Document:

Exhibit

EXHIBIT 4.10 

CHIMERIX, INC.
and
________, AS WARRANT AGENT
FORM OF DEBT SECURITIES
WARRANT AGREEMENT
DATED AS OF [__], 20___

    

CHIMERIX, INC.
FORM OF DEBT SECURITIES WARRANT AGREEMENT 
DEBT SECURITIES WARRANT AGREEMENT (this “Agreement”), dated as of                     between CHIMERIX, INC., a Delaware corporation (the “Company”), and                     , a [corporation] [national banking association] organized and existing under the laws of                      and having a corporate trust office in                     , as warrant agent (the “Warrant Agent”).  
WHEREAS, the Company has entered into an indenture dated as of [                      (the “Senior Indenture”), with                     , as trustee (such trustee, and any successors to such trustee, herein called the “Senior Trustee”), providing for the issuance from time to time of its unsubordinated debt securities, to be issued in one or more series as provided in the Senior Indenture (the “Debt Securities”);] [                     (the “Subordinated Indenture”), with                     , as trustee (such trustee, and any successors to such trustee, herein called the “Subordinated Trustee”), providing for the issuance from time to time of its subordinated debt securities, to be issued in one or more series as provided in the Subordinated Indenture (the “Debt Securities”);] 
WHEREAS, the Company proposes to sell [If Warrants are sold with other securities—title of such other securities being offered (the “Other Securities”) with] warrant certificates evidencing one or more warrants (the “Warrants” or, individually, a “Warrant”) representing the right to purchase [title of Debt Securities purchasable through exercise of Warrants] (the “Warrant Debt Securities”), such warrant certificates and other warrant certificates issued pursuant to this Agreement being herein called the “Warrant Certificates”; and 
WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing so to act, in connection with the issuance, registration, transfer, exchange, exercise and replacement of the Warrant Certificates, and in this Agreement wishes to set forth, among other things, the form and provisions of the Warrant Certificates and the terms and conditions on which they may be issued, registered, transferred, exchanged, exercised and replaced.
NOW, THEREFORE, in consideration of the premises and of the mutual agreements herein contained, the parties hereto agree as follows: 
ARTICLE 1    
ISSUANCE OF WARRANTS AND EXECUTION AND DELIVERY OF WARRANT CERTIFICATES 
1.1    Issuance of Warrants. [If Warrants alone—Upon issuance, each Warrant Certificate shall evidence one or more Warrants.] [If Other Securities and Warrants—Warrant Certificates shall be [initially] issued in connection with the issuance of the Other Securities [but shall be separately transferable on and after                      (the “Detachable Date”)] [and shall not be separately transferable] and each Warrant Certificate shall evidence one or more Warrants.] Each Warrant 

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evidenced thereby shall represent the right, subject to the provisions contained herein and therein, to purchase one Warrant Debt Security. [If Other Securities and Warrants—Warrant Certificates shall be initially issued in units with the Other Securities and each Warrant Certificate included in such a unit shall evidence                      Warrants for each [$                 principal amount] [            shares] of Other Securities included in such unit]. 
1.2    Execution and Delivery of Warrant Certificates. Each Warrant Certificate, whenever issued, shall be in registered form substantially in the form set forth in Exhibit A hereto, shall be dated the date of its countersignature by the Warrant Agent and may have such letters, numbers, or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved thereon as the officers of the Company executing the same may approve (execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange on which the Warrants may be listed, or to conform to usage. The Warrant Certificates shall be signed on behalf of the Company by any of its present or future chief executive officers, presidents, senior vice presidents, vice presidents, chief financial officers, chief legal officers, treasurers, assistant treasurers, controllers, assistant controllers, secretaries or assistant secretaries under its corporate seal reproduced thereon. Such signatures may be manual or facsimile signatures of such authorized officers and may be imprinted or otherwise reproduced on the Warrant Certificates. The seal of the Company may be in the form of a facsimile thereof and may be impressed, affixed, imprinted or otherwise reproduced on the Warrant Certificates. 
No Warrant Certificate shall be valid for any purpose, and no Warrant evidenced thereby shall be exercisable, until such Warrant Certificate has been countersigned by the manual signature of the Warrant Agent. Such signature by the Warrant Agent upon any Warrant Certificate executed by the Company shall be conclusive evidence that the Warrant Certificate so countersigned has been duly issued hereunder. 
In case any officer of the Company who shall have signed any of the Warrant Certificates either manually or by facsimile signature shall cease to be such officer before the Warrant Certificates so signed shall have been countersigned and delivered by the Warrant Agent, such Warrant Certificates may be countersigned and delivered notwithstanding that the person who signed Warrant Certificates ceased to be such officer of the Company; and any Warrant Certificate may be signed on behalf of the Company by such persons as, at the actual date of the execution of such Warrant Certificate, shall be the proper officers of the Company, although at the date of the execution of this Agreement any such person was not such officer. 
The term “holder” or “holder of a Warrant Certificate” as used herein shall mean any person in whose name at the time any Warrant Certificate shall be registered upon the books to be maintained by the Warrant Agent for that purpose [If Other Securities and Warrants are not immediately detachable—or upon the registration of the Other Securities prior to the Detachable Date. Prior to the Detachable Date, the Company will, or will cause the registrar of the Other Securities to, make available at all times to the Warrant Agent such information as to holders of the Other Securities as may be necessary to keep the Warrant Agent’s records up to date]. 

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1.3    Issuance of Warrant Certificates. Warrant Certificates evidencing the right to purchase Warrant Debt Securities may be executed by the Company and delivered to the Warrant Agent upon the execution of this Warrant Agreement or from time to time thereafter. The Warrant Agent shall, upon receipt of Warrant Certificates duly executed on behalf of the Company, countersign such Warrant Certificates and shall deliver such Warrant Certificates to or upon the order of the Company. 
ARTICLE 2     
 
WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS 
2.1    Warrant Price. During the period specified in Section 2.2, each Warrant shall, subject to the terms of this Warrant Agreement and the applicable Warrant Certificate, entitle the holder thereof, to purchase the principal amount of Warrant Debt Securities specified in the applicable Warrant Certificate at an exercise price of                     % of the principal amount thereof [plus accrued amortization, if any, of the original issue discount of the Warrant Debt Securities] [plus accrued interest, if any, from the most recent date from which interest shall have been paid on the Warrant Debt Securities or, if no interest shall have been paid on the Warrant Debt Securities, from the date of their initial issuance.] [The original issue discount ($          for each $1,000 principal amount of Warrant Debt Securities) will be amortized at a          % annual rate, computed on a[n] [semi-] annual basis [using a 360-day year consisting of twelve 30-day months].] Such purchase price for the Warrant Debt Securities is referred to in this Agreement as the “Warrant Price.” 
2.2    Duration of Warrants. Each Warrant may be exercised in whole or in part at any time, as specified herein, on or after [the date thereof] [                    ] and at or before [                    ] p.m., [City] time, on                      or such later date as the Company may designate by notice to the Warrant Agent and the holders of Warrant Certificates mailed to their addresses as set forth in the record books of the Warrant Agent (the “Expiration Date”). Each Warrant not exercised at or before [             ] p.m., [City] time, on the Expiration Date shall become void, and all rights of the holder of the Warrant Certificate evidencing such Warrant under this Agreement shall cease. 
2.3    Exercise Of Warrants. 
(a)    During the period specified in Section 2.2, the Warrants may be exercised to purchase a whole number of Warrant Debt Securities in registered form by providing certain information as set forth on the reverse side of the Warrant Certificate and by paying in full, in lawful money of the United States of America, [in cash or by certified check or official bank check in New York Clearing House funds] [by bank wire transfer in immediately available funds] the Warrant Price for each Warrant Debt Security with respect to which a Warrant is being exercised to the Warrant Agent at its corporate trust office, provided that such exercise is subject to receipt within five business days of such payment by the Warrant Agent of the Warrant Certificate with the form of election to purchase Warrant Debt Securities set forth on the reverse side of the Warrant Certificate properly completed and duly executed. The date on which payment in full of the Warrant Price is received by the Warrant Agent shall, subject to receipt of the Warrant Certificate as aforesaid, be deemed to be the date on which the Warrant is exercised; provided, however, that if, at the date of receipt of such Warrant Certificates and payment in full of the Warrant Price, the transfer books for 

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the Warrant Debt Securities purchasable upon the exercise of such Warrants shall be closed, no such receipt of such Warrant Certificates and no such payment of such Warrant Price shall be effective to constitute the person so designated to be named as the holder of record of such Warrant Debt Securities on such date, but shall be effective to constitute such person as the holder of record of such Warrant Debt Securities for all purposes at the opening of business on the next succeeding day on which the transfer books for the Warrant Debt Securities purchasable upon the exercise of such Warrants shall be opened, and the certificates for the Warrant Debt Securities in respect of which such Warrants are then exercised shall be issuable as of the date on such next succeeding day on which the transfer books shall next be opened, and until such date the Company shall be under no duty to deliver any certificate for such Warrant Debt Securities. The Warrant Agent shall deposit all funds received by it in payment of the Warrant Price in an account of the Company maintained with it and shall advise the Company by telephone at the end of each day on which a payment for the exercise of Warrants is received of the amount so deposited to its account. The Warrant Agent shall promptly confirm such telephone advice to the Company in writing. 
(b)    The Warrant Agent shall, from time to time, as promptly as practicable, advise the Company of (i) the number of Warrant Debt Securities with respect to which Warrants were exercised, (ii) the instructions of each holder of the Warrant Certificates evidencing such Warrants with respect to delivery of the Warrant Debt Securities to which such holder is entitled upon such exercise, (iii) delivery of Warrant Certificates evidencing the balance, if any, of the Warrants for the remaining Warrant Debt Securities after such exercise, and (iv) such other information as the Company or the [Senior] [Subordinated] Trustee shall reasonably require. 
(c)    As soon as practicable after the exercise of any Warrant, the Company shall issue, pursuant to the Indenture, in authorized denominations, to or upon the order of the holder of the Warrant Certificate evidencing such Warrant, the Warrant Debt Securities to which such holder is entitled, in fully registered form, registered in such name or names as may be directed by such holder. If fewer than all of the Warrants evidenced by such Warrant Certificate are exercised, the Company shall execute, and an authorized officer of the Warrant Agent shall manually countersign and deliver, a new Warrant Certificate evidencing Warrants for the number of Warrant Debt Securities remaining unexercised. 
(d)    The Company shall not be required to pay any stamp or other tax or other governmental charge required to be paid in connection with any transfer involved in the issue of the Warrant Debt Securities, and in the event that any such transfer is involved, the Company shall not be required to issue or deliver any Warrant Debt Securities until such tax or other charge shall have been paid or it has been established to the Company’s satisfaction that no such tax or other charge is due.
(e)    Prior to the issuance of any Warrants there shall have been reserved, and the Company shall at all times through the Expiration Date keep reserved, out of its authorized but unissued Warrant Debt Securities, a number of shares sufficient to provide for the exercise of the Warrants. 
ARTICLE 3     
 

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OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS OF WARRANT CERTIFICATES 
3.1    No Rights As Holders of Warrant Debt Securities Conferred By Warrants or Warrant Certificates. No Warrant Certificate or Warrant evidenced thereby shall entitle the holder thereof to any of the rights of a holder of Warrant Debt Securities, including, without limitation, the right to receive the payment of principal of (or premium, if any) or interest, if any, on the Warrant Debt Securities or to enforce any of the covenants in the Indenture. 
3.2    Lost, Stolen, Mutilated or Destroyed Warrant Certificates. Upon receipt by the Warrant Agent of evidence reasonably satisfactory to it and the Company of the ownership of and the loss, theft, destruction or mutilation of any Warrant Certificate and/or indemnity reasonably satisfactory to the Warrant Agent and the Company and, in the case of mutilation, upon surrender of the mutilated Warrant Certificate to the Warrant Agent for cancellation, then, in the absence of notice to the Company or the Warrant Agent that such Warrant Certificate has been acquired by a bona fide purchaser, the Company shall execute, and an authorized officer of the Warrant Agent shall manually countersign and deliver, in exchange for or in lieu of the lost, stolen, destroyed or mutilated Warrant Certificate, a new Warrant Certificate of the same tenor and evidencing Warrants for a like principal amount of Warrant Debt Securities. Upon the issuance of any new Warrant Certificate under this Section 3.2, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Warrant Agent) in connection therewith. Every substitute Warrant Certificate executed and delivered pursuant to this Section 3.2 in lieu of any lost, stolen or destroyed Warrant Certificate shall represent an additional contractual obligation of the Company, whether or not the lost, stolen or destroyed Warrant Certificate shall be at any time enforceable by anyone, and shall be entitled to the benefits of this Agreement equally and proportionately with any and all other Warrant Certificates duly executed and delivered hereunder. The provisions of this Section 3.2 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement of mutilated, lost, stolen or destroyed Warrant Certificates. 
3.3    Holder Of Warrant Certificate May Enforce Rights. Notwithstanding any of the provisions of this Agreement, any holder of any Warrant Certificate, without the consent of the Warrant Agent, the [Senior] [Subordinated] Trustee, the holder of any Warrant Debt Securities or the holder of any other Warrant Certificate, may, in such holder’s own behalf and for such holder’s own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company suitable to enforce, or otherwise in respect of, such holder’s right to exercise the Warrants evidenced by such holder’s Warrant Certificate in the manner provided in such holder’s Warrant Certificates and in this Agreement. 
3.4    Merger, Sale, Conveyance or Lease. In case of (a) any share exchange, merger or similar transaction of the Company with or into another person or entity (other than a share exchange, merger or similar transaction in which the Company is the acquiring or surviving corporation) or (b) the sale, exchange, lease, transfer or other disposition of all or substantially all of the properties and assets of the Company as an entirety (in any such case, a “Reorganization Event”), then, as a 

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condition of such Reorganization Event, lawful provisions shall be made, and duly executed documents evidencing the same from the Company’s successor shall be delivered to the holders of the Warrants, so that such successor shall succeed to and be substituted for the Company, and assume all the Company’s obligations under, this Agreement and the Warrants. The Company shall thereupon be relieved of any further obligation hereunder or under the Warrants, and the Company as the predecessor corporation may thereupon or at any time thereafter be dissolved, wound up or liquidated. Such successor or assuming entity thereupon may cause to be signed, and may issue either in its own name or in the name of the Company, any or all of the Warrants issuable hereunder which heretofore shall not have been signed by the Company, and may execute and deliver securities in its own name, in fulfillment of its obligations to deliver Warrant Debt Securities upon exercise of the Warrants. All the Warrants so issued shall in all respects have the same legal rank and benefit under this Agreement as the Warrants theretofore or thereafter issued in accordance with the terms of this Agreement as though all of such Warrants had been issued at the date of the execution hereof. In any case of any such Reorganization Event, such changes in phraseology and form (but not in substance) may be made in the Warrants thereafter to be issued as may be appropriate. The Warrant Agent may receive a written opinion of legal counsel as conclusive evidence that any such Reorganization Event complies with the provisions of this Section 3.4.
3.5    Notice To Warrantholders. In case the Company shall (a) effect any Reorganization Event or (b) make any distribution on or in respect of the [title of Warrant Debt Securities] in connection with the dissolution, liquidation or winding up of the Company, then the Company shall mail to each holder of Warrants at such holder’s address as it shall appear on the books of the Warrant Agent, at least ten days prior to the applicable date hereinafter specified, a notice stating the date on which such Reorganization Event, dissolution, liquidation or winding up is expected to become effective, and the date as of which it is expected that holders of [title of Warrant Debt Securities] of record shall be entitled to exchange their shares of [title of Warrant Debt Securities] for securities or other property deliverable upon such Reorganization Event, dissolution, liquidation or winding up. No failure to mail such notice nor any defect therein or in the mailing thereof shall affect any such transaction. 
ARTICLE 4     
 
EXCHANGE AND TRANSFER OF WARRANT CERTIFICATES 
4.1    Exchange and Transfer of Warrant Certificates. [If Other Securities with Warrants which are immediately detachable—Upon] [If Other Securities with Warrants which are not immediately detachable—Prior to the Detachable Date, a Warrant Certificate may be exchanged or transferred only together with the Other Security to which the Warrant Certificate was initially attached, and only for the purpose of effecting or in conjunction with an exchange or transfer of such Other Security. Prior to any Detachable Date, each transfer of the Other Security shall operate also to transfer the related Warrant Certificates. After the Detachable Date, upon] surrender at the corporate trust office of the Warrant Agent, Warrant Certificates evidencing Warrants may be exchanged for Warrant Certificates in other denominations evidencing such Warrants or the transfer thereof may be registered in whole or in part; provided that such other Warrant Certificates evidence Warrants for the same aggregate principal amount of Warrant Debt Securities as the Warrant 

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Certificates so surrendered. The Warrant Agent shall keep, at its corporate trust office, books in which, subject to such reasonable regulations as it may prescribe, it shall register Warrant Certificates and exchanges and transfers of outstanding Warrant Certificates, upon surrender of the Warrant Certificates to the Warrant Agent at its corporate trust office for exchange or registration of transfer, properly endorsed or accompanied by appropriate instruments of registration of transfer and written instructions for transfer, all in form satisfactory to the Company and the Warrant Agent. No service charge shall be made for any exchange or registration of transfer of Warrant Certificates, but the Company may require payment of a sum sufficient to cover any stamp or other tax or other governmental charge that may be imposed in connection with any such exchange or registration of transfer. Whenever any Warrant Certificates are so surrendered for exchange or registration of transfer, an authorized officer of the Warrant Agent shall manually countersign and deliver to the person or persons entitled thereto a Warrant Certificate or Warrant Certificates duly authorized and executed by the Company, as so requested. The Warrant Agent shall not be required to effect any exchange or registration of transfer which will result in the issuance of a Warrant Certificate evidencing a Warrant for a fraction of a Warrant Debt Security or a number of Warrants for a whole number of Warrant Debt Securities and a fraction of a Warrant Debt Security. All Warrant Certificates issued upon any exchange or registration of transfer of Warrant Certificates shall be the valid obligations of the Company, evidencing the same obligations and entitled to the same benefits under this Agreement as the Warrant Certificate surrendered for such exchange or registration of transfer. 
4.2    Treatment of Holders of Warrant Certificates. [If Other Securities and Warrants are not immediately detachable—Prior to the Detachable Date, the Company, the Warrant Agent and all other persons may treat the owner of the Other Security as the owner of the Warrant Certificates initially attached thereto for any purpose and as the person entitled to exercise the rights represented by the Warrants evidenced by such Warrant Certificates, any notice to the contrary notwithstanding. After the Detachable Date and prior to due presentment of a Warrant Certificate for registration of transfer, the] [The] Company, the Warrant Agent and all other persons may treat the registered holder of a Warrant Certificate as the absolute owner thereof for any purpose and as the person entitled to exercise the rights represented by the Warrants evidenced thereby, any notice to the contrary notwithstanding. 
4.3    Cancellation of Warrant Certificates. Any Warrant Certificate surrendered for exchange, registration of transfer or exercise of the Warrants evidenced thereby shall, if surrendered to the Company, be delivered to the Warrant Agent and all Warrant Certificates surrendered or so delivered to the Warrant Agent shall be promptly canceled by the Warrant Agent and shall not be reissued and, except as expressly permitted by this Agreement, no Warrant Certificate shall be issued hereunder in exchange therefor or in lieu thereof. The Warrant Agent shall deliver to the Company from time to time or otherwise dispose of canceled Warrant Certificates in a manner satisfactory to the Company. 
ARTICLE 5     
 
CONCERNING THE WARRANT AGENT 
5.1    Warrant Agent. The Company hereby appoints ___________ as Warrant Agent of the Company in respect of the Warrants and the Warrant Certificates upon the terms and subject to 

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the conditions herein set forth, and ___________ hereby accepts such appointment. The Warrant Agent shall have the powers and authority granted to and conferred upon it in the Warrant Certificates and hereby and such further powers and authority to act on behalf of the Company as the Company may hereafter grant to or confer upon it. All of the terms and provisions with respect to such powers and authority contained in the Warrant Certificates are subject to and governed by the terms and provisions hereof. 
5.2    Conditions of Warrant Agent’s Obligations. The Warrant Agent accepts its obligations herein set forth upon the terms and conditions hereof, including the following to all of which the Company agrees and to all of which the rights hereunder of the holders from time to time of the Warrant Certificates shall be subject: 
(a)    Compensation and Indemnification. The Company agrees promptly to pay the Warrant Agent the compensation to be agreed upon with the Company for all services rendered by the Warrant Agent and to reimburse the Warrant Agent for reasonable out-of-pocket expenses (including reasonable counsel fees) incurred without negligence, bad faith or willful misconduct by the Warrant Agent in connection with the services rendered hereunder by the Warrant Agent. The Company also agrees to indemnify the Warrant Agent for, and to hold it harmless against, any loss, liability or expense incurred without negligence, bad faith or willful misconduct on the part of the Warrant Agent, arising out of or in connection with its acting as Warrant Agent hereunder, including the reasonable costs and expenses of defending against any claim of such liability. 
(b)    Agent for the Company. In acting under this Warrant Agreement and in connection with the Warrant Certificates, the Warrant Agent is acting solely as agent of the Company and does not assume any obligations or relationship of agency or trust for or with any of the holders of Warrant Certificates or beneficial owners of Warrants. 
(c)    Counsel. The Warrant Agent may consult with counsel satisfactory to it, which may include counsel for the Company, and the written advice of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with the advice of such counsel. 
(d)    Documents. The Warrant Agent shall be protected and shall incur no liability for or in respect of any action taken or omitted by it in reliance upon any Warrant Certificate, notice, direction, consent, certificate, affidavit, statement or other paper or document reasonably believed by it to be genuine and to have been presented or signed by the proper parties. 
(e)    Certain Transactions. The Warrant Agent, and its officers, directors and employees, may become the owner of, or acquire any interest in, Warrants, with the same rights that it or they would have if it were not the Warrant Agent hereunder, and, to the extent permitted by applicable law, it or they may engage or be interested in any financial or other transaction with the Company and may act on, or as depositary, trustee or agent for, any committee or body of holders of Warrant Debt Securities or other obligations of the Company as freely as if it were not the Warrant Agent hereunder. Nothing in this Warrant Agreement shall be deemed to prevent the Warrant Agent from acting as [Senior] [Subordinated] Trustee under the [Senior] [Subordinated] Indenture. 

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(f)    No Liability for Interest. Unless otherwise agreed with the Company, the Warrant Agent shall have no liability for interest on any monies at any time received by it pursuant to any of the provisions of this Agreement or of the Warrant Certificates. 
(g)    No Liability for Invalidity. The Warrant Agent shall have no liability with respect to any invalidity of this Agreement or any of the Warrant Certificates (except as to the Warrant Agent’s countersignature thereon). 
(h)    No Responsibility for Representations. The Warrant Agent shall not be responsible for any of the recitals or representations herein or in the Warrant Certificates (except as to the Warrant Agent’s countersignature thereon), all of which are made solely by the Company. 
(i)    No Implied Obligations. The Warrant Agent shall be obligated to perform only such duties as are herein and in the Warrant Certificates specifically set forth and no implied duties or obligations shall be read into this Agreement or the Warrant Certificates against the Warrant Agent. The Warrant Agent shall not be under any obligation to take any action hereunder which may tend to involve it in any expense or liability, the payment of which within a reasonable time is not, in its reasonable opinion, assured to it. The Warrant Agent shall not be accountable or under any duty or responsibility for the use by the Company of any of the Warrant Certificates authenticated by the Warrant Agent and delivered by it to the Company pursuant to this Agreement or for the application by the Company of the proceeds of the Warrant Certificates. The Warrant Agent shall have no duty or responsibility in case of any default by the Company in the performance of its covenants or agreements contained herein or in the Warrant Certificates or in the case of the receipt of any written demand from a holder of a Warrant Certificate with respect to such default, including, without limiting the generality of the foregoing, any duty or responsibility to initiate or attempt to initiate any proceedings at law or otherwise or, except as provided in Section 6.2 hereof, to make any demand upon the Company. 
5.3    Resignation, Removal and Appointment of Successors. 
(a)    The Company agrees, for the benefit of the holders from time to time of the Warrant Certificates, that there shall at all times be a Warrant Agent hereunder until all the Warrants have been exercised or are no longer exercisable. 
(b)    The Warrant Agent may at any time resign as agent by giving written notice to the Company of such intention on its part, specifying the date on which its desired resignation shall become effective; provided that such date shall not be less than three months after the date on which such notice is given unless the Company otherwise agrees. The Warrant Agent hereunder may be removed at any time by the filing with it of an instrument in writing signed by or on behalf of the Company and specifying such removal and the intended date when it shall become effective. Such resignation or removal shall take effect upon the appointment by the Company, as hereinafter provided, of a successor Warrant Agent (which shall be a bank or trust company authorized under the laws of the jurisdiction of its organization to exercise corporate trust powers) and the acceptance of such appointment by such successor Warrant Agent. The obligation of the Company under Section 5.2(a) shall continue to the extent set forth therein notwithstanding the resignation or removal of the Warrant Agent. 

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(c)    In case at any time the Warrant Agent shall resign, or shall be removed, or shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or shall commence a voluntary case under the Federal bankruptcy laws, as now or hereafter constituted, or under any other applicable Federal or state bankruptcy, insolvency or similar law or shall consent to the appointment of or taking possession by a receiver, custodian, liquidator, assignee, trustee, sequestrator (or other similar official) of the Warrant Agent or its property or affairs, or shall make an assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due, or shall take corporate action in furtherance of any such action, or a decree or order for relief by a court having jurisdiction in the premises shall have been entered in respect of the Warrant Agent in an involuntary case under the Federal bankruptcy laws, as now or hereafter constituted, or any other applicable Federal or state bankruptcy, insolvency or similar law, or a decree or order by a court having jurisdiction in the premises shall have been entered for the appointment of a receiver, custodian, liquidator, assignee, trustee, sequestrator (or similar official) of the Warrant Agent or of its property or affairs, or any public officer shall take charge or control of the Warrant Agent or of its property or affairs for the purpose of rehabilitation, conservation, winding up or liquidation, a successor Warrant Agent, qualified as aforesaid, shall be appointed by the Company by an instrument in writing, filed with the successor Warrant Agent. Upon the appointment as aforesaid of a successor Warrant Agent and acceptance by the successor Warrant Agent of such appointment, the Warrant Agent shall cease to be Warrant Agent hereunder. 
(d)    Any successor Warrant Agent appointed hereunder shall execute, acknowledge and deliver to its predecessor and to the Company an instrument accepting such appointment hereunder, and thereupon such successor Warrant Agent, without any further act, deed or conveyance, shall become vested with all the authority, rights, powers, trusts, immunities, duties and obligations of such predecessor with like effect as if originally named as Warrant Agent hereunder, and such predecessor, upon payment of its charges and disbursements then unpaid, shall thereupon become obligated to transfer, deliver and pay over, and such successor Warrant Agent shall be entitled to receive, all monies, securities and other property on deposit with or held by such predecessor, as Warrant Agent hereunder. 
(e)    Any corporation into which the Warrant Agent hereunder may be merged or converted or any corporation with which the Warrant Agent may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Warrant Agent shall be a party, or any corporation to which the Warrant Agent shall sell or otherwise transfer all or substantially all the assets and business of the Warrant Agent, provided that it shall be qualified as aforesaid, shall be the successor Warrant Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto. 
ARTICLE 6     
 
MISCELLANEOUS 
6.1    Amendment. This Agreement may be amended by the parties hereto, without the consent of the holder of any Warrant Certificate, for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained herein, or making any other provisions with respect to matters or questions arising under this Agreement as the Company and 

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the Warrant Agent may deem necessary or desirable; provided that such action shall not materially adversely affect the interests of the holders of the Warrant Certificates. 
6.2    Notices and Demands to the Company and Warrant Agent. If the Warrant Agent shall receive any notice or demand addressed to the Company by the holder of a Warrant Certificate pursuant to the provisions of the Warrant Certificates, the Warrant Agent shall promptly forward such notice or demand to the Company. 
6.3    Addresses. Any communication from the Company to the Warrant Agent with respect to this Agreement shall be addressed to                     , Attention:                       and any communication from the Warrant Agent to the Company with respect to this Agreement shall be addressed to Chimerix, Inc., 2505 Meridian Parkway, Suite 100, Durham, NC 27713, Attention: Chief Financial Officer (or such other address as shall be specified in writing by the Warrant Agent or by the Company). 
6.4    Governing Law. This Agreement and each Warrant Certificate issued hereunder, and any claim, controversy or dispute arising under or related to this Agreement or any Warrant Certificate, shall be governed by and construed in accordance with the laws of the State of New York.
6.5    Delivery Of Prospectus. The Company shall furnish to the Warrant Agent sufficient copies of a prospectus meeting the requirements of the Securities Act of 1933, as amended, relating to the Warrant Debt Securities deliverable upon exercise of the Warrants (the “Prospectus”), and the Warrant Agent agrees that upon the exercise of any Warrant, the Warrant Agent will deliver to the holder of the Warrant Certificate evidencing such Warrant, prior to or concurrently with the delivery of the Warrant Debt Securities issued upon such exercise, a Prospectus. The Warrant Agent shall not, by reason of any such delivery, assume any responsibility for the accuracy or adequacy of such Prospectus. 
6.6    Obtaining of Governmental Approvals. The Company will from time to time take all action which may be necessary to obtain and keep effective any and all permits, consents and approvals of governmental agencies and authorities and securities act filings under United States Federal and state laws (including without limitation a registration statement in respect of the Warrants and Warrant Debt Securities under the Securities Act of 1933, as amended), which may be or become requisite in connection with the issuance, sale, transfer, and delivery of the Warrant Debt Securities issued upon exercise of the Warrants, the issuance, sale, transfer and delivery of the Warrants or upon the expiration of the period during which the Warrants are exercisable. 
6.7    Persons Having Rights Under Warrant Agreement. Nothing in this Agreement shall give to any person other than the Company, the Warrant Agent and the holders of the Warrant Certificates any right, remedy or claim under or by reason of this Agreement. 
6.8    Headings. The descriptive headings of the several Articles and Sections of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 

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6.9    Counterparts. This Agreement may be executed in any number of counterparts, each of which as so executed shall be deemed to be an original, but such counterparts shall together constitute but one and the same instrument. 
6.10    Inspection of Agreement. A copy of this Agreement shall be available at all reasonable times at the principal corporate trust office of the Warrant Agent for inspection by the holder of any Warrant Certificate. The Warrant Agent may require such holder to submit his Warrant Certificate for inspection by it. 

13
 
 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, all as of the day and year first above written. 
CHIMERIX, INC.
By:     
Name:     
Title:     
[WARRANT AGENT], as Warrant Agent 
By:     
Name:     
Title:     

[SIGNATURE PAGE TO DEBT SECURITIES WARRANT AGREEMENT]

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EXHIBIT A  
 
FORM OF WARRANT CERTIFICATE 
[FACE OF WARRANT CERTIFICATE]
	
			
	[[Form if Warrants are attached to Other Securities and are not immediately detachable.]
	 
	[Prior to                     , this Warrant Certificate cannot be transferred or exchanged unless attached to a [Title of Other Securities].]

	[Form of Legend if Warrants are not immediately exercisable.]
	 
	[Prior to                     , Warrants evidenced by this Warrant Certificate cannot be exercised.]

EXERCISABLE ONLY IF COUNTERSIGNED BY THE WARRANT AGENT AS PROVIDED HEREIN
VOID AFTER [        ] P.M., [___________] TIME, ON                     ,

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CHIMERIX, INC. 
WARRANT CERTIFICATE REPRESENTING  
WARRANTS TO PURCHASE  
[TITLE OF WARRANT DEBT SECURITIES]
No.                           Warrants 
This certifies that                                 or registered assigns is the registered owner of the above indicated number of Warrants, each Warrant entitling such owner [If Warrants are attached to Other Securities and are not immediately detachable —, subject to the registered owner qualifying as a “Holder” of this Warrant Certificate, as hereinafter defined)] to purchase, at any time [after [          ] p.m., [City] time, on                                 and] on or before [        ] p.m., [City] time, on                                , $        principal amount of [Title of Warrant Debt Securities] (the “Warrant Debt Securities”), of Chimerix, Inc. (the “Company”), issued or to be issued under the Indenture (as hereinafter defined), on the following basis: during the period from                                , through and including                                , each Warrant shall entitle the Holder thereof, subject to the provisions of this Agreement, to purchase the principal amount of Warrant Debt Securities stated in the Warrant Certificate at the warrant price (the “Warrant Price”) of        % of the principal amount thereof [plus accrued amortization, if any, of the original issue discount of the Warrant Debt Securities] [plus accrued interest, if any, from the most recent date from which interest shall have been paid on the Warrant Debt Securities or, if no interest shall have been paid on the Warrant Debt Securities, from the date of their original issuance]. [The original issue discount ($          for each $1,000 principal amount of Warrant Debt Securities) will be amortized at a           % annual rate, computed on a[n] [semi-]annual basis [using a 360-day year consisting of twelve 30-day months]. The Holder may exercise the Warrants evidenced hereby by providing certain information set forth on the back hereof and by paying in full, in lawful money of the United States of America, [in cash or by certified check or official bank check in New York Clearing House funds] [by bank wire transfer in immediately available funds], the Warrant Price for each Warrant Debt Security with respect to which this Warrant is exercised to the Warrant Agent (as hereinafter defined) and by surrendering this Warrant Certificate, with the purchase form on the back hereof duly executed, at the corporate trust office of [name of Warrant Agent], or its successor as warrant agent (the “Warrant Agent”), which is, on the date hereof, at the address specified on the reverse hereof, and upon compliance with and subject to the conditions set forth herein and in the Warrant Agreement (as hereinafter defined). 
The term “Holder” as used herein shall mean [If Warrants are attached to Other Securities and are not immediately detachable—, prior to                            ,             (the “Detachable Date”), the registered owner of the Company’s [title of Other Securities] to which this Warrant Certificate was initially attached, and after such Detachable Date,] the person in whose name at the time this Warrant Certificate shall be registered upon the books to be maintained by the Warrant Agent for that purpose pursuant to Section 4 of the Warrant Agreement. 
The Warrants evidenced by this Warrant Certificate may be exercised to purchase Warrant Debt Securities in the principal amount of $1,000 or any integral multiple thereof in registered form. Upon any exercise of fewer than all of the Warrants evidenced by this Warrant Certificate, there 

16
 
 

shall be issued to the Holder hereof a new Warrant Certificate evidencing Warrants for the aggregate principal amount of Warrant Debt Securities remaining unexercised. 
This Warrant Certificate is issued under and in accordance with the Warrant Agreement dated as of                        ,           (the “Warrant Agreement”), between the Company and the Warrant Agent and is subject to the terms and provisions contained in the Warrant Agreement, to all of which terms and provisions the Holder of this Warrant Certificate consents by acceptance hereof. Copies of the Warrant Agreement are on file at the above-mentioned office of the Warrant Agent. 
The Warrant Debt Securities to be issued and delivered upon the exercise of Warrants evidenced by this Warrant Certificate will be issued under and in accordance with an Indenture, [dated as of                      ,               (the “Senior Indenture”), between the Company and                                 , as trustee (such trustee, and any successors to such trustee, the “Senior Trustee”)] [dated as of                                ,                                , (the “Subordinated Indenture”), between the Company and                                , as trustee (such trustee, and any successors to such trustee, the “Subordinated Trustee”)] and will be subject to the terms and provisions contained in the Warrant Debt Securities and in the Indenture. Copies of the [Senior] [Subordinated] Indenture, including the form of the Warrant Debt Securities, are on file at the corporate trust office of the Trustee. 
[If Warrants are attached to Other Securities and are not immediately detachable—Prior to the Detachable Date, this Warrant Certificate may be exchanged or transferred only together with the [Title of Other Securities] (the “Other Securities”) to which this Warrant Certificate was initially attached, and only for the purpose of effecting or in conjunction with, an exchange or transfer of such Other Security. Additionally, on or prior to the Detachable Date, each transfer of such Other Security on the register of the Other Securities shall operate also to transfer this Warrant Certificate. After such date, transfer of this] [If Warrants are attached to Other Securities and are immediately detachable—Transfer of this] Warrant Certificate may be registered when this Warrant Certificate is surrendered at the corporate trust office of the Warrant Agent by the registered owner or such owner’s assigns, in the manner and subject to the limitations provided in the Warrant Agreement. 
[If Other Securities with Warrants which are not immediately detachable-Except as provided in the immediately preceding paragraph, after] [If Other Securities with Warrants which are immediately detachable or Warrants alone—After] countersignature by the Warrant Agent and prior to the expiration of this Warrant Certificate, this Warrant Certificate may be exchanged at the corporate trust office of the Warrant Agent for Warrant Certificates representing Warrants for the same aggregate principal amount of Warrant Debt Securities. 
This Warrant Certificate shall not entitle the Holder hereof to any of the rights of a holder of the Warrant Debt Securities, including, without limitation, the right to receive payments of principal of (and premium, if any) or interest, if any, on the Warrant Debt Securities or to enforce any of the covenants of the Indenture. 
Reference is hereby made to the further provisions of this Warrant Certificate set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 

17
 
 

This Warrant Certificate shall not be valid or obligatory for any purpose until countersigned by the Warrant Agent. 

18
 
 

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed in its name and on its behalf by the facsimile signatures of its duly authorized officers. 
Dated:    
CHIMERIX, INC.
By:     
Name:     
Title:                             

Countersigned:

[WARRANT AGENT], as Warrant Agent 
By:     
Name:     
Title:                             

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[REVERSE OF WARRANT CERTIFICATE]
(Instructions for Exercise of Warrant)
To exercise any Warrants evidenced hereby for Warrant Debt Securities (as hereinafter defined), the Holder must pay, in lawful money of the United States of America, [in cash or by certified check or official bank check in New York Clearing House funds] [by bank wire transfer in immediately available funds], the Warrant Price in full for Warrants exercised, to [Warrant Agent] [address of Warrant Agent], Attn:                         , which payment must specify the name of the Holder and the number of Warrants exercised by such Holder. In addition, the Holder must complete the information required below and present this Warrant Certificate in person or by mail (certified or registered mail is recommended) to the Warrant Agent at the appropriate address set forth above. This Warrant Certificate, completed and duly executed, must be received by the Warrant Agent within five business days of the payment. 
(To be executed upon exercise of Warrants)
The undersigned hereby irrevocably elects to exercise                    Warrants, represented by this Warrant Certificate, to purchase $            principal amount of the [Title of Warrant Debt Securities] (the “Warrant Debt Securities”) of Chimerix, Inc. and represents that he has tendered payment for such Warrant Debt Securities, in lawful money of the United States of America, [in cash or by certified check or official bank check in New York Clearing House funds] [by bank wire transfer in immediately available funds], to the order of Chimerix, Inc., c/o [insert name and address of Warrant Agent], in the amount of $             in accordance with the terms hereof. The undersigned requests that said principal amount of Warrant Debt Securities be in fully registered form in the authorized denominations, registered in such names and delivered all as specified in accordance with the instructions set forth below. 
If the number of Warrants exercised is less than all the Warrants evidenced hereby, the undersigned requests that a new Warrant Certificate evidencing the Warrants for the aggregate principal amount of Warrant Debt Securities remaining unexercised be issued and delivered to the undersigned unless otherwise specified in the instructions below. 
Dated        Name    
Please Print
Address:    
    
    
(Insert Social Security or Other Identifying Number of Holder)

Signature Guaranteed    
Signature

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(Signature must conform in all respects to name of holder as specified on the face of this Warrant Certificate and must bear a signature guarantee by a FINRA member firm).  
This Warrant may be exercised at the following addresses: 
By hand at    
    
    
By mail at    
    
    
[Instructions as to form and delivery of Warrant Debt Securities and, if applicable, Warrant Certificates evidencing Warrants for the number of Warrant Debt Securities remaining unexercised—complete as appropriate.] 

21
 
 

ASSIGNMENT
[Form of assignment to be executed if Warrant Holder desires to transfer Warrant]

FOR VALUE RECEIVED,                      hereby sells, assigns and transfers unto: 
    
    
            
(Please print name and address including zip code)        Please print Social Security or other identifying number
the right represented by the within Warrant to purchase $            aggregate principal amount of [Title of Warrant Debt Securities] of Chimerix, Inc. to which the within Warrant relates and appoints                     attorney to transfer such right on the books of the Warrant Agent with full power of substitution in the premises.  
Dated            
Signature
(Signature must conform in all respects to name of holder as specified on the face of the Warrant)
Signature Guaranteed
    

22Exhibit 10.1

 

November 4, 2015

 

Carrie Teffner

 

Re:  Offer of Employment by Crocs, Inc.

 

Dear Carrie:

 

I am very pleased to confirm our offer to you of full-time employment with Crocs, Inc., a Delaware corporation (the “Company”), in the positions of Executive Vice President and Chief Financial Officer with a start date on a mutually agreeable date in December, 2015 (the “Start Date”). You will report to the Company’s Chief Executive Officer (the “CEO”) and you agree that you will resign from the Company’s Board of Directors (the “Board”) prior to the Start Date.  Crocs is committed to your continued development as a senior executive, and will use its reasonable best efforts to further your growth through professional development opportunities. Crocs expects that you will be offered additional operational responsibilities within the next 12-18 months which will meaningfully expand the scope of your executive role with the Company.  In the interest of properly exploring such opportunities, the CEO shall meet with you within 30 days of each 6 month period of your employment to discuss your job performance, your professional interests and opportunities for expanded roles.

 

The other terms and benefits of our offer are as follows:

 

1.     Starting Salary and Commencement Bonus.

 

(a)  Base Salary.  Your starting salary will be $650,000 per year (as adjusted from time to time, your “Base Salary”), less all applicable deductions required by law, which shall be payable at the times and in the installments consistent with the Company’s then current payroll practice. Your Base Salary is subject to periodic review and adjustment in accordance with the Company’s policies as in effect from time to time.

 

(b)  Signing Bonus.  The Company will pay you a one-time signing bonus in the amount of $75,000, less deductions required by law (the “Signing Bonus”). The Signing Bonus will be paid following your Start Date, but on or prior to December 31, 2015. Should you resign your employment with the Company for any reason, prior to the two-year anniversary of your Start Date with the Company (the “Start Date”), you will be required to repay the Company a pro rata portion of the Signing Bonus for each month of such two-year period that you do not remain employed by the Company (e.g, if you resign after 23 months, you repay 1/24 of the $75,000).  You shall not be required to repay the Signing Bonus in the case of your death or “Disability” (as defined in the Company’s 2015 Equity Incentive Plan) prior to the two-year anniversary of your Start Date.

 

2.     Annual Incentive Compensation.   You will be eligible to participate in the Company’s annual bonus plan, subject to the terms and conditions of the then current annual bonus plan and on a basis comparable to the other senior executives of the Company.  The target value of your annual bonus shall be no less than 85% of your Base Salary. All annual bonus plan awards shall be governed by the terms and conditions, and subject to any performance metrics,

 

 

established by the Compensation Committee of the Board (the “Compensation Committee”) for the Company’s then-current annual bonus plan.

 

3.     Long-Term Incentive Awards.

 

(a)  Special Sign-on Time-Vesting RSU Award.  Subject to approval of the Compensation Committee and effective on your Start Date, you will be granted an award of restricted stock units (the “Time-Vesting RSU Award”) representing the opportunity to acquire a number of shares of the Company’s common stock equal to $1,000,000 divided by the 30 trading day volume weighted average per share trading price of the Company’s common stock as of the date on which your appointment as Executive Vice President and Chief Financial Officer of the Company is announced publicly (the “Announcement Date”) and subject to the terms and conditions of the Company’s 2015 Equity Incentive Plan (or such other plan, program or arrangement selected by the Compensation Committee prior to your Start Date) (the “Plan”) and an award agreement between you and the Company in the form approved by the Compensation Committee (in substantially the same form as attached Exhibit A hereto). The right to settlement of the Time-Vesting RSU Award will be subject to your continued service to the Company (which would include Board service if you transition directly from employment to Board service) over the vesting period (vesting in three equal installments on each of the first, second and third anniversaries of your Start Date except as provided in paragraph 5(b)), the restrictions set forth in the Plan and the award agreement, and compliance with applicable securities and other laws.

 

(b)  Sign-on Performance-Vesting RSU Award.  Subject to approval of the Compensation Committee and effective on your Start Date, you will be granted an award of performance-vesting RSUs (the “Performance-Vesting RSU Award”) representing the opportunity to acquire a number of shares of the Company’s common stock equal to $1,000,000 divided by the 30 trading day volume weighted average per share trading price of the Company’s common stock as of the Announcement Date, subject to the terms and conditions of the Plan and an award agreement between you and the Company in the form approved by the Compensation Committee (in substantially the same form as attached Exhibit B hereto). The vesting of the Performance-Vesting RSU Award will be subject to the following conditions in each case subject to your continued service for the Company over such period (except as provided below), the restrictions set forth in the Plan and the award agreement, and compliance with applicable securities and other laws:

 

(i) the Performance-Vesting RSU Award will vest in full if, between the first and fourth anniversaries of your Start Date, the Company’s common stock during any consecutive 30-trading day period has a volume weighted average per share trading price equal to at least $30.14 (“Tier I Performance Condition”);

 

(ii) if the Tier I Performance Condition has not been satisfied by the fourth anniversary of your Start Date, then 40% of the Performance-Vesting RSU Award will vest if, at any time during the three-month period ending on the fourth anniversary of your Start Date, the Company’s common stock has a 30 trading day volume weighted average per share trading price equal to at least $26.29 (the “Tier II Performance Condition”); and

 

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(iii) if neither the Tier I Performance Condition nor the Tier II Performance Condition have been satisfied by the fourth anniversary of your Start Date, then 20% of the Performance-Vesting RSU Award will vest if, at any time during the three-month period ending on the fourth anniversary of your Start Date, the Company’s common stock has a 30 trading day volume weighted average per share trading price equal to at least $22.53 (the “Tier III Performance Condition”).

 

Should the Company terminate your employment without Cause (as defined in the Company’s 2015 Equity Plan, provided Cause shall not exist unless and until the Company provides you with a reasonably detailed written explanation as to why the Company believes Cause exists and stating its intent to terminate your employment on a particular date; you are given ten (10) business days from the delivery of the written notice by the Company within which to cure any acts constituting Cause capable of being cured; you are afforded a reasonable opportunity to discuss the issues with the Company’s Board of Directors; and the Board of Directors subsequently votes in favor of termination for Cause), should you end your employment for Good Reason (as defined below) or should your employment terminate as a result of death or Disability (as defined in the Company’s 2015 Equity Plan) (each, a “Qualifying Termination”) prior to the fourth anniversary of your Start Date at a time when the Performance-Vesting RSU Award is unvested, then, conditioned on your executing and not revoking a general release of all claims (except in the case of death), in a form substantially similar to Exhibit C hereto, that becomes effective and irrevocable no later than the 60th day following your “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder), a pro-rated percentage of the Performance-Vesting RSU Award shall remain outstanding and eligible to vest as follows:

 

(x) if a Qualifying Termination occurs prior to the fourth anniversary of your Start Date and prior to satisfaction of the Tier I Performance Condition, then a pro-rated percentage of the Performance-Vesting RSU Award shall remain outstanding and eligible to vest in full if and when the Tier I Performance Condition is satisfied prior to the fourth anniversary of your Start Date, with such pro-rated percentage equal to the number of full months to have elapsed between your Start Date and the date of such Qualifying Termination divided by 48; and

 

(y) if a Qualifying Termination occurs prior to the fourth anniversary of your Start Date and prior to satisfaction of the Tier I Performance Condition, then a pro-rated percentage of the Performance-Vesting RSU Award shall remain outstanding and eligible to vest upon the fourth anniversary of your Start Date at a 20% level (subject to further proration) if the Tier III Performance Condition is satisfied or at a 40% level (subject to further proration) if the Tier II Performance Condition is satisfied, in each case, at any time during the three-month period ending on the fourth anniversary of your Start Date, with such pro-rated percentage equal to the number of full months to have elapsed between your Start Date and the date of such Qualifying Termination divided by 48.

 

(c)  Future Long-Term Incentive Awards.  For calendar year 2016 and subsequent years, you will be eligible to participate in the Company’s long-term incentive plan (“LTIP”),

 

3

 

subject to the terms and conditions of the then current LTIP and on a basis comparable to the other senior executives of the Company.  The target value of your LTIP award for 2016 shall be $1,000,000.  All awards shall be governed by the terms and conditions, the provisions of Paragraph 5(b), and subject to any performance metrics, established by the Compensation Committee for the Company’s then-current LTIP.

 

4.     Benefits.  You will be entitled to participate in all employee benefit plans and programs and executive perquisites and incentives generally available to and on terms no less favorable than similarly situated senior executive employees of the Company, to the extent that you meet the eligibility requirements for each individual plan or program. Your participation in any such plan or program will be subject to the provisions, rules, and regulations of, or applicable to, the plan or program. The Company provides no assurance as to the adoption or continuation of any particular employee benefit plan or program.  In addition, the Company agrees to reimburse you for up to $15,000 in reasonable professional fees for legal advice in connection with your transition to the Company.

 

5.     Termination of Employment Not in Connection with a Change in Control.

 

(a)  Should the Company terminate your employment without Cause (provided Cause shall not exist unless and until the Company provides you with a reasonably detailed written explanation as to why the Company believes Cause exists and stating its intent to terminate your employment on a particular date; you are given ten (10) business days from the delivery of the written notice by the Company within which to cure any acts constituting Cause capable of being cured; you are afforded a reasonable opportunity to discuss the issues with the Company’s Board of Directors; and the Board of Directors subsequently votes in favor of termination for Cause) or you resign for Good Reason (as defined below), and conditioned on your executing and not revoking a general release of all claims in a form substantially similar to Exhibit C, that becomes effective and irrevocable no later than the 60th day following your “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder), the Company will pay you an amount equal to your then-current Base Salary plus your then-current target annual bonus in a single lump sum 6 months following your separation from service or, if earlier, 30 days after the date of your death.

 

For purposes of this letter “Good Reason” means any of the following conditions arising during your term of employment without your consent:

 

(i)  a material diminution in your responsibilities, authority or duties;

 

(ii)  a reduction in your base salary (unless such reduction is part of an across the board uniformly applied reduction affecting all senior executives and does not exceed the average percentage reduction for all such senior executives and such reduction does not exceed 10% in any one year);

 

(iii)  a reduction in your incentive or equity compensation opportunity such that it is materially less favorable to you than those provided generally to all other senior executives;

 

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(iv)  any change in your reporting relationship such that you would not report directly to the Company’s CEO;

 

(v)  any requirement that you relocate your primary residence, provided your primary residence is in the continental United States; or

 

(vi) a material breach of this letter agreement by the Company.

 

Provided, however, that “Good Reason” will not exist unless you have first provided written notice to the Company of the occurrence of one or more of the conditions under clauses (i) through (vi) above within 180 days of the condition’s occurrence, and such condition(s) is (are) not fully remedied by the Company within 30 days after the Company’s receipt of written notice from you.

 

(b)  Upon a Qualifying Termination including your resignation for Good Reason and conditioned on your executing (except in the event of your death) and not revoking a general release of all claims in a form acceptable to the Company (in substantially the same form as Exhibit C hereto), that becomes effective and irrevocable no later than the 60th day following your “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder), other than in connection with a transition to Board service:  (i) your outstanding time-vesting equity awards that would otherwise have vested in the calendar year of your Qualifying Termination (and any performance-vesting equity awards for which the performance metrics have already been satisfied prior to the Qualifying Termination, other than the Performance-Vesting RSU Award) shall vest based on the number of full months that have elapsed since the later of (A) the grant date of the applicable equity award and (B) the most recent vesting date of such equity award divided by 12 and shall be settled at the time such awards otherwise would have settled; and (ii) a pro-rated percentage of your performance-vesting equity awards (other than the Performance-Vesting RSU Award) for which the performance period remains open at the time of the Qualifying Termination shall remain outstanding and eligible to vest if the applicable performance metrics are satisfied for such performance-vesting equity awards by the end of the applicable performance period, with such percentage equal to the number of full months that have elapsed between the grant date of such award and the Qualifying Termination divided by the total number of months in the applicable performance period.  The Compensation Committee shall adjust the pro-ration methodology to reflect the actual vesting periods applicable to each future LTIP award.  Notwithstanding the foregoing, if the provisions of the Plan would provide greater vesting in the event of your termination of employment as a result of death or Disability, then the provisions of the Plan shall control. Further, for equity awards in the form of options or stock appreciation rights, the portion of the award that vests under this Paragraph 5(b) shall be treated as exercisable immediately prior to the termination of employment as a result of death or Disability.  For the avoidance of doubt, in the event that you transition from employment directly to Board service, the vesting of Long Term Incentive Awards shall not be impacted by virtue of the transition alone and Long Term Incentive Awards shall continue to vest during such Board service upon termination of your employment (other than for “Cause” or due to death or “Disability”).

 

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(c) Upon termination of your employment for any reason, you agree to resign, as of the date of such termination as an officer of the Company and any of the Company’s affiliates.

 

6.     Change in Control Plan. So long as the Company maintains the Company’s Change in Control Plan (the “CIC Plan”), you will be eligible to participate in the CIC Plan with a Severance Payment Percentage of 250%, subject to the terms and conditions of the CIC Plan.

 

7.     Confidentiality.  As an employee of the Company, you will have access to certain confidential information of the Company and you may, during the course of your employment, develop certain information or inventions that will be the property of the Company. To protect the interests of the Company, this offer of employment is contingent upon your signing the Company’s standard employee confidentiality agreement. The Company hereby directs you not to bring with you any confidential or proprietary material of any former employer or other entity or to violate any other obligations you may have to any former employer or other entity. You represent that your signing of this offer letter, the agreements concerning equity awards granted to you and the Company’s confidentiality agreement, and your commencement of employment with the Company, will not violate any agreement currently in place between yourself and current or past employers or other entities.

 

8.     Conflict of Interest. Prior to starting employment, you will disclose to the Company in writing any other gainful employment, business or activity that you are currently associated with or participate in that competes, directly or indirectly, with the Company. During the period that you render services to the Company, you agree to not engage in any employment, business or activity that is in any way competitive with the business or proposed business of the Company or that is reasonably likely to materially interfere with the performance of your job duties or create a conflict of interest. You will not assist any other person or organization in competing with the Company or in preparing to engage in competition with the business or proposed business of the Company. You will be responsible to comply with the Company’s Business Code of Conduct and Ethics and any other Company policies regarding conflicts of interest, at all times during employment.

 

9.     Noncompetition and Nonsolicitation.

 

(a)   During the time you are employed and for a period of one year following your termination from employment with the Company for any reason, you will not, without the prior written consent of the Company, directly or indirectly, engage in, whether as an owner, consultant, employee, or otherwise, (i) activities directly competitive with any significant line of business of the Company (including casual footwear) in any state, province or like geography where the Company conducted business during your employment with the Company (the “Territory”) or (ii) form or assist others in forming, be employed by, perform services for, become an officer, director, member or partner of, or participant in, or serve as a consultant or independent contractor to, invest in or own any interest in (whether through equity or debt securities), assist (financially or otherwise) or provide counsel or assistance to any person or entity engaged in business that directly competes with any significant line of business of the Company (including casual footwear) in the Territory.  Notwithstanding anything in this offer letter to the contrary, you may hold, purchase or otherwise acquire up to three percent (3%) in

 

6

 

any class of securities of a company if such securities are traded on a national securities exchange or in the over-the-counter market so long as you hold such securities as a passive investment and do not take an active part in the management or direction of such company and, following the date that is six months after your last day of employment, you may be affiliated with a private equity or other institutional investor and, in such capacity, serve on a board of directors so long as you are not involved in any day-to-day operations of a company that a directly competitive with any significant line of business of the Company (including casual footwear).

 

(b)   During the time you are employed and for a period of two years following your termination from employment with the Company for any reason, you will not without the prior written consent of the Company, directly or indirectly, solicit to hire or hire or attempt to solicit to hire or hire, or take any other steps to cause to be offered employment or other positions or roles, either on a full time, part-time or consulting basis, any person who worked as an employee, consultant or contractor of the Company or its affiliates at any time in the six months preceding the date your employment terminated and with whom you had regular contact during the one-year period preceding the termination of your employment with the Company. The restrictions set forth in this paragraph shall not prohibit any form of general advertising or solicitation that is not directed at a specific person or entity.

 

(c)   During the time you are employed and for a period of one year following your termination from employment with the Company for any reason, you will not, without the prior written consent of the Company, directly or indirectly, (i) solicit, induce, divert, appropriate or accept business of the type in which the Company engaged during your employment on behalf of any other person or entity or (ii) attempt to solicit, induce, divert, appropriate or accept, on behalf of any person or entity, any customer or actively sought prospective customer of the Company with whom you have had contact, whose dealings with the Company have been supervised by you or about whom you have acquired confidential information, in the course of your employment.

 

(d)   You agree that the foregoing restrictions are reasonable, will not preclude you from finding gainful employment, and are necessary to protect the goodwill, confidential information, and other protectable business interests of the Company. You further agree that the Company would suffer irreparable harm and has no adequate remedy of law should you violate these restrictions and agrees that injunctive relief, in addition to any other damages or relief available to the Company, may be appropriate and necessary to protect the Company’s interests.

 

(e)   You acknowledge that the covenants set forth in Paragraphs 7, 8 and 9(a), (b) and (c) impose a reasonable restraint on you in light of the business and activities of the Company. You acknowledge that your expertise is of a special and unique character which gives this expertise a particular value, and that a breach of Paragraphs 7, 8 or 9(a),(b) or (c) above by you could cause serious and potentially irreparable harm to the Company. You therefore acknowledge that a breach of any of the provisions in Paragraphs 7, 8 or 9(a),(b) or (c) above by you cannot be adequately compensated in an action for damages at law, and equitable relief may be necessary to protect the Company from a violation of this letter agreement and from the harm which this letter agreement is intended to prevent. By reason thereof, you acknowledge that the

 

7

 

Company is entitled, in addition to any other remedies it may have under this letter agreement or otherwise, to seek preliminary and permanent injunctive and other equitable relief to prevent or curtail any breach of Paragraphs 7, 8 or 9(a),(b) or (c) of this letter agreement. You acknowledge, however, that no specification in this offer letter of a specific legal or equitable remedy may be construed as a waiver of or prohibition against pursuing other legal or equitable remedies in the event of a breach of this offer letter by you. In the event of a breach or violation by you of any of the provisions of Paragraphs 7, 8 or 9(a),(b), or (c) above, the running of the term shall be tolled with respect to you during the continuance of any actual breach or violation.

 

(f)   In the event that any provision or term of Paragraphs 9(a), (b) or (c) above, or any word, phrase, clause, sentence or other portion thereof (including, without limitation, the geographic and temporal restrictions and provisions contained in this Paragraph 9 is held to be unenforceable or invalid for any reason, such provision or portion thereof will be modified or deleted in such a manner as to be effective for the maximum period of time for which it/they may be enforceable and over the maximum geographical area as to which it/they may be enforceable and to the maximum extent in all other respects as to which it/they may be enforceable. Such modified restriction(s) shall be enforced by the court or adjudicator. In the event that modification is not possible, because each of your obligations in Paragraphs 9(a), (b) or (c) above is a separate and independent covenant, any unenforceable obligation shall be severed and all remaining obligations shall be enforced.

 

10.  Employment Terms. You will devote your full business time, attention and best efforts to the performance of your duties and will not engage in any other business, profession or occupation for compensation or otherwise which would conflict or interfere with the rendition of such services either directly or indirectly, without the prior written consent of the Board; provided, that nothing herein shall preclude you, subject to the prior written approval of the Board, from accepting appointment to or serving on any board of directors or trustees of any charitable organization; and provided, further, that, in each case, and in the aggregate, that such activities do not conflict or interfere with the performance of your duties.  While we look forward to a long and profitable relationship, should you decide to accept our offer, either you or the Company may terminate the employment relationship for any reason at any time, with or without prior notice and with or without Cause, subject to the terms set forth in this offer letter.  In addition, the Company may change your compensation, benefits, duties, assignments, responsibilities, location of your position and any other terms and conditions of your employment at any time to adjust to the changing needs of the Company, subject to the terms of this offer letter. Any statements or representations to the contrary (and any statements contradicting any provision in this offer letter) are ineffective. Further, your participation in any stock incentive or benefit program is not to be regarded as assuring you of continuing employment for any particular period of time. Any modification or change in your at will employment status may only occur by way of a written employment agreement signed by you and the CEO or another duly-authorized member of the Board.

 

11.  [Reserved]

 

8

 

12.  Section 409A.

 

(a) This offer letter (and the payments and benefits provided hereunder) are intended to comply with the requirements of Section 409A or an exemption or exclusion therefrom and, with respect to amounts that are subject to Section 409A, shall in all respects be administered in accordance with Section 409A.  Any payments that qualify for the “short-term deferral” exception, the “involuntary separation” exception or another exception under Section 409A shall be paid under the applicable exception.  Each payment of compensation under this offer letter shall be treated as a separate and distinct payment of compensation for purposes of Section 409A and the right to a series of installment payments under this offer letter shall be treated as a right to a series of separate and distinct payments.  All payments of nonqualified deferred compensation subject to Section 409A to be made upon a termination of employment under this offer letter may only be made upon a “separation from service” under Section 409A.  In no event may you, directly or indirectly, designate the calendar year of any payment under this offer letter.

 

(b) Notwithstanding any other provision of this offer letter to the contrary, if you are considered a “specified employee” for purposes of Section 409A (as determined in accordance with the methodology established by the Company as in effect on your date of termination), any payment that constitutes nonqualified deferred compensation within the meaning of Section 409A that is otherwise due to you under this offer letter during the six (6) month period following your separation from service (as determined in accordance with Section 409A) on account of your separation from service shall be accumulated and paid to the you on the first business day after the date that is six months following your separation from service (the “Delayed Payment Date”).  You shall not be entitled to interest or any other earnings on any cash payments so delayed from the scheduled date of payment to the Delayed Payment Date.  If you die during the postponement period, the amounts and entitlements delayed on account of Section 409A shall be paid to the personal representative of your estate on the first to occur of the Delayed Payment Date or 30 days after the date of your death.

 

(c)  Notwithstanding the foregoing or any other provision in this offer letter to the contrary, in no event shall the Company or any of its subsidiaries or affiliates (or any of their successors) be liable to you or your beneficiaries for any additional tax, interest or penalty that may be imposed on you pursuant to Section 409A or for any damages incurred by you as a result of this offer letter (or the payments or benefits hereunder) failing to comply with, or be exempt from, Section 409A.

 

13.  Successors, Beneficiaries.

 

(a)  The terms of this letter agreement shall automatically be binding on any successor to the Company.

 

(b)  Any payments or benefits owed to you under this letter agreement at your death shall be paid to the beneficiary you designate in a written instrument received by the Company prior to your death, or if there is no such designated beneficiary, then to your surviving spouse, or if none, to your estate.

 

14.  Entire Agreement. This offer letter and the documents referred to herein constitute the entire agreement and understanding of the parties with respect to the subject matter of this offer,

 

9

 

and supersede any and all prior understandings and agreements, whether oral or written, between or among the parties hereto with respect to the specific subject matter hereof.  If and to the extent of any conflict between this letter agreement and another document or agreement between you and the Company, this letter agreement shall govern.  If any term herein is unenforceable in whole or in part, the remainder shall remain enforceable to the extent permitted by law.

 

15.  Governing Law. This offer letter shall be deemed to be made in, and in all respects shall be interpreted, construed, and governed by and in accordance with, the laws of the State of Colorado, irrespective of its choice of law rules.

 

16. Acceptance. This offer will remain open until November 4, 2015.  If you decide to accept our offer, and I hope you will, please sign the enclosed copy of this letter in the space indicated and return it to me. Your signature will acknowledge that you have read and understood and agreed to the terms and conditions of this offer letter and the attached documents, if any.

 

Should you have anything else that you wish to discuss, please do not hesitate to call me. We look forward to the opportunity to welcome you to the Company on a full-time basis and the Company wishes to convey its deep appreciation for your service on the Board.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
CROCS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Daniel P. Hart
    
	
 
    	
By:   Daniel P. Hart
    
	
 
    	
 
    
	
 
    	
Its: Executive Vice President, Chief Legal and   Administrative Officer
    

 

I have read and understood this offer letter and hereby acknowledge, accept and agree to the terms as set forth above and further acknowledge that no other commitments were made to me as part of my employment offer except as specifically set forth herein.

 

 

	
/s/   Carrie Teffner
    	
 
    	
Date   signed:
    	
November 4,   2015
    
	
Carrie   Teffner
    	
 
    	
 
    	
 
    

 

10

 

 

EXHIBIT A

 

Crocs, Inc.
 2015 Equity Incentive Plan

 

Restricted Stock Unit Agreement

 

Name of Participant:

 

Grant ID:

 

	
Number   of Units Covered:
    	
Date   of Grant:  
    
	
 
    	
 
    
	
Vesting   Schedule (Cumulative):
    	
 
    
	
 
    	
 
    
	
Criteria/Date(s) of Vesting
    	
Number of Shares Which Become Vested
    

 

This is a Restricted Stock Unit Agreement (this “Agreement”), effective as of the Date of Grant specified above, between Crocs, Inc., a Delaware corporation (the “Company”), and you, the Participant identified above.

 

RECITALS*

 

A.            The Company maintains the Crocs, Inc. 2015 Equity Incentive Plan (the “2015 Plan”), which is incorporated herein by reference and is made a part of this Agreement as if fully set forth herein.

 

B.            Under the 2015 Plan, the Compensation Committee (the “Committee”) of the Board of Directors administers the 2015 Plan and has the authority to determine the awards to be granted under the 2015 Plan.

 

C.            The Committee has determined that you are eligible to receive an award under the 2015 Plan in the form of restricted stock units.

 

NOW, THEREFORE, the Company hereby grants such an award to you subject to the following terms and conditions:

 

*              Any capitalized term used in this Agreement shall have the meaning set forth in this Agreement (including in the table at the beginning of this Agreement) or, if not defined in this Agreement, set forth in the 2015 Plan as it currently exists or as it is amended in the future.

 

11

 

TERMS AND CONDITIONS

 

1.             Grant of Restricted Stock Units.  You are granted the number of Units  specified in the table at the beginning of this Agreement (the “Award”).

 

2.             Value of Units.  Each Unit represents the right to receive one share of the Company’s common stock (a “Share”), subject to the terms and conditions set forth below.  The value of a Unit is based on the value of an underlying Share.

 

3.             Vesting and Payment.

 

(a)           Generally.  Payment of vested Units subject to this Agreement shall be made by the Company delivering one Share for each vested Unit, subject to the tax withholding provisions of Section 11.

 

(b)           Vesting of Units.  If you have continuously been employed by the Company or an Affiliate or serving on the Board of Directors of a Company or an Affiliate from the Date of Grant, then the Shares will vest as provided in Section 5 below in the numbers and on the dates specified in the Vesting Schedule contained in the table at the beginning of this Agreement.

 

(c)           Payment.  Delivery of Shares in payment of the Units will occur within 30 days after the date of vesting, and in the calendar year of vesting, and you shall have no power to affect the timing of such issuance.  Such issuance will be evidenced by a stock certificate or appropriate entry on the books of the Company or a duly authorized transfer agent of the Company, and shall be in complete satisfaction of such vested Units.  If the Units that vest and become payable include a fractional Unit, the Company shall round the number of vested Units to the nearest whole Unit prior to delivery of Shares as provided herein.  If the ownership of or issuance of Shares to you as provided herein is not feasible due to applicable exchange controls, securities or tax laws or other provisions of applicable law, as determined by the Committee in its sole discretion, you or your Successor shall receive cash proceeds in an amount equal to the Fair Market Value (as of the date vesting occurs) of the Shares otherwise issuable to you, net of any amount required to satisfy withholding tax obligations as provided in Section 11.

 

(d)           Effect of Vesting.  Whenever the Company shall become obligated to make payment in respect of a Unit subject to this Agreement, all of your rights with respect to such Unit, other than the right to such payment, shall terminate and be of no further force or effect and such Unit shall be cancelled.

 

4.             Accrual and Payment of Cash Dividends.  In the event the Company pays cash dividends on its Shares on or after the date of this Agreement, the Company will credit, as of the dividend record date, an amount of cash dividend equivalents to your account.  The amount of the dividend equivalents credited will be determined by multiplying the number of Units credited to your account as of the dividend record date pursuant to this Agreement times the dollar amount of the cash dividend per Share.  Your right to receive such accrued dividend equivalents shall vest, and the amount of the accrued dividend equivalents shall be paid in cash, to the same extent and at the same time as the underlying Units to which the dividend equivalents relate, as

 

12

 

provided in Section 3, 5 or 6 of this Agreement.  Any dividend equivalents accrued on Units that do not vest and are cancelled in accordance with this Agreement shall also be cancelled.

 

5.             Death or Disability; Change in Control.  If your employment with the Company and all of its Affiliates terminates because of death or Disability, the Committee may, in its sole discretion, but shall not be obligated to, provide for the vesting of the Units based on such factors or criteria as the Committee, in its sole discretion, may determine.  In the event of a Change in Control, the Units shall be treated as described in Section 18 of the 2015 Plan unless otherwise provided in a written employment agreement or other arrangement between you and the Company.

 

6.             No Transfer.  The Units may not be transferred, sold, assigned, pledged, alienated, attached or otherwise encumbered prior to the time they vest in accordance with this Agreement, except for a transfer by will or the laws of descent and distribution in the event of your death.  Any prohibited Transfer will be void and unenforceable against the Company.  No attempted Transfer of any Units that is prohibited hereunder, whether voluntary or involuntary, shall vest the purported transferee with any interest or right in or with respect to such Units.

 

7.             No Stockholder Rights Until Payment.  You shall not have any of the rights of a stockholder of the Company in connection with the Award unless and until Shares are issued to you upon payment of the Units.

 

8.             Adjustments for Changes in Capitalization.  The Units shall be subject to adjustments for changes in the Company’s capitalization as provided in Section 17 of the 2015 Plan.

 

9.             Interpretation of this Agreement.  All decisions and interpretations made by the Committee with regard to any question arising under this Agreement or under the 2015 Plan shall be binding and conclusive upon you and the Company.

 

10.          Termination of Employment.  Neither this Agreement nor the Award shall confer on you any right with respect to continued employment with the Company or any of its Affiliates, nor interfere in any way with the right of the Company or any Affiliate to terminate such employment.  Nothing in this Agreement shall be construed as creating an employment contract for any specified term between you and the Company or any Affiliate.

 

11.          Tax Withholding.  As a condition precedent to making a payment hereunder, you shall be required to pay to the Company (or the Affiliate employing you), in accordance with the provisions of Section 15 of the 2015 Plan, an amount equal to the amount of any required domestic or foreign tax withholding obligation, including any social security obligation.  The Company (or the Affiliate employing you) may withhold Shares equal in value to the amount of such tax withholding obligation, or may permit you to arrange for the satisfaction of such tax withholding obligation by payment of the estimated tax obligation to the Company (or the Affiliate employing you).  Payment may be made by electronic transfer, check or authority to withhold from salary.

 

12.          Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the 2015 Plan by electronic means.

 

13

 

You hereby consent to receive such documents by electronic delivery and agree to participate in the 2015 Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

 

13.          Section 409A.  Payments made pursuant to this Agreement are intended to qualify for an exemption or to be compliant with Code Section 409A.  Notwithstanding any other provision in this Agreement and the 2015 Plan, the Company, to the extent it deems necessary or advisable in its sole discretion, reserves the right, but shall not be required, to unilaterally amend or modify this Agreement and/or the 2015 Plan so that the Units granted to you qualify for exemption from or comply with Code Section 409A; provided, however, that the Company makes no representations that the Units shall be exempt from or comply with Section 409A and makes no undertaking to preclude Code Section 409A from applying to the Units.  By accepting the Award, you shall be deemed to have waived any claim against the Company and its affiliates with respect to any such tax, economic and legal consequences.  Also notwithstanding the foregoing, if at the time of a scheduled vesting date, including one provided for under Paragraph 3 of this Agreement, you are a “specified employee” of the Company within the meaning of that term under Section 409A and as determined by the Company, and payment would be treated as a payment made on “separation from service” within the meaning of that term under Code Section 409A, then, if such delayed commencement is otherwise required in order to avoid a prohibited distribution under Code Section 409A, the payment shall be delayed until the date which is six months after the date of such separation from service or if earlier the date of your death.

 

14.          Award Subject to 2015 Plan.  The Award is granted pursuant to the 2015 Plan, the terms of which are hereby made a part of this Agreement.  This Agreement shall in all respects be interpreted in accordance with the terms of the 2015 Plan.  If any terms of this Agreement conflict with the terms of the 2015 Plan, the terms of the 2015 Plan shall control, except as the 2015 Plan specifically provides otherwise.

 

15.          Binding Effect.  This Agreement shall be binding in all respects on your heirs, representatives, successors and assigns.

 

16.          Choice of Law.  This Agreement is entered into under the laws of the State of Delaware and shall be construed and interpreted thereunder (without regard to its conflict-of-law principles).

 

[Remainder of Page Intentionally Left Blank]

 

14

 

You and the Company have executed this Agreement effective as of the date that you accept this grant.

 

	
 
    	
CROCS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Daniel P. Hart
    
	
 
    	
Title:
    	
Executive Vice President and Chief Legal &   Administrative Officer
    

 

15

 

Exhibit B

 

Crocs, Inc.
 2015 Equity Incentive Plan

 

Restricted Stock Unit Agreement

 

	
Name   of Participant:    [            ]
    	
 
    
	
 
    	
 
    
	
Number   of Service-Based Units Covered:    [         ]
    	
Date   of Grant:  [ , 20  ]
    
	
 
    	
 
    
	
Target   Number of Performance-Based
   Units Covered (the “Target Award”):  [          ]
    	
 
    

 

Vesting/Payment Schedule:

 

1.             The Service Based Units will vest in installments in accordance with the schedule set forth in Section 3(b) below.

 

2.             The number of “Performance-Based Units” that the Participant may earn under this Agreement (the “Earned Units”) shall range from 0% to 200% of the Target Award, as determined by the achievement of the performance measure(s) set forth in Section 3(c) below.  The Earned Units will vest in accordance with the schedule set forth in Section 3(c) below.

 

This is a Restricted Stock Unit Agreement (this “Agreement”), effective as of the Date of Grant specified above, between Crocs, Inc., a Delaware corporation (the “Company”), and you, the Participant identified above.

 

RECITALS*

 

A.            The Company maintains the Crocs, Inc. 2015 Equity Incentive Plan (the “2015 Plan”), which is incorporated herein by reference and is made a part of this Agreement as if fully set forth herein.

 

B.            Under the 2015 Plan, the Compensation Committee (the “Committee”) of the Board of Directors administers the 2015 Plan and has the authority to determine the awards to be granted under the 2015 Plan.

 

*      Any capitalized term used in this Agreement shall have the meaning set forth in this Agreement (including in the table at the beginning of this Agreement) or, if not defined in this Agreement, set forth in the 2015 Plan as it currently exists or as it is amended in the future.

 

16

 

C.            The Committee has determined that you are eligible to receive an award under the 2015 Plan in the form of restricted stock units.

 

NOW, THEREFORE, the Company hereby grants such an award to you subject to the following terms and conditions:

 

TERMS AND CONDITIONS

 

1.             Grant of Restricted Stock Units.  You are granted the number of Service-Based Units and the target number of Performance-Based Units (collectively, “Units”) specified in the table at the beginning of this Agreement (the “Award”).

 

2.             Value of Units.  Each Unit represents the right to receive one share of the Company’s common stock (a “Share”), subject to the terms and conditions set forth below.  The value of a Unit is based on the value of an underlying Share.

 

3.             Vesting and Payment.

 

(a)           Generally.  Payment of vested Units subject to this Agreement shall be made by the Company delivering one Share for each vested Unit, subject to the tax withholding provisions of Section 12.

 

(b)           Vesting of Service-Based Units.  Subject to Section 5 below, if you have continuously been employed by the Company or an Affiliate from the Date of Grant, then the Service-Based Units will vest as follows:

 

(i)            The Service-Based Units will vest in three equal installments on March 1, 2016, 2017, and 2018.

 

(c)           Vesting of Performance-Based Units.  Subject to Section 5 below, if you have continuously been employed by the Company or an Affiliate from the Date of Grant, then the Performance-Based Units will become Earned Units and will vest as follows:

 

(i)            Up to a maximum of 200% of the Target Award may become Earned Units based on the achievement of the following three performance measures, weighted as follows:

 

50%:  a one-year Earnings Before Interest and Taxes (“EBIT”) performance target of $[  ] million (the “EBIT Performance Target”) for 2015 (the “Performance Period”) and

 

30%:  a one-year revenue performance target of $[       ] million for the Performance Period (the “Revenue Performance Target”) and

 

20%:  a one-year free cash flow performance target of $[       ] million for the Performance Period (the “FCF Performance Target” and, collectively, with the EBIT and the Revenue Performance Targets, the “Performance Targets”).

 

17

 

(ii)           The Performance-Based Units subject to the EBIT Performance Target will become Earned Units on a pro rata basis ranging from zero for performance below 85% of the EBIT Performance Target, 25% of the Target Award upon achievement of a threshold of 85% of the EBIT Performance Target, 50% of the Target Award upon achievement of 100% of the EBIT Performance Target, 75% of the Target Award upon achievement of 115% of the EBIT Performance Target, and up to a maximum of 100% of the Target Award upon achievement of 122.5% of the EBIT Performance Target.

 

(iii)          The Performance-Based Units subject to the Revenue Performance Target will become Earned Units on a pro rata basis ranging from zero for performance below 85% of the Revenue Performance Target, 15% of the Target Award upon achievement of a threshold of 85% of the Revenue Performance Target, 30% of the Target Award upon achievement of 100% of the Revenue Performance Target, 45% of the Target Award upon achievement of 115% of the Revenue Performance Target, and up to a maximum of 60% of the Target Award upon achievement of 122.5% of the Revenue Performance Target.

 

(iv)          The Performance-Based Units subject to the FCF Performance Target will become Earned Units on a pro rata basis ranging from zero for performance below 80% of the FCF Performance Target, 10% of the Target Award upon achievement of a threshold of 80% of the FCF Performance Target, 20% of the Target Award upon achievement of 100% of the FCF Performance Target, 30% of the Target Award upon achievement of 120% of the FCF Performance Target, and up to a maximum of 40% of the Target Award upon achievement of 130% of the FCF Performance Target.

 

(v)           Upon certification of achievement of the Performance Targets by the Committee, one-third of the Earned Units will vest immediately, one-third of the Earned Units will vest on the first anniversary of the certification date, and one-third of the Earned Units will vest on the second anniversary of the certification date.  Determination of achievement of the Performance Targets will take into account certain factors previously approved by the Committee.

 

(d)           Payment.  Delivery of Shares in payment of the Units will occur within 30 days after the date of vesting, and you shall have no power to affect the timing of such issuance.  Such issuance will be evidenced by a stock certificate or appropriate entry on the books of the Company or a duly authorized transfer agent of the Company, and shall be in complete satisfaction of such vested Units.  If the Units that vest and become payable include a fractional Unit, the Company shall round the number of vested Units to the nearest whole Unit prior to delivery of Shares as provided herein.  If the ownership of or issuance of Shares to you as provided herein is not feasible due to applicable exchange controls, securities or tax laws or other provisions of applicable law, as determined by the Committee in its sole discretion, you or your Successor shall receive cash proceeds in an amount equal to the Fair Market Value (as of the date vesting occurs) of the Shares otherwise issuable to you, net of any amount required to satisfy withholding tax obligations as provided in Section 12.

 

18

 

(e)           Effect of Vesting.  Whenever the Company shall become obligated to make payment in respect of a Unit subject to this Agreement, all of your rights with respect to such Unit, other than the right to such payment, shall terminate and be of no further force or effect and such Unit shall be cancelled.

 

4.             Accrual and Payment of Cash Dividends.  In the event the Company pays cash dividends on its Shares on or after the date of this Agreement, the Company will credit, as of the dividend record date, an amount of cash dividend equivalents to your account.  The amount of the dividend equivalents credited will be determined by multiplying the number of Units credited to your account as of the dividend record date pursuant to this Agreement times the dollar amount of the cash dividend per Share.  Your right to receive such accrued dividend equivalents shall vest, and the amount of the accrued dividend equivalents shall be paid in cash, to the same extent and at the same time as the underlying Units to which the dividend equivalents relate, as provided in Section 3 or 5 of this Agreement.  Any dividend equivalents accrued on Units that that do not vest and are cancelled in accordance with this Agreement shall also be cancelled.

 

5.             Death or Disability.  If your employment with the Company and all of its Affiliates terminates because of death or Disability, the Committee may, in its sole discretion, but shall not be obligated to, provide for the vesting of the Units based on such factors or criteria as the Committee, in its sole discretion, may determine.

 

6.             Change in Control Plan.  In the event of a Change in Control, the Units shall be treated as described in Section 18 of the 2015 Plan unless otherwise provided in the Company’s Change in Control Plan or other written employment agreement or other arrangement between you and the Company.  By accepting the Award, you hereby consent to any future amendment to or termination of the Company’s Change in Control Plan.

 

7.             No Transfer.  The Units may not be transferred, sold, assigned, pledged, alienated, attached or otherwise encumbered prior to the time they vest in accordance with this Agreement, except for a transfer by will or the laws of descent and distribution in the event of your death.  Any prohibited Transfer will be void and unenforceable against the Company.  No attempted Transfer of any Units that is prohibited hereunder, whether voluntary or involuntary, shall vest the purported transferee with any interest or right in or with respect to such Units.

 

8.             No Stockholder Rights Until Payment.  You shall not have any of the rights of a stockholder of the Company in connection with the Award unless and until Shares are issued to you upon payment of the Units.

 

9.             Adjustments for Changes in Capitalization.  The Units shall be subject to adjustments for changes in the Company’s capitalization as provided in Section 17 of the 2015 Plan.

 

10.          Interpretation of This Agreement.  All decisions and interpretations made by the Committee with regard to any question arising under this Agreement or under the 2105 Plan shall be binding and conclusive upon you and the Company.

 

19

 

11.          Termination of Employment.  Neither this Agreement nor the Award shall confer on you any right with respect to continued employment with the Company or any of its Affiliates, nor interfere in any way with the right of the Company or any Affiliate to terminate such employment.  Nothing in this Agreement shall be construed as creating an employment contract for any specified term between you and the Company or any Affiliate.

 

12.          Tax Withholding.  As a condition precedent to making a payment hereunder, you shall be required to pay to the Company (or the Affiliate employing you), in accordance with the provisions of Section 15 of the 2015 Plan, an amount equal to the amount of any required domestic or foreign tax withholding obligation, including any social security obligation.  The Company (or the Affiliate employing you) may withhold Shares equal in value to the amount of such tax withholding obligation, or may permit you to arrange for the satisfaction of such tax withholding obligation by payment of the estimated tax obligation to the Company (or the Affiliate employing you).  Payment may be made by electronic transfer, check or authority to withhold from salary.

 

13.          Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the 2015 Plan by electronic means.  You hereby consent to receive such documents by electronic delivery and agree to participate in the 2015 Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

 

14.          Section 409A.  Payments made pursuant to this Agreement are intended to qualify for an exemption from or to comply with Code Section 409A.  Notwithstanding any other provision in this Agreement and the 2015 Plan, the Company, to the extent it deems necessary or advisable in its sole discretion, reserves the right, but shall not be required, to unilaterally amend or modify this Agreement and/or the 2015 Plan so that the Units granted to you qualify for exemption from or comply with Code Section 409A; provided, however, that the Company makes no representations that the Units shall be exempt from or comply with Section 409A and makes no undertaking to preclude Code Section 409A from applying to the Units.  By accepting this Award, you shall be deemed to have waived any claim against the Company and its affiliates with respect to any such tax, economic and legal consequences.  Also notwithstanding the foregoing, if at the time of a scheduled vesting date, including one provided for under Paragraph 3 of this Agreement, you are a “specified employee” of the Company within the meaning of that term under Section 409A and as determined by the Company, and payment would be treated as a payment made on “separation from service” within the meaning of that term under Code Section 409A, then, if such delayed commencement is otherwise required in order to avoid a prohibited distribution under Code Section 409A, the payment shall be delayed until the date which is six months after the date of such separation from service or if earlier the date of your death.

 

15.          Award Subject to 2015 Plan.  The A is granted pursuant to the 2015 Plan, the terms of which are hereby made a part of this Agreement.  This Agreement shall in all respects be interpreted in accordance with the terms of the 2015 Plan.  If any terms of this Agreement conflict with the terms of the 2015 Plan, the terms of the 2015 Plan shall control, except as the 2015 Plan specifically provides otherwise.

 

20

 

16.          Binding Effect.  This Agreement shall be binding in all respects on your heirs, representatives, successors and assigns.

 

17.          Choice of Law.  This Agreement is entered into under the laws of the State of Delaware and shall be construed and interpreted thereunder (without regard to its conflict-of-law principles).

 

18.          Recovery of Compensation.  All Units awarded under this Agreement are subject to the Executive Compensation Recovery Policy, as in effect from time to time, a current copy of which may be requested from the Company at any time, and the terms and conditions of which are hereby incorporated by reference into this Agreement.  In addition, in accordance with Section 27 of the 2015 Plan, this Option is also subject to (a) Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (regarding recovery of erroneously awarded compensation) and any implementing rules and regulations thereunder, (b) similar rules under the laws of any other jurisdiction, (c) any compensation recovery or clawback policies adopted by the Company to implement any such requirements, and (d) any other compensation recovery policies as may be adopted from time to time by the Company, all to the extent determined by the Committee in its discretion to be applicable to you.

 

[Remainder of Page Intentionally Left Blank]

 

21

 

EXHIBIT C

 

FORM OF CONFIDENTIAL GENERAL RELEASE

 

This Confidential General Release (“Release”) is entered into between Carrie Teffner (hereinafter “Employee”) and Crocs, Inc. (hereinafter the “Company”), hereinafter collectively referred to as the “Parties.”

 

WHEREAS, Employee’s employment with the Company terminated effective as of                                                            ; and

 

WHEREAS, Employee and the Company desire to resolve any claims or disputes Employee may have that exist at the time this Release is executed by the Parties.

 

Therefore, in consideration of all mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it is agreed by and between Employee and the Company as follows:

 

1.             Employee hereby and forever releases the Company and its officers, directors, employees, managers, supervisors, agents, attorneys, insurers, investors, shareholders, administrators, parents, affiliates, divisions, subsidiaries, predecessor and successor corporations, and assigns (the “Releasees”) from, and agrees not to sue concerning, any claim, complaint, charge, duty, obligation or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, disclosed or undisclosed, liquidated or contingent, that Employee may possess against any of the Releasees arising from any omissions, acts or facts that have occurred up until and including the date on which Employee signs this Release including, without limitation:

 

(a)           any and all claims arising out of or relating to Employee’s employment with or separation from the Company;

 

(b)           any and all public policy, contract, tort, or common law claims, including, but not limited to, wrongful discharge of employment, termination in violation of public policy, discrimination, harassment, retaliation, breach of contract (express and implied),  breach of a covenant of good faith and fair dealing (express and implied), breach of fiduciary duty, promissory estoppel, negligent or intentional infliction of emotional distress, negligent or intentional misrepresentation, negligent or intentional interference with contract or prospective economic advantage, unfair business practices, defamation, libel, slander, negligence, personal injury, assault, battery, invasion of privacy, false imprisonment, and conversion;

 

(c)           any and all claims or demands for wages, compensation or other amounts claimed to be due from the Company, including, but not limited to, claims for bonuses, commissions, stock, stock options, or any equity or ownership interest in the company, vacation pay, personal time off, sick pay, fringe benefits, 401K match, expense reimbursements, or any other form of payment;

 

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(d)           any and all claims for violation of federal, state, or local constitution, law, code, ordinance, statute, or other legislative enactment including, but not limited to, the Americans with Disabilities Act, as amended; Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Civil Rights Acts of 1866 and 1871; Sections 1981 through 1988 of Title 42 of the United States Code, as amended; the Age Discrimination in Employment Act; the Equal Pay Act; the Fair Labor Standards Act; the Family and Medical Leave Act; the National Labor Relations Act; the Occupational Safety and Health Act; the Genetic Information Nondiscrimination Act; the Rehabilitation Act; Executive Order 11246; the Worker Adjustment and Retraining Notification Act; Employee Retirement Income Security Act of 1974; the Labor Peace Act; the Lilly Ledbetter Equal Pay Act; the Colorado Anti-Discrimination Act; the Colorado Wage Act; the Colorado Minimum Wage Act and Minimum Wage Order 28, and any similar or comparable state, local or municipal statutes or ordinances;

 

(e)           any and all claims arising out of any other federal, state or local law, rule, regulation or ordinance; and

 

(f)            any and all claims for damages (whether compensatory, punitive, or otherwise), attorneys’ fees and costs.

 

Employee agrees that the release set forth in this Paragraph 1 shall be and remain in effect in all respects as a complete general release as to the matters released.  Employee agrees that in the event Employee brings a claim covered by the foregoing release in which Employee seeks damages or other remedies against the Releasees, this Release shall serve as a complete defense to such claims and in the event any government agency pursues any such claim in Employee’s name or on Employee’s behalf, this Release shall serve as a bar to any monetary recovery by Employee. Employee shall be responsible to the Company for all costs, attorneys’ fees and any and all damages incurred by the Company in defending against a claim brought or pursued by Employee in violation of this Release.

 

Notwithstanding the foregoing, the release set forth in this Paragraph 1 does not (i) preclude Employee from any action to enforce any of the terms of the Employment Agreement or any equity award or related document, (ii) release any rights arising under, or preserved by, the Employment Agreement or any equity award or related document, or (iii) preclude Employee’s ability to assert his rights for indemnification and advancement of expenses from the Company pursuant to the Company’s director and officer liability insurance policies, certificate of incorporation or bylaws, or any indemnification agreement or arrangement between the Company and Employee.

 

2.             Employee affirms that Employee has not filed, caused to be filed, or presently is a party to any claim against the Company.

 

3.             Employee has not assigned any claims or rights released in this Release.

 

4.             Employee agrees and warrants that Employee will not disparage, defame, belittle, ridicule, discredit, denigrate or in any other way harm or damage the reputation of Releasees, their products or services.  Employee further agrees and warrants that Employee will not make,

 

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file, prepare, report, or assist in making, filing preparing or reporting of any disparaging remarks regarding Releasees, via the Internet or any news media.

 

5.             By entering into this Release, the Company does not admit that it engaged in any unlawful or improper conduct, or that it is legally obligated to Employee in any way.

 

6.             The consideration stated herein and in the Release is contractual and not merely a recital.  The Parties hereto execute and deliver this Release after being fully informed of its terms, contents and effects.  The Parties acknowledge that this Release is a negotiated agreement that both Parties have reviewed with their attorneys, that both Parties have had a full opportunity to revise the language of the Release, and that, in the event of a dispute, the Release should not be construed in any way either for or against a party based on whether a particular party was or was not the primary drafter of this Release.

 

7.             This Release shall be effective, binding on the Parties, and in full force and effect immediately following the execution of the Release by both Parties, except for Employee’s release of ADEA claims (if any), which shall be binding and effective as of the expiration of the revocation period addressed below.

 

8.             Employee acknowledges:

 

(a)           By executing this Release, Employee waives all rights or claims, if any, that Employee may have against the Company under the Age Discrimination in Employment Act of 1967, 29 U.S.C. § 626, et seq. (“ADEA”);

 

(b)           That this Release has been written in a manner calculated to be understood by Employee, and is in fact understood by Employee;

 

(c)           That the aforementioned waiver reflects specifically, but is not limited to, all rights or claims, if any, that Employee may have against the Company arising under the ADEA;

 

(d)           That Employee is not waiving rights and claims that Employee may have under the ADEA against the Company that may arise after the date on which this Release is executed;

 

(e)           That Employee is waiving rights and claims that Employee may have under the ADEA, if any, only in exchange for consideration in addition to anything of value to which Employee is already entitled;

 

(f)            That Employee is advised and has had the opportunity to consult with an attorney of Employee’s choice prior to executing this Release;

 

(g)           That Employee has been given a period of 21 days from the date on which Employee receives this Release, not counting the day upon which Employee receives the Release, within which to consider whether to sign this Release;

 

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(h)           That if Employee wishes to execute this Release prior to the expiration of the 21-day period set forth in subsection (g) of this Paragraph 8, Employee may do so;

 

(i)            That Employee has been given a period of 7 days following the execution of this Release to revoke Employee’s waiver of all claims, if any, under the ADEA, and Employee’s release of any claims under the ADEA shall not become effective or enforceable until the revocation period has expired without Employee revoking Employee’s waiver of all claims under the ADEA; and

 

(j)            To revoke Employee’s waiver of all claims under the ADEA, Employee understands that Employee must deliver a written,  signed statement that Employee revokes Employee’s waiver of all claims under the ADEA to the Company by hand or by mail within the 7 day revocation period.  The revocation must be postmarked within the period stated above and properly addressed to the Company at the following address:

 

Crocs, Inc.

7477 East Dry Creek Parkway

Niwot, CO 80503

Attention:  General Counsel

 

(k)           That this Release becomes null and void and of no further effect if Employee has not executed and returned this Release within twenty-one (21) days after the date on which Employee receives this Release.

 

(l)            Employee agrees that any modifications, material or otherwise, made to this Release, do not restart or affect in any manner the original up to twenty-one (21) calendar day consideration period.

 

9.             This Release may be executed in counterparts and shall be fully enforceable in all regards if executed in such manner as if it had been executed as a single document. Signatures obtained by facsimile shall constitute effective execution of this Release.

 

10.          Employee and the Company agree that all the terms of this Release are contained in this document, that no statements or inducements have been made contrary to or in addition to the statements herein, that the terms hereof are binding on and enforceable for the benefit of Employee’s successors and assigns, that the Release shall be governed by Colorado law, and that the provisions of this Release are severable, so that if any paragraph of this Release is determined to be unenforceable, the other paragraphs shall remain valid and fully enforceable.

 

	
Accepted   and agreed as of this    day

of                 ,   201  .
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
CROCS, INC.
    	
 
    

 

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By:
    	
 
    	
 
    
	
Name:
    	
 
    
	
Its:
    	
 
    

 

26

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