Document:

EX-4.5

  Exhibit 4.5

  ORTHOFIX MEDICAL INC.

  INDUCEMENT PLAN FOR SEASPINE EMPLOYEES

  Nonqualified Stock Option Grant Agreement

  COVER SHEET

  Orthofix Medical Inc., a Delaware corporation (the “Company”), hereby grants to the Award Recipient named below, on the Grant Date set forth below, the right and option to purchase a specified number of shares of the Company’s common stock, par value $0.10 per share (the “Stock”) under the Plan, at the exercise price per share set forth below (the “Exercise Price”) (which Exercise Price is 100% of the Fair Market Value per share as of the Grant Date), subject to the vesting schedule and terms and conditions set forth below (the “Award”). Additional terms and conditions of the Option is set forth on this cover sheet, in the attached Nonqualified Stock Option Grant Agreement (together, the “Agreement”), and in the Company’s Inducement Plan for SeaSpine Employees (as amended from time to time, the “Plan”). Capitalized terms used and not otherwise defined herein shall have the meanings attributed thereto in the Plan.

  			
	 
	 
	 

	Grant Date:
	 
	January 5, 2023

	Name of Award Recipient:
	 
	 

	Employee ID Number:
	 
	 

	Number of Shares of Stock Underlying Options:
	 
	 

	Exercise Price:
	 
	 

  You agree to all of the terms and conditions described in this Agreement and in the Plan, unless you deliver a notice in writing within thirty (30) days of receipt of this Agreement to the Company stating that you do not accept the terms and conditions described in this Agreement and in the Plan. You acknowledge that you have carefully reviewed the Plan and agree that the Plan will control in the event any provision of this Agreement should appear to be inconsistent.

  Attachment

  This is not a stock certificate or a negotiable instrument.

   

  

   

  ORTHOFIX MEDICAL INC.

  INDUCEMENT PLAN FOR SEASPINE EMPLOYEES

  Nonqualified Stock Option Grant Agreement

  ATTACHMENT

  1.GRANT OF OPTION

  (a)Vesting.

  Subject to earlier termination in accordance with the Plan or this Agreement and the terms and conditions herein, the Option granted under this Agreement shall vest with respect to one-third (1/3rd) of the shares of Stock covered hereby on the first anniversary of the Grant Date and one-twelfth (1/12th) of the shares of Stock covered hereby on each of 15-month, 18-month, 21-month, 24-month, 27-month, 30-month, 33-month and 36-month anniversaries of the Grant Date (each, a “Vesting Date”) provided that the Award Recipient continues in Service and has not had a Separation from Service on each such Vesting Date unless otherwise provided under this Agreement or the Plan; provided, further, for the avoidance of doubt, that there shall be no proportionate or partial vesting in the periods prior to or between each Vesting Date unless otherwise provided under this Agreement, and fractional shares shall be rounded to the nearest whole share but, if applicable, shall be rounded up or down on the last applicable Vesting Date so that the Award Recipient is eligible to vest in the total number of shares of Stock covered under this Option (but in no event more than the total number of shares of Stock covered under this Option); provided further, for the avoidance of doubt, that no additional shares of Stock covered under this Option shall vest following Award Recipient’s Separation from Service, 

  (b)Term.

  The Option shall expire and no longer be exercisable ten (10) years from the Grant Date, subject to earlier termination in accordance with the Plan or this Agreement.

  (c)Non-Qualified Stock Option.

  The Option is not intended to be an incentive stock option under Code Section 422 and will be interpreted accordingly.

  (d)Additional Documents.

  The Award Recipient agrees to execute such additional documents and complete and execute such forms as the Company may require for purposes of this Agreement.

  (e)Shareholder Rights.

  The Award Recipient has no rights as a shareholder with respect to any shares of Stock issuable upon exercise of the Option unless and until the Stock relating to the Option has been delivered. No adjustments are made for dividends, distributions, or other rights if the applicable record date 

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  occurs before the certificate is issued (or appropriate book entry is made), except as described herein. 

  2.INCORPORATION OF PLAN

  The Award Recipient acknowledges receipt of the Plan, a copy of which is annexed hereto, and represents that the Award Recipient is familiar with its terms and provisions and hereby accepts this Option grant subject to all of the terms and provisions of the Plan and all interpretations, amendments, rules and regulations which may, from time to time, be promulgated and adopted pursuant to the Plan. The Plan is incorporated herein by reference. In the event of any conflict or inconsistency between the Plan and this Agreement, the Plan shall govern and this Agreement shall be interpreted to minimize or eliminate any such conflict or inconsistency.

  3.RESTRICTIONS ON TRANSFER

  Except as provided in this Section 3, during the Award Recipient’s lifetime, only the Award Recipient (or in the event of the Award Recipient’s legal incapacity or incompetency, his or her guardian or legal representative) may exercise the Option, and the Option shall not be assignable or transferable by the Award Recipient, other than by designation of beneficiary, will or the laws of descent and distribution. The Award Recipient may transfer all or part of the Option, not for value, to any Family Member, provided that the Award Recipient provides prior written notice to the Company, of such transfer. For the purpose of this section, a “not for value” transfer is a transfer which is (i) a gift, (ii) a transfer under a domestic relations order in settlement of marital property rights, or (iii) a transfer to an entity in which more than fifty percent (50%) of the voting interests are owned by Family Members (or the Award Recipient) in exchange for an interest in such entity. Subsequent transfers of transferred portions of the Option are prohibited except to the Award Recipient’s Family Members in accordance with this Section 3 or by will or the laws of descent and distribution. In the event of the Award Recipient’s termination of Service, this Agreement shall continue to be applied with respect to the Award Recipient, following which the Option shall be exercisable by the transferee only to the extent, and for the periods specified herein.

  4.TERMINATION OF SERVICE; CORPORATE TRANSACTION

  (a)Certain Terminations of Service.

  If, prior to vesting, the Award Recipient’s Service is terminated for any reason other than death, or Disability, and except as set forth in Section 13 of the Plan, the unvested portion of the Option shall be forfeited by the Award Recipient and cancelled by the Company as of the date of the Award Recipient’s termination of Service, and the Award Recipient shall have no further right or interest therein unless the Committee in its sole discretion shall determine otherwise. In such event, the Award Recipient shall have the right, subject to the other terms and conditions set forth in this Agreement and the Plan, to exercise the Option, to the extent it has vested as of the date of such termination of Service, at any time within three (3) months after the date of such termination of Service, subject to the earlier expiration of the Option as provided in Section 1(b) hereof. To the extent the vested portion of the Option is not exercised within such three-month period, the Option shall be cancelled and revert back to the Company and the Award Recipient shall have no further right or interest therein. 

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  (b)Termination of Service for Death or Disability.

  If the Award Recipient’s Service terminates by reason of death or Disability, the Option shall automatically vest and become immediately exercisable in full as of the date of such termination of Service. The Option shall remain exercisable by the Award Recipient (or any person entitled to do so) at any time within eighteen (18) months after the date of such termination of Service, subject to the earlier expiration of the Option as provided in Section 1(b) hereof. To the extent the Option is not exercised within such eighteen-month period, the Option shall be cancelled and revert back to the Company and the Award Recipient or any permitted transferee pursuant to Section 3, as applicable, shall have no further right or interest therein.

  (c)Corporate Transaction.

  In the event of a Corporate Transaction, and regardless of whether this Award is assumed or continued, or substituted for new common stock options or another equity-based award of a successor entity, or parent or subsidiary thereof (with appropriate adjustments as to the number of shares and option exercise prices), in each case upon the consummation of any Corporate Transaction, and the employment of the Award Recipient with the Company or an Affiliate is terminated as specified in Section 13 of the Plan, the unvested portion of the Award shall be treated in accordance with the default rules applicable under Section 13 of the Plan.

  5.METHOD OF EXERCISING OPTION

  (a)Notice of Exercise.

  Subject to the terms and conditions of this Agreement, the Option may be exercised by written or electronic notice to the Company, from the Award Recipient or a person who proves to the Company’s satisfaction that he or she is entitled to do so, stating the number of share of Stock in respect of which the Option is being exercised and specifying how such shares of Stock should be registered (e.g., in the Award Recipient’s name only or in the Award Recipient’s and his or her spouse’s names as joint tenants with right of survivorship). Such notice shall be accompanied by payment of the Exercise Price for all shares of Stock purchased pursuant to the exercise of the Option. The date of exercise of the Option shall be the later of (i) the date on which the Company receives the notice of exercise or (ii) the date on which the conditions set forth in Sections 5(b) and 5(d) are satisfied. Notwithstanding any other provision of this Agreement, the Award Recipient may not exercise the Option and no shares of Stock will be issued by the Company with respect to any attempted exercise when such exercise is prohibited by law or any Company policy then in effect. The Option may not be exercised at any one time as to less than 100 shares (or such number of shares as to which the Option is then exercisable if less than 100). In no event shall the Option be exercisable for a fractional share.

  (b)Payment.

  Prior to the issuance of the shares of Stock pursuant to Section 5(d) hereof in respect of which all or a portion of the Option shall have been exercised, the Award Recipient shall have paid to the Company the Exercise Price for all shares of Stock purchased pursuant to the exercise of the Option. Payment may be made by personal check, bank draft or postal or express money order (such modes of payment are collectively referred to as “cash”) payable to the order of the Company 

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  in U.S. dollars. Payment may also be made in mature shares of Stock owned by the Award Recipient, or in any combination of cash or such mature shares as the Committee in its sole discretion may approve. The Company may also permit the Award Recipient to pay for such shares of Stock by directing the Company to withhold shares of Stock that would otherwise be received by the Award Recipient, pursuant to such rules as the Committee may establish from time to time. In the discretion of the Committee, and in accordance with rules and procedures established by the Committee, the Award Recipient may be permitted to make a “cashless” exercise of all or a portion of the Option.

  (c)Limitation on Exercise.

  The Option shall not be exercisable unless the offer and sale of shares of Stock pursuant thereto has been registered under the Securities Act of 1933, as amended (the “1933 Act”), and qualified under applicable state “blue sky” laws or the Company has determined that an exemption from registration under the 1933 Act and from qualification under such state “blue sky” laws is available. All certificates for shares of Stock delivered under this Agreement shall be subject to such stock-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any exchange upon which the shares of Stock are then listed, and any applicable securities law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

  (d)Issuance of Common Shares.

  The issuance of all shares of Stock purchased pursuant to the exercise of the Option shall be evidenced in such a manner as the Company, in its discretion, will deem appropriate, including, without limitation, book-entry registration or issuance of one or more certificates. 

  6.WITHHOLDING

  The Company shall have the right, prior to the issuance of any shares of Stock upon full or partial exercise of the Option (whether by the Award Recipient or any person entitled to do so), to require the Award Recipient to remit to the Company any and all amounts sufficient to satisfy any withholding or other taxes that may be due as a result of the Option exercise. At the time of such exercise, the Award Recipient shall pay in cash to the Company any amount that the Company may reasonably determine to be necessary to satisfy such withholding or other tax obligation. The Company may permit the Award Recipient to satisfy, in whole or in part, such obligation to remit withholding or other taxes, (a) by directing the Company to withhold sharers of Stock that would otherwise be received by the Award Recipient, (b) by delivering to the Company shares of Stock already owned by the Award Recipient and not then subject to any repurchase, forfeiture, unfulfilled vesting, or similar requirements, in each case pursuant to such rules as the Committee may establish from time to time, or (c) by permitting or requiring the Award Recipient to enter into a “same day sale” commitment with a broker-dealer that is a member of the Financial Industry Regulatory Authority (a “FINRA Dealer”) whereby the Award Recipient irrevocably elects to sell a portion of the shares of Stock to be delivered in connection with the exercise to satisfy withholding obligations and whereby the FINRA Dealer irrevocably commits to forward the proceeds necessary to satisfy the withholding obligations directly to the Company or any Affiliate 

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  in each case pursuant to such rules as the Committee may establish from time to time. The Company shall also have the right to deduct from all cash payments made pursuant to, or in connection with, the Option, the federal, state, or local taxes required to be withheld with respect to such payments. The maximum number of shares of Stock that may be withheld from the Option to satisfy any federal, state, or local tax requirements upon the exercise of the Option may not exceed such number of shares of Stock having a Fair Market Value equal to the minimum statutory amount required by the Company to be withheld and paid to any such federal, state, or local taxing authority with respect to such exercise; provided, however, for so long as Accounting Standards Update 2016-09 or a similar rule remains in effect, the Committee has full discretion to choose, or to allow the Award Recipient to elect, to withhold a number of shares of Stock having an aggregate Fair Market Value that is greater than the applicable minimum required statutory withholding obligation (but such withholding may in no event be in excess of the maximum required statutory withholding obligation in the Award Recipient’s relevant tax jurisdiction).

  7.NO EMPLOYMENT OR OTHER RIGHTS

  This Award does not confer upon the Award Recipient any right to be continued in the employment of, or otherwise provide Services to, the Company or any Subsidiary or other affiliate thereof, or interfere with or limit in any way the right of the Company or any Subsidiary or other affiliate thereof to terminate such Award Recipient’s employment or other service relationship at any time. For purposes of this Agreement only, the term “employment” shall include circumstances under which Award Recipient provides consulting or other Services to the Company or any of its Subsidiaries as an independent contractor, but such Award Recipient is not, nor shall be considered, an employee; provided, however, nothing in this Section 7 or this Agreement shall create an employment relationship between such person and the Company or its applicable Subsidiary, as the usages described in this Section are for convenience only.

  8.ADJUSTMENT OF AND CHANGES IN SHARES OF STOCK

  In the event of any merger, consolidation, recapitalization, reclassification, stock dividend, extraordinary dividend, or other event or change in corporate structure affecting the shares of Stock, the Committee shall make such adjustments, if any, as it deems appropriate in the number and class of shares subject to, and the exercise price of, the Option. The foregoing adjustments shall be determined by the Committee in its sole discretion.

  9.DISCRETIONARY NATURE OF PLAN

  The Plan is discretionary in nature, and the Company may suspend, modify, amend or terminate the Plan in its sole discretion at any time, subject to the terms of the Plan and any applicable limitations imposed by law. This Option grant under the Plan is a one-time benefit and does not create any contractual or other right to receive additional Options or other benefits in lieu of the Option in the future. Future grants, if any, will be at the sole discretion of the Committee, including, but not limited to, the timing of any grant, the number of shares of Stock granted under an Option, and the vesting provisions.

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  10.SECTION 409A

  The Option grant under this Agreement is intended to comply with Code Section 409A to the extent subject thereto, and, accordingly, to the maximum extent permitted, this Agreement will be interpreted and administered to be in compliance with Code Section 409A. Notwithstanding anything to the contrary in the Plan or this Agreement, neither the Company, its Affiliates, the Board, nor the Committee will have any obligation to take any action to prevent the assessment of any excise tax or penalty on Award Recipient under Code Section 409A, and neither the Company, its Affiliates, the Board, nor the Committee will have any liability to Award Recipient for such tax or penalty. For purposes of this Agreement, a termination of Service occurs only upon an event that would be a Separation from Service within the meaning of Section 409A. If, at the time of Award Recipient’s Separation from Service, (1) Award Recipient is a “specified employee” within the meaning of Code Section 409A, and (2) the Company makes a good faith determination that an amount payable on account of Award Recipient’s Separation from Service constitutes deferred compensation (within the meaning of Code Section 409A), the payment of which is required to be delayed pursuant to the six (6)-month delay rule set forth in Code Section 409A to avoid taxes or penalties under Code Section 409A (the “Delay Period”), then the Company will not pay such amount on the otherwise scheduled payment date but will instead pay it in a lump sum on the first business day after the Delay Period (or upon Award Recipient’s death, if earlier), without interest. Each installment that vests under this Agreement (if there is more than one installment) will be considered one of a series of separate payments for purposes of Code Section 409A.

  11.CLAWBACK

  The Award is subject to mandatory repayment by the Award Recipient to the Company to the extent the Award Recipient is or in the future become subject to any Company “clawback” or recoupment policy or Applicable Laws that require the repayment by the Award Recipient to the Company of compensation paid to the Award Recipient in the event that the Award Recipient fails to comply with, or violates, the terms or requirements of such policy or Applicable Laws.

  12.MISCELLANEOUS PROVISIONS

  (a)Applicable Law.

  The validity, construction, interpretation and effect of this instrument will be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to the conflicts of law provisions thereof.

  (b)Notice.

  Any notice required by the terms of this Agreement shall be delivered or made electronically, over the Internet or otherwise (with request for assurance of recipient in a manner typical with respect to communications of that type), or given in writing. Any notice given in writing shall be deemed effective upon personal delivery or upon deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid, and shall be addressed to the Company at its principal executive office and to the Award Recipient at the address that he or she has most recently provided to the Company. Any notice given electronically shall be deemed effective on the date of transmission.

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  (c)Headings.

  The headings of sections and subsections are included solely for convenience of reference and shall not affect the meaning of the provisions of this Agreement.

  (d)Counterparts.

  This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

  (e)Amendments.

  The Board and the Committee shall have the power to alter or amend the terms of the Option grant as set forth herein from time to time, in any manner consistent with the provisions of the Plan, and any alteration or amendment of the terms of this Option grant by the Board or the Committee shall, upon adoption, become and be binding on all persons affected thereby without requirement for consent or other action with respect thereto by any such person. The Committee shall give notice to the Award Recipient of any such alteration or amendment as promptly as practicable after the adoption thereof. The foregoing shall not restrict the ability of the Award Recipient and the Board or the Committee by mutual written consent to alter or amend the terms of this Option grant in any manner which is consistent with the Plan.

  (f)Binding Effect.

  This Agreement shall be binding upon the heirs, executors, administrators and successors of the Award Recipient and the Company.

  (g)Entire Agreement.

  This Agreement and the Plan constitute the entire agreement between the Award Recipient and the Company regarding the Option grant and supersede all prior arrangements or understandings (whether oral or written and whether express or implied) with respect thereto.

  (Remainder of page intentionally left blank)

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SEPARATION AGREEMENT AND GENERAL RELEASE

This Separation Agreement and General Release (the “Agreement”) is entered into by and between BigBear.ai, LLC, a Delaware limited liability company (the “Company”) and Joshua Kinley (“Employee” and with the Company, collectively, the “Parties”).  

1.Last Day of Employment.  Employee’s last day of employment with the Company will be December 30, 2022 (“Separation Date”).  This Agreement is invalid if signed by Employee prior to the Separation Date.  

2.Separation; Final Pay; COBRA.  In consideration of the promises and the releases, representations, covenants and obligations herein contained, the Parties, intending to be legally bound, hereby agree as follows:
(a)As of the Separation Date, Employee shall resign as Chief Corporate Development Officer, as well as from all other officer, director and employment positions that Employee held at or through the Company, and any of its parents, subsidiaries or affiliates. Except as approved by the Company in writing, Employee agrees not to hold himself out as a partner, member, director, officer or employee of, or as otherwise affiliated with, the Company (including on social media) after the Separation Date. Employee agrees to promptly execute such additional documentation as requested by the Company to effectuate the foregoing.
(b)Regardless of whether Employee executes this Agreement, the Company shall timely pay to Employee, minus applicable taxes, withholdings and authorized or required deductions: (i) all earned, but unpaid, wages, bonuses and accrued, but unused, Paid Time Off earned in accordance with applicable law and Company policy through the Separation Date; (ii) any unpaid expenses or other reimbursements, due to Employee under the Company’s policies, provided, that, Employee must submit for reimbursement any outstanding business-related expenses within ten (10) days following the Separation Date and (iii) if applicable, a refund of all ESPP deductions taken during the current offering period as part of the Company’s Employee Stock Purchase Program that have not been used to purchase shares as of the Separation Date.
(c)Employee will receive under separate cover information regarding Employee’s rights under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and, if applicable, any state continuation coverage laws (collectively, “COBRA”).  Employee acknowledges that Employee should review the COBRA notice and election forms carefully to understand Employee’s rights and obligations to make timely elections, provide timely notification and make timely premium payments.  Except as to any vested benefits or as otherwise provided herein or required under applicable law, Employee’s right to, and participation in, medical, dental and vision plans as an employee shall terminate as of the last day of the month that includes the Separation Date, in accordance with the specific terms of each plan. 
3.Separation Payments.  In exchange for Employee’s agreements provided herein, and provided that Employee complies with this Agreement at all times and the ADEA Release (as defined below) becomes effective pursuant to its terms, the Company shall pay to Employee:
(a)$175,000.00, less all applicable taxes, withholdings and authorized or required deductions, which represents six (6) months’ base salary, in substantially equal installments on the Company’s regular payroll schedule, commencing on the second regularly scheduled Company payroll date following the ADEA Release Effective Date (as defined below); and

(b)a lump sum payment of $131,250.00, which represents 0.5X of Employee’s Target Annual Bonus as defined in the BigBear.ai, LLC Executive Severance Plan (the “ESP”), less all applicable taxes, withholdings and authorized or required deductions, to be paid on the second regularly scheduled Company payroll date following the ADEA Release Effective Date. 
        (c)    a lump sum payment of $10,515.12, less all applicable taxes, withholdings and authorized or required deductions, which represents the cost of the employer share of health and welfare premiums for plans in which employee was enrolled as of the Separation Date for a period of seven (7) months, to be paid on the second regularly scheduled Company payroll date following the ADEA Release Effective Date. 
The payments under this Section 3 are not earnings or wages under any Company 401(k) plan. The payments under this Section 3 represent the entirety of Employee’s rights under the ESP.

4.No Consideration Absent Execution of this Agreement.  Employee understands and agrees that Employee would not receive the payments and/or benefits specified in Section 3 above, except for Employee’s timely execution of this Agreement and the fulfillment of the promises contained herein. 
5.Forfeiture of Unvested Awards.

(a)As of immediately prior to the Separation Date, Employee holds (i) 625,000 Class B Units (the “B Units”) in BBAI Ultimate Holdings, LLC, which were granted pursuant to the Grant Agreement dated as of February 17, 2021 (the “Grant Agreement”), (ii) an option to purchase 32,812 shares of common stock of Bigbear.ai Holdings, Inc. (“PubCo”), which was granted to Employee on December 7, 2021 as well as an option to purchase 46,875 shares of common stock of PubCo, which was granted to employee on March 30, 2022 (collectively, the “Option”) pursuant to PubCo’s 2021 Long-Term Incentive Plan (the “Plan”), and (iii) awards of 13,125 and 18,750 restricted stock units, which were granted to Employee on December 7, 2021 and March 30, 2022, respectively, under the Plan (the “RSUs”).
(b)Except as otherwise provided in the Plan, effective as of the Separation Date, all of the RSUs and Options, which represent all outstanding and unvested equity awards held by Employee as of the Separation Date, will terminate automatically without any further action by the Company or any other person or entity and will be forfeited without consideration or notice.  The Company acknowledges and agrees that so long as Employee continues to provide consulting services to the Company or its affiliates, the termination of Employee’s employment with the Company will not constitute a Termination of Service (as defined in the Plan) and Employee will continue to vest in the Options and RSUs granted under the Plan until the occurrence of a Termination of Service.  

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(c)The 375,000 Class B Units designated as “Tranche I Units” and “Tranche III Units,” which, as of the Separation Date, are fully vested, will not be forfeited but will remain outstanding, subject to the terms, including the repurchase rights, of the award agreement evidencing the grant of the B Units (together with the “Tranche II Units” described below and any equity purchased through the Employee Stock Purchase Program, the “Retained Equity”).  For the avoidance of doubt, the 250,000 Tranche II Units will not be forfeited but will remain outstanding following the Separation Date; provided, that, if the ADEA Release does not become effective pursuant to its terms, the Tranche II Units (and all rights arising from such Tranche II Units and from being a holder thereof) will be automatically forfeited without consideration or notice and without any further action by the Company or any other person or entity. 
(d)As of the Separation Date, Employee acknowledges and agrees that Employee does not hold any equity interests or other securities in any Releasee (as defined below) (or rights to acquire or derivative rights in respect of any such equity interests or other securities), other than shares purchased through the Company’s Employee Stock Purchase Program, if any (the  “Retained Equity”), and Employee does not have any claim for profits or distributions or cash or other assets of any Releasee that does not arise out of the Retained Equity.

6.Continuing Obligations. Employee hereby affirms that the restrictive covenants and other post-employment obligations contained in the ESP and any other agreement with the Company or any of its affiliates to which Employee is a party, including, but not limited to, any employment agreement, equity subscription, equity grant agreement or limited liability company agreement are and shall remain in effect and enforceable in accordance with their terms and Employee hereby reaffirms the existence and reasonableness of those obligations (including any confidentiality, non-disclosure, non-competition, non-solicitation or any similar restrictive covenant obligation) (collectively, the “Restrictive Covenants”). In the event that there is any conflict between the restrictive covenants of the ESP and a restrictive covenant of any other agreement with the Company or any of its affiliates to which Employee is a part, the terms of the restrictive covenant of the ESP shall control.  In entering into this Agreement, Employee acknowledges the continued effectiveness and enforceability of the Restrictive Covenants, and expressly reaffirms Employee’s commitment to abide by (and agrees that he will abide by) the terms of the Restrictive Covenants.
7.General Release, Claims Not Released and Related Provisions.  

(a)General Release of All Claims.  Employee, on Employee’s own behalf and on behalf of Employee’s heirs, executors, administrators, successors, and assigns knowingly and voluntarily release and forever discharge the Company, its direct and indirect parent corporations, affiliates, subsidiaries, divisions, predecessors, insurers, reinsurers, professional employment organizations, representatives, successors and assigns, and their current and former employees, attorneys, officers, directors and agents thereof, both individually and in their business capacities, and their employee benefit plans and programs and their administrators and fiduciaries, both individually and in their business capacities (collectively referred to throughout the remainder of this Agreement as “Releasees”), of and from any and all claims, suits, controversies, actions, causes of action, cross-claims, counter claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity, both past and present and whether known or unknown, suspected, unsuspected or claimed (the “Claims”) against Releasees as of the date of execution of this Agreement, including, but not limited to, those Claims (i) arising out of, or relating to, Employee’s employment with any Releasee, (ii) arising out of, or relating to, any agreement and/or any awards, policies, plans, programs or practices of the Releasees that may apply to Employee or in which Employee may 

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participate, including, but not limited to, any rights under bonus plans or programs of any Releasee and/or any other short-term or long-term equity-based or cash-based incentive plans or programs of any Releasee; (iii) arising out of, or relating to, Employee’s termination of employment from any of the Releasees; and/or (iv) arising out of, or relating to, Employee’s status as an employee, member, officer or director of any of the Releasees, including, but not limited to, any allegation, Claim or violation, arising under any federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance including, but not limited to the following, each as may be amended: Title VII of the Civil Rights Act of 1964; Sections 1981 through 1988 of Title 42 of the United States Code; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act of 1990; the Americans with Disabilities Act of 1990; the Worker Adjustment and Retraining Notification Act; the Fair Credit Reporting Act; the Family and Medical Leave Act; the Genetic Information Nondiscrimination Act of 2008; the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA); the National Labor Relations Act; the Fair Labor Standards Act; the Equal Pay Act; any other federal, state or local law, rule, regulation, or ordinance; any claims sounding in tort, contract (express or implied); claims for wrongful discharge, harassment of any kind, vacation or sick leave pay, intentional or negligent infliction of emotional distress, any basis for recovering costs, fees, or other expenses including attorneys’ fees incurred in these matters. In addition, Employee acknowledges that by signing this Agreement, Employee is also waiving Employee’s rights under any state or local laws in any of the states in which Employee worked for the Company during Employee’s employment.  A list of the various state and local laws is set forth in Exhibit A attached to this Agreement. 
(b)Release of Claims under the ADEA.    Notwithstanding anything in this Agreement to the contrary, Employee’s release of Claims under the Age Discrimination in Employment Act, as amended (the “ADEA Release”) shall only become effective upon: (i) Employee’s separate signature set forth on the signature page of this Agreement reflecting Employee’s assent to Employee’s release of Claims under the ADEA and (ii) the occurrence of the ADEA Release Effective Date (as defined below).  
(c)Effective Date(s).  The first date upon which Employee and the Company have signed this Agreement, and the Company has received Employee’s signature, shall be the “Effective Date”.  Employee has seven (7) calendar days after the date on which Employee initially executes this Agreement for purposes of the ADEA Release to revoke Employee’s consent to the ADEA Release.  Such revocation must be in writing and must be emailed to Carolyn Blankenship, General Counsel, at Carolyn.Blankenship@BigBear.ai. Notice of such revocation must be received within the seven (7) calendar days referenced above.  If Employee does not sign this Agreement for purposes of the ADEA Release or if Employee revokes Employee’s execution of this Agreement for purposes of the ADEA Release, the ADEA Release shall be null and void and the “ADEA Release Effective Date” (as defined below) shall not occur.  Provided that Employee does not revoke Employee’s execution of this Agreement for purposes of the ADEA Release within such seven (7) day revocation period, this ADEA Release will become effective on the eighth (8th) calendar day after the date on which Employee signs this Agreement for purposes of the ADEA Release (the “ADEA Release Effective Date”).   
(d)Claims Not Released.  Employee is not waiving any rights Employee may have to: (i) Employee’s own vested or accrued employee benefits under Employer’s qualified retirement benefit plans as of the Separation Date; (ii) benefits and/or the right to seek benefits under applicable workers’ compensation and/or unemployment compensation statutes; (iii) pursue claims which by law cannot be waived by signing this Agreement; and (iv) enforce this Agreement. 

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(e)      Covenant Not to Sue.  A “covenant not to sue” is a legal term which means Employee promises not to file a lawsuit in court.  It is different from the General Release of Claims covered above.  Besides waiving and releasing the claims set forth above in the General Release paragraph, Employee further agrees never to sue any of the Releasees in any forum for any reason covered by the General Release paragraph.  If Employee sues any of the Releasees, Employee shall be liable for such Releasee’s reasonable attorneys’ fees and other litigation costs incurred in defending against such a suit.  Notwithstanding this Covenant Not to Sue, Employee may bring a claim against the Company to enforce this Agreement.  
(f)     Governmental Agencies.  Nothing in this Agreement prohibits, prevents, or otherwise limits Employee from filing a charge or complaint with or participating, testifying, or assisting in any investigation, hearing, or other proceeding before any federal, state, or local government agency (e.g., EEOC, NLRB, SEC) or in any legislative or judicial proceeding nor does anything in this Agreement preclude, prohibit or otherwise limit, in any way, Employee’s rights and abilities to contact, communicate with or report unlawful conduct, or provide documents, to federal, state, or local officials for investigation or participate in any whistleblower program administered by any such agencies.  In addition, nothing in this Agreement, including but not limited to the release of claims nor the confidentiality, non-disparagement, affirmations, cooperation, and return of property clauses, prohibits Employee from: (1) reporting possible violations of federal or other law or regulations, including any possible securities laws violations, to any governmental agency or entity, including but not limited to the U.S. Department of Justice, the U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission, the U.S. Congress, or any agency Inspector General; (2) making any other disclosures that are protected under the whistleblower provisions of federal or other law or regulations; or (3) filing a charge or complaint or otherwise fully participating in any governmental whistleblower programs, including but not limited to any such programs managed or administered by the U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission and/or the Occupational Safety and Health Administration.  Employee is not required to notify or obtain permission from the Company when filing a governmental whistleblower charge or complaint or engaging or participating in protected whistleblower activity.  Moreover, nothing in this Agreement prohibits or prevents Employee from receiving individual monetary awards or other individual relief by virtue of participating in such governmental whistleblower programs. 

 (g)        Collective/Class Action Waiver.  If any claim is not subject to release, to the extent permitted by law, Employee waives any right or ability to be a class or collective action representative or to otherwise participate in any putative or certified class, collective or multi-party action or proceeding based on such a claim in which the Company or any other Releasee identified in this Agreement is a party.  

8.Acknowledgments and Affirmations.  

(a)Employee confirms that prior to the execution of this Agreement, Employee has not revealed its terms to any third parties.  Employee agrees not to disclose any information regarding the existence or substance of this Agreement, except to Employee’s spouse, tax advisor, an attorney with whom Employee chooses to consult regarding Employee’s consideration of this Agreement and/or to any federal, state or local government agency.  Nothing in this Agreement has the purpose or effect of preventing Employee from making truthful disclosures about alleged unlawful conduct.

(b)Employee affirms that Employee has not filed, caused to be filed, or presently is a party to any claim against the Company.  Nothing in this Agreement or these 

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Affirmations is intended to impair Employee’s rights under whistleblower laws or cause Employee to disclose Employee’s participation in any governmental whistleblower program or any whistleblowing statute(s) or regulation(s) allowing for anonymity.

(c)Employee also affirms that Employee has been paid and/or has received all compensation, wages, bonuses, commissions, paid sick leave, predictability pay, and/or benefits which are due and payable as of the date Employee signs this Agreement and Employee has been reimbursed for all necessary expenses or losses incurred by Employee within the scope of Employee’s employment.  Employee further affirms that Employee has submitted expense reports for all necessary expenses or losses incurred by Employee within the scope of Employee’s employment.  Employee affirms that Employee has been granted any leave to which Employee was entitled under the Family and Medical Leave Act and state and local leave and disability accommodation laws.

(d)Employee further affirms that Employee has no known workplace injuries or occupational diseases.  

(e)Employee also affirms that Employee has not divulged any proprietary or confidential information of the Company and will continue to maintain the confidentiality of such information consistent with the Company’s policies and Employee’s agreement(s) with the Company and/or common law.  Under the federal Defend Trade Secrets Act of 2016, Employee shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made to Employee’s attorney in relation to a lawsuit against the Company for retaliation against Employee for reporting a suspected violation of law; or (c) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  

(f)Employee and the Company acknowledge Employee’s rights to make truthful statements or disclosures required by law, regulation, or legal process and to request or receive confidential legal advice, and nothing in this Agreement shall be deemed to impair those rights.

9.Return of Property.  

(a)Except as provided otherwise in this Agreement or by law, Employee affirms that Employee has returned, without copying or otherwise reproducing, all of the Company’s property, documents, and/or any confidential information in Employee’s possession or control. 

(b)Employee also affirms that Employee is in possession of all of Employee’s property that Employee had at the Company’s premises and that the Company is not in possession of any of Employee’s property. 

10.Governing Law and Interpretation.  This Agreement shall be governed and conformed in accordance with the laws of the State of Delaware by the Company as of the Separation Date, without regard to its conflict of laws provision.  Should any provision of this Agreement be declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable, excluding the general release language, such provision shall immediately become null and void, leaving the remainder of this Agreement in full force and effect.

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11.Nonadmission of Wrongdoing.  The Parties agree that neither this Agreement nor the furnishing of the consideration for this Agreement shall be deemed or construed at any time for any purpose as an admission by Releasees of wrongdoing or evidence of any liability or unlawful conduct of any kind.

12.Third Party Beneficiaries.  Each Releasee that is not a signatory hereto shall be a third-party beneficiary of Employee’s covenants, warranties, representations and release of claims set forth in this Agreement and entitled to enforce such provisions as if it was a party hereto.

13.Amendment.  This Agreement may not be modified, altered or changed except in writing and signed by both Parties wherein specific reference is made to this Agreement.

14.Entire Agreement.  This Agreement sets forth the entire agreement between the Parties hereto, and fully supersedes any prior agreements or understandings between the Parties, except for any arbitration, intellectual property, noncompete, restrictive covenant, nonsolicitation, nondisclosure, or confidentiality agreements between the Company and Employee, which shall remain in full force and effect according to their terms.  Employee acknowledges that Employee has not relied on any representations, promises, or agreements of any kind made to Employee in connection with Employee’s decision to accept this Agreement, except for those set forth in this Agreement.

15.Counterparts and Signatures.  This Agreement may be signed in counterparts, each of which shall be deemed an original, but all of which, taken together shall constitute the same instrument.  A signature made on a faxed or electronically mailed copy of the Agreement or a signature transmitted by facsimile or electronic mail will have the same effect as the original signature.

16.Section 409A. This Agreement is intended to comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended, and the Treasury regulations and interpretive guidance issued thereunder (collectively, “Section 409A”) and shall be construed and administered in accordance with Section 409A. Notwithstanding any other provision of the Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. Any payments to be made under this Agreement upon the termination of Employee’s employment shall only be made if such termination of employment constitutes a “separation from service” under Section 409A. In no event may Employee, directly or indirectly, designate the calendar year of any payment under this Agreement. Each installment payment under this Agreement intended to be a separate payment for purposes of Section 409A. Notwithstanding any provision in this Agreement to the contrary, if any payment or benefit provided for herein would be subject to additional taxes and interest under Section 409A if Employee’s receipt of such payment or benefit is not delayed until the earlier of (i) the date of Employee’s death or (ii) the date that is six months after Employee’s Date of Termination (such date, the “Section 409A Payment Date”), then such payment or benefit shall not be provided to Employee (or Employee’s estate, if applicable) until the Section 409A Payment Date. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement are exempt from, or compliant with, Section 409A and in no event shall the Company or any of its affiliates be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Employee on account of non-compliance with Section 409A.

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 EMPLOYEE ACKNOWLEDGES THAT EMPLOYEE HAS HAD FORTY-FIVE (45) DAYS TO CONSIDER THIS AGREEMENT.  IF EMPLOYEE IS FORTY (40) YEARS OF AGE OR OLDER, EMPLOYEE ACKNOWLEDGES THAT EMPLOYEE HAS BEEN PROVIDED WITH THE JOB TITLES AND AGES OF ALL INDIVIDUALS IN EMPLOYEE’S BUSINESS DECISIONAL UNIT SELECTED FOR TERMINATION AND NOT SELECTED FOR TERMINATION (EXHIBIT B ATTACHED HERETO). EMPLOYEE FURTHER ACKNOWLEDGES THAT EMPLOYEE HAS BEEN ADVISED TO CONSULT WITH AN ATTORNEY PRIOR TO SIGNING THIS AGREEMENT.  FURTHER, IF EMPLOYEE IS FORTY (40) YEARS OF AGE OR OLDER, EMPLOYEE ACKNOWLEDGES THAT EMPLOYEE WILL HAVE SEVEN (7) DAYS TO REVOKE THIS AGREEMENT AFTER SIGNING THE SAME, BY NOTIFYING THE UNDERSIGNED IN WRITING, WITHIN THE SEVEN (7) DAYS PERIOD AFTER EMPLOYEE HAS SIGNED THE SAME. 

EMPLOYEE AGREES THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT, DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL CONSIDERATION PERIOD.

EMPLOYEE FURTHER ACKNOWLEDGES THAT PRIOR TO SIGNING BELOW, EMPLOYEE HAS REVIEWED THE LIST OF STATES SET FORTH IN EXHIBIT A ATTACHED TO THIS AGREEMENT, AND UNDERSTANDS THAT EMPLOYEE IS WAIVING ALL RIGHTS UNDER THE LAWS OF THOSE STATES IN WHICH EMPLOYEE WAS EMPLOYED BY THE COMPANY DURING EMPLOYEE’S EMPLOYMENT. 

EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS EMPLOYEE HAS OR MIGHT HAVE AGAINST RELEASEES.

[Signature Page Follows]

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IN WITNESS WHEREOF, the Parties knowingly and voluntarily sign this Agreement as of the date(s) set forth below:

NOT TO BE EXECUTED PRIOR TO THE SEPARATION DATE

EMPLOYEE

/s/ Joshua Kinley        12-30-2022    
Joshua Kinley        Date

BIGBEAR.AI, LLC

/s/ Carolyn Blankenship        12-30-2022    
(Signature)        Date

Name: Carolyn Blankenship
Title:  General Counsel and Corporate Secretary

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