10.02(a) shall be amended by adding the following sentence at the end thereof:
Administrative Agent, as a matter of right and without regard to the sufficiency of the Collateral, and without any showing of insolvency, fraud or mismanagement on the part of any Loan Party, and without the necessity of filing any judicial or other proceeding other than the proceeding for appointment of a receiver, shall be entitled to, and Borrower agrees not to contest, and not to permit any other Loan Party to contest, the appointment of a receiver or receivers of the Mortgaged Property, or any part thereof, and of the income, rents, issues and profits thereof.
(k)
    The reference to "80%" occurring in the twenty-third line of Section 12.02(b) of the Original Credit Agreement shall be replaced with a reference to "95%".
(l)
    Article XII of the Original Credit Agreement shall be amended by adding a new Section 12.23 thereto in proper order to read in its entirety as follows:
Section 12.23    Acknowledgement and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
(a)    the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and
(b)    the effects of any Bail-In Action on any such liability, including, if applicable:
(i)    a reduction in full or in part or cancellation of any such liability;
(ii)    a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or
(iii)    the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.
4.
    Borrowing Base.  
(a)
    As of the Effective Date, pursuant to Section 2.07(b) of the Credit Agreement, the Borrowing Base is reduced to $1,325,000,000, and each Lender's Commitment is reduced to the amount set forth opposite such Lender's name on Annex I attached hereto.  The Credit Agreement is deemed amended by replacing Annex I thereto with Annex I attached to this Agreement.  The foregoing adjustment of the Borrowing Base and Commitments constitutes the Scheduled Redetermination under Section 2.07(b) of the Credit Agreement for the Spring of 2016, and this Amendment constitutes the New Borrowing Base Notice with respect to such Scheduled Redetermination under Section 2.07(d) of the Credit Agreement.
(b)
    The Schedule Redetermination pursuant to clause (a) above will result in a Borrowing Base Deficiency in the amount of $103,540,064.  Borrower hereby agrees, pursuant to the terms of Section 3.04(c)(ii) of the Credit Agreement, to make principal prepayments in an aggregate amount equal to such Borrowing Base Deficiency in six equal monthly installments of $17,256,677.33 each, with the first such payment due and payable within 30 days of the Effective Date, provided that any payment greater than $17,256,677.33 made in any month will be used to offset future monthly payments in direct order of maturity.  The failure of the Borrower to comply with this Section 4(b) shall constitute an Event of Default under Section 10.01(a) of the Credit Agreement.
5.
    Limited Consent and Waiver.  Subject to the terms and conditions hereof and upon satisfaction of the conditions set forth in Section 2, the Lenders hereby consent to and waive the requirements of Section 9.01(b) of the Credit Agreement to maintain a ratio of consolidated current assets to consolidated current liabilities of not less than 1.0 to 1.0 solely for the fiscal quarter ending June 30, 2016 (the "Limited Consent").
6.
    Certain Representations.  Borrower represents and warrants that, as of the Effective Date:  (a) Borrower has full power and authority to execute the Modification Papers and the Modification Papers constitute the legal, valid and binding obligation of Borrower enforceable in accordance with their terms, except as enforceability may be limited by general principles of equity and applicable bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting the enforcement of creditors' rights generally; and (b) no authorization, approval, consent or other action by, notice to, or filing with, any governmental authority or other person is required for the execution, delivery and performance by Borrower thereof.  In addition, Borrower represents that after giving effect to this Amendment all representations and warranties contained in the Original Credit Agreement and the other Loan Documents are true and correct in all material respects (except that any representation or warranty that is qualified as to materiality shall be true and correct in all respects) on and as of the Effective Date as if made on and as of such date except to the extent that any such representation or warranty expressly relates solely to an earlier date, in which case such representation or warranty is true and correct in all material respects (except that any representation or warranty that is qualified as to materiality shall be true and correct in all respects) as of such earlier date.
7.
    FATCA Representation.  Borrower hereby certifies to the Administrative Agent and the Lenders that the obligations of the Borrower set forth in the Original Credit Agreement, as modified by this Amendment, qualify as a "grandfathered obligation" within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).  From and after the Effective Date of this Amendment, the Borrower shall indemnify the Administrative Agent, and hold it harmless from, any and all losses, claims, damages, liabilities and related interest, penalties and expenses, including, without limitation, Taxes and the fees, charges and disbursements of any counsel for any of the foregoing, arising in connection with the Administrative Agent's treating, for purposes of determining withholding Taxes imposed under FATCA, the Credit Agreement as qualifying as a "grandfathered obligation" within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).  The Borrower's obligations hereunder shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all of the Obligations under the Credit Agreement.
8.
    No Further Amendments.  Except as previously amended in writing or as amended hereby, the Original Credit Agreement shall remain unchanged and all provisions shall remain fully effective between the parties.  The Administrative Agent’s and the Lenders’ execution and delivery of, or acceptance of, this Amendment shall not be deemed to create a course of dealing or otherwise create any express or implied duty by the Administrative Agent or any such Lender to provide any other or further waivers under the same or similar circumstances in the future.  Nothing contained herein shall be deemed a waiver in respect of (or otherwise affect the Administrative Agent’s or the Lenders’ ability to enforce) any Default or Event of Default not explicitly waived by Section 5 hereof.
9.
    Acknowledgments and Agreements.  Borrower acknowledges that on the date hereof all outstanding Obligations are payable in accordance with their terms, and Borrower (i) waives any defense, offset, counterclaim or recoupment with respect thereto and (ii) releases and discharges Administrative Agent and Lenders and their officers, directors, employees, agents, shareholders, affiliates and attorneys (the "Released Parties") from any and all obligations, indebtedness, liabilities, claims, rights, causes of action or other demands whatsoever, whether known or unknown, suspected or unsuspected, in law or equity, which Borrower ever had, now has or claims to have or may have against any Released Party arising prior to the Effective Date and from or in connection with the Loan Documents or the transactions contemplated thereby, except those resulting from the gross negligence or willful misconduct of the Released Party, as determined by final non-appealable order of a court of competent jurisdiction.  Borrower, Administrative Agent, Issuing Bank and each Lender do hereby adopt, ratify and confirm the Original Credit Agreement, as amended hereby, and acknowledge and agree that the Original Credit Agreement, as amended hereby, is and remains in full force and effect.  Borrower acknowledges and agrees that its liabilities and obligations under the Original Credit Agreement, as amended hereby, and under the Loan Documents, are not impaired in any respect by this Amendment.  Any breach of any representations, warranties and covenants under this Amendment shall be an Event of Default under the Original Credit Agreement.
10.
    Limitation on Agreements.  The modifications set forth herein, including the Limited Consent, are limited precisely as written and shall not be deemed (a) to be a consent under or a waiver of or an amendment to any other term or condition in the Original Credit Agreement or any of the Loan Documents, or (b) to prejudice any right or rights which Administrative Agent now has or may have in the future under or in connection with the Original Credit Agreement and the Loan Documents, each as amended hereby, or any of the other documents referred to herein or therein. The Modification Papers shall constitute Loan Documents for all purposes. 
11.
    Confirmation of Security.  Borrower hereby confirms and agrees that all of the Security Instruments which presently secure the Obligations shall continue to secure, in the same manner and to the same extent provided therein, the payment and performance of the Obligations as described in the Original Credit Agreement as modified by this Amendment.
12.
    Counterparts.  This Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be deemed an original, but all of which constitute one instrument.  In making proof of this Amendment, it shall not be necessary to produce or account for more than one counterpart thereof signed by each of the parties hereto.
13.
    GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS; WAIVER OF JURY TRIAL.
(a)
    Governing Law.  This Amendment and the other Loan Documents and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Amendment or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the law of the State of New York.
(b)
    Submission to Jurisdiction.  The Borrower and each other Loan Party irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against the Administrative Agent, any Lender, the Issuing Bank, or any Related Party of the foregoing in any way relating to this Amendment or any other Loan Document or the transactions relating hereto or thereto, in any forum other than the courts of the State of New York sitting in New York County, and of the United States District Court of the Southern District of New York in the Borough of Manhattan, and any appellate court from any thereof, and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of such  courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by applicable law, in such federal court.  Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Amendment or in any other Loan Document shall affect any right that the Administrative Agent, any Lender or the Issuing Bank may otherwise have to bring any action or proceeding relating to this Amendment or any other Loan Document against the Borrower or any other Loan Party or its properties in the courts of any jurisdiction.
(c)
    Waiver of Venue.  The Borrower and each other Loan Party irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Amendment or any other Loan Document in any court referred to in paragraph (b) of this Section.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
(d)
    Service of Process.  Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 12.01 of the Original Credit Agreement.  Nothing in this Amendment will affect the right of any party hereto to serve process in any other manner permitted by applicable law.
(e)
    WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY.  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
14.
    Time of the Essence.  Time is of the essence of this Amendment and the Loan Documents.
15.
    Entirety, Etc.  This Amendment and all of the other Loan Documents embody the entire agreement between the parties.  THIS AMENDMENT AND ALL OF THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

[This space is left intentionally blank.  Signature pages follow.]

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – Page 1

The parties hereto have caused this Agreement to be duly executed as of the day and year first above written.
BORROWER:

VANGUARD NATURAL GAS, LLC 

By:        /s/ Richard Robert                    
Name:    Richard Robert                    
Title:      Executive Vice President and Chief Financial Officer

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-1

ADMINISTRATIVE AGENT:

CITIBANK, N.A. 
as Administrative Agent and Issuing Bank

By:        /s/ Jeff Ard                    
Name:    Jeff Ard                    
Title:      Vice President                    

LENDERS:

CITIBANK, N.A.
as a Lender

By:    /s/ Jeff Ard                    
Name:    Jeff Ard                    
Title:      Vice President                    

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-2

WELLS FARGO BANK, N.A.
as a Lender

By:        /s/ Catherine Cook                
Name:    Catherine Cook                    
Title:    Director                    

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-3

ABN AMRO CAPITAL USA LLC
as a Lender

By:    /s/ Darrel Holley                
Name:    Darrel Holley                    
Title:    Managing Director                

By:    /s/ Elizabeth Johnson                
Name:    Elizabeth Johnson                
Title:    Director                    

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-4

BANK OF AMERICA, N.A.
as a Lender

By:    /s/ Michael Clayborne                
Name:    Michael Clayborne                
Title:    Director                    

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-5

BANK OF MONTREAL
as a Lender

By:    /s/ James V. Ducote                
Name:    James V. Ducote                
Title:    Managing Director                

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-6

BARCLAYS BANK PLC
as a Lender

By:    /s/ Vanessa Kurbatskiy                
Name:    Vanessa Kurbatskiy                
Title:    Vice President                    

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-7

CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK BRANCH
as a Lender

By:    /s/ Daria Mahoney                
Name:    Daria Mahoney                    
Title:    Authorized Signatory                

By:    /s/ Trudy Nelson                
Name:    Trudy Nelson                    
Title:    Authorized Signatory                

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-8

CREDIT AGRICOLE CORPORATE & INVESTMENT BANK
as a Lender

By:    /s/ Dixon Schultz                
Name:    Dixon Schultz                    
Title:    Managing Director                

By:    /s/ Michael Willis                
Name:    Michael Willis                    
Title:    Managing Director                

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-9

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH
as a Lender

By:                            
Name:                            
Title:                            

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-10

DEUTSCHE BANK AG NEW YORK BRANCH
as a Lender

By:    /s/ Dusan Lazarov                
Name:    Dusan Lazarov                    
Title:    Director                    

By:    /s/ M Tarkington                
Name:    M Tarkington                    
Title:    Director                    

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-11

FIFTH THIRD BANK 
as a Lender

By:    /s/ Justin Bellamy                
Name:    Justin Bellamy                    
Title:    Director                    

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-12

ING CAPITAL LLC
as a Lender

By:    /s/ Juli Bieser                    
Name:    Juli Bieser                    
Title:    Managing Director                

By:    /s/ Scott Lamoreaux                
Name:    Scott Lamoreaux                
Title:    Director                    

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-13

JPMORGAN CHASE BANK, N.A.
as a Lender

By:    /s/ Darren Vanek                
Name:    Darren Vanek                    
Title:    Executive Director                

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-14

NATIXIS, NEW YORK BRANCH
as a Lender

By:    /s/ Kenyatta B. Gibbs                
Name:    Kenyatta B. Gibbs                
Title:    Director                    

By:    /s/ Carlos Quinteros                
Name:    Carlos Quinteros                
Title:    Managing Director                

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-15

PNC BANK NATIONAL ASSOCIATION
as a Lender

By:    /s/ John Engel                    
Name:    John Engel                    
Title:    Vice President                    

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-16

ROYAL BANK OF CANADA
as a Lender

By:    /s/ Don J. McKinnerney                
Name:    Don J. McKinnerney                
Title:    Authorized Signatory                

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-17

SUMITOMO MITSUI BANKING CORPORATION
as a Lender

By:    /s/ Ryo Suzuki                    
Name:    Ryo Suzuki                    
Title:    General Manager                

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-18

THE BANK OF NOVA SCOTIA
as a Lender

By:                            
Name:                            
Title:                            

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-19

CITIZENS BANK, N.A.
as a Lender

By:    /s/ Scott Donaldson                
Name:    Scott Donaldson                
Title:    Senior Vice President                

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-20

U.S. BANK NATIONAL ASSOCIATION
as a Lender

By:                            
Name:                            
Title:                            

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-21

UBS AG, STAMFORD BRANCH
as a Lender

By:    /s/ Houssem Daly    
Name:    Houssem Daly    
Title:    Associate Director, Banking Products Services, US

By:    /s/ Darlene Arias    
Name:    Darlene Arias    
Title:    Director    

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-22

BRANCH BANKING AND TRUST COMPANY
as a Lender

By:                            
Name:                            
Title:                            

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-23

CAPITAL ONE, NATIONAL ASSOCIATION
as a Lender

By:    /s/ Matthew Brice                
Name:    Matthew Brice                    
Title:    Vice President                    

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-24

COMERICA BANK
as a Lender

By:                            
Name:                            
Title:                            

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-25

COMMONWEALTH BANK OF AUSTRALIA
as a Lender

By:    /s/ Sanjay Remond                
Name:    Sanjay Remond                    
Title:    Director                    

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-26

MORGAN STANLEY BANK, N.A.
as a Lender

By:    /s/ Kevin Newman                
Name:    Kevin Newman                    
Title:    Authorized Signatory                

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-27

MORGAN STANLEY SENIOR FUNDING, INC.
as a Lender

By:    /s/ Kevin Newman                
Name:    Kevin Newman                    
Title:    Vice President                    

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-28

ASSOCIATED BANK, N.A.
as a Lender

By:    /s/ Farhan Iqbal                    
Name:    Farhan Iqbal                    
Title:    Senior Vice President                

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-29

AMEGY BANK NATIONAL ASSOCIATION
as a Lender

By:                            
Name:                            
Title:                            

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-30

WHITNEY BANK
as a Lender

By:    /s/ Liana Tchernysheva                
Name:    Liana Tchernysheva                
Title:    Senior Vice President                

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-31

THE HUNTINGTON NATIONAL BANK
as a Lender

By:    /s/ Christopher Renyi                
Name:    Christopher Renyi                
Title:    Vice President                    

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-32

SUNTRUST BANK
as a Lender

By:    /s/ Janet R. Naifeh                
Name:    Janet R. Naifeh                    
Title:    Senior Vice President                

TENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT – S-33

ANNEX I
List of Applicable Percentages and Commitments as of the  
Effective Date of the Tenth Amendment to Third Amended and Restated Credit Agreement
	
							
	 
	Name of Lender
	Applicable Percentage
	Commitment

	1
	Citibank, N.A.
	3.908
	%
	

	$51,778,557.11
	

	2
	Wells Fargo Bank, N.A.
	4.459
	%
	

	$59,080,661.32
	

	3
	Bank of America, N.A.
	3.657
	%
	

	$48,459,418.84
	

	4
	Bank of Montreal
	3.657
	%
	

	$48,459,418.84
	

	5
	Barclays Bank PLC
	3.657
	%
	

	$48,459,418.84
	

	6
	Credit Agricole Corporate & Investment Bank
	3.657
	%
	

	$48,459,418.84
	

	7
	Deutsche Bank AG New York Branch
	3.657
	%
	

	$48,459,418.84
	

	8
	JPMorgan Chase Bank, N.A.
	3.657
	%
	

	$48,459,418.84
	

	9
	Royal Bank of Canada
	3.657
	%
	

	$48,459,418.84
	

	10
	The Bank of Nova Scotia
	3.657
	%
	

	$48,459,418.84
	

	11
	Citizens Bank, N.A.
	3.657
	%
	

	$48,459,418.84
	

	12
	U.S. Bank National Association
	3.657
	%
	

	$48,459,418.84
	

	13
	UBS AG, Stamford Branch
	3.657
	%
	

	$48,459,418.84
	

	14
	Fifth Third Bank
	3.657
	%
	

	$48,459,418.84
	

	15
	Natixis, New York Branch
	3.657
	%
	

	$48,459,418.84
	

	16
	Credit Suisse AG, Cayman Islands Branch
	3.657
	%
	

	$48,459,418.84
	

	17
	Sumitomo Mitsui Banking Corporation
	3.657
	%
	

	$48,459,418.84
	

	18
	Canadian Imperial Bank of Commerce, New York Branch
	3.657
	%
	

	$48,459,418.84
	

	19
	PNC Bank National Association
	3.657
	%
	

	$48,459,418.84
	

	20
	ABN AMRO Capital USA LLC
	3.657
	%
	

	$48,459,418.84
	

	21
	ING Capital LLC
	3.657
	%
	

	$48,459,418.84
	

	22
	Comerica Bank
	2.756
	%
	

	$36,510,521.04
	

	23
	Morgan Stanley Bank, N.A.
	2.255
	%
	

	$29,872,244.49
	

	24
	Morgan Stanley Senior Funding, Inc.
	0.501
	%
	

	$6,638,276.56
	

	25
	Branch Banking and Trust Company
	2.756
	%
	

	$36,510,521.04
	

	26
	Capital One, National Association
	2.756
	%
	

	$36,510,521.04
	

	27
	Commonwealth Bank of Australia
	2.756
	%
	

	$36,510,521.04
	

	28
	Associated Bank, N.A.
	2.154
	%
	

	$28,544,589.18
	

	29
	Whitney Bank
	1.804
	%
	

	$23,897,795.59
	

	30
	Amegy Bank National Association
	1.603
	%
	

	$21,242,484.97
	

	31
	The Huntington National Bank
	1.403
	%
	

	$18,587,174.35
	

	32
	SunTrust Bank
	1.403
	%
	

	$18,587,174.35
	

	 
	 
	 
	 

	 
	TOTAL
	100.000
	%
	

	$1,325,000,000
	

ANNEX I, Applicable Percentages and Commitments – Page Solo

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}]]