Document:

Exhibit 10.20

    

    

    THIS CONVERTIBLE PROMISSORY NOTE (THIS “NOTE”) AND
      THE SECURITIES INTO WHICH IT MAY BE CONVERTED HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
      UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE.  THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT ONLY AND THIS NOTE AND THE SECURITIES INTO WHICH IT MAY BE CONVERTED MAY NOT BE SOLD,
      TRANSFERRED OR ASSIGNED EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS
      INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE COMPANY MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO THE COMPANY TO THE EFFECT THAT ANY SALE OR OTHER DISPOSITION IS IN COMPLIANCE WITH THE SECURITIES ACT
      AND ANY APPLICABLE STATE SECURITIES LAWS.

    

    

    WALDENCAST ACQUISITION CORP.

    CONVERTIBLE PROMISSORY NOTE

    

    

    	
            Principal Amount:  Up to $1,500,000

            (See Schedule A)

          	
            Dated as of August 18th, 2021

          

    

    

    FOR VALUE RECEIVED and subject to the terms and conditions set forth herein, Waldencast Acquisition Corp., a Cayman Islands exempted
      company (“Maker”), promises to pay to Waldencast Long-Term Capital LLC, a Cayman Islands limited liability company (“Payee”), or order, the principal balance as set forth on Schedule A hereto in
      lawful money of the United States of America; which schedule shall be updated from time to time by the parties hereto to reflect all advances and readvances outstanding under this Note; provided that at no time shall the aggregate of all advances and
      readvances outstanding under this note exceed One Million Five Hundred Thousand U.S. Dollars (U.S.$1,500,000). Any advance hereunder shall be made by the Payee upon a request of Maker and shall be set forth on Schedule A. All payments on this Note
      shall be made by check or wire transfer of immediately available funds or as otherwise determined by Maker to such account as Payee may from time to time designate by written notice in accordance with the provisions of this Note.

    

    

    1.          Principal.  All unpaid principal under this Note shall be due and payable in full on the earlier of:  (i) the date by which Maker has to complete a merger, share exchange,
        asset acquisition, share purchase, reorganization or similar business combination with one or more businesses (a “Business Combination”) pursuant
        to its Amended and Restated Memorandum and Articles of Association (as may be amended from time to time), and (ii) the effective date of a Business Combination (such earlier date of (i) and (ii), the “Maturity Date”), unless accelerated upon the occurrence of an Event of Default (as defined below).  Any outstanding principal under this Note may be prepaid at any time by Maker, at its
        election and without penalty; provided, however, that Payee shall have a right to first convert such principal balance pursuant to Section 5 below upon notice of such prepayment. Under no circumstances shall any individual, including but not
        limited to any officer, director, employee or shareholder of Maker, be obligated personally for any obligations or liabilities of Maker hereunder.

    

    

    2.          Drawdown Requests. Maker and Payee agree that Maker may request, from time to time, up to  One Million Five Hundred Thousand U.S. Dollars (U.S.$1,500,000) in draw downs
        under this Note to be used for working capital purposes.  The principal of this Note may be drawn down from time to time prior to the Maturity Date upon request from Maker to Payee (each, a “Drawdown Request”).  Each Drawdown Request must state the amount to be drawn down, and must not be an amount less than Ten Thousand U.S. Dollars (U.S. $10,000) unless agreed upon by Maker and
        Payee.  Payee shall fund each Drawdown Request no later than three (3) business days after receipt of a Drawdown Request; provided, however, that the maximum amount of drawdowns outstanding under this Note at any time may not exceed One Million Five Hundred Thousand U.S. Dollars (U.S.$1,500,000).  No fees,
        payments or other amounts shall be due to Payee in connection with, or as a result of, any Drawdown Request by Maker.

    
      
        

    

    
    

    

    3.          Interest.  No interest shall accrue on the unpaid principal balance of this Note.

    

    

    4.          Application of Payments.  All payments shall be applied first to payment in full of any costs incurred in the collection of any sum due under this Note, including (without
        limitation) reasonable attorney’s fees, then to the payment in full of any late charges and finally to the reduction of the unpaid principal balance of this Note.

    

    

    5.          Events of Default.  The occurrence of any of the following shall constitute an event of default (“Event of Default”):

    

    

    (a)          Failure to Make Required Payments.  Failure by Maker to pay the principal amount due pursuant to this Note on the Maturity Date.

    

    

    (b)          Voluntary Bankruptcy, Etc.  The commencement by Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization, rehabilitation or other similar law, or the
        consent by it to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of Maker or for any substantial part of its property, or the making by it of any assignment
        for the benefit of creditors, or the failure of Maker generally to pay its debts as such debts become due, or the taking of corporate action by Maker in furtherance of any of the foregoing.

    

    

    (c)          Involuntary Bankruptcy, Etc.  The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker in an involuntary case under any
        applicable bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering the winding-up or
        liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of sixty (60) consecutive days.

    

    

    6.          Conversion

    

    

    (a)          Optional Conversion. At the option of Payee, at any time on or prior to the Maturity Date, any amounts outstanding under this Note (or any portion thereof), up to One
        Million Five Hundred Thousand U.S. Dollars (U.S.$1,500,000) in the aggregate, may be converted into whole warrants to purchase Class A ordinary shares, par value $0.0001 per share (“Class A Ordinary Shares”), of Maker at a conversion price (the “Conversion Price”) per warrant (“Warrants”) equal to U.S.$1.50 per Warrant. If Payee elects such conversion, the terms of such Warrants issued in connection with such conversion
        shall be identical to the warrants issued to Payee in the private placement (the “Private Placement Warrants”) pursuant to that certain Sponsor
        Warrants Purchase Agreement, dated the date hereof, between Maker and Payee, including that each Warrant will entitle the holder thereof to purchase one Class A Ordinary Share at a price of $11.50 per share, subject to the same adjustments
        applicable to the Private Placement Warrants. Before this Note may be converted under this Section 6(a), Payee shall surrender this Note, duly endorsed, at the office of Maker and shall state therein the amount of the unpaid principal of this Note
        to be converted and the name or names in which the certificates for Warrants are to be issued (or the book-entries to be made to reflect ownership of such Warrants with Maker’s transfer agent); provided that such amount is no greater than One Million Five Hundred Thousand U.S. Dollars (U.S.$1,500,000). The conversion shall be deemed to have been made immediately prior to the close of
        business on the date of the surrender of this Note and the person or persons entitled to receive the Warrants upon such conversion shall be treated for all purposes as the record holder or holders of such Warrants as of such date. Each such
        newly-issued Warrant shall include a restricted legend that contemplates the same restrictions as the Private Placement Warrants.  The Warrants and Class A Ordinary Shares issuable upon exercise of the Warrants shall constitute “Registrable
        Securities” pursuant to that certain Registration Rights Agreement, dated the date hereof, among Maker, Payee and the other parties thereto.

    
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    (b)          Remaining Principal. All accrued and unpaid principal of this Note that is not then converted into Warrants, shall continue to remain outstanding and to be subject to
        the conditions of this Note.

    

    

    (c)          Fractional Warrants; Effect of Conversion. No fractional Warrants shall be issued upon conversion of this Note. In lieu of any fractional Warrants to Payee upon
        conversion of this Note, Maker shall pay to Payee an amount equal to the product obtained by multiplying the Conversion Price by the fraction of a Warrant not issued pursuant to the previous sentence. Upon conversion of this Note in full and the
        payment of any amounts specified in this Section 6(c), this Note shall be cancelled and void without further action of Maker or Payee, and Maker shall be forever released from all its obligations and liabilities under this Note.

    

    

    7.          Remedies.

    

    

    (a)          Upon the occurrence of an
        Event of Default specified in Section 5(a) hereof, Payee may, by written notice to Maker, declare this Note to be due immediately and payable, whereupon the unpaid principal amount of this Note, and all other amounts payable thereunder, shall
        become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding.

    

    

    (b)          Upon the occurrence of an
        Event of Default specified in Sections 5(b) or 5(c), the unpaid principal balance of this Note, and all other sums payable with regard to this Note, shall automatically and immediately become due and payable, in all cases without any action on the
        part of Payee.

    

    

    8.          Waivers.  Maker and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor, protest, and notice of protest
        with regard to the Note, all errors, defects and imperfections in any proceedings instituted by Payee under the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting any property, real or
        personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or sale under execution, or providing for any stay of execution, exemption from civil process, or extension of time for payment; and Maker
        agrees that any real estate that may be levied upon pursuant to a judgment obtained by virtue hereof, on any writ of execution issued hereon, may be sold upon any such writ in whole or in part in any order desired by Payee.

    

    

    9.          Unconditional Liability.  Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement of the payment of this Note, and
        agrees that its liability shall be unconditional, without regard to the liability of any other party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to by Payee,
        and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted by Payee with respect to the payment or other provisions of this Note, and agrees that additional makers, endorsers, guarantors, or sureties may
        become parties hereto without notice to Maker or affecting Maker’s liability hereunder.

    
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    10.          Notices.  All notices, statements or other documents which are required or contemplated by this Note shall be: (i) in writing and delivered personally or sent by
        first class registered or certified mail, overnight courier service or facsimile or electronic transmission to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address or fax
        number as may be designated in writing by such party or (iii) by electronic mail, to the electronic mail address most recently provided to such party or such other electronic mail address as may be designated in writing by such party. Any notice or
        other communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the business day following receipt of written confirmation, if sent by facsimile or electronic transmission, one (1) business
        day after delivery to an overnight courier service or five (5) days after mailing if sent by mail.

    

    

    11.          Construction.  THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF NEW YORK.

    

    

    12.          Severability.  Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
        extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other
        jurisdiction.

    

    

    13.          Trust Waiver.  Notwithstanding anything herein to the contrary, Payee hereby waives any and all right, title, interest or claim of any kind (“Claim”) in or to any distribution of or from the trust account established in which proceeds of Maker’s initial public offering (the “IPO”) (including the deferred underwriting discounts and commissions) and proceeds of the sale of Private Placement Warrants were or will be deposited, as described in
        greater detail in the registration statement on Form S-1 relating to the IPO filed by Maker with the Securities and Exchange Commission, and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against the trust
        account for any reason whatsoever.

    

    

    14.          Amendment; Waiver.  Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent of Maker and Payee.

    

    

    15.          Successors and Assigns.  Subject to the restrictions on transfer in Sections 16 and 17 below, the rights and obligations of Maker and Payee hereunder shall be binding
        upon and benefit the successors, assigns, heirs, administrators and transferees of any party hereto (by operation of law or otherwise) with the prior written consent of the other party hereto and any attempted assignment without the required
        consent shall be void.

    
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    16.          Transfer of this Note or Securities Issuable on Conversion.  With respect to any sale or other disposition of this Note or securities into which this Note may be
        converted, Payee shall give written notice to Maker prior thereto, describing briefly the manner thereof, together with (i) except for a Permitted Transfer (as defined below), in which case the requirements in this clause (i) shall not apply, a
        written opinion (unless waived by Maker) reasonably satisfactory to Maker in form and substance from counsel reasonably satisfactory to Maker to the effect that such sale or other distribution may be effected without registration or qualification
        under any federal or state law then in effect and (ii) a written undertaking executed by the desired transferee reasonably satisfactory to Maker in form and substance agreeing to be bound by the restrictions on transfer contained herein. Upon
        receiving such written notice, reasonably satisfactory opinion (unless waived by Maker), or other evidence, and such written acknowledgement, Maker, as promptly as practicable, shall notify Payee that Payee may sell or otherwise dispose of this
        Note or such securities, all in accordance with the terms of the note delivered to Maker. If a determination has been made pursuant to this Section 16 that the opinion of counsel for Payee, or other evidence, or the written acknowledgment from the
        desired transferee, is not reasonably satisfactory to Maker, Maker shall so notify Payee promptly after such determination has been made. Each Note thus transferred shall bear a legend as to the applicable restrictions on transferability in order
        to ensure compliance with the Securities Act, unless in the opinion of counsel for Maker such legend is not required in order to ensure compliance with the Securities Act. Maker may issue stop transfer instructions to its transfer agent in
        connection with such restrictions. Subject to the foregoing, transfers of this Note shall be registered upon registration on the books maintained for such purpose by or on behalf of Maker. Prior to presentation of this Note for registration of
        transfer, Maker shall treat the registered holder hereof as the owner and holder of this Note for the purpose of receiving all payments of principal hereon and for all other purposes whatsoever, whether or not this Note shall be overdue and Maker
        shall not be affected by notice to the contrary. For purposes hereof “Permitted Transfer” shall have the same meaning as any transfer that would
        be permitted for the Private Placement Warrants under the Letter Agreement, dated the date hereof, among Maker, Payee and the other parties thereto.

    

    

    17.          Acknowledgment. Payee is acquiring this Note for investment for its own account, not as a nominee or agent, and not with a view to, or for resale in connection with,
        any distribution thereof in violation of applicable securities laws. Payee understands that the acquisition of this Note involves substantial risk. Payee has experience as an investor in securities of companies and acknowledges that it is able to
        fend for itself, can bear the economic risk of its investment in this Note, and has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of this investment in this Note and protecting
        its own interests in connection with this investment.

    

    

    [Signature page follows]

    
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    IN WITNESS WHEREOF, Maker,
      intending to be legally bound hereby, has caused this Note to be duly executed by the undersigned as of the day and year first above written.

    

    

    	 	
            WALDENCAST ACQUISITION CORP.

          
	 	 	 	 
	 	 	 	 
	 	
            By:

          	
            /s/ Michel Brousset

          
	 	 	
            Name:

          	
            Michel Brousset

          
	 	 	
            Title:

          	
            CEO/Founder

          

    

    

    Acknowledged and agreed as of the day and year first above written.

    

    

    WALDENCAST LONG-TERM CAPITAL LLC

    

    

    

    

    	
            By:

          	
            /s/ Michel Brousset

          	 
	 	
            Name:

          	
            Michel Brousset

          	 
	 	
            Title:

          	
            CEO/Founder

          	 

    

    

    [Signature Page to Promissory Note]

    
      
        

    

    

    

    SCHEDULE A

    

    

    Subject to the terms and conditions set forth in the Note to which this schedule is attached to, the principal balance due under the Note
      shall be set forth in the table below and shall be updated from time to time to reflect all advances and readvances outstanding under the Note.

    

    

    	
            Date

          	
            Drawing

          	
            Interest Earned

          	
            Principal BalanceExhibit 10.21

    

    

    MILK MAKEUP LLC

    

    

    APPRECIATION RIGHTS PLAN

    

    

    SECTION 1.  GENERAL PURPOSE OF THE
          PLAN; DEFINITIONS

    

    

    The name of the plan is the MILK Makeup LLC Appreciation Rights Plan (the “Plan”).  The purpose of the Plan is to encourage and enable the
      employees and service providers of Milk Makeup, LLC, a Delaware limited liability company (the “LLC”), or any Subsidiary, and other individuals selected by the Board, upon whose judgment, initiative and efforts the LLC largely depends for the
      successful conduct of its business, to acquire an indirect proprietary interest in the LLC.  If the terms of this Plan or any Award Letter conflict in any way with the provisions of the LLC Agreement, the LLC Agreement shall govern.  The terms of
      this Plan or any Award Letter shall not be deemed in conflict or inconsistent with the provisions of the LLC Agreement merely because they impose greater or additional restrictions, obligations or duties, or if the provisions of the Plan or Award
      Letter state that such Plan or Award Letter terms apply notwithstanding provisions to the contrary in the LLC Agreement.

    

    

    Any capitalized terms used herein, but not defined herein shall have the meanings given to such terms in the LLC Agreement.  The following
      terms shall be defined as set forth below:

    

    

    “Act” means the Securities Act of
      1933, as amended, and the rules and regulations thereunder.

    

    

    “Appreciation Right” means an Award
      entitling the recipient to receive an amount in cash and/or a number of Units (as determined in the Committee’s sole discretion or as set forth in an Award Letter) having a value equal to the excess of the Fair Market Value of a Unit on the Pricing
      Date over the Grant Date Fair Market Value of a Unit, multiplied by the number of Units with respect to which the Appreciation Right shall have been granted.

    

    

    “Award” means an award of
      Appreciation Rights.

    

    

    “Award Letter” means a written or
      electronic agreement setting forth the terms and provisions applicable to an Award granted under the Plan.  Each Award Letter may contain terms and conditions in addition to those set forth in the Plan; provided, however, that except to the extent explicitly provided to
        the contrary, in the event of any conflict in the terms of the Plan and the Award Letter, the terms of the Plan shall govern.

    

    

    “Board” means the Board of
      Directors of the LLC.

    

    

    “Business Relationship” means any
      relationship as a full-time employee, part-time employee, director or other key person (including consultants) of the LLC, any Subsidiary or any successor entity (e.g., a Business Relationship shall be deemed to continue without interruption in the
      event an individual’s status changes from full-time employee to part-time employee or consultant).

    
      
        

    

    
    

    

    “Code” means the Internal Revenue
      Code of 1986, as amended, and any successor Code, and related rules, regulations and interpretations.

    

    

    “Committee” means the Committee
      referred to in Section 2.

    

    

    “Effective Date” means January 16, 2018.

    

    

    “Exchange Act” means the Securities
      Exchange Act of 1934, as amended, and the rules and regulations thereunder.

    

    

    “Fair Market Value” of a Unit on
      any given date means the fair market value per Unit determined in good faith by the Committee based on the reasonable application of a reasonable valuation method not inconsistent with Section 409A of the Code and determined in accordance with the
      terms of the LLC Agreement with respect to such Unit subject to an Award hereunder.

    

    

    “Grant Date” means the date of
      grant of an Award under the Plan.

    

    

    “Grant Date Fair Market Value”
      means the Fair Market Value of a Unit as of the Grant Date.

    

    

    “IPO” means the consummation of the
      first fully underwritten, firm commitment public offering pursuant to an effective registration statement under the Act covering the offer and sale by the LLC or any successor entity of its equity securities, as a result of or following which Units
      shall be publicly held.

    

    

    “LLC Agreement” means the Operating
      Agreement of the LLC, dated as of December 23, 2016, as amended, restated or otherwise modified from time to time.

    

    

    “Pricing Date” means the date of
      settlement of any Appreciation Rights. In the even that an Appreciation Right is settled in connection with a Sale Event (or if the provisions of Section 3(c)(ii) apply), the Pricing Date shall be the effective date of such Sale Event.

    

    

    “Sale Event” means the occurrence
      of a Capital Transaction or Sale of the Company, as such terms are defined in the LLC Agreement and shall also mean and include any of the following: (a) the liquidation or dissolution of the LLC or (b) any acquisition of the business of the Company, as determined by the Board.

    

    

    “Subsidiary” means any corporation
      or other entity (other than the LLC) in which the LLC has more than a 50 percent interest, either directly or indirectly.

    

    

    “Unit” means a Common Unit of the
      LLC, as so denominated in the LLC Agreement.

    

    

    SECTION 2.  ADMINISTRATION OF PLAN;
          COMMITTEE AUTHORITY TO SELECT GRANTEES AND DETERMINE AWARDS

    

    

    (a)          Administration of Plan.  The Plan shall be administered by the Board, or at the discretion of the Board, by a committee of the Board, comprised of not less than two directors. 
        All references herein to the “Committee” shall be deemed to refer to the group then responsible for administration of the Plan at the relevant time (i.e.,
        either the Board or a committee or committees of the Board, as applicable).

    
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    (b)          Powers of Committee.  The Committee shall have the power and authority to grant Awards consistent with the terms of the Plan and the LLC Agreement, including the power and
        authority:

    

    

    (i)          to select the individuals to
        whom Awards may from time to time be granted;

    

    

    (ii)          to determine the time or
        times of grant, and the amount, if any, of Appreciation Rights granted to any one or more grantees;

    

    

    (iii)          to determine the number of
        Units to be covered by any Award and, subject to the provisions of the Plan, below, the price, the Grant Date Fair Market Value and the exercise price relating thereto;

    

    

    (iv)          to determine and, subject
        to Section 12, to modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms of the Plan, of any Award, which terms and conditions may differ among individual Awards and grantees, and to approve the
        form of Award Letters;

    

    

    (v)          subject to compliance with
        Section 409A, to accelerate at any time the exercisability or vesting of all or any portion of any Award;

    

    

    (vi)          to impose any limitations
        on Awards and to exercise rights or obligations of the LLC with respect to Awards; and

    

    

    (vii)          at any time to adopt,
        alter and repeal such rules, guidelines and practices for administration of the Plan and for its own acts and proceedings as it shall deem advisable; to interpret the terms and provisions of the Plan and any Award (including related Award Letters);
        to make all determinations it deems advisable for the administration of the Plan; to decide all disputes arising in connection with the Plan; and to otherwise supervise the administration of the Plan.

    

    

    All decisions and interpretations of the Committee shall be binding on all persons, including the LLC and Plan grantees.

    

    

    (c)          Award Letter.  Awards under the Plan shall be evidenced by Award Letters that set forth the terms, conditions and limitations for each Award and may include, without limitation,
        the term of an Award, the provisions applicable in the event the Business Relationship terminates, and the LLC’s authority to unilaterally or bilaterally amend, modify, suspend, cancel or rescind an Award.

    

    

    (d)          Indemnification.  Neither the Board nor the Committee, nor any member of either or any delegate thereof, shall be liable for any act, omission, interpretation, construction or
        determination made in good faith in connection with the Plan, and the members of the Board and the Committee (and any delegate thereof) shall be entitled in all cases to indemnification and reimbursement by the LLC in respect of any claim, loss,
        damage or expense (including, without limitation, reasonable attorneys’ fees) arising or resulting therefrom to the fullest extent permitted by law and/or under the LLC’s governing documents, including its articles or bylaws, or any directors’ and
        officers’ liability insurance coverage which may be in effect from time to time and/or any indemnification agreement between such individual and the LLC.

    
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    SECTION 3.  UNITS ISSUABLE UNDER THE PLAN; ADJUSTMENTS AND SALE EVENTS

    

    

    (a)          Units Issuable.  The maximum number of Units reserved and available for issuance under the Plan shall be 940,860, subject to adjustment as provided in Section 3(b).  For purposes of this limitation, the Units underlying any Appreciation Rights that are forfeited, canceled, withheld upon exercise or settlement of an Award to cover the
        exercise price or tax withholding, reacquired by the LLC prior to vesting, satisfied without the issuance of Units or otherwise terminated (other than by exercise or settlement), in each case shall be added back to the Units available for issuance
        under the Plan. Subject to the terms of the LLC Agreement, the Units available for issuance under the Plan may be authorized but unissued Units or Units reacquired by the LLC.

    

    

    (b)          Changes in Units or Capitalization.  Subject to Section 3(c) hereof and the terms and conditions of the LLC Agreement, if, as a result of any reorganization, recapitalization,
        reclassification, unit distribution, unit split, reverse unit split or other similar change in the LLC’s capitalization, the outstanding Units are increased or decreased or are exchanged for a different number or kind of units or other securities
        of the LLC, new or different units or other securities of the LLC or other non-cash assets are distributed with respect to such Units or other securities, or, if, as a result of any merger or consolidation, or sale of all or substantially all of
        the assets of the LLC, the outstanding Units are converted into or exchanged for securities of the LLC or any successor entity (or a parent or subsidiary thereof), the Committee shall make an appropriate and equitable or proportionate adjustment in
        (i) the maximum number of Units or other securities reserved for issuance under the Plan, (ii) the number and kind of Units or other securities subject to any then outstanding Awards under the Plan, (iii) the exercise price for each unit subject to
        any then outstanding Appreciation Right and/or the Grant Date Fair Market Value of any Unit underlying any Appreciation Rights under the Plan, without changing the aggregate exercise price or aggregate Grant Date Fair Market Value with respect to
        such Appreciation Rights.  The adjustment by the Committee shall be final, binding and conclusive.  Except as otherwise permitted by the LLC Agreement, no fractional Units shall be issued under the Plan resulting from any such adjustment, but the
        Committee in its discretion may make a cash payment in lieu of fractional Units.

    

    

    (c)          Sale Events.

    

    

    (i)          Upon consummation of a Sale
        Event, the Plan and all outstanding Awards granted hereunder shall terminate, unless provision is made in connection with the Sale Event in the sole discretion of the parties to the Sale Event for the assumption or continuation by the successor
        entity of Awards theretofore granted, or the substitution of such Awards with new awards of the successor entity or parent thereof, with an equitable or proportionate adjustment  as to the number and kind of securities and, if
        appropriate, the exercise prices, as such parties shall agree (after taking into account any applicable acceleration).

    
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    (ii)          Notwithstanding anything to
        the contrary herein, the LLC shall have the right, but not the obligation in connection with a Sale Event, to make or provide for a cash payment to grantees holding Appreciation Rights, in exchange for the cancellation thereof, in an amount equal
        to the difference between (A) the value as determined by the Committee of the consideration payable, or otherwise to be received by holders of Units, per Unit pursuant to a Sale Event multiplied by the number of Units subject to outstanding
        Appreciation Rights (to the extent then vested and/or exercisable, including by reason of vesting acceleration, at prices not in excess of the applicable sale price for the Units in the Sale Event) and (B) the aggregate Grant Date Fair Market Value
        of all such outstanding Appreciation Rights (to the extent then vested or exercisable, including by reason of vesting acceleration, at prices not in excess of the sale price for the Units in the Sale Event), subject to the other terms and
        conditions of the Sale Event (such as indemnification obligations and purchase price adjustments) to the extent provided by the parties.

    

    

    SECTION 4.  ELIGIBILITY

    

    

    Grantees under the Plan will be such full or part-time officers and other employees, directors, service providers and key persons
      (including prospective employees, but conditioned on their employment, and consultants) of the LLC or any Subsidiary, who are selected from time to time by the Committee in its sole discretion.

    

    

    SECTION 5.  APPRECIATION RIGHTS

    

    

    (a)          Grant of Appreciation Rights.  Any Appreciation Right granted under the Plan must be made pursuant to an Appreciation Rights Award Letter in such form as the Committee may from
        time to time approve.  Appreciation Rights Award Letters need not be identical.  Awards of Appreciation Rights under the Plan shall only be granted with respect to Units.

    

    

    (b)          Terms of Appreciation Rights.  The Committee in its discretion may grant Appreciation Rights to those individuals who meet the eligibility requirements of Section 4. The exercise
        price of or Grant Date Fair Market Value with respect to an Appreciation Right shall not be less than 100 percent of the Fair Market Value of a Unit on the Grant Date.  Appreciation Rights granted pursuant to Section 5(a) shall be subject to the
        following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee shall deem desirable.  Appreciation Rights shall become vested and shall be settled at such time or
        times, whether or not in installments, as shall be determined by the Committee at or after the Grant Date.  The Appreciation Rights Award Letter shall specify the applicable Pricing Date(s) and or events that shall trigger any Pricing Date with
        respect to the award of Appreciation Rights.  Appreciation Rights may be settled in cash or Units (or in any combination thereof) as determined by the Committee in its sole discretion or as set forth in an Appreciation Right Award Letter.  The term
        of an Appreciation Right may not exceed ten years.  A grantee shall have the rights of a unitholder only as to Units acquired upon the settlement of Appreciation Rights and not as to unexercised Appreciation Rights.  A grantee shall not be deemed
        to have acquired any such units unless and until an Appreciation Right shall have been settled  in Units pursuant to the terms hereof, the grantee’s name shall have been entered on the books of the LLC as a unitholder with respect to such Units and
        the grantee and the LLC have taken such other actions required under the LLC Agreement necessary to become a unitholder.

    
      5

      
        

    

    

    

    (c)          Non-Transferability of Appreciation Rights.  No Appreciation Right shall be transferable by the grantee.

    

    

    (d)          Termination.  Except as may otherwise be provided by the Committee either in the Award Letter or in writing after the Award Letter is issued, a grantee’s right in all Appreciation
        Rights that have not vested shall automatically terminate and/or be subject to repurchase upon the cessation of grantee’s Business Relationship with the LLC and any Subsidiary for any reason as provided in Section 10 of this Plan, below.

    

    

    SECTION 6.  TAX WITHHOLDING

    

    

    Each grantee shall, no later than the date as of which the value of an Award or of any Units or other amounts received thereunder first
      becomes includable in the gross income of the grantee for Federal income tax purposes, pay to the LLC, or make arrangements satisfactory to the Committee regarding payment of, any Federal, state, or local taxes of any kind required by law to be
      withheld by the LLC with respect to such income.  The LLC and any Subsidiary shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the grantee.  The LLC’s obligation to deliver
      certificates (or evidence of book entry) to any grantee is subject to and conditioned on any such tax withholding obligations being satisfied by the grantee.

    

    

    SECTION 7.  SECTION 409A AWARDS.

    

    

    To the extent that any Award is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the
      Code (a “409A Award”), the Award shall be subject to such additional rules and requirements as specified by the Committee from time to time in order to comply with Section 409A of the Code.  In this regard, if any amount under a 409A Award is payable
      upon a “separation from service” (within the meaning of Section 409A of the Code) to a grantee who is considered a “specified employee” (within the meaning of Section 409A of the Code), then no such payment shall be made prior to the date that is the
      earlier of (i) six months and one day after the grantee’s date of separation from service, or (ii) the grantee’s death, but only to the extent such delay is necessary to prevent such payment from being subject to interest, penalties and/or additional
      tax imposed pursuant to Section 409A of the Code.  To the extent that any 409A Award is payable upon a Sale Event, such 409A Award shall only be payable if and to the extent such Sale Event also constitutes a “change in ownership” of the LLC or a
      “change in the ownership of a substantial portion of the LLC’s assets” for purposes of Section 409A of the Code.  To the extent that any 409A Award is payable upon a grantee’s termination of Business Relationship, such 409A Award shall only be
      payable upon the grantee’s “separation from service” (within the meaning of Section 409A of the Code).

    
      6

      
        

    

    

    

    SECTION 8.  TERMINATION OF BUSINESS
          RELATIONSHIP.

    

    

    If a grantee’s Business Relationship is terminated for any reason, then the grantee shall forfeit all of his unvested Awards for zero
      consideration and the LLC shall have the option to purchase all of the individual’s vested, at an amount equal to the Fair Market Value of the Units underlying such vested Award less the applicable Grant Date Fair Market Value with respect to such Award, determined as of the date of such termination of such grantee’s Business Relationship.

    

    

    SECTION 9.  TRANSFER, LEAVE OF
          ABSENCE, ETC.

    

    

    For purposes of the Plan, the following events shall not be deemed a termination of employment or cessation of a Business Relationship:

    

    

    (a)          a transfer to the employment
        of the LLC from a Subsidiary or from the LLC to a Subsidiary, or from one Subsidiary to another; or

    

    

    (b)          an approved leave of absence
        for military service, sickness or disability, or for any other purpose approved by the LLC, if the employee’s right to re-employment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was
        granted or if the Committee otherwise so provides in writing.

    

    

    SECTION 10.  AMENDMENTS AND
          TERMINATION

    

    

    The Board may, at any time, amend or discontinue the Plan and the Committee may, at any time, amend or cancel any outstanding Awards
      hereunder at any time or from time to time; provided, however,
      that no such action shall adversely affect rights under any outstanding Award without the consent of the holder of the Award.  The Committee may exercise its discretion to reduce the exercise price of outstanding Appreciation Right or effect
      repricing through cancellation of outstanding Awards and by granting such holders new Awards in replacement of the cancelled Awards.  To the extent determined by the Committee to be required by law, Plan amendments shall be subject to approval by the
      LLC equity holders.  Nothing in this Section 10 shall limit the Board’s or Committee’s authority to take any action permitted pursuant to Section 3(c).

    

    

    SECTION 11.  STATUS OF PLAN

    

    

    With respect to the portion of any Award that has not been exercised and any payments in cash, Units or other consideration not received by
      a grantee, a grantee shall have no rights greater than those of a general creditor of the LLC unless the Committee shall otherwise expressly so determine in connection with any Award(s).  In its sole discretion, the Committee may authorize the
      creation of trusts or other arrangements to meet the LLC’s obligations to deliver Units or make payments with respect to Awards hereunder; provided, that the
      existence of such trusts or other arrangements is consistent with the foregoing sentence.

    
      7

      
        

    

    

    

    SECTION 12.  GENERAL PROVISIONS

    

    

    (a)          No Distribution; Compliance with Legal Requirements. The Committee may require each person acquiring Units pursuant to an Award to represent to and agree with the LLC in writing
        that such person is acquiring the Units without a view to distribution thereof.  No Units shall be issued pursuant to an Award until all applicable securities law and other legal and stock exchange or similar requirements and all requirements under
        the LLC Agreement have been satisfied.  The Committee may require the placing of such stop-orders and restrictive legends on certificates for Units and Awards as it deems appropriate.

    

    

    (b)          Delivery of Units.  Units shall be deemed delivered under the Plan to the extent they are deemed delivered to a grantee under the terms of the LLC Agreement.

    

    

    (c)          Other Compensation Arrangements; No Employment Rights.  Nothing contained
        in the Plan shall prevent the Board from adopting other or additional compensation arrangements, including trusts, and such arrangements may be either generally applicable or applicable only in specific cases.  The adoption of the Plan and the
        grant of Awards do not confer upon any employee any right to continued employment or any Business Relationship with the LLC or any Subsidiary.

    

    

    (d)          Joinder to LLC Agreement.  As a condition precedent to any grant or issuance of any Units under this Plan, the grantee thereof shall become a party to the LLC Agreement, by
        execution of a joinder agreement thereto in form and substance reasonably satisfactory to the LLC.

    

    

    (e)          Trading Policy Restrictions.  Awards under the Plan shall be subject to such insider trading policy-related restrictions, terms and conditions as may be established by the
        Committee, or in accordance with policies set by the Committee, from time to time.

    

    

    (f)          Designation of Beneficiary.  Each grantee to whom an Award has been made under the Plan may designate a beneficiary or beneficiaries to exercise any Award on or after the
        grantee’s death or receive any payment under any Award payable on or after the grantee’s death.  Any such designation shall be on a form provided for that purpose by the Committee and shall not be effective until received by the Committee.  If no
        beneficiary has been designated by a deceased grantee, or if the designated beneficiaries have predeceased the grantee, the beneficiary shall be the grantee’s estate.

    

    

    SECTION 13.  EFFECTIVE DATE OF PLAN

    

    

    The Plan shall become effective upon the Effective Date.

    

    

    SECTION 14.  GOVERNING LAW

    

    

    This Plan, all Awards and any controversy arising out of or relating to this Plan and all Awards shall be governed by and construed in
      accordance with the laws of the State of Delaware, without regard to conflict of law principles that would result in the application of any law
      other than the law of the State of Delaware.

    

    

    SECTION 15.  DISPUTE RESOLUTION;
          CONSENT TO JURISDICTION.

    

    

    ALL DISPUTES BETWEEN OR AMONG ANY PERSONS ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS PLAN, ANY AWARD LETTER OR ANY AWARD UNDER THIS
      PLAN (INCLUDING ANY INTERPRETATION OF THE LLC AGREEMENT AS IT PERTAINS TO THE AWARDS UNDER THIS PLAN) SHALL BE SOLELY AND FINALLY SETTLED BY THE COMMITTEE, THE DETERMINATION OF WHICH SHALL BE FINAL.  ANY MATTERS NOT COVERED BY THE PRECEDING SENTENCE,
      BUT WHICH ARISE UNDER THE LLC AGREEMENT SHALL BE SOLELY AND FINALLY SETTLED IN ACCORDANCE WITH THE DISPUTE RESOLUTION PROVISIONS IN THE LLC AGREEMENT.

  

   

    

  8

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