Document:

Exhibit 10.1

 

FIRST AMENDMENT TO UNSECURED CONVERTIBLE
PROMISSORY NOTE

 

THIS FIRST AMENDMENT
TO UNSECURED CONVERTIBLE PROMISSORY NOTE (this “Amendment”), is dated as of January 17, 2017 (the “Amendment
Effective Date”), by and between MAZ Partners LP (“Holder”), and Transgenomic, Inc. (the “Company”).

 

WHEREAS, Holder
is the holder of an Unsecured Convertible Promissory Note (the “Note”) dated January 20, 2015, in the principal
amount of One Hundred Twenty Five Thousand Dollars ($125,000), made by the Company. Holder and the Company have agreed to amend
the Note as more particularly described herein. Unless otherwise defined herein, capitalized terms used herein shall have the meanings
assigned to them in the Note.

 

WHEREAS, the
Note has an original Maturity Date of December 31, 2016 (the “Maturity Date”) and the Company failed to pay
the outstanding aggregate amount due on the Note of $139,876.71 (representing $125,000 in aggregate principal amount and $14,876.71
of aggregate accrued interest) on the Maturity Date, which failure would have constituted an Event of Default pursuant to Section
4(v) of the Note if such required amounts were not paid to Holder on January 10, 2017 (the “Payment Event of Default”);

 

WHEREAS, on
January 10, 2017, Holder agreed to temporarily waive the Payment Event of Default for a period to expire on January 16, 2017 to
give the Company and Holder time to discuss an extension of the Maturity Date as well as modify certain other terms of the Note
in connection with such Maturity Date extension;

 

WHEREAS, the
Company has requested that Holder extend the Maturity Date of the Note and Holder has agreed to do so to the extent and on the
terms set forth in this Amendment.

 

NOW, THEREFORE,
for and in consideration of the premises and other good and valuable consideration, and the mutual promises made herein, the parties,
intending to be legally bound, agree as follows:

 

1.       Amendment.

 

(a)       As
of the Amendment Effective Date, Section 2 of the Note is hereby amended and restated in its entirety to read as follows:

 

“2.      PAYMENT

 

“(a)        Principal. If not otherwise repaid pursuant to Section 2(e) below or converted pursuant to Section 3 below, (i) two-thirds
of the outstanding principal amount of this Note shall be due and payable on the first to occur of (1) the effective date of the
merger contemplated by that certain Agreement and Plan of Merger, dated as of October 12, 2016, by and between the Company, New
Haven Labs Inc. and Precipio Diagnostics, LLC or (2) June 16, 2017 (such applicable date, the “Deferred Maturity Date”)
and (ii) the remaining one-third of the outstanding principal amount of this Note shall be due and payable on the sixth month
anniversary of the Deferred Maturity Date (the “Extended Maturity Date”).

 

(b)        Interest.

 

(i)       Conversion
of Deferred Date Interest. On the applicable Deferred Maturity Date, all interest accrued on this Note and unpaid as of the
applicable Deferred Maturity Date (the “Deferred Date Interest”) shall be converted into validly issued, fully
paid and non-assessable shares of common stock of the Company, par value $0.01 per share (“Common Stock”). The
number of shares of Common Stock issuable upon conversion of the Deferred Date Interest shall equal the Deferred Date Interest
divided by the greater of (a) the average closing price of the Common Stock on The Nasdaq Stock Market LLC (“NASDAQ”)
(or if NASDAQ is not the principal trading market for the Common Stock, then on the principal securities exchange or securities
market on which the Common Stock is then traded) for the 20 consecutive trading days immediately preceding the applicable Deferred
Maturity Date or (b) $0.25.

 

(ii)       Accrued
Interest From Defered Maturity Date. All accrued and unpaid interest on the remaining outstanding principal amount of this
Note accruing from the applicable Deferred Maturity Date shall be due and immediately payable on the first to occur of (1) the
Extended Maturity Date or (2) upon the conversion of this Note in accordance with the terms of Section 3 below, in which case such
interest shall be payable solely in shares of Common Stock.

 

     

     

    

 

(c)        Upon
Default. Upon the occurrence or existence of any Event of Default (as defined below), Holder may, by written notice to the
Company, declare the then-outstanding principal and accrued interest under this Note to be immediately due and payable without
presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived.

 

(d)       Manner
of Payment. All payments shall be made in lawful money of the United States of America at the address for notice to Holder
provided in Section 7 below (or such other address as requested in writing by Holder in accordance with Section 7 below). Payment
shall be credited first to the accrued interest then due and payable and the remainder applied to principal.

 

(e)        Prepayment.
Prior to the Extended Maturity Date and upon at least five calendar days advance written notice to Holder, the Company may prepay
this Note plus accrued and unpaid interest, in whole or in part, without any premium or penalty; provided that, upon receipt by
Holder of notice of prepayment by the Company, and prior to any such prepayment by the Company, Holder may elect to convert any
or all of the outstanding and unpaid principal amount of this Note into shares of Common Stock in accordance with Section 3 below;
and, provided further, that Holder provides notice to the Company of its election to so convert within three business days of receipt
of the Company’s notice of prepayment. Any prepayment shall be credited first to the accrued interest then due and payable
and the remainder applied to principal.”

 

(b)       As
of the Amendment Effective Date, Section 4 of the Note is hereby amended and restated in its entirety to read as follows:

 

“4.       EVENTS OF
DEFAULT. Notwithstanding the foregoing, upon the occurrence or existence of any of the following events, Holder may, by written
notice to the Company, declare the then-outstanding principal and accrued interest under this Note to be immediately due and payable
without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived (each, an “Event
of Default”): (i) the Company commences a voluntary case or other proceeding seeking liquidation, reorganization or other
relief with respect to itself or its debts under any federal or state bankruptcy laws; (ii) the Company makes a general assignment
for the benefit of the Company’s creditors; (iii) the Company files, or a third party files against the Company, a petition
in bankruptcy or any petition for relief under the federal or state bankruptcy laws and (in the case of an involuntary petition)
such petition is not dismissed or discharged within 90 days of such filing; (iv) the Company applies for or consents to the appointment
of a receiver, trustee or similar person to take possession of all or a substantial part of the property or assets of the Company
or a receiver, trustee or similar person is appointed and not discharged within 90 days; (v) the Company fails to timely make any
payment (whether principal, interest or otherwise) under this Note within ten days of when due, whether upon demand or otherwise;
(vi) the Company files a certificate of dissolution under applicable state law, otherwise liquidates, dissolves or winds-up the
Company, or commences or has commenced against it any action or proceeding for the dissolution, winding-up or liquidation of the
Company, or takes any corporate action in furtherance thereof; or (vii) there is, under any agreement to which the Company is a
party with a third party or parties, any default by the Company that occurs after January 16, 2017 and results in a right by such
third party or parties, whether or not exercised, to accelerate the maturity of any material Indebtedness. For purposes of subsection
(vii) “Indebtedness” shall mean (a) indebtedness for borrowed money or the deferred price of property or services,
such as reimbursement and other obligations for surety bonds and letters of credit and (b) obligations evidenced by notes, bonds,
debentures or similar instruments. The Company shall promptly notify Holder in writing of any Event of Default or the occurrence
of any event that is reasonably likely to result in an Event of Default.”

 

2.       Warrant.

 

(a)       To
induce the Holder to enter into this Amendment, the Company shall issue to Holder a Warrant (the “Warrant”)
to purchase shares of the Company’s common stock having an aggregate value of $15,000 (representing 5% of the value of the
outstanding principal amount of this Note). The Warrant shall be issued on the applicable Deferred Maturity Date and shall have
the terms and conditions set forth in the form of Warrant attached hereto as Exhibit A.

 

     

     

    

 

(b)       The
Company’s obligation to issue the Warrant to Holder on the applicable Deferred Maturity Date is subject to the fulfillment
to the satisfaction of the Company, on or prior to the applicable Deferred Maturity Date, of the following conditions:

 

(i)       Holder
shall have furnished to the Company on the date hereof the Investor Questionnaire attached hereto as Exhibit B and such
representations, warranties and certifications made therein shall be true and correct as of the date of the applicable Deferred
Maturity Date as though made on and as of the applicable Deferred Maturity Date; and

 

(ii)       To
the extent the Company’s outside counsel deems advisable, the Warrant shall be provided to The NASDAQ Stock Market LLC (“NASDAQ”)
for prior approval. In such case, the Company shall promptly furnish to NASDAQ the form of Warrant set forth on Exhibit A
for its review following the date of this Amendment and shall use its commercially reasonable efforts to obtain NASDAQ’s
approval of the Warrant prior to the applicable Deferred Maturity Date.

 

3.       Full
Force and Effect; Ratification.  Except as expressly modified herein, the Note shall remain in full force and effect pursuant
to its terms. The Company hereby ratifies and reaffirms its indebtedness, duties and obligations under the Note, as modified or
amended herein.

 

4.       Counterparts.
This Amendment may be executed in two or more counterparts which, when taken together, shall constitute but one and the same document.

 

5.       Governing
Law. This Amendment shall be enforced, governed and construed in all respects in accordance with the laws of the State
of New York, as such laws are applied by the New York courts to agreements entered into and to be performed in New York by and
between residents of New York.

 

 

 

     

     

    

 

IN WITNESS WHEREOF, Holder and the
Company have caused this Amendment to be executed as of the Amendment Effective Date.

 

	 	MAZ Partners LP
	 	 	 	 	 
	 	 	 	 	 
	 	By: 	/s/ Walter Schenker	 
	 	 	Name: 	Walter Schenker	 
	 	 	Title: 	Principal	 
	 	 	 	 	 
	 	TRANSGENOMIC, INC. 	 
	 	 	 	 	 
	 	 	 	 	 
	 	By: 	/s/ Paul Kinnon	 
	 	 	Name: 	Paul Kinnon	 
	 	 	Title: 	President and Chief Executive Officerexhibit101spectranetics8

  1 THE SPECTRANETICS CORPORATION 2016 INCENTIVE AWARD PLAN  PERFORMANCE STOCK UNIT GRANT NOTICE  The Spectranetics Corporation, a Delaware corporation (the “Company”), pursuant to The Spectranetics Corporation 2016 Incentive Award Plan (as it may be amended from time to time, the “Plan”), hereby grants to the individual listed below (the “Participant”) the following award of Performance Stock Units (“PSUs”).  This award of PSUs is subject to all of the terms and conditions set forth in this Grant Notice, in the Performance Stock Unit Terms and Conditions (the “Terms and Conditions”) attached hereto as Appendix A and Appendix B (the “Appendices”) (this Grant Notice and the Appendices being collectively referred to as the “Award Agreement”) and in the Plan, the terms of which are incorporated herein by reference.  All capitalized terms used and not otherwise defined in this Award Agreement shall have the meanings ascribed to such terms in the Plan (as it may be amended from time to time) unless the context clearly indicates otherwise. Participant:  ______________ Grant Date:  ________ __, 2017 Target Number of PSUs: _________ The number of PSUs actually earned can be between 0% and 200% of the Target Number of PSUs and is determined at the end of the Performance Period. Performance Period: January 1, 2017 – December 31, 2019 Performance Measures: Revenue and EBITDA                                          (See Appendix B)  Payout Range:  0% to 200% of Target Number Scheduled Vesting Date[s]:   100% of earned PSUs vest on December 31, 2019 Payment of PSUs: The Company shall pay to the Participant in the form of one share of Stock for each vested PSU as set forth in Section 4 of the attached Terms and Conditions. Termination of PSUs:  Unvested PSUs are forfeited and terminated to the extent set forth in Section 3 of the attached Terms and Conditions.   

 

  2 By his or her signature and the Company’s signature below, the Participant agrees to be bound by the terms and conditions of the Plan and this Award Agreement.  The Participant has reviewed the Award Agreement, including the Appendices, and the Plan in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of this Award Agreement and the Plan.  In the event that there are any inconsistencies between the terms of the Plan and the terms of this Award Agreement, the terms of the Plan shall control.  The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Compensation Committee of the Board of Directors of the Company (the “Committee”) upon any questions arising under this Award Agreement or the Plan. IN WITNESS WHEREOF, this Grant Notice has been executed and delivered by the parties hereto as of the Grant Date first written above.  THE SPECTRANETICS  CORPORATION:   By:       Name: Robert Fuchs Title: Senior Vice President,   Global Human Resources PARTICIPANT:    Signature:       Print Name:       Address:                                                

 

 A-1 APPENDIX A TO PERFORMANCE STOCK UNIT GRANT NOTICE PERFORMANCE STOCK UNIT TERMS AND CONDITIONS 1. Grant.  Pursuant to the Performance Stock Unit Grant Notice (the “Grant Notice”) and these Performance Stock Unit Terms and Conditions (the “Terms and Conditions”) attached to the Grant Notice, and which together with this Appendix A and the Process for Determining Earned PSUs attached hereto as Appendix B (this Grant Notice and Appendix A and Appendix B being collectively referred to as the “Award Agreement,”) The Spectranetics Corporation, a Delaware corporation (the “Company”), has granted to the Participant an award of PSUs under The Spectranetics Corporation 2016 Incentive Award Plan (as it may be amended from time to time, the “Plan”), subject to all of the terms and conditions contained in this Award Agreement and the Plan.  All capitalized terms used but not defined in the Award Agreement shall have the meanings ascribed to such terms in the Plan unless the context clearly indicates otherwise.   2. PSUs.  Each PSU that vests represents the right to receive payment, in accordance with Section 4 below, in the form of one share of Stock.  Unless and until a PSU vests, the Participant has no right to payment in respect of any such PSU.  Prior to actual payment in respect of any vested PSU, such PSU represents an unfunded and unsecured contingent obligation of the Company, payable (if at all) only from the general assets of the Company. 3. Vesting and Termination.  The number of PSUs that are earned and eligible to vest is determined as set forth in this Section 3 or in Appendix B, if applicable. 3.1 Unearned PSUs.  Any PSUs that have not yet been earned as of the end of the Performance Period or otherwise in the manner provided in Appendix B, if applicable, will immediately terminate and be forfeited and cancelled without payment of consideration therefor.  3.2 Voluntary Termination by the Participant or Termination by the Company for Cause.   All PSUs that have not yet vested as of the time Participant ceases to be a Service Provider (a “Termination of Service”) due to voluntary termination by the Participant (not including a voluntary Termination of Service for Good Reason as contemplated by Section 3.3 below) or termination by the Company for Cause shall thereupon terminate and be forfeited and cancelled without payment of consideration therefor.  3.3 Termination without Cause or for Good Reason.  Except as provided in Section 3.5, if the Participant experiences an involuntary Termination of Service without Cause or a voluntary Termination of Service for Good Reason, the PSUs vest as follows (and any PSUs that do not vest under the circumstances described below are forfeited and cancelled without payment of consideration therefor): (a) If such termination occurs in the first year of the Performance Period, all unvested PSUs as of the Participant's Termination of Service thereupon terminate and are forfeited and cancelled without payment of consideration therefor. (b) If such termination occurs in the second year of the Performance Period and if either the Year 2 Threshold Revenue Level (as set forth in Appendix B) or the Year 2 Threshold EBITDA Level (as set forth in Appendix B) is earned by the Company during the fiscal year ending December 31, 2018, then the Participant is entitled to a prorated vesting and payout of PSUs. If the Year 2 Threshold Revenue Level is achieved, the Participant is entitled to a prorated vesting of 35% of the Target Number of PSUs. If the Year 2 Threshold EBITDA Level 

 

 A-2 is achieved, the Participant is entitled to a prorated vesting of 15% of the Target Number of PSUs. If both the Year 2 Threshold Revenue Level and the Year 2 Threshold EBITDA Level are achieved, the Participant is entitled to a prorated vesting of 50% of the Target Number of PSUs. The prorated number of PSUs that vest upon such Termination of Service is equal to the number of PSUs earned as described above multiplied by a fraction, the numerator of which equals the number of days such Participant was employed with the Company during the Performance Period and the denominator of which equals the number of days in the Performance Period.   In such case, any earned PSUs shall be paid out after December 31, 2018 following the calculation of the performance measures in accordance with this Section 3.3(b) and Appendix B. (c) If such termination occurs in the third year of the Performance Period, the Participant is entitled to a prorated vesting and payout of PSUs.  The number of PSUs that vest upon such Termination of Service is equal to the number of PSUs earned as of the end of the Performance Period upon calculation of the performance measures as set forth in Appendix B multiplied by a fraction, the numerator of which equals the number of days such Participant was employed with the Company during the Performance Period and the denominator of which equals the number of days in the Performance Period.   In such case, any earned PSUs shall be paid out following the end of the Performance Period and the calculation of the performance measures in accordance with Appendix B. 3.4 Termination by Reason of Death or Disability.  If the Participant's Termination of Service occurs by reason of death or Disability prior to the Scheduled Vesting Date, the Participant, or the Participant's estate, designated beneficiary or other beneficiary contemplated by the Plan in the event of the Participant’s death, is entitled to the immediate vesting and payout of the Target Number of PSUs as set forth in the Grant Notice.  Any PSUs that do not vest under the circumstances described in the preceding sentence are forfeited and cancelled without payment of consideration therefor. 3.5 Change in Control.  If a Change in Control occurs prior to the Scheduled Vesting Date and prior to the Participant’s Termination of Service: (a) If this Award is continued, assumed or replaced by the surviving or successor entity (or its parent entity) and within 12 months after the Change in Control the Participant experiences an involuntary Termination of Service without Cause or a voluntary Termination of Service for Good Reason, then the Participant is entitled to the immediate vesting and payout of a number of PSUs equal to the Target Number of PSUs as set forth in the Grant Notice. Any PSUs that do not vest under the circumstances described in the preceding sentence are forfeited and cancelled without payment of consideration therefor. (b) If this Award is not continued, assumed or replaced by the surviving or successor entity (or its parent entity), then the Participant is entitled to the immediate vesting and payout of a number of PSUs equal to the Target Number of PSUs as set forth in the Grant Notice. Any PSUs that do not vest under the circumstances described in the preceding sentence are forfeited and cancelled without payment of consideration therefor. 4. Payment after Vesting; Code Section 409A.  The Company shall issue one share of Stock (in book-entry form or otherwise) in respect of each PSU that vests in accordance herewith to the Participant (or in the event of the Participant’s death, to the Participant’s estate, designated beneficiary or other beneficiary contemplated by the Plan) as soon as practicable following the date on which such PSU vests. Notwithstanding anything herein to the contrary, no such payment shall be made to the Participant during the six-month period following the Participant’s “separation from service” (within the meaning of Section 409A of the Code) if the Participant is a “specified employee” (within the meaning of Section 409A of the Code) on the date of such separation from service (as determined by the Company in 

 

 A-3 accordance with Section 409A of the Code) and the Company determines that paying such amounts at the time set forth in this Section 4 would constitute a failure to comply with Section 409A(a)(2)(B)(i) of the Code.  If the payment of any such amounts is delayed as a result of the previous sentence, then on the first day following the end of such six-month period, the Company shall pay the Participant the cumulative amounts that would have otherwise been payable to the Participant during such six-month period. 5. Tax Withholding.  The Company may deduct or withhold, or require the Participant to remit to the Company, an amount sufficient to satisfy all applicable federal, state and local taxes (including the Participant’s employment tax obligations, if any) required by law to be withheld with respect to any taxable event arising in connection with the PSUs.  Without limiting the generality of Section 14 of the Plan, the Participant may, in satisfaction of the foregoing requirement, elect to have the Company withhold or cause to be withheld shares of Stock otherwise issuable in respect of such PSUs having a Fair Market Value equal to the sums required to be withheld.   6. Rights as Shareholder.  Neither the Participant nor any person claiming under or through the Participant has any of the rights or privileges of a shareholder of the Company in respect of any shares of Stock that may become deliverable hereunder unless and until certificates representing such shares of Stock have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered in certificate or book entry form to the Participant or any person claiming under or through the Participant. 7. Non-Transferability.  Neither the PSUs nor any interest or right therein is liable for the debts, contracts or engagements of the Participant or his or her successors in interest or subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means, whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect; provided, however, that this Section 7 shall not prevent transfers by will or by the applicable laws of descent and distribution or pursuant to a domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended, or the rules thereunder.  Upon any attempt by the Participant to transfer, assign, pledge, hypothecate or otherwise dispose of this grant, or any right or privilege conferred hereby, or upon any attempted sale by the Participant under any execution, attachment or similar process, this grant and the rights and privileges conferred hereby shall immediately become null and void.   8. Distribution of Stock.  Notwithstanding anything herein to the contrary, the Company is not required to issue or deliver any certificates evidencing shares of Stock pursuant to this Award Agreement unless and until the Committee has determined, with advice of counsel, that the issuance and delivery of such certificates is in compliance with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which the shares of Stock are listed or traded.  All Stock certificates delivered pursuant to this Award Agreement are subject to any stop- transfer orders and other restrictions as the Committee deems necessary or advisable to comply with federal, state, or foreign jurisdiction, securities or other laws, rules and regulations and the rules of any national securities exchange or automated quotation system on which the Stock is listed, quoted, or traded.  In the event that any such issuance or delivery is delayed because the Company reasonably determines that such issuance or delivery will violate Federal securities laws or other applicable law, such issuance or delivery shall be made at the earliest date at which the Company reasonably determines that such issuance or delivery will not cause such violation.    The Committee may place legends on any Stock certificate to reference restrictions applicable to the Stock.   In addition to the terms and conditions provided herein, the Committee may require that the Participant make such reasonable covenants, agreements, and representations as the Committee, in its discretion, deems advisable in order to comply with any such laws, regulations, or requirements.  The Committee may require the Participant to comply 

 

 A-4 with any timing or other restrictions with respect to the settlement of any PSUs, including a window- period limitation, as may be imposed in the discretion of the Committee.  Notwithstanding any other provision of this Award Agreement, unless otherwise determined by the Committee or required by any applicable law, rule or regulation, the Company shall not deliver to the Participant any certificates evidencing shares of Stock issued upon settlement of any PSUs under this Award Agreement and instead such shares of Stock shall be recorded in the books of the Company (or, as applicable, its transfer agent or stock plan administrator) and all references herein to certificates shall be deemed to apply instead to recordation in such books.   9. No Effect on Service Relationship.  Nothing in this Award Agreement or in the Plan confers upon the Participant any right to serve or continue to serve as an Employee, Non-Employee Director, consultant or other Service Provider of the Company or any Subsidiary. 10. Severability.  In the event that any provision in this Award Agreement is held invalid or unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Award Agreement, which shall remain in full force and effect. 11. Tax Consultation.  The Participant understands that the Participant may suffer adverse tax consequences in connection with the PSUs granted pursuant to this Award Agreement.  The Participant represents that the Participant has consulted with any tax consultants that the Participant deems advisable in connection with the PSUs and that the Participant is not relying on the Company for tax advice. 12. Amendments, Suspension and Termination.  To the extent permitted by the Plan, this Award Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board. 13. Conformity to Securities Laws.  The Participant acknowledges that the Plan and this Award Agreement are intended to conform to the extent necessary with all provisions of the Securities Act of 1933, as amended, and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, and all applicable state securities laws and regulations.  Notwithstanding anything herein to the contrary, the Plan shall be administered, and the PSUs are granted, only in such a manner as to conform to such laws, rules and regulations.  To the extent permitted by applicable law, the Plan and this Award Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 14. Limitations Applicable to Section 16 Persons.  Notwithstanding any other provision of the Plan or this Award Agreement, if the Participant becomes subject to Section 16 of the Exchange Act, the Plan, the PSUs and this Award Agreement will be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule.  To the extent permitted by applicable law, this Award Agreement is deemed amended to the extent necessary to conform to such applicable exemptive rule. 15. Code Section 409A.  Neither the PSUs nor this Award Agreement is intended to provide for any deferral of compensation subject to Section 409A of the Code, and, accordingly, notwithstanding anything to the contrary, the shares of Stock issuable hereunder in settlement of vested PSUs shall be distributed no later than the later of: (i) the 15th day of the third month following Participant’s first taxable year in which the PSUs are no longer subject to a substantial risk of forfeiture, and (ii) the 15th day of the third month following the first taxable year of the Company in which the PSUs are no longer subject to substantial risk of forfeiture, as determined in accordance with Code Section 409A and any Treasury Regulations and other guidance issued thereunder.  Nevertheless, to the extent that the 

 

 A-5 Committee determines that any PSUs may not be exempt from (or compliant with) Section 409A of the Code, the Committee may (but shall not be required to) amend this Award Agreement in a manner intended to comply with the requirements of Section 409A of the Code or an exemption therefrom (including amendments with retroactive effect), or take any other actions as it deems necessary or appropriate to (a) exempt the PSUs from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the PSUs, or (b) comply with the requirements of Section 409A of the Code.  To the extent applicable, this Award Agreement shall be interpreted in accordance with the provisions of Section 409A of the Code. 16. Compensation Recovery Policy. To the extent that any compensation paid or payable pursuant to this Award Agreement is considered “incentive-based compensation” within the meaning and subject to the requirements of Section 10D of the Exchange Act, such compensation shall be subject to potential forfeiture or recovery by the Company in accordance with any compensation recovery policy adopted by the Board or any committee thereof in response to the requirements of Section 10D of the Exchange Act and any implementing rules and regulations thereunder adopted by the Securities and Exchange Commission or any national securities exchange on which the Company’s common stock is then listed. This Award Agreement may be unilaterally amended by the Company to comply with any such compensation recovery policy. 17. Adjustments.  The Participant acknowledges that the PSUs are subject to modification and termination in certain events as provided in this Award Agreement and Section 15 of the Plan. 18. Notices.  Notices required or permitted hereunder must be given in writing and are deemed effectively given upon personal delivery or upon deposit in the United States mail by certified mail, with postage and fees prepaid, addressed to the Participant to his or her address shown in the Company records, and to the Company at its principal executive office. 19. Successors and Assigns.  The Company may assign any of its rights under this Award Agreement to single or multiple assignees, and this Award Agreement inures to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer contained herein, this Award Agreement shall be binding upon the Participant and his or her heirs, executors, administrators, successors and assigns. 20. Governing Law.   This Award Agreement is intended to be administered, interpreted and enforced under the internal laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. 21. Captions.  Captions provided herein are for convenience only and are not intended to serve as a basis for interpretation or construction of this Award Agreement.

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