Document:

Exhibit

Exhibit 10.1

    
Brinker International, Inc. 
F2021 Performance Share Plan

Pursuant to Section 3 of the Brinker International, Inc. Stock Option and Incentive Plan (the “SOIP”), the Compensation Committee of the Board of Directors of Brinker International, Inc. (the “Committee”) may grant stock awards subject to such conditions, restrictions and contingencies as the Committee may determine.  
The Brinker International, Inc. F2021 Performance Share Plan (the “Plan”) is hereby adopted pursuant to the Committee’s authority under the SOIP to provide greater incentive to officers and key employees of Brinker International, Inc. (the “Company”) and its affiliates to achieve the highest level of individual performance and to encourage such officers or key employees to meet or exceed specified performance goals in order to contribute to the overall success of the Company.
The Plan is in all respects subject to the provisions of the SOIP.
1.Definitions.  For purposes of the Plan, the terms listed below are defined as follows:
a.Adjusted EBITDA. The term “Adjusted EBITDA” means, with respect to the Company or one of the Company’s Brands (as applicable), the annual earnings before interest, taxes, depreciation and amortization for the Company or applicable Brand, adjusted to exclude items recorded in the Company’s “Other Gains and Charges” caption on the consolidated statement of comprehensive income and further adjusted as set forth in the Appendix to this Plan.
b.Affiliate.  The term “Affiliate” means (i) a subsidiary of the Company or (ii) any entity that is designated by the Committee as a participating employer under the Plan, provided that the Company directly or indirectly owns at least 20% of the combined voting power of the common stock of such entity.
c.Board. The term “Board” means the Board of Directors of the Company. 
d.Brand.  The term “Brand” means each of the restaurant brands wholly owned and operated by the Company.
e.Cause.  The term “Cause” means one or more of the following:  
(i)An act of fraud, misappropriation or embezzlement by the Participant in connection with the Company or a Related Company as determined by the affirmative vote of at least a majority of the Board or executive committee thereof;
(ii)Gross mismanagement or gross neglect of the Participant’s duties to the Company or a Related Company and its policies, procedures or guidelines as determined by the affirmative vote of at least a majority of the Board or executive committee thereof; or
(iii)Conviction of the Participant by a court of competent jurisdiction of a felony. 
f.Change in Control.  The term “Change in Control” means:
(i)a sale, transfer or other conveyance of all or substantially all of the assets of the Company on a consolidated basis; or
(ii)the acquisition of beneficial ownership (as such term is defined in Rule 13d-3 promulgated under the Exchange Act) by any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than the Company, directly or indirectly, of securities representing 50% or more of the total number of votes that may be cast for the election of directors of the Company; or

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(iii)the failure at any annual or special meetings of the Company’s shareholders held during the three-year period following a “solicitation in opposition” as defined in Rule 14a-6 promulgated under the Exchange Act, of a majority of the persons nominated by the Company in the proxy material mailed to shareholders by the management of the Company to win election to seats on the Board (such majority calculated based upon the total number of persons nominated by the Company failing to win election to seats on the Board divided by the total number of Board members of the Board as of the beginning of such three‐year period), excluding only those who die, retire voluntarily, are disabled or are otherwise disqualified in the interim between their nomination and the date of the meeting.
g.Code Section 409A.  The term “Code Section 409A” means Section 409A of the Internal Revenue Code of 1986, as amended, and all Treasury Regulations and guidance promulgated thereunder.
h.Good Reason. The term “Good Reason” means the satisfaction of all of the following requirements:
(i)One or more of the following facts and circumstances exist: (A) a reduction in the Executive Participant’s then current base salary other than a general reduction in base salary that affects all similarly situated executives in substantially the same proportions; (B) a reduction in the Executive Participant’s target annual bonus opportunity; (C) a relocation of the principal location at which the Executive Participant is required to provide services by more than fifty (50) miles; (D) the Company’s failure to obtain an agreement from any successor to the Company to assume and agree to perform the obligations under the Plan in the same manner and to the same extent that the Company would be required to perform, except where such assumption occurs by operations of law; (E) a material, adverse change in the Executive Participant’s title, reporting relationship, authority, duties or responsibilities; or (F) in the case of an Executive Participant who is the Chief Executive Officer of the Company only, a failure of any successor to the Company to nominate the Executive Participant for election by shareholders to the successor company’s board of directors; and
(ii)the Executive Participant shall have provided the Company written notice within thirty (30) days of his or her knowledge or reason to know of the existence of any fact or circumstance constituting Good Reason, the Company shall have failed to cure or eliminate such fact(s) or circumstance(s) within thirty (30) days of its receipt of such notice, and the resulting termination of employment must occur within thirty (30) days following expiration of such cure period.
i.Disability.  Except as otherwise provided by the Committee, the Participant will be considered to have a “Disability” during the period in which the Participant is unable, by reason of a medically determinable physical or mental impairment, to engage in any substantial gainful activity, which condition is expected to have a duration of not less than 120 days.
j.Executive Participant.  The term “Executive Participant” means a Participant who is the Chief Executive Officer of the Company or any executive vice president or senior vice president of the Company designated by the Committee at the time an Award is granted to such Participant.
k.Measurement Period.  The term “Measurement Period” means a period of three consecutive Company fiscal years, or such other period as the Committee designates in writing prior to granting an Award pursuant to the Plan, beginning on the date described in a Participant’s Award (the “Regular Measurement Period”); provided, however, that in the event of a Change in Control, the Measurement Period will end on the effective date of the Change in Control; provided further, that if the Target Adjusted EBITDA is 

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not achieved in the Regular Measurement Period then the Measurement Period will be extended by one fiscal year.
l.Participant.  The term “Participant” means an individual who has been granted an Award under this Plan.
m.Performance Period.     The term “Performance Period” means a period of three consecutive Company fiscal years, or such other period as the Committee designates in writing prior to granting an Award pursuant to the Plan, beginning on the date described in a Participant’s Award.  The Performance Period with respect to an Award will commence at the same time as the corresponding Measurement Period for the Award.  The Performance Period and Measurement Period for an Award will run for the same duration unless a Change in Control occurs during the Performance Period, in which case the Measurement Period, but not the Performance Period, will end as of the effective date of the Change in Control.
n.Performance Share.  The term “Performance Share” means the right to receive a share of Stock upon satisfaction of the performance metrics and/or other requirements established by the Committee.  
o.Retirement Eligible. A Participant is “Retirement Eligible” if the Participant meets or will meet by the end of the Performance Period, either of the following: (i) the Participant has satisfied the Rule of 70 and is at least age 55 or (ii) the Participant is at least age 65 regardless of satisfaction of the Rule of 70.
p.Rule of 70.  The term “Rule of 70” means that the sum of the Participant’s age and the Participant’s years of continuous service (measured from a Participant’s most recent date of hire or rehire only and taking into account partial years) with the Company or an Affiliate equals or exceeds 70.
q.SOIP Definitions.  Except where the context clearly implies or indicates the contrary, a word, term, or phrase used but not defined in the Plan will have the meaning set forth in the SOIP.
r.Target Adjusted EBITDA.  The term “Target Adjusted EBITDA” means Adjusted EBITDA of either the Company or a Brand, subject to adjustments set forth in the Appendix.  The Target Adjusted EBITDA is determined by the Board.
2.Performance Shares.  
a.Awards.  A Participant will receive a grant of a target number of Performance Shares determined by the Committee, which will be set forth in the Participant’s award letter or other notification (an “Award”) together with (i) a designation of whether the Participant is eligible to earn Performance Shares based on achievement of the Company’s Target Adjusted EBITDA or achievement of a Brand’s Target Adjusted EBITDA, and (ii) the amount determined by the Board to be the Target Adjusted EBITDA for the Company or the Brand, as applicable.
b.Achieved Shares.  The number of a Participant’s Performance Shares that may be earned under any Award (“Achieved Shares”) will be based on the Company’s or the Brand’s, as applicable, Adjusted EBITDA during the Measurement Period compared to the applicable Target Adjusted EBITDA. To determine the Achieved Shares that may be earned by a Participant (subject to the other terms and conditions of this Plan), the Participant’s target number of Performance Shares is multiplied by the “Distribution Percentage” corresponding to the earliest fiscal year in which the Target Adjusted EBITDA is achieved, as demonstrated in the table below: 

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	Fiscal Year in which the Target Adjusted EBITDA is achieved
	Distribution Percentage 

	2022
	150%

	2023
	100%

	2024
	50%

c.Independent Measurement.  In the event that one or more Participants are given Awards designating their eligibility to earn Performance Shares is dependent on achievement of a Target Adjusted EBITDA for a Brand instead of the Company, then the achievement of the Target Adjusted EBITDA for the Company and the applicable Brand shall be determined independently and Achieved Shares for the different Participants may be earned independent of other Participants.  
3.Earning Achieved Shares.
a.General Rule.  In order to earn the Achieved Shares under the Plan, a Participant must remain continuously employed by the Company or an Affiliate through the last day of the applicable Performance Period, except as otherwise specifically provided in this Plan. Notwithstanding any provision of the Plan to the contrary, a Participant shall not earn any Achieved Shares following termination of employment.
b.Death or Disability, Notwithstanding Section 3(a), if a Participant’s employment with the Company and its Affiliates terminates prior to the last day of the Performance Period due to the Participant’s death or by the Company due to the Participant’s Disability, the Participant (or the Participant’s beneficiary determined in accordance with Section 10) will earn  a portion of the Participant’s Achieved Shares determined for the Participant at the end of the Measurement Period pursuant to Section 2, if any, based on the number of complete months that the Participant was employed by the Company or an Affiliate during the Performance Period, divided by the total number of complete months in the Performance Period.
c.Retirement Before Age 60.  Notwithstanding Section 3(a), if a Participant ceases to be employed with the Company and its Affiliates prior to the last day of the Performance Period, and as of the date of the termination the Participant has (i) satisfied the Rule of 70 and (ii) the Participant is at least age 55 but not yet age 60, the Participant will earn, as of the date of termination, a portion of the Achieved Shares determined for the Participant at the end of the Measurement Period pursuant to Section 2, if any, based on the number of complete months that the Participant was employed by the Company or an Affiliate during the Performance Period, divided by the total number of complete months in the Performance Period. 
d.Retirement at or After Age 60.  Notwithstanding Section 3(a), if a Participant ceases to be employed with the Company and its Affiliates prior to the last day of the Performance Period, and as of the date of the termination the Participant has (i) satisfied the Rule of 70 and is at least age 60, or (ii) the Participant is at least age 65 regardless of satisfaction of the Rule of 70, the Participant will earn, as of the date of termination, all of the Achieved Shares determined for the Participant at the end of the Measurement Period pursuant to Section 2, if any.
e.Involuntary Termination.  
(i)Involuntary Terminations without Cause Not Following a Change in Control.  Notwithstanding Section 3(a), if a Participant is involuntarily terminated for a reason other than for Cause prior to the last day of the Performance Period, the Participant will earn, as of the date of termination from employment, except as otherwise provided below, a portion of the Participant’s Achieved Shares determined for the Participant at the end of the Measurement Period pursuant to Section 2, if any, based on the number 

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of complete months that the Participant was employed by the Company or an Affiliate during the Performance Period, divided by the total number of complete months in the Performance Period.
(ii)Certain Involuntary Terminations without Cause or Terminations (by Executive Participants only) for Good Reason Following a Change in Control. Notwithstanding Sections 3(a) and 3(e)(i), in the event there has been a Change in Control during the Performance Period and the Awards were not earned as of the effective date of the Change in Control pursuant to Section 3(f), then if a Participant is involuntarily terminated for a reason other than Cause or if an Executive Participant terminates for Good Reason following the Change in Control and prior to the last day of the Performance Period, the Participant will earn, as of the date of termination, all of the Participant’s Achieved Shares determined for the Participant at the end of the Measurement Period pursuant to Section 2, if any.
f.Change in Control.  Notwithstanding the provisions of Section 3(a), in the event of a Change in Control while the Participant remains in employment, if the Awards are not assumed or replaced with awards of substantially equal value by the acquiring entity in such a Change in Control and/or cease to remain outstanding immediately following the Change in Control, each Participant will earn, as of the effective date of the Change in Control, the Achieved Shares determined for the Participant at the end of the Measurement Period pursuant to Section 2, but in no event less than 100% of the target number of the Participant’s Performance Shares.  After a Change in Control, references to the “Company” as they relate to this Plan shall refer to the successor entity.
g.Most Favorable Provision Applies.  For the avoidance of doubt, if two or more of Sections 3(b) through 3(f) above apply, then the applicable Section that results in the Participant earning the greatest number of Achieved Shares shall control.
4.Forfeiture.  Except as otherwise provided in Section 3, if a Participant ceases to be employed by the Company or any Affiliate prior to the last day of the Performance Period, the Participant will immediately forfeit the Performance Shares and all interest in the Award as of the date of the Participant’s termination and the Participant will not be entitled to receive any payment with respect to the Performance Shares.  Notwithstanding any provision of the Plan to the contrary, the Participant will forfeit any Performance Shares immediately and without notice upon (A) the termination of the Participant’s employment for Cause, (B) the Participant’s breach of any confidentiality agreement or similar agreement pertaining to the confidentiality and nondisclosure of proprietary information, including but not limited to trade secrets, of the Company or any Affiliate, or (C) the Participant’s commission of any act of malfeasance or wrongdoing affecting the Company or any Affiliate.  Furthermore, and notwithstanding Section 3, if subsequent to the Participant’s termination of employment with the Company or any Affiliate (other than due to a termination following a Change in Control without Cause or for Good Reason, as applicable) and prior to the end of the Performance Period, the Participant becomes employed by, consults with, and/or participates as an officer, director, employee, independent contractor, adviser, consultant, partner, principal, or shareholder (with more than five percent (5%) equity) with any entity which owns and/or operates (either directly or indirectly) or is engaged, or planning to be engaged (either directly or indirectly) in the ownership and /or operation of any of the “Competitive Restaurants” listed below or successors thereto, then the Participant’s Award will be immediately forfeited.

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	1
	Applebee's
	30
	Lazy Dog

	2
	Beef O'Brady's
	31
	Longhorn Steakhouse

	3
	Bertucci's
	32
	Miller's Ale House Restaurant

	4
	BJ's Restaurants
	33
	Morton's

	5
	Bonefish Grill
	34
	North Italia

	6
	BRAVO! Cucina Italiana
	35
	O'Charleys

	7
	Brio Tuscan Grille
	36
	Olive Garden

	8
	Bubba’s 33
	37
	On The Border

	9
	Buca di Beppo
	38
	Outback Steakhouse

	10
	Buffalo Wild Wings
	39
	Panera

	11
	California Pizza Kitchen
	40
	PF Chang's China Bistro

	12
	Carino's Italian Grill
	41
	Pizza Hut

	13
	Carraba's Italian Grill
	42
	Red Robin

	14
	Cheddar's Scratch Kitchen
	43
	Romano's Macaroni Grill

	15
	Cheesecake Factory
	44
	Ruby Tuesday

	16
	Chipotle Mexican Grill
	45
	Ruth's Chris Steak House

	17
	Chuy's
	46
	Saltgrass Steak House

	18
	Cracker Barrel
	47
	Seasons 52

	19
	Dave & Busters
	48
	Shake Shack

	20
	Dickey's Barbecue
	49
	Texas Roadhouse

	21
	Firebirds Wood Fired Grill
	50
	TGI Fridays

	22
	Fleming's Prime Steakhouse
	51
	The Capital Grille

	23
	Fogo De Chao
	52
	The Old Spaghetti Factory

	24
	Fuddruckers
	53
	Top Golf

	25
	Hooters
	54
	True Food Kitchen

	26
	Houlihans
	55
	Uno Chicago Grill

	27
	Houston's/Hillstone
	56
	Wingstop

	28
	Il Fornaio Restaurant
	57
	Yard House

	29
	KFC
	 
	 

5.Payment of Earned Achieved Awards.  
a.Each earned Achieved Share will entitle a Participant to receive one share of Stock (or other consideration of equal value, as determined by the Committee, in the event payment is made following a Change in Control).  
b.Subject to Section 6 and except as provided below, shares of Stock (or other consideration, as applicable) with respect to earned Achieved Shares will be issued to each Participant in payment of an Award during the 60-day period immediately following the conclusion of the applicable Performance Period.  
c.Notwithstanding Section 5(b), subject to Section 6, in the event a Participant has a termination of employment described in Section 3(b) or 3(e) herein and the Participant does not meet the definition of Retirement Eligible, shares of Stock (or other consideration, as applicable) with respect to earned Achieved Shares will be issued to such Participant in payment of an Award during the 60-day period immediately following the conclusion of the Performance Period.  
d.The Company will issue a like number of shares of Stock (or other consideration, as applicable) to the Participant, and the Participant will own such shares of Stock (or other consideration, as 

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applicable) free of all restrictions described herein except Section 4 and Section 9.  A Participant will not have the right to designate the taxable year of payment.  At no time prior to the end of the Performance Period will any Stock (or other consideration, as applicable) be issued pursuant to an Award except as specifically provided herein.  
6.Section 409A.  
a.Although the Company does not guarantee the tax treatment of any payments or benefits under the Plan, the intent of the Company is that the payments and benefits under this Plan be exempt from, or comply with, Code Section 409A and to the maximum extent permitted the Plan shall be limited, construed and interpreted in accordance with such intent.  In no event whatsoever shall the Company or its Affiliates or their respective officers, directors, employees or agents be liable for any additional tax, interest or penalties that may be imposed on a Participant by Code Section 409A or damages for failing to comply with Code Section 409A.
b.Notwithstanding the foregoing or any other provision of this Plan to the contrary, if at the time of a Participant's “separation from service” (within the meaning of Code Section 409A), the Participant is a "Specified Employee," then the Company will defer the payment of any nonqualified deferred compensation subject to Code Section 409A payable upon separation from service (without any reduction in such payments or benefits ultimately paid or provided to the Participant) until the date that is six (6) months following separation from service or, if earlier, the earliest other date as is permitted under Code Section 409A (and any amounts that otherwise would have been paid during this deferral period will be paid in a lump sum on the day after the expiration of the six (6) month period or such shorter period, if applicable).  A Participant will be a "Specified Employee" for purposes of this Plan if, on the date of the Participant's separation from service, the Participant is an individual who is, under the method of determination adopted by the Company designated as, or within the category of employees deemed to be, a "Specified Employee" within the meaning and in accordance with Treasury Regulation Section 1.409A-1(i).  The Company shall determine in its sole discretion all matters relating to who is a "Specified Employee" and the application of and effects of the change in such determination. 
c.Notwithstanding anything in this Plan or elsewhere to the contrary, a termination of employment shall not be deemed to have occurred for purposes of any provision of this Plan providing for the payment of any amounts or benefits that constitute “non-qualified deferred compensation” within the meaning of Code Section 409A upon or following a termination of a Participant’s employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of this Plan, references to a “termination,” “termination of employment” or like terms shall mean “separation from service” and the date of such separation from service shall be the date of termination for purposes of any such payment or benefits. 
7.Dividends and Dividend Equivalents.  A Participant will have no voting rights or dividend rights with respect to the Performance Shares or any shares of Stock underlying the Performance Shares until payment of earned Achieved Shares in accordance with Section 5 and then only with respect to earned Achieved Shares.  No Participant will be entitled to receive any cash dividends or dividend equivalents with respect to Performance Shares until payment of earned Achieved Shares and then only with respect to earned Achieved Shares.  However, at the same time that shares of Stock are issued under Section 5 or Section 6, the Participant (or the Participant’s beneficiary determined in accordance with Section 10) will also receive a lump sum cash payment equal to the amount of cash dividends paid by the Company that were declared prior to payment of earned Achieved Shares (but in no event later than the end of the Performance Period) on the number of shares of Stock issued to the Participant (or the Participant’s beneficiary).

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8.Capital Adjustments and Reorganizations.  The number of Performance Shares covered by an Award will be subject to equitable adjustment, as determined by the Committee, to reflect any stock dividend, stock split, share combination, separation, reorganization, liquidation or the like, of or by the Company.  In the event of any such transaction or event, the Committee, in its discretion, may provide in substitution for the Award such alternative consideration as it, in good faith, may determine to be equitable in the circumstances and may require in connection with such substitution the surrender of the Award so replaced.  
9.Clawback Provisions.  If the Participant is an officer of the Company (“Officer”) and the Board, or an appropriate committee thereof, has determined that any fraud, negligence, or intentional misconduct by the Officer was a significant contributing factor to the Company having to restate all or a portion of its financial statement(s), the Board or committee shall take, in its discretion, such action as it deems necessary to remedy the misconduct and prevent its recurrence.  In determining what remedies to pursue, the Board or committee will take into account all relevant factors, including whether the restatement was the result of fraud, negligence, or intentional misconduct.  The Board will, to the extent permitted by applicable law, in all appropriate cases, require reimbursement of any bonus or incentive compensation paid to the Officer, cause the cancellation of restricted or deferred stock awards and outstanding stock options, and seek reimbursement of any gains realized on the exercise of stock options attributable to such awards, if and to the extent that (a) the amount of incentive compensation was calculated based upon the achievement of certain financial results that were subsequently reduced due to a restatement, (b) the Officer engaged in any fraud or misconduct that caused or contributed to the need for the restatement, and (c) the amount of the bonus or incentive compensation that would have been awarded to the Officer had the financial results been properly reported would have been lower than the amount actually awarded.  In addition, the Board may dismiss the Officer, authorize legal action, or take such other action to enforce the Officer’s obligations to the Company as it may deem appropriate in view of all the facts surrounding the particular case.  The Company will not seek to recover bonuses or other compensation as detailed above paid more than three years prior to the date the applicable restatement is disclosed.
10.Heirs and Successors.  This Plan will be binding upon, and will inure to the benefit of, the Company and its successors and assigns, and upon any person acquiring, whether by merger, consolidation, purchase of assets or otherwise, all or substantially all of the Company’s assets and business.  Subject to the terms of the SOIP, any consideration or other benefits distributable to a deceased Participant under this Plan will be distributed to the beneficiary designated by the Participant in writing filed with the Committee in such form as the Committee will require.  If a deceased Participant has failed to designate a beneficiary, or if the designated beneficiary of the deceased Participant dies before the Participant or before complete distribution of consideration or other benefits due under this Plan, the consideration or other benefits to be distributed under this Plan will be distributed to the legal representative or representatives of the estate of the last to die of the Participant and the beneficiary.
11.Taxes, Transaction Costs and Withholding.  A Participant will be solely responsible for the payment of all taxes and transaction costs relating to the granting, vesting/earning and payment of an Award.  It will be a condition to the obligation of the Company to issue or transfer shares of Stock or other applicable consideration that the Participant pay to the Company, upon its demand, such amount as may be requested by the Company for the purpose of satisfying its liability to withhold federal, state or local income or other taxes incurred in connection with the Award.  If the amount requested is not paid, the Company may refuse to issue or transfer shares of Stock or other applicable consideration to the Participant (or to the Participant’s beneficiary).

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12.Administration.  The authority to interpret and administer the terms and conditions of the Plan will be vested in the Committee, and the Committee will have all powers with respect thereto as it has with respect to the SOIP.  Any interpretation of the Plan by the Committee and any decision made by it with respect to the Plan is final and binding.
13.Relation to SOIP.  Notwithstanding anything in the Plan to the contrary, the terms of the Plan will be subject to the terms of the SOIP, a copy of which may be obtained from the office of the Secretary of the Company.  Any amendment to the SOIP will be deemed to be an amendment to the Plan to the extent that the amendment is applicable hereto.
14.No Employment Contract.  Nothing contained in the Plan will (a) confer upon a Participant any right to be employed by or remain employed by the Company or any Affiliate, or (b) limit or affect in any manner the right of the Company or any Affiliate to terminate the employment or adjust the compensation of a Participant.
15.Unfunded Plan.  It is the Company’s intention that the Plan be unfunded.  The Company is not required to set aside any assets for payment of the benefits provided under the Plan, and no Participant will have a security interest in any Award.  
16.Governing Law.  The interpretation, performance, and enforcement of the Plan will be governed by the laws of the State of Texas, without giving effect to the principles of conflict of laws thereof and all parties, including their successors and assigns, consent to the jurisdiction of the state and federal courts of Texas.

[Remainder of page intentionally left blank.]

9

Appendix to the Brinker International, Inc. Performance Share Plan
The Target Adjusted EBITDA and the calculation of Adjusted EBITDA will reflect the following adjustments as appropriate to the extent such items are not already in the Company’s “Other Gains and Charges” caption on the consolidated statement of comprehensive income.
(a)Accounting Changes.  Adjusted EBITDA will be adjusted to neutralize any impacts associated with changes in accounting principles pursuant to accounting pronouncements adopted during the Measurement Period.
(b)Compensation Plan Expense. For purposes of Adjusted EBITDA, the expense related to any performance share plans (including any stock option plans) of the Company (or awards thereunder) (the “Applicable Performance Share Plans”), and any profit sharing plans of the Company (the “Applicable Profit Sharing Plans”), will be determined as follows: (i) the expense with respect to each Applicable Performance Share Plan will be equal to the planned expense at 100% achievement with respect to such plan as of the beginning of each applicable measurement period thereunder; and (ii) the expense with respect to each Applicable Profit Sharing Plan will be equal to the planned expense at 100% achievement with respect to such plan for each performance year (or other applicable performance period) thereunder, all as determined by the Committee in its sole discretion.  For clarification, Adjusted EBITDA will neither (i) be reduced by higher expenses associated with achievement above target, or (ii) receive the benefit of lower expenses associated with achievement below target with respect to any Applicable Performance Share Plans or Applicable Profit Sharing Plans.
(c)Unplanned Brand or Business Dispositions.  Any one-time profit or loss associated with the disposition or sale of a brand or business will be excluded from the Adjusted EBITDA calculation.  Associated disposition costs, including but not limited to transaction, transition, disintegration or restructuring will be excluded from the Adjusted EBITDA calculation.  Target Adjusted EBITDA will be adjusted as of the transaction date to neutralize the impact of the disposition by excluding from Target Adjusted EBITDA the expected profit from the disposed brand or business for the period after the transaction. 
(d)Unplanned Brand or Business Acquisition.  Acquisition costs associated with the purchase of a brand or business, including but not limited to transaction, transition, integration or restructuring, will be excluded from the Adjusted EBITDA calculation.  At the time of a brand or business acquisition, the Committee will adjust the Target Adjusted EBITDA to account for increases in expected EBITDA from the acquisition and may consider such factors as it deems appropriate, such as the cost of acquisition capital, historical performance and potential synergies.  All EBITDA from the acquisition shall then be included in the actual Adjusted EBITDA calculation.
(e)Refranchised Restaurants. Any gain or loss from refranchising transactions will be excluded from the Adjusted EBITDA calculation.  Target Adjusted EBITDA will be adjusted to neutralize the impact of the disposition of the refranchised restaurants by excluding the expected profit from the refranchised restaurants less recorded royalties.
(f)External Events.  Adjusted EBITDA will be adjusted to neutralize the impact of extraordinary, non-recurring events (such as natural disasters, terrorist attacks, pandemics, government mandated dining room closures or capacity restrictions, industry-wide food-borne illness, etc.).

[End of document.]

10Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE
AGREEMENT (this “Agreement”) dated August 22, 2020, is entered into by and among (i) Yield10 Bioscience, Inc.,
a Delaware corporation (the “Company”), and (ii) each person listed on Schedule I hereto (each, an “Investor”
and collectively, the “Investors”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement, the Company desires to issue and sell to each Investor, and each Investor,
severally and not jointly, desires to purchase from the Company, an aggregate of 396,450 shares (“Shares”) of
the Company’s common stock, par value $0.01 (the “Common Stock”), in a private placement pursuant to Section
4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”).

 

NOW THEREFORE, in consideration
of the mutual covenants made herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, agree as follows:

 

1.        
Purchase and Sale of Securities. Subject to the terms and conditions hereof, each Investor agrees, severally
and not jointly, to purchase from the Company, and the Company agrees to sell to the Investors at the Closing, the number of Shares
set forth opposite each such Investor’s name on Schedule I hereto for the aggregate purchase price set forth in Schedule
I hereto.

 

2.        
Issuance of Securities. Notwithstanding anything in this Agreement to the contrary, the Company shall have
no obligation to sell any of the Shares to any person who is a resident of a jurisdiction in which the sale of Shares to such person
would constitute a violation of the securities, “blue sky” or other similar laws of such jurisdiction (collectively
referred to as the “State Securities Laws”).

 

3.        
The Closing. The closing of the purchase and sale of the Common Stock (the “Closing”) shall
take place at the headquarters of the Company as promptly as practicable after the satisfaction or waiver (to the extent permitted
by law) of the conditions set forth in Section 7 hereof, or at such other time and place as the Company may designate by notice
to the Investors (such date and time being referred to herein as the “Closing Date”); provided, however, that
if the Closing Date does not occur on or before September 30, 2020, this Agreement may be terminated by any Investor, as to such
Investor’s obligations hereunder and without any effect whatsoever on the obligations between the Company and the other Investors,
by written notice to the other parties.

 

4.        
Payment for Securities. Payment for the Common Stock shall be received by the Company from the Investors by
wire transfer of immediately available funds or other means approved by the Company at or prior to the Closing, at the price of
$4.25 per Share. The Company shall deliver or cause its transfer agent to deliver certificates representing the Shares that each
Investor purchases to each such Investor at the Closing bearing the legend set forth in Section 10.

 

5.         Representations
and Warranties of the Company. Except as otherwise specifically described in the Company’s Annual Report on Form
10-K for the year ended December 31, 2019, the Company’s Quarterly Reports on Form 10-Q for the quarters ended March
31, 2020 and June 30, 2020, and any current reports on Form 8-K filed by the Company subsequent to December 31, 2019 and
through the date of this Agreement with the Securities and Exchange Commission (the “Commission”),
including the information incorporated by reference therein (collectively, the “Disclosure Package”), the
Company hereby represents and warrants to and covenants with the Investors, as of the date hereof and as of the Closing,
that:

 

     

     

    

 

(a)          
Organization, Good Standing and Qualification. The Company is duly formed and validly existing under the laws
of Delaware, with full corporate power and authority to conduct its business as it is currently being conducted and to own its
assets; and has secured any other material authorizations, approvals, permits and orders required by law for the conduct by the
Company of its business as it is currently being conducted. Metabolix GmbH and Metabolix Oilseeds, Inc., the Company’s wholly-owned
subsidiaries (the “Subsidiaries”), are duly formed and validly existing under the laws of Germany and Canada,
respectively, with full corporate power and authority to conduct their respective businesses as they are currently being conducted
and to own their respective assets; and has secured any other material authorizations, approvals, permits and orders required by
law for the conduct by the Subsidiaries of their businesses as they are currently being conducted. The Company has no material
subsidiaries other than the Subsidiaries.

 

(b)         
Authorization. The Company has all corporate right, power and authority to enter into this Agreement and to
consummate the transactions contemplated hereby. All corporate action on the part of the Company, its directors and stockholders
necessary for the authorization, execution, delivery and performance of this Agreement by the Company, the authorization, sale,
issuance and delivery of the Shares contemplated herein and the performance of the Company’s obligations hereunder has been
taken. This Agreement has been duly executed and delivered by the Company and constitutes the legal, valid and binding obligation
of the Company, enforceable against the Company in accordance with its terms.

 

(c)          
Capitalization.

 

(i)               
As of the date hereof, the authorized capital stock of the Company consisted of 5,000,000 shares of preferred stock,
none of which were issued and outstanding, and 60,000,000 shares of Common Stock, 1,982,493 shares of which were issued and outstanding.
The Preferred Stock and the Common Stock are collectively referred to herein as the “Capital Stock.” All of
the issued and outstanding shares of Capital Stock have been duly authorized, validly issued and are fully paid and nonassessable.
As of August 15, 2020, 2,843,699 shares of Common Stock issuable upon exercise of warrants were outstanding, options to purchase
322,684 shares of Common Stock were outstanding, and an additional 19,650 shares of Common Stock were available for issuance under
the Company’s Stock Option and Incentive Plan. Except as set forth in the preceding sentence and in the Company’s Registration
Statement on Form S-3 (Reg. No. 333-237539), as of the date hereof there are no outstanding options, warrants, rights (including
conversion or preemptive rights), agreements, arrangements or commitments of any character, whether or not contingent, relating
to the issued or unissued Capital Stock of the Company or obligating the Company to issue or sell any share of Capital Stock of,
or other equity interest in, the Company.

 

(ii)              The
Shares have been duly authorized and, when issued, delivered and paid for in the manner set forth in this Agreement, will be
validly issued, fully paid and non-assessable and shall be free and clear of any encumbrances, preemptive rights or
restrictions (other than as provided in this Agreement or any restrictions on transfer generally imposed under applicable
securities laws).

 

    2

     

    

 

(iii)            
No “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the Securities Act (a “Disqualification
Event”) is applicable to the Company or, to the Company’s knowledge, any Company Covered Person, except for a Disqualification
Event as to which Rule 506(d)(2)(ii–iv) or (d)(3), is applicable. For purposes of this Agreement a “Company Covered
Person” means, with respect to the Company as an “issuer” for purposes of Rule 506 of the Securities Act,
any person listed in the first paragraph of Rule 506(d)(1).

 

(iv)            
The Company owns all of the issued and outstanding equity interests of its Subsidiaries.

 

(d)         
Consents. The Company is not required to obtain any material consent, waiver, authorization or order of, give
any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority
or other person in connection with the execution, delivery and performance by the Company of this Agreement, other than the filings
that have been made, or will be made, pursuant to the rules and regulations of The Nasdaq Stock Market LLC (“Nasdaq”),
applicable State Securities Laws and post-sale filings pursuant to applicable federal and State Securities Laws which the Company
undertakes to file or obtain within the applicable time periods.

 

(e)         
Securities Laws. Assuming the accuracy of each Investor’s representations and warranties set forth in
Section 6, no registration under the Securities Act is required for the offer and sale of the Shares by the Company to the Investors
as contemplated hereby.

 

(f)          
Litigation. There is no action, suit, proceeding or investigation pending or, to the Company’s knowledge,
currently threatened in writing against the Company or any of its directors and officers that questions the validity of this Agreement
or the right of the Company to enter into this Agreement or to consummate the transactions contemplated hereby. There is no action,
suit, proceeding or investigation pending or, to the Company’s knowledge, currently threatened in writing against the Company
or any subsidiary or any of their respective directors and officers which would have, either individually or in the aggregate,
a Material Adverse Effect (as defined below).

 

(g)         
Filings. The Company has filed all forms, reports and documents required to be filed by it with the Commission
(collectively, the “Company SEC Reports”). As of the respective dates they were filed (except if amended, updated
or superseded by a filing made by the Company with the Commission prior to the date of this Agreement, then on the date of such
filing), the Company SEC Reports complied in all material respects with the requirements of the Securities Act or the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), as the case may be, and the applicable rules and regulations
of the Commission thereunder.

 

    3

     

    

 

(h)         Financial
Statements. The consolidated financial statements of the Company (including any notes thereto) contained in the
Disclosure Package (i) complied as to form in all material respects with the published rules and regulations of the
Commission with respect thereto, (ii) were prepared in accordance with United States generally accepted accounting principles
(“GAAP”) applied on a consistent basis throughout the periods indicated (except as may be indicated in the
notes thereto or, in the case of unaudited financial statements, as permitted by Form 10-Q or Form 8-K) and (iii) each
presented fairly, in all material respects, the consolidated financial position of the Company and its consolidated
subsidiaries as of the respective dates thereof and for the respective periods indicated therein, except as otherwise noted
therein (subject, in the case of unaudited financial statements, to normal and recurring year-end adjustments which were not
and are not expected, individually or in the aggregate, to have a Material Adverse Effect). The Company has not had any
material disagreement with any of its auditors regarding accounting matters or policies during any of its past three full
fiscal years or during the current fiscal year-to-date, which disagreements would require disclosure to the Company’s
Board of Directors.

 

(i)           
Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company or
any subsidiary of the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank
or other person with respect to the transactions contemplated by this Agreement. The Investors shall have no obligation with respect
to any fees or with respect to any claims made by or on behalf of other persons for fees of a type contemplated in this Section
that may be due in connection with the transactions contemplated by this Agreement.

 

(j)           
Acknowledgment Regarding Investors’ Purchase of Securities. The Company acknowledges and agrees that
each of the Investors is acting solely in the capacity of an arm’s length purchaser with respect to this Agreement and the
transactions contemplated hereby. The Company further acknowledges that no Investor is acting as a financial advisor or fiduciary
of the Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any advice
given by any Investor or any of their respective representatives or agents in connection with this Agreement and the transactions
contemplated hereby is merely incidental to the Investors’ purchase of the Shares. The Company further represents to each
Investor that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation of
the transactions contemplated hereby by the Company and its representatives.

 

(k)         Acknowledgment
Regarding Investors’ Trading Activity. Anything in this Agreement or elsewhere herein to the contrary
notwithstanding (except for Sections 6(a)(iv) and 12 hereof), it is understood and acknowledged by the Company that: (i) none
of the Investors has been asked by the Company to agree, nor has any Investor agreed, to desist from purchasing or selling,
long and/or short, securities of the Company, or “derivative” securities based on securities issued by the
Company or to hold the Shares for any specified term, (ii) past or future open market or other transactions by any Investor,
specifically including, without limitation, short sales or “derivative” transactions, before or after the
Closing, may negatively impact the market price of the Company’s publicly-traded securities, (iii) any Investor, and
counter-parties in “derivative” transactions to which any such Investor is a party, directly or indirectly, may
presently have a “short” position in the Common Stock and (iv) each Investor shall not be deemed to have any
affiliation with or control over any arm’s length counter-party in any “derivative” transaction. The
Company further understands and acknowledges that, except as otherwise provided by applicable law or the policies of the
Company applicable to directors, officers and employees of the Company, (y) one or more Investors may engage in hedging
activities at various times during the period that the Shares are outstanding, and (z) such hedging activities (if any) could
reduce the value of the existing stockholders’ equity interests in the Company at and after the time that the hedging
activities are being conducted. The Company acknowledges that such aforementioned hedging activities do not constitute a
breach of this Agreement.

 

    4

     

    

 

6.        
Representations and Warranties of the Investors. As of the date hereof and as of the Closing, each of the
Investors, severally and not jointly, hereby represents and warrants to and covenants with the Company that:

 

(a)          
General.

 

(i)              
The Investor has all requisite authority to purchase the Shares, enter into this Agreement and to perform all the
obligations required to be performed by the Investor hereunder, and such purchase will not contravene any law, rule or regulation
binding on the Investor or any investment guideline or restriction applicable to the Investor.

 

(ii)             
The Investor is acquiring the Shares for its own account and is not acquiring the Shares as a nominee or agent or
otherwise for any other person.

 

(iii)           
The Investor will comply with all applicable laws and regulations the Investor is required to comply with in connection
with the purchase or sale of Shares in effect in any jurisdiction in which the Investor purchases or sells Shares and obtain any
consent, approval or permission the Investor is required to obtain in connection with such purchase or sale of Shares under the
laws and regulations of any jurisdiction to which the Investor is subject or in which the Investor makes such purchases or sales,
and the Company shall have no responsibility therefor.

 

(iv)            
Other than consummating the transactions contemplated hereby, the Investor has not directly or indirectly, nor has
any person acting on behalf of or pursuant to any understanding with such Investor, executed any purchases or sales, including
short sales, of the securities of the Company during the period commencing as of the time that such Investor first received a term
sheet (written or oral) from the Company or any other person representing the Company setting forth the material terms of the transactions
contemplated hereby and ending immediately prior to the execution hereof. Notwithstanding the foregoing, in the case of an Investor
that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Investor’s
assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing
other portions of such Investor’s assets, the representation set forth above shall only apply with respect to the portion
of assets managed by the portfolio manager that made the investment decision to purchase the Shares covered by this Agreement.
Other than to other persons party to this Agreement, such Investor has maintained the confidentiality of all disclosures made to
it in connection with this transaction (including the existence and terms of this transaction). Notwithstanding the foregoing,
for avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect
to the identification of the availability of, or securing of, available shares to borrow in order to effect short sales or similar
transactions in the future.

 

    5

     

    

(b)         
Information Concerning the Company.

 

(i)             
 The Investor understands and accepts that the purchase of the Shares involves various risks. The Investor represents
that it is able to bear a complete loss of its investment in the Shares.

 

(ii)             
The Investor confirms that it is not relying on any communication (written or oral) of the Company or any of its
affiliates, as investment advice or as a recommendation to purchase the Shares. It is understood that information and explanations
related to the terms and conditions of the Shares provided by the Company or any of its affiliates shall not be considered investment
advice or a recommendation to purchase the Shares, and that neither the Company nor any of its affiliates is acting or has acted
as an advisor to the Investor in deciding to invest in the Shares. The Investor acknowledges that neither the Company nor any of
its affiliates has made any representation regarding the proper characterization of the Shares for purposes of determining the
Investor’s authority to invest in the Shares.

 

(iii)            
The Investor acknowledges that it has had the opportunity to review this Agreement (including all exhibits and schedules
hereto) and the Disclosure Package and has been afforded (A) the opportunity to ask such questions as it has deemed necessary of,
and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Shares and
the merits and risks of investing in the Shares; (B) access to information about the Company and its financial condition, results
of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (C) the opportunity
to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is
necessary to make an informed investment decision with respect to the investment.

 

(iv)            
The Investor understands that, unless the Investor notifies the Company in writing to the contrary at or before the
Closing, each of the Investor’s representations and warranties contained in this Agreement will be deemed to have been reaffirmed
and confirmed as of the Closing, taking into account all information received by the Investor.

 

(v)             
The Investor understands that no federal or state agency has passed upon the merits or risks of an investment in
the Shares or made any finding or determination concerning the fairness or advisability of this investment.

 

(vi)           
The Investor is not purchasing the Shares as a result of any advertisement, article, notice or other communication
regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at
any seminar or any other general solicitation or general advertisement.

 

(c)          
Non-reliance.

 

(i)               
The Investor represents that it is not relying on (and will not at any time rely on) any communication (written or
oral) of the Company, as investment advice or as a recommendation to purchase the Shares, it being understood that information
and explanations related to the terms and conditions of the Shares shall not be considered investment advice or a recommendation
to purchase the Shares.

 

    6

     

    

 

(ii)           
 Except as expressly provided herein, the Investor confirms that the Company has not (A) given any guarantee or representation
as to the potential success, return, effect or benefit (either legal, regulatory, tax, financial, accounting or otherwise) an of
investment in the Shares or (B) made any representation to the Investor regarding the legality of an investment in the Securities
under applicable legal investment or similar laws or regulations. In deciding to purchase the Shares, the Investor is not relying
on the advice or recommendations of the Company and the Investor has made its own independent decision that the investment in the
Shares is suitable and appropriate for the Investor.

 

(d)          
Status of Investor.

 

(i)              
The Investor has such knowledge, sophistication, skill and experience in business, financial and investment matters
that the Investor is capable of evaluating the merits and risks of an investment in the Shares, and has so evaluated the merits
and risks of such investment. With the assistance of the Investor’s own professional advisors, to the extent that the Investor
has deemed appropriate, the Investor has made its own legal, tax, accounting and financial evaluation of the merits and risks of
an investment in the Shares and the consequences of this Agreement. The Investor has considered the suitability of the Shares as
an investment in light of its own circumstances and financial condition and the Investor is able to bear the risks associated with
an investment in the Shares and its authority to invest in the Shares.

 

(ii)             
At the time the Investor was offered the Shares, the Investor was, and as of the date hereof the Investor is, and
on the Closing Date, the Investor will be either (A) a “qualified institutional buyer” as defined in Rule 144A(a) under
the Securities Act or (B) an “accredited investor” as defined in as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7),
or (a)(8) under the Securities Act, and not required to be registered as a broker-dealer under Section 15 of the Exchange Act.
The Investor agrees to furnish any additional information reasonably requested by the Company or any of its affiliates to assure
compliance with applicable U.S. federal and State Securities Laws in connection with the purchase and sale of the Shares.

 

(iii)            
The Investor hereby represents that neither it nor any of its Rule 506(d) Related Parties is a “bad actor”
within the meaning of Rule 506(d) of the Securities Act. For purposes of this Agreement a “Rule 506(d) Related Party”
means a person or entity covered by the “Bad Actor disqualification” provision of Rule 506(d) of the Securities Act.

 

(e)          
Restrictions on Transfer or Sale of Securities.

 

(i)               The
Investor is acquiring the Shares solely for the Investor’s own beneficial account, for investment purposes, and not
with a view to, or for resale in connection with, any distribution of the Shares, has no present intention of distributing
any of such Shares in violation of the Securities Act or any applicable State Securities Laws and has no direct or indirect
arrangement or understandings with any other persons to distribute or regarding the distribution of such Shares in violation
of the Securities Act or any applicable State Securities Laws (this representation and warranty not limiting such
Investor’s right to sell the Shares pursuant to the Registration Statement (as defined below) or otherwise in
compliance with applicable federal law and State Securities Laws). The Investor understands that the Shares have not been
registered under the Securities Act or any State Securities Laws by reason of specific exemptions under the provisions
thereof which depend in part upon the investment intent of the Investor and of the other representations made by the Investor
in this Agreement. The Investor understands that the Company is relying upon the representations and agreements contained in
this Agreement for the purpose of determining whether this transaction meets the requirements for such exemptions.

 

    7

     

    

 

(ii)             
The Investor understands that the Shares are “restricted securities” under applicable federal securities
laws and that the Securities Act and the rules of the Commission provide in substance that the Investor may dispose of the Shares
only pursuant to an effective registration statement under the Securities Act or an exemption therefrom such as the exemption and
safe harbor provided under Rule 144 of the Securities Act.

 

(iii)            
The Investor agrees that the Investor will not sell, assign, pledge, give, transfer or otherwise dispose of the Shares
or any interest therein, or make any offer or attempt to do any of the foregoing, except pursuant to a registration of the Shares
under the Securities Act or in a transaction which is exempt from the registration provisions of the Securities Act such as the
exemption and safe harbor provided under Rule 144 of the Securities Act; that the certificates representing the Shares will bear
a legend making reference to the foregoing restrictions; and that the Company and its affiliates and transfer agent shall not be
required to give effect to any purported transfer of such Shares except upon compliance with the foregoing restrictions. The Company
acknowledges and agrees that an Investor may from time to time pledge pursuant to a bona fide margin agreement with a registered
broker-dealer or grant a security interest in some or all of the Shares to a financial institution that is an “accredited
investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement
and, if required under the terms of such arrangement, such Purchaser may transfer pledged or secured Shares to the pledgees or
secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel
of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such
pledge.

 

7.        
Conditions to Obligations of the Investor and the Company. The obligations of the Investors to purchase and
pay for the Shares and of the Company to sell the Shares are subject to the satisfaction at or prior to the Closing of the following
conditions precedent:

 

(a)          
Solely in the case of the Investors:

 

(i)             
The representations and warranties of the Company contained in Section 5 hereof shall be true and correct as of the
Closing in all material respects with the same effect as though such representations and warranties had been made as of the Closing.

 

(ii)             
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered or promulgated
by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

    8

     

    

 

(iii)             Between
the date of this Agreement and the Closing Date, there shall not have been a Material Adverse Effect. For purposes of this
Agreement, a “Material Adverse Effect” means any event, change, violation, inaccuracy, circumstance or
effect that, individually or in the aggregate, has had or would reasonably be expected to have a material adverse effect on,
or result in a material adverse change in, as the case may be, the business, operations, properties, condition (financial or
otherwise), assets, liabilities or results of operations of the Company, except for any such events, changes, violations,
inaccuracies, circumstances or effects resulting from (w) any changes in general economic, regulatory or political
conditions, (x) any changes or events generally affecting the industry in which the Company operates, (y) any adverse change
or effect that is caused by the announcement of the transactions contemplated by this Agreement, or (z) any violations or
other matters arising from changes in law or GAAP; unless in any such instance such change or effect described in (w), (x) or
(z) impacts the Company in a materially disproportionate manner relative to a preponderance of the other similar entities
impacted by such change.

 

.

 

(b)          
Solely in the case of the Company:

 

(i)              
The representations and warranties of the Investors contained in Section 6 hereof shall be true and correct as of
the Closing in all material respects with the same effect as though such representations and warranties had been made as of the
Closing.

 

(ii)             
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered or promulgated
by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

8.        
Covenants of the Company.

 

(a)         
The Company hereby agrees to use reasonable best efforts (i) to maintain the listing or quotation of the Common Stock
on the Nasdaq Capital Market (or such other trading market that the Company applies to have the Common Stock traded on), and (ii)
as promptly as practicable following the Closing Date, to secure the listing of the Common Shares on such trading market.

 

(b)         
The Company shall file a Current Report on Form 8-K and press release disclosing the material terms of the transactions
contemplated hereby. The Company shall, prior to such filing, furnish to the Investors for review a copy of such Form 8-K and press
release. Such press release will be issued prior to market open on the business day following the date of execution of this Agreement
and the Form-8-K will be filed within the time prescribed by the regulations of the Commission.

 

(c)         
The Company shall use its reasonable best efforts to timely file (or obtain extensions in respect thereof and file
within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange
Act. For so long as any Investor holds unregistered Shares, if the Company is not required to file reports pursuant to the Exchange
Act, it will prepare and furnish to such Investor and make publicly available in accordance with Rule 144(c) such information as
is required for such Investor to sell the Shares under Rule 144.

 

    9

     

    

 

9.        
Registration Rights.

 

(a)         
 Shelf Registration.

 

(i)              
At the request of the holders of at least a majority of the Registrable Shares (the “Majority Investors”),
the Company shall use commercially reasonable efforts to file no later than 60 calendar days after the Closing Date (the “Filing
Date”) a registration statement covering the resale of the Shares (the “Registrable Shares”) with
the Commission for an offering to be made on a continuous basis pursuant to Rule 415, or if Rule 415 is not available for offers
and sales of the Registrable Shares, by such other means of distribution of Registrable Shares as the Majority Investors may reasonably
specify (the “Initial Registration Statement”). The Initial Registration Statement shall be on Form S-3 (except
if the Company is ineligible to register for resale the Registrable Shares on Form S-3, in which case such registration shall be
on another appropriate form).

 

(ii)             
The Company shall use commercially reasonable efforts to effect the registration (including a declaration of effectiveness
thereof by the Commission) and applicable qualifications or compliances (including, without limitation, the execution of any required
undertaking to file post-effective amendments, appropriate qualifications or exemptions under applicable State Securities Laws
and appropriate compliance with applicable securities laws, requirements or regulations) as promptly as practicable after the filing
of the Initial Registration Statement, but in any event prior to the date which is 90 days after the Filing Date (the “Effectiveness
Date”). The Company shall, within two (2) business days after the Effectiveness Date, file a final prospectus with the
Commission as required by Rule 424 under the Securities Act.

 

(iii)            
In the event that all of the Registrable Shares cannot, as a result of the rules and regulations of the Commission,
be registered for resale as a secondary offering on a single registration statement, the Company agrees to promptly (i) inform
the Investors thereof, (ii) use commercially reasonable efforts to file amendments to the Initial Registration Statement as required
by the Commission and/or (iii) withdraw the Initial Registration Statement and use commercially reasonable efforts to file a new
registration statement (a “New Registration Statement”), in either case covering the maximum number of Registrable
Shares permitted to be registered by the Commission, on Form S-3 or, if the Company is ineligible to register for resale the Registrable
Shares on Form S-3, such other form available to register for resale the Registrable Shares as a secondary offering; provided,
however, that prior to filing such amendment or New Registration Statement, the Company shall be obligated to use commercially
reasonable efforts to advocate with the Commission for the registration of all of the Registrable Shares. In the event the Company
amends the Initial Registration Statement or files a New Registration Statement, as the case may be, under clauses (ii) or (iii)
above, the Company will use commercially reasonable efforts to file with the Commission, as promptly as practicable, one or more
registration statements on Form S-3 or, if the Company is ineligible to register for resale the Registrable Shares on Form S-3,
such other form available to register for resale those Registrable Shares that were not registered for resale on the Initial Registration
Statement, as amended, or the New Registration Statement (the “Remainder Registration Statements” and, collectively
with the Initial Registration Statement and the New Registration Statement, the “Registration Statements”).

 

    10

     

    

 

(iv)             Notwithstanding
any other provision of this Agreement, if the Commission limits the number of Registrable Shares permitted to be registered
on a particular Registration Statement (and notwithstanding that the Company used diligent efforts to advocate with the
Commission for the registration of all or a greater number of Registrable Shares), unless otherwise directed in writing by a
holder as to its Registrable Shares, the number of Registrable Shares to be registered on such Registration Statement will be
reduced as follows:

 

		(1)	First, the Company shall reduce or eliminate any securities to be included other than Registrable
Shares;

 

		(2)	Second, the Company shall reduce Registrable Shares (applied to the Investors on a pro rata basis
based on the total number of unregistered Registrable Shares held by such Investors).

 

In the event of a cutback hereunder, the
Company shall give the Investors at least three (3) business days prior written notice along with the calculations as to such Investor’s
allotment.

 

(b)        
All expenses incurred by the Company in complying with Section 9(a) hereof, including, without limitation, all registration,
qualification and filing fees, printing expenses, escrow fees, fees and expenses of counsel for the Company, blue sky fees and
expenses and the expense of any special audits incident to or required by any such registration (but excluding the fees of legal
counsel for any Investor or holder of Registrable Shares) shall be borne by the Company. All selling commissions applicable to
the sale of Registrable Shares and all fees and expenses of legal counsel for any Investor or holder of Registrable Shares related
to the registration and sale of the Registrable Shares shall be borne by the Investor or holder of Registrable Shares incurring
such commissions, fees or expenses.

 

(c)          
In the case of the registration, qualification, exemption or compliance effected by the Company pursuant to this
Agreement, the Company shall, upon reasonable request, inform the Investors as to the status of such registration, qualification,
exemption and compliance. At its expense the Company shall:

 

(i)              
except for such times as the Company is permitted hereunder to suspend the use of the prospectus forming part of
a Registration Statement, use its commercially reasonable efforts to keep such registration, and any qualification, exemption or
compliance under State Securities Laws which the Company determines to obtain, continuously effective with respect to the Investors,
and to keep the applicable Registration Statement effective until the later of (A) two (2) years from the Closing Date, (B) the
date by which all the Registrable Shares may be sold without volume or manner of sale restrictions which may be applicable to affiliates
under Rule 144, or (C) the date on which all of the Registrable Shares are sold. The period of time during which the Company is
required hereunder to keep a Registration Statement effective is referred to herein as the “Registration Period”;

 

(ii)              
advise the Investors within five (5) business days:

 

		(1)	when a Registration Statement or any amendment thereto has been filed with the Commission and when
such Registration Statement or any post-effective amendment thereto has become effective;

 

    11

     

    

 

		(2)	of any request by the Commission for amendments or supplements to any Registration Statement or
the prospectus included therein or for additional information;

 

		(3)	of the issuance by the Commission of any stop order suspending the effectiveness of any Registration
Statement or, to the Company’s knowledge, the initiation of any proceedings for such purpose;

 

		(4)	of the receipt by the Company of any notification with respect to the suspension of the qualification
of the Registrable Shares included therein for sale in any jurisdiction or, to the Company’s knowledge, the initiation or
threatening of any proceeding for such purpose; and

 

		(5)	subject to the provisions this Agreement, of the occurrence of any event that requires the making
of any changes in any Registration Statement or prospectus so that, as of such date, the statements therein are not misleading
and do not omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case
of a prospectus, in the light of the circumstances under which they were made) not misleading;

 

(iii)            
use its commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of any
Registration Statement as soon as reasonably practicable;

 

(iv)            
if an Investor so requests in writing, promptly furnish to the Investor, without charge, at least one copy of each
Registration Statement and each post-effective amendment thereto, including financial statements and schedules, and, if explicitly
requested, all exhibits in the form filed with the Commission;

 

(v)             
during the Registration Period, promptly deliver to each Investor, without charge, as many copies of each prospectus
included in a Registration Statement and any amendment or supplement thereto as the Investor may reasonably request in writing;
and the Company consents to the use, consistent with the provisions hereof, of the prospectus or any amendment or supplement thereto
by the Investor of Registrable Shares in connection with the offering and sale of the Registrable Shares covered by a prospectus
or any amendment or supplement thereto;

 

(vi)            
during the Registration Period, if an Investor so requests in writing, deliver to the Investor, without charge, (i)
one copy of the following documents, other than those documents available via the Commission’s EDGAR system: (A) its annual
report on Form 10-K (or similar form), (B) its definitive proxy statement with respect to its annual meeting of stockholders, (C)
each of its quarterly reports on Form 10-Q, and (D) a copy of each full Registration Statement (the foregoing, in each case, excluding
exhibits); and (ii) if explicitly requested, all exhibits excluded by the parenthetical to the immediately preceding clause (D);
provided, that the Company shall have no obligation to provide any document pursuant to this clause that is available on the Commission’s
EDGAR system;

 

    12

     

    

 

(vii)          
 prior to any public offering of Registrable Shares pursuant to any Registration Statement, promptly take such actions
as may be necessary to register or qualify or obtain an exemption for offer and sale under State Securities Laws of such United
States jurisdictions as an Investor reasonably request in writing; provided that the Company shall not for any such purpose be
required to qualify generally to transact business as a foreign corporation in any jurisdiction where it is not so qualified or
to consent to general service of process in any such jurisdiction, and do any and all other acts or things reasonably necessary
or advisable to enable the offer and sale in such jurisdictions of the Registrable Shares covered by any such Registration Statement;

 

(viii)          
upon the occurrence of any event contemplated by Section 9(c)(ii)(5) above, except for such times as the Company
is permitted hereunder to suspend the use of a prospectus forming part of a Registration Statement, and taking into account the
Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature disclosure
of such event, the Company shall use its commercially reasonable efforts to prepare a post-effective amendment to such Registration
Statement or a supplement to the related prospectus, or file any other required document so that, as thereafter delivered to purchasers
of the Registrable Shares included therein, such prospectus will not include any untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading;

 

(ix)             
otherwise use its commercially reasonable efforts to comply in all material respects with all applicable rules and
regulations of the Commission which could affect the sale of the Registrable Shares;

 

(x)              
use its commercially reasonable efforts to cause all Registrable Shares to be listed on each securities exchange
or market, if any, on which equity securities issued by the Company have been listed; and

 

(xi)            
cooperate with any broker-dealer through which an Investor proposes to resell its Registrable Shares in such broker-dealer’s
filing with the FINRA Corporate Financing Department pursuant to FINRA Rule 5110, as requested by any such Investor.

 

(d)         
No Investor shall have the right to take any action to restrain, enjoin or otherwise delay any registration pursuant
to Section 9(a) hereof as a result of any controversy that may arise with respect to the interpretation or implementation of this
Agreement.

 

    13

     

    

 

 

(e)         
Indemnification.

 

(i)               To
the extent permitted by law, the Company shall indemnify each Investor and each person controlling such Investor within the meaning
of Section 15 of the Securities Act, with respect to which any registration that has been effected pursuant to this Agreement,
against all claims, losses, damages and liabilities (or action in respect thereof), including any of the foregoing incurred in
settlement of any litigation, commenced or threatened (subject to Section 9(e)(iii) below), arising out of or based on any untrue
statement (or alleged untrue statement) of a material fact contained in any Registration Statement, prospectus, any amendment
or supplement thereof, or other document incident to any registration, qualification or compliance or based on any omission (or
alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not
misleading, in light of the circumstances in which they were made, or any violation by the Company of any rule or regulation promulgated
by the Securities Act applicable to the Company and relating to any action or inaction required of the Company in connection with
any such registration, qualification or compliance, and will reimburse each Investor and each person controlling such Investor,
for reasonable legal and other out-of-pocket expenses reasonably incurred in connection with investigating or defending any such
claim, loss, damage, liability or action as incurred; provided that the Company will not be liable in any such case to the extent
that any untrue statement or omission or allegation thereof is made in reliance upon and in conformity with written information
furnished to the Company by or on behalf of such Investor for use in preparation of any Registration Statement, prospectus, amendment
or supplement; provided however, that the Company will not be liable in any such case where the claim, loss, damage or liability
arises out of the failure of such Investor to comply with the covenants and agreements contained in this Agreement respecting
sales of Registrable Shares, and except that the foregoing indemnity agreement is subject to the condition that, insofar as it
relates to any such untrue statement or alleged untrue statement or omission or alleged omission made in any preliminary prospectus
but eliminated or remedied in the amended prospectus on file with the Commission at the time any Registration Statement becomes
effective or in an amended prospectus filed with the Commission pursuant to Rule 424(b) which meets the requirements of Section
10(a) of the Securities Act (each, a “Final Prospectus”), such indemnity shall not inure to the benefit of
the Investor or any such controlling person, if a copy of a Final Prospectus furnished by the Company to the Investor for delivery
was not furnished to the person or entity asserting the loss, liability, claim or damage at or prior to the time such furnishing
is required by the Securities Act and a Final Prospectus would have cured the defect giving rise to such loss, liability, claim
or damage.

 

(ii)              Each
Investor will, severally and not jointly, indemnify the Company, each of its directors and officers, and each person who controls
the Company within the meaning of Section 15 of the Securities Act, against all claims, losses, damages and liabilities (or actions
in respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or threatened (subject
to Section 9(e)(iii) below), arising out of or based on any untrue statement (or alleged untrue statement) of a material fact
contained in any Registration Statement, prospectus, any amendment or supplement thereof, or other document incident to any such
registration, or based on any omission (or alleged omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, in light of the circumstances in which they were made, and will reimburse
the Company, such directors and officers, and each person controlling the Company for reasonable legal and any other expenses
reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability or action as incurred,
in each case to the extent, but only to the extent, that such untrue statement or omission or allegation thereof is made in reliance
upon and in conformity with written information furnished to the Company by or on behalf of such Investor for use in preparation
of any Registration Statement, prospectus, amendment or supplement. Notwithstanding the foregoing, the maximum liability of the
Investor under this section shall be limited to the proceeds received by the Investor from the sale of Registrable Shares.

 

    14

     

    

 

(iii)             Each
party entitled to indemnification under this Section 9(e) (the “Indemnified Party”) shall give notice to the
party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party (at its expense)
to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party,
who shall conduct the defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall not
unreasonably be withheld, conditioned or delayed), and the Indemnified Party may participate in such defense at such Indemnified
Party’s expense, and provided further that the failure of any Indemnified Party to give notice as provided herein shall
not relieve the Indemnifying Party of its obligations under this Agreement, unless such failure is materially prejudicial to the
Indemnifying Party in defending such claim or litigation. An Indemnifying Party shall not be liable for any settlement of an action
or claim effected without its written consent (which consent shall not be unreasonably withheld, conditioned or delayed). No Indemnifying
Party, in its defense of any such claim or litigation, shall, except with the consent of each Indemnified Party (which consent
shall not be unreasonably withheld, conditioned or delayed), consent to entry of any judgment or enter into any settlement which
does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release
from all liability in respect to such claim or litigation.

 

(iv)             If
the indemnification provided for in this Section 9(e) is held by a court of competent jurisdiction to be unavailable to an Indemnified
Party with respect to any loss, liability, claim, damage or expense referred to therein, then the Indemnifying Party, in lieu
of indemnifying such Indemnified Party thereunder, shall contribute to the amount paid or payable by such Indemnified Party as
a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault
of the Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with the statements or omissions
which resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable considerations. The relative
fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied
by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission. The parties hereto agree that it would not be just and equitable
if contribution pursuant to this Section 9(e) were determined by pro rata allocation or by any other method of allocation that
does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the
provisions of this Section 9(e), no Investor shall be required to contribute pursuant to this Section 9(e), in the aggregate,
any amount in excess of the amount by which the net proceeds actually received by such Investor from the sale of the Registrable
Shares exceeds the amount of any damages that such Investor has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission.

 

(f)           Disclosure,
Etc.

 

(i)               Not
less than five (5) business days prior to the filing of each Registration Statement, the Company shall furnish to each Investor
copies of such Registration Statement and all exhibits being filed therewith, and shall consider in good faith the reasonable
comments of such Investor. Notwithstanding the foregoing sentence, the Company shall not be obligated to provide the Investors
advance copies of any universal shelf registration statement registering securities in addition to those required hereunder. Each
Investor agrees that, upon receipt of any notice from the Company of the happening of any event requiring the preparation of a
supplement or amendment to a prospectus relating to Registrable Shares so that, as thereafter delivered to the Investor, such
prospectus shall not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading, the Investor will forthwith discontinue disposition of Registrable
Shares pursuant to a Registration Statement and prospectus contemplated by Section 9(a) until its receipt of copies of the supplemented
or amended prospectus from the Company and, if so directed by the Company, the Investor shall deliver to the Company all copies,
other than permanent file copies then in the Investor’s possession, of the prospectus covering such Registrable Shares current
at the time of receipt of such notice.

 

    15

     

    

 

(ii)              Each
Investor shall suspend, upon request of the Company, any disposition of Registrable Shares pursuant to any Registration Statement
and prospectus contemplated by Section 9(a) during the occurrence or existence of any pending corporate development with respect
to the Company that the Board of Directors of the Company believes in good faith may be material and that, in the determination
of the Board of Directors of the Company, makes it not in the best interest of the Company to allow continued availability of
a Registration Statement or prospectus. The Company shall be entitled to exercise its right under this paragraph to suspend the
availability of a Registration Statement and prospectus for a period not to exceed 60 calendar days (which need not be consecutive
days) in any 12-month period.

 

(iii)             Upon
the occurrence of any event contemplated by Section 3(d), as promptly as reasonably possible under the circumstances taking into
account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature
disclosure of such event, prepare a supplement or amendment, including a post-effective amendment, to a Registration Statement
or a supplement to the related prospectus or any document incorporated or deemed to be incorporated therein by reference, and
file any other required document so that, as thereafter delivered, neither a Registration Statement nor such prospectus will contain
an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading. The Company will use its best efforts
to ensure that the use of the prospectus may be resumed as promptly as is practicable. The Company shall be entitled to exercise
its right under this Section 9(f) to suspend the availability of a Registration Statement and prospectus for a period not to exceed
60 calendar days (which need not be consecutive days) in any 12-month period.

 

(iv)             As
a condition to the inclusion of its Registrable Shares, the Investor shall furnish to the Company such information regarding the
Investor and the distribution proposed by the Investor as the Company may reasonably request in writing, including completing
a Registration Statement Questionnaire in the form provided by the Company, or as shall be required in connection with any registration
referred to in this Section 9.

 

(v)              Each
Investor hereby covenants with the Company (i) not to make any sale of the Registrable Shares without effectively causing the
prospectus delivery requirements under the Securities Act to be satisfied (unless such sale is pursuant to Rule 144).

 

    16

     

    

 

(vi)             Each
Investor agrees not to take any action with respect to any distribution deemed to be made pursuant to a Registration Statement
which would constitute a violation of Regulation M under the Exchange Act or any other applicable rule, regulation or law.

 

(vii)            At
the end of the Registration Period, each Investor shall discontinue sales of shares pursuant to any Registration Statement upon
receipt of notice from the Company of its intention to remove from registration the shares covered by any such Registration Statement
which remain unsold, and the Investor shall notify the Company of the number of shares registered which remain unsold immediately
upon receipt of such notice from the Company.

 

(g)         The
rights to cause the Company to register Registrable Shares granted to the Investors by the Company under Section 9(a) may be assigned
by an Investor in connection with a transfer by such Investor of all or a portion of its Registrable Shares, provided, however,
that the Investor must give the Company at least 10 days prior notice of such transfer for such transfer to be reflected in the
Registration Statement or any amendment thereto and that (i) such transfer may otherwise be effected in accordance with applicable
securities laws; (ii) such Investor gives prior written notice to the Company at least 10 days prior to the transfer; and (iii)
such transferee agrees to comply with the terms and provisions of this Agreement, and such transfer is otherwise in compliance
with this Agreement. Except as specifically permitted by this Section 9(g), the rights of an Investor with respect to Registrable
Shares as set out herein shall not be transferable to any other person, and any attempted transfer shall cause all rights of such
Investor therein to be forfeited.

 

(h)         The
rights of an Investor under any provision of this Section 9 may be waived (either generally or in a particular instance, either
retroactively or prospectively and either for a specified period of time or indefinitely) or amended by an instrument in writing
signed by such Investor.

 

10.         
Legend. At the Closing, the certificates representing the Shares sold pursuant to this Agreement will be imprinted
with a legend in substantially the following form:

 

THIS SECURITY HAS NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE
TO THE COMPANY. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER
LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT
OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

    17

     

    

 

provided, that the Company shall (a) cause
such legend to be promptly removed once a registration statement covering the resale of any Shares is effective under the Securities
Act or if such legend is no longer required under applicable law and (b) in connection with any sale under Rule 144, promptly (and
in any event within five (5) business days after receipt by the Company of a request therefor accompanied by all reasonably required
documentation) deliver, or cause to be delivered, to the Investors new certificate(s) representing such Shares that are free from
all restrictive and other legends or, at the request of an Investor, via DWAC transfer to such Investor’s account.

 

11.          
Replacement of Shares. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or
destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the
case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under
such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance
of such replacement Shares.

 

12.         
Certain Transactions. Each Investor, severally and not jointly, covenants that neither it, nor any affiliate
acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including short sales, of any
of the Company’s securities during the period commencing with the execution of this Agreement and ending at such time that
the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described
in Section 8(b).

 

13.          
Expenses. The parties hereto shall pay their own costs and expenses in connection herewith; provided that,
subject to the consummation of the transactions contemplated hereby, the Company shall reimburse the Investors upon demand for
up to $50,000 of reasonable out-of-pocket expenses incurred by the Investors, including without limitation reimbursement of reasonable
attorneys’ fees, in connection with the negotiation and execution of this Agreement and the consummation of the transactions
contemplated hereby.

 

14.         
Waiver, Amendment. Neither this Agreement nor any provisions hereof shall be amended, waived, discharged or
terminated except by an instrument in writing signed, in the case of an amendment, by the Company and Investors holding not less
than a majority of the Registrable Shares affected by such amendment or, in the case of a waiver, discharge or termination, by
the party against whom such waiver, discharge or termination is sought.

 

15.          Assignability.
This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The
Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the
Investors holding not less than a majority of the Registrable Shares. Any Investor may assign any or all of its rights under
this Agreement to any person to whom such Investor assigns or transfers any Shares; provided that such transferee agrees in
writing to be bound, with respect to the transferred Shares, by the provisions of this Agreement that apply to the
“Investors.” Additionally, at any time prior to the Closing, any Investor may allocate any portion of his, her or
its Common Stock being purchased hereunder to a third party reasonably acceptable to the Company (an “Additional
Investor”), provided that such Additional Investor executes a counterpart signature page to this Agreement becoming
an Investor hereunder in all respects, including without limitation making the representations and warranties in Section 6 of
this Agreement. In the event an Additional Investor becomes a party to this Agreement, Schedule I to this Agreement
shall be updated automatically without the need for an amendment to this Agreement.

 

    18

     

    

 

16.          
Waiver of Jury Trial. EACH OF THE COMPANY AND THE INVESTORS IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL
BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

17.          
Submission to Jurisdiction. With respect to any suit, action or proceeding relating to any offers, purchases
or sales of the Shares by the Investors (“Proceedings”), each of the Company and the Investors irrevocably submits
to the jurisdiction of the federal or state courts located in the State of Delaware, which submission shall be exclusive unless
none of such courts has lawful jurisdiction over such Proceedings.

 

18.          
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State
of Delaware.

 

19.          
Section and Other Headings. The section and other headings contained in this Agreement are for reference purposes
only and shall not affect the meaning or interpretation of this Agreement.

 

20.         
Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed
and delivered shall be deemed to be an original and all of which together shall be deemed to be one and the same agreement.

 

21.          
Notices. All notices and other communications provided for herein shall be in writing and shall be deemed
to have been duly given if delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid
to the following addresses (or such other address as either party shall have specified by notice in writing to the other):

 

	If to the Company:	
        Yield10 Bioscience, Inc.

        19 Presidential Way

        Woburn, Massachusetts 01801

        Attention: Oliver Peoples, CEO

        Email: peoples@Yield10Bioscience.com

	 	 
	 	With a copy (which shall not constitute notice) to:
	 	 
	 	
        Megan N. Gates, Esq.

        Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

        One Financial Center

        Boston, Massachusetts 02111

        Attention: Megan N. Gates

        Email: mgates@mintz.com

	 	 
	If to any Investor:	The address specified in Schedule I for notices to such Investor

 

    19

     

    

 

22.         
 Binding Effect. The provisions of this Agreement shall be binding upon and accrue to the benefit of the parties
hereto and their respective heirs, legal representatives, successors and assigns.

 

23.          
Survival. All representations, warranties and covenants contained in this Agreement shall survive the Closing.

 

24.          
Notification of Changes. Each of the Company and the Investors hereby covenants and agrees to notify the other
upon the occurrence of any event prior to the Closing which would cause any representation, warranty, or covenant of such party
contained in this Agreement to be false or incorrect.

 

25.         
Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction,
such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or
render unenforceable such term or provision in any other jurisdiction.

 

26.          
Independent Nature of Investors’ Obligations and Rights. The obligations of each Investor under this
Agreement are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way
for the performance or non-performance of the obligations of any other Investor under this Agreement. Nothing contained herein,
and no action taken by any Investor pursuant hereto, shall be deemed to constitute the Investors as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated hereby. Each Investor shall be entitled to independently
protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, and it shall not be necessary
for any other Investor to be joined as an additional party in any proceeding for such purpose. Each Investor has had the opportunity
to be represented by its own separate legal counsel in its review and negotiation of this Agreement (including the exhibits and
schedules hereto). Except as expressly contemplated by this Agreement, the Company has elected to provide all Investors with the
same terms and Agreement for the convenience of the Company and not because it was required or requested to do so by any of the
Investors.

 

    20

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	 	YIELD10 BIOSCIENCE, INC.
	 	 
	 	By:	/s/ Oliver P. Peoples
	 	Name:	Oliver P. Peoples
	 	Title:	President and CEO

 

    

     

    

 

	 	INVESTORS:
	 	 
	 	Jack W. Schuler
	 	 
	 	/s/ Jack W. Schuler
	 	Name:  Jack W. Schuler
	 	 
	 	SCHULER GRANDCHILDREN LLC
	 	 
	 	By:	/s/ George Schuler
	 	Name:	George Schuler
	 	Title:	Manager
	 	 
	 	Tino Hans Schuler Trust
	 	 
	 	By:	/s/ Tino Schuler
	 	Name:	Tino Schuler
	 	Title:	Trustee
	 	 
	 	Tanya Eva Schuler Trust
	 	 
	 	By:	/s/ Tanya Sharman
	 	Name:	Tanya Sharman
	 	Title:	Trustee
	 	 
	 	Therese Heidi Schuler Trust
	 	 
	 	By:	/s/ George Schuler
	 	Name:	George Schuler
	 	Title:	Trustee

 

    

     

    

 

SCHEDULE I

 

	Investor	 	Number of 

Shares	 	 	Price per 

Share	 	 	Aggregate

 Purchase

 Price	 
	Jack W. Schuler	 	 	186,450	 	 	$	4.25	 	 	$	792,412.50	 
	Tino Hans Schuler Trust	 	 	60,000	 	 	$	4.25	 	 	$	255,000	 
	Tanya Eva Schuler Trust	 	 	60,000	 	 	$	4.25	 	 	$	255,000	 
	Therese Heidi Schuler Trust	 	 	60,000	 	 	$	4.25	 	 	$	255,000	 
	Schuler Grandchildren LLC	 	 	30,000	 	 	$	4.25	 	 	$	127,500	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total	 	 	396,450	 	 	 	 	 	 	$	1,684,912.50

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