Document:

EX-10.1

  Exhibit 10.1

   

  EXECUTION VERSION

   

   

   

  FIRST AMENDMENT TO

  REVOLVING CREDIT AND SECURITY AGREEMENT

   

  THIS FIRST AMENDMENT TO REVOLVING CREDIT AND SECURITY AGREEMENT, dated as of September 15th, 2022 (the “Amendment”), is made pursuant to that certain Revolving Credit and Security Agreement dated as of August 12, 2021 (as renewed, amended or restated from time to time,  the  “Credit Agreement”), among PENNANTPARK  FLOATING  RATE  FUNDING I,  LLC,  a Delaware limited liability company, as borrower (together with its permitted successors and assigns, the “Borrower”); PENNANTPARK INVESTMENT ADVISERS, LLC, a Delaware limited liability company, as the collateral manager (together with its permitted successors and assigns, the “Collateral Manager”), the LENDERS from time to time party hereto; TRUIST BANK, as administrative agent for the Secured Parties (as hereinafter defined) (in such capacity, together with its successors and assigns, the “Administrative Agent”), TRUIST BANK, as the swingline lender (the “Swingline Lender”), U.S. BANK NATIONAL ASSOCIATION, as collateral agent for the Secured Parties (as hereinafter defined) (in such capacity, together with its successors and assigns, the “Collateral Agent”); U.S. BANK NATIONAL ASSOCIATION, as custodian (in such capacity, together with its successors and assigns, the “Custodian”); U.S. BANK NATIONAL ASSOCIATION, as collateral administrator (in such capacity, together with its successors and assigns, the “Collateral  Administrator”); and  U.S. BANK  NATIONAL  ASSOCIATION,  as  backup  collateral manager (in such capacity, together with its successors and assigns, the “Backup Collateral Manager”).

   

   

  W I T N E S S E T H :

   

  WHEREAS, prior to the date hereof, the Administrative Agent notified each of the parties to the Credit Agreement that at least five currently outstanding syndicated credit facilities denominated in Dollars contain a SOFR-based rate as a benchmark rate, and the Administrative Agent and the Borrower have jointly elected to replace the Eurocurrency Rate for Eurocurrency Borrowings denominated in Dollars, which is currently based on the ICE Benchmark Administration Limited London interbank offered rate, with a SOFR-based rate in accordance with clause (1) of the definition of Benchmark Replacement (such election, the “SOFR Early Opt-in Election” and such SOFR-based rate, the “SOFR Benchmark Replacement”);

   

  WHEREAS, the Administrative Agent has delivered written notice of the SOFR Early Opt- in Election as well as the SOFR Benchmark Replacement to the Lenders and the Benchmark Replacement Date has occurred with respect to such SOFR Early Opt-in Election;

   

  WHEREAS, in connection with the implementation of such Benchmark Replacement, the Administrative Agent desires to make certain Benchmark Replacement Conforming Changes pursuant to the terms and conditions set forth herein.

   

  NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and subject to the terms hereof, the Credit Agreement is hereby amended as follows:

   

   

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  Section 1.     Defined Terms. Unless otherwise amended by the terms of this Amendment, terms used in this Amendment shall have the meanings assigned in the Credit Agreement.

   

  Section 2.     Subject to the satisfaction of the conditions precedent set forth in Section 3 below, the Credit Agreement shall be amended with text marked in underline (e.g.,  addition or addition) indicating additions to the Credit Agreement and with text marked in strikethrough (e.g., deletion or deletion) indicating deletions to the Credit Agreement as set forth in Exhibit A attached hereto.

   

  Section 3     Conditions  Precedent.    This  Amendment  shall  become  effective  upon execution by the Administrative Agent and no other further action or consent by any other party to the Credit Agreement or any other Facility Document is required.

   

  Section 4.     Agreement in Full Force and Effect. Except as specifically amended herein, the Credit Agreement shall continue in full force and effect in accordance with its original terms, and the Liens created and provided for by the Facility Documents remain in full force and effect and continue to secure, among other things, the performance of all of the Borrower’s Obligations under the Facility Documents and the Credit Agreement as amended hereby.  Reference to this specific Amendment need not be made in the Credit Agreement or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Credit Agreement, any reference in any of such items to the Credit Agreement being sufficient to refer to the Credit Agreement as amended hereby.

   

  Section 5.     Execution in Counterparts.  Delivery of an executed counterpart hereof by facsimile transmission or by e-mail transmission of an electronic signature (including, without limitation, any .pdf file, .jpeg file, or any other electronic or image file, or any “electronic signature” as defined under the U.S. Electronic Signatures in Global and National Commerce Act or the New York Electronic Signatures and Records Act, which includes any electronic signature provided using Orbit, Adobe Sign, or DocuSign) shall be effective as delivery of a manually executed counterpart hereof.

   

  Section 6.     Governing Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT AND ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AMENDMENT OR ANY OTHER FACILITY DOCUMENT (EXCEPT, AS TO ANY OTHER FACILITY DOCUMENT, AS EXPRESSLY SET FORTH THEREIN) AND THE TRANSACTIONS CONTEMPLATED

  HEREBY AND THEREBY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, EXCEPT THE CONFLICT OF LAW PRINCIPLES THEREOF WHICH WOULD HAVE THE EFFECT OF APPLYING THE LAW OF ANY OTHER JURISDICTION.

   

   

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  IN WITNESS WHEREOF, the Administrative Agent has caused this First Amendment to Revolving Credit and Security Agreement to be executed and delivered by its duly authorized officers as of the date set forth above.

   

  TRUIST BANK, as Administrative Agent

   

   

  			
	 
	By: 
	/s/Jason Meyer

	 
	 
	Name: Jason Meyer

	 
	 
	Title:  Managing Director

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

  [Signature Page to First Amendment to Revolving Credit and Security Agreement (PennantPark)]

   

   

  

   

  EXHIBIT A 

  See Attached

   

   

  

   

  EXECUTION VERSIONCHAPMAN DRAFT DATED AUGUST 31, 2022

  CONFORMED THROUGH FIRST AMENDMENT DATED AS OF SEPTEMBER 15, 2022

   

   

  REVOLVING CREDIT AND SECURITY AGREEMENT 

   

   

  among

   

   

  PENNANTPARK FLOATING RATE FUNDING I, LLC, 

  as Borrower,

   

   

  PENNANTPARK INVESTMENT ADVISERS, LLC, 

  as Collateral Manager

   

   

  THE LENDERS FROM TIME TO TIME PARTIES HERETO, 

   

   

  TRUIST BANK,

  as Administrative Agent

   

   

  TRUIST SECURITIES, INC.,

   as Lead Arranger

   

   

  U.S. BANK NATIONAL ASSOCIATION,

   as Collateral Agent

   

   

  U.S. BANK NATIONAL ASSOCIATION,

   as Collateral Administrator

   

   

  U.S. BANK NATIONAL ASSOCIATION,

   as Backup Collateral Manager

   

  and

   

   

  U.S. BANK NATIONAL ASSOCIATION,

   as Custodian

   

   

  Dated as of August 12, 2021

   

   

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  TABLE OF CONTENTS

   

  					
	SECTION
	 
	HEADING
	 
	PAGE

	 
	 
	 
	 
	 

	ARTICLE I
	 
	DEFINITIONS; RULES OF CONSTRUCTION; COMPUTATIONS
	 
	1

	 
	 
	 
	 
	 

	Section 1.01.
	 
	Definitions
	 
	1

	Section 1.02.
	 
	Rules of Construction
	 
	59

	Section 1.03.
	 
	Computation of Time Periods
	 
	59

	Section 1.04.
	 
	Collateral Value Calculation Procedures
	 
	60

	Section 1.05.
	 
	Classification of Loans and Borrowings
	 
	62

	Section 1.06.
	 
	Currencies Generally
	 
	62

	Section 1.07.
	 
	Calculation of Borrowing Base
	 
	62

	Section 1.08.
	 
	LIBOR
	 
	62

	 
	 
	 
	 
	 

	ARTICLE II
	 
	ADVANCES
	 
	63

	 
	 
	 
	 
	 

	Section 2.01.
	 
	Revolving Credit Facility
	 
	63

	Section 2.02.
	 
	Making of the Advances
	 
	64

	Section 2.03.
	 
	Evidence of Indebtedness
	 
	66

	Section 2.04.
	 
	Payment of Principal and Interest
	 
	67

	Section 2.05.
	 
	Prepayment of Advances
	 
	68

	Section 2.06.
	 
	Changes of Commitments
	 
	69

	Section 2.07.
	 
	Maximum Lawful Rate
	 
	70

	Section 2.08.
	 
	Several Obligations
	 
	70

	Section 2.09.
	 
	Increased Costs
	 
	70

	Section 2.10.
	 
	Compensation; Breakage Payments
	 
	71

	Section 2.11.
	 
	Illegality; Inability to Determine Rates
	 
	72

	Section 2.12.
	 
	Rescission or Return of Payment
	 
	81

	Section 2.13.
	 
	Post-Default Interest
	 
	82

	Section 2.14.
	 
	Payments Generally
	 
	82

	Section 2.15.
	 
	Increase in Facility Amount
	 
	83

	Section 2.16.
	 
	Defaulting Lenders
	 
	83

	 
	 
	 
	 
	 

	ARTICLE III
	 
	CONDITIONS PRECEDENT
	 
	86

	 
	 
	 
	 
	 

	Section 3.01.
	 
	Conditions Precedent to Initial Borrowing
	 
	86

	Section 3.02.
	 
	Conditions Precedent to Each Borrowing
	 
	88

	 
	 
	 
	 
	 

	ARTICLE IV
	 
	REPRESENTATIONS AND WARRANTIES
	 
	89

	 
	 
	 
	 
	 

	Section 4.01.
	 
	Representations and Warranties of the Borrower
	 
	89

	Section 4.02.
	 
	Representations and Warranties of the Collateral Manager
	 
	93

	 
	 
	 
	 
	 

	ARTICLE V
	 
	COVENANTS
	 
	96

	 
	 
	 
	 
	 

	Section 5.01.
	 
	Affirmative Covenants of the Borrower
	 
	96

   

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  REVOLVING CREDIT AND SECURITY AGREEMENT

   

  REVOLVING CREDIT AND SECURITY AGREEMENT dated as of August 12, 2021 among PENNANTPARK FLOATING RATE FUNDING I, LLC, a Delaware limited liability company, as borrower (together with its permitted successors and assigns, the “Borrower”); PENNANTPARK INVESTMENT ADVISERS, LLC, a Delaware limited liability company, as the collateral manager (together with its permitted successors and assigns, the “Collateral Manager”), the LENDERS from time to time party hereto; TRUIST BANK, as administrative agent for the Secured Parties (as hereinafter defined) (in such capacity, together with its successors and assigns, the “Administrative Agent”), TRUIST BANK, as the swingline lender (the “Swingline Lender”), U.S. BANK NATIONAL ASSOCIATION, as collateral agent for the Secured Parties (as hereinafter defined) (in such capacity, together with its successors and assigns, the “Collateral Agent”); U.S. BANK NATIONAL ASSOCIATION, as custodian (in such capacity, together with its successors and assigns, the “Custodian”); U.S. BANK NATIONAL ASSOCIATION, as collateral administrator (in such capacity, together with its successors and assigns, the “Collateral Administrator”); and U.S. BANK NATIONAL ASSOCIATION, as backup collateral manager (in such capacity, together with its successors and assigns, the “Backup Collateral Manager”).

   

   

  W I T N E S S E T H:

   

  WHEREAS, the Borrower desires that the Lenders make advances on a revolving basis to the Borrower on the terms and subject to the conditions set forth in this Agreement; and

   

  WHEREAS, each Lender is willing to make such advances to the Borrower on the terms and subject to the conditions set forth in this Agreement.

   

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

   

   

  ARTICLE I

   

  DEFINITIONS; RULES OF CONSTRUCTION; COMPUTATIONS

   

  Section 1.01.	Definitions.  As used in this Agreement, the following terms shall have the meanings indicated:

   

  “ABL Facility” means a lending facility pursuant to which the loans thereunder are secured by a perfected, first priority security interest in accounts receivable, inventory, machinery, equipment, or periodic revenues, where such collateral security consists of assets generated or acquired by the related Obligor in its business.

   

   

  hereto.

  “Account Control Agreement” means an agreement in substantially the form of Exhibit E 

   

  “Adjusted  Eurocurrency  Rate”  means  (a)  for  the  Interest  Accrual  Period  for  any

   

   

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  Eurocurrency Borrowing denominated in Dollars, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to  (i)  the greater of (A) zero percent (0%), and (B) the sum of (i) the  Eurocurrency Rate for such Interest Accrual Period  multiplied by (ii) the Statutory Reserve Rate for such Interest Accrual Periodfor Dollars, plus (ii) 0.11448% and (b) for the Interest Accrual Period for any Eurocurrency Borrowing denominated in a Currency (other than Dollars) an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to the greater of (A) zero percent (0%) and (B) the Eurocurrency Rate for such Interest Accrual Period for such Currency.

   

  “Administrative Agent” has the meaning assigned to such term in the introduction to this

  Agreement.

   

  “Administrative Expense Cap” means, for any rolling 12-month period, an amount equal to $300,000.

   

  “Administrative Expenses” means the fees and expenses (including indemnities) and other amounts of the Borrower due or accrued with respect to any Payment Date and payable in the following order:

   

  (a)     first, to the Collateral Agent, the Collateral Administrator, the Backup Collateral Manager, Securities Intermediary and the Custodian, any amounts payable pursuant to the Collateral Agent Fee Letter, the Backup Collateral Manager Fee Letter, the Custodian Fee Letter, the Collateral Administration Agreement, this Agreement and the other Facility Documents;

   

  (b)	second, to the Administrative Agent for fees and accrued expenses;

   

  (c)     third,  to  the  Collateral  Manager  for  expenses  (including  indemnities) incurred by the Collateral Manager in connection with the services provided under this Agreement and as further described in Sections 11.03, 11.07 and 11.09; and

   

  (d)	fourth, on a pro rata basis, to:

   

  (i)     the Independent Accountants, agents (other than the Collateral Manager) and counsel of the Borrower for fees and expenses related to the Collateral and the Facility Documents;

   

  (ii)     the Rating Agencies for fees and expenses in connection with the rating of (or provision of credit estimates in respect of) any Collateral Loans;

   

  (iii)	any other Person in respect of any other fees or expenses permitted under or incurred pursuant to or in connection with the Facility Documents; and

   

  (iv)	the Lenders and the Agents (or related indemnified parties) for fees, expenses  and  other  amounts  payable  by  the  Borrower  under  any  Facility

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  (b)	the Defaulted Collateral Loan Balance, plus

   

  (c)      the Dollar Equivalent of the aggregate purchase price of all Discount Collateral Loans that are Eligible Collateral Loans and not Defaulted Collateral Loans, Haircut Collateral Loans or Credit Improved Loans, plus

   

  (d)	the Revolving Exposure in respect of all Delayed Drawdown Collateral

  Loans and Revolving Collateral Loans that are Eligible Collateral Loans, plus

   

  (e)	for each Credit Improved Loan, an amount equal to the lower of (i) its

  Principal Balance and (ii) its Market Value, plus

   

  (f)	the Haircut Collateral Loan Balance;

   

  provided that, in calculating the Aggregate Collateral Balance, no Collateral Loans shall be included at a value in excess of the value of such Collateral Loan as reflected on the books and records of the Collateral Manager on such date of determination.

   

  “Aggregate Funded Spread” means, as of any date, the sum of:

   

  (a)     in  the  case  of  each  Floating  Rate  Obligation  (excluding  any  Floor Obligation) that bears interest at a spread over an index (including any London interbank offered rate based index), (i) the excess of the sum of such spread and such index over Specified LIBOREurocurrency Rate as then in effect (which spread or excess may be expressed as a negative percentage) multiplied by (ii) the Principal Balance of such Collateral Loan; and

   

  (b)      in the case of each Floor Obligation, (i) the excess of the interest rate on such Floor Obligation (including any interest rate spread) as of such date over Specified LIBOREurocurrency Rate as then in effect (which spread or excess may be expressed as a negative percentage) multiplied by (ii) the Principal Balance of each such Collateral Loan.

   

  “Aggregate Principal Balance” means, when used with respect to all or a portion of the Collateral Loans, the sum of the Principal Balances of all or of such portion of such Collateral Loans.

   

  “Aggregate Unfunded Spread” means, as of any date, the sum of the products obtained by multiplying (a) for each Delayed Drawdown Collateral Loan and Revolving Collateral Loan, the related commitment fee or other analogous fees (expressed at a per annum rate) then in effect as of such date and (b) the undrawn commitments of each such Delayed Drawdown Collateral Loan and Revolving Collateral Loan as of such date.

   

  “Agreed Foreign Currency”  means,  at  any  time,  any  of  Canadian Dollars,  Pounds

  Sterling, Euros, and Australian Dollars.

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  “Backup Collateral Manager Fee Letter” means the Collateral Agent Fee Letter, setting forth the fees payable by the Borrower, among other parties, to the Backup Collateral Manager in connection with the transactions contemplated by this Agreement, as the same may be amended or amended and restated from time to time.

   

  “Backup Collateral Manager Indemnified Amounts” has the meaning set forth in Section

  13.04 hereof.

   

  “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

   

  “Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

   

  “Bankruptcy Code” means the United States Bankruptcy Code, as amended.

   

  “Base Rate” means, on any date, a fluctuating interest rate per annum equal to the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50%, and (c) the  rate as displayed in the Bloomberg Financial Markets System (or on any successor or substitute page of such service, or any successorsum of (i) the greater of (1) the sum of (A) the Term SOFR Reference Rate for a tenor of one month on the day (such day, the “Base Rate Term SOFR Determination Day”) that is two (2) Eurocurrency Banking Days for Dollars prior to such day, as such  service, providing  rate quotations comparable to those currentlyis published by the Term SOFR Administrator; provided on such page of such service, as determined by the Administrative Agent in its reasonable discretion from time to time for purposes of providing quotations of interest rates applicable to Dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, on such day (or, if such day is not a Business Day, the immediately preceding Business Day), for Dollar deposits with a term of one month plus,that if as of 5:00 p.m. on any Base Rate Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then the rate under this clause (A) will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding Eurocurrency Banking Day for Dollars for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding Eurocurrency Banking Day for Dollars is not more than three (3) Eurocurrency Banking Days for Dollars prior to such Base Rate Term SOFR Determination Day; plus (B) .11448%, and (2) the Floor; plus (ii) solely to the extent  that  an Event of Default has occurred and is continuing,  1.01.00%.  The Base Rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer of any Agent or any Lender. Interest calculated pursuant to clause (a) above will be determined based on a year of 365 days or 366 days, as applicable, and actual days elapsed. Interest calculated pursuant to clauses (b) and (c) above will be determined based on a year of 360 days and actual days elapsed. Any change in the Base Rate due to a change in the Prime Rate, the Federal Funds Rate or the rate as displayed in the Bloomberg Financial Markets System (or

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  successor therefor)Term SOFR Reference Rate as set forth above shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Rate or such rate as displayed in the Bloomberg Financial Markets System (or successor therefor)the Term SOFR Reference Rate, respectively.

   

  “BDC” means PennantPark Floating Rate Capital Ltd., a Maryland corporation.

   

  “Borrower” has the meaning assigned to such term in the introduction to this Agreement.

   

  “Borrower LLC Agreement” means the Limited Liability Company Operating Agreement of the Borrower, dated as of June 23, 2011.

   

  “Borrowing” has the meaning assigned to such term in Section 2.01.

   

  “Borrowing Base” means, at any time, an amount equal to:

   

  (a) the Aggregate Collateral Balance (excluding the Revolving Exposure pursuant to clause (d) of such definition), minus

   

  (b)       (i) during the Reinvestment Period, the Excess Concentration Amount and (ii) after the Reinvestment Period, the Excess Concentration Amount calculated as of the last day of the Reinvestment Period.

   

  “Borrowing Base Calculation Statement” means a statement in substantially the form attached to the form of Notice of Borrowing attached hereto as Exhibit B, as such form of Borrowing Base Calculation Statement may be modified by the Administrative Agent from time to time to the extent such form does not, in the good faith opinion of the Administrative Agent, accurately reflect the calculation of the Borrowing Base required hereunder.

   

  “Borrowing Date” means the date of a Borrowing.

   

  “Business Day” means any day other than a Saturday or Sunday, provided that the following shall not constitute Business Days (i) days on which banks are authorized or required to close in New York, New York, Minneapolis, Minnesota, Florence, South Carolina, or Charlotte, North Carolina, (ii) days on which the Depository Trust Company or commercial paper markets in the United States are closed,  and (iii) if the applicable Business Day relates to the advance or continuation of, or conversion into, or payment of an Advance denominated in Dollars bearing interest at the Eurocurrency Rate or the determination of the Eurocurrency Rate, days on which banks are dealing in Dollar deposits in the interbank eurodollar market in London, England are closed and (iv) if the applicable Business Day relates to the advance or continuation of, or conversion into, or payment of an Advance denominated in any Agreed Foreign Currency, days on which commercial banks and the London foreign exchange market settle payments in the Principal Financial Center are closed.

   

  “Canadian Dollars” and “Cdn $” each means the lawful currency of Canada.

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  the PBGC intends to seek termination of any Plan or to have a trustee appointed for any Plan, or (ii) the filing by the Borrower or any member of its ERISA Group of a notice of intent to terminate any Plan; (g) the incurrence by the Borrower or any member of its ERISA Group of any liability (i) with respect to a Plan pursuant to Sections 4063 and 4064 of ERISA, (ii) with respect to a facility closing pursuant to Section 4062(e) of ERISA, or (iii) with respect to the withdrawal or partial withdrawal from any Multiemployer Plan; (h) the receipt by the Borrower or any member of its ERISA Group of any notice concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, in endangered status or critical status, within the meaning of Section 432 of the Code or Section 305 of ERISA or is or is expected to be insolvent or in reorganization, within the meaning of Title IV of ERISA; or (i) the failure of the Borrower or any member of its ERISA Group to make any required contribution to a Multiemployer Plan.

   

  “ERISA Group” means each controlled group of corporations or trades or businesses (whether or not incorporated) under common control that is treated as a single employer under Section 414(b), (c), (m) or (o) of the Code with the Borrower.

   

  “Erroneous Payment” has the meaning given in Section 12.07(a).

   

  “Erroneous Payment Deficiency Assignment” has the meaning given in Section 12.07(d).

   

  “Erroneous Payment Impacted Class” has the meaning given in Section 12.07(d).

   

  “Erroneous Payment Return Deficiency” has the meaning given in Section 12.07(d).

   

  “Erroneous Payment Subrogation Rights” has the meaning given in Section 12.07(d).

   

  “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

   

  “Eurocurrency”, when used in reference to any Advance or Borrowing, refers to whether such Advance, or the Advances constituting such Borrowing, are bearing interest at a rate determined by reference to the Adjusted Eurocurrency Rate.

   

  “Eurocurrency Banking Day” means for Eurocurrency Advances, Eurocurrency Borrowings, interest, fees, commissions or other amounts denominated in, or calculated with respect to:

   

  (a)       Dollars, any day  (other thanexcept for (i) a Saturday or, (ii) a Sunday) or (iii) a day on which  banks are open for business in London, Englandthe Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities;

   

  (b)	Euros, a TARGET Day;

   

  (c)	Canadian Dollars, any day (other than a Saturday or Sunday) on which

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  banks are open for business in Toronto, Canada; or

   

  (d)	Australian Dollars, any day (other than a Saturday or Sunday) on which banks are open for business in Melbourne, Australia.

   

   

  “Eurocurrency Liabilities” is defined in Regulation D of the Board of Governors of the

  Federal Reserve System, as in effect from time to time.

   

  “Eurocurrency Rate” means, for any Interest Accrual Period:

   

  (a)       in  the  case  of  Eurocurrency  Borrowings  denominated  in  Dollars,  the  ICE Benchmark Administration Limited London interbank offered rate per annum for deposits in the relevant Currency for a period equal to the  Term SOFR Reference Rate for a tenor comparable to the applicable Interest Accrual Period as displayed inon the Bloomberg Financial Markets System (or such other page on that service or such other service designated by the ICE Benchmark Administration Limited for the display of such Administration’s London interbank offered rate for deposits in the relevant Currency) as of 11:00 a.m., London time on the dayday (such day, the “Periodic Term SOFR Determination Day”) that is two (2) Eurocurrency Banking Days for Dollars prior to the first day of  thesuch Interest Accrual Period, as such rate is published by the Term SOFR Administrator (the “LIBOSOFR Screen Rate”); provided, that if  the Administrative Agent determines that the relevant foregoing sources are unavailable for the relevant Interest Accrual Period, Eurocurrency Rate shall mean for Dollars, the rate of interest determined by the Administrative Agent to be the average (rounded upward, if necessary, to the nearest 1/100th of

  1%) of the rate per annum at which the Administrative Agent could borrow funds if it were to do so by asking for and then accepting interbank offers twoas of 5:00 p.m. on any Periodic Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then the Eurocurrency Rate for Eurocurrency Borrowings denominated in Dollars will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding Eurocurrency Banking Day for Dollars for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding Eurocurrency Banking Day for Dollars is not more than three (3) Eurocurrency Banking Days for Dollars  preceding the first day of such Interest Accrual Period in the London interbank market for Dollars as of 11:00 a.m. for delivery on the first day of such Interest Accrual Period, for the number of days comprised therein and in an amount comparable to the amount of the Administrative Agent’s portion of the relevant Eurocurrency Borrowing;prior to such Periodic Term SOFR Determination Day (the rate under this clause (a) referred to herein as, “Term SOFR”).

   

  (b)       in the case of Eurocurrency Borrowings denominated in Euros, the rate per annum equal to the Euro Interbank Offered Rate as administered by the European Money Markets Institute (or any other Person that takes over the administration of such rate) for a period equal in length to such Interest Accrual Period, as displayed on the applicable Bloomberg page (or on any successor or substitute page or service providing such quotations as determined by the Administrative  Agent  from  time  to  time;  in  each  case,  the  “EURIBOR  Screen  Rate”)  at

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  “Floor Obligation” means, as of any date:

   

  (a)     a Floating Rate Obligation (1) for which the Related Documents provides for a LiborLondon interbank offered rate option or a SOFR option and that such Libor rate is calculated as the greater of a specified “floor” rate per annum and the London interbank offeredsuch rate for the applicable interest period and (2) that, as of such date, bears interest based on such LiborLondon interbank offered rate option or SOFR option, but only if as of such date the London interbank offered rate or SOFR for the applicable interest period is less than such floor rate; and

   

  (b)      a Floating Rate Obligation (1) for which the Related Documents provides for a base or prime rate option and such base or prime rate is calculated as the greater of a specified “floor” rate per annum and the base or prime rate for the applicable interest period and (2) that, as of such date, bears interest based on such base or prime rate option, but only if as of such date the base or prime rate for the applicable interest period is less than such floor rate.

   

  “Foreign Currency Equivalent” means, with respect to any amount in Dollars, the amount of any Agreed Foreign Currency that could be purchased with such amount of Dollars using the reciprocal of the foreign exchange rate(s) specified in the definition of the term “Dollar Equivalent”, as determined by the Collateral Manager and reported to the Administrative Agent and the Collateral Administrator.

   

  “Foreign Currency Loan OC Balance” means, for any Collateral Loan denominated in an Agreed Foreign Currency, the sum of, (a) the product of (i) the Dollar Equivalent outstanding principal balance of such loan, and (ii) the difference of 1 minus the Advance Rate applicable to such loan, (b) the Dollar Equivalent of any Excess Concentration Amount attributable to such Collateral Loan, and (c) if such Collateral Loan is a Haircut Collateral Loan, the product of (i) the Dollar Equivalent outstanding principal balance of such Haircut Collateral Loan and (ii) 1 minus such Haircut Collateral Loan’s Recovery Rate.

   

  “Foreign Currency Variability Factor” means, with respect to each Agreed Foreign

  Currency, the percentage opposite such Agreed Foreign Currency set forth in the table below:

   

  		
	 
Applicable Currency
	 
Percentage Factor

	 
Euros
	 
33%

	 
Canadian Dollars
	 
38%

	 
Pounds Sterling
	 
51%

	 
Australian Dollars
	 
61%

   

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  “Money” has the meaning specified in Section 1-201(24) of the UCC.

   

  “Monthly Asset Amount” means, for any Payment Date, the Aggregate Collateral Balance as of the last day of the most recent Collection Period.

   

  “Monthly Report” has the meaning specified in Section 8.06(a).

   

  “Monthly Report Determination Date” has the meaning specified in Section 8.06(a).

   

  “Monthly Reporting Date” means the 20th calendar day (or, if such day is not a Business

  Day, on the next succeeding Business Day) of each calendar month.

   

  “Moody’s” means Moody’s Investors Service, Inc., together with its successors.

   

  “Multicurrency Advance” means an Advance denominated in  Dollars or  an Agreed

  Foreign Currency.

   

  “Multiemployer Plan” means an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA that is sponsored by the Borrower or a member of its ERISA Group or to which the Borrower or a member of its ERISA Group is obligated to make contributions or has any liability.

   

  “Net Worth” means, for any Obligor and at any time the same is to be determined, the difference between total assets and total liabilities of such Obligor, total assets and total liabilities each to be determined in accordance with GAAP.

   

  “Non-Cash Paying PIK Loan” means a Collateral Loan that requires the Obligor to pay only a portion of the accrued and unpaid interest in Cash on a current basis, the remainder of which is or can be deferred and paid later; provided that the portion of such interest required to be paid in Cash pursuant to the terms of the applicable Related Documents carries a current Cash pay interest rate paid (x) at a floating rate of less than 2.50% per annum over LIBORLondon interbank offered rate or SOFR, as applicable, or (y) at a fixed rate of less than 6.0% per annum.

   

  “Non-Defaulting Lender” shall mean, at any time, a Lender that is not a Defaulting Lender.

   

  “Noteless Loan” means a Collateral Loan with respect to which (i) the related loan agreement does not require the obligor to execute and deliver an Underlying Note to evidence the indebtedness created under such Collateral Loan and (ii) no Underlying Notes are outstanding with respect to the portion of the Collateral Loan transferred to the Borrower.

   

  “Notice of Borrowing” has the meaning assigned to such term in Section 2.02.

   

  “Notice of Prepayment” has the meaning assigned to such term in Section 2.05.

   

  “Obligations” means all indebtedness, whether absolute, fixed or contingent, at any time

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  or from time to time owing by the Borrower to any Secured Party or any Affected Person under or in connection with this Agreement, the Collateral Agent Fee Letter or any other Facility Document, including all amounts payable by the Borrower in respect of the Advances, with interest thereon, and all amounts payable hereunder.

   

  “Obligor” means, in respect of any Collateral Loan, the Person primarily obligated to pay

  Collections in respect of such Collateral Loan.

   

  “OFAC” has the meaning assigned to such term in Section 4.01(f).

   

  “Offer” has the meaning given in Section 8.07(c).

   

  “Original Currency” has the meaning assigned to such term in Section 2.14.

   

  “Other Connection Taxes” has the meaning given in Section 15.03(a).

   

  “Other Taxes” has the meaning given in Section 15.03(b).

   

  “Ownership Certificates” means, in respect of any Collateral, all stock, ownership certificates, participation certificates and other “instruments” and “certificated securities” (as such terms are defined in the UCC), if any, governing or evidencing or representing ownership of such Collateral.

   

  “Partial PIK Loan” means a Collateral Loan that requires the Obligor to pay only a portion of the accrued and unpaid interest in Cash on a current basis, the remainder of which is or can be deferred and paid later; provided that the portion of such interest required to be paid in Cash pursuant to the terms of the applicable Related Documents carries a current Cash pay interest rate paid (x) at a floating rate of not less than 2.50% per annum over LIBORLondon interbank offered rate or SOFR, as applicable, or (y) at a fixed rate of not less than 6.0% per annum.

   

  “Participant” means any Person to whom a participation is sold as permitted by Section

  15.06(d).

   

  “Participating Member State” means any member state of the European Community that adopts or has adopted the Euro as its lawful currency in accordance with the legislation of the European Union relating to the European Monetary Union.

   

  “Participation Interest” means a participation interest in a loan or other obligation that would, at the time of acquisition, or the Borrower’s commitment to acquire the same, constitute a Collateral Loan.

   

  “PATRIOT Act” has the meaning assigned to such term in Section 15.16.

   

  “Payment Account” means, collectively, the payment accounts of the Collateral Agent established pursuant to Section 8.03(a).

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  8.04.

  “Revolving Reserve Required Amount” has the meaning assigned to such term in Section

   

   

  “RFR”, when used in reference to any Advance or Borrowing, refers to whether such Advance, or the Advances constituting such Borrowing, are bearing interest at a rate determined by reference to Daily Simple RFR for the applicable Currency.

   

  “RFR Administrator” means the SONIA Administrator.

   

  “RFR Administrator’s Website” means the SONIA Administrator’s Website.

   

  “RFR Business Day” means, for any Advances, Borrowings, interest, fees, commissions or other amounts denominated in, or calculated with respect to, Sterling, any day except for (i) a Saturday, (ii) a Sunday or (iii) a day on which banks are closed for general business in London.

  “RFR Interest Day” has the meaning specified in the definition of “Daily Simple RFR”. “RFR Rate” means, for any Advances, Borrowings, interest, fees, commissions or other

  amounts denominated in, or calculated with respect to Sterling, SONIA.

   

  “RFR Reference Day” has the meaning specified in the definition of “Daily Simple RFR”.

   

  “S&P” means Standard & Poor’s Ratings Group.

   

  “S&P Industry Classification” means the industry classifications set forth in Schedule 4 hereto, as such industry classifications shall be updated at the option of the Collateral Manager if S&P publishes revised industry classifications.   The determination of which S&P Industry Classification to which an Obligor belongs shall be made in good faith by the Collateral Manager.

   

  “Scheduled Distribution” means, with respect to any Collateral Loan, for each Due Date, the scheduled payment of principal and/or interest and/or fees due on such Due Date with respect to such Collateral Loan.

   

  “Screen Rate” means each of the LIBOSOFR Screen Rate, the EURIBOR Screen Rate, the

  CDOR Screen Rate and the BBSY Screen Rate.

   

  “SEC” means the Securities and Exchange Commission or any other governmental authority of the United States of America at the time administrating the Securities Act, the Investment Company Act or the Exchange Act.

   

  that:

  “Second Lien Loan” means any Collateral Loan (for purposes of this definition, a “loan”)

   

  (a)	is a First Lien/Last Out Loan; or

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  “Security Entitlement” has the meaning specified in Section 8-102(a)(17) of the UCC.

   

  “Selling Institution” means an entity obligated to make payments to the Borrower under the terms of a Participation Interest.

   

  “Senior Collateral Management Fee” means the monthly fee, accruing from the Closing Date, payable in arrears on each Payment Date for the related Interest Accrual Period, in an amount equal to 0.50% per annum (calculated on the basis of a 360 day year and the actual number of days elapsed) of the Monthly Asset Amount.

   

  “Senior Leverage Ratio” means, with respect to any Collateral Loan for any Relevant Test Period, the meaning of “Senior Leverage Ratio”, “Senior Net Leverage Ratio”, “First Lien Leverage Ratio”, “First Lien Net Leverage Ratio” or any comparable term relating to first lien senior secured (or such applicable lien or applicable level within the capital structure) indebtedness defined in the Related Documents for such Collateral Loan, and in any case that “Senior Leverage Ratio”, “Senior Net Leverage Ratio”, “First Lien Leverage Ratio”, “First Lien Net Leverage Ratio” or such comparable term is not defined in such Related Documents, the ratio of (a) first lien senior secured (or such applicable lien or applicable level within the capital structure) indebtedness minus Unrestricted Cash to (b) EBITDA as calculated by the Collateral Manager in good faith using information from and calculations consistent with the relevant financial models, pro forma financial statements, compliance statements and financial reporting packages provided by the relevant Obligor as per the requirements of the Related Documents.

   

  “Shareholders’ Equity” means, at any date, the amount determined on a consolidated basis, without duplication, in accordance with GAAP, of shareholders’ equity for the Borrower and its Subsidiaries at such date.

   

  “SOFR” means a rate per annum equal to the secured overnight financing rate as administered by the SOFR Administrator.

   

  “SOFR Administrator” means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

   

  “Solvent” means, with respect to any Person, that as of the date of determination, both (i) (a) the sum of such Person’s debt (including contingent liabilities) does not exceed the present fair saleable value of such Person’s present assets; (b) such Person’s capital is not unreasonably small in relation to its business as contemplated on the Closing Date and reflected in the projections delivered in connection with this Agreement or with respect to any transaction contemplated to be undertaken after the Closing Date; and (c) such Person has not incurred and does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond its ability to pay such debts as they become due (whether at maturity or otherwise); and (ii) such Person is “solvent” within the meaning given that term and similar terms under Section 101(32) of the Bankruptcy Code, Section 271 of the Debtor and Creditor Law of the State of New York or other applicable laws relating to fraudulent transfers and conveyances. For purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the

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  facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for accrual under Topic 740 of the Accounting Standards Codification of the Financial Accounting Standards Board).

   

  “SONIA” means a rate equal to the Sterling Overnight Index Average as administered by the SONIA Administrator.

   

  “SONIA Administrator” means the Bank of England (or any successor administrator of the

  Sterling Overnight Index Average).

   

  “SONIA Administrator’s Website” means the Bank of England’s website, currently at http://www.bankofengland.co.uk, or any successor source for the Sterling Overnight Index Average identified as such by the SONIA Administrator from time to time.

   

  “Special Purpose Entity” means a limited liability company or other business entity that is created with the purpose of being “bankruptcy remote” and whose organizational documents contain restrictions on its activities and impose requirements intended to preserve such entity’s separateness that are substantially similar to the special purpose provisions of the Borrower LLC Agreement.

   

  “Specified Eligible Investment” means an Eligible Investment meeting the requirements of Section 8.05(a) and that is available to the Collateral Agent, to be specified by the Collateral Manager to the Collateral Agent (with a copy to the Administrative Agent) on or prior to the initial Borrowing Date; provided that, so long as no Default or Event of Default shall have occurred and then be continuing, at any time with not less than five (5) Business Days’ notice to the Collateral Agent (with a copy to the Administrative Agent) the Collateral Manager may (and, if the-then Specified Eligible Investment is no longer available to the Collateral Agent, shall) designate another Eligible Investment that meets the requirements of Section 8.05(a) and that is available to the Collateral Agent to be the Specified Eligible Investment for purposes hereof.

   

  “Specified LIBOREurocurrency Rate” means at any time:

   

  (a)     if no Advances are bearing interest at the Adjusted Eurocurrency Rate, the rate determined by the Administrative Agent as if (1) Advances having an aggregate principal balance of $10,000,000 were bearing interest at the Adjusted Eurocurrency Rate hereunder and (2) the related Interest Accrual Period were in effect for the period from the immediately preceding Payment Date (or, if prior to the first Payment Date, the Closing Date) through the next following Payment Date;

   

  (b)      if only one Interest Accrual Period for Advances bearing interest at the Adjusted Eurocurrency Rate is outstanding at such time, the Eurocurrency Rate in effect with respect to such Advances for such Interest Accrual Period; and

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  the Adjusted Eurocurrency Rate is outstanding at such time, a rate per annum equal to (1) the sum of the products, for each such Interest Accrual Period, of the Eurocurrency Rate (as determined by the Administrative Agent) in effect with respect to such Interest Accrual Period multiplied by the Dollar Equivalent of the principal amount of Advances then bearing interest at a rate based on such Eurocurrency Rate, divided by (2) the Dollar Equivalent of the aggregate principal amount of all Advances bearing interest at the Adjusted Eurocurrency Rate outstanding at such time, rounded to the nearest 0.01%.

   

  “Split First Lien Loan” means any Collateral Loan that (a) would otherwise satisfy the criteria of a First Lien Loan but which has been structured with a credit facility that is senior in right of payment thereto; and (b) satisfies the following criteria: (i) the aggregate commitment of such senior credit facility is less than or equal to 25.00% of the total first lien indebtedness with respect to such Collateral Loan (including the Split First Lien Loan and such senior credit facility), and (ii) the senior credit facility portion (as measured by commitment) has a trailing twelve-month senior debt to EBITDA ratio of less than or equal to 0.5x.  For the avoidance of doubt, Collateral Loans not satisfying the criteria set forth in this definition may be deemed by the Collateral Manager in its reasonable judgment to be either (x) Split Lien Loans or (y) Second Lien Loans.

   

  “Split Lien Loan” means any Collateral Loan that (a) would otherwise satisfy the criteria of a First Lien Loan but which has been structured with a credit facility that is senior in right of payment with respect to current assets; and (b) satisfies the following criteria: (i) the aggregate commitment of such senior credit facility is less than or equal to 25.00% of the total first lien indebtedness with respect to such Collateral Loan (including the Split Lien Loan and such senior credit facility), and (ii) the senior credit facility portion (as measured by commitment) has a trailing twelve-month senior debt to EBITDA ratio of less than or equal to 1.0x. For the avoidance of doubt, Collateral Loans not satisfying the criteria set forth in this definition may be deemed by the Collateral Manager in its reasonable judgment to be Second Lien Loans.

   

  “Statutory Reserve Rate” means, for the Interest Accrual Period for any Eurocurrency Borrowing, a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the arithmetic mean, taken over each day in such Interest Accrual Period, of the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to which the Administrative Agent is subject for eurocurrency funding (currently referred to as “Eurocurrency liabilities” in Regulation D).   Such reserve percentages shall include those imposed pursuant to Regulation D.  Eurocurrency Borrowings shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under Regulation D or any comparable regulation.  The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

   

  “Stretch Senior Loan” means any Collateral Loan (a) that is secured by a valid and perfected first priority Lien on substantially all of the Obligor’s assets constituting the underlying collateral for such Collateral Loan, subject to Permitted Liens, (b) for which no other secured

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  “Swingline Refinancing Advances” has the meaning assigned to such term in Section

  2.02(c).

   

  “Swingline Refinancing Date” has the meaning assigned to such term in Section 2.02(c).

   

  “Syndicated Advance” has the meaning assigned to such term in Section 2.01.

   

  “Syndicated Borrowing” has the meaning assigned to such term in Section 2.01.

   

  “TARGET Day” means any day on which the Trans-European Automated Real-time Gross Settlement Express Transfer payment system (or any successor settlement system as determined by the Administrative Agent to be a suitable replacement) is open for the settlement of payments in Euros.

   

  “Taxes” has the meaning assigned to such term in Section 15.03(a).

   

  “Term SOFR” has the meaning assigned to such term in clause (a) of the definition of

  Eurocurrency Rate.

   

  “Term SOFR Administrator” means the CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent in its reasonable discretion).

   

  “Term SOFR Reference Rate” means the rate per annum determined by the Administrative

  Agent as the forward-looking term rate based on SOFR.

   

  “Tier 1 Obligor” means an Obligor of any Collateral Loan with EBITDA greater than or equal to $50,000,000 (determined at the most recent to occur of such Collateral Loan’s original date of acquisition by the Borrower or the date of any subsequent increase or modification to such Collateral Loan resulting from a material acquisition by the Obligor).

   

  “Tier 2 Obligor” means an Obligor of any Collateral Loan with either (a) EBITDA greater than or equal to $20,000,000 or (b)(i) EBITDA greater than $5,000,000 and less than $20,000,000 and (ii) a Fixed Charge Coverage Ratio of greater than or equal to 1.25x and a Debt to Capitalization Ratio of no more than 65.0% (in each case, determined at the most recent to occur of such Collateral Loan’s original date of acquisition by the Borrower or the date of any subsequent increase or modification to such Collateral Loan resulting from a material acquisition by the Obligor).

   

  “Tier 3 Obligor” means an Obligor that does not meet the criteria of a Tier 1 Obligor or a

  Tier 2 Obligor.

   

  “Total Leverage Ratio” means, with respect to any Collateral Loan for any Relevant Test Period, the meaning of “Total Leverage Ratio”, “Total Net Leverage Ratio” or any comparable term relating to total indebtedness defined in the Related Documents for such Loan, and in any

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  Advances and Borrowings may also be identified by Currency.

   

  Section 1.06.     Currencies Generally.  At any time, any reference in the definition of the term “Agreed Foreign Currency” or in any other provision of this Agreement to the Currency of any particular nation means the lawful currency of such nation at such time whether or not the name of such Currency is the same as it was on the date hereof. The outstanding principal amount of any Borrowing that is denominated in any Agreed Foreign Currency shall be deemed to be the Dollar Equivalent of the amount of the Agreed Foreign Currency of such Borrowing determined as of the date of such Borrowing.  Wherever in this Agreement (x) in connection with a Borrowing, an amount, such as a required minimum or multiple amount, is expressed in Dollars, but such Borrowing is denominated in an Agreed Foreign Currency or (y) in connection with a Collateral Loan, any applicable criteria including, but not limited to, the Concentration Limitations and the definition of Eligible Collateral Loan, is expressed in Dollars, but such Collateral Loan is denominated in an Agreed Foreign Currency, in each case such amount shall be the relevant Foreign Currency Equivalent of such Dollar amount (rounded to the nearest 1,000 units of such Agreed Foreign Currency).

   

  Section 1.07.     Calculation of Borrowing Base. In connection with amounts to be calculated for purposes of determining the Borrowing Base and generally preparing the Borrowing Base Calculation Statement, all amounts shall be expressed in Dollars.   If any such amount is denominated in an Agreed Foreign Currency, such amount shall be the relevant Foreign Currency Equivalent of such Dollar amount (rounded to the nearest 1,000 units of such Agreed Foreign Currency).

   

   

   

   

  Section 1.08.      LIBOR.    The  London  interbank  offered  rate  (“LIBOR”)  is  intended  to represent the rate at which contributing banks could obtain short-term borrowings from one another in the London interbank market. On March 5, 2021, the Financial Conduct Authority (“FCA”), the regulatory supervisor of LIBOR's administrator, announced in a public statement the future cessation of the 35 LIBOR benchmark settings currently published by ICE Benchmark administration. This public statement constitutes a Benchmark Transition Event. To the extent the Final Maturity Date goes beyond the cessation dates indicated in the FCA’s announcement, an alternate rate of interest will be determined at the appropriate time in accordance with Section

  2.11(b)(i) for any applicable tenors of USD LIBOR.Rates.  Upon the occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, Section 2.11(b)(i) and (ii) provide the mechanism for determining an alternative rate of interest. The Administrative Agent will promptly notify the Borrower, pursuant to Section 2.11(b)(iv), of any change to the reference rates upon which the interest rates on Eurocurrency Advances are based. However, the Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to LIBOR, the Base Rate, the Term SOFR Reference Rate, Term SOFR, or other rates in the definitions of “Adjusted Eurocurrency Rate”, “Eurocurrency Rate” and “RFR Rate” or with respect to any alternative or successor rate thereto, or replacement rate thereof (including, without limitation, (i) any such alternative, successor or replacement rate implemented pursuant to Section 2.11(b)(i) or

   

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  (ii), whether upon the occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, as applicable, and (ii) the implementation of any Benchmark Replacement Conforming Changes pursuant to Section 2.11(b)(iii)), including without limitation, whether the composition or characteristics of any such alternative, successor or replacement reference rate will be similar to, or produce the same value or economic equivalence of, the Base Rate, the Term SOFR Reference Rate, Term SOFR, Adjusted Eurocurrency Rate or RFR Rate, as applicable, or have the same volume or liquidity as did the the Base Rate, the Term SOFR Reference Rate, Term SOFR, Adjusted Eurocurrency Rate or RFR Rate, as applicable, prior to its discontinuance or unavailability.

   

  ARTICLE II ADVANCES

  Section 2.01.	Revolving Credit Facility.	On  the terms and subject to  the conditions hereinafter set forth, including Article III:

   

  (a)     each Lender severally agrees to make loans in Dollars and in Agreed Foreign Currencies to the Borrower (each, a “Syndicated Advance”) from time to time on any Business Day during the period from the Funding Effective Date until the Commitment Termination Date (or thereafter pursuant to Section 8.04), on a pro rata basis in each case in an aggregate principal amount at any one time outstanding up to but not exceeding such Lender’s Commitment and, as to all Lenders, in an aggregate principal amount up to but not exceeding the Maximum Available Amount as then in effect.

   

  (b)      the Swingline Lender agrees to make loans in Dollars (each, a “Swingline Advance” and, together with the Syndicated Advances, the “Advances”) to the Borrower from time to time on any Business Day during the period from the Funding Effective Date until the date that is five (5) Business Days prior to the Commitment Termination Date (the “Swingline Facility End Date”) in an aggregate principal amount at any one time outstanding up to but not exceeding the lesser of (i) $20,000,000 and (ii) the aggregate unused Commitment of the Swingline Lender. Anything contained in the foregoing to the contrary notwithstanding, the undertaking of the Swingline Lender to make Swingline Advances shall be subject to all of the terms and conditions of this Agreement, and Swingline Lender shall not make any Swingline Advances if any of the conditions precedent in Section 3.02 are not satisfied; provided that the Swingline Lender shall be entitled to assume that the conditions precedent to an advance of any Swingline Advance have been satisfied unless notified to the contrary by the Administrative Agent, the Collateral Agent, the Majority Lenders, the Borrower or the Collateral Manager on the Borrower’s behalf.

   

  Each such borrowing of a Syndicated Advance on any single day is referred to herein as a “Syndicated Borrowing”; each such borrowing of a Swingline Advance on any single day is referred to herein as a “Swingline Borrowing”; and Syndicated Borrowings and Swingline Borrowings are referred to herein collectively as “Borrowings”.

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  in which such obligations, interest, fees, commissions or other amounts are denominated or any central bank or other supervisor which is responsible for supervising either (A) such Benchmark Replacement or (B) the administrator of such Benchmark Replacement or (2) any working group or committee officially endorsed or convened by (A) the central bank for the Currency in which such obligations, interest, fees, commissions or other amounts are denominated, (B) any central bank or other supervisor that is responsible for supervising either (i) such Benchmark Replacement or (ii) the administrator of such Benchmark Replacement, (C) a group of those central banks or other supervisors or (D) the Financial Stability Board or any part thereof.

   

  “SOFR” means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator’s Website at approximately 8:00 a.m. (New York City time) on the immediately succeeding Business Day.

   

  “SOFR Administrator” means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

   

  “SOFR Administrator’s Website” means the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

   

  “Term SOFR” means, for the applicable Corresponding Tenor as of the applicable Reference Time, the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.

   

  “Term SOFR Notice” means a notification by the Administrative Agent to the Lenders and the Borrower of the occurrence of a Term SOFR Transition Event.

   

  “Term SOFR Transition Event” means the determination by the Administrative Agent that (a) Term SOFR has been recommended for use by the Relevant Governmental Body, (b) the administration of Term SOFR is administratively feasible for the Administrative Agent and (c) a Benchmark Transition Event has previously occurred resulting in a Benchmark Replacement for Dollars in accordance with this Section 2.11(b) that is not Term SOFR.

   

  “Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

   

  Section 2.12.     Rescission or Return of Payment.  The Borrower agrees that, if at any time (including after the occurrence of the Final Maturity Date) all or any part of any payment theretofore made by it to any Secured Party or any designee of a Secured Party is or must be rescinded or returned for any reason whatsoever (including the insolvency, bankruptcy or reorganization of the Borrower or any of its Affiliates), the obligation of the Borrower to make such payment to such Secured Party shall, for the purposes of this Agreement, to the extent that such payment is or must be rescinded or returned, be deemed to have continued in existence and this Agreement shall continue to be effective or be reinstated, as the case maybe, as to such

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  unreasonable manner.

   

  If the Collateral Agent has been requested or directed by the Required Lenders to take any action pursuant to any provision of this Agreement or any other Facility Document, the Collateral Agent shall not be under any obligation to exercise any of the rights or powers vested in it by this Agreement or such Facility Document in the manner so requested unless it shall have been provided indemnity reasonably satisfactory to it against the costs, expenses and liabilities which may be incurred by it in compliance with or in performing such request or direction. No provision of this Agreement or any Facility Document shall otherwise be construed to require the Collateral Agent to expend or risk its own funds or to take any action that could in its judgment cause it to incur any cost, expenses or liability, unless it is provided indemnity acceptable to it against any such expenditure, risk, costs, expense or liability. For the avoidance of doubt, the Collateral Agent shall not have any duty or obligation to take any affirmative action to exercise or enforce any power, right or remedy available to it under this Agreement or any Facility Document or Related Document unless and until directed by the Required Lenders (or the Administrative Agent on their behalf).

   

  Neither the Collateral Agent nor any officer, agent or representative thereof shall be personally liable for any action taken by any such person in accordance with any notice given by the Required Lenders (or the Administrative Agent on their behalf) pursuant to the terms of this Agreement or any other Facility Document even if, at the time such action is taken by any such person, the Required Lenders or persons purporting to be the Required Lenders are not entitled to give such notice, except where the Responsible Officer of the Collateral Agent has actual knowledge (without any duty of inquiry or investigation on its part) that such Required Lenders or persons purporting to be the Required Lenders are not entitled to give such notice. If any dispute or disagreement shall arise as to the allocation of any sum of money received by the Collateral Agent hereunder or under any Facility Document, the Collateral Agent shall have the right to deliver such sum to a court of competent jurisdiction and therein commence an action for interpleader.

   

  If in performing its duties under this Agreement, the Collateral Agent is required to decide between alternative courses of action, it may request written instructions from the Administrative Agent as to the course of action desired by it.   If the Collateral Agent does not receive such instructions within two (2) Business Days after it has requested them, the Collateral Agent may, but shall be under no duty to, take or refrain from taking any such courses of action. The Collateral Agent shall act in accordance with instructions received after such two-Business Day period except to the extent it has already, in good faith, taken or committed itself to take, action inconsistent with such instructions.

   

  The Collateral Agent, the Collateral Administrator, the Backup Collateral Manager and the Custodian shall be under no obligation to (i) monitor, determine or verify the unavailability or cessation of LIBOR,  LIBO Screen Rate, Daily Simple SOFR, Daily Simple RFR, SOFR, Term SOFR, Benchmark, Benchmark Replacement (or other applicable interest rate), or whether or when there has occurred, or to give notice to any other transaction party of the occurrence of (except as expressly provided herein), any Benchmark Transition Event or any amendment or

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  change required to be made to the applicable interest rate, (ii) select, determine or designate any LIBOR, LIBO Screen Rate, Daily Simple SOFR, Daily Simple RFR, SOFR, Term SOFR, Benchmark, Benchmark Replacement or other successor or replacement benchmark index, or whether any conditions to the designation of such a rate have been satisfied, (iii) select, determine or designate any Benchmark Replacement Adjustment or other modifier to any replacement or successor index, or (iv) determine whether or what Benchmark Replacement Conforming Changes are necessary or advisable, if any, in connection with any of the foregoing.

   

  The Collateral Agent, the Collateral Administrator, the Backup Collateral Manager and the Custodian shall not be liable for any inability, failure or delay on its part to perform any of its duties set forth in this Agreement as a result of the unavailability of LIBOR,  LIBO Screen Rate, Daily Simple SOFR, Daily Simple RFR, SOFR, Term SOFR, Benchmark, Benchmark Replacement (or other applicable interest rate) and absence of a designated replacement Interest Rate, including as a result of any inability, delay, error or inaccuracy on the part of any other transaction party, including without limitation the Administrative Agent or any Lender, in providing any direction, instruction, notice or information required or contemplated by the terms of this Agreement and reasonably required for the performance of such duties.

   

  Section 12.02.     Delegation of Duties.  Each Agent may execute any of its duties under this Agreement and each other Facility Document by or through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. No Agent shall be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care.

   

  Section 12.03.     Agent’s Reliance, Etc.  (a) Neither Agent nor any of its respective directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it or them under or in connection with this Agreement or any of the other Facility Documents, except for its or their own gross negligence or willful misconduct. Without limiting the generality of the foregoing, each Agent: (i) may consult with legal counsel (including, without limitation, counsel for the Borrower or the Collateral Manager or any of their Affiliates) and independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (ii) makes no warranty or representation to any Secured Party or any other Person and shall not be responsible to any Secured Party or any Person for any statements, warranties or representations (whether written or oral) made in or in connection with this Agreement or the other Facility Documents; (iii) shall not have any duty to monitor, ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement, the other Facility Documents or any Related Documents on the part of the Borrower or the Collateral Manager or any other Person or to inspect the property (including the books and records) of the Borrower or the Collateral Manager; (iv) shall not be responsible to any Secured Party or any other Person for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of any Collateral, this Agreement, the other Facility Documents, any Related Document or any other instrument or document furnished pursuant hereto or thereto or for the validity, perfection, priority or enforceability of the Liens on the Collateral; and (v) shall incur no liability under or in respect of this Agreement or any other Facility Document by relying on, acting upon (or by refraining from

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  Revolving Credit and Security Agreement (2021) 4817-1653-3999 v14.docExhibit 10.1

 

METEN EDTECHX EDUCATION GROUP LTD.

 

2020 SHARE INCENTIVE PLAN

 

As Amended and Restated effective as of May
15, 2022

 

1. Purposes of
the Plan. The purposes of this 2020 Share Incentive Plan are to attract and retain the best available personnel for positions
of substantial responsibility, to provide additional incentive to Employees and Consultants, and to promote the success of the Company’s
business.

 

This Plan was adopted by the
Company in connection with the consummation of the Business Combination and the assumption by the Company pursuant to the Business Combination
of outstanding awards previously granted to employees and other service providers under the Prior Plan (the “Assumed Awards”).
The Board amended the Plan on November 23, 2020 and on May 15, 2022.

 

This Plan is intended to constitute
an amendment and restatement and continuation of the Prior Plan, such that from and after the assumption of the Assumed Awards by the
Company in the Business Combination, the Assumed Awards shall be deemed granted under and governed by this Plan, it being understood that
the adoption of this Plan is not intended to modify the terms and conditions of any Assumed Awards. In connection with the Business Combination,
the Assumed Awards are being adjusted as required under the terms of the Prior Plan, as set forth in a written notice provided or to be
provided to each applicable Participant, and the terms and conditions of such Assumed Awards shall otherwise continue to be as set forth
in the applicable Award Agreements covering each of the Assumed Awards.

 

In addition to the Assumed
Awards, from and after the time of the Business Combination, the Company intends to use this Plan to grant new Awards to eligible Employees
and Consultants from time to time, subject to and in accordance with the terms and conditions described herein.

 

2. Definitions. As used herein, the following definitions shall apply:

 

(a) “Administrator” means
the Board, a Committee or any delegate of the Board or a Committee, in any case acting in its capacity as administrator of the Plan,
as described in Section 5.

 

(b) “Applicable
Laws” means all applicable laws, rules, regulations and requirements, including, but not limited to, any Share Exchange
rules or regulations, and the applicable laws, rules or regulations of any jurisdiction where Awards are granted under the Plan
or Participants reside or provide services, as such laws, rules, and regulations shall be in effect from time to time.

 

(c) “Assumed Award”
has the meaning set forth in Section 1.

 

(d) “Award” means
any of the following awards authorized for issuance or grant under the Plan: Options, share appreciation rights, Share awards, restricted
share units, dividend equivalents or other Share-based awards.

 

(e) “Award
Agreement” means a written document (which may be in electronic form), the form(s) of which shall be approved
from time to time by the Administrator, reflecting the terms of an Award granted under the Plan and includes any documents attached to
or incorporated into such Award Agreement, including, but not limited to, a notice of grant, purchase agreement, or exercise notice, as
applicable. For the avoidance of doubt, award agreements previously entered into with respect to Assumed Awards shall constitute Award
Agreements for all purposes hereunder.

 

(f) “Board” means
the Board of Directors of the Company.

 

(g) “Business Combination”
means the transactions contemplated by that certain Agreement and Plan of Reorganization dated as of December 12, 2019, by and among by
and among the Company, EdtechX Holdings Acquisition Corp., Meten Education Inc., Meten Education Group Ltd., and Meten International Education
Group, as amended from time to time.

 

     

     

    

 

(h) “Cause” for
termination of a Participant’s Continuous Service Status will exist (unless another definition is provided in an applicable Award
Agreement, employment agreement or other applicable written agreement) if the Participant’s Continuous Service Status is terminated
for any of the following reasons:  (i) any material breach by Participant of any material written agreement between Participant
and any of the Company, its Parent or Subsidiary, as the case may be, and Participant’s failure to cure such breach within 30 days
after receiving written notice thereof; (ii) any failure by Participant to comply with material written policies or rules of
the Company, its Parent or Subsidiary, as the case may be, as they may be in effect from time to time; (iii) Participant’s
repeated failure to follow reasonable and lawful instructions from the Board or chief executive officer and Participant’s failure
to cure such condition within 30 days after receiving written notice thereof; (iv) Participant’s conviction of, or plea of
guilty or nolo contendere to, any crime that results in, or is reasonably expected to result in, material harm to the business or reputation
of the Company; (v) Participant’s commission of or participation in an act of fraud against the Company, its Parent or
Subsidiary; (vi) Participant’s intentional material damage to the Company’s business, property or reputation; (vii) Participant’s
unauthorized use or disclosure of any proprietary information or trade secrets of the Company, its Parent or Subsidiary, or any other
party to whom the Participant owes an obligation of nondisclosure as a result of his or her relationship with the Company, its Parent
or Subsidiary; or (viii) any breach by Participant of any non-disclosure undertakings/agreements or non-competition undertakings/agreements
between Participant and the Company, its Parent or Subsidiary.  For purposes of clarity, a termination without “Cause”
does not include any termination that occurs as a result of Participant’s death or disability.  The determination as to whether
a Participant’s Continuous Service Status has been terminated for Cause shall be made in good faith by the Company and shall be
final and binding on the Participant.  The foregoing definition does not in any way limit the Company’s ability to terminate
a Participant’s employment, consulting or other service relationship at any time, and the term “Company” will be interpreted
to include any Parent or Subsidiary, or any successor thereto, if appropriate.

 

(i) “Change
of Control” means (unless another definition is provided in an applicable Award Agreement, employment agreement or
other applicable written agreement) any of the following transactions, provided, however, that the Administrator shall determine under
(iii) and (iv) whether multiple transactions are related, and its determination shall be final, binding and conclusive:

 

(i) an amalgamation, arrangement
or consolidation or scheme of arrangement (A) in which the Company is not the surviving entity, and (B) following which the
holders of the voting securities of the Company do not continue to hold more than 50% of the combined voting power of the voting securities
of the surviving entity;

 

(ii) the sale, transfer or
other disposition of all or substantially all of the assets of the Company;

 

(iii) a change in the composition
of the Board over a period of 24 consecutive months or less such that a majority of the Board members ceases to be comprised of individuals
who either (A) have been Board members continuously since the beginning of such period (“Incumbent Directors”) or (B) have
been elected or nominated for election as Board members during such period by at least a majority of the Incumbent Directors who were
still in office at the time the Board approved such election or nomination; provided that any individual who becomes a Board member subsequent
to the beginning of such period and whose election or nomination was approved by two-thirds of the Board members then comprising the Incumbent
Directors will be considered an Incumbent Director;

 

(iv) any reverse takeover
or series of related transactions culminating in a reverse takeover (including, but not limited to, a tender offer followed by a reverse
takeover) in which the Company is the surviving entity but (A) the Company’s equity securities outstanding immediately prior
to such takeover are converted or exchanged by virtue of the takeover into other property, whether in the form of securities, cash or
otherwise, or (B) in which securities possessing more than 50% of the total combined voting power of the Company’s outstanding
securities are transferred to a person or persons different from those who held such securities immediately prior to such takeover or
the initial transaction culminating in such takeover, but excluding any such transaction or series of related transactions that the Administrator
determines shall not be a Change of Control; or

 

    2

     

    

 

(v) acquisition in a single
or series of related transactions by any person or related group of persons (other than the Company or by a Company-sponsored employee
benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than 50%
of the total combined voting power of the Company’s outstanding securities but excluding any such transaction or series of related
transactions that the Administrator determines shall not be a Change of Control.

 

(j) “Code” means
the United States Internal Revenue Code of 1986, as amended.

 

(k) “Committee” means
one or more committees or subcommittees of the Board consisting of two or more Directors (or such lesser or greater number of Directors
as shall constitute the minimum number permitted by Applicable Laws to establish a committee or subcommittee of the Board) appointed by
the Board to administer the Plan in accordance with Section 5 below.

 

(l) “Company” means
Meten EdtechX Education Group Ltd., a company incorporated under the laws of the Cayman Islands, and any successor company to all or substantially
all of the assets or voting shares of Meten EdtechX Education Group Ltd.

 

(m) “Consultant” means
any individual consultant or advisor who renders services to the Company, or any Parent or Subsidiary and is compensated for such services,
and any director of the Board, or the board of directors of any Parent or Subsidiary whether compensated for such services or not.

 

(n) “Continuous
Service Status” means the following:

 

(i) Continuous Service Status
shall have the meaning assigned to such term in the Award Agreement for the particular Award or in any other agreement incorporated by
reference into the Award Agreement for purposes of defining such term.

 

(ii) In the absence of any
other definition of Continuous Service Status in the Award Agreement for a particular Award (or in any other agreement incorporated by
reference into the Award Agreement), Continuous Service Status means the absence of any interruption or termination of service as
an Employee or Consultant.  For purposes of this particular definition of Continuous Service Status, a Participant shall be deemed
to cease Continuous Service Status immediately upon the occurrence of either of the following events:  (A) the Participant no
longer performs services as an Employee or Consultant for the Company or any Parent or Subsidiary or (B) the entity for which the
Participant is performing such services ceases to remain a Parent or Subsidiary of the Company, even though the Participant may subsequently
continue to perform services for that entity.  Continuous Service Status as an Employee or Consultant shall not be considered interrupted
or terminated in the case of:  (A) Company approved sick leave; (B) military leave; or (C) any other bona fide leave
of absence approved by the Company, provided that, if an Employee is holding an Incentive Share Option and such leave exceeds 3 months
then, for purposes of Incentive Share Option status only, such Employee’s service as an Employee shall be deemed terminated on the
1st day following such 3-month period and the Incentive Share Option shall thereafter automatically become a Nonstatutory Share Option
in accordance with Applicable Laws, unless reemployment upon the expiration of such leave is guaranteed by contract or statute, or unless
provided otherwise pursuant to a written Company policy.  Except to the extent otherwise required by Applicable Law or expressly
authorized by the Administrator or by the Company’s written policy on leaves of absence, a Participant shall not be deemed to be
in Continuous Service Status for vesting purposes for any period the Participant is on a leave of absence.  Continuous Service Status
as an Employee or Consultant shall not be considered interrupted or terminated in the case of a transfer between locations of the Company
or between the Company, its Parents or Subsidiaries, or their respective successors, or a change in status from an Employee to a Consultant
or from a Consultant to an Employee.

  

(o) “Control” means
the power or authority, whether exercised or not, to direct the business, management and policies of a person, directly or indirectly,
or by effective control whether through the ownership of voting securities, by contract or otherwise, which power or authority shall conclusively
be presumed to exist upon possession of beneficial ownership or power to direct the vote of more than 50% of the votes entitled to be
cast at a meeting of the members or shareholders of such person or power to control the composition of the board of directors of such
person; the terms “Controlled” and “Controlling” have the meaning correlative to the foregoing.

 

    3

     

    

 

(p) “Director” means
a member of the Board.

 

(q) “Disability” means
(unless another definition is provided in an applicable Award Agreement, employment agreement or other applicable written agreement) that
the Participant qualifies to receive long-term disability payments under the Participant’s employer’s long-term disability
insurance program, as it may be amended from time to time, regardless of whether the Participant is covered by such policy.  If the
Participant’s employer does not have a long-term disability plan in place, “Disability” means that a Participant is
unable to carry out the responsibilities and functions of the position held by the Participant by reason of any medically determinable
physical or mental impairment for a period of not less than 90 consecutive days. A Participant will not be considered to have incurred
a Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator in its discretion. Notwithstanding
the foregoing, with respect to any Incentive Share Option, “Disability” shall mean “disability” within the meaning
of Section 22(e)(3) of the Code.

 

(r) “Employee” means
any person employed by the Company, or any Parent or Subsidiary, with the status of employment determined pursuant to such factors as
are deemed appropriate by the Company in its sole discretion, subject to any requirements of Applicable Laws.  The payment by the
Company of a director’s fee shall not be sufficient to constitute “employment” of such director by the Company or any
Parent or Subsidiary.

 

(s) “Exchange
Act” means the United States Securities Exchange Act of 1934, as amended.

 

(t) “Fair Market
Value” means, except as otherwise provided in the applicable Award Agreement, (i) the closing per Share sales
price of the Shares (A) as reported for such date by the stock exchange on which the Shares are listed or (B) if the Shares
(or other securities representing the Shares) are listed on any other national stock exchange, as reported on the stock exchange composite
tape for securities traded on such stock exchange for such date or, with respect to each of clauses (A) and (B), if there were
no sales on such date, on the closest preceding date on which there were sales of Shares or (ii) in the event there shall be no public
market for the Shares on such date, the fair market value of the Shares as determined in good faith by the Administrator.

 

(u) “Family
Members” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece,
nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law (including adoptive relationships)
of the Participant, any person sharing the Participant’s household (other than a tenant or employee), a trust in which these persons
(or the Participant) have more than 50% of the beneficial interest, a foundation in which these persons (or the Participant) control the
management of assets, and any other entity in which these persons (or the Participant) own more than 50% of the voting interests.

 

(v) “Incentive
Share Option” means an Option intended to, and which does, in fact, qualify as an incentive share option within the
meaning of Section 422 of the Code.

 

(w) “Nonstatutory
Share Option” means an Option that is not intended to, or does not, in fact, qualify as an Incentive Share Option.

 

(x) “Option” means
a share option granted pursuant to the Plan.

 

(y) “Optioned
Shares” means Shares that are subject to an Option or that were issued pursuant to the exercise of an Option.

  

(z) “Optionee” means
an Employee or Consultant who receives an Option.

 

(aa) “Parent” means
any corporation (other than the Company) in an unbroken chain of corporations ending with the Company if each of the corporations other
than the Company owns shares possessing 50% or more of the total combined voting power of all classes of shares in one of the other corporations
in such chain.

 

(bb) “Participant” means
any holder of one or more Awards or Shares issued pursuant to an Award.

 

(cc) “Plan” means
this 2020 Share Incentive Plan.

 

    4

     

    

 

(dd) “Plan
Effective Date” has the meaning set forth in Section 7.

 

(ee) “PRC” means
People’s Republic of China, excluding, for the purposes of this Plan, the Award Agreement and any Award granted pursuant to this
Plan, Hong Kong, the Macau Special Administrative Region and the island of Taiwan.

 

(ff) “Prior
Plan” means the Meten International Education Group 2018 Share Incentive Plan.

 

(gg) “Rule 16b-3” means
Rule 16b-3 promulgated under the Exchange Act, as amended from time to time, or any successor provision.

 

(hh) “Share” means
the Company’s ordinary shares, as may be adjusted in accordance with Section 17 below.

(ii) “Share Consolidation” means
the share consolidation of 30 ordinary shares with par value of US$0.0001 each in the Company’s issued and unissued share capital
into one ordinary share with par value of US$0.003 each of the Company effective on May 4, 2022.

 

(jj) “Share
Exchange” means any share exchange or consolidated share price reporting system on which prices for the Shares are
quoted at any given time.

 

(kk) “Subsidiary” means
any corporation or other entity (i) of which a majority of the outstanding voting shares or voting power is owned or directed directly
or indirectly by the Company, or (ii) that is Controlled by or under common Control with the Company.  Notwithstanding the foregoing,
with respect to any Incentive Share Option, “Subsidiary” shall mean any corporation (other than the Company) in an unbroken
chain of corporations beginning with the Company if each of the corporations other than the last corporation in the unbroken chain owns
shares possessing 50% or more of the total combined voting power of all classes of shares in one of the other corporations in such chain.

 

(ll) “Ten Percent
Holder” means a person who owns shares (as determined under Code Section 424(d)) representing more than 10% of
the voting power of all classes of shares of the Company or any Parent or Subsidiary measured as of an Award’s date of grant.

 

(mm) “Withholding
Taxes” shall mean the applicable federal, state, local and foreign income and employment withholding taxes and other
payments to which the holder of an Award under the Plan may become subject in connection with the issuance, exercise, vesting or settlement
of that Award.

 

3. Awards. 
Awards under the Plan may consist of (i) Options, (ii) share appreciation rights, (iii) share awards, (iv) restricted
share units, (iv) dividend equivalents and (v) other share-based awards.

 

4. Shares Subject
to the Plan.

 

(a) Subject to the provisions
of Section 17 below, the maximum aggregate number of Shares that may be issued under the Plan is initially the sum of (i) 101,690
Shares underlying the Assumed Awards (which has reflected the Share Consolidation), and (ii) one percent (1%) of the total issued and
outstanding ordinary shares of the Company upon the consummation of the Business Combination. The Shares issued under the Plan may be
authorized, but unissued, or reacquired Shares (subject to Applicable Laws), including Shares repurchased by the Company on the open market.

  

(b) The number of Shares available
for issuance under the Plan shall automatically increase on the first trading day in January each calendar year during the term of
the Plan, beginning on the first trading day in January 2020, by an amount equal to 3.5% of the total number of Shares outstanding
as measured as of the last trading day in the immediately preceding calendar year, or such fewer number of Shares as determined by the
Board, but in no event shall any such annual increase exceed 2,200,000 Shares. For the calendar year 2022, however, the additional number
of Shares available for issuance shall be measured by an amount equal to 3.5% of such total number of Shares outstanding as of December
31, 2021 retroactively adjusted to reflect the Share Consolidation.

 

    5

     

    

 

(c) If an Award (including an
Assumed Award) should expire, terminate, be forfeited or cancelled or become unexercisable for any reason without having been exercised
in full, or is surrendered pursuant to Section 14, the unissued Shares that were subject thereto shall, unless the Plan shall have
been terminated, continue to be available under the Plan for issuance pursuant to future Awards.  In addition, any Shares that are
retained by the Company, and any Shares tendered by the Participant, in either case, upon exercise of an Award (including an Assumed Award)
in order to satisfy the exercise or purchase price for such Award, and Shares withheld by the Company or tendered by the Participant in
payment of the withholding taxes relating to an Award (including an Assumed Award), shall be treated as not issued and shall continue
to be available under the Plan for issuance pursuant to future Awards.  Shares issued under the Plan (including an Assumed Award)
and later forfeited to the Company due to the failure to vest or repurchased by the Company at the original purchase price paid to the
Company for the Shares (including, without limitation, upon forfeiture to or repurchase by the Company in connection with the termination
of a Participant’s Continuous Service Status) shall again be available for future grant under the Plan.  Upon the exercise
of any share appreciation right under the Plan, the number of Shares available for issuance under the Plan shall be reduced only by the
net number of Shares actually issued by the Company upon such exercise.

 

(d) Notwithstanding the foregoing,
subject to the provisions of Section 17 below, the maximum aggregate number of Shares that may be issued under the Plan pursuant
to Incentive Share Options shall be the number set forth in the first sentence of Section 4(a) plus, to the extent allowable
under Section 422 of the Code and the United States Treasury Regulations promulgated thereunder, any Shares that again become available
for issuance pursuant to the remaining provisions of this Section 4. Such share limitation shall automatically be increased
pursuant to the provisions of subsection (b) above.

 

(e) Outstanding Awards granted
pursuant to the Plan shall in no way effect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital
or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

 

(f) Substitute Awards (as defined
below) shall not reduce the Shares authorized for issuance under the Plan, nor shall Shares subject to a terminated, cancelled or forfeited
Substitute Award be added to the Shares available for issuance under the Plan as provided above.  Additionally, except with respect
to the Prior Plan, in the event that a company acquired by the Company or any Subsidiary (or Parent) or with which the Company or any
Subsidiary (or Parent) combines has shares available under a pre-existing plan approved by shareholders and not adopted in contemplation
of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the
extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination
to determine the consideration payable to the holders of shares of the entities party to such acquisition or combination) may be used
for Awards under the Plan and shall not reduce the Shares authorized for issuance under the Plan (and Shares subject to such Awards shall
not be added to the Shares available for issuance under the Plan as provided above), provided that Awards using such available Shares
shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition
or combination, and shall only be made to individuals who were not Employees or Consultants prior to such acquisition or combination. 
For purposes of this section, “Substitute Awards” shall mean Awards granted or Shares issued by the Company in assumption
of, or in substitution or exchange for, awards previously granted, or the right or obligation to make future awards, in each case by a
company acquired by the Company or any Subsidiary (or Parent) or with which the Company or any Subsidiary (or Parent) combines, which
shall not include the Assumed Awards.

 

5. Administration
of the Plan.

 

(a) General. The Plan shall be administered by the Board, a Committee appointed by the Board, or any combination thereof, as determined by the Board
in accordance with Applicable Laws.  The Plan may be administered by different Committees (that may be different administrative bodies)
with respect to different classes of Participants, as determined by the Board and as may be required by Applicable Laws. If permitted
by Applicable Laws, the Board may authorize one or more officers of the Company to make Awards under the Plan to Employees and Consultants
(who are not subject to Section 16 of the Exchange Act) within parameters specified by the Board.  The Board may, at any time,
terminate the functions of any Committee or officer under the Plan and resume all powers and authority previously delegated to such Committee
or officer.  Decisions of the Administrator shall be final and binding on all parties who have an interest in the Plan or any Award
thereunder.

 

    6

     

    

 

(b) Committee Composition. If
a Committee has been appointed pursuant to this Section 5, such Committee shall continue to serve in its designated capacity until
otherwise directed by the Board. From time to time the Board may increase the size of any Committee and appoint additional members
thereof, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies (however caused) and
dissolve a Committee and thereafter directly administer the Plan, all to the extent permitted by Applicable Laws and, in the case of
a Committee administering the Plan in accordance with the requirements of Rule 16b-3, to the extent permitted or required by such
provision.

 

(c) Powers of the
Administrator. Subject to the provisions of the Plan and, in the case of a Committee, the specific duties delegated by the
Board to such Committee, the Administrator shall have the authority, in its sole discretion:

 

(i) to determine the Fair
Market Value in accordance with the Plan, provided that such determination shall be applied consistently with respect to Participants
under the Plan;

 

(ii) to select the Employees
and Consultants to whom Awards may from time to time be granted and the time or times when those Awards are to be made;

 

(iii) to determine the number
of Shares to be covered by each Award;

 

(iv) to approve the form(s) of
agreement(s) and other related documents used under the Plan;

 

(v) to determine the terms
and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder, which terms and conditions include but are
not limited to the exercise or purchase price, the time or times when Awards may vest and/or be exercised (which may be based on performance
criteria), the circumstances (if any) when vesting will be accelerated or forfeiture restrictions will be waived, the maximum term for
which an Award is to remain outstanding, the cash consideration (if any) payable for the Shares under an Award, the form (cash or Shares)
in which the Award is to be settled, the status of a granted Option as either an Incentive Share Option or Nonstatutory Share Option,
and any restriction or limitation regarding any Award, or Optioned Shares;

 

(vi) to amend any outstanding
Award or agreement related to any Optioned Shares or Award, including any amendment adjusting vesting (e.g., in connection with a change
in the terms or conditions under which such person is providing services to the Company), provided that no amendment shall be made that
would materially and adversely affect the rights of any Participant without his or her consent; 

 

(vii) subject to Applicable
Laws, to implement a repricing program, as set forth in Section 14, and establish the terms and conditions of such program without
consent of the holders of capital shares of the Company, provided that no amendment or adjustment to an Option or SAR that would materially
and adversely affect the rights of any Participant shall be made without his or her consent;

 

(viii) to approve addenda
pursuant to Section 24 below or to grant Awards to, or to modify the terms of, any outstanding Award Agreement or any agreement related
to any Optioned Shares or Award held by Participants who are foreign nationals or employed outside of the PRC with such terms and conditions
as the Administrator deems necessary or appropriate to accommodate differences in local law, tax policy or custom which deviate from the
terms and conditions set forth in this Plan to the extent necessary or appropriate to accommodate such differences;

 

(ix) implement any procedures,
steps, additional or different requirements as may be necessary to comply with any laws of the PRC or any other country that may be applicable
to the Plan, any Award or any related documents, including but not limited to foreign exchange laws, tax laws and securities laws of the
PRC or any other applicable country; and

 

    7

     

    

 

(x) to construe and interpret
the terms of the Plan, any Award Agreement, and any agreement related to any Optioned Shares or Awards, which constructions, interpretations
and decisions shall be final and binding on all Participants.

 

(d) Indemnification. 
To the maximum extent permitted by Applicable Laws, each member of the Committee (including officers of the Company, if applicable), and
of the Board, and any delegate of the Board or a Committee, as applicable, shall be indemnified and held harmless by the Company against
and from (i) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with
or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason
of any action taken or failure to act under the Plan or pursuant to the terms and conditions of any Award except for actions taken in
bad faith or failures to act in good faith, and (ii) any and all amounts paid by him or her in settlement thereof, with the Company’s
approval, or paid by him or her in satisfaction of any judgment in any such claim, action, suit, or proceeding against him or her, provided
that such member shall give the Company an opportunity, at its own expense, to handle and defend any such claim, action, suit or proceeding
before he or she undertakes to handle and defend it on his or her own behalf.  The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Memorandum and Articles
of Association, as amended from time to time, by contract, as a matter of law, or otherwise, or under any other power that the Company
may have to indemnify or hold harmless each such person.

 

6. Eligibility.

 

(a) Recipients of
Grants. Employees and Consultants are eligible to participate in the Plan.

 

(b) No Employment
or Service Rights. Neither the Plan nor any Award shall confer upon any Employee or Consultant any right with respect to
continuation of an employment, consulting or other service relationship with the Company (any Parent or Subsidiary), nor shall it interfere
in any way with such Employee’s or Consultant’s right or the Company’s (Parent’s or Subsidiary’s) right
to terminate his or her employment, consulting or other service relationship at any time, with or without Cause.

 

7. Term of Plan. The Plan became effective upon the closing of the Business Combination (the “Plan Effective Date”) and shall continue in effect
for a term of five (5) years unless sooner terminated under Section 21 below.  All Awards outstanding at the time of the termination
of the Plan shall continue to have full force and effect in accordance with the provisions of the documents evidencing those Awards.

  

8. Options.

 

(a) Authority. The Administrator shall have full power and authority, exercisable in its sole discretion, to grant Options evidenced by an Award Agreement
in the form approved by the Administrator.

 

(b) Type of Option. Each Option shall be designated in the Award Agreement as either an Incentive Share Option or a Nonstatutory Share Option. Nonstatutory
Share Options may be granted to Employees and Consultants.  Incentive Share Options may be granted only to Employees.

 

(c) Term of Option. The term of each Option shall be the term stated in the Award Agreement; provided that the term shall be no more than 10 years from the
date of grant thereof or such shorter term as may be provided in the Award Agreement and provided further that, in the case of an Incentive
Share Option granted to a person who at the time of such grant is a Ten Percent Holder, the term of the Option shall be 5 years from the
date of grant thereof or such shorter term as may be provided in the Award Agreement. 

 

    8

     

    

 

(d) Option Exercise
Price and Consideration.

 

(i) Exercise Price. The per Share exercise price for the Shares to be issued pursuant to the exercise of an Option shall be such price as is determined by
the Administrator and set forth in the Award Agreement, but shall be subject to the following:

 

(1) In the case of an Incentive
Share Option

 

a. granted to an Employee
who at the time of grant is a Ten Percent Holder, the per Share exercise price shall be no less than 110% of the Fair Market Value on
the date of grant; and

 

b. granted to any other Employee,
the per Share exercise price shall be no less than 100% of the Fair Market Value on the date of grant.

 

(2) Except as provided in subsection
(3) below, in the case of a Nonstatutory Share Option the per Share exercise price shall be such price as is determined by the Administrator,
and may be a fixed or variable price, provided that, if the per Share exercise price is or could be less than 100% of the Fair Market
Value on the date of grant, it shall otherwise comply with all Applicable Laws, and provided further that the per Share exercise price
of an Option granted to a U.S. taxpayer shall not be less than 100% of the Fair Market Value of a Share on the date of grant of the Option;
and

 

(3) Notwithstanding the foregoing,
Options may be granted with a per Share exercise price other than as required above pursuant to a merger or other corporate transaction.

 

(ii) Permissible
Consideration. The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method
of payment, shall be determined by the Administrator (and, in the case of an Incentive Share Option and to the extent required by Applicable
Laws, shall be determined at the time of grant) and may consist entirely of any of the following forms of consideration, to the extent
permitted under, and in accordance with, Applicable Laws:

 

(1) cash or check denominated
in U.S. dollars, Chinese Renminbi or any other local currency;

 

(2) other previously owned Shares
(whether delivered in the form of actual stock certificates or through attestation of ownership) that have a Fair Market Value on the
date of surrender equal to the aggregate exercise price of the Shares as to which the Option is exercised, provided that such Shares must
have been previously held for any minimum duration required to avoid financial accounting charges under applicable accounting guidance;

 

(3) Shares otherwise issuable
under the Option but withheld by the Company in satisfaction of the exercise price, with such withheld Shares to be valued at Fair Market
Value on the exercise date;

 

(4) to the extent the Option
is exercised for vested Shares, through a special sale and remittance procedure pursuant to which the Optionee shall concurrently provide
instructions to (A) a brokerage firm (reasonably satisfactory to the Company for purposes of administering such procedure in compliance
with the Company’s pre-clearance/pre-notification policies) to effect the immediate sale of the purchased shares and remit to the
Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate exercise price payable for
the purchased Shares plus all applicable income and employment taxes required to be withheld by the Company by reason of such exercise
and (B) the Company to deliver the certificates for the purchased Shares directly to such brokerage firm on such settlement
date in order to complete the sale.

 

(5) such other consideration
and method of payment permitted under Applicable Laws; or

 

(6) any combination of the foregoing
methods of payment.  In making its determination as to the type of consideration to accept, the Administrator shall consider if acceptance
of such consideration may be reasonably expected to benefit the Company and the Administrator may, in its sole discretion, refuse to accept
a particular form of consideration at the time of any Option exercise.

 

    9

     

    

 

(e) Exercise of Option.

 

(i) General.

 

(1) Exercisability. Any
Option granted hereunder shall be exercisable at such times and under such conditions as determined by the Administrator, consistent
with the terms of the Plan and reflected in the Award Agreement, including vesting requirements and/or performance criteria with
respect to the Company, and Parent or Subsidiary, and/or the Optionee.  Notwithstanding the foregoing, unless otherwise
approved by the Board, any Option granted hereunder shall vest in accordance with the vesting schedule as stated in the Award
Agreement.

 

(2) Minimum
Exercise Requirements. An Option may not be exercised for a fraction of a Share.  The Administrator may require that an
Option be exercised as to a minimum number of Shares, provided that such requirement shall not prevent an Optionee from exercising
the full number of Shares as to which the Option is then exercisable.  Further, the Administrator may impose on any Optionee,
or all Optionees, reasonable limitations on the number of requested exercises during any monthly or weekly period as determined by
the Administrator.

  

(3) Procedures for
and Results of Exercise. Unless otherwise set forth in the Award Agreement, an Option shall be deemed exercised when written
notice of such exercise has been received by the Company in accordance with the terms of the Award Agreement by the person entitled to
exercise the Option and the Company has received full payment for the Shares with respect to which the Option is exercised and has paid,
or made arrangements to satisfy, any applicable taxes, withholding, required deductions or other required payments in accordance with
Section 16 below.  The exercise of an Option shall result in a decrease in the number of Shares that thereafter may be available,
both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 

 

(ii) Termination
of Continuous Service Status. The Administrator shall establish and set forth in the applicable Award Agreement the terms
and conditions upon which an Option shall remain exercisable, if at all, following termination of an Optionee’s Continuous Service
Status.  During the applicable post-Continuous Service Status exercise period (as set forth in the Award Agreement), the Option may
not be exercised for more than the number of vested Optioned Shares for which the Option is at the time exercisable.  No additional
Optioned Shares shall vest under the Option following the Optionee’s cessation of Continuous Service Status except to the extent
(if any) specifically authorized by the Administrator in its sole discretion pursuant to an express written agreement with the Optionee. 
Upon the expiration of the applicable exercise period or (if earlier) upon the expiration of the Option term, the Option shall terminate
and cease to be outstanding for any Optioned Shares for which the Option has not been exercised.  Notwithstanding the foregoing,
the Administrator shall have complete discretion, exercisable either at the time an Option is granted or at any time while the Option
remains outstanding, to: (A) extend the period of time for which the Option is to remain exercisable following the Optionee’s
cessation of Continuous Service Status from the limited exercise period otherwise in effect for that Option to such greater period of
time as the Administrator shall deem appropriate, but in no event beyond the expiration of the Option term; and/or (B) permit the
Option to be exercised, during the applicable post-Continuous Service Status exercise period, not only with respect to the number of vested
Optioned Shares for which such Option is exercisable at the time of the Optionee’s cessation of Continuous Service Status but also
with respect to one or more additional installments in which the Optionee would have vested had the Optionee continued in Continuous Service
Status. 

 

(iii) Option Exercise
by PRC Participants. The Administrator may take all actions necessary to alter the method of Option exercise and the
exchange and transmittal of proceeds with respect to Participants that are PRC citizens or resident in PRC in order to comply with applicable
PRC foreign exchange and tax regulations and any other applicable PRC laws and regulations. 

 

(f) ISO $100,000
Limitation. Notwithstanding any designation under Section 8(b) above, to the extent that the aggregate Fair
Market Value of Shares with respect to which one or more options designated as incentive share options are exercisable for the first time
by any Optionee during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess portion
of the options shall be treated as nonstatutory share options.  For purposes of this Section 8(f), incentive share options shall
be taken into account in the order in which they were granted, and the Fair Market Value of the Shares subject to an incentive share option
shall be determined as of the date of the grant of such option. 

 

    10

     

    

 

9. Share Appreciation
Rights. A share appreciation right or “SAR” is a right to receive a payment, in cash and/or Shares, equal to
the excess of the Fair Market Value of a specified number of Shares on the date the SAR is exercised over the “base price”
of the Award, which base price shall be determined by the Administrator and set forth in the applicable Award Agreement; provided, however,
that the base price of a SAR granted to a U.S. taxpayer shall not be less than 100% of the fair market value of an Share on the date of
grant of the SAR.  The maximum term of a SAR shall be 10 years.  The terms and conditions of a SAR shall be evidence by an Award
Agreement in the form approved by the Administrator. 

 

10. Share Awards. 

 

(a) Share Awards. A share award is an award of Shares issued for such cash or other valid consideration as determined by the Administrator. 

 

(b) Authority. The Administrator shall have full power and authority, exercisable in its sole discretion, to grant share awards either as vested or unvested
Shares, through direct and immediate issuances.  Each share award shall be evidenced by an Award Agreement in the form approved by
the Administrator, provided, however, that the terms of each such Award Agreement shall not be inconsistent with the terms specified below. 

 

(c) Consideration.
Shares may be issued under a share award for any of the following items of consideration, which the Administrator may deem
appropriate in each individual instance:   

 

(i) cash or check made payable
to the Company; 

 

(ii) past services rendered
to the Company (or any Parent or Subsidiary); or 

 

(iii) any other valid consideration,
as determined in accordance with Applicable Laws. 

 

(d) Vesting Provisions. 

 

(i) Share awards may, in the
discretion of the Administrator, be fully and immediately vested upon issuance as a bonus for service rendered or may vest in one or more
installments over the Participant’s period of Continuous Service Status and/or upon the attainment of specified performance objectives. 
The elements of the vesting schedule applicable to any share award shall be determined by the Administrator and incorporated into the
Award Agreement. 

 

(ii) The Administrator shall
also have the discretionary authority to structure one or more share awards so that the Shares subject to those Awards shall vest upon
the achievement of pre-established performance objectives based on one or more performance goals and measured over the performance period
specified by the Administrator at the time of the grant of the Award. 

 

(iii) Should the Participant
cease to remain in Continuous Service Status while holding one or more unvested Shares issued under a share award or should the performance
objectives not be attained with respect to one or more such unvested Shares, then those Shares shall be immediately surrendered to the
Company for cancellation, and the Participant shall have no further shareholder rights with respect to those Shares.  To the extent
the surrendered Shares were previously issued to the Participant for consideration paid in cash or cash equivalent, the Company shall
repay to the Participant the lower of (i) the cash consideration paid for the surrendered Shares or (ii) the
Fair Market Value of those Shares at the time of cancellation.

 

(iv) The Administrator may
in its discretion waive the surrender and cancellation of one or more unvested Shares which would otherwise occur upon the cessation of
the Participant’s Continuous Service Status or the non-attainment of the performance objectives applicable to those shares. 
Any such waiver shall result in the immediate vesting of the Participant’s interest in the Shares as to which the waiver applies.

 

11. Restricted
Share Units.

 

(a) RSUs.
A restricted share unit or “RSU” is a right to receive a Share (or an amount based on the value of the Share) upon
vesting or upon the expiration of a designated time period following the vesting of the Award.

 

(b) Authority. The Administrator shall have the full power and authority, exercisable in its sole discretion, to grant RSUs evidenced by an Award Agreement
in the form approved by the Administrator, provided, however, that the terms of each such Award Agreement shall not be inconsistent with
the terms specified below.

 

    11

     

    

 

(c) Terms. Each RSU Award shall entitle the Participant to receive the Shares underlying that Award (or an amount based on the value of the Shares)
upon vesting or upon the expiration of a designated time period following the vesting of those Awards.  Payment of Shares underlying
a RSU Award (or any amount based on the value of the Shares) may be deferred for a period specified by the Administrator at the time the
RSU is initially granted or (to the extent permitted by the Administrator) designated by the Participant pursuant to a timely deferral
election made in accordance with the requirements of Applicable Laws (including Code Section 409A).  RSUs subject to performance
vesting may also be structured so that the underlying Shares are convertible into Shares (or a payment based on the value of the Shares),
but the rate at which each share is to so convert shall be based on the attained level of performance for each applicable performance
objective.

 

(d) Vesting Provisions.

 

(i) RSUs may, in the discretion
of the Administrator, vest in one or more installments over the Participant’s period of Continuous Service Status or upon the attainment
of specified performance objectives.

 

(ii) The Administrator shall
also have the discretionary authority to structure one or more RSU Awards so that the Shares subject to those Awards shall vest (or vest
and become issuable) upon the achievement of pre-established performance objectives based on one or more performance goals and measured
over the performance period specified by the Administrator at the time of the grant of the Award.

 

(iii) Outstanding RSUs shall
automatically terminate without any payment if the designated performance goals or Continuous Service Status requirements established
for those Awards are not attained or satisfied.  The Administrator, however, shall have the discretionary authority to make a payment
under one or more outstanding Awards of RSUs as to which the designated performance goals or Continuous Service Status requirements have
not been attained or satisfied.

 

(iv) Payment. RSUs that vest may be settled in (i) cash, (ii) Shares valued at Fair Market Value on the payment date or (iii) a combination
of cash and Shares, as determined by the Administrator in its sole discretion.

 

12. Dividend Equivalents.

 

(a) Authority. The Administrator shall have full power and authority, exercisable in its sole discretion, to grant dividend equivalent rights evidenced
by an Award Agreement in the form approved by the Administrator, provided however, that the terms of each such Award Agreement shall not
be inconsistent with the terms specified below.

 

(b) Terms. The dividend equivalent rights may be granted as stand-alone awards or in tandem with other Awards made under the Plan, except dividend
equivalent rights shall not be granted in connection with an Option, share appreciation right or cash incentive award.  The term
of each dividend equivalent right award shall be established by the Administrator at the time of grant, but no such award shall have a
term in excess of 10 years.

 

(c) Entitlement. Each dividend equivalent right shall represent the right to receive the economic equivalent of each dividend or distribution, whether
in cash, securities or other property (other than Shares), which is made per issued and outstanding Share during the term the dividend
equivalent right remains outstanding.  A special account on the books of the Company shall be maintained for each Participant to
whom a dividend equivalent right is granted, and that account shall be credited per dividend equivalent right with each such dividend
or distribution made per issued and outstanding Share during the term of that dividend equivalent right remains outstanding.

 

(d) Timing of Payment. Payment of the amounts credited to such book account may be made to the Participant either concurrently with the actual dividend or may
be subject to vesting and become payable to the same extent as the Shares subject to the Award, subject to the requirements of Applicable
Laws (including Code Section 409A).

 

    12

     

    

 

(e) Form of
Payment. Payment of the amounts due with respect to dividend equivalent rights may be made in (i) cash, (ii) Shares
or (iii) a combination of cash and Shares, as determined by the Administrator in its sole discretion and set forth in the Award
Agreement.  If payment is to be made in the form of Shares, the number of Shares into which the cash dividend or distribution amounts
are to be converted for purposes of the Participant’s book account may be based on the Fair Market Value per Share on the date
of conversion, a prior date or an average of the Fair Market Value per Share over a designated period, as determined by the Administrator
in its sole discretion.

 

13. Other Share-Based
Awards. The other types of awards that may be granted under this Plan include: (a) phantom shares or similar rights
to purchase or acquire Shares, whether at a fixed or variable price or ratio related to the Shares, upon the passage of time, the occurrence
of one or more events, or the satisfaction of performance criteria or other conditions, or any combination thereof; (b) any similar
securities with a value derived from the value of or related to the Shares and/or returns thereon; or (c) cash awards.

 

14. Repricing Programs. The Administrator shall have the discretionary authority to (i) implement cancellation/regrant programs pursuant to which outstanding
Options or SARs under the Plan are cancelled and new Options or SARs are granted in replacement with a lower exercise or base price per
Share, (ii) cancel outstanding Options or SARs under the Plan with exercise or base prices per Share in excess of the then current
Fair Market Value per Share for consideration payable in cash, other Awards, or in equity securities of the Company (except in the event
of a Change of Control) or (iii) reduce the exercise or base price in effect for outstanding Options or SARs under the Plan, in any
case without shareholder approval.

 

15. Rights as
Holder of Capital Share. A Participant shall not have any of the rights of a shareholder with respect to Shares covered
by an Award until the Participant becomes the holder of record of such Shares.  However, a Participant may be granted the right
to receive dividend equivalents under Section 12 with respect to one or more outstanding Awards.

 

16. Taxes.

 

(a) As a condition of the grant,
vesting and exercise of an Award, the Participant (or in the case of the Participant’s death or a permitted transferee, the person
holding or exercising the Award) shall make such arrangements as the Administrator may require for the satisfaction of any applicable
tax, withholding, and any other required deductions or payments that may arise in connection with such Award.  The Company shall
not be required to issue any Shares under the Plan until such obligations are satisfied.

 

(b) The Administrator may, to
the extent permitted under Applicable Laws, permit a Participant (or in the case of the Participant’s death or a permitted transferee,
the person holding or exercising the Award) to use Shares in satisfaction of all or part of the Withholding Taxes to which such holders
may become subject in connection with the issuance, exercise, vesting or settlement of those Awards or the issuance of Shares thereunder. 
Such right may be provided to any such individual in either or both of the following formats:

 

(i) Share Withholding:
The election to have the Company withhold, from the Shares otherwise issuable upon the issuance, exercise, vesting or settlement of such
Award or the issuance of Shares thereunder, a portion of those Shares with an aggregate Fair Market Value at the time of delivery equal
to the percentage of the Withholding Taxes based on the minimum required tax withholding rate for the Participant, or such other rate
as determined by the Administrator.

 

(ii) Share Delivery:
The election to deliver to the Company, at the time of the issuance, exercise, vesting or settlement of such Award, one or more Shares
previously acquired by such individual (other than in connection with the exercise, share issuance or share vesting triggering the Withholding
Taxes) with an aggregate Fair Market Value equal to the percentage of the Withholding Taxes (not to exceed 100%) designated by the individual.

 

Shares withheld or delivered
under this subsection (b) shall be limited to avoid financial accounting charges under applicable accounting guidance and any such
surrendered Shares must have been previously held for any minimum duration required to avoid financial accounting charges under applicable
accounting guidance, as determined by the Administrator.  Any payment of Withholding Taxes by surrendering Shares to the Company
may be subject to restrictions, including, but not limited to, any restrictions required by rules of the United States Securities
and Exchange Commission.

 

    13

     

    

 

17. Adjustments
Upon Changes in Capitalization, Merger or Certain Other Transactions.

 

(a) Changes in Capitalization. Subject to any action required under Applicable Laws by the holders of capital shares of the Company, should any change be made to the
Shares by reason of any share split, reverse share split, share dividend, combination, consolidation, reclassification of the Shares,
subdivision of the Shares, increase or decrease in the number of issued Shares effected without receipt of consideration by the Company,
a declaration of an extraordinary dividend with respect to the Shares payable in a form other than Shares in an amount that has a material
effect on the Fair Market Value, a recapitalization (including a recapitalization through a large nonrecurring cash dividend), a rights
offering, a reorganization, merger, a spin-off, split-up, change in corporate structure or a similar occurrence, the Administrator shall
make equitable adjustments, in its discretion, in one or more of (i) the numbers and class of Shares or other shares or securities: 
(x) available for future Awards under Section 4 above (including as Incentive Share Options) and (y) covered by each outstanding
Award, (ii) the exercise price per Share of each outstanding Option and (iii) any repurchase price per Share applicable to Shares
issued pursuant to any Award.  Any such adjustment by the Administrator under this Section 17(a) shall be made in the Administrator’s
sole and absolute discretion and shall be final, binding and conclusive.  Except as expressly provided herein, no issuance by the
Company of shares of any class, or securities convertible into shares of any class, shall affect, and no adjustment by reason thereof
shall be made with respect to, the number or price of Shares subject to an Award.  If, by reason of a transaction described in this
Section 17(a) or an adjustment pursuant to this Section 17(a), a Participant’s Award Agreement or agreement related
to any Optioned Shares or Award covers additional or different shares or securities, then such additional or different shares, and the
Award Agreement or agreement related to the Optioned Shares or Award in respect thereof, shall be subject to all of the terms, conditions
and restrictions which were applicable to the Award or Optioned Shares prior to such adjustment.

 

In connection with the Share
Consolidation, the exercise price per share of each outstanding Award under the Plan as of May 15, 2022 shall be increased to thirty (30)
times the original exercise price, and the number of shares covered by each outstanding Award under the Plan as of May 15, 2022 shall
be divided by thirty (30).

 

(b) Dissolution or
Liquidation. In the event of the dissolution or liquidation of the Company, each Award will terminate immediately prior
to the consummation of such action, unless otherwise determined by the Administrator.

 

(c) Change of Control. In the event of a Change of Control, each outstanding Award (vested or unvested) will be treated as the Administrator determines, which
determination may be made without the consent of any Participant and need not treat all outstanding Awards (or portion thereof) in an
identical manner.  Such determination, without the consent of any Participant, may provide (without limitation) for one or more of
the following in the event of a Change of Control:  (A) the continuation of such outstanding Awards by the Company (if the Company
is the surviving corporation); (B) the assumption of such outstanding Awards by the surviving corporation or its parent; (C) the
substitution by the surviving corporation or its parent of new options or equity awards for such Awards; (D) the cancellation of
such Awards in exchange for a payment to the Participants equal to the excess of (1) the Fair Market Value of the Shares subject
to such Awards as of the closing date of such Change of Control over (2) the exercise price or purchase price paid or to be paid
for the Shares subject to the Awards; or (E) the cancellation of any outstanding Award for no consideration.  Notwithstanding
anything herein, under this Plan, any Award Agreement or otherwise, any escrow, holdback, earn-out or similar provisions agreed to pursuant
to, or in connection with, a Change of Control shall, unless otherwise determined by the Administrator, apply to any payment or other
right a Participant may be entitled to under this Plan, if any, to the same extent and in the same manner as such provisions apply generally
to the holders of the Company’s Shares with respect to the Change of Control, but only to extent permitted by Applicable Law, including
(without limitation), Section 409A of the Code.

 

18. Non-Transferability
of Awards.

 

(a) General. Except as set forth in this Section 18, Awards (or any rights of such Awards) may not be sold, pledged, encumbered, assigned, hypothecated,
or disposed of or otherwise transferred in any manner other than by will or by the laws of descent or distribution.  The designation
of a beneficiary by a Participant will not constitute a transfer.  An Option may be exercised, during the lifetime of the holder
of the Option, only by such holder or a transferee permitted by this Section 18.

 

    14

     

    

 

(b) Limited Transferability
Rights. Notwithstanding anything else in this Section 18, the Administrator may in its sole discretion provide that
any Award (other than an Incentive Share Option) may be transferred (i) by instrument to an inter vivos or testamentary trust in
which the Award is to be passed to beneficiaries upon the death of the trustor (settlor) or (ii) to a Family Member through a gift
or domestic relations order.

 

(c) Beneficiaries. If permitted by the Company, a Participant may designate one or more beneficiaries with respect to an Award by timely filing the prescribed
form with the Company.  A beneficiary designation may be changed by filing the prescribed form with the Company at any time before
the Participant’s death.  Except as otherwise provided in an Award Agreement, if no beneficiary was designated or if no designated
beneficiary survives the Participant, then after a Participant’s death any vested Award(s) shall be transferred or distributed
to the Participant’s estate or to any person who has the right to acquire the Award by bequest or inheritance.

 

19. Time of Granting
Awards. The date of grant of an Award shall, for all purposes, be the date on which the Administrator completes the action
authorizing the grant of the Award to a Participant or such other later date as is determined by the Administrator.

 

20. Recoupment. Participants shall be subject to any clawback, recoupment or other similar policy required by law or regulations or adopted by the Board
as in effect from time to time and Awards and any cash, Shares or other property or amounts due, paid or issued to a Participant shall
be subject to the terms of such policy, as in effect from time to time.

 

21. Amendment and
Termination of the Plan. The Board may at any time amend or terminate the Plan, but no amendment or termination shall be
made that would materially and adversely affect the rights of any Participant under any outstanding Award, without his or her consent. 
In addition, to the extent necessary and desirable to comply with Applicable Laws, the Company shall obtain the approval of holders of
capital shares with respect to any Plan amendment in such a manner and to such a degree as required.

 

22. Conditions
Upon Issuance of Shares. Notwithstanding any other provision of the Plan or any agreement entered into by the Company pursuant
to the Plan, the Company shall not be obligated, and shall have no liability for failure, to issue or deliver any Shares under the Plan
unless such issuance or delivery would comply with Applicable Laws, including without limitation all applicable securities laws and all
applicable listing requirements of any Share Exchange on which the Shares are then listed for trading, with such compliance determined
by the Company in consultation with its legal counsel.

 

23. Approval of
Holders of Capital Shares. If required by Applicable Laws, continuance of the Plan shall be subject to approval by the holders
of capital shares of the Company within 12 months before or after the date the Plan is adopted or, to the extent required by Applicable
Laws, any date the Plan is amended.  Such approval shall be obtained in the manner and to the degree required under Applicable Laws.

 

24. Addenda. The Administrator may approve such addenda to the Plan as it may consider necessary or appropriate for the purpose of granting Awards
to Employees or Consultants, which Awards may contain such terms and conditions as the Administrator deems necessary or appropriate to
accommodate differences in local law, tax policy or custom, which may deviate from the terms and conditions set forth in this Plan. 
The terms of any such addenda shall supersede the terms of the Plan to the extent necessary to accommodate such differences but shall
not otherwise affect the terms of the Plan as in effect for any other purpose.

 

25. Foreign Currency. A Participant may be required to provide evidence that any currency used to pay the exercise or purchase price of any Award was acquired
and taken out of the jurisdiction in which the Participant resides in accordance with Applicable Laws, including foreign exchange control
laws and regulations.  In the event the Company permits payment of the exercise or purchase price for an Award in currency other
than as provided by the applicable Award Agreement, the amount payable will be determined by conversion from the currency provided by
the applicable Award Agreement to the other currency based on the exchange rate selected by the Company, in its sole discretion, on the
date of exercise.  Notwithstanding anything stated herein, the Company shall not be responsible for any fluctuation in applicable
exchange rates, or by the selection of any exchange rate, that in either case may affect the value of the Award or any taxes or other
amounts related thereto.

 

 

15

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