Document:

Exhibit

EXHIBIT 4(c)

	
	
	 

SOUTHWESTERN ELECTRIC POWER COMPANY

and

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.
AS TRUSTEE

___________________

____________ SUPPLEMENTAL INDENTURE

Dated as of ________, _______

Supplemental to the Indenture
dated as of February 25, 2000

___% Senior Notes, Series _, due 20__

	
	
	 

___________ SUPPLEMENTAL INDENTURE, dated as of _________, _______, between SOUTHWESTERN ELECTRIC POWER COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (the "Company"), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as successor to THE BANK OF NEW YORK, a New York banking corporation organized and existing under the laws of the State of New York, as Trustee under the Original Indenture referred to below (the "Trustee"). 

RECITALS OF THE COMPANY

The Company has heretofore executed and delivered to the Trustee an indenture dated as of February 25, 2000 (the "Original Indenture"), to provide for the issuance from time to time of its debentures, notes or other evidences of indebtedness (the "Senior Notes"), the form and terms of which are to be established as set forth in Section 201 and 301 of the Original Indenture.

Section 901 of the Original Indenture provides, among other things, that the Company and the Trustee may enter into indentures supplemental to the Original Indenture for, among other things, the purpose of establishing the form and terms of the Senior Notes of any series as permitted in Sections 201 and 301 of the Original Indenture.

The Company desires to create a series of the Senior Notes in an aggregate principal amount of $_______ to be designated the "___% Senior Notes, Series _, due 20__" (the "Series __ Notes"), and all action on the part of the Company necessary to authorize the issuance of the Series __ Notes under the Original Indenture and this _________ Supplemental Indenture has been duly taken.

All acts and things necessary to make the Series ___ Notes, when executed by the Company and completed, authenticated and delivered by the Trustee as provided in the Original Indenture and this _________ Supplemental Indenture, the valid and binding obligations of the Company and to constitute these presents a valid and binding supplemental indenture and agreement according to its terms, have been done and performed.

NOW, THEREFORE, THIS __________ SUPPLEMENTAL INDENTURE WITNESSETH:

That in consideration of the premises and of the acceptance and purchase of the Series __ Notes by the Holders thereof and of the acceptance of this trust by the Trustee, the Company covenants and agrees with the Trustee, for the equal benefit of the Holders of the Series __ Notes, as follows:

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ARTICLE ONE
Definitions

SECTION 101.    Definitions.

The use of the terms and expressions herein is in accordance with the definitions, uses and constructions contained in the Original Indenture and the form of the Series ___ Note attached hereto as Exhibit A.

ARTICLE TWO
Terms and Issuance of the Series __ Notes

SECTION 201.    Issue of Series ___ Notes.

A series of Senior Notes which shall be designated the "____%  Senior Notes, Series __, due 20__" shall be executed, authenticated and delivered from time to time in accordance with the provisions of, and shall in all respects be subject to, the terms, conditions and covenants of, the Original Indenture and this _______ Supplemental Indenture (including the form of Series __ Note set forth in Exhibit A hereto).  The aggregate principal amount of the Series __ Notes which may be authenticated and delivered under this _________ Supplemental Indenture shall initially be $______, and such principal amount of the Series __ Notes may be increased from time to time.  All Series __ Notes need not be issued at the same time and such series may be reopened at any time, without the consent of any Holder, for the issuance of additional Series ___ Notes.  Any such additional Series __ Notes will have the same interest rate, maturity and other terms as those initially issued.

SECTION 202.    Form of Series __ Notes; Incorporation of Terms.

The Series __ Notes shall be issued initially in the form of one Global Security.  The form of the Series __ Notes shall be substantially in the form of the Global Security attached hereto as Exhibit A.  The terms of such Series __ Notes are herein incorporated by reference and are part of this ________ Supplemental Indenture.

SECTION 203.    Depositary for Global Securities.

The Depositary for any Global Securities of the series of which this Series __ Note is a part shall be The Depository Trust Company in The City of New York.

SECTION 204.    Restrictions on Liens.

The covenant contained in Section 1007 of the Original Indenture shall not be applicable to the Series __ Notes.

So long as any of the Series __ Notes are outstanding, the Company will not create or suffer to be created or to exist any additional mortgage, pledge, security interest, or other lien (collectively "Liens") on any of its utility properties or tangible assets now owned or hereafter 

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acquired to secure any indebtedness for borrowed money ("Secured Debt"), without providing that the Series __ Notes will be similarly secured.  This restriction does not apply to the Company's subsidiaries, nor will it prevent any of them from creating or permitting to exist Liens on their property or assets to secure any Secured Debt.  In addition, this restriction does not prevent the creation or existence of:
	
			
	 
	(a)
	Liens on property existing at the time of acquisition or construction of such property (or created within one year after completion of such acquisition or construction), whether by purchase, merger, construction or otherwise, or to secure the payment of all or any part of the purchase price or construction cost thereof, including the extension of any Liens to repairs, renewals, replacements, substitutions, betterments, additions, extensions and improvements then or thereafter made on the property subject thereto;

	 
	 
	 

	 
	(b)
	Financing of the Company's accounts receivable for electric service;

	 
	 
	 

	 
	(c)
	Any extensions, renewals or replacements (or successive extensions, renewals or replacements), in whole or in part, of liens permitted by the foregoing clauses; and

	 
	 
	 

	 
	(d)
	The pledge of any bonds or other securities at any time issued under any of the Secured Debt permitted by the above clauses.

In addition to the permitted issuances above, Secured Debt not otherwise so permitted may be issued in an amount that does not exceed 15% of Net Tangible Assets as defined below.  

“Net Tangible Assets” means the total of all assets (including revaluations thereof as a result of commercial appraisals, price level restatement or otherwise) appearing on the Company’s balance sheet, net of applicable reserves and deductions, but excluding goodwill, trade names, trademarks, patents, unamortized debt discount and all other like intangible assets (which term shall not be construed to include such revaluations), less the aggregate of the Company’s current liabilities appearing on such balance sheet.  For purposes of this definition, the Company’s balance sheet does not include assets and liabilities of its subsidiaries.

This restriction also does not apply to or prevent the creation or existence of leases made, or existing on property acquired, in the ordinary course of business.

SECTION 205.    Place of Payment.

The Place of Payment in respect of the Series __ Notes will be at the principal office or place of business of the Trustee or its successor in trust under the Indenture, which, at the date hereof, is located at 101 Barclay Street, New York, NY 10286, Attention: Corporate Trust Administration.

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SECTION 206.  Optional Redemption.

The Series __ Notes may be redeemed at the Company’s option at any time upon no more than 60 and not less than 30 days’ notice by mail.  The Series __ Notes may be redeemed either as a whole or in part at a redemption price equal to the greater of (1) 100% of the principal amount of the Series __ Notes being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Series __ Notes being redeemed (excluding the portion of any such interest accrued to the date of redemption) discounted (for purposes of determining present value) to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 50 basis points; plus, in each case, accrued interest thereon to the date of redemption.

"Business Day" means any day that is not a day on which banking institutions in New York City are authorized or required by law or regulation to close.

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term (“remaining life”) of the Series __ Notes that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining life of the Series __ Notes.

“Comparable Treasury Price” means, with respect to any redemption date, (1) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (2) if the Company obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations..

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company and reasonably acceptable to the Trustee.

“Reference Treasury Dealer” means BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, and J. P. Morgan Securities Inc. and their respective successors; provided, however, that if any of the foregoing shall cease to be a Reference Treasury Dealer the Company will substitute therefor a primary U.S. government securities dealer reasonably acceptable to the Trustee.

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at or before 3:30 p.m., New York City time, on the third Business Day preceding such redemption date.

“Treasury Rate” means (i) the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption “Treasury Constant 

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Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the remaining life (as defined above), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month); or (ii) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.

SECTION 207.  Sinking Funds.

Article Twelve of the Indenture shall not apply to the Series __ Notes.

SECTION 208.  Regular Record Date.

The "Regular Record Date" will be the January 1 or July 1, as the case may be, next preceding an interest payment date (whether or not a business day).

ARTICLE THREE
Miscellaneous

SECTION 301.    Execution as Supplemental Indenture.

This ______ Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture and, as provided in the Original Indenture, this __________ Supplemental Indenture forms a part thereof.

SECTION 302.    Conflict with Trust Indenture Act.

If any provision hereof limits, qualifies or conflicts with another provision hereof which is required to be included in this ________ Supplemental Indenture by any of the provisions of the Trust Indenture Act, such required provision shall control. 

SECTION 303.    Effect of Headings.

The Article and Section headings herein are for convenience only and shall not affect the construction hereof.

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SECTION 304.    Successors and Assigns.

All covenants and agreements by the Company in this ________ Supplemental Indenture shall bind its successors and assigns, whether so expressed or not.

SECTION 305.    Separability Clause.

In case any provision in this _________ Supplemental Indenture or in the Series __ Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

SECTION 306.    Benefits of Supplemental Indenture.

Nothing in this _______ Supplemental Indenture or in the Series __ Notes, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder and the Holders, any benefit or any legal or equitable right, remedy or claim under this ________ Supplemental Indenture.

SECTION 307.    Execution and Counterparts.

This _________ Supplemental Indenture may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

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IN WITNESS WHEREOF, the parties hereto have caused this _________ Supplemental Indenture to be duly executed and attested, all as of the day and year first above written. 

SOUTHWESTERN ELECTRIC POWER COMPANY

By _____________________            
Name:    
Title:    Assistant Treasurer

Attest:

_______________________                
Name:    
Title:    Assistant Secretary 

THE BANK OF NEW YORK TRUST 
COMPANY, N.A., as Trustee 

By_____________________                
Authorized Signatory    

Attest:

____________________________
Authorized Signatory    

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EXHIBIT A

This Security is a Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of a Depositary or a nominee of a Depositary.  This Security is exchangeable for Securities registered in the name of a Person other than the Depositary or its nominee only in the limited circumstances described in the Indenture, and no transfer of this Security (other than a transfer of this Security as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the depositary or another nominee of the Depositary) may be registered except in limited circumstances.

Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to Southwestern Electric Power Company or its agent for registration of transfer, exchange or payment, and any definitive certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL in as much as the registered owner hereof, Cede & Co., has an interest herein.

No. R-1

SOUTHWESTERN ELECTRIC POWER COMPANY
______% Senior Notes, Series __, due 20___
	
					
	CUSIP No. ______
	 
	 
	 
	$___,000,000

           

SOUTHWESTERN ELECTRIC POWER COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (the “Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO. or registered assigns, the principal sum of _____________ on _______, 20__ (the “Final Maturity”), and to pay interest thereon from _______, 20__ or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on January 15 and July 15 each year, commencing _________, 20__, at the interest rate per annum specified above, until the principal amount shall have been paid or duly provided for.  Interest shall be computed on the basis of a 360-day year of twelve 30-day months.

The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the January 1 or July 1 (whether or not a Business Day) immediately preceding the Interest Payment Date.  Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such 

A-1

Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.

Payment of the principal of (and premium, if any) and interest on this Security will be made at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, The City of New York, New York, in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts; provided, however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register.

This Security has initially been issued in the form of a Global Security, and the Company has initially designated The Depository Trust Company (the “Depositary”, which term shall include any successor depositary) as the depositary for this Security.  For as long as this Security or any portion hereof is issued in such form, and notwithstanding the previous paragraph, all payments of interest, principal and other amounts in respect of this Security or portion thereof shall be made to the Depositary or its nominee in accordance with the Applicable Procedures in the coin or currency specified above and as further provided herein.

This Security is one of a duly authorized issue of securities of the Company (the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of February 25, 2000, as amended and supplemented from time to time (the “Indenture”, which term shall have the meaning assigned to it in such instrument), between the Company and The Bank of New York and its successor, a New York banking corporation, as Trustee (the “Trustee”, which term includes any successor trustee under the Indenture), as to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders and of the terms upon which the Securities are, and are to be, authenticated and delivered.  This Security is one of the series designated on the face hereof, limited in aggregate principal amount to $___,000,000; provided, however, the aggregate principal amount hereof can be increased, without the consent of the Holder, as permitted by the provisions of the Original Indenture.  The provisions of this Security, together with the provisions of the Indenture, shall govern the rights, obligations, duties and immunities of the Holder, the Company and the Trustee with respect to this Security, provided that, if any provision of this Security necessarily conflicts with any provision of the Indenture, the provision of this Security shall be controlling to the fullest extent permitted under the Indenture.

The Securities of this Series are subject to redemption upon not less than 30 nor more than 60 days’ notice by mail to the Holders of such Securities at their addresses in the Security Register for such Series at the option of the Company, in whole or in part, from time to time at a Redemption Price equal to the greater of (i) 100% of the principal amount of the Securities being 

A-2

redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Securities being redeemed (excluding the portion of any such interest accrued to the date of redemption) discounted (for purposes of determining present value) to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 50 basis points, plus, in each case, accrued interest thereon to the date of redemption.
“Treasury Rate” means:

		
	•
	the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the remaining life (as defined above), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month); or

		
	•
	if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term (“remaining life”) of the Security that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining life of the Security.

“Comparable Treasury Price” means, with respect to any redemption date, (1) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (2) if the Company obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company and reasonably acceptable to the Trustee.

A-3

“Reference Treasury Dealer” means BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, and J. P. Morgan Securities Inc. and their respective successors; provided, however, that if any of the foregoing shall cease to be a Reference Treasury Dealer the Company will substitute therefor a primary U.S. government securities dealer reasonably acceptable to the Trustee.

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at or before 3:30 p.m., New York City time, on the third Business Day preceding such redemption date.

If notice has been given as provided in the Indenture and funds for redemption of any Securities (or any portion thereof) called for redemption shall have been made available on the Redemption Date referred to in such notice, such Securities (or any portion thereof) will cease to bear interest on the date fixed for such redemption specified in such notice and the only right of the Holders of such Securities will be to receive payment of the Redemption Price.

In the event of redemption of this Security in part only, a new Security or Securities of this Series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof.

The Securities of this series will not be subject to any sinking fund.

If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture.

Interest payments with respect to this Security will be computed and paid on the basis of a 360-day year of twelve 30-day months for the actual number of days elapsed.

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of all series to be affected (voting as a class).  The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each Series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

A-4

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed.

This Security shall be exchangeable for Securities registered in the names of Persons other than the Depositary with respect to such series or its nominee only as provided in the Indenture.  This Security shall be so exchangeable if (x) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for such series or at any time ceases to be a clearing agency registered as such under the Exchange Act, (y) the Company executes and delivers to the Trustee an Officers’ Certificate providing that this Security shall be so exchangeable or (z) there shall have occurred and be continuing an Event of Default with respect to the Securities of such series.  Securities so issued in exchange for this Security shall be of the same series, having the same interest rate, if any, and maturity and having the same terms as this Security, in authorized denominations and in the aggregate having the same principal amount as this Security and registered in such names as the Depositary for such Global Security shall direct.

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of a Security of the series of which this Security is a part is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this Series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

The Securities of this Series are issuable only in registered form without coupons in denominations of $2,000 and any integral multiple of $1,000.  As provided in the Indenture and subject to certain limitations therein set forth, Securities of this Series are exchangeable for a like aggregate principal amount of Securities of this Series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same.

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

For so long as this Security is issued in the form of a Global Security, any notice to be given to the Holder of this Security shall be deemed to have been duly given to such Holder when given to the Depositary, or its nominee, in accordance with its Applicable Procedures.  

A-5

Neither the Company nor the Trustee will have any responsibility with respect to those policies and procedures or for any notices or other communications among the Depositary, its direct and indirect participants and the beneficial owners of this Security in global form.

If at any time this Security is not represented by a Global Security, any notice to be given to the Holder of this Security shall be deemed to have been duly given to such Holder upon the mailing of such notice to the Holder at such Holder’s address as it appears on the Security Register maintained by the Company or its agent as of the close of business preceding the day such notice is given.

Neither the failure to give any notice nor any defect in any notice given to the Holder of this Security or any other Security of this series will affect the sufficiency of any notice given to another Holder of any Securities of this series.

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

The Indenture provides that the Company, at its option, (a) will be discharged from any and all obligations in respect of the Securities (except for certain obligations to register the transfer or exchange of Securities, replace stolen, lost or mutilated Securities, maintain paying agencies and hold moneys for payment in trust) or (b) need not comply with certain restrictive covenants of the Indenture, in each case if the Company deposits, in trust, with the Trustee money or U.S. Government Obligations which, through the payment of interest thereon and principal thereof in accordance with their terms, will provide money, in an amount sufficient to pay all the principal of, and premium, if any, and interest, if any, on the Securities on the dates such payments are due in accordance with the terms of such Securities, and certain other conditions are satisfied.

No recourse shall be had for the payment of the principal of or the interest on this Security, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, organizer, member, limited partner, stockholder, officer or director, as such, past, present or future, of the Company or any successor Person, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released.

This Security shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflict of law except Section 5-1401 of the New York General Obligations Law.

All terms used in this Security which are defined in the Indenture shall have the meanings ascribed to them in the Indenture. 

A-6

Unless the certificate of authentication hereon has been executed by the Trustee referred to herein by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

IN WITNESS WHEREOF, Southwestern Electric Power Company has caused this instrument to be duly executed.
	
			
	 
	SOUTHWESTERN ELECTRIC POWER COMPANY

	 
	 
	 

	 
	 
	 

	 
	By:
	 

	 
	 
	Assistant Treasurer

This is one of the Securities of the series designated herein and referred to in the within-mentioned Indenture.

	
			
	Dated:  __________
	THE BANK OF NEW YORK MELLON

	 
	 
	 

	 
	 
	 

	 
	By:
	 

	 
	 
	Authorized Signatory

A-7

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

(PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE)

_______________________________________

________________________________________________________________

________________________________________________________________
(PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF
________________________________________________________________
ASSIGNEE) the within Note and all rights thereunder, hereby
________________________________________________________________
irrevocably constituting and appointing such person attorney to 
________________________________________________________________
transfer such Note on the books of the Issuer, with full
________________________________________________________________
power of substitution in the premises.

Dated:________________________        _________________________

NOTICE:    The signature to this assignment must correspond with the name as written upon the face of the within Note in every particular, without alteration or enlargement or any change whatever and NOTICE:  Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agents Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”) or the New York Stock Exchange, Inc. Medallion Signature Program (“MSP”).

A-8Exhibit 10.1

 

THIRD
AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

This
Third Amended and Restated Employment Agreement (this “Agreement”), effective as of April 11, 2020 (the
“Effective Date”), is between Corbus Pharmaceuticals Holdings, Inc. (the “Company”)
and Yuval Cohen (the “Executive”).

 

WITNESSETH:

 

WHEREAS,
the Executive has been employed by the Company as its Chief Executive Officer pursuant to the terms of a second amended and restated
employment agreement effective April 11, 2020 (the “Prior 2020 Employment Agreement”);

 

WHEREAS,
the Company desires to continue to employ the Executive as its Chief Executive Officer, and the Executive desires to accept such
continued employment, on the terms and conditions set forth in this Agreement; and

 

WHEREAS,
the Company and the Executive have mutually agreed that, as of the Effective Date, this Agreement shall amend, restate and replace
the Prior 2020 Employment Agreement.

 

NOW,
THEREFORE, in consideration of the promises and the mutual covenants and agreements contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound
hereby, agree as follows:

 

	1.	EMPLOYMENT.
    Subject to the terms and conditions set forth herein, the Company hereby employs the Executive, and the Executive hereby accepts
    such employment by the Company commencing on the Effective Date.
	 	 
	2.	SCOPE
    OF EMPLOYMENT. During the term of this Agreement, Executive shall hold the position of Chief Executive Officer and
    shall have those duties and responsibilities customarily associated with the title of Chief Executive Officer plus any additional
    duties as may reasonably be assigned to him from time to time by the Company. The Executive shall report directly to the Board
    of Directors. The Executive will devote his full time and best efforts to the business and affairs of the Company. The Executive
    shall be subject to and comply with the Company’s policies, procedures and approval practices as generally in effect
    at any time and from time to time.
	 	 
	3.	PREVIOUS
    OBLIGATIONS. The Executive represents that his employment by the Company and the performance of his duties on behalf
    of the Company does not, and shall not, breach any agreement that obligates the Executive to keep in confidence any trade
    secrets or confidential or proprietary information of any other party or to refrain from competing, directly or indirectly,
    with the business of any other party. The Executive shall not disclose to the Company any trade secrets or confidential or
    proprietary information of any other party.
	 	 
	4.	COMPENSATION.
    As full compensation for all services to be rendered by Executive during the term of this Agreement, the Company will compensate
    the Executive as follows.

 

	 	4.1	Base
    Salary. The Company shall pay the Executive a base salary (the “Base Salary”) at the annualized
    rate of $559,000, which shall be subject to customary withholdings and authorized deductions and shall be payable in equal
    installments in accordance with the Company’s customary payroll practices in place from time to time. The Executive’s
    Base Salary shall be subject to review on at least an annual basis. The foregoing annualized rate will be effective for fiscal
    year 2020 and may be reevaluated by the Company’s Board of Directors for fiscal year 2021.

 

    	 	 	 

     

    

 

	 	4.2	Annual
    Bonus.

 

	 	(a)	The
    Executive will be eligible to participate in an annual executive bonus plan pursuant to which he may earn a bonus (“Bonus”)
    equal to up to 60% of his Base Salary (such maximum bonus may be referred to as the “Target Bonus”).

 

	 	(b)	Prior
    to the commencement of each calendar year the Company’s Board of Directors (the “Board”) will
    establish and approve the Target Bonus for such calendar year. Achievement of the Target Bonus will be based on the Executive
    meeting individual objectives and the Company meeting Company-wide objectives (collectively, the “Performance
    Criteria”).

 

	 	(c)	The
    Board may, in its discretion, grant the Executive a Bonus in excess of the Target Bonus if the Performance Criteria are exceeded.

 

	 	(d)	Following
    the close of each calendar year but in no event later than January 30th, the Board will meet and determine the extent to which
    the Performance Criteria have been achieved for such year and the amount of the Bonus. Based on that determination, payment
    of the Bonus (if any) shall be made by March 15th.

 

	 	(e)	Notwithstanding
    the foregoing to the contrary (including all Performance Criteria being met), payment of the Bonus shall be at the discretion
    of the Board based on the financial condition of the Company.

 

	 	4.3	Stock
    Option Grants. During the Term (as defined below), subject to the terms of the Corbus Pharmaceuticals Holdings, Inc.
    2014 Equity Compensation Plan (the “2014 Plan”) or any successor equity compensation plan as may
    be in place from time to time and separate award agreements, the Executive shall be eligible to receive from time to time
    additional stock options or other awards in amounts, if any, to be approved by the Board or the Compensation Committee in
    its discretion.

 

	 	4.4	Benefits.
    During his employment and subject to any contribution therefore generally required of employees of the Company, the
    Executive shall be entitled to participate in any and all employee benefit plans from time to time in effect for executive
    employees of the Company generally. Such participation shall be subject to (i) the terms of the applicable plan documents,
    (ii) generally applicable policies of the Company and (iii) the discretion of the Board or any administrative or other committee
    provided for in or contemplated by such plan. The Company may alter, modify, add to or delete its employee benefit plans at
    any time as it, in its sole judgment, deems appropriate.

 

	 	4.5	Vacations,
    Sick Time, Holidays, and Other Leave. During the term of his employment, the Executive shall be entitled to paid time
    off, including vacation time, sick time, holidays, and other leave time, in accordance with the Company’s policies in
    force in its Employee Handbook as of the Effective Date of this Agreement or as such policies may be modified from time to
    time by the Company. 

 

	 	4.6	Changes
    to Compensation. After the Term (as defined below), the Company may, at its sole discretion, change the terms of the
    Executive’s compensation (other than the terms and conditions of outstanding options or other awards under the 2014
    Plan which shall continue to be governed by the applicable award agreements and the 2014 Plan). The Company shall give the
    Executive at least 14 days’ prior written notice of any such changes.

 

	5.	EXPENSES.
    The Executive shall be entitled to reimbursement by the Company for all necessary and reasonable travel, entertainment and
    other business expenses incurred by him in connection with his duties hereunder. The Company shall reimburse the Executive
    for all such expenses upon presentation of an itemized account and appropriate supporting documentation, all in accordance
    with the Company’s generally applicable policies as in effect from time to time.

 

    	 	-2-	 

     

    

 

	6.	CONFIDENTIALITY.

 

	 	6.1	Definition.
    During the term of his employment, the Executive will have access to the Company’s confidential business information
    (the “Confidential Information”). Confidential Information means all trade secrets, know-how, show-how,
    theories, technical, operating, financial and other business information relating to the Company, its affiliates and each
    of their respective businesses or potential businesses, whether or not reduced to writing or other medium, and whether or
    not marked or labeled confidential, proprietary or the like, specifically including, without limitation, the following: inventions
    (including, without limitation, Work Product (as defined below)), designs, data, computer code, works of authorship, formulas,
    compounds, indications, techniques, ideas, discoveries, products and services under development, investor, customer and vendor
    information of any kind, marketing and business plans, pricing and profit margins, memoranda, notes, records, files, reports
    and other documentation, processes, business methods, improvements, modifications and creations, methodology, concepts, research,
    specifications, data processes, operations procedures, computer systems and software; provided, however, that Confidential
    Information shall not include information that is or becomes generally available to the public, unless such information has
    become generally available as a result of the Executive’s direct or indirect act or omission or as a result of the disclosure
    by any other person in violation of any contractual, legal or fiduciary obligation.

 

	 	6.2	Use
    of Confidential Information. Subject to the other provisions of this Agreement, the Executive shall use Confidential
    Information only in the performance of the Executive’s duties for the Company. Subject to the other provisions of this
    Agreement, the Executive shall not use Confidential Information at any time (during or after the Executive’s employment)
    for the Executive’s personal benefit or in any manner adverse to the interests of the Company, its affiliates, or any
    of their respective investors and clients. 

 

	 	6.3	Protection
    and Non-Disclosure of Confidential Information. The Executive shall safeguard the Confidential Information by all
    reasonable steps and abide by all policies and procedures of the Company in effect from time to time regarding storage, copying,
    destroying, publication or posting, and handling of such Confidential Information, in whatever medium or format that Confidential
    Information takes. At all times during and after his employment by the Company, the Executive shall not disclose Confidential
    Information at any time except to persons or entities authorized by the Company to receive this information or as otherwise
    permitted by this Agreement. For the avoidance of doubt, the Executive is permitted, subject to the other provisions of this
    Agreement, to disclose Confidential Information to third parties with whom or which the Company has entered into confidentiality
    agreements. Notwithstanding the foregoing, nothing in this Agreement shall be construed to prevent disclosure of Confidential
    Information when required to do so by a court of law, a governmental agency, or an administrative or legislative body (each
    with jurisdiction to order the Executive to divulge, disclose or make accessible such information); provided that, the Executive
    shall give prompt written notice to the Company of such requirement and reasonably cooperate with any attempt by the Company
    and/or its affiliates to obtain a protective order or similar treatment. Notwithstanding the foregoing, nothing in this Agreement
    prohibits, limits, or otherwise interferes with the Executive’s protected rights under federal, state or local law to,
    without notice to the Company, (i) communicate or file a charge with a government regulator; (ii) participate in an investigation
    or proceeding conducted by a government regulator; or (iii) receive an award paid by a government regulator for providing
    information. 

 

	 	6.4	Return
of Confidential Information. Upon request of the Company, the Executive will promptly (i) deliver to the Company all documents
and other tangible media in the Executive’s possession or control that evidence, contain or reflect Confidential Information
(including all copies, reproductions, digests, abstracts, analyses, and notes) and (ii) destroy any intangible materials that
evidence, contain or reflect Confidential Information on equipment or media not owned by the Company.

 

    	 	-3-	 

     

    

 

	 	6.5	Other
        Agreements. The Executive shall execute and abide by all confidentiality agreements which the Company reasonably
        requests the Executive to sign or abide by, whether those agreements are for the benefit of the Company, an affiliate
        of the Company, or an actual or a potential client thereof.

         

	 	6.6	Defend
    Trade Secrets. The Executive acknowledges that the Executive shall not be held criminally or civilly liable under
    any federal or state trade secret law for the disclosure of a trade secret if (i) the Executive makes such disclosure in confidence
    to a federal, State, or local government official, either directly or indirectly, or to an attorney and such disclosure is
    made solely for the purpose of reporting or investigating a suspected violation of law, or (ii) the Executive makes such disclosure
    in a complaint or other document filed in a lawsuit or other proceeding if such filing is made under seal. Further, an individual
    who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the employer’s
    trade secrets to the attorney and use the trade secret information in the court proceeding if the individual: (i) files any
    document containing the trade secret under seal; and (ii) does not disclose the trade secret, except pursuant to court order.
    Nothing contained herein will waive, limit or affect any rights of the Company under any applicable trade secrets laws, including
    Defend Trade Secrets Act of 2016, which will be enforceable separate and apart from this Agreement.

 

	7.	ASSIGNMENT
    OF WORK PRODUCT.

 

	 	7.1	Definitions.
    The following capitalized terms shall have the meanings assigned to them below:

 

“Intellectual
Property” means collectively all Work Product and all Intellectual Property Rights relating to all Work Product.

 

“Intellectual
Property Rights” means all copyrights, copyright registrations and copyright applications, trademarks, service marks,
trade dress, trade names, trademark registrations and trademark applications, patents and patent applications, trade secret rights,
and all other intellectual property rights and intellectual property interests existing, created or protectable under any intellectual
property or other law of any nation.

 

“Work
Product” means any and all inventions, discoveries, works of authorship, developments, improvements, formulas, compounds,
indications, techniques, concepts, data and ideas (whether or not patentable or registerable under patent, copyright, or similar
statute) made, conceived, prepared, created, discovered, or reduced to practice by the Executive, either alone or jointly with
others, during the period of his employment, that (i) result or relate to work performed by the Executive for the Company, (ii)
are made by use of the equipment, supplies, facilities or Confidential Information of the Company, or are made, conceived or completed,
wholly or in part, during hours in which the Executive is working for the Company, or (iii) are related to the business of the
Company or the actual or demonstrably anticipated business of the Company.

 

	 	7.2	Property
    of the Company. All Intellectual Property is and will be the sole property of the Company.

 

	 	7.3	Copyrights;
    Assignment. The Executive agrees that all copyrightable materials that fall within the definition of Work Product,
    will be, to the maximum extent permitted by law, works-made-for-hire for the Company under copyright law, and to the extent
    not works-made-for-hire, the Executive hereby irrevocably assigns to the Company, without royalty or further consideration
    to the Executive, all right, title, and interest he may have, or may acquire, in and to all Intellectual Property.

 

	 	7.4	Disclosure.
    The Executive will promptly disclose in writing all Work Product to the Company. The Executive agrees to keep adequate and
    current written records of all such Work Product, in the form of notes, sketches, drawings, electronic records and/or other
    reports, which records are, and will remain, the sole property of the Company and will be available to the Company at all
    times.

 

    	 	-4-	 

     

    

 

	 	7.5	Execution
    of Documents. Whenever requested by the Company, both during the period of the Executive’s employment and thereafter,
    the Executive will promptly sign and deliver to the Company any and all applications, assignments and other documents that
    the Company considers necessary or desirable in order to: (a) assign, apply for, obtain, and maintain any Intellectual Property
    Rights in the United States and for other countries relating to any Work Product, (b) assign and convey to the Company or
    its designee the sole and exclusive right, title, and interest in and to all Intellectual Property, (c) provide evidence regarding
    the Intellectual Property that the Company considers necessary or desirable, and (d) confirm the Company’s ownership
    of the Intellectual Property, all without royalty or any other further consideration to the Executive.

 

	 	7.6	Assistance
    to the Company. Whenever requested by the Company, both during the period of the Executive’s employment and
    thereafter, the Executive will assist the Company in assigning, obtaining, maintaining, defending, registering and from time
    to time enforcing, in any and all countries, the Company’s right to the Intellectual Property. This assistance may include,
    without limitation, testifying in a suit or other proceeding. If the Company requires assistance from the Executive after
    termination of his employment, other than assistance as set forth in Section 7.5, the Executive will be compensated for time
    actually spent in providing assistance at an hourly rate equivalent to his compensation at the time his employment was terminated
    together with his reasonable, actual out-of-pocket expenses incurred in providing such assistance, to the extent permitted
    by applicable law and/or court rules.

 

	 	7.7	Power
    of Attorney. For use in the case that the Company cannot obtain the Executive’s signature on any document that
    the Company considers necessary or desirable in order to assign, apply for, prosecute, obtain, or enforce any Intellectual
    Property, whether due to the Executive’s non-cooperation, unavailability, or any other reason, the Executive hereby
    irrevocably designates and appoints the Company and each of its duly authorized officers and agents as his agent and attorney-in-fact
    to act for, and on the Executive’s behalf, to execute and file any such document and to do all other lawfully permitted
    acts to further the assignment, transfer to the Company, application, registration, prosecution, issuance, and enforcement
    of all Intellectual Property, with the same force and effect as if executed and delivered by the Executive.

 

	 	7.8	Prior
    Inventions. The Executive represents that any inventions, prior works of authorship, discoveries, concepts or ideas,
    if any, to which the Executive presently has any right, title or interest, and which were previously conceived either wholly
    or in part by the Executive, and that the Executive desires to exclude from the operation of this Agreement are identified
    on Schedule A of this Agreement (each a “Prior Invention”). The Executive represents that
    the list contained in Schedule A is complete to the best of his knowledge. If during the Executive’s retention
    with the Company, the Executive incorporates a Prior Invention into a Company product, process or service or its use, the
    Executive shall be deemed to have automatically granted to the Company a nonexclusive, royalty-free, irrevocable, perpetual,
    worldwide license to make, have made, modify, display, perform sell and otherwise use such Prior Invention as part of or in
    connection with any Company product, process or service. The Executive shall not incorporate a Prior Invention into a Company
    product, process or service or its use without the Company’s prior written consent.

 

    	 	-5-	 

     

    

 

	8.	NON-COMPETITION;
    NON-SOLICITATION.

 

	 	8.1	Non-competition.
        To protect the Company’s legitimate interests in, among other things, the Company’s Confidential Information,
        trade secrets, and goodwill, during the Employment Period and the Non-Competition Restricted Period (as defined below),
        the Executive shall not, in any geographic location where within the two years prior to cessation of employment with the
        Company the Executive provided services to the Company or had a material presence or influence, directly or indirectly,
        whether as a partner, principal, shareholder, licensor, licensee, employee, officer, director, manager, agent, representative,
        advisor, promoter, associate, investor, or otherwise, assist in or engage in providing any services that the Executive
        provided to the Company during the prior two years, to a Competitive Business (as defined below). The geographic limitation
        as set forth in this Section 8.1 does not apply during the Employment Period, during which there is no geographic limitation
        to the restrictions as set forth in this Section 8.1.

         

        In
        furtherance of the foregoing, the Company will provide the Executive with the following:

         

        (a)   Subject to Sections 11.3 and 11.4, in the event that the Executive’s employment with the Company is terminated by the
Company without Cause or by the Executive for Good Reason, during the Term (as defined below) other than during the Change in
Control Period (as defined in subsection 8.1(b)), the Company shall pay to the Executive an amount equal to twelve months of his
then current Base Salary under Section 4.1 above (less applicable withholdings and authorized deductions), to be paid in equal
installments bimonthly in accordance with the Company’s customary payroll practices, commencing sixty (60) days following
the date of termination of employment.

         

        (b)   Subject to Sections 11.3 and 11.4, in the event that the Executive’s employment is terminated by the Company without
Cause or by the Executive for Good Reason, during the Term and within the 3 months immediately preceding or the 12 months immediately
following a Change in Control (as defined in Section 11.2) (each, the “Change in Control Period”), then
in lieu of the payments set forth in subsection 8.1(a) above, the Company shall pay to the Executive an amount equal to twenty-four
(24) months of his then current Base Salary under Section 4.1 above (less applicable withholdings and authorized deductions),
to be paid in equal installments bimonthly in accordance with the Company’s customary payroll practices, commencing sixty
(60) days following the date of termination of employment. For avoidance of doubt, if such termination precedes a Change in Control
and any payments or benefits have commenced pursuant to subsection 8.1(a), such payments or benefits shall be taken into account
for purposes of this subsection 8.1(b).

         

        The
        Executive has the right to consult with counsel prior to signing this Agreement, including this Section 8.1. This Section
        8.1 shall not be effective until after ten (10) business days from the date the Executive received notice of this Section
        8.1, but in no case earlier than the Effective Date of this Agreement.

         

        The
        Executive shall not provide any services to any other person, company, entity or firm while the Executive is employed
        by the Company without the Company’s written consent and may not do anything that may result in an actual or perceived
        conflict of interest to the Company.

         

        During
        the Non-Competition Restricted Period, the Executive shall, upon the Company’s request, honestly, accurately, and
        completely provide the Company with the name of any prospective new employer or hiring entity that follows the Executive’s
        separation from the Company. During the Employment Period, the Non-Competition Restricted Period, and the Non-Solicitation
        Restricted Period (defined below), the Executive shall, upon the Company’s request, provide a copy of this Agreement
        to any person, company, entity or firm.

 

    	 	-6-	 

     

    

 

	 	8.2	Certain
    Definitions. The following capitalized terms shall have the meanings assigned to them below:

 

“Competitive
Business” means any business that is developing or has developed a cannabinoid agonist for the treatment of scleroderma,
cystic fibrosis or other inflammatory or fibrotic diseases.

 

“Employment
Period” means the period commencing on the Effective Date and continuing through and including the date of cessation
of the Executive’s employment with the Company.

“Non-Competition
Restricted Period” means the 6 months from the date of cessation of the Executive’s employment with the Company.

 

“Non-Solicitation
Restricted Period” means the 12 months from the date of cessation of the Executive’s employment with the Company.

 

	 	8.3	Non-Solicitation.
    During the Employment Period and the Non-Solicitation Restricted Period, the Executive shall not, directly or indirectly,
    whether on behalf of himself or anyone else: (i) induce or attempt to induce a business associate of the Company to refrain
    from doing business with the Company; or (ii) solicit any of the employees of the Company to leave the employ of the Company
    or hire anyone who is an employee of the Company or has worked for the Company during the previous 12 months. The Non-Solicitation
    Restricted Period shall be extended by the length of any period during which the Executive is in breach of the terms and conditions
    of this Section 8.3.

 

	 	8.4	Separate
    Covenants. The Executive acknowledges and agrees that the covenants set forth in this Section 8 are an essential element
    of this Agreement and the transactions contemplated hereby and that, but for the agreement of the Executive to comply with
    such covenants, the Company would not have entered into this Agreement. 

 

	 	8.5	Blue
    Pencil Provision. The parties hereby expressly agree that the duration, scope and geographic area of restriction set
    forth in this Section 8 are reasonable and necessary to protect the legitimate business interests of the Company. If any provision
    of this Agreement should be found by any court of competent jurisdiction to be unenforceable for any reason, including but
    not limited to being too broad as to duration, scope, or area of restriction, then, and in that event, such provision will
    nonetheless remain valid and fully effective, but will be considered to be amended so that the duration, scope, and/or area
    of restriction set forth will be changed to be the maximum duration, scope, or area of restriction, as the case may be, that
    would be found enforceable by such court. 

 

	9.	INJUNCTIVE
    RELIEF. The Executive acknowledges that the Company shall not have an adequate remedy in the event that the Executive
    breaches Section 6, 7, 8 or 12 of this Agreement and that the Company will suffer irreparable damage and injury in such event.
    The Executive agrees that the Company, in addition to any other available rights and remedies, shall be entitled to seek an
    injunction (without the necessity of posting a bond) restraining the Executive from committing or continuing any violation
    of Section 6, 7, 8 or 12 of this Agreement.

 

	10.	TERM;
    TERMINATION.

 

	 	10.1	Term.
    Unless earlier terminated in accordance with the provisions of this Section 10, the term of this Agreement shall commence
    on the Effective Date and shall continue thereafter for a period of two (2) years (the “Term”).
    If the Company continues to employ the Executive after the expiration of the Term without a written extension of the term,
    such employment shall continue on an AT-WILL basis and the Company shall have the right to terminate the Executive’s
    employment for any reason or no reason, with or without written notice.

 

	 	10.2	Death.
    Upon the death of the Executive, the Executive’s employment with the Company shall terminate.

 

	 	10.3	Disability.
    If the Executive is unable to perform the essential functions of the Executive’s employment with the Company for more
    than twelve weeks (unless a longer period is required by state or federal law), the Company shall have the right to terminate
    the Executive’s employment upon prior written notice

 

	 	10.4	Termination
    by the Executive. The Executive may terminate this Agreement and his employment hereunder with or without Good Reason
    (as defined below) upon 30 days prior written notice to the Company.

 

    	 	-7-	 

     

    

 

	 	10.5	Termination
    by Company. The Company may terminate this Agreement and the Executive’s employment hereunder (i) without Cause
    immediately upon written notice to the Executive or (ii) immediately for Cause.

 

	 	10.6	Certain
    Definitions. The following capitalized terms shall have the meanings assigned to them below:

 

“Cause”
means: (i) the Executive’s chronic failure to perform those material duties assigned to him pursuant to Section 2 above
to the reasonable satisfaction of the Board after written notice thereof and a reasonable opportunity to respond and/or cure of
not less than 30 days; (ii) the Executive’s gross negligence or misconduct (including but not limited to acts of fraud or
theft or the violation of applicable laws) in connection with the performance of his duties; (iii) the Executive’s material
breach of Section 6, 7 or 8 above; (iv) the Executive’s commission of an act of moral turpitude; (v) the Executive being
dependent on or addicted to alcohol or drugs; or (vi) the Executive’s conviction of or plea of nolo contendere to a felony.

 

“Good
Reason” means the voluntary termination by the Executive within thirty (30) days following: (i) a requirement that
the Executive physically relocates to another office that is more than 75 miles from the office location that the Executive reported
to on the Effective Date; (ii) a reduction in the Executive’s rate of compensation, potential incentive compensation, or
general benefits (other than general changes, in each case, affecting all similarly situated employees to substantially the same
extent); or (iii) a material adverse change in the Executive’s job description or a significant reduction of the scope of
the Executive’s authority or responsibilities.

 

	11.	EFFECT
    OF TERMINATION

 

	 	11.1	Payments
    Upon Termination. In the event that the Executive’s employment with the Company is terminated for any reason,
    the Executive shall have the right to receive (i) the compensation and reimbursable expenses then accrued and/or earned and
    unpaid under Sections 4.1 and 5 of this Agreement through the date of termination, (ii) payment for unused vacation days accrued
    through the date of termination and (iii) any benefits required by the Consolidated Omnibus Budget Reconciliation Act of 1985.

 

	 	11.2	Additional
    Payments. (a) Subject to Sections 11.3 and 11.4, in the event that the Executive’s employment with the Company
    is terminated by the Company without Cause or by the Executive for Good Reason, during the Term other than during the Change
    in Control Period (as defined in subsection 11.2(b)), (A) if the Executive then participates in the Company’s medical
    and/or dental plans and the Executive timely elects to continue and maintain group health plan coverage pursuant to COBRA,
    the Company shall reimburse the Executive for the cost of health insurance under COBRA for a period of twelve months; provided,
    however, that if and to the extent that the Company may not provide such COBRA reimbursement without incurring tax
    penalties or violating any requirement of the law, the Company shall use its commercially reasonable best efforts to provide
    substantially similar assistance in an alternative manner, provided that the cost of doing so does not exceed the cost that
    the Company would have incurred had the COBRA reimbursement been provided in the manner described above or cause a violation
    of Section 409A (as defined below), and (B) if the Executive is entitled to a Bonus, subject to the Board’s discretion
    and approval as set forth in Section 4.2 above, the Company shall pay such Bonus in accordance with the terms of the applicable
    plan and on the same basis as other participants in the plan except that the Bonus amount shall be prorated (based on the
    percentage of days the Executive was employed relative to the total number of days in the bonus earning period).

 

    	 	-8-	 

     

    

 

	 		

        (b)
Subject to Sections 11.3 and 11.4, in the event that the Executive’s employment is terminated by the Company without Cause
or by the Executive for Good Reason, during the Term and within the 3 months immediately preceding or the 12 months immediately
following a Change in Control (as defined below) (each, the “Change in Control Period”), then in lieu
of the payments set forth in subsection 11.2(a) above, the Company shall (A) if the Executive then participates in the Company’s
medical and/or dental plans and the Executive timely elects to continue and maintain group health plan coverage pursuant to COBRA,
the Company shall reimburse the Executive for the cost of health insurance under COBRA for a period of twenty-four (24) months;
provided, however, that if and to the extent that the Company may not provide such COBRA reimbursement without incurring
tax penalties or violating any requirement of the law, the Company shall use its commercially reasonable best efforts to provide
substantially similar assistance in an alternative manner, provided that the cost of doing so does not exceed the cost that the
Company would have incurred had the COBRA reimbursement been provided in the manner described above or cause a violation of Section
409A (as defined below), (B) pay the current year Bonus at two (2) times the Target Bonus level, which payment shall be made by
March 15th of the following calendar year, and (C) fully accelerate vesting of all of the Executive’s outstanding stock
options, restricted stock and other equity incentive awards upon the later of (x) the Change in Control or (y) the Executive’s
termination of employment with the Company. For avoidance of doubt, if such termination precedes a Change in Control and any payments
or benefits have commenced pursuant to subsection 11.2(a), such payments or benefits shall be taken into account for purposes
of this subsection 11.2(b).

         

        As
        used in this Agreement, “Change in Control” means (x) a change in ownership of the Company under clause
        (i) below or (y) a change in the ownership of a substantial portion of the assets of the Company under clause (ii) below:

         

        (i)
        Change in the Ownership of the Company. A change in the ownership of the Company shall occur on the date that any
        one person, or more than one person acting as a group (as defined in clause (iii) below), acquires ownership of capital
        stock of the Company that, together with capital stock held by such person or group, constitutes more than 50 percent
        of the total fair market value or total voting power of the capital stock of the Company. However, if any one person or
        more than one person acting as a group, is considered to own more than 50 percent of the total fair market value or total
        voting power of the capital stock of the Company, the acquisition of additional capital stock by the same person or persons
        shall not be considered to be a change in the ownership of the Company. An increase in the percentage of capital stock
        owned by any one person, or persons acting as a group, as a result of a transaction in which the Company acquires capital
        stock in the Company in exchange for property will be treated as an acquisition of stock for purposes of this paragraph.

         

        (ii)
        Change in the Ownership of a Substantial Portion of the Company’s Assets. A change in the ownership of a
        substantial portion of the Company’s assets shall occur on the date that any one person, or more than one person
        acting as a group (as defined in clause (iii) below), acquires (or has acquired during the 12-month period ending on the
        date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market
        value equal to or more than 80 percent of the total gross fair market value of all of the assets of the Company immediately
        prior to such acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets of
        the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with
        such assets. There is no Change in Control under this clause (ii) when there is a transfer to an entity that is controlled
        by the shareholders of the Company immediately after the transfer, as provided below in this clause (ii). A transfer of
        assets by the Company is not treated as a change in the ownership of such assets if the assets are transferred to (a)
        a shareholder of the Company (immediately before the asset transfer) in exchange for or with respect to its capital stock,
        (b) an entity, 50 percent or more of the total value or voting power of which is owned, directly or indirectly, by the
        Company, (c) a person, or more than one person acting as a group, that owns, directly or indirectly, 50 percent or more
        of the total value or voting power of all the outstanding capital stock of the Company, or (d) an entity, at least 50
        percent of the total value or voting power of which is owned, directly or indirectly, by a person described in clause
        (ii)(c) of this paragraph. For purposes of this clause (ii), a person’s status is determined immediately after the
        transfer of the assets.

        

 

    	 	-9-	 

     

    

 

	 	 	(iii)
        Persons Acting as a Group. For purposes of clauses (i) and (ii) above, persons will not be considered to be acting
        as a group solely because they purchase or own capital stock or purchase assets of the Company at the same time. However,
        persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation,
        purchase or acquisition of assets or capital stock, or similar business transaction with the Company. If a person, including
        an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of assets
        or capital stock, or similar transaction, such shareholder is considered to be acting as a group with other shareholders
        in a corporation only with respect to the ownership in that corporation before the transaction giving rise to the change
        and not with respect to the ownership interest in the other corporation. For purposes of this paragraph, the term “corporation”
        shall have the meaning assigned such term under Treasury Regulation section 1.280G-1, Q&A-45.

         

        (iv)
        Each of clauses (i) through (iii) above shall be construed and interpreted consistent with the requirements of Section
        409A and any Treasury Regulations or other guidance issued thereunder.

 

	 	11.3	Release
    Agreement. In order to receive the payments and benefits set forth in Sections 8.1 and 11.2, as applicable (collectively
    referred to herein as the “Severance Payments”), the Executive must timely execute (and not revoke)
    a separation agreement and general release (the “Release Agreement”) in a customary form as is determined
    to be reasonably necessary by the Company in its good faith and reasonable discretion, and which form will include a non-compete
    provision. If the Executive is eligible for Severance Payments pursuant to Sections 8.1 and 11.2, the Company will deliver
    the Release Agreement to the Executive within seven (7) calendar days following the date of termination of employment. The
    Severance Payments are subject to the Executive’s execution and delivery of such Release Agreement within 45 days of
    the Executive’s receipt of the Release Agreement and the Executive’s non-revocation of such Release Agreement.

 

	 	11.4	Post-Termination
    Breach. Notwithstanding anything to the contrary contained in this Agreement, the Company’s obligation to provide
    the Severance Payments will immediately cease if the Executive breaches any of the provisions of Sections 6, 7 or 8, the Release
    Agreement or any other Agreement the Executive has with the Company.

 

	 	11.5	No
    Other Payments or Benefits. The Executive acknowledges and agrees that upon the termination of his employment, no
    other benefits, compensation or remuneration of any kind is owed by the Company to the Executive other than as set forth in
    Sections 8.1 and 11 or as set forth in the Option Agreements.

 

	 	11.6	Survival.
    Notwithstanding anything to the contrary set forth herein, Sections 6, 7, 8, 9 and 11-19 of this Agreement and any remedies
    for the breach thereof, shall survive the termination of this Agreement under the terms hereof. Termination of this Agreement
    shall not relieve or release either party from any rights, liabilities or obligations which it/he has accrued prior to the
    effective date of such termination.

 

    	 	-10-	 

     

    

 

	12.	RETURN
    OF COMPANY PROPERTY; EXIT INTERVIEW. Upon termination of the Executive’s employment with the Company for any
    reason, the Executive will promptly:

 

	 	(a)	Deliver
    to the Company all documents and other tangible media in the Executive’s possession or control that evidence, contain
    or reflect (A) Confidential Information or (B) Work Product, in each case whether prepared by the Executive or otherwise coming
    into the Executive’s possession or control;

 

	 	(b)	Destroy
    any intangible materials that evidence, contain or reflect Confidential Information or Work Product on equipment or media
    not owned by the Company, unless otherwise directed by the Company; and

 

	 	(c)	Return
    to the Company all equipment, files, software programs and other personal property belonging to the Company.

 

Upon
termination of the Executive’s employment with the Company for any reason, the Executive will attend an exit interview with
a representative of the Company to review the Executive’s continuing obligations under this Agreement.

 

	13.	ENTIRE
    AGREEMENT. This Agreement constitutes the entire agreement between the parties with respect to the subject matter
    hereof and supersedes all contemporaneous and prior agreements and understandings between them as to such subject matter.
    Not in limitation of the foregoing, this Agreement supersedes the Prior 2020 Employment Agreement. Except as otherwise expressly
    provided herein, this Agreement may not be amended except by an instrument in writing executed by the Company and the Executive.
    Subject to the other provisions of this Agreement, any subsequent change or changes in the Executive’s duties, salary,
    or compensation will not affect the validity or scope of this Agreement, including the validity or scope of Section 8. 

 

	14.	ASSIGNMENT.
    The Executive shall not be permitted to assign this Agreement or any rights or obligations hereunder without the prior written
    consent of the Company.

 

	15.	GOVERNING
    LAW; JURISDICTION. This Agreement shall be construed and enforced in accordance with and governed by the laws of the
    Commonwealth of Massachusetts without giving effect to the principles of conflicts of laws thereof. The parties hereby consent
    and submit to the exclusive jurisdiction and venue of the courts located in Suffolk County, Massachusetts in connection with
    any actions or proceedings brought against either of them (or each of them) arising out of or relating to this Agreement.

 

	16.	MISCELLANEOUS.
    No waiver by either party of any term or condition of this Agreement, whether by conduct or otherwise, in any one or more
    instance, shall be deemed a continuing waiver of any such term or condition, or a waiver of any other term or condition of
    this Agreement. Headings set forth in this Agreement are solely for the convenience of the parties and have no legal effect.
    If any provision of this Agreement shall be found to be invalid by any court having competent jurisdiction, the invalidity
    of such provision shall not affect the validity of the remaining provisions hereof. This Agreement shall be (i) binding upon,
    and will inure to the benefit of, the parties and their permitted respective successors and assigns, (ii) construed without
    presumption of any rule requiring construction to be made against the party causing it to be drafted and (iii) executed in
    any number of counterparts, each of which will for all purposes be deemed to be an original, and all of which are identical.

 

	17.	TAX
    WITHHOLDING. The Company or other payor is authorized to withhold from any benefit provided or payment due hereunder,
    the amount of withholding taxes due any federal, state or local authority in respect of such benefit or payment and to take
    such other action as may be necessary in the opinion of the Board to satisfy all obligations for the payment of such withholding
    taxes. The Executive will be solely responsible for all taxes assessed against him with respect to the compensation and benefits
    described in this Agreement, other than typical employer-paid taxes such as FICA, and the Company makes no representations
    as to the tax treatment of such compensation and benefits.

 

    	 	-11-	 

     

    

 

	18.	SECTION
    409A COMPLIANCE. All payments under this Agreement are intended to comply with or be exempt from the requirements
    of Section 409A of the Code and regulations promulgated thereunder (“Section 409A”). As used in this Agreement,
    the “Code” means the Internal Revenue Code of 1986, as amended. To the extent permitted under applicable
    regulations and/or other guidance of general applicability issued pursuant to Section 409A, the Company reserves the right
    to modify this Agreement to conform with any or all relevant provisions regarding compensation and/or benefits so that such
    compensation and benefits are exempt from the provisions of 409A and/or otherwise comply with such provisions so as to avoid
    the tax consequences set forth in Section 409A and to assure that no payment or benefit shall be subject to an “additional
    tax” under Section 409A. To the extent that any provision in this Agreement is ambiguous as to its compliance with Section
    409A, or to the extent any provision in this Agreement must be modified to comply with Section 409A, such provision shall
    be read in such a manner so that no payment due to the Executive shall be subject to an “additional tax” within
    the meaning of Section 409A(a)(1)(B) of the Code. If necessary to comply with the restriction in Section 409A(a)(2)(B) of
    the Code concerning payments to “specified employees,” any payment on account of the Executive’s separation
    from service that would otherwise be due hereunder within six (6) months after such separation shall be delayed until the
    first business day of the seventh month following the date of termination of employment and the first such payment shall include
    the cumulative amount of any payments (without interest) that would have been paid prior to such date if not for such restriction.
    Each payment in a series of payments hereunder shall be deemed to be a separate payment for purposes of Section 409A. In no
    event may the Executive, directly or indirectly, designate the calendar year of payment. All reimbursements provided under
    this Agreement shall be made or provided in accordance with the requirements of Section 409A, including, where applicable,
    the requirement that (i) any reimbursement is for expenses incurred during the Executive’s lifetime (or during a shorter
    period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year
    may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible
    expense will be made on or before the last day of the calendar year following the year in which the expense is incurred, and
    (iv) the right to reimbursement is not subject to liquidation or exchange for another benefit. Notwithstanding anything contained
    herein to the contrary, the Executive shall not be considered to have terminated employment with the Company for purposes
    of Sections 8.1 and 11.2 unless the Executive would be considered to have incurred a “termination of employment”
    from the Company within the meaning of Treasury Regulation §1.409A-1(h)(1)(ii). In no event whatsoever shall the Company
    be liable for any additional tax, interest or penalty that may be imposed on the Executive by Section 409A or damages for
    failing to comply with Section 409A.

 

	19.	280G
    MODIFIED CUTBACK.

 

	 	(a)	If
    any payment, benefit or distribution of any type to or for the benefit of the Executive, whether paid or payable, provided
    or to be provided, or distributed or distributable pursuant to the terms of this Agreement or otherwise (collectively, the
    “Parachute Payments”) would subject the Executive to the excise tax imposed under Section 4999 of the Code
    (the “Excise Tax”), the Parachute Payments shall be reduced so that the maximum amount of the Parachute
    Payments (after reduction) shall be one dollar ($1.00) less than the amount which would cause the Parachute Payments to be
    subject to the Excise Tax; provided that the Parachute Payments shall only be reduced to the extent the after-tax value of
    amounts received by the Executive after application of the above reduction would exceed the after-tax value of the amounts
    received without application of such reduction. For this purpose, the after-tax value of an amount shall be determined taking
    into account all federal, state, and local income, employment and excise taxes applicable to such amount. Unless the Executive
    shall have given prior written notice to the Company to effectuate a reduction in the Parachute Payments if such a reduction
    is required, which notice shall be consistent with the requirements of Section 409A to avoid the imputation of any tax, penalty
    or interest thereunder, then the Company shall reduce or eliminate the Parachute Payments by first reducing or eliminating
    accelerated vesting of stock options or similar awards, then reducing or eliminating any cash payments (with the payments
    to be made furthest in the future being reduced first), then by reducing or eliminating any other remaining Parachute Payments;
    provided, that no such reduction or elimination shall apply to any non-qualified deferred compensation amounts (within the
    meaning of Section 409A) to the extent such reduction or elimination would accelerate or defer the timing of such payment
    in a manner that does not comply with Section 409A.

 

    	 	-12-	 

     

    

 

	 	(b)	An
    initial determination as to whether (x) any of the Parachute Payments received by the Executive in connection with the occurrence
    of a change in the ownership or control of the Company or in the ownership of a substantial portion of the assets of the Company
    shall be subject to the Excise Tax, and (y) the amount of any reduction, if any, that may be required pursuant to the previous
    paragraph, shall be made by an independent accounting firm selected by the Company (the “Accounting Firm”)
    prior to the consummation of such change in the ownership or effective control of the Company or in the ownership of a substantial
    portion of the assets of the Company. The Executive shall be furnished with notice of all determinations made as to the Excise
    Tax payable with respect to the Executive’s Parachute Payments, together with the related calculations of the Accounting
    Firm, promptly after such determinations and calculations have been received by the Company.

 

	 	(c)	For
    purposes of this Section 19, (i) no portion of the Parachute Payments the receipt or enjoyment of which the Executive shall
    have effectively waived in writing prior to the date of payment of the Parachute Payments shall be taken into account; (ii)
    no portion of the Parachute Payments shall be taken into account which in the opinion of the Accounting Firm does not constitute
    a “parachute payment” within the meaning of Section 280G(b)(2) of the Code; (iii) the Parachute Payments shall
    be reduced only to the extent necessary so that the Parachute Payments (other than those referred to in the immediately preceding
    clause (i) or (ii)) in their entirety constitute reasonable compensation for services actually rendered within the meaning
    of Section 280G(b)(4) of the Code or are otherwise not subject to disallowance as deductions, in the opinion of the auditor
    or tax counsel referred to in such clause (ii); and (iv) the value of any non-cash benefit or any deferred payment or benefit
    included in the Parachute Payments shall be determined by the Company’s independent auditors based on Sections 280G
    and 4999 of the Code and the regulations for applying those sections of the Code, or on substantial authority within the meaning
    of Section 6662 of the Code.

 

 

IN
WITNESS WHEREOF, the undersigned have executed this Employment Agreement.

 

	 	CORBUS
    PHARMACEUTICALS HOLDINGS, INC.
	 	 	 
	 	By:	/s/
    Sean Moran                      
	 	Name:	Sean
    Moran
	 	Title:	Chief
    Financial Officer
	 	Dated:	4/17/2020
	 	 	 
	 	By:	/s/
    Yuval Cohen
	 	 	Yuval
    Cohen
	 	Dated:	4/17/2020
	 	Address:
	

 

    	 	-13-	 

     

    

 

Schedule
A

 

Executive
Statement Regarding Prior Inventions

 

Except
as set forth below, the Executive acknowledges that at this time he does not have any right, title or interest in or to any Prior
Inventions (as defined in Section 7.8 of this Agreement) except those (if any) listed below:

 

[List
any applicable Prior Inventions or write “None”.] None

 

[If
you need more space please attach a separate continuation sheet] 

 

The
Executive certifies that the foregoing is true, accurate and complete.

 

	The
    Executive’s Name:	Yuval
    Cohen	 
	 	 	 
	Date:	4/17/2020	 
	 	 	 
	Signature:	/s/
    Yuval Cohen	 

 

    	 	-14-

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