Document:

Exhibit 10.2

 

EXHIBIT A

 

CONTINGENT VALUE RIGHTS AGREEMENT

 

BY AND AMONG

 

STEEL PARTNERS HOLDINGS L.P.,

 

STEEL CONNECT, INC.

 

[●],
AS SHAREHOLDER REPRESENTATIVE

 

AND

 

[●], AS RIGHTS AGENT

 

DATED AS OF [●], 2022

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	Article I DEFINITIONS	1
	Section 1.1	Definitions	1
	Article II CONTINGENT VALUE RIGHTS 	6
	Section 2.1	Appointment of the Rights Agent; Issuance of CVRs	6
	Section 2.2	Nontransferable	6
	Section 2.3	No Certificate; Registration; Registration of Transfer; Change of Address	6
	Section 2.4	Payment Procedures; Payment Amount	7
	Section 2.5	No Voting, Dividends or Interest; No Equity or Ownership Interest in Parent or the Company	12
	Section 2.6	Establishment of ModusLink CVR Bank Account	12
	Article III THE RIGHTS AGENT AND SHAREHOLDER REPRESENTATIVE	12
	Section 3.1	Certain Duties and Responsibilities	12
	Section 3.2	Certain Rights of Rights Agent	13
	Section 3.3	Indemnity and Expenses	15
	Section 3.4	Resignation and Removal of Rights Agent and Shareholder Representative; Appointment of Successor	17
	Section 3.5	Acceptance of Appointment by Successor	18
	Article IV ADDITIONAL COVENANTS	18
	Section 4.1	Operations	18
	Section 4.2	List of Holders	18
	Section 4.3	ModusLink Sale Process	19
	Section 4.4	Books and Records	19
	Article V AMENDMENTS 	19
	Section 5.1	Amendments Without Consent of Holders	19
	Section 5.2	Amendments with Consent of the Shareholder Representative	20
	Section 5.3	Execution of Amendments	20
	Section 5.4	Effect of Amendments	20
	Article VI CONSOLIDATION, MERGER, SALE OR CONVEYANCE	21
	Section 6.1	Company Consolidation, Merger, Sale or Conveyance	21
	Section 6.2	Successor Substituted	21
	Article VII OTHER PROVISIONS OF GENERAL APPLICATION	22
	Section 7.1	Notices to Parent, the Company, the Shareholder Representative and the Rights Agent	22
	Section 7.2	Notice to Holders	23
	Section 7.3	Counterparts; Headings	23
	Section 7.4	Assignment; Successors	23
	Section 7.5	Benefits of Agreement	23
	Section 7.6	Governing Law	24
	Section 7.7	Waiver of Jury Trial	24
	Section 7.8	Remedies	25
	Section 7.9	Severability Clause	25
	Section 7.10	Termination	25
	Section 7.11	Entire Agreement	26
	Section 7.12	Suits for Enforcement	26

 

    i

     

    

 

CONTINGENT VALUE RIGHTS AGREEMENT

 

THIS CONTINGENT VALUE RIGHTS
AGREEMENT, dated as of [●], 2022 (this “Agreement”),
is entered into by and among Steel Partners Holdings L.P., a Delaware limited partnership (“Parent”), Steel Connect,
Inc., a Delaware corporation (the “Company”), [●]
(“Rights Agent”) and the Shareholder Representative.

 

RECITALS

 

WHEREAS, Parent, Merger
Sub and the Company have entered into an Agreement and Plan of Merger, dated as of June 12, 2022 (the “Merger Agreement”),
pursuant to which Merger Sub will merge with and into the Company, with the Company surviving the Merger as a wholly-owned subsidiary
of Parent;

 

WHEREAS, pursuant to
the Merger Agreement, Parent has agreed to cause the Company to create and issue in respect of each Eligible Share (as defined in the
Merger Agreement), certain rights to the ModusLink CVR Payment Amount, if and when payable pursuant to this Agreement; and

 

WHEREAS, the transactions
contemplated by the Merger Agreement closed on [●], 2022.

 

AGREEMENT

 

NOW, THEREFORE, for
and in consideration of the agreements contained herein and the consummation of the transactions contemplated by the Merger Agreement,
it is mutually covenanted and agreed as follows:

 

Article
I

DEFINITIONS

 

Section 1.1
Definitions.

 

(a)
For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires:

 

(i)
the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular;

 

(ii)
the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this
Agreement as a whole and not to any particular Article, Section or other subdivision;

 

(iii)
unless the context otherwise requires, words describing the singular number shall include the plural and vice versa, words denoting
any gender shall include all genders and words denoting natural Persons shall include corporations, partnerships and other Persons and
vice versa;

 

(iv)
the word “or” shall be exclusive;

 

    1

     

    

 

(v)
 the words “include,” “includes” and “including” shall not be limiting and shall be deemed
to be followed by the phrase “without limitation;

 

(vi)  
whenever this Agreement refers to a number of days, such number shall refer to calendar days unless Business Days are specified;

 

(vii)
all references to “including” shall be deemed to mean including without limitation; and

 

(viii)
references to any Person include such Person’s successors and permitted assigns.

 

(b)
Capitalized terms used but not otherwise defined herein shall have the meanings ascribed thereto in the Merger Agreement. The following
terms shall have the meanings ascribed to them as follows:

 

“Agreement”
has the meaning given to such term in the Preamble.

 

“Board of Directors”
means the board of directors of the Company.

 

“Board Resolution”
means a copy of a resolution certified by the secretary or an assistant secretary of the Company to have been duly adopted by the Board
of Directors and to be in full force and effect on the date of such certification, and delivered to the Rights Agent.

 

“By-Laws”
means the By-Laws of ModusLink.

 

“Company”
has the meaning given to such term in the Preamble.

 

“CVRs” means
the contingent value rights issued by the Company under this Agreement.

 

“CVR Payment Date”
means any date that any ModusLink CVR Payment Amount is paid by the Company to the Holders pursuant to Section 2.4.

 

“CVR Register”
has the meaning given to such term in Section 2.3(b).

 

“Entire ModusLink Sale”
means, as of any date of determination, a direct or indirect sale, lease, transfer or other disposition (including by means of a merger
or other business combination transaction) in one or more transactions (i) of all or substantially all of the ModusLink Assets, (ii) of
100% of the Company’s then remaining Equity Interests in ModusLink or (iii) the effect of which is to divest 100% of the Company’s
then remaining direct or indirect investment in ModusLink.

 

“Entire CVR Payment
Statement” has the meaning given to such term in Section 2.4(f)(i).

 

    2

     

    

 

“Equity Interest”
means any share, capital stock, partnership, member or similar interest in any entity, and any option, warrant, right or security (including
debt securities) convertible, exchangeable or exercisable therefor.

 

“Excluded Expenses”
means all costs, fees and expenses of the Company or any Company Subsidiary or any of their respective affiliates arising out of or relating
to any dispute with the Shareholder Representative or otherwise with respect to the terms of this Agreement.

 

“Fair Market Value”
shall mean, in respect of assets other than cash:

 

(i) with
respect to securities listed on any established stock exchange, the Fair Market Value of such securities shall be the closing sales price
per such security as quoted on such exchange or market (or, if listed on more than one such exchange or market, the exchange or market
with the greatest volume of trading in such security) on the last market trading day prior to such date, as reported in The Wall Street
Journal; and

 

(ii) with
respect to a property or other asset or a security not listed on any established stock exchange, the Fair Market Value shall be determined
in good faith by Parent; provided, however, that if there is a good faith objection to such a determination by the Shareholder Representative,
the Fair Market Value shall be determined by an independent third-party appraiser agreed upon by Parent and Shareholder Representative,
and all reasonable fees and expenses of the third-party appraiser shall be ModusLink Sale Expenses.

 

“Fully Diluted Share
Amount” means the total number of shares of Company Common Stock outstanding as of immediately prior to the Effective Time,
excluding shares of Company Common Stock issuable upon conversion of the shares of Company Series C Preferred Stock outstanding as of
immediately prior to the Effective Time.

 

“Holder”
means a Person in whose name a CVR is registered in the CVR Register.

 

“Merger Agreement”
has the meaning given to such term in the Recitals.

 

“ModusLink”
means ModusLink Corporation.

 

“ModusLink Assets”
means the assets owned by ModusLink or its Subsidiaries as of the date of this Agreement, regardless of where such assets may be situated,
and changes in such assets occurring after the date hereof.

 

“ModusLink Business”
means the business and operations carried on by ModusLink and its Subsidiaries.

 

“ModusLink CVR Payment
Amount” means an amount (which shall not be less than zero) equal to (i) the ModusLink Net Sale Proceeds divided by (ii) the
Fully Diluted Share Amount; provided, however, that a ModusLink CVR Payment Amount would in no event result from a related
party transaction or restructuring that results in a direct or indirect transfer of ModusLink Assets, but would include a subsequent sale
to a third party of such ModusLink Assets.

 

    3

     

    

 

“ModusLink Net Sale
Proceeds” means an amount (which shall not be less than zero) equal to (i) the Fair Market Value of the aggregate amount of
gross proceeds received by the Company, Parent or any of their Affiliates in connection with one or more ModusLink Sales that are consummated
within twenty four (24) months of the Effective Time plus (ii) the amount of any cash retained by the Company or its Subsidiaries that
would otherwise have been included in the ModusLink Assets, minus (iii) an amount equal to (x) $80,000,000 plus (y) the ModusLink Sale
Expenses; provided, that in the event the ModusLink Net Sale Proceeds for a given Partial ModusLink Sale do not exceed $80,000,000,
such ModusLink Net Sale Proceeds shall be included in clause (i) of this calculation in addition to each subsequent ModusLink Sale; provided,
further, that if any contingent or deferred compensation or earn-out is payable in respect of any ModusLink Sale, such amount shall
be included in the calculation of “ModusLink Net Sale Proceeds” only upon actual receipt by the Company, Parent or any of
their Affiliates.

 

“ModusLink Sale”
means an Entire ModusLink Sale or Partial ModusLink Sale, as applicable.

 

“ModusLink Sale Agreement”
means an executed binding definitive transaction document providing for a ModusLink Sale.

 

“ModusLink Sale Expenses”
means (a) any reasonable out-of-pocket transaction costs, fees or expenses (including any reasonable and customary broker fees, finder’s
fees, advisory fees, accountant or attorney’s fees and transfer or similar taxes imposed by any jurisdiction) to the extent incurred
in connection with the Entire ModusLink Sale or a Partial ModusLink Sale (including any amounts expressly deemed to be ModusLink Sale
Expenses hereunder) by the Company or any of its Subsidiaries) and the Shareholder Representative, and (b) the fees and expenses of the
Rights Agent and the Neutral Auditor, in each case, which are documented in reasonable detail, prepared in good faith, and certified by
the Shareholder Representative or the Company, as applicable; provided, that ModusLink Sale Expenses shall exclude any Excluded
Expenses.

 

“Neutral Auditor”
has the meaning given to such term in Section 2.4(g).

 

“Notice of Agreement”
has the meaning given to such term in Section 2.4(e)(ii).

 

“Notice of Objection”
has the meaning given to such term in Section 2.4(e)(ii).

 

“Objections”
has the meaning given to such term in Section 2.4(e)(iv).

 

“Officer’s Certificate”
means a certificate signed by the chief executive officer, president, chief financial officer, any vice president, the controller, the
treasurer or the secretary of the Company, in his or her capacity as such an officer.

 

“Partial ModusLink
Sale” means a direct or indirect sale, lease, transfer or other disposition (including by means of a merger or other business
combination transaction) (i) of less than all or substantially all of the ModusLink Assets, (ii) of less than 100% of the Company’s
Equity Interests in ModusLink or (iii) the effect of which is to divest the Company of less than 100% of its direct or indirect investment
in ModusLink.

 

    4

     

    

 

“Partial CVR Payment
Statement” has the meaning given to such term in Section 2.4(e)(i).

 

“Permitted Transfer”
means (i) the transfer of any or all of the CVRs on death by will or intestacy, (ii) transfer by instrument to an inter vivos or testamentary
trust in which the CVRs are to be passed to beneficiaries upon the death of the trustee, (iii) transfers made pursuant to a court order
(including in connection with divorce, bankruptcy or liquidation), (iv) if the Holder is a corporation, partnership or limited liability
company, a distribution by the transferring corporation, partnership or limited liability company to its stockholders, partners or members,
as applicable (provided that (A) such distribution does not subject the CVRs to a requirement of registration under the Securities Act
or the Exchange Act, or (B) in the case of a transferring corporation, the Company shall have reasonably determined after consultation
with counsel that such distribution does not subject the CVRs to a requirement of registration under the Securities Act or the Exchange
Act), and (v) a transfer made by operation of law (including a consolidation or merger) or without consideration in connection with the
dissolution, liquidation or termination of any corporation, limited liability company, partnership or other entity.

 

“Pre-Funded Amount”
has the meaning given to such term in Section 3.3(b).

 

“Qualified Investment”
means any (i) investment in a money market investment program registered under the Investment Company Act of 1940, as amended, that invests
solely in direct obligations of the United States of America or obligations the principal of and the interest on which are unconditionally
guaranteed by the United States of America or (ii) certificate of deposit issued by any bank, bank and trust company or national banking
association with a combined capital and surplus in excess of $100,000,000 and insured by the Federal Deposit Insurance Corporation or
a similar governmental agency.

 

“Rights Agent”
means the Rights Agent named in the Preamble, until a successor Rights Agent shall have become such pursuant to the applicable provisions
of this Agreement, and thereafter “Rights Agent” shall mean such successor Rights Agent.

 

“Sale Deadline”
means twenty four (24) months following the Effective Time.

 

“Shareholder Representative”
means [●].

 

“Shareholder Representative
Expense Amount” has the meaning given to such term in Section 3.3(b).

 

“Shareholder Representative
Persons” has the meaning given to such term in Section 3.1(a).

 

“Shareholder Representative
Reimbursement Amount” has the meaning given to such term in Section 3.3(b).

 

“Surviving Person”
has the meaning given to such term in Section 6.1(a)(i).

 

“Parent”
has the meaning given to such term in the Preamble.

 

    5

     

    

 

Article II

CONTINGENT VALUE RIGHTS

 

Section 2.1
Appointment of the Rights Agent; Issuance of CVRs.

 

The Company hereby appoints
the Rights Agent to act as agent for the Company in accordance with the terms and conditions hereof, and the Rights Agent hereby accepts
such appointment. The Company hereby issues the CVRs at the Effective Time pursuant to the terms of the Merger Agreement, and the CVRs
shall represent the right of the Holders to receive, in respect of each CVR held by such Holder, the ModusLink CVR Payment Amount (if
any) if and when payable pursuant to this Agreement. The administration of the CVRs shall be handled pursuant to this Agreement in the
manner set forth in this Agreement.

 

Section 2.2
Nontransferable.

 

The CVRs or any interest therein
shall not be sold, assigned, transferred, pledged, encumbered or in any other manner transferred or disposed of, in whole or in part,
other than through a Permitted Transfer.

 

Section 2.3
No Certificate; Registration; Registration of Transfer; Change of Address.

 

(a)
The CVRs shall not be evidenced by a certificate or other instrument.

 

(b)
The Rights Agent shall keep a register (the “CVR Register”) for the registration of CVRs in a book-entry position
for each Holder and transfers of CVRs as herein provided. The CVR Register shall set forth the name and address of each Holder, the number
of CVRs held by such Holder and the Tax Identification Number of each Holder, which information, if not available to the Company’s
transfer agent or provided by the Holder, shall be provided in writing to the Rights Agent by the Company. The CVR Register will be updated
as necessary by the Rights Agent to reflect the addition or removal of Holders (including pursuant to any Permitted Transfers), upon the
written receipt of such information by the Rights Agent. Each of the Company and the Shareholder Representative may receive and inspect
a copy of the CVR Register, from time to time, upon written request made to the Rights Agent. Within five (5) Business Days after receipt
of such request, the Rights Agent shall mail a copy of the CVR Register, as then in effect, to the Company and the Shareholder Representative
at the address set forth in Section 7.1.

 

(c)
Subject to the restriction on transferability set forth in Section 2.2, every request made to transfer a CVR must be in
writing and setting forth in reasonable detail the circumstances relating to the transfer, and must be accompanied by (i) a written instrument
of transfer duly executed by the registered Holder thereof, the Holder’s attorney duly authorized in writing, and the Holder’s
personal representative or survivor, (ii) the transfer certificate attached hereto as Exhibit A duly completed and properly executed
by both the registered Holder thereof, the Holder’s attorney duly authorized in writing, the Holder’s personal representative
or survivor and the proposed transferee, and (iii) any other requested documentation in form reasonably satisfactory to the Company and
the Rights Agent. Upon receipt of such written notice, the Rights Agent shall, subject to its reasonable determination that the transfer
instrument and the transfer certificate are in proper form and the transfer otherwise complies with the other terms and conditions herein
including Section 2.2, register the transfer of the CVRs in the CVR Register.

 

    6

     

    

 

The Rights Agent may rely on the information contained
in the transfer certificate and any of the documents required to be provided with the transfer certificate. All duly transferred CVRs
registered in the CVR Register shall be the valid obligations of the Company, evidencing the same right, and shall entitle the transferee
to the same benefits and rights under this Agreement, as those held immediately prior to the transfer by the transferor. No transfer of
a CVR shall be valid until registered in the CVR Register, and any transfer not duly registered in the CVR Register will be void ab initio
(unless the transfer was permissible hereunder and such failure to be duly registered is attributable to the fault of the Rights Agent).
Any transfer or assignment of the CVRs shall be without charge to the Holder; provided, that the Company and the Rights Agent may
require (i) payment of a sum sufficient to cover any stamp, transfer or other similar tax or charge that is imposed in connection with
any such transfer or (ii) that the transferor establish to the reasonable satisfaction of the Rights Agent that any such taxes have been
paid. The Rights Agent shall have no duty or obligation to take any action under this Section 2.3(c) unless and until the Rights
Agent is satisfied that all such taxes or charges have been paid in full.

 

(d)
A Holder may make a written request to the Rights Agent to change such Holder’s address of record in the CVR Register. The
written request must be duly executed by the Holder. Upon receipt of such written notice, the Rights Agent shall promptly record the change
of address in the CVR Register.

 

Section 2.4
Payment Procedures; Payment Amount.

 

(a)
Payment for Partial ModusLink Sales. Subject to the procedures set forth in Section 2.4(e), upon the consummation
of any Partial ModusLink Sale, each Holder of a CVR shall, in respect of such CVR, be entitled to and shall receive the ModusLink CVR
Payment Amount (if any).

 

(b)
Payment for Entire ModusLink Sales. Subject to the procedures set forth in Section 2.4(f), upon the consummation
of the Entire ModusLink Sale, each Holder of a CVR shall, in respect of such CVR, be entitled to and shall receive the ModusLink CVR Payment
Amount (if any).

 

(c)
Payment upon Sale Deadline. Notwithstanding anything to the contrary in this Agreement, no Holder of a CVR shall, in respect
of such CVR, be entitled to any ModusLink CVR Payment Amount that is received by the Company, Parent or any of their Affiliates following
the Sale Deadline.

 

(d) Currency
Conversion. To the extent that any proceeds described herein are received in a currency other than U.S. dollars, the amount of
such proceeds shall be deemed to be the U.S. dollar amount actually received by the Company, Parent or any of their Affiliates upon
the Company, Parent or any of their Affiliate’s conversion of such proceeds into U.S. dollars at the direction of the
Shareholder Representative. To the extent any expenses, fees or costs are incurred or paid in a currency other than U.S. dollars,
the actual U.S. dollar amount that was paid, that was funded by the Company into the Shareholder Representative Expense Amount or
that was a Pre-Funded Amount (excluding any amount that remains unused on the consummation of the ModusLink Sale and that is
distributed from the joint account to the Company on such date in accordance with Section 3.3(b) below) shall be used in the
calculation of the “ModusLink Sale Expenses”.

 

    7

     

    

 

(e)
Procedure for Partial ModusLink Sales.

 

(i)
Promptly following the closing of a Partial ModusLink Sale but in no event later than ten (10) Business Days thereafter, the Company
shall deliver to the Shareholder Representative (with a copy to the Rights Agent and Parent) the Company’s good faith written calculation,
in reasonable detail and with supporting documentation, work papers and receipts of the ModusLink CVR Payment Amount (the “Partial
CVR Payment Statement”), which shall be certified by the Company. The Partial CVR Payment Statement shall specify in reasonable
detail all ModusLink Sale Expenses of the Shareholder Representative set forth in writing by the Shareholder Representative to the Company
within such ten (10) Business Day period, which shall be certified by the Shareholder Representative. Parent and the Company shall be
protected in relying in good faith upon such certification.

 

(ii)
Within ten (10) Business Days after receipt of the Partial CVR Payment Statement, the Shareholder Representative shall deliver
to the Company and the Rights Agent (with a copy to Parent) a notice specifying whether the Shareholder Representative agrees with (a
“Notice of Agreement”) or objects to (a “Notice of Objection”) such Partial CVR Payment Statement.

 

(iii)
If the Shareholder Representative delivers a Notice of Agreement, then any ModusLink CVR Payment Amount shall be due and payable
to the Holders pursuant to the procedures set forth in Section 2.4(h) below. If the Shareholder Representative does not deliver
either a Notice of Objection or a Notice of Agreement within such five (5) Business Day period, then the Shareholder Representative shall
be deemed to have delivered a Notice of Agreement with respect to such Partial CVR Payment Statement at the end of such period.

 

(iv)  
Any Notice of Objection shall contain the Shareholder Representative’s calculation of the ModusLink CVR Payment Amount that
such Shareholder Representative believes Holders are entitled to receive. Such Notice of Objection must also be accompanied by a description
in reasonable detail of each of the objections to the calculations reflected in the Notice of Objection (collectively, the “Objections”).
For a period of ten (10) Business Days after the delivery of the Notice of Objection, the Company and the Shareholder Representative shall,
in good faith, try to resolve any Objections; provided, however, that to the extent that the Company and the Shareholder
Representative shall disagree, the Shareholder Representative’s good faith calculation of the ModusLink CVR Payment Amount (as modified
to give effect to the results of any discussions and negotiations pursuant to this clause (iv)) shall control.

 

(f)  Procedure
for the Entire ModusLink Sale.

 

(i) Promptly following the completion
of the Entire ModusLink Sale, but in no event later than twenty (20) Business Days thereafter, the Company shall deliver to the Shareholder
Representative (with a copy to the Rights Agent and Parent) the Company’s good faith written calculation of the ModusLink CVR Payment
Amount (the “Entire CVR Payment Statement”). The Entire CVR Payment Statement shall specify in reasonable detail all
ModusLink Sale Expenses of the Shareholder Representative set forth in writing by the Shareholder Representative to the Company within
such twenty (20) Business Day (or applicable later) period, which shall be certified by the Shareholder Representative. Parent and the
Company may rely in good faith upon such certification. For the avoidance of doubt, the Company shall deliver an Entire CVR Payment Statement
even if it believes that there is no ModusLink CVR Payment Amount due and payable. Such Entire CVR Payment Statement will be accompanied
by the Company’s calculation in reasonable detail of the components of the ModusLink CVR Payment Amount, including a good faith
written calculation, in reasonable detail and with supporting documentation, work papers and receipts, of the ModusLink Sale Expenses
incurred by the Company, Parent or any of their Affiliates (other than the Shareholder Representative Expense Amount and any Pre-Funded
Amounts pursuant to Section 3.3(b)), along with an Officer’s Certificate certifying such ModusLink Sale Expenses and that
the ModusLink CVR Payment Amount was calculated in the manner required under this Agreement. The Shareholder Representative may rely
in good faith on such certification.

 

    8

     

    

 

(ii)
Within thirty (30) days after receipt of the Entire CVR Payment Statement, the Shareholder Representative shall deliver to the
Company and the Rights Agent (with a copy to Parent) a Notice of Agreement or a Notice of Objection to such Entire CVR Payment Statement.
During such thirty (30) day period, the Company shall cooperate with and permit, and Parent shall cause the Company to cooperate with
and permit, the Shareholder Representative and any accountant or other consultant or advisor retained by the Shareholder Representative
access during normal business hours to such records and personnel (including the external auditors of the Company, Parent or any of their
Affiliates) as may be reasonably necessary to verify the accuracy of the Entire CVR Payment Statement and the amounts underlying the calculation
of the entire ModusLink CVR Payment Amount.

 

(iii)
If the Shareholder Representative delivers a Notice of Agreement, then the ModusLink CVR Payment Amount, shall be due and payable
to the Holders pursuant to the procedures set forth in this Section 2.4(h) below, and, after delivery of the ModusLink CVR Payment
Amount, with respect to all Holders to the Rights Agent, Parent and the Company shall thereafter have no further obligations with respect
to such ModusLink CVR Payment Amount. If the Shareholder Representative does not deliver either a Notice of Objection or a Notice of Agreement
within such thirty (30) day period, then the Shareholder Representative shall be deemed to have delivered a Notice of Agreement with respect
to such Entire CVR Payment Statement at the end of such period.

 

(iv)  
If the Shareholder Representative delivers a Notice of Objection to the Company within such thirty (30) day period, such Notice
of Objection shall contain the Shareholder Representative’s calculation of the ModusLink CVR Payment Amount. Such Notice of Objection
must also be accompanied by a description in reasonable detail of each of the Objections, and a certificate certifying that the ModusLink
CVR Payment Amount reflected in the Notice of Objection was calculated in the manner required under this Agreement.

 

(g) Disputes. If
the Company does not agree with any Objections pursuant to Section 2.4(e) or Section 2.4(f), the Objections that are
in dispute shall be submitted to [●] (the “Neutral
Auditor”). Such Neutral Auditor shall, within thirty (30) Business Days of such submission, resolve any differences
between the Company and the Shareholder Representative and such resolution shall, in the absence of manifest error, be final,
binding and conclusive upon Parent, the Company, the Shareholder Representative, each of the other parties hereto and each of the
Holders. The costs, fees and expenses of such Neutral Auditor shall be borne equally by the Company and the Shareholder
Representative; with any such costs, fees and expenses of the Shareholder Representative being offset against any ModusLink CVR
Payment Amount. For the avoidance of doubt, and notwithstanding anything to the contrary contained in this Agreement, any such
costs, fees and expenses of such Neutral Auditor to be borne by the Company shall not be considered to be ModusLink Sale Expenses.
Upon such resolution, the Company and the Shareholder Representative shall notify the Rights Agent in writing of such resolution and
the ModusLink CVR Payment Amount, shall be due and payable to the Holders in respect of each CVR held by such Holder pursuant to the
procedures set forth in this Section 2.4 below, and, after delivery of any ModusLink CVR Payment Amount, with respect to all
Holders, the Rights Agent, Parent and the Company shall thereafter have no further obligations with respect to the ModusLink CVR
Payment Amount and shall, subject to Section 2.4(h), no longer be entitled to (i) any amount to the extent reflected in any
such finally resolved ModusLink CVR Payment Amount or (ii) any further ModusLink Sale Expenses. To the extent that the ModusLink CVR
Payment Amount is less than zero, the Company shall bear any such costs, fees, and expenses of such Neutral Auditor.

 

    9

     

    

 

(h)
Once the ModusLink CVR Payment Amount becomes due and payable pursuant to this Section 2.4, the Company shall establish
a CVR Payment Date with respect to the ModusLink CVR Payment Amount that is within five (5) Business Days thereafter and shall provide
written notice to the Rights Agent and Shareholder Representative of the same. At least two (2) Business Days prior to such CVR Payment
Date, the Company shall cause all amounts to be paid to the Holders on such CVR Payment Date, to be delivered to the Rights Agent, who
will in turn, on the CVR Payment Date, pay the applicable ModusLink CVR Payment Amount to each of the Holders by check mailed to the address
of each Holder as reflected in the CVR Register as of the close of business on the last Business Day prior to such CVR Payment Date. Any
ModusLink Sale Expenses to the extent not reflected in the finally resolved ModusLink CVR Payment Amount shall be deducted from any such
deferred cash consideration. If no ModusLink CVR Payment Amount is due and payable to the Holders pursuant to any Partial ModusLink Sale
or the Entire ModusLink Sale, the Rights Agent, upon written request from the Company and the Shareholder Representative, shall deliver
notice of the same to the Holders within five (5) Business Days of being notified that no such ModusLink CVR Payment Amount is owing to
the Holders. Whenever a payment is to be made by the Rights Agent, the Company shall deliver written instructions with respect to such
payment that includes the aggregate amount of such payment to be paid to the Holders, and the amount per CVR to be paid to each such Holder.
Until such written instructions are received by the Rights Agent, the Rights Agent may presume conclusively that no event has occurred
that would require such payment.

 

(i)
The Company shall be entitled to deduct and withhold, or cause to be deducted or withheld, from the ModusLink CVR Payment Amount
otherwise payable pursuant to this Agreement, such amounts as it may be required to deduct and withhold with respect to the making of
such payment under the Code, or any provision of state, local or foreign Tax Law. To the extent that amounts are so withheld or paid over
to or deposited with the relevant Governmental Entity, such withheld amounts shall be treated for all purposes of this Agreement as having
been paid to the Holder in respect of which such deduction and withholding was made.

 

    10

     

    

 

(j)
 Any funds comprising the cash deposited with the Rights Agent under Section 2.4(h) that remain undistributed to the Holders
twelve (12) months after the CVR Payment Date with respect to the Entire ModusLink Sale shall be delivered to the Company by the Rights
Agent, upon written demand by the Company, and any Holders who have not theretofore received payment in exchange for such CVRs shall thereafter
look only to the Company for payment of their claim therefor. Notwithstanding anything to the contrary herein, any portion of the consideration
provided by the Company to the Rights Agent that remains unclaimed immediately prior to such time as such amounts would otherwise escheat
to, or become property of, any Governmental Entity shall, to the extent permitted by Law, become the property of the Company free and
clear of any claims or interest of any Person previously entitled thereto, subject to any escheatment Laws.

 

(k)
During the period that the Rights Agent is in possession of the funds delivered to the Rights Agent for payment to Holders, the
Rights Agent shall identify, report and deliver all unclaimed portions of such amounts and related unclaimed property to all states and
jurisdictions for the Company in accordance with applicable abandoned property law. None of the Company, the Shareholder Representative
or the Rights Agent shall be liable to any person in respect of any funds delivered to a public official in compliance with any applicable
state, federal or other abandoned property, escheat or similar law. In consideration of receiving compensation from the agents of the
states for processing and support services provided by the Rights Agent relating to initial compliance with applicable abandoned property
law, the Rights Agent shall not charge the Company for such services. In connection with providing such services, the Rights Agent may
use the services of a locating service provider selected by the Rights Agent to locate and contact Holders, if any, who have not yet cashed
their checks representing payment of the funds deposited with the Rights Agent for payment to the Holders, which provider has agreed to
compensate the Rights Agent for processing and other services the Rights Agent provides in connection with such locating services. Such
provider shall inform any such located Holders that they may choose either (i) to contact the Rights Agent directly to receive a check
for payment of such amounts at no charge other than any applicable fees contemplated herein, or (ii) to utilize the services of such provider
for a fee to be specified in writing to such Holder, which may not exceed the lesser of 15% of the total value of such payment amount
or the maximum statutory fee permitted by the applicable state jurisdiction. If the Company requires the Rights Agent to work with a locating
service provider other than one selected by the Rights Agent, additional fees may apply.

 

(l)
The Rights Agent shall not be obligated to perform wage or Form W-2 tax reporting, and to the extent that any wage or W-2 reporting
is required with respect to the payment of any funds hereunder to Holders, the Company shall promptly notify the Rights Agent of the person
or entity responsible for such wage or W-2 reporting.

 

(m) All funds received by the
Rights Agent under this Agreement that are to be distributed or applied by the Rights Agent in the performance of its duties, obligations
and responsibilities hereunder (the “Funds”) shall be held by [●]
as agent for the Company and deposited in one or more bank accounts to be maintained by [●]
in its name as agent for the Company. Until disbursed pursuant to this Agreement, [●]
may hold or invest the Funds through such accounts in obligations of, or guaranteed by, the United States of America. The Rights Agent
shall have no responsibility or liability for any diminution of the Funds that may result from any deposit or investment made by the
Rights Agent in accordance with this paragraph, including any losses resulting from a default by any bank, financial institution or other
third party. [●] may from time to time receive interest, dividends
or other earnings in connection with such deposits or investments. No interest shall accrue on any funds deposited with the Rights Agent
pursuant to this Agreement. [●] shall not be obligated to calculate
or pay such interest, dividends or earnings to the Company, any Holder or any other person or entity. For the avoidance of doubt, the
preceding three sentences are not meant to cover any interest included in the ModusLink CVR Payment Amount.

 

    11

     

    

 

Section 2.5
No Voting, Dividends or Interest; No Equity or Ownership Interest in Parent or the Company.

 

(a)
The CVRs shall not have any voting or dividend rights, and interest shall not accrue on any amounts payable on the CVRs to any
Holder (without prejudice to the inclusion in ModusLink CVR Payment Amount of the amounts referenced in Section 2.6).

 

(b)
The CVRs shall not represent any equity or ownership interest in Parent, the Company or any of their Affiliates, or in any constituent
company to the Merger.

 

Section 2.6
Establishment of ModusLink CVR Bank Account. Any amounts paid to the Company or any of its Subsidiaries in connection with
any Partial ModusLink Sale, any Entire ModusLink Sale or in connection with any deferred cash consideration with respect thereto shall
be held in a segregated bank account at a banking institution reasonably acceptable to the Shareholder Representative established and
maintained for the benefit of the Holders and invested in one or more Qualified Investments until any ModusLink CVR Payment Amount is
required to be paid pursuant to the terms hereof. Notwithstanding anything to the contrary contained in this Agreement, other than in
connection with any payment pursuant to Section 2.4(h), the Company shall not withdraw any amounts from such bank account without
the prior written consent of the Shareholder Representative.

 

Article
III

THE RIGHTS AGENT AND SHAREHOLDER REPRESENTATIVE

 

Section 3.1
Certain Duties and Responsibilities.

 

(a) Neither (i) the Rights
Agent nor (ii) the Shareholder Representative, the Shareholder Representative’s direct or indirect holders of Equity
Interests, any individual member of the committee that comprises or controls the Shareholder Representative or, as applicable, any
of their respective managers, directors, officers, employees, agents or other representatives (such Persons described in this clause
(ii) in their capacities as such, the “Shareholder Representative Persons”) shall have any liability or
responsibility to any Person (A) of any kind whatsoever for or in respect of its performance of any duties imposed hereunder or for
any actions taken, suffered or omitted to be taken in connection with this Agreement (including, in the case of the Rights Agent,
its acceptance and administration of this Agreement and the exercise and performance of its duties hereunder), (B) for any acts or
omissions of the other parties hereto or (C) for damages, losses or expenses arising out of this Agreement, except (in the case of
each of the foregoing clauses) to the extent of their gross negligence, bad faith or willful or intentional misconduct (each as
determined by a final judgment of a court of competent jurisdiction). No Shareholder Representative Person shall have any duties,
fiduciary or otherwise, under this Agreement except the duty to act in good faith and except as expressly set forth herein. No
provision of this Agreement shall require the Rights Agent or any Shareholder Representative Person to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights
or powers. For purposes of this Section 3.1 and Sections 3.2, 3.3 and 7.5 below, the term
“Rights Agent” shall include the Rights Agent’s managers, directors, officers, employees, agents or other
representatives in their capacity as such and, for the avoidance of doubt, the Rights Agent shall be liable for breaches of this
Agreement by the Rights Agent’s managers, directors, officers, employees, agents or other representatives.

 

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(b)
The Shareholder Representative shall have the exclusive authority to act on behalf of the Holders in enforcing any of their rights
hereunder, including the delivery of a Notice of Objection, statement of Objections and negotiation. The Shareholder Representative shall
be under no obligation to institute any action, suit or legal proceeding or to take any other action likely to involve material expense.
All rights of action under this Agreement may be (and shall only be) enforced by the Shareholder Representative, and any action, suit
or proceeding instituted by the Shareholder Representative shall be brought in its name as Shareholder Representative on behalf of the
Holders, and any recovery of judgment shall be for the ratable benefit of all the Holders, as their respective rights or interests may
appear in the CVR Register.

 

Section 3.2
Certain Rights of Rights Agent.

 

The Rights Agent undertakes
to perform such duties and only such duties as are specifically set forth in this Agreement, and no implied duties, covenants or obligations
shall be read into this Agreement against the Rights Agent. In addition:

 

(a)
the Rights Agent may rely in good faith upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order or other paper or document reasonably believed by it to be genuine and to have been signed or presented by the
proper party or parties;

 

(b) (i) whenever the
Rights Agent shall reasonably require that a matter be established or proved by the Company prior to taking, suffering or omitting
to take any action hereunder, the Rights Agent may request and rely upon a certificate signed by the chief executive officer,
president, chief financial officer, any vice president, the controller, the treasurer or the secretary of the Company on behalf of
the Company, which certificate shall be, if signed by the party or parties required to consent to such action, full authorization
and protection to the Rights Agent, and the Rights Agent shall, in the absence of gross negligence, bad faith or willful or
intentional misconduct (each as determined by a final judgment of a court of competent jurisdiction) on its part, incur no
liability, and shall be protected and be held harmless by the Company, for or in respect of any action taken, suffered or omitted to
be taken by it under the provisions of this Agreement in reliance upon such certificate; and (ii) whenever the Rights Agent shall
reasonably require that a matter be established or proved by the Shareholder Representative prior to taking, suffering or omitting
to take any action hereunder, the Rights Agent may request and rely upon a certificate signed by each then current individual member
of the committee that comprises or controls the Shareholder Representative on behalf of the Shareholder Representative, which
certificate shall be, if signed by the party or parties required to consent to such action, full authorization and protection to the
Rights Agent, and the Rights Agent shall, in the absence of gross negligence, bad faith or willful or intentional misconduct (each
as determined by a final judgment of a court of competent jurisdiction) on its part, incur no liability, and shall be protected and
be held harmless by the Company, for or in respect of any action taken, suffered or omitted to be taken by it under the provisions
of this Agreement in reliance upon such certificate;

 

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(c)
the Rights Agent may engage and consult with counsel of its selection (who may be legal counsel for the Rights Agent or an employee
of the Rights Agent) and the written advice of such counsel or any opinion of counsel shall be full and complete authorization and protection
in respect of any action taken, suffered or omitted to be taken by it hereunder in good faith and in reliance thereon;

 

(d)
the permissive rights of the Rights Agent to do things enumerated in this Agreement shall not be construed as a duty;

 

(e)
the Rights Agent shall not be required to give any note or surety in respect of the execution of such powers or otherwise in respect
of the premises;

 

(f)  
except as otherwise set forth in this Agreement, the Rights Agent shall have no liability and shall be held harmless by the Company
in respect of the validity of this Agreement, the statements of fact or recitals contained herein (or be required to verify the same),
or the execution and delivery hereof (except the due execution and delivery hereof by the Rights Agent and the enforceability of this
Agreement against the Rights Agent assuming the due execution and delivery hereof by the other parties hereto); nor shall it be responsible
for any breach by the Company or any other party of any covenant or condition contained in this Agreement nor shall the Rights Agent be
responsible for, nor chargeable with, knowledge of, nor have any requirements to comply with, the terms and conditions of any other agreement,
instrument or document, including, without limitation, the Merger Agreement, nor shall the Rights Agent be required to determine if any
person or entity has complied with any such agreements, instruments or documents, nor shall any additional obligations of the Rights Agent
be inferred from the terms of such agreements, instruments or documents even though reference thereto may be made in this Agreement;

 

(g)
notwithstanding anything in this Agreement to the contrary, (i) the Rights Agent shall in no event be liable for special, punitive
or unforeseeable consequential damages (unless such damages are to third parties with respect to third party claims that result in a judgment
against the Rights Agent for such damages), and (ii) any liability of the Rights Agent, including, but not limited to, foreseeable consequential
damages, shall be limited to the amount of fees paid by the Company to the Rights Agent (excluding amounts paid to the Rights Agent as
reimbursement for expenses and other charges);

 

(h) the Rights Agent and
any of its affiliates may buy, sell or deal in any securities of the Company or the Parent or become peculiarly interested in any
transaction in which the Parent or the Company may be interested, or contract with or lend money to the Parent or the Company or
otherwise act as fully and freely as though it were not the Rights Agent under this Agreement. Nothing herein shall preclude the
Rights Agent from acting in any other capacity for the Parent or the Company or for any other Person; and

 

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(i)
the Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either
itself (through its directors, officers and employees) or by or through its attorneys or agents; provided that the Rights Agent shall
be liable for breaches of this Agreement by such directors, officers, employees, attorneys or agents.

 

Section 3.3
Indemnity and Expenses.

 

(a)
The Company agrees to indemnify, defend and hold harmless each Shareholder Representative Person and the Rights Agent for, and
to hold each Shareholder Representative Person and the Rights Agent harmless against, any loss, liability, judgment, fine, penalty, claim,
demand, suit, cost, damage or expense, including reasonable out-of-pocket expenses (including the reasonable costs and expenses of legal
counsel) arising out of or in connection with the Rights Agent’s and the Shareholder Representative’s respective duties under
this Agreement, including the reasonable out-of-pocket costs and expenses of defending the Rights Agent and each individual member of
the Committee that comprises or controls the Shareholder Representative against any claims, charges, demands, investigations, suits or
loss or liability, or enforcement of its rights hereunder, unless it shall have been finally determined by a judgment of a court of competent
jurisdiction to be a direct result of the Rights Agent’s or such Shareholder Representative Person’s, as applicable, gross
negligence, bad faith or willful or intentional misconduct. The right to indemnification conferred in this Section 3.3(a) shall
include the right to be paid or reimbursed by the Company for the reasonable expenses incurred by such Person entitled to be indemnified
under this Section 3.3(a) who was, or is threatened to be made a named defendant or respondent in a claim, charge, demand, investigation
or suit in advance of the final disposition thereof and without any determination as to the Person’s ultimate entitlement to indemnification.
The rights granted pursuant to this Section 3.3(a) shall be deemed contract rights, and no amendment, modification or repeal of
this Section 3.3(a) shall have the effect of limiting or denying any such rights with respect to claims, charges, demands, investigations
and suits arising prior to any such amendment, modification or repeal. The Shareholder Representative Person’s aggregate liability
to any Person with respect to, arising from, or arising in connection with this Agreement, or from all services provided or omitted to
be provided under this Agreement, whether in contract, or in tort, or otherwise, is limited to, and shall not exceed, the amounts paid
hereunder by the Company to the Shareholder Representative as fees and charges, but not including reimbursable expenses. Indemnification
under this Section 3.3(a) shall continue as to a Person who has ceased to serve in the capacity which initially entitled such Person
to indemnity hereunder. Any such amounts incurred by the Company in connection with this Section 3.3(a) shall be a ModusLink Sale
Expense.

 

    15

     

    

 

(b) The Company or any of
its Affiliates shall, if and as requested by the Shareholder Representative at any time from and after the Effective Time through
the termination of this Agreement, pay to or at the direction of the Shareholder Representative fees and expenses incurred at the
direction of the Shareholder Representative pursuant to this Agreement (“Shareholder Representative Reimbursement
Amount”). Subject to the next sentence, the Company or any of its Affiliates shall, if and as requested by the Shareholder
Representative at any time from and after the Effective Time through the termination of this Agreement, transfer to a joint account
of the Company and the Shareholder Representative funds in the amount of $100,000 less the Shareholder Representative Reimbursement
Amount actually paid through that date for use as directed by the Shareholder Representative (the “Shareholder
Representative Expense Amount”) pursuant to this Agreement. If any amounts are required in excess of $100,000 (and, to the
extent the Shareholder Representative Expense Amount has been funded, only after such amount has been fully expended), then at the
request of the Shareholder Representative from time to time, the Company or an Affiliate of the Company will promptly pay such
additional fees and expenses incurred at the direction of the Shareholder Representative pursuant to this Agreement and/or pre-fund
to such joint account an amount reasonably specified by the Shareholder Representative in respect of expected expenses in connection
with the ModusLink Sale (including payments to such advisors as the Shareholder Representative may choose to engage in connection
with the ModusLink Sale) and performance of its obligations and duties hereunder (any such amount, a “Pre-Funded
Amount”). Any amounts held in such joint account shall be treated as owned by the Company for all income tax purposes, any
interest or other income earned with respect to such joint account shall be reported as income of the Company for tax purposes and,
for the avoidance of doubt, no portion of the Shareholder Representative Reimbursement Amount, the Shareholder Representative
Expense Amount or any Pre-Funded Amount shall be considered income to the Shareholder Representative for tax purposes. The parties
hereto will prepare all Tax Returns in a manner consistent with the foregoing sentence. Any Shareholder Representative Reimbursement
Amount and any amounts (and only such amounts) actually spent from the Shareholder Representative Expense Amount or Pre-Funded
Amounts shall be included in the calculation of ModusLink Sale Expenses hereunder. Any funds from the Shareholder Representative
Expense Amount or Pre-Funded Amounts that remain unused on the earlier of the consummation of the Entire ModusLink Sale and the Sale
Deadline (taking into account the completion of the procedures set forth in Section 2.4) shall be distributed from the joint
account to the Company five (5) Business Days after the payment of the ModusLink CVR Payment Amount. For the avoidance of doubt, the
Company or one of its Affiliates shall pay all ModusLink Sales Expenses, including any such ModusLink Sale Expenses incurred at the
direction of the Shareholder Representative, subject to the deduction of such ModusLink Sale Expenses from the payments to the
Holders as is provided for hereunder. Notwithstanding the foregoing, after the completion of an Entire ModusLink Sale, the
Company’s consent, which shall not be unreasonably withheld, will be required for any fees or expenses that the Shareholder
Representative may wish to incur pursuant to this Section 3.3(b), to the extent that the aggregate amount of such fees and
expenses would exceed the amount of deferred consideration reasonably expected from such Entire ModusLink Sale.

 

(c) The Company agrees, in
all events (i) to pay the fees and expenses of the Rights Agent in connection with this Agreement as set forth on Schedule 3.3(c)
hereto and (ii) to reimburse the Rights Agent for all taxes and governmental charges (other than taxes measured by the Rights
Agent’s income) and reasonable and customary out-of-pocket expenses (including reasonable and customary fees and expenses of
the Rights Agent’s counsel) paid or incurred by the Rights Agent in connection with the preparation, delivery, amendment,
administration and execution of this Agreement and the exercise and performance of its duties hereunder. Any invoice for any
out-of-pocket expenses and per item fees realized will be rendered and payable by the Company within thirty (30) days after receipt
by the Company, except for postage and mailing expenses, which funds must be received one (1) Business Day prior to the scheduled
mailing date. For the avoidance of doubt, such fees, expenses and reimbursements contained in this Section 3.3 shall be
ModusLink Sale Expenses.

 

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Section 3.4
Resignation and Removal of Rights Agent and Shareholder Representative; Appointment of Successor.

 

(a)
The Rights Agent may resign at any time by giving written notice thereof to the Company (with a copy to Parent) and the Shareholder
Representative specifying a date when such resignation shall take effect, which notice shall be sent at least thirty (30) days prior to
the date so specified. Any individual members of the committee that comprises or controls the Shareholder Representative may resign at
any time by giving written notice thereof to the Company (with a copy to Parent), the Rights Agent and the Holders specifying a date when
such resignation shall take effect, which notice shall be sent at least thirty (30) days prior to the date so specified.

 

(b)
If at any time the Rights Agent shall resign, be removed or become incapable of acting, the Company, by a Board Resolution, shall
promptly appoint a qualified successor Rights Agent reasonably satisfactory to the Shareholder Representative. The successor Rights Agent
so appointed shall, upon its acceptance of such appointment in accordance with this Section 3.4(b), become the successor Rights
Agent.

 

(c)
If (i) a successor Rights Agent has not been appointed pursuant to Section 3.4(b) and has not accepted such appointment
within thirty (30) days after the initial Rights Agent delivers notice of its resignation pursuant to Section 3.4(a) or (ii) at
any time the Rights Agent shall become incapable of acting, the incumbent Rights Agent, the Shareholder Representative or the Company
may petition any court of competent jurisdiction for the removal of the Rights Agent, if applicable, and the appointment of a successor
Rights Agent.

 

(d)
If at any time any individual members of the committee that comprises or controls the Shareholder Representative shall resign,
be removed or become incapable of acting, the remaining members of the committee that comprises or controls the Shareholder Representative
shall promptly appoint a qualified successor individual member to such committee. If the individual members of the committee that comprises
or controls the Shareholder Representative unanimously determine that a third committee member would be appropriate, then the members
of the committee that comprises or controls the Shareholder Representative shall appoint, upon unanimous agreement, a qualified individual
member to such committee. The successor or additional individual member so appointed shall, forthwith upon its acceptance of such appointment
in accordance with this Section 3.4(d), become a successor or additional individual member of the committee comprising the Shareholder
Representative; provided, that (x) such successor or additional individual member of the committee comprising the Shareholder Representative
may not be a director, officer or employee of the Company or any of its Affiliates and (y) the Company agrees to indemnify the Shareholder
Representative for any and all actions taken in connection with this Section 3.4(d).

 

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(e) The Company shall give
written notice of each resignation and each removal of a Rights Agent or individual member of the committee comprising the
Shareholder Representative and each appointment of a successor Rights Agent or individual member of the committee comprising the
Shareholder Representative to the then acting members of the committee comprising the Shareholder Representative or then acting
Rights Agent, as applicable, within ten (10) days after acceptance of appointment by a successor Rights Agent or individual member
of the committee comprising the Shareholder Representative. If requested, the Rights Agent (or successor Rights Agent) shall mail
notice of each resignation and each removal of a Rights Agent or individual member of the committee comprising the Shareholder
Representative and each appointment of a successor Rights Agent or individual member of the committee comprising the Shareholder
Representative to the Holders within ten (10) days after receipt of notice thereof and all necessary information from the Company.
Each such notice provided to the Rights Agent, Shareholder Representative, or Holders shall include the name and address of the
successor Rights Agent or Shareholder Representative, as applicable.

 

Section 3.5
Acceptance of Appointment by Successor.

 

Every successor Rights Agent
or Shareholder Representative appointed hereunder shall execute, acknowledge and deliver to the Company and to the retiring Rights Agent
or Shareholder Representative, as applicable, an instrument accepting such appointment and a counterpart of this Agreement, and thereupon
such successor Rights Agent or Shareholder Representative, without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Rights Agent or Shareholder Representative (as applicable); but, on request of the Company
or the successor Rights Agent, such retiring Rights Agent shall execute and deliver an instrument transferring to such successor Rights
Agent all the rights, powers and trusts of the retiring Rights Agent.

 

Article
IV

ADDITIONAL COVENANTS

 

Section 4.1
Operations.

 

From and after the Effective
Time until the consummation of the Entire ModusLink Sale or the Sale Deadline, whichever is earlier, (i) the Company shall, upon request
of the Shareholder Representative and to the extent legally permissible (and subject to the Shareholder Representative’s entry into
a customary non-disclosure agreement to the extent required by applicable Law or any agreements binding on the Company with respect to
ModusLink), reasonably promptly provide to the Shareholder Representative all information reasonably requested relating to ModusLink,
and (ii) the Company shall use commercially reasonable efforts to procure that (A) the ModusLink Business will be operated substantially
in the ordinary course of business consistent with past practice and (B) ModusLink will distribute any proceeds received with respect
to any Partial ModusLink Sale or the Entire ModusLink Sale to the Company or any Company Subsidiary such that it may be distributed to
the Holders.

 

Section 4.2
List of Holders.

 

The Company shall
furnish or cause to be furnished to the Rights Agent, in such form as the Company receives from the transfer agent of the Company,
or from such other agent performing similar services for the Company, or from the Company’s internal records with regard to
the capitalization of the Company, including without limitation the names and addresses of the Holders and the number of CVRs held
by each such Holder, within five (5) Business Days of the Effective Time.

 

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Section 4.3
ModusLink Sale Process.

 

From and after the Effective
Time until the consummation of the Entire ModusLink Sale or the Sale Deadline, whichever is earlier, Parent shall be responsible for conducting
the sale process of ModusLink (or, to the extent a ModusLink Sale involving a sale of Equity Interests is contemplated, responsible for
overseeing and making any decisions on behalf of the Company with respect to such sale process of ModusLink) and shall be empowered to
take all actions necessary or advisable in order to consummate a ModusLink Sale, including retaining advisors in connection with the ModusLink
Sale, soliciting potential purchasers for the Equity Interests owned by the Company and any Company Subsidiary and determining which purchaser
to select, negotiating the terms and conditions of any ModusLink Sale Agreement, including the purchase price for the Equity Interests
owned by the Company and any Company Subsidiary, complying with any applicable provisions of ModusLink’s governing documents (including
the By-Laws), including with respect to rights of first refusal or similar provisions, and effectuating the consummation of such ModusLink
Sale.

 

Section 4.4
Books and Records.

 

The Company shall, and shall
cause its Subsidiaries to, use commercially reasonable efforts to keep true, complete and accurate records in sufficient detail to enable
the Shareholder Representative and its consultants or professional advisors to determine the amounts payable hereunder.

 

Article
V

AMENDMENTS

 

Section 5.1
Amendments Without Consent of Holders.

 

(a)
Without the consent of any Holders, the Rights Agent, or the Shareholder Representative, the Company (when authorized by a Board
Resolution), at any time and from time to time, may enter into one or more amendments hereto, subject to Section 6.1, to evidence
the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company herein.

 

(b)
Without the consent of any Holders, the Company (when authorized by a Board Resolution), the Shareholder Representative and the
Rights Agent, at any time and from time to time, may enter into one or more amendments hereto, for any of the following purposes:

 

(i)
to evidence the removal or replacement of the Rights Agent or any individual member of the committee comprising the Shareholder
Representative and the succession of another Person as a successor Rights Agent or individual member of the committee comprising or controlling
the Shareholder Representative, as applicable, and the assumption by any successor of the obligations of the Rights Agent or Shareholder
Representative, as applicable, herein, in accordance with Sections 3.4 and 3.5;

 

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(ii)
 to add to the covenants of the Company such further covenants, restrictions, conditions or provisions as the Company, the Rights
Agent and the Shareholder Representative shall consider to be for the protection of the Holders; provided, that, in each case,
such provisions shall not adversely affect the interests of the Holders as determined by the Shareholder Representative;

 

(iii)
to cure any ambiguity, to correct or supplement any provision herein that may be defective or inconsistent with any other provision
herein, or to make any other provisions with respect to matters or questions arising under this Agreement; provided, that, in each
case, such provisions shall not adversely affect the interests of the Holders as determined by the Shareholder Representative; or

 

(iv) as may be necessary
to ensure that the CVRs are not subject to registration under the Securities Act or the Exchange Act.

 

(c)
Promptly after the execution by the Company (and the Rights Agent, as applicable), of any amendment pursuant to the provisions
of this Section 5.1, the Company will mail (or cause the Rights Agent to mail) a notice thereof by first class mail to the Holders
at their addresses as they appear on the CVR Register, setting forth such amendment.

 

Section 5.2
Amendments with Consent of the Shareholder Representative.

 

(a)
With the written consent of the Shareholder Representative, the Company (when authorized by a Board Resolution), the Shareholder
Representative and the Rights Agent may enter into one or more amendments hereto for the purpose of adding, eliminating or changing any
provisions of this Agreement, even if such addition, elimination or change is adverse to the interest of the Holders.

 

(b)
Promptly after the execution by the Company, the Shareholder Representative and the Rights Agent of any amendment pursuant to the
provisions of this Section 5.2, the Company will mail (or cause the Rights Agent to mail) a notice thereof by first class
mail to the Holders at their addresses as they appear on the CVR Register, setting forth such amendment.

 

Section 5.3
Execution of Amendments.

 

In executing any amendment
permitted by this ARTICLE V, the Rights Agent will be entitled to receive, and will be fully protected in relying upon, an opinion of
counsel selected by the Company stating that the execution of such amendment is authorized or permitted by this Agreement. The Rights
Agent may, but is not obligated to, enter into any such amendment that affects the Rights Agent’s own rights, privileges, covenants
or duties under this Agreement or otherwise.

 

Section 5.4
Effect of Amendments.

 

Upon the execution of
any amendment permitted under this ARTICLE V, this Agreement shall be modified in accordance therewith, such amendment shall form a
part of this Agreement for all purposes and each Holder, Parent, the Company, the Shareholder Representative and the Rights Agent
shall be bound thereby.

 

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Article
VI

CONSOLIDATION, MERGER, SALE OR CONVEYANCE

 

Section 6.1
Company Consolidation, Merger, Sale or Conveyance.

 

(a)
From and after the Effective Time until such time as all of the Company’s payment obligations shall have been discharged,
the Company shall not consolidate with or merge into any other Person or convey, assign, transfer or lease its properties and assets substantially
as an entirety to any Person, unless:

 

(i)
in the case that the Company shall consolidate with or merge into any other Person or convey, assign, transfer or lease its properties
and assets substantially as an entirety to any Person, the Person formed by such consolidation or into which the Company is merged or
the Person that acquires by conveyance or transfer, or that leases, the properties and assets of the Company substantially as an entirety
(the “Surviving Person”) shall expressly assume payment of amounts on all the CVRs and the performance of every duty
and covenant of this Agreement on the part of the Company to be performed or observed; and

 

(ii)
prior to such transaction, the Company has delivered to the Shareholder Representative an Officer’s Certificate stating that
such consolidation, merger, conveyance, transfer or lease complies with this ARTICLE VI and that all conditions precedent herein provided
for relating to such transaction have been complied with.

 

(b)
For purposes of this Section 6.1, “convey, transfer or lease its properties and assets substantially as an entirety”
shall mean properties and assets contributing in the aggregate at least a majority of the Company’s and its Subsidiaries’
total consolidated revenues as reported in the last available periodic financial report (quarterly or annual, as the case may be).

 

(c)
In the event the Company conveys, transfers or leases its properties and assets substantially as an entirety in accordance with
the terms and conditions of this Section 6.1, the Company and the Surviving Person shall be jointly and severally liable for the
payment of the ModusLink CVR Payment Amount and the performance of every duty and covenant of this Agreement on the part of the Company
to be performed or observed. Notwithstanding anything to the contrary contained herein, no consolidation, merger, sale, conveyance or
assignment involving the Company shall relieve the Company of its obligations and liabilities to the Rights Agent hereunder, unless by
written consent of the Rights Agent, such consent not to be unreasonably withheld, conditioned or delayed.

 

Section 6.2
Successor Substituted.

 

Upon any consolidation
of or merger by the Company with or into any other Person, or any conveyance, transfer or lease of the properties and assets
substantially as an entirety to any Person in accordance with Section 6.1, the Surviving Person shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under this Agreement with the same effect as if the
Surviving Person had been named as the Company herein; provided, that notwithstanding any such transaction, if the Company is
a surviving entity in the transaction, the Company shall also remain liable for the performance by the “Company”
hereunder.

 

    21

     

    

 

Article
VII

OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 7.1
Notices to Parent, the Company, the Shareholder Representative and the Rights Agent.

 

All communications, notices
and disclosures required or permitted by this Agreement shall be in writing and will be deemed to have been given when delivered by first
class mail or one (1) Business Day after having been dispatched for next-day delivery by a nationally recognized overnight courier service
to the appropriate party at the address specified below:

 

If to the Company or Parent, to:

 

	 	 	 
	 	 	 
	 	Attention: 	 	 
	 	Email:	 	 
	 	 	 	 
	 	with a copy (which shall not constitute notice) to:
	 	 	 
	 	 	 
	 	 	 
	 	Attention:	 	 
	 	Email:	 	 

 

If to the Shareholder Representative, to:  

 

	 	 	 
	 	 	 
	 	Attention:	 	 
	 	Email:	 	 
	 	 	 	 
	 	With copies (which shall not constitute notice) to:
	 	 	 	 
	 	 	 
	 	 	 
	 	Attention:
  	 	 
	 	Email:	 	 

 

If to the Rights Agent, to:  

 

	 	 	 	 
	 	 	 
	 	 	 
	 	Attention:	 	 
	 	Email:	             	 

 

    22

     

    

 

	 	With a copy to:	 
	 	 	 	 
	 	 	 
	 	 	 
	 	Attention:
  	   	 
	 	Email:	 	 

 

Section 7.2 Notice to Holders.

 

Where this Agreement provides
for notice to Holders, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing, sent by overnight
courier (providing proof of delivery) or mailed, first-class postage prepaid, to each Holder affected by such event, at his, her or its
address as it appears in the CVR Register, not later than the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in
any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders.

 

Section 7.3
Counterparts; Headings.

 

This Agreement may be executed
in one or several counterparts (whether by facsimile, pdf or otherwise), each of which shall be deemed an original, but such counterparts
shall together constitute but one and the same Agreement and shall become effective when counterparts have been signed by each of the
parties and delivered to the other parties (including by facsimile or other electronic image scan transmission). The Article and Section
headings in this Agreement are inserted for convenience of reference only and shall not constitute a part hereof.

 

Section 7.4
Assignment; Successors.

 

(a)
Subject to Section 6.1, neither this Agreement nor any of the rights, interests or obligations under this Agreement may
be assigned by any of the parties (whether by operation of Law or otherwise) without the prior written consent of the other parties; provided,
that any entity into which the Rights Agent may be merged or consolidated, or any entity resulting from any merger or consolidation to
which the Rights Agent shall be a party, or any entity to which the Rights Agent shall sell or otherwise transfer all or substantially
all of its assets and business, shall be the successor Rights Agent under this Agreement upon the delivery of notice to the other parties
hereto. Subject to the preceding sentence, this Agreement shall be binding upon, inure to the benefit of and be enforceable by all of
the parties and their respective successors and assigns; provided, that this Agreement may not be enforced directly by any Holder
but may only be enforced on behalf of the Holders by the Shareholder Representative.

 

Section 7.5
Benefits of Agreement.

 

Except as set forth in
ARTICLE III with respect to the Shareholder Representative Persons or the Rights Agent, nothing in this Agreement, is intended to or
be deemed to confer upon any Person other than the parties hereto and their respective successors and permitted assigns any rights
or remedies hereunder. The Shareholder Representative shall be the sole and exclusive representative of the Holders for all matters
in connection with this Agreement and this Agreement may not be enforced directly by any Holder but may only be enforced on behalf
of the Holders by the Shareholder Representative.

 

    23

     

    

 

Section 7.6
Governing Law.

 

This Agreement shall be governed
by and construed in accordance with the Laws of the State of Delaware, without regard to Laws that may be applicable under conflicts of
laws principles (whether of the State of Delaware or any other jurisdiction) that would cause the application of the Laws of any jurisdiction
other than the State of Delaware. Other than with respect to disputes submitted to the Neutral Auditor under Section 2.4(g), each
party hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the Court of Chancery
in the State of Delaware and any appellate court thereof, in any action or proceeding arising out of or relating to this Agreement or
the transactions contemplated hereby or for recognition or enforcement of any judgment relating thereto, and each of the parties hereby
irrevocably and unconditionally (i) agrees not to commence any such action or proceeding except in such court, (ii) agrees that any claim
in respect of any such action or proceeding may be heard and determined in such Delaware court, (iii) waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any such action or proceeding
in such Delaware court, and (iv) waives, to the fullest extent permitted by Law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in such Delaware court. Each of the parties agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. Each party
to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 7.1. Nothing in this
Agreement will affect the right of any Party to this Agreement to serve process in any other manner permitted by Law.

 

Section 7.7
Waiver of Jury Trial.

 

EACH PARTY ACKNOWLEDGES AND
AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE
IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THIS AGREEMENT AND ANY OF THE AGREEMENTS DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE EITHER OF SUCH WAIVERS, (II) IT UNDERSTANDS
AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVERS, (III) IT MAKES SUCH WAIVERS VOLUNTARILY, AND (IV) IT HAS BEEN INDUCED TO ENTER INTO
THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.7.

 

    24

     

    

 

Section 7.8 Remedies.

 

The parties hereto agree that
irreparable damage would occur in the event that the parties hereto do not perform their obligations under the provisions of this Agreement
(including failing to take such actions as are required of them hereunder) in accordance with its specified terms or otherwise breach
such provisions. The parties acknowledge and agree that prior to the termination of this Agreement in accordance with Section 7.10,
(a) the Parties shall be entitled to an injunction, specific performance, or other equitable relief, to prevent breaches of this Agreement
and to enforce specifically the terms and provisions hereof without proof of damages or the posting of any collateral, bond or other security,
this being in addition to any other remedy available at law, in equity, under this Agreement or otherwise and (b) the right of injunctive
relief, specific enforcement and other equitable relief is an integral part of this Agreement and transactions related hereto. The parties
also agree that the non-prevailing party (as determined by a court of competent jurisdiction in a final, non-appealable order) in any
litigation relating to the enforcement of this Agreement shall reimburse the prevailing party for all costs incurred by the prevailing
party (including reasonable legal fees in connection with any litigation). To the extent the Shareholder Representative is the non-prevailing
party, its reimbursement obligation under this Section 7.8 shall be a ModusLink Sale Expense.

 

Section 7.9
Severability Clause.

 

If any term or other provision
of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced by any rule
of Law or public policy, all other terms, provisions and conditions of this Agreement shall nevertheless remain in full force and effect.
Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible to the fullest
extent permitted by applicable Law in an acceptable manner to the end that the transactions contemplated by the Merger Agreement and this
Agreement are fulfilled to the extent possible.

 

Section 7.10
Termination.

 

This Agreement and each CVR
shall be terminated and of no further force or effect, and the parties hereto shall have no liability hereunder, upon the earliest to
occur of (i) the date that is one (1) year following the Sale Deadline, or (ii) the written agreement of the Company and the Shareholder
Representative to terminate this Agreement. Notice of any such termination will be promptly mailed by the Rights Agent, upon the written
request of the Company and the Shareholder Representative and accompanied by the form of such notice, to the Holders. Notwithstanding
anything to the contrary contained in this Agreement, Section 3.1, Section 3.2, Section 3.3, and this ARTICLE VII
shall survive the termination of this Agreement indefinitely and the resignation, replacement or removal of the Rights Agent.

 

    25

     

    

 

Section 7.11
Entire Agreement.

 

This Agreement, the
Merger Agreement, all documents and instruments referenced herein and therein, and all exhibits and schedules attached to the
foregoing, constitute the entire agreement of the parties (other than the Rights Agent) and supersede all other prior agreements and
understandings, both written and oral, among the parties, or any of them, with respect to the subject matter hereof and thereof. If
and to the extent that any provision of this Agreement is inconsistent or conflicts with the Merger Agreement, this Agreement shall
govern and be controlling. Notwithstanding the foregoing, as between the Rights Agent, on the one hand, and any other person or
entity, on the other hand, this Agreement alone constitutes the entire understanding and agreement of such parties with respect to
the subject matter of this Agreement.

 

Section 7.12
Suits for Enforcement.

 

In a case where breach has
occurred, has not been waived and is continuing, the Shareholder Representative may in its discretion proceed to protect and enforce the
rights vested in it by this Agreement by such appropriate judicial proceedings as the Shareholder Representative shall deem most effectual
to protect and enforce any of such rights (unless authorization and/or appearance of each of the Holders is required by applicable Law),
either at Law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained
in this Agreement or in aid of the exercise of any power granted in this Agreement or to enforce any other legal or equitable right vested
in the Shareholder Representative by this Agreement or by Law. Notwithstanding anything to the contrary contained in this Agreement, any
liability of any of the parties hereunder (including the Shareholder Representative) for breach of its obligations under this Agreement
shall not (other than in connection with fraud or willful misconduct, or third party claims from third parties arising out of such party’s
breach of this Agreement) include any unforeseeable and remote indirect or consequential damages, or any special or punitive damages.
Subject to the immediately preceding sentence, any liability of the Company may include the benefit of the bargain lost by the Holders
to the extent proximately caused by such breach (taking into consideration relevant matters, including the total amount payable to such
Holders under this Agreement but for such breach, the time value of money, and any costs, fees and expenses incurred by the Shareholder
Representative Persons in connection therewith) which shall be deemed in such event to be damages recoverable by the Shareholder Representative
for the benefit of the Holders. With respect to any party other than the Company, under no circumstances shall such party be liable for
monetary damages hereunder.

 

[Remainder of Page Intentionally Left Blank]

 

    26

     

    

 

IN WITNESS WHEREOF, each of
the parties has caused this Agreement to be executed on its behalf by its duly authorized officers as of the day and year first above
written.

 

	 	STEEL PARTNERS HOLDINGS L.P.
	 	 	 	 
	 	By:	Steel Partners Holdings GP Inc., its general partner
	 	 	 	 
	 	By:	    
	 	 	Name:	                
	 	 	Title:	 
	 	 	 	 
	 	STEEL CONNECT, INC.
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	[SHAREHOLDER REPRESENTATIVE]
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	[RIGHTS AGENT]
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

[Signature Page to CVR Agreement]

 

     

     

    

 

EXHIBIT A

 

Form of Transfer Certificate

 

See attached.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

TRANSFER CERTIFICATE

 

Steel Connect, Inc.

[●]

[●]

Attn: [●]

 

[RIGHTS AGENT]

[●]

[●]

Attention: [●]

 

		Re:	CVRs issued by Steel Connect, Inc.

 

Ladies and Gentlemen:

 

As Holder intends to transfer the above captioned
CVR to (“Permitted Transferee”), for registration in the name of.

 

1. In
connection with such transfer and in accordance with Section 2.3(c) of the Contingent Value Rights Agreement, dated as of [●],
2022, entered into by and among Steel Partners Holdings L.P., a Delaware limited partnership, Steel Connect, Inc., a Delaware corporation,
[●], as rights agent, and the Shareholder Representative (the “Agreement”),
the Holder hereby certifies that this transfer is a Permitted Transfer and that the Permitted Transferee is permitted to hold the CVRs
in accordance with the terms of the Agreement.

 

2. The
transfer is a Permitted Transfer for the following reason:

 

[Check the appropriate box and initial any
applicable substatement]

 

		☐	The CVRs are being transferred as a result of the death of a Holder by will or intestacy.

 

An official copy of the death certificate of the
Holder and such Holder’s last will and testament and a signed copy of Letters Testamentary, Letters of Administration or equivalent
document dated within 60 days are being provided herewith.

 

An official copy of the death certificate of the
Holder is being provided herewith; the Holder has no will and the CVRs are passing via the rules of intestacy.

 

		☐	The CVRs are being transferred by instrument to an inter vivos or testamentary trust in which the CVRs
are to be passed to beneficiaries upon the death of the trustee. The trustee is the Holder immediately prior to the transfer. Official
copies of the death certificates and applicable trust documents authorizing distribution to the named beneficiaries are being provided
herewith.

 

    A-1

     

    

 

		☐	The CVRs are being transferred pursuant to a court order (including a court order issued in connection
with divorce, bankruptcy or liquidation). A copy of the court order and, if appointed, evidence of appointment as: Tutor, Guardian, Conservator,
Committee, Attorney or Agent dated within 60 days are being provided herewith.

 

		☐	The Holder is a corporation and the CVRs are being transferred pursuant to a distribution by the Holder
to its stockholders. Such distribution does not subject the CVRs to a requirement of registration under the Securities Act or the Exchange
Act and the company has reasonably determined after consultation with counsel that such distribution does not subject the CVRs to a requirement
of registration under the Securities Act or the Exchange Act. A copy of the unanimous written consent of the board of the company or an
executed copy of the corporate resolution dated within 180 days authorizing and approving such distribution (and authorizing the signing
officer to effect the transaction) and a certificate by or on behalf of the company stating that that such distribution does not subject
the CVRs to a requirement of registration under the Securities Act or the Exchange Act are being provided herewith. Evidence of such Permitted
Transferee being a shareholder of the Holder is also being provided herewith. The corporate resolution, if provided, is not executed solely
by the signing officer.

 

		☐	The Holder is a partnership and the CVRs are being transferred pursuant to a distribution by the Holder
to its partners. Such distribution does not subject the CVRs to a requirement of registration under the Securities Act or the Exchange
Act. A copy of the current partnership agreement is being provided herewith, together with evidence of the authority of any signatory
on behalf of the partnership.

 

		☐	The Holder is a limited liability company and the CVRs are being transferred pursuant to a distribution
by the Holder to its members. Such distribution does not subject the CVRs to a requirement of registration under the Securities Act or
the Exchange Act. A copy of the operating agreement is being provided herewith, together with an executed copy of the resolution dated
within 180 days authorizing the signing managing member/manager to effect the transaction. If the limited liability company has more than
one managing member/manager, this resolution is not executed solely by the signing managing member/manager.

 

		☐	The CVRs are being transferred by a transfer made by operation of law (including a consolidation, dissolution
or merger) or without consideration in connection with the dissolution, liquidation or termination of any corporation, limited liability
company, partnership or other entity. Documents sufficiently evidencing such activities are being provided herewith, together with, if
such transfer by operation of law requires shareholder or board of director or similar approval, an executed copy of the resolution dated
within 180 days authorizing the signing officer, managing member/manager or other signatory to effect the event. If such entity has more
than one signing officer, managing member/manager or other signatory, this resolution is not executed solely by the signing officer, managing
member/manager or other signatory.

 

3. If
not previously provided to the Rights Agent and if requested by the Rights Agent, a fully completed and executed Form W-9 or Form W-8,
as applicable, of the Permitted Transferee is being provided herewith.

 

4. All
capitalized terms used but not defined herein shall have such meanings as are ascribed to such terms in the Agreement.

 

5. By
execution hereof the Permitted Transferee agrees to be bound, as Holder, by all of the terms, covenants and conditions of the Agreement.

 

6. This
document may be executed in one or more counterparts and by the different parties hereof on separate counterparts, each of which, when
so executed, shall be deemed to be an original; such counterparts, together, shall constitute one and the same document. The Holder and
the Permitted Transferee both understand that the Rights Agent may require a Medallion Guarantee of Signature at a level acceptable to
the Rights Agent.

 

    A-2

     

    

 

IN WITNESS WHEREFORE, each
of the parties have caused this document to be executed individually or by their duly authorized officers or representatives as of the
date set forth below.

 

	 	 	 
	Holder	 	Permitted Transferee

 

	By:	 	 	By:	           
	Name:	 	 	Name:	 
	Title:	           	 	Title:	 
	Taxpayer Identification	 	Taxpayer Identification
	No.	 	 	No.	 
	Date:	 	 	Date:Document

Exhibit 10.1

VEEVA SYSTEMS INC.
2013 EQUITY INCENTIVE PLAN
ADOPTED AUGUST 21, 2013
Amended and restated effective [_______], 2022

VEEVA SYSTEMS INC.
2013 EQUITY INCENTIVE PLAN

ARTICLE 1.INTRODUCTION.
The Board adopted the Plan on August 21, 2013 and it was amended and restated, subject to stockholder approval to be effective as of the date of such stockholder approval. The purpose of the Plan is to promote the long-term success of the Company and the creation of stockholder value by (a) encouraging Service Providers to focus on critical long-range corporate objectives, (b) encouraging the attraction and retention of Service Providers with exceptional qualifications and (c) linking Service Providers directly to stockholder interests through increased stock ownership. The Plan seeks to achieve this purpose by providing for Awards in the form of Options (which may constitute ISOs or NSOs), SARs, Restricted Shares, Stock Units and Performance Cash Awards.
ARTICLE 2.ADMINISTRATION.
2.1General. The Plan may be administered by the Board or one or more Committees. Each Committee shall have the authority and be responsible for such functions as have been assigned to it.
2.2Reserved.
2.3Section 16. To the extent desirable to qualify transactions hereunder as exempt under Exchange Act Rule 16b-3, the transactions contemplated hereunder will be approved by the entire Board or a Committee of two or more “non-employee directors” within the meaning of Exchange Act Rule 16b-3.
2.4Powers of Administrator. Subject to the terms of the Plan, and in the case of a Committee, subject to the specific duties delegated to the Committee, the Administrator shall have the authority to (a) select the Service Providers who are to receive Awards under the Plan, (b) determine the type, number, vesting requirements and other features and conditions of such Awards, (c) determine whether and to what extent any Performance Goals have been attained, (d) interpret the Plan and Awards granted under the Plan, (e) make, amend and rescind rules relating to the Plan and Awards granted under the Plan, including rules relating to sub-plans established for the purposes of satisfying applicable foreign laws or for qualifying for favorable tax treatment under applicable foreign laws, (f) impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by a Participant of any Common Shares issued pursuant to an Award, including restrictions under an insider trading policy and restrictions as to the use of a specified brokerage firm for such resales, and (g) make all other decisions relating to the operation of the Plan and Awards granted under the Plan.
2.5Limitations on Administrator. The Administrator may not establish a program under which (i)  outstanding Awards are surrendered or cancelled in exchange for awards of the same type (which may have higher or lower exercise prices and different terms), awards of a different type, and/or cash, or (ii) the exercise price of an outstanding Award is reduced.
2.6Effect of Administrator’s Decisions. The Administrator’s decisions, determinations and interpretations shall be final and binding on all Participants and any other holders of Awards.
2.7Governing Law. The Plan shall be governed by, and construed in accordance with, the laws of the State of Delaware (except its choice-of-law provisions).

ARTICLE 3.SHARES AVAILABLE FOR GRANTS.
3.1Basic Limitation. Common Shares issued pursuant to the Plan may be authorized but unissued shares or treasury shares. The aggregate number of Common Shares issued under the Plan shall not exceed the sum of (a) the number of Common Shares reserved under the Company’s 2012 Equity Incentive Plan (the “2012 Plan”) that are not issued or subject to outstanding awards under the 2012 Plan on the IPO Date, (b) any Common Shares subject to outstanding options under the 2012 Plan and the Company’s 2007 Stock Plan (collectively, the “Predecessor Plans”) on the IPO Date that subsequently expire or lapse unexercised and Common Shares issued pursuant to awards granted under the Predecessor Plans that are outstanding on the IPO Date and that are subsequently forfeited to or repurchased by the Company and (c) the additional Common Shares described in Sections 3.2 and 3.3; provided, however, that no more than 30,789,290 Common Shares, in the aggregate, shall be added to the Plan pursuant to clauses (a) and (b). The number of Common Shares that are subject to Stock Awards outstanding at any time under the Plan may not exceed the number of Common Shares that then remain available for issuance under the Plan. The numerical limitations in this Section 3.1 shall be subject to adjustment pursuant to Article 9.

3.2Annual Increase in Shares.
(a)   Before the plan was amended and restated, as of the first business day of each fiscal year of the Company, commencing on February 1, 2014 and ending on February 1, 2022, the aggregate number of Common Shares that may be issued under the Plan shall automatically increase by a number equal to the least of (a) 5% of the total number of shares of all classes of the Company’s common stock actually issued and outstanding on the last business day of the prior fiscal year (excluding any rights to purchase Common Shares that may be outstanding, such as options or warrants), (b) 13,750,000 Common Shares (subject to adjustment pursuant to Article 9), or (c) a number of Common Shares determined by the Board.
(b)   After the amendment and restatement, as of the first business day of each fiscal year of the Company, commencing on February 1, 2023 and ending on February 1, 2032, the aggregate number of Common Shares that may be issued under the Plan shall automatically increase by a number equal to the least of (a) 5% of the total number of shares of all classes of the Company’s common stock actually issued and outstanding on the last business day of the prior fiscal year (excluding any rights to purchase Common Shares that may be outstanding, such as options or warrants), (b) 13,750,000 Common Shares (subject to adjustment pursuant to Article 9), or (c) a number of Common Shares determined by the Board.
3.3Shares Returned to Reserve. To the extent that Options, SARs or Stock Units are forfeited or expire for any other reason before being exercised or settled in full, the Common Shares subject to such Options, SARs or Stock Units shall again become available for issuance under the Plan. If SARs are exercised or Stock Units are settled, then only the number of Common Shares (if any) actually issued to the Participant upon exercise of such SARs or settlement of such Stock Units, as applicable, shall reduce the number available under Section 3.1 and the balance shall again become available for issuance under the Plan. If Restricted Shares or Common Shares issued upon the exercise of Options are reacquired by the Company pursuant to a forfeiture provision, repurchase right or for any other reason, then such Common Shares shall again become available for issuance under the Plan. Common Shares applied to pay the Exercise Price of Options or to satisfy tax withholding obligations related to any Award shall again become available for issuance under the Plan. To the extent that an Award is settled in 

cash rather than Common Shares, the cash settlement shall not reduce the number of Shares available for issuance under the Plan.
3.4Awards Not Reducing Share Reserve in Section 3.1. Any dividend equivalents paid or credited under the Plan with respect to Stock Units shall not be applied against the number of Common Shares that may be issued under the Plan, whether or not such dividend equivalents are converted into Stock Units. In addition, Common Shares subject to Substitute Awards granted by the Company shall not reduce the number of Common Shares that may be issued under Section 3.1, nor shall shares subject to Substitute Awards again be available for Awards under the Plan in the event of any forfeiture, expiration or cash settlement of such Substitute Awards.
3.5Code Section 422 Limits. Subject to adjustment in accordance with Article 9. No more than 30,789,290 Common Shares plus the additional Common Shares described in Section 3.2 may be issued under the Plan after its amendment and restatement upon the exercise of ISOs.
ARTICLE 4.ELIGIBILITY.
4.1Incentive Stock Options. Only Employees who are common-law employees of the Company, a Parent or a Subsidiary shall be eligible for the grant of ISOs. In addition, an Employee who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company or any of its Parents or Subsidiaries shall not be eligible for the grant of an ISO unless the additional requirements set forth in Code Section 422(c)(5) are satisfied.
4.2Other Awards. Awards other than ISOs may only be granted to Service Providers.
ARTICLE 5.OPTIONS.
5.1Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The Stock Option Agreement shall specify whether the Option is intended to be an ISO or an NSO. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical.
5.2Number of Shares. Each Stock Option Agreement shall specify the number of Common Shares subject to the Option, which number shall adjust in accordance with Article 9.
5.3Exercise Price. Each Stock Option Agreement shall specify the Exercise Price, which shall not be less than 100% of the Fair Market Value of a Common Share on the date of grant. The preceding sentence shall not apply to an Option that is a Substitute Award granted in a manner that would satisfy the requirements of Code Section 409A and, if applicable, Code Section 424(a).
5.4Exercisability and Term. Each Stock Option Agreement shall specify the date or event when all or any installment of the Option is to become vested and/or exercisable. The Stock Option Agreement shall also specify the term of the Option; provided that, except to the extent necessary to comply with applicable foreign law, the term of an Option shall in no event exceed 10 years from the date of grant. A Stock Option Agreement may provide for accelerated vesting 

and/or exercisability upon certain specified events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s Service.
5.5Death of Optionee. After an Optionee’s death, any vested and exercisable Options held by such Optionee may be exercised by his or her beneficiary or beneficiaries. Each Optionee may designate one or more beneficiaries for this purpose by filing the prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Optionee’s death. If no beneficiary was designated or if no designated beneficiary survives the Optionee, then any vested and exercisable Options held by the Optionee may be exercised by his or her estate.
5.6Modification or Assumption of Options. Within the limitations of the Plan, the Administrator may modify, reprice, extend or assume outstanding options or may accept the cancellation of outstanding options (whether granted by the Company or by another issuer) in return for the grant of new Options for the same or a different number of shares and at the same or a different exercise price or in return for the grant of a different type of Award. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, impair his or her rights or obligations under such Option.
5.7Buyout Provisions. The Administrator may at any time (a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case at such time and based upon such terms and conditions as the Administrator shall establish.
5.8Payment for Option Shares. The entire Exercise Price of Common Shares issued upon exercise of Options shall be payable in cash or cash equivalents at the time when such Common Shares are purchased. In addition, the Administrator may, in its sole discretion and to the extent permitted by applicable law, accept payment of all or a portion of the Exercise Price through any one or a combination of the following forms or methods:
(a)Subject to any conditions or limitations established by the Administrator, by surrendering, or attesting to the ownership of, Common Shares that are already owned by the Optionee with a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Common Shares as to which such Option will be exercised;
(b)By delivering (on a form prescribed by the Company) an irrevocable direction to a securities broker approved by the Company to sell all or part of the Common Shares being purchased under the Plan and to deliver all or part of the sales proceeds to the Company;
(c)Subject to such conditions and requirements as the Administrator may impose from time to time, through a net exercise procedure; or
(d)Through any other form or method consistent with applicable laws, regulations and rules.
ARTICLE 6.STOCK APPRECIATION RIGHTS.
6.1SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by a SAR Agreement between the Optionee and the Company. Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with 

the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical.
6.2Number of Shares. Each SAR Agreement shall specify the number of Common Shares to which the SAR pertains, which number shall adjust in accordance with Article 9.
6.3Exercise Price. Each SAR Agreement shall specify the Exercise Price, which shall in no event be less than 100% of the Fair Market Value of a Common Share on the date of grant. The preceding sentence shall not apply to a SAR that is a Substitute Award granted in a manner that would satisfy the requirements of Code Section 409A.
6.4Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become vested and exercisable. The SAR Agreement shall also specify the term of the SAR; provided that except to the extent necessary to comply with applicable foreign law, the term of a SAR shall not exceed 10 years from the date of grant. A SAR Agreement may provide for accelerated vesting and exercisability upon certain specified events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s Service.
6.5Exercise of SARs. Upon exercise of a SAR, the Optionee (or any person having the right to exercise the SAR after his or her death) shall receive from the Company (a) Common Shares, (b) cash or (c) a combination of Common Shares and cash, as the Administrator shall determine. The amount of cash and/or the Fair Market Value of Common Shares received upon exercise of SARs shall, in the aggregate, not exceed the amount by which the Fair Market Value (on the date of surrender) of the Common Shares subject to the SARs exceeds the Exercise Price. If, on the date when a SAR expires, the Exercise Price is less than the Fair Market Value on such date but any portion of such SAR has not been exercised or surrendered, then such SAR shall automatically be deemed to be exercised as of such date with respect to such portion. A SAR Agreement may also provide for an automatic exercise of the SAR on an earlier date.
6.6Death of Optionee. After an Optionee’s death, any vested and exercisable SARs held by such Optionee may be exercised by his or her beneficiary or beneficiaries. Each Optionee may designate one or more beneficiaries for this purpose by filing the prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Optionee’s death. If no beneficiary was designated or if no designated beneficiary survives the Optionee, then any vested and exercisable SARs held by the Optionee at the time of his or her death may be exercised by his or her estate.
6.7Modification or Assumption of SARs. Within the limitations of the Plan, the Administrator may modify, reprice, extend or assume outstanding SARs or may accept the cancellation of outstanding SARs (whether granted by the Company or by another issuer) in return for the grant of new SARs for the same or a different number of shares and at the same or a different exercise price or in return for the grant of a different type of Award. The foregoing notwithstanding, no modification of a SAR shall, without the consent of the Optionee, impair his or her rights or obligations under such SAR.
ARTICLE 7.RESTRICTED SHARES.
7.1Restricted Stock Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Stock Agreement between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Stock Agreements entered into under the Plan need not be identical.

7.2Payment for Awards. Restricted Shares may be sold or awarded under the Plan for such consideration as the Administrator may determine, including (without limitation) cash, cash equivalents, property, cancellation of other equity awards, fullrecourse promissory notes, past services and future services, and such other methods of payment as are permitted by applicable law.
7.3Vesting Conditions. Each Award of Restricted Shares may or may not be subject to vesting and/or other conditions as the Administrator may determine. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted Stock Agreement. Such conditions, at the Administrator’s discretion, may include one or more Performance Goals. A Restricted Stock Agreement may provide for accelerated vesting upon certain specified events.
7.4Voting and Dividend Rights. The holders of Restricted Shares awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other stockholders, unless the Administrator otherwise provides. A Restricted Stock Agreement, however, may require that any cash dividends paid on Restricted Shares (a) be accumulated and paid when such Restricted Shares vest, or (b) be invested in additional Restricted Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the shares subject to the Stock Award with respect to which the dividends were paid. In addition, unless the Administrator provides otherwise, if any dividends or other distributions are paid in Common Shares, such Common Shares shall be subject to the same restrictions on transferability and forfeitability as the Restricted Shares with respect to which they were paid.
ARTICLE 8.STOCK UNITS.
8.1Stock Unit Agreement. Each grant of Stock Units under the Plan shall be evidenced by a Stock Unit Agreement between the recipient and the Company. Such Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Stock Unit Agreements entered into under the Plan need not be identical.
8.2Payment for Awards. To the extent that an Award is granted in the form of Stock Units, no cash consideration shall be required of the Award recipients.
8.3Vesting Conditions. Each Award of Stock Units may or may not be subject to vesting, as determined by the Administrator. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock Unit Agreement. Such conditions, at the Administrator’s discretion, may include one or more Performance Goals. A Stock Unit Agreement may provide for accelerated vesting upon certain specified events.
8.4Voting and Dividend Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or forfeiture, Stock Units awarded under the Plan may, at the Administrator’s discretion, provide for a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on one Common Share while the Stock Unit is outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form of Common Shares, or in a combination of both. Prior to distribution, any dividend equivalents shall be subject to the same conditions and restrictions as the Stock Units to which they attach.
8.5Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of (a) Common Shares, (b) cash or (c) any combination of both, as 

determined by the Administrator. The actual number of Stock Units eligible for settlement may be larger or smaller than the number included in the original Award, based on predetermined performance factors, including Performance Goals. Methods of converting Stock Units into cash may include (without limitation) a method based on the average Fair Market Value of Common Shares over a series of trading days. Vested Stock Units shall be settled in such manner and at such time(s) as specified in the Stock Unit Agreement. Until an Award of Stock Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to Article 9.
8.6Death of Recipient. Any Stock Units that become payable after the recipient’s death shall be distributed to the recipient’s beneficiary or beneficiaries. Each recipient of Stock Units under the Plan may designate one or more beneficiaries for this purpose by filing the prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Award recipient’s death. If no beneficiary was designated or if no designated beneficiary survives the Award recipient, then any Stock Units that become payable after the recipient’s death shall be distributed to the recipient’s estate.
8.7Modification or Assumption of Stock Units. Within the limitations of the Plan, the Administrator may modify or assume outstanding stock units or may accept the cancellation of outstanding stock units (whether granted by the Company or by another issuer) in return for the grant of new Stock Units for the same or a different number of shares or in return for the grant of a different type of Award. The foregoing notwithstanding, no modification of a Stock Unit shall, without the consent of the Participant, impair his or her rights or obligations under such Stock Unit.
8.8Creditors’ Rights. A holder of Stock Units shall have no rights other than those of a general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Stock Unit Agreement.
ARTICLE 9.ADJUSTMENTS; DISSOLUTIONS AND LIQUIDATIONS; CORPORATE TRANSACTIONS.
9.1Adjustments. In the event of a subdivision of the outstanding Common Shares, a declaration of a dividend payable in Common Shares, a combination or consolidation of the outstanding Common Shares (by reclassification or otherwise) into a lesser number of Common Shares or any other increase or decrease in the number of issued Common Shares effected without receipt of consideration by the Company, proportionate adjustments shall automatically be made to the following:
(a)The number and kind of shares available for issuance under Article 3, including the numerical share limits in Sections 3.1, 3.2 and 3.5;
(b)The number and kind of shares covered by each outstanding Option, SAR and Stock Unit; or
(c)The Exercise Price applicable to each outstanding Option and SAR, and the repurchase price, if any, applicable to Restricted Shares.
In the event of a declaration of an extraordinary dividend payable in a form other than Common Shares in an amount that has a material effect on the price of Common Shares, a recapitalization, a spin-off or a similar occurrence, the Administrator may make such adjustments as it, in its sole discretion, deems appropriate to the foregoing.

Any adjustment in the number of shares subject to an Award under this Article 9 shall be rounded down to the nearest whole share, although the Administrator in its sole discretion may make a cash payment in lieu of a fractional share. Except as provided in this Article 9, a Participant shall have no rights by reason of any issuance by the Company of stock of any class or securities convertible into stock of any class, any subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class.
9.2Dissolution or Liquidation. To the extent not previously exercised or settled, Options, SARs and Stock Units shall terminate immediately prior to the dissolution or liquidation of the Company.
9.3Corporate Transactions. In the event that the Company is a party to a merger, consolidation, or a Change in Control (other than one described in Section 14.5(d)), all Common Shares acquired under the Plan and all Awards outstanding on the effective date of the transaction shall be treated in the manner described in the definitive transaction agreement (or, in the event the transaction does not entail a definitive agreement to which the Company is party, in the manner determined by the Administrator, with such determination having final and binding effect on all parties), which agreement or determination need not treat all Awards (or portions thereof) in an identical manner. Unless an Award Agreement provides otherwise, the treatment specified in the transaction agreement or by the Administrator may include (without limitation) one or more of the following with respect to each outstanding Award:
(a)The continuation of such outstanding Award by the Company (if the Company is the surviving entity);
(b)The assumption of such outstanding Award by the surviving entity or its parent, provided that the assumption of an Option or a SAR shall comply with applicable tax requirements;
(c)The substitution by the surviving entity or its parent of an equivalent award for such outstanding Award (including, but not limited to, an award to acquire the same consideration paid to the holders of Common Shares in the transaction), provided that the substitution of an Option or a SAR shall comply with applicable tax requirements;
(d)The cancellation of the unvested portion (after taking into account any vesting occurring at or prior to the effective time of the transaction) of any such outstanding Award without payment of any consideration;
(e)The cancellation of such Award and a payment to the Participant with respect to each share subject to the portion of the Award that is vested or becomes vested as of the effective time of the transaction equal to the excess of (A) the value, as determined by the Administrator in its absolute discretion, of the property (including cash) received by the holder of a Common Share as a result of the transaction, over (if applicable) (B) the per-share Exercise Price of such Award (such excess, if any, the “Spread”). Such payment shall be made in the form of cash, cash equivalents, or securities of the surviving entity or its parent having a value equal to the Spread. In addition, any escrow, holdback, earn-out or similar provisions in the transaction agreement may apply to such payment to the same extent and in the same manner as such provisions apply to the holders of Common Shares, but only to the extent the application of such provisions does not adversely affect the status of the Award as exempt from Code Section 409A. If the Spread applicable to an Award (whether or not vested) is zero or a negative number, then the Award may be cancelled without making a 

payment to the Participant. In the event that a Stock Unit is subject to Code Section 409A, the payment described in this clause (e) shall be made on the settlement date specified in the applicable Stock Unit Agreement, provided that settlement may be accelerated in accordance with Treasury Regulation Section 1.409A-3(j)(4); or
(f)The assignment of any reacquisition or repurchase rights held by the Company in respect of an Award of Restricted Shares to the surviving entity or its parent, with corresponding proportionate adjustments made to the price per share to be paid upon exercise of any such reacquisition or repurchase rights.
If (I) the Company is subject to a transaction described in this Section 9.3 before a Participant’s continuous Service terminates and (II) an outstanding Award is not continued, assumed or substituted in accordance with clause (a), (b) or (c) above, then a Participant who is entitled under an Award agreement, employment agreement or Company policy to vesting acceleration (a “Vesting Arrangement”) that could be triggered as of a date following the effective time of the transaction as a result of a qualifying termination of Service shall be deemed to be vested, to the extent provided in the relevant Vesting Arrangement, as if all triggering events had occurred as of the effective time of the transaction with respect to any such unvested Award that would otherwise terminate at or immediately prior to the effective time irrespective of whether or not a qualifying Service termination has occurred. It is intended that the previous sentence shall apply to Participants whose Vesting Arrangement provides for “double trigger” vesting acceleration and such Participants could be subjected to a Service termination triggering the acceleration after closing of the transaction at a time when the unvested portion of an Award will no longer exist.
Any action taken under this Section 9.3 shall either preserve an Award’s status as exempt from Code Section 409A or comply with Code Section 409A.
ARTICLE 10.OTHER AWARDS.
10.1Performance Cash Awards. A Performance Cash Award is a cash award that may be granted subject to the attainment of specified Performance Goals during a Performance Period. A Performance Cash Award may also require the completion of a specified period of continuous Service. The length of the Performance Period, the Performance Goals to be attained during the Performance Period, and the degree to which the Performance Goals have been attained shall be determined conclusively by the Administrator. Each Performance Cash Award shall be set forth in a written agreement or in a resolution duly adopted by the Administrator which shall contain provisions determined by the Administrator and not inconsistent with the Plan. The terms of various Performance Cash Awards need not be identical.
10.2Awards Under Other Plans. The Company may grant awards under other plans or programs. Such awards may be settled in the form of Common Shares issued under this Plan. Such Common Shares shall be treated for all purposes under the Plan like Common Shares issued in settlement of Stock Units and shall, when issued, reduce the number of Common Shares available under Article 3.
ARTICLE 11.LIMITATION ON RIGHTS.
11.1Retention Rights. Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to remain a Service Provider. The Company and its Parents and Subsidiaries reserve the right to terminate the Service of any Service Provider at any time, with or without cause, subject to applicable laws, the Company’s certificate of incorporation and by-laws and a written employment agreement (if any).

11.2Stockholders’ Rights. Except as set forth in Sections 7.4 or 8.4 above, a Participant shall have no dividend rights, voting rights or other rights as a stockholder with respect to any Common Shares covered by his or her Award prior to the time when a stock certificate for such Common Shares is issued or, if applicable, the time when he or she becomes entitled to receive such Common Shares by filing any required notice of exercise and paying any required Exercise Price. No adjustment shall be made for cash dividends or other rights for which the record date is prior to such time, except as expressly provided in the Plan.
11.3Regulatory Requirements. Any other provision of the Plan notwithstanding, the obligation of the Company to issue Common Shares under the Plan shall be subject to all applicable laws, rules and regulations and such approval by any regulatory body as may be required. The Company reserves the right to restrict, in whole or in part, the delivery of Common Shares pursuant to any Award prior to the satisfaction of all legal requirements relating to the issuance of such Common Shares, to their registration, qualification or listing or to an exemption from registration, qualification or listing. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed necessary by the Company’s counsel to be necessary to the lawful issuance and sale of any Common Shares hereunder, will relieve the Company of any liability in respect of the failure to issue or sell such Common Shares as to which such requisite authority will not have been obtained.
11.4Transferability of Awards. The Administrator may, in its sole discretion, permit transfer of an Award in a manner consistent with applicable law. Unless otherwise determined by the Administrator, Awards shall be transferable by a Participant only by (a) beneficiary designation, (b) a will or (c) the laws of descent and distribution. An ISO may only be transferred by will or by the laws of descent and distribution and may be exercised during the lifetime of the Optionee only by the Optionee or by the Optionee’s guardian or legal representative.
11.5Other Conditions and Restrictions on Common Shares. Any Common Shares issued under the Plan shall be subject to such forfeiture conditions, rights of repurchase, rights of first refusal, other transfer restrictions and such other terms and conditions as the Administrator may determine. Such conditions and restrictions shall be set forth in the applicable Award Agreement and shall apply in addition to any restrictions that may apply to holders of Common Shares generally. In addition, Common Shares issued under the Plan shall be subject to such conditions and restrictions imposed either by applicable law or by Company policy, as adopted from time to time, designed to ensure compliance with applicable law or laws with which the Company determines in its sole discretion to comply including in order to maintain any statutory, regulatory or tax advantage.
ARTICLE 12.TAXES.
12.1General. It is a condition to each Award under the Plan that a Participant or his or her successor shall make arrangements satisfactory to the Company for the satisfaction of any federal, state, local or foreign withholding tax obligations that arise in connection with any Award granted under the Plan. The Company shall not be required to issue any Common Shares or make any cash payment under the Plan unless such obligations are satisfied.
12.2Share Withholding. To the extent that applicable law subjects a Participant to tax withholding obligations, the Administrator may permit such Participant to satisfy all or part of such obligations by having the Company withhold all or a portion of any Common Shares that otherwise would be issued to him or her or by surrendering all or a portion of any Common Shares that he or she previously acquired. Any payment of taxes by assigning Common Shares to the Company may be subject to restrictions including any restrictions required by SEC, accounting or other rules.

12.3Reserved.
12.4Section 409A Matters. Except as otherwise expressly set forth in an Award Agreement, it is intended that Awards granted under the Plan either be exempt from, or comply with, the requirements of Code Section 409A. To the extent an Award is subject to Code Section 409A (a “409A Award”), the terms of the Plan, the Award and any written agreement governing the Award shall be interpreted to comply with the requirements of Code Section 409A so that the Award is not subject to additional tax or interest under Code Section 409A, unless the Administrator expressly provides otherwise. A 409A Award shall be subject to such additional rules and requirements as specified by the Administrator from time to time in order for it to comply with the requirements of Code Section 409A. In this regard, if any amount under a 409A Award is payable upon a “separation from service” to an individual who is considered a “specified employee” (as each term is defined under Code Section 409A), then no such payment shall be made prior to the date that is the earlier of (i) six months and one day after the Participant’s separation from service or (ii) the Participant’s death, but only to the extent such delay is necessary to prevent such payment from being subject to Code Section 409A(a)(1).
12.5Limitation on Liability. Neither the Company nor any person serving as Administrator shall have any liability to a Participant in the event an Award held by the Participant fails to achieve its intended characterization under applicable tax law.
ARTICLE 13.FUTURE OF THE PLAN.
13.1Term of the Plan. The Plan, as amended and restated, will become effective upon its approval by the Company’s stockholders within 12 months after the date the amended and restated Plan is adopted by the Board. Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws. The Plan will continue in effect until terminated earlier under Section 13.2 of the Plan, but no ISOs may be granted after 10 years from the date the Plan is adopted by the Board.
13.2Amendment or Termination. The Board may, at any time and for any reason, amend or terminate the Plan. No Awards shall be granted under the Plan after the termination thereof. The termination of the Plan, or any amendment thereof, shall not affect any Award previously granted under the Plan.
13.3Stockholder Approval. To the extent required by applicable law, the Plan will be subject to the approval of the Company’s stockholders within 12 months of its adoption date. An amendment of the Plan shall be subject to the approval of the Company’s stockholders only to the extent required by applicable laws, regulations or rules.
ARTICLE 14.DEFINITIONS.
14.1“Administrator” means the Board or any Committee administering the Plan in accordance with Article 2.
14.2“Award” means any award granted under the Plan, including as an Option, a SAR, a Restricted Share, a Stock Unit or a Performance Cash Award.
14.3“Award Agreement” means a Stock Option Agreement, an SAR Agreement, a Restricted Stock Agreement, a Stock Unit Agreement or such other agreement evidencing an Award granted under the Plan.

14.4“Board” means the Company’s Board of Directors, as constituted from time to time.
14.5“Change in Control” means:
(a)Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total voting power represented by the Company’s then-outstanding voting securities;
(b)The consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets;
(c)The consummation of a merger or consolidation of the Company with or into any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; or
(d)Individuals who are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board over a period of 12 months; provided, however, that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes of this Plan, be considered as a member of the Incumbent Board.
A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. In addition, if a Change in Control constitutes a payment event with respect to any Award which provides for a deferral of compensation and is subject to Code Section 409A, then notwithstanding anything to the contrary in the Plan or applicable Award Agreement the transaction with respect to such Award must also constitute a “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5) to the extent required by Code Section 409A.
14.6“Code” means the Internal Revenue Code of 1986, as amended.
14.7“Committee” means a committee of one or more members of the Board, or of other individuals satisfying applicable laws, appointed by the Board to administer the Plan.
14.8“Common Share” means one share of the Class A common stock of the Company. For purposes of Section 3.1, the Common Shares that may be added to the Plan from the Predecessor Plans shall refer to shares of Class B common stock remaining available under the Predecessor Plans or subject to awards granted under the Predecessor Plans; provided, however, that such shares of Class B common stock will become shares of Class A common stock for purposes of Awards granted pursuant to the Plan and that no Awards in respect of Class B common stock shall be granted under this Plan.
14.9“Company” means Veeva Systems Inc., a Delaware corporation.

14.10“Consultant” means a consultant or adviser who provides bona fide services to the Company, a Parent or a Subsidiary as an independent contractor and who qualifies as a consultant or advisor under Instruction A.1.(a)(1) of Form S-8 under the Securities Act. Only to the extent that the issuance of shares to an entity may be registered on Form S-8 under the Securities Act, a Consultant may be an entity.
14.11“Employee” means a common-law employee of the Company, a Parent or a Subsidiary.
14.12“Exchange Act” means the Securities Exchange Act of 1934, as amended.
14.13“Exercise Price,” in the case of an Option, means the amount for which one Common Share may be purchased upon exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of a SAR, means an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value of one Common Share in determining the amount payable upon exercise of such SAR.
14.14“Fair Market Value” means the closing price of a Common Share on any established stock exchange or a national market system on the applicable date or, if the applicable date is not a trading day, on the last trading day prior to the applicable date, as reported in a source that the Administrator deems reliable. If Common Shares are not traded on an established stock exchange or a national market system, the Fair Market Value shall be determined by the Administrator in good faith on such basis as it deems appropriate. The Administrator’s determination shall be conclusive and binding on all persons. In addition, for purposes of determining the fair market value of shares for any reason other than the determination of the exercise price of Options or SARs, fair market value will be determined by the Administrator in a manner compliant with Applicable Laws and applied consistently for such purpose. Note that the determination of fair market value for purposes of tax withholding may be made in the Administrator’s sole discretion subject to Applicable Laws and is not required to be consistent with the determination of Fair Market Value for other purposes.
14.15“IPO Date” means the effective date of the registration statement filed by the Company with the Securities and Exchange Commission for its initial offering of Common Shares to the public.
14.16“ISO” means an incentive stock option described in Code Section 422(b).
14.17“NSO” means a stock option not described in Code Sections 422 or 423.
14.18“Option” means an ISO or NSO granted under the Plan and entitling the holder to purchase Common Shares.
14.19“Optionee” means an individual or estate holding an Option or SAR.
14.20“Outside Director” means a member of the Board who is not an Employee.
14.21“Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date.
14.22“Participant” means an individual or estate holding an Award.

14.23“Performance Cash Award” means an award of cash granted under Section 10.1 of the Plan.
14.24“Performance Goal” means a goal established by the Administrator for the applicable Performance Period based on one or more of the performance criteria set forth in Appendix A. Depending on the performance criteria used, a Performance Goal may be expressed in terms of overall Company performance or the performance of a business unit, division, Subsidiary or an individual. A Performance Goal may be measured either in absolute terms or relative to the performance of one or more comparable companies or one or more relevant indices. The Administrator may adjust the results under any performance criterion to exclude any of the following events that occurs during a Performance Period:  (a) asset writedowns, (b) litigation, claims, judgments or settlements, (c) the effect of changes in tax laws, accounting principles or other laws or provisions affecting reported results, (d) accruals for reorganization and restructuring programs, (e) extraordinary, unusual or non-recurring items, (f) exchange rate effects for non-U.S. dollar denominated net sales and operating earnings, or (g) statutory adjustments to corporate tax rates.
14.25“Performance Period” means a period of time selected by the Administrator over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant’s right to a Performance Cash Award or an Award of Restricted Shares or Stock Units that vests based on the achievement of Performance Goals. Performance Periods may be of varying and overlapping duration, at the discretion of the Administrator.
14.26“Plan” means this Veeva Systems Inc. 2013 Equity Incentive Plan, as amended from time to time.
14.27“Restricted Share” means a Common Share awarded under the Plan.
14.28“Restricted Stock Agreement” means the agreement between the Company and the recipient of a Restricted Share that contains the terms, conditions and restrictions pertaining to such Restricted Share.
14.29“SAR” means a stock appreciation right granted under the Plan.
14.30“SAR Agreement” means the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to his or her SAR.
14.31“Securities Act” means the Securities Act of 1933, as amended.
14.32“Service” means service as an Employee, Outside Director or Consultant.
14.33“Service Provider” means any individual who is an Employee, Outside Director or Consultant.
14.34“Stock Award” means any award of an Option, a SAR, a Restricted Share or a Stock Unit under the Plan.
14.35“Stock Option Agreement” means the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to his or her Option.
14.36“Stock Unit” means a bookkeeping entry representing the equivalent of one Common Share, as awarded under the Plan.

14.37“Stock Unit Agreement” means the agreement between the Company and the recipient of a Stock Unit that contains the terms, conditions and restrictions pertaining to such Stock Unit.
14.38“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date.
14.39“Substitute Awards” means Awards or Common Shares issued by the Company in assumption of, or substitution or exchange for, Awards previously granted, or the right or obligation to make future awards, in each case by a corporation acquired by the Company with which the Company combines to the extent permitted by NASDAQ Marketplace Rule 5635 or any successor thereto.

PERFORMANCE CRITERIA
The Administrator may establish Performance Goals derived from one or more of the following criteria when it makes Awards of Restricted Shares or Stock Units that vest entirely or in part on the basis of performance or when it makes Performance Cash Awards:

						
	•Annual contract subscription fee value (net of associated third party royalties/payments or gross)
	•Annual contract subscription fee value

	•Bookings (annual or total contract value)
	•Cash flow and free cash flow

	•Calculated bookings (i.e., revenue plus change in short-term deferred value)
	•Cash position

	•Cash margin 
	•Committed annual recurring revenue (CARR)

	•Collections 
	•Cost of goods sold

	•Consulting utilization rates 
	•Customer renewals (measured in terms of revenue or customer count)

	•Customer retention rates from an acquired accompany, business unit or division
	•Customer satisfaction or customer referenceability

	•DSO
	•Deferred revenue

	•Earnings per share
	•Gross margin

	•Headcount
	•Internal rate of return

	•Market share 
	•Margin contribution

	•Net income before interest and tax 
	•Net income

	•Operating cash flow 
	•Net income before interest, tax, depreciation and amortization

	•Operating income 
	•Operating expenses

	•Operating margin
	•Personnel retention or personnel hiring measures

	•Product release timelines 
	•Product defect measures

	•Product or research and development related measures 
	•Return on capital

						
	•Return on investment and cash flow return on investment 
	•Return on assets

	•Return on equity
	•Return on sales

	•Revenue
	•Revenue conversion from an acquired company, business unit or division

	•Revenue backlog
	•Revenue per employee

	•Sales results
	•Technical support incident measures

	•Technical system performance measures (e.g., system availability)
	•Total stockholder return

	•Working capital
	
	•Other measures of performance selected by the Administrator
	

Any criteria used may be:
•Measured in absolute terms or on a per share basis
•Measured in terms of growth or as a percentage or percentage change
•Compared to another company or companies (including relative to a per group or index)
•Measured against the market as a whole and/or according to applicable market indices
•Measured against the performance of the Company as a whole or a segment of the Company or a particular product line, line of business or geography
•Measured on a pre-tax or post-tax basis (if applicable)
•Measured on a GAAP or non-GAAP basis, as established by the administrator in advance.
The attainment of performance goals may be measured solely on a corporate, subsidiary or business unit basis, or a combination thereof. Performance criteria may reflect absolute entity performance or a relative comparison of entity performance to the performance of a peer group of entities or other external measure of the selected performance criteria. The Administrator may adjust the results under any performance criterion to exclude any of the following events that occurs during a performance measurement period:  (a) asset write-downs, (b) litigation, claims, judgments or settlements, (c) the effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results, (d) accruals for reorganization and restructuring programs and (e) any extraordinary, unusual or non-recurring items.

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