Document:

ubx-ex101_6.htm

 

Exhibit 10.1

AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT

 

This AMENDMENT NO. 1 (this “Amendment”) is entered into as of December 15, 2021 (the “Amendment Date”), by and between Unity Biotechnology, Inc., a Delaware corporation (“Borrower”) and Hercules Capital, Inc., a Maryland corporation, in its capacity as a Lender (as defined below) and as administrative agent and collateral agent for the Lenders (in such capacity, “Agent”).

 

BACKGROUND

 

WHEREAS, pursuant to the Loan and Security Agreement dated as of August 3, 2020 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”) by and among Borrower, each of its Subsidiaries from time to time party thereto as borrower and the several banks and other financial institutions or entities from time to time parties thereto (each, a “Lender”, and collectively “Lenders”) and Agent, Lenders provided Borrower with certain financial accommodations; and

WHEREAS, Borrower has requested that the Lenders amend the Loan Agreement, and the Required Lenders are willing to so amend the Loan Agreement, on the terms and conditions hereafter set forth.  

 

NOW, THEREFORE, in consideration of any loan or advance or grant of credit heretofore or hereafter made to or for the account of Borrower by Lenders, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Lenders and Borrower hereby agree as follows:

 

1.Definitions.  All capitalized terms not otherwise defined herein shall have the meanings given to them in the Loan Agreement.

 

2.Amendments to the Loan Agreement.  Subject to satisfaction of the conditions precedent set forth in Section 3 below, the Loan Agreement is hereby amended as follows:

 

	
 
	
2.1.
	
Section 1.1 of the Loan Agreement is hereby amended as follows:

 

	
 
	
(a)
	
the following defined terms are hereby added in their appropriate alphabetical order:

 

“5-Day Trading Volume” shall mean, with respect to any Conversion, the aggregate “Value Traded” as reported on Bloomberg for the five (5) consecutive full trading days immediately preceding the time of the delivery of the applicable Conversion Notice.

 

“All Source Cash Proceeds” shall mean the aggregate amount of cash payments received by Borrower from business development agreements, equity financings and/or Subordinated Indebtedness net of any prepayment fees, commissions or underwriting discounts, taxes, debt repayments, and other offering or transaction fees and expenses paid by Borrower in connection with any of the foregoing. 

 

“Conversion Price” shall mean, with respect to any Conversion, eighty-five percent (85%) of the most recent Closing Trade Price at the time of the delivery of the applicable Conversion Notice.

 

 

 

 

“First Amendment Effective Date” shall mean December 15, 2021.

 

“Interest Only Milestone I” shall mean satisfaction of each of the following events: (a) no default or Event of Default shall have occurred and be continuing and (b) based on evidence provided by Borrower to Agent, Borrower and Agent shall have mutually determined that Borrower has achieved the protocol specified primary end point (safety and tolerability) and key secondary end points (including an improvement in BCVA and positive trend in change in CST at either the 12 or 24 week measurement), such that the overall data from the Phase 2a study of UBX1325 in DME would support its advancement into additional Phase 2/3 clinical studies as the next immediate step in clinical development.

 

“Interest Only Milestone II” shall mean satisfaction of each of the following events: (a) no default or Event of Default shall have occurred and be continuing and (b) based on evidence provided by Borrower to Agent, Borrower and Agent shall have mutually determined that Borrower has achieved the protocol specified primary end point and key secondary end points (measurement time frame as defined in the study protocol filed with the FDA), such that the overall data from the Phase 2 study of UBX1325 in AMD would support its advancement into additional Phase 2/3 trials as the next immediate step in clinical development.

“Interest Only Milestone III” shall mean satisfaction of each of the following events: (a) no default or Event of Default shall have occurred and be continuing and (b) Borrower has raised a minimum of $35,000,000 of cumulative All Source Cash Proceeds after August 3, 2021.

 

“Interest Only Milestones” shall mean, collectively, Interest Only Milestone I, Interest Only Milestone II and Interest Only Milestone III.

 

	
 
	
(b)
	
the following defined term is hereby amended and restated in its entirety to provide as follows:

 

“Amortization Date” shall mean September 1, 2022, provided however, that if any one of the Interest Only Milestones has been satisfied prior to September 1, 2022, then the Amortization Date shall be extended to December 1, 2022; provided further, that if the Amortization Date has been so extended to December 1, 2022 and any two of the Interest Only Milestones have been satisfied prior to December 1, 2022, then the Amortization Date shall be further extended to March 1, 2023; provided further, that if the Amortization Date has been so extended to March 1, 2023 and all three of the Interest Only Milestones have been satisfied prior to March 1, 2023, then the Amortization Date shall be further extended to June 1, 2023.

 

	
 
	
(c)
	
the following defined term is hereby removed in its entirety from the Loan Agreement:

 

“Interest Only Extension Condition”

 

	
 
	
2.2.
	
Section 1.2 of the Loan Agreement is hereby amended by adding in the correct alphabetical order the following: 

		
	
Defined Term
	
Section

	
Assigned Loan
	
2.9(a)

	
Assignee Lender
	
2.9(a)

	
Assignor Lender
	
2.9(a)

	
Bloomberg
	
2.9(i)

	
Borrower Common Stock
	
2.9(a)

 

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Closing Trade Price
	
2.9(i)

	
Conversion
	
2.9(a)

	
Conversion Date
	
2.9(a)

	
Conversion Delay Late Fees
	
2.9(i)

	
Conversion Notice
	
2.9(a)

	
Conversion Percentage
	
2.9(a)

	
Conversion Period
	
2.9(a)

	
Conversion Share Value
	
2.9(i)

	
Conversion Shares
	
2.9(a)

	
Converted Loan
	
2.9(a)

	
Converting Lender
	
2.9(a)

	
DTC
	
2.9(c)

	
FAST Program
	
2.9(c)

	
Loan Assignment
	
2.9(a)

	
Maximum Percentage
	
2.9(j)

	
Nasdaq 19.99% Cap
	
2.9(k)

	
Share Delivery Date
	
2.9(c)

	
Share Delivery Period
	
2.9(d)

	
Securities Act
	
2.9(m)

 

 

	
 
	
2.3.
	
The following sentence shall be added as the second sentence in Section 2.4 of the Loan Agreement:

 

Notwithstanding the foregoing, in no event shall Borrower owe any Prepayment Charge for any portion of an Advance that is converted into Conversion Shares (as defined in Section 2.9) pursuant to Section 2.9.

	
 
	
2.4.
	
Reserved.

 

	
 
	
2.5.
	
The following provisions are hereby added as a new Section 2.9, titled “Conversion of Loans,” of the Loan Agreement:

 

(a)Lender Optional Conversion.  At any time, and from time to time after the First Amendment Effective Date and until (and including) the six (6) month anniversary thereof (the “Conversion Period”), each Lender may deliver to Borrower written notice (the “Conversion Notice”) of such Lender’s (a “Converting Lender”) election to convert (a “Conversion”) all or any part of up to twenty percent (20%) of the original principal amount of the Tranche I Loans (for a maximum aggregate amount of $5,000,000) held by such Converting Lender, in each case, subject to a cap of twelve percent (12%) of the 5-Day Trading Volume (each, a “Converted Loan”), into shares (“Conversion Shares”) of Borrower’s common stock, par value $0.0001 per share (“Borrower Common Stock”), in which case the aggregate principal amount of the Converted Loan, but not any related interest, shall convert into a number of Conversion Shares equal to the aggregate principal amount of such Converted Loan divided by the Conversion Price, subject to adjustment as set forth herein. The date on which a Converting Lender delivers a Conversion Notice to Borrower is the “Conversion Date.” The Conversion Notice shall specify: (i) the aggregate principal amount of the Converted Loan; (ii) the number of Conversion Shares issuable in respect of such Conversion Notice; (iii) the name of the Person to whom the Conversion Shares shall be issued (if other than the Converting Lender); and (iv) the physical address or electronic delivery instructions to which Borrower shall deliver such Conversion Shares.  For the avoidance of doubt, accrued and unpaid interest on any Converted Loan shall be due and payable on the applicable interest payment date following the Conversion Date.  Notwithstanding anything to the contrary set forth herein, 

 

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in the event that a Lender (any such Lender, an “Assignor Lender”), in accordance with the terms and conditions hereof, assigns (any such assignment, a “Loan Assignment”) all or any part of the principal amount of the Tranche I Loans (such assigned Loan, an “Assigned Loan”) owned by such Lender to any party (any such party, an “Assignee Lender”), such Assignor Lender and Assignee Lender may agree that a percentage greater than or less than twenty percent (20%) of such Assigned Loan may be converted by Assignee Lender pursuant to the terms of this Section 2.9 (a “Conversion Percentage”) so long as (x) after giving effect to such Loan Assignment, the aggregate principal amount of Tranche I Loans that such Assignor Lender and such Assignee Lender may convert is equal to the aggregate principal amount of Tranche I Loans which Assignor Lender was able to convert immediately prior to giving effect to such Loan Assignment and (y) Assignor Lender and Assignee Lender notify Borrower in writing of the amount of such revised Conversion Percentage.  Notwithstanding the foregoing, the Lenders may not collectively deliver more than four (4) Conversion Notices during any thirty (30) consecutive calendar day period. 

 

(b)Method of Conversion.  Each Lender may exercise the conversion rights contained in this Section 2.9 by delivering a duly executed PDF copy of a Conversion Notice submitted by electronic delivery to the email address for Borrower specified pursuant to Section 11.2. No ink-original Conversion Notice shall be required. No Converting Lender shall be required to physically surrender any Loan Documents to Borrower in connection with any Conversion Notice. Borrower shall pay all applicable transfer Taxes in respect of any conversion of a Loan pursuant to this Section 2.9.

 

(c)Issuance of Conversion Shares.  Upon a Converting Lender’s delivery to Borrower of the Conversion Notice, Borrower shall promptly issue to such Converting Lender the Conversion Shares issuable in respect of such Conversion Notice not later than the second (2nd) trading day immediately following the Conversion Date (the “Share Delivery Date”).  Each Converted Loan shall be deemed to have been converted as of the close of business on the Conversion Date, and upon delivery of the Conversion Notice, the Converting Lender (or its designee as set forth in the Conversion Notice) shall be deemed for all corporate purposes to have become the holders of record of the Conversion Shares as of the Conversion Date. On or before the Share Delivery Date, Borrower shall (X) provided that Borrower’s transfer agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program (the “FAST Program”), upon the request of the Converting Lender, credit such aggregate number of Conversion Shares to which the Converting Lender is entitled pursuant to such conversion to the Converting Lender’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system, or (Y) if the transfer agent is not participating in the FAST Program, issue and dispatch by overnight courier to the address as specified in the Conversion Notice, a certificate, registered in Borrower’s share register in the name of the Converting Lender or its designee, for the number of Conversion Shares to which the Converting Lender is entitled pursuant to such conversion, without the imposition of any restrictive legend. Borrower agrees to maintain a transfer agent that is a participant in the FAST Program so long as any Loans remain outstanding.

 

(d)Adjustment upon Subdivision or Combination of Borrower Common Stock. Without limiting any provision hereof, if Borrower at any time after the delivery of a Conversion Notice and prior to the delivery of Conversion Shares subject to such Conversion Notice (such period a “Share Delivery Period”) subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of common stock into a greater number of shares, the applicable Conversion Price will be proportionately reduced. Without limiting any provision hereof, if Borrower at any time during a Share Delivery Period combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of common stock into a smaller number of shares, the applicable Conversion Price will be proportionately increased. Any adjustment pursuant to this Section 2.9 shall become effective immediately after the effective date of such subdivision or combination.

 

 

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(e)Reserved.

 

(f)Certain Dividends.  In case Borrower shall fix a payment date that occurs during a Share Delivery Period for the making of a distribution to all holders of Borrower Common Stock (including any such distribution made in connection with a consolidation or merger in which Borrower is the continuing corporation) of evidences of indebtedness or assets (other than cash dividends or cash distributions payable out of consolidated earnings or earned surplus or dividends or distributions referred to in Section 2.9(d)), or subscription rights, the Conversion Price to be in effect after such payment date shall be determined by multiplying the Conversion Price in effect immediately prior to such payment date by a fraction, the numerator of which shall be the total number of shares of Borrower Common Stock outstanding multiplied by the Closing Trade Price (as defined below) of Borrower Common Stock immediately prior to such payment date, less the fair market value (as determined by Borrower’s Board and the Required Lenders) of said assets or evidences of indebtedness so distributed, or of such subscription rights, and the denominator of which shall be the total number of shares of Borrower Common Stock outstanding multiplied by such Closing Trade Price immediately prior to such payment date.  Such adjustment shall be made successively whenever such a payment date is fixed; provided that this Section shall not apply to the adoption or implementation of a shareholder rights plan by Borrower.

 

(g)Reserved Borrower Common Stock.  Borrower shall at all times keep authorized and approved under its Charter, as may be amended from time to time, solely for the purpose of effecting the conversion of Loans pursuant to this Agreement, such number of shares of Borrower Common Stock as may become issuable upon the conversion of Loans hereunder, and shall take all such corporate and other action as may be required from time to time in order that it may validly and legally issue Borrower Common Stock upon such conversion. Borrower covenants that all Conversion Shares shall be duly and validly issued and fully paid and nonassessable, and free from all taxes, liens and charges with respect to the issue thereof.

 

(h)Conversion Delays.  If Borrower fails to deliver Conversion Shares in accordance with the timeframe stated in this Section 2.9, the Converting Lender may at any time prior to receiving the applicable Conversion Shares rescind in whole or in part such Conversion, with a corresponding increase to the outstanding Loan balance, and the interest related to the purported Converted Loan shall accrue retroactively from the Conversion Date as if no Conversion Notice was ever delivered. In the event the Converting Lender does not rescind such Conversion, for each Conversion in which Conversion Shares are not delivered on or prior to the applicable Share Delivery Date, a late fee equal to 1% of the applicable Conversion Share Value rounded to the nearest multiple of $100.00 per day (but in any event the cumulative amount of such late fees for each Conversion shall not exceed 100% of the applicable Conversion Share Value) will be assessed for each day after such Share Delivery Date until Conversion Share delivery is made in accordance with this Section 2.9; and such late fee will be added to the outstanding Loan balance (such fees, the “Conversion Delay Late Fees”).  In addition to payment of the Conversion Delay Late Fees, and irrespective of whether Converting Lender does or does not rescind any such Conversion, Borrower shall also promptly reimburse Agent and the Converting Lender for all fees, costs and expenses incurred in connection with any failure by Borrower to deliver Conversion Shares on or prior to the applicable Share Delivery Date in accordance with this Section 2.9.  “Conversion Share Value” shall mean the product of the number of Conversion Shares deliverable pursuant to any Conversion multiplied by the greater of (i) the Closing Trade Price of Borrower Common Stock on the Share Delivery Date for such Conversion and (ii) the applicable Conversion Price. “Closing Trade Price” shall mean the last closing trade price for Borrower Common Stock on its principal market, as reported by Bloomberg L.P. (“Bloomberg”), or, if its principal market begins to operate on an extended hours basis and does not designate the closing trade price then the last bid price or last trade price, respectively, of Borrower Common Stock prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if its 

 

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principal market is not the principal securities exchange or trading market for Borrower Common Stock, the last closing bid price or last trade price, respectively, of Borrower Common Stock on the principal securities exchange or trading market where Borrower Common Stock is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of Borrower Common Stock in the over-the-counter market on the electronic bulletin board for Borrower Common Stock as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for the common stock by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for Borrower Common Stock as reported by OTC Markets Group, Inc., and any successor thereto. If the Closing Trade Price cannot be calculated for Borrower Common Stock on a particular date on any of the foregoing bases, the Closing Trade Price of Borrower Common Stock on such date shall be the fair market value as mutually determined by the Converting Lender and Borrower. If the Converting Lender and Borrower are unable to agree upon the fair market value of Borrower Common Stock, then such dispute shall be resolved in accordance with the procedures in Section 11.10 of this Agreement. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

 

(i)Ownership Limitation.  Notwithstanding anything to the contrary contained in this Agreement or in the other Loan Documents, if at any time a Converting Lender shall or would be issued shares of Borrower Common Stock under the Loan Agreement or Loan Documents, but such issuance would cause the Converting Lender (collectively with its Affiliates) to beneficially own a number of shares exceeding 4.99% of the number of shares of Borrower Common Stock outstanding on such date (including for such purpose the shares of Borrower Common Stock issuable upon such issuance) (the “Maximum Percentage”), then Borrower must not issue to the Converting Lender shares of Borrower Common Stock which would exceed the Maximum Percentage. For purposes of this section, beneficial ownership of Borrower Common Stock will be determined pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended. By written notice to Borrower, the Converting Lender may increase or waive the Maximum Percentage as to itself but any such waiver will not be effective until the 61st day after delivery thereof. The foregoing 61-day notice requirement is enforceable, unconditional and non-waivable and shall apply to all Affiliates and assigns of the Converting Lender. The Converting Lender shall notify Borrower of the number of shares it beneficially owns so as to permit Borrower to comply with this section.

 

(j)Issuance Cap.  Notwithstanding anything to the contrary contained in this Agreement or in the other Loan Documents, Borrower and Lenders agree that the total cumulative number of shares of Borrower Common Stock issued to the Lenders (collectively with their respective Affiliates) hereunder together with all other Loan Documents may not exceed the requirements of Nasdaq Listing Rule 5635(d) (“Nasdaq 19.99% Cap”), except that such limitation will not apply following Approval (defined below). If the number of shares of Borrower Common Stock issued to the Lenders (collectively with their respective Affiliates) reaches the Nasdaq 19.99% Cap, so as not to violate the 20% limit established in Listing Rule 5635(d), Borrower will use reasonable commercial efforts to obtain stockholder approval of this Agreement and the issuance of additional Conversion Shares, if necessary, in accordance with the requirements of Nasdaq Listing Rule 5635(d) (the “Approval”).

 

(k)Fractional Shares.  No fractional shares shall be issued upon any Conversion hereunder.  If any fractional share of Borrower Common Stock would, except for the provisions of the first sentence of this Section 2.9(k), be delivered upon such Conversion, Borrower, in lieu of delivering such fractional share, shall round up to the nearest whole share and deliver to the Converting Lender, together with the other Conversion Shares issuable in such Conversion, one whole share of Borrower Common Stock, which share shall be deemed a Conversion Share for all purposes hereunder.

 

 

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(l)Cooperation.  Borrower shall cooperate with a Converting Lender, at its sole expense, to facilitate the timely issuance of Conversion Shares in accordance herewith, including instructing its counsel to provide Borrower’s transfer agent with respect to the Borrower Common Stock with any opinion reasonably necessary so that the Conversion Shares are issued without any restrictive legend and ensuring that Conversion Shares may be so issued without violation of any applicable law or regulation, or of any requirement of any national securities exchange upon which the Borrower Common Stock may be listed; and Borrower shall take no action reasonably expected to delay or prevent a Lender’s Conversion hereunder or the disposition, including resale, of Conversion Shares. Borrower shall use its reasonable best efforts to at all times satisfy the current public information requirements contained in Rule 144(c) promulgated under the Securities Act of 1933, as amended (the “Securities Act”).

 

2.6.Section 7.19 of the Loan Agreement is hereby amended and restated in its entirety to provide as follows:

 

Financial Covenant – Minimum Cash.  From and after July 1, 2021, Borrower shall at all times maintain Unrestricted Cash in an amount of not less than $15,000,000, plus the amount of Borrower’s accounts payable not paid after the 120th day following the invoice date for such accounts payable; provided however, that upon a Conversion election by any Lender as set forth in Section 2.9 above, the Unrestricted Cash amount shall be immediately reduced (dollar-for-dollar) by the principal amount of the Converted Loan, to not less than $10,000,000, plus the amount of Borrower’s accounts payable not paid after the 120th day following the invoice date for such accounts payable. Notwithstanding the foregoing, upon Borrower’s achievement of Performance Milestone III, this Section 7.19 shall not apply.

 

2.7.Section 8.1 of the Loan Agreement is hereby amended and restated in its entirety to provide as follows:

 

The Hercules Purchasers shall have the right, in their discretion, to participate in any closing of any single Subsequent Financing and purchase up to a maximum aggregate amount of Two Million Dollars ($2,000,000) of Subsequent Financing Securities; provided that with respect to any public offering of Unity, Unity agrees to use commercially reasonable efforts to provide the Hercules Purchasers with the opportunity to invest in each such Subsequent Financing if it is lawful to do so (or if the Subsequent Financing is an underwritten public offering pursuant to a registration statement under the Securities Act, as amended, to use commercially reasonable efforts to cause the underwriters for such offering to offer the Hercules Purchasers an allocation of securities in such offering), on the same terms, conditions and pricing afforded to other investors participating in such Subsequent Financing. Each Hercules Purchaser purchasing Subsequent Financing Securities shall be an “accredited investor” as defined in Regulation D promulgated under the Securities Act, as amended. For the avoidance of doubt, this Section 8.1, and all rights and obligations hereunder, shall expire upon and shall not survive termination of this Agreement.

	

	
   

3.Conditions of Effectiveness.  This Amendment shall become effective as of the Amendment Date, when and only when (i) Agent shall have received this Amendment duly executed by Lenders and Borrower, (ii) Agent and Lenders shall have been reimbursed for all reasonable legal fees and expenses incurred in connection with this Amendment; (iii) Agent shall have received a copy of resolutions of Borrower’s Board evidencing approval of the Loans and other transactions evidenced by the Loan Agreement, Amendment, and other Loan Documents, certified by an officer of Borrower; (iv) Agent shall have received copies of the Charter of Borrower, certified by the Secretary of State of the applicable jurisdiction of organization and other Organizational Documents, as amended through the Amendment Date, of Borrower certified by an officer of Borrower; and (v) Agent shall have received 

 

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certificates of good standing for Borrower from the applicable jurisdiction of organization and similar certificates from all other jurisdictions in which Borrower does business and where the failure to be qualified could have a Material Adverse Effect. 

 

4.Consistent Changes.  The other Loan Documents are hereby amended wherever necessary to reflect the changes described above.

 

5.Representations and Warranties.  Borrower hereby represents and warrants as follows:

 

(a)The execution, delivery, and performance by Borrower in connection with this Amendment has been duly authorized by all requisite action by or on behalf of Borrower, and this Amendment has been duly executed and delivered on behalf of Borrower. 

 

(b)This Amendment, the Loan Agreement, and the other Loan Documents, as amended hereby, constitute legal, valid and binding obligations of Borrower and are enforceable against Borrower in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally and by general principles of equity.

 

(c)The representations and warranties contained in Section 5 of the Loan Agreement, and in the other Loan Documents, certificates, or other writings delivered to the Lenders pursuant to the Loan Agreement or any other Loan Documents on or immediately prior to the Amendment Date are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such date as though made on and as of such date, except to the extent that any such representation or warranty expressly relates solely to an earlier date (in which case such representation or warranty shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date).

 

(d)No Event of Default or default has occurred and is continuing or would exist after giving effect to this Amendment. 

 

As of the Amendment Date, Borrower has no offsets, defenses, claims or counterclaims with respect to the Loan Agreement or the other Loan Documents, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against the Agent and/or Lenders, whether known or unknown, at law or in equity, in each case through and including the Amendment Date, all of them are hereby expressly WAIVED and Borrower hereby RELEASES the Agent and Lenders from any liability thereunder.

 

(e)The Amendment shall constitute a Loan Document and all references to the term “Loan Documents” in the Loan Agreement and any other Loan Documents shall be deemed to include this Amendment.

 

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6.Effect on the Loan Documents.

 

(a)Upon the effectiveness of Section 3 hereof, each reference in the Loan Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference to the Loan Agreement as amended hereby.

 

(b)Except as specifically amended herein, the Loan Agreement, the Loan Documents, and all other documents, instruments and agreements executed and/or delivered in connection therewith, shall remain in full force and effect, and are hereby ratified and confirmed, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations.

 

(c)Borrower hereby reaffirms the Loan Documents and all other documents and instruments necessary to effectuate the transactions contemplated under the Loan Agreement or to create and perfect the Liens of Agent with respect to all Collateral, and agrees that such Liens in the Collateral shall continue to secure the Secured Obligations. 

 

(d)The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of Lenders, nor constitute a waiver of any provision of the Loan Agreement, or any other Loan Documents, instruments or agreements executed and/or delivered under or in connection therewith.

 

 

7.Release; Covenant Not to Sue. 

 

(a)Borrower hereby absolutely and unconditionally releases and forever discharges the Agent, Lenders, and any and all participants, parent corporations, subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns thereof, together with all of the present and former directors, officers, agents and employees of any of the foregoing (each a “Released Party”), from any and all claims, demands or causes of action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under any state or federal law or otherwise, which any Borrower has had, now has or has made claim to have against any such person for or by reason of any act, omission, matter, cause or thing whatsoever arising under or related to the Loan Agreement and/or Loan Documents from the beginning of time to and including the date of this Amendment, whether such claims, demands and causes of action are matured or unmatured or known or unknown; provided however, no such release or discharge shall apply to the extent that such claims, demands and causes of action have resulted from: (i) the bad faith, gross negligence or willful misconduct of such Released Party, or (ii) any dispute among or between Released Parties and not involving any Borrower. 

 

(b)Borrower acknowledges that it may hereafter discover facts different from or in addition to those now known or believed to be true with respect to such claims, demands, or causes of action and agree that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts.  Borrower understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

 

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(c)Borrower, on behalf of itself and its successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Released Party above that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Released Party on the basis of any claim released, remised and discharged by the Borrower pursuant to the above release.  If Borrower or any of its respective successors, assigns or other legal representatives violates the foregoing covenant, Borrower, for itself and its respective successors, assigns and legal representatives, agrees to pay, in addition to such other damages as any Released Party may sustain as a result of such violation, all reasonable attorneys’ fees and costs incurred by such Released Party as a result of such violation.

 

8.Incorporation.  All other terms of the Loan Agreement and the Loan Documents are hereby incorporated by reference into this Amendment, including without limitation, any provisions related to notices, fees and expenses, consent to jurisdiction, waiver of jury trial and any other waiver set forth in the Loan Documents.

 

9.Governing Law.  This Amendment shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns and shall be governed by and construed in accordance with the laws of the State of California.

10.Mutual Waiver of Jury Trial/Judicial Reference. 

 

(a)Because disputes arising in connection with complex financial transactions are most quickly and economically resolved by an experienced and expert Person and the Parties wish applicable state and federal laws to apply (rather than arbitration rules), the Parties hereto desire that their disputes be resolved by a judge applying such applicable laws. BORROWER, THE AGENT, AND THE LENDERS SPECIFICALLY WAIVE ANY RIGHT THEY MAY HAVE TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY CLAIM OR ANY OTHER CLAIM (COLLECTIVELY, “CLAIMS”) ASSERTED BY BORROWER AGAINST THE AGENT, LENDERS OR THEIR RESPECTIVE ASSIGNEE OR BY THE AGENT, LENDERS OR THEIR RESPECTIVE ASSIGNEE AGAINST BORROWER. This waiver extends to all such Claims, including Claims that involve Persons other than Borrower, the Agent, or the Lenders; Claims that arise out of or are in any way connected to the relationship among Borrower, the Agent and/or the Lenders; and any Claims for damages, breach of contract, tort, specific performance, or any equitable or legal relief of any kind, arising out of this Amendment, the Loan Agreement, or any other Loan Documents.

 

(b)If the waiver of jury trial set forth in Section 10(a) above is ineffective or unenforceable, the Parties hereto agree that all Claims shall be resolved by reference to a private judge sitting without a jury, pursuant to Code of Civil Procedure Section 638, before a mutually acceptable referee or, if the Parties cannot agree, a referee selected by the Presiding Judge of the Santa Clara County, California. Such proceeding shall be conducted in Santa Clara County, California, with California rules of evidence and discovery applicable to such proceeding.

 

(c)In the event Claims are to be resolved by judicial reference, any of the Parties may seek from a court sitting in Santa Clara County, California, any prejudgment order, writ or other relief and have such prejudgment order, writ or other relief enforced to the 

 

--

 

fullest extent permitted by law notwithstanding that all Claims are otherwise subject to resolution by judicial reference.

 

11.Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

12.Prohibited Provision. Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

 

13.Countersignature and Electronic Execution.  This Amendment shall become effective only when it shall have been executed by Borrower, the Agent, and the Lenders.  Delivery of an executed counterpart of a signature page of this Amendment that is an Electronic Signature transmitted by facsimile, emailed PDF or any other electronic means that reproduces an image of an actual executed signature page shall be effective as delivery of a manually executed counterpart of this Amendment.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to this Amendment shall be deemed to include Electronic Signatures, deliveries or the keeping of records in any electronic form (including deliveries by facsimile, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page), each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including, without limitation, the Federal Electronic Signatures in Global and National Commerce Act, the California Uniform Electronic Transaction Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided however, that nothing herein shall require the Agent and/or Lenders to accept Electronic Signatures in any form or format without their prior written consent and pursuant to procedures approved thereby.

 

 

[Signature page follows]

 

 

 

--

 

 

IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first written above.

 

			
	
 
	
On behalf of Borrower:

	
 
	
 

UNITY Biotechnology, Inc.

 

	
 
	
By:
	
/s/ Anirvan Ghosh

	
 
	
Name:
	
Anirvan Ghosh

	
 
	
Title:
	
Chief Executive Officer

	
 
	
 
	
 

	
 
	
 

On behalf of Agent:

	
 
	
 

HERCULES CAPITAL, INC.

 

	
 
	
By:
	
/s/ Jennifer Choe

	
 
	
Name:
	
Jennifer Choe

	
 
	
Title:
	
Associate General Counsel

	
 
	
 
	
 

	
 
	
 

On behalf of Lenders

	
 
	
 

HERCULES CAPITAL, INC.

 

	
 
	
By:
	
/s/ Jennifer Choe

	
 
	
Name:
	
Jennifer Choe

	
 
	
Title:
	
Associate General Counsel

 

 

 

 

 

 

[Signature Page to Amendment No. 1 to Loan and Security Agreement]Exhibit 10.1

          

          

          

        

        NON-EMPLOYEE DIRECTOR RESTRICTED STOCK UNIT AWARD AGREEMENT

        UNDER THE LOYALTY VENTURES INC.

        2021 OMNIBUS INCENTIVE PLAN

        

        

        THIS RESTRICTED STOCK UNIT AWARD AGREEMENT (the “Agreement”), made as of [GRANT DATE] (the “Grant Date”) by and between Loyalty Ventures Inc. (the “Company”) and [PARTICIPANT NAME] (the “Participant”)

          who is a non-employee director of the Company.

        WHEREAS, pursuant to the Company’s 2021 Omnibus Incentive Plan (the “Plan”), the Company desires to afford the Participant the opportunity to acquire, or enlarge their ownership of, the Company’s common stock, $0.01 par value per share (“Stock”), so that the Participant may have a direct proprietary interest in the Company’s success.

        WHEREAS, the Company desires to have the Participant continue to serve on the Company’s Board of Directors (“Board”) and to provide the Participant with an incentive.

        NOW, THEREFORE, in consideration of the covenants and agreements herein contained, the parties hereto agree as
          follows:

        1. Basis for Award.  The Award is made under the Plan pursuant to Section 6(e) thereof.

        2. Restricted Stock Units Awarded.

        (a) The Company hereby awards to the Participant, in the aggregate, [##] Restricted Stock Units which shall be subject to the conditions set
            forth in the Plan and this Agreement.

        (b) Restricted Stock Units shall be evidenced by an account established and maintained for the Participant, which shall be credited for the
            number of Restricted Stock Units granted to the Participant.  By accepting this Award, the Participant acknowledges that the Company does not have an adequate remedy in damages for the breach by the Participant of the conditions and covenants
            set forth in this Agreement and agrees that the Company is entitled to and may obtain an order or a decree of specific performance against the Participant issued by any court having jurisdiction.

        (c) Except as provided in the Plan or this Agreement, prior to vesting as provided in Section 3 of this Agreement, the Restricted Stock Units
            will be forfeited by the Participant and all of the Participant’s rights to Stock or cash underlying the Award shall immediately terminate without any payment or consideration by the Company, in the event of a Participant’s early termination of
            service as provided in Section 4 below.

        (d) Dividend
                Equivalent Rights.  If the Company pays any cash dividend on its outstanding Stock for which the record date occurs after the Grant Date, the Committee will credit the Participant’s account as of the dividend payment date in an
            amount equal to the cash dividend paid on one share of Stock multiplied by the number of Restricted Stock Units under this Agreement that are unvested as of that record date (“Dividend Equivalents”).  Such

        
          
            1

            

            

          

          
            

          
            

            

          

        

        

        

        Dividend Equivalents will be subject to the vesting requirements of Section 3 below, and no Dividend Equivalents will vest or be paid
          to the Participant unless and until the corresponding Restricted Stock Unit vests and is settled.

        (e) Rights as Stockholder.  The
            Participant shall have no rights as a stockholder with respect to any Restricted Stock Unit until they shall have become the holder of record of such Stock, and except as otherwise provided in this Agreement or the Plan, no adjustment shall be
            made for dividends or distributions or other rights for which the record date is prior to the date upon which the Participant shall become the holder of record thereof.

        3. Vesting.  Subject to
            Sections 2 and 4 of this Agreement, the restrictions thereon will lapse and Award will vest upon the earlier of:

        (a) The Participant’s termination of service, which for the purposes of this Agreement is defined as (i) the Participant’s separation of
            service from the Board at the end of the Participant’s elected term of service; (ii) the Participant’s death; or (iii) the Participant’s Disability; or

        (b) the first anniversary of the Grant Date.

        Provided, however, pursuant to Section 6(e)(iv) of the Plan, this Award shall not vest prior to the first
          anniversary of the Grant Date.  Notwithstanding the foregoing, subject to the limitations of the Plan, the Committee may accelerate the vesting of all or part of the Award at any time and for any reason. As soon as practicable after the Award
          vests and consistent with Section 409A of the Code, payment shall be made in Stock (based upon the Fair Market Value of the Stock on the day all restrictions lapse) and cash in the amount of any Dividend Equivalents credited to the Participant’s
          account with respect to such shares of Stock.  The Committee shall cause the Stock to be electronically delivered to the Participant’s electronic account with respect to such Stock free of all restrictions.  Pursuant to Section 11, any cash
          and/or the number of shares of Stock delivered shall be net of cash and/or the number of shares of Stock withheld for satisfaction of Tax-Related Items (as defined below), if applicable.

        4. Forfeiture for Early Termination of
                Service.  Unless otherwise determined by the Committee at time of grant or thereafter or as otherwise provided in the Plan, if the Participant terminates his service prior to the end of his elected term, any unvested portion of
            any outstanding Award held by a Participant at the time of such early termination of service will be forfeited upon such termination.

        5. Participant.

        Whenever the word “Participant” is used in any provision of this Agreement under circumstances where the provision should logically be construed to apply to the beneficiaries, the executors, the administrators, or the person or persons to whom the
          Restricted Stock Units and Dividend Equivalent Rights may be transferred by will or by the laws of descent and distribution, the word “Participant”
          shall be deemed to include such person or persons.

        
          
            2

            

            

          

          
            

          
            

            

          

        

        

        

        6. Adjustments; Change in Control.

        (a) In the event that the Committee determines that any dividend or other distribution (whether in the form of cash, Stock or other
            property), recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase or exchange of Stock or other securities, liquidation, dissolution, or other similar corporate transaction or event,
            affects the Stock such that an adjustment is appropriate in order to prevent dilution or enlargement of the rights of Participants under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of the
            number and kind of shares that may be issued in respect of Restricted Stock Units.  In addition, the Committee is authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or
            nonrecurring events (including, without limitation, events described in the preceding sentence) affecting the Company or any Affiliate or the financial statements of the Company or any Affiliate or in response to changes in applicable laws,
            regulations, or accounting principles.  

        (b) In connection with a Change in Control, the Committee may, in its sole discretion, accelerate the vesting and/or the lapse of
            restrictions with respect to the Award.  If the Award is not assumed, substituted for an award of equal value, or otherwise continued after a Change in Control, the Award shall automatically vest prior to the Change in Control at a time
            designated by the Committee.  Timing of any payment or delivery of shares of Stock under this provision shall be subject to Section 409A of the Code.

        7. Clawback.  Notwithstanding anything in the Plan or this Agreement to the contrary, in the event that the Participant breaches any nonsolicitation,
            noncompetition or confidentiality agreement entered into with, or while acting on behalf of, the Company or any Affiliate, the Committee may (a) cancel the Award, in whole or in part, whether or not vested, and/or (b) require such Participant
            or former Participant to repay to the Company any gain realized or payment or shares received upon the exercise or payment of, or lapse of restrictions with respect to, such Award (with such gain, payment or shares valued as of the date of
            exercise, payment or lapse of restrictions).  Notwithstanding anything in the Plan or any Agreement to the contrary, if any of the Company’s financial statements are required to be restated due to errors, omissions, fraud, or misconduct, the
            Committee may, in its sole discretion but acting in good faith, direct the Company to recover all or a portion of any Award or any past or future compensation from any Participant or former Participant with respect to any fiscal year of the
            Company for which the financial results are negatively affected by such restatement. Such cancellation or repayment obligation shall be effective as of the date specified by the Committee.  Any repayment obligation may be satisfied in shares of
            Stock or cash or a combination thereof (based upon the Fair Market Value of the shares of Stock on the date of repayment) and the Committee may provide for an offset to any future payments owed by the Company or any Affiliate to the Participant
            if necessary to satisfy the repayment obligation; provided, however, that if any such offset is prohibited under applicable law, the Committee shall not permit any offsets and may require immediate repayment by the Participant.

        8. Compliance with Law. 
            Notwithstanding any of the provisions hereof, the Company will not be obligated to issue or deliver any Stock to the Participant hereunder, if the exercise thereof or the issuance or delivery of such Stock shall constitute a violation by the
            Participant or the Company of any provisions of any law or regulation of any governmental

        
          
            3

            

            

          

          
            

          
            

            

          

        

        

        

        authority.  Any determination in this connection by the Committee shall be final, binding and conclusive.  The Company shall in no
          event be obliged to register any securities pursuant to the U.S. Securities Act of 1933 (as now in effect or as hereafter amended) or to take any other affirmative action in order to cause the issuance or delivery of Stock pursuant thereto to
          comply with any law or regulation of any governmental authority.

        9. No Right to Re-election or Continued
                Service.  Nothing in this Agreement or in the Plan shall confer upon the Participant any right to continue in the service of the Company as a non-employee director nor shall the Agreement be deemed to create any obligation of the
            Board to nominate any of its members for re-election by the Company stockholders nor confer on the Participant the right to remain a member of the Board for any period of time or at any particular rate of compensation.  This Agreement shall not
            interfere with or restrict in any way the rights of the Company, which are hereby expressly reserved.  Participant acknowledges and agrees that the continued vesting of the Restricted Stock Units granted hereunder is premised upon his provision
            of future services as a member of the Board and vesting of such Restricted Stock Units shall not accelerate upon his termination of service for any reason unless specifically provided for herein.

        10. Representations and Warranties of
                Participant.  The Participant represents and warrants to the Company that:

        (a) Agrees to Terms of the Plan.  The Participant
            has received a copy of the Plan and has read and understands the terms of the Plan and this Agreement, and agrees to be bound by their terms and conditions.  In the event of a conflict or inconsistency between the terms and provisions of the
            Plan and the provisions of this Agreement, the Plan shall govern and control.  All capitalized terms not defined herein shall have the meaning
              ascribed to them as set forth in the Plan.

        (b) Cooperation.  The Participant agrees to sign
            such additional documentation as may reasonably be required from time to time by the Company.

        (c) No Advice Regarding Grant.  The Company is not
            providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of the underlying Stock.  The Participant should consult
            with the Participant’s own personal tax, legal and financial advisors regarding participation in the Plan before taking any action related to the Plan or this Award.

        11. Responsibility for Taxes. 
            The Participant acknowledges that, regardless of any action taken by the Company, the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to the
            Participant’s participation in the Plan and legally applicable to the Participant (“Tax-Related Items”) is and remains the Participant’s responsibility and may exceed the amount actually withheld by the Company.  The Participant further
            acknowledges that the Company (a) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including, but not limited to, the grant, vesting or settlement of the
            Award, the subsequent sale of shares of Stock acquired pursuant to the Award and the receipt of any Dividend Equivalents; and (b) does not commit to and is under no obligation to structure the terms of the Award or any aspect of the Award to
            reduce or eliminate the Participant’s liability for Tax-Related

        
          
            4

            

            

          

          
            

          
            

            

          

        

        

        

        Items or achieve any particular tax result.  Furthermore, if the Participant has become subject to Tax-Related Items in more than one jurisdiction, the Participant acknowledges that the Company may be required to
          withhold or account for Tax-Related Items in more than one jurisdiction. 
         

        

        Prior to any relevant taxable or tax withholding event, as applicable, the Participant will pay or make adequate arrangements satisfactory to the
          Company to satisfy all Tax-Related Items.  In this regard, the Participant authorizes the Company, or  its agents, at their discretion, to satisfy their withholding obligations with regard to all Tax-Related Items by: (i) requiring a cash payment
          from the Participant; (ii) withholding from the Participant’s cash compensation paid to the Participant by the Company, (iii) withholding from the proceeds of the sale of Stock acquired pursuant to the Award, either through a voluntary sale or
          through a mandatory sale arranged by the Company (on the Participant’s behalf pursuant to this authorization without further consent); and/or (iv) withholding from the shares of Stock subject to the Restricted Stock Units, provided, however, that
          if the Participant is a Section 16 officer or director of the Company under the Exchange Act, then the Participant may elect the form of
          withholding from the alternatives above in advance of any tax withholding event, and in the absence of the Participant's timely election, the Company will withhold in shares of Stock, or the Committee (as constituted in accordance with Rule 16b-3
          under the Exchange Act) may determine that a particular method be used to satisfy any withholding obligations for Tax‐Related Items.

        

        

        The Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding rates or other applicable withholding
          rates, including maximum applicable rates, in which case the Participant will receive a refund of any over-withheld amount in cash and will have no entitlement to the equivalent in Stock.  If the obligation for Tax-Related Items is satisfied by
          withholding in shares of Stock, the Participant is deemed, for tax purposes, to have been issued the full number of shares of Stock subject to the vested Restricted Stock Units, notwithstanding that a number of the shares of Stock are held back
          solely for the purpose of paying the Tax-Related Items.

         

        

        
          The Company may refuse to issue or deliver the Stock, the proceeds of the sale of Stock or cash in the amount of any Dividend
            Equivalents if the Participant fails to comply with his or her obligations in connection with the Tax-Related Items.

        

        12. Notice.  Every notice or
            other communication relating to this Agreement shall be in writing, and shall be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the
            other party as herein provided; provided, that, unless and
            until some other address be so designated, all notices or communications by the Participant to the Company shall be mailed or delivered to the Company at its principal executive office, and all notices or communications by the Company to the
            Participant may be given to the Participant personally or may be mailed to Participant’s address as recorded in the records of the Company.

        
          
            5

            

            

          

          
            

          
            

            

          

        

        

        

        13. Governing Law; Choice of Venue. 

            This Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware without regard to its conflict of law principles.

        For purposes of litigating any dispute that arises under this grant or the Agreement, the parties hereby submit to
          and consent to the jurisdiction of the State of Texas, agree that such litigation shall be conducted in the courts of Collin County, Texas, or
          the federal courts for the United States for the Eastern District of Texas, where this grant is made and/or to be performed.

        14. Electronic Transmission and
                Participation.  The Company reserves the right to deliver any notice or Award by email in accordance with its policy or practice for electronic transmission and any written Award or notice referred to herein or under the Plan may
            be given in accordance with such electronic transmission policy or practice. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system
            established and maintained by the Company or any third party designated by the Company.

        15. Country - Specific Provisions.  The Award shall be subject to any special terms and conditions set forth in the appendix to this Agreement for the Participant’s country (the
            “Appendix”).  Moreover, if the Participant relocates to one of the countries included in the Appendix, the special terms
            and conditions for such country will apply to the Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons.  The Appendix constitutes part
            of this Agreement.

        16. Imposition of Other Requirements.  The Company reserves the right to impose other requirements on the Participant’s participation in the Plan, or the Award or on the Restricted
            Stock Units and on any Stock acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require the Participant to sign any additional agreements or undertakings that
            may be necessary to accomplish the foregoing.

        17. Severability.  The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in
            whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

        18. Waiver.  The Participant acknowledges that a waiver by the Company of breach of any provision of the Agreement shall not operate or be construed as a
            waiver of any other provision of the Agreement, or of any subsequent breach by the Participant or any other Participant.

        * * * * * *

        
          
            6

            

            

          

          
            

          
            

            

          

        

        

        

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

        
           

          

          LOYALTY VENTURES INC.

          

          

          

          

          By: /s/ Cynthia L. Hageman

          

          

          Cynthia L. Hageman

          Executive Vice President, General Counsel and Secretary

          

          

          

          

          PARTICIPANT

        

        

        

        

        

        
          	
                   

                

        

         

        

        
          [PARTICIPANT NAME]

        

        
          
            7

            

            

          

          
            

          
            

            

          

        

        
        APPENDIX TO THE

        RESTRICTED STOCK UNIT AWARD AGREEMENT

        UNDER THE LOYALTY VENTURES INC.

        2021 OMNIBUS INCENTIVE PLAN

        

        

        

        

        This Appendix contains additional (or, if so indicated, different) terms and conditions that govern the Award if the Participant
          is or becomes located outside of the United States of America (the “U.S.”). All capitalized terms not defined herein shall have the meaning ascribed to them as set forth in the Plan or the main body of this Agreement, as applicable. To the extent
          there are any inconsistencies between these additional terms and conditions and those set forth in the Agreement, these additional terms and conditions shall prevail.

        If Participant is a citizen or resident of a country other than the one in which they are currently working, is considered a
          citizen or resident of another country for local law purposes, or transfers employment or residency to another country after the Award is granted, the Company shall, in its discretion, determine to what extent the terms and conditions contained
          herein shall be applicable to the Participant.

        ALL COUNTRIES

        Nature of Grant.  In accepting the Award, the Participant
          acknowledges, understands and agrees that:

        
          	
                  a)

                	
                  the Plan is established voluntarily by the Company, is discretionary in nature and may be modified, amended, suspended, or
                    terminated by the Company at any time, to the extent permitted by the Plan;

                

        

        
          	
                  b)

                	
                  the grant of the Award is exceptional, voluntary and occasional and does not create any contractual or other right to
                    receive future awards, or benefits in lieu of awards, even if awards have been granted in the past;

                

        

        
          	
                  c)

                	
                  all decisions with respect to future awards, if any, will be at the sole discretion of the Company;

                

        

        
          	
                  d)

                	
                  the Participant’s participation in the Plan is voluntary;

                

        

        
          	
                  e)

                	
                  the Award and any Stock or cash underlying or acquired pursuant to the Award, and the income and value of same, are not
                    part of normal or expected compensation or salary for any purposes, including, without limitation, calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, holiday pay, bonuses, long-service
                    awards, pension or retirement or welfare benefits or similar payments;

                

        

        
          	
                  f)

                	
                  the future value of the Stock underlying the Award is unknown, indeterminable and cannot be predicted with certainty;

                

        

        
          
            

            

          

          Appendix - 1

          
            

          
            

            

          

        

        
          	

                	

                

        

        
          	
                  g)

                	
                  unless otherwise agreed with the Company, the Award is not granted as consideration for, or in connection with, the service
                    the Participant may provide as a director of any Affiliate;

                

        

        
          	
                  h)

                	
                  no claim or entitlement to compensation or damages shall arise from forfeiture of any portion of this Award resulting from
                    termination of the Participant’s employment relationship (for any reason whatsoever and regardless of whether later found to be invalid or in breach of applicable laws in the jurisdiction where the Participant is employed or the terms
                    of the Participant’s employment agreement, if any);

                

        

        
          	
                  i)

                	
                  except as otherwise stated in the country specific provisions below, for purposes of the Award, the Participant’s
                    employment relationship will be considered terminated as of the date the Participant is no longer actively providing services to the Company or any Affiliate (regardless of the reason for such termination and whether or not later found
                    to be invalid or in breach of applicable laws in the jurisdiction where the Participant is employed  or the terms of the Participant’s employment agreement, if any), and unless otherwise expressly provided in this Agreement or
                    determined by the Company, the Participant’s right to vest in the Award, if any, will terminate effective as of such date and will not be extended by any notice period (e.g., the Participant’s period of employment would not include any contractual notice period or any period of “garden leave” or similar period mandated under the applicable laws in the
                    jurisdiction where the Participant is employed or the terms of the Participant’s employment agreement, if any); the Committee shall have the exclusive discretion to determine when the Participant is no longer actively providing services
                    for purposes of the Award (including whether the Participant may still be considered to be providing services while on a leave of absence);

                

        

        
          	
                  j)

                	
                  unless otherwise provided in the Plan or by the Company in its discretion, the Award and the benefits under the Plan
                    evidenced by this Agreement do not create any entitlement to have this Award or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate
                    transaction affecting the Stock or this Award; and

                

        

        
          	
                  k)

                	
                  neither the Company, the Employer nor any other Affiliate shall be liable for any foreign exchange rate fluctuation between
                    the Participant’s local currency and the U.S. dollar that may affect the value of the Award or of any amounts due to the Participant pursuant to the Award or the subsequent sale of any shares of Stock acquired under the Plan.

                

        

        Data
              Privacy Information and Consent. 

        
          	
                  a)

                	
                  Data Collection and Usage.  The Company and the Employer may collect, process and
                    use certain personal information about the Participant, including, but not limited to, the Participant’s name, home address and telephone number, email address, date of

                

        

        
          
            

            

          

          Appendix - 2

          
            

          
            

            

          

        

        
          	

                	

                

        

        birth, social insurance number, passport or other identification number,
          salary, nationality, job title, any shares of stock or directorships held in the Company, details of all Restricted Stock Units or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in the
          Participant’s favor (“Data”), for the purposes of implementing, administering and managing the Plan.  The legal basis, where required, for the processing of Data is the Participant’s consent.

        
          	
                  b)

                	
                  Incentive Plan Administration Service Providers.  The Company transfers Data to
                    Fidelity Brokerage Services LLC and its affiliated companies (“Fidelity”), an independent service provider based in the United States, which is assisting the Company with the implementation, administration and management of the Plan. 
                    In the future, the Company may select a different service provider and share Data with such other provider serving in a similar manner. The Participant acknowledges and understands that Fidelity will open an account for the Participant
                    to receive this Award and to receive and trade shares of Stock, if any, acquired under the Plan.  The Participant may be asked to agree on separate terms and data processing practices with the service provider, with such agreement being
                    a condition to the Participant’s ability to participate in the Plan.

                

        

        
          	
                  c)

                	
                  International Data Transfers. The Company and its service providers are based in
                    the United States. Participant’s country or jurisdiction may have different data privacy laws and protections than the United States.  In the absence of appropriate safeguards, such as standard data protection clauses, the processing of
                    the Participant’s Data in the United States or, as the case may be, other countries might not be subject to substantive data processing principles or supervision by data protection authorities.  In addition, the Participant might not
                    have enforceable rights regarding the processing of the Participant’s Data in such countries. The Company’s legal basis, where required, for the transfer of Data is Participant’s consent.

                

        

        
          	
                  d)

                	
                  Data Retention. The Company will hold and use the Data only as long as is necessary
                    to implement, administer and manage the Participant’s participation in the Plan, or as required to comply with legal or regulatory obligations, including under tax and security laws.

                

        

        
          	
                  e)

                	
                  Voluntariness and Consequences of Consent Denial or Withdrawal. Participation in the
                    Plan is voluntary and the Participant is providing the consents herein on a purely voluntary basis.  If the Participant does not consent, or if the Participant later seeks to revoke the Participant’s consent, the Participant’s salary
                    from or employment and career with the Employer will not be affected; the only consequence of refusing or withdrawing the Participant’s consent is that the Company would not be able to grant this Award or other awards to the Participant
                    or administer or maintain such awards.

                

        

        
          
            

            

          

          Appendix - 3

          
            

          
            

            

          

        

        
          	

                	

                

        

        
          	
                  f)

                	
                  Data Subject Rights. The Participant may have a number of rights under data privacy
                    laws in the Participant’s jurisdiction.  Depending on where the Participant is located, such rights may include the right to (i) request access or copies of Data the Company processes, (ii) rectification of incorrect Data, (iii)
                    deletion of Data, (iv) restrictions on processing of Data, (v) portability of Data, (vi) lodge complaints with competent authorities in the Participant’s jurisdiction, and/or (vii) receive a list with the names and addresses of any
                    potential recipients of Data. To receive clarification regarding these rights or to exercise these rights, Participant may contact his or her local human resources representative.

                

        

        By accepting the Award and indicating consent via the Company’s online acceptance
          procedure, the Participant is declaring that they agree with the data processing practices described herein and consents to the collection, processing and use of Data by the Company and the transfer of Data to the recipients mentioned above,
          including recipients located in countries which do not adduce an adequate level of protection from a European (or other non-U.S.) data protection law perspective, for the purposes described above.

        Language. The Participant acknowledges and represents that they are proficient in the

        English language or has consulted with an advisor who is sufficiently proficient in English, as to

        allow the Participant to understand the terms of the Agreement and any other document related

        to this Award and/or the Plan. If the Participant has received the Agreement, or any other document related to this Award and/or
          the Plan translated into a language other than English and the meaning of the translated version is different than the English version, the English version will control.

        Insider Trading
              Restrictions/Market Abuse Laws.  The Participant acknowledges that the Participant may be subject to insider trading
          restrictions and/or market abuse laws in applicable jurisdictions including, but not limited to, the United States and Participant’s country of residence, which may affect the Participant’s ability to accept, acquire, sell or otherwise dispose of
          Stock, rights to Stock (e.g., Restricted Stock Units) or rights linked to the value of Stock during such times the Participant is considered
          to have “inside information” regarding the Company as defined in the laws or regulations in the applicable jurisdictions.  Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed
          under any applicable Company insider trading policy. The Participant acknowledges that it is his or her responsibility to comply with any restrictions and the Participant should consult his or her personal legal advisor on this matter.

        Foreign Asset / Account and
              Exchange Control Reporting Obligations.  The Participant may be subject to certain foreign asset and/or account reporting
          requirements and/or exchange control restrictions, reporting requirements or repatriation obligations related to the Award and participation in the Plan.  Such requirements and restrictions may be triggered by the grant of the Award, the opening
          of a brokerage account in connection with the Plan, the acquisition of shares of Stock or dividends paid on the Stock or cash proceeds from the sale of the shares of Stock, or other activities or transactions related to the Plan.  The Participant
          acknowledges that it is his or her responsibility to be compliant with any applicable requirements, and the Participant should consult his or her personal tax or legal advisor with any questions about such requirements.

        
          
            

            

          

          Appendix - 4

          
            

          
            

            

          

        

        

        

        AUSTRALIA

        

        

        Tax Information.  The Plan is a plan to
          which Subdivision 83A-C of the Income Tax Assessment Act 1997 (Cth) applies (subject to the conditions in that Act).

        

        

        Securities Law Information.  Any
          information given by or on behalf of the Company is general information only.  The Participant should obtain financial product advice from an
            independent person who is licensed by the Australian Securities and Investments Commission (“ASIC”) to give advice about participating in the Plan.

        The grant of Restricted Stock Units under the terms of the Plan and the Agreement does not require disclosure under the Corporations Act 2001 (Cth) (the “Corporations Act”). No document provided to the Participant in connection with participation in the Plan (including this Agreement):

        
          	
                  •

                	
                  is a prospectus, product disclosure statement or other disclosure document for purposes of the Corporations Act; or

                

        

        
          	
                  •

                	
                  has been filed or reviewed by a regulator in Australia (including ASIC).

                

        

        The Participant should not rely on any oral statements made in connection with his or her participation in the Plan.  The Participant should rely only
          upon the statements contained in this Agreement when considering whether to participate in the Plan.

        

        

        In the event that shares of Stock are issued to the Participant under the Plan, the value of any shares of Stock will be affected by the Australian /
          U.S. dollar exchange rate, in addition to fluctuations in value caused by the fortunes of the Company.

        

        

        If the Participant offers any shares of Stock for sale to a person or entity resident in Australia, the offer may be subject to disclosure requirements
          under Australian law.  The Participant should consult with his or her personal legal advisor prior to making any such offer to ensure compliance
            with the applicable requirements.

        

        

        BELGIUM

        

        

        No country-specific provisions apply.

        BRAZIL

        Compliance with Law.  In accepting the Award, the Participant acknowledges that they agree to comply with applicable Brazilian laws and to pay any and all applicable
          taxes associated with the vesting and settlement of the Award, the sale of any Stock acquired under the Plan and the receipt of any dividends.

        Nature of Grant.  The following provision supplements the “Nature of Grant” provision of the Appendix:

        
          
            

            

          

          Appendix - 5

          
            

          
            

            

          

        

        

        

        In accepting the Award, the Participant understands and agrees that (i) they are making an investment decision, and (ii) the value
          of the underlying Stock, if any,  is not fixed and may increase or decrease over the vesting period without compensation to the Participant.

        CANADA

        Termination of Employment.  The following provision replaces Section 4 of the Agreement:

        

        

        Unless otherwise determined by the Committee at time of grant or thereafter or as otherwise provided in the Plan, any unvested portion of any
            outstanding Award held by a Participant at the time of termination of employment will not vest, and will be forfeited, upon such termination, except to the extent provided under the Canada specific “Nature of Grant” provision of the Appendix
            below.

        

        

        Nature of Grant.  The following provision replaces subsection (i) of the “Nature of Grant” provision of the Appendix:

        

        

        For purposes of the Award and the Participant’s right (if any) to earn, seek damages in lieu of, or otherwise be paid any portion of the Award, whether
          in cash or in Stock (and any related Dividend Equivalents) pursuant to this Agreement, the Participant’s employment relationship will be considered terminated as of the date that is the earlier of (i) the date the Participant’s employment with
          the Employer is terminated, whether by the Participant, by the Employer, or by way of contractual frustration, or (ii) the date the Participant receives notice of termination (either written or otherwise), regardless of any period during which
          notice, pay in lieu of notice or related payments or damages are provided or required to be provided under local law. For greater certainty, Participant will not earn or be entitled to any pro-rated vesting for that portion of time before the
          date on which Participant’s right to vest terminates, nor will Participant be entitled to any compensation for lost vesting. Notwithstanding the foregoing, if applicable employment standards legislation explicitly requires continued vesting
          during a statutory notice period, Participant’s right to vest in the Award, whether in cash or in Stock (and any related Dividend Equivalents), if any, will terminate effective upon the expiration of Participant’s minimum statutory notice period,
          and Participant will not earn or be entitled to pro-rated vesting if the vesting date falls after the end of Participant’s statutory notice period, nor will Participant be entitled to any compensation for lost vesting.

        

        

        The following provisions apply
            for Participants resident in Quebec:

        Language Consent. The parties acknowledge that it is their express wish that the Agreement, as well as all documents, notices and legal proceedings entered into,
          given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English.

        Consentement

              Relatif à la Langue Utilisée.  Les parties reconnaissent avoir expressement souhaité que la convention [“Agreement”], ainsi que
          tous les documents, avis et procédures judiciaries, éxecutés, donnés ou intentés en vertu de, ou liés, directement ou indirectement à la présente convention, soient rédigés en langue anglaise.

         Data
              Privacy.  The following provision supplements the “Data Privacy” provision of the Appendix:

        
          
            

            

          

          Appendix - 6

          
            

          
            

            

          

        

        

        

        To the extent necessary for the purposes of administering the Plan, the Participant hereby authorizes the Company and the
          Company’s representatives to discuss with and obtain all relevant information from all personnel, professional or not, involved in the administration and operation of the Plan.  The Participant further authorizes the Company, any Affiliate and
          the administrator of the Plan to disclose and discuss the Plan with their advisors.  The Participant further authorizes the Company and any Affiliate to record such information and to keep such information in the Participant’s employee file.

        Securities Law Information.  The Participant acknowledges that they are permitted to sell the Stock acquired under the Plan through the designated broker appointed by the
          Company, provided the sale of the Stock takes place outside of Canada through facilities of a stock exchange on which the shares of Stock are listed (i.e.,
          at the time of this Award, the Nasdaq Stock Market).

        FRANCE

        Award Not Tax-Qualified.  The Participant understands that the Award is not intended to be French tax-qualified.

        Language
              Consent.  By accepting the Agreement, the Participant confirms having read and understood the documents relating to this grant
          (the Plan and the Agreement) which were provided in English language.  The Participant accepts the terms of those documents accordingly.

        Consentement Relatif à la Langue Utilisée.  En acceptant le Contrat, la Participant confirme avoir lu et compris les
          documents relatifs à cette attribution (le Plan et le Contrat) qui ont été communiqués en langue anglaise.  La Participant accepte les termes de ces documents en connaissance de cause.

        GERMANY

        No country-specific provisions apply.

        HONG KONG

        

        

        Representations and Warranties
              of Participant.  The following provision supplements Section 10 of the main body of the Agreement:

        Any shares of Stock received at vesting are accepted by the Participant as a personal investment.  In the event that an Award
          vests in whole or in part and shares of Stock are issued to the Participant (or the Participant’s heirs) within six months of the date of grant, the Participant (or the Participant’s heirs) agrees that the shares of Stock will not be offered to
          the public or otherwise disposed of prior to the six-month anniversary of the date of grant. 

        Securities
              Law Information.  WARNING: The
            contents of this Agreement have not been reviewed by any regulatory authority in Hong Kong.  The Participant is advised to exercise caution in relation to the offer.  If the Participant is in any doubt about any of the contents of this
            Agreement, Participant should obtain independent professional advice.  Neither the grant of the Award nor the issuance of Stock upon vesting of the Award constitutes a public offering of securities
            under Hong Kong law; the Award and the shares of Stock are available only to employees of the Company and its Affiliates.  The Agreement, including this Appendix, the Plan and other incidental

        
          
            

            

          

          Appendix - 7

          
            

          
            

            

          

        

        

        

        communication materials distributed in connection with the Award (i) have not been prepared in accordance with
          and are not intended to constitute a “prospectus” for a public offering of securities under the applicable securities legislation in Hong Kong, and (ii) are intended only for the personal use of each eligible employee of the Company and its
          Affiliates and may not be distributed to any other person.

        ITALY

        Plan Document Acknowledgement.  By accepting the Award, the Participant acknowledges that the Participant has received a copy of the Plan and the Agreement and has reviewed
          the Plan and the Agreement, including the Appendix, in their entirety and fully understands and accepts all provisions of the Plan and the Agreement, including the Appendix.  The Participant further acknowledges that the Participant has read and
          specifically and expressly approves the following sections of the Agreement: Section 2: Award; Section 3: Vesting; Section 4: Termination of Employment; Section 7: Clawback; Section 10: Representations and Warranties of Participant; Section 11:
          Responsibility for Taxes; Section 12: Notice; Section 13: Governing Law and Choice of Venue; Section 14: Electronic Transmission and Participation; Section 15: Country-Specific Provisions; and  Section 16: Imposition of Other Requirements.

        

        

        JAPAN

        

        

        No country-specific provisions apply.

        

        

        LUXEMBOURG

        No country-specific provisions apply.

        NETHERLANDS

        No country-specific provisions apply.

        POLAND

        No country-specific provisions apply.

        

        

        SOUTH KOREA

        

        

        No country-specific provisions apply.

        SPAIN

        

        

        Nature of Grant.  This provision supplements the “Nature of Grant” provision of the Appendix: In accepting the Award, the Participant consents to participation in the Plan and
          acknowledges that Participant has received a copy of the Plan. 

         

        

        The Participant understands and agrees that, as a condition of the grant of the Award, if the Participant’s employment terminates, unless otherwise
          provided in the Agreement or by the

        
          
            

            

          

          Appendix - 8

          
            

          
            

            

          

        

        

        

        

        

        Company, any unvested portion of the Award shall be forfeited without entitlement to the underlying cash or Stock, if any, or to
          any amount as indemnification in the event of a termination, including, but not limited to: resignation, disciplinary dismissal adjudged to be with cause, disciplinary dismissal adjudged or recognized to be without cause, individual or collective
          layoff on objective grounds, whether adjudged to be with cause or adjudged or recognized to be without cause, material modification of the terms of employment under Article 41 of the Workers’ Statute, relocation under Article 40 of the Workers’
          Statute, Article 50 of the Workers’ Statute, unilateral withdrawal by the Employer, and under Article 10.3 of Royal Decree 1382/1985.

        The Participant understands that the Company has unilaterally, gratuitously and in its sole discretion decided to grant the Award
          to individuals who may be employees of the Company or an Affiliate.  The decision is limited and entered into based upon the express assumption and condition that any Award will not economically or otherwise bind the Company or any Affiliate,
          including the Employer, on an ongoing basis, other than as expressly set forth in the Agreement.  Consequently, the Participant understands that the Award is granted on the assumption and condition that the Award shall not become part of any
          employment or service agreement (whether with the Company or any Affiliate, including the Employer) and shall not be considered a mandatory benefit, salary for any purpose (including severance compensation) or any other right whatsoever. 
          Furthermore, the Participant understands and freely accepts that there is no guarantee that any benefit whatsoever shall arise from the grant of the Award, which is gratuitous and discretionary, since the future value of the Award and the
          underlying Stock, if any, is unknown and unpredictable.  The Participant also understands that the grant of the Award would not be made but for the assumptions and conditions set forth hereinabove; thus, the Participant understands, acknowledges
          and freely accepts that, should any or all of the assumptions be mistaken or any of the conditions not be met for any reason, the grant of the Award and any right to the underlying shares of Stock, if any, shall be null and void.

        Securities Law Information.  No “offer of securities to the public”, as defined under Spanish law, has taken place or will take place in the Spanish territory with respect
          to the Award.  No public offering prospectus has been nor will be registered with the Comisión Nacional del Mercado de Valores (Spanish Securities Exchange Commission) (“CNMV”).  Neither the Plan nor the Agreement constitute a public offering prospectus and they have not been, nor will they be, registered with the CNMV.

        UNITED KINGDOM

        Responsibility for Taxes. The following supplements Section 11 of the main body of the Agreement:

        Without limitation to Section 11 of the main body of the Agreement, the Participant agrees that the Participant is liable for all
          Tax-Related Items and hereby covenants to pay all such Tax-Related Items, as and when requested by the Company or the Employer or by Her Majesty’s Revenue and Customs (“HMRC”) (or any other tax authority or any other relevant authority).  The Participant also agrees to indemnify and keep indemnified the Company and the Employer against any Tax–Related Items that
          they are required to pay or withhold or have paid or will pay to HMRC (or any other tax authority or any other relevant authority) on the Participant’s behalf.

        
          
            

            

          

          Appendix - 9

          
            

          
            

            

          

        

        

        

        Notwithstanding the foregoing, if the Participant is an executive officer or director, as within the meaning of Section 13(k) of
          the Securities and Exchange Act of 1934, as amended, the terms of the immediately foregoing provision will not apply.  In the event that the Participant is such an executive officer or director and the income tax is not collected from or paid by
          the Participant within ninety (90) days of the end of the U.K. tax year in which an event giving rise to the indemnification described above occurs, the amount of any uncollected income tax may constitute a benefit to the Participant on which
          additional income tax and national insurance contributions may be payable.  The Participant acknowledges that they will be responsible for reporting and paying any income tax due on this additional benefit directly to the HMRC under the
          self-assessment regime and for paying the Company or the Employer, as applicable, for the value of any employee national insurance contributions due on this additional benefit.

        

        

        

        

        
          

          

        

      

    

    

  

  Appendix - 10

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