Document:

Unassociated Document

Exhibit 10.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DEED OF TRUST 352002.1 PAGE 1 OF 10 NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER. DEED OF TRUST Terms Date: August ____, 2017 Grantor: Roselancland Limited Partnership Grantor’s Mailing Address: 12147 Lueders Lane Dallas, Texas 75230 Trustee: Bryon R. Hammer Trustee’s Mailing Address: 301 Commerce Street, Suite 1500 Fort Worth, Texas 76102 Lender: Leonite Capital, LLC Lender’s Mailing Address: 1 Hillcrest Center Drive, Suite 232 Spring Valley, New York 10977 Attn: Avi Geller Obligation: Senior Secured Convertible Promissory Note (the “Note”) Date: Of even date herewith. Original principal amount: One Million One Hundred Twenty Thousand and No/100 Dollars ($1,120,000.00) Borrower: Nexeon Medsystems Inc. Attn.: William Rosellini, CEO 1910 Pacific Avenue, Suite 20000 Dallas, Texas 75201 Lender: Leonite Capital, LLC 1 Hillcrest Center Drive, Suite 232 Spring Valley, New York 10977 Attn: Avi Geller Maturity date: Twenty Four (24) months from the Issue Date (as defined in the Note) Notarize ID: XV2DZCDR 21 EXHIBIT 10.9 DEED OF TRUST 352002.1 PAGE 2 OF 10 Other Debt: This conveyance is also made in trust to secure payment of all other present and future debts that Borrower may owe to Lender, its successors or assigns, regardless of how any other such debt is incurred or evidenced. This conveyance is also made to secure payment of any renewal or extension of any present or future debt that Borrower owes to Lender, its successors or assigns, including any loans and advancements from Lender to Borrower under the provisions of this deed of trust. When Borrower repays all debts owed to Lender, its successors or assigns, this deed of trust lien will terminate only if Lender releases this deed of trust at the request of Borrower and at Borrower’s expense. Until Lender, its successors or assigns releases it, this deed of trust will remain fully in effect to secure other present and future advances and debts, regardless of any additional security given for any debt and regardless of any modification. Property (including any improvements): That certain property described on Exhibit A attached hereto and incorporated herein by reference, together with the following personal property: 1. all fixtures, supplies, building materials, and other goods of every nature now or hereafter located, used, or intended to be located or used on the Property; 2. all plans and specifications for development of or construction of improvements on the Property; 3. All accounts, contract rights, instruments, documents, general intangibles, and chattel paper arising from or by virtue of any transactions relating to the Property; 4. All permits, licenses, franchises, certificates, and other rights and privileges obtained in connection with the Property; 5. All proceeds payable or to be payable under each policy of insurance relating to the Property; and 6. All products and proceeds of the foregoing. Notwithstanding any other provision in this deed of trust, the term “Property” does not include personal property that is located, used, or intended to be located or used on the Property, but not owned by Grantor. Prior Lien: None. Other Exceptions to Conveyance and Warranty: Any and all restrictions, covenants, conditions, and easements, if any, relating to the Property, but only to the extent that they are in effect as of the date hereof and shown of record, and all zoning laws, regulations and ordinances of municipal and other governmental authorities, if any, but only to the extent that they are still in effect and relate to the herein described Property. A. Granting Clause For value received, including $100 paid by Borrower to Grantor and the benefit to be derived by Grantor from the Note, and to secure payment of the Note, Grantor conveys the Property to Trustee in trust. Notarize ID: XV2DZCDR DEED OF TRUST 352002.1 PAGE 3 OF 10 Grantor warrants that Grantor has good, indefeasible and insurable title to the Property and has the right to mortgage, give, grant, bargain, sell, convey, pledge, assign and hypothecate the same and that Grantor possesses a fee estate in the Property and that it owns the Property free and clear of all liens, encumbrances and charges whatsoever. Grantor shall forever warrant, defend and preserve such title and the validity and priority of the lien of this deed of trust and shall forever warranty and defend the same to Lender against the claims of all persons whomsoever, subject to the Other Exceptions to Conveyance and Warranty. On payment and satisfaction in full of the Note and all other amounts secured by this deed of trust, this deed of trust will have no further effect, and Lender will release it at Grantor’s expense. B. Grantor’s Obligations B.1. Grantor agrees to maintain, at Grantor’s expense, all property and liability insurance coverages with respect to the Property, revenues generated by the Property, and operations on the Property that Lender reasonably requires (“Required Insurance Coverages”), issued by insurers and written on policy forms acceptable to Lender, and as to property loss, that are payable to Lender under policies containing standard mortgagee clauses, and deliver evidence of the Required Insurance Coverages in a form acceptable to Lender before execution of this deed of trust and again at least ten (10) days before the expiration of the Required Insurance Coverages. B.2. Grantor agrees to— a. keep the Property in good repair and condition; b. pay all taxes, charges, impositions, levies, and assessments on the Property before delinquency, not authorize a taxing entity to transfer its tax lien on the Property to anyone other than Lender, and not request a deferral of the collection of taxes pursuant to section 33.06 of the Texas Tax Code; c. furnish to Lender or other holder of the Note annually, before taxes become delinquent, copies of tax receipts showing that all taxes and assessments on the Property have been paid; d. defend title to the Property subject to the Other Exceptions to Conveyance and Warranty and preserve the lien’s priority as it is established in this deed of trust; e. obey all laws, ordinances, and restrictive covenants applicable to the Property; f. keep any buildings occupied as required by the Required Insurance Coverages; g. if the lien of this deed of trust is not a first lien, pay or cause to be paid all prior lien notes and abide by or cause to be abided by all prior lien instruments; h. notify Lender of any change of address; i. allow Lender or Lender’s agents to enter the Property at reasonable times and inspect it and any personal property in which Lender is granted a security interest by this deed of trust; and Notarize ID: XV2DZCDR DEED OF TRUST 352002.1 PAGE 4 OF 10 j. duly and punctually observe and perform each and every term, provision, condition, and covenant to be observed or performed by Grantor pursuant to the terms of any agreement or recorded instrument affecting or pertaining to the Property, and not suffer or permit any default or event of default to exist under any of the foregoing. C. Lender’s Rights C.1. Lender or its mortgage servicer may appoint in writing one or more substitute trustees, succeeding to all rights and responsibilities of Trustee. C.2. If the proceeds of the Note are used to pay any debt secured by prior liens, Lender is subrogated to all the rights and liens of the holders of any debt so paid. C.3. Lender may apply any proceeds received under the property insurance policies covering the Property either to reduce the Note or to repair or replace damaged or destroyed improvements covered by the policy. If the Property is Grantor’s primary residence and Lender reasonably determines that repairs to the improvements are economically feasible, Lender will make the property insurance proceeds available to Grantor for repairs. C.4. Notwithstanding the terms of the Note to the contrary, and unless applicable law prohibits, all payments received by Lender from Borrower or Grantor with respect to the Note or this deed of trust may, at Lender’s discretion, be applied first to amounts payable under this deed of trust and then to amounts due and payable to Lender with respect to the Note, to be applied to late charges, principal, or interest in the order Lender in its discretion determines. C.5. If Grantor fails to perform any of Grantor’s obligations, Lender may perform those obligations and be reimbursed by Grantor on demand for any amounts so paid, including attorney’s fees, plus interest on those amounts from the dates of payment at the rate stated in the Note for matured, unpaid amounts. The amount to be reimbursed will be secured by this deed of trust. C.6. If a default exists in payment of the Note or performance of Grantor’s obligations and the default continues after any required notice of the default and the time allowed to cure, Lender may— a. declare the unpaid principal balance and earned interest on the Note immediately due; b. exercise Lender’s rights with respect to rent under the Texas Property Code as then in effect; c. direct Trustee to foreclose this lien, in which case Lender or Lender’s agent will cause notice of the foreclosure sale to be given as provided by the Texas Property Code as then in effect; d. purchase the Property at any foreclosure sale by offering the highest bid and then have the bid credited on the Note; and e. exercise any other rights available under law. Notarize ID: XV2DZCDR DEED OF TRUST 352002.1 PAGE 5 OF 10 C.7. Lender may remedy any default without waiving it and may waive any default without waiving any prior or subsequent default. C.8. COLLATERAL PROTECTION INSURANCE NOTICE In accordance with the provisions of section 307.052(a) of the Texas Finance Code, the Lender hereby notifies the Grantor as follows: (a) the Grantor is required to: (i) keep the collateral insured against damage in the amount the Lender specifies; (ii) purchase the insurance from an insurer that is authorized to do business in the state of Texas or an eligible surplus lines insurer; and (iii) name the Lender as the person to be paid under the policy in the event of a loss; (b) the Grantor must, if required by the Lender, deliver to the Lender a copy of the policy and proof of the payment of premiums; and (c) if the Grantor fails to meet any requirement listed in Paragraph (A) or (B), the Lender may obtain collateral protection insurance on behalf of the Grantor at the Grantor’s expense. D. Trustee’s Rights and Duties If directed by Lender to foreclose this lien, Trustee will— D.1. either personally or by agent give notice of the foreclosure sale as required by the Texas Property Code as then in effect; D.2. sell and convey all or part of the Property “AS IS” to the highest bidder for cash with a general warranty binding Grantor, subject to the Prior Lien and to the Other Exceptions to Conveyance and Warranty and without representation or warranty, express or implied, by Trustee; D.3. from the proceeds of the sale, pay, in this order— a. expenses of foreclosure, including a reasonable commission to Trustee; b. to Lender, the full amount of principal, interest, attorney’s fees, and other charges due and unpaid; c. any amounts required by law to be paid before payment to Grantor; and d. to Grantor, any balance. D.4. be indemnified, held harmless, and defended by Lender against all costs, expenses, and liabilities incurred by Trustee for acting in the execution or enforcement of the trust created by this deed of trust, Notarize ID: XV2DZCDR DEED OF TRUST 352002.1 PAGE 6 OF 10 which includes all court and other costs, including attorney’s fees, incurred by Trustee in defense of any action or proceeding taken against Trustee in that capacity. E. General Provisions E.1. If any of the Property is sold under this deed of trust, Grantor must immediately surrender possession to the purchaser. If Grantor does not, Grantor will be a tenant at sufferance of the purchaser, subject to an action for forcible detainer. E.2. Recitals in any trustee’s deed conveying the Property will be presumed to be true. E.3. Proceeding under this deed of trust, filing suit for foreclosure, or pursuing any other remedy will not constitute an election of remedies. E.4. This lien will remain superior to liens later created even if the time of payment of all or part of the Note is extended or part of the Property is released. E.5. If any portion of the Note cannot be lawfully secured by this deed of trust, payments will be applied first to discharge that portion. E.6. Grantor assigns to Lender all amounts payable to or received by Grantor from condemnation of all or part of the Property, from private sale in lieu of condemnation, and from damages caused by public works or construction on or near the Property. After deducting any expenses incurred, including attorney’s fees and court and other costs, Lender will either release any remaining amounts to Grantor or apply such amounts to reduce the Note. Lender will not be liable for failure to collect or to exercise diligence in collecting any such amounts. Grantor will immediately give Lender notice of any actual or threatened proceedings for condemnation of all or part of the Property. E.7. Grantor collaterally assigns to Lender all present and future rent from the Property and its proceeds. Grantor warrants the validity and enforceability of the assignment. Grantor will apply all rent to payment of the Note and performance of this deed of trust, but if the rent exceeds the amount due with respect to the Note and the deed of trust, Grantor may retain the excess. If a default exists in payment of the Note or performance of this deed of trust, Lender may exercise Lender’s rights with respect to rent under the Texas Property Code as then in effect. Lender neither has nor assumes any obligations as lessor or landlord with respect to any occupant of the Property. Lender may exercise Lender’s rights and remedies under this paragraph without taking possession of the Property. Lender will apply all rent collected under this paragraph as required by the Texas Property Code as then in effect. Lender is not required to act under this paragraph, and acting under this paragraph does not waive any of Lender’s other rights and remedies. E.8. Interest on the debt secured by this deed of trust will not exceed the maximum amount of nonusurious interest that may be contracted for, taken, reserved, charged, or received under law. Any interest in excess of that maximum amount will be credited on the principal of the debt or, if that has been paid, refunded. On any acceleration or required or permitted prepayment, any such excess will be canceled automatically as of the acceleration or prepayment or, if already paid, credited on the principal of the debt or, if the principal of the debt has been paid, refunded. This provision overrides any conflicting provisions in this and all other instruments concerning the debt. Notarize ID: XV2DZCDR DEED OF TRUST 352002.1 PAGE 7 OF 10 E.9. In no event may this deed of trust secure payment of any debt that may not lawfully be secured by a lien on real estate or create a lien otherwise prohibited by law. E.10. If all or any party of the Property is sold, transferred, or conveyed without the prior written consent of Lender, Lender may declare the outstanding principal balance of the Note plus accrued interest immediately due and payable. Lender has no obligation to consent to any such sale or conveyance of the Property, and Lender is entitled to condition any consent on a change in the interest rate that will thereafter apply to the Note and any other change in the terms of the Note or this deed of trust that Lender in Lender’s sole discretion deems appropriate. A lease with an option to purchase, or a contract for deed will be deemed to be a sale, transfer, or conveyance of the Property for purposes of this provision. Any deed under threat or order of condemnation, any conveyance solely between makers, and the passage of title by reason of death of a maker or by operation of law will not be construed as a sale or conveyance of the Property. The creation of a subordinate lien without the consent of Lender will be construed as a sale or conveyance of the Property, but any subsequent sale under a subordinate lien to which Lender has consented will not be construed as a sale or conveyance of the Property. E.11. Grantor may not cause or permit any of the following events to occur without the prior written consent of Lender: if Grantor is (a) a corporation, the dissolution of the corporation or the sale, pledge, encumbrance, or assignment of any shares of its stock; (b) a limited liability company, the dissolution of the company or the sale, pledge, encumbrance, or assignment of any of its membership interests; (c) a general partnership or joint venture, the dissolution of the partnership or venture or the sale, pledge, encumbrance, or assignment of any of its partnership or joint venture interests, or the withdrawal from or admission into it of any general partner or joint venturer; or (d) a limited partnership, (i) the dissolution of the partnership, (ii) the sale, pledge, encumbrance, or assignment of any of its general partnership interests, or the withdrawal from or admission into it of any general partner, (iii) the sale, pledge, encumbrance, or assignment of a controlling portion of its limited partnership interests, or (iv) the withdrawal from or admission into it of any controlling limited partner or partners. If granted, consent may be conditioned upon (y) the integrity, reputation, character, creditworthiness, and management ability of the person succeeding to the ownership interest in Grantor (or security interest in such ownership) being satisfactory to Lender; and (z) the execution, before such event, by the person succeeding to the interest of Grantor in the Property or ownership interest in Grantor (or security interest in such ownership) of a written modification or assumption agreement containing such terms as Lender may require, such as a principal pay down on the Note, an increase in the rate of interest payable with respect to the Note, a transfer fee, or any other modification of the Note, this deed of trust, or any other instruments evidencing or securing the Note. E.12. When the context requires, singular nouns and pronouns include the plural. E.13. The term Note includes all extensions, modifications, and renewals of the Note and all amounts secured by this deed of trust. E.14. This deed of trust binds, benefits, and may be enforced by the successors in interest of all parties. Lender may assign its rights and/or obligations under this deed of trust without the prior written consent of Grantor. E.15. If Grantor and Borrower are not the same person, the term Grantor includes Borrower. Notarize ID: XV2DZCDR DEED OF TRUST 352002.1 PAGE 8 OF 10 E.16. Grantor and each surety, endorser, and guarantor of the Note waive, to the extent permitted by law, all (a) demand for payment, (b) presentation for payment, (c) notice of intention to accelerate maturity, (d) notice of acceleration of maturity, (e) protest, and (f) notice of protest. E.17. Grantor agrees to pay reasonable attorney’s fees, trustee’s fees, and court and other costs of enforcing Lender’s rights under this deed of trust if an attorney is retained for its enforcement. E.18. If any provision of this deed of trust is determined to be invalid or unenforceable, the validity or enforceability of any other provision will not be affected. E.19. Grantor agrees to execute, acknowledge, and deliver to Lender any document requested by Lender, at Lender’s request from time to time, to (a) correct any defect, error, omission, or ambiguity in this deed of trust or in any other document executed in connection with the Note or this deed of trust; (b) comply with Grantor’s obligations under this deed of trust and other documents; (c) subject to and perfect the liens and security interests of this deed of trust and other documents any property intended to be covered thereby; and (d) protect, perfect, or preserve the liens and the security interests of this deed of trust and other documents against third persons or make any recordings, file any notices, or obtain any consents requested by lender in connection therewith. Grantor agrees to pay all costs of the foregoing. E.20. In addition to creating a deed-of-trust lien on all the real and other property described above, Grantor also grants to Lender a security interest in all of the above-described personal property pursuant to and to the extent permitted by the Texas Uniform Commercial Code. E.21. In the event of a foreclosure sale under this deed of trust, Grantor agrees that all the Property may be sold as a whole at Lender’s option and that the Lender need not be present at the place of sale. E.22. Grantor represents to Lender that no part of the Property is either the residential or business homestead of Grantor and that Grantor neither resides nor intends to reside in nor conducts nor intends to conduct a business on the Property. Grantor renounces all present and future rights to a homestead exemption for the Property. Grantor acknowledges that Lender relies on the truth of representations in this paragraph in making the loan secured by this deed of trust. E.23. The lien security interest and other security rights of Lender hereunder shall not be impaired by any indulgence, moratorium, or release granted by Lender, including, but not limited to, any renewal, extension, increase, or modification which Lender may grant with respect to the Note or this deed of trust. E.24. Grantor warrants to Lender and agrees that the proceeds of the Note will be used primarily for business or commercial purposes and not primarily for personal, family, or household purposes. [Remainder of the Page Left Intentionally Blank] Notarize ID: XV2DZCDR DEED OF TRUST 352002.1 PAGE 9 OF 10 GRANTOR: ROSELANCLAND LIMITED PARTNERSHIP, a Texas limited partnership By: Michael Rosellini, its General Partner STATE OF TEXAS § § COUNTY OF ___________ § This instrument was acknowledged before me on the ________ day of August, 2017, by Michael Rosellini, the General Partner of Roselancland Limited Partnership, on behalf of such limited partnership. _____________________________ Notary Public, State of Texas AFTER RECORDING, RETURN TO: Bryon R. Hammer 301 Commerce Street, Suite 1500 Fort Worth, Texas 76102 Notarize ID: XV2DZCDR VIRGINIA Campbell 21st : Pa Pleuni Clazina D Finley VIRGINIA __________________ ___ euni Finle My Commission expires: 01-31-2020 My Notary ID: 7669630 DEED OF TRUST 352002.1 PAGE 10 OF 10 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY Being a part of the P. KIRKLAND SURVEY, PATENT NO. 352, Volume 10, Abstract No. 746, and described by metes and bounds as follows: BEGINNING at the Northwest corner of 160 acres deeded to H. Bailey by R.P. Henry and wife on December 31, 1901; THENCE South with the West line of said 160 acre tract 1460 feet; THENCE East, passing an iron stake under a fence on the East side of the public road, in all 572 feet to corner, an iron stake; THENCE North 404 feet; THENCE East 1540 feet to an iron stake on the East line of said 160 acre tract; THENCE North 1056 feet to a bois d'arc stake at the N.E. corner of said 160 acre tract; THENCE West 2112 feet to the PLACE OF BEGINNING; EXCEPTING about 3-1/2 acres heretofore set apart and occupied by the right-of-way of the M.K. & T. R.R. and the County Public Road and excepting 3.29 acres of land conveyed by J.N. Lowrance et ux to E.T. Moore, Trustee, by Deed recorded in Volume 529, Page 472, Deed Records of Dallas County, Texas, leaving approximately 47-1/2 acres of land. FURTHER SAVE AND EXCEPT 3.154 acres of land described in Deed recorded in Volume 79173, Page 1603, Real Property Records, Dallas County, Texas. FURTHER SAVE AND EXCEPT 1.00 acre conveyed by Randy Michael Rosellini to Rose Wade Limited Partnership by Deed recorded under Clerk's File No. 20070194882, Real Property Records, Dallas County, Texas. Notarize ID: XV2DZCDRExhibit 41

		

			Exhibit 4.1

		

		
			NCS MULTISTAGE HOLDINGS, INC.
		

		
			EMPLOYEE STOCK PURCHASE PLAN 
		

		
			FOR US EMPLOYEES
		

			
	
			
				 1.
			Purpose. This NCS Multistage Holdings, Inc. Employee Stock Purchase Plan (the “Plan”) is intended to provide employees of the Company and its Participating Subsidiaries with an opportunity to acquire a proprietary interest in the Company through the purchase of shares of Common Stock. The Company intends that the Plan qualify as an "employee stock purchase plan" under Section 423 of the Code and the Plan shall be interpreted in a manner that is consistent with that intent. 

			
	
			
				 2.
			Definitions.

		
			“Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3 under the Exchange Act.
		

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

		
			“Code” means the U.S. Internal Revenue Code of 1986, as it may be amended from time to time. Any reference to a section of the Code shall be deemed to include a reference to any regulations promulgated thereunder. 
		

		
			“Committee” means (i) the Compensation Committee of the Board, (ii) such other committee of the Board appointed by the Board to administer the Plan or (iii) the Board, as determined by the Board.
		

		
			“Common Stock” means the common stock of the Company, par value $0.01 per share.
		

		
			“Company” means NCS Multistage Holdings, Inc., including any successor thereto. 
		

		
			“Compensation” means base salary, wages,  annual bonuses and overtime paid to an Eligible Employee by the Company or a Participating Subsidiary as compensation for services to the Company or Participating Subsidiary, before deduction for any salary deferral contributions made by the Eligible Employee to any tax-qualified or nonqualified deferred compensation plan.
		

		
			“Change of Control” shall mean the occurrence of one or more of the following events:
		

			
	
			
				 (a)
			Any Person becomes the Beneficial Owner, directly or indirectly, of more than fifty percent (50%) of the combined voting power, excluding any Excluded Persons or any person that is the Beneficial Owner, directly or indirectly, of more than fifty percent (50%) of the combined voting power on the Effective Date, of the then outstanding voting securities of the Company entitled to vote generally in the election of its directors (the “Outstanding Company Voting Securities”) including by way of merger, 
		

		 

 

			consolidation or otherwise; provided,  however, that for purposes of this definition, the following acquisitions shall not be taken into account in determining whether a Change of Control has occurred: (i) any acquisition of voting securities of the Company directly from the Company or (ii) any acquisition by the Company or any of its Subsidiaries of Outstanding Company Voting Securities, including an acquisition by any employee benefit plan or related trust sponsored or maintained by the Company, or any of its Subsidiaries.

			
	
			
				 (b)
			The following individuals (the “Incumbent Directors”) cease for any reason to constitute a majority of the number of directors then serving on the Board: individuals who, on the Effective Date, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including, but not limited to, a consent or proxy solicitation, relating to the election of directors of the Company by or on behalf of a Person other than the Board) whose appointment or election by the Board or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least a majority of the directors then still in office who either were directors on the Effective Date or whose appointment, election or nomination for election was previously so approved or recommended.

			
	
			
				 (c)
			Consummation of a reorganization, merger, or consolidation to which the Company is a party or a sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), unless, following such Business Combination: (i) any individuals and entities that were the Beneficial Owners of Outstanding Company Voting Securities immediately prior to such Business Combination are the Beneficial Owners, directly or indirectly, of more than fifty percent (50%) of the combined voting power of the outstanding voting securities entitled to vote generally in the election of directors (or election of members of a comparable governing body) of the entity resulting from the Business Combination (including, without limitation, an entity which as a result of such transaction owns all or substantially all of the Company or all or substantially all of the Company’s assets either directly or through one or more Subsidiaries) (the “Successor Entity”) in substantially the same proportions as their ownership immediately prior to such Business Combination; (ii) no Person (excluding any Successor Entity, any Excluded Person, any person that is the Beneficial Owner, directly or indirectly, of more than thirty percent (30%) of the combined voting power on the Effective Date or any employee benefit plan or related trust of the Company, such Successor Entity, or any of their Subsidiaries) is the Beneficial Owner, directly or indirectly, of more than thirty percent (30%) of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors (or comparable governing body) of the Successor Entity, except to the extent that such ownership existed prior to the Business Combination; and (iii) at least a majority of the members of the board of directors (or comparable governing body) of the Successor Entity were Incumbent Directors (including persons deemed to be Incumbent Directors) at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination.

		 

		

			2

		

 

		
			       “Designated Broker” means the financial services firm or other agent designated by the Company to maintain ESPP Share Accounts on behalf of Participants who have purchased shares of Common Stock under the Plan.
		

		
			“Effective Date” means the date as of which this Plan is adopted by the Board, subject to the Plan obtaining stockholder approval in accordance with Section 18.10 hereof.
		

		
			“Employee” means any person who renders services to the Company or a Participating Subsidiary as an employee pursuant to an employment relationship with such employer in accordance with Section 421 of the Code and the Treasury Regulations thereunder.
		

		
			“Eligible Employee” means an Employee other than (i) an Employee whose customary employment is for less than twenty  (20) hours per week, (ii)  an Employee whose customary employment is for not more than five (5) months in any calendar year and (iii) an Employee who has been employed for less than thirty (30) days prior to the beginning of an Offering Period, in each case unless any of such requirements are expressly waived for all Employees by the Committee for any Offering Period. Notwithstanding the foregoing, the Committee may exclude from participation in the Plan or any Offering, Employees who have been employed for less than two years or Employees who are “highly compensated employees” of the Company or a Participating Subsidiary (within the meaning of Section 414(q) of the Code) or a sub-set of such highly compensated employees.
		

		
			“Enrollment Form” means an agreement pursuant to which an Eligible Employee may elect to enroll in the Plan, to authorize a new level of payroll deductions, or to stop payroll deductions and withdraw from an Offering Period.
		

		
			“ESPP Share Account” means an account into which Common Stock purchased with accumulated payroll deductions at the end of an Offering Period are held on behalf of a Participant.
		

		
			“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended. 
		

		
			“Excluded Persons” means Advent International Corporation and its affiliates.
		

		
			“Fair Market Value” means the closing price as reported on the NASDAQ or other principal exchange on which the Common Stock is then listed on such date, or if the Common Stock was not traded on such date, then on the next preceding trading day that the Common Stock was traded on such exchange, as reported by such responsible reporting service as the Committee may select.
		

		

		

		 

		

			3

		

 

		 “Offering Date” means the first trading day of each Offering Period as designated by the Committee.
		

		
			“Offering or Offering Period” means the periods established in accordance with Section 5 during which options to purchase shares of Common Stock may be granted pursuant to the Plan and may be purchased on the Purchase Date.  
		

		
			“Participant” means an Eligible Employee who is actively participating in the Plan.
		

		
			“Participating Subsidiaries” means the Subsidiaries that have been designated as eligible to participate in the Plan by the Committee, or Board, from time to time in its sole discretion.
		

		
			“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof.
		

		
			“Plan” means this NCS Multistage Holdings, Inc. Employee Stock Purchase Plan, as set forth herein, and as amended from time to time.
		

		
			“Purchase Date” means the last trading day of each Offering Period.
		

		
			“Purchase Price” means an amount equal to the lesser of (i) eighty-five percent (85%) (or such greater percentage as designated by the Committee) of the Fair Market Value of a share of Common Stock on the Offering Date or (ii) eighty-five percent (85%) (or such greater percentage as designated by the Committee) of the Fair Market Value of a share of Common Stock on the Purchase Date; provided, that, the Purchase Price per share of Common Stock will in no event be less than the par value of the Common Stock.
		

		
			“Securities Act” means the Securities Act of 1933, as amended.
		

		
			“Subsidiary” means any corporation (other than the employer corporation) in an unbroken chain of corporations beginning with the employer corporation if, at the time of the granting of the option, each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50 percent or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. In all cases, the determination of whether an entity is a Subsidiary shall be made in accordance with Section 424(f) of the Code.
		

			
	
			
				 3.
			Administration. The Plan shall be administered by the Committee which shall have the authority to construe and interpret the Plan, prescribe, amend and rescind rules relating to the Plan's administration and take any other actions necessary or desirable for the administration of the Plan including, without limitation, adopting sub-plans applicable to particular Participating Subsidiaries or locations, which sub-plans may be designed to be outside the scope of Section 423 of the Code. The Committee may correct any defect 
		

		 

		

			4

		

 

			or supply any omission or reconcile any inconsistency or ambiguity in the Plan. The decisions of the Committee shall be final and binding on all persons. All expenses of administering the Plan shall be borne by the Company.

			
	
			
				 4.
			Eligibility. Unless otherwise determined by the Committee in a manner that is consistent with Section 423 of the Code, any individual who is an Eligible Employee as of the first day of the enrollment period designated by the Committee for a particular Offering Period shall be eligible to participate in such Offering Period, subject to the requirements of Section 423 of the Code.

		
			Notwithstanding any provision of the Plan to the contrary, no Eligible Employee shall be granted an option under the Plan if (i) immediately after the grant of the option, such Eligible Employee (or any other person whose stock would be attributed to such Eligible Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company and/or hold outstanding options to purchase stock, in the aggregate, possessing 5% or more of the total combined voting power or value of all classes of stock of the Company or any Subsidiary or (ii) such option would permit his or her rights to purchase stock under all employee stock purchase plans (described in Section 423 of the Code) of the Company and its Subsidiaries to accrue at a rate that exceeds $25,000 of the Fair Market Value of such stock (determined at the time the option is granted) for each calendar year in which such option is outstanding at any time.
		

			
	
			
				 5.
			Offering Periods. The Plan shall be implemented by a series of Offering Periods. Unless otherwise provided by the Committee, Offering Periods shall run from January 1st through December 31st; provided that the first Offering Period shall commence on October 16, 2017 and shall end on December 31, 2018. The Committee shall have the authority to change the duration, frequency, start and end dates of Offering Periods prior to their date of commencement (up to a maximum Offering Period of 27 months).

			
	
			
				 6.
			Participation.

			
	
			
				 6.1
			Enrollment; Payroll Deductions. An Eligible Employee may elect to participate in the Plan by properly completing an Enrollment Form, which may be electronic, and submitting it to the Company in accordance with the enrollment procedures established by the Committee. Participation in the Plan is entirely voluntary. By submitting an Enrollment Form, the Eligible Employee authorizes payroll deductions from his or her paycheck in an amount equal to at least 1%, but not more than 18% of his or her Compensation each pay day occurring during an Offering Period (or such other maximum percentage as the Committee may establish from time to time before an Offering Period begins), up to $25,000 per Offering Period (or such other amount as the Committee may establish from time to time before an Offering Period begins); provided that such limit shall be $50,000 for the first Offering Period. Payroll deductions shall commence on the first payroll date following the Offering Date and end on the last 
		

		 

		

			5

		

 

			payroll date on or before the Purchase Date. The Company shall maintain records of all payroll deductions but shall have no obligation to pay interest on payroll deductions or to hold such amounts in a trust or in any segregated account. Unless expressly permitted by the Committee in writing, a Participant may not make any separate contributions or payments to the Plan.

			
	
			
				 6.2
			Election Changes. During an Offering Period, a Participant may not change the rate of his or her payroll deductions applicable to such Offering Period.  A Participant may decrease or increase his or her rate of payroll deductions for future Offering Periods by submitting a new Enrollment Form authorizing the new rate of payroll deductions at least thirty days before the start of the next Offering Period. However, a Participant may withdraw from the Plan in accordance with Section 9.

			
	
			
				 6.3
			Automatic Re-enrollment.  The deduction rate selected in the Enrollment Form shall remain in effect for subsequent Offering Periods unless the Participant (a) submits a new Enrollment Form authorizing a new level of payroll deductions in accordance with Section 6.2, (b) withdraws from the Plan in accordance with Section  9, or (c) terminates employment or otherwise becomes ineligible to participate in the Plan. 

			
	
			
				 6.4
			Grant of Option. On each Offering Date, each Participant in the applicable Offering Period shall be granted an option to purchase, on the Purchase Date, a number of shares of Common Stock determined by dividing the Participant's accumulated payroll deductions by the applicable Purchase Price; provided, however, that in no event shall any Participant purchase more than 2,083 shares of Common Stock per Offering Period; provided further that, for the first Offering Period a Participant may not purchase more than the number of shares of Common Stock equal to the number of full months in such first Offering Period multiplied by 173. Any amount remaining in the Participant’s notional account as of the Purchase Date in excess of the amount that may be applied to purchase shares as a result of the limitations set forth here in (or as designated by the administrator of the Plan) shall be carried over to the next Offering Period. 

			
	
			
				 7.
			Exercise of Option/Purchase of Shares. A Participant's option to purchase shares of Common Stock will be exercised automatically on the Purchase Date of each Offering Period. The Participant's accumulated payroll deductions will be used to purchase the maximum number of whole shares that can be purchased with the amounts in the Participant's notional account. If and to the extent provided by the Committee, for so long as such shares of Common Stock are maintained in ESPP Share Accounts, all dividends paid with respect to such shares of Common Stock shall be credited to each Participant’s ESPP Share Account, and will be automatically reinvested in whole  shares of Common Stock. No fractional shares may be purchased but notional fractional shares of Common Stock will be allocated to the Participant’s ESPP Shares Account to be aggregated with other notional fractional shares of Common Stock on future Purchase Dates, subject to earlier withdrawal by the Participant in accordance with Section 9 or termination of employment in accordance with Section 10.

		 

		

			6

		

 

			
	
			
				 8.
			Transfer of Shares. As soon as reasonably practicable after each Purchase Date, the Company will arrange for the delivery to each Participant of the shares of Common Stock purchased upon exercise of his or her option. The Committee may permit or require that the shares be deposited directly into an ESPP Share Account established in the name of the Participant with a Designated Broker. Participants will not have any voting, dividend or other rights of a stockholder with respect to the shares of Common Stock subject to any option granted hereunder until such shares have been delivered pursuant to this Section 8.

			
	
			
				 9.
			Withdrawal.

			
	
			
				 9.1
			Withdrawal Procedure. A Participant may withdraw from an Offering by submitting to the Company a revised Enrollment Form indicating his or her election to withdraw at least thirty days before the end of the Offering Period. The accumulated payroll deductions held on behalf of a Participant in his or her notional account (that have not been used to purchase shares of Common Stock) shall be paid to the Participant promptly following receipt of the Participant's Enrollment Form indicating his or her election to withdraw and the Participant's option shall be automatically terminated. If a Participant withdraws from an Offering Period, no payroll deductions will be made during any succeeding Offering Period, unless the Participant re-enrolls in accordance with Section 6.1 of the Plan.

			
	
			
				 9.2
			Effect on Succeeding Offering Periods. A Participant's election to withdraw from an Offering Period will not have any effect upon his or her eligibility to participate in succeeding Offering Periods that commence following the completion of the Offering Period from which the Participant withdraws.

			
	
			
				 10.
			Termination of Employment; Change in Employment Status.  Upon termination of a Participant's employment for any reason, including death, disability or retirement, or a change in the Participant's employment status following which the Participant is no longer an Eligible Employee, which in either case occurs before the Purchase Date, the Participant will be deemed to have withdrawn from the Plan and the payroll deductions in the Participant's notional account (that have not been used to purchase shares of Common Stock) shall be returned to the Participant, or in the case of the Participant's death, to the person(s) entitled to such amounts under Section 16, and the Participant's option shall be automatically terminated. 

			
	
			
				 11.
			Interest. No interest shall accrue on or be payable with respect to the payroll deductions of a Participant in the Plan. 

			
	
			
				 12.
			Shares Reserved for Plan.

			
	
			
				 12.1
			Number of Shares.  Subject to adjustments as described below, a total of 2,000,000 shares of Common Stock have been reserved for issuance under the Plan and 
		

		 

		

			7

		

 

			the NCS Multistage Holdings, Inc. Employee Stock Purchase Plan for Non-US Employees. Such share reserve shall be reduced by any shares of Common Stock issued under this Plan and/or the NCS Multistage Holdings, Inc. Employee Stock Purchase Plan for Non-US Employees.

			
	
			
				 12.2
			Over-subscribed Offerings. The number of shares of Common Stock which a Participant may purchase in an Offering under the Plan may be reduced if the Offering is over-subscribed. No option granted under the Plan shall permit a Participant to purchase shares of Common Stock which, if added together with the total number of shares of Common Stock purchased by all other Participants in such Offering would exceed the total number of shares of Common Stock remaining available under the Plan. If the Committee determines that, on a particular Purchase Date, the number of shares of Common Stock with respect to which options are to be exercised exceeds the number of shares of Common Stock then available under the Plan, the Company shall make a pro rata allocation of the shares of Common Stock remaining available for purchase in as uniform a manner as practicable and as the Committee determines to be equitable.

			
	
			
				 13.
			Transferability. No payroll deductions credited to a Participant, nor any rights with respect to the exercise of an option or any rights to receive Common Stock hereunder may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution, or as provided in Section 16 hereof) by the Participant. Any attempt to assign, transfer, pledge or otherwise dispose of such rights or amounts shall be without effect.

			
	
			
				 14.
			Application of Funds. All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose to the extent permitted by applicable law, and the Company shall not be required to segregate such payroll deductions or contributions.

			
	
			
				 15.
			Statements. Participants will be provided with and/or have access to statements at least annually which shall set forth the contributions made by the Participant to the Plan, the Purchase Price of any shares of Common Stock purchased with accumulated funds, the number of shares of Common Stock purchased, and any payroll deduction amounts remaining in the Participant's notional account. 

			
	
			
				 16.
			Designation of Beneficiary. A Participant may file, on forms supplied by the Committee, a written designation of beneficiary who is to receive any shares of Common Stock and cash in respect of any fractional shares of Common Stock, if any, from the Participant's ESPP Share Account under the Plan in the event of such Participant's death. In addition, a Participant may file a written designation of beneficiary who is to receive any cash withheld through payroll deductions and credited to the Participant's notional account in the event of the Participant's death prior to the Purchase Date of an Offering Period. In the event that no such form or designation is filed, the shares of Common Stock or cash shall be distributed to the Participant’s estate. 

		 

		

			8

		

 

			
	
			
				 17.
			Adjustments.

			
	
			
				 17.1
			Adjustments. If there shall occur any change with respect to the outstanding shares of Common Stock by reason of any recapitalization, reclassification, stock dividend, extraordinary dividend, stock split, reverse stock split or other distribution with respect to the shares of Common Stock or any merger, reorganization, consolidation, combination, spin-off or other similar corporate change or any other change affecting the Common Stock (other than regular cash dividends to stockholders of the Company), then in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, the Committee will, in such manner as it deems equitable and subject to stockholder approval if required to comply with Section 423 of the Code, adjust the number and kind of shares of stock that may be delivered under the Plan, the Purchase Price per share and the number of shares of Common Stock covered by each outstanding option under the Plan, and the numerical limits of Section 6.4 and Section 12.

			
	
			
				 17.2
			Change of Control.  In the event of a Change of Control, the Committee shall have the power and discretion to (i) continue the Offering Period in effect on the date of such Change of Control,  (ii) shorten the Offering Period then in progress by setting a “New Purchase Date” which shall be before the date of the Company’s proposed Change of Control, (iii) substitute shares of Common Stock available under the Plan with shares of common stock of the surviving company or its parent, or (iv) terminate the Plan and return any payroll deductions in the Participant's notional account (that have not been used to purchase shares of Common Stock) to the Participant. In the event of prong (ii), the Committee shall notify each Participant in writing, at least ten (10) trading days prior to the New Purchase Date, that the Purchase Date for the Participant’s purchase right has been changed to the New Purchase Date and that shares of Common Stock shall be purchased automatically on the New Purchase Date, unless prior to such date the Participant has withdrawn from the Offering Period as describe in Section 9 above.

			
	
			
				 18.
			General Provisions.

			
	
			
				 18.1
			Equal Rights and Privileges.  Notwithstanding any provision of the Plan to the contrary and in accordance with Section 423 of the Code, all Eligible Employees who are granted options under the Plan shall have the same rights and privileges. 

			
	
			
				 18.2
			No Right to Continued Service. Neither the Plan nor any compensation paid hereunder will confer on any Participant the right to continue as an Employee or in any other capacity.

			
	
			
				 18.3
			Rights As Stockholder. A Participant will become a stockholder with respect to the shares of Common Stock that are purchased pursuant to options granted under the Plan when the shares are transferred to the Participant or the Participant's ESPP Share Account. A Participant will have no rights as a stockholder with respect to shares of 
		

		 

		

			9

		

 

			Common Stock for which an election to participate in an Offering Period has been made until such Participant becomes a stockholder as provided above.

			
	
			
				 18.4
			Successors and Assigns. The Plan shall be binding on the Company and its successors and assigns.

			
	
			
				 18.5
			Entire Plan. This Plan constitutes the entire plan with respect to the subject matter hereof and supersedes all prior plans with respect to the subject matter hereof.  

			
	
			
				 18.6
			Compliance With Law. The obligations of the Company with respect to payments under the Plan are subject to compliance with all applicable laws and regulations. Common Stock shall not be issued with respect to an option granted under the Plan unless the exercise of such option and the issuance and delivery of the shares of Common Stock pursuant thereto shall comply with all applicable provisions of law, including, without limitation, the Securities Act, the Exchange Act, and the requirements of any stock exchange upon which the shares may then be listed.

			
	
			
				 18.7
			Term of Plan. The Plan shall become effective on the Effective Date and shall remain in full force and effect until terminated pursuant to Section 18.8.

			
	
			
				 18.8
			Amendment or Termination. The Committee may, in its sole discretion, amend, suspend or terminate the Plan at any time and for any reason. If the Plan is terminated, the Committee may elect to terminate all outstanding Offering Periods either immediately or once shares of Common Stock have been purchased on the next Purchase Date (which may, in the discretion of the Committee, be accelerated) or permit Offering Periods to expire in accordance with their terms (and subject to any adjustment in accordance with Section 17). If any Offering Period is terminated before its scheduled expiration, all amounts that have not been used to purchase shares of Common Stock will be returned to Participants (without interest, except as otherwise required by law) as soon as administratively practicable. 

			
	
			
				 18.9
			Applicable Law.  The Plan and all rights hereunder shall be subject to and interpreted in accordance with the laws of the State of Delaware, without reference to the principles of conflicts of laws, and to applicable Federal or other securities laws.

			
	
			
				 18.10
			Stockholder Approval. The Plan shall be subject to approval by the stockholders of the Company within twelve (12) months before or after the date the Plan is adopted by the Board.

			
	
			
				 18.11
			Section 423. The Plan is intended to qualify as an "employee stock purchase plan" under Section 423 of the Code. Any provision of the Plan that is inconsistent with Section 423 of the Code shall be reformed to comply with Section 423 of the Code.

		 

		

			10

		

 

			
	
			
				 18.12
			Withholding. To the extent required by applicable Federal, state or local law, a Participant must make arrangements satisfactory to the Company for the payment of any withholding or similar tax obligations that arise in connection with the Plan.

			
	
			
				 18.13
			Severability.  If any provision of the Plan shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction.

			
	
			
				 18.14
			Headings. The headings of sections herein are included solely for convenience and shall not affect the meaning of any of the provisions of the Plan.

		 

		

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