Document:

Exhibit 10.5

 

AMENDED AND RESTATED

 

OPERATING AGREEMENT

 

of

 

ALCLEAR HOLDINGS, LLC

 

Dated as [●], 2021

 

     

     

    

 

TABLE OF CONTENTS

 

		 	 	 	Page	 
	Article I DEFINITIONS AND USAGE 	 	 	1	 
	 	 	 	 	 	 	 
	Section 1.01	 	Definitions	 	 	1	 
	Section 1.02	 	Other Definitional
    and Interpretative Provisions	 	 	12	 
	 	 	 	 	 	 	 
	Article II
    THE COMPANY	 		 	 	12	 
	 	 	 	 	 	 	 
	Section 2.01	 	Formation	 	 	12	 
	Section 2.02	 	Name	 	 	13	 
	Section 2.03	 	Term	 	 	13	 
	Section 2.04	 	Registered Agent
    and Registered Office	 	 	13	 
	Section 2.05	 	Purposes	 	 	13	 
	Section 2.06	 	Powers of the
    Company	 	 	13	 
	Section 2.07	 	Partnership
    Tax Status	 	 	13	 
	Section 2.08	 	Regulation of
    Internal Affairs	 	 	13	 
	Section 2.09	 	Ownership of Property	 	 	13	 
	Section 2.10	 	Subsidiaries	 	 	13	 
	 	 	 	 	 	 	 
	Article III UNITS; MEMBERS; BOOKS AND RECORDS; REPORTS 	 	 	14	 
	 	 	 	 	 	 	 
	Section 3.01	 	Units; Admission
    of Members	 	 	14	 
	Section 3.02	 	Substitute Members
    and Additional Members	 	 	15	 
	Section 3.03	 	Tax and Accounting
    Information	 	 	15	 
	Section 3.04	 	Books and Records	 	 	17	 
	 	 	 	 	 	 	 
	Article IV
CLEAR SECURE OWNERSHIP; RESTRICTIONS ON CLEAR SECURE STOCK	 	 	17	 
	 	 	 	 	 	 	 
	Section 4.01	 	Clear Secure
    Ownership	 	 	17	 
	Section 4.02	 	Restrictions
    on Clear Secure Common Stock	 	 	18	 
	 	 	 	 	 	 	 
	Article V
CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS; DISTRIBUTIONS; ALLOCATIONS	 	 	21	 
	 	 	 	 	 	 	 
	Section 5.01	 	Capital Contributions	 	 	21	 
	Section 5.02	 	Capital Accounts	 	 	21	 
	Section 5.03	 	Amounts and
    Priority of Distributions	 	 	23	 
	Section 5.04	 	Allocations	 	 	25	 
	Section 5.05	 	Other Allocation
    Rules	 	 	28	 
	Section 5.06	 	Tax Withholding;
    Withholding Advances	 	 	29	 
	 	 	 	 	 	 	 
	Article VI CERTAIN TAX MATTERS 	 	 	30	 
	 	 	 	 	 	 	 
	Section 6.01	 	Partnership
    Representative	 	 	30	 
	Section 6.02	 	Section 754
    Election	 	 	31	 

 

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	Article VII MANAGEMENT OF THE COMPANY 	 	 	32 	 
	 	 	 	 	 	 	 
	Section 7.01	 	Management by
    the Managing Member	 	 	32	 
	Section 7.02	 	Withdrawal of
    the Managing Member	 	 	32	 
	Section 7.03	 	Decisions by
    the Members	 	 	32	 
	Section 7.04	 	Fiduciary Duties	 	 	33	 
	Section 7.05	 	Officers	 	 	34	 
	 	 	 	 	 	 	 
	Article VIII TRANSFERS OF INTERESTS 	 	 	35	 
	 	 	 	 	 	 	 
	Section 8.01	 	Restrictions
    on Transfers	 	 	35	 
	Section 8.02	 	Certain Permitted
    Transfers	 	 	36	 
	Section 8.03	 	Registration of Transfers	 	 	37	 
	 	 	 	 	 	 	 
	Article IX
    OTHER AGREEMENTS	 		 	 	37	 
	 	 	 	 	 	 	 
	Section 9.01	 	Noncompete	 	 	37	 
	Section 9.02	 	Nonsolicitation	 	 	37	 
	 	 	 	 	 	 	 
	Article X LIMITATION ON LIABILITY, EXCULPATION AND INDEMNIFICATION 	 	 	38 	 
	 	 	 	 	 	 	 
	Section 10.01	 	Limitation on
    Liability	 	 	38	 
	Section 10.02	 	Exculpation
    and Indemnification	 	 	38	 
	 	 	 	 	 	 	 
	Article XI DISSOLUTION AND TERMINATION 	 	 	41	 
	 	 	 	 	 	 	 
	Section 11.01	 	Dissolution	 	 	41	 
	Section 11.02	 	Winding Up of
    the Company	 	 	41	 
	Section 11.03	 	Termination	 	 	42	 
	Section 11.04	 	Survival	 	 	42	 
	 	 	 	 	 	 	 
	Article XII
    MISCELLANEOUS	 		 	 	42	 
	 	 	 	 	 	 	 
	Section 12.01	 	Expenses	 	 	42	 
	Section 12.02	 	Further Assurances	 	 	42	 
	Section 12.03	 	Notices	 	 	43	 
	Section 12.04	 	Binding Effect;
    Benefit; Assignment	 	 	43	 
	Section 12.05	 	Jurisdiction	 	 	43	 
	Section 12.06	 	Counterparts	 	 	44	 
	Section 12.07	 	Entire Agreement	 	 	44	 
	Section 12.08	 	Severability	 	 	44	 
	Section 12.09	 	Amendment	 	 	45	 
	Section 12.10	 	Confidentiality	 	 	45	 
	Section 12.11	 	Governing Law	 	 	47	 
	 	 	 	 	 	 	 
	Schedule A      Common Units	 	 	 	 

 

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AMENDED AND RESTATED OPERATING AGREEMENT (this “Agreement”)
OF ALCLEAR HOLDINGS, LLC, a Delaware limited liability company (the “Company”), dated as of [●], 2021, by and
among the Company, Clear Secure, Inc., a Delaware corporation (“Clear Secure”), and the other Persons listed on
the signature pages hereto.

 

W I T N E S S E T H:

 

WHEREAS, the Company has been heretofore formed as
a limited liability company under the Delaware Act (as defined below) pursuant to a certificate of formation which was executed and filed
with the Secretary of State of the State of Delaware on January 21, 2010;

 

WHEREAS, Alclear entered into the initial Operating
Agreement of the Company, dated as of January 22, 2010 (as subsequently amended and restated on each of November 22, 2019 and
October 1, 2020, the “Prior Operating Agreement”);

 

WHEREAS, pursuant to the terms of that certain Reorganization
Agreement (the “Reorganization Agreement”), dated as of the date hereof, by and among the Company, Clear Secure and
the other Persons listed on the signature pages thereto, the parties thereto have agreed to consummate the reorganization of the
Company contemplated by Section 9.9 of the Prior Operating Agreement and to take the other actions contemplated in such Reorganization
Agreement (collectively, the “Reorganization”); and

 

WHEREAS, the Company and Clear Secure desire to enter
into this Agreement to make the modifications hereinafter set forth.

 

NOW, THEREFORE, in consideration of the mutual covenants
and agreements herein made and other good and valuable consideration, the parties hereto hereby agree, to further amend and restate the
Prior Operating Agreement in its entirety as follows:

 

Article I

 

DEFINITIONS AND USAGE

 

Section 1.01     Definitions.

 

(a)      The
following terms shall have the following meanings for the purposes of this Agreement:

 

“Additional Member” means any
Person admitted as a Member of the Company pursuant to Section 3.02 in connection with the new issuance of Units to such Person.

 

     

     

    

 

“Adjusted Capital Account Deficit”
means, with respect to any Member, the deficit balance, if any, in such Member’s Capital Account as of the end of the relevant Fiscal
Year, after giving effect to the following adjustments:

 

(i)            Credit
to such Capital Account any amounts that such Member is deemed to be obligated to restore pursuant to the penultimate sentence in Treasury
Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5); and

 

(ii)           Debit
to such Capital Account the items described in Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) and
1.704-1(b)(2)(ii)(d)(6).

 

The foregoing definition of Adjusted Capital Account Deficit is intended
to comply with the provisions of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

 

“Affiliate” means, with respect
to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with such Person; provided
that no Member nor any Affiliate of any Member shall be deemed to be an Affiliate of any other Member or any of its Affiliates solely
by virtue of such Members’ Units.

 

“Applicable Law” means, with respect
to any Person, any federal, state or local law (statutory, common or otherwise), constitution, treaty, convention, ordinance, code, rule,
regulation, order, injunction, judgment, decree, ruling or other similar requirement enacted, adopted, promulgated or applied by a Governmental
Authority or Regulatory Agency that is binding upon or applicable to such Person or its assets, as amended unless expressly specified
otherwise.

 

“Business Day” means a day, other
than Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by Applicable
Law to close.

 

“Capital Account” means the capital
account established and maintained for each Member pursuant to Section 5.02.

 

“Capital Contribution” means,
with respect to any Member, the amount of money and the initial Carrying Value of any Property (other than money) contributed to the Company.

 

“Carrying Value” means with respect
to any Property (other than money), such Property’s adjusted basis for U.S. federal income tax purposes, except as follows:

 

(i)            The
initial Carrying Value of any such Property contributed by a Member to the Company shall be the gross fair market value of such Property,
as reasonably determined by the Managing Member;

 

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(ii)           The
Carrying Values of all such Properties shall be adjusted to equal their respective gross fair market values (taking Section 7701(g) of
the Code into account), as reasonably determined by the Managing Member, at the time of any Revaluation pursuant to Section 5.02(c);

 

(iii)          The
Carrying Value of any item of such Properties distributed to any Member shall be adjusted to equal the gross fair market value (taking
Section 7701(g) of the Code into account) of such Property on the date of distribution as reasonably determined by the Managing
Member; and

 

(iv)          The
Carrying Values of such Properties shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such Properties
pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account
in determining Capital Accounts pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m) and subparagraph (vi) of
the definition of “Net Income” and “Net Loss” or Section 5.04(b)(vi); provided, however,
that Carrying Values shall not be adjusted pursuant to this subparagraph (iv) to the extent that an adjustment pursuant to subparagraph (ii) is
required in connection with a transaction that would otherwise result in an adjustment pursuant to this subparagraph (iv). If the Carrying
Value of such Property has been determined or adjusted pursuant to subparagraph (i), (ii) or (iv), such Carrying Value shall
thereafter be adjusted by the Depreciation taken into account with respect to such asset, for purposes of computing Net Income and Net
Loss.

 

“Class A Common Stock” means
Class A common stock, $0.00001 par value per share, of Clear Secure.

 

“Class B Common Stock” means
Class B common stock, $0.00001 par value per share, of Clear Secure.

 

“Class C Common Stock” means
Class C common stock, $0.00001 par value per share, of Clear Secure.

 

“Class D Common Stock” means
Class D common stock, $0.00001 par value per share, of Clear Secure.

 

“Clear Secure Common Stock” means
all classes and series of common stock of Clear Secure, including the Class A Common Stock, Class B Common Stock, Class C
Common Stock and Class D Common Stock.

 

“Clear Secure Equity Plan” means
the Clear Secure, Inc. 2021 Omnibus Incentive Plan, as the same may be amended from time to time.

 

“Clear Secure Member” means (i) Clear
Secure and (ii) any Subsidiary of Clear Secure (other than the Company and its Subsidiaries) that is a Member.

 

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“Clear Secure Subscription Agreements”
means those certain Subscription Agreements by and between Clear Secure and each of the Non-Clear Secure Members as of the date hereof.

 

“Code” means the Internal Revenue
Code of 1986, as amended from time to time.

 

“Common Unit” means a common limited
liability company interest in the Company.

 

“Company Business” means business
of providing secure biometric identification services for travel and other secure identification applications, as conducted by the Company
and its subsidiaries from time to time.

 

“Company Minimum Gain” means “partnership
minimum gain,” as defined in Treasury Regulation Sections 1.704-2(b)(2) and 1.704-2(d).

 

“Control” including the terms
 “controlling,” “controlled by” and “under common control with,” means the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through the
ownership of voting stock, by contract, or otherwise.

 

“Covered Person” means (i) each
Member or an Affiliate thereof, in each case in such capacity, (ii) each officer, director, shareholder, member, partner, employee,
representative, agent or trustee of a Member or an Affiliate thereof, in all cases in such capacity and (iii) each officer, director,
shareholder (other than any public shareholder of Clear Secure that is not a Member), member, partner, employee, representative, agent
or trustee of the Managing Member, Clear Secure (in the event Clear Secure is not the Managing Member), the Company or an Affiliate controlled
thereby, in all cases in such capacity.

 

“Delaware Act” means the Delaware
Limited Liability Company Act, 6 Del. C. §§ 18-101 et seq.

 

“Depreciation” means, for each
Fiscal Year, an amount equal to the depreciation, amortization, or other cost recovery deduction allowable with respect to an asset for
such Fiscal Year, except that if the Carrying Value of an asset differs from its adjusted basis for U.S. federal income tax purposes at
the beginning of such Fiscal Year, Depreciation shall be an amount that bears the same ratio to such beginning Carrying Value as the U.S.
federal income tax depreciation, amortization, or other cost recovery deduction for such Fiscal Year bears to such beginning adjusted
tax basis; provided, however, that if the adjusted basis for U.S. federal income tax purposes of an asset at the beginning
of such Fiscal Year is zero, Depreciation shall be determined with reference to such beginning Carrying Value using any reasonable method
selected by the Managing Member.

 

“DGCL” means the General Corporation
Law of the State of Delaware, as amended from time to time.

 

    4

     

    

 

“Equity Securities” means, with
respect to any Person, any (i) membership interests or shares of capital stock, (ii) equity, ownership, voting, profit or participation
interests or (iii) similar rights or securities in such Person or any of its Subsidiaries, or any rights or securities convertible
into or exchangeable for, options or other rights to acquire from such Person or any of its Subsidiaries, or obligation on the part of
such Person or any of its Subsidiaries to issue, any of the foregoing.

 

“Exchange Agreement” means the
Exchange Agreement, dated as of the date hereof, by and among Clear Secure, the Company and the holders of Common Units and shares of
Class C Common Stock and Class D Common Stock from time to time party thereto.

 

“Family Member” means, with respect
to any natural person, the spouse, domestic partner, parents, grandparents, lineal descendants, siblings of such person or such person’s
spouse and lineal descendants of siblings of such person or such person’s spouse. Lineal descendants shall include adopted persons
(but only so long as they are adopted during minority), former spouses or former domestic partners of such person.

 

“FINRA” means the Financial Industry
Regulatory Authority, Inc.

 

“Fiscal Year” means the Company’s
fiscal year, which shall initially be the calendar year and which may be changed from time to time as determined by the Managing Member.

 

“Form 8-A Effective Time”
has the meaning set forth in the Reorganization Agreement.

 

“Founder Post-IPO Members” means
Alclear Investments, LLC, a Delaware limited liability company, and Alclear Investments II, LLC, a Delaware limited liability company.

 

“Governmental Authority” means
any transnational, domestic or foreign federal, state or local governmental, regulatory or administrative authority, department, court,
agency or official, including any political subdivision thereof.

 

“Highest Member Tax Amount” means
the Member receiving the greatest proportionate allocation of taxable income attributable to its ownership of the Company in the applicable
tax period (or portion thereof) (including as a result of the application of Section 704(c) of the Code or otherwise), and calculated
by multiplying (x) the aggregate taxable income allocated to such Member  (excluding the tax consequences resulting
from any adjustment under Sections 743(b) and 734(b) of the Code in such applicable taxable period (or portion thereof), by
(y) the Tax Rate.

 

“Indebtedness” means (a) all
indebtedness for borrowed money (including capitalized lease obligations, sale-leaseback transactions or other similar transactions, however
evidenced), (b) any other indebtedness that is evidenced by a note, bond, debenture, draft or similar instrument, (c) notes
payable and (d) lines of credit and any other agreements relating to the borrowing of money or extension of credit.

 

    5

     

    

 

“IPO” means the initial underwritten
public offering of Clear Secure.

 

“Managing Member” means (i) Clear
Secure so long as Clear Secure has not withdrawn as the Managing Member pursuant to Section 7.02 and (ii) any successor
thereof appointed as Managing Member in accordance with Section 7.02.

 

“Member” means any Person named
as a Member of the Company on the Member Schedule and the books and records of the Company, as the same may be amended from time
to time to reflect any Person admitted as an Additional Member or a Substitute Member, for so long as such Person continues to be a Member
of the Company.

 

“Member Nonrecourse Debt” has
the same meaning as the term “partner nonrecourse debt” in Treasury Regulations Section 1.704-2(b)(4).

 

“Member Nonrecourse Debt Minimum Gain”
means an amount with respect to each “partner nonrecourse debt” (as defined in Treasury Regulation Section 1.704-2(b)(4))
equal to the Company Minimum Gain that would result if such partner nonrecourse debt were treated as a nonrecourse liability (as defined
in Treasury Regulation Section 1.752-1(a)(2)) determined in accordance with Treasury Regulation Section 1.704-2(i)(3).

 

“Member Nonrecourse Deductions”
has the same meaning as the term “partner nonrecourse deductions” in Treasury Regulations Sections 1.704-2(i)(1) and
1.704-2(i)(2).

 

“MIP” means Alclear Holdings,
LLC Amended and Restated Equity Incentive Plan and the applicable individual award agreement thereunder.

 

“Net Income” and “Net
Loss” mean, for each Fiscal Year or other period, an amount equal to the Company’s taxable income or loss for such Fiscal
Year or period, determined in accordance with Section 703(a) of the Code (for this purpose, all items of income, gain, loss,
or deduction required to be stated separately pursuant to Section 703(a)(1) of the Code shall be included in taxable income
or loss), with the following adjustments (without duplication):

 

(i)           Any
income of the Company that is exempt from U.S. federal income tax and not otherwise taken into account in computing Net Income or Net
Loss pursuant to this definition of “Net Income” and “Net Loss” shall be added to such taxable income or loss;

 

(ii)          Any
expenditures of the Company described in Section 705(a)(2)(B) of the Code or treated as Section 705(a)(2)(B) of the
Code expenditures pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing
Net Income and Net Loss pursuant to this definition of “Net Income” and “Net Loss,” shall be treated as deductible
items;

 

    6

     

    

 

(iii)          In
the event the Carrying Value of any Company asset is adjusted pursuant to subparagraphs (ii) or (iii) of the definition of “Carrying
Value,” the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the Carrying Value of the
asset) or an item of loss (if the adjustment decreases the Carrying Value of the asset) from the disposition of such asset and shall be
taken into account, immediately prior to the event giving rise to such adjustment, for purposes of computing Net Income or Net Loss;

 

(iv)          Gain
or loss resulting from any disposition of Property with respect to which gain or loss is recognized for U.S. federal income tax purposes
shall be computed by reference to the Carrying Value of the Property disposed of, notwithstanding that the adjusted tax basis of such
Property differs from its Carrying Value;

 

(v)           In
lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income or loss,
there shall be taken into account Depreciation for such Fiscal Year, computed in accordance with the definition of Depreciation;

 

(vi)          To
the extent an adjustment to the adjusted tax basis of any Company asset pursuant to Section 734(b) of the Code is required,
pursuant to Treasury Regulations Section 1.704-(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts as a result
of a distribution other than in liquidation of a Member’s interest in the Company, the amount of such adjustment shall be treated
as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) from the disposition
of such asset and shall be taken into account for purposes of computing Net Income or Net Loss; and

 

(vii)         Notwithstanding
any other provision of this definition, any items that are specially allocated pursuant to Section 5.04(b), Section 5.04(c) and
Section 5.04(d) shall not be taken into account in computing Net Income and Net Loss.

 

The amounts of the items of Company income, gain,
loss, or deduction available to be specially allocated pursuant to Section 5.04(b), Section 5.04(c) and Section 5.04(d) shall
be determined by applying rules analogous to those set forth in subparagraphs (i) through (vi) above.

 

“Non-Clear Secure Member” means
any Member that is not a Clear Secure Member.

 

“Nonrecourse Deductions” has the
meaning set forth in Treasury Regulations Sections 1.704-2(b)(1) and 1.704-2(c).

 

“Paired Interest” has the meaning
set forth in the Exchange Agreement.

 

“Partnership Audit Provisions”
means Title XI, Section 1101, of the Bipartisan Budget Act of 2015, P.L. 114-74 (together with any subsequent amendments thereto,
Treasury Regulations promulgated thereunder, and published administrative interpretations thereof, and any comparable provisions of state
or local tax law).

 

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“Percentage Interest” means, with
respect to any Member, a fractional amount, expressed as a percentage: (i) the numerator of which is the aggregate number of Common
Units owned of record thereby (excluding any Unvested Common Units) and (ii) the denominator of which is the aggregate number of
Common Units issued and outstanding (excluding any Unvested Common Units). The sum of the outstanding Percentage Interests of all Members
shall at all times equal 100%.

 

“Permitted Transfer” means any
Transfer to any Permitted Transferee.

 

“Permitted Transferee” means,
with respect to any Member, (i) any Affiliate of such Member, (ii) a donee of Units who is a member of the family of such Member
or any trust for the benefit of any such family member or (iii) a transferee of Units who receives such Units by will or the laws
of descent and distribution. For purposes of this definition, the word “family” shall include any spouse, lineal ancestor
or descendant, brother or sister. Notwithstanding the foregoing, in no event shall any Person that directly or indirectly competes with
the Company (as reasonably determined by the Managing Member) in the Company Business constitute a Permitted Transferee.

 

“Person” means any individual,
corporation, partnership, unincorporated association or other entity.

 

“Prime Rate” means the rate of
interest from time to time identified by JP Morgan Chase, N.A. as being its “prime” or “reference” rate.

 

“Property” means an interest of
any kind in any real, personal or intellectual (or mixed) property, including cash, and any improvements thereto, and shall include both
tangible and intangible property.

 

“Registration Rights Agreement”
means the Registration Rights Agreement, dated as of the date hereof, by and among Clear Secure and the other parties thereto.

 

“Regulatory Agency” means the
SEC, FINRA and any other regulatory authority or body (including any state or provincial securities authority and any self-regulatory
organization) with jurisdiction over the Company or any of its Subsidiaries.

 

“Relative Percentage Interest”
means, with respect to any Member relative to another Member or Members, a fractional amount, expressed as a percentage, the numerator
of which is the Percentage Interest of such Member; and the denominator of which is (x) the Percentage Interest of such Member plus
(y) the aggregate Percentage Interest of such other Member or Members.

 

“Reorganization Date Capital Account Balance”
means, with respect to any Member, the positive Capital Account balance of such Member as of immediately following the Reorganization,
the amount or deemed value of which is set forth on the Member Schedule.

 

    8

     

    

 

“Reorganization Documents” means
the Reorganization Agreement, this Agreement, the Tax Receivable Agreement, the Exchange Agreement, the Registration Rights Agreement,
the Clear Secure Subscription Agreement and the MIP.

 

“SEC” means the United States
Securities and Exchange Commission.

 

“Subsidiary” means, with respect
to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which more
than 50% of the total voting power of Equity Securities or other ownership interests entitled (without regard to the occurrence of any
contingency) to vote in the election of the Person or Persons (whether directors, managers, trustees or other Persons performing similar
functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof.

 

“Substitute Member” means any
Person admitted as a Member of the Company pursuant to Section 3.02 in connection with the Transfer of then-existing Units
to such Person.

 

“Tax Amount” means the Highest
Member Tax Amount divided by the Percentage Interest of the Member described in the definition of “Highest Member Tax Amount”.

 

“Tax Distribution” means a distribution
made by the Company pursuant to Section 5.03(e)(i) or Section 5.03(e)(iii) or a distribution made by
the Company pursuant to another provision of Section 5.03 but designated as a Tax Distribution pursuant to Section 5.03(e)(ii).

 

“Tax Distribution Amount” means,
with respect to a Member’s Units, whichever of the following applies with respect to the applicable Tax Distribution, in each case
in amount not less than zero:

 

(i)            With
respect to a Tax Distribution pursuant to Section 5.03(e)(i), the excess, if any, of (A) such Member’s required
annualized income installment for such estimated payment date under Section 6655(e) of the Code, assuming that (x) such
Member is a corporation (which assumption, for the avoidance of doubt, shall not affect the determination of the Tax Rate), (y) Section 6655(e)(2)(C)(ii) is
in effect and (z) such Member’s only income is from the Company, which amount shall be calculated based on the projections
believed by the Managing Member in good faith to be, reasonable projections of the product of (1) the Tax Amount and (2) such
Member’s Percentage Interest over (B) the aggregate amount of Tax Distributions designated by the Company pursuant to Section 5.03(e)(ii) with
respect to such Units since the date of the previous Tax Distribution pursuant to Section 5.03(e)(i) (or if no such Tax
Distribution was required to be made, the date such Tax Distribution would have been made pursuant to Section 5.03(e)(i)).

 

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(ii)           With
respect to the designation of an amount as a Tax Distribution pursuant to Section 5.03(e)(ii), the product of (x) the
Tax Amount projected, in the good faith belief of the Managing Member, during the period since the date of the previous Tax Distribution
(or, if more recent, the date that the previous Tax Distribution pursuant to Section 5.03(e)(i) would have been made
or, in the case of the first distribution pursuant to Section 5.03(b), the date of this Agreement) and (y) such Member’s
Percentage Interest.

 

(iii)          With
respect to an entire Fiscal Year to be calculated for purposes of Section 5.03(e)(iii), the excess, if any, of (A) the
product of (x) the Tax Amount for the relevant Fiscal Year and (y) such Member’s Percentage Interest, over (B) the
aggregate amount of Tax Distributions (other than Tax Distributions under Section 5.03(e)(iii) with respect to a prior
Fiscal Year) with respect to such Units made with respect to such Fiscal Year.

 

“Tax Rate” means the highest marginal
federal, state and local tax rate for an individual or corporation that is resident in New York City or California (whichever is higher)
applicable to ordinary income, qualified dividend income or capital gains, as appropriate, taking into account the holding period of the
assets disposed of and the year in which the taxable net income is recognized by the Company, and taking into account the deductibility
of state and local income taxes as applicable at the time for U.S. federal income tax purposes and any limitations thereon including pursuant
to Section 68 of the Code or Section 164 of the Code, which Tax Rate shall be the same for all Members.

 

“Tax Receivable Agreement” means
the Tax Receivable Agreement, dated as of [●], 2021, by and among Clear Secure, Alclear Investments, LLC, Alclear Investments II,
LLC and the other parties thereto.

 

“Transfer” of a Unit means, directly
or indirectly, any sale, assignment, transfer, exchange, gift, bequest, pledge, hypothecation or other disposition or encumbrance of such
Unit or any legal or beneficial interest in such Unit, in whole or in part, whether or not for value and whether voluntary or involuntary
or by operation of Applicable Law, and shall include all matters deemed to constitute a Transfer under Article VIII; provided,
however, that the following shall not be considered a “Transfer”: (i) the pledge of Units by a Member that creates
a mere security interest in such Units pursuant to a bona fide loan or indebtedness transaction so long as such Member continues to exercise
sole voting control over such pledged Units; provided, however, that a foreclosure on such Units or other similar action
by the pledgee shall constitute a “Transfer”; or (ii) the fact that the spouse of any Member possesses or obtains an
interest in such Member’s Units arising solely by reason of the application of the community property laws of any jurisdiction,
so long as no other event or circumstance shall exist or have occurred that constitutes a “Transfer” of such Units. The terms
 “Transferred”, “Transferring”, “Transferor”, “Transferee”
and “Transferable” have meanings correlative to the foregoing.

 

    10

     

    

 

“Treasury Regulations” mean the
regulations promulgated under the Code, as amended from time to time.

 

“Units” means Common Units or
any other class of limited liability interests in the Company designated by the Company after the date hereof in accordance with this
Agreement; provided that any type, class or series of Units shall have the designations, preferences or special rights set forth
or referenced in this Agreement, and the membership interests of the Company represented by such type, class or series of Units shall
be determined in accordance with such designations, preferences or special rights.

 

“Unvested Common Unit” means,
on any date of determination, any Common Unit held by a Member that is not “vested” in accordance with the MIP.

 

“Unvested Member” means any Member
that is a holder of Unvested Common Units in such Member’s capacity as a holder of such Unvested Common Units.

 

(b)           Each
of the following terms is defined in the Section set forth opposite such term:

 

	Term	Section
	Agreement	Preamble
	Clear Secure	Preamble
	Company	Preamble
	Confidential Information	12.10(b)
	Controlled Entities	10.02(e)
	Dissolution Event	11.01(c)
	Economic Clear Secure Security	4.01(a)
	e-mail	12.03
	Expenses	10.02(e)
	GAAP	3.03(b)
	Imputed Underpayment Amount	6.01(b)
	Indemnification Sources	10.02(e)
	Indemnitee-Related Entities	10.02(e)(i)
	Jointly Indemnifiable Claims	10.02(e)(ii)
	Member Parties	12.10(a)
	Noncompete Term	9.01
	Officers	7.05(a)
	Prior Operating Agreement	Recitals
	Process Agent	12.05(b)
	Regulatory Allocations	5.04(c)
	Reorganization	Recitals
	Reorganization Agreement	Recitals
	Restricted Person	9.01
	Revaluation	5.02(c)
	Withholding Advances	5.06(b)

 

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Section 1.02     Other
Definitional and Interpretative Provisions. The words “hereof”, “herein” and “hereunder” and
words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.
The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof.
References to Articles, Sections and Schedules are to Articles, Sections and Schedules of this Agreement unless otherwise specified.
All Schedules annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth
in full herein. Any capitalized terms used in any Schedule but not otherwise defined therein, shall have the meaning as defined
in this Agreement. Any singular term in this Agreement shall be deemed to include the plural, and any plural term the singular. Whenever
the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to
be followed by the words “without limitation”, whether or not they are in fact followed by those words or words of like import.
The word “or” shall be disjunctive but not exclusive. “Writing”, “written” and comparable terms refer
to printing, typing and other means of reproducing words (including electronic media) in a visible form. References to any statute shall
be deemed to refer to such statute as amended from time to time and to any rules or regulations promulgated thereunder. References
to any agreement or contract are to that agreement or contract as amended, modified or supplemented from time to time in accordance with
the terms hereof and thereof. References to any Person include the successors and permitted assigns of that Person. References from or
through any date mean, unless otherwise specified, from and including or through and including, respectively. References to “law”,
 “laws” or to a particular statute or law shall be deemed also to include any Applicable Law. As used in this Agreement, all
references to “majority in interest” and phrases of similar import shall be deemed to refer to such percentage or fraction
of interest based on the Relative Percentage Interests of the Members subject to such determination. Unless otherwise expressly provided
herein, when any approval, consent or other matter requires any action or approval of any group of Members, including any holders of
any class of Units, such approval, consent or other matter shall require the approval of a majority in interest of such group of Members.
Except to the extent otherwise expressly provided herein, all references to any Member shall be deemed to refer solely to such Person
in its capacity as such Member and not in any other capacity.

 

Article II

 

THE COMPANY

 

Section 2.01     Formation.
The Company was formed upon the filing of the certificate of formation of the Company with the Secretary of State of the State of Delaware
on January 21, 2010. The Managing Member or an “authorized person” within the meaning of the Delaware Act shall file
and record any amendments or restatements to the certificate of formation of the Company and such other certificates and documents (and
any amendments or restatements thereof) as may be required under the laws of the State of Delaware and of any other jurisdiction in which
the Company may conduct business. The authorized officer or representative shall, on request, provide any Member with copies of each
such document as filed and recorded. The Members hereby agree that the Company and its Subsidiaries shall be governed by the terms and
conditions of this Agreement and, except as provided herein, the Delaware Act.

 

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Section 2.02         Name.
The name of the Company shall be Alclear Holdings, LLC; provided that the Managing Member may change the name of the Company
to such other name as the Managing Member shall determine in its sole discretion, and shall have the authority to execute, acknowledge,
deliver, file and record such further certificates, amendments, instruments and documents, and to do all such other acts and things,
as may be required by Applicable Law or as, in the reasonable judgment of the Managing Member, may be necessary or advisable to effect
such change.

 

Section 2.03         Term.
The Company shall have perpetual existence unless sooner dissolved and its affairs wound up as provided in Article XI.

 

Section 2.04         Registered
Agent and Registered Office. The name of the registered agent of the Company for service of
process on the Company in the State of Delaware shall be Corporation Service Company, and the address of such registered agent and the
address of the registered office of the Company in the State of Delaware shall be 2711 Centerville Road, Suite 400, Wilmington,
New Castle County, Delaware, 19808. Such office and such agent may be changed to such place within the State of Delaware and any successor
registered agent, respectively, as may be determined from time to time by the Managing Member in accordance with the Delaware Act.

 

Section 2.05         Purposes.
The primary business and purpose of the Company shall be to engage in such activities as are permitted under the Delaware Act and determined
from time to time by the Managing Member in accordance with the terms and conditions of this Agreement.

 

Section 2.06         Powers
of the Company. The Company shall have the power and authority to take any and all actions necessary, appropriate or advisable to
or for the furtherance of the purposes set forth in Section 2.05.

 

Section 2.07         Partnership
Tax Status. The Members intend that the Company shall be treated as a partnership for federal, state and local income tax purposes
to the extent such treatment is available, and agree to take (or refrain from taking) such actions as may be necessary to receive and
maintain such treatment and refrain from taking any actions inconsistent thereof.

 

Section 2.08         Regulation
of Internal Affairs. The internal affairs of the Company and the conduct of its business shall be regulated by this Agreement, and
to the extent not provided for herein, shall be determined by the Managing Member.

 

Section 2.09         Ownership
of Property. Legal title to all Property, conveyed to, or held by the Company or its Subsidiaries shall reside in the Company or
its Subsidiaries and shall be conveyed only in the name of the Company or its Subsidiaries and no Member or any other Person, individually,
shall have any ownership of such Property.

 

Section 2.10         Subsidiaries.
The Company shall cause the business and affairs of each of the Subsidiaries to be managed by the Managing Member in accordance with
and in a manner consistent with this Agreement.

 

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Article III

 

UNITS; MEMBERS; BOOKS AND RECORDS; REPORTS

 

Section 3.01         Units;
Admission of Members.

 

(a)          Effective
upon the Reorganization, pursuant to Section [2.1(b)(iii)] of the Reorganization Agreement, (i) Clear Secure has been admitted
to the Company as the Managing Member and (ii) the Company has hereby reclassified all membership interests of the Company outstanding
as of immediately prior to the Form 8-A Effective Time into the number of Common Units, in the aggregate, set forth on Schedule
A (the “Member Schedule”). The Member Schedule shall be maintained by the Managing Member on behalf of the Company
in accordance with this Agreement and, upon any subsequent update to the Member Schedule, the Managing Member shall promptly deliver a
copy of such updated Member Schedule to each Member. When any Units or other Equity Securities of the Company are issued, repurchased,
redeemed, converted or Transferred in accordance with this Agreement, the Member Schedule shall be amended by the Managing Member to reflect
such issuance, repurchase, redemption or Transfer, the admission of additional or substitute Members and the resulting Percentage Interest
of each Member. Following the date hereof, no Person shall be admitted as a Member and no additional Units shall be issued except as expressly
provided herein.

 

(b)         The
Managing Member may cause the Company to authorize and issue from time to time such other Units or other Equity Securities of any type,
class or series and having the designations, preferences or special rights as may be determined the Managing Member. Such Units or other
Equity Securities may be issued pursuant to such agreements as the Managing Member shall approve with respect to Persons employed by or
otherwise performing services for the Company or any of its Subsidiaries, other equity compensation agreements, options or warrants. When
any such other Units or other Equity Securities are authorized and issued, the Member Schedule and this Agreement shall be amended
by the Managing Member to reflect such additional issuances and resulting dilution, which shall be borne pro rata by all Members based
on their Common Units.

 

(c)         Unvested
Common Units shall be subject to the terms of the MIP, and the Managing Member shall have sole and absolute discretion to interpret and
administer the MIP and to adopt such amendments thereto or otherwise determine the terms and conditions of such Unvested Common Units
in accordance with this Agreement. Distributions shall not be made in respect of Unvested Common Units. Unvested Common Units that fail
to vest and are forfeited by the applicable Unvested Member shall be cancelled by the Company (and the corresponding shares of Class C
Common Stock or Class D Common Stock, as applicable, constituting the remainder of any Paired Interests in which such Unvested Common
Units were included shall be cancelled by Clear Secure, in each case for no consideration) and shall not be entitled to any distributions
pursuant to Section 5.03.

 

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Section 3.02        Substitute
Members and Additional Members.

 

(a)         No
Transferee of any Units or Person to whom any Units are issued pursuant to this Agreement shall be admitted as a Member hereunder or
acquire any rights hereunder, including any class voting rights or the right to receive distributions and allocations in respect of the
Transferred or issued Units, as applicable, unless (i) such Units are Transferred or issued in compliance with the provisions of
this Agreement (including Article VIII) and (ii) such Transferee or recipient shall have executed and delivered to the Company
such instruments as the Managing Member deems necessary or desirable, in its reasonable discretion, to effectuate the admission of such
Transferee or recipient as a Member and to confirm the agreement of such Transferee or recipient to be bound by all the terms and provisions
of this Agreement. Upon complying with the immediately preceding sentence, without the need for any further action of any Person, a Transferee
or recipient shall be deemed admitted to the Company as a Member. A Substitute Member shall enjoy the same rights, and be subject to
the same obligations, as the Transferor; provided that such Transferor shall not be relieved of any obligation or liability hereunder
arising prior to the consummation of such Transfer but shall be relieved of all future obligations with respect to the Units so Transferred.
As promptly as practicable after the admission of any Person as a Member, the books and records of the Company shall be changed to reflect
such admission of a Substitute Member or Additional Member. In the event of any admission of a Substitute Member or Additional Member
pursuant to this Section 3.02(a), this Agreement shall be deemed amended to reflect such admission, and any formal amendment of
this Agreement (including the Member Schedule) in connection therewith shall only require execution by the Company and such Substitute
Member or Additional Member, as applicable, to be effective.

 

(b)         If
a Member shall Transfer all (but not less than all) its Units, the Member shall thereupon cease to be a Member of the Company.

 

Section 3.03         Tax
and Accounting Information.

 

(a)         Accounting
Decisions and Reliance on Others. All decisions as to accounting matters, except as otherwise specifically set forth herein, shall
be made by the Managing Member in accordance with Applicable Law and with accounting methods followed for U.S. federal income tax purposes.
In making such decisions, the Managing Member may rely upon the advice of the independent accountants of the Company.

 

(b)         Records
and Accounting Maintained. The books and records of the Company shall be kept, and the financial position and the results of its
operations recorded, in all material respects in accordance with United States generally accepted accounting principles as in effect
from time to time (“GAAP”). The Fiscal Year of the Company shall be used for financial reporting and for U.S. federal
income tax purposes.

 

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(c)            Financial
Reports.

 

(i)             The
books and records of the Company shall be audited as of the end of each Fiscal Year by the same accounting firm that audits the books
and records of Clear Secure (or, if such firm declines to perform such audit, by an accounting firm selected by the Managing Member).

 

(ii)            In
the event neither Clear Secure nor the Company is required to file an annual report on Form 10-K or quarterly report on Form 10-Q,
the Company shall deliver, or cause to be delivered, the following to each Member:

 

(A)          not
later than ninety (90) days after the end of each fiscal year of the Company, a copy of the audited consolidated balance sheet of the
Company and its Subsidiaries as of the end of such fiscal year and the related statements of operations and cash flows for such fiscal
year, setting forth in each case in comparative form the figures for the previous year, all in reasonable detail; and

 

(B)           not
later than forty five (45) days or such later time as permitted under applicable securities law after the end of each of the first three
fiscal quarters of each fiscal year, the unaudited consolidated balance sheet of the Company and its Subsidiaries, and the related statements
of operations and cash flows for such quarter and for the period commencing on the first day of the fiscal year and ending on the last
day of such quarter.

 

(d)            Tax
Returns.

 

(i)             The
Company shall timely cause to be prepared by an accounting firm selected by the Managing Member all federal, state, local and foreign
tax returns (including information returns) of the Company and its Subsidiaries, which may be required by a jurisdiction in which the
Company and its Subsidiaries operate or conduct business for each year or period for which such returns are required to be filed and shall
cause such returns to be timely filed. Copies of the Company’s tax returns shall be kept at the Company’s principal place
of business or at such other place as the Partnership Representative shall determine and shall be available for inspection by the Members
or their duly authorized representatives during regular business hours; and

 

(ii)            The
Company shall furnish to each Member (a) as soon as practicable after the end of each Fiscal Year, all information concerning the
Company and its Subsidiaries required for the preparation of tax returns of such Members (or any beneficial owner(s) of such Member),
including a report (including Schedule K-1), indicating each Member’s share of the Company’s taxable income, gain, credits,
losses and deductions for such year, in sufficient detail to enable such Member to prepare its federal, state and other tax returns,
(b) as soon as reasonably possible after the close of the relevant fiscal period, but in no event later than ten days prior to the
date an estimated tax payment is due, such information concerning the Company as is required to enable such Member (or any beneficial
owner of such Member) to pay estimated taxes and (c) as soon as reasonably possible after a request by such Member, such other information
concerning the Company and its Subsidiaries that is reasonably requested by such Member for compliance with its tax obligations (or the
tax obligations of any beneficial owner(s) of such Member) or for tax planning purposes.

 

    16 

     

    

 

(e)            Inconsistent
Positions. No Member shall take a position on its income tax return with respect to any item of Company income, gain, deduction, loss
or credit that is different from the position taken on the Company’s income tax return with respect to such item unless such Member
notifies the Company of the different position the Member desires to take and the Company’s regular tax advisors, after consulting
with the Member, are unable to provide an opinion that (after taking into account all of the relevant facts and circumstances) the arguments
in favor of the Company’s position outweigh the arguments in favor of the Member’s position.

 

Section 3.04           Books
and Records. The Company shall keep full and accurate books of account and other records of the Company at its principal place of
business. No Member (other than the Managing Member) shall have any right to inspect the books and records of Clear Secure, the Company
or any of its Subsidiaries.

 

Article IV

 

CLEAR SECURE OWNERSHIP; RESTRICTIONS ON CLEAR SECURE
STOCK

 

Section 4.01           Clear
Secure Ownership.

 

(a)            If
at any time Clear Secure issues a share of Class A Common Stock or Class B Common Stock or any other Equity Security of Clear
Secure entitled to any economic rights (including in the IPO) (an “Economic Clear Secure Security”) with regard thereto
(other than Class C Common Stock, Class D Common Stock or other Equity Security of Clear Secure not entitled to any economic
rights with respect thereto), (i) the Company shall issue to Clear Secure one Common Unit (if Clear Secure issues a share of Class A
Common Stock or Class B Common Stock) or such other Equity Security of the Company (if Clear Secure issues an Economic Clear Secure
Security other than Class A Common Stock or Class B Common Stock) corresponding to the Economic Clear Secure Security, and with
substantially the same rights to dividends and distributions (including distributions upon liquidation) and other economic rights as those
of such Economic Clear Secure Security and (ii) the net proceeds received by Clear Secure with respect to the corresponding Economic
Clear Secure Security, if any, shall be concurrently contributed to the Company; provided, however, that if Clear Secure
issues any Economic Clear Secure Securities, some or all of the net proceeds of which are to be used to fund expenses or other obligations
of Clear Secure for which Clear Secure would be permitted a distribution pursuant to Section 5.03(c), then Clear Secure shall
not be required to transfer such net proceeds to the Company which are used or will be used to fund such expenses or obligations, and
provided, further, that if Clear Secure issues any shares of Class A Common Stock or Class B Common Stock in order
to purchase or fund the purchase from a Non-Clear Secure Member of a number of Common Units (and shares of Class C Common Stock or
Class D Common Stock, as applicable) or to purchase or fund the purchase of shares of Class A Common Stock or Class B Common
Stock, in each case equal to the number of shares of Class A Common Stock or Class B Common Stock issued, then the Company shall
not issue any new Common Units in connection therewith and Clear Secure shall not be required to transfer such net proceeds to the Company
(it being understood that such net proceeds shall instead be transferred to such Non-Clear Secure Member as consideration for such purchase).

 

    17 

     

    

 

(b)            Notwithstanding
Section 4.01(a), this Article IV shall not apply (i) to the issuance and distribution to holders of shares
of Clear Secure Common Stock of rights to purchase Equity Securities of Clear Secure under a “poison pill” or similar shareholders
rights plan (it being understood that upon exchange of Paired Interests for Class A Common Stock or Class B Common Stock, as
the case may be, pursuant to the Exchange Agreement, such Class A Common Stock or Class B Common Stock, as the case may be,
will be issued together with a corresponding right) or (ii) to the issuance under the Clear Secure Equity Plan or Clear Secure’s
other employee benefit plans of any warrants, options or other rights to acquire Equity Securities of Clear Secure or rights or property
that may be converted into or settled in Equity Securities of Clear Secure, but shall in each of the foregoing cases apply to the issuance
of Equity Securities of Clear Secure in connection with the exercise or settlement of such rights, warrants, options or other rights or
property.

 

Section 4.02           Restrictions
on Clear Secure Common Stock.

 

(a)            Except
as otherwise determined by the Managing Member in accordance with Section 4.02(d), (i) the Company may not issue any
additional Common Units to Clear Secure or any of its Subsidiaries unless substantially simultaneously therewith Clear Secure or such
Subsidiary issues or sells an equal number of shares of Class A Common Stock or Class B Common Stock to another Person and (ii) the
Company may not issue any other Equity Securities of the Company to Clear Secure or any of its Subsidiaries unless substantially simultaneously,
Clear Secure or such Subsidiary issues or sells, to another Person, an equal number of shares of a new class or series of Equity Securities
of Clear Secure or such Subsidiary with substantially the same rights to dividends and distributions (including distributions upon liquidation)
and other economic rights as those of such Equity Securities of the Company.

 

    18 

     

    

 

(b)            Except
as otherwise determined by the Managing Member in accordance with Section 4.02(d), (i) Clear Secure or any of its Subsidiaries
may not redeem, repurchase or otherwise acquire any shares of Class A Common Stock or Class B Common Stock unless substantially
simultaneously the Company redeems, repurchases or otherwise acquires from Clear Secure an equal number of Units for the same price per
security (or, if Clear Secure uses funds received from distributions from the Company or the net proceeds from an issuance of Class A
Common Stock or Class B Common Stock to fund such redemption, repurchase or acquisition, then the Company shall cancel an equal number
of Units for no consideration) and (ii) Clear Secure or any of its Subsidiaries may not redeem or repurchase any other Equity Securities
of Clear Secure unless substantially simultaneously, the Company redeems or repurchases from Clear Secure an equal number of Equity Securities
of the Company of a corresponding class or series with substantially the same rights to dividends and distributions (including distributions
upon liquidation) or other economic rights as those of such Equity Securities of Clear Secure for the same price per security (or, if
Clear Secure uses funds received from distributions from the Company or the net proceeds from an issuance of Equity Securities other than
Class A Common Stock or Class B Common Stock to fund such redemption, repurchase or acquisition, then the Company shall cancel
an equal number of its corresponding Equity Securities for no consideration). Except as otherwise determined by the Managing Member in
accordance with Section 4.02(d): (x) the Company may not redeem, repurchase or otherwise acquire Common Units from Clear
Secure or any of its Subsidiaries unless substantially simultaneously Clear Secure or such Subsidiary redeems, repurchases or otherwise
acquires an equal number of Class A Common Stock or Class B Common Stock for the same price per security from holders thereof
(except that if the Company cancels Common Units for no consideration as described in Section 4.02(b)(i), then the price per
security need not be the same) and (y) the Company may not redeem, repurchase or otherwise acquire any other Equity Securities of
the Company from Clear Secure or any of its Subsidiaries unless substantially simultaneously Clear Secure or such Subsidiary redeems,
repurchases or otherwise acquires for the same price per security an equal number of Equity Securities of Clear Secure of a corresponding
class or series with substantially the same rights to dividends and distributions (including dividends and distributions upon liquidation)
and other economic rights as those of such Equity Securities of Clear Secure (except that if the Company cancels Equity Securities for
no consideration as described in Section 4.02(b)(ii), then the price per security need not be the same). Notwithstanding the
immediately preceding sentence, to the extent that any consideration payable to Clear Secure in connection with the redemption or repurchase
of any shares or other Equity Securities of Clear Secure or any of its Subsidiaries consists (in whole or in part) of shares or such other
Equity Securities (including, for the avoidance of doubt, in connection with the cashless exercise of an option or warrant), then redemption
or repurchase of the corresponding Common Units or other Equity Securities of the Company shall be effectuated in an equivalent manner
(except if the Company cancels Common Units or other Equity Securities for no consideration as described in this Section 4.02(b)).

 

(c)            The
Company shall not in any manner effect any subdivision (by any stock or unit split, stock or unit dividend or distribution, reclassification,
reorganization, recapitalization or otherwise) or combination (by reverse stock or unit split, reclassification, reorganization, recapitalization
or otherwise) of the outstanding Common Units unless accompanied by a substantively identical subdivision or combination, as applicable,
of the outstanding Clear Secure Common Stock, with corresponding changes made with respect to any other exchangeable or convertible securities.
Clear Secure shall not in any manner effect any subdivision (by any stock or unit split, stock or unit dividend or distribution, reclassification,
reorganization, recapitalization or otherwise) or combination (by reverse stock or unit split, reclassification, reorganization, recapitalization
or otherwise) of the outstanding Clear Secure Common Stock unless accompanied by a substantively identical subdivision or combination,
as applicable, of the outstanding Common Units, with corresponding changes made with respect to any other exchangeable or convertible
securities.

 

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(d)            Notwithstanding
anything to the contrary in this Article IV:

 

(i)             if
at any time the Managing Member shall determine that any debt instrument of Clear Secure, the Company or its Subsidiaries shall not permit
Clear Secure or the Company to comply with the provisions of Section 4.02(a) or Section 4.02(b) in connection
with the issuance, redemption or repurchase of any shares of Class A Common Stock or Class B Common Stock or other Equity Securities
of Clear Secure or any of its Subsidiaries or any Units or other Equity Securities of the Company, then the Managing Member may in good
faith implement an economically equivalent alternative arrangement without complying with such provisions;

 

(ii)            if
(x) Clear Secure incurs any indebtedness and desires to transfer the proceeds of such indebtedness to the Company and (y) Clear
Secure is unable to lend the proceeds of such indebtedness to the Company on an equivalent basis because of restrictions in any debt instrument
of Clear Secure, the Company or its Subsidiaries, then notwithstanding Section 4.02(a) or Section 4.02(b),
the Managing Member may in good faith implement an economically equivalent alternative arrangement in connection with the transfer of
proceeds to the Company using non-participating preferred Equity Securities of the Company without complying with such provisions; and

 

(iii)           If
Clear Secure receives a distribution pursuant to Section 5.03 and Clear Secure subsequently contributes any of the amounts
received to the Company, the Managing Member may take any reasonable action to properly reflect the changes in the Members’ economic
interests in the Company including by making appropriate adjustments to the number of Common Units held by the Members other than Clear
Secure in order to proportionally reduce the respective Percentage Interests held by the Members other than Clear Secure.

 

(e)            In
the event any adjustment pursuant to this Agreement in the number of Common Units held by a Member results (x) in a decrease in
the number of Common Units held by a Member that constitute a portion of a Paired Interest, concurrently with such decrease, such Member
shall surrender the number of shares of Class C Common Stock or Class D Common Stock, as the case may be, constituting the
remainder of such Paired Interest (which, as of the date hereof, would be one share of Class C Common Stock or Class D Common
Stock, as the case may be) to Clear Secure or (y) in an increase in the number of Common Units held by a Member that constitute
a portion of a Paired Interest, concurrently with such increase, Clear Secure shall issue the number of shares of Class C Common
Stock or Class D Common Stock, as the case may be, constituting the remainder of such Paired Interest (which, as of the date hereof,
would be one share of Class C Common Stock or Class D Common Stock, as the case may be) to such Member.

 

    20 

     

    

 

Article V

 

CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS;

DISTRIBUTIONS; ALLOCATIONS

 

Section 5.01           Capital
Contributions.

 

(a)            From
and after the date hereof, no Member shall have any obligation to the Company, to any other Member or to any creditor of the Company to
make any further Capital Contribution, except as expressly provided in Section 4.01(a).

 

(b)            Except
as expressly provided herein, no Member, in its capacity as a Member, shall have the right to receive any cash or any other property of
the Company.

 

Section 5.02           Capital
Accounts.

 

(a)            Maintenance
of Capital Accounts. The Company shall maintain a Capital Account for each Member on the books of the Company in accordance with the
provisions of Treasury Regulations Section 1.704-1(b)(2)(iv) and, to the extent consistent with such provisions, the following
provisions:

 

(i)             Each
Member listed on the Member Schedule shall be credited with the Reorganization Date Capital Account Balance set forth on the Member
Schedule. The Member Schedule shall be amended by the Managing Member after the closing of the IPO and from time to time to reflect
adjustments to the Members’ Capital Accounts made in accordance with Sections 5.02(a)(ii), 5.02(a)(iii), 5.02(a)(iv),
5.02(c) or otherwise.

 

(ii)            To
each Member’s Capital Account there shall be credited: (A) such Member’s Capital Contributions, (B) such Member’s
distributive share of Net Income and any item in the nature of income or gain that is allocated pursuant to Section 5.04 and
(C) the amount of any Company liabilities assumed by such Member or that are secured by any Property distributed to such Member.

 

(iii)           To
each Member’s Capital Account there shall be debited: (A) the amount of money and the Carrying Value of any Property distributed
to such Member pursuant to any provision of this Agreement, (B) such Member’s distributive share of Net Loss and any items
in the nature of expenses or losses that are allocated to such Member pursuant to Section 5.04 and (C) the amount of
any liabilities of such Member assumed by the Company or that are secured by any Property contributed by such Member to the Company.

 

(iv)           In
determining the amount of any liability for purposes of subparagraphs (ii) and (iii) above there shall be taken into account
Section 752(c) of the Code and any other applicable provisions of the Code and the Treasury Regulations.

 

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The foregoing provisions and the other provisions of this Agreement
relating to the maintenance of Capital Accounts are intended to comply with Treasury Regulations Section 1.704-1(b) and shall
be interpreted and applied in a manner consistent with such Treasury Regulations. In the event that the Managing Member shall reasonably
determine that it is prudent to modify the manner in which the Capital Accounts or any debits or credits thereto are maintained (including
debits or credits relating to liabilities that are secured by contributed or distributed Property or that are assumed by the Company or
the Members), the Managing Member may make such modification so long as such modification will not have any effect on the amounts distributed
to any Person pursuant to Article XI upon the dissolution of the Company. The Managing Member also shall (i) make any
adjustments that are necessary or appropriate to maintain equality between Capital Accounts of the Members and the amount of capital reflected
on the Company’s balance sheet, as computed for book purposes, in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(g) and
(ii) make any appropriate modifications in the event unanticipated events might otherwise cause this Agreement not to comply with
Treasury Regulations Section 1.704-1(b).

 

(b)            Succession
to Capital Accounts. In the event any Person becomes a Substitute Member in accordance with the provisions of this Agreement, such
Substitute Member shall succeed to the Capital Account of the former Member to the extent such Capital Account relates to the Transferred
Units.

 

(c)            Adjustments
of Capital Accounts. The Company shall revalue the Capital Accounts of the Members in accordance with Treasury Regulations
Section 1.704-1(b)(2)(iv)(f) (a “Revaluation”) at the following times: (i) immediately prior to
the contribution of more than a de minimis amount of money or other property to the Company by a new or existing Member as
consideration for one or more Units; (ii) the distribution by the Company to a Member of more than a de minimis amount
of property in respect of one or more Units; (iii) the issuance by the Company of more than a de minimis amount of Units
as consideration for the provision of services to or for the benefit of the Company (as described in Treasury Regulations
Section 1.704-1(b)(2)(iv)(f)(5)(iii)); and (iv) the liquidation of the Company within the meaning of Treasury Regulations
Section 1.704-1(b)(2)(ii)(g); provided, however, that adjustments pursuant to clauses (i), (ii) and
(iii) above shall be made only if the Managing Member reasonably determines that such adjustments are necessary or appropriate
to reflect the relative economic interest of the Members.

 

(d)            No
Member shall be entitled to withdraw capital or receive distributions except as specifically provided herein. A Member shall have no obligation
to the Company, to any other Member or to any creditor of the Company to restore any negative balance in the Capital Account of such Member.
Except as expressly provided elsewhere herein, no interest shall be paid on the balance in any Member’s Capital Account.

 

(e)            Whenever
it is necessary for purposes of this Agreement to determine a Member’s Capital Account on a per Unit basis, such amount shall be
determined by dividing the Capital Account of such Member attributable to the applicable class of Units held of record by such Member
by the number of Units of such class held of record by such Member.

 

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Section 5.03           Amounts
and Priority of Distributions.

 

(a)            Distributions
Generally. Except as otherwise provided in Section 11.02, distributions shall be made to the Members as set forth in
this Section 5.03, at such times and in such amounts as the Managing Member, in its sole discretion, shall determine.

 

(b)            Distributions
to the Members. Subject to Section 5.03(e), at such times and in such amounts as the Managing Member, in its sole discretion,
shall determine, distributions shall be made to the Members in proportion to their respective Percentage Interests.

 

(c)            Clear
Secure Distributions. Notwithstanding the provisions of Section 5.03(b), the Managing Member, in its sole discretion,
may authorize that (i) cash be paid to Clear Secure (which payment shall be made without pro rata distributions to the other Members)
in exchange for the redemption, repurchase or other acquisition of Units held by Clear Secure to the extent that such cash payment is
used to redeem, repurchase or otherwise acquire an equal number of shares of Class A Common Stock or Class B Common Stock in
accordance with Section 4.02(b) and (ii) to the extent that the Managing Member determines that expenses or other
obligations of Clear Secure are related to its role as the Managing Member or the business and affairs of Clear Secure that are conducted
through the Company or any of the Company’s direct or indirect Subsidiaries, cash (and, for the avoidance of doubt, only cash) distributions
may be made to Clear Secure (which distributions shall be made without pro rata distributions to the other Members) in amounts required
for Clear Secure to pay (w) operating, administrative and other similar costs incurred by Clear Secure, including payments in respect
of Indebtedness and preferred stock, to the extent the proceeds are used or will be used by Clear Secure to pay expenses or other obligations
described in this clause (ii) (in either case only to the extent economically equivalent Indebtedness or Equity Securities of the
Company were not issued to Clear Secure), payments representing interest with respect to payments not made when due under the terms of
the Tax Receivable Agreement and payments pursuant to any legal, tax, accounting and other professional fees and expenses (but, for the
avoidance of doubt, excluding any tax liabilities of Clear Secure), (x) any judgments, settlements, penalties, fines or other costs
and expenses in respect of any claims against, or any litigation or proceedings involving, Clear Secure, (y) fees and expenses (including
any underwriting discounts and commissions) related to any securities offering, investment or acquisition transaction (whether or not
successful) authorized by the board of directors of Clear Secure and (z) other fees and expenses in connection with the maintenance
of the existence of Clear Secure (including any costs or expenses associated with being a public company listed on a national securities
exchange). For the avoidance of doubt, distributions made under this Section 5.03(c) may not be used to pay or facilitate
dividends or distributions on the Clear Secure Common Stock and must be used solely for one of the express purposes set forth under clause
(i) or (ii) of the immediately preceding sentence.

 

    23 

     

    

 

(d)            Distributions
in Kind. Any distributions in kind shall be made at such times and in such amounts as the Managing Member, in its sole discretion,
shall determine based on their fair market value as determined by the Managing Member in the same proportions as if distributed in accordance
with Section 5.03(b), with all Members participating in proportion to their respective Percentage Interests. If cash and property
are to be distributed in kind simultaneously, the Company shall distribute such cash and property in kind in the same proportion to each
Member. For the purposes of this Section 5.03(d), if any such distribution in kind includes securities, distributions to the
Members shall be deemed proportionate notwithstanding that the securities distributed to holders of Common Units that are included in
Paired Interests with shares of Class D Common Stock have not more than twenty times the voting power of any securities distributed
to holders of Common Units that are included in Paired Interests with shares of Class C Common Stock, so long as such securities
issued to the holders of Common Units that are included in Paired Interests with shares of Class D Common stock remain subject to
automatic conversion on terms no more favorable to such holders than those set forth in Article IV, Section G of the certificate
of incorporation of Clear Secure.

 

(e)             Tax
Distributions.

 

(i)             Notwithstanding
any other provision of this Section 5.03 to the contrary, to the extent permitted by Applicable Law and consistent with the
Company’s obligations to its creditors as reasonably determined by the Managing Member, the Company shall make cash distributions
by wire transfer of immediately available funds pursuant to this Section 5.03(e)(i) to the Members with respect to their
Units in proportion to their respective Percentage Interests at least two Business Days prior to the date on which any U.S. federal corporate
estimated tax payments are due, in an amount that in the Managing Member’s discretion allows each Member to satisfy its tax liability
with respect to its Units, up to such Member’s Tax Distribution Amount, if any; provided that the Managing Member shall have
no liability to any Member in connection with any underpayment of estimated taxes, so long as cash distributions are made in accordance
with this Section 5.03(e)(i) and the Tax Distribution Amounts are determined as provided in paragraph (i) of the
definition of Tax Distribution Amount.

 

(ii)            On
any date that the Company makes a distribution to the Members with respect to their Units under a provision of Section 5.03
other than this Section 5.03(e), if the Tax Distribution Amount is greater than zero, the Company shall designate all or a
portion of such distribution as a Tax Distribution with respect to a Member’s Units to the extent of the Tax Distribution Amount
with respect to such Member’s Units as of such date (but not to exceed the amount of such distribution). For the avoidance of doubt,
such designation shall be performed with respect to all Members with respect to which there is a Tax Distribution Amount as of such date.

 

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(iii)           Notwithstanding
any other provision of this Section 5.03 to the contrary, if the Tax Distribution Amount for such Fiscal Year is greater than
zero, to the extent permitted by Applicable Law and consistent with the Company’s obligations to its creditors as reasonably determined
by the Managing Member, the Company shall make additional distributions under this Section 5.03(e)(iii) in an amount
that in the Managing Member’s discretion allows each Member to satisfy its tax liability with respect to the Units, up to such Tax
Distribution Amount for such Fiscal Year as soon as reasonably practicable after the end of such Fiscal Year (or as soon as reasonably
practicable after any event that subsequently adjusts the taxable income of such Fiscal Year).

 

(iv)           Under
no circumstances shall Tax Distributions reduce the amount otherwise distributable to any Member pursuant to this Section 5.03
(other than this Section 5.03(e)) after taking into account the effect of Tax Distributions on the amount of cash or other
assets available for distribution by the Company.

 

(f)             Pre-IPO
Tax Distribution. Notwithstanding Section 5.03(b), before any other distributions are distributed to the Members by the
Company, unless already made prior to the date hereof, the Company shall distribute to certain Members and former Members an amount of
cash sufficient to fund tax obligations of such Members and former Members for periods prior to the date hereof.

 

(g)            Assignment.
The Founder Post-IPO Members shall have the right to assign to any Transferee of Common Units, pursuant to a Transfer made in compliance
with this Agreement, the right to receive any portion of the amounts distributable or otherwise payable to such Member pursuant to Section 5.03(b).

 

Section 5.04            Allocations.

 

(a)            Net
Income and Net Loss. Except as otherwise provided in this Agreement, and after giving effect to the special allocations set forth in Section 5.04(b),
Section 5.04(c) and Section 5.04(d), Net Income and Net Loss (and, to the extent necessary, individual items
of income, gain, loss, deduction or credit) of the Company shall be allocated among the Capital Accounts of the Members pro rata in accordance
with their respective Percentage Interests. Notwithstanding the foregoing, the Managing Member shall make such adjustments to Capital
Accounts as it determines in its sole discretion to be appropriate to ensure allocations are made in accordance with a Member’s
interest in the Company.

 

(b)            Special
Allocations. The following special allocations shall be made in the following order:

 

(i)              Minimum
Gain Chargeback. Except as otherwise provided in Treasury Regulations Section 1.704-2(f), notwithstanding any other provision
of this Article V, if there is a net decrease in Company Minimum Gain during any Fiscal Year, each Member shall be specially
allocated items of Company income and gain for such Fiscal Year (and, if necessary, subsequent Fiscal Years) in an amount equal to such
Member’s share of the net decrease in Company Minimum Gain, determined in accordance with Treasury Regulations Section 1.704-2(g).
Allocations pursuant to the immediately preceding sentence shall be made in proportion to the respective amounts required to be allocated
to each Member pursuant thereto. The items to be so allocated shall be determined in accordance with Treasury Regulations Section 1.704-2(f)(6) and
1.704-2(j)(2). This Section 5.04(b)(i) is intended to comply with the minimum gain chargeback requirement in Treasury
Regulations Section 1.704-2(f) and shall be interpreted consistently therewith.

 

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(ii)            Member
Nonrecourse Debt Minimum Gain Chargeback. Except as otherwise provided in Treasury Regulations Section 1.704-2(i)(4), notwithstanding
any other provision of this Article V, if there is a net decrease in Member Nonrecourse Debt Minimum Gain attributable to
a Member Nonrecourse Debt during any Fiscal Year, each Member who has a share of the Member Nonrecourse Debt Minimum Gain attributable
to such Member Nonrecourse Debt, determined in accordance with Treasury Regulations Section 1.704-2(i)(5), shall be specially allocated
items of Company income and gain for such Fiscal Year (and, if necessary, subsequent Fiscal Years) in an amount equal to such Member’s
share of the net decrease in Member Nonrecourse Debt Minimum Gain attributable to such Member Nonrecourse Debt, determined in accordance
with Treasury Regulations Section 1.704-2(i)(4). Allocations pursuant to the previous sentence shall be made in proportion to the
respective amounts required to be allocated to each Member pursuant thereto. The items to be so allocated shall be determined in accordance
with Treasury Regulations Sections 1.704-2(i)(4) and 1.704-2(j)(2). This Section 5.04(b)(ii) is intended to
comply with the minimum gain chargeback requirement in Treasury Regulations Section 1.704-2(i)(4) and shall be interpreted consistently
therewith.

 

(iii)           Qualified
Income Offset. In the event any Member unexpectedly receives any adjustments, allocations, or distributions described in Treasury
Regulations Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) or Section 1.704-1(b)(2)(ii)(d)(6), items of Company
income and gain shall be specially allocated to such Member in an amount and manner sufficient to eliminate, to the extent required by
the Treasury Regulations, the Adjusted Capital Account Deficit of the Member as promptly as possible; provided that an allocation
pursuant to this Section 5.04(b)(iii) shall be made only if and to the extent that the Member would have an Adjusted
Capital Account Deficit after all other allocations provided for in this Article V have been tentatively made as if this Section 5.04(b)(iii) were
not in the Agreement.

 

(iv)           Nonrecourse
Deductions. Nonrecourse Deductions for any Fiscal Year shall be specially allocated to the Members in a manner determined by the Managing
Member consistent with Treasury Regulations Sections 1.704-2(b) and 1.704-2(c).

 

(v)            Member
Nonrecourse Deductions. Any Member Nonrecourse Deductions for any Fiscal Year shall be specially allocated to the Member who bears
the economic risk of loss with respect to the Member Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable in
accordance with Treasury Regulations Sections 1.704-2(i)(1) and 1.704-2(j)(1).

 

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(vi)           Section 754
Adjustments. (A) To the extent an adjustment to the adjusted tax basis of any Company asset pursuant to Sections 734(b) or
743(b) of the Code is required, pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(4), to be taken into account
in determining Capital Accounts as a result of a distribution other than in liquidation of a Member’s interest in the Company,
the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of such asset) or loss (if the
adjustment decreases the basis of such asset) from the disposition of the asset and shall be taken into account for purposes of computing
Net Income and Net Loss, and further (B) to the extent an adjustment to the adjusted tax basis of any Company asset pursuant to
Sections 734(b) or 743(b) of the Code is required, pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(2) or
Section 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts as the result of a distribution to a Member
in complete liquidation of such Member’s interest in the Company, the amount of such adjustment to Capital Accounts shall be treated
as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain
or loss shall be specially allocated to such Members in accordance with their interests in the Company in the event Treasury Regulations
Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Member to whom such distribution was made in the event Treasury Regulations
Section 1.704-1(b)(2)(iv)(m)(4) applies.

 

(c)            Curative
Allocations. The allocations set forth in Section 5.04(b)(i) through Section 5.04(b)(vi) and Section 5.04(d) (the
 “Regulatory Allocations”) are intended to comply with certain requirements of the Treasury Regulations. It is the intent
of the Members that, to the extent possible, all Regulatory Allocations shall be offset either with other Regulatory Allocations or with
special allocations of other items of Company income, gain, loss, or deduction pursuant to this Section 5.04(c). Therefore,
notwithstanding any other provision of this Article V (other than the Regulatory Allocations), the Managing Member shall make
such offsetting special allocations of Company income, gain, loss, or deduction in whatever manner it determines appropriate so that,
after such offsetting allocations are made, each Member’s Capital Account balance is, to the extent possible, equal to the Capital
Account balance such Member would have had if the Regulatory Allocations were not part of the Agreement and all Company items were allocated
pursuant to Section 5.04.

 

(d)            Loss
Limitation. Net Loss (or individual items of loss or deduction) allocated pursuant to Section 5.04 hereof shall not exceed
the maximum amount of Net Loss (or individual items of loss or deduction) that can be allocated without causing any Member to have an
Adjusted Capital Account Deficit at the end of any Fiscal Year. In the event some but not all of the Members would have Adjusted Capital
Account Deficits as a consequence of an allocation of Net Loss (or individual items of loss or deduction) pursuant to Section 5.04
hereof, the limitation set forth in this Section 5.04(d) shall be applied on a Member by Member basis and Net Loss (or
individual items of loss or deduction) not allocable to any Member as a result of such limitation shall be allocated to the other Members
in accordance with the positive balances in such Member’s Capital Accounts so as to allocate the maximum permissible Net Loss to
each Member under Treasury Regulations Section 1.704-1(b)(2)(ii)(d). Any reallocation of Net Loss pursuant to this Section 5.04(d) shall
be subject to chargeback pursuant to the curative allocation provision of Section 5.04(c).

 

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Section 5.05           Other
Allocation Rules.

 

(a)            Interim
Allocations Due to Percentage Adjustment. If a Percentage Interest is the subject of a Transfer or the Members’ interests in
the Company change pursuant to the terms of the Agreement during any Fiscal Year, the amount of Net Income and Net Loss (or items thereof)
to be allocated to the Members for such entire Fiscal Year shall be allocated to the portion of such Fiscal Year which precedes the date
of such Transfer or change (and if there shall have been a prior Transfer or change in such Fiscal Year, which commences on the date of
such prior Transfer or change) and to the portion of such Fiscal Year which occurs on and after the date of such Transfer or change (and
if there shall be a subsequent Transfer or change in such Fiscal Year, which precedes the date of such subsequent Transfer or change),
in accordance with a pro rata allocation unless the Managing Member elects to use an interim closing of the books, and the amounts of
the items so allocated to each such portion shall be credited or charged to the Members in accordance with Section 5.04 as
in effect during each such portion of the Fiscal Year in question. Such allocation shall be in accordance with Section 706 of the
Code and the regulations thereunder and made without regard to the date, amount or receipt of any distributions that may have been made
with respect to the transferred Percentage Interest to the extent consistent with Section 706 of the Code and the regulations thereunder.
As of the date of such Transfer, the Transferee shall succeed to the Capital Account of the Transferor with respect to the transferred
Units.

 

(b)            Tax
Allocations: Code Section 704(c). For U.S. federal, state and local income tax purposes, items of income, gain, loss, deduction
and credit shall be allocated to the Partners in accordance with the allocations of the corresponding items for Capital Account purposes
under Section 5.04, except that in accordance with Section 704(c) of the Code and the Treasury Regulations thereunder,
income, gain, loss, and deduction with respect to any Property contributed to the capital of the Company and with respect to reverse Code
Section 704(c) allocations described in Treasury Regulations 1.704-3(a)(6) shall, solely for tax purposes, be allocated
among the Members so as to take account of any variation between the adjusted basis of such Property to the Company for U.S. federal income
tax purposes and its initial Carrying Value or its Carrying Value determined pursuant to Treasury Regulation 1.704-1(b)(2)(iv)(f) (computed
in accordance with the definition of Carrying Value) using the traditional allocation method under Treasury Regulation 1.704-3(b). Any
elections or other decisions relating to such allocations shall be made by the Managing Member in any manner that reasonably reflects
the purpose and intention of this Agreement. Allocations pursuant to this Section 5.05(b), Section 704(c) of the
Code (and the principles thereof), and Treasury Regulation 1.704-1(b)(4)(i) are solely for purposes of federal, state, and local
taxes and shall not affect, or in any way be taken into account in computing, any Member’s Capital Account or share of Net Income,
Net Loss, other items, or distributions pursuant to any provision of this Agreement.

 

    28 

     

    

 

(c)             Modification
of Allocations. The allocations set forth in Section 5.04 and Section 5.05 are intended to comply with certain
requirements of the Treasury Regulations. Notwithstanding the other provisions of this Article V, the Managing Member shall
be authorized to make, in its reasonable discretion, appropriate amendments to the allocations of Net Income and Net Loss (and to individual
items of income, gain, loss, deduction and credit) pursuant to this Agreement (i) in order to comply with Section 704 of the
Code or applicable Treasury Regulations, (ii) to allocate properly Net Income and Net Loss (and individual items of income, gain,
loss, deduction and credit) to those Members that bear the economic burden or benefit associated therewith and (iii) to cause the
Members to achieve the objectives underlying this Agreement as reasonably determined by the Managing Member

 

Section 5.06            Tax
Withholding; Withholding Advances.

 

(a)             Tax
Withholding.

 

(i)             If
requested by the Managing Member, each Member shall, if able to do so, deliver to the Managing Member: (A) an affidavit in form
satisfactory to the Company that the applicable Member (or its partners, as the case may be) is not subject to withholding under the
provisions of any Applicable Law; (B) any certificate that the Company may reasonably request with respect to any such laws; or
(C) any other form or instrument reasonably requested by the Company relating to any Member’s status under such law. In the
event that a Member fails or is unable to deliver to the Company an affidavit described in subclause (A) of this clause (i),
the Company may withhold amounts from such Member in accordance with Section 5.06(b).

 

(ii)            After
receipt of a written request of any Member, the Company shall provide such information to such Member and take such other action as may
be reasonably necessary to assist such Member in making any necessary filings, applications or elections to obtain any available exemption
from, or any available refund of, any withholding imposed by any foreign taxing authority with respect to amounts distributable or items
of income allocable to such Member hereunder to the extent not adverse to the Company or any Member. In addition, the Company shall, at
the request of any Member, make or cause to be made (or cause the Company to make) any such filings, applications or elections; provided
that any such requesting Member shall cooperate with the Company, with respect to any such filing, application or election to the extent
reasonably determined by the Company and that any filing fees, taxes or other out-of-pocket expenses reasonably incurred and related thereto
shall be paid and borne by such requesting Member or, if there is more than one requesting Member, by such requesting Members in accordance
with their Relative Percentage Interests.

 

(b)             Withholding
Advances. To the extent the Company is required by Applicable Law to withhold or to make tax payments on behalf of or with respect
to any Member (e.g., backup withholding) (“Withholding Advances”), the Company may withhold such amounts and make such
tax payments as so required.

 

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(c)            Repayment
of Withholding Advances. All Withholding Advances made on behalf of a Member, plus interest thereon at a rate equal to the Prime Rate
as of the date of such Withholding Advances plus 2.0% per annum, shall (i) be paid on demand by the Member on whose behalf such Withholding
Advances were made (it being understood that no such payment shall increase such Member’s Capital Account), or (ii) with the
consent of the Managing Member and the affected Member be repaid by reducing the amount of the current or next succeeding distribution
or distributions that would otherwise have been made to such Member or, if such distributions are not sufficient for that purpose, by
so reducing the proceeds of liquidation otherwise payable to such Member. Whenever repayment of a Withholding Advance by a Member is made
as described in clause (ii) of this Section 5.06(c), for all other purposes of this Agreement such Member shall
be treated as having received all distributions (whether before or upon any Dissolution Event) unreduced by the amount of such Withholding
Advance and interest thereon.

 

(d)            Withholding
Advances — Reimbursement of Liabilities. Each Member hereby agrees to reimburse the Company for any liability with respect to
Withholding Advances (including interest thereon) required or made on behalf of or with respect to such Member (including penalties imposed
with respect thereto).

 

Article VI

 

CERTAIN TAX MATTERS

 

Section 6.01           Partnership
Representative.

 

(a)            The
 “Partnership Representative” (as such term is defined under Partnership Audit Provisions) of the Company shall be selected
by the Managing Member with the initial Partnership Representative being Clear Secure. The Partnership Representative may retain, at the
  Company’s expense, such outside counsel, accountants and other professional consultants as it may reasonably deem necessary
in the course of fulfilling its obligations as the Partnership Representative. The Partnership Representative is authorized to take, and
shall determine in its sole discretion whether or not the Company will take, such actions and execute and file all statements and forms
on behalf of the Company that are approved by the Managing Member and are permitted or required by the applicable provisions of the Partnership
Audit Provisions (including a “push-out” election under Section 6226 of the Code or any analogous election under state
or local tax Law). Each Member agrees to cooperate with the Partnership Representative and to use commercially reasonable efforts to do
or refrain from doing any or all things requested by the Partnership Representative (including paying any and all resulting taxes, additions
to tax, penalties and interest in a timely fashion) in connection with  any examination of the Company’s affairs by any federal,
state, or local tax authorities, including resulting administrative and judicial proceedings.

 

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(b)            In
the event that the Partnership Representative has not caused the Company to make a “push-out” election pursuant to Section 6226
of the Partnership Audit Provisions, then any “imputed underpayment” (as determined in accordance with Section 6225 of
the Partnership Audit Provisions) or partnership adjustment that does not give rise to an imputed underpayment shall be apportioned among
the Members of the Company for the taxable year in which the adjustment is finalized in such manner as may be necessary (as determined
by the Partnership Representative in good faith) so that, to the maximum extent possible, the tax and economic consequences of the imputed
underpayment or other partnership adjustment and any associated interest and penalties (any such amount, an “Imputed Underpayment
Amount”) are borne by the Members based upon their Percentage Interests in the Company for the reviewed year. Imputed Underpayment
Amounts also shall include any imputed underpayment within the meaning of Section 6225 of the Partnership Audit Provisions paid (or
payable) by any entity treated as a partnership for U.S. federal income tax purposes in which the Company holds (or has held) a direct
or indirect interest other than through entities treated as corporations for U.S. federal income tax purposes to the extent that the Company
bears the economic burden of such amounts, whether by Applicable Law or contract.

 

(c)            Each
Member agrees to indemnify and hold harmless the Company from and against any liability with respect to such Member’s share of any
tax deficiency paid or payable by the Company that is allocable to the Member as determined in accordance with Section 6.01(b) with
respect to an audited or reviewed taxable year for which such Member was a partner in the Company. Any obligation of a Member pursuant
to this Section 6.01(c) shall be implemented through adjustments to distributions otherwise payable to such Member as
determined in accordance with Section 5.03; provided, however, that, at the written request of the Partnership Representative,
each Member or former Member may be required to contribute to the Company such Member’s Imputed Underpayment Amount imposed on and
paid by the Company; provided, further, that if a Member or former Member individually directly pays, pursuant to the Partnership
Audit Provisions, any such Imputed Underpayment Amount, then such payment shall reduce any offset to distribution or required capital
contribution of such Member or former Member. Any amount withheld from distributions pursuant to this Section 6.01(c) shall
be treated as an amount distributed to such Member or former Member for all purposes under this Agreement. For the avoidance of doubt,
the obligations of a Member set forth in this Section 6.01(c) shall survive the withdrawal of a Member from the Company
or any Transfer of a Member’s interest.

 

Section 6.02           Section 754
Election. The Company has previously made or will make a timely election under Section 754 of the Code (and a corresponding election
under state and local law) effective starting with the taxable year ended December 31, 2020, and the Managing Member shall not take
any action to revoke such election.

 

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Article VII

MANAGEMENT OF THE COMPANY

 

Section 7.01            Management
by the Managing Member. Except as otherwise specifically set forth in this Agreement, the Managing Member shall be deemed to be a
 “manager” for purposes of applying the Delaware Act. Except as expressly provided in this Agreement or the Delaware Act, the
day-to-day business and affairs of the Company and its Subsidiaries shall be managed, operated and controlled by the Managing Member in
accordance with the terms of this Agreement and no other Members shall have management authority or rights over the Company or its Subsidiaries.
The Managing Member is, to the extent of its rights and powers set forth in this Agreement, an agent of the Company for the purpose of
the Company’s and its Subsidiaries’ business, and the actions of the Managing Member taken in accordance with such rights
and powers, shall bind the Company (and no other Members shall have such right). Except as expressly provided in this Agreement, the Managing
Member shall have all necessary powers to carry out the purposes, business, and objectives of the Company and its Subsidiaries. The Managing
Member may delegate to Members, employees, officers or agents of the Company or any Subsidiary in its discretion the authority to sign
agreements and other documents on behalf of the Company or any Subsidiary.

 

Section 7.02            Withdrawal
of the Managing Member(a)     .
Clear Secure may withdraw as the Managing Member and appoint as its successor at any time upon written notice to the Company (i) any
wholly-owned Subsidiary of Clear Secure, (ii) any Person of which Clear Secure is a wholly-owned Subsidiary, (iii) any Person
into which Clear Secure is merged or consolidated or (iv) any transferee of all or substantially all of the assets of Clear Secure,
which withdrawal and replacement shall be effective upon the delivery of such notice. No appointment of a Person other than Clear Secure
(or its successor, as applicable) as Managing Member shall be effective unless Clear Secure (or its successor, as applicable) and the
new Managing Member (as applicable) provide all other Members with contractual rights, directly enforceable by such other Members against
the new Managing Member, to cause the new Managing Member to comply with all the Managing Member’s obligations under this Agreement
and the Exchange Agreement.

 

Section 7.03            Decisions
by the Members.

 

(a)         
    Other than the Managing Member, the Members shall take no part in the
management of the Company’s business, shall transact no business for the Company and shall have no power to act for or to bind
the Company; provided, however, that the Company may engage any Member or principal, partner, member, shareholder or
interest holder thereof as an employee, independent contractor or consultant to the Company, in which event the duties and
liabilities of such individual or firm with respect to the Company as an employee, independent contractor or consultant shall be
governed by the terms of such engagement with the Company.

 

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(b)            Except
as expressly provided herein, neither the Members nor any class of Members shall have the power or authority to vote, approve or consent
to any matter or action taken by the Company. Except as otherwise provided herein, any proposed matter or action subject to the vote,
approval or consent of the Members or any class of Members shall require the approval of (i) a majority in interest of the Members
or such class of Members, as the case may be (by (x) resolution at a duly convened meeting of the Members or such class of Members,
as the case may be, or (y) written consent of the Members or such class of Members, as the case may be) and (ii) except with
respect to any approval or other rights expressly granted to the Founder Post-IPO Members, the Managing Member. Except as expressly provided
herein, all Members shall vote together as a single class on any matter subject to the vote, approval or consent of the Members (but not,
for the avoidance of doubt, any vote, approval or consent of any class of Members). In the case of any such approval, a majority in interest
of the Members or any class of Members, as the case may be, may call a meeting of the Members or such class of Members at such time and
place or by means of telephone or other communications facility that permits all persons participating in such meeting to hear and speak
to each other for the purpose of a vote thereon. Notice of any such meeting shall be required, which notice shall include a brief description
of the action or actions to be considered by the Members or such class of Members, as the case may be. Unless waived by any such Member
in writing, notice of any such meeting shall be given to each Member or Member of such class, as the case may be, at least four (4) days
prior thereto. Attendance or participation of a Member at a meeting shall constitute a waiver of notice of such meeting, except when such
Member attends or participates in the meeting for the express purpose of objecting at the beginning thereof to the transaction of any
business because the meeting is not properly called or convened. Any action required or permitted to be taken at any meeting of the Members
may be taken without a meeting, if a consent in writing, setting forth the actions so taken, shall be signed by Members sufficient to
approve such action pursuant to this Section 7.03(b). A copy of any such consent in writing will be provided to the Members
promptly thereafter.

 

Section 7.04            Fiduciary
Duties.

 

(a)            (i) The
Managing Member shall, in its capacity as Managing Member, and not in any other capacity, have the same fiduciary duties to the Company
and the Members as a member of the board of directors of a Delaware corporation (assuming such corporation had in its certificate of
incorporation a provision eliminating the liabilities of directors and officers to the maximum extent permitted by Section 102(b)(7) of
the DGCL); (ii) any member of the Board of Directors of Clear Secure that is an officer of Clear Secure or the Company shall, in
its capacity as director, and not in any other capacity, have the same fiduciary duties to Clear Secure as a member of the board of directors
of a Delaware corporation (assuming such corporation had in its certificate of incorporation a provision eliminating the liabilities
of directors and officers to the maximum extent permitted by Section 102(b)(7) of the DGCL); and (iii) each Officer and
each officer of Clear Secure shall, in their capacity as such, and not in any other capacity, have the same fiduciary duties to the Company
and the Members (in the case of any Officer) or Clear Secure (in the case of any officer of Clear Secure) as an officer of a Delaware
corporation (assuming such corporation had in its certificate of incorporation a provision eliminating the liabilities of directors and
officers to the maximum extent permitted by Section 102(b)(7) of the DGCL). For the avoidance of doubt, the fiduciary duties
described in clause (i) above shall not be limited by the fact that the Managing Member shall be permitted to take certain actions
in its sole or reasonable discretion pursuant to the terms of this Agreement or any agreement entered into in connection herewith.

 

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(b)            The
parties acknowledge that the Managing Member will take action through its board of directors, and that the members of the Managing Member’s
board of directors will owe fiduciary duties to the stockholders of the Managing Member. The Managing Member will use all commercially
reasonable and appropriate efforts and means, as determined in good faith by the Managing Member, to minimize any conflict of interest
between the Members, on the one hand, and the stockholders of the Managing Member, on the other hand, and to effectuate any transaction
that involves or affects any of the Company, the Managing Member, the Members and/or the stockholders of the Managing Member in a manner
that does not (i) disadvantage the Members or their interests relative to the stockholders of the Managing Member or (ii) advantage
the stockholders of the Managing Member relative to the Members or (iii) treats the Members and the stockholders of the Managing
Member differently; provided that in the event of a conflict between the interests of the stockholders of the Managing Member
and the interests of the Members other than the Managing Member, such other Members agree that the Managing Member shall discharge its
fiduciary duties to such other Members by acting in the best interests of the Managing Member’s stockholders.

 

(c)            Without
prior written consent of the Non-Clear Secure Members, the Managing Member will not engage in any business activity other than the direct
or indirect management and ownership of the Company and its Subsidiaries, or own any assets (other than on a temporary basis) other than
securities of the Company and its Subsidiaries (whether directly or indirectly held) or any cash or other property or assets distributed
by or otherwise received from the Company and its Subsidiaries in accordance with this Agreement, provided that the Managing Member may
take any action (including incurring its own Indebtedness) or own any asset if it determines in good faith that such actions or ownership
are in the best interest of the Company.

 

Section 7.05           Officers.

 

(a)            Appointment
of Officers. The Managing Member may appoint individuals as officers (“Officers”) of the Company, which may include
such officers as the Managing Member determines are necessary and appropriate. No Officer need be a Member. An individual may be appointed
to more than one office.

 

(b)            Authority
of Officers. The Officers shall have the duties, rights, powers and authority as may be prescribed by the Managing Member from time
to time.

 

(c)            Removal,
Resignation and Filling of Vacancy of Officers. The Managing Member may remove any Officer, for any reason or for no reason, at any
time. Any Officer may resign at any time by giving written notice to the Company, and such resignation shall take effect at the date
of the receipt of that notice or any later time specified in that notice; provided that, unless otherwise specified in that notice,
the acceptance of the resignation shall not be necessary to make it effective. Any such resignation shall be without prejudice to the
rights, if any, of the Company or such Officer under this Agreement. A vacancy in any office because of death, resignation, removal or
otherwise shall be filled by the Managing Member.

 

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Article VIII

 

TRANSFERS OF INTERESTS

 

Section 8.01           Restrictions
on Transfers.

 

(a)            Except
as expressly permitted by Section 8.02, and subject to Section 8.01(b), Section 8.01(c) and
Section 8.01(d), any underwriter lock-up agreement applicable to such Member or any other agreement between such Member and
the Company, Clear Secure or any of their controlled Affiliates, without the prior written approval of the Managing Member, no Member
shall directly or indirectly Transfer all or any part of its Units or any right or economic interest pertaining thereto, including the
right to vote or consent on any matter or to receive or have any economic interest in distributions or advances from the Company pursuant
thereto. Any such Transfer which is not in compliance with the provisions of this Agreement shall be deemed a Transfer by such Member
of Units in violation of this Agreement (and a breach of this Agreement by such Member) and shall be null and void ab initio.
Notwithstanding anything to the contrary in this Article VIII, (i) the Exchange Agreement shall govern the exchange
of Paired Interests for shares of Class A Common Stock or Class B Common Stock, and an exchange pursuant to and in accordance
with the Exchange Agreement shall not be considered a “Transfer” for purposes of this Agreement, (ii) the certificate
of incorporation of Clear Secure shall govern the conversion of Class B Common Stock to Class A Common Stock and the conversion
of Class D Common Stock to Class C Common Stock, and a conversion pursuant to and in accordance with the certificate of incorporation
of Clear Secure shall not be considered a “Transfer” for purposes of this Agreement, (iii) a Transfer of Clear Secure
Common Stock constituting Registrable Securities (as such term is defined in the Registration Rights Agreement) in accordance with the
Registration Rights Agreement shall not be considered a “Transfer” for the purposes of the Agreement and (iv) any other
Transfer of shares of Class A Common Stock or Class B Common Stock shall not be considered a “Transfer” for purposes
of this Agreement.

 

(b)            Except
as otherwise expressly provided herein, it shall be a condition precedent to any Transfer otherwise permitted or approved pursuant to
this Article VIII that:

 

(i)            the
Transferor shall have provided to the Company prior notice of such Transfer;

 

(ii)           the
Transfer shall comply with all Applicable Laws; and

 

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(iii)          with
respect to any Transfer of any Common Unit that constitutes a portion of a Paired Interest, concurrently with such Transfer, such Transferor
shall also Transfer to such Transferee the number of shares of Class C Common Stock or Class D Common Stock, as the case may
be, constituting the remainder of such Paired Interest (which, as of the date hereof, would be one share of Class C Common Stock
or Class D Common Stock, as the case may be).

 

(c)            Notwithstanding
any other provision of this Agreement to the contrary, no Member shall directly or indirectly Transfer all or any part of its Units or
any right or economic interest pertaining thereto if such Transfer, in the reasonable discretion of the Managing Member, would cause
the Company to be classified as a “publicly traded partnership” as that term is defined in Section 7704 of the Code
and Treasury Regulations promulgated thereunder or would result in the Company having more than one hundred (100) partners, within the
meaning of Treasury Regulations Section 1.7704-1(h)(1) (determined pursuant to the rules of Treasury Regulations Section 1.7704-1(h)(3)).

 

(d)            Any
Transfer of Units pursuant to this Agreement, including this Article VIII, shall be subject to the provisions of Section 3.01
and Section 3.02.

 

Section 8.02           Certain
Permitted Transfers. Notwithstanding anything to the contrary herein, the following Transfers shall be permitted:

 

(a)            Any
Transfer by any Member of its Units pursuant to a Clear Secure Offer (as such term is defined in the Exchange Agreement);

 

(b)            At
any time, any Permitted Transfer; provided that such Transfer, alone or together with other Transfers by any Member and any Transferee
thereof, would not result in (x) the Founder Post-IPO Members and their Transferees, in the aggregate, representing at any time
more than thirty partners or (y) all Members other than the Founder Post-IPO Members and their Transferees, in the aggregate, representing
at any time more than sixty partners, in each case, for the purposes of Treasury Regulation Section 1.7704-1(h)(1) (determined
pursuant to the rules of Treasury Regulations Section 1.7704-1(h)(3), excluding Clear Secure from the number of partners for
purposes of this Section 8.02(b); or

 

(c)            At
any time, any Transfer by any Member of Units to any Transferee (i) previously approved in writing by the Company prior to the Reorganization
or (ii) approved in writing by the Managing Member (not to be unreasonably withheld), it being understood that it shall be reasonable
for the Managing Member to withhold such consent if the Managing Member reasonably determines that such Transfer would materially increase
the risk that the Company would be classified as a “publicly traded partnership” as that term is defined in Section 7704
of the Code and Treasury Regulations promulgated thereunder or would result in (x) the Founder Post-IPO Members and their Transferees,
in the aggregate, representing at any time more than thirty partners or (y) all Members other than the Founder Post-IPO Members
and their Transferees, in the aggregate, representing at any time, more than sixty partners, in each case, within the meaning of Treasury
Regulations Section 1.7704-1(h)(1) (determined pursuant to the rules of Treasury Regulations Section 1.7704-1(h)(3)).

 

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Section 8.03           Registration
of Transfers. When any Units are Transferred in accordance with the terms of this Agreement, the Company shall cause such Transfer
to be registered on the books of the Company.

 

Article IX

 

OTHER AGREEMENTS

 

Section 9.01           Noncompete.
Those certain individuals set forth on Schedule B attached hereto (each, a “Restricted Person” and collectively,
the “Restricted Persons”) shall not, directly or indirectly, compete with the Company by producing, distributing,
marketing or providing, or enter into any new agreement with any other Person to produce, distribute, market or provide, or hold any
equity or financial interest in, or participate in the management of, any other Person producing, distributing, marketing or providing,
any product or service related to the Company Business (as determined by the Managing Member), in the United States while such Restricted
Person or any Permitted Transferee thereof, directly or indirectly, beneficially owns any Units in the Company and for a period of 12
months thereafter (the “Noncompete Term”); provided, that nothing in this Section 9.01 shall prevent
a Restricted Person from holding up to a 10% passive equity or financial interest in any other Person producing, distributing, marketing
or providing, any product or service related to the Company Business in the United States if such equity or financial interest is disclosed
in writing to the Managing Member. During the Noncompete Term, no Restricted Person shall, directly or indirectly, acquire or create
any existing or future business in any new product or service related to the Company Business (as determined by the Managing Member),
in the United States other than through the Company. To the extent that a Restricted Person or any of its Affiliates engages in any of
the business activities described in this Section 9.01 as of the date of this Agreement, such Restricted Person or its Affiliate
shall, upon the request of the Managing Member, use its best efforts to integrate such activities into the Company on mutually agreeable
terms or, if such terms cannot be agreed upon, shall discontinue such activities within six months from the date hereof. The Managing
Member may from time to time in its discretion grant waivers of the restrictions contained in this Section 9.01 on a case
by case basis.

 

Section 9.02           Nonsolicitation.
During the Noncompete Term, no Restricted Person shall, directly or indirectly, without the prior written consent of the Managing Member,
induce or attempt to persuade any employee of the Company to terminate his or her employment relationship with the Company. Notwithstanding
the foregoing, no Restricted Person shall have any liability under this Section resulting from the hiring of employees who respond
to general employment advertisements; provided, that the hiring party does not prompt, instruct or encourage such employee to
respond to any such advertisement.

 

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Article X

 

LIMITATION ON LIABILITY, EXCULPATION

AND INDEMNIFICATION

 

Section 10.01         Limitation
on Liability. The debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely
the debts, obligations and liabilities of the Company, and no Covered Person shall be obligated personally for any such debt, obligation
or liability of the Company; provided that the foregoing shall not alter a Member’s obligation to return funds wrongfully
distributed to it.

 

Section 10.02         Exculpation
and Indemnification.

 

(a)            Subject
to the duties of the Managing Member and Officers set forth in Section 7.04, neither the Managing Member nor any other Covered
Person described in clause (iii) of the definition thereof shall be liable, including under any legal or equitable theory of fiduciary
duty or other theory of liability, to the Company or to any other Covered Person for any losses, claims, damages or liabilities incurred
by reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company. There shall be,
and each Covered Person shall be entitled to, a presumption that such Covered Person acted in good faith.

 

(b)            A
Covered Person shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions,
reports or statements presented to the Company by any Person as to matters the Covered Person reasonably believes are within such Person’s
professional or expert competence.

 

(c)            The
Company shall indemnify, defend and hold harmless each Covered Person against any losses, claims, damages, liabilities, expenses (including
all reasonable out-of-pocket fees and expenses of counsel and other advisors), judgments, fines, settlements and other amounts arising
from any and all claims, demands, actions, suits or proceedings, in which such Covered Person may be involved or become subject to, in
connection with any matter arising out of or in connection with the Company’s business or affairs, or this Agreement or any related
document, unless such loss, claim, damage, liability, expense, judgment, fine, settlement or other amount (i) is as a result of
a Covered Person not acting in good faith on behalf of the Company or arose as a result of the willful commission by such Covered Person
of any act that is dishonest and materially injurious to the Company, (ii) results from its contractual obligations under any Reorganization
Document to be performed in a capacity other than as a Covered Person or from the breach by such Covered Person of Section 9.01
or (iii) results from the breach by any Member (in such capacity) of its contractual obligations under this Agreement. If any
Covered Person becomes involved in any capacity in any action, suit, proceeding or investigation in connection with any matter arising
out of or in connection with the Company’s business or affairs, or this Agreement or any related document, other than by reason
of a Covered Person not acting in good faith on behalf of the Company or by reason of the willful commission by such Covered Person of
any act that is dishonest and materially injurious to the Company, the Company shall reimburse such Covered Person for its reasonable
legal and other reasonable out-of-pocket expenses (including the cost of any investigation and preparation) as they are incurred in connection
therewith; provided that such Covered Person shall promptly repay to the Company the amount of any such reimbursed expenses paid
to it if it shall be finally judicially determined that such Covered Person was not entitled to indemnification by, or contribution from,
the Company in connection with such action, suit, proceeding or investigation. If for any reason (other than by reason of a Covered Person
not acting in good faith on behalf of the Company or by reason of the willful commission by such Covered Person of any act that is dishonest
and materially injurious to the Company) the foregoing indemnification is unavailable to such Covered Person, or insufficient to hold
it harmless, then the Company shall contribute to the amount paid or payable by such Covered Person as a result of such loss, claim,
damage, liability, expense, judgment, fine, settlement or other amount in such proportion as is appropriate to reflect any relevant equitable
considerations. There shall be, and each Covered Person shall be entitled to, a rebuttable presumption that such Covered Person acted
in good faith.

 

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(d)            The
obligations of the Company under Section 10.02(c) shall be satisfied solely out of and to the extent of the Company’s
assets, and no Covered Person shall have any personal liability on account thereof.

 

(e)            Given
that certain Jointly Indemnifiable Claims may arise by reason of the service of a Covered Person to the Company or as a director, trustee,
officer, partner, member, manager, employee, consultant, fiduciary or agent of other corporations, limited liability companies, partnerships,
joint ventures, trusts, employee benefit plans or other enterprises controlled by the Company (collectively, the “Controlled
Entities”), or by reason of any action alleged to have been taken or omitted in any such capacity, the Company acknowledges
and agrees that the Company shall, and to the extent applicable shall cause the Controlled Entities to, be fully and primarily responsible
for the payment to the Covered Person in respect of indemnification or advancement of all out-of-pocket costs of any type or nature whatsoever
(including, without limitation, all attorneys’ fees and related disbursements) in each case, actually and reasonably incurred by
or on behalf of a Covered Person in connection with either the investigation, defense or appeal of a claim, demand, action, suit or proceeding
or establishing or enforcing a right to indemnification under this Agreement or otherwise incurred in connection with a claim that is
indemnifiable hereunder (collectively, “Expenses”) in connection with any such Jointly Indemnifiable Claim, pursuant
to and in accordance with (as applicable) the terms of (i) the Delaware Act, (ii) this Agreement, (iii) any other agreement
between the Company or any Controlled Entity and the Covered Person pursuant to which the Covered Person is indemnified, (iv) the
laws of the jurisdiction of incorporation or organization of any Controlled Entity or (v) the certificate of incorporation, certificate
of organization, bylaws, partnership agreement, operating agreement, certificate of formation, certificate of limited partnership, certificate
of qualification or other organizational or governing documents of any Controlled Entity ((i) through (v) collectively, the
 “Indemnification Sources”), irrespective of any right of recovery the Covered Person may have from the Indemnitee-Related
Entities. Under no circumstance shall the Company or any Controlled Entity be entitled to any right of subrogation or contribution by
the Indemnitee-Related Entities and no right of advancement or recovery the Covered Person may have from the Indemnitee-Related Entities
shall reduce or otherwise alter the rights of the Covered Person or the obligations of the Company or any Controlled Entity under the
Indemnification Sources. In the event that any of the Indemnitee-Related Entities shall make any payment to the Covered Person in respect
of indemnification or advancement of Expenses with respect to any Jointly Indemnifiable Claim, (i) the Company shall, and to the
extent applicable shall cause the Controlled Entities to, reimburse the Indemnitee-Related Entity making such payment to the extent of
such payment promptly upon written demand from such Indemnitee-Related Entity, (ii) to the extent not previously and fully reimbursed
by the Company or any Controlled Entity pursuant to clause (i), the Indemnitee-Related Entity making such payment shall be subrogated
to the extent of the outstanding balance of such payment to all of the rights of recovery of the Covered Person against the Company or
any Controlled Entity, as applicable, and (iii) the Covered Person shall execute all papers reasonably required and shall do all
things that may be reasonably necessary to secure such rights, including the execution of such documents as may be necessary to enable
the Indemnitee-Related Entities effectively to bring suit to enforce such rights. The Company and the Covered Person agree that each
of the Indemnitee-Related Entities shall be third-party beneficiaries with respect to this Section 10.02(e), entitled to
enforce this Section 10.02(e) as though each such Indemnitee-Related Entity were a party to this Agreement. The Company
shall cause each of the Controlled Entities to perform the terms and obligations of this Section 10.02(e) as though
each such Controlled Entity was the “Company” under this Agreement. For purposes of this Section 10.02(e), the
following terms shall have the following meanings:

 

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(i)            The
term “Indemnitee-Related Entities” means any corporation, limited liability company, partnership, joint venture, trust,
employee benefit plan or other enterprise (other than the Company, any Controlled Entity or the insurer under and pursuant to an insurance
policy of the Company or any Controlled Entity) from whom a Covered Person may be entitled to indemnification or advancement of Expenses
with respect to which, in whole or in part, the Company or any Controlled Entity may also have an indemnification or advancement obligation.

 

(ii)           The
term “Jointly Indemnifiable Claims” shall be broadly construed and shall include, without limitation, any claim, demand,
action, suit or proceeding for which the Covered Person shall be entitled to indemnification or advancement of Expenses from both (i) the
Company or any Controlled Entity pursuant to the Indemnification Sources, on the one hand, and (ii) any Indemnitee-Related Entity
pursuant to any other agreement between any Indemnitee-Related Entity and the Covered Person pursuant to which the Covered Person is
indemnified, the laws of the jurisdiction of incorporation or organization of any Indemnitee-Related Entity or the certificate of incorporation,
certificate of organization, bylaws, partnership agreement, operating agreement, certificate of formation, certificate of limited partnership
or other organizational or governing documents of any Indemnitee-Related Entity, on the other hand.

 

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Article XI

 

DISSOLUTION AND TERMINATION

 

Section 11.01         Dissolution.

 

(a)            The
Company shall not be dissolved by the admission of Additional Members or Substitute Members pursuant to Section 3.02.

 

(b)            No
Member shall (i) resign from the Company prior to the dissolution and winding up of the Company except in connection with a Transfer
of Units pursuant to the terms of this Agreement or (ii) take any action to dissolve, terminate or liquidate the Company or to require
apportionment, appraisal or partition of the Company or any of its assets, or to file a bill for an accounting, except as specifically
provided in this Agreement, and each Member, to the fullest extent permitted by Applicable Law, hereby waives any rights to take any
such actions under Applicable Law, including any right to petition a court for judicial dissolution under Section 18-802 of the
Delaware Act.

 

(c)            The
Company shall be dissolved and its business wound up only upon the earliest to occur of any one of the following events (each a “Dissolution
Event”):

 

(i)            The
expiration of forty-five (45) days after the sale or other disposition of all or substantially all the assets of the Company; or

 

(ii)           upon
the approval of the Managing Member.

 

(d)            The
death, retirement, resignation, expulsion, bankruptcy, insolvency or dissolution of a Member or the occurrence of any other event that
terminates the continued membership of a Member of the Company shall not in and of itself cause dissolution of the Company.

 

Section 11.02         Winding
Up of the Company.

 

(a)            The
Managing Member shall promptly notify the other Members of any Dissolution Event. Upon dissolution, the Company’s business shall
be liquidated in an orderly manner. The Managing Member shall appoint a liquidating trustee to wind up the affairs of the Company pursuant
to this Agreement. In performing its duties, the liquidating trustee is authorized to sell, distribute, exchange or otherwise dispose
of the assets of the Company in accordance with the Delaware Act and in any reasonable manner that the liquidating trustee shall determine
to be in the best interest of the Members.

 

(b)            The
proceeds of the liquidation of the Company shall be distributed in the following order and priority:

 

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(i)            first,
to the creditors (including any Members or their respective Affiliates that are creditors) of the Company in satisfaction of all of the
Company’s liabilities (whether by payment or by making reasonable provision for payment thereof, including the setting up of any
reserves which are, in the judgment of the liquidating trustee, reasonably necessary therefor); and

 

(ii)           second,
to the Members in the same manner as distributions under Section 5.03(b), subject to Section 5.03(e).

 

(c)            Distribution
of Property. In the event it becomes necessary in connection with the liquidation of the Company to make a distribution of Property
in-kind, subject to the priority set forth in Section 11.02, the liquidating trustee shall have the right to compel each
Member to accept a distribution of any Property in-kind (with such Property, as a percentage of the total liquidating distributions to
such Member, corresponding as nearly as possible to such Member’s Percentage Interest), with such distribution being based upon
the amount of cash that would be distributed to such Members if such Property were sold for an amount of cash equal to the fair market
value of such Property, as determined by the liquidating trustee in good faith, subject to the last sentence of Section 5.03(d).

 

Section 11.03          Termination.
The Company shall terminate when all of the assets of the Company, after payment of or reasonable provision for the payment of all debts
and liabilities of the Company, shall have been distributed to the Members in the manner provided for in this Article XI,
and the certificate of formation of the Company shall have been cancelled in the manner required by the Delaware Act.

 

Section 11.04         Survival.
Termination, dissolution, liquidation or winding up of the Company for any reason shall not release any party from any liability which
at the time of such termination, dissolution, liquidation or winding up already had accrued to any other party or which thereafter may
accrue in respect to any act or omission prior to such termination, dissolution, liquidation or winding up.

 

Article XII

 

MISCELLANEOUS

 

Section 12.01         Expenses.
Other than as set forth in Section [4.12] of the Reorganization Agreement, all costs and expenses incurred in connection with this
Agreement and the transactions contemplated hereby shall be paid by the party incurring such cost or expense.

 

Section 12.02         Further
Assurances. Each Member agrees to execute, acknowledge, deliver, file and record such further certificates, amendments, instruments
and documents, and to do all such other acts and things, as may be required by Applicable Law or as, in the reasonable judgment of the
Managing Member, may be necessary or advisable to carry out the intent and purposes of this Agreement.

 

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Section 12.03         Notices.
All notices, requests and other communications to any party hereunder shall be in writing (including facsimile transmission and electronic
mail (“e-mail”) transmission, so long as a receipt of such e-mail is requested and received) and shall be given to
such party at the address, facsimile number or e-mail address specified for such party on the Member Schedule hereto. All such notices,
requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00
p.m. on a Business Day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed to have been
received on the next succeeding Business Day in the place of receipt.

 

Section 12.04         Binding
Effect; Benefit; Assignment.

 

(a)            The
provisions of this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors
and assigns. No provision of this Agreement is intended to confer any rights, benefits, remedies, obligations or liabilities hereunder
upon any Person other than the parties hereto and their respective successors and assigns.

 

(b)            Except
as provided in Article VIII, no Member may assign, delegate or otherwise transfer any of its rights or obligations under
this Agreement without the consent of the Managing Member.

 

Section 12.05         Jurisdiction.

 

(a)            The
parties hereto agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or
in connection with, this Agreement or the transactions contemplated hereby (whether brought by any party or any of its Affiliates or
against any party or any of its Affiliates) shall be brought in the Delaware Chancery Court or, if such court shall not have jurisdiction,
any federal court located in the State of Delaware or other Delaware state court, and each of the parties hereby irrevocably consents
to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably
waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such
suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in
an inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within
or without the jurisdiction of any such court. Without limiting the foregoing, each party agrees that service of process on such party
as provided in Section 12.03 shall be deemed effective service of process on such party.

 

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(b)            EACH
OF THE COMPANY AND THE MEMBERS HEREBY IRREVOCABLY DESIGNATES THE CORPORATION TRUST COMPANY (IN SUCH CAPACITY, THE “PROCESS AGENT”),
WITH AN OFFICE AT CORPORATION SERVICE COMPANY, 2711 CENTERVILLE ROAD, SUITE 400, WILMINGTON, NEW CASTLE COUNTY, DELAWARE, 19808, AS ITS
DESIGNEE, APPOINTEE AND AGENT TO RECEIVE, FOR AND ON ITS BEHALF SERVICE OF PROCESS IN SUCH JURISDICTION IN ANY LEGAL ACTION OR PROCEEDINGS
WITH RESPECT TO THIS AGREEMENT OR ANY OTHER AGREEMENT EXECUTED IN CONNECTION WITH THIS AGREEMENT, AND SUCH SERVICE SHALL BE DEEMED COMPLETE
UPON DELIVERY THEREOF TO THE PROCESS AGENT; PROVIDED THAT IN THE CASE OF ANY SUCH SERVICE UPON THE PROCESS AGENT, THE PARTY EFFECTING
SUCH SERVICE SHALL ALSO DELIVER A COPY THEREOF TO EACH OTHER SUCH PARTY IN THE MANNER PROVIDED IN SECTION 12.03 OF THIS AGREEMENT.
EACH PARTY SHALL TAKE ALL SUCH ACTION AS MAY BE NECESSARY TO CONTINUE SAID APPOINTMENT IN FULL FORCE AND EFFECT OR TO APPOINT ANOTHER
AGENT SO THAT SUCH PARTY SHALL AT ALL TIMES HAVE AN AGENT FOR SERVICE OF PROCESS FOR THE ABOVE PURPOSES IN WILMINGTON, DELAWARE. NOTHING
HEREIN SHALL AFFECT THE RIGHT OF ANY PARTY TO SERVE PROCESS IN ANY MANNER PERMITTED BY APPLICABLE LAW. EACH PARTY EXPRESSLY ACKNOWLEDGES
THAT THE FOREGOING WAIVER IS INTENDED TO BE IRREVOCABLE UNDER THE LAWS OF THE STATE OF DELAWARE AND OF THE UNITED STATES OF AMERICA.

 

Section 12.06         Counterparts.
This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument. Until and unless each party has received a counterpart hereof signed by the other party
hereto, this Agreement shall have no effect and no party shall have any right or obligation hereunder (whether by virtue of any other
oral or written agreement or other communication).

 

Section 12.07         Entire
Agreement. This Agreement and the other Reorganization Documents constitute the entire agreement between the parties with respect
to the subject matter of this Agreement and supersede all prior agreements and understandings, both oral and written, between the parties
with respect to the subject matter of this Agreement. Nothing in this Agreement shall create any third-party beneficiary rights in favor
of any Person or other party, except to the extent provided herein with respect to Indemnitee-Related Entities, each of whom are intended
third-party beneficiaries of those provisions that specifically relate to them with the right to enforce such provisions as if they were
a party hereto.

 

Section 12.08         Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other Governmental
Authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance
of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such a determination, the
parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible
in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the fullest
extent possible.

 

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Section 12.09         Amendment.

 

(a)            This
Agreement can be amended at any time and from time to time by the Managing Member; provided, in addition to the approval of the
Managing Member, no amendment to this Agreement may:

 

(i)            without
the prior written consent of each Founder Post-IPO Member, (x) adversely modify the limited liability of any Founder Post-IPO Member
set forth in Article V, Section 6.01(c), Section 10.01, Section 10.02 or Section 12.01,
or otherwise modify in any material respect the limited liability of any Founder Post-IPO Member, or adversely increase the liabilities
or obligations (other than de minimis liabilities or obligations) of any Founder Post-IPO Member or (y) adversely modify
the express rights of any Founder Post-IPO Member set forth in Section 3.01, Article IV, Section 5.03(e),
Section 7.03(b), Section 8.02(b) and this Section 12.09 (in the case of clause (y), only so
long as such Founder Post-IPO Member is entitled to such express rights);

 

(ii)           adversely
modify in any material respect the Units (or the rights, preferences or privileges of the Units) then held by any Members in any materially
disproportionate manner to those then held by any other Members without the prior written consent of a majority in interest of such disproportionately
affected Member or Members.

 

(b)            For
the avoidance of doubt, the Managing Member, acting alone, may amend this Agreement, including the Member Schedule, (x) to
reflect the admission of new Members or Transfers of Units, each as provided by and in accordance with, the terms of this Agreement,
(y) to effect any subdivisions or combinations of Units made in compliance with Section 4.02(c) and (z) to
issue additional Common Units or any new class of Units (whether or not pari passu with the Common Units) in accordance with the terms
of this Agreement and to provide that the Members being issued such new Units be entitled to the rights provided to the Founder Post-IPO
Members with respect to all or a portion of the provisions applicable thereto hereunder and any other rights that do not diminish or
eliminate any of the express rights of the such Founder Post-IPO Members described in Section 12.09(a)(i)(y).

 

(c)            No
waiver of any provision or default under, nor consent to any exception to, the terms of this Agreement or any agreement contemplated
hereby shall be effective unless in writing and signed by the party to be bound and then only to the specific purpose, extent and instance
so provided.

 

Section 12.10         Confidentiality.

 

(a)            Each
Member shall, and shall direct those of its Affiliates and their respective directors, officers, members, stockholders, partners, employees,
attorneys, accountants, consultants, trustees and other advisors (the “Member Parties”) who have access to Confidential
Information to, keep confidential and not disclose any Confidential Information to any Person other than a Member Party who agrees to
keep such Confidential Information confidential in accordance with this Section 12.10, in each case without the express consent,
in the case of Confidential Information acquired from the Company, of the Managing Member or, in the case of Confidential Information
acquired from another Member, such other Member, unless:

 

    45

     

    

 

(i)            such
disclosure is required by Applicable Law;

 

(ii)           such
disclosure is reasonably required in connection with any tax audit involving the Company or any Member or its Affiliates;

 

(iii)          such
disclosure is reasonably required in connection with any litigation against or involving the Company or any Member; or

 

(iv)          such
disclosure is reasonably required in connection with any proposed Transfer of all or any part of such Member’s Units in the Company;
provided that with respect to any such use of any Confidential Information referred to in this clause (iv), advance notice must
be given to the Managing Member so that it may require any proposed Transferee that is not a Member to enter into a confidentiality agreement
with terms substantially similar to the terms of this Section 12.10 (excluding this clause (iv)) prior to the disclosure
of such Confidential Information.

 

(b)            “Confidential
Information” means any information related to the activities of the Company, the Members and their respective Affiliates that
an Member may acquire from the Company or the Members, other than information that (i) is already available through publicly available
sources of information (other than as a result of disclosure by such Member), (ii) was available to a Member on a non-confidential
basis prior to its disclosure to such Member by the Company, or (iii) becomes available to a Member on a non-confidential basis
from a third party, provided such third party is not known by such Member, after reasonable inquiry, to be bound by this Agreement or
another confidentiality agreement with the Company. Such Confidential Information may include information that pertains or relates
to the business and affairs of any other Member or any other Company matters. Confidential Information may be used by a Member and its
Member Parties only in connection with Company matters and in connection with the maintenance of its interest in the Company.

 

(c)            In
the event that any Member or any Member Parties of such Member is required to disclose any of the Confidential Information, such Member
shall use reasonable efforts to provide the Company with prompt written notice so that the Company may seek a protective order or other
appropriate remedy or waive compliance with the provisions of this Agreement, and such Member shall use reasonable efforts to cooperate
with the Company in any effort any such Person undertakes to obtain a protective order or other remedy. In the event that such protective
order or other remedy is not obtained, or that the Company waives compliance with the provisions of this Section 12.10, such
Member and its Member Parties shall furnish only that portion of the Confidential Information that is legally required and shall exercise
all reasonable efforts to obtain reasonably reliable assurance that the Confidential Information shall be accorded confidential treatment.

 

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(d)            Notwithstanding
anything in this Agreement to the contrary, each Member may disclose to any persons the U.S. federal income tax treatment and tax structure
of the Company and the transactions set out in the Reorganization Agreement. For this purpose, “tax structure” is limited
to any facts relevant to the U.S. federal income tax treatment of the Company and does not include information relating to the identity
of the Company or any Member.

 

Section 12.11         Governing
Law. This Agreement will be governed by and construed in accordance with the laws of the State of Delaware without giving effect
to choice of law principles that would require the application of the laws of another state.

 

[signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused
this Amended and Restated Operating Agreement to be duly executed as of the day and year first written above.

 

	 	ALCLEAR HOLDINGS, LLC
	 	 
	 	 
	 	By:	 
		 	Name:

Title:

 

	 	CLEAR SECURE, INC.
	 	 
	 	 
	 	By:	 
			Name:

Title:

 

[Signature Page to the Amended and Restated

Operating Agreement of
Alclear Holdings, LLC]

 

    

     

    

 

	 	[PERSONS]
	 	 
	 	 
	 	[Persons]

  

[Signature Page to the Amended and Restated

Operating Agreement of
Alclear Holdings, LLC]Exhibit 10.8

 

CLEAR SECURE, INC

2021 Omnibus Incentive Plan

 

1.              Purpose.
The purpose of the Clear Secure, Inc. 2021 Omnibus Incentive Plan (as amended from time to time, the “Plan”)
is to attract and retain individuals to serve as employees, consultants or directors of Clear Secure, Inc., a Delaware corporation
(together with its Subsidiaries, whether existing or thereafter acquired or formed, and any and all successor entities, the “Company”)
and its Affiliates by providing them the opportunity to acquire an equity interest in the Company or other incentive compensation and
align their interests with those of the Company’s stockholders.

 

2.              Effective
Date; Duration. The Plan shall be effective on the business day immediately prior to the date the Company’s registration statement
relating to the initial public offering of its Common Stock becomes effective (the “Effective Date”). The expiration
date of the Plan, on and after which date no Awards may be granted under the Plan, shall be the 10th anniversary of the Effective
Date (the “Expiration Date”); provided, however, that such expiration shall not affect Awards
then outstanding, and the terms and conditions of the Plan shall continue to apply to such Awards.

 

3.              Definitions.
The following definitions shall apply throughout the Plan:

 

(a)            “Affiliate”
means (i) any person or entity that directly or indirectly controls, is controlled by or is under common control with the Company
and/or (ii) to the extent provided by the Committee, any person or entity in which the Company has a significant interest. The term
 “control” (including, with correlative meaning, the terms “controlled by” and “under common control with”),
as applied to any person or entity, means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of such person or entity, whether through the ownership of voting or other securities, by contract or otherwise.

 

(b)            “Award”
means, individually or collectively, any Incentive Stock Option, Nonqualified Stock Option, Stock Appreciation Right, Restricted Stock,
Restricted Stock Unit, Other Stock-Based Award or Other Cash-Based Award granted under the Plan.

 

(c)            “Award
Agreement” means any agreement (whether in written or electronic form) or other instrument or document evidencing any Award
granted under the Plan (including, in each case, in electronic form), which may, but need not, be executed or acknowledged by a Participant
(as determined by the Committee).

 

(d)            “Beneficial
Ownership” has the meaning set forth in Rule 13d-3 promulgated under Section 13 of the Exchange Act.

 

(e)            “Board”
means the Board of Directors of the Company.

 

(f)            “Cause”
means, with respect to any Participant, unless otherwise defined in an Award Agreement, for any Participant that has an employment agreement
or offer letter or similar agreement with the Company that contains a definition of “Cause” (or term or similar meaning),
the definition of Cause in such employment agreement or offer letter or similar agreement, and for any other Participant, any of the following:
(i) the Participant’s engaging in fraudulent, illegal or dishonest conduct in respect of the Company or its Affiliates; (ii) the
Participant’s conviction of, plea of guilty or no contest to a felony or crime involving moral turpitude; (iii) the Participant’s
engaging in public conduct that is, or could reasonably be determined to be, detrimental to the Company’s reputation; (iv) the
Participant’s willful misconduct or negligence in the performance of his or her duties that reasonably could be expected to be injurious
to the Company’s business, operations or reputation; (v) the Participant’s violation of any material policy or rule of
the Company; or (vi) the Participant’s failure to perform his or her duties after notice of such failure by the Company.

 

     

     

    

 

(g)            “Change
in Control” means, unless the applicable Award Agreement or the Committee provides otherwise, the first to occur of any
of the following events:

 

(i)            the
acquisition by any Person or related “group” (as such term is used in Section 13(d) and Section 14(d) of
the Exchange Act) of Persons, or Persons acting jointly or in concert, of Beneficial Ownership (including control or direction) of 50%
or more (on a fully diluted basis) of either (A) the then-outstanding Shares, including Shares issuable upon the exercise of options
or warrants, the conversion of convertible stock or debt, and the exercise of any similar right to acquire such Shares or (B) the
combined voting power of the then-outstanding voting securities of the Company entitled to vote in the election of Directors (the “Outstanding
Company Voting Securities”), but excluding any acquisition by the Company or any of its Affiliates, the Permitted Holders
or any of their respective Affiliates or by any employee benefit plan sponsored or maintained by the Company or any of its Affiliates;

 

(ii)            a
change in the composition of the Board such that members of the Board during any consecutive 24-month period (the “Incumbent
Directors”) cease to constitute a majority of the Board. Any person becoming a Director through election or nomination for
election approved by a valid vote of at least a majority of the Incumbent Directors shall be deemed an Incumbent Director; provided,
however, that no individual becoming a Director as a result of an actual or threatened election contest, as such terms are used
in Rule 14a-12 of Regulation 14A promulgated under the Exchange Act, or as a result of any other actual or threatened solicitation
of proxies or consents by or on behalf of any person other than the Board, shall be deemed an Incumbent Director;

 

(iii)            the
approval by the stockholders of the Company of a plan of complete dissolution or liquidation of the Company; or

 

(iv)            the
consummation of a reorganization, recapitalization, merger, amalgamation, consolidation, statutory share exchange or similar form of corporate
transaction involving (x) the Company or (y) any of its Subsidiaries, but in the case of this clause (y) only if Outstanding
Company Voting Securities are issued or issuable (a “Business Combination”), or sale, transfer or other disposition
of all or substantially all of the business or assets of the Company to an entity that is not an Affiliate of the Company (a “Sale”),
unless immediately following such Business Combination or Sale: (A) more than 50% of the total voting power of the entity resulting
from such Business Combination or the entity that acquired all or substantially all of the business or assets of the Company in such Sale
(in either case, the “Surviving Company”), or the ultimate parent entity that has Beneficial Ownership of sufficient
voting power to elect a majority of the board of directors (or analogous governing body) of the Surviving Company (the “Parent
Company”), is represented by the Outstanding Company Voting Securities that were outstanding immediately prior to such Business
Combination or Sale (or, if applicable, is represented by Shares into which the Outstanding Company Voting Securities were converted pursuant
to such Business Combination or Sale), and such voting power among the holders thereof is in substantially the same proportion as the
voting power of the Outstanding Company Voting Securities among the holders thereof immediately prior to the Business Combination or Sale,
(B) no Person (other than any employee benefit plan sponsored or maintained by the Surviving Company or the Parent Company) is or
becomes the beneficial owner, directly or indirectly, of 50% or more of the total voting power of the outstanding voting securities eligible
to elect members of the board of directors (or the analogous governing body) of the Parent Company (or, if there is no Parent Company,
the Surviving Company) and (C) at least a majority of the members of the board of directors (or the analogous governing body) of
the Parent Company (or, if there is no Parent Company, the Surviving Company) following the consummation of the Business Combination or
Sale were Board members at the time of the Board’s approval of the execution of the initial agreement providing for such Business
Combination or Sale.

 

    2

     

    

 

(h)            “Code”
means the U.S. Internal Revenue Code of 1986, as amended, and any successor thereto. References to any section of the Code shall be deemed
to include any regulations or other interpretative guidance under such section, and any amendments or successors thereto.

 

(i)            “Committee”
means the Compensation Committee of the Board or subcommittee thereof or, if no such committee or subcommittee thereof exists, or if the
Board otherwise takes action hereunder on behalf of the Committee, the Board.

 

(j)            “Common
Stock” means the Class A common stock of the Company, par value of $0.00001 per share (and any stock or other securities
into which such Class A common stock may be converted or into which it may be exchanged).

 

(k)            “Company”
has the meaning set forth in Section 1.

 

(l)            “Deferred
Award” means an Award granted pursuant to Section 13.

 

(m)            “Director”
means any member of the Company’s Board.

 

(n)            “Disability”
means, unless otherwise provided in an Award Agreement, a determination that a Participant is disabled in accordance with a long-term
disability insurance program maintained by the Company or a determination by the U.S. Social Security Administration that the Participant
is totally disabled.

 

(o)            “dollar”
or “$” shall refer to the United States dollars.

 

(p)            “Effective
Date” has the meaning set forth in Section 2.

 

(q)            “Eligible
Person” means any (i) individual employed by the Company or an Affiliate, (ii) Director or officer of the Company
or an Affiliate, or (iii) consultant or advisor to the Company or an Affiliate who may be offered securities registrable on Form S-8
under the Securities Act.

 

(r)            “Exchange
Act” means the U.S. Securities Exchange Act of 1934, as amended, and any successor thereto. References to any section of
(or rule promulgated under) the Exchange Act shall be deemed to include any rules, regulations or other interpretative guidance under
such section or rule, and any amendments or successors thereto.

 

(s)            “Expiration
Date” has the meaning set forth in Section 2.

 

(t)            “Fair
Market Value” means, (i) with respect to a Share on a given date and except as otherwise expressly determined by the
Committee, (x) if the Shares are listed on a national securities exchange, the closing sales price of a Share reported on such exchange
on such date or, if there is no such sale on that date, then on the last preceding date on which such a sale was reported or (y) if
the Shares are not listed on any national securities exchange, the amount determined by the Committee in good faith to be the fair market
value of a Share or (ii) with respect to any other property on any given date, the amount determined by the Committee in good faith
to be the fair market value of such other property as of such date.

 

    3

     

    

 

(u)            “Incentive
Stock Option” means an Option that is designated by the Committee as an incentive stock option as described in Section 422
of the Code and otherwise meets the requirements set forth in the Plan.

 

(v)            “Intrinsic
Value” with respect to an Option or SAR means (i) the excess, if any, of the price or implied price per Share in a
Change in Control or other event over (ii) the exercise or hurdle price of such Award multiplied by (iii) the number of Shares
covered by such Award.

 

(w)            “Indemnifiable
Person” has the meaning set forth in Section 4(e).

 

(x)            “Nonqualified
Stock Option” means an Option that is not designated by the Committee as an Incentive Stock Option.

 

(y)            “NYSE”
means New York Stock Exchange.

 

(z)            “Option”
means an Award granted under Section 7.

 

(aa)          “Other
Cash-Based Award” means an Award granted under Section 10 that is denominated and/or payable in cash, including cash
awarded as a bonus or upon the attainment of specific performance criteria or as otherwise permitted by the Plan or as contemplated by
the Committee.

 

(bb)         “Other
Stock-Based Award” means an Award granted under Section 10.

 

(cc)          “Participant”
has the meaning set forth in Section 6.

 

(dd)         “Permitted
Holders” means, at any time, each of (i) Caryn Seidman-Becker, Kenneth Cornick, their spouse, children (natural or
adopted), lineal descendants or the estates, heirs, executors, personal representatives, successors or administrators upon or as a result
of the death, incapacity or incompetency of such Person, or any trust established for the benefit of (or any charitable trust or non-profit
entity established by) any person mentioned in this clause (i), or any trustee, protector or similar person of such trust or non-profit
entity or any Person, directly or indirectly, controlling, controlled by or under common control with any Permitted Holder mentioned in
this clause (i), and (ii) each of Alclear Investments, LLC and Alclear Investments II, LLC.

 

(ee)          “Permitted
Transferee” has the meaning set forth in Section 15(b)(ii).

 

(ff)           “Person”
has the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof,
except that such term shall not include (i) the Company or any of its Affiliates, (ii) a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any of its Affiliates, (iii) an underwriter temporarily holding securities
pursuant to an offering of such securities or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company
in substantially the same proportions as their ownership of Shares of the Company.

 

(gg)         “Restricted
Period” has the meaning set forth in Section 9(a).

 

(hh)         “Restricted
Stock” means any Share subject to certain specified restrictions and forfeiture conditions, granted pursuant to Section 9.

 

    4

     

    

 

(ii)            “Restricted
Stock Unit” means a contractual right granted pursuant to Section 9 that is denominated in Shares. Each Restricted
Stock Unit represents an unfunded and unsecured promise to deliver Shares, cash, other securities or other property, or a combination
thereof, subject to certain specified restrictions, granted pursuant to Section 9.

 

(jj)            “Securities
Act” means the U.S. Securities Act of 1933, as amended, and any successor thereto. Reference in the Plan to any section
of (or rule promulgated under) the Securities Act shall be deemed to include any rules, regulations or other interpretative guidance
under such section or rule, and any amendments or successor provisions to such section, rules, regulations or other interpretive guidance.

 

(kk)          “Share”
means a share of Common Stock.

 

(ll)            “Stock
Appreciation Right” or “SAR” means an Award granted under Section 8.

 

(mm)        “Subsidiary”
means (i) any corporation or other entity a majority of whose outstanding voting stock or voting power is beneficially owned directly
or indirectly by the Company and (ii) any other entity which the Committee determines should be treated as a “Subsidiary.”

 

(nn)         “Substitute
Award” has the meaning set forth in Section 5(f).

 

4.              Administration.

 

(a)            Authority
of the Committee. The Committee shall administer the Plan, and shall have the sole and plenary authority to (i) designate Participants,
(ii) determine the type, size, and terms and conditions of Awards to be granted and to grant such Awards (including Substitute Awards),
(iii) determine the method by which an Award may be settled, exercised, canceled, forfeited, suspended or repurchased by the Company,
(iv) determine the circumstances under which the delivery of cash, property or other amounts payable with respect to an Award may
be deferred, either automatically or at the Participant’s or Committee’s election, (v) interpret, administer, reconcile
any inconsistency in, correct any defect in and supply any omission in the Plan and any Award granted under the Plan, (vi) establish,
amend, suspend, or waive any rules and regulations and appoint such agents as the Committee shall deem appropriate for the proper
administration of the Plan, (vii) accelerate or modify the vesting, delivery or exercisability of, or payment for or lapse of restrictions
on, or waive any condition in respect of, Awards and (viii) make any other determination and take any other action that the Committee
deems necessary or desirable for the administration of the Plan or to comply with any applicable law. To the extent determined by the
Board and/or required to comply with the provisions of Rule 16b-3 promulgated under the Exchange Act (if applicable and if the Board
is not acting as the Committee under the Plan), or any exception or exemption under applicable securities laws or the applicable rules of
the NYSE or any other securities exchange or inter-dealer quotation service on which the Shares are listed or quoted, as applicable, it
is intended that each member of the Committee shall, at the time such member takes any action with respect to an Award under the Plan,
be (1) a “non-employee director” within the meaning of Rule 16b-3 promulgated under the Exchange Act and/or (2) an
 “independent director” under the rules of the NYSE or any other securities exchange or inter-dealer quotation service
on which the Shares are listed or quoted, or a person meeting any similar requirement under any successor rule or regulation; provided
that the fact that a Committee member shall fail to qualify under the foregoing shall not invalidate any Award granted or action taken
by the Committee that is otherwise validly granted or taken under the Plan.

 

(b)            Delegation.
The Committee may delegate all or any portion of its responsibilities and powers to any person(s) selected by it, except for grants
of Awards to persons who are members of the Board or are otherwise subject to Section 16 of the Exchange Act. To the extent permitted
by applicable law, including under Section 157(c) of the Delaware General Corporation Law, the Committee may delegate to one
or more officers of the Company the authority to grant Options, SARs, Restricted Stock Units or other Awards in the form of rights to
Shares, except that such delegation shall not be applicable to any Award for a Person then covered by Section 16 of the Exchange
Act, and the Committee may delegate to one or more committees of the Board (which may consist of solely one Director) the authority to
grant all types of awards, in accordance with applicable law. Any such delegation may be revoked by the Committee at any time.

 

    5

     

    

 

(c)            International
Participants. As further set forth in Section 15(g), the Committee shall have the authority to amend the Plan and Awards, and
to approval any sub-plans under the Plan, supplements to the Plan or alternative versions of the Plan, to the extent necessary to permit
participation in the Plan by Eligible Persons who are located outside of the United States or are subject to laws outside of the United
States on terms and conditions comparable to those afforded to Eligible Persons located within the United States; provided, however,
that no such action shall be taken without stockholder approval if such approval is required by applicable securities laws or regulations
or NYSE listing guidelines.

 

(d)            Decisions
Binding. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions regarding
the Plan or any Award or any documents evidencing Awards granted pursuant to the Plan shall be within the sole discretion of the Committee,
may be made at any time and shall be final, conclusive and binding upon all persons and entities, including, without limitation, the Company,
any Affiliate, any Participant, any holder or beneficiary of any Award and any stockholder of the Company.

 

(e)            Limitation
of Liability. No member of the Board or the Committee, nor any employee or agent of the Company (each such person, an “Indemnifiable
Person”), shall be liable for any action taken or omitted to be taken or any determination made with respect to the Plan
or any Award hereunder (unless constituting fraud or a willful criminal act or willful criminal omission). Each Indemnifiable Person shall
be indemnified and held harmless by the Company against and from any loss, cost, liability or expense (including attorneys’ fees)
that may be imposed upon or incurred by such Indemnifiable Person in connection with or resulting from any action, suit or proceeding
to which such Indemnifiable Person may be involved as a party, witness or otherwise by reason of any action taken or omitted to be taken
or determination made under the Plan or any Award Agreement and against and from any and all amounts paid by such Indemnifiable Person
with the Company’s approval (not to be unreasonably withheld), in settlement thereof, or paid by such Indemnifiable Person in satisfaction
of any judgment in any such action, suit or proceeding against such Indemnifiable Person, and the Company shall advance to such Indemnifiable
Person any such expenses promptly upon written request (which request shall include an undertaking by the Indemnifiable Person to repay
the amount of such advance if it shall ultimately be determined as provided below that the Indemnifiable Person is not entitled to be
indemnified); provided that the Company shall have the right, at its own expense, to assume and defend any such action, suit or
proceeding, and once the Company gives notice of its intent to assume the defense, the Company shall have sole control over such defense
with counsel of recognized standing of the Company’s choice. The foregoing right of indemnification shall not be available to an
Indemnifiable Person to the extent that a final judgment or other final adjudication (in either case not subject to further appeal) binding
upon such Indemnifiable Person determines that the acts or omissions or determinations of such Indemnifiable Person giving rise to the
indemnification claim resulted from such Indemnifiable Person’s fraud or willful criminal act or willful criminal omission or that
such right of indemnification is otherwise prohibited by law or by the Company’s certificate of incorporation or bylaws. The foregoing
right of indemnification shall not be exclusive of or otherwise supersede any other rights of indemnification to which such Indemnifiable
Persons may be entitled under the Company’s certificate of incorporation or by-laws, as a matter of law, individual indemnification
agreement or contract, or otherwise, or any other power that the Company may have to indemnify such Indemnifiable Persons or hold them
harmless.

 

    6

     

    

 

(f)            Board.
The Board may at any time and from time to time grant Awards and administer the Plan with respect to such Awards. In any such case, the
Board shall have all the authority granted to the Committee under the Plan.

 

5.             Grant
of Awards; Available Shares for Awards; Limitations.

 

(a)            Awards.
The Committee may grant Awards to one or more Eligible Persons. All Awards granted under the Plan shall vest and, if applicable, become
exercisable in such manner and on such date or dates or upon such event or events (including without limitation any service-based or performance-based
conditions) as determined by the Committee and as set forth in an Award Agreement.

 

(b)            Available
Shares. Subject to Section 11 and subsection (d) below, the maximum number of Shares available for issuance under the Plan
as of the date of the Company’s initial public offering shall be 20,000,000. Commencing with the first business day of each calendar
year beginning in 2022 through 2031, such number of Shares available for issuance under the Plan shall automatically increase each year
by the lesser of (a) 5% of the aggregate number of shares of all classes of common stock outstanding (that is, assuming exchange and/or conversion
of all other classes of common stock into Class A common stock) on the final day of the immediately preceding calendar year or (b) such
number of Shares determined by the Committee; provided that any such increase shall not result in the number of Shares then available
for future grants being greater than an amount equal to 12% of the number of shares of all classes of common stock (that is, assuming
exchange and/or conversion of all other classes of common stock into Class A common stock) outstanding on the last day of the immediately preceding
calendar year. The maximum number of Shares that may be delivered pursuant to the exercise of Incentive Stock Options granted under the
Plan shall not exceed ten times the number set forth in the first sentence above.

 

(c)            Director
Compensation Limit. The maximum amount (based on the fair value of Awards on the grant date as determined in accordance with applicable
financial accounting rules) of Awards that may be granted in any single fiscal year to any non-employee Director, taken together with
any cash fees paid to such non-employee Director during such fiscal year, shall be $750,000, increased to $1,000,000 for the fiscal year
of a non-employee Director’s initial service as a non-employee Director (which limits shall not apply to the compensation for any
non-employee Director of the Company who serves in any capacity in addition to that of a non-employee Director for which he or she receives
additional compensation).

 

(d)            Share
Counting. The number of Shares available hereunder shall be reduced by the number of Shares delivered for each Award granted under
the Plan that is valued by reference to a Share; provided that Awards that are valued by reference to Shares but are required to
or may be paid in cash pursuant to their terms shall not reduce the Shares available hereunder. If and to the extent that Awards terminate,
expire or are cash settled, canceled, forfeited, exchanged or surrendered without having been exercised, vested or settled, the Shares
subject to such Awards shall again be available for Awards hereunder. In addition, any (i) Shares tendered by Participants, or withheld
by the Company, as full or partial payment to the Company upon the exercise of Stock Options granted under the Plan; (ii) Shares
reserved for issuance upon the grant of Stock Appreciation Rights, to the extent that the number of reserved Shares exceeds the number
of Shares actually issued upon the exercise of the Stock Appreciation Rights; and (iii) Shares withheld by, or otherwise remitted
to, the Company to satisfy a Participant’s tax withholding obligations upon the exercise of Options or SARs granted under the Plan,
or upon the lapse of restrictions on, or settlement of, an Award, shall again be available hereunder.

 

(e)            Source
of Shares. Shares delivered by the Company in settlement of Awards may be authorized and unissued Shares, Shares held in the treasury
of the Company, Shares purchased on the open market or by private purchase, or a combination of the foregoing.

 

    7

     

    

 

(f)             Substitute
Awards. The Committee may grant Awards in assumption of, or in substitution for, outstanding
awards previously granted by the Company or any Affiliate or an entity directly or indirectly acquired by the Company or with which the
Company combines (“Substitute Awards”), and such Substitute Awards shall not be counted against the aggregate
number of Shares available for Awards hereunder; provided, that Substitute Awards issued or intended as “incentive stock options”
within the meaning of Section 422 of the Code shall be counted against the aggregate number of Incentive Stock Options available
under the Plan.

 

6.              Eligibility.
Participation shall be for Eligible Persons who have been selected by the Committee or its delegate to receive grants under the Plan (each
such Eligible Person, a “Participant”). Holders of options and other types of awards granted by a company acquired
by the Company or with which the Company combines are eligible for grants of Substitute Awards under the Plan to the extent permitted
under applicable regulations of any stock exchange on which the Company is listed.

 

7.              Options.

 

(a)            Generally.
Each Option shall be subject to the conditions set forth in the Plan and in the applicable Award Agreement. All Options granted under
the Plan shall be Nonqualified Stock Options unless the Award Agreement expressly states otherwise.

 

(b)            Exercise
Price. The exercise price per Share for each Option, which is the purchase price per Share underlying the Option, shall be determined
by the Committee at the time of grant and, except in the case of a Substitute Award, such exercise price shall not be less than 100% of
the Fair Market Value of a Share on the date of grant of such Option.

 

(c)            Vesting,
Exercise and Expiration. The Committee shall determine the manner and timing of vesting, exercise and expiration of Options. The period
between the date of grant and the scheduled expiration date of the Option shall not exceed 10 years. The Committee may accelerate the
vesting and/or exercisability of any Option, which acceleration shall not affect any other terms and conditions of such Option.

 

(d)            Method
of Exercise and Form of Payment. No Shares shall be delivered pursuant to any exercise of an Option until the Participant has
paid the exercise price to the Company in full, and an amount equal to any applicable U.S. federal, state and local income and employment
taxes and non-U.S. income and employment taxes, social contributions and any other tax-related items required to be withheld. Options
may be exercised by delivery of written or electronic notice of exercise to the Company or its designee (including a third-party administrator)
in accordance with the terms of the Option and the Award Agreement, accompanied by payment of the exercise price and such applicable taxes.
The exercise price and delivery of all applicable required withholding taxes shall be payable (i) in cash or by check or cash equivalent
or (ii) by such other method as the Committee may permit, in its sole discretion, including without limitation: (A) in the form
of other property (including previously owned Shares; provided that such Shares are not subject to any pledge or other security interest
and, except as otherwise determined by the Committee, have been held for at least six months) having a Fair Market Value on the date of
exercise equal to the exercise price and all applicable required withholding taxes; (B) if there is a public market for the Shares
at such time, by means of a broker-assisted “cashless exercise” pursuant to which the Company or its designee (including third-party
administrators) is delivered a copy of irrevocable instructions to a stockbroker to sell the Shares otherwise deliverable upon the exercise
of the Option and to deliver promptly to the Company an amount equal to the exercise price and all applicable required withholding taxes
against delivery of the Shares to settle the applicable trade; or (C) by means of a “net exercise” procedure effected
by withholding the minimum number of Shares otherwise deliverable in respect of an Option having a Fair Market Value on the date of exercise
equal to the exercise price and all applicable required withholding taxes.

 

    8

     

    

 

(e)            Compliance
with Laws. Notwithstanding the foregoing, in no event shall the Participant be permitted to exercise an Option in a manner that the
Committee determines would violate the Sarbanes-Oxley Act of 2002, or any other applicable law or the applicable rules and regulations
of the Securities and Exchange Commission or the applicable rules and regulations of any securities exchange or inter-dealer quotation
service on which the Shares of the Company are listed or quoted.

 

(f)            Incentive
Stock Options. Incentive Stock Options shall be granted only subject to and in compliance with Section 422 of the Code, and only
to Eligible Persons who are employees of the Company or of a subsidiary or parent corporation, within the meaning of Section 424
of the Code, of the Company. If for any reason an Option intended to be an Incentive Stock Option (or any portion thereof) shall not qualify
as an Incentive Stock Option, then, to the extent of such nonqualification, such Option or portion thereof shall be regarded as a Nonqualified
Stock Option properly granted under the Plan.

 

8.              Stock
Appreciation Rights (SARs).

 

(a)            Generally.
Each SAR shall be subject to the conditions set forth in the Plan and in the applicable Award Agreement.

 

(b)            Exercise
Price. The exercise or hurdle price per Share for each SAR shall be determined by the Committee at the time of grant and, except in
the case of a Substitute Award, such exercise or hurdle price shall not be less than 100% of the Fair Market Value of a Share on the date
of grant of such SAR.

 

(c)            Vesting,
Exercise and Expiration. The Committee shall determine the manner and timing of vesting, exercise and expiration of SARs. The period
between the date of grant and the scheduled expiration of the SAR shall not exceed 10 years. The Committee may accelerate the vesting
and/or exercisability of any SAR, which acceleration shall not affect any other terms and conditions of such SAR.

 

(d)            Method
of Exercise and Form of Payment. SARs may be exercised by delivery of written or electronic notice of exercise to the Company
or its designee (including a third-party administrator) in accordance with the terms of the SAR and the Award Agreement, specifying the
number of SARs to be exercised and the date on which such SARs were awarded. Upon the exercise of a SAR, the Company shall pay to the
holder thereof an amount equal to the number of Shares subject to the SAR that are being exercised multiplied by the excess, if any, of
the Fair Market Value of one Share on the exercise date over the exercise or hurdle price, less an amount equal to any applicable U.S.
federal, state and local income and employment taxes and non-U.S. income and employment taxes, social contributions and any other tax-related
items required to be withheld. The Company shall pay such amount in cash, in Shares valued at Fair Market Value as determined on the date
of exercise, or any combination thereof, as determined by the Committee. The Committee may provide for automatic exercise of a SAR prior
to its expiration.

 

9.              Restricted
Stock and Restricted Stock Units.

 

(a)            Generally.
Each Restricted Stock and Restricted Stock Unit shall be subject to the conditions set forth in the Plan and the applicable Award Agreement.
The Committee shall establish restrictions applicable to Restricted Stock and Restricted Stock Units, including the period over which
the restrictions shall apply (the “Restricted Period”), and the time or times at which Restricted Stock or Restricted
Stock Units shall become vested (which, for the avoidance of doubt, may include service- and/or performance-based vesting conditions).
The Committee may accelerate the vesting and/or the lapse of any or all of the restrictions on Restricted Stock and Restricted Stock Units,
which acceleration shall not affect any other terms and conditions of such Awards. No Share shall be issued at the time an Award of Restricted
Stock Units is made, and the Company will not be required to set aside a fund for the payment of any such Award.

 

    9

     

    

 

(b)            Director
Retainer Fees. To the extent permitted by the Board and subject to such rules, approvals and conditions as the Committee may impose
from time to time, an Eligible Person who is a non-employee Director may elect to receive all or a portion of such Eligible Person’s
cash director fees and other cash director compensation payable for director services provided to the Company by such Eligible Person
in any fiscal year, in whole or in part, in the form of Restricted Stock Units or Shares, which shall not count against the Shares available
hereunder.

 

(c)            Stock
Certificates; Escrow or Similar Arrangement. Upon the grant of Restricted Stock, the Committee
shall cause Share(s) to be registered in the name of the Participant, which may be evidenced in any manner the Committee may deem
appropriate, including in book-entry form subject to the Company’s directions or the issuance of a stock certificate registered
in the name of the Participant. In such event, the Committee may provide that such certificates shall be held by the Company or in escrow
rather than delivered to the Participant pending vesting and release of restrictions, in which case the Committee may require the Participant
to execute and deliver to the Company or its designee (including third-party administrators) (i) an escrow agreement satisfactory
to the Committee, if applicable, and (ii) the appropriate stock power (endorsed in blank) with respect to the Restricted Stock.

 

(e)            Voting
and Rights as a Stockholder. Subject to the restrictions set forth in the applicable Award Agreement, a Participant generally shall
have the rights and privileges of a stockholder with respect to Awards of Restricted Stock, including, without limitation, the right to
vote such Shares of Restricted Stock and the right to receive dividends; provided that the Committee may provide that any dividends
will be subject to the same Restricted Period as the underlying Restricted Stock. A Restricted Stock Unit shall not convey to the Participant
the rights and privileges of a stockholder with respect to the Share subject to the Restricted Stock Unit, such as the right to vote or
the right to receive dividends, unless and until a Share is issued to the Participant to settle the Restricted Stock Unit.

 

(f)            Restrictions;
Forfeiture. Restricted Stock and Restricted Stock Units awarded to the Participant shall be subject to forfeiture until the expiration
of the Restricted Period and the attainment of any other vesting criteria established by the Committee, and shall be subject to the restrictions
on transferability set forth in the Award Agreement. Unless otherwise provided by the Committee, in the event of any forfeiture, all rights
of the Participant to such Restricted Stock (or as a stockholder with respect thereto) and to such Restricted Stock Units, as applicable,
shall terminate without further action or obligation on the part of the Company. The Committee shall have the authority to remove any
or all of the restrictions on the Restricted Stock and Restricted Stock Units whenever it may determine that, by reason of changes in
applicable laws or other changes in circumstances arising after the date of grant of the Restricted Stock Award or Restricted Stock Unit
Award, such action is appropriate.

 

(g)            Delivery
of Restricted Stock and Settlement of Restricted Stock Units.

 

(i)            Upon
the expiration of the Restricted Period with respect to any Shares of Restricted Stock and the attainment of any other vesting criteria,
the restrictions set forth in the applicable Award Agreement shall be of no further force or effect, except as set forth in the Award
Agreement. If an escrow arrangement is used, upon such expiration the Company shall deliver to the Participant or such Participant’s
beneficiary or Permitted Transferee (via book-entry notation or, if applicable, in stock certificate form) the Shares of Restricted Stock
with respect to which the Restricted Period has expired (rounded down to the nearest full Share). To the extent provided in an Award Agreement,
dividends, if any, that may have been withheld by the Company and attributable to the Restricted Stock shall be distributed to the Participant
in cash or in Shares (or a combination of cash and Shares) having a Fair Market Value (on the date of distribution) equal to the amount
of such dividends, upon the release of restrictions on the Restricted Stock.

 

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(ii)            Unless
otherwise provided by the Committee in an Award Agreement, upon the expiration of the Restricted Period and the attainment of any other
vesting criteria established by the Committee in the applicable Award Agreement, with respect to any outstanding Restricted Stock Units,
the Company shall deliver to the Participant, or such Participant’s beneficiary (via book-entry notation or, if applicable, in stock
certificate form), one Share (or other securities or other property, as applicable) for each such outstanding Restricted Stock Unit that
has not then been forfeited and with respect to which the Restricted Period has expired and any other such vesting criteria are attained,
except to the extent an Award Agreement provides for payment in cash or otherwise and subject to any deferral of delivery specified in
the Award Agreement. To the extent provided in an Award Agreement, dividend equivalents, if any, that may have been attributable to the
Restricted Stock Units shall be distributed to the Participant in cash or in Shares (or a combination of cash and Shares) having a Fair
Market Value (on the date of distribution) equal to the amount of such dividends, upon the release of restrictions on the associated Restricted
Stock Units.

 

(h)            Legends
on Restricted Stock. Each certificate representing Shares of Restricted Stock awarded under the Plan, if any, shall bear as appropriate
a legend referring to the restrictions in addition to any other information the Company deems appropriate until the lapse of all restrictions
with respect to such Shares.

 

10.            Other
Stock-Based Awards and Other Cash-Based Awards. The Committee may issue unrestricted Shares, rights to receive future grants of Awards,
or other Awards denominated in Shares (including performance shares or performance units), or Awards that provide for cash payments based
in whole or in part on the value or future value of Shares (“Other Stock-Based Awards”) and Other Cash-Based
Awards under the Plan to Eligible Persons, alone or in tandem with other Awards, in such amounts as the Committee shall from time to time
determine. Each Other Stock-Based Award shall be evidenced by an Award Agreement, which may include conditions including, without limitation,
the payment by the Participant of the Fair Market Value of such Shares on the date of grant. Each Other Cash-Based Award granted under
the Plan shall be evidenced in such form as the Committee may determine from time to time.

 

11.            Changes
in Capital Structure and Similar Events. In the event of (a) any dividend (other than regular cash dividends) or other distribution
(whether in the form of cash, Shares, other securities or other property), recapitalization, stock split, reverse stock split, reorganization,
merger, amalgamation, consolidation, split-up, split-off, spin-off, combination, repurchase or exchange of Shares or other securities
of the Company, issuance of warrants or other rights to acquire Shares or other securities of the Company, or other similar corporate
transaction or event (including, without limitation, a Change in Control) that affects the Shares or (b) unusual or nonrecurring
events (including, without limitation, a Change in Control) affecting the Company, any Affiliate, or the financial statements of the Company
or any Affiliate, or changes in applicable rules, rulings, regulations or other requirements of any governmental body or securities exchange
or inter-dealer quotation service, accounting principles or law, such that in any case an adjustment is determined by the Committee to
be necessary or appropriate, then the Committee shall (other than with respect to Other Cash-Based Awards), to the extent permitted under
Section 409A of the Code, make any such adjustments in such manner as it may deem equitable, including, without limitation, any or
all of the following:

 

(i)            adjusting
any or all of (A) the number of Shares or other securities of the Company (or number and kind of other securities or other property)
that may be delivered in respect of Awards or with respect to which Awards may be granted under the Plan (including, without limitation,
adjusting any or all of the limitations under Section 5) and (B) the terms of any outstanding Award, including, without limitation,
(1) the number of Shares or other securities of the Company (or number and kind of other securities or other property) subject to
outstanding Awards or to which outstanding Awards relate, (2) the exercise price with respect to any Award and/or (3) any applicable
performance measures;

 

    11

     

    

 

(ii)            providing
for a substitution or assumption of Awards, accelerating the delivery, vesting and/or exercisability of, lapse of restrictions and/or
other conditions on, or termination of, Awards or providing for a period of time for Participants to exercise outstanding Awards prior
to the occurrence of such event (and any such Award not so exercised shall terminate or become no longer exercisable upon the occurrence
of such event); and

 

(iii)            cancelling
any one or more outstanding Awards and causing to be paid to the holders thereof, in cash, Shares, other securities or other property,
or any combination thereof, the value of such Awards, if any, as determined by the Committee (which, if applicable, may be based upon
the price per Share received or to be received by other stockholders of the Company in such event), including, without limitation, in
the case of an outstanding Option or SAR, a cash payment in an amount equal to the excess, if any, of the Fair Market Value (as of a date
specified by the Committee) of the Shares subject to such Option or SAR over the aggregate exercise price of such Option or SAR, respectively
(it being understood that, in such event, any Option or SAR having a per Share exercise price equal to, or in excess of, the Fair Market
Value (as of the date specified by the Committee) of a Share subject thereto may be canceled and terminated without any payment or consideration
therefor);

 

provided, however, that the Committee
shall make an equitable or proportionate adjustment to outstanding Awards to reflect any “equity restructuring” (within the
meaning of the Financial Accounting Standards Codification Topic 718 (or any successor pronouncement thereto)). Any such adjustment hereunder
shall be conclusive and binding for all purposes. In anticipation of the occurrence of any event listed in the first sentence of this
Section 11, for reasons of administrative convenience, the Committee in its sole discretion may refuse to permit the exercise of
any Award or as it otherwise may determine during a period of up to 30 days prior to, and/or up to 30 days after, the anticipated occurrence
of any such event.

 

12.            Effect
of Termination of Service or a Change in Control on Awards.

 

(a)            Termination.
To the extent permitted under Section 409A of the Code, the Committee may provide, by rule or regulation or in any applicable
Award Agreement, or may determine in any individual case, the circumstances in which, and to the extent to which, an Award may be exercised,
settled, vested, paid or forfeited in the event of the Participant’s termination of service prior to the end of a performance period
or vesting, exercise or settlement of such Award.

 

(b)            Change
in Control. In the event of a Change in Control, notwithstanding any provision of the Plan to the contrary, the Committee may provide
for: (i) continuation or assumption of such outstanding Awards under the Plan by the Company (if it is the surviving corporation)
or by the surviving corporation or its parent; (ii) substitution by the surviving corporation or its parent of awards with substantially
the same terms and value for such outstanding Awards (in the case of an Option or SAR, the Intrinsic Value at grant of such Substitute
Award shall equal the Intrinsic Value of the Award); (iii) acceleration of the vesting (including the lapse of any restrictions)
or right to exercise such outstanding Awards immediately prior to or as of the date of the Change in Control, and the expiration of such
outstanding Awards to the extent not timely exercised by the date of the Change in Control or other date thereafter designated by the
Committee; or (iv) cancellation of any outstanding Award and payment to the Participant who holds such Award in an amount equal to
the Intrinsic Value of such Award (which may be equal to but not less than zero), which, if in excess of zero, shall be payable following
the effective date of such Change in Control. For the avoidance of doubt, in the event of a Change in Control, the Committee may, in its
sole discretion, terminate any Option or SAR for which the exercise or hurdle price is equal to or exceeds the per Share value of the
consideration to be paid in the Change in Control transaction, without payment of consideration therefor.

 

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13.            Deferred
Awards. The Committee is authorized, subject to limitations under applicable law, to grant to Participants Deferred Awards, which
may be a right to receive Shares or cash under the Plan (either independently or as an element of or supplement to any other Award under
the Plan), including, as may be required by any applicable law or regulations or determined by the Committee, in lieu of any annual bonus,
commission or retainer that may be payable to a Participant under any applicable, bonus, commission or retainer plan or arrangement. The
Committee shall determine the terms and conditions of such Deferred Awards, including, without limitation, the method of converting the
amount of annual bonus into a Deferred Award, if applicable, and the form, vesting, settlement, forfeiture and cancellation provisions
or any other criteria, if any, applicable to such Deferred Awards. Shares underlying a Share-denominated Deferred Award, which is subject
to a vesting schedule or other conditions or criteria, including forfeiture or cancellation provisions, set by the Committee shall not
be issued until or following the date that those conditions and criteria have been satisfied. Deferred Awards shall be subject to such
restrictions as the Committee may impose (including any limitation on the right to vote a Share underlying a Deferred Award or the right
to receive any dividend, dividend equivalent or other right), which restrictions may lapse separately or in combination at such time or
times, in such installments or otherwise, as the Committee may deem appropriate. The Committee may determine the form or forms (including
cash, Shares, other Awards, other property or any combination thereof) in which payment of the amount owing upon settlement of any Deferred
Award may be made.

 

14.            Amendments
and Termination.

 

(a)            Amendment
and Termination of the Plan. The Board may amend, alter, suspend, discontinue or terminate the Plan or any portion thereof at any
time; provided that no such amendment, alteration, suspension, discontinuance or termination shall be made without stockholder
approval if such approval is necessary to comply with any tax or regulatory requirement applicable to the Plan (including, without limitation,
as necessary to comply with any applicable rules or requirements of any securities exchange or inter-dealer quotation service on
which the Shares may be listed or quoted, for changes in GAAP to new accounting standards); provided, further, that any
such amendment, alteration, suspension, discontinuance or termination that would materially and adversely affect the rights of any Participant
or any holder or beneficiary of any Award theretofore granted shall not to that extent be effective without the consent of the affected
Participant, holder or beneficiary, unless the Committee determines that such amendment, alteration, suspension, discontinuance or termination
is either required or advisable in order for the Company, the Plan or the Award to satisfy any applicable law or regulation.

 

(b)            Amendment
of Award Agreements. The Committee may, to the extent not inconsistent with the terms of any applicable Award Agreement or the Plan,
waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate, any Award theretofore granted
or the associated Award Agreement, prospectively or retroactively (including after the Participant’s termination of employment or
service with the Company); provided that any such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination
that would materially and adversely affect the rights of any Participant with respect to any Award theretofore granted shall not to that
extent be effective without the consent of the affected Participant unless the Committee determines that such waiver, amendment, alteration,
suspension, discontinuance, cancellation or termination is either required or advisable in order for the Company, the Plan or the Award
to satisfy any applicable law or regulation; provided, further, that except as otherwise permitted under Section 11,
if (i) the Committee reduces the exercise price of any Option or of any SAR, (ii) the Committee cancels any outstanding Option
or SAR and replaces it with a new Option or SAR (with a lower exercise price, as the case may be) or other Award or cash in a manner that
would either (A) be reportable on the Company’s proxy statement or Form 10-K (if applicable) as Options that have been
 “repriced” (as such term is used in Item 402 of Regulation S-K promulgated under the Exchange Act) or (B) result in any
 “repricing” for financial statement reporting purposes (or otherwise cause the Award to fail to qualify for equity accounting
treatment), (iii) take any other action that is considered a “repricing” for purposes of the stockholder approval rules of
the applicable securities exchange or inter-dealer quotation service on which the Share is listed or quoted and/or (iv) cancel any
outstanding Option or SAR that has a per Share exercise price (as applicable) at or above the Fair Market Value of a Share on the date
of cancellation, and pay any consideration to the holder thereof, whether in cash, securities or other property, or any combination thereof,
then, in the case of the immediately preceding clauses (i) through (iv), any such action shall not be effective without stockholder
approval.

 

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15.            General.

 

(a)            Award
Agreements; Other Agreements. Each Award (other than an Other Cash-Based Award) under the Plan shall be evidenced by an Award Agreement,
which shall be delivered (whether in written or electronic form) to the Participant and shall specify the terms and conditions of the
Award and any rules applicable thereto. In the event of any conflict between the terms of the Plan and any Award Agreement or employment,
change-in-control, severance or other agreement in effect with the Participant, the terms of the Plan shall control.

 

(b)            Nontransferability.

 

(i)            Each
Award shall be exercisable only by the Participant during the Participant’s lifetime or, if permissible under applicable
law or the Plan, by the Participant’s legal guardian or representative or beneficiary or Permitted Transferee. No Award may be assigned,
alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent
and distribution or as set forth below in clause (ii), and any such purported assignment, alienation, pledge, attachment, sale, transfer
or encumbrance shall be void and unenforceable against the Company or an Affiliate; provided that the designation of a beneficiary
shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.

 

(ii)            Notwithstanding
the foregoing, the Committee may permit Awards (other than Incentive Stock Options) to be transferred by the Participant, without consideration,
subject to such rules as the Committee may adopt, to (A) any person who is a “family member” of the Participant,
as such term is used in the instructions to Form S-8 under the Securities Act or any successor form of registration statements promulgated
by the Securities and Exchange Commission (collectively, the “Immediate Family Members”); (B) a trust solely for the
benefit of the Participant or the Participant’s Immediate Family Members; (C) a partnership or limited liability company whose
only partners or stockholders are the Participant and the Participant’s Immediate Family Members; or (D) any other transferee
as may be approved either (1) by the Board or the Committee, or (2) as provided in the applicable Award Agreement; (each transferee
described in clause (A), (B), (C) or (D) above is hereinafter referred to as a “Permitted Transferee”);
provided, that the Participant gives the Committee or its delegate advance written notice describing the terms and conditions of the proposed
transfer and the Committee or its delegate notifies the Participant in writing that such a transfer would comply with the requirements
of the Plan.

 

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(iii)            The
terms of any Award transferred in accordance with the immediately preceding subsection shall apply to the Permitted Transferee, and any
reference in the Plan, or in any applicable Award Agreement, to the Participant shall be deemed to refer to the Permitted Transferee,
except that, unless otherwise provided by the Committee, (A) Permitted Transferees shall not be entitled to transfer any Award, other
than by will or the laws of descent and distribution; (B) Permitted Transferees shall not be entitled to exercise any transferred
Option unless there shall be in effect a registration statement on an appropriate form covering the Shares to be acquired pursuant to
the exercise of such Option if the Committee determines, consistent with any applicable Award Agreement, that such a registration statement
is necessary or appropriate; (C) the Committee or the Company shall not be required to provide any notice to a Permitted Transferee,
whether or not such notice is or would otherwise have been required to be given to the Participant under the Plan or otherwise; (D) the
consequences of the termination of the Participant’s employment by, or services to, the Company or an Affiliate under the terms
of the Plan and the applicable Award Agreement shall continue to be applied with respect to the transferred Award, including, without
limitation, that an Option shall be exercisable by the Permitted Transferee only to the extent, and for the periods, specified in the
Plan and the applicable Award Agreement; and (E) any non-competition, non-solicitation, non-disparagement, non-disclosure, or other
restrictive covenants contained in any Award Agreement or other agreement between the Participant and the Company or any Affiliate shall
continue to apply to the Participant.

 

(c)            Dividends
and Dividend Equivalents. The Committee may specify in the applicable Award Agreement that any or all dividends, dividend equivalents
or other distributions, as applicable, with respect to Restricted Stock or Restricted Stock Units prior to vesting or settlement, as applicable,
be paid either in cash or in additional Shares and either on a current or deferred basis and that such dividends, dividend equivalents
or other distributions may be reinvested in additional Shares, which may be subject to the same restrictions as the underlying Awards.

 

(d)            No
Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or an Award, and the Committee shall determine
whether cash or other securities shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or any
rights thereto shall be cancelled, terminated or otherwise eliminated.

 

(e)            Tax
Withholding.

 

(i)            The
Participant shall be required to pay to the Company or any Affiliate, and the Company or any Affiliate shall have the right (but not the
obligation) and is hereby authorized to withhold, from any cash, Shares, other securities or other property deliverable under any Award
or from any compensation or other amounts owing to the Participant, the amount (in cash, Shares, other securities or other property) of
any required withholding taxes in respect of an Award, its exercise, or any payment or transfer under an Award or under the Plan and to
take such other action that the Committee or the Company deems necessary to satisfy all obligations for the payment of such withholding
taxes.

 

(ii)            Without
limiting the generality of paragraph (i) above, the Committee may permit the Participant to satisfy, in whole or in part, the foregoing
withholding liability by (A) payment in cash; (B) the delivery of Shares (which Shares are not subject to any pledge or other
security interest) owned by the Participant having a Fair Market Value on such date equal to such withholding liability, provided that
such Shares have been held for more than six months unless otherwise permitted by the Committee in consideration of accounting standards;
or (C) having the Company withhold from the number of Shares otherwise issuable or deliverable pursuant to the exercise or settlement
of the Award a number of Shares with a Fair Market Value on such date equal to such withholding liability, which shall be determined at
the minimum statutory rate in a Participant’s applicable jurisdiction, unless otherwise authorized by the Committee up to the maximum
statutory rate in a Participant’s applicable jurisdiction. In addition, subject to any requirements of applicable law, the Participant
may also satisfy the tax withholding obligations by other methods, including selling Shares that would otherwise be available for delivery;
provided that the Board or the Committee has specifically approved such payment method in advance.

 

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(f)            No
Claim to Awards; No Rights to Continued Employment, Directorship or Engagement. No employee, Director of the Company, consultant providing
service to the Company or an Affiliate, or other person shall have any claim or right to be granted an Award under the Plan or, having
been selected for the grant of an Award, to be selected for a grant of any other Award. There is no obligation for uniformity of treatment
of Participants or holders or beneficiaries of Awards. The terms and conditions of Awards and the Committee’s determinations and
interpretations with respect thereto need not be the same with respect to each Participant and may be made selectively among Participants,
whether or not such Participants are similarly situated. Neither the Plan nor any action taken hereunder shall be construed as giving
any Participant any right to be retained in the employ or service of the Company or an Affiliate, or to continue in the employ or the
service of the Company or an Affiliate, nor shall it be construed as giving any Participant who is a Director any rights to continued
service on the Board.

 

(g)            International
Participants. With respect to Participants who reside or work outside of the United States or are subject to non-U.S. legal restrictions
or regulations, the Committee may amend the terms of the Plan or appendices thereto, or outstanding Awards, with respect to such Participants,
in order to conform such terms with or accommodate the requirements of local laws, procedures or practices or to obtain more favorable
tax or other treatment for the Participant, the Company or its Affiliates. Without limiting the generality of this subsection, the Committee
is specifically authorized to adopt rules, procedures and sub-plans with provisions that limit or modify rights on death, disability,
retirement or other terminations of employment, available methods of exercise or settlement of an Award, payment of income, social insurance
contributions or payroll taxes, withholding procedures and handling of any stock certificates or other indicia of ownership that vary
with local requirements. The Committee may also adopt rules, procedures or sub-plans applicable to particular Affiliates or locations.

 

(h)            Beneficiary
Designation. The Participant’s beneficiary shall be the Participant’s spouse (or domestic partner if such status is recognized
by the Company and in such jurisdiction) or, if the Participant is otherwise unmarried at the time of death, the Participant’s estate,
except to the extent that a different beneficiary is designated in accordance with procedures that may be established by the Committee
from time to time for such purpose. Notwithstanding the foregoing, in the absence of a beneficiary validly designated under such Committee-established
procedures and/or applicable law who is living (or in existence) at the time of death of a Participant residing or working outside the
United States, any required distribution under the Plan shall be made to the executor or administrator of the estate of the Participant,
or to such other individual as may be prescribed by applicable law.

 

(i)            Termination
of Employment or Service. The Committee, in its sole discretion, shall determine the effect of all matters and questions related to
the termination of employment of or service of a Participant. Unless determined otherwise by the Committee or as otherwise provided in
an Award Agreement: (i) neither a temporary absence from employment or service due to illness, vacation or leave of absence (including,
without limitation, a call to active duty for military service through a Reserve or National Guard unit) nor a transfer from employment
or service with the Company to employment or service with an Affiliate (or vice versa) shall be considered a termination of employment
or service with the Company or an Affiliate; and (ii) if the Participant’s employment with the Company or its Affiliates terminates,
but such Participant continues to provide services with such Company or such Affiliate in a non-employee capacity (including as a non-employee
Director) (or vice versa), such change in status shall not be considered a termination of employment or service with the Company or an
Affiliate for purposes of the Plan.

 

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(j)            No
Rights as a Stockholder. Except as otherwise specifically provided in the Plan or any Award Agreement, no person shall be entitled
to the privileges of ownership in respect of Shares that are subject to Awards hereunder until such Shares have been issued or delivered
to that person.

 

(k)            Government
and Other Regulations.

 

(i)            Nothing
in the Plan shall be deemed to authorize the Committee or Board or any members thereof to take any action contrary to applicable law or
regulation, or rules of the NYSE or any other securities exchange or inter-dealer quotation service on which the Shares are listed
or quoted.

 

(ii)            The
obligation of the Company to settle Awards in Shares or other consideration shall be subject to all applicable laws, rules and regulations,
and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the contrary,
the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from offering to sell or selling, any Shares
pursuant to an Award unless such Shares have been properly registered for sale pursuant to the Securities Act with the Securities and
Exchange Commission or unless the Company has received an opinion of counsel, satisfactory to the Company, that such Shares may be offered
or sold without such registration pursuant to and in compliance with the terms of an available exemption. The Company shall be under no
obligation to register for sale under the Securities Act any of the Shares to be offered or sold under the Plan. The Committee shall have
the authority to provide that all Shares or other securities of the Company or any Affiliate delivered under the Plan shall be subject
to such stop-transfer orders and other restrictions as the Committee may deem advisable under the Plan, the applicable Award Agreement,
U.S. federal securities laws, or the rules, regulations and other requirements of the U.S. Securities and Exchange Commission, any securities
exchange or inter-dealer quotation service upon which such Shares or other securities of the Company are then listed or quoted and any
other applicable federal, state, local or non-U.S. laws, rules, regulations and other requirements, and, without limiting the generality
of Section 9, the Committee may cause a legend or legends to be put on any such certificates of Shares or other securities of the
Company or any Affiliate delivered under the Plan to make appropriate reference to such restrictions or may cause such Shares or other
securities of the Company or any Affiliate delivered under the Plan in book-entry form to be held subject to the Company’s instructions
or subject to appropriate stop-transfer orders. Notwithstanding any provision in the Plan to the contrary, the Committee reserves the
right to add any additional terms or provisions to any Award granted under the Plan that it in its sole discretion deems necessary or
advisable in order that such Award complies with the legal requirements of any governmental entity to whose jurisdiction the Award is
subject.

 

(l)            Payments
to Persons Other Than Participants. If the Committee shall find that any person to whom any amount is payable under the Plan is unable
to care for such person’s affairs because of illness or accident, or is a minor, or has died, then any payment due to such person
or such person’s estate (unless a prior claim therefor has been made by a duly appointed legal representative or a beneficiary designation
form has been filed with the Company) may, if the Committee so directs the Company, be paid to such person’s spouse, child or relative,
or an institution maintaining or having custody of such person, or any other person deemed by the Committee to be a proper recipient on
behalf of such person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the Committee
and the Company therefor.

 

(m)            Nonexclusivity
of the Plan. Neither the adoption of the Plan by the Board nor the submission of the Plan to the stockholders of the Company for approval
shall be construed as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable,
including, without limitation, the granting of stock options or awards otherwise than under the Plan, and such arrangements may be either
applicable generally or only in specific cases.

 

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(n)            No
Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind
or a fiduciary relationship between the Company or any Affiliate, on the one hand, and the Participant or other person or entity, on the
other hand. No provision of the Plan or any Award shall require the Company, for the purpose of satisfying any obligations under the Plan,
to purchase assets or place any assets in a trust or other entity to which contributions are made or to otherwise segregate any assets,
nor shall the Company maintain separate bank accounts, books, records or other evidence of the existence of a segregated or separately
maintained or administered fund for such purposes. Participants shall have no rights under the Plan other than as unsecured general creditors
of the Company.

 

(o)            Reliance
on Reports. Each member of the Committee and each member of the Board (and each such member’s respective designees) shall be
fully justified in acting or failing to act, as the case may be, and shall not be liable for having so acted or failed to act in good
faith, in reliance upon any report made by the independent, registered public accounting firm of the Company and its Affiliates and/or
any other information furnished in connection with the Plan by any agent of the Company or the Committee or the Board, other than such
member or designee.

 

(p)            Relationship
to Other Benefits. No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement,
profit sharing, group insurance or other benefit plan of the Company except as otherwise specifically provided in such other plan.

 

(q)            Governing
Law. The Plan shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to principles
of conflicts of laws thereof, or principles of conflicts of laws of any other jurisdiction that could cause the application of the laws
of any jurisdiction other than the State of Delaware.

 

(r)            Severability.
If any provision of the Plan or any Award or Award Agreement is or becomes or is deemed to be invalid, illegal or unenforceable in any
jurisdiction or as to any person or entity or Award, or would disqualify the Plan or any Award under any law deemed applicable by the
Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or, if it cannot be construed or deemed
amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall
be construed or deemed stricken as to such jurisdiction, person or entity or Award, and the remainder of the Plan and any such Award shall
remain in full force and effect.

 

(s)            Obligations
Binding on Successors. The obligations of the Company under the Plan shall be binding upon any successor corporation or organization
resulting from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding
to all or substantially all of the assets and business of the Company.

 

(t)            Section 409A
of the Code.

 

(i)            It
is intended that the Plan comply with Section 409A of the Code, and all provisions of the Plan shall be construed and interpreted
in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A of the Code. Each Participant is
solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or in respect of such Participant
in connection with the Plan or any other plan maintained by the Company, including any taxes and penalties under Section 409A of
the Code, and neither the Company nor any Affiliate shall have any obligation to indemnify or otherwise hold such Participant or any beneficiary
harmless from any or all of such taxes or penalties. With respect to any Award that is considered “deferred compensation”
subject to Section 409A of the Code, references in the Plan to “termination of employment” (and substantially similar
phrases) shall mean “separation from service” within the meaning of Section 409A of the Code. For purposes of Section 409A
of the Code, each of the payments that may be made in respect of any Award granted under the Plan is designated as a separate payment.

 

    18

     

    

 

(ii)            Notwithstanding
anything in the Plan to the contrary, if the Participant is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of
the Code, no payments or deliveries in respect of any Awards that are “deferred compensation” subject to Section 409A
of the Code shall be made to such Participant prior to the date that is six months after the date of such Participant’s “separation
from service” within the meaning of Section 409A of the Code or, if earlier, the Participant’s date of death. All such
delayed payments or deliveries will be paid or delivered (without interest) in a single lump sum on the earliest date permitted under
Section 409A of the Code that is also a business day.

 

(iii)            In
the event that the timing of payments in respect of any Award that would otherwise be considered “deferred compensation” subject
to Section 409A of the Code would be accelerated upon the occurrence of (A) a Change in Control, no such acceleration shall
be permitted unless the event giving rise to the Change in Control satisfies the definition of a change in the ownership or effective
control of a corporation, or a change in the ownership of a substantial portion of the assets of a corporation pursuant to Section 409A
of the Code and any Treasury Regulations promulgated thereunder, or (B) a Disability, no such acceleration shall be permitted unless
the Disability also satisfies the definition of “disability” pursuant to Section 409A of the Code and any Treasury Regulations
promulgated thereunder.

 

(u)            Clawback/Forfeiture.
The Committee shall have full authority to implement any policies and procedures necessary to comply with Section 10D of the Exchange
Act and any rules promulgated thereunder and any other regulatory regimes. Notwithstanding anything to the contrary contained herein,
the Committee may, to the extent permitted by applicable law and stock exchange rules or by any applicable Company policy or arrangement,
and shall, to the extent required, cancel or require reimbursement of any Awards granted to the Participant or any Shares issued or cash
received upon vesting, exercise or settlement of any such Awards or sale of Shares underlying such Awards. By accepting an Award, the
Participant agrees that the Participant is subject to any clawback policies of the Company in effect from time to time.

 

(v)            No
Representations or Covenants with Respect to Tax Qualification. Although the Company may endeavor to (i) qualify an Award for
favorable U.S. or non-U.S. tax treatment or (ii) avoid adverse tax treatment, the Company makes no representation to that effect
and expressly disavows any covenant to maintain favorable or avoid unfavorable tax treatment. The Company shall be unconstrained in its
corporate activities without regard to the potential negative tax impact on holders of Awards under the Plan.

 

(w)            No
Interference. The existence of the Plan, any Award Agreement and the Awards granted hereunder shall not affect or restrict in any
way the right or power of the Company, the Board, the Committee or the stockholders of the Company to make or authorize any adjustment,
recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation
of the Company, any issue of stock or of options, warrants, or rights to purchase stock or of bonds, debentures, or preferred or prior
preference stocks whose rights are superior to or affect the Shares or the rights thereof or that are convertible into or exchangeable
for Shares, or the dissolution or liquidation of the Company or any Affiliate, or any sale or transfer of all or any part of their assets
or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

 

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(x)            Expenses;
Titles and Headings. The expenses of administering the Plan shall be borne by the Company and its Affiliates. The titles and headings
of the sections in the Plan are for convenience of reference only, and, in the event of any conflict, the text of the Plan, rather than
such titles or headings, shall control.

 

(y)            Whistleblower
Acknowledgments. Notwithstanding anything to the contrary herein, nothing in this Plan or any Award Agreement will (i) prohibit
a Participant from making reports of possible violations of federal law or regulation to any governmental agency or entity in accordance
with the provisions of and rules promulgated under Section 21F of the Exchange Act or Section 806 of the Sarbanes-Oxley
Act of 2002, or of any other whistleblower protection provisions of federal law or regulation, or (ii) require prior approval by
the Company or any of its Affiliates of any reporting described in clause (i).

 

(z)            Lock-Up
Agreements. The Committee may require a Participant receiving Shares pursuant to the Plan, as a condition precedent to receipt of
such Shares, to enter into a shareholder agreement or “lock-up” agreement in such form as the Committee shall determine is
necessary or desirable to further the Company’s interests.

 

(aa)          Restrictive
Covenants. The Committee may impose restrictions on any Award with respect to non-competition, non-solicitation, confidentiality and
other restrictive covenants as it deems necessary or appropriate in its sole discretion.

 

    20

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