Document:

EXHIBIT 10.1

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

This
Executive Employment Agreement (this “Agreement”) is made and entered into effective this 27th day
of November, 2018 by and between Surna Inc., a Nevada corporation whose address is 1780 55th Street, Suite A, Boulder,
Colorado 80301 (the “Company”) and Anthony K. McDonald, an adult resident of the State of Colorado (the
“Executive”). The Executive and the Company may be referred to herein individually as a “Party”
or collectively as the “Parties.”

 

AGREED
ACKNOWLEDGMENTS

 

A.       The
Company is engaged in the development, design and distribution of cultivation technologies for controlled environment agriculture
for state-regulated cannabis cultivation facilities and traditional indoor agricultural facilities, including lighting, environmental
control and air sanitation designed to meet the specific environmental conditions required for indoor cultivation and to reduce
energy and water consumption (the “Business”).

 

B.       In
connection with the Business, the Company manufactures or is developing, sells and delivers the following products and services:
(i) liquid-based process cooling and climate control systems, (ii) reflectors and lighting systems, including water-cooled reflectors,
(iii) a full-service engineering package for designing and engineering commercial scale thermodynamic systems specific to indoor
cultivation facility conditions, (iv) automation and control devices, systems and technologies used for environmental, lighting
and climate control in indoor cultivation facilities, (v) a comprehensive, hybrid cultivation facility design and building utilizing
sunlight and a high-power LED lighting system, and (vi) and other products, services, and technologies now or hereafter developed
related to the foregoing (collectively, the “Products”)

 

C.       The
Business of the Company is highly competitive and requires the creation of intimate and prolonged relationships with the Company’s
customers because of the custom products developed for individual customers, and the significance of adapting to the marketing
plans continually being created by these customers.

 

D.       The
Company has invested and will continue to invest considerable sums of time, money, and other resources in developing the confidence
and loyalty of its customers and potential customers and to recruit, train, support and compensate its employees and potential
employees. In addition, the Company expends significant amounts of time and money to attract, identify, locate, and establish
contacts and business relationships with prospective customers. The loss of these existing and prospective relationships with
customers, and with existing and potential employees, will cause substantial and irreparable harm to the Company, which cannot
be accurately or adequately compensated by money alone.

 

E.       The
Company desires to retain the services of the Executive as a member of the Company’s management team. The Executive desires
to continue such employment and commits to devote all of the Executive’s business time and attention to services benefiting
the Company. Both the Executive and the Company wish to enter into this Agreement to set forth the terms and conditions of the
Executive’s employment with the Company.

 

F.       The
Executive acknowledges that, in the course of the Executive’s employment with the Company, the Executive will frequently
come into contact with the Company’s customers and suppliers to such an extent that the Executive may be able to control
or direct, in whole or in part, the business and relationships between the Company and its customers and suppliers. Accordingly,
the Company reposes its trust in the Executive not to disrupt or otherwise misappropriate the customer and supplier relationships
developed and/or supported by the Company.

 

    	 	 	 

    	 

    

 

G.       The
Executive will also, during the course of the Executive’s employment with the Company, have frequent and close contact with
the Company’s other executive managers, salespeople, and key staff employees. As a result of the Executive’s position,
the Executive will acquire and have access to confidential information concerning the Company’s employees, prospective employees,
customers, suppliers, and prospective customers and suppliers that is not easily or generally available to the Company’s
competitors.

 

H.       The
Executive acknowledges that, by virtue of the Executive’s position with the Company, the Executive will have access to certain
secret and confidential business data and information belonging to the Company including, but not limited to: marketing plans,
financial strategies, market surveys and assessments, customer and Company technical information, financial statements, budget
data, personnel records, customer profiles and purchase requirements, product design, engineering and technical specifications,
pricing plans and strategies, sales contracts and proposals, private and confidential discussions with executive managers, legal
advice and strategies, performance evaluations, price schedules from suppliers, litigation and planned litigation, capital needs,
lists of customers and potential customers, hiring and training goals, internal operation and production reports and schedules,
compensation packages, customer account projections, licenses, promotional plans and information, corporate policies for internal
operations, bids and proposals by suppliers and to customers, identities and personal profiles of key persons at customers and
potential customers, expense data by customer, and other confidential and sensitive business information developed and maintained
by the Company.

 

I.       The
Company has a valuable and proprietary interest in the confidential information described in paragraph H above and has expended
considerable time and money to safeguard and protect such information from direct or indirect divulgence of same by its employees,
including the Executive. In addition, as part of the Company’s relationship with each of its customers, the Company assures
customers that the unique, confidential, and secret information shared by customers with the Company will be protected from disclosure
to and unauthorized use by others. Any divulgence of such information will constitute an irreparable injury to the Company and
the Company’s customers.

 

J.       The
Executive acknowledges that (i) the Executive’s position with the Company is one of great trust and confidence requiring
that the Executive exercise a high degree of loyalty, honesty, and integrity, (ii) the Executive has and will receive substantial
and adequate monetary consideration and benefits pursuant to this Agreement, (iii) the Executive has read and understood the terms
of this Agreement and signed the same as a free and voluntary act, and (iv) the Executive understands that there is no need to
continue employment with the Company, but the Executive has freely chosen to enter into this Agreement because of a desire to
take advantage of the specific and unique opportunities offered by continued employment with the Company and the additional benefits
provided for herein.

 

AGREEMENTS

 

In
consideration of the Agreed Acknowledgments and the mutual covenants and agreements set forth in this Agreement, the Parties agree
as follows:

 

1.       Acknowledgments.
The acknowledgments set forth above are accurate and are hereby incorporated by reference in this Agreement.

 

2.       Employment.
The Company hereby employs the Executive and the Executive hereby accepts employment with the Company on the terms and conditions
set forth in this Agreement.

 

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3.       Duties.
During the Term (as defined below), the Executive shall be employed by the Company as the Chief Executive Officer and President
and, as such, the Executive shall have such responsibilities and authority as are customary for such position of a company of
similar size and nature as the Company as may be assigned from time to time by the Company’s Board of Directors (the “Board”).
The Executive will also hold such other executive officer positions as the Board may appoint from time to time. The Executive
shall faithfully perform for the Company the duties of such position and shall report directly to the Board. At all times during
the Term, the Executive shall adhere to all of the Company’s policies, rules and regulations governing the conduct of its
employees, including without limitation, any compliance manual, code of ethics, employee handbook or other policies adopted by
the Company from time to time. The Company and the Executive acknowledge that the Parties have entered into that certain Indemnification
Agreement dated September 9, 2018 (“D&O Indemnity Agreement”). Effective as of the Effective Date, the
Executive hereby resigns from the Audit Committee of the Board.

 

4.       Extent
of Services. Except for illnesses and vacation periods, the Executive shall devote the Executive’s full business
time and attention and the Executive’s best efforts to the performance of the Executive’s duties and responsibilities
under this Agreement. Notwithstanding the foregoing, the Executive may participate in charitable, academic, community religious
or other non-profit activities, and in trade or professional organizations, and engage and participate in the specific activities
listed in Exhibit A hereto (the “Permitted Activities”) or such other activities as specifically
agreed to in writing by the Company in advance from time to time in the Company’s sole discretion, provided that all of
the Executive’s activities outside of the Executive’s duties to the Company, individually or in the aggregate, shall
comply with the Company’s conflict of interest policies and corporate governance guidelines as in effect from time to time,
do not otherwise interfere with the Executive’s duties and responsibilities to the Company, and do not compete with or adversely
affect the Business of the Company. Subject to the provisions of Section 11 herein, the Executive may make any passive investment
in any publicly traded entity, or own five percent (5%) or less of the issued and outstanding voting securities of any entity,
provided, in any event, that the Executive is not obligated or required to, and shall not in fact, devote any consulting or managerial
effort or services in connection therewith, except for the Permitted Activities.

 

5.       Place
of Performance. The Executive will perform the Executive’s duties for the Company from the Company’s corporate
offices in Boulder, Colorado (the “Corporate Office”), provided the Executive will travel to perform services
as required for the proper performance of the Executive’s duties under this Agreement.

 

6.       Term;
At-Will Employment; Termination. This Agreement and the Executive’s employment hereunder shall commence on November
28, 2018 (the “Effective Date”) and, subject to earlier termination as provided in this Section 6, shall continue
in full force and effect thereafter until December 31, 2020 (the “Initial Term”) and, by mutual written agreement
of the Parties, may be extended for a term of one (1) additional year (an “Extended Term”) at the end of the
Initial Term, and an additional one (1) year Extended Term at the end of each Extended Term (the last day of the Initial Term
and each such Extended Term is referred to herein as a “Term Date”). Notwithstanding any other provision of
this Agreement to the contrary, either Party may terminate this Agreement, at any time, with or without Cause (as defined herein),
by providing the other Party with 30-days’ prior written notice. During the Term (as defined below) and for so long as the
Executive is employed by Company, the Executive shall be an at-will employee of Company. The employment of the Executive by the
Company shall terminate immediately upon death of the Executive. Any termination of the Executive’s employment by the Company
or by the Executive (other than termination pursuant to death) shall be communicated by written notice of termination to the other
Party hereto in accordance with this Agreement. For purposes of this Agreement, “Term” shall mean the actual
duration of the Executive’s employment hereunder, taking into account any extensions or any termination of employment pursuant
to this Section 6, and “Date of Termination” shall mean the date the Executive’s employment is terminated
in accordance with this Section 6.

 

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7.       Compensation.

 

a.       Salary.
The Company shall pay the Executive an annualized base salary (the “Base Salary”) of $180,000 per year, which
shall be payable in equal installments in accordance with the Company’s standard payroll practice from time to time, less
customary or legally required withholdings and deductions, for periods actually worked by the Executive.

 

b.       Non-qualified
Stock Options. Upon execution of this Agreement or as soon as practicable thereafter, subject to the approval of the Board
(or an authorized committee thereof), the Company shall grant Options (as defined in the Company’s 2017 Equity Incentive
Plan, as adopted by the Board on August 1, 2017, as may be modified and amended by the Company from time to time (the “EIP”)),
which shall not be designated as Incentive Stock Options (as defined in the EIP) (the “Non-qualified Stock Options”),
to the Executive, which shall subject to the terms of the EIP and a separate Non-qualified Stock Option Agreement to be executed
by the Company and the Executive, substantially in the form attached hereto as Exhibit B. The exercise price of
the Non-qualified Stock Options shall be valued at 100% of the Fair Market Value (as defined in the EIP) on the date immediately
prior to the date such Non-qualified Stock Options are granted by the Board (the “Grant Date”). As a condition
to the Company’s obligations with respect to the Non-qualified Stock Options (including, without limitation, any obligation
to deliver any shares of the Company’s common stock upon the exercise of the Non-qualified Stock Options), the Executive
shall make arrangements satisfactory to the Company to pay to the Company the exercise price together with any federal, state,
local, or foreign taxes of any kind required to be withheld with respect to the delivery of shares of common stock underlying
the Non-qualified Stock Options. The number of Non-qualified Stock Options and the vesting schedules thereof are set forth below:

 

	Number
        of Shares of

        Common
        Stock underlying Non-qualified Stock Options
	 	Vesting
    Schedule
	 	 	 
	1,000,000
    shares	 	Vest
    and become exercisable on the Grant Date
	 	 	 
	2,000,000
    shares	 	Vest
    and become exercisable on December 31, 2019, provided 

the Executive is employed at December 31, 2019
	 	 	 
	2,000,000
    shares	 	Vest
    and become exercisable on December 31, 2020, provided 

the Executive is employed at December 31, 2020

 

In
the event that there is a “Change in Control” (as defined below) that occurs prior to the date on which the
Non-qualified Stock Options become fully vested, then 100% of the Non-qualified Stock Options not already vested shall become
vested on the date of the Change of Control, provided the Executive is employed by, or providing services to, the Company on the
date immediately preceding the date of the Change of Control. A “Change of Control” means a reorganization,
merger, statutory share exchange, or consolidation or similar transaction involving the Company, or a sale or other disposition
of all or substantially all of the assets of the Company, unless, following such transaction, all or substantially all of the
individuals and entities who were the beneficial owners of the Company’s equity and voting securities immediately prior
to such transaction beneficially own, directly or indirectly, more than fifty percent (50%) of the value of the then outstanding
equity securities and the combined voting power of the then outstanding voting securities.

 

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c.       Incentive
Bonus Program. The Executive shall be eligible to receive an annual incentive bonus (each an “Annual Incentive
Bonus”) for each completed calendar year of employment during the Term in accordance with any bonus policy adopted by
the Board (or an authorized committee thereof), as may be amended or modified from time to time. The bonus policy will provide
that the Executive shall be entitled to earn an Annual Incentive Bonus for such completed calendar year of employment based on
performance criteria determined in the sole discretion of the Board. The Annual Incentive Bonus for a completed calendar year
of employment shall be paid within forty-five (45) days following the end of the completed calendar year. Other than as set forth
in Section 9, the Executive must be employed by, or be providing services to, the Company or an affiliate of the Company on the
date an Annual Incentive Bonus is to be paid to be eligible to receive the Annual Incentive Bonus for such completed calendar
year of employment. Payment of the Annual Incentive Bonus may be made in the form of cash, stock bonus (issued pursuant to the
EIP), or a combination thereof, as determined in the sole discretion of the Board (or an authorized committee thereof). As a condition
to the Company’s obligations with respect to any stock bonus (including, without limitation, any obligation to deliver any
shares of Common Stock with respect to any stock bonus), the Executive shall make arrangements satisfactory to the Company to
pay to the Company any federal, state, local, or foreign taxes of any kind required to be withheld with respect to the delivery
of shares of Common Stock with respect to such stock bonus. The award of any Annual Incentive Bonus shall be determined by the
Board in its sole discretion.

 

d.       Restricted
Stock Units. In consideration of the grant of the foregoing Non-qualified Stock Options, the Company and the Executive
hereby agree that the 197,368 restricted stock units, which were granted to the Executive as an equity retention award in connection
with the Executive’s appointment to the Board on September 12, 2018 and which have not vested, are hereby terminated and
cancelled effective as of the date of this Agreement.

 

e.       Clawback.
Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other compensation,
paid to the Executive pursuant to this Agreement or any other agreement or arrangement with the Company which is subject to recovery
under any law, governmental regulation, or stock exchange listing requirement, will be subject to such deductions and clawback
as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement.

 

8.       Fringe
Benefits. The Company shall provide the following benefits to the Executive during the Term:

 

a.       Executive
Benefit Plans. The Executive will be eligible to participate in any employee benefit plans including, without limitation,
group insurance, profit sharing and 401(k) plans, sponsored generally by the Company for its employees as may be offered from
time to time. Notwithstanding the foregoing, the Company may modify or terminate any employee benefit plan at any time.

 

b.       Vacation.
The Executive shall accrue in accordance with the Company’s vacation policy as in effect from time to time twenty (20) days
per year of paid vacation time, provided that, any earned but unused vacation in a year may not be carried forward to future years.

 

c.       Personal
Days, Sick Leave and Holidays. The Executive shall be entitled to receive paid personal days, sick days and holidays under
the guidelines established by the Company from time to time for the Company’s executive and management employees, provided
that, any earned but unused personal and sick days in a year may not be carried forward to future years.

 

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d.       Business
Expense Reimbursement. Subject to the Company’s policies and procedures for the reimbursement of business expenses
incurred by its executive and management employees, the Company shall reimburse the Executive for reasonable expenses incurred
by the Executive in connection with the performance of the Executive’s duties pursuant to this Agreement, including, but
not limited to, travel expenses, professional conventions or similar professional functions and other reasonable business expenses.
The Executive agrees to provide the Company with receipts and/or documentation sufficient to permit the Company to take its full
business expense deduction. The Company shall have no obligation to reimburse the Executive for expenses claimed if the Executive
does not provide sufficient receipts and/or documentation. The Executive shall submit requests for reimbursement of business expenses
at least once every month. The Executive shall not be entitled to a corporate credit card, and any frequent flyer miles earned
for travel contemplated under this Agreement shall be owned by the Executive.

 

e.       Miscellaneous
Benefits. The Executive is also entitled to receive any other fringe benefits that Company may from time to time make
available generally to its management employees.

 

9.       Effects
of Termination.

 

a.       Accrued
Benefits. If the employment of the Executive should terminate at the election of the Company with or without Cause, at
the election of the Executive, due to the Executive’s death, or upon expiration of the Term, then the Company will pay or
provide to the Executive or, in the event of the Executive’s death, to the estate of the Executive:

 

i.       any
earned and accrued but unpaid Base Salary through the Date of Termination payable in accordance with the Company’s normal
payroll practices;

 

ii.       reimbursement
for any unreimbursed business expenses incurred through the Date of Termination in accordance with Section 8(d); and

 

iii.       all
other applicable payments or benefits to which the Executive shall be entitled under, and paid or provided in accordance with,
the terms of any applicable arrangement, plan or program under Section 8(a)-(c) (collectively, Sections 9(a)(i)-(iii), payable
in accordance with this Section 9(a), shall be hereafter referred to as the “Accrued Benefits”).

 

b.       Death
Benefit. If the employment of the Executive should terminate during the Term due to the Executive’s death, then
the Company will pay or provide to the estate of the Executive (in addition to the Accrued Benefits payable under Section 9(a)),
subject to Section 9(e):

 

i.       any
accrued but unpaid Annual Incentive Bonus for any completed calendar year of employment prior to the year of the Executive’s
death, payable when the applicable Annual Incentive Bonus for such completed year of employment would have otherwise been paid;
and

 

ii.       the
unvested Non-qualified Stock Options that are scheduled to vest under Section 7(b) on the December 31st immediately
following the Executive death shall continue to vest in accordance with the vesting schedule set forth in Section 7(b) notwithstanding
the Executive’s death.

 

All
other unvested Non-qualified Stock Options at the time of the Executive’s death under Section 7(b) shall be forfeited.

c.       Termination
by the Company without Cause. If the employment of the Executive should terminate at the election of the Company without
Cause, the Company will pay or provide to the Executive (in addition to the Accrued Benefits payable under Section 9(a)), subject
to Sections 9(e) and 10:

 

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i.       continued
payment of the Executive’s Base Salary for a period equal to the lesser of thirty (30) days from the Date of Termination
or the then applicable Term Date, whichever occurs first, payable in accordance with the Company’s normal payroll practices
(but off employee payroll) (the “Severance Payments”); provided that, the first payment of the Severance Payments
shall be made on the fifteenth (15th) day after the Date of Termination, and will include payment of any amount of
the Severance Payments that were otherwise due prior thereto;

 

ii.       any
accrued but unpaid Annual Incentive Bonus for any completed calendar year of employment prior to the Executive’s termination,
payable when the applicable Annual Incentive Bonus for such completed calendar year of employment would have otherwise been paid;
and

 

iii.       the
unvested Non-qualified Stock Options that are scheduled to vest under Section 7(b) on the December 31st immediately
following the Executive’s termination shall continue to vest in accordance with the vesting schedule set forth in Section
7(b) notwithstanding the Executive’s termination of employment with the Company.

 

All
other unvested Non-qualified Stock Options at the time of the Executive’s termination of employment with the Company under
Section 7(b) shall be forfeited.

 

For
purposes of this Agreement, the term “Cause” means that the Executive: (i) has been convicted of, or entered
a plea of guilty or “nolo contendere” to, a felony or a crime involving moral turpitude causing material harm
to the standing and reputation of the Company, (ii) violated any of the Executive’s obligations under this Agreement, any
award agreement under the EIP, any proprietary rights, non-competition, non-disclosure or other restrictive covenant agreements
in effect between the Executive and the Company, including such agreements in this Agreement, which are demonstrably willful or
deliberate on the Executive’s part, (iii) has willfully or deliberately failed to perform the Executive’s material
duties assigned by, or to follow the lawful orders and direction of, the Board (other than by reason of illness or temporary disability),
(iv) has engaged in illegal conduct, gross misconduct, fraud or material dishonesty in connection with the Business of the Company,
(v) has engaged in willful misappropriation or embezzlement of any of the Company’s funds or property, or (vi) has engaged
in conduct that violated the Company’s then existing written internal policies or procedures and which is detrimental to
the Business or reputation of the Company. Any of the aforesaid clauses (ii), (iii) and (vi) may be cured by the Executive, if
curable, if cured within fifteen (15) days after receipt by the Executive of written notice of the same. In the event such acts
or omissions are capable of being cured, the effective date of termination, in the event of the Executive’s failure to cure,
must be at least fifteen (15) days after such notice of termination to afford the Executive the ability to cure the same. The
Company may place the Executive on paid leave for up to sixty (60) consecutive days while it is determining whether there is a
basis to terminate Executive’s employment for Cause.

 

d.       Expiration
of Term. In the event that the Initial Term expires on December 31, 2020 without being extended by the Parties, the Company
will pay or provide to the Executive (in addition to the Accrued Benefits payable under Section 9(a)), subject to Section 9(e),
the unvested Non-qualified Stock Options that are scheduled to vest under Section 7(b) on the December 31, 2020 shall continue
to vest in accordance with the vesting schedule set forth in Section 7(b) notwithstanding the Executive’s termination of
employment with the Company.

 

e.       Release.
Any payments or benefits by the Company required under Sections 9(b), 9(c), and 9(d) shall be conditioned on and shall not be
payable unless the Company receives from the Executive (or, in the event of the Executive’s death, the estate of the Executive)
within fifteen (15) days of the Date of Termination a fully effective and non-revocable written release in form and substance
reasonably acceptable to the Company of any and all past, present or future claims that the Executive (or, in the event of the
Executive’s death, the estate of the Executive) may have against the Company or any of its affiliates and any of their respective
officers, directors and other related parties (all claims released in this Section 9(e) being referred to as the “Released
Claims”), provided, however, that the Released Claims shall not include any claim by the Executive for indemnification
from the Company relating to any act or omission prior to the Date of Termination, in each instance to the extent the Executive
would have the right to be indemnified therefor under (and not otherwise prohibited or restricted by) (i) the laws of the State
of Nevada, (ii) any Federal law applicable to the Company or the Executive, (iii) the Company’s articles of incorporation
or bylaws, as amended, and (iv) the D&O Indemnity Agreement. The Company agrees to provide a form of release within seven
(7) days of the Date of Termination.

 

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f.       Termination
of Authority. Immediately upon the Executive terminating or being terminated from the Executive’s employment with
the Company for any reason, notwithstanding anything else appearing in this Agreement or otherwise, the Executive will stop serving
the functions of the Executive’s terminated or expired position(s), including but not limited to any director or officer
positions at the Company or any of its affiliates, and shall be without any of the authority or responsibility for such position(s).

 

10.       Section
409A.

 

a.       Although
the Company does not guarantee the tax treatment of any payments under this Agreement, the intent of the Parties is that the payments
and benefits under this Agreement be exempt from, or comply with, Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”), and all Treasury Regulations and guidance promulgated thereunder (“Code Section 409A”)
and to the maximum extent permitted this Agreement shall be limited, construed and interpreted in accordance with such intent.
In no event whatsoever shall the Company or its affiliates or their respective officers, directors, employees or agents be liable
for any additional tax, interest or penalties that may be imposed on the Executive by Code Section 409A or damages for failing
to comply with Code Section 409A.

 

b.       Notwithstanding
any other provision of this Agreement to the contrary, to the extent that any reimbursement of expenses constitutes “deferred
compensation” under Code Section 409A, such reimbursement shall be provided no later than December 31st of the
year following the year in which the expense was incurred (or, where applicable, no later than such earlier time required by this
Agreement). The amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent
year. The amount of any in-kind benefits provided in one year shall not affect the amount of in-kind benefits provided in any
other year.

 

c.       For
purposes of Code Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)),
the right to receive payments in the form of installment payments shall be treated as a right to receive a series of separate
payments and, accordingly, each installment payment shall at all times be considered a separate and distinct payment. Whenever
a payment under this Agreement may be paid within a specified period, the actual date of payment within the specified period shall
be within the sole discretion of the Company.

 

d.       Notwithstanding
any other provision of this Agreement to the contrary, if at the time of the Executive’s separation from service (as defined
in Code Section 409A), the Executive is a “Specified Executive”, then the Company will defer the payment or commencement
of any nonqualified deferred compensation subject to Code Section 409A payable upon separation from service (without any reduction
in such payments or benefits ultimately paid or provided to the Executive) until the date that is six (6) months following separation
from service or, if earlier, the earliest other date as is permitted under Code Section 409A (and any amounts that otherwise would
have been paid during this deferral period will be paid in a lump sum on the day after the expiration of the six (6)- month period
or such shorter period, if applicable). The Executive will be a “Specified Executive” for purposes of this Agreement
if, on the date of the Executive’s separation from service, the Executive is an individual who is, under the method of determination
adopted by the Company designated as, or within the category of executives deemed to be, a “Specified Executive” within
the meaning and in accordance with Treasury Regulation Section 1.409A-1(i). The Company shall determine in its sole discretion
all matters relating to who is designated as a “Specified Executive” and the application of and effects of the change
in such determination.

 

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e.       Notwithstanding
anything in this Agreement or elsewhere to the contrary, a termination of employment shall not be deemed to have occurred for
purposes of any provision of this Agreement providing for the payment of any amounts or benefits that constitute “non-qualified
deferred compensation” within the meaning of Code Section 409A upon or following a termination of the Executive’s
employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and,
for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment”
or like terms shall mean “separation from service” and the date of such separation from service shall be the date
of termination for purposes of any such payment or benefits.

 

11.       Activity
Restrictions; Executive Covenants.

 

a.
       Purpose. As previously acknowledged, the Company has invested heavily
in its information systems, personnel, product development, customers, and customer development. As a member of the Company’s
executive management group, the Executive is entrusted with the fruits of these investments and the decisions to be made regarding
similar future investments. In order to participate in the benefits of a highly compensated position of trust with the Company,
the Company requires a written commitment from key employees that its trust will not be misplaced and its investments lost or
damaged. Accordingly, the Executive makes the following promises regarding the Executive’s activities.

 

b.
       Best Efforts. The Executive will at all times perform all of the Executive’s
assigned duties faithfully and exert the Executive’s best efforts to fully perform those duties pursuant to the express
and implicit terms of this Agreement to the reasonable satisfaction of the Company. During employment, the Executive will not
engage in or become interested in any calling, activity, or other business which is or may be contrary to or in competition with
the interests and welfare of the Company.

 

c.
       Inventions; Intellectual Property.

 

i.       Inventions.
Every invention and improvement conceived, invented or developed by the Executive relating to or useable in the Business then
being carried on or actively contemplated by the Company now existing or hereafter developed shall become the exclusive property
of the Company. With respect to all inventive ideas originated or developed by the Executive which relate to the Business during
the Term hereof, or as to which the Executive has acquired information as a result of the Executive’s employment with the
Company, and all patents obtained on such inventive ideas, (a) the Executive agrees to disclose and assign, without charge, all
such inventive ideas and any patents obtained thereon to the Company, but without expense to the Executive, (b) the Executive
agrees that all such inventive ideas and any patents thereof shall be the exclusive property of the Company, and (c) the Executive
will, at any and all times, furnish such information and assistance and execute such applications and other documents as may be
advisable in the opinion of the Company to obtain both domestic and foreign patents, title to which is to be vested in the Company,
and the Executive shall give the Company the full and exclusive power to prosecute all such applications and all proceedings in
connection therewith.

 

ii.       Intellectual
Property. The Executive shall promptly disclose to the Company or any successor or assign, and grant to the Company or
its successors and assigns without any separate remuneration or compensation other than that received by the Executive in the
course of the Executive’s employment, the Executive’s entire right, title and interest in and to any and all inventions,
developments, discoveries, models, or business plans or opportunities, or any other intellectual property of any type or nature
whatsoever related to the Business or the Products (“Intellectual Property”), developed by the Executive during
the period of the Executive’s employment by the Company or its affiliates and whether developed by the Executive during
or after business hours, or alone or in connection with others, that is in any way related to the Business of the Company, its
successors or assigns. This provision shall not apply to books or articles authored by the Executive during non-work hours, consistent
with the Executive’s obligations under this Agreement, so long as such books or articles (a) are not funded in whole or
in part by the Company, and (b) do not contain any confidential information or Intellectual Property of the Company. The Executive
agrees, at the Company’s expense, to take all steps necessary or proper to vest title to all such Intellectual Property
in the Company, and cooperate fully and assist the Company in any litigation or other proceedings involving any such Intellectual
Property.

 

    	 	9	 

    	 

    

 

d.
       Non-solicitation of Business. During the Term hereof and for a period
of one (1) year after the termination or expiration of this Agreement, regardless of who initiated the termination, the Executive
will not, directly or indirectly, solicit, interfere with, or divert away from the Company any customer of the Company who did
any business with the Company during the Term hereof.

 

e.
       Non-enticement of Personnel. During the Term hereof and for a period of
one (1) year after the termination or expiration of this Agreement, regardless of who initiated the termination, the Executive
shall not, directly or indirectly, as an individual or on behalf of any other person or entity, hire, solicit, recruit, or attempt
to entice away from the Company or any customer of the Company any person employed by or providing services to the Company or
any customer of the Company. The Executive shall not approach any such employees for such a prohibited purpose and shall not knowingly
cooperate in any other person or entity’s efforts to do so. The Company’s customers are third-party beneficiaries
of this covenant and shall have standing to enforce the terms of this Section 11(e) by seeking whatever equitable and legal remedies
may be available to the Company hereunder.

 

f.
       Confidentiality. The Executive shall not at any time during the Term hereof
or at any time thereafter communicate, divulge, disclose, take, or use for himself any information, knowledge, data, or materials
that were disclosed or obtained by the Executive during the Term (including, without limitation, any information and knowledge
that was conceived, created, or developed by the Executive during the course of the Executive’s employment with the Company)
which is related to the Business and the Products and is not already generally known in the Company’s trade by competitors.
This restriction on confidential information disclosure and use shall apply to knowledge or information which relates to the Business
or the business of the Company’s customers and is in the nature of a business secret of the Company or the Company’s
customers. Included within the scope of this restriction shall be the specific items identified in Section 11(h) hereof and any
other information and matters designated by the Company (verbally or in writing) to be confidential during the Term hereof. The
Company’s customers are third-party beneficiaries of the aforestated covenants in this Section 11(f) and shall have standing
to enforce its terms and seek whatever equitable or legal remedy that is necessary to repay or avoid harm to them, including,
but not limited to, any remedy available to the Company under this Agreement. The obligations of the Executive with respect to
the disclosure and use of confidential information under this Section 11(f) shall cease to the extent such information becomes
generally known in the Company’s trade by competitors through a means other than a breach of this Agreement by the Executive.
In the event the Executive is required by any legal proceedings to disclose confidential information, the Executive shall provide
the Company with prompt notice thereof so that the Company may seek an appropriate protective order and/or waive compliance by
the Executive with the provisions hereof.

 

g.
       Non-competition. During the Term hereof and for a period of one (1) year
after the termination or expiration of this Agreement, regardless of who initiated the termination, the Executive shall not, alone,
or as an agent, employee, servant, officer, partner or stockholder of any other corporation or business, directly or indirectly,
engage in employment or business activity which relates to the sale, manufacturing, or marketing of products which are competitive
with, substantially similar to, or serve the same function as the Products manufactured, marketed or sold by the Company either
now or at any time during the Term. This post-termination restriction is limited to activities in or directed at the geographic
area located in North America where the Company has sold or manufactured the Products at any time during the Term hereof. The
Executive specifically agrees, without limitation, that the Executive will not accept a similar position or perform the same or
similar responsibilities or services as performed for the Company for any business entity that is engaged in a business that is
the same, or substantially similar to, the Business (i.e., a competitor).

 

    	 	10	 

    	 

    

 

h.
       Return of Company Materials. Upon request at any time during the Term
hereof and without request at the time of the termination or expiration of this Agreement, without regard for who initiated the
termination, the Executive agrees to promptly return (without retaining any copies, summaries, files or notes derived from source
materials) all information and records regarding the Business and the Products, whether or not created by the Executive during
the Term hereof including, but not be limited to: all financial, sales and purchase data for the Business and the Company’s
customers, all financial statements and projections, all marketing surveys and analyses, all strategic planning material, all
data on the Company’s competitors, all customer information, all records regarding prospective customers of the Company,
all documents regarding pending or threatened litigation involving the Company, all legal opinions, all personnel evaluations
for the Company’s employees and outside vendors and contractors, all computer hardware and software, all price lists and
formulas, all pricing quotations or proposals, all lists or compilations of customers and prospects, all promotional materials,
all internal operating reports, all budgets and projections, all information related to the Company’s product development
and intellectual property, all product designs, specifications, drawing, engineering, bills of material and other information
related to the Products, all corporate and equipment manuals and policies, all contracts with customers and suppliers, all supplier
prices and quotations, all business correspondence, all catalogs and product samples, all sensitive customer information, all
sales reports and invoices, and all tangible and intangible property owned by the Company.

 

i.
       Non-Disparagement. During the Term and thereafter, the Executive shall
not knowingly, directly or indirectly, make negative comments or otherwise disparage the Company, any of its affiliates, or any
of their respective officers, directors, employees, shareholders, agents or businesses in any manner likely to be harmful to them
or their business reputations or personal reputations. The Company shall direct its officers, directors and senior management
team to not disparage or encourage or induce others to disparage the Executive. The foregoing shall not be violated by truthful
statements in response to legal process, required governmental testimony or filings, or administrative or arbitral proceedings
(including depositions in connection with such proceedings), provided that the Executive has given the Company prompt written
notice of any such legal process and cooperated with the Company’s efforts to seek a protective order.

 

j.
       Executive’s Representations. The Executive represents and acknowledges
that none of the activity restrictions set forth in this Section 11 will prevent the Executive from obtaining employment, cause
undue hardship, cause a relocation, or adversely impact numerous other business and employment opportunities that are not affected
by the existence of these restrictions. The Executive further acknowledges that the Executive believes the foregoing restrictions
to be reasonable and necessary to protect the Company’s legitimate business interests. Any violation of the restrictions
in this Section 11 can cause harm to the Company of an irreparable nature for which money damages alone will not suffice. The
Executive agrees that the Executive will fully and promptly disclose to any person or entity with which the Executive becomes
associated subsequent to the termination or expiration of this Agreement all of the restrictions on the Executive’s post-termination
activities. The Company shall also have the right to disclose this Agreement to any business entity hiring or utilizing the services
of the Executive subsequent to the termination or expiration of this Agreement.

 

    	 	11	 

    	 

    

 

k.
       Common Law and Trade Secrets. The Executive and the Company agree that
nothing in this Agreement shall be construed to limit or negate the common law of torts or trade secrets where it provides the
Company with broader protection than that provided herein.

 

l.
       Tolling. In the event of any violation of the provisions of this Section
11, the Executive acknowledges and agrees that the post-termination restrictions contained in this Section 11 shall be extended
by a period of time equal to the period of such violation, it being the intention of the Parties hereto that the running of the
applicable post-termination restriction period shall be tolled during any period of such violation.

 

m.
       Rights and Remedies upon Breach. The Executive acknowledges and agrees
that any breach by the Executive of any of the provisions of Section 11 (the “Restrictive Covenants”) would
result in irreparable injury and damage for which money damages would not provide an adequate remedy. Therefore, if the Executive
breaches, or threatens to commit a breach of, any of the provisions of the Restrictive Covenants, the Company and its affiliates
shall have the following rights and remedies, each of which rights and remedies shall be independent of the other and severally
enforceable, and all of which rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available
to the Company and its affiliates, under law or in equity (including, without limitation, the recovery of damages):

 

i.       the
right and remedy to have the Restrictive Covenants specifically enforced (without posting bond and without the need to prove damages)
by any court of competent jurisdiction, including, without limitation, the right to an entry against the Executive of restraining
orders and injunctions (preliminary, mandatory, temporary and permanent) against violations, threatened or actual, and whether
or not then continuing, of such covenants; and

 

ii.       the
right and remedy to require the Executive to account for and pay over to the Company or any of its affiliates all compensation,
profits, monies, accruals, increments or other benefits (collectively, “Benefits”) derived or received by the
Executive as the result of any transactions constituting a breach of the Restrictive Covenants, and the Executive shall account
for and pay over such Benefits to the Company and, if applicable, its affected affiliates.

 

12.       Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the Company’s successors and assigns
and the Executive’s personal or legal representatives, executors, administrators, heirs, distributees, devisees and legatees.
This Agreement shall not be assignable by the Executive, it being understood and agreed that this is a contract for the Executive’s
personal services. This Agreement shall not be assignable by the Company, except that the Company may assign it to an affiliate
of the Company and shall assign it in connection with a transaction involving the succession by a third party to all or substantially
all of the Company’s business and/or assets (whether direct or indirect and whether by purchase, merger, consolidation,
liquidation or otherwise). When assigned to a successor, the assignee shall assume this Agreement and expressly agree to perform
this Agreement in the same manner and to the same extent as the Company would be required to perform it in the absence of such
an assignment and the Company shall be released of all obligations hereunder. For all purposes under this Agreement, the term
“Company” shall include any successor to the Company’s business and/or assets that executes and delivers the
assumption agreement described in the immediately preceding sentence or that becomes bound by this Agreement by operation of law.
This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns as provided
in this Section 12 and is not for the benefit of, nor may any provision hereof be enforced by, any other person, except as otherwise
set forth in this Agreement.

 

    	 	12	 

    	 

    

 

13.       Alternative
Dispute Resolution.

 

a.       Coverage.
Except as otherwise expressly provided in this Agreement or by law, this Section 13 is the sole and exclusive method by which
the Executive and the Company are required to resolve any and all disputes arising out of or related to the Executive’s
employment with the Company or the termination of that employment, each of which is referred to as “Employment-Related
Dispute,” including, but not limited to, disputes arising out of or related to any of the following subjects: (i) compensation
or other terms or conditions of the Executive’s employment, (ii) application or enforcement of any Company program or policy
to the Executive, (iii) any disciplinary action or other adverse employment decision of the Company or any statement related to
the Executive’s employment, performance or termination, (iv) any policy of the Company or any agreement between the Executive
and the Company, (v) disputes over the arbitrability of any controversy or claim which arguably is or may be subject to this Section
13, (vi) claims arising out of or related to any current or future federal, state or local civil rights laws, fair employment
laws, wage and hour laws, fair labor or employment standards laws, laws against discrimination, equal pay laws, wage and salary
payment laws, plant or facility closing or layoff laws, laws in regard to employment benefits or protections, family and medical
leave laws, and whistleblower laws, including by way of example, but not limited to, the federal Civil Rights Acts of 1866, 1871,
1964 and 1991, the Pregnancy Discrimination Act of 1978, the Age Discrimination in Employment Act of 1967, the Equal Pay Act of
1963, the Fair Labor Standards Act of 1938, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of 1993,
and the Executive Retirement Income Security Act of 1978, as they have been or may be amended from time to time, or (vii) any
other dispute arising out of or related to the Executive’s employment or the Executive’s termination.

 

b.       Negotiation;
Mediation. Any Employment-Related Dispute asserted by one Party against the other Party shall be delivered in writing
to the other Party. During the fifteen (15)-day period following receipt of the assertion by the other Party, the Parties shall
attempt in good faith to negotiate a resolution of the Employment-Related Disputes so asserted. If the Employment-Related Disputes
so asserted cannot be settled through negotiation and remains unresolved after the fifteen (15)-day negotiation period, the Executive
or the Company may submit the dispute to mediation and the Parties shall attempt in good faith to resolve the dispute by mediation,
under the mediation procedure of the American Arbitration Association (“AAA”). Unless the Parties agree otherwise
in writing, the mediation shall be conducted by a single mediator, and the mediator shall be selected from an appropriate AAA
panel pursuant to the AAA rules, respectively. The mediation shall be conducted in Denver, Colorado. Unless the Parties agree
otherwise, the cost of the mediator’s professional fees and expenses and any reasonable administrative fee will be shared
and paid equally by the Parties, and each Party shall bear its own attorneys’ fees and costs of the mediation.

 

c.       
Binding Arbitration. If the Employment-Related Disputes so asserted cannot be settled through mediation and remains
unresolved thirty (30) days after the appointment of a mediator, the Executive or the Company may submit the dispute to arbitration
and the dispute shall be settled in arbitration. Notice of a demand to arbitrate a dispute by either Party shall be given in writing
to the other at their last known address. Arbitration shall be commenced by the filing by a party of an arbitration demand with
the AAA in its office in Denver, Colorado. The arbitration and resolution of the dispute shall be resolved by a single arbitrator
appointed by the AAA pursuant to AAA rules. The arbitration shall in all respects be governed and conducted by applicable AAA
rules, and any award and/or decision shall be conclusive and binding on the parties. The arbitration shall be conducted in Denver,
Colorado regardless of the particular plant or facility of the Parties. The arbitrator shall supply a written opinion supporting
any award, and judgment may be entered on the award in any court of competent jurisdiction. Each Party shall pay its own fees
and expenses for the arbitration except for any costs and charges imposed by the AAA which may be assessed against the losing
Party by the arbitrator. Any fees of the arbitrator for the arbitrator’s services shall in all events be shared and paid
equally by the Parties.

 

    	 	13	 

    	 

    

 

d.       Equitable
Relief. In the event that preliminary or permanent injunctive relief is necessary or desirable in order to prevent a Party
from acting contrary to this Agreement or to prevent irreparable harm prior to a confirmation of an arbitration award, including
without limitation as provided under Section 14(h) hereof, then either Party is authorized and entitled to commence a lawsuit
solely to obtain equitable relief against the other pending the completion of the arbitration in a court having jurisdiction over
the Parties. All rights and remedies of the parties shall be cumulative and in addition to any other rights and remedies obtainable
from arbitration.

 

e.       Severability.
In the event that any court or arbitrator finds or holds any restriction contained in this Agreement, including the Restrictive
Covenants, to be unreasonable, invalid, or unenforceable, then it is the express intent of the Parties that the court or arbitrator
so holding shall modify or amend the offending restriction or restrictions in any reasonable fashion so as to render it or them
enforceable to the fullest extent possible under prevailing law. In the event that any restriction is deemed void and unenforceable
and not suitable or capable of being so modified, then such restriction shall be severed. Each term and provision of this Agreement
is and shall be construed as severable in whole or in part, and, if any provision or the application thereof to particular circumstances
should be invalid, illegal, or unenforceable, then the remaining terms and provisions shall not be affected and shall remain fully
enforceable. An adjudication or finding of invalidity or unenforceability for one jurisdiction of any particular provision shall
not invalidate or void such provision in any other jurisdiction. It is the express intent of the Parties that all restrictions
imposed by this Agreement be construed and applied to avoid legal nullities and with a view towards enforcement whenever possible

 

14.       Miscellaneous.

 

a.       Time
of the Essence. Time is of the essence with respect to this Agreement. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not be a business day (i.e, a Saturday, Sunday or federal
holiday), then such action may be taken or such right may be exercised on the next succeeding business day.

 

b.       Entire
Agreement. This Agreement constitutes the entire understanding or agreement between the Company and the Executive relating
to the subject matter hereof and there is no understanding or agreement, oral or written, which is not set forth herein. This
Agreement supersedes and replaces any prior employment agreement or understanding, oral or written, between the Company and the
Executive. This Agreement may only be amended by a writing signed by the Company and the Executive.

 

c.       Waiver.
No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed by the Parties.
No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of any Party to exercise any right hereunder in any manner impair the exercise of any such right.

 

d.       Construction.
In the event of a conflict or ambiguity created between the Company’s current personnel manual for all employees and this
Agreement, it is agreed that this Agreement shall control. No policies, procedures, or statements of any nature by the Company
shall modify this Agreement or be construed to create express or implied obligations to the Executive. The titles and subtitles
used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.
The Parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise this Agreement
and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting Party
shall not be employed in the interpretation of this Agreement or any amendments thereto. The word “including” shall
be construed to include the words “without limitation.” In this Agreement, unless the context otherwise requires,
references to the singular shall include the plural and vice versa. The word “Company” shall be construed to include
the Company and its subsidiaries and affiliates, whether now existing or hereafter established.

 

    	 	14	 

    	 

    

 

e.       Notices.
All notices and other communications hereunder shall be in writing, and shall be deemed to have been duly given if delivered personally
or if sent by overnight courier or by certified mail, return receipt requested, postage prepaid, to the relevant address set forth
below, or to such other address as the recipient of such notice or communication shall have specified in writing to the other
Party hereto, in accordance with this Section 14(e).

 

	 	i.
    If     to the Company: 	Surna
    Inc.
	 	 	1780
    55th Street, Suite A
	 	 	Boulder,
    Colorado 80301
	 	 	Attention:
    CEO

 

ii.       If
to the Executive, at the Executive’s last residence shown on the Company’s records.

 

f.       
Public Announcements. The Company intends to publicly announce and disclose this Agreement and the subject matter
hereof in accordance with applicable laws. Until such time as the Company has publicly announced and/or disclosed this Agreement
and the subject matter hereof, the Executive shall not publicly announce or disclose to any third party the existence of this
Agreement or the subject matter hereof.

 

g.       Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by and construed and enforced in accordance with the internal laws of the State of Colorado, without regard to the principles
of conflicts of law thereof.

 

h.       Equitable
Relief. The Executive acknowledges and agrees that, notwithstanding anything herein to the contrary, including without
limitation Section 13(d) hereof, upon any breach by the Executive of the Executive’s obligations under Section 11, the Company
will have no adequate remedy at law, and accordingly shall be immediately entitled to specific performance and other appropriate
injunctive and equitable relief in a court of competent jurisdiction.

 

i.       Cooperation
in Future Matters. The Executive hereby agrees that for a period of eighteen (18) months following the Executive’s
termination of employment, the Executive shall cooperate fully with the Company’s reasonable requests relating to matters
that pertain to the Executive’s employment by the Company, including, without limitation, providing information or limited
consultation as to such matters, participating in legal proceedings, investigations or audits on behalf of the Company, or otherwise
making himself reasonably available to the Company for other related purposes. Any such cooperation shall be performed at scheduled
times taking into consideration the Executive’s other commitments. The Executive shall not be required to perform such cooperation
to the extent it conflicts with any requirements of exclusivity of services for another employer or otherwise, nor in any manner
that in the good faith belief of the Executive would conflict with the Executive’s rights under or ability to enforce this
Agreement.

 

j.       Withholding.
Any payments provided for in this Agreement shall be paid net of any applicable income tax withholding required under federal,
state or local law.

 

k.       Survival.
Notwithstanding anything in this Agreement or elsewhere to the contrary, the provisions of Sections 9, 10, 11, 12, 13 and 14 shall
survive the termination of the Executive’s employment or this Agreement.

 

l.       Execution
and Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic
mail (including pdf or any electronic signature complying with the U.S. ESIGN Act of 2000, e.g., www.docusign.com) or other transmission
method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for
all purposes.

 

[Remainder
of this page intentionally left blank. Signature page follows.]

 

    	 	15	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below.

 

	EXECUTIVE	 	COMPANY
	 	 	 	 
	 	 	Surna Inc.
	 	 	 	 
	/s/
    Anthony K. McDonald	 	By:	/s/
    Timothy J. Keating
	Anthony
    K. McDonald, Individually 	 	 	Timothy
    J. Keating, Chairman of the Board

 

[Signature
Page to Executive Employment Agreement]EX-10.1

 Exhibit 10.1 

Execution Version 
 GOLDMAN
SACHS & CO. LLC | 200 WEST STREET | NEW YORK, NEW YORK 10282-2198 | TEL: 212-902-1000 

Opening Transaction 
  

			
	To:	  	Humana Inc.
		  	500 West Main Street
		  	Louisville, Kentucky 40202
		
	A/C:	  	046957643
		
	From:	  	Goldman Sachs & Co. LLC
		
	Re:	  	Accelerated Stock Buyback
		
	Ref. No:	  	As provided in the Supplemental Confirmation
		
	Date:	  	November 28, 2018

  
  

This master confirmation (this “Master Confirmation”), dated as of November 28, 2018, is intended to set forth certain
terms and provisions of certain Transactions (each, a “Transaction”) entered into from time to time between Goldman Sachs & Co. LLC (“GS&Co.”) and Humana Inc. (“Counterparty”). This
Master Confirmation, taken alone, is neither a commitment by either party to enter into any Transaction nor evidence of a Transaction. The additional terms of any particular Transaction shall be set forth in a Supplemental Confirmation in the form
of Schedule A hereto (a “Supplemental Confirmation”), which shall reference this Master Confirmation and supplement, form a part of, and be subject to this Master Confirmation. This Master Confirmation and each Supplemental
Confirmation together shall constitute a “Confirmation” as referred to in the Agreement specified below. 
 The definitions and
provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc. (“ISDA”), are incorporated into this Master
Confirmation. This Master Confirmation and each Supplemental Confirmation evidence a complete binding agreement between Counterparty and GS&Co. as to the subject matter and terms of each Transaction to which this Master Confirmation and such
Supplemental Confirmation relate and shall supersede all prior or contemporaneous written or oral communications with respect thereto. 

This Master Confirmation and each Supplemental Confirmation supplement, form a part of, and are subject to an agreement in the form of the
1992 ISDA Master Agreement (Multicurrency-Cross Border) (the “Agreement”) as if GS&Co. and Counterparty had executed the Agreement on the date of this Master Confirmation (but without any Schedule except for (i) the
election of Loss and Second Method (it being agreed that any Loss will be determined by the relevant party acting in good faith and using commercially reasonable procedures in order to produce a commercially reasonable result), New York law (without
reference to its choice of laws doctrine other than Title 14 of Article 5 of the New York General Obligations Law) as the governing law and US Dollars (“USD”) as the Termination Currency, (ii) the election that subparagraph
(ii) of Section 2(c) will not apply to the Transactions, (iii) the replacement of the word “third” in the last line of Section 5(a)(i) with the word “second”, (iv) the insertion of “, absent manifest
error” immediately before the period at the end of the last sentence of Section 6(d)(i), and (v) the election that the “Cross Default” provisions of Section 5(a)(vi) shall apply to GS&Co. and Counterparty, with a
“Threshold Amount” of USD 100 million, provided that (A) the words “, or becoming capable at such time of being declared,” shall be deleted from Section 5(a)(vi) and (B) the following language shall be
added to the end of such Section 5(a)(vi): “Notwithstanding the foregoing, a default under subsection (2) hereof shall not constitute an Event of Default if (i) the default was caused solely by error or omission of an
administrative or operational nature; (ii) funds were available to enable the party to make the payment when due; and (iii) the payment is made within two Local Business Days of such party’s receipt of written notice of its failure to
pay;”). 

 The Transactions shall be the sole Transactions under the Agreement. If there exists any
Master Agreement, in a form published by ISDA, between GS&Co. and Counterparty or any confirmation or other agreement between GS&Co. and Counterparty pursuant to which such a Master Agreement is deemed to exist between GS&Co. and
Counterparty (each such ISDA Master Agreement, confirmation and other agreement, an “Other Agreement”), then notwithstanding anything to the contrary in any Other Agreement, the Transactions shall not be considered or deemed to be
Transactions under, or otherwise governed by, any Other Agreement. 
 All provisions contained or incorporated by reference in the Agreement
shall govern this Master Confirmation and each Supplemental Confirmation except as expressly modified herein or in the related Supplemental Confirmation. 

If, in relation to any Transaction to which this Master Confirmation and a Supplemental Confirmation relate, there is any inconsistency
between the Agreement, this Master Confirmation, any Supplemental Confirmation and the Equity Definitions, the following will prevail for purposes of such Transaction in the order of precedence indicated: (i) such Supplemental Confirmation;
(ii) this Master Confirmation; (iii) the Equity Definitions; and (iv) the Agreement. 
 1.    Each Transaction
constitutes a Share Forward Transaction for the purposes of the Equity Definitions. Set forth below are the terms and conditions that, together with the terms and conditions set forth in the Supplemental Confirmation relating to any Transaction,
shall govern such Transaction. 
  

			
	General Terms:	  	
		
	 Trade Date:
	  	For each Transaction, as set forth in the related Supplemental Confirmation.
		
	 Buyer:
	  	Counterparty
		
	 Seller:
	  	GS&Co.
		
	 Shares:
	  	Common stock, par value $0.16 2/3 per share, of Counterparty (Ticker: HUM)
		
	 Exchange:
	  	New York Stock Exchange
		
	 Related Exchange(s):
	  	All Exchanges.
		
	 Prepayment/Variable

Obligation:
	  	Applicable
		
	 Prepayment Amount:
	  	For each Transaction, as set forth in the related Supplemental Confirmation.
		
	 Prepayment Date:
	  	For each Transaction, as set forth in the related Supplemental Confirmation.
		
	 Counterparty Additional

Payment Amount:
	  	For each Transaction, as set forth in the Supplemental Confirmation. Counterparty shall pay to GS&Co. the Counterparty Additional Payment Amount, if any, on the Counterparty Additional Payment Date.
		
	 Counterparty Additional

Payment Date:
	  	The Prepayment Date.
		
	Valuation:	  	
		
	 VWAP Price:
	  	For any Exchange Business Day, as determined by the Calculation Agent based on the 10b-18 Volume Weighted Average Price per Share for the regular trading session (including any extensions
thereof) of the Exchange on such Exchange Business Day (without regard to pre-open or after hours trading outside of such regular trading session for such Exchange Business Day), as published by Bloomberg at
4:15 p.m. New York time (or 15 minutes following the end of any extension of the regular trading session) on such

  
 2 

			
		  	Exchange Business Day, on Bloomberg page “HUM.N <Equity> AQR_SEC” (or any successor thereto), or if such price is not so reported on such Exchange Business Day for any reason or is, in the Calculation Agent’s
determination, erroneous, such VWAP Price shall be as determined by the Calculation Agent. For purposes of calculating the VWAP Price for such Exchange Business Day, the Calculation Agent will include only those trades that are reported during the
period of time during which Counterparty could purchase its own shares under Rule 10b-18(b)(2) and are effected pursuant to the conditions of Rule 10b-18(b)(3), each
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (such trades, “Rule 10b-18 eligible transactions”).
		
	 Forward Price:
	  	The average of the VWAP Prices for the Exchange Business Days in the Calculation Period, subject to “Valuation Disruption” below.
		
	 Forward Price

Adjustment Amount:
	  	For each Transaction, as set forth in the related Supplemental Confirmation.
		
	 Calculation Period:
	  	The period from and including the Calculation Period Start Date to and including the Termination Date.
		
	 Calculation Period

Start Date:
	  	For each Transaction, as set forth in the related Supplemental Confirmation.
		
	 Termination Date:
	  	The Scheduled Termination Date; provided that GS&Co. shall have the right to designate any Exchange Business Day on or after the First Acceleration Date to be the Termination Date (the “Accelerated Termination
Date”) by delivering notice to Counterparty of any such designation prior to 11:59 p.m. New York City time on the Exchange Business Day immediately following the designated Accelerated Termination Date.
		
	 Scheduled Termination

Date:
	  	For each Transaction, as set forth in the related Supplemental Confirmation, subject to postponement as provided in “Valuation Disruption” below.
		
	 First Acceleration Date:
	  	For each Transaction, as set forth in the related Supplemental Confirmation.
		
	 Valuation Disruption:
	  	 The definition of “Market Disruption Event” in Section 6.3(a) of the Equity Definitions is hereby amended by deleting the
words “at any time during the one-hour period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the case may be” and inserting the words “at any time on any Scheduled Trading Day during the Calculation Period or Settlement Valuation Period” after the word
“material,” in the third line thereof.
  
 Section 6.3(d) of the Equity
Definitions is hereby amended by deleting the remainder of the provision following the term “Scheduled Closing Time” in the fourth line thereof.
  

Notwithstanding anything to the contrary in the Equity Definitions, to the extent that a Disrupted Day occurs (i) in the Calculation Period, the
Calculation Agent may, in its good faith and commercially reasonable discretion, postpone the Scheduled Termination Date, or (ii) in the Settlement Valuation Period, the Calculation Agent may extend the Settlement Valuation Period, in each case
by a number of days that is no more than the number of applicable Disrupted Days. If any such Disrupted Day is a Disrupted Day because of a Market Disruption Event (or a deemed Market Disruption Event as provided herein), the Calculation Agent shall
determine whether (i) such Disrupted Day is a Disrupted Day in full, in which case the VWAP Price for

  
 3 

			
		  	 such Disrupted Day shall not be included for purposes of determining the Forward Price or the Settlement Price, as the case may be, or
(ii) except in the case of a Disrupted Day relating solely to a deemed Market Disruption Event pursuant to Section 5 of this Master Confirmation (which Disrupted Day can only be a Disrupted Day in full), such Disrupted Day is a Disrupted
Day only in part, in which case the VWAP Price for such Disrupted Day shall be determined by the Calculation Agent based on Rule 10b-18 eligible transactions in the Shares on such Disrupted Day effected before
the relevant Market Disruption Event occurred or after the relevant Market Disruption Event ceased and/or after taking into account the nature and duration of the relevant Market Disruption Event, and the weighting of the VWAP Price for the relevant
Exchange Business Days during the Calculation Period or the Settlement Valuation Period, as the case may be, shall be adjusted in good faith and in a commercially reasonable manner by the Calculation Agent for purposes of determining the Forward
Price or the Settlement Price, as the case may be, with such adjustments based on, among other factors, the duration of any Market Disruption Event and the volume, historical trading patterns and price of the Shares. Any Exchange Business Day on
which, as of the date hereof, the Exchange is scheduled to close prior to its normal close of trading shall be deemed not to be an Exchange Business Day; if a closure of the Exchange prior to its normal close of trading on any Exchange Business Day
is scheduled following the date hereof, then such Exchange Business Day shall be deemed to be a Disrupted Day in full.
  

If a Disrupted Day occurs during the Calculation Period or the Settlement Valuation Period, as the case may be, and each of the nine immediately following
Scheduled Trading Days is a Disrupted Day in full, then the Calculation Agent, in its good faith and commercially reasonable discretion, may deem such ninth Scheduled Trading Day to be an Exchange Business Day that is not a Disrupted Day and
determine the VWAP Price for such ninth Scheduled Trading Day using its good faith and commercially reasonable estimate of the value of the Shares on such ninth Scheduled Trading Day based on the volume, historical trading patterns and price of the
Shares and such other factors as it deems appropriate.
  
 The Calculation Agent shall
notify the parties of any determination pursuant to these Valuation Disruption provisions as promptly as practicable, and shall use good faith efforts to provide such notice no later than the Exchange Business Day immediately following the affected
Exchange Business Day.

		
	Settlement Terms:	  	
		
	 Settlement Procedures:
	  	If the Number of Shares to be Delivered is positive, Physical Settlement shall be applicable; provided that the Representation and Agreement contained in Section 9.11 of the Equity Definitions shall be modified by
excluding any representation therein relating to restrictions, obligations, limitations or requirements under applicable securities laws arising as a result of the fact that Counterparty is the issuer of the Shares. If the Number of Shares to be
Delivered is negative, then the Counterparty Settlement Provisions in Annex A shall apply.
		
	 Number of Shares

to be Delivered:
	  	A number of Shares equal to (x)(a) the Prepayment Amount divided by (b) the Divisor Amount minus (y) the number of Initial Shares.
		
	 Divisor Amount:
	  	The greater of (i) the Forward Price minus the Forward Price Adjustment Amount and (ii) USD 5.00.

  
 4 

			
	 Excess Dividend Amount:
	  	For the avoidance of doubt, all references to the Excess Dividend Amount shall be deleted from Section 9.2(a)(iii) of the Equity Definitions.
		
	 Settlement Date:
	  	If the Number of Shares to be Delivered is positive, the date that is one Settlement Cycle immediately following the Termination Date.
		
	 Settlement Currency:
	  	USD
		
	 Initial Share Delivery:
	  	GS&Co. shall deliver a number of Shares equal to the Initial Shares to Counterparty on the Initial Share Delivery Date in accordance with Section 9.4 of the Equity Definitions, with the Initial Share Delivery Date deemed to
be a “Settlement Date” for purposes of such Section 9.4.
		
	 Initial Share Delivery

Date:
	  	For each Transaction, as set forth in the related Supplemental Confirmation.
		
	 Initial Shares:
	  	For each Transaction, as set forth in the related Supplemental Confirmation.
		
	Share Adjustments:	  	
		
	 Potential Adjustment

Event:
	  	 Notwithstanding anything to the contrary in Section 11.2(e) of the Equity Definitions, an Extraordinary Dividend shall not constitute a
Potential Adjustment Event.
  
 It shall constitute an additional Potential Adjustment
Event if the Scheduled Termination Date for any Transaction is postponed pursuant to “Valuation Disruption” above, in which case the Calculation Agent shall make any adjustments to any relevant terms of any such Transaction as the
Calculation Agent determines appropriate to account for the economic effect on such Transaction of such postponement.

		
	 Extraordinary Dividend:
	  	For any calendar quarter, any dividend or distribution on the Shares with an ex-dividend date occurring during such calendar quarter (other than any dividend or distribution of the type
described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) of the Equity Definitions) (a “Dividend”) the amount or value of which (as determined by the Calculation Agent), when aggregated with the amount or value (as
determined by the Calculation Agent) of any and all previous Dividends with ex-dividend dates occurring in the same calendar quarter, exceeds the Ordinary Dividend Amount.
		
	 Ordinary Dividend

Amount:
	  	For each Transaction, as set forth in the related Supplemental Confirmation.
		
	 Method of Adjustment:
	  	Calculation Agent Adjustment
		
	 Early Ordinary Dividend

Payment:
	  	If an ex-dividend date for any Dividend that is not an Extraordinary Dividend occurs during any calendar quarter occurring (in whole or in part) during the Relevant Dividend Period (as defined
below) and is prior to the Scheduled Ex-Dividend Date for such calendar quarter, the Calculation Agent shall make such adjustment to the exercise, settlement, payment or any other terms of the relevant
Transaction as the Calculation Agent determines appropriate to account for the economic effect on such Transaction of such event.
		
	 Scheduled Ex-Dividend

Dates:
	  	For each Transaction for each calendar quarter, as set forth in the related Supplemental Confirmation.

  
 5 

					
	Extraordinary Events:	 		  	
			
	 Consequences of

Merger Events:
	 		  	

					
			
	(a)	 	Share-for-Share:	  	Modified Calculation Agent Adjustment
			
	(b)	 	Share-for-Other:	  	Cancellation and Payment
			
	(c)	 	Share-for-Combined:	  	Component Adjustment

					
		
	 Tender Offer:
	 	 Applicable; provided that (i) Section 12.1(d) of the Equity Definitions shall be amended by replacing
“10%” in the third line thereof with “20%,” (ii) Section 12.1(1) of the Equity Definitions shall be amended (x) by deleting the parenthetical in the fifth line thereof, (y) by replacing “that” in the
fifth line thereof with “whether or not such announcement” and (z) by adding immediately after the words “Tender Offer” in the fifth line thereof “, and any publicly announced change or amendment to such an announcement
(including the announcement of an abandonment of such intention)” and (ii) Sections 12.3(a) and 12.3(d) of the Equity Definitions shall each be amended by replacing each occurrence of the words “Tender Offer Date” by
“Announcement Date.”

			
	 Consequences of

Tender Offers:
	 		  	

					
			
	(a)	 	Share-for-Share:	  	Modified Calculation Agent Adjustment
			
	(b)	 	Share-for-Other:	  	Modified Calculation Agent Adjustment
			
	(c)	 	Share-for-Combined:	  	Modified Calculation Agent Adjustment

					
		
	 Nationalization, Insolvency

or Delisting:
	 	 Cancellation and Payment; provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity
Definitions, it shall also constitute a Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors); if the Shares are immediately
re-listed, re-traded or re-quoted on any such exchange or quotation system, such exchange or quotation system shall be deemed to
be the Exchange.

			
	 Additional Disruption

Events:
	 		  	

					
			
	(a)	 	Change in Law:	  	Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the phrase “the interpretation” in the third line thereof with the phrase “, or public
announcement of, the formal or informal interpretation”, (ii) by replacing the word “Shares” where it appears in clause (X) thereof with the words “Hedge Position” and (iii) by immediately following the word
“Transaction” in clause (X) thereof, adding the phrase “in the manner contemplated by the Hedging Party on the Trade Date”; provided further that (i) any determination as to whether (A) the adoption of or
any change in any applicable law or regulation (including, for the avoidance of doubt and without

  
 6 

					
		 		  	limitation, (x) any tax law or (y) adoption or promulgation of new regulations authorized or mandated by existing statute) or (B) the promulgation of or public announcement of any change in the formal or informal
interpretation by any court, tribunal or regulatory authority with competent jurisdiction of any applicable law or regulation (including any action taken by a taxing authority), in each case, constitutes a “Change in Law” shall be made by
the Hedging Party in good faith and in a commercially reasonable manner and in a manner consistent with the requirements, policies or procedures of the Hedging Party that are generally applicable hereunder in similar situations and applied to the
relevant Transactions hereunder in a non-discriminatory manner (but without regard to Section 739 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or any similar legal certainty
provision in any legislation enacted, or rule or regulation promulgated, on or after the Trade Date), and (ii) Section 12.9(a)(ii) of the Equity Definitions is hereby amended by replacing the parenthetical beginning after the word
“regulation” in the second line thereof with the words “(including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption or promulgation of new regulations authorized or mandated by existing
statute)”.
			
	(b)	 	Failure to Deliver:	  	Applicable
			
	(c)	 	Insolvency Filing:	  	Applicable
			
	(d)	 	Hedging Disruption:	  	Applicable
			
	(e)	 	Increased Cost of Hedging:	  	Applicable
			
	(f)	 	 Loss of Stock Borrow:
  

Maximum Stock Loan Rate:
	  	 Applicable
  

200 basis points per annum

			
		 	Hedging Party:	  	GS&Co.
			
	(g)	 	 Increased Cost of Stock Borrow:
  

Initial Stock Loan Rate:
  

Hedging Party:
  

Determining Party:
	  	 Applicable
  

 
 50 basis points per annum

 
 GS&Co.
  

GS&Co.

			
		
	 Additional Termination

Event(s):
	 	Notwithstanding anything to the contrary in the Equity Definitions, if, as a result of an Extraordinary Event, any Transaction would be cancelled or terminated (whether in whole or in part) pursuant to Article 12 of the Equity
Definitions, an Additional Termination Event (with such terminated Transaction(s) (or portions thereof) being the Affected Transaction(s) and Counterparty being the sole Affected Party) shall be deemed to occur, and, in lieu of Sections 12.7, 12.8
and 12.9 of the Equity Definitions, Section 6 of the Agreement shall apply to such Affected Transaction(s).

  
 7 

			
		  	The declaration by the Issuer of any Extraordinary Dividend, the ex-dividend date for which occurs or is scheduled to occur during the Relevant Dividend Period, will constitute an Additional
Termination Event, with Counterparty as the sole Affected Party and all Transactions hereunder as the Affected Transactions.
		
	 Relevant Dividend Period:
	  	The period from and including the Calculation Period Start Date to and including the Relevant Dividend Period End Date.
		
	 Relevant Dividend Period

End Date:
	  	If the Number of Shares to be Delivered is negative, the last day of the Settlement Valuation Period; otherwise, the Termination Date.
		
	 Non-Reliance/Agreements

and Acknowledgements

Regarding Hedging

Activities/Additional

Acknowledgements:
	  	Applicable
		
	 Transfer:
	  	Notwithstanding anything to the contrary in the Agreement, GS&Co. may assign, transfer and set over all rights, title and interest, powers, privileges and remedies of GS&Co. under any Transaction, in whole or in part, to an
affiliate of GS&Co. whose obligations are guaranteed by The Goldman Sachs Group, Inc. without the consent of Counterparty, but only if (i) Counterparty would not, at the time and as a result of such transfer or assignment, reasonably be
expected to be required to pay (including a payment in kind) to the transferee at such time or on any later date an amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) of the Agreement (except in respect of interest under
Section 2(e), 6(d)(ii) or 6(e) of the Agreement) greater than the amount in respect of which Counterparty would have been required to pay to GS&Co. in the absence of such transfer; (ii) Counterparty would not, at the time and as a
result of such transfer or assignment, reasonably be expected to receive a payment (including a payment in kind) from which at such time or on any later date an amount had been withheld or deducted, on account of a Tax under Section 2(d)(i) of
the Agreement (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e) of the Agreement), in excess of that which GS&Co. would have been required to so withhold or deduct in the absence of such transfer, unless the transferee
will be required to make additional payments pursuant to Section 2(d)(i)(4) of the Agreement in an amount equal to such excess; (iii) Counterparty would not, at the time and as a result of such transfer or assignment, reasonably be
expected to otherwise suffer material adverse tax consequences from such transfer or assignment at such time or on any later date; (iv) immediately upon giving effect to such transfer, no Event of Default, no Potential Event of Default and no
Termination Event will have occurred as a result thereof; (v) GS&Co. shall have caused the transferee to make such Payee Tax Representations and to provide such tax documentation as may be reasonably requested by Counterparty to permit
Counterparty to determine that the results described in (i) above will not occur upon or after such transfer; (vi) such transferee is a “dealer” within the meaning of Treasury Regulation
Section 1.1001-4(b)(1); and (vii) Counterparty would not, at the time and as a result of such transfer or assignment, reasonably be expected to be required to become subject to any registration or
other qualification requirement under applicable law or regulation to which it would not otherwise have been subject absent such transfer or assignment.

  
 8 

			
	 Tax Representations and

Tax Form Deliverables:
	  	 For purposes of Section 3(f) of the Agreement, GS&Co. represents that it is a “U.S. person” (as that term is used in
Sections 1.1441-1(c)(2) and 1-1441-4(a)(3)(ii) of the United States Treasury Regulations) for U.S. federal income tax
purposes.
  
 For purposes of Sections 4(a)(i) and (ii) of the Agreement,
GS&Co. agrees to deliver to Counterparty a correct, complete (in a manner reasonably satisfactory to Counterparty) and executed United States Internal Revenue Service Form W¬9 (or successor thereto) (i) promptly upon execution of this
Master Confirmation, (ii) promptly upon reasonable demand by Counterparty and (iii) promptly upon learning that any such from previously provided by GS&Co. has become obsolete or incorrect.

		
	 GS&Co. Payment

Instructions:
	  	Chase Manhattan Bank New York
For A/C Goldman Sachs & Co. LLC
A/C #930-1-011483
ABA:
021-000021
		
	 Counterparty’s Contact

Details for Purpose of

Giving Notice:
	  	 Humana Inc.
500 W. Main Street
Louisville, KY 40202
Attention: Alan J. Bailey
Vice President and Treasurer
Telephone: 502-580-1112
 Facsimile: 502-580-4089
 Email: abailey@humana.com

 
 With a copy to:

 
 Humana Inc.
500 W. Main Street, 21st Floor
Louisville, KY 40202
Attention:
Joseph C. Ventura
Associate General Counsel — Corporate & Securities
Assistant Corporate Secretary
Telephone: 502-580-3149

Email: jventura@humana.com

		
	 GS&Co.’s Contact Details

for Purpose of Giving

Notice:
	  	 Goldman Sachs & Co. LLC
200 West Street
New York, NY 10282-2198
Attention: Michael Voris, Equity Capital
Markets
Telephone: 212-902-4895
 Facsimile: 212-902-3000
 Email: michael.voris@gs.com

 
 With a copy to:

 
 Attention: Joshua Murray, Equity Capital Markets
Telephone: 212-902-3291
 Facsimile: 212-902-3000
 Email: joshua.murray@gs.com

 
 And email notification to the following
address:
Eq-derivs-notifications@am.ibd.gs.com

 Notwithstanding anything to the contrary contained herein, with respect to any notice or other communication given hereunder
that is given by email (other than an email notice or communication from GS&Co. to Counterparty designating an Accelerated Termination Date hereunder, which shall not be subject to this paragraph), the parties

  
 9 

 
hereby agree that the burden of proving receipt will be on the sender and will not be met by a copy of the sent message generated by the sender’s computer or other transmission device unless
that copy is accompanied by (x) a copy of a delivery receipt message from the recipient’s computer or other end point device or (y) a recording or other reasonable evidence (including a contemporaneous written record) that a
responsible employee of the recipient telephonically or otherwise orally confirmed the recipient’s receipt of the sender’s email. With respect to clause (x) above, the parties agree that if return receipt is requested, the receiving
party shall promptly acknowledge receipt. 
 Unless otherwise expressly provided in a Supplemental Confirmation with respect to the corresponding
Transaction, no notice or other communication (other than an email notice or other communication from GS&Co. to Counterparty designating an Accelerated Termination Date) pursuant to Section 5, 6 or 13(c) of the Agreement given by telephone,
facsimile transmission, electronic messaging system or email will be effective for any purpose under this Master Confirmation. For the avoidance of doubt, the mere inclusion of a telephone or facsimile number in this Master Confirmation or in a
Supplemental Confirmation will not constitute an agreement that any notice or other communication may be given telephonically or via facsimile transmission. 

2. Calculation Agent. GS&Co; provided that, following the occurrence of an Event of Default pursuant to Section 5(a)(vii) of the
Agreement with respect to which GS&Co. is the Defaulting Party, Counterparty shall have the right to designate a nationally recognized third-party dealer in
over-the-counter corporate equity derivatives to act, during the period commencing on the date such Event of Default occurred and ending on the Early Termination Date
with respect to such Event of Default, as the Calculation Agent with respect to the Transactions under this Master Confirmation. Following any determination or calculation by the Calculation Agent hereunder, upon a written request by Counterparty,
the Calculation Agent will promptly (but in any event no later than the earlier of (i) the time at which Counterparty becomes obligated to make any payment or delivery or take any other action as a result of such determination or calculation
and (ii) the date five (5) Exchange Business Days following the date of such determination or calculation) provide to Counterparty by e-mail to the e-mail
address provided by Counterparty in such written request a report (in a commonly used file format for the storage and manipulation of financial data without disclosing any proprietary models of the Calculation Agent or other information that is or
is reasonably likely to be proprietary or subject to contractual, legal or regulatory obligations not to disclose such information) displaying in reasonable detail the basis for such determination or calculation, as the case may be. Whenever the
Calculation Agent is required or permitted to exercise discretion in any way, it will do so in good faith and in a commercially reasonable manner. 
 3.
Additional Representations and Covenants of Each Party. In addition to the representations and covenants in the Agreement, each party represents and covenants to the other party that: 

(a) Eligible Contract Participant. It is an “eligible contract participant”, as defined in the U.S. Commodity Exchange Act
(as amended), and is entering into each Transaction hereunder as principal (and not as agent or in any other capacity, fiduciary or otherwise) and not for the benefit of any third party. 

(b) Accredited Investor. Each party acknowledges that the offer and sale of each Transaction to it is intended to be exempt from
registration under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section 4(a)(2) thereof. Accordingly, each party represents to the other that (i) it has the financial ability to bear the
economic risk of its investment in each Transaction and is able to bear a total loss of its investment, (ii) it is an “accredited investor” as that term is defined under Regulation D under the Securities Act and (iii) the
disposition of each Transaction is restricted under this Master Confirmation, the Securities Act and state securities laws. 
 (c)
Material Nonpublic Information. GS&Co. hereby represents and covenants to Counterparty that it has implemented policies and procedures, taking into consideration the nature of its business, reasonably designed to prevent individuals
making investment decisions related to any Transaction from having access to material nonpublic information regarding Issuer that may be in possession of other individuals at GS&Co. 

(d) No Recourse to Third Parties. Each party agrees it will look solely to the other party (or any guarantor in respect thereof) for
performance of such other party’s obligations under any Transaction. 

  
 10 

 (e) Guarantee of The Goldman Sachs Group, Inc. The obligations of GS&Co. in
respect of each Transaction hereunder will be guaranteed by The Goldman Sachs Group, Inc. pursuant to (i) the General Guarantee Agreement, dated January 30, 2006, made by The Goldman Sachs Group, Inc. relating to certain obligations of
GS&Co. (available as Exhibit 10.45 to The Goldman Sachs Group, Inc. Annual Report on Form 10-K for the fiscal year ended November 25, 2005), or (ii) any replacement or successor guarantee, which
may be in the form of a general guarantee or a guarantee that specifically references the Transactions. The parties agree and acknowledge that any such guarantee shall not be a Credit Support Document hereunder, and that the Goldman Sachs Group,
Inc. shall not be a Credit Support Provider hereunder. 
 4. Additional Representations and Covenants of Counterparty. In addition to the
representations and covenants in the Agreement, Counterparty represents and covenants to GS&Co. that: 
 (a) As of the Trade Date of a
Transaction, Counterparty will not be engaged in an “issuer tender offer” as such term is defined in Rule 13e-4 under the Exchange Act, nor is it aware of any third party tender offer with respect to
the Shares within the meaning of Rule 13e-1 under the Exchange Act. 
 (b) It is not entering into
any Transaction (i) on the basis of, and is not aware of, any material non-public information with respect to the Shares, (ii) in anticipation of, in connection with, or to facilitate, a distribution
of its securities, a self tender offer or a third-party tender offer or (iii) to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or to raise or depress or otherwise
manipulate the price of the Shares (or any security convertible into or exchangeable for the Shares). 
 (c) Each Transaction is being
entered into pursuant to a publicly disclosed Share buy-back program and its Board of Directors has approved the use of derivatives to effect the Share buy-back program.

 (d) Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that neither GS&Co. nor
any of its affiliates is making any representations or taking any position or expressing any view with respect to the treatment of any Transaction under any accounting standards including ASC Topic 260, Earnings Per Share, ASC Topic 815,
Derivatives and Hedging, or ASC Topic 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity. 

(e) As of (i) the date hereof and (ii) the Trade Date for each Transaction hereunder, Counterparty is in compliance with its
reporting obligations under the Exchange Act and its most recent Annual Report on Form 10-K, together with all reports subsequently filed by it pursuant to the Exchange Act, taken together and as amended and
supplemented to the date of this representation, do not, as of their respective filing dates, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading. 
 (f) Counterparty shall report each Transaction as
required under the Exchange Act and the rules and regulations thereunder. 
 (g) The Shares are not, and Counterparty will not cause the
Shares to be, subject to a “restricted period” (as defined in Regulation M promulgated under the Exchange Act) at any time during any Regulation M Period (as defined below) for any Transaction unless Counterparty has provided written
notice to GS&Co. of such restricted period not later than the Scheduled Trading Day immediately preceding the first day of such “restricted period”; Counterparty acknowledges that any such notice may cause a Disrupted Day to occur
pursuant to Section 5 below; accordingly, Counterparty acknowledges that its delivery of such notice must comply with the standards set forth in Section 6 below; “Regulation M Period” means, for any Transaction,
(i) the Relevant Period (as defined below) and (ii) the Settlement Valuation Period, if any, for such Transaction. “Relevant Period” means, for any Transaction, the period commencing on the Calculation Period Start Date
for such Transaction and ending on the earlier of (i) the Scheduled Termination Date and (ii) the last Additional Relevant Day (as specified in the related Supplemental Confirmation) for such Transaction, or such earlier day as elected by
GS&Co. and communicated to Counterparty on such day (or, if later, the First Acceleration Date without regard to any acceleration thereof pursuant to “Special Provisions for Acquisition Transaction Announcements” below). 

(h) As of the Trade Date, the Prepayment Date, the Initial Share Delivery Date and the Settlement Date for each Transaction, Counterparty is
not “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code), as amended (the “Bankruptcy Code”)) and Counterparty would be able to purchase a number
of Shares with a value equal to the Prepayment Amount in compliance with the laws of the jurisdiction of Counterparty’s incorporation. 

  
 11 

 (i) Counterparty is not and, after giving effect to any Transaction, will not be, required
to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended. 
 (j)
Counterparty has not and will not enter into agreements with respect to the Shares similar to the Transactions described herein where any initial hedge period, calculation period, relevant period or settlement valuation period (each however defined)
in such other transaction will overlap at any time (including as a result of extensions in such initial hedge period, calculation period, relevant period or settlement valuation period as provided in the relevant agreements) with any Relevant Period
or, if applicable, any Settlement Valuation Period under this Master Confirmation, without the prior written consent of GS&Co. In the event that the initial hedge period, relevant period, calculation period or settlement valuation period in any
other similar transaction entered into without GS&Co.’s prior written consent overlaps with any Relevant Period or, if applicable, Settlement Valuation Period under this Master Confirmation as a result of any postponement of the Scheduled
Termination Date or extension of the Settlement Valuation Period pursuant to “Valuation Disruption” above, Counterparty shall promptly amend such transaction to avoid any such overlap. 

5. Regulatory Disruption. In the event that GS&Co. concludes, in its good faith, commercially reasonable discretion, based on the advice of
counsel, that it is appropriate with respect to any legal, regulatory or self-regulatory requirements or related policies and procedures (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by
GS&Co., and provided that such policies or procedures are related to legal or regulatory issues and are generally applicable hereunder and in similar situations and applied to any Transaction hereunder in a
non-discriminatory manner), for it to refrain from or decrease any market activity in the Shares (or any reasonably related Hedge Position) on any one or more Scheduled Trading Days during the Calculation
Period or, if applicable, the Settlement Valuation Period, GS&Co. may by written notice to Counterparty elect to deem that a Market Disruption Event has occurred and will be continuing on such Scheduled Trading Days, subject to the other
provisions under “Valuation Disruption” in Section 1 above. 
 6. 10b5-1 Plan. Counterparty
represents and covenants to GS&Co. that: 
 (a) Counterparty is entering into this Master Confirmation and each Transaction hereunder in
good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5 under the Exchange Act (“Rule 10b5”) or any other antifraud or anti-manipulation provisions of the federal or applicable state securities laws and
that it has not entered into or altered and will not enter into or alter any corresponding or hedging transaction or position with respect to the Shares. Counterparty acknowledges that it is the intent of the parties that each Transaction entered
into under this Master Confirmation comply with the requirements of paragraphs (c)(1)(i)(A) and (B) of Rule 10b5-1 under the Exchange Act (“Rule
10b5-1”) and each Transaction entered into under this Master Confirmation shall be interpreted to comply with the requirements of Rule 10b5-1(c). 

(b) Counterparty will not seek to control or influence GS&Co.’s decision to make any “purchases or sales” (within the
meaning of Rule 10b5-1(c)(1)(i)(B)(3)) under any Transaction entered into under this Master Confirmation, including, without limitation, GS&Co.’s decision to enter into any hedging transactions.
Counterparty represents that it has consulted with its own advisors as to the legal aspects of its adoption and implementation of this Master Confirmation and each Supplemental Confirmation under Rule 10b5-1.

 (c) Counterparty acknowledges and agrees that any amendment, modification, waiver or termination of this Master Confirmation or the
relevant Supplemental Confirmation must be effected in accordance with the requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c). Without limiting the generality of
the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5, and no such amendment,
modification or waiver shall be made at any time at which Counterparty or any officer, director, manager or similar person of Counterparty is aware of any material non-public information regarding Counterparty
or the Shares. 

  
 12 

 7. Counterparty Purchases. Counterparty (or any “affiliated purchaser” as defined in Rule 10b-18 under the Exchange Act (“Rule l0b-18”)) shall not, without the prior written consent of GS&Co., directly or indirectly purchase any Shares
(including by means of a derivative instrument), listed contracts on Shares or securities that are convertible into, or exchangeable or exercisable for, Shares (including, without limitation, any Rule 10b-18
purchases of blocks (as defined in Rule 10b-18)) during any Relevant Period or, if applicable, Settlement Valuation Period, except through GS&Co., and, if GS&Co. is requested to make any such
purchases, GS&Co. will cooperate in good faith and in a commercially reasonable manner with Counterparty to execute and deliver mutually acceptable documentation pursuant to which GS&Co. shall make any such purchases (each such purchase, an
“Open Market Repurchase”). All Open Market Repurchases will be subject to the “Concurrent OMR Parameters” set forth in any Supplemental Confirmation for a Transaction then outstanding. The documentation governing any Open
Market Repurchases will include customary provisions relating to Rule 10b-18. 
 7A. GS&Co.
Purchases. With respect to purchases of Shares by GS&Co. in connection with any Transaction during the Calculation Period for such Transaction (other than any purchases made by GS&Co. in connection with dynamic hedge adjustments of
GS&Co.’s exposure to any Transaction as a result of any equity optionality contained in such Transaction), GS&Co. will use good faith, commercially reasonable efforts to effect such purchases in a manner so that, if such purchases were
made by Counterparty, they would meet the requirements of Rule 10b-18(b)(2) and (3), and effect calculations in respect thereof, taking into account any applicable Securities and Exchange Commission no-action letters as appropriate and subject to any delays between the execution and reporting of a trade of the Shares on the Exchange and other circumstances beyond GS&Co.’s control. Notwithstanding the
foregoing, GS&Co. shall not be responsible for any failure to comply with paragraph (b)(3) of Rule 10b-18 that would not have resulted if (i) a bid that was actually entered or deemed to be entered by
or on behalf of Counterparty (other than as provided in the Supplemental Confirmation for such Transaction) had instead been an “independent bid” for purposes of paragraph (b)(3) of Rule 10b-18, or
(ii) a transaction that was actually executed or deemed to be executed by or on behalf of Counterparty (other than as provided in the Supplemental Confirmation for such Transaction) had instead been an “independent transaction” within
the meaning of paragraph (b)(3) of Rule 10b-18. 
 8. Special Provisions for Merger Transactions.
Notwithstanding anything to the contrary herein or in the Equity Definitions: 
 (a) Counterparty agrees that it: 

(i) will not during the period commencing on the Trade Date through the end of the Relevant Period or, if applicable, the
Settlement Valuation Period for any Transaction make, or to the extent it is within its reasonable control, permit to be made, any public announcement (as defined in Rule 165(f) under the Securities Act) of any Merger Transaction (as defined below)
or potential Merger Transaction (a “Public Announcement”) unless such Public Announcement is made prior to the opening or after the close of the regular trading session on the Exchange for the Shares; 

(ii) shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) notify
GS&Co. following any such Public Announcement that such Public Announcement has been made; and 
 (iii) shall promptly
(but in any event prior to the next opening of the regular trading session on the Exchange) provide GS&Co. with written notice specifying (i) Counterparty’s average daily Rule 10b-18 Purchases
(as defined in Rule 10b-18) during the three full calendar months immediately preceding the date of such Public Announcement that were not effected through GS&Co. or its affiliates and (ii) the number
of Shares purchased pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full calendar months preceding the date of such Public Announcement. Such written notice shall be deemed to
be a certification by Counterparty to GS&Co. that such information is true and correct. In addition, Counterparty shall promptly notify GS&Co. of the earlier to occur of the completion of the relevant Merger Transaction and the completion of
the vote by target shareholders. 
 (b) Counterparty acknowledges that a Public Announcement may cause the terms of any Transaction to be
adjusted or such Transaction to be terminated; accordingly, Counterparty acknowledges that in making any Public Announcement, it must comply with the standards set forth in Section 6 above. 

  
 13 

 (c) Upon the occurrence of any Public Announcement (whether made by Counterparty or a third
party) GS&Co. in its sole discretion may (i) make commercially reasonable adjustments to the terms of any Transaction, including, without limitation, the Scheduled Termination Date or the Forward Price Adjustment Amount, and/or suspend the
Calculation Period and/or any Settlement Valuation Period or (ii) treat the occurrence of such Public Announcement as an Additional Termination Event with Counterparty as the sole Affected Party and the Transactions hereunder as the Affected
Transactions and with the amount under Section 6(e) of the Agreement determined taking into account the fact that the Calculation Period or Settlement Valuation Period, as the case may be, had fewer Scheduled Trading Days than originally
anticipated. 
 “Merger Transaction” means any merger, acquisition or similar transaction involving a recapitalization as
contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act. 
 9. Special Provisions for Acquisition
Transaction Announcements. (a) If an Acquisition Transaction Announcement (as defined below) occurs on or prior to the Settlement Date for any Transaction, then the Calculation Agent shall make such adjustments to the exercise, settlement,
payment or any other terms of such Transaction as the Calculation Agent determines appropriate (including, without limitation and for the avoidance of doubt, adjustments to the Forward Price Adjustment Amount, at such time or at multiple times as
the Calculation Agent determines appropriate, to account for the economic effect on such Transaction of such Acquisition Transaction Announcement (including adjustments to account for changes in volatility, expected dividends, stock loan rate, value
of any commercially reasonable Hedge Positions in connection with the relevant Transaction and liquidity relevant to the Shares or to such Transaction). If an Acquisition Transaction Announcement occurs after the Trade Date, but prior to the First
Acceleration Date of any Transaction, the First Acceleration Date shall be the date of such Acquisition Transaction Announcement. 
 (b)
“Acquisition Transaction Announcement” means (i) the announcement of an Acquisition Transaction, (ii) an announcement that Counterparty or any of its subsidiaries has entered into an agreement, a letter of intent or an
understanding designed to result in an Acquisition Transaction, (iii) the announcement of the intention to solicit or enter into, or to explore strategic alternatives or other similar undertaking that may include, an Acquisition Transaction,
(iv) any other announcement that in the good faith, reasonable judgment of the Calculation Agent may result in an Acquisition Transaction or (v) any announcement of any change or amendment to any previous Acquisition Transaction
Announcement (including any announcement of the abandonment of any such previously announced Acquisition Transaction, agreement, letter of intent, understanding or intention). For the avoidance of doubt, announcements as used in the definition of
Acquisition Transaction Announcement refer to any public announcement whether made by the Issuer or a third party. 
 (c)
“Acquisition Transaction” means (i) any Merger Event (for purposes of this definition the definition of Merger Event shall be read with the references therein to “100%” being replaced by “25%” and to
“50%” by “75%” and without reference to the clause beginning immediately following the definition of Reverse Merger therein to the end of such definition), Tender Offer or Merger Transaction or any other transaction involving the
merger of Counterparty with or into any third party, (ii) the sale or transfer of all or substantially all of the assets of Counterparty, (iii) a recapitalization, reclassification, binding share exchange or other similar transaction,
(iv) any acquisition, lease, exchange, transfer, disposition (including by way of spin-off or distribution) of assets (including any capital stock or other ownership interests in subsidiaries) or other
similar event by Counterparty or any of its subsidiaries where the aggregate consideration transferable or receivable by or to Counterparty or its subsidiaries exceeds 25% of the market capitalization of Counterparty and (v) any transaction in
which Counterparty or its board of directors has a legal obligation to make a recommendation to its shareholders in respect of such transaction (whether pursuant to Rule 14e-2 under the Exchange Act or
otherwise). 
 10. Acknowledgments. (a) The parties hereto intend for: 

(i) each Transaction to be a “securities contract” as defined in Section 741(7) of the Bankruptcy Code, a
“swap agreement” as defined in Section 101(53B) of the Bankruptcy Code and a “forward contract” as defined in Section 101(25) of the Bankruptcy Code, and the parties hereto to be entitled to the protections afforded by,
among other Sections, Sections 362(b)(6), 362(b)(17), 362(b)(27), 362(o), 546(e), 546(g), 546(j), 555, 556, 560 and 561 of the Bankruptcy Code; 

  
 14 

 (ii) the Agreement to be a “master netting agreement” as defined
in Section 101(38A) of the Bankruptcy Code; 
 (iii) a party’s right to liquidate, terminate or accelerate any
Transaction, net out or offset termination values or payment amounts, and to exercise any other remedies upon the occurrence of any Event of Default or Termination Event under the Agreement with respect to the other party or any Extraordinary Event
that results in the termination or cancellation of any Transaction to constitute a “contractual right” (as defined in the Bankruptcy Code); and 

(iv) all payments for, under or in connection with each Transaction, all payments for the Shares (including, for the avoidance
of doubt, payment of the Prepayment Amount) and the transfer of such Shares to constitute “settlement payments” and “transfers” (as defined in the Bankruptcy Code). 

(b) Counterparty acknowledges that: 

(i) during the term of any Transaction, GS&Co. and its affiliates may buy or sell Shares or other securities or buy or sell
options or futures contracts or enter into swaps or other derivative securities in order to establish, adjust or unwind its hedge position with respect to such Transaction; 

(ii) GS&Co. and its affiliates may also be active in the market for the Shares and derivatives linked to the Shares other
than in connection with hedging activities in relation to any Transaction, including acting as agent or as principal and for its own account or on behalf of customers; 

(iii) GS&Co. shall make its own determination as to whether, when or in what manner any hedging or market activities in
Counterparty’s securities shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Forward Price and the VWAP Price; 

(iv) any market activities of GS&Co. and its affiliates with respect to the Shares may affect the market price and
volatility of the Shares, as well as the Forward Price and the VWAP Price, each in a manner that may be adverse to Counterparty; and 

(v) each Transaction is a derivatives transaction in which it has granted GS&Co. an option; GS&Co. may purchase shares
for its own account at an average price that may be greater than, or less than, the price paid by Counterparty under the terms of the related Transaction. 

(c) Counterparty: 

(i) is an “institutional account” as defined in FINRA Rule 4512(c); 

(ii) is capable of evaluating investment risks independently, both in general and with regard to all transactions and
investment strategies involving a security or securities, and will exercise independent judgment in evaluating the recommendations of GS&Co. or its associated persons, unless it has otherwise notified GS&Co. in writing; and 

(iii) will notify GS&Co. if any of the statements contained in clause (i) or (ii) of this Section 10(c) ceases to
be true. 
 11. Credit Support Documents. The parties hereto acknowledge that no Transaction hereunder is secured by any collateral that would
otherwise secure the obligations of Counterparty herein or pursuant to the Agreement. 
 12. No Set-off.
Obligations under the Agreement shall not be subject to any Set-off by either party against any obligations of the other party or of that other party’s affiliates.
“Set-off” means set-off, offset, combination of accounts, right of retention or withholding or similar right or requirement to which the relevant payer
of an amount is entitled or subject (whether arising under the Agreement, another contract, applicable law or otherwise) that is exercised by, or imposed on, such payer. 

  
 15 

 13. Delivery of Shares. Notwithstanding anything to the contrary herein, GS&Co. may, by prior
notice to Counterparty, satisfy its obligation to deliver any Shares or other securities on any date due (an “Original Delivery Date”) by making separate deliveries of Shares or such securities, as the case may be, at more than one
time on or prior to such Original Delivery Date, so long as the aggregate number of Shares and other securities so delivered on or prior to such Original Delivery Date is equal to the number required to be delivered on such Original Delivery Date.

 14. Early Termination. In the event that an Early Termination Date (whether as a result of an Event of Default or a Termination Event) occurs or
is designated with respect to any Transaction (except as a result of a Merger Event in which the consideration or proceeds to be paid to holders of Shares consists solely of cash), if either party would owe any amount to the other party pursuant to
Section 6(d)(ii) of the Agreement (any such amount, a “Payment Amount”), then the following provisions shall apply. If such Payment Amount is owed by GS&Co., then in lieu of any payment of such Payment Amount, such Payment Amount
shall be satisfied through the delivery of a number of Shares (or, in the case of a Merger Event, a number of units, each comprising the number or amount of the securities or property that a hypothetical holder of one Share would receive in such
Merger Event (each such unit, an “Alternative Delivery Unit” and, the securities or property comprising such unit, “Alternative Delivery Property”)) with a value equal to the Payment Amount, as determined by the Calculation Agent
(and the parties agree that, in making such determination of value, the Calculation Agent may take into account a number of factors, including the market price of the Shares or Alternative Delivery Property on the date of early termination and the
prices at which GS&Co. purchases Shares or Alternative Delivery Property to fulfill its delivery obligations under this Section 14), unless Counterparty, no later than such Early Termination Date or the date on which such Transaction is
terminated, elects for GS&Co. to satisfy its obligation to pay the Payment Amount in cash (it being agreed that, notwithstanding anything to the contrary herein or in the Agreement, notice of such election may be given by email and will be
effective if given at any time on the Early Termination Date); provided that in determining the composition of any Alternative Delivery Unit, if the relevant Merger Event involves a choice of consideration to be received by holders, such
holder shall be deemed to have elected to receive the maximum possible amount of cash. If such Payment Amount is owed by Counterparty, Annex A shall apply except that the Settlement Method Election Date and the Cash Settlement Payment Date shall be
the Early Termination Date, the Forward Cash Settlement Amount shall be zero (0) minus the Payment Amount owed by Counterparty (and, for the avoidance of doubt, the definitions of Settlement Price and Settlement Valuation Period shall not
apply) and, in the case of a Merger Event, references to “Shares” shall be references to “Alternative Delivery Units.” 
 15.
Calculations and Payment Date upon Early Termination. The parties acknowledge and agree that in calculating Loss pursuant to Section 6 of the Agreement GS&Co. may (but need not) determine losses without reference to actual losses
incurred but based on expected losses assuming a commercially reasonable (including without limitation with regard to reasonable legal and regulatory guidelines) risk bid were used to determine loss to avoid awaiting the delay associated with
closing out any commercially reasonable hedge or related trading position in a commercially reasonable manner prior to or soon following the designation of an Early Termination Date. Notwithstanding anything to the contrary herein, in
Section 6(d)(ii) of the Agreement or in the Equity Definitions, all amounts calculated as being due in respect of an Early Termination Date in respect of a Transaction under Section 6(e) of the Agreement will be payable on the day that
notice of the amount payable is effective; provided that if Counterparty elects to receive Shares or Alternative Delivery Property in accordance with Section 14, such Shares or Alternative Delivery Property shall be delivered on a date
selected by GS&Co as promptly as practicable. 
 16. Automatic Termination Provisions. Notwithstanding anything to the contrary in Section 6
of the Agreement, if a Termination Price is specified in any Supplemental Confirmation, then an Additional Termination Event with Counterparty as the sole Affected Party and the Transaction to which such Supplemental Confirmation relates as the
Affected Transaction will automatically occur without any notice or action by GS&Co. or Counterparty if the closing price of the Shares on the Exchange for any two consecutive Exchange Business Days is below such Termination Price, and such
second consecutive Exchange Business Day will be the “Early Termination Date” for purposes of the Agreement. 
 17. Delivery of Cash. For
the avoidance of doubt, nothing in this Master Confirmation shall be interpreted as requiring Counterparty to deliver cash in respect of the settlement of the Transactions contemplated by this Master Confirmation following payment by Counterparty of
the relevant Prepayment Amount and any relevant Counterparty Additional Payment Amount, except in circumstances where the required cash settlement thereof is permitted for 

  
 16 

 
classification of the contract as equity by ASC 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity, as in effect on the
relevant Trade Date (including, without limitation, where Counterparty so elects to deliver cash or fails timely to elect to deliver Shares or Alternative Delivery Property in respect of the settlement of such Transactions). 

18. Claim in Bankruptcy. GS&Co. acknowledges and agrees that this Confirmation is not intended to convey to it rights with respect to the
Transactions that are senior to the claims of common stockholders in the event of Counterparty’s bankruptcy. 
 19. Governing Law. The
Agreement, this Master Confirmation, each Supplemental Confirmation and all matters arising in connection with the Agreement, this Master Confirmation and each Supplemental Confirmation shall be governed by, and construed and enforced in accordance
with, the laws of the State of New York (without reference to its choice of laws doctrine other than Title 14 of Article 5 of the New York General Obligations Law). 

20. Illegality. The parties agree that, for the avoidance of doubt, for purposes of Section 5(b)(i) of the Agreement, “any applicable
law” shall include the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, any rules and regulations promulgated thereunder and any similar law or regulation, without regard to Section 739 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act of 2010 or any similar legal certainty provision in any legislation enacted, or rule or regulation promulgated, on or after the Trade Date, and the consequences specified in the Agreement, including, without
limitation, the consequences specified in Section 6 of the Agreement, shall apply to any Illegality arising from any such act, rule or regulation. 

21. Offices. 
 (a) The Office of
GS&Co. for each Transaction is: 200 West Street, New York, New York 10282¬2198. 
 (b) The Office of Counterparty for each
Transaction is: 500 West Main Street, Louisville, Kentucky 40202. 
 22. Waiver of Trial by Jury. EACH PARTY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE AGREEMENT, THIS MASTER CONFIRMATION, ANY SUPPLEMENTAL CONFIRMATION, ANY TRANSACTION
HEREUNDER AND/OR ALL MATTERS ARISING IN CONNECTION WITH THE AGREEMENT, THIS MASTER CONFIRMATION, ANY SUPPLEMENTAL CONFIRMATION AND/OR ANY TRANSACTION HEREUNDER. 

23. Submission to Jurisdiction. Section 13(b) of the Agreement is deleted in its entirety and replaced by the following: 

“Each party hereby irrevocably and unconditionally submits for itself and its property in any suit, legal action or proceeding relating to this Agreement
and/or any Transaction, or for recognition and enforcement of any judgment in respect thereof (each, “Proceedings”), to the exclusive jurisdiction of the Supreme Court of the State of New York, sitting in New York County, the courts of the
United States of America for the Southern District of New York and appellate courts from any thereof. Nothing in the Master Confirmation, any Supplemental Confirmation or this Agreement precludes either party from bringing Proceedings in any other
jurisdiction if (A) the courts of the State of New York or the United States of America for the Southern District of New York lack jurisdiction over the parties or the subject matter of the Proceedings or declines to accept the Proceedings on
the grounds of lacking such jurisdiction; (B) the Proceedings are commenced by a party for the purpose of enforcing against the other party’s property, assets or estate any decision or judgment rendered by any court in which Proceedings
may be brought as provided hereunder; (C) the Proceedings are commenced to appeal any such court’s decision or judgment to any higher court with competent appellate jurisdiction over that court’s decisions or judgments if that higher
court is located outside the State of New York or Borough of Manhattan, such as a federal court of appeals or the U.S. Supreme Court; or (D) any suit, action or proceeding has been commenced in another jurisdiction by or against the other party
or against its property, assets or estate and, in order to exercise or protect its rights, interests or remedies under this Agreement, the Master Confirmation or any Supplemental Confirmation, the party (1) joins, files a claim, or takes any
other action, in any such suit, action or proceeding, or (2) otherwise commences any Proceeding in that other jurisdiction as the result of that other suit, action or proceeding having commenced in that other jurisdiction.” 

  
 17 

 24. Counterparts. This Master Confirmation may be executed in any number of counterparts, all of
which shall constitute one and the same instrument, and any party hereto may execute this Master Confirmation by signing and delivering one or more counterparts. 

  
 18 

 Counterparty hereby agrees (a) to check this Master Confirmation carefully and
immediately upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by GS&Co.) correctly sets forth the terms of the agreement between
GS&Co. and Counterparty with respect to any particular Transaction to which this Master Confirmation relates, by manually signing this Master Confirmation or this page hereof as evidence of agreement to such terms and providing the other
information requested herein and immediately returning an executed copy to Equity Derivatives Documentation Department, Facsimile No. 212-428-1980/83. 

 

			
	Yours faithfully,
	
	GOLDMAN SACHS & CO. LLC
		
	By:	 	 /s/ Gianfranco Bartellino

	Name:	 	Gianfranco Bartellino
	Title:	 	Vice President

 Agreed and Accepted By: 
  

			
	HUMANA INC.
		
	By:	 	 /s/ Alan J. Bailey

	Name:	 	Alan J. Bailey
	Title:	 	Vice President and Treasurer

  
 [Signature Page to the
Master Confirmation] 

 SCHEDULE A 

SUPPLEMENTAL CONFIRMATION 
  

			
	To:	 	Humana Inc.
		 	500 West Main Street
		 	Louisville, Kentucky 40202
		
	A/C:	 	046957643
		
	From:	 	Goldman Sachs & Co. LLC
		
	Ref. No:	 	[Insert Reference No.]
		
	Date:	 	[Insert Date]

 The purpose of this Supplemental Confirmation is to confirm the terms and conditions of the Transaction
entered into between Goldman Sachs & Co. LLC (“GS&Co.”) and Humana Inc. (“Counterparty”) (together, the “Contracting Parties”) on the Trade Date specified below. This Supplemental
Confirmation is a binding contract between GS&Co. and Counterparty as of the relevant Trade Date for the Transaction referenced below. 

1.    This Supplemental Confirmation supplements, forms part of, and is subject to the Master Confirmation dated as of November 28,
2018 (the “Master Confirmation”) between the Contracting Parties, as amended, supplemented or otherwise modified from time to time. All provisions contained in the Master Confirmation govern this Supplemental Confirmation except as
expressly modified below. 
 2.    The terms of the Transaction to which this Supplemental Confirmation relates are as follows: 

 

			
	Trade Date:	  	[                ]
		
	Forward Price Adjustment Amount:	  	USD [                ]
		
	Calculation Period Start Date:	  	[                ]
		
	Scheduled Termination Date:	  	[                ]
		
	First Acceleration Date:	  	[                ]
		
	Prepayment Amount:	  	USD [                ]
		
	Prepayment Date:	  	[                ]
		
	Counterparty Additional Payment Amount:	  	USD [                ]

  

			
	Initial Shares:	  	[    ] Shares; provided that if, in connection with the Transaction, GS&Co. is unable, after using good faith, commercially reasonable efforts, to borrow or otherwise acquire a number of Shares equal
to the Initial Shares for delivery to Counterparty on the Initial Share Delivery Date, the Initial Shares delivered on the Initial Share Delivery Date shall be reduced to such number of Shares that GS&Co. is able to so borrow or otherwise
acquire; provided further that (i) if the Initial Shares are reduced as provided in the preceding proviso, then GS&Co. shall use good faith, commercially reasonable efforts to borrow or otherwise acquire an additional number
of Shares equal to the shortfall in the Initial Shares delivered on the Initial Share Delivery Date and shall deliver such additional Shares as promptly as practicable, and all Shares so delivered

  
 1 

			
		  	shall be considered Initial Shares, and (ii) if fewer than [    ] Initial Shares are so delivered in the aggregate on or prior to the second Exchange Business Day following the Initial Share Delivery Date,
then (A) the Prepayment Amount shall be reduced by an amount equal to (x)(I) [    ] minus (II) the aggregate number of Initial Shares so delivered on or prior to such second Exchange Business Day multiplied by
(y) USD [    ] divided by (z) [    ], and (B) GS&Co. shall return to Counterparty on such second Exchange Business Day the amount by which the Prepayment Amount is so reduced.
		
	Initial Share Delivery Date:	  	[                ]
		
	Ordinary Dividend Amount:	  	For any calendar quarter, USD [                ]
		
	Scheduled Ex-Dividend Dates:	  	[                ]
		
	Termination Price:	  	USD [                ] per Share
		
	Additional Relevant Days:	  	The [    ] Exchange Business Days immediately following the Calculation Period.
		
	Concurrent OMR Parameters:	  	Up to [    ]% of ADTV (as defined in Rule 10b-18) daily repurchase amount.

 3.    Counterparty represents to GS&Co. that neither it nor any “affiliated purchaser” (as
defined in Rule 10b-18 under the Exchange Act) has made any purchases of blocks pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act during either
(i) the four full calendar weeks immediately preceding the Trade Date or (ii) during the calendar week in which the Trade Date occurs. 

4.    This Supplemental Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same
instrument, and any party hereto may execute this Supplemental Confirmation by signing and delivering one or more counterparts. 

  
 2 

 Counterparty hereby agrees (a) to check this Supplemental Confirmation carefully and
immediately upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by GS&Co.) correctly sets forth the terms of the agreement between
GS&Co. and Counterparty with respect to the Transaction to which this Supplemental Confirmation relates, by manually signing this Supplemental Confirmation or this page hereof as evidence of agreement to such terms and providing the other
information requested herein and immediately returning an executed copy to Equity Derivatives Documentation Department, facsimile No. 212-428-1980/83. 

 

			
	Yours faithfully,
	
	GOLDMAN SACHS & CO. LLC
		
	By:	 	 /s/ Gianfranco Bartellino

	Name:	 	Gianfranco Bartellino
	Title:	 	Vice President

 Agreed and Accepted By: 
  

			
	HUMANA INC.
		
	By:	 	 /s/ Alan J. Bailey

	Name:	 	Alan J. Bailey
	Title:	 	Vice President and Treasurer

 [Signature Page to the Supplemental Confirmation] 

 ANNEX A 

COUNTERPARTY SETTLEMENT PROVISIONS 

1.    The following Counterparty Settlement Provisions shall apply to the extent indicated under the Master Confirmation:

  

					
		 	Settlement Currency:	  	USD
			
		 	Settlement Method Election:	  	Applicable; provided that Section 7.1 of the Equity Definitions is hereby amended by deleting the word “Physical” in the sixth line thereof and replacing it with the words “Net Share”.
			
	    	 	Electing Party:	  	Counterparty
			
		 	Settlement Method
Election Date	  	The earlier of (i) the Scheduled Termination Date and (ii) the second Exchange Business Day immediately following the Accelerated Termination Date (in which case the election under Section 7.1 of the Equity
Definitions shall be made no later than 10 minutes prior to the open of trading on the Exchange on such second Exchange Business Day), as the case may be.
			
		 	Default Settlement Method:	  	Cash Settlement
			
		 	Forward Cash Settlement Amount:	  	The Number of Shares to be Delivered multiplied by the Settlement Price.
			
		 	Settlement Price:	  	The average of the VWAP Prices for the Exchange Business Days in the Settlement Valuation Period, subject to Valuation Disruption as specified in the Master Confirmation.
			
		 	Settlement Valuation Period:	  	A number of Scheduled Trading Days selected by GS&Co. in its reasonable discretion, beginning on the Scheduled Trading Day immediately following the earlier of (i) the Scheduled Termination Date or (ii) the Exchange
Business Day immediately following the Termination Date.
			
		 	Cash Settlement:	  	If Cash Settlement is applicable, then Buyer shall pay to Seller the absolute value of the Forward Cash Settlement Amount on the Cash Settlement Payment Date.
			
		 	Cash Settlement
Payment Date:	  	The date one Settlement Cycle following the last day of the Settlement Valuation Period.
			
		 	Net Share Settlement
Procedures:	  	If Net Share Settlement is applicable, Net Share Settlement shall be made in accordance with paragraphs 2 through 7 below.

 2.    Net Share Settlement shall be made by delivery on the Cash Settlement Payment Date
of a number of Shares satisfying the conditions set forth in paragraph 3 below (the “Registered Settlement Shares”), or a number of Shares not satisfying such conditions (the “Unregistered Settlement Shares”), in
either case with a value equal to the absolute value of the Forward Cash Settlement Amount, with such Shares’ value based on the value thereof to GS&Co. (which value shall, in the case of Unregistered Settlement Shares, take into account a
commercially reasonable illiquidity discount), in each case as determined by the Calculation Agent. 

  
 1 

 3.    Counterparty may only deliver Registered Settlement Shares
pursuant to paragraph 2 above if: 
 (a)    a registration statement covering public resale of the Registered Settlement
Shares by GS&Co. (the “Registration Statement”) shall have been filed with the Securities and Exchange Commission under the Securities Act and been declared or otherwise become effective on or prior to the date of delivery, and
no stop order shall be in effect with respect to the Registration Statement; a printed prospectus relating to the Registered Settlement Shares (including any prospectus supplement thereto, the “Prospectus”) shall have been delivered
to GS&Co., in such quantities as GS&Co. shall reasonably have requested, on or prior to the date of delivery; 

(b)    the form and content of the Registration Statement and the Prospectus (including, without limitation, any sections
describing the plan of distribution) shall be satisfactory to GS&Co.; 
 (c)    as of or prior to the date of
delivery, GS&Co. and its agents shall have been afforded a reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities and the results of such
investigation are satisfactory to GS&Co., in its discretion; and 
 (d)    as of the date of delivery, an agreement
(the “Underwriting Agreement”) shall have been entered into with GS&Co. in connection with the public resale of the Registered Settlement Shares by GS&Co. substantially similar to underwriting agreements customary for
underwritten offerings of equity securities, in form and substance satisfactory to GS&Co., which Underwriting Agreement shall include, without limitation, provisions substantially similar to those contained in such underwriting agreements
relating, without limitation, to the indemnification of, and contribution in connection with the liability of, GS&Co. and its affiliates and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative
assurance letters. 
 4.    If Counterparty delivers Unregistered Settlement Shares pursuant to paragraph 2 above: 

(a)    all Unregistered Settlement Shares shall be delivered to GS&Co. (or any affiliate of GS&Co. designated by
GS&Co.) pursuant to the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof; 

(b)    as of or prior to the date of delivery, GS&Co. and any potential purchaser of any such shares from GS&Co.
(or any affiliate of GS&Co. designated by GS&Co.) identified by GS&Co. shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for private
placements of similar size of equity securities (including, without limitation, the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by
them); provided that, prior to receiving or being granted access to any such information, any such potential purchaser may be required by Counterparty to enter into a customary nondisclosure agreement with Counterparty in respect of any such
due diligence investigation; 
 (c)    as of the date of delivery, Counterparty shall enter into an agreement (a
“Private Placement Agreement”) with GS&Co. (or any affiliate of GS&Co. designated by GS&Co.) in connection with the private placement of such shares by Counterparty to GS&Co. (or any such affiliate) and the private
resale of such shares by GS&Co. (or any such affiliate), substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance commercially reasonably satisfactory to
GS&Co., which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in such private placement purchase agreements relating, without limitation, to the indemnification of, and
contribution in connection with the liability of, GS&Co. and its affiliates and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters, and shall provide for the payment by
Counterparty of all reasonable fees and actual, documented out-of-pocket expenses in connection with such resale, including all reasonable fees and actual, documented out-of-pocket expenses of counsel for GS&Co., and shall contain representations, warranties, covenants and agreements of Counterparty reasonably necessary or advisable to
establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resales; and 

  
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 (d)    in connection with the private placement of such shares by
Counterparty to GS&Co. (or any such affiliate) and the private resale of such shares by GS&Co. (or any such affiliate), Counterparty shall, if so requested by GS&Co., prepare, in cooperation with GS&Co., a private placement
memorandum in form and substance reasonably satisfactory to GS&Co. 
 5.    GS&Co., itself or through an
affiliate (the “Selling Agent”) or any underwriter(s), will sell all, or such lesser portion as may be required hereunder, of the Registered Settlement Shares or Unregistered Settlement Shares and any Makewhole Shares (as defined
below) (together, the “Settlement Shares”) delivered by Counterparty to GS&Co. pursuant to paragraph 6 below commencing on the Cash Settlement Payment Date and continuing until the date on which the aggregate Net Proceeds (as
such term is defined below) of such sales, as determined by GS&Co., is equal to the absolute value of the Forward Cash Settlement Amount (such date, the “Final Resale Date”). If Counterparty is prohibited by law or by contract
from disclosing all material information known to Counterparty with respect to Counterparty and the Shares to any potential purchasers of such Settlement Shares, then the sale of such Settlement Shares shall not be required to commence or may be
suspended until Counterparty is able to so disclose such information; provided that (x) Counterparty shall, no later than the date that is five months following the Cash Settlement Payment Date, disclose all such information to potential
purchasers of such Settlement Shares reasonably identified by GS&Co and (y) during the pendency of such period, interest shall accrue on the absolute value of the Forward Cash Settlement Amount at the rate of interest for
Counterparty’s long term, unsecured and unsubordinated indebtedness, as determined by the Calculation Agent. If the proceeds of any sale(s) made by GS&Co., the Selling Agent or any underwriter(s), net of any fees and commissions (including,
without limitation, underwriting or placement fees) customary for similar transactions under the circumstances at the time of the offering, together with carrying charges and expenses incurred in connection with the offer and sale of the Shares
(including, but without limitation to, the covering of any over-allotment or short position (syndicate or otherwise)) (the “Net Proceeds”) exceed the absolute value of the Forward Cash Settlement Amount, GS&Co. will refund, in
USD, such excess to Counterparty on the date that is three (3) Currency Business Days following the Final Resale Date, and, if any portion of the Settlement Shares remains unsold, GS&Co. shall return to Counterparty on that date such unsold
Shares. 
 6.    If the Calculation Agent determines that the Net Proceeds received from the sale of the Registered
Settlement Shares or Unregistered Settlement Shares or any Makewhole Shares, if any, pursuant to this paragraph 6 are less than the absolute value of the Forward Cash Settlement Amount (the amount in USD by which the Net Proceeds are less than the
absolute value of the Forward Cash Settlement Amount being the “Shortfall” and the date on which such determination is made, the “Deficiency Determination Date”), Counterparty shall on the Exchange Business Day next
succeeding the Deficiency Determination Date (the “Makewhole Notice Date”) deliver to GS&Co., through the Selling Agent, a notice of Counterparty’s election that Counterparty shall either (i) pay an amount in cash
equal to the Shortfall on the day that is one (1) Currency Business Day after the Makewhole Notice Date, or (ii) deliver additional Shares. If Counterparty elects to deliver to GS&Co. additional Shares, then Counterparty shall deliver
additional Shares in compliance with the terms and conditions of paragraph 3 or paragraph 4 above, as the case may be (the “Makewhole Shares”), on the first Clearance System Business Day which is also an Exchange Business Day
following the Makewhole Notice Date in such number as the Calculation Agent reasonably believes would have a market value on that Exchange Business Day equal to the Shortfall. Such Makewhole Shares shall be sold by GS&Co. in accordance with the
provisions above; provided that if the sum of the Net Proceeds from the sale of the originally delivered Shares and the Net Proceeds from the sale of any Makewhole Shares is less than the absolute value of the Forward Cash Settlement Amount
then Counterparty shall, at its election, either make such cash payment or deliver to GS&Co. further Makewhole Shares until such Shortfall has been reduced to zero. 

  
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 7.    Notwithstanding the foregoing, in no event shall the aggregate
number of Settlement Shares and Makewhole Shares be greater than the Reserved Shares minus the amount of any Shares actually delivered by Counterparty under any other Transaction(s) under this Master Confirmation (the result of such calculation, the
“Capped Number”). Counterparty represents (which shall be deemed to be repeated on each day that a Transaction is outstanding) that the Capped Number is equal to or less than the number of Shares determined according to the
following formula: 
  

					
		  	A — B
	    	  	Where	  	A = the number of authorized but unissued shares of Counterparty that are not reserved for future issuance on the date of the determination of the Capped Number; and
			
		  		  	B = the maximum number of Shares required to be delivered to third parties if Counterparty elected Net Share Settlement of all transactions in the Shares (other than Transactions in the Shares under this Master Confirmation) with
all third parties that are then currently outstanding and unexercised.

 “Reserved Shares” means initially, 4,844,492 Shares. The Reserved Shares may be increased or
decreased in a Supplemental Confirmation. 

  
 4

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