Document:

Exhibit

Exhibit 10.1

LIMITED WAIVER AND ELEVENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT 
THIS LIMITED WAIVER AND ELEVENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) is entered into as of October 26, 2016 by and among VANGUARD NATURAL GAS, LLC, a Kentucky limited liability company (the “Borrower”), as the Borrower under and as defined in the Credit Agreement (defined below), CITIBANK, N.A., in its capacities as the Administrative Agent (under and as defined in such Credit Agreement and Issuing Bank (under and as defined in such Credit Agreement), and each Lender (under and as defined in such Credit Agreement) appearing on the signature pages hereto (such Lenders, the “Consenting Lenders”). 
R E C I T A L S
A.    Reference is hereby made to (i) that certain Third Amended and Restated Credit Agreement dated as of September 30, 2011 (as in effect immediately prior to the effectiveness of this Agreement, the “Original Credit Agreement” and, as otherwise amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; terms used herein but not otherwise defined having the meanings assign to them therein), by and among Vanguard Natural Gas, as the Borrower, CITIBANK, N.A., in its respective capacities as the Administrative Agent and Issuing Bank, and the Lenders party thereto from time to time and (ii) that certain Limited Waiver to Third Amended and Restated Credit Agreement (the “Waiver”), dated as of September 30, 2016 by and among the Borrower, Citibank, N.A, in its respective capacities as the Administrative Agent and Issuing Bank and each Lender signatory thereto (the “Waiver Consenting Lenders”).
B.     Pursuant to the Waiver, the Borrower requested that the Lenders waive the occurrence of the Specified Defaults (as defined in the Waiver) and the Administrative Agent and the Waiver Consenting Lenders agreed to waive such Specified Defaults upon the terms and conditions described in the Waiver.  
C.    In connection with the Waiver, the Parent informed the Administrative Agent, the Lenders and the Issuing Bank of its election to pay the interest payment due and payable on October 1, 2016 in respect of, and as required by the terms and provisions of the Parent’s 7.875% Senior Notes due 2020 (such Senior Notes, as in effect on the date hereof, the “2020 Notes” and such required payment, the “October 2016 Interest Payment”) during the 30-day grace period provided for payment thereof in section 12 of the Subject Notes, which election resulted in an automatic Event of Default under Section 10.01(f) of the Credit Agreement and Default under Section 10.01(g) of the Credit Agreement as of October 1, 2016 (such Default and Event of Default are referred to herein, collectively, as the “Existing Events of Default”).
D.    Section 10.01(s) of the Credit Agreement provides that an Event of Default shall occur and be continuing if any Loan Party makes any payment in respect of any Senior Notes or Second Lien Debt when Borrower’s Liquidity (giving pro forma effect to such payment) is less than $50 million.
E.    Parent’s (i) 2020 Notes require the payment of the October 2016 Interest Payment and (ii) 8.375% Senior Notes due 2019 (such Senior Notes, as in effect on the date hereof, the “2019 Notes” and, together with the 2020 Notes, the “Subject Notes”) require a scheduled payment of interest on December 1, 2016 (the “December 2016 Interest Payment” and, together with the October 2016 Interest Payment, the “Subject Interest Payments”).
F.    Borrower informed the Agent and the Lenders that the Borrower will be unable to maintain Liquidity in excess of $50 million, as required by Section 10.01(s) of the Credit Agreement, giving pro forma effect to the Subject Interest Payments, which failure to maintain Liquidity, upon the payment of the Subject Interest Payments, will result in an Event of Default or Events of Default under Section 10.01(s) of the Credit Agreement (any such Event of Default, a “Prospective Event of Default” and, collectively, the “Prospective Events of Default” and, together with the Existing Events of Default, the “Subject Defaults”).
G.    The Borrower requests that the Lenders waive the Subject Defaults.
H.    The Administrative Agent informed the Borrower that, in respect the Scheduled Redetermination under, and in accordance with, Section 2.07(b) of the Credit Agreement relating to the Reserve Report dated June 30, 2016, (i) on October 18, 2016, the Administrative Agent delivered its proposal to the Borrower and the Lenders to decrease the Borrowing Base to $1,100,000,000, to be effective (subject to the approval of the Required Lenders)  on November 3, 2016 and (ii) to the extent the Borrowing Base is decreased (whether to $1,100,000,000 or any other number lower than the Borrowing Base in effect on the date hereof, as approved by the Required Lenders) as described in clause (i), such decrease shall result in a Borrowing Base Deficiency.  Borrower informed the Administrative Agent that it intends, pursuant to the terms of Section 3.04(c)(ii) of the Credit Agreement, to make principal prepayments in an aggregate amount equal to such Borrowing Base Deficiency in six equal monthly installments, with the first such estimated installment to be prepaid as a condition precedent  to this Agreement.
I.    The Borrower further informed the Agent, the Issuing Bank and the Lenders that the Borrower desires to amend the Original Credit Agreement and amend, restate and terminate the Waiver as more specifically set forth herein.
J.    The Issuing Bank, and Consenting Lenders, which Consenting Lenders constitute the Required Lenders under the Credit Agreement, agree, subject in all respects to the terms and conditions set forth herein, to a limited waiver of the Subject Defaults, the amendment, restatement and termination of the Waiver and the amendments to the Original Credit Agreement, in each case as more specifically set forth herein.
NOW, THEREFORE, in consideration of these premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.Limited Waiver.
(a)    Subject in all respects to the terms and conditions set forth in this section 1(a) and the other terms and conditions of this Agreement, the Issuing Bank and the Consenting Lenders hereby waive the Existing Events of Default; provided that the limited waiver in this section 1(a) shall be void, ab initio, (i) if the Parent does not pay, or cause the payment of, the October 2016 Interest Payment on or prior to October 31, 2016 or (ii) prior to the payment of the October 2016 Interest Payment, if any Default or Event of Default (other than the Subject Defaults) has occurred and is continuing.
(b)    Subject in all respects to the terms and conditions set forth in this section 1(b) and the other terms and conditions of this Agreement, the Issuing Bank and the Consenting Lenders hereby waive the Prospective Events of Default; provided that the limited waiver in this section 1(b) shall be void, ab initio, if (i) (A) the Parent does not pay, or cause the payment of, the October 2016 Interest Payment on or prior to October 31, 2016 or (B) the Parent does not pay, or cause the payment of, the December 2016 Interest Payment on or prior to December 1, 2016 or (ii) at any time prior to the payment of the October 2016 Interest Payment and the December 2016 Interest Payment, any Default or Event of Default (other than the Subject Defaults) has occurred and is continuing.
Except as expressly set forth above in this section 1, nothing herein is intended to affect the continuing obligations of the Loan Parties to comply with, or the continuing rights of the Lenders, the Issuing Bank and the Administrative Agent with respect to, any provision of the Credit Agreement and/or any other Loan Documents.
Section 2.    Amendment to Original Credit Agreement. Subject to the satisfaction of the conditions set forth in section 5 hereof, effective on and as of the date hereof:
(a)    Section 1.02 of the Original Credit Agreement shall be amended by adding the following definitions in alphabetical order thereto:
“Account Control Agreement” shall mean, in respect of any Deposit Account, securities account and commodities account, any agreement which is effective to grant to the Administrative Agent “control” (as defined in the Uniform Commercial Code, as in effect in the jurisdiction to which any such account is subject) over any such account, executed and delivered by, inter alios, the institution maintaining such account, in each case, in form and substance reasonably acceptable to the Administrative Agent.  
“Budget” means a 13-week cash flow report forecasting the Borrower’s budget that was initially delivered to the Administrative Agent and the Lenders on September 30, 2016 (as supplemented on a rolling 13-week basis from time to time), in form and substance satisfactory to the Administrative Agent.
“Deposit Account” has the meaning assigned to such term in the Security Agreements.
“Eleventh Amendment” means that certain Limited Waiver and Eleventh Amendment to Third Amended and Restated Credit Agreement, dated as of October 26, 2016, by and among the Borrower, the Administrative Agent, the Issuing Bank and the Lenders party thereto.
“Eleventh Amendment Effective Date” means October 26, 2016.
“Excluded Property” has the meaning assigned to such term in the Security Agreements.
“Liquidate” or “Liquidation” means, with respect to any Swap Agreement, (a) the sale, assignment, novation, unwind or termination (whether upon the maturity thereof or otherwise) of all or any part of such Swap Agreement (including, without limitation, any transaction thereunder) or (b) the creation of an offsetting position against all or any part of such Swap Agreement.
“Midstream Assets” means any Property (including, without limitation, contracts, rights of way, easements, surface leases, surface use agreements, permits, pipelines, flow lines, meters, facilities, tank batteries and electrical generation sources) comprising the business of (a) processing, gathering, storing, transporting, treating and/or marketing of Hydrocarbons or (b) processing, gathering, storing, transporting, treating and/or disposal of fresh or produced water; provided that the foregoing shall exclude any of the Borrower’s and its Subsidiaries’ Property, determined as of the Eleventh Amendment Effective Date, located in the State of Alabama, to the extent that, and for so long as, the grant or perfection of a security interest therein would result in materially adverse tax consequences, solely to the extent such tax consequences have a disproportionate burden or cost to the benefit accruing to the Secured Parties.
“Net Cash Proceeds” means with respect to (x) any sale, assignment, farm-out, conveyance, transfer or other disposition or casualty event or (y) the Liquidation, close-out or other similar action in respect of any transaction arising under any Swap Agreement, the cash proceeds (including cash proceeds subsequently received (as and when received) in respect of noncash consideration initially received), net of (i) selling expenses (including reasonable broker’s fees or commissions, legal fees, transfer and similar taxes and the Borrower’s good faith estimate of income taxes paid or payable in connection with such sale) and (ii) amounts provided as a reserve, in accordance with GAAP, against any liabilities under any indemnification obligations or purchase price adjustment associated with such sale, assignment, farm-out, conveyance, transfer or other disposition or casualty event (provided that, to the extent and at the time any such amounts are released from such reserve, such amounts shall constitute Net Cash Proceeds), which shall, in each case, be reasonably acceptable to the Administrative Agent.
(b)    Section 3.04(c) of the Original Credit Agreement is hereby amended and restated as follows:
“(c) Mandatory Prepayments.
(i) If, after giving effect to any termination or reduction of the Aggregate Commitments pursuant to Section 2.06(b) or for any other reason not otherwise described in and cured in accordance with clause (ii) below, the total Revolving Credit Exposures exceeds the Aggregate Commitments, then the Borrower shall (A) prepay the Borrowings on the date of such termination or reduction in an aggregate principal amount equal to such excess, and (B) if any excess remains after prepaying all of the Borrowings as a result of an LC Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as cash collateral as provided in Section 2.08(j).

(ii) If, upon any redetermination of or adjustment to the amount of the Borrowing Base in accordance with Section 2.07(b), (c) or (d) or pursuant to Section 8.13(c), a Borrowing Base Deficiency exists, then the Borrower shall either prepay the Borrowings in an aggregate principal amount equal to such deficiency, or provide additional Mortgaged Property to secure Obligations having a Recognized Value equal to or greater than the amount of such deficiency (or the remaining balance of such deficiency after any prepayments), and if any deficiency remains after prepaying all of the Borrowings or providing additional Mortgaged Property as a result of any LC Exposure, the Borrower shall pay to the Administrative Agent on behalf of the Lenders an amount equal to such deficiency to be held as Cash Collateral as provided in Section 2.08(j). The Borrower shall be obligated to make any such principal prepayment or deposit of Cash Collateral in an amount equal to such deficiency within 30 days, or in six monthly installments beginning within 30 days, following its receipt of the New Borrowing Base Notice in accordance with Section 2.07(d) or the date the adjustment occurs, and/or to provide additional Mortgaged Property within 30 days following its receipt of such New Borrowing Base Notice or the date such adjustment occurs; provided that all payments and/or deposits required to be made pursuant to this Section 3.04(c)(ii) must be made on or prior to the Termination Date.

(iii) if any Loan Party receives any Net Cash Proceeds from the consummation, whether in a single transaction or a series of transactions, of any sale, assignment, farm-out, conveyance, transfer or other disposition of any Loan Party’s Property (other than the sale of Hydrocarbons in the ordinary course of business as permitted by Section 9.12), the Borrower shall repay an aggregate principal amount of outstanding Borrowings on a (pro rata basis) equal to 100% of such Net Cash Proceeds (less any prepayments from such Net Cash Proceeds made pursuant to clause (i) or clause (ii) of this Section 3.04(c)) within one (1) Business Day after any Loan Party’s receipt or realization of such Net Cash Proceeds.

(iv) Notwithstanding anything to the contrary in clause (iii) of this Section 3.04(c), if any Loan Party receives or realizes any Net Cash Proceeds from the monetization, Liquidation, close-out or other similar equivalent action taken by any Loan Party in respect of any transaction arising under any Swap Agreement to which any Loan Party is a party, the Borrower shall repay an aggregate principal amount of outstanding Borrowings (on a pro rata basis) equal to 100% of such Net Cash Proceeds (without giving effect to any voluntary election, or action, directly or indirectly, having the same effect as a voluntary election, of a Loan Party (other than an election to Liquidate the subject hedge transaction)) to net or set-off amounts against such Net Cash Proceeds, less any prepayments from such Net Cash Proceeds made pursuant to clause (i) or clause (ii) of this Section 3.04(c).

(v) Upon incurrence of any Second Lien Debt, the Borrower shall prepay the Borrowings on the date of such incurrence in an aggregate principal amount equal to the net cash proceeds (after ordinary and customary direct costs incurred in connection with such Second Lien Debt incurrence) received by Borrower.

(vi) Each prepayment of Borrowings pursuant to this Section 3.04(c) shall be applied, first, ratably to any ABR Borrowings then outstanding, and, second, to any Eurodollar Borrowings then outstanding, and if more than one Eurodollar Borrowing is then outstanding, to each such Eurodollar Borrowing in order of priority beginning with the Eurodollar Borrowing with the least number of days remaining in the Interest Period applicable thereto and ending with the Eurodollar Borrowing with the most number of days remaining in the Interest Period applicable thereto. 

(vii) Each prepayment of Borrowings pursuant to this Section 3.04(c) shall be applied ratably to the Loans included in the prepaid Borrowings. Prepayments pursuant to this Section 3.04(c) shall be accompanied by accrued interest to the extent required by Section 3.02.  Notwithstanding anything to the contrary herein, any prepayment pursuant to clauses (iii) and (iv) of this Section 3.04 shall first be applied to any Borrowing Base Deficiency outstanding as of the date of such receipt (including any installments in respect thereof in direct order of due date).”
    
(c)    Section 7.16 of the Original Credit Agreement is hereby amended by adding the following clause (f) thereto:
“(f) Each Loan Party has good and defensible title to its Midstream Assets free and clear of all Liens except Liens permitted by Section 9.03.”
(d)    Section 7.17 of the Original Credit Agreement is hereby amended by amending and restating the last sentence of Section 7.17 of the Original Credit Agreement in its entirety as follows:
“All pipelines, wells, gas processing plants, platforms and other material improvements, fixtures, equipment and all other Midstream Assets owned in whole or in part by the Borrower or any of the Subsidiaries that are necessary to conduct normal operations are being maintained in a state adequate to conduct normal operations, and with respect to such of the foregoing which are operated by the Borrower or any of the Subsidiaries, in a manner consistent with the Borrower’s or the Subsidiaries’ past practices (other than those the failure of which to maintain in accordance with this Section 7.17 could not reasonably be expected to have a Material Adverse Effect).”
(e)    Section 7.24 of the Original Credit Agreement is hereby amended by adding the following sentence immediately prior to the last sentence occurring in such Section:
“When the Mortgages covering the Midstream Assets are filed in the offices of the countries where such Midstream Assets are located, such Mortgages shall constitute a fully perfected Lien on, and security interest in, all right, title and interest of the Borrower and all of the Loan Parties’ Midstream Assets and the proceeds thereof, in each case prior and superior in right to any Person, other than with respect to the rights of persons pursuant to Liens expressly permitted by Section 9.03.”
(f)    Section 8.01 of the Original Credit Agreement is hereby amended by moving clause (t) therein to a new clause (u) therein and inserting the following as clause (t):
“(t)    Cash Flow Reporting:  No later than 5:00 p.m. (prevailing Eastern Time) on each Tuesday, commencing with the first such Tuesday to occur after the Eleventh Amendment Effective Date, the Borrower shall provide to the Administrative Agent and the Lenders a report showing actual receipts and disbursements through the prior week in the format of the Budget, and, promptly upon request of the Agent, an explanation of any variance to the Budget.”
(g)    Section 8.01(k) of the Original Credit Agreement is hereby amended and restated in its entirety as follows:
“(k) Notice of Sales of Oil and Gas Properties; Midstream Assets. In the event the Borrower or any Subsidiary intends to sell, transfer, assign or otherwise dispose of any Oil or Gas Properties, Midstream Assets or any Equity Interests in any Subsidiary in accordance with, and as permitted by, Section 9.12, prior written notice of such sale, transfer, assignment or other disposition, the price thereof and the anticipated date of closing and any other details thereof requested by the Administrative Agent or any Lender.”
(h)    Section 8.13 of the Original Credit Agreement is hereby amended by adding an additional clause (d) thereto as follows:
“(d)    Subject to Section 8.18, in respect of any Midstream Assets not covered by the title information delivered in clauses (a) through (c) above, the Borrower shall, and shall cause each of its Subsidiaries to, deliver to the Administrative Agent such information as the Administrative Agent shall deem reasonably necessary to verify the Loan Parties’ ownership of the easements, rights of way, fee-owned real estate and other real estate interests necessary to use, operate and maintain the Midstream Assets.”
(i)    Section 8.14(c) of the Original Credit Agreement is hereby amended and restated in its entirety as follows: 
“(c)(i)    If the Borrower elects to provide additional Mortgaged Properties in lieu of making any mandatory prepayment pursuant to Section 3.04(c), then the Borrower shall, and shall cause its Subsidiaries to, grant to the Administrative Agent as security for the Obligations a first-priority Lien interest (subject only to Excepted Liens) on additional Oil and Gas Properties not already subject to a Lien of the Security Instruments. All such Liens will be created and perfected by and in accordance with the provisions of Mortgages, deeds of trust, security agreements and financing statements or other Security Instruments, all in form and substance satisfactory to the Administrative Agent and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes. In order to comply with the foregoing, if any Subsidiary places such a Lien on its Oil and Gas Properties and such Subsidiary is not a Guarantor, then it shall become a Guarantor and comply with Section 8.14(b).
(ii)    Subject to Section 8.18, Borrower shall, and shall cause its Subsidiaries to, grant to the Administrative Agent as security for the Obligations a first-priority lien and security interest (subject only to Excepted Liens) on the Borrower’s and such Subsidiaries’ Midstream Assets which are not subject to a fully perfected Lien on, and security interest in favor of the Administrative Agent.  All such Liens will be created and perfected by and in accordance with the provisions of Mortgages, deeds of trust, security agreements and financing statements or other Security Instruments, all in form and substance satisfactory to the Administrative Agent and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes. In order to comply with the foregoing, if any Subsidiary places such a Lien on its Midstream Assets and such Subsidiary is not a Guarantor, then it shall become a Guarantor and comply with Section 8.14(b).  In connection with the foregoing, whenever requested by the Administrative Agent, the Borrower shall, and shall cause its Subsidiaries to, upon the request of the Administrative Agent, deliver opinions from legal counsel acceptable to the Administrative Agent, which opinions shall (a) confirm that such Midstream Assets are subject to Security Instruments securing the Obligations that constitute and create legal, valid and duly perfected Mortgage liens in such Midstream Assets and assignments of and security interests in the Hydrocarbons attributable to such Midstream Assets and the proceeds thereof, in each case subject only to Liens permitted by Section 9.03, and (b) cover such other  matters as the Administrative Agent may reasonably request.”
(j)    Article VIII of the Original Credit Agreement shall be amended to insert new Sections 8.17 and 8.18 immediately after Section 8.16 thereof to read in their respective entirety as follows:
“Section 8.17. Account Control Agreements.
(a)    Notwithstanding any term or provision to the contrary, the Borrower and each other Loan Party hereby agrees that it shall cause each of their respective Deposit Accounts (other than any Deposit Accounts constituting Excluded Property), commodities accounts and securities accounts to at all times be subject to an Account Control Agreement; provided that, in respect of any Deposit Accounts in existence on September 30, 2016 maintained by the Administrative Agent or any Lender, to the extent no Account Control Agreement is then effective for such Deposit Account, no Account Control Agreement shall be required to be effective in respect of such Deposit Account until the date on which the amount on deposit in such Deposit Accounts, at any time, exceeds $0.00.  
(b)    Prior to the establishment thereof, the Borrower and each Loan Party shall deliver 10 Business Days’ prior written notice to the Administrative Agent of any Deposit Account (other than a Deposit Account constituting Excluded Property, solely to the extent established or maintained for the purposes described in clause 4 of the definition thereof), commodities accounts and securities accounts opened or established by the Borrower and/or such other Loan Party.  
(c)    The Borrower and each other Loan Party hereby agree that neither Borrower nor any other Loan Party shall transfer or maintain (on deposit or otherwise), any cash, cash equivalents, Investment Property (as defined in the Security Agreements), or any other amount in any Deposit Account (other than in respect of any  Deposit Account constituting Excluded Property, solely to the extent such amounts are for the purposes described in clause 4 of the definition thereof), commodities accounts and securities account prior to compliance with the foregoing clauses (a) and (b).  
Section 8.18. Post-Eleventh Amendment Closing Covenants.  The Borrower and its Subsidiaries shall deliver (i) within 8 Business Days after the Eleventh Amendment Effective Date, Mortgages (or supplements thereto) covering all of the Borrower’s and its Subsidiaries’ Midstream Assets in Garfield County, Colorado (including all of such Midstream Assets relating to the Piceance Basin Gas Gathering System), and (ii) within 20 days after the Eleventh Amendment Effective Date, Mortgages (or supplements thereto) covering all of the Borrower’s and its Subsidiaries’ other Midstream Assets, in each case, together with the information required, or requested by the Administrative Agent, in accordance with Section 8.14.”
(k)    Section 9.12(d) of the Original Credit Agreement is hereby amended by adding the following proviso at the end of such clause, immediately before the “.” occurring therein:
“; provided any such sale, assignment, farm-out, conveyance, transfer or other disposition of Property pursuant to this clause (d) shall be for (i) fair market value, determined at the time of such sale, assignment, farm-out, conveyance, transfer or other disposition and reasonably acceptable to the Administrative Agent and (ii) for at least 90% cash consideration at the time of such sale, assignment, farm-out, conveyance, transfer or other disposition”
(l)    Article IX of the Original Credit Agreement shall be amended to insert the following as a new Section 9.20 to Article IX of the Original Credit Agreement:
“Section 9.20. Liquidation of Swap Agreements. Neither the Borrower nor any its Subsidiaries shall Liquidate any Swap Agreement (including, without limitation, any transaction thereunder); provided that the foregoing shall not prohibit the Liquidation of Swap Agreements (including, without limitation, any transactions thereunder) to the extent the Net Cash Proceeds of any such Liquidation are applied to the Borrowings as required by Section 3.04(c)(iv); provided further that nothing in this Section 9.20 shall affect the Borrower’s obligations under Section 2.07(e) and any reduction of the Borrowing Base and Commitments required thereunder in connection with any such Liquidation.”
(m)    Section 10.01 of the Original Credit Agreement shall be amended by amending and restating clause (d) therein as follows: 
“(d)    the Parent, the Borrower or any Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in  Section 2.12(a)(i)(B), Section 8.01(j), Section 8.01(k), Section 8.01(m), Section 8.01(p), Section 8.01(t), Section 8.02, Section 8.03, Section 8.13, Section 8.14, Section 8.15, Section 8.17, Section 8.18 or in ARTICLE IX; provided, that an Event of Default under clause (a) of Section 9.18 shall not be deemed to have occurred unless the breach of such provision has continued unremedied for a period of 10 days after its occurrence.”
Section 3.    Monetization; Liquidation of Certain Swap Agreement Transactions.  The Loan Parties hereby agree, on a commercially reasonable efforts basis,  on or prior to the date that is 5 Business Days after the date hereof, to Liquidate Swap Agreement transactions to the reasonable satisfaction of the Administrative Agent such that the Borrower shall have sufficient funds, giving pro forma effect to the payments required to be made by Borrower as a pre-condition to this Agreement, to pay the October 2016 Interest Payment and the December 2016 Interest Payment, in each case, as and when due.  The Borrower further agrees to repay the Borrowings as required by Section 3.04(c)(iv) of the Credit Agreement.  Notwithstanding the provisions of Section 10.01 of the Credit Agreement, the Loan Parties agree that any failure to comply with the requirements in this section 3 shall be deemed to be an Event of Default under the Loan Documents.
Section 4.    Conditions Precedent. This Agreement shall become effective upon the satisfaction (as determined by the Administrative Agent in its sole discretion) of each of the following:
(a)    the Administrative Agent shall be in receipt of this Agreement, duly executed and delivered by the Administrative Agent, the Required Lenders and each Loan Party;
(b)    the Administrative Agent shall be in receipt of payment in respect of all accrued and unpaid out-of-pocket fees and expenses (including reasonable attorneys' fees and expenses) incurred by Administrative Agent and/or its Affiliates, as required by the terms of Section 12.03 of the Credit Agreement; 
(c)    the Borrower shall pay, and the Administrative Agent, for the pro rata account of the Lenders, shall be in receipt of, funds sufficient to pay (i) all outstanding Borrowing Base Deficiency outstanding as of the date hereof plus (ii) $37,500,000, which $37,500,000 will be applied to any Borrowing Base Deficiency installments required as a result of the Scheduled Redetermination of the Borrowing Base to be effective during the month of November, 2016, in direct order;
(d)    the Administrative Agent shall be in receipt of a certificate of a Responsible Officer of the Borrower and each other Loan Party certifying that each of the representations and warranties of the Borrower and such other Loan Party set forth in the Credit Agreement and the other Loan Documents shall be true and correct in all material respects (except (x) that any representation or warranty that is qualified as to materiality or any a Material Adverse Effect clause shall be true and correct in all respects and (y) for the failure of the representations and warranties in Section 7.04(b)(i), Section 7.07(b), Section 7.07(c) and Section 7.22 of the Credit Agreement to be true and correct in all material respects as of the date of such certification solely as result of the existence of the Subject Defaults) with the same force and effect as though such representations and warranties have been made on and as of the date hereof except to the extent such representations and warranties expressly relate to an earlier date, such representations and warranties shall be true and correct in all material respects (except that any representation or warranty that is qualified as to materiality or any a Material Adverse Effect clause shall be true and correct in all respects) as of such earlier date; and
(e)    subject to the Subject Defaults, no Default or Event of Default exists or will exist as a result of the execution of this Agreement.
Section 5.    Certain Representations.  Each Loan Party hereby represents and warrants that, as of the date hereof: (a) such Loan Party has full power and authority to execute this Agreement and this Agreement shall constitute the legal, valid and binding obligation of such Loan Party enforceable in accordance with their terms, except as enforceability may be limited by general principles of equity and applicable bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting the enforcement of creditors' rights generally; and (b) no authorization, approval, consent or other action by, notice to, or filing with, any governmental authority or other Person is required for the execution, delivery and performance by such Loan Party with the terms and provisions of this Agreement.  In addition, each of the Loan Parties hereby represents and warrants, as of the date hereof, that each of the representations and warranties of such Loan Party set forth in the Credit Agreement and the other Loan Documents is true and correct in all material respects (except (x) that any representation or warranty that is qualified as to materiality or any a Material Adverse Effect clause shall be true and correct in all respects and (y) for the failure of the representations and warranties in Section 7.04(b)(i), Section 7.07(b), Section 7.07(c) and Section 7.22 of the Credit Agreement to be true and correct in all material respects solely as result of the existence of the Subject Defaults) with the same force and effect as though such representations and warranties have been made on and as of the date hereof except to the extent such representations and warranties expressly relate to an earlier date, such representations and warranties shall be true and correct in all material respects (except that any representation or warranty that is qualified as to materiality or any a Material Adverse Effect clause shall be true and correct in all respects) as of such earlier date.
Section 6.    Ratification of Liability; Release; Limited Waiver, etc.
(a)    Each of the Loan Parties hereby ratifies and affirms all of its obligations under each Loan Documents to which it is a party in respect of  payment, performance, indemnification or otherwise including, without limitation, guarantees of such obligations, and hereby ratifies and affirms its grant of liens on, and/or security interests in, their properties pursuant to such Loan Documents as security for the Obligations and confirms and agrees that such liens and security interests secure all of the Obligations, including any additional Obligations hereafter arising or incurred pursuant to or in connection with this Agreement, the Credit Agreement and/or any other Loan Document.  Each Loan Party acknowledges that on the date hereof all outstanding Obligations are payable in accordance with their terms, and such Loan Party waives any defense, offset, counterclaim or recoupment with respect thereto.
(b)    Each of the Loan Parties (on behalf of itself and its Affiliates) for itself and for its successors in title, legal representatives and assignees and, to the extent the same is claimed by right of, through or under any of the Loan Parties, for its past, present and future employees, agents, representatives, officers, directors, shareholders, and trustees (each, a “Releasing Party” and collectively, the “Releasing Parties”), does hereby remise, release and discharge, and shall be deemed to have forever remised, released and discharged, the Administrative Agent, the Lenders and each of the other Secured Parties in their respective capacities as such under the Loan Documents, and the Administrative Agent’s, each Lender’s and each other Secured Party’s respective successors-in-title, legal representatives and assignees, past, present and future officers, directors, affiliates, shareholders, trustees, agents, employees, consultants, experts, advisors, attorneys and other professionals and all other persons and entities to whom the Administrative Agent, each Lender each of the other Secured Parties or any of their respective successors-in-title, legal representatives and assignees, past, present and future officers, directors, affiliates, shareholders, trustees, agents, employees, consultants, experts, advisors, attorneys and other professionals would be liable if such persons or entities were found to be liable to any Releasing Party or any of them (collectively, hereinafter the “Releasees”), from any and all manner of action and actions, cause and causes of action, claims, charges, demands, counterclaims, crossclaims, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, rights of setoff and recoupment, controversies, damages, judgments, expenses, executions, liens, claims of liens, claims of costs, penalties, attorneys’ fees, or any other compensation, recovery or relief on account of any liability, obligation, demand or cause of action of whatever nature, whether in law, equity or otherwise (including, without limitation, any claims relating to (i) the making or administration of the Loans, including, without limitation, any such claims and defenses based on fraud, mistake, duress, usury or misrepresentation, or any other claim based on so-called “lender liability” theories, (ii) any covenants, agreements, duties or obligations set forth in the Loan Documents, (iii) increased financing costs, interest or other carrying costs, (iv) penalties, (v) lost profits or loss of business opportunity, (vi) legal, accounting and other administrative or professional fees and expenses and incidental, consequential and punitive damages payable to third parties, (vii) damages to business reputation, or (viii) any claims arising under 11 U.S.C. §§ 541-550 or any claims for avoidance or recovery under any other federal, state or foreign law equivalent), whether known or unknown, fixed or contingent, joint and/or several, secured or unsecured, due or not due, primary or secondary, liquidated or unliquidated, contractual or tortious, direct, indirect, or derivative, asserted or unasserted, foreseen or unforeseen, suspected or unsuspected, now existing, heretofore existing or which may heretofore accrue against any of the Releasees, and which are, in each case, based on any act, fact, event or omission or other matter, cause or thing occurring at any time prior to or on the date hereof in any way, directly or indirectly arising out of, connected with or relating to the Credit Agreement and/or any other Loan Document and the transactions contemplated thereby, and all other agreements, certificates, instruments and other documents and statements (whether written or oral) related to any of the foregoing (each, a “Claim” and collectively, the “Claims”).  Each Releasing Party further stipulates and agrees with respect to all Claims, that it hereby waives, to the fullest extent permitted by applicable law, any and all provisions, rights, and benefits conferred by any applicable U.S. federal or state law, or any principle of common law, that would otherwise limit a release or discharge of any unknown Claims pursuant to this section 6(b).
(c)    Each of the Borrower and other Loan Parties, 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 Releasee that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Releasee on the basis of any Claim released, remised and discharged by the Borrower or any other Loan Party pursuant to section 6(b) hereof.  
(d)    If the Borrower, any other Loan Party or any of its successors, assigns or other legal representatives violates the foregoing covenant, the Borrower and other Loan Parties, each for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all attorneys' fees and costs incurred by any Releasee as a result of such violation.
Section 7.    Limitation on Agreements; Effect on Waiver. Except as expressly provided in section 1 and section 2 hereof, this Agreement shall not be deemed (a) to be a consent under or a waiver of or an amendment to any other term or condition in the Credit Agreement or any of the Loan Documents, or (b) to prejudice any right or rights which Administrative Agent, the Issuing Bank and/or any Lender now has or may have in the future under or in connection with the Credit Agreement and the Loan Documents.  All terms and provisions of the Loan Documents remain in full force and effect, except to the extent expressly modified by this Agreement.  This Agreement shall constitute a Loan Document for all purposes in the Credit Agreement and the other Loan Documents.
The parties hereto agree that, notwithstanding anything to the contrary herein or in the Waiver to the contrary, effective as of the date hereof, the Waiver is superseded in all respects by this Agreement, terminated and of no further force or effect.
Section 8.    Counterparts; Integration; Effectiveness; Electronic Signatures.  The provisions of Section 12.06 of the Credit Agreement are incorporated herein by reference, mutatis mutandis.
Section 9.    GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS; WAIVER OF JURY TRIAL.
(a)    Governing Law.  The provisions of Section 12.09(a) of the Credit Agreement are incorporated herein by reference, mutatis mutandis.
(b)    Submission to Jurisdiction.  The provisions of Section 12.09(b) of the Credit Agreement are incorporated herein by reference, mutatis mutandis.
(c)    Waiver of Venue.  The provisions of Section 12.09(c) of the Credit Agreement are incorporated herein by reference, mutatis mutandis.
(d)    Service of Process.  The provisions of Section 12.09(d) of the Credit Agreement are incorporated herein by reference, mutatis mutandis.
(e)    WAIVER OF JURY TRIAL.  THE PROVISIONS OF SECTION 12.09(e) OF THE CREDIT AGREEMENT ARE INCORPORATED HEREIN BY REFERENCE, MUTATIS MUTANDIS.
[This space is left intentionally blank.  Signature pages follow.]

The parties hereto have caused this Agreement to be duly executed as of the day and year first above written.
BORROWER:

VANGUARD NATURAL GAS, LLC 

By:/s/ Richard Robert                    
Richard Robert
Executive Vice President  
    and Chief Financial Officer

VANGUARD NATURAL RESOURCES, LLC

By:/s/ Richard Robert                    
Richard Robert, Executive Vice President
and Chief Financial Officer

VNR HOLDINGS, LLC

By: Vanguard Natural Gas, LLC
       Sole Member

       By: /s/ Richard Robert                
              Richard Robert, Executive Vice President
              and Chief Financial Officer

VANGUARD OPERATING, LLC

By: Vanguard Natural Gas, LLC
       Sole Member

       By: /s/ Richard Robert                
              Richard Robert, Executive Vice President
              and Chief Financial Officer

ENCORE CLEAR FORK PIPELINE LLC

By:/s/ Richard Robert                    
        Richard Robert, Executive Vice President 
        and Chief Financial Officer

EAGLE ROCK ACQUISITION PARTNERSHIP, L.P.

By:  EAGLE ROCK UPSTREAM DEVOLOPMENT COMPANY, INC., 
its general partner

By:/s/ Richard Robert                
Richard Robert
Executive Vice President, Chief Financial Officer and Secretary 

EAGLE ROCK ACQUISITION PARTNERSHIP II, L.P.

By:  EAGLE ROCK UPSTREAM DEVOLOPMENT COMPANY II, INC., 
its general partner

By:/s/ Richard Robert                
Richard Robert
Executive Vice President, Chief Financial Officer and Secretary 

EAGLE ROCK ENERGY ACQUISITION CO., INC.

By:/s/ Richard Robert                    
Richard Robert
Executive Vice President, Chief Financial Officer and Secretary 

EAGLE ROCK ENERGY ACQUISITION CO. II, INC.

By:/s/ Richard Robert                    
Richard Robert
Executive Vice President, Chief Financial Officer and Secretary 

EAGLE ROCK UPSTREAM DEVELOPMENT COMPANY, INC.

By:/s/ Richard Robert                    
Richard Robert
Executive Vice President, Chief Financial Officer and Secretary 

EAGLE ROCK UPSTREAM DEVELOPMENT COMPANY II, INC.

By:/s/ Richard Robert                    
Richard Robert
Executive Vice President, Chief Financial Officer and Secretary 

ESCAMBIA ASSET CO. LLC

By:/s/ Richard Robert                    
Richard Robert
Executive Vice President, Chief Financial Officer and Secretary 

ESCAMBIA OPERATING CO. LLC

By:/s/ Richard Robert                    
Richard Robert
Executive Vice President, Chief Financial Officer and Secretary 

VNR FINANCE CORP.
By:/s/ Richard Robert     
    Richard Robert
Executive Vice President and Chief Financial Officer
ADMINISTRATIVE AGENT:

CITIBANK, N.A. 
as Administrative Agent and Issuing Bank

By:/s/ Jeff Ard                        
Name:    Jeff Ard                
Title:    Vice President                

LENDERS:

CITIBANK, N.A.,
as a Lender

By:/s/ Jeff Ard                        
Name:    Jeff Ard                
Title:    Vice President                

WELLS FARGO BANK, N.A.,
as a Lender

By:/s/David Maynard                
Name:    David Maynard                    
Title:    Senior Vice President                

BANK OF AMERICA, N.A.,
as a Lender

By:/s/ Michael Clayborne                
Name:    Michael Clayborne                
Title:    Director                    

BANK OF MONTREAL,
as a Lender

By:/s/James V. Ducote                    
Name:    James V. Ducote                
Title:    Managing Director                

BARCLAYS BANK PLC, 
as a Lender

By:/s/Sean Duggan                    
Name:    Sean Duggan                    
Title:    Assistant Vice President                

CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK BRANCH,
as a Lender

By:/s/Daria Mahoney                    
Name:    Daria Mahoney                    
Title:    Authorized Signatory                

By:/s/Trudy Nelson                    
Name:    Trudy Nelson                    
Title:    Authorized Signatory                
CREDIT AGRICOLE CORPORATE & INVESTMENT BANK,
as a Lender

By:/s/Ron Spitzer                    
Name:    Ron Spitzer                    
Title:    Managing Director                

By:/s/Kathleen Sweeney                
Name:    Kathleen Sweeney                
Title:    Managing Director                

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
as a Lender

By:/s/Bryan J. Matthews                
Name:    Bryan J. Matthews                
Title:    Authorized Signatory                

By:/s/Julia Bykhovskaia                    
Name:    Julia Bykhovskaia                
Title:    Authorized Signatory                

DEUTSCHE BANK AG NEW YORK BRANCH,
as a Lender

By:/s/Dusan Lazarov                    
Name:    Dusan Lazarov                    
Title:    Director                    

By:/s/Marcus M. Tarkington                
Name:    Marcus M. Tarkington                
Title:    Director                    

FIFTH THIRD BANK,
as a Lender

By:/s/Justin Bellamy                    
Name:    Justin Bellamy                    
Title:    Director                    

ING CAPITAL LLC,
as a Lender

By:/s/Juli Bieser                    
Name:    Juli Bieser                    
Title:    Managing Director                

By:/s/Josh Strong                    
Name:    Josh Strong                    
Title:    Director                    
JPMORGAN CHASE BANK, N.A.,
as a Lender

By:/s/Darren Vanek                    
Name:    Darren Vanek                    
Title:    Executive Director                

NATIXIS, NEW YORK BRANCH,
as a Lender

By:/s/Brice Le Foyer                    
Name:    Brice Le Foyer                    
Title:    Director                    

By:/s/Ajay Prakash                    
Name:    Ajay Prakash                    
Title:    Vice President                    

PNC BANK NATIONAL ASSOCIATION,
as a Lender

By:/s/John Ataman                    
Name:    John Ataman                    
Title:    SVP                        

SUMITOMO MITSUI BANKING CORPORATION,
as a Lender

By:/s/Ryo Suzuki                    
Name:    Ryo Suzuki                    
Title:    General Manager                

THE BANK OF NOVA SCOTIA,
as a Lender

By:/s/Marc Graham                    
Name:    Marc Graham                    
Title:    Director                    

CITIZENS BANK, N.A.,
as a Lender

By:/s/Gregory Clark                    
Name:    Gregory Clark                    
Title:    EVP/TL                    

BRANCH BANKING AND TRUST COMPANY,
as a Lender

By:/s/Parul June                    
Name:    Parul June                    
Title:    Senior Vice President                

CAPITAL ONE, NATIONAL ASSOCIATION,
as a Lender

By:/s/Matthew Brice                    
Name:    Matthew Brice                    
Title:    Vice President                    

COMMONWEALTH BANK OF AUSTRALIA,
as a Lender

By:/s/Sanjay Remond                    
Name:    Sanjay Remond                    
Title:    Director                    

MORGAN STANLEY BANK, N.A.,
as a Lender

By:/s/Kevin Newman                    
Name:    Kevin Newman                    
Title:    Authorized Signatory                

ASSOCIATED BANK, N.A.,
as a Lender

By:/s/Farhan Iqbal                    
Name:    Farhan Iqbal                    
Title:    Senior Vice President                

WHITNEY BANK,
as a Lender

By:/s/Liana Tchernysheva                
Name:    Liana Tchernysheva                
Title:    Senior Vice President                

THE HUNTINGTON NATIONAL BANK,
as a Lender

By:/s/Christopher Renyi                    
Name:    Christopher Renyi                
Title:    Vice President                    

SUNTRUST BANK,
as a Lender

By:/s/Janet R. Naifel                    
Name:    Janet R. Naifel                    
Title:    Senior Vice President                

ABN AMRO CAPITAL USA LLC,
as a Lender

By:/s/Elizabeth Johnson                    
Name:    Elizabeth Johnson                
Title:    Director                    

By:/s/J.D. Kalverkamp                    
Name:    J.D. Kalverkamp                
Title:    Country ExecutiveExhibit 10.1 

 

GARMIN LTD.

 

EMPLOYEE STOCK PURCHASE PLAN

 

as Amended and Restated on October 21,
2016 

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	I.	Purpose and Effective Date	2
	 	 	 
	II.	Definitions	2
	 	 	 
	III.	Administration	5
	 	 	 
	IV.	Number of Shares	5
	 	 	 
	V.	Eligibility Requirements	6
	 	 	 
	VI.	Enrollment	7
	 	 	 
	VII.	Grant of Options on Enrollment	7
	 	 	 
	VIII.	Payroll Deductions	8
	 	 	 
	IX.	Purchase of Shares	9
	 	 	 
	X.	Withdrawal From the Plan; Termination of Employment; Leave of Absence; Death	11
	 	 	 
	XI.	Miscellaneous	13

 

    	 	1	 

     

    

 

GARMIN LTD.

EMPLOYEE STOCK PURCHASE PLAN

(as Amended and Restated on October 21, 2016)

 

I.           Purpose
and Effective Date

 

1.1           The
purpose of the Garmin Ltd. Employee Stock Purchase Plan is to provide an opportunity for eligible employees to acquire a proprietary
interest in Garmin Ltd. through accumulated payroll deductions. It is the intent of the Company to have the Plan qualify as an
"employee stock purchase plan" under Section 423 of the Code. The provisions of the Plan shall be construed to extend
and limit participation in a manner consistent with the requirements of Section 423 of the Code.

 

1.2           The
Plan was initially approved by the board of directors of Garmin Ltd., a company incorporated in the Cayman Islands (“Garmin
Cayman”), on October 20, 2000 and approved by Garmin Cayman’s stockholders on October 24, 2000. The Plan was amended
and restated as of January 1, 2010 and again as of June 27, 2010 following the re-domestication transaction on June 27, 2010 pursuant
to which the shares of Garmin Cayman were exchanged for shares of the Company and the Company became the public holding company
of Garmin Cayman and its subsidiaries. The Plan was amended and restated again on June 5, 2015 and on October 21, 2016. No option
shall be granted under the Plan after the date as of which the Plan is terminated by the Board in accordance with Section 11.7
of the Plan.

 

II.          Definitions

 

The following words and phrases, when used
in this Plan, unless their context clearly indicates otherwise, shall have the following respective meanings:

 

2.1           "Account"
means a recordkeeping account maintained for a Participant to which payroll deductions are credited in accordance with Article
VIII of the Plan.

 

2.2           "Administrator"
means the persons or committee appointed under Section 3.1 to administer the Plan.

 

2.3           "Article"
means an Article of this Plan.

 

2.4           "Accumulation
Period" means, as to the Company or a Participating Subsidiary, a period of six months commencing with the first regular payroll
period commencing on or after each successive January 1 and ending on each successive June 30 and a period of six months commencing
with the first regular payroll period commencing on or after each successive July 1 and ending on each successive December 31.
The Committee may modify (including increasing or decreasing the length of time covered) or suspend Accumulation Periods at any
time and from time to time.

 

    	 	2	 

     

    

 

2.5           "Base
Earnings" means base salary and wages payable by the Company or a Participating Subsidiary to an Eligible Employee, prior
to pre-tax deductions for contributions to qualified or non-qualified (under the Code) benefit plans or arrangements, and excluding
bonuses, incentives and overtime pay but including commissions.

 

2.6           "Board"
means the Board of Directors of the Company.

 

2.7           "Code"
means the Internal Revenue Code of 1986, as amended.

 

2.8           "Company"
means Garmin Ltd., a Swiss corporation.

 

2.9           "Cut-Off
Date" means the date established by the Administrator from time to time by which enrollment forms must be received with respect
to an Accumulation Period.

 

2.10         "Eligible
Employee" means an Employee, including an employee on an Authorized Leave of Absence (as defined in Section 10.3), eligible
to participate in the Plan in accordance with Article V.

 

2.11         "Employee"
means an individual who performs services for the Company or a Participating Subsidiary pursuant to an employment relationship
described in Treasury Regulations Section 31.3401(c)-1 or any successor provision, or an individual who would be performing such
services but for such individual’s Authorized Leave of Absence (as defined in Section 10.3).

 

2.12         "Enrollment
Date" means the first Trading Day of an Accumulation Period beginning on or after January 1, 2000.

 

2.13         "Exchange
Act" means the Securities Exchange Act of 1934.

 

2.14         "Fair
Market Value" means, as of any applicable date:

 

(a)          If
the security is listed on any established stock exchange or traded on the Nasdaq Global Select Market or the Nasdaq Global Market
(formerly the Nasdaq National Market), the closing price, regular way, of the security on such exchange, or if no such reported
sale of the security shall have occurred on such date, on the latest preceding date on which there was such a reported sale, in
all cases, as reported in The Wall Street Journal or such other source as the Board deems reliable.

 

(b)          If
the security is listed or traded on the Nasdaq Capital Market (formerly the Nasdaq SmallCap Market), the mean between the bid and
asked prices for the security on the date of determination, as reported in The Wall Street Journal or such other source as the
Board deems reliable. Unless otherwise provided by the Board, if there is no closing sales price (or closing bid if no sales were
reported) for the security on the date of determination, then the Fair Market Value shall be the mean between the bid and asked
prices for the security on the last preceding date for which such quotation exists.

 

    	 	3	 

     

    

 

(c)          In
the absence of such markets for the security, the value determined by the Board in good faith.

 

2.15         "Participant"
means an Eligible Employee who has enrolled in the Plan pursuant to Article VI. A Participant shall remain a Participant until
the applicable date set forth in Article X.

 

2.16         "Participating
Subsidiary" means a Subsidiary incorporated under the laws of any state in the United States, a territory of the United States,
Puerto Rico, or the District of Columbia, or such foreign Subsidiary approved under Section 3.3, which has adopted the Plan as
a Participating Subsidiary by action of its board of directors and which has been designated by the Board in accordance with Section
3.3 as covered by the Plan, subject to the requirements of Section 423 of the Code except as noted in Section 3.3.

 

2.17         "Plan"
means the Garmin Ltd. Employee Stock Purchase Plan, as amended and restated on October 21, 2016, as set forth herein and as from
time to time amended.

 

2.18         "Purchase
Date" means the specific Trading Day during an Accumulation Period on which Shares are purchased under the Plan in accordance
with Article IX. For each Accumulation Period, the Purchase Date shall be the last Trading Day occurring in such Accumulation Period.
The Administrator may, in its discretion, designate a different Purchase Date with respect to any Accumulation Period.

 

2.19         "Qualified
Military Leave” means an absence due to service in the uniformed services of the United States (as defined in Chapter 43
of Title 38 of the United States Code) by an individual employee of the Company or a Participating Subsidiary, provided the individual’s
rights to reemployment under the Uniformed Services Employment and Reemployment Rights Act of 1994 have not expired or terminated.

 

2.20         "Section"
means a section of this Plan, unless indicated otherwise.

 

2.21         "Securities
Act" means the Securities Act of 1933, as amended.

 

2.22         "Share"
means a share, CHF 0.10 par value, of Garmin Ltd.

 

2.23         "Subsidiary"
means any corporation in an unbroken chain of corporations beginning with the Company if, as of the applicable Enrollment Date,
each of the corporations other than the last corporation in the chain owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in the chain.

 

2.24         "Trading
Day" means a day the national exchange on which the Shares are listed for trading or, if not so listed, a day the New York
Stock Exchange is open for trading.

 

    	 	4	 

     

    

 

III.         Administration

 

3.1           Subject
to Section 11.7, the Plan shall be administered by the Board, or committee ("Committee") appointed by the Board. The
Committee shall consist of at least one Board member, but may additionally consist of individuals who are not members of the Board.
The Committee shall serve at the pleasure of the Board. If the Board does not so appoint a Committee, the Board shall administer
the Plan. Any references herein to "Administrator" are, except as the context requires otherwise, references to the Board
or the Committee, as applicable.

 

3.2           If
appointed under Section 3.1, the Committee may select one of its members as chairman and may appoint a secretary. The Committee
shall make such rules and regulations for the conduct of its business as it shall deem advisable; provided, however, that all determinations
of the Committee shall be made by a majority of its members.

 

3.3           The
Administrator shall have the power, in addition to the powers set forth elsewhere in the Plan, and subject to and within the limits
of the express provisions of the Plan, to construe and interpret the Plan and options granted under it; to establish, amend and
revoke rules and regulations for administration of the Plan; to determine all questions of policy and expediency that may arise
in the administration of the Plan; to allocate and delegate such of its powers as it deems desirable to facilitate the administration
and operation of the Plan; and, generally, to exercise such powers and perform such acts as it deems necessary or expedient to
promote the best interests of the Company. The Administrator's determinations as to the interpretation and operation of this Plan
shall be final and conclusive.

 

The Board may designate from time to time
which Subsidiaries of the Company shall be Participating Subsidiaries. Without amending the Plan, the Board may adopt special or
different rules for the operation of the Plan which allow employees of any foreign Subsidiary to participate in the purposes of
the Plan. In furtherance of such purposes, the Board may approve such modifications, procedures, rules or sub-plans as it deems
necessary or desirable, including those deemed necessary or desirable to comply with any foreign laws or to realize tax benefits
under foreign law. Any such different or special rules for employees of any foreign Subsidiary shall not be subject to Code Section
423 and for purposes of the Code shall be treated as separate and apart from the balance of the Plan.

 

3.4           This
Article III relating to the administration of the Plan may be amended by the Board from time to time as may be desirable to satisfy
any requirements of or under the federal securities and/or other applicable laws of the United States, or to obtain any exemption
under such laws.

 

IV.          Number
of Shares

 

4.1           Six
million (6,000,000) Shares are reserved for sales and authorized for issuance pursuant to the Plan. Shares sold under the Plan
may be newly-issued Shares, outstanding Shares reacquired in private transactions or open market purchases, or any combination
of the foregoing. If any option granted under the Plan shall for any reason terminate without having been exercised, the Shares
not purchased under such option shall again become available for the Plan.

 

    	 	5	 

     

    

 

4.2           In
the event of any reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, acquisition
of property or shares, separation, asset spin-off, stock rights offering, liquidation or other similar change in the capital structure
of the Company, the Board shall make such adjustment, if any, as it deems appropriate in the number, kind and purchase price of
the Shares available for purchase under the Plan. In the event that, at a time when options are outstanding hereunder, there occurs
a dissolution or liquidation of the Company, except pursuant to a transaction to which Section 424(a) of the Code applies, each
option to purchase Shares shall terminate, but the Participant holding such option shall have the right to exercise his or her
option prior to such termination of the option upon the dissolution or liquidation. The Company reserves the right to reduce the
number of Shares which Employees may purchase pursuant to their enrollment in the Plan.

 

V.          Eligibility Requirements

 

5.1           Except
as provided in Section 5.2, each individual who is an Eligible Employee of the Company or a Participating Subsidiary on the applicable
Cut-Off Date shall become eligible to participate in the Plan in accordance with Article VI as of the first Enrollment Date following
the date the individual becomes an Employee of the Company or a Participating Subsidiary, provided that the individual remains
an Eligible Employee on the first day of the Accumulation Period associated with such Enrollment Date. Participation in the Plan
is entirely voluntary.

 

5.2           Employees
meeting any of the following restrictions are not eligible to participate in the Plan:

 

(a) Employees who, immediately
upon enrollment in the Plan or upon grant of an Option would own directly or indirectly, or hold options or rights to acquire,
an aggregate of 5% or more of the total combined voting power or value of all outstanding shares of all classes of stock of the
Company or any Subsidiary (and for purposes of this paragraph, the rules of Code Section 424(d) shall apply, and stock which the
Employee may purchase under outstanding options shall be treated as stock owned by the Employee);

 

(b)          Employees
(other than individuals on Authorized Leave of Absence (as defined in Section 10.3)) who are customarily employed by the Company
or a Participating Subsidiary for not more than 20 hours per week; or

 

(c)          Employees (other than
individuals on Authorized Leave of Absence (as defined in Section 10.3)) who are customarily employed by the Company or a Participating
Subsidiary for not more than five (5) months in any calendar year.

 

5.3           The
Plan is intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and
all regulations and rules promulgated by the Securities and Exchange Commission thereunder. Notwithstanding anything herein to
the contrary, the Plan shall be administered, and the options shall be granted and may be exercised, only in such a manner as to
conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and the options granted hereunder
shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

 

    	 	6	 

     

    

 

VI.          Enrollment

 

6.1           Eligible
Employees will be automatically enrolled in the Plan on the first day of each Accumulation Period. Any Eligible Employee may consent
to enrollment in the Plan for an Accumulation Period by completing and signing an enrollment form (which authorizes payroll deductions
during such Accumulation Period in accordance with Section 8.1) and submitting such enrollment form to the Company or the Participating
Subsidiary on or before the Cut-Off Date specified by the Administrator. Payroll deductions pursuant to the enrollment form shall
be effective as of the first payroll period with a pay day after the Enrollment Date for the Accumulation Period to which the enrollment
form relates, and shall continue in effect until the earliest of:

 

(a)          the end of the last payroll
period with a payday in the Accumulation Period;

 

(b)          the
date during the Accumulation Period as of which the Employee elects to cease his or her enrollment in accordance with Section 8.3;
and

 

(c)          the
date during the Accumulation Period as of which the Employee withdraws from the Plan or has a termination of employment in accordance
with Article X.

 

VII.         Grant
of Options on Enrollment

 

7.1           The
automatic enrollment by an Eligible Employee in the Plan as of an Enrollment Date will constitute the grant as of such Enrollment
Date by the Company to such Participant of an option to purchase Shares from the Company pursuant to the Plan.

 

7.2           An
option granted to a Participant pursuant to this Plan shall expire, if not terminated earlier for any reason, on the earliest to
occur of: (a) the end of the Purchase Date with respect to the Accumulation Period in which such option was granted; (b) the
completion of the purchase of Shares under the option under Article IX; or (c) the date on which participation of such Participant
in the Plan terminates for any reason.

 

7.3           As
of each Enrollment Date, each Participant shall automatically be granted an option to purchase a maximum number of Shares, subject
to the terms of the Plan, equal to the quotient of $25,000 divided by the Fair Market Value
of a Share on the Enrollment Date.

 

7.4           Notwithstanding
any other provision of this Plan, no Employee may be granted an option which permits his or her rights to purchase Shares under
the Plan and any other Code Section 423 employee stock purchase plan of the Company or any of its Subsidiaries or parent companies
to accrue (when the option first becomes exercisable) at a rate which exceeds $25,000 of Fair Market Value of such Shares (determined
at the time such option is granted) for each calendar year in which such option is outstanding at any time. For purposes of administering
this accrual limitation, the Administrator shall limit purchases under the Plan as follows:

 

    	 	7	 

     

    

 

(a)          The
number of Shares that may be purchasable by an Employee during his or her first Accumulation Period during a calendar year may
not exceed a number of Shares determined by dividing $25,000 by the Fair Market Value of a Share on the Enrollment Date for that
Accumulation Period.

 

(b)          The
number of Shares that may be purchasable by an Employee during any subsequent Accumulation Period during the same calendar year
(if any) shall not exceed the number of Shares determined by performing the calculation below:

 

(i)          First,
the number of Shares purchased by the Employee during any previous Accumulation Period during the same calendar year shall be multiplied
by the Fair Market Value of a Share on the Enrollment Date of such previous Accumulation Period.

 

(ii)         Second,
the amount determined under (i) above shall be subtracted from $25,000.

 

(iii)        Third,
the amount determined under (ii) above shall be divided by the Fair Market Value of a Share on the Enrollment Date for such subsequent
Accumulation Period (for which the maximum number of Shares purchasable is being determined by this calculation) occurs. The quotient
thus obtained shall be the maximum number of Shares that may be purchased by any Employee for such subsequent Accumulation Period.

 

VIII.         Payroll
Deductions

 

8.1           An
Employee who files an enrollment form pursuant to Article VI shall elect and authorize in such form to have deductions made from
his or her pay on each payday he or she receives a paycheck during the Accumulation Period to which the enrollment form relates,
and he or she shall designate in such form the percentage (in whole percentages) of Base Earnings to be deducted each payday during
such Accumulation Period. The minimum an Employee may elect and authorize to have deducted is 1% of his or her Base Earnings paid
per pay period in such Accumulation Period, and the maximum is 10% of his or her Base Earnings paid per pay period in such Accumulation
Period (or such larger or smaller percentage as the Administrator may designate from time to time).

 

8.2           Except
as provided in the last paragraph of Section 6.1, deductions from a Participant’s Base Earnings shall commence upon the first
payday on or after the commencement of the Accumulation Period, and shall continue until the date on which such authorization ceases
to be effective in accordance with Article VI. The amount of each deduction made for a Participant shall be credited to the Participant’s
Account. All payroll deductions received or held by the Company or a Participating Subsidiary may be, but are not required to be,
used by the Company or Participating Subsidiary for any corporate purpose, and the Company or Participating Subsidiary shall not
be obligated to segregate such payroll deductions, but may do so at the discretion of the Board.

 

    	 	8	 

     

    

 

8.3           As
of the last day of any month during an Accumulation Period, a Participant may elect to cease (but not to increase or decrease)
payroll deductions made on his or her behalf for the remainder of such Accumulation Period by filing the applicable election with
the Company or Participating Subsidiary in such form and manner and at such time as may be permitted by the Administrator. A Participant
who has ceased payroll deductions may have the amount which was credited to his or her Account prior to such cessation applied
to the purchase of Shares as of the Purchase Date, in accordance with Section 9.1, and receive the balance of the Account with
respect to which the enrollment is ceased, if any, in cash. A Participant who has ceased payroll deductions may also voluntarily
withdraw from the Plan pursuant to Section 10.1. Any Participant who ceases payroll deductions for an Accumulation Period may re-enroll
in the Plan on the next subsequent Enrollment Date following the cessation in accordance with the provisions of Article VI. A Participant
who ceases to be employed by the Company or any Participating Subsidiary will cease to be a Participant in accordance with Section
10.2.

 

8.4           A
Participant may not make any separate or additional contributions to his Account under the Plan. Neither the Company nor any Participating
Subsidiary shall make separate or additional contributions to any Participant’s Account under the Plan.

 

IX.          Purchase
of Shares

 

9.1           Subject
to Section 9.2, any option held by the Participant which was granted under this Plan and which remains outstanding as of a Purchase
Date shall be deemed to have been exercised on such Purchase Date for the purchase of the number of whole Shares which the funds
accumulated in his or her Account as of the Purchase Date will purchase at the applicable purchase price (but not in excess of
the number of Shares for which options have been granted to the Participant pursuant to Section 7.3). No Shares will be purchased
on behalf of any Participant who fails to file an enrollment form authorizing payroll deductions for an Accumulation Period.

 

9.2           A
Participant who holds an outstanding option as of a Purchase Date shall not be deemed to have exercised such option if the Participant
elected not to exercise the option by withdrawing from the Plan in accordance with Section 10.1.

 

9.3           If,
after a Participant’s exercise of an option under Section 9.1, an amount remains credited to the Participant’s Account
as of a Purchase Date, then the remaining amount shall be distributed to the Participant in cash as soon as administratively practical
after such Purchase Date.

 

9.4           Except
as otherwise set forth in this Section 9.4, the purchase price for each Share purchased under any option shall be 85% of the lower
of:

 

(a)          the
Fair Market Value of a Share on the Enrollment Date on which such option is granted; or

 

    	 	9	 

     

    

 

(b)          the
Fair Market Value of a Share on the Purchase Date, but - in the case of newly issued Shares - not lower than the par value of a
Share.

 

Notwithstanding the above, the Board may establish a different
purchase price for each Share purchased under any option provided that such purchase price is determined at least thirty (30) days
prior to the Accumulation Period for which it is applicable and provided that such purchase price may not be less than (i) the
purchase price set forth above and (ii) – in the case of newly issued Shares - than the par value per Share.

 

9.5           If
Shares are purchased by a Participant pursuant to Section 9.1, then such Shares shall be held in non-certificated form at a bank
or other appropriate institution selected by the Administrator until the earlier of the Participant’s termination of employment
or the time a Participant requests delivery of certificates representing such shares, which would only be possible if the Board
resolved that share certificates shall be issued. If any law governing corporate or securities matters, or any applicable regulation
of the Securities and Exchange Commission or other body having jurisdiction with respect to such matters, shall require that the
Company or the Participant take any action in connection with the Shares being purchased under the option, delivery of such Shares
shall be postponed until the necessary action shall have been completed, which action shall be taken by the Company at its own
expense, without unreasonable delay.

 

Shares transferred pursuant to this Section 9.5 shall be registered
in the name of the Participant or, if the Participant so elects, in the names of the Participant and one or more such other persons
as may be designated by the Participant in joint tenancy with rights of survivorship or in tenancy by the entireties or as spousal
community property, or in such forms of trust as may be approved by the Administrator, to the extent permitted by law.

 

9.6           In
the case of Participants employed by a Participating Subsidiary, the Board may provide for Shares to be sold through the Subsidiary
to such Participants, to the extent consistent with and governed by Section 423 of the Code.

 

9.7           If
the total number of Shares for which an option is exercised on any Purchase Date in accordance with this Article IX, when aggregated
with all Shares previously granted under this Plan, exceeds the maximum number of Shares reserved in Section 4.1, the Administrator
shall make a pro rata allocation of the Shares available for delivery and distribution in as nearly a uniform manner as shall be
practicable and as it shall determine to be equitable, and the balance of the cash amount credited to the Account of each Participant
under the Plan shall be returned to him or her as promptly as administratively practical.

 

9.8           If
a Participant or former Participant sells, transfers, or otherwise makes a disposition of Shares purchased pursuant to an option
granted under the Plan within two years after the date such option is granted or within one year after the Purchase Date to which
such option relates, or if the Participant or former Participant otherwise has a taxable event relating to Shares purchased under
the Plan, and if such Participant or former Participant is subject to U.S. federal income tax, then such Participant or former
Participant shall notify the Company or Participating Subsidiary in writing of any such sale, transfer or other disposition within
10 days of the consummation of such sale, transfer or other disposition, and shall remit to the Company or Participating Subsidiary
or authorize the Company or Participating Subsidiary to withhold from other sources such amount as the Company may determine to
be necessary to satisfy any federal, state or local tax withholding obligations of the Company or Participating Subsidiary. A Participant
must reply to a written request, within 10 days of the receipt of such written request, from the Company, Participating Subsidiary,
or Administrator regarding whether such a sale, transfer or other disposition has occurred.

 

    	 	10	 

     

    

 

The Administrator may from time to time
establish rules and procedures (including but not limited to postponing delivery of Shares until the earlier of the expiration
of the two-year or one-year period or the disposition of such Shares by the Participant) to cause the withholding requirements
to be satisfied.

 

X.            Withdrawal From the Plan; Termination
of Employment; Leave of Absence; Death

 

10.1         Withdrawal
from the Plan. Effective as of the last day of any calendar quarter during an Accumulation Period, a Participant may withdraw
from the Plan in full (but not in part) by delivering a notice of withdrawal to the Company (in a manner prescribed by the Administrator)
at least ten business days prior to the end of such calendar quarter (but in no event later than the June 1 or December 1 immediately
preceding the Purchase Date for the Plan's two Accumulation Periods, respectively). Upon such withdrawal from participation in
the Plan, all funds then accumulated in the Participant’s Account shall not be used to purchase Shares, but shall instead
be distributed to the Participant as soon as administratively practical after the end of such calendar quarter, and the Participant’s
payroll deductions shall cease as of the end of such calendar quarter. An Employee who has withdrawn during an Accumulation Period
may not return funds to the Company or a Participating Subsidiary during the same Accumulation Period and require the Company or
Participating Subsidiary to apply those funds to the purchase of Shares, nor may such Participant’s payroll deductions continue,
in accordance with Article VI. Any Eligible Employee who has withdrawn from the Plan may, however, re-enroll in the Plan on the
next subsequent Enrollment Date following withdrawal in accordance with the provisions of Article VI.

 

10.2         Termination
of Employment. Participation in the Plan terminates immediately when a Participant ceases to be employed by the Company or
any Participating Subsidiary for any reason whatsoever, including but not limited to termination of employment, whether voluntary
or involuntary, or on account of disability, or retirement, but not including death, or if the participating Subsidiary employing
the Participant ceases for any reason to be a Participating Subsidiary. Participation in the Plan also terminates immediately when
a Participant ceases to be an Eligible Employee under Article V or withdraws from the Plan. Upon termination of participation such
terminated Participant’s outstanding options shall thereupon terminate. As soon as administratively practical after termination
of participation, the Company shall pay to the Participant or legal representative all amounts accumulated in the Participant’s
Account and held by the Company at the time of termination of participation, and any Participating Subsidiary shall pay to the
Participant or legal representative all amounts accumulated in the Participant's Account and held by the Participating Subsidiary
at the time of termination of participation.

 

    	 	11	 

     

    

 

10.3         Leaves
of Absence.

 

(a)          If a Participant takes a leave of
absence (other than an Authorized Leave of Absence) without terminating employment, such Participant will be deemed to have discontinued
contributions to the Plan in accordance with Section 8.3, but will remain a Participant in the Plan through the balance of the
Accumulation Period in which his or her leave of absence begins, so long as such leave of absence does not exceed 90 days. If a
Participant takes a leave of absence (other than an Authorized Leave of Absence) without terminating employment, such Participant
will be deemed to have withdrawn from the Plan in accordance with Section 10.1 if such leave of absence exceeds 90 days.

 

(b)          An Employee on an Authorized Leave
of Absence shall remain a Participant in the Plan and, in the case of a paid Authorized Leave of Absence, shall have deductions
made under Section 8.1 from payments that would, but for the Authorized Leave of Absence, be Base Earnings. An Employee who does
not return from an Authorized Leave of Absence on the scheduled date (or, in the case of Qualified Military Leave, prior to the
date such individual’s reemployment rights under the Uniformed Services Employment and Reemployment Rights Act of 1994 have
expired or terminated) shall be deemed to have terminated employment on the last day of such Authorized Leave of Absence (or, in
the case of Qualified Military Leave, the date such reemployment rights expire or are terminated).

 

(c)            An “Authorized Leave of Absence”
means (a) a Qualified Military Leave, and (b) an Employee’s absence of more than 90 days which has been authorized, either
pursuant to a policy of the Company or the Participating Subsidiary that employs the Employee, or pursuant to a written agreement
between the employer and the Employee, which policy or written agreement guarantees the Employee’s rights to return to employment.

 

10.4         Death.
Unless mandatory applicable law provides otherwise as soon as administratively feasible after the death of a Participant, amounts
accumulated in his or her Account shall be paid in cash to the beneficiary or beneficiaries designated by the Participant on a
beneficiary designation form approved by the Board, but if the Participant does not make an effective beneficiary designation then
such amounts shall be paid in cash to the Participant’s spouse if the Participant has a spouse, or, if the Participant does
not have a spouse, to the executor, administrator or other legal representative of the Participant’s estate. Such payment
shall relieve the Company and the Participating Subsidiary of further liability with respect to the Plan on account of the deceased
Participant. If more than one beneficiary is designated, each beneficiary shall receive an equal portion of the Account unless
the Participant has given express contrary instructions. None of the Participant’s beneficiary, spouse, executor, administrator
or other legal representative of the Participant’s estate shall, prior to the death of the Participant by whom he has been
designated, acquire any interest in the amounts credited to the Participant’s Account under the Plan.

 

    	 	12	 

     

    

 

XI.          Miscellaneous

 

11.1         Interest.
Interest or earnings will not be paid on any Employee Accounts.

 

11.2         Restrictions
on Transfer. The rights of a Participant under the Plan shall not be assignable or transferable by such Participant, and an
option granted under the Plan may not be exercised during a Participant’s lifetime other than by the Participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act
as an election to withdraw from the Plan in accordance with Section 10.1.

 

11.3         Administrative
Assistance. If the Administrator in its discretion so elects, it may retain a brokerage firm, bank, other financial institution
or other appropriate agent to assist in the purchase of Shares, delivery of reports or other administrative aspects of the Plan.
If the Administrator so elects, each Participant shall (unless prohibited by applicable law) be deemed upon enrollment in the Plan
to have authorized the establishment of an account on his or her behalf at such institution. Shares purchased by a Participant
under the Plan shall be held in the account in the Participant’s name, or if the Participant so indicates in the enrollment
form, in the Participant’s name together with the name of one or more other persons in joint tenancy with right of survivorship
or in tenancy by the entireties or as spousal community property, or in such forms of trust as may be approved by the Administrator,
to the extent permitted by law.

 

11.4         Costs.
All costs and expenses incurred in administering the Plan shall be paid by the Company or Participating Subsidiaries, including
any brokerage fees on the purchased Shares; excepting that any stamp duties, transfer taxes, fees to issue stock certificates,
and any brokerage fees on the sale price applicable to participation in the Plan after the initial purchase of the Shares on the
Purchase Date shall be charged to the Account or brokerage account of such Participant.

 

11.5         Equal
Rights and Privileges. All Eligible Employees shall have equal rights and privileges with respect to the Plan so that the Plan
qualifies as an "employee stock purchase plan" within the meaning of Section 423 or any successor provision of the
Code and the related regulations. Notwithstanding the express terms of the Plan, any provision of the Plan which is inconsistent
with Section 423 or any successor provision of the Code shall without further act or amendment by the Company or the Board
be reformed to comply with the requirements of Code Section 423. This Section 11.5 shall take precedence over all other
provisions in the Plan.

 

11.6         Applicable
Law. The Plan shall be governed by the substantive laws (excluding the conflict of laws rules) of the State of Kansas.

 

11.7         Amendment
and Termination. The Board may amend, alter or terminate the Plan at any time; provided, however, that no amendment which would
amend or modify the Plan in a manner requiring stockholder approval under Code Section 423 or the requirements of any securities
exchange on which the Shares are traded shall be effective unless, within one year after it is adopted by the Board, it is approved
by the holders of a majority of the voting power of the Company’s outstanding shares. In addition, the Committee (if appointed
under Section 3.1) may amend the Plan as provided in Section 3.3, subject to the conditions set forth therein and in this Section
11.7.

 

    	 	13	 

     

    

 

If the Plan is terminated, the Board may
elect to terminate all outstanding options either prior to their expiration or upon completion of the purchase of Shares on the
next Purchase Date, or may elect to permit options to expire in accordance with the terms of this Plan (and participation to continue
through such expiration dates). If the options are terminated prior to expiration, all funds accumulated in Participants’
Accounts as of the date the options are terminated shall be returned to the Participants as soon as administratively feasible.

 

11.8         No
Right of Employment. Neither the grant nor the exercise of any rights to purchase Shares under this Plan nor anything in this
Plan shall impose upon the Company or Participating Subsidiary any obligation to employ or continue to employ any employee. The
right of the Company or Participating Subsidiary to terminate any employee shall not be diminished or affected because any rights
to purchase Shares have been granted to such employee.

 

11.9         Requirements
of Law. The Company shall not be required to sell, issue, or deliver any Shares under this Plan if such sale, issuance, or
delivery might constitute a violation by the Company or the Participant of any provision of law. Unless a registration statement
under the Securities Act is in effect with respect to the Shares proposed to be delivered under the Plan, the Company shall not
be required to issue such Shares if, in the opinion of the Company or its counsel, such issuance would violate the Securities Act.
Regardless of whether such Shares have been registered under the Securities Act or registered or qualified under the securities
laws of any state, the Company may impose restrictions upon the hypothecation or further sale or transfer of such shares if, in
the judgment of the Company or its counsel, such restrictions are necessary or desirable to achieve compliance with the provisions
of the Securities Act, the securities laws of any state, or any other law or are otherwise in the best interests of the Company.
Any determination by the Company or its counsel in connection with any of the foregoing shall be final and binding on all parties.

 

The Company may, but shall not be obligated
to, register or qualify any securities covered by the Plan. The Company shall not be obligated to take any other affirmative action
in order to cause the grant or exercise of any right or the issuance, sale, or deliver of Shares pursuant to the exercise of any
right to comply with any law.

 

11.10         Gender.
When used herein, masculine terms shall be deemed to include the feminine, except when the context indicates to the contrary.

 

11.11.        Data Protection. The Board,
the Committee, and any other person or entity empowered by the Board or the Committee to administer the Plan may process, store,
transfer or disclose personal data of the Participants to the extent required for the implementation and administration of the
Plan. The Board, the Committee and any other person or entity empowered by the Board or the Committee to administer the Restated
Plan shall comply with any applicable data protection laws.

 

    	 	14	 

     

    

 

11.12         Withholding
of Taxes. The Company or Participating Subsidiary may withhold from any purchase of Shares under this Plan or any sale, transfer
or other disposition thereof any local, state, federal or foreign taxes, employment taxes, social taxes or other taxes at such
times and from such other amounts as it deems appropriate. The Company or Participating Subsidiary may require the Participant
to remit an amount in cash sufficient to satisfy any required withholding amounts to the Company or Participating Subsidiary, as
the case may be.

 

    	 	15	 

     

    

 

Annex to the Plan for Grantees subject to Swiss inheritance
law

 

1.          Section
10.4 shall be replaced with the following:

 

10.4         Death.
After the death of a Participant, amounts accumulated in his or her Account shall be paid to the Participant's estate in accordance
with the applicable Swiss inheritance rules.

 

    	 	16

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