Document:

Exhibit 10.4

 

CORRECTION, AMENDMENT AND RATIFICATION OF LONG-TERM OVERRIDING ROYALTY INTEREST CONVEYANCE (KANSAS) (DEVELOPMENT)

 

This CORRECTION, AMENDMENT AND RATIFICATION OF LONG-TERM OVERRIDING ROYALTY INTEREST CONVEYANCE (KANSAS) (DEVELOPMENT) (this “Amendment”), dated effective January 1, 2012 (the “Effective Date”), is by and among SandRidge Energy, Inc., a Delaware corporation, with offices at 123 Robert S. Kerr Avenue, Oklahoma City, OK 73102-6406 (“SandRidge Parent”), SandRidge Exploration and Production, LLC, a Delaware limited liability company, with offices at 123 Robert S. Kerr Avenue, Oklahoma City, OK 73102-6406 (“Assignor”), and SandRidge Mississippian Trust II, a statutory trust formed under the laws of the State of Delaware with offices at c/o The Bank of New York Mellon Trust Company, N.A. 919 Congress Avenue, Suite 500, Austin, Texas 78701 (the “Trust”).  SandRidge Parent, Assignor and the Trust are sometimes referred to herein individually as a “Party” and collectively as “Parties”.  Capitalized terms not defined herein shall have the meaning assigned to them in the Development Conveyance (as hereinafter defined).

 

RECITALS:

 

WHEREAS, Assignor and the Trust entered into that certain Long-Term Overriding Royalty Interest Conveyance (Kansas) (Development), dated as of the Effective Date, filed in the records of the County Clerks of Comanche and Harper Counties, Kansas as described in Exhibit B hereto (the “Development Conveyance”), pursuant to which Assignor assigned to the Trust an overriding royalty interest in and to certain lands and leases more particularly described therein; and

 

WHEREAS, simultaneously with the execution and delivery of the Development Conveyance, Assignor and the Trust entered into that certain Perpetual Overriding Royalty Interest Conveyance (Kansas) (PDP), dated as of the Effective Date, filed in the records of the County Clerks of Comanche and Harper Counties, Kansas as described in Exhibit C hereto (the “PDP Conveyance”), pursuant to which Assignor assigned to the Trust an overriding royalty interest in and to certain lands and leases more particularly described therein; and

 

WHEREAS, SandRidge Parent, Assignor and the Trust are parties to that certain Development Agreement, dated effective January 1, 2012, (the “Development Agreement”); and

 

WHEREAS, the Development Agreement created an area of mutual interest that included properties located in Comanche and Harper Counties, Kansas (the “AMI”); and

 

WHEREAS, it was the intent and agreement of SandRidge Parent, Assignor and the Trust that the leases described in Exhibit A to the Development Conveyance would include all the oil and gas leases described in Exhibit A to the PDP Conveyance (the “Additional Leases”) in addition to the oil and gas leasehold interests described in

 

 

Exhibit A to the Development Conveyance, as originally executed and delivered and as subsequently amended from time to time; and

 

WHEREAS, in reliance on the Parties’ intent and agreement that all the oil and gas leases described in Exhibit A to the PDP Conveyance would also be subject to the Development Conveyance, the Trust paid consideration to Assignor and SandRidge Parent and Assignor (collectively “SandRidge”) undertook the performance of the obligations under the Development Agreement, including the obligation to drill “Development Wells” (as defined in the Development Agreement) on lands SandRidge believed to be subject to the Development Conveyance (including lands subject to the Additional Leases), and Assignor has paid to the Trust the overriding royalty due to the Trust under the Development Conveyance on production attributable to the Development Wells drilled by SandRidge, whether located on leases subject to the Development Conveyance as originally executed and delivered, and as subsequently amended from time to time, or on lands subject to the Additional Leases; and

 

WHEREAS, SandRidge represented periodically to the Trust that the wells Assignor drilled and reported to the Trust as “Development Wells” were in fact “Development Wells” as defined in the Development Agreement; and

 

WHEREAS, SandRidge recently determined that, through a clerical error, it failed to include the Additional Leases in Exhibit A to the Development Conveyance; and

 

WHEREAS, the Parties agree that the failure to include the Additional Leases in Exhibit A to the Development Conveyance at the time of execution of the Development Agreement and the Conveyances, and payment by the Trust of the agreed upon consideration for the overriding royalty assigned by the Conveyances, was a mutual mistake and contrary to the intent and agreement of the Parties and, pursuant to (a) Section 10.02(a) of the Amended and Restated Trust Agreement of SandRidge Mississippian Trust II entered into effective as of the 23rd day of April, 2012, by and among SandRidge Energy, Inc., as trustor, The Corporation Trust Company, as Delaware Trustee and The Bank of New York Mellon Trust Company, N.A., as Trustee, and (b) Section 4.06 of the Development Agreement, now desire to correct their mutual mistake by amending and correcting the Development Conveyance to include the Additional Leases, to reflect the original intent and agreement of the Parties; and

 

WHEREAS, the Parties agree that failure to amend and correct the Development Conveyance would prejudice the Trust and unjustly enrich SandRidge.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the Parties agree as follows:

 

1.             The Recitals set forth in this Agreement are true and correct.

 

2.             Exhibit A attached to and made part of the Development Conveyance is hereby amended to include the leases listed in Exhibit A attached hereto and made part of this Amendment.

 

2

 

3.             Any wells drilled by, or on behalf of, SandRidge on or after the Effective Date and prior to March 29, 2015, and located on the lands covered by the leases listed in Exhibit A attached to this Amendment, or any lands pooled or unitized therewith, shall continue to be considered Development Wells, as that term is defined in the Development Agreement, consistent with SandRidge’s reporting to the Trust at all times since the formation of the Trust.

 

4.             The Parties hereby adopt, ratify, and confirm the Development Conveyance as amended by this Amendment, and, as so amended, Assignor does hereby BARGAIN, SELL, GRANT, CONVEY, TRANSFER, ASSIGN, SET OVER, and DELIVER unto the Trust, the Royalty Interest (as such term is defined in the Development Conveyance) to the same extent, and under the same terms and conditions and subject to the same limitations, as if the leases described on Exhibit A hereto had originally been described on Exhibit A to the Development Conveyance.

 

5.             Assignor hereby reaffirms all covenants, representations and warranties made in the Development Conveyance as such may be amended and supplemented as a result of this Amendment, and hereby represents and warrants that the representations and warranties set forth therein, as such may be amended and supplemented as a result of this Amendment, including without limitation, Section 1.05 of the Development Conveyance, are true and correct in all material respects on and as of the date hereof, before and after giving effect to this Amendment, as though made on and as of the date hereof, except to the extent that any such representation or warranty expressly relates solely to an earlier date, in which case it shall have been true and correct in all material respects as of such earlier date.

 

6.             Assignor and the Trust hereby acknowledge and agree that except as specifically amended, changed or modified hereby, or pursuant to any prior written amendments thereto, the Development Conveyance shall remain in full force and effect in accordance with its terms.

 

7.             This Amendment may be executed in any number of counterparts, and it shall not be necessary that the signatures of all Parties hereto be contained on any one counterpart hereof.  Every counterpart of this Amendment shall be deemed to be an original for all purposes, and all such counterparts together shall constitute one and the same instrument.  As between the Parties, any signature hereto delivered by a Party by facsimile transmission or email pdf shall be deemed an original hereto.

 

8.             It is expressly understood and agreed by the Parties that (i) this Amendment is executed and delivered by The Bank of New York Mellon Trust Company, N.A. (the “Trustee”), not individually or personally, but solely as trustee to the Trust in the exercise of the powers and authority conferred and vested in it and (ii) under no circumstances shall the Trustee be personally liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Trust under this Amendment.

 

[SIGNATURES BEGIN NEXT PAGE]

 

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IN WITNESS WHEREOF, the Parties have each caused this Amendment to be executed in its name and behalf and delivered on the date or dates stated in the acknowledgment certificates appended to this Amendment, to be effective as of the Effective Date.

 

 

	
 
    	
SANDRIDGE   ENERGY, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Philip T. Warman
    
	
 
    	
Name:   
    	
Philip   T. Warman
    
	
 
    	
Title:   
    	
Senior   Vice President and General Counsel
    
	
 
    	
 
    
	
 
    	
 
    
	
THE   STATE OF OKLAHOMA
    	
           §
    
	
 
    	
           §
    
	
COUNTY   OF OKLAHOMA
    	
           §
    

 

This instrument was acknowledged before me on the 7th day of May, 2015, by Philip T. Warman, as Senior Vice President of SandRidge Energy, Inc., a Delaware corporation, on behalf of such corporation.

 

	
 
    	
/s/ Linda Carlisle
    
	
 
    	
Notary Public
    

 

My Commission Expires:  01-04-17

 

Seal (If any):

 

4

 

	
 
    	
SANDRIDGE   EXPLORATION AND
    
	
 
    	
PRODUCTION,   LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Philip T. Warman
    
	
 
    	
Name:   
    	
Philip   T. Warman
    
	
 
    	
Title:   
    	
Senior   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
THE   STATE OF OKLAHOMA
    	
           §
    
	
 
    	
           §
    
	
COUNTY   OF OKLAHOMA
    	
           §
    

 

This instrument was acknowledged before me on the  7th  day of May, 2015, by Philip T. Warman, as Senior Vice President of SandRidge Exploration and Production, LLC, a Delaware limited liability company, on behalf of such limited liability company.

 

	
 
    	
/s/ Linda Carlisle
    
	
 
    	
Notary Public
    

 

My Commission Expires: 01-04-17

 

Seal (If any):

 

5

 

	
 
    	
SANDRIDGE   MISSISSIPPIAN TRUST II
    
	
 
    	
 
    
	
 
    	
By:
    	
The   Bank of New York Mellon Trust
    
	
 
    	
 
    	
Company,   N.A., as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/   Michael J. Ulrich
    
	
 
    	
 
    	
Name:   
    	
Michael   J. Ulrich
    
	
 
    	
 
    	
Title:   
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
THE STATE OF TEXAS
    	
§
    
	
 
    	
§
    
	
COUNTY OF TRAVIS
    	
§
    

 

This instrument was acknowledged before me on the 8th day of May, 2015, by Michael J. Ulrich, as Vice President of The Bank of New York Mellon Trust Company, N.A., a national banking association organized under the laws of the United States of America, as Trustee of SandRidge Mississippian Trust II, a Delaware statutory trust, on behalf of said national banking association and said trust.

 

	
 
    	
/s/ Tina Lea Engravallo
    
	
 
    	
Notary Public
    

 

My Commission Expires: 7-18-2016

 

Seal (If any):

 

6

 

EXHIBIT A

 

(Additional Leases)

 

[Intentionally omitted]

 

 

EXHIBIT B

 

(Recording Information —Development Conveyance)

 

	
COUNTY
    	
 
    	
RECORDING INFORMATION
    
	
Comanche
    	
 
    	
Recorded April 26, 2012 in Book 121,   Page 1081
    
	
Harper
    	
 
    	
Recorded April 26, 2012 in Book G93,   Page 647
    

 

 

EXHIBIT C

 

(Recording Information —PDP Conveyance)

 

	
COUNTY
    	
 
    	
RECORDING INFORMATION
    
	
Comanche
    	
 
    	
Recorded April 26, 2012 in Book 121,   Page 1043
    
	
Harper
    	
 
    	
Recorded April 26, 2012 in Book G93,   Page 646EX-4.6

 Exhibit 4.6 

ZYNGA INC. 

2011 EMPLOYEE STOCK PURCHASE PLAN 

ADOPTED BY THE BOARD OF DIRECTORS:
SEPTEMBER 14, 2011 
 APPROVED BY THE STOCKHOLDERS:
NOVEMBER 28, 2011 
 AMENDED AUGUST 15, 2012 

 

	1.	GENERAL; PURPOSE. 

 (a) The Plan provides a means by
which Eligible Employees of the Company and certain Designated Companies may be given an opportunity to purchase shares of Common Stock. The Plan permits the Company to grant a series of Purchase Rights to Eligible Employees. 

(b) The Company, by means of the Plan, seeks to retain the services of such Employees, to secure and retain the services of new
Employees and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Related Corporations. 

(c) This Plan includes two components: a 423 Component and a Non-423 Component. It is the intention of the Company to have the 423
Component qualify as an Employee Stock Purchase Plan. The provisions of the 423 Component, accordingly, shall be construed in a manner that is consistent with the requirements of Section 423 of the Code. In addition, this Plan authorizes the
grant of Purchase Rights under the Non-423 Component that does not meet the requirements of an Employee Stock Purchase Plan because of deviations necessary to permit participation in the Plan by Employees who are foreign nationals or employed
outside of the United States while complying with applicable foreign laws; such Purchase Rights shall be granted pursuant to rules, procedures or subplans adopted by the Board designed to achieve these objectives for Eligible Employees and the
Company and its Related Corporations. Except as otherwise provided herein or determined by the Board, the Non-423 Component will operate and be administered in the same manner as the 423 Component. 

(d) If a Participant transfers employment from the Company or any Designated 423 Corporation participating in the 423 Component to a
Designated Non-423 Corporation participating in the Non-423 Component, he or she shall immediately cease to participate in the 423 Component; however, any Contributions made for the Purchase Period in which such transfer occurs shall be transferred
to the Non-423 Component, and such Participant shall immediately join the then current Offering under the Non-423 Component upon the same terms and conditions in effect for his or her participation in the Plan, except for such modifications as may
be required by applicable law. A Participant who transfers employment from a Designated Non-423 Corporation participating in the Non-423 Component to the Company or any Designated 423 Corporation participating in the 423 Component shall remain a
Participant in the Non-423 Component until the earlier of (i) the end of the current Offering Period under the Non-423 Component, or (ii) the Offering Date of the first Offering in which he or she participates

  
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following such transfer. If a Participant transfers employment to either a Related Corporation or an Affiliate that is not a Designated Company, he or she shall immediately cease to participate
in the on-going Offering and his or her accumulated, unused Contributions will be returned as soon as possible. 
  

	2.	ADMINISTRATION. 

 (a) The Board will administer the Plan unless and
until the Board delegates administration of the Plan to a Committee or Committees, as provided in Section 2(c). 
 (b) The Board
will have the power, subject to, and within the limitations of, the express provisions of the Plan: 
 (i) To determine how and when
Purchase Rights will be granted and the provisions of each Offering (which need not be identical), including which Designated 423 Corporations and Designated Non-423 Corporations shall participate in the 423 Component or the Non-423 Component. 

(ii) To designate from time to time which Related Corporations of the Company will be eligible to participate in the Plan as Designated
423 Corporations and Designated Non-423 Corporations and which Affiliates will be eligible to participate in the Plan as Designated Non-423 Corporations. 

(iii) To construe and interpret the Plan and Purchase Rights, and to establish, amend and revoke rules and regulations for its
administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan, in a manner and to the extent it deems necessary or expedient to make the Plan fully effective. 

(iv) To settle all controversies regarding the Plan and Purchase Rights granted under the Plan. 

(v) To suspend or terminate the Plan at any time as provided in Section 12. 

(vi) To amend the Plan at any time as provided in Section 12. 

(vii) Generally, to exercise such powers and to perform such acts as it deems necessary or expedient to promote the best interests of
the Company and its Related Corporations and to carry out the intent that the 423 Component be treated as an Employee Stock Purchase Plan. 

(viii) To adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Employees who are
foreign nationals or employed outside the United States. Without limiting the generality of, but consistent with, the foregoing, the Board specifically is authorized to adopt rules, procedures and subplans, which, for purposes of the Non-423
Component, may be outside the scope of Section 423 of the Code, regarding, without limitation, eligibility to participate in the Plan, handling and making of Contributions, 

  
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establishment of bank or trust accounts to hold Contributions, payment of interest, conversion of local currency, obligations to pay payroll tax, determination of beneficiary designation
requirements, withholding procedures and handling of share issuances, which may vary according to local requirements. 
 (c) The
Board may delegate some or all of the administration of the Plan to a Committee or Committees. If administration is delegated to a Committee, the Committee will have, in connection with the administration of the Plan, the powers theretofore
possessed by the Board that have been delegated to the Committee, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board will thereafter be
to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may retain the authority to concurrently administer the Plan with
the Committee and may, at any time, revest in the Board some or all of the powers previously delegated. Whether or not the Board has delegated administration of the Plan to a Committee, the Board will have the final power to determine all questions
of policy and expediency that may arise in the administration of the Plan. 
 (d) All determinations, interpretations and
constructions made by the Board in good faith will not be subject to review by any person and will be final, binding and conclusive on all persons. 
  

	3.	SHARES OF COMMON STOCK SUBJECT TO THE PLAN. 

(a) Subject to the provisions of Section 11(a) relating to Capitalization Adjustments, the maximum number of shares of Common Stock
that may be issued under the Plan will not exceed 8,500,000 shares of Common Stock, plus the number of shares that are automatically added on January 1st of each year for a period of up to ten years, commencing on the first January 1
following the IPO Date and ending on (and including) January 1, 2021, in an amount equal to the lesser of (i) 2% of the total number of shares of Capital Stock outstanding on December 31st of the preceding calendar year, and
(ii) 25,000,000 shares of Common Stock. Notwithstanding the foregoing, the Board may act prior to the first day of any calendar year to provide that there will be no January 1st increase in the share reserve for such calendar year or that
the increase in the share reserve for such calendar year will be a lesser number of shares of Common Stock than would otherwise occur pursuant to the preceding sentence. 

(b) If any Purchase Right granted under the Plan terminates without having been exercised in full, the shares of Common Stock not
purchased under such Purchase Right will again become available for issuance under the Plan. 
 (c) The stock purchasable under the
Plan will be shares of authorized but unissued or reacquired Common Stock, including shares repurchased by the Company on the open market. 
  

	4.	GRANT OF PURCHASE RIGHTS; OFFERING. 

(a) The Board may from time to time grant or provide for the grant of Purchase Rights to Eligible Employees under an Offering on
Offering Dates selected by the Board. Each Offering will be in such form and will contain such terms and conditions as the Board will deem 

  
 3 

 
appropriate, and with respect to the 423 Component will comply with the requirement of Section 423(b)(5) of the Code that all Employees granted Purchase Rights will have the same rights and
privileges. The provisions of separate Offerings need not be identical, but each Offering will include (through incorporation of the provisions of this Plan by reference in the document comprising the Offering or otherwise) the period during which
the Offering will be effective, which period will not exceed 27 months beginning with the Offering Date, and the substance of the provisions contained in Sections 5 through 8, inclusive. 

(b) If a Participant has more than one Purchase Right outstanding under the Plan, unless he or she otherwise indicates in forms
delivered to the Company: (i) each form will apply to all of his or her Purchase Rights under the Plan, and (ii) a Purchase Right with a lower exercise price (or an earlier-granted Purchase Right, if different Purchase Rights have
identical exercise prices) will be exercised to the fullest possible extent before a Purchase Right with a higher exercise price (or a later-granted Purchase Right if different Purchase Rights have identical exercise prices) will be exercised. 

(c) The Board will have the discretion to structure an Offering so that if the Fair Market Value of the shares of Common Stock on the
first Trading Day of a new Purchase Period within that Offering is less than or equal to the Fair Market Value of the shares of Common Stock on the Offering Date, then (i) that Offering will terminate immediately as of that first Trading Day,
and (ii) the Participants in such terminated Offering will be automatically enrolled in a new Offering beginning on the first Trading Day of such new Purchase Period. 
  

	5.	ELIGIBILITY. 

 (a) Purchase Rights may be granted only to Employees
of the Company or, as the Board may designate in accordance with Section 2(b), to Employees of a Related Corporation or an Affiliate. Except as provided in Section 5(b), an Employee will not be eligible to be granted Purchase Rights
unless, on the Offering Date, the Employee has been in the employ of the Company, a Related Corporation or an Affiliate, as the case may be, for such continuous period preceding such Offering Date as the Board may require, but in no event will the
required period of continuous employment be equal to or greater than two years. In addition, the Board may (unless prohibited by law) provide that no Employee will be eligible to be granted Purchase Rights under the Plan unless, on the Offering
Date, such Employee’s customary employment with the Company, the Related Corporation or the Affiliate is more than 20 hours per week and more than five months per calendar year or such other criteria as the Board may determine consistent with
Section 423 of the Code. 
 (b) The Board may provide that each person who, during the course of an Offering, first becomes an
Eligible Employee shall, on or after the day on which such person becomes an Eligible Employee, receive a Purchase Right under that Offering, which Purchase Right will thereafter be deemed to be a part of that Offering. Such Purchase Right will have
the same characteristics as any Purchase Rights originally granted under that Offering, as described herein, except that: 
 (i) the
date on which such Purchase Right is granted will be the “Offering Date” of such Purchase Right for all purposes, including determination of the exercise price of such Purchase Right; 

  
 4 

 (ii) the period of the Offering with respect to such Purchase Right will begin on its
Offering Date and end coincident with the end of the original Offering; and 
 (iii) the Board may provide that if such person first
becomes an Eligible Employee within a specified period of time before the end of the Offering, he or she will not receive any Purchase Right under that Offering. 

(c) No Employee will be eligible for the grant of any Purchase Rights if, immediately after any such Purchase Rights are granted, such
Employee owns stock possessing five percent or more of the total combined voting power or value of all classes of stock of the Company or of any Related Corporation (unless otherwise required by law). For purposes of this Section 5(c), the
rules of Section 424(d) of the Code will apply in determining the stock ownership of any Employee, and stock which such Employee may purchase under all outstanding Purchase Rights and options will be treated as stock owned by such Employee.

 (d) As specified by Section 423(b)(8) of the Code, an Eligible Employee may be granted Purchase Rights only if such Purchase
Rights, together with any other rights granted under all Employee Stock Purchase Plans of the Company and any Related Corporations, do not permit such Eligible Employee’s rights to purchase stock of the Company or any Related Corporation to
accrue at a rate which exceeds $25,000 of Fair Market Value of such stock (determined at the time such rights are granted, and which, with respect to the Plan, will be determined as of their respective Offering Dates) for each calendar year in which
such rights are outstanding at any time. 
 (e) Officers of the Company and any Designated Company, if they are otherwise Eligible
Employees, will be eligible to participate in Offerings under the Plan. Notwithstanding the foregoing, the Board may (unless prohibited by law) provide in an Offering that Employees who are highly compensated Employees within the meaning of
Section 423(b)(4)(D) of the Code will not be eligible to participate. 
  

	6.	PURCHASE RIGHTS; PURCHASE PRICE. 

(a) On each Offering Date, each Eligible Employee will be granted a Purchase Right under the applicable Offering to purchase up to that
number of shares of Common Stock purchasable either with a percentage or with a maximum dollar amount, as designated by the Board but in either case not exceeding 15%, of such Employee’s earnings (as defined by the Board in each Offering)
during the period that begins on the Offering Date (or such other date as the Board determines for a particular Offering) and ends on the date stated in the Offering, which date will be no later than the end of the Offering. 

(b) The Board will establish one or more Purchase Dates during an Offering on which Purchase Rights granted for that Offering will be
exercised and shares of Common Stock will be purchased in accordance with such Offering. 

  
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 (c) In connection with each Offering made under the Plan, the Board may specify (i) a
maximum number of shares of Common Stock that may be purchased by any Participant on any Purchase Date during such Offering, (ii) a maximum aggregate number of shares of Common Stock that may be purchased by all Participants pursuant to such
Offering and/or (iii) a maximum aggregate number of shares of Common Stock that may be purchased by all Participants on any Purchase Date under the Offering. If the aggregate purchase of shares of Common Stock issuable upon exercise of Purchase
Rights granted under the Offering would exceed any such maximum aggregate number, then, in the absence of any Board action otherwise, a pro rata (based on each Participant’s accumulated Contributions) allocation of the shares of Common Stock
available will be made in as nearly a uniform manner as will be practicable and equitable. 
 (d) The purchase price of shares of
Common Stock acquired pursuant to Purchase Rights will be not less than the lesser of: 
 (i) an amount equal to (85%) of the
Fair Market Value of the shares of Common Stock on the Offering Date; or 
 (ii) an amount equal to (85%) of the Fair Market
Value of the shares of Common Stock on the applicable Purchase Date. 
  

	7.	PARTICIPATION; WITHDRAWAL; TERMINATION. 

(a) An Eligible Employee may elect to authorize payroll deductions as the means of making Contributions by completing and delivering to
the Company, within the time specified in the Offering, an enrollment form provided by the Company. The enrollment form will specify the amount of Contributions not to exceed the maximum amount specified by the Board. Each Participant’s
Contributions will be credited to a bookkeeping account for such Participant under the Plan and will be deposited with the general funds of the Company except where applicable law requires that Contributions be deposited with a third party. If
permitted in the Offering, a Participant may begin such Contributions with the first payroll occurring on or after the Offering Date (or, in the case of a payroll date that occurs after the end of the prior Offering but before the Offering Date of
the next new Offering, Contributions from such payroll will be included in the new Offering). If permitted in the Offering, a Participant may thereafter reduce (including to zero) or increase his or her Contributions. If required under applicable
law or if specifically provided in the Offering, in addition to or instead of making Contributions by payroll deductions, a Participant may make Contributions through the payment by cash or check prior to a Purchase Date. 

(b) During an Offering, a Participant may cease making Contributions and withdraw from the Offering by delivering to the Company a
withdrawal form provided by the Company. The Company may impose a deadline before a Purchase Date for withdrawing. Upon such withdrawal, such Participant’s Purchase Right in that Offering will immediately terminate and the Company will
distribute to such Participant all of his or her accumulated but unused Contributions. A Participant’s withdrawal from that Offering will have no effect upon his or her eligibility to participate in any other Offerings under the Plan, but the
Participant will be required to deliver a new enrollment form to participate in future Offerings. 

  
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 (c) Unless otherwise required by applicable law, Purchase Rights granted pursuant to any
Offering under the Plan will terminate immediately if the Participant either (i) is no longer an Employee of a Designated Company for any reason or for no reason or (ii) is otherwise no longer eligible to participate. The Company will
distribute to such individual all of his or her accumulated but unused Contributions. 
 (d) During a Participant’s lifetime,
Purchase Rights will be exercisable only by such Participant. Purchase Rights are not transferable by a Participant, except by will, by the laws of descent and distribution, or, if permitted by the Company, by a beneficiary designation as described
in Section 10. 
 (e) The Company has no obligation to pay interest on Contributions, unless otherwise required by applicable
law. 
  

	8.	EXERCISE OF PURCHASE RIGHTS. 

(a) On each Purchase Date, each Participant’s accumulated Contributions will be applied to the purchase of shares of Common Stock,
up to the maximum number of shares of Common Stock permitted by the Plan and the applicable Offering, at the purchase price specified in the Offering. No fractional shares will be issued unless specifically provided for in the Offering. 

(b) If any amount of accumulated Contributions remains in a Participant’s account after the purchase of shares of Common Stock on
the final Purchase Date of an Offering and such remaining amount is less than the amount required to purchase one share of Common Stock, then such remaining amount will be held in such Participant’s account for the purchase of shares of Common
Stock under the next Offering under the Plan, unless such Participant withdraws from or is not eligible to participate in such Offering, in which case such amount will be distributed to such Participant after the final Purchase Date, without
interest (unless otherwise required by applicable law). If the amount of Contributions remaining in a Participant’s account after the purchase of shares of Common Stock on the final Purchase Date of an Offering is at least equal to the amount
required to purchase one whole share of Common Stock, then such remaining amount will not roll over to the next Offering and will instead be distributed in full to such Participant after the final Purchase Date, without interest (unless otherwise
required by applicable law). 
 (c) No Purchase Rights may be exercised to any extent unless the shares of Common Stock to be issued
upon such exercise under the Plan are covered by an effective registration statement pursuant to the Securities Act and the Plan is in material compliance with all applicable laws. If on a Purchase Date the shares of Common Stock are not so
registered or the Plan is not in such compliance, no Purchase Rights will be exercised on such Purchase Date, and the Purchase Date will be delayed until the shares of Common Stock are subject to such an effective registration statement and the Plan
is in material compliance, except that the Purchase Date will in no event be more than 27 months from the Offering Date. If, on the Purchase Date, as delayed to the maximum extent permissible, the shares of Common Stock are not registered and the
Plan is not in material compliance with all applicable laws, no Purchase Rights will be exercised and all accumulated but unused Contributions will be distributed to the Participants without interest. 

  
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	9.	COVENANTS OF THE COMPANY. 

The Company will seek to obtain from each federal, state, foreign or other regulatory commission or agency having jurisdiction over the Plan
such authority as may be required to grant Purchase Rights and issue and sell shares of Common Stock thereunder. If, after commercially reasonable efforts, the Company is unable to obtain the authority that counsel for the Company deems necessary
for the grant of Purchase Rights or the lawful issuance and sale of Common Stock under the Plan, and at a commercially reasonable cost, the Company will be relieved from any liability for failure to grant Purchase Rights and/or to issue and sell
Common Stock upon exercise of such Purchase Rights. 
  

	10.	DESIGNATION OF BENEFICIARY. 

 (a) The
Company may, but is not obligated to, permit a Participant to submit a form designating a beneficiary who will receive any shares of Common Stock and/or Contributions from the Participant’s account under the Plan if the Participant dies before
such shares and/or Contributions are delivered to the Participant. The Company may, but is not obligated to, permit the Participant to change such designation of beneficiary. Any such designation and/or change must be on a form approved by the
Company. 
 (b) If a Participant dies, and in the absence of a valid beneficiary designation, the Company will deliver any shares of
Common Stock and/or Contributions to the executor or administrator of the estate of the Participant. If no executor or administrator has been appointed (to the knowledge of the Company), the Company, in its sole discretion, may deliver such shares
of Common Stock and/or Contributions to the Participant’s spouse, dependents or relatives, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 

 

	11.	ADJUSTMENTS UPON CHANGES IN COMMON STOCK; CORPORATE TRANSACTIONS. 

(a) On a Capitalization Adjustment, the Board will appropriately and proportionately adjust: (i) the class(es) and maximum number
of securities subject to the Plan pursuant to Section 3(a), (ii) the class(es) and maximum number of securities by which the share reserve is to increase automatically each year pursuant to Section 3(a), (iii) the class(es) and
number of securities subject to, and the purchase price applicable to outstanding Offerings and Purchase Rights, and (iv) the class(es) and number of securities that are the subject of the purchase limits under each ongoing Offering. The Board
will make these adjustments, and its determination will be final, binding and conclusive. 
 (b) On a Corporate Transaction, then:
(i) any surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) may assume or continue outstanding Purchase Rights or may substitute similar rights (including a right to acquire the same
consideration paid to the stockholders in the Corporate Transaction) for outstanding Purchase Rights, or (ii) if any surviving or acquiring corporation (or its parent company) does not assume or continue such Purchase Rights or does not
substitute similar rights 

  
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for such Purchase Rights, then the Participants’ accumulated Contributions will be used to purchase shares of Common Stock within ten business days prior to the Corporate Transaction under
the outstanding Purchase Rights, and the Purchase Rights will terminate immediately after such purchase. 
  

	12.	AMENDMENT, TERMINATION OR SUSPENSION OF THE PLAN. 

(a) The Board may amend the Plan at any time in any respect the Board deems necessary or advisable. However, except as provided in
Section 11(a) relating to Capitalization Adjustments, stockholder approval will be required for any amendment of the Plan for which stockholder approval is required by applicable law or listing requirements, including any amendment that either
(i) materially increases the number of shares of Common Stock available for issuance under the Plan, (ii) materially expands the class of individuals eligible to become Participants and receive Purchase Rights, (iii) materially
increases the benefits accruing to Participants under the Plan or materially reduces the price at which shares of Common Stock may be purchased under the Plan, (iv) materially extends the term of the Plan, or (v) expands the types of
awards available for issuance under the Plan, but in each of (i) through (v) above only to the extent stockholder approval is required by applicable law or listing requirements. 

(b) The Board may suspend or terminate the Plan at any time. No Purchase Rights may be granted under the Plan while the Plan is
suspended or after it is terminated. 
 (c) Any benefits, privileges, entitlements and obligations under any outstanding Purchase
Rights granted before an amendment, suspension or termination of the Plan will not be materially impaired by any such amendment, suspension or termination except (i) with the consent of the person to whom such Purchase Rights were granted,
(ii) as necessary to comply with any laws, listing requirements, or governmental regulations (including, without limitation, the provisions of Section 423 of the Code and the regulations and other interpretive guidance issued thereunder
relating to Employee Stock Purchase Plans) including without limitation any such regulations or other guidance that may be issued or amended after the Effective Date, or (iii) as necessary to obtain or maintain favorable tax, listing, or
regulatory treatment. To be clear, the Board may amend outstanding Purchase Rights without a Participant’s consent if such amendment is necessary to ensure that the Purchase Right and/or the Plan complies with the requirements of
Section 423 of the Code. 
  

	13.	CODE SECTION 409A; TAX QUALIFICATION. 

(a) Purchase Rights granted under the 423 Component are intended to be exempt from the application of Section 409A of the Code
under Treasury Regulation Section 1.409A-1(b)(5)(ii). Purchase Rights granted under the Non-423 Component to U.S. taxpayers are intended to be exempt from the application of Section 409A of the Code under the short-term deferral exception
and any ambiguities shall be construed and interpreted in accordance with such intent. Subject to Section 13(b) hereof, Purchase Rights granted to U.S. taxpayers under the Non-423 Component shall be subject to such terms and conditions that
will permit such Purchase Rights to satisfy the requirements of the short-term deferral exception available under Section 409A of the Code, including the requirement that the shares subject to a Purchase Right be delivered within the short-term
deferral period. Subject to Section 13(b) hereof, in the case of a 

  
 9 

 
Participant who would otherwise be subject to Section 409A of the Code, to the extent the Board determines that a Purchase Right or the exercise, payment, settlement or deferral thereof is
subject to Section 409A of the Code, the Purchase Right shall be granted, exercised, paid, settled or deferred in a manner that will comply with Section 409A of the Code, including U.S. Department of Treasury regulations and other
interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the adoption of the Plan. Notwithstanding the foregoing, the Company shall have no liability to a Participant or
any other party if the Purchase Right that is intended to be exempt from or compliant with Section 409A of the Code is not so exempt or compliant or for any action taken by the Board with respect thereto. 

(b) Although the Company may endeavor to (i) qualify a Purchase Right for favorable tax treatment under the laws of the United
States or jurisdictions outside of the United States or (ii) avoid adverse tax treatment (e.g., under Section 409A of the Code), the Company makes no representation to that effect and expressly disavows any covenant to maintain favorable
or avoid unfavorable tax treatment, notwithstanding anything to the contrary in this Plan, including Section 13(a) hereof. The Company shall be unconstrained in its corporate activities without regard to the potential negative tax impact on
Participants under the Plan. 
  

	14.	EFFECTIVE DATE OF PLAN. 

 The
Plan will become effective on the IPO Date. No Purchase Rights will be exercised unless and until the Plan has been approved by the stockholders of the Company, which approval must be within 12 months before or after the date the Plan is adopted (or
if required under Section 12(a) above, materially amended) by the Board. 
  

	15.	MISCELLANEOUS PROVISIONS. 

 (a) Proceeds from the
sale of shares of Common Stock pursuant to Purchase Rights will constitute general funds of the Company. 
 (b) A Participant will
not be deemed to be the holder of, or to have any of the rights of a holder with respect to, shares of Common Stock subject to Purchase Rights unless and until the Participant’s shares of Common Stock acquired upon exercise of Purchase Rights
are recorded in the books of the Company (or its transfer agent). 
 (c) The Plan and Offering do not constitute an employment
contract. Nothing in the Plan or in the Offering will in any way alter the at will nature of a Participant’s employment, if applicable, or be deemed to create in any way whatsoever any obligation on the part of any Participant to continue in
the employ of the Company or a Related Corporation or an Affiliate, or on the part of the Company or a Related Corporation or an Affiliate to continue the employment of a Participant. 

(d) The provisions of the Plan will be governed by the laws of the State of California without resort to that state’s conflicts of
laws rules. 
 (e) If any particular provision of the Plan is found to be invalid or otherwise unenforceable, such provision shall
not affect the other provisions of the Plan, but the Plan shall be construed in all respects as if such invalid provision were omitted. 

  
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	16.	DEFINITIONS. 

 As used in the Plan, the following definitions will apply
to the capitalized terms indicated below: 
 (a) “423 Component” means the part of the Plan, which excludes
the Non-423 Component, pursuant to which Purchase Rights that satisfy the requirements for Employee Stock Purchase Plans may be granted to Eligible Employees. 

(b) “Affiliate” means any branch or representative office of a Related Corporation, as determined by the Board,
whether now or hereafter existing. 
 (c) “Board” means the Board of Directors of the Company. 

(d) “Capital Stock” means each and every class of common stock of the Company,
regardless of the number of votes per share.  
 (e) “Capitalization
Adjustment” means any change that is made in, or other events that occur with respect to, the Common Stock subject to the Plan or subject to any Purchase Right after the Effective Date without the receipt of consideration by the
Company through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, large nonrecurring cash dividend, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other similar equity restructuring transaction, as that term is used in Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any successor thereto). Notwithstanding the
foregoing, the conversion of any convertible securities of the Company will not be treated as a Capitalization Adjustment.  
 (f)
“Code” means the U.S. Internal Revenue Code of 1986, as amended. 
 (g)
“Committee” means a committee of one or more members of the Board to whom authority has been delegated by the Board. 

(h) “Common Stock” means, as of the IPO Date, the Class A common stock of the Company, having 1 vote per
share. 
 (i) “Company” means Zynga Inc., a Delaware corporation. 

(j) “Contributions” means the payroll deductions and other additional payments specifically provided for in the
Offering that a Participant contributes to fund the exercise of a Purchase Right. A Participant may make additional payments into his or her account if specifically provided for in the Offering, and then only if the Participant has not already had
the maximum permitted amount withheld during the Offering through payroll deductions. 

  
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 (k) “Corporate Transaction” means the occurrence, in a single
transaction or in a series of related transactions, of any one or more of the following events: 
 (i) the consummation of a sale or
other disposition of all or substantially all, as determined by the Board in its sole discretion, of the consolidated assets of the Company and its Subsidiaries; 

(ii) the consummation of a sale or other disposition of at least 50% of the outstanding securities of the Company; 

(iii) the consummation of a merger, consolidation or similar transaction following which the Company is not the surviving corporation;
or 
 (iv) the consummation of a merger, consolidation or similar transaction following which the Company is the surviving
corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other property, whether in
the form of securities, cash or otherwise. 
 (l) “Designated Non-423 Corporation” means any Related
Corporation or Affiliate selected by the Board as eligible to participate in the Non-423 Component. 
 (m) “Designated
Company” means a Designated Non-423 Corporation or Designated 423 Corporation. 
 (n) “Designated 423
Corporation” means any Related Corporation selected by the Board as eligible to participate in the 423 Component. 
 (o)
“Director” means a member of the Board. 
 (p) “Eligible Employee” means an
Employee who meets the requirements set forth in the document(s) governing the Offering for eligibility to participate in the Offering, provided that such Employee also meets the requirements for eligibility to participate set forth in the Plan.

 (q) “Employee” means any person, including an Officer or Director, who is treated as an employee in the
records of the Company or a Related Corporation (including an Affiliate). However, service solely as a Director, or payment of a fee for such services, will not cause a Director to be considered an “Employee” for purposes of the Plan. 

(r) “Employee Stock Purchase Plan” means a plan that grants Purchase Rights intended to be options issued under
an “employee stock purchase plan,” as that term is defined in Section 423(b) of the Code. 
 (s) “Exchange
Act” means the U.S. Securities Exchange Act of 1934, as amended. 
 (t) “Fair Market Value”
means, as of any date, the value of the Common Stock determined as follows: 
 (i) If the Common Stock is listed on any established
stock exchange or traded on any established market, the Fair Market Value of a share of Common Stock will be the closing sales price for such stock as quoted on such exchange or market (or the exchange or market with the greatest
volume of trading in the Common Stock) on the date of determination, as reported in such source as the Board deems reliable. Unless otherwise provided by the Board, if there is no closing sales price for the Common Stock on the date of
determination, then the Fair Market Value will be the closing sales price on the last preceding date for which such quotation exists. 

  
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 (ii) In the absence of such markets for the Common Stock, the Fair Market Value will be
determined by the Board in good faith in compliance with applicable laws. 
 (iii) Notwithstanding the foregoing, for any Offering
that commences on the IPO Date, the Fair Market Value of the shares of Common Stock on the Offering Date will be the price per share at which shares are first sold to the public in the Company’s initial public offering as specified in the final
prospectus for that initial public offering. 
 (u) “IPO Date” means the date of the underwriting agreement
between the Company and the underwriter(s) managing the initial public offering of the Common Stock, pursuant to which the Common Stock is priced for the initial public offering. 

(v) “Non-423 Component” means the part of the Plan, which excludes the 423 Component, pursuant to which
Purchase Rights that are not intended to satisfy the requirements for Employee Stock Purchase Plans may be granted to Eligible Employees. 

(w) “Offering” means the grant to Eligible Employees of Purchase Rights, with the exercise of those Purchase
Rights automatically occurring at the end of one or more Purchase Periods. The terms and conditions of an Offering will generally be set forth in the “Offering Document” approved by the Board for that Offering. 

(x) “Offering Date” means a date selected by the Board for an Offering to commence. 

(y) “Officer” means a person who is an officer of the Company or a Related Corporation within the
meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.  
 (z)
“Participant” means an Eligible Employee who holds an outstanding Purchase Right. 
 (aa)
“Plan” means this Zynga Inc. 2011 Employee Stock Purchase Plan, including both the 423 and Non-423 Components, as amended from time to time. 

(bb) “Purchase Date” means one or more dates during an Offering selected by the Board on which
Purchase Rights will be exercised and on which purchases of shares of Common Stock will be carried out in accordance with such Offering.  

  
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 (cc) “Purchase Period” means a period
of time specified within an Offering, generally beginning on the Offering Date or on the first Trading Day following a Purchase Date, and ending on a Purchase Date. An Offering may consist of one or more Purchase Periods.  

(dd) “Purchase Right” means an option to purchase shares of Common Stock granted pursuant to the
Plan. 
 (ee) “Related Corporation” means any “parent corporation” or “subsidiary
corporation” of the Company whether now or subsequently established, as those terms are defined in Sections 424(e) and (f), respectively, of the Code. 

(ff) “Securities Act” means the U.S. Securities Act of 1933, as amended. 

(gg) “Trading Day” means any day on which the exchange(s) or market(s) on which shares of Common
Stock are listed, including but not limited to the NYSE, Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market or any successors thereto, is open for trading. 

  
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