Document:

ex-10.2

 

 

 

 

 

 

 THE PROPERTY OPTION AGREEMENT
 

 

 

 

 GREGORY R. THOMSON 
 

 AND
 

 PUEBLA RESOURCES CORP.
 

 

 

 THE GOLDSTAR
 MINERAL PROPERTY
 

 PROVINCE OF BRITISH COLUMBIA
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 

 

 

 

 

 

 TABLE OF CONTENTS
 

 	 	
	 DEFINITIONS
	 3

	  
	  

	 REPRESENTATIONS AND WARRANTIES OF THOMSON
	 4

	  
	  

	 REPRESENTATIONS AND WARRANTIES OF PUEBLA 
	 5

	  
	  

	 GRANT AND EXERCISE OF OPTION
	 6

	  
	  

	 OBLIGATIONS OF THOMSON DURING PROPERTY OPTION PERIOD 
	 7

	  
	  

	 TERMINATION OF PROPERTY ACQUISITION 
	 7

	  
	  

	 FORCE  MAJEURE 
	 8

	  
	  

	 CONFIDENTIAL INFORMATION 
	 8

	  
	  

	 ARBITRATION 
	 8

	  
	  

	 DEFAULT AND TERMINATION 
	 9

	  
	  

	 NOTICES 
	 9

	  
	  

	 GENERAL 
	 9

 

 SCHEDULE “A”
 DESCRIPTION OF PROPERTY
 

 

 

 

 

 

 

 

 

 

 

 

 2
 

 
 OPTION AGREEMENT
 

 

 THIS AGREEMENT made effective as of 10th day of January, 2016.
 

 BETWEEN:
 

 GREGORY R. THOMSON an individual, with a residence at 21928 48th Avenue, Suite 40, Langley, British Columbia, Canada  
 

 (hereafter “Thomson”)
 

 

 AND:
 PUEBLA RESOURCES CORP., a Nevada corporation having offices at 50 West Liberty Street, Suite 880, Reno, NV 89501, USA
 

 (hereafter “Puebla”)
 

 

 WHEREAS:
 

 A. 
 Thomson is the holder of all Property Rights related to the Property; and
 

 B. 
 Thomson has agreed to grant an Option to Puebla for Puebla to acquire a 100% interest in and to the Property Rights and the Property, on the terms and conditions hereinafter set forth;
 

 NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the sum of $10.00 now paid by Puebla to Thomson (the receipt of which is hereby acknowledged), the parties agree as follows:
 

 DEFINITIONS
 

 1.1 
 For the purposes of this Agreement the following words and phrases shall have the following meanings, namely:
 

 a)
 “Agreement” means this agreement and any amendments thereto from time to time;
 

 b)
 “Commencement Date” means the date of this Agreement;
 

 c)
 “Completion Date” means the date on which Puebla fulfills all obligations with respect to the proper exercise of the Option as contemplated in Article 4 hereof;
 

 d)
 “Dollar(s)” means the currency of the United States of America;
 

 e)
 “Exploration Expenditures” means the sum of all costs of acquisition and maintenance of the Property, all exploration and development expenditures, and all other costs and expenses of whatsoever kind or nature including those of a capital nature, incurred or chargeable by Puebla with respect to the exploration and development of the Property. 
 

 

 3
 

 
 

 f)
 “Feasibility Report” means a detailed written report of the results of a comprehensive study on the economic feasibility of placing the Property or a portion thereof into Commercial Production and shall include a reasonable assessment of the mineral ore reserves and their amenability to metallurgical treatment, a description of the work, equipment and supplies required to bring the Property or a portion thereof into Commercial Production and the estimated cost thereof, a description of the mining methods to be employed and a financial appraisal of the proposed operations supported by an explanation of the data used therein;
 

 g)
  “Mine” means the workings established and assets acquired, including, without limiting the generality of the foregoing, development headings, plant and concentrator installations, infrastructure, housing, airport and other facilities to bring the Property into Commercial Production;
 

 a.
 “Mineral Products” means the end products derived from operating the Property as a Mine;
 

 b.
 “Mining Operations” means every kind of work done:
 

 c.
 on or in respect of the Property in accordance with a Feasibility Report; or
 

 d.
 if not provided for in a Feasibility Report, unilaterally and in good faith to maintain the Property in good standing, to prevent waste or to otherwise discharge any obligation which is imposed upon it pursuant to this Agreement
 

 including, without limiting the generality of the foregoing, investigating, prospecting, exploring, developing, property maintenance, preparing reports, estimates and studies, designing, equipping, improving, surveying, construction and mining, milling, concentrating, rehabilitation, reclamation, and environmental protection;
 

 h)
 “Net Smelter Return” or “NSR” means the net revenue that the owner of the NSR receives from the sale of the mine's metal/nonmetal products less transportation and refining costs. 
 

 i)
 “Option” means the irrevocable option for Puebla to earn in and acquire a net undivided interest in and to the Property as provided in this Agreement;
 

 j)
  “Option Period” means the period commencing on the Commencement Date. 
 

 k)
  “Puebla” means Puebla Resources Corp.;
 

 l)
  “Property” means the exploration properties and lands located in the Province of British Columbia all as more particularly described in Schedule “A” hereto;
 

 m)
 “Property Rights” means all applications for permits for general reconnaissance, permit for general reconnaissance, interim approvals, applications for contracts of work, contracts of work, licenses, permits, easements, rights-of-way, certificates and other approvals obtained by either of the parties either before or after the date of this Agreement and necessary for the exploration and development of the Property, or for the purpose of placing the Property into production or continuing production therefrom; .
 

 n)
 “Thomson” means Gregory R. Thomson 
 

 4
 

 
 

 REPRESENTATIONS AND WARRANTIES OF THOMSON
 

 2.1 
 Thomson hereby acknowledges and confirms that it is the holder of the Property Rights related to an undivided one hundred (100%) percent interest in the Property as at the date hereof.
 

 2.2
 Thomson represents and warrants to Puebla that;
 

 a)
 Thomson is lawfully authorized to hold his interest in the Property and will remain so entitled until its interests in the Property have been duly transferred to Puebla as contemplated by the terms hereof;
 

 b)
 Thomson is an individual, has attained the age of majority and is legally competent to execute this agreement and to take all actions required pursuant thereto and that upon the execution and delivery, this agreement, will constitute a legal, valid and binding contract of Thomson enforceable against Thomson in accordance with its terms;
 

 c)
 as at the date hereof and at the time of transfer to Puebla of an interest in the Property and/or exploration licenses comprising the Property Thomson is and will be the beneficial owner of its interest in the Property free and clear of all liens, charges, claims, royalties or net profit interests of whatsoever nature, and no taxes or rentals will be due in respect of any thereof;
 

 d)
 Thomson has the right and capacity to deal with the Property and the right to enter into this Agreement and to dispose of its right, title and interest in the Property as herein contemplated;
 

 e)
 there is no adverse claim or challenge against or to Thomson’s interest in the Property, nor to the knowledge of Thomson is there any basis therefor, and there are no outstanding agreements or options to acquire or purchase such interest in the Property or any portion thereof other than this Agreement;
 

 f)
 No person other than Thomson has any royalty, net profit interests or other interest whatsoever in the Property. Thomson holds a a 2% Net Smelter Return interest on the Property. 
 

 g)
 Thomson is duly authorized to execute  this Agreement and for the performance of this Agreement by it, and the consummation of the transactions herein contemplated will not conflict with or result in any breach of any covenants or agreements contained in, or constitute a default under, or result in the creation of any encumbrance under the provisions of its articles or constating documents or any indenture, agreement or other instrument whatsoever to which Thomson is a party or by which itis bound or to which it or the Property may be subject;
 

 h)
 no proceedings are pending for, and he is unaware of any basis for the institution of any proceedings leading to, the placing of Thomson in bankruptcy or subject to any other laws governing the affairs of and insolvent person;
 

 i)
 there are no claims, proceedings, actions or lawsuits in existence and to the best of Thomson’s information and belief none are contemplated or threatened against or with respect to the right, title, estate and interest of Thomson in the Property;
 

 j)
 to the best of its information and belief, all laws, regulations and orders of all governmental agencies having jurisdiction over the Property have been complied with by Thomson;
 

 k)
 to the best of its information and belief Thomson is in good standing under all agreements and instruments affecting the Property to which it is a party or is bound.
 

 5
 

 
 

 2.3 The representations and warranties contained in this section are provided for the exclusive benefit of Puebla, and a breach of any one or more thereof may be waived by Puebla in whole or in part at any time without prejudice to its rights in respect of any other breach of the same or any other representation or warranty, and the representations and warranties contained in this section shall survive the execution hereof.
 

 2.4 The representations and warranties contained in this section shall be deemed to apply to all assignments, transfers, conveyances or other documents transferring to Puebla the interest to be acquired hereunder and there shall not be any merger of any covenant, representation or warranty in such assignments, transfers, conveyance or documents, any rule or law, in equity or statute to the contrary notwithstanding.
 

 REPRESENTATIONS AND WARRANTIES OF PUEBLA
 

 3.1  Puebla represents and warrants to Thomson that:
 

 a)
 it has been duly incorporated and validly exists as a corporation in good standing under the laws of its jurisdiction of incorporation;
 

 b)
 it is or will be prior to acquiring any undivided interest in the Property hereunder, lawfully authorized to hold the Property and real property under the laws of the jurisdiction in which the Property is situate;
 

 c)
 it has duly obtained all corporate authorizations for the execution of this Agreement and for the performance of this Agreement by it, and the consummation of the transaction herein contemplated by it will not conflict with or result in any breach of any covenants or agreements contained in, or constitute a default under, or result in the creation of any encumbrance under the provisions of the articles or the constating documents of it or any shareholders' or directors' resolution, indenture, agreement or other instrument whatsoever to which it is a party or by which they are bound or to which it or the Property may be subject; and,
 

 d)
 no proceedings are pending for, and it is unaware of any basis for the institution of any proceedings leading to, the dissolution or winding up of Puebla or the placing of Puebla in bankruptcy or subject to any other laws governing the affairs of insolvent corporations. 
 

 3.2 The representations and warranties contained in this section are provided for the exclusive benefit of Thomson and a breach of any one or more thereof may be waived by Thomson in whole or in part at any time without prejudice to its rights in respect of any other breach of the same or any other representation or warranty, and the representations and warranties contained in this section shall survive the execution hereof.
 

 3.3 The representations and warranties contained in this section shall be deemed to apply to all assignments, transfers, conveyances or other documents transferring to Thomson the interest to be acquired hereunder and there shall not be any merger of any covenant, representation or warranty in such assignments, transfers, conveyance or documents, any rule or law, in equity or statute to the contrary notwithstanding.
 

 

 

 

 6
 

 
 

 GRANT AND EXERCISE OF OPTION
 

 4.1 Thomson hereby irrevocably grants to Puebla the sole and exclusive right and Option to acquire a one-hundred percent (100%) right, title, estate and interest of Thomson’s net undivided interest in and to the Property, free and clear of all charges, encumbrances, claims, royalties and net profit interests of whatsoever nature with the exception of Thomson’s 2% Net Smelter Return interest in the property.
   
 4.2 If at any time after the date hereof Thomson determines in its sole discretion to commission a Feasibility Report recommending the Construction of a Mine, Thomson shall give written notice thereof to Puebla. 
 

 4.3 The Option may be exercised at any time (subject to the terms as stated herein) by Puebla:  
 

 a)
  by paying Thomson One Thousand Dollars ($1,000) upon the Commencement Date of this Agreement, and;
 

 b)
 by incurring Seventy-Five Thousand Dollars ($75,000) of Exploration Expenditures on the Property prior to December 31, 2022.
 

 4.4 Prior to the exercise of the Option as herein provided, Thomson shall be the operator of the Property and shall carry out exploration and development programs on the Property on the following terms:
 

 a)
 For income tax purposes, all Exploration Expenditures incurred on behalf of Puebla and paid for by Puebla pursuant to such programs shall be incurred for the benefit of Puebla; and
 

 b)
 Until the Option is exercised, Puebla shall have no interest of whatsoever nature in the Property Rights or the Property except as in accordance with the terms of this Agreement.
 

 4.5 If and when the Option has been exercised in accordance with Section 4.3 and commencing on the
 Completion Date the undivided right, title and interest in and to the Property Rights and the Property acquired by Puebla upon the Completion Date shall vest in Puebla free and clear of all charges, encumbrances, claims, royalties or net profit interests of whatsoever nature other than the NSR referred to in para 2.2 f). 
 

 4.6 Within 30 days after the Completion Date, Thomson shall deliver to Puebla such number of duly executed transfers which in the aggregate convey Thomson's interest to be acquired hereunder in the Property in favour of Puebla. In the event that Thomson shall deliver notice to Puebla that it has exercised the Option pursuant to the terms hereof, Puebla shall be entitled to receive and to record such of the transfers contemplated hereby at its own cost with the appropriate governmental office to effect legal transfer of such interest in the Property into the name of Puebla.
 

 4.7 If, during the Option Period, Thomson:
 

 a) makes a voluntary or involuntary assignment into bankruptcy or takes advantage of any legislation for the winding-up or liquidation of the affairs of insolvent or bankrupt persons or has a bankruptcy petition filed against it; or 
 

 b) fails to perform in a manner that is consistent with good mining practice or fails to perform in a manner consistent with its duties and responsibilities under this Agreement and does not remedy such default within 45 days of receipt of notice from Puebla specifying such default Puebla shall have the right to terminate Thomson as the Operator of the Property.  
 

 7
 

 
 

 OBLIGATIONS OF THOMSON DURING OPTION PERIOD
 

 6.1 During the term of this Agreement, Thomson shall:
 

 a) maintain in good standing at Puebla’s expense those mineral claims and/or exploration licenses comprised in the Property by the doing and filing of assessment work or the making of payments in lieu thereof, and the performance of all other actions which may be necessary in that regard and to keep such Property free and clear of all liens and other charges arising from Thomson’s activities thereon except those at the time contested in good faith by Puebla; 
 

 b) permit the directors, officers, employees and designated consultants of Puebla, at their own risk and expense, access to the Property at all reasonable times, and Puebla agrees to indemnify Thomson against and to save it harmless from all costs, claims, liabilities and expenses that Puebla may incur or suffer as a result of any injury (including injury causing death) to any director, officer, employee or designated consultant of Puebla while on the Property;
 

 c) permit Puebla, at its own expense, reasonable access to the results of the work done on the Property during the last completed calendar year;
 

 d) do all work on the Property in a good and workmanlike fashion and in accordance with all applicable laws, regulations, orders and ordinances of any governmental authority;
 

 e) indemnify and save Puebla harmless in respect of all costs, other costs of maintaining the Property in good standing, claims, liabilities and expenses arising out of Thomson's activities on the Property.
 

 TERMINATION OF OPTION
 

 7.1 Provided that Puebla is not in default pursuant to the provisions hereof, Puebla shall have the right at any time during the term of this Agreement to terminate the Option Agreement.  
 

 7.2 Notwithstanding the termination of the Option, Puebla shall have the right, within a period of one hundred and eighty (180) days following the termination of the Option or the end of the Option Period, to remove from the Property all buildings, plant, equipment, machinery, tools, appliances and supplies which have been brought upon the Property by or on behalf of Puebla, and any such property not removed within such 180-day period shall thereafter become the property of Thomson.
 

 FORCE MAJEURE
 

 9.1 If Thomson is at any time either during the term of this Agreement or thereafter prevented or delayed in complying with any provisions of this Agreement by reason of strikes, lock-outs, labour shortages, power shortages, fuel shortages, fires, wars, acts of God, governmental regulations restricting normal operations, shipping delays or any other reason or reasons, other than lack of funds, beyond the control of Thomson, the time limits for the performance by Puebla of its obligations hereunder shall be extended by a period of time equal in length to the period of each such prevention or delay, but nothing herein shall discharge Thomson from its obligations hereunder to maintain the Property in good standing.
 9.2 Thomson shall give prompt notice to Puebla of each event of force majeure under Section 9.1 and upon cessation of such event shall furnish to Puebla with notice to that effect together with particulars of the number of days by which the obligations of Puebla hereunder have been extended by virtue of such event of force majeure and all preceding events of force majeure.
 

 

 8
 

 
 

 CONFIDENTIAL INFORMATION
 

 10.1 The parties to this Agreement shall keep confidential all books, records, files and other information supplied by any party to one of the other parties or to their employees, agents or representative in connection with this Agreement or in respect of the activities carried out on the Property by a party, or related to the sale of minerals, or other products derived from the Property, including all analyses, reports, studies or other documents prepared by a party or its employees, agents or representatives, which contain information from, or otherwise reflects such books, records, files or other information. The parties shall not and shall ensure that their employees, agents or representatives do not disclose, divulge, publish, transcribe, or transfer such information, all or in part, without the prior written consent of the other parties, which may not be arbitrarily withheld and which shall not apply to such information or any part thereof to the extent that: 
 

 a)
 prior to its receipt by a party such information was already in the possession of such party or its employees, agents or representatives; or
 

 b)
 in respect of such information required to be publicly disclosed pursuant to applicable securities or corporate laws.
 

 ARBITRATION
 

 11.1 The parties agree that all questions or matters in dispute with respect to any dispute shall be settled by arbitration and shall be submitted to arbitration pursuant to the terms hereof. 
 

 11.2 It shall be a condition precedent to the right of any parties, to submit any matter to arbitration pursuant to the provisions hereof, that any party intending to refer any matter to arbitration shall have given not less than  ten (10) days' prior notice of its intention to do so to the other party, together with particulars of the matter in dispute. On the expiration of such ten (10) days, the party who gave such notice may proceed to refer the dispute to arbitration as provided in 11.3.
 

 11.3 The party desiring arbitration shall appoint one arbitrator, and shall notify the other party of such appointment, and such other party shall, within fifteen (15) days after receiving such notice, either consent to the appointment of such arbitrator which shall then carry out the arbitration or appoint an arbitrator, and the two arbitrators so named, before proceeding to act, shall, within thirty (30) days of the appointment of the last appointed arbitrator, unanimously agree on the appointment of a third arbitrator to act with them and be chairman of the arbitration herein provided for. If the other parties shall fail to appoint an arbitrator within fifteen (15) days after receiving notice of the appointment of the first arbitrator, the first arbitrator shall be the only arbitrator, and if the two arbitrators appointed by the party shall be unable to agree on the appointment of the chairman, the chairman shall be appointed under the provisions of the Arbitration Act of British Columbia. Except as specifically otherwise provided in this section, the arbitration herein provided for shall be conducted in accordance with such Act. The chairman, or in the case where only one arbitrator is appointed, the single arbitrator, shall fix a time and place in Vancouver, British Columbia, for the purpose of hearing the evidence and representations of the parties, and he shall preside over the arbitration and determine all questions of procedure not provided for under such Act or this section. After hearing any evidence and representations that the parties may submit, the single arbitrator, or the arbitrators, as the case may be, shall make an award and reduce the same to writing, and deliver one copy thereof to each of the parties. The expense of the arbitration shall be paid as specified in the award 
 

 11.4 The parties agree that the award of a majority of the arbitrators, or in the case of a single arbitrator, of such arbitrator, shall be final and binding upon each of them.
 

 9
 

 
 

 DEFAULT AND TERMINATION
 

 12.1 If at any time during the term of this Agreement Thomson fails to perform any obligation required to be performed by it hereunder or is in breach of a warranty given by it hereunder, which failure or breach materially interferes with the implementation of this Agreement, Puebla may terminate this Agreement but only if:
 

 a)
 it shall have first given to the defaulting Thomson a notice of default containing particulars of the obligation which the defaulting Thomson has not performed, or the warranty breached; and
 

 b)
 the defaulting Thomson has not, within forty-five (45) days following delivery of such notice of default, cured such default or commenced proceedings to cure such default by appropriate payment or performance, the defaulting Thomson hereby agreeing that should it so commence to cure any default it will prosecute the same to completion without undue delay, provided however, that this paragraph shall not be extended to a default by Thomson to exercise an Option pursuant to Article 4 thereof.
 

 12.2 Notwithstanding Section 12.1 hereof, if at any time Thomson fails to perform a condition precedent to the exercise of the Option, Puebla shall be entitled to forthwith terminate this Agreement.
 

 NOTICES
 

 13.1 Each notice, demand or other communication required or permitted to be given under this Agreement shall be in writing and shall be sent by prepaid registered mail deposited in a Post Office in Canada or in the United States of America addressed to the party entitled to receive the same, or delivered, telexed, telegraphed or telecopied to such party at the address for such party specified on the face page hereof. The date of receipt of such notice, demand or other communication shall be the date of delivery thereof if delivered, telexed, telegraphed or telecopied, or, if given by registered mail as aforesaid, shall be deemed conclusively to be the third business day after the same shall have been so mailed except in the case of interruption of postal services for any reason whatever, in which case the date of receipt shall be the date on which the notice, demand or other communication is actually received by the addressee.
 

 13.2 Either party may at any time and from time to time notify the other party in writing of a change or address and the new address to which notice shall be given to it thereafter until further change.
 

 GENERAL
 

 14.1 This Agreement shall supersede and replace any other agreement or arrangement, whether oral or written, heretofore existing between the parties in respect of the subject matter of this Agreement. 
 

 14.2 No consent or waiver expressed or implied by any party in respect of any breach or default by any other party in the performance by such other of its obligations hereunder shall be deemed or construed to be a consent to or a waiver of any other breach of default.
 

 14.3 The parties shall promptly execute or cause to be executed all documents, deeds, conveyances and other instruments of further assurance and do such further and other acts which may be reasonably necessary or advisable to carry out fully and effectively the intent and purpose of this Agreement or to record wherever appropriate the respective interest from time to time of the parties in the Property.
 

 

 10
 

 
 

 14.4 This Agreement shall inure to the benefit of and be binding upon the parties and their respective successors and permitted assigns.
 

 14.5 This Agreement shall, (i) be governed by and construed in accordance with the laws of the State of Nevada and the parties hereby irrevocably attorney to the jurisdiction of the said province and (ii) be subject to the approval of all securities regulatory authorities having jurisdiction, such approvals to be sought in a timely and diligent manner.
 

 14.6 Time shall be of the essence in this Agreement.
 

 14.7 Wherever the neuter and singular is used in this Agreement it shall be deemed to include the plural, masculine and feminine, as the case may be.
 

 14.8 The rights and obligations of each party shall be in every case several and not joint or joint and several.
 

 14.9 This Agreement may be executed in any number of identical counterparts each of which shall constitute an original and collectively and separately constitute a single instrument or agreement.
 

 

 IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written.
 

 

 GREGORY R. THOMSON 
 

 

 /s/ Gregory R. Thomson
 Gregory R. Thomson
 

 

 

 PUEBLA RESOURCES CORP.
 

 

 Per /s/ Alejandro Vargas
       Alejandro Vargas, Director, CEO
 

 

 

 

 

 

 

 

 

 11
 

 
 

 SCHEDULE “A”
 

 DESCRIPTION OF PROPERTY
 

 

 

 	 	 	
	 British Columbia Tenure Number
	 Claim Name
	 Area (ha)

	 1048485
	 Goldstar
	 453.262

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  
 

 12eglt_Ex10_29

		
			Exhibit 10.29
		

		
			EGALET CORPORATION
		

		
			2017 INDUCEMENT PLAN
		

		
			
		

		
			

		 

 

		

		
			EGALET CORPORATION
		

		
			2017 INDUCEMENT PLAN
		

			
	
			
				 1.
			

			
	
			
			Purpose of the Plan

		
			The purpose of the Plan is to assist the Company, its Subsidiaries and Affiliates in attracting valued employees by offering them a greater stake in the Company’s success and a closer identity with it, and to encourage ownership of the Company’s stock by such employees.
		

			
	
			
				 2.
			

			
	
			
			Definitions

		
			As used herein, the following definitions shall apply:
		

		
			2.1.  ”Affiliate” means any entity other than the Subsidiaries in which the Company has a substantial direct or indirect equity interest, as determined by the Board.
		

		
			2.2.  ”Award” means a grant of Common Stock, Deferred Stock, Restricted Stock, Restricted Stock Units, Options or SARs under the Plan.
		

		
			2.3.  ”Award Agreement” means the written agreement, instrument or document evidencing an Award, including any such item in an electronic medium.
		

		
			2.4.  ”Board” means the Board of Directors of the Company.
		

		
			2.5.  ”Change in Control” means, after the Effective Date (and not including the public offering of the Company, which shall not be treated as a Change in Control for purposes of the Plan), any of the following events:
		

			
	
			
				 (a)
			a “person” (as such term in used in Sections 13(d) and 14(d) of the 1934 Act), other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, is or 

		 

		

			2

		

 

	becomes the “beneficial owner” (as defined in Rule 13D‐3 under the 1934 Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities; or

			
	
			
				 (b)
			during any period of two consecutive years, individuals who at the beginning of such period constitute the Board and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Section 2.5(a), Section 2.5(c) or Section 2.5(d) hereof) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously approved, cease for any reason to constitute a majority thereof; or

			
	
			
				 (c)
			the Company merges or consolidates with any other corporation, other than in a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or

			
	
			
				 (d)
			the complete liquidation of the Company or the sale or other disposition of all or substantially all of the Company’s assets.

			
	
			
				 (e)
			Notwithstanding anything in the Plan or an Award Agreement to the contrary, if an Award is subject to Section 409A of the Code, no event that, but for this Section, would be a Change in Control as defined in the Plan or the Award Agreement, as 

		 

		

			3

		

 

	applicable, shall be a Change in Control unless such event is also a “change in control event” as defined in Section 409A of the Code.

		
			2.6.  ”Code” means the Internal Revenue Code of 1986, as amended, and the Treasury regulations promulgated thereunder. A reference to any provision of the Code or the Treasury regulations promulgated thereunder shall include reference to any successor provision of the Code or the Treasury regulations.
		

		
			2.7.  ”Committee” means the committee designated by the Board to administer the Plan under Section 4. The Committee shall have at least two members and each member of the Committee shall be a Non-Employee Director and an “independent director” within the meaning of Rule 5605(a)(2) of the NASDAQ Stock Market Equity Rules.
		

		
			2.8.  ”Common Stock” means the common stock of the Company, par value $0.001 per share, or such other class or kind of shares or other securities resulting from the application of Section 12.
		

		
			2.9.  ”Company” means Egalet Corporation, a Delaware corporation, or any successor corporation.
		

		
			2.10.  ”Deferral Period” means the period during which the receipt of a Deferred Stock Award under Section 7 will be deferred.
		

		
			2.11.  ”Deferred Stock” means Common Stock to be delivered at the end of a Deferral Period and awarded by the Committee under Section 7.
		

		
			2.12.  ”Effective Date” has the meaning set forth in Section 24.
		

		
			2.13.  ”Eligible Individual” means any individual who was not previously an employee or a Non-Employee Director of the Company or any of its Subsidiaries (or who has had 

		 

		

			4

		

 

a bona fide period of non-employment with the Company and its Subsidiaries) who is hired by the Company or a Subsidiary.
		

		
			2.14.  ”Fair Market Value” means the fair market value of Common Stock determined by such methods or procedures as shall be established from time to time by the Committee in good faith and in accordance with applicable law. Unless otherwise determined by the Committee, the Fair Market Value of Common Stock shall mean, on any given date, the closing price of a share of Common Stock on the principal national securities exchange on which the Common Stock is listed on such date or, if Common Stock was not traded on such date, on the last preceding day on which the Common Stock was traded.
		

		
			2.15.  ”1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder. A reference to any provision of the 1934 Act or rule promulgated under the 1934 Act shall include reference to any successor provision or rule.
		

		
			2.16.  ”Non-Employee Director” means a member of the Board who meets the definition of a “non-employee director” under Rule 16b‐3(b)(3) promulgated by the Securities and Exchange Commission under the 1934 Act.
		

		
			2.17.  ”Option” means a right to purchase a specified number of shares of Common Stock at a specified price awarded by the Committee under Section 6 of the Plan.
		

		
			2.18.  ”Participant” means any Eligible Individual who receives an Award.
		

		
			2.19.  ”Plan” means the Egalet Corporation 2017 Inducement Plan herein set forth, as amended and/or restated from time to time.
		

		
			2.20.  ”Restricted Stock” means Common Stock awarded by the Committee under Section 8 of the Plan.
		

		
			

		 

		

			5

		

 

		

		
			2.21.  ”Restricted Stock Unit” means the right to a payment in Common Stock or in cash, or in a combination thereof, awarded by the Committee under Section 9 of the Plan.
		

		
			2.22.  ”Restriction Period” means the period during which Restricted Stock awarded under Section 8 of the Plan and Restricted Stock Units awarded under Section 9 of the Plan are subject to forfeiture.
		

		
			2.23.  ”SAR” means a stock appreciation right awarded by the Committee under Section 11 of the Plan.
		

		
			2.24.  ”Subsidiary” means any corporation (other than the Company), partnership, joint venture or other business entity of which 50% or more of the outstanding voting power is beneficially owned, directly or indirectly, by the Company.
		

			
	
			
				 3.
			

			
	
			
			Eligibility

		
			Any Eligible Individual is eligible to receive an Award.
		

			
	
			
				 4.
			

			
	
			
			Administration and Implementation of Plan

		
			4.1.  The Plan shall be administered by the Committee. Any action of the Committee in administering the Plan shall be final, conclusive and binding on all persons, including the Company, its Subsidiaries and Affiliates, their employees and directors, Participants, persons claiming rights from or through Participants and stockholders of the Company. No member of the Committee shall be personally liable for any action, determination, or interpretation taken or made in good faith by the Committee with respect to the Plan or any Awards granted hereunder, and all members of the Committee shall be fully indemnified and protected by the Company in respect of any such action, determination or interpretation.
		

		
			

		 

		

			6

		

 

		

		
			4.2.  Subject to the provisions of the Plan, the Committee shall have full and final authority in its discretion (a) to select the Eligible Individuals who will receive Awards pursuant to the Plan; (b) to determine the type or types of Awards to be granted to each Participant; (c) to determine the number of shares of Common Stock to which an Award will relate, the terms and conditions of any Award granted under the Plan (including, but not limited to, restrictions as to vesting, transferability or forfeiture, exercisability or settlement of an Award and waivers or accelerations thereof, and waivers of or modifications to performance conditions relating to an Award, based in each case on such considerations as the Committee shall determine) and all other matters to be determined in connection with an Award; (d) to determine whether, to what extent, and under what circumstances an Award may be canceled, forfeited, or surrendered; (e) to determine whether performance goals to which the settlement of an Award is subject are satisfied; (e) to correct any defect or supply any omission or reconcile any inconsistency in the Plan, and to adopt, amend and rescind such rules and regulations as, in its opinion, may be advisable in the administration of the Plan; and (f) to construe and interpret the Plan and to make all other determinations as it may deem necessary or advisable for the administration of the Plan.
		

		
			4.3.  The Committee’s powers shall also include responsibility to determine the effect, if any, of a Change in Control of the Company upon outstanding Awards. Upon a Change in Control, the Committee may, at its discretion, (i) fully vest any or all Awards made under the Plan, (ii) determine whether all applicable performance goals have been achieved and the applicable level of performance, (iii) cancel any outstanding Awards in exchange for a cash payment of an amount (including zero) equal to the difference between the then Fair Market Value of the Award less the option or base price of the Award, (iv) after having given the Participant a reasonable 

		 

		

			7

		

 

chance to exercise any vested outstanding Options or SARs, terminate any or all of the Participant’s unexercised Options or SARs, (v) where the Company is not the surviving corporation, cause the surviving corporation to assume all outstanding Awards or replace all outstanding Awards with comparable awards or (vi) take such other action as the Committee shall determine to be appropriate.
		

		
			4.4.  The Committee may impose on any Award or the exercise thereof, at the date of grant or thereafter, such terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall determine, including terms requiring forfeiture of Awards in the event of the Participant’s termination of employment or service with the Company or any Subsidiary or Affiliate; provided, however, that the Committee shall retain full power to accelerate or waive any such term or condition as it may have previously imposed, including, without limitation, any minimum vesting period. All Awards shall be evidenced by an Award Agreement.
		

			
	
			
				 5.
			

			
	
			
			Shares of Stock Subject to the Plan

		
			5.1.  Subject to adjustment as provided in Section 12, the total number of shares of Common Stock available for Awards under the Plan shall be 300,000.
		

		
			5.2.  If any shares subject to an Award are forfeited or such Award otherwise terminates, any shares counted against the number of shares available for issuance pursuant to the Plan with respect to such Award shall, to the extent of any such forfeiture or termination, again be available for Awards under the Plan; provided, however, that the Committee may adopt procedures for the counting of shares relating to any Award to ensure appropriate counting, avoid double counting, and provide for adjustments in any case in which the number of shares actually distributed differs from the number of shares previously counted in connection with such Award. SARs or Restricted Stock Units to be settled in shares of Common Stock shall be 

		 

		

			8

		

 

counted in full against the number of shares available for award under the Plan, regardless of the number of shares of Common Stock issued upon settlement of the SAR or Restricted Stock Unit. If any shares subject to an Award are retained or reacquired by the Company in payment of an exercise price or satisfaction of a withholding or other tax obligation in connection with any Award, such shares shall not be made available for future Awards under the Plan.
		

		
			5.3.  Any shares issued hereunder may consist, in whole or in part, of authorized and unissued shares or treasury shares. Any shares issued by the Company through the assumption or substitution of outstanding grants in connection with the acquisition of another entity shall not reduce the maximum number of shares available for delivery under the Plan.
		

			
	
			
				 6.
			

			
	
			
			Common Stock

		
			An Award of Common Stock is a grant by the Company of a specified number of shares of Common Stock to the Participant, which shares are not subject to forfeiture except as set forth in Section 20. Upon the Award of Common Stock, the Committee may direct the number of shares of Common Stock subject to such Award be issued to the Participant, designating the Participant as the registered owner. The Participant shall have all of the customary rights of a stockholder with respect to the Award of Common Stock, including the right to vote shares of the Common Stock and receive dividends with respect to the Common Stock.
		

		
			

		 

		

			9

		

 

		

			
	
			
				 7.
			

			
	
			
			Deferred Stock

		
			An Award of Deferred Stock is an agreement by the Company to deliver to the Participant a specified number of shares of Common Stock at the end of a specified Deferral Period or Periods. Such an Award shall be subject to the following terms and conditions:
		

		
			7.1.  Upon the Award of Deferred Stock, the Committee shall direct that the number of shares subject to such Award be credited to the Participant’s account on the books of the Company but that issuance and delivery of the same shall be deferred until the date or dates provided in the Award Agreement. Prior to issuance and delivery of the Deferred Stock, the Participant shall have no rights as a stockholder with respect to any shares of Deferred Stock credited to the Participant’s account.
		

		
			7.2.  During the Deferral Period, no dividend shall be paid with respect to shares covered by a Deferred Stock Award and the Participant shall have no future right to any dividend paid during the Deferral Period.
		

		
			7.3.  The Deferral Period may consist of one or more installments. Provided that the Deferred Stock has not been previously forfeited, at the end of the Deferral Period or any installment thereof, the shares of Deferred Stock applicable to such installment, shall be issued and delivered to the Participant (or, where appropriate, the Participant’s legal representative) in accordance with the terms of the Award Agreement.
		

		
			

		 

		

			10

		

 

		

			
	
			
				 8.
			

			
	
			
			Restricted Stock

		
			An Award of Restricted Stock is a grant by the Company of a specified number of shares of Common Stock to the Participant, which shares are subject to forfeiture upon the happening of specified events. Such an Award shall be subject to the following terms and conditions:
		

		
			8.1.  Upon the Award of Restricted Stock, the Committee may direct the number of shares of Common Stock subject to such Award be issued to the Participant or placed in a restricted stock account (including an electronic account) with the transfer agent and in either case designating the Participant as the registered owner. The certificate(s), if any, representing such shares shall be physically or electronically legended, as applicable, as to sale, transfer, assignment, pledge or other encumbrances during the Restriction Period and, if issued to the Participant, returned to the Company to be held in escrow during the Restriction Period. In all cases, the Participant shall sign a stock power endorsed in blank to the Company to be held in escrow during the Restriction Period.
		

		
			8.2.  During the Restriction Period, the Participant shall have the right to vote shares of Restricted Stock. During the Restriction Period, no dividend shall be paid with respect to the number of shares covered by a Restricted Stock Award and the Participant shall have no future right to any dividend paid during the Restriction Period.
		

		
			8.3.  Provided that the Restricted Stock has not been previously forfeited, at the end of the Restriction Period the restrictions imposed under the Award Agreement shall lapse with respect to the number of shares specified thereunder, and the legend, if any, imposed hereunder shall be removed and such number of shares delivered to the Participant (or, where appropriate, the Participant’s legal representative).
		

		
			

		 

		

			11

		

 

		

			
	
			
				 9.
			

			
	
			
			Restricted Stock Units

		
			An Award of Restricted Stock Units is a grant by the Company of the right to receive a payment in Common Stock or in cash, or in a combination thereof, that is equal to the Fair Market Value of a share of Common Stock as of the date of vesting or payment, as set forth in the applicable Award Agreement, which right is subject to forfeiture upon the happening of specified events. Such an Award shall be subject to the following terms and conditions:
		

		
			9.1.  Any amount payable upon the end of the Restriction Period with respect to a Restricted Stock Unit shall be paid by the Company in shares of Common Stock, in cash or in a combination of shares of Common Stock and cash, as determined by the Committee in its sole discretion or as set forth in the Award Agreement.
		

		
			9.2.  Provided that the Restricted Stock Units have not been previously forfeited, at the end of the Restriction Period the restrictions imposed under the Award Agreement shall lapse with respect to the number of Restricted Stock Units specified thereunder, and shares of Common Stock or cash with a value equal to the Fair Market Value of the shares of Common Stock underlying such Restricted Stock Units shall be delivered to the Participant (or, where appropriate, the Participant’s legal representative).
		

		
			

		 

		

			12

		

 

		

			
	
			
				 10.
			

			
	
			
			Options

		
			Options give a Participant the right to purchase a specified number of shares of Common Stock from the Company for a specified time period at a fixed price. The grant of Options shall be subject to the following terms and conditions:
		

		
			10.1.  Option Price:  The price per share at which Common Stock may be purchased upon exercise of an Option shall be determined by the Committee, but shall be not less than 100% of the Fair Market Value of a share of Common Stock on the date of grant.
		

		
			10.2.  Term of Options:  The term of an Option shall in no event be greater than ten years.
		

		
			10.3.  Payment of Option Price:  The option price of the shares of Common Stock received upon the exercise of an Option shall be paid within three days of the date of exercise: (i) in cash, or (ii) with the proceeds received from a broker-dealer whom the Participant has authorized to sell all or a portion of the Common Stock covered by the Option, or (iii) with the consent of the Committee, in whole or in part in Common Stock held by the Participant and valued at Fair Market Value on the date of exercise. With the consent of the Committee, payment upon the exercise of an Option may be made in whole or in part by Restricted Stock held by the Participant and valued at Fair Market Value on the date the Option is exercised. In such case, the Common Stock to which the Option relates shall be subject to the same forfeiture restrictions originally imposed on the Restricted Stock exchanged therefor. An Option may be exercised only for a whole number of shares of Common Stock.
		

		
			

		 

		

			13

		

 

		

			
	
			
				 11.
			

			
	
			
			Stock Appreciation Rights

		
			SARs give the Participant the right to receive, upon exercise of the SAR, the excess of (i) the Fair Market Value of one share of Common Stock on the date of exercise over (ii) the grant price of the SAR as determined by the Committee, but which may never be less than 100% of the Fair Market Value of a share of Common Stock on the date of grant. The grant of SARs shall be subject to the following terms and conditions:
		

		
			11.1.  The term of a SAR shall in no event be greater than ten years.
		

		
			11.2.  The Committee shall determine the time or times at which a SAR may be exercised in whole or in part, the method of exercise, the method of settlement, form of consideration payable in settlement, method by which Common Stock will be delivered or deemed to be delivered to Participants, whether or not a SAR shall be in tandem with any other Award, and any other terms and conditions of any SAR.
		

		
			11.3.  The Committee may provide that a SAR shall be deemed to be exercised at the close of business on the scheduled expiration date of such SAR.
		

			
	
			
				 12.
			

			
	
			
			Adjustments upon Changes in Capitalization

		
			12.1.  In order to prevent dilution or enlargement of the rights of Participants under the Plan as a result of any stock dividend, recapitalization, forward stock split or reverse stock split, reorganization, division, merger, consolidation, spin-off, combination, repurchase or share exchange, extraordinary or unusual cash distribution or other similar corporate transaction or event that affects the Common Stock, the Committee shall adjust (i) the number and kind of shares of Common Stock which may thereafter be issued in connection with Awards, (ii) the number and kind of shares of Common Stock issuable in respect of outstanding Awards, (iii) the aggregate 

		 

		

			14

		

 

number and kind of shares of Common Stock available under the Plan, and (iv) the exercise or grant price relating to any Award. Any such adjustment shall be made in an equitable manner which reflects the effect of such transaction or event. It is provided, however, that in the case of any such transaction or event, the Committee may make any additional adjustments to the items in (i) through (iv) above which it deems appropriate in the circumstances, or make provision for a cash payment with respect to any outstanding Award.
		

		
			12.2.  In addition, the Committee is authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards, including any Performance Goals, in recognition of unusual or nonrecurring events (including, without limitation, events described in Section 13.1) affecting the Company, any Subsidiary or Affiliate, or in response to changes in applicable laws, regulations, or accounting principles.
		

			
	
			
				 13.
			

			
	
			
			Termination and Amendment

		
			The Board may amend, alter, suspend, discontinue, or terminate the Plan without the consent of the Company’s stockholders or Participants, except that any such amendment, alteration, suspension, discontinuation, or termination shall be subject to the approval of the Company’s stockholders if (i) such action would increase the number of shares subject to the Plan, (ii) such action results in the repricing, replacement or repurchase of any Option, SAR  or other Award, or (iii) such stockholder approval is required by any federal or state law or regulation or the rules of any stock exchange or automated quotation system on which the Common Stock may then be listed or quoted, in each case; provided, however, that without the consent of an affected Participant, no amendment, alteration, suspension, discontinuation, or termination of the Plan may materially and adversely affect the rights of such Participant under any Award theretofore granted and any Award 

		 

		

			15

		

 

Agreement relating thereto, except as the Committee determines in its sole discretion to be necessary or advisable to comply with Section 409A of the Code or an exemption therefrom. The Committee may waive any conditions or rights under, or amend, alter, suspend, discontinue, or terminate, any Award theretofore granted and any Award Agreement relating thereto; provided, however, that any such amendment, alteration, suspension, discontinuation, or termination shall be subject to the approval of the Company’s stockholders if such stockholder approval is required by any federal or state law or regulation or the rules of any stock exchange or automated quotation system on which the Common Stock may then be listed or quoted, in each case; and provided further, however, that without the consent of an affected Participant, no such amendment, alteration, suspension, discontinuation, or termination of any Award may materially and adversely affect the rights of such Participant under such Award, except as the Committee determines in its sole discretion to be necessary or advisable to comply with Section 409A of the Code or an exemption therefrom.
		

			
	
			
				 14.
			

			
	
			
			No Right to Award, Employment or Service

		
			Neither the Plan nor any action taken hereunder shall be construed as giving any Eligible Individual any right to be retained in the employ or service of the Company, any Subsidiary or Affiliate. For purposes of the Plan, transfer of employment or service between the Company and its Subsidiaries and Affiliates shall not be deemed a termination of employment or service.
		

			
	
			
				 15.
			

			
	
			
			Taxes

		
			The Company, any Subsidiary or Affiliate is authorized to withhold from any payment relating to an Award under the Plan, including from a distribution of Common Stock or any payroll or other payment to a Participant amounts of withholding and other taxes due in connection 

		 

		

			16

		

 

with any transaction involving an Award, and to take such other action as the Committee may deem advisable to enable the Company, the Subsidiary or Affiliate and Participants to satisfy obligations for the payment of withholding taxes and other tax obligations relating to any Award. This authority shall include authority to withhold or receive Common Stock or other property and to make cash payments in respect thereof in satisfaction of a Participant’s tax obligations. Withholding of taxes in the form of shares of Common Stock shall not occur at a rate that exceeds the minimum required statutory federal and state withholding rates. Participants who are subject to the reporting requirements of Section 16 of the 1934 Act may elect to pay all or a portion of any withholding or other taxes due in connection with an Award by directing the Company to withhold shares of Common Stock that would otherwise be received in connection with such Award.
		

			
	
			
				 16.
			

			
	
			
			Limits on Transferability; Beneficiaries

		
			No Award or other right or interest of a Participant under the Plan shall be pledged, encumbered, or hypothecated to, or in favor of, or subject to any lien, obligation, or liability of such Participant to, any party, other than the Company, any Subsidiary or Affiliate, or assigned or transferred by such Participant otherwise than by will or the laws of descent and distribution, and such Awards and rights shall be exercisable during the lifetime of the Participant only by the Participant or his or her guardian or legal representative. Notwithstanding the foregoing, the Committee may, in its discretion, provide that Awards or other rights or interests of a Participant granted pursuant to the Plan be transferable, without consideration, to immediate family members (i.e., children, grandchildren or spouse), to trusts for the benefit of such immediate family members and to partnerships in which such family members are the only partners. The Committee may attach to such transferability feature such terms and conditions as it deems advisable. In addition, a 

		 

		

			17

		

 

Participant may, in the manner established by the Committee, designate a beneficiary (which may be a person or a trust) to exercise the rights of the Participant, and to receive any distribution, with respect to any Award upon the death of the Participant. A beneficiary, guardian, legal representative or other person claiming any rights under the Plan from or through any Participant shall be subject to all terms and conditions of the Plan and any Award Agreement applicable to such Participant, except as otherwise determined by the Committee, and to any additional restrictions deemed necessary or appropriate by the Committee.
		

			
	
			
				 17.
			

			
	
			
			No Rights to Awards; No Stockholder Rights

		
			No Participant shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Participants. No Award shall confer on any Participant any of the rights of a stockholder of the Company unless and until Common Stock is duly issued or transferred to the Participant in accordance with the terms of the Award.
		

			
	
			
				 18.
			

			
	
			
			Foreign Nationals.

		
			Without amending the Plan, Awards may be granted to Eligible Individuals who are foreign nationals or are employed or providing services outside the United States or both, on such terms and conditions different from those specified in the Plan as may, in the judgment of the Committee, be necessary or desirable to further the purpose of the Plan. Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative versions of, the Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of the Plan as in effect for any other purpose, provided that no such supplements, amendments, restatements or alternative versions shall include any provisions that are inconsistent with the terms 

		 

		

			18

		

 

of the Plan, as then in effect, unless the Plan could have been amended to eliminate such inconsistency without further approval by the stockholders of the Company.
		

			
	
			
				 19.
			

			
	
			
			Securities Law Requirements

		
			19.1.  No Award granted hereunder shall be exercisable if the Company shall at any time determine that (a) the listing upon any securities exchange, registration or qualification under any state or federal law of any Common Stock otherwise deliverable upon such exercise, or (b) the consent or approval of any regulatory body or the satisfaction of withholding tax or other withholding liabilities, is necessary or appropriate in connection with such exercise. In any of the events referred to in clause (a) or clause (b) above, the exercisability of such Awards shall be suspended and shall not be effective unless and until such withholding, listing, registration, qualifications or approval shall have been effected or obtained free of any conditions not acceptable to the Company in its sole discretion, notwithstanding any termination of any Award or any portion of any Award during the period when exercisability has been suspended.
		

		
			19.2.  The Committee may require, as a condition to the right to exercise any Award that the Company receive from the Participant, at the time any such Award is exercised, vests or any applicable restrictions lapse, representations, warranties and agreements to the effect that the shares are being purchased or acquired by the Participant for investment only and without any present intention to sell or otherwise distribute such shares and that the Participant will not dispose of such shares in transactions which, in the opinion of counsel to the Company, would violate the registration provisions of the Securities Act of 1933, as then amended, and the rules and regulations thereunder. The certificates issued to evidence such shares shall bear appropriate legends summarizing such restrictions on the disposition thereof.
		

		
			

		 

		

			19

		

 

		

			
	
			
				 20.
			

			
	
			
			Recoupment

		
			Any Award granted pursuant to the Plan shall be subject to mandatory repayment by the Participant to the Company pursuant to the terms of any Company “clawback” or recoupment policy directly applicable to the Plan and (i) set forth in the Participant’s Award Agreement or (ii) required by law to be applicable to the Participant.
		

			
	
			
				 21.
			

			
	
			
			Termination

		
			Unless the Plan previously shall have been terminated by action of the Board, the Plan shall terminate on the 10‐year anniversary of the Effective Date, and no Awards under the Plan shall thereafter be granted.
		

			
	
			
				 22.
			

			
	
			
			Fractional Shares

		
			The Company will not be required to issue any fractional shares of Common Stock pursuant to the Plan. The Committee may provide for the elimination of fractions and for the settlement of fractions in cash.
		

			
	
			
				 23.
			

			
	
			
			Governing Law

		
			To the extent that Federal laws do not otherwise control, the validity and construction of the Plan and any Award Agreement entered into thereunder shall be construed and enforced in accordance with the laws of the State of Delaware, but without giving effect to the choice of law principles thereof.
		

			
	
			
				 24.
			

			
	
			
			Effective Date

		
			The Plan shall be effective as of January 16, 2017.
		

		 

		

			20

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