Document:

Engagement Letter

 Exhibit 10.1 
  

			
	

	 	Canaccord Adams Inc.
	 	99 High Street
	 	Boston, MA 02110
	 	T: 617.371.3900

 CONFIDENTIAL 
 COPY ONE OF TWO 
 October 26, 2009 
 EnteroMedics Inc. 
 2800 Patton Road 
 St. Paul, MN 55113 
  

			
	Attention:	 	 Mark B. Knudson
 President
and Chief Executive Officer

 Dear Mr. Knudson, 
 Canaccord Adams Inc. (together with its affiliates, control persons, officers, directors, employees and agents, “CA” or “Canaccord Adams”) is pleased to confirm the terms and
conditions under which CA is engaged by EnteroMedics Inc. (the “Company” or “Client”) to act as its exclusive financial advisor with respect to evaluating the Company’s strategic and financial planning matters. 

 

	 	1.	Appointment and Acceptance. The Company hereby engages Canaccord Adams as the Company’s exclusive (such exclusivity to terminate once the fees in
Section 3 are paid in full) financial advisor with respect to evaluating various strategic and financial planning matters, including without limitation: (i) capital raising strategies including any public or private offering of equity or
debt securities of the Company, (ii) any other transaction not in the ordinary course of business intended to achieve the financing of the Company, and (iii) any Strategic Transactions (except with parties listed in Exhibit A with respect
to which Section 6 here of shall not apply, and further, no fees, expense, commissions, or amounts shall be payable to Canaccord Adams), as defined below. Canaccord Adams accepts such engagement, subject to all the terms and conditions of this
letter. 

 A “Strategic Transaction” shall mean any transaction or series or combination of transactions,
other than in the ordinary course of trade or business, whereby, directly or indirectly, control of, or a material interest in, the Company, its subsidiaries or any of the businesses, assets or properties of any of them, is sold, leased or otherwise
transferred, including, without limitation, a sale or exchange of equity interests or assets, a lease of assets with or without a purchase option, a merger or consolidation, a tender or exchange offer, a leveraged buy out, a restructuring, a
recapitalization, a repurchase of equity interests, an extraordinary dividend or distribution (whether cash, property, securities or a combination thereof), a liquidation, the formation of a joint venture of partnership, a minority investment or any
other similar transaction. In the case of a tender or exchange offer or a multi step transaction which contemplates the acquisition of more than 50% of the outstanding voting power of the Company, a Strategic Transaction shall be deemed to have been
consummated upon the acquisition pursuant to such offer of more than 50% of such outstanding voting power. 

					
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	 	2.	Services Provided by Canaccord Adams. In connection with this engagement, Canaccord Adams will: 

  

	 	a)	Analyze and evaluate the business, operations, financial condition, and prospects of the Company; 

  

	 	b)	Review with members of management the Company’s financial plans and analyze its strategic plans and business alternatives, including preliminary generation and
analysis of capital raising, investment, partnership, and mergers and acquisition strategies; and 

  

	 	c)	Be available at your request to meet with your Board of Directors to discuss strategic alternatives and their financial implications. 

 During the period of our engagement, we will continue to update and maintain our knowledge to ensure that we are current with the
Company’s business, operations, financial condition, and prospects. 
  

	 	3.	Fees. In consideration for its services hereunder, the Company shall pay to CA a retainer fee of $300,000 (the “Retainer”) with such cash
amounts payable by wire transfer of immediately available funds in four payments starting on November 1, 2009 as defined below: 

  

	 	a)	$75,000 due on each of the following dates, November 1, 2009, November 15, 2009, December 1, 2009 and December 31, 2009.

 The Client further understands that if Canaccord Adams is asked to act for the Company as underwriter or
placement agent in connection with a public or private offering of equity or debt securities of the Company, as its exclusive financial advisor in connection with any Strategic Transaction or in any other formal additional capacity, then the terms
of any such additional engagement(s), will be embodied in one or more separate written agreements, containing provisions and terms to be mutually reasonably agreed upon. The indemnity provisions in the separate letter agreement referred to above
shall apply to the engagement contemplated pursuant to this agreement and any such additional engagement and shall remain in full force and effect regardless of any completion, modification or termination of Canaccord Adams’ engagement(s).

  

	 	4.	Expenses. Promptly upon request, the Company will reimburse Canaccord Adams for all of Canaccord Adams’ out of pocket expenses incurred in connection
with its activities hereunder, including, without limitation, the fees and disbursements of its legal counsel, if any (and of any other advisor retained by Canaccord Adams in connection with its performance of services hereunder).

  

	 	5.	Information. The Company shall make available to Canaccord Adams all information available to it concerning the business, assets, operations, financial
condition and prospects of the Company which Canaccord Adams reasonably requests in connection with its services. The Company will endeavor to provide Canaccord Adams with complete and accurate information. The Company shall continue to advise
Canaccord Adams regarding any material developments or matters relating to the Company which occur during the term of, and relate to, Canaccord Adams’ engagement hereunder. The Company acknowledges and 

					
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	 	6.	agrees that Canaccord Adams (i) will rely on such information in the performance of the services contemplated by this letter without independently investigating or
verifying any of it, (ii) assumes no responsibility for the accuracy or completeness of such information and (iii) will not make or obtain any appraisal of any assets or property of the Company. 

  

	 	7.	Other Transactions. In consideration of Canaccord Adams’ entering into this Agreement and the services to be provided by Canaccord Adams hereunder,
the Company hereby grants Canaccord Adams a right of first refusal under which Canaccord Adams shall have the right to provide all financial advisory and investment banking services to the Company for a period through December 31, 2009, which
services shall include but not be limited to: (i) acting as exclusive financial advisor in connection with a Strategic Transaction or an acquisition of the business or assets of a third party outside the ordinary course of business;
(ii) acting as managing or lead underwriter of any public offerings of any form of security; (iii) acting as financial advisor or placement agent for any private offering by the Company of any form of security; (iv) delivering
fairness opinions and valuations; (v) acting as financial advisor for any other extraordinary corporate transactions for which the Company may engage a financial advisor, including any acquisition of assets or other entities outside the
ordinary course of business; and (vi) providing other general financial advisory and investment banking services as may be required by the Company during such period. In granting this right of first refusal, and upon full receipt of the
Retainer, Canaccord Adams agrees to waive the deferred payment due pursuant to the engagement letter dated October 2, 2009, and amendment thereto dated October 4, 2009, between Canaccord Adams and EnteroMedics. As used herein, a right of
first refusal shall mean that if the Company determines to engage any party to provide financial advisory and investment banking services as described above, then Canaccord Adams shall have the right, but not the obligation, to act as the
Company’s exclusive financial advisor in connection with such services. The Company shall provide Canaccord Adams with written notice of any such determination, whereupon Canaccord Adams shall provide the Company, within five days of receipt of
such notice, with the proposed services to be provided and the fees and other terms and conditions under which Canaccord Adams proposes to be engaged. In connection with any such engagements, the Company and Canaccord Adams shall enter into
agreements, appropriate under the circumstances and reasonably acceptable to the Company and Canaccord Adams, containing provisions for compensation, indemnification, and other matters that are usual and customary for other similar circumstances in
which Canaccord Adams is engaged. In the event the parties are unable to reasonably agree on the terms under which Canaccord Adams may be engaged within 15 days after receipt by the Company of Canaccord Adams’ proposal, then after such 15-day
period the Company shall be permitted to seek bona fide proposals from third parties, provided that in the event the Company determines to accept such any such third party proposal, the Company shall provide Canaccord Adams with written notice of
such determination and the terms and conditions of such proposal, and Canaccord Adams shall have the right to match the material terms of such proposal within five days after receipt of such notice. 

 In addition to the rights set forth above, during the period through December 31, 2009, the Company shall retain Canaccord Adams as its
financial advisor for any of the transactions described in clauses (i) through (vi) above with respect to

					
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which Canaccord Adams has provided advisory services hereunder (each a “Covered Transaction”). All such engagements shall be memorialized in a separate engagement letter as contemplated
in paragraph 3 above. Not withstanding the forgoing, this Section 6 shall not apply to actions taken by the Company with respect to those parties listed on Exhibit A. 
  

	 	8.	Indemnification. In consideration of and as a condition precedent to Canaccord Adams’ undertaking the engagement contemplated by this letter, the
Company agrees to the indemnification provisions and other matters set forth in Annex A, which is incorporated by reference into this Agreement. 

 In addition, the Company represents to Canaccord Adams that there is no other person or entity that is entitled to a finder’s fee or any type of brokerage commission in connection with the
transactions contemplated by this Agreement as a result of any agreement or understanding with it which creates an interest in the compensation payable to Canaccord Adams hereunder. The Company agrees to indemnify and hold Canaccord Adams harmless
from and against any actions, suits, claims, costs, expenses, losses and liabilities arising out of any breach of the foregoing sentence. 
  

	 	9.	Termination. Subject to the terms hereof, the term of this engagement is until December 31, 2009. 

  

	 	a)	Subject to subparagraphs (b) and (c) below, the engagement of Canaccord Adams hereunder may be terminated at any time, with or without cause, by either the
Company or Canaccord Adams, upon ten days’ prior written notice to the other. 

  

	 	b)	No termination of Canaccord Adams’ engagement hereunder by the Company shall affect (i) the Company’s obligation to pay fees to Canaccord Adams or to
reimburse Canaccord Adams for expenses as provided for herein or (ii) the Company’s obligations under the Indemnification Agreement. 

  

	 	c)	Paragraphs 3, 4, 5, 6 and 7 shall survive any termination of this agreement. 

  

	 	10.	No Commitments. Canaccord Adams’ engagement by the Company is for the limited purposes set forth in this letter, and the rights and obligations of
each of Canaccord Adams and the Company are defined by this letter agreement. Each of Canaccord Adams and the Company agrees that the other party has no fiduciary duty to it or its stockholders, officers and directors as a result of the engagement
described in this letter agreement. 

 Nothing in this agreement shall be construed to limit the ability of
Canaccord Adams or its affiliates to pursue, investigate, analyze, invest in, or engage in investment banking, financial advisory or any other business relationships with entities other than the Company, notwithstanding that such entities may be
engaged in a business which is similar to or competitive with the business of the Company, and notwithstanding that such entities may have actual or potential operations, products, services, plans, ideas, customers or supplies similar or identical
to the Company’s, or may have been identified by the Company as potential merger or acquisition targets or potential candidates for some other

					
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business combination, cooperation or relationship. The Company expressly acknowledges and agrees that it does not claim any proprietary interest in the identity of any other entity in its
industry or otherwise, and that the identity of any such entity is not confidential information. 
 The Company acknowledges that
all advice (written or oral) given by Canaccord Adams to the Company is intended solely for the benefit and use of the Company. Other than to the extent required to be reflected in Board and committee meeting minutes or as required by law or by
order of a governmental authority or court of competent jurisdiction, no advice (written or oral) of Canaccord Adams hereunder shall be used, reproduced, disseminated, quoted or referred to at any time, in any manner, or for any purpose, nor shall
any public references to Canaccord Adams be made by the Company (or such persons), without the prior written consent of Canaccord Adams. 
  

	 	11.	Other Activities. Canaccord Adams is a full service securities firm engaged, either directly or through its affiliates, in various activities, including
securities trading, investment management, financing and brokerage activities. Canaccord Adams may agree or arrange to provide any prospective other party to a Strategic Transaction with, or otherwise assist them in retaining all or a portion of the
financing they may require in connection with, a proposed Strategic Transaction. In the ordinary course of its business, Canaccord Adams and its affiliates may actively trade the securities (or related derivative securities) of the Company and other
companies which may be the subject of the engagement contemplated by this letter for their own account and for the accounts of their customers and may at any time hold long and short positions in such securities. In addition, Canaccord Adams has
adopted policies and procedures designed to preserve the independence of its research analysts, whose views may differ from those of Canaccord Adams’ investment banking department. 

  

	 	12.	Entire Agreement. This Agreement constitutes the entire Agreement between the parties and supersedes and cancels any and all prior or contemporaneous
agreements (including agreements dated October 2, 2009 and amendment thereto dated October 4, 2009), undertakings and agreements, written or oral, between them relating to the subject matter hereof. 

  

	 	13.	Severability. If any portion of this agreement shall be held or made unenforceable or invalid by a statute, rule, regulation, decision of a tribunal or
otherwise, the remainder of this agreement shall not be affected thereby and shall remain in full force and effect, and, to the fullest extent, the provisions of the agreement shall be severable. 

  

	 	14.	Failure or Delay No Waiver. It is understood and agreed that failure or delay by either the Company or Canaccord Adams in exercising any right, power or
privilege hereunder shall not operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power, or privilege hereunder. 

 

	 	15.	Advertisements. Canaccord Adams has the right to place advertisements in financial and other newspapers and journals at its own expense describing its
services to the Company hereunder, provided that Canaccord Adams will, prior to 

					
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	 	16.	publication, submit a copy of any such advertisements to the Company for its approval, which approval shall not be unreasonably withheld or delayed.

  

	 	17.	Amendment. This agreement may be modified or amended, or its provisions waived, only by a writing signed by the person or persons against whom enforcement
of the waiver, modification, amendment or waiver is sought. 

  

	 	18.	Governing Law. This agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts without regard to the
conflict of law principles thereof. Any right to trial by jury in any action, proceeding or counterclaim (whether based upon contract, tort or otherwise) related to or arising out of Canaccord Adams’ activities pursuant to, or the performance
by Canaccord Adams of the services contemplated by this agreement is hereby waived. The Company and Canaccord Adams hereby irrevocably and unconditionally waive any objection to the laying of venue of any lawsuit, claim or other proceeding arising
out of or relating to this Agreement in the courts of The Commonwealth of Massachusetts located in the City of Boston or the United States District Courts located in the City of Boston, and hereby further irrevocably and unconditionally waive and
agree not to plead or claim in any such court that any such lawsuit, claim or other proceeding brought in any such court has been brought in an inconvenient forum. 

  

	 	19.	Successors and Assigns. The benefits of this agreement shall inure to the respective successors and assigns (whether by merger or otherwise) of the
parties hereto, and the obligations and liabilities assumed in this agreement by the parties hereto shall be binding upon their respective successors and assigns. 

					
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 If you are in agreement with the foregoing, please sign both copies, retain Copy One for your records
and return Copy Two, whereupon the Agreement shall become effective as of the date hereof. 
  

			
	Sincerely,
	
	Canaccord Adams Inc.
		
	By:	 	 /s/ Jeffrey G. Barlow

		 	Jeffrey G. Barlow
		 	Managing Director
	
	Accepted and Agreed:
	
	EnteroMedics Inc.
		
	By:	 	 /s/ Mark B. Knudson 10/27/09

		 	Mark B. Knudson
		 	President and Chief Executive Officer

					
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 Annex A 
 In the event that Canaccord Adams Inc. or any of its affiliates (“Canaccord Adams”), the respective shareholders, directors, officers, agents or employees of Canaccord Adams, or any other person
controlling Canaccord Adams (collectively, together with Canaccord Adams, “Indemnified Persons”) becomes involved in any capacity in any action, claim, suit, investigation or proceeding, actual or threatened, brought by or against any
person, including stockholders of EnteroMedics Inc. (the “Company”), in connection with or as a result of the engagement contemplated by the letter agreement to which this Annex A is attached (the “engagement”), the Company will
reimburse such Indemnified Person for its legal and other expenses (including without limitation the costs and expenses incurred in connection with investigating, preparing for and responding to third party subpoenas or enforcing the engagement)
incurred in connection therewith as such expenses are incurred; provided, however, that if it is finally determined by a court or arbitral tribunal in any such action, claim, suit, investigation or proceeding that any loss, claim damage or liability
of Canaccord Adams or any other Indemnified Person has resulted primarily and directly from the gross negligence or willful misconduct of Canaccord Adams in performing the services that are the subject of the engagement, then Canaccord Adams will
repay such portion of reimbursed amounts that is attributable to expenses incurred in relation to the act or omission of Canaccord Adams or any other Indemnified Person which is the subject of such determination. The Company will also indemnify and
hold harmless each Indemnified Person from and against any losses, claims, damages or liabilities (including actions or proceedings in respect thereof) (collectively, “Losses”) related to or arising out of the engagement, except to the
extent any such Losses are finally determined by a court or arbitral tribunal to have resulted primarily and directly from the willful misconduct or gross negligence of Canaccord Adams in performing the services that are the subject of the
engagement. 
 If such indemnification is for any reason not available or insufficient to hold an Indemnified Person harmless (except by reason
of the gross negligence or willful misconduct of Canaccord Adams), the Company and Canaccord Adams shall contribute to the Losses involved in such proportion as is appropriate to reflect the relative benefits received (or anticipated to be received)
by the Company, on the one hand, and by Canaccord Adams, on the other hand, with respect to the engagement or, if such allocation is determined by a court or arbitral tribunal to be unavailable, in such proportion as is appropriate to reflect other
equitable considerations such as the relative fault of the Company on the one hand and of Canaccord Adams on the other hand; provided, however, that in no event shall the amounts to be contributed by Canaccord Adams exceed the fees actually received
by Canaccord Adams in the engagement. Relative benefits to the Company, on the one hand, and Canaccord Adams, on the other hand, shall be deemed to be in the same proportion as (i) the total value paid or proposed to be paid or received or
proposed to be received by the Company or its security holders, as the case may be, pursuant to the transaction(s), whether or not consummated, contemplated by the engagement, bears to (ii) all fees actually received by Canaccord Adams in the
engagement. 
 The Company also agrees that neither Canaccord Adams nor any other Indemnified Person shall have any liability to the Company or
any person asserting claims on behalf or in right of the Company in connection with or as a result of the engagement or any matter referred to in the engagement, except to the extent that any Losses incurred by the Company are finally determined by
a court or arbitral tribunal to have resulted primarily and directly from the willful misconduct or gross negligence of Canaccord Adams in performing the services that are the subject of the engagement. 
 Prior to entering into any agreement or arrangement with respect to, or effecting, any merger, statutory exchange or other business combination or proposed
sale or exchange, dividend or other distribution or liquidation of all or a significant portion of its assets in one or a series of transactions or any significant recapitalization or reclassification of its outstanding securities that does not
directly or indirectly provide for the assumption of the obligations of the Company set forth herein, the Company will notify

					
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Canaccord Adams in writing thereof (if not previously so notified) and, if requested by Canaccord Adams, shall arrange in connection therewith alternative means of providing for the obligations
of the Company set forth herein upon terms and conditions satisfactory to Canaccord Adams. 
 The Company’s obligations hereunder shall be
in addition to any rights that any Indemnified Person may have at common law or otherwise. The letter to which this Annex A is attached, including this Annex A, and any other agreements relating to the engagement shall be governed by and construed
in accordance with the laws of the Commonwealth of Massachusetts, applicable to contracts made and to be performed therein and, in connection therewith, the parties hereto consent to the exclusive jurisdiction of the state and federal courts of the
Commonwealth of Massachusetts. Notwithstanding the foregoing, solely for purposes of enforcing the Company’s obligations hereunder, the Company consents to personal jurisdiction, service and venue in any court proceeding in which any claim
subject to this Annex A is brought by or against any Indemnified Person. CANACCORD ADAMS HEREBY AGREES, AND THE COMPANY HEREBY AGREES ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS SECURITY HOLDERS, TO WAIVE ANY
RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY CLAIM, COUNTER-CLAIM OR ACTION ARISING OUT OF THE ENGAGEMENT OR CANACCORD ADAMS’S PERFORMANCE OF SERVICES THAT ARE THE SUBJECT THEREOF. 
 The provisions of this Annex A shall apply to the engagement (including related activities prior to the date hereof) and any modification thereof and shall remain in full force and effect regardless of
the completion or termination of the engagement. If any term, provision, covenant or restriction herein is held by a court of competent jurisdiction to be invalid, void or unenforceable or against public policy, the remainder of the terms,
provisions and restrictions contained herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated.2009 Stock Incentive Plan

 EXHIBIT 10.1 
 TIDEWATER INC. 
 2009 STOCK INCENTIVE PLAN 
 1. Purpose. The purpose of the Tidewater Inc. 2009 Stock Incentive Plan (the “Plan”) is to increase stockholder value
and to advance the interests of Tidewater Inc. (“Tidewater”) and its subsidiaries (collectively with Tidewater, the “Company”) by furnishing stock-based economic incentives (the “Incentives”)
designed to attract, retain, reward, and motivate key employees, officers and directors of the Company and consultants and advisors to the Company and to strengthen the mutuality of interests between service providers and Tidewater’s
stockholders. Incentives consist of opportunities to purchase or receive shares of Common Stock, $.10 par value per share, of Tidewater (the “Common Stock”) or cash valued in relation to Common Stock, on terms determined under the
Plan. As used in the Plan, the term “subsidiary” means any corporation, limited liability company or other entity, of which Tidewater owns (directly or indirectly) within the meaning of section 424(f) of the Internal Revenue Code of
1986, as amended (the “Code”), 50% or more of the total combined voting power of all classes of stock, membership interests, or other equity interests issued thereby. 
 2. Administration. 
 2.1 Composition. The Plan shall generally be administered by the Compensation Committee of the Board of Directors of Tidewater (the “Board”) or by a subcommittee thereof. The Compensation Committee or subcommittee
thereof that generally administers the Plan shall consist of not fewer than two members of the Board, each of whom shall (a) qualify as a “non-employee director” under Rule 16b-3 under the Securities Exchange Act of 1934 (the
“1934 Act”) or any successor rule and (b) qualify as an “outside director” under Section 162(m) of the Code (“Section 162(m)”). The Nominating and Corporate Governance Committee of the Board
shall administer the Plan with respect to grants to members of the Board who are not employees of the Company (“Outside Directors”). Members of the Nominating and Corporate Governance Committee shall qualify as “non-employee
directors” under Rule 16b-3 under the 1934 Act. Unless the context otherwise requires, the term “Committee” shall be used herein to refer to both the Compensation Committee (or subcommittee that administers the Plan) and the
Nominating and Corporate Governance Committee. 
 2.2 Authority. The Compensation Committee or a sub-committee
thereof shall have plenary authority to award Incentives under the Plan and to enter into agreements with or provide notices to participants as to the terms of the Incentives (the “Incentive Agreements”), except that the Nominating
and Corporate Governance Committee of the Board shall have the sole authority to grant Incentives to Outside Directors and to enter into Incentive Agreements with Outside Directors. The Compensation Committee or a sub-committee thereof shall have
the general authority to interpret the Plan, to establish any rules or regulations relating to the Plan that it determines to be appropriate, and to make any other determination that it believes necessary or advisable for the proper administration
of the Plan, except that the

  

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Nominating and Corporate Governance Committee shall have sole authority with respect to matters relating to grants to Outside Directors. Committee decisions in matters relating to the Plan shall
be final and conclusive on the Company and participants. The Compensation Committee may delegate its authority hereunder to the extent provided in Section 3. 
 3. Eligible Participants. Key employees and officers of the Company and persons providing services as consultants or advisors to the Company shall become eligible to receive Incentives under the Plan when
designated by the Committee. With respect to participants not subject to either Section 16 of the 1934 Act or Section 162(m) of the Code, the Compensation Committee may delegate to appropriate officers of the Company its authority to
designate participants, to determine the size and type of Incentives to be received by those participants, and to set and modify the terms of such Incentives; provided, however, that the per share exercise price of any options granted by an officer,
rather than by the Compensation Committee, shall be equal to the Fair Market Value (as defined in Section 13.10) of a share of Common Stock on the later of the date of grant or the date the participant’s employment with or service
to the Company commences. Outside Directors shall receive Incentives under the Plan when granted by the Nominating and Corporate Governance Committee. 
 4. Types of Incentives. Incentives may be granted under the Plan to eligible participants in the forms of (a) incentive stock options; (b) non-qualified stock options; (c) restricted stock,
(d) restricted stock units (“RSUs”); (e) stock appreciation rights (“SARs”) and (f) Other Stock-Based Awards (as defined in Section 10). 
 5. Shares Subject to the Plan. 
 5.1 Number of Shares. Subject to adjustment as provided in Section 13.5, the maximum number of shares of Common Stock that may be delivered to participants and their permitted transferees under
the Plan shall be 1,982,500 shares. 
 5.2 Share Counting. To the extent any shares of Common Stock covered by a
stock option or SAR are not delivered to a participant or permitted transferee because the Incentive is forfeited or canceled, or shares of Common Stock are not delivered because an Incentive is paid or settled in cash, such shares shall not be
deemed to have been delivered for purposes of determining the maximum number of shares of Common Stock available for delivery under this Plan. In the event that shares of Common Stock are issued as an Incentive and thereafter are forfeited or
reacquired by the Company pursuant to rights reserved upon issuance thereof, such forfeited and reacquired Shares may again be issued under the Plan. With respect to SARs, if the SAR is payable in shares of Common Stock, all shares to which the SARs
relate are counted against the Plan limits, rather than the net number of shares delivered upon exercise of the SAR. 
  

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 5.3 Limitations on Awards. Subject to adjustment as provided in
Section 13.5, the following additional limitations are imposed under the Plan: 
 (a) The maximum number of
shares of Common Stock that may be issued upon exercise of stock options intended to qualify as incentive stock options under Section 422 of the Code shall be 1,982,500 shares. 
 (b) The maximum number of shares of Common Stock that may be covered by Incentives granted under the Plan to any one individual during
any one calendar-year period shall be 500,000. 
 (c) The maximum number of shares of Common Stock that may be issued under
the Plan as restricted stock, RSUs, and Other Stock-Based Awards (as defined in Section 10.1) shall be 1,387,750 shares. 
 (d) Restricted stock, RSUs, and Other Stock-Based Awards with respect to an aggregate of 99,125 shares of Common Stock may be granted to officers, employees, consultants, or advisors without compliance with the
minimum vesting periods provided in Sections 7.2, 8.2, and 10.2. 
 (e) Each Outside Director may be granted
Incentives with respect to no more than 10,000 shares of Common Stock each calendar year. 
 (f) The maximum value of an
Other Stock-Based Award that is valued in dollars (whether or not paid in Common Stock) scheduled to be paid out to any one participant in any calendar year shall be $2,000,000. 
 5.4 Type of Common Stock. Common Stock issued under the Plan may be authorized and unissued shares or issued shares held as
treasury shares. 
 6. Stock Options. A stock option is a right to purchase shares of Common Stock from Tidewater. Stock options
granted under the Plan may be incentive stock options (as such term is defined in Section 422 of the Code) or non-qualified stock options. Any option that is designated as a non-qualified stock option shall not be treated as an incentive stock
option. Each stock option granted by the Committee under this Plan shall be subject to the following terms and conditions: 
 6.1 Price. The exercise price per share shall be determined by the Committee, subject to adjustment under Section 13.5; provided that in no event shall the exercise price be less than the Fair Market Value (as defined in
Section 13.10) of a share of Common Stock on the date of grant, except in the case of a stock option granted in assumption of or substitution for an outstanding award of a company acquired by the Company or with which the Company
combines. 
 6.2 Number. The number of shares of Common Stock subject to the option shall be determined by the
Committee, subject to Section 5 and subject to adjustment as provided in Section 13.5. 
 6.3
Duration and Time for Exercise. The term of each stock option shall be determined by the Committee, but shall not exceed a maximum term of ten years. Each stock option shall become exercisable at such time or times during its term as shall be

  

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determined by the Committee. Notwithstanding the foregoing, the Committee may accelerate the exercisability of any stock option at any time, in addition to the automatic acceleration of stock
options under Section 12. 
 6.4 Repurchase. Upon approval of the Committee, the Company may repurchase
a previously granted stock option from a participant by mutual agreement before such option has been exercised by payment to the participant of the amount per share by which: (a) the Fair Market Value of the Common Stock subject to the option
on the business day immediately preceding the date of purchase exceeds (b) the exercise price, or by payment of such other mutually agreed upon amount; provided, however, that no such repurchase shall be permitted if prohibited by
Section 6.6. 
 6.5 Manner of Exercise. A stock option may be exercised, in whole or in part, by giving
written notice to the Company, specifying the number of shares of Common Stock to be purchased. The exercise notice shall be accompanied by the full purchase price for such shares. The option price shall be payable in United States dollars and may
be paid (a) in cash; (b) by check; (c) by delivery of or attestation of ownership of shares of Common Stock, which shares shall be valued for this purpose at the Fair Market Value on the business day immediately preceding the date
such option is exercised; (d) by delivery of irrevocable written instructions to a broker approved by the Company (with a copy to the Company) to immediately sell a portion of the shares, issuable under the option and to deliver promptly to the
Company the amount of sale proceeds (or loan proceeds if the broker lends funds to the participant for delivery to the Company) to pay the exercise price; (e) if approved by the Committee, through a net exercise procedure whereby the optionee
surrenders the option in exchange for that number of shares of Common Stock with an aggregate Fair Market Value equal to the difference between the aggregate exercise price of the options being surrendered and the aggregate Fair Market Value of the
shares of Common Stock subject to the option; or (f) in such other manner as may be authorized from time to time by the Committee. 
 6.6 Repricing. Except for adjustments pursuant to Section 13.5 or actions permitted to be taken by the Committee under Section 12 in the event of a Change of Control, unless approved
by the stockholders of the Company, (a) the exercise or base price for any outstanding option or SAR granted under this Plan may not be decreased after the date of grant; and (b) an outstanding option or SAR that has been granted under
this Plan may not, as of any date that such option or SAR has a per share exercise price that is greater than the then current Fair Market Value of a share of Common Stock, be surrendered to the Company as consideration for the grant of a new option
or SAR with a lower exercise price, shares of restricted stock, restricted stock units, an Other Stock-Based Award, a cash payment, or Common Stock. 
 6.7 Incentive Stock Options. Notwithstanding anything in the Plan to the contrary, the following additional provisions shall apply to the grant of stock options that are intended to qualify as incentive
stock options (as such term is defined in Section 422 of the Code): 
 (a) Any incentive stock option agreement
authorized under the Plan shall contain such other provisions as the Committee shall deem advisable, but shall in all events be consistent with and contain or be deemed to contain all provisions required in order to qualify the options as incentive
stock options. 
  

 4 

 (b) All incentive stock options must be granted within ten years from the date on
which this Plan is adopted by the Board of Directors. 
 (c) No incentive stock options shall be granted to any
non-employee or to any participant who, at the time such option is granted, would own (within the meaning of Section 422 of the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the employer
corporation or of its parent or subsidiary corporation. 
 (d) The aggregate Fair Market Value (determined with respect to
each incentive stock option as of the time such incentive stock option is granted) of the Common Stock with respect to which incentive stock options are exercisable for the first time by a participant during any calendar year (under the Plan or any
other plan of Tidewater or any of its subsidiaries) shall not exceed $100,000. To the extent that such limitation is exceeded, the excess options shall be treated as non-qualified stock options for federal income tax purposes. 
 7. Restricted Stock. 
 7.1 Grant of Restricted Stock. The Committee may award shares of restricted stock to such eligible participants as determined pursuant to the terms of Section 3. An award of restricted stock shall be subject to such
restrictions on transfer and forfeitability provisions and such other terms and conditions, including the attainment of specified performance goals, as the Committee may determine, subject to the provisions of the Plan. To the extent restricted
stock is intended to qualify as “performance-based compensation” under Section 162(m), it must be granted subject to the attainment of performance goals as described in Section 11 below and meet the additional requirements
imposed by Section 162(m). 
 7.2 The Restricted Period. At the time an award of restricted stock is made, the
Committee shall establish a period of time during which the transfer of the shares of restricted stock shall be restricted and after which the shares of restricted stock shall be vested (the “Restricted Period”). Each award of
restricted stock may have a different Restricted Period. The Restricted Period shall be a minimum of three years with incremental vesting of portions of the award over the three-year period permitted, with the following exceptions: 
 (a) If the vesting of the shares of restricted stock is based upon the attainment of performance goals as described in
Section 11, the Restricted Period shall be a minimum of one year. 
  

 5 

 (b) No minimum Restricted Period applies to grants to Outside Directors, to grants
issued in payment of cash amounts earned under the Company’s annual incentive plan, or to grants made under Section 5.3(d). 
 The expiration of the Restricted Period shall also occur (1) as provided under Section 13.3 in the event of termination of employment under the circumstances provided in the Incentive Agreement, and (2) as described in
Section 12 in the event of a Change of Control of the Company. 
 7.3 Escrow. The participant receiving
restricted stock shall enter into an Incentive Agreement with the Company setting forth the conditions of the grant. Any certificates representing shares of restricted stock shall be registered in the name of the participant and deposited with the
Company, together with a stock power endorsed in blank by the participant. Each such certificate shall bear a legend in substantially the following form: 
 The transferability of this certificate and the shares of Common Stock represented by it are subject to the terms and conditions (including conditions of forfeiture) contained in the Tidewater Inc. 2009 Stock
Incentive Plan (the “Plan”), and an agreement entered into between the registered owner and Tidewater Inc. (“the Company”) thereunder. Copies of the Plan and the agreement are on file at the principal office of the Company.

 Alternatively, in the discretion of the Company, ownership of the shares of restricted stock and the appropriate restrictions shall be
reflected in the records of the Company’s transfer agent and no physical certificates shall be issued prior to vesting. 
 7.4 Dividends on Restricted Stock. Any and all cash and stock dividends paid with respect to the shares of restricted stock shall be subject to any restrictions on transfer, forfeitability provisions, or reinvestment requirements as
the Committee may, in its discretion, prescribe in the Incentive Agreement. 
 7.5 Forfeiture. In the event of the
forfeiture of any shares of restricted stock under the terms provided in the Incentive Agreement (including any additional shares of restricted stock that may result from the reinvestment of cash and stock dividends, if so provided in the Incentive
Agreement), such forfeited shares shall be surrendered and the certificates cancelled. The participants shall have the same rights and privileges, and be subject to the same forfeiture provisions, with respect to any additional shares received
pursuant to Section 13.5 due to a recapitalization or other change in capitalization. 
 7.6 Expiration of
Restricted Period. Upon the expiration or termination of the Restricted Period and the satisfaction of any other conditions prescribed by the Committee, the restrictions applicable to the restricted stock shall lapse and, unless otherwise
instructed by the participant, a stock certificate for the number of shares of restricted stock with respect to which the restrictions have lapsed shall be delivered, free of all such restrictions and legends, except any that may be imposed by law,
to the participant or the participant’s estate, as the case may be. 
  

 6 

 7.7 Rights as a Stockholder. Subject to the terms and conditions of the Plan
and subject to any restrictions on the receipt of dividends that may be imposed in the Incentive Agreement, each participant receiving restricted stock shall have all the rights of a stockholder with respect to shares of stock during the Restricted
Period, including without limitation, the right to vote any shares of Common Stock. 
 8. Restricted Stock Units. 
 8.1 Grant of Restricted Stock Units. A restricted stock unit, or RSU, represents the right to receive from the Company on the
respective scheduled vesting or payment date for such RSU, one share of Common Stock. An award of RSUs may be subject to the attainment of specified performance goals or targets, forfeitability provisions and such other terms and conditions as the
Committee may determine, subject to the provisions of the Plan. To the extent an award of RSUs is intended to qualify as performance-based compensation under Section 162(m), it must be granted subject to the attainment of performance goals as
described in Section 11 and meet the additional requirements imposed by Section 162(m). 
 8.2 Vesting
Period. At the time an award of RSUs is made, the Committee shall establish a period of time during which the restricted stock units shall vest (the “Vesting Period”). Each award of restricted stock units may have a different
Vesting Period. The Vesting Period shall be a minimum of three years with incremental vesting over the three-year period permitted, with the following exceptions: 
 (a) If the vesting of RSUs is based upon the attainment of performance goals as described in Section 11, the Vesting Period
shall be a minimum of one year. 
 (b) No minimum Vesting Period applies to grants to Outside Directors, to grants issued
in payment of cash amounts earned under the Company’s annual incentive plan, or to grants made under Section 5.3(d). 
 An
acceleration of the expiration of the Vesting Period shall occur (1) as provided under Section 13.3 in the event of termination of employment under the circumstances provided in the Incentive Agreement, and (2) as described in
Section 12 in the event of a Change of Control of the Company. 
 8.3 Dividend Equivalent Accounts.
Subject to the terms and conditions of this Plan and the applicable Incentive Agreement, as well as any procedures established by the Committee, prior to the expiration of the applicable Vesting Period of an RSU granted to a participant hereunder,
the Committee may determine to pay dividend equivalent rights with respect to RSUs, in which case, unless determined by the Committee to be paid currently, the Company shall establish an account for the participant and reflect in that account any
securities, cash or other property comprising any dividend or property distribution with respect to the share of Common Stock underlying each RSU. The participant shall have rights to the amounts or other property credited to such account.

  

 7 

 8.4 Rights as a Stockholder. Subject to the restrictions imposed under the
terms and conditions of this Plan and subject to any other restrictions that may be imposed in the Incentive Agreement, each participant receiving restricted stock units shall have no rights as a stockholder with respect to such restricted stock
units until such time as shares of Common Stock are issued to the participant. 
 9. Stock Appreciation Rights. 
 9.1 Grant of Stock Appreciation Rights. A stock appreciation right, or SAR, is a right to receive, without payment to the
Company, a number of shares of Common Stock, cash, or any combination thereof, the number or amount of which is determined pursuant to the formula set forth in Section 9.5. Each SAR granted by the Committee under the Plan shall be
subject to the terms and conditions of the Plan and the applicable Incentive Agreement. 
 9.2 Number. Each SAR
granted to any participant shall relate to such number of shares of Common Stock as shall be determined by the Committee, subject to adjustment as provided in Section 13.5. 
 9.3 Duration and Time for Exercise. The term of each SAR shall be determined by the Committee, but shall not exceed a maximum
term of ten years. Each SAR shall become exercisable at such time or times during its term as shall be determined by the Committee. Notwithstanding the foregoing, the Committee may accelerate the exercisability of any SAR at any time in its
discretion in addition to the automatic acceleration of SARs under Section 12. 
 9.4 Exercise. A SAR
may be exercised, in whole or in part, by giving written notice to the Company, specifying the number of SARs that the holder wishes to exercise. The date that the Company receives such written notice shall be referred to herein as the
“Exercise Date.” The Company shall, within 30 days of an Exercise Date, deliver to the exercising holder certificates for the shares of Common Stock to which the holder is entitled pursuant to Section 9.5 or cash or
both, as provided in the Incentive Agreement. 
 9.5 Payment. The number of shares of Common Stock which shall be
issuable upon the exercise of a SAR payable in Common Stock shall be determined by dividing: 
 (a) the number of shares of
Common Stock as to which the SAR is exercised, multiplied by the amount of the appreciation in each such share (for this purpose, the “appreciation” shall be the amount by which the Fair Market Value (as defined in
Section 13.10) of a share of Common Stock subject to the SAR on the trading day prior to the Exercise Date exceeds the “Base Price,” which is an amount, not less than the Fair Market Value of a share of Common Stock on
the date of grant, which shall be determined by the Committee at the time of grant, subject to adjustment under Section 13.5); by 
  

 8 

 (b) the Fair Market Value of a share of Common Stock on the Exercise Date. 

No fractional shares of Common Stock shall be issued upon the exercise of a SAR; instead, the holder of a SAR shall be entitled to purchase the
portion necessary to make a whole share at its Fair Market Value on the Exercise Date. 
 If so provided in the Incentive Agreement, a SAR
may be exercised for cash equal to the Fair Market Value of the shares of Common Stock that would be issuable under this Section 9.5, if the exercise had been for Common Stock. 
 10. Other Stock-Based Awards. 
 10.1 Grant of Other Stock-Based Awards. Subject to the limitations described in Section 10.2 hereof, the Committee may grant to eligible participants “Other Stock-Based Awards,”
which shall consist of awards (other than options, restricted stock, RSUs, or SARs described in Sections 6 through 9 hereof) paid out in shares of Common Stock or the value of which is based in whole or in part on the value of shares of
Common Stock. Other Stock-Based Awards may be awards of shares of Common Stock, awards of phantom stock, or may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, shares of, or appreciation
in the value of, Common Stock (including, without limitation, securities convertible or exchangeable into or exercisable for shares of Common Stock), as deemed by the Committee consistent with the purposes of this Plan. The Committee shall determine
the terms and conditions of any Other Stock-Based Award (including which rights of a stockholder, if any, the recipient shall have with respect to Common Stock associated with any such award) and may provide that such award is payable in whole or in
part in cash. An Other Stock-Based Award may be subject to the attainment of such specified performance goals or targets as the Committee may determine, subject to the provisions of this Plan. To the extent that an Other Stock-Based Award is
intended to qualify as “performance-based compensation” under Section 162(m), it must be granted subject to the attainment of performance goals as described in Section 11 below and meet the additional requirements imposed
by Section 162(m). 
 10.2 Limitations. Other Stock-Based Awards granted under this Section 10
shall be subject to a minimum vesting period of three years with incremental vesting of portions of the award over the three-year period permitted, with the following exceptions: 
 (a) If the vesting of the award is based upon the attainment of performance goals as described in Section 11, the award
shall be subject to a minimum vesting period of one year. 
 (b) No minimum vesting period applies to grants to Outside
Directors, to grants issued in payment of cash amounts earned under the Company’s annual incentive plan, or to grants made under Section 5.3(d). 
 An acceleration of the expiration of the applicable vesting period shall occur (1) as provided under Section 13.3 in the event of termination of employment under the circumstances provided in the
Incentive Agreement, and (2) as described in Section 12 in the event of a Change of Control of the Company. 
  

 9 

 11. Performance Goals for Section 162(m) Awards. To the extent that shares of restricted
stock, RSUs, or Other Stock-Based Awards granted under the Plan are intended to qualify as “performance-based compensation” under Section 162(m), the vesting, grant, or payment of such awards shall be conditioned on the achievement of
one or more performance goals and must satisfy the other requirements of Section 162(m). The performance goals pursuant to which such awards shall vest, be granted, or be paid out shall be any or a combination of the following performance
measures applied to the Company, Tidewater, a division or a subsidiary: earnings per share; return on assets; an economic value added measure; shareholder return; earnings or earnings before interest, taxes, depreciation and amortization; stock
price; total shareholder return; return on equity; return on total capital; safety performance; reduction of expenses; increase in cash flow; free cash flow; income or net income; operating income or net operating income; gross profit; operating
profit or net operating profit; operating margin or profit margin; return on operating revenue; return on invested capital; return on capital employed; or market segment share. For any performance period, such performance objectives may be measured
on an absolute basis, relative to a group of peer companies selected by the Committee, relative to internal goals, or relative to levels attained in prior years. The performance goals may be subject to such adjustments as are specified in advance by
the Committee in accordance with Section 162(m). 
 12. Change of Control; Tender Offer or Exchange Offer. 
 12.1 Definitions. As used in this Section 12, the following words or terms shall have the meanings indicated:

 (a) Adoption Date shall mean the date of the Board’s adoption of this Plan. 
 (b) Affiliate (and variants thereof) shall mean a Person that controls, or is controlled by, or is under common control with,
another specified Person, either directly or indirectly. 
 (c) Beneficial Owner (and variants thereof), with
respect to a security, shall mean a Person who, directly or indirectly (through any contract, understanding, relationship or otherwise), has or shares (i) the power to vote, or direct the voting of, the security, and/or (ii) the power to
dispose of, or to direct the disposition of, the security. 
 (d) Business Combination shall mean the consummation
of a reorganization, merger or consolidation (including a merger or consolidation of the Company or any direct or indirect subsidiary of the Company), or sale or other disposition of all or substantially all of the assets of the Company. 

(e) Change of Control Value shall equal the amount determined by whichever of the following items is applicable: 

(i) the per share price to be paid to the Company’s stockholders in any such merger, consolidation or other reorganization;

  

 10 

 (ii) the price per share offered to the Company’s stockholders in any tender
offer or exchange offer whereby a Change of Control takes place; 
 (iii) in all other events, the Fair Market Value (as
defined in Section 13.10) per share of Common Stock into which such options being converted are exercisable, as determined by the Committee as of the date determined by the Committee to be the date of conversion of such options; or

 (iv) in the event that the consideration offered to the Company’s stockholders in any transaction described in
this Section 12 consists of anything other than cash, the Committee shall determine the fair cash equivalent of the portion of the consideration offered that is other than cash. 
 (f) Incumbent Board shall mean the individuals who, as of the Adoption Date, constitute the Board. 
 (g) Person shall mean a natural person or company, and shall also mean the group or syndicate created when two or more Persons
act as a syndicate or other group (including, without limitation, a partnership or limited partnership) for the purpose of acquiring, holding, or disposing of a security, except that Person shall not include an underwriter temporarily holding a
security pursuant to an offering of the security. 
 (h) Post-Transaction Corporation. 
 (i) Unless a Change of Control includes a Business Combination, Post-Transaction Corporation shall mean the Company after the
Change of Control. 
 (ii) If a Change of Control includes a Business Combination, Post-Transaction Corporation
shall mean the corporation resulting from the Business Combination unless, as a result of such Business Combination, an ultimate parent corporation controls the Company or all or substantially all of the Company’s assets either directly or
indirectly, in which case, Post-Transaction Corporation shall mean such ultimate parent corporation. 
 12.2 Change of
Control Defined. Unless otherwise provided in an Incentive Agreement, Change of Control shall mean: 
 (a) the
acquisition by any Person of Beneficial Ownership of 30% or more of the outstanding shares of the Common Stock, or 30% or more of the

  

 11 

 
combined voting power of the Company’s then outstanding securities; provided, however, that for purposes of this subsection (a), the following shall not constitute a Change of Control:

 (i) any acquisition (other than a Business Combination which constitutes a Change of Control under
Section 12.2(c)) of Common Stock directly from the Company, 
 (ii) any acquisition of Common Stock by the
Company or its subsidiaries, 
 (iii) any acquisition of Common Stock by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled by the Company, or 
 (iv) any acquisition of Common
Stock by any corporation pursuant to a Business Combination which does not constitute a Change of Control under Section 12.2(c); or 
 (b) members of the Incumbent Board cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Adoption Date whose election or
nomination for election by the Company’s shareholders was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered a member of the Incumbent Board, unless such individual’s initial
assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the
Incumbent Board; or 
 (c) a Business Combination, unless, immediately following such Business Combination, 
 (i) the individuals and entities who were the Beneficial Owners of the Company’s outstanding Common Stock and the Company’s
voting securities entitled to vote generally in the election of directors immediately prior to such Business Combination have direct or indirect Beneficial Ownership, respectively, of more than 50% of the then outstanding shares of common stock, and
more than 50% of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, of the Post-Transaction Corporation, and 
 (ii) except to the extent that such ownership existed prior to the Business Combination, no Person (excluding the Post-Transaction
Corporation and any employee benefit plan or related trust of either the Company, the Post-Transaction Corporation or any subsidiary of either corporation) Beneficially Owns, directly or indirectly, 30% or more of the

  

 12 

 
then outstanding shares of common stock of the corporation resulting from such Business Combination or 30% or more of the combined voting power of the then outstanding voting securities of such
corporation, and 
 (iii) at least a majority of the members of the board of directors of the Post-Transaction Corporation
were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or 
 (d) approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 
 12.3 Effect of a Change of Control. 
 (a) Notwithstanding any other provision of the Plan (or any provision of any agreement with respect to any grant hereunder), upon or
immediately prior to any Change of Control (as defined in Section 12.2), all outstanding Incentives granted pursuant to the Plan shall automatically become fully vested and exercisable, all restrictions or limitations on any outstanding
Incentives shall lapse, and all performance criteria and other conditions relating to the payment of Incentives shall be deemed to be achieved or waived by the Company without the necessity of action by any person. 
 (b) As used in this Section 12.3, “immediately prior” to the Change of Control shall mean sufficiently in advance
of the Change of Control to permit the grantee to take all steps reasonably necessary (i) to exercise any option or SAR fully, and (ii) to deal with the shares purchased or acquired under any Incentive so that all types of shares may be
treated in the same manner in connection with the Change of Control as the shares of Common Stock of other shareholders. 
 (c) To the extent, if any, required by section 422(d) of the Code, incentive stock options which become exercisable immediately prior to a Change of Control pursuant to this Section 12.3 shall thereby become non-qualified stock
options. Subject to Section 12.5 but notwithstanding any other provision of the Plan, including, without limitation, Section 12.4 (or any provision of any agreement with respect to any grant hereunder), (i) any stock
option or SAR which becomes exercisable pursuant to this Section 12.3 shall remain exercisable until the earlier of the end of the option term or the lapse of the option, and (ii) any lapse and deemed waiver of restrictions and
limitations on any restricted stock units, shares of restricted stock and any Other Stock-Based Awards pursuant to this Section 12.3 shall be a permanent lapse and deemed waiver of such restrictions and limitations. 
 12.4 Effect of a Tender Offer or Exchange Offer. If any corporation, person or other entity (other than the Company) makes a
tender offer or exchange offer for shares of the Common Stock pursuant to which purchases are made (an “Offer”), then from and after the date of the first purchase of the Common Stock pursuant to the Offer

  

 13 

 
(the “Acceleration Date”), all outstanding options and SARs shall automatically become fully exercisable, all restrictions or limitations on any Incentives shall lapse and all
performance criteria and other conditions relating to the payment of Incentives shall be deemed to be achieved or waived by the Company, without the necessity of any action by any person, for a period of 30 calendar days following the Acceleration
Date. Subject to the other provisions of this Section 12, following the expiration of the 30-day period, any options or SARs not exercised and any shares of Common Stock issued hereunder not tendered or exchanged shall again be subject
to the terms and conditions applicable prior to the Offer. 
 12.5 Committee Discretion to Set Terms of Exercise or
Exchange. No later than 30 days after the approval by the Board of a Change of Control of a type described in subsections (c) or (d) of Section 12.2 and no later than 30 days after a Change of Control of a type described in
subsection (a) and (b) of Section 12.2, the Committee (meaning either the Nominating and Corporate Governance with regard to grants made to Outside Directors or the Compensation Committee with regard to all other grants, as the
applicable Committee was composed immediately prior to such Change of Control and notwithstanding any removal or attempted removal of some or all of the members thereof as directors or relevant Committee members), acting in its sole discretion
without the consent or approval of any participant, may act to effect one or more of the alternatives listed below and such act by the Committee may not be revoked or rescinded by persons not members of the Committee immediately prior to the Change
of Control: 
 (a) require that all outstanding options and SARs be exercised on or before a specified date (before or
after such Change of Control, but no earlier than the date on which all such options and SARs have become fully vested and exercisable) fixed by the Committee, after which specified date all unexercised options and SARs shall lapse and terminate;

 (b) make such equitable adjustments to Incentives then outstanding as the Committee deems appropriate to reflect such
Change of Control (provided, however, that the Committee may determine in its sole discretion that no adjustment is necessary); 
 (c) provide for mandatory conversion of some or all of the outstanding options and SARs held by some or all participants as of a date (before or after such Change of Control) specified by the Committee, in which event such options and SARs
shall be deemed automatically cancelled and the Company shall pay, or cause to be paid, to each such participant an amount of cash per share equal to the excess, if any, of the Change of Control Value of the shares subject to such option and SAR
over the exercise price(s) of such options and SARs or, in lieu of such cash payment, the issuance of Common Stock or securities of an acquiring entity having a Fair Market Value (as defined in Section 13.10) equal to such excess; or

 (d) provide that thereafter upon any exercise of an option or SAR the participant shall be entitled to purchase under
such option or SAR, in lieu of the number of shares of Common Stock then covered by such option or SAR, the

  

 14 

 
number and class of shares of stock or other securities or property (including, without limitation, cash) to which the participant would have been entitled pursuant to the terms of the agreement
providing for the reorganization, merger, consolidation, or asset sale, if immediately prior to such Change of Control, the participant had been the holder of record of the number of shares of Common Stock then covered by such options and SARs.

 13. General. 
 13.1 Duration. No Incentives may be granted under the Plan after July 9, 2019; provided, however, that subject to Section 13.9, the Plan shall remain in effect after such date with respect
to Incentives granted prior to that date, until all such Incentives have either been satisfied by the issuance of shares of Common Stock or otherwise been terminated under the terms of the Plan and all restrictions imposed on shares of Common Stock
in connection with their issuance under the Plan have lapsed. 
 13.2 Transferability. No Incentives granted
hereunder may be transferred, pledged, assigned or otherwise encumbered by a participant except: (a) by will; (b) by the laws of descent and distribution; (c) pursuant to a domestic relations order, as defined in the Code; or
(d) as to options only, if permitted by the Committee and so provided in the Incentive Agreement or an amendment thereto, (i) to Immediate Family Members, (ii) to a partnership in which the participant and/or Immediate Family Members,
or entities in which the participant and/or Immediate Family Members are the sole owners, members or beneficiaries, as appropriate, are the sole partners, (iii) to a limited liability company in which the participant and/or Immediate Family
Members, or entities in which the participant and/or Immediate Family Members are the sole owners, members or beneficiaries, as appropriate, are the sole members, or (iv) to a trust for the sole benefit of the participant and/or Immediate
Family Members. “Immediate Family Members” shall be defined as the spouse and natural or adopted children or grandchildren of the participant and their spouses. To the extent that an incentive stock option is permitted to be
transferred during the lifetime of the participant, it shall be treated thereafter as a nonqualified stock option. Any attempted assignment, transfer, pledge, hypothecation or other disposition of Incentives, or levy of attachment or similar process
upon Incentives not specifically permitted herein, shall be null and void and without effect. 
 13.3 Effect of
Termination of Employment or Death. In the event that a participant ceases to be an employee of the Company or to provide services to the Company for any reason, including death, disability, early retirement, or normal retirement, any Incentives
may be exercised, shall vest, or shall expire at such times as may be determined by the Committee and provided in the Incentive Agreement. 
 13.4 Additional Conditions. Anything in this Plan to the contrary notwithstanding: (a) the Company may, if it shall determine it necessary or desirable for any reason, at the time of award of any
Incentive or the issuance of any shares of Common Stock pursuant to any Incentive, require the recipient of the Incentive, as a condition to the receipt thereof or to the receipt of shares of Common Stock issued pursuant thereto, to deliver to the
Company a written representation of present intention

  

 15 

 
to acquire the Incentive or the shares of Common Stock issued pursuant thereto for his own account for investment and not for distribution; and (b) if at any time the Company further
determines, in its sole discretion, that the listing, registration, or qualification (or any updating of any such document) of any Incentive or the shares of Common Stock issuable pursuant thereto is necessary on any securities exchange or under any
federal or state securities or blue sky law, or that the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection with the award of any Incentive, the issuance of shares of Common Stock
pursuant thereto, or the removal of any restrictions imposed on such shares, such Incentive shall not be awarded or such shares of Common Stock shall not be issued or such restrictions shall not be removed, as the case may be, in whole or in part,
unless such listing, registration, qualification, consent, or approval shall have been effected or obtained free of any conditions not acceptable to the Company. 
 13.5 Adjustment. In the event of any recapitalization, reclassification, stock dividend, stock split, combination of shares, or
other similar change in the Common Stock, the number of shares of Common Stock then subject to the Plan, including shares subject to outstanding Incentives, and any and all other limitations provided in the Plan limiting the number of shares of
Common Stock that may be issued hereunder, shall be adjusted in proportion to the change in outstanding shares of Common Stock. In the event of any such adjustments, the price of any option, the Base Price of any SAR, and the performance objectives
of any Incentive, shall also be adjusted as and to the extent appropriate, in the reasonable discretion of the Committee, to provide participants with the same relative rights before and after such adjustment. No substitution or adjustment shall
require the Company to issue a fractional share under the Plan and the substitution or adjustment shall be limited by deleting any fractional share. 
 13.6 Withholding. 
 (a) The Company shall have the right to withhold from any
payments made or stock issued under the Plan or to collect as a condition of payment, issuance or vesting, any taxes required by law to be withheld. At any time that a participant is required to pay to the Company an amount required to be withheld
under applicable income tax laws in connection with an Incentive, the participant may, subject to Section 13.6(b) below, satisfy this obligation in whole or in part by electing (the “Election”) to deliver currently owned
shares of Common Stock or to have the Company withhold shares of Common Stock, in each case having a value equal to the minimum statutory amount required to be withheld under federal, state, and local law. The value of the shares to be delivered or
withheld shall be based on the Fair Market Value of the Common Stock on the date that the amount of tax to be withheld shall be determined (“Tax Date”). 
 (b) Each Election must be made prior to the Tax Date. For participants not subject to Section 16 of the 1934 Act, The Committee
may disapprove of any Election, may suspend or terminate the right to make Elections, or may provide with respect to any Incentive that the right to make Elections shall not apply to such Incentive. If a participant makes an election under
Section 83(b) of the Code with respect to shares of restricted stock, an Election to have shares withheld to satisfy withholding taxes is not permitted to be made. 
  

 16 

 13.7 No Continued Employment. No participant under the Plan shall have any
right, because of his or her participation, to continue in the employ of the Company for any period of time or to any right to continue his or her present or any other rate of compensation. 
 13.8 Deferral Permitted. Payment of an Incentive may be deferred at the option of the participant if permitted in the Incentive
Agreement. Any deferral arrangements shall comply with Section 409A of the Code. 
 13.9 Amendments to or
Termination of the Plan. The Board may amend or discontinue this Plan at any time; provided, however, that no such amendment may: 
 (a) materially revise the Plan without the approval of the stockholders; 
 (b) amend
Section 6.6 to permit repricing of options or SARs without the approval of stockholders; or 
 (c) materially impair,
without the consent of the recipient, an Incentive previously granted, except that the Company retains all of its rights under Section 12. 
 A material revision of the Plan as used in this Section 13.9 includes (1) except for adjustments permitted herein, a material increase to the maximum number of shares of Common Stock that may be issued through the Plan;
(2) a material increase to the benefits accruing to participants under the Plan; (3) a material expansion of the classes of persons eligible to participate in the Plan; (4) an expansion of the types of awards available for grant under
the Plan; (5) a material extension of the term of the Plan; and (6) a material change that reduces the price at which shares of Common Stock may be offered through the Plan. 
 13.10 Definition of Fair Market Value. Whenever “Fair Market Value” of Common Stock shall be determined for purposes
of this Plan, it shall be the closing sale price on the consolidated transaction reporting system for the New York Stock Exchange on the applicable date, or if no sale of the Common Stock shall have been made on that day, on the next preceding day
on which there was a sale of the Common Stock. 
  

 17

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