Document:

Exhibit 10.1

 

Employment Agreement

 

This Employment Agreement (this “Agreement”),
dated as of April 20, 2016, is made by and between Lindblad Expeditions Holdings, Inc., a Delaware corporation (together with
any successor thereto, the “Company”) and Philip Auerbach (“Executive”) (collectively Executive
and the Company are referred to herein as the “Parties”).

 

RECITALS

 

		A.	It
                                         is the desire of the Company to assure itself of the services of Executive effective
                                         as of the Effective Date (as defined below) and thereafter by entering into this Agreement.

 

		B.	Executive
                                         and the Company mutually desire that Executive provide services to the Company on the
                                         terms herein provided.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing
and of the respective covenants and agreements set forth below, the Parties hereto agree as follows:

 

1.            Employment.

 

(a)            General. Effective as of the
Effective Date, the Company shall employ Executive for the period and in the position set forth in this Section 1, and
subject to the other terms and conditions herein provided.

 

(b)            Employment Term. The term of
employment under this Agreement (the “Term”) shall be for the period beginning on May 26, 2016 or such other
date as may be mutually agreed between the Executive and the Company (the “Effective Date”), and ending on
the fourth anniversary thereof, subject to earlier termination as provided in Section 3. The Term shall automatically renew
for additional twelve (12) month periods unless no later than sixty (60) days prior to the end of the applicable Term either Party
gives written notice of non-renewal to the other, in which case Executive’s employment will terminate at the end of the
then-applicable Term, subject to earlier termination as provided in Section 3.

 

(c)            Position and Duties. Executive
shall serve as the Chief Commercial Officer of the Company, with such responsibilities, duties and authority normally associated
with such position and as may from time to time be assigned to Executive by the Chief Executive Officer of the Company or by the
Board of Directors of the Company or an authorized committee thereof (in any case, the “Board”). Executive
shall report directly to the Chief Executive Officer of the Company. Executive’s principal place of employment shall be
at the Company’s executive offices in New York, New York. Executive shall devote substantially all of Executive’s
working time and efforts to the business and affairs of the Company (which shall include service to its subsidiaries) and shall
not engage in outside business activities (including serving on outside boards or committees) without the consent of the Board,
provided that Executive shall be permitted to (i) manage Executive’s personal, financial and legal affairs, (ii) participate
in charitable, religious, civic, community, industry or trade organizations or associations, and (iii) serve on the board of directors
of not-for-profit or tax-exempt organizations, in each case, subject to compliance with this Agreement and provided that such
activities do not materially interfere with Executive’s performance of Executive’s duties and responsibilities hereunder.
Executive agrees to observe and comply with the rules and policies of the Company as adopted by the Company from time to time,
in each case as amended from time to time, as set forth in writing, and as delivered or made available to Executive (each, a “Policy”).

 

     

     

    

 

2.            Compensation
and Related Matters.

 

(a)            Annual Base Salary. During the
Term, Executive shall receive a base salary at a rate of $400,000 per annum, which shall be paid in accordance with the customary
payroll practices of the Company and its subsidiaries and shall be pro-rated for partial years of employment. Such annual base
salary shall be reviewed (and may be increased but not decreased) from time to time by the Board or the Compensation Committee
of the Board (the “Compensation Committee”) (such annual base salary, as it may be increased from time to time,
the “Annual Base Salary”).

 

(b)            Bonus.

 

(i)            Sign-on Bonus. Executive
shall receive a one-time special sign-on bonus payment of $125,000, payable on the Effective Date (the “Sign-on Bonus”),
it being understood that a portion of such Sign-on Bonus is intended to cover certain relocation and temporary living expenses
incurred by Executive in connection with his relocation to the New York, New York area. If Executive’s employment terminates
for Cause pursuant to Section 3(a)(iii) or as a result of Executive’s resignation without Good Reason pursuant to
Section 3(a)(v) within twelve (12) months following the Effective Date, Executive shall be required to repay to the Company
the full pretax amount of the Sign-on Bonus, and if such termination or resignation occurs after twelve (12) months following
the Effective Date but prior to twenty-four (24) months following the Effective Date, Executive shall be required to repay to
the Company 50% of the full pretax amount of the Sign-on Bonus.

 

(ii)            Annual Bonus. During
the Term and beginning with calendar year 2016, Executive will be eligible to participate in an annual incentive program established
by the Board or the Compensation Committee. Executive’s annual compensation under such incentive program (the “Annual
Bonus”) shall be initially targeted at a cash amount of 75% of his Annual Base Salary (the “Target Bonus”),
with the expectation that the Annual Bonus will scale upward and downward based on individual and/or actual Company performance,
as determined by the Board or the Compensation Committee. Beginning with calendar year 2017, the Target Bonus shall be subject
to adjustment, as determined by the Board or the Compensation Committee on account of any increased equity incentive opportunities;
provided, however, that no such adjustment may reduce the Target Bonus to below a targeted cash amount of 65% of the Annual Base
Salary without prior approval by Executive. The payment of any Annual Bonus pursuant to the incentive program shall be subject
to all applicable performance determinations as may be made annually by the Board or the Compensation Committee, and Executive’s
continued employment with the Company through the date of payment; provided, however, that if Executive’s employment terminates
due to death, Disability, without Cause, or for Good Reason pursuant to Sections 3(a)(i), (ii), (iv), or
(vi) Company shall pay to Executive (or Executive’s estate, if applicable), a pro-rated portion of the Annual Bonus
to which Executive would have been entitled had Executive’s employment not so terminated, based on the number of days Executive
was employed during such year, subject to (except in the event of Executive’s death) Executive’s execution and non-revocation
of a Release (as defined below). The Annual Bonus, if any, shall be paid to Executive no later than seventy-five (75) days following
the end of the calendar year to which the Annual Bonus relates. Any Annual Bonus earned for calendar year 2016 shall be pro-rated
based on the number of days beginning with the Effective Date through and including December 31, 2016.

 

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(c)            Equity Compensation.

 

(i)            On
or as soon as reasonably practicable following the Effective Date, Executive will be granted 90,000 restricted shares of the Company’s
common stock (the “Restricted Shares”), pursuant to the terms of the Company’s 2015 Long-Term Incentive
Plan (the “LTIP”) and a separate restricted stock agreement that will be entered into with Executive. The Restricted
Shares shall vest in equal installments on the first four anniversaries of the Effective Date, subject to continued employment
on the applicable vesting date and the terms of the restricted stock agreement; provided, however, that if Executive’s employment
terminates due to death, Disability, without Cause, or for Good Reason pursuant to Sections 3(a)(i), (ii), (iv),
or (vi), a portion of the Restricted Shares that otherwise would have vested following the Date of Termination had the
Executive remained employed shall vest and become nonforfeitable, as of immediately prior to the Date of Termination, such that:
(i) if the Date of Termination occurs on or before the one year anniversary of the Effective Date, Executive shall have vested
in 40% of the Restricted Shares (i.e., 36,000 shares) as of the Date of Termination (and the remaining 54,000 unvested shares
shall be forfeited), (ii) if the Date of Termination occurs after the one year anniversary of the Effective Date and on or before
the two year anniversary of the Effective Date, Executive shall have vested in 60% of the Restricted Shares (i.e., 54,000 shares)
as of the Date of Termination (and the remaining 36,000 unvested shares shall be forfeited), (iii) if the Date of Termination
occurs after the two year anniversary of the Effective Date and on or before the three year anniversary of the Effective Date,
Executive shall have vested in 80% of the Restricted Shares (i.e., 72,000 shares) as of the Date of Termination (and the remaining
18,000 unvested shares shall be forfeited), and (iv) if the Date of Termination occurs after the three year anniversary of the
Effective Date and before the Restricted Shares have fully vested on the four year anniversary of the Effective Date, Executive
shall have vested in 100% of the Restricted Shares (i.e., 90,000 shares) as of the Date of Termination (and no such shares shall
be forfeited). Notwithstanding the foregoing or any other provision in this Agreement or the restricted stock agreement covering
the Restricted Shares to the contrary: (x) upon a Change in Control (as defined in the LTIP) prior to full vesting of the Restricted
Shares, the value of the unvested amount of the Restricted Shares shall be retained in Executive’s favor under comparable
terms as Executive had prior to such Change in Control (which retention may be in the form of stock, cash, or a combination thereof);
and (y) if the Executive’s employment terminates without Cause or for Good Reason pursuant to Section 3(a)(iv) or
(vi), in either event within one year following the occurrence of a Change in Control, then 100% of the then unvested Restricted
Shares (or the comparable equivalent as provided for in (x) above) shall accelerate and vest and become non-forfeitable as of
immediately prior to the Date of Termination. For the avoidance of doubt, with respect to the Restricted Shares, in the event
of any conflict or inconsistency between the terms of this Agreement and the terms of the restricted stock agreement covering
such Restricted Shares, the terms of this Agreement shall control.

 

(ii)            In
addition, during the Term, Executive will be eligible to participate in and may receive additional awards under any of the Company’s
equity incentive award plans and programs as in effect from time to time, with any new equity incentive grants made in the sole
discretion of the Board or Compensation Committee and with the expectation that Executive will receive an annual equity incentive
grant under such equity incentive award plans or programs of the Company. The grant date fair value of Executive’s annual
equity incentive grant shall be initially targeted at 100% of his Annual Base Salary, it being understood that all equity incentive
grants are made in the sole discretion of the Board or Compensation Committee and may vary year-to-year based on benchmarking,
performance or other considerations as may be determined by the Board or Compensation Committee in its discretion. The grant date
fair value of Executive’s first annual equity incentive grant shall be pro-rated based on the number of days between the
Effective Date and the grant date of such equity incentive grant.

 

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(d)            Benefits. During the Term, Executive
shall be eligible to participate in employee benefit plans, programs and arrangements (including perquisite and fringe benefit
arrangements) maintained for executives of the Company (including standard health and welfare benefits and a 401(k) plan), consistent
with the terms thereof, and as such plans, programs and arrangements may be amended from time to time. In no event shall Executive
be eligible to participate in any severance plan or program of the Company, except as set forth in Section 4 of this Agreement.
During the Term, Executive shall be entitled to four (4) weeks paid vacation per year in accordance with the Company’s Policies.

 

(e)            Business Expenses. The Company
shall reimburse Executive for all reasonable travel and other business expenses incurred by Executive in the performance of Executive’s
duties to the Company in accordance with the Company’s expense reimbursement Policy and in compliance with Section 12(m).

 

(f)            Key Person Insurance. At any
time during the Term, the Company and its subsidiaries shall have the right to insure the life of Executive for the Company’s
and its subsidiaries’ sole benefit. The Company shall have the right to determine the amount of insurance and the type of
policy. Executive shall reasonably cooperate with the Company in obtaining such insurance by submitting to physical examinations,
by supplying all information reasonably required by any insurance carrier, and by executing all necessary documents reasonably
required by any insurance carrier, provided that any information provided to an insurance company or broker shall not be provided
to the Company without the prior written authorization of Executive. Executive shall incur no financial obligation in connection
with assisting the Company to obtain such insurance policy (including by executing any required document), and shall have no interest
in any such policy.

 

3.            Termination.

 

Executive’s employment hereunder may
be terminated by the Company or Executive, as applicable, without any breach of this Agreement under the following circumstances:

 

(a)            Circumstances.

 

(i)            Death. Executive’s
employment hereunder shall terminate upon Executive’s death.

 

(ii)          Disability. If Executive has incurred a Disability, as defined below, the Company may
terminate Executive’s employment.

 

(iii)         Termination for Cause.
The Company may terminate Executive’s employment for Cause, as defined below.

 

(iv)         Termination without Cause.
The Company may terminate Executive’s employment without Cause, which shall include a termination of Executive as a result
of the Company not renewing the Term pursuant to Section 1.

 

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(v)          Resignation
from the Company without Good Reason. Executive may resign Executive’s employment with the Company for any reason other
than for Good Reason (as defined below) or for no reason, which shall include a termination of Executive as a result of Executive
not renewing the Term pursuant to Section 1.

 

(vi)        Resignation
from the Company for Good Reason. Executive may resign Executive’s employment with the Company for Good Reason (as defined
below).

 

(b)            Notice of Termination. Any termination
of Executive’s employment by the Company or by Executive under this Section 3 (other than termination pursuant to
Section 3(a)(i)) shall be communicated by a written notice to the other Party (i) indicating the specific termination provision
in this Agreement relied upon, (ii) setting forth in reasonable detail the facts and circumstances claimed to provide a basis
for termination of Executive’s employment under the provision so indicated, if applicable, and (iii) specifying a Date of
Termination which, except in the case of a termination pursuant to Section 3(a)(iii), shall be at least forty-five (45)
days following the date of such notice (a “Notice of Termination”); provided, however, that the Company
may, in its sole discretion, instruct Executive to remain off the Company’s premises and perform no Company functions from
the date of such Notice of Termination through the Date of Termination, but only to the extent that the Company pays Executive
full compensation and benefits during such period. The failure by the Company to set forth in the Notice of Termination any fact
or circumstance which contributes to a showing of Cause shall not waive any right of the Company hereunder or preclude the Company
from asserting such fact or circumstance in enforcing the Company’s rights hereunder.

 

(c)            Company Obligations upon Termination.
Upon termination of Executive’s employment pursuant to any of the circumstances listed in Section 3, Executive (or
Executive’s estate) shall be entitled to receive the sum of: (i) the portion of Executive’s Annual Base Salary earned
through the Date of Termination, but not yet paid to Executive; (ii) any vacation time that has been accrued but unused in accordance
with the Company’s Policies; (iii) any reimbursements owed to Executive pursuant to Section 2(e); and (iv) any amount
accrued and arising from Executive’s participation in, or benefits accrued under, any employee benefit plans, programs or
arrangements, which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs
or arrangements (collectively, the “Company Arrangements”). Except as otherwise expressly required by law (e.g.,
COBRA), as specifically provided herein, or in a separate written agreement governing any of Executive’s equity-related
compensation, all of Executive’s rights to salary, severance, benefits, bonuses and other compensatory amounts hereunder
(if any) shall cease upon the termination of Executive’s employment hereunder. In the event that Executive’s employment
is terminated by the Company for any reason, Executive’s sole and exclusive remedy shall be to receive the payments and
benefits described in this Section 3(c) and Section 4, as applicable, along with the rights provided under the fourth
sentence of Section 2(b)(ii) and the vesting acceleration provisions in the second and third sentences of Section 2(c).

 

(d)            Deemed Resignation. Upon termination
of Executive’s employment for any reason, Executive shall be deemed to have resigned from all offices and directorships,
if any, then held with the Company or any of its subsidiaries.

 

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4.            Severance
Payments.

 

(a)            Termination for Cause, or Termination
Upon Death, Disability or Resignation from the Company without Good Reason. If Executive’s employment shall terminate
as a result of Executive’s death pursuant to Section 3(a)(i) or Disability pursuant to Section 3(a)(ii), pursuant
to Section 3(a)(iii) for Cause, or pursuant to Section 3(a)(v) for Executive’s resignation from the Company
without Good Reason, then Executive shall not be entitled to any severance payments or benefits, except as provided in Section
3(c) and Section 2(c) (with respect to the Restricted Shares upon termination upon death or Disability).

 

(b)            Termination without Cause or Resignation
from the Company for Good Reason. If Executive’s employment terminates without Cause pursuant to Section 3(a)(iv)
or pursuant to Section 3(a)(vi) for Executive’s resignation from the Company for Good Reason, then, subject to
Executive signing on or before the 21st day following the Date of Termination, and not revoking during any subsequent
revocation period contained therein, a release of claims substantially in the form attached as Exhibit A to this Agreement
(the “Release”), and Executive’s continued compliance with Sections 6 and 7, Executive shall receive,
in addition to payments and benefits set forth in Section 3(c), (i) an amount equal to his Annual Base Salary, multiplied
by a fraction, the numerator of which is equal to the number of months in the Severance Period and the denominator of which is
12, payable in the form of salary continuation in regular installments during the Severance Period, at the same time and in the
same manner as the Annual Base Salary would have been paid had Executive remained in active employment during the Severance Period,
in accordance with the Company’s normal payroll practices, and (ii) if Executive timely elects continued medical, dental
or vision coverage under one or more of the Company’s group medical, dental or vision plans pursuant to the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), then the Company shall directly pay, or reimburse
Executive for, the COBRA premiums for Executive and Executive’s covered dependents under such plans during the period commencing
on the Date of Termination and ending at the end of the Severance Period. Notwithstanding the foregoing, if the Company determines
that it cannot provide the COBRA benefit required by the foregoing subclause (ii) without potentially violating applicable law
(including Section 2716 of the Public Health Service Act) or incurring an excise tax, the Company shall in lieu thereof provide
to Executive a monthly payment in an after-tax amount equal to the monthly COBRA premium that Executive would be required to pay
to continue Executive’s and Executive’s covered dependents’ group health coverage in effect on the Date of Termination,
which amount shall be based on the premium for the first month of COBRA coverage. For purposes of this Section 4(b), the
“Severance Period” shall mean: six (6) months if the Date of Termination occurs prior to the two-year anniversary
of the Effective Date; nine (9) months if the Date of Termination occurs on or after the two-year anniversary of the Effective
Date but prior to the three-year anniversary of the Effective Date; or twelve (12) months if the Date of Termination occurs on
or after the three-year anniversary of the Effective Date.

 

(c)            Survival. Notwithstanding anything
to the contrary in this Agreement, the provisions of Sections 4 through 10 and Section 12 will survive
the termination of Executive’s employment and the expiration or termination of the Term.

 

5.            Parachute
Payments.

 

(a)            It is the objective of this Agreement
to maximize Executive’s net after-tax benefit if payments or benefits provided under this Agreement are subject to excise
tax under Section 4999 of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder
(the “Code”). Notwithstanding any other provisions of this Agreement, in the event that any payment or benefit
by the Company or otherwise to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant
to the terms of this Agreement or otherwise (all such payments and benefits, including the payments under Section 4(b)
hereof, being hereinafter referred to as the “Total Payments”), would be subject (in whole or in part) to the
excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Total Payments shall be reduced
to the extent necessary so that no portion of the Total Payments shall be subject to the Excise Tax, but only if (i) the net amount
of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income and employment
taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions
attributable to such reduced Total Payments), is greater than or equal to (ii) the net amount of such Total Payments without such
reduction (but after subtracting the net amount of federal, state and local income and employment taxes on such Total Payments
and the amount of the Excise Tax to which Executive would be subject in respect of such unreduced Total Payments and after taking
into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments).

 

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(b)            The Total Payments shall be reduced
by the Company in the following order: (i) reduction of any cash severance payments otherwise payable to Executive that are exempt
from Section 409A of the Code (“Section 409A”), (ii) reduction of any other cash payments or benefits otherwise
payable to Executive that are exempt from Section 409A, but excluding any payments attributable to the acceleration of vesting
or payments with respect to any equity award with respect to the Company’s common stock that is exempt from Section 409A,
(iii) reduction of any other payments or benefits otherwise payable to Executive on a pro-rata basis or such other manner that
complies with Section 409A, but excluding any payments attributable to the acceleration of vesting and payments with respect to
any equity award with respect to the Company’s common stock that are exempt from Section 409A, and (iv) reduction of any
payments attributable to the acceleration of vesting or payments with respect to any other equity award with respect to the Company’s
common stock that are exempt from Section 409A.

 

(c)            All determinations regarding the application
of this Section 5 shall be made by an accounting firm with experience in performing calculations regarding the applicability
of Section 280G of the Code and the Excise Tax selected by the Company and acceptable to Executive (“Independent Advisors”),
a copy of which report and all worksheets and background materials relating thereto shall be provided to Executive. For purposes
of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (i) no portion of the Total
Payments the receipt or enjoyment of which Executive shall have waived at such time and in such manner as not to constitute a
“payment” within the meaning of Section 280G(b) of the Code shall be taken into account; (ii) no portion of the Total
Payments shall be taken into account which, in the opinion of the Independent Advisors, does not constitute a “parachute
payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code)
and, in calculating the Excise Tax, no portion of such Total Payments shall be taken into account which, in the opinion of Independent
Advisors, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the
Code, in excess of the “base amount” (as defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation;
and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined
by the Independent Advisors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. The costs of obtaining
such determination and all related fees and expenses (including related fees and expenses incurred in any later audit) shall be
borne solely by the Company.

 

6.            Competition;
Non-disparagement. Executive acknowledges
that Executive has been provided with Confidential Information (as defined below) and, during the Term, the Company from time
to time will provide Executive with access to Confidential Information. Ancillary to the rights provided to Executive as set forth
in this Agreement and the Company’s provision of Confidential Information, and Executive’s agreements regarding the
use of same, in order to protect the value of any Confidential Information, the Company and Executive agree to the following provisions
against unfair competition, which Executive acknowledges represent a fair balance of the Company’s rights to protect its
business and Executive’s right to pursue employment:

 

(a)            Executive shall not, at any time during
the Restriction Period (as defined below), directly or indirectly engage in, have any equity interest in, interview for a potential
employment or consulting relationship with or manage, provide services to or operate any person, firm, corporation, partnership
or business (whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise)
that engages in any business which directly competes with any portion of the Business (as defined below) anywhere in the world.
Nothing herein shall prohibit Executive from being a passive owner of not more than 5% of the outstanding equity interest in any
entity that is publicly traded, so long as Executive has no active participation in the business of such entity.

 

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(b)            Except in furtherance of his duties
hereunder during the Term, Executive shall not, at any time during the Restriction Period, directly or indirectly, (i) solicit
any customers, clients or suppliers of the Company where such solicitation could reasonably be expected to cause such customer,
client or supplier of the Company to terminate, reduce the scope of or otherwise negatively change its, his or her relationship
with the Company or (ii) solicit, with respect to hiring, any employee or independent contractor of the Company or any person
employed or engaged by the Company at any time during the 12-month period immediately preceding the Date of Termination.

 

(c)            In the event the terms of this Section
6 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too great
a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it will be
interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical area
as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined
by such court in such action.

 

(d)            As used in this Section 6, (i)
the term “Company” shall include the Company and its direct and indirect subsidiaries; (ii) the term “Business”
shall mean the business of the Company, as such business is conducted as of the Effective Date or may be expanded or altered by
the Company during the Term, in any case that represents more than 10% of the Company’s gross annual revenues, and shall
include any type of marine-based expeditions; and (iii) the term “Restriction Period” shall mean the period
beginning on the Effective Date and ending on the date 24 months following the Date of Termination.

 

(e)            Each Party to this Agreement (which,
in the case of the Company, shall include its officers and the members of the Board) agrees, during the Term and thereafter, to
refrain from Disparaging (as defined below) the other Party and its affiliates. Nothing in this paragraph shall preclude any Party
from making truthful statements that are reasonably necessary to comply with applicable law, regulation or legal process, or to
defend or enforce a Party’s rights under this Agreement. For purposes of this Agreement, “Disparaging”
means making remarks, comments or statements, whether written or oral, that impugn the character, integrity, reputation or abilities
of the person or entity being disparaged.

 

7.            Nondisclosure
of Proprietary Information.

 

(a)            Except in connection with the faithful
performance of Executive’s duties hereunder or pursuant to Section 7(c) or (e), Executive shall, in perpetuity, maintain
in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for Executive’s
benefit or the benefit of any person, firm, corporation or other entity (other than the Company) any confidential or proprietary
information or trade secrets of or relating to the Company (including business plans, business strategies and methods, acquisition
targets, intellectual property in the form of patents, trademarks and copyrights and applications therefor, ideas, inventions,
works, discoveries, improvements, information, documents, formulae, practices, processes, methods, developments, source code,
modifications, technology, techniques, data, programs, other know-how or materials, owned, developed or possessed by the Company,
whether in tangible or intangible form, information with respect to the Company’s operations, processes, products, inventions,
business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices,
contractual relationships, regulatory status, prospects and compensation paid to employees or other terms of employment) (collectively,
the “Confidential Information”), or deliver to any person, firm, corporation or other entity any document,
record, notebook, computer program or similar repository of or containing any such Confidential Information. The Parties hereby
stipulate and agree that, as between them, any item of Confidential Information is important, material and confidential and affects
the successful conduct of the businesses of the Company (and any successor or assignee of the Company). Notwithstanding the foregoing,
Confidential Information shall not include any information that has been published in a form generally available to the public
or is publicly available or has become public knowledge prior to the date Executive proposes to disclose or use such information,
provided that such publishing or public availability or knowledge of the Confidential Information shall not have resulted from
Executive directly or indirectly breaching Executive’s obligations under this Section 7(a) or any other similar provision
by which Executive is bound, or from any third-party known by Executive to be breaching a provision similar to that found under
this Section 7(a). For the purposes of the previous sentence, Confidential Information will not be deemed to have been
published or otherwise disclosed merely because individual portions of the information have been separately published, but only
if material features comprising such information have been published or become publicly available.

 

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(b)            Upon termination of Executive’s
employment with the Company for any reason, Executive will promptly deliver to the Company all correspondence, drawings, manuals,
letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents or property concerning
the Company’s customers, business plans, marketing strategies, products, property or processes, provided that Executive
may retain his compensation-related information, personal journal and rolodex, address book, appointment book, calendar and/or
contact list.

 

(c)            Notwithstanding Section 7(a),
Executive may respond to a lawful and valid subpoena or other legal process but shall give the Company the earliest practicable
notice thereof, shall, as much in advance of the return date as practicable, make available to the Company and its counsel the
documents and other information sought and shall assist such counsel at Company’s sole expense in resisting or otherwise
responding to such process, in each case to the extent permitted by applicable laws or rules.

 

(d)            As used in this Section 7 and
Section 8, the term “Company” shall include the Company and its direct and indirect subsidiaries.

 

(e)            Nothing in this Agreement shall prohibit
Executive from (i) disclosing information and documents when required by law, subpoena or court order (subject to the requirements
of Section 7(c) above), (ii) disclosing information and documents to Executive’s attorney, financial or tax adviser
for the purpose of securing legal, financial or tax advice, (iii) disclosing Executive’s post-employment restrictions in
this Agreement in confidence to any potential new employer, or (iv) retaining, at any time, Executive’s personal correspondence,
Executive’s personal contacts and documents related to Executive’s own personal benefits, entitlements and obligations.

 

8.            Inventions.

 

All rights to discoveries, inventions, improvements
and innovations (including all data and records pertaining thereto) related to the business of the Company, whether or not patentable,
copyrightable, registrable as a trademark, or reduced to writing, that Executive may discover, invent or originate during Executive’s
period of service with the Company or its subsidiaries or its or their predecessors, either alone or with others and whether or
not during working hours or by the use of the facilities of the Company (“Inventions”), shall be the exclusive
property of the Company. Executive shall promptly disclose all Inventions to the Company, shall execute at the request of the
Company any assignments or other documents the Company may deem reasonably necessary to protect or perfect its rights therein,
and shall assist the Company, upon reasonable request and in all instances at the Company’s sole expense, in obtaining,
defending and enforcing the Company’s rights therein. Executive hereby appoints the Company as Executive’s attorney-in-fact
to execute on Executive’s behalf any assignments or other documents reasonably deemed necessary by the Company to protect
or perfect its rights to any Inventions.

 

    	 	9	 

     

    

 

9.            Injunctive
Relief.

 

It is recognized and acknowledged by Executive
that a breach of the covenants contained in Sections 6, 7 and 8 could cause irreparable damage to Company and its goodwill,
the exact amount of which may be difficult or impossible to ascertain, and that the remedies at law for any such breach may be
inadequate. Accordingly, Executive agrees that in the event of a breach of any of the covenants contained in Sections 6, 7
and 8, in addition to any other remedy which may be available at law or in equity, the Company will be entitled to seek specific
performance and injunctive relief without the requirement to post bond.

 

10.          Assignment
and Successors.

 

None of the Company’s rights or obligations
may be assigned or transferred by the Company, except that the Company shall assign its rights and obligations under this Agreement
to any successor to all or substantially all of the business or the assets of the Company (by merger or otherwise), which successor
must assume all of Company’s obligations hereunder. This Agreement shall be binding upon and inure to the benefit of the
Company, Executive and their respective successors, assigns, legal representatives, executors, administrators, heirs, distributees,
devisees, and legatees, as applicable. None of Executive’s rights or obligations may be assigned or transferred by Executive,
other than Executive’s rights to payments hereunder, which may be transferred only by will or operation of law. Notwithstanding
the foregoing, Executive shall be entitled, to the extent permitted under applicable law and applicable Company Arrangements,
to select and change a beneficiary or beneficiaries to receive compensation hereunder following Executive’s death by giving
written notice thereof to the Company.

 

11.          Certain
Definitions.

 

(a)            Cause. The Company shall have
“Cause” to terminate Executive’s employment hereunder upon Executive’s:

 

(i)            willful misconduct and mismanagement
by Executive that is materially injurious to the Company;

 

(ii)           refusal in any material respect
to carry out or comply with any lawful and reasonable directive of the Board consistent with the terms of this Agreement;

 

(iii)          conviction, plea of no contest,
or plea of nolo contendere for any felony;

 

(iv)          unlawful use (including being
under the influence) or possession of illegal drugs on the Company’s (or any of its subsidiaries’) premises while
performing Executive’s duties and responsibilities under this Agreement;

 

(v)           commission of an act of fraud,
embezzlement, willful misappropriation, willful misconduct, or breach of fiduciary duty, in any case that results in material
harm to the Company or any of its affiliates;

 

    	 	10	 

     

    

 

(vi)          material violation of any
provision of this Agreement or a material Policy; or

 

(vii)    
    willful or prolonged, and unexcused, absence from work (other than by reason of Executive’s
disability due to physical or mental illness).

 

For purposes of this definition, an action
or inaction is only “willful” if it is done or omitted by Executive without a good faith belief that such action or
inaction is in the best interests of the Company.

 

Notwithstanding the foregoing, no termination
for Cause will have occurred unless and until the Company has: (a) provided Executive, within thirty (30) days of the Company
first becoming aware of the facts or circumstances constituting Cause, written-notice stating with specificity the applicable
facts and circumstances underlying such finding of Cause; and (b) provided Executive with an opportunity to cure the same within
thirty (30) days after the receipt of such notice. Any termination for Cause must occur within ninety (90) days of the Company
first becoming aware of the facts or circumstances constituting Cause.

 

(b)            Date of Termination. “Date
of Termination” shall mean (i) if Executive’s employment is terminated by Executive’s death, the date of
Executive’s death; and (ii) if Executive’s employment is terminated pursuant to Section 3(a)(ii) – (vi),
the date indicated in the Notice of Termination.

 

(c)            Disability. “Disability”
shall mean, at any time the Company or any of its affiliates sponsors a long-term disability plan for the Company’s employees
and covering Executive, “disability” as defined in such long-term disability plan for the purpose of determining a
participant’s eligibility for benefits, provided, however, if the long-term disability plan contains multiple definitions
of disability, “Disability” shall refer to that definition of disability which, if Executive qualified for such disability
benefits, would provide coverage for the longest period of time. The determination of whether Executive has a Disability shall
be made by the person or persons required to make disability determinations under the long-term disability plan. At any time no
such long-term disability plan is in effect, Disability shall mean Executive’s inability to perform, with or without reasonable
accommodation, the essential functions of Executive’s position hereunder for a total of three months during any six-month
period as a result of incapacity due to mental or physical illness as determined by a physician selected by the Company or its
insurers and acceptable to Executive or Executive’s legal representative, with such agreement as to acceptability not to
be unreasonably withheld or delayed; provided, however, that Executive may have his own physician present at any examinations
conducted by such Company-selected physician. Any refusal by Executive to submit to a reasonable medical examination at the Company’s
sole expense for the purpose of determining Disability shall be deemed to constitute conclusive evidence of Executive’s
Disability.

 

(d)            Good Reason. Executive’s
resignation will be for “Good Reason” if Executive resigns following the occurrence of any of the following
events: (i) a material decrease in Executive’s Annual Base Salary (from the highest level in effect during the Term); (ii)
a material diminution in Executive’s authority, duties or responsibilities, including a requirement that the Executive report
on a permanent basis to any individual other than the Company’s principal executive officer or the Board; (iii) a relocation
of the location at which Executive is required primarily to perform his services for the Company outside of the greater New York
City area; or (iv) any other action or inaction that constitutes a material breach by the Company of this Agreement or any other
material agreement entered into between the Executive and the Company. Notwithstanding the foregoing, no Good Reason will have
occurred unless and until Executive has: (a) provided the Company, within ninety (90) days of Executive’s first knowledge
of the occurrence of the facts and circumstances underlying the Good Reason event, written-notice stating with specificity the
applicable facts and circumstances underlying such finding of Good Reason; and (b) provided the Company with an opportunity to
cure the same within thirty (30) days after the receipt of such notice.

 

    	 	11	 

     

    

 

12.          Miscellaneous
Provisions.

 

(a)            Governing Law. This Agreement
shall be governed, construed, interpreted and enforced in accordance with its express terms, and otherwise in accordance with
the substantive laws of the State of New York without reference to the principles of conflicts of law of the State of New York
or any other jurisdiction, and where applicable, the laws of the United States. Any suit brought hereon shall be brought in the
state or federal courts sitting in the Borough of Manhattan within the City of New York, the Parties hereby waiving any claim
or defense that such forum is not convenient or proper. Each Party hereby agrees that any such court shall have in personam jurisdiction
over it and consents to service of process in any manner authorized by New York law.

 

(b)            Validity. The invalidity or unenforceability
of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect.

 

(c)            Notices. Any notice, request,
claim, demand, document and other communication hereunder to any Party shall be effective upon receipt (or refusal of receipt)
and shall be in writing and delivered personally or sent by facsimile or nationally-recognized overnight courier service (FedEx,
UPS), as follows:

 

		(i)	If
                                         to the Company, the Chief Executive Officer or the General Counsel at its headquarters,

 

and copies to:

 

Latham & Watkins LLP

555 Eleventh Street, N.W.

Washington, DC 20004

Attention: Paul Sheridan and Adam Kestenbaum

 

(ii)         If to Executive, at the last
address that the Company has in its personnel records for Executive.

 

(iii)        At any other address as
any Party shall have specified by notice in writing to the other Party.

 

(d)            Counterparts. This Agreement
may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together will constitute
one and the same Agreement. Signatures delivered by facsimile or email shall be deemed effective for all purposes.

 

(e)            Entire Agreement. The terms of
this Agreement are intended by the Parties to be the final expression of their agreement with respect to the subject matter hereof
and supersede all prior understandings and agreements, whether written or oral. The Parties further intend that this Agreement
shall constitute the complete and exclusive statement of their terms and that no extrinsic evidence whatsoever may be introduced
in any judicial, administrative, or other legal proceeding to vary the terms of this Agreement.

 

    	 	12	 

     

    

 

(f)            Certain
Indemnity Rights; D&O Coverage. During and after the Term, the Company shall (i)
provide Executive with directors’ and officers’ liability insurance coverage at least as favorable as that applicable
to any then-current executive officer or director of the Company, and (ii) indemnify Executive and his legal representatives to
the fullest extent permitted by the laws of the State of Delaware against all damages, costs, expenses and other liabilities reasonably
incurred or sustained by Executive or his legal representatives in connection with any suit, action or proceeding to which Executive
or his legal representatives may be made a party by reason of Executive being or having been a director or officer of the Company
or any of its subsidiaries, or having served in any other capacity or taken any other action purportedly on behalf of or at the
request of the Company or any of its subsidiaries.

 

(g)            Amendments; Waivers. This Agreement
may not be modified, amended, or terminated except by an instrument in writing, signed by Executive and a duly authorized representative
of the Company. By an instrument in writing similarly executed, Executive or a duly authorized representative of the Company may
waive compliance by the other Party with any specifically identified provision of this Agreement that such other Party was or
is obligated to comply with or perform; provided, however, that such waiver shall not operate as a waiver of, or estoppel
with respect to, any other or subsequent failure. No failure to exercise and no delay in exercising any right, remedy, or power
hereunder shall preclude any other or further exercise of any other right, remedy, or power provided herein or by law or in equity.

 

(h)            No Inconsistent Actions. The
Parties hereto shall not voluntarily undertake or fail to undertake any action or course of action inconsistent with the provisions
or essential intent of this Agreement. Furthermore, it is the intent of the Parties hereto to act in a fair and reasonable manner
with respect to the interpretation and application of the provisions of this Agreement.

 

(i)            Construction. This Agreement
shall be deemed drafted equally by both Parties. Its language shall be construed as a whole and according to its fair meaning.
Any presumption or principle that the language is to be construed against any Party shall not apply. The headings in this Agreement
are only for convenience and are not intended to affect construction or interpretation. Any references to paragraphs, subparagraphs,
sections or subsections are to those parts of this Agreement, unless the context clearly indicates to the contrary. Also, unless
the context clearly indicates to the contrary, (a) the plural includes the singular and the singular includes the plural; (b)
“any,” “all,” “each,” or “every” means “any and all,” and “each
and every”; (c) “includes” and “including” are each “without limitation”; (d) “herein,”
“hereof,” “hereunder” and other similar compounds of the word “here” refer to the entire Agreement
and not to any particular paragraph, subparagraph, section or subsection; and (e) all pronouns and any variations thereof shall
be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the entities or persons referred
to may require.

 

(j)            Arbitration. Any controversy,
claim or dispute arising out of or relating to this Agreement shall be settled solely and exclusively by a binding arbitration
process administered by JAMS/Endispute in New York, New York. Such arbitration shall be conducted in accordance with the then-existing
JAMS/Endispute Rules of Practice and Procedure, with the following exceptions if in conflict: (a) one arbitrator who is a retired
judge shall be chosen by JAMS/Endispute; (b) the Company will pay the expenses and fees of the arbitrator, together with other
expenses of the arbitration incurred or approved by the arbitrator; and (c) arbitration may proceed in the absence of any Party
if written notice (pursuant to the JAMS/Endispute rules and regulations) of the proceedings has been given to such Party. Each
Party shall bear its own attorney’s fees and expenses; provided that the arbitrator may assess the prevailing Party’s
fees and costs against the non-prevailing Party as part of the arbitrator’s award. The Parties agree to abide by all decisions
and awards rendered in such proceedings. Such decisions and awards rendered by the arbitrator shall be final and conclusive. All
such controversies, claims or disputes shall be settled in this manner in lieu of any action at law or equity; provided, however,
that nothing in this subsection shall be construed as precluding the bringing an action for injunctive relief or specific performance
as provided in this Agreement. This dispute resolution process and any arbitration hereunder shall be confidential and neither
any Party nor the neutral arbitrator shall disclose the existence, contents or results of such process without the prior written
consent of all Parties, except where necessary or compelled in a court to enforce this arbitration provision or an award from
such arbitration or otherwise in a legal proceeding. If JAMS/Endispute no longer exists or is otherwise unavailable, the Parties
agree that the American Arbitration Association (“AAA”) shall administer the arbitration in accordance with
its then-existing rules as modified by this subsection. In such event, all references herein to JAMS/Endispute shall mean AAA.
Notwithstanding the foregoing, Executive and the Company each have the right to resolve any issue or dispute over intellectual
property rights by court action instead of arbitration.

 

    	 	13	 

     

    

 

(k)            Enforcement. If any provision
of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the Term, such
provision shall be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable
provision had never comprised a portion of this Agreement; and the remaining provisions of this Agreement shall remain in full
force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement.
Furthermore, in lieu of such illegal, invalid or unenforceable provision there shall be added automatically as part of this Agreement
a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and
enforceable, provided that the economic benefit to any Party is not diminished by such replacement.

 

(l)            Withholding. The Company shall
be entitled to withhold from any amounts payable under this Agreement any federal, state, local or foreign withholding or other
taxes or charges which the Company is required to withhold.

 

(m)          Section 409A.

 

(i)            General. The intent
of the Parties is that the payments and benefits under this Agreement comply with or be exempt from Section 409A and, accordingly,
to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.

 

(ii)           Separation from Service.
Notwithstanding anything in this Agreement to the contrary, any compensation or benefits payable under this Agreement that
is considered nonqualified deferred compensation under Section 409A and is designated under this Agreement as payable upon Executive’s
termination of employment shall be payable only upon Executive’s “separation from service” with the Company
within the meaning of Section 409A (a “Separation from Service”) and, except as provided below, any such compensation
described in Section 4(b) shall not be paid, or, in the case of installments, shall not commence payment, until the thirtieth
(30th) day following Executive’s Separation from Service (the “First Payment Date”). Any installment
payments that would have been made to Executive during the thirty (30) day period immediately following Executive’s Separation
from Service but for the preceding sentence shall be paid to Executive on the First Payment Date and the remaining payments shall
be made as provided in this Agreement.

 

(iii)          Specified Employee.
Notwithstanding anything in this Agreement to the contrary, if Executive is deemed by the Company at the time of Executive’s
Separation from Service to be a “specified employee” for purposes of Section 409A, to the extent delayed commencement
of any portion of the benefits to which Executive is entitled under this Agreement is required in order to avoid a prohibited
distribution under Section 409A, such portion of Executive’s benefits shall not be provided to Executive prior to the earlier
of (A) the expiration of the six-month period measured from the date of Executive’s Separation from Service with the Company
or (B) the date of Executive’s death. Upon the first business day following the expiration of the applicable Section 409A
delay period, all payments deferred pursuant to the preceding sentence shall be paid in a lump sum to Executive (or Executive’s
estate or beneficiaries), and any remaining payments due to Executive under this Agreement shall be paid as otherwise provided
herein.

 

    	 	14	 

     

    

 

(iv)         Expense Reimbursements.
To the extent that any reimbursements under this Agreement are subject to Section 409A, (A) any such reimbursements payable
to Executive shall be paid to Executive no later than December 31 of the year following the year in which the expense was incurred,
provided that Executive submits Executive’s reimbursement request promptly following the date the expense is incurred, (B)
the amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year, other
than medical expenses referred to in Section 105(b) of the Code, and (C) Executive’s right to reimbursement under this Agreement
will not be subject to liquidation or exchange for another benefit.

 

(v)          Installments. Executive’s
right to receive any installment payments under this Agreement, including any salary continuation payments that are payable on
Company payroll dates, shall be treated as a right to receive a series of separate payments and, accordingly, each such installment
payment shall at all times be considered a separate and distinct payment as permitted under Section 409A. Except as otherwise
permitted under Section 409A, no payment hereunder shall be accelerated or deferred unless such acceleration or deferral would
not result in additional tax, interest or penalties pursuant to Section 409A.

 

13.          Executive
Acknowledgement.

 

Executive acknowledges that Executive has read
and understands this Agreement, is fully aware of its legal effect, has not acted in reliance upon any representations or promises
made by the Company other than those contained in writing herein, and has entered into this Agreement freely based on Executive’s
own judgment.

 

[Signature Page Follows]

 

    	 	15	 

     

    

 

IN WITNESS WHEREOF, the Parties have executed
this Agreement on the date and year first above written. 

 

	 	COMPANY
	 	 	 
	 	By:	/s/
    Mark Ein
	 	 	Name:  Mark
    Ein
	 	 	Title:    Chairman
	 	 	 
	 	EXECUTIVE
	 	 	 
	 	By:	/s/
    Philip Auerbach
	 		Philip Auerbach

 

[Signature Page to Employment Agreement]

 

    

     

    

 

EXHIBIT A

 

Separation Agreement and Release

 

This Separation Agreement and Release (this
“Agreement”) is made by and between Philip Auerbach (“Executive”) and Lindblad Expeditions
Holdings, Inc. (the “Company”) (collectively, referred to as the “Parties” or individually
referred to as a “Party”). Capitalized terms used but not defined in this Agreement shall have the meanings
set forth in the Employment Agreement (as defined below).

 

WHEREAS, the Parties have previously entered
into that certain Employment Agreement, dated as of March__, 2016 (the “Employment Agreement”); and

 

WHEREAS,
in connection with Executive’s termination of employment with the Company effective ________, 20__, the Parties wish to
resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that Executive may have
against the Company and any of the Releasees, as defined below, including, but not limited to, any and all claims arising out
of or in any way related to Executive’s employment with or separation from the Company or its subsidiaries or affiliates,
but, for the avoidance of doubt, nothing herein will be deemed to release any rights or remedies in connection with (i) Executive’s
ownership of vested equity securities, (ii) Executive’s right to indemnification or directors’ and officers’
liability insurance pursuant to contract or applicable law or, (iii) Executive’s rights under this Agreement or under the
Employment Agreement that expressly survive by its terms ((i) through (iii), collectively, the “Retained Claims”).

 

NOW,
THEREFORE, in consideration of the severance payments described in Section 4(b) of the Employment Agreement, which, pursuant to
the Employment Agreement, are conditioned on Executive’s execution and non-revocation of this Agreement, and in consideration
of the mutual promises made herein, the Company and Executive hereby agree as follows:

 

1.             Severance
Payments; Salary and Benefits. The Company agrees to provide Executive with the severance payments described in Section 4(b)
of the Employment Agreement, payable at the times set forth in, and subject to the terms and conditions of, the Employment Agreement.
In addition, to the extent not already paid, and subject to the terms and conditions of the Employment Agreement, the Company
shall pay or provide to Executive all other payments or benefits described in Section 3(c) of the Employment Agreement, subject
to and in accordance with the terms thereof.

 

2.            Release of Claims. Executive agrees that, other
than with respect to the Retained Claims, the foregoing consideration represents settlement in full of all outstanding obligations
owed to Executive by the Company, any of its direct or indirect subsidiaries and any of their current and former officers, directors,
equity holders, managers, employees, agents, investors, attorneys, shareholders, administrators, benefit plans, plan administrators,
insurers, trustees, divisions, and subsidiaries and predecessor and successor corporations and assigns (collectively, the “Releasees”).
Executive, on his own behalf and on behalf of any of Executive’s heirs, family members, executors, agents, and assigns,
other than with respect to the Retained Claims, hereby and forever releases the Releasees from, and agrees not to sue concerning,
or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, or cause of action relating
to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Executive may possess against any
of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the date Executive
signs this Agreement, including, without limitation:

 

(a)            any and all claims relating to or arising from Executive’s
employment or service relationship with the Company or any of its direct or indirect subsidiaries and the termination of that
relationship;

 

    	 	A-1	 

     

    

 

(b)            any and all claims relating to, or arising from, Executive’s
right to purchase, or actual purchase of any shares of stock or other equity interests of the Company or any of its subsidiaries,
including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable
state corporate law, and securities fraud under any state or federal law;

 

(c)            any and all claims for wrongful discharge of employment;
termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied;
breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction
of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract
or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault;
battery; invasion of privacy; false imprisonment; conversion; and disability benefits;

 

(d)            any and all claims for violation of any federal, state,
or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991;
the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Credit Reporting Act;
the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security
Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; and the Sarbanes-Oxley Act
of 2002;

 

(e)            any and all claims for violation of the federal or any
state constitution; and

 

(f)             any and all claims arising out of any other laws and
regulations relating to employment or employment discrimination.

 

Executive agrees that the release set forth in this section shall
be and remain in effect in all respects as a complete general release as to the matters released. This release does not release
claims that cannot be released as a matter of law, including, but not limited to, Executive’s right to file a charge with
or participate in a charge by the Equal Employment Opportunity Commission, or any other local, state, or federal administrative
body or government agency that is authorized to enforce or administer laws related to employment, against the Company (with the
understanding that Executive’s release of claims herein bars Executive from recovering such monetary relief from the Company
or any Releasee), claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable
state law, claims to continued participation in certain of the Company’s group benefit plans pursuant to the terms and conditions
of COBRA, claims to any benefit entitlements vested as the date of separation of Executive’s employment, pursuant to written
terms of any employee benefit plan of the Company or its affiliates and Executive’s right under applicable law and any Retained
Claims. This release further does not release claims for breach of Section 3(c) or Section 4(b) of the Employment Agreement or
any rights you may have in your capacity as an equityholder in the Company.

 

    	 	A-2	 

     

    

 

3.             Acknowledgment of Waiver of Claims under ADEA.
Executive understands and acknowledges that Executive is waiving and releasing any rights Executive may have under the Age Discrimination
in Employment Act of 1967 (the “ADEA”), and that this waiver and release is knowing and voluntary. Executive
understands and agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after
the Effective Date of this Agreement. Executive understands and acknowledges that the consideration given for this waiver and
release is in addition to anything of value to which Executive was already entitled. Executive further understands and acknowledges
that Executive has been advised by this writing that: (a) Executive should consult with an attorney prior to executing this Agreement;
(b) Executive has 21 days within which to consider this Agreement; (c) Executive has 7 days following Executive’s execution
of this Agreement to revoke this Agreement pursuant to written notice to the Chief Executive Officer or General Counsel of the
Company; (d) this Agreement shall not be effective until after the revocation period has expired; and (e) nothing in this Agreement
prevents or precludes Executive from challenging or seeking a determination in good faith of the validity of this waiver under
the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal
law. In the event Executive signs this Agreement and returns it to the Company in less than the 21 day period identified above,
Executive hereby acknowledges that Executive has freely and voluntarily chosen to waive the time period allotted for considering
this Agreement.

 

4.             Severability. In the event that any provision
or any portion of any provision hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent
jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue in full force and effect without
said provision or portion of provision.

 

5.             No Oral Modification. This Agreement may only
be amended in a writing signed by Executive and a duly authorized officer of the Company.

 

6.             Governing Law; Notice; Counterparts; Dispute Resolution.
This Agreement shall be subject to the provisions of Sections 12(a), (c), (d) and (j) of the Employment Agreement.

 

7.             Effective Date. If Executive has attained or is
over the age of 40 as of the date of Executive’s termination of employment, then Executive has seven days after Executive
signs this Agreement to revoke it and this Agreement will become effective on the eighth day after Executive signed this Agreement,
so long as it has not been revoked by Executive before that date (the “Effective Date”). If Executive has not
attained the age of 40 as of the date of Executive’s termination of employment, then the Effective Date shall be the date
on which Executive signs this Agreement.

 

8.            Voluntary Execution of Agreement. Executive understands
and agrees that Executive executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of
the Company or any third party, with the full intent of releasing all of Executive’s claims against the Company and any
of the other Releasees to the extent set forth in this Agreement. Executive acknowledges that: (a) Executive has read this Agreement;
(b) Executive has not relied upon any representations or statements made by the Company that are not specifically set forth in
this Agreement; (c) Executive has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel
of his own choice or has elected not to retain legal counsel; (d) Executive understands the terms and consequences of this Agreement
and of the releases it contains; and (e) Executive is fully aware of the legal and binding effect of this Agreement.

 

[Signature Page Follows]

 

    	 	A-3	 

     

    

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

 

		EXECUTIVE
	 	 
	Dated:
    _______ 	         
	 	Philip
    Auerbach
	 	 	 
	 	COMPANY
	 	 	 
	Dated:
    _______	By:	         
	 		Name:

	 	 	Title:

 

 

 

A-4Exhibit

MONEYGRAM INTERNATIONAL, INC.
2005 OMNIBUS INCENTIVE PLAN,
AS AMENDED AND RESTATED EFFECTIVE MAY 8, 2015

2016 GLOBAL TIME-BASED RESTRICTED STOCK UNIT
AWARD AGREEMENT
This GLOBAL TIME-BASED RESTRICTED STOCK UNIT AWARD AGREEMENT (the “Agreement”) is made by and between MoneyGram International, Inc., a Delaware corporation (the “Company”), and ___________ (the “Participant”).  The grant date of this award is ___________ (the “Grant Date”).  
		
	1.
	Award.

The Company hereby grants to the Participant a time-based Restricted Stock Unit (an “RSU”) award covering ___________shares (the “Shares”) of Common Stock, $.01 par value per share, of the Company according to the terms and conditions as provided in this Agreement, including any country-specific appendix thereto (the “Appendix”), and in the Company’s 2005 Omnibus Incentive Plan, as amended and restated, effective May 8, 2015 (the “Plan”).  Each RSU represents the right to receive one Share, subject to the vesting requirements of this Agreement and the terms of the Plan.  The RSUs are granted under Section 6(c) of the Plan.  The RSUs are subject to appropriate adjustment as may be determined by the Committee from time to time in accordance with Section 8(c) of this Agreement.  A copy of the Plan will be furnished upon request of the Participant.  Each capitalized term used but not defined in this Agreement shall have the meaning assigned to that term in the Plan.
		
	2.
	Vesting.  

(a)Unless otherwise provided in this Agreement, the RSUs granted under this Agreement shall vest as follows, provided the Participant remains continuously employed by the Company or a Subsidiary from the Grant Date through each stated date (each a “Vesting Date”):
	
					
	Vesting Date 
	 
	Cumulative Percentage Vested

	1st Anniversary of Grant Date 
	 
	 
	33.3
	%

	2nd Anniversary of Grant Date
	 
	 
	66.6
	%

	3rd Anniversary of Grant Date
	 
	 
	100.0
	%

(b)The Participant shall have no rights to the Shares until the RSUs have vested.  Prior to settlement, the RSUs represent an unfunded and unsecured obligation of the Company.
(c)To the extent permissible under applicable local law, if the Participant commences working on a part-time basis, then the vesting schedule specified in Section 2(a) may be adjusted by the Company in its sole discretion.
(d)For purposes of this Agreement, “Subsidiary” shall mean any present or future “subsidiary corporation” of the Company, as defined in Section 424(f) of the Code.
(e)In the event the Participant would otherwise become vested in a fractional portion of an RSU (a “Fractional RSU”) based on the vesting terms set forth in Section 2(a), the Fractional RSU shall instead remain unvested until the final Vesting Date; provided, however, that if the Participant would otherwise vest in a subsequent Fractional RSU prior to the final Vesting Date for the RSUs and such Fractional RSU taken together with a previous Fractional RSU that remained unvested would equal a whole RSU, then such 

Fractional RSUs shall vest to the extent they equal a whole RSU.  Upon the final Vesting Date, the value of any remaining Fractional RSUs shall be rounded up to the nearest whole RSU.
3.Settlement of RSUs.  Any RSUs that vest shall be paid to the Participant solely in whole Shares on, or as soon as practicable after, the date the RSUs vest in accordance with Section 2 above (or, if sooner, Sections 5 or 6 below), but in any event, no later than March 15 of the calendar year following the calendar year of vesting.  
4.Restrictions on Transfer.
(a)Except as otherwise provided by the Plan or by the Committee, the RSUs shall not be transferable other than by will or by the laws of descent and distribution.  The RSUs may not be pledged, alienated, attached or otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance of the RSUs shall be void and unenforceable against the Company or any Subsidiaries.
(b)None of the Shares acquired pursuant to the RSU award shall be assigned, transferred, pledged, hypothecated, given away or in any other manner disposed of or encumbered, whether voluntarily or by operation of law, unless such transfer is in compliance with all applicable securities laws (including, without limitation, the United States Securities Act of 1933, as amended).
5.Effect of Involuntary Termination Following Change in Control.  Notwithstanding the vesting provisions contained in Section 2 above or Section 6 below, but subject to the other terms and conditions contained in this Agreement, from and after a Change in Control (as defined in Section 5(c) below) the following provisions shall apply:

(a)Notwithstanding the other provisions of this Section 5, if the RSUs are assumed or otherwise replaced in connection with a Change in Control and the Participant’s employment is terminated by the Company or any of its Subsidiaries without Cause (as defined in Section 5(d) below) or the Participant terminates his or her employment for Good Reason (as defined in Section 5(b) below) in each case within 12 months following the occurrence of such Change in Control but prior to the final Vesting Date, then all unvested RSUs subject to this award will automatically accelerate and become vested upon such termination of employment.
(b)“Good Reason” for purposes of this Agreement shall mean following a Change in Control:  (i) a material reduction in the Participant’s position or responsibilities from the Participant’s position or responsibilities in effect immediately prior to such Change in Control, excluding for this purpose an isolated, insubstantial or inadvertent action not taken in bad faith; (ii) a material reduction in the Participant’s base salary or target bonus opportunity, if any, as in effect immediately prior to such Change in Control, except in connection with an across-the-board reduction of not more than 10% applicable to similarly situated employees of the Company, or (iii) the reassignment, without the Participant’s consent, of the Participant’s place of work to a location more than 50 miles from the Participant’s place of work immediately prior to the Change in Control; provided that none of the events described in clauses (i), (ii) and (iii) shall constitute Good Reason hereunder unless (x) the Participant shall have given written notice to the Company of the Participant’s intent to terminate his or her employment with Good Reason within sixty (60) days following the occurrence of any such event and (y) the Company shall have failed to remedy such event within thirty (30) days of the Company’s receipt of such notice.  Failing such cure, a termination of employment by the Participant for Good Reason shall be effective on the day following the expiration of such cure period.
(c)“Change in Control” for the purposes of this Agreement shall mean:  (i) a sale, transfer or other conveyance or disposition, in any single transaction or series of transactions, of all or substantially all of the Company’s assets, (ii) the transfer of more than 50% of the outstanding securities of the Company, calculated on a fully-diluted basis, to an entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the United States Securities Exchange Act of 1934, as amended  (the “Exchange Act”)), or (iii) the merger, consolidation, reorganization, recapitalization or share exchange of the Company with another entity, in each case in clauses (ii) and (iii) above under circumstances in which the holders of the 

2

voting power of the outstanding securities of the Company, as the case may be, immediately prior to such transaction, together with such holders’ affiliates and related parties, hold less than 50% in voting power of the outstanding securities of the Company or the surviving entity or resulting entity, as the case may be, immediately following such transaction; provided, however, that the issuance of securities by the Company shall not, in any event, constitute a Change in Control, and for the avoidance of doubt a sale or other transfer or series of transfers of all or any portion of the securities of the Company held by the Investors and their affiliates and related parties shall not constitute a Change in Control unless such sale or transfer or series of transfers results in an entity or group (as defined in the Exchange Act) other than the Investors and their affiliates and related parties holding more than 50% in voting power of the outstanding securities of the Company.
For purposes hereof, “Investors” shall mean the “Investors” as defined in that certain Amended and Restated Purchase Agreement, dated March 17, 2008, by and between the Company and the other parties thereto, and their respective affiliates (not including the Company).
(d)“Cause” for purposes of this Agreement shall mean: (i) the Participant’s willful refusal to carry out, in all material respects, the reasonable and lawful directions of the person or persons to whom the Participant reports or of the Board that are within the Participant’s control and consistent with the Participant’s status with the Company or its Subsidiary and his or her duties and responsibilities (except for a failure that is attributable to the Participant’s illness, injury or Disability) for a period of 10 days following written notice by the Company or its Subsidiary to the Participant of such failure, (ii) fraud or material dishonesty in the performance of the Participant’s duties, (iii) an act or acts on the Participant’s part constituting (x) a felony under the laws of the United States or any state thereof or similar act under non-U.S. law for any non-U.S. Participant, (y) a misdemeanor involving moral turpitude or (z) a material violation of the securities laws of the United States or any state thereof or similar act under non-U.S.  law for any non-U.S. Participant, (iv) an indictment of the Participant for a felony under the laws of the United States or any state thereof or similar act under non-U.S. law for any non-U.S. Participant, (v) the Participant’s willful misconduct or gross negligence in connection with the Participant’s duties which could reasonably be expected to be injurious in any material respect to the financial condition or business reputation of the Company as determined in good faith by the Board or the Company, to the extent the Participant does not report to the Board, (vi) the Participant’s material breach of the Company’s Code of Conduct or any other code of conduct in effect from time to time to the extent applicable to the Participant, and which breach could reasonably be expected to have a material adverse effect on the Company  as determined in good faith by the Board or the Company, to the extent the Participant does not report to the Board, or (vii) the Participant’s breach of the Employee Trade Secret, Confidential Information and Post-Employment Restriction Agreement (or any similar agreement the Participant received from the Company) (the “Post-Employment Restriction Agreement”) which breach has an adverse effect on the Company or its Subsidiaries.
6.Effect of Termination of Employment.  Except as provided in this Section 6 and in Section 5 above or as otherwise may be determined by the Committee, if the Participant ceases to be an employee of the Company or any of its Subsidiaries prior to the final Vesting Date, the following actions shall occur:
(a)Termination for Cause; Resignation.  If the Participant’s employment with the Company or any of its Subsidiaries is terminated for Cause or the Participant resigns for any reason, including as a result of the Participant’s retirement, any RSUs that are not vested pursuant to Section 2 above as of the date of the Participant’s termination of employment shall be immediately forfeited.
(b)Involuntary Termination/Disability/Death.  If the Participant’s employment with the Company or any of its Subsidiaries is terminated without Cause or is terminated due to death or Disability 

3

(as defined in Section 6(c) below), then that portion of the unvested RSUs that would vest during the 12-month period following the date of such termination shall vest on the date of termination.  
(c)“Disability” for purposes of this Agreement shall mean that the Participant becomes physically or mentally incapacitated and is therefore unable for a period of six (6) consecutive months or for an aggregate of nine (9) months in any twenty-four (24) consecutive month period to perform his or her duties.  Any question as to the existence of the Disability of the Participant for purposes of this Agreement shall be determined in writing by a qualified independent physician selected by the Company.  The determination of Disability made in writing to the Company and the Participant shall be final and conclusive for all purposes of the Agreement.
(d)For purposes of this Agreement, the Participant shall cease to be continuously employed (whether or not later found to be invalid or in breach of any local employment law in the country where the Participant resides and/or is employed or the terms of the Participant’s employment or service agreement, if any) as of the date that the Participant is no longer actively providing services and will not be continuously employed for purposes of the Plan through any notice period mandated under an employment law or practice in the country where the Participant resides and/or is employed, even if otherwise applicable to the Participant’s employment benefits (e.g., continuous employment would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdictions where the Participant resides and/or is employed or the terms of the Participant’s employment or service agreement, if any); the Committee shall have the exclusive discretion to determine when the Participant is no longer continuously employed for purposes of the RSU award, and if the Participant is a U.S. taxpayer, such determination shall be made in accordance with Code Section 409A.
		
	7.
	Forfeiture and Repayment Provisions.

(a)Failure to properly execute the Agreement (and each other document required to be executed by the Participant in connection with the Participant’s receipt of the RSUs) in a timely manner following the Grant Date may result in the forfeiture of the RSUs, as determined in the sole discretion of the Company. 
(b)The right to vest in the RSUs shall be conditional upon the fact that the Participant has read and understood the forfeiture and repayment provisions set forth in this Section 7, that the Participant has not engaged in any misconduct or acts contrary to the Company as described below, and that the Participant has no intent to leave employment with the Company or any of its Subsidiaries for the purpose of engaging in any activity or providing any services which are contrary to the spirit and intent of the Post-Employment Restriction Agreement.
(c)The Company is authorized to suspend or terminate this RSU award prior to or after termination of employment if the Company reasonably determines that:
(i)The Participant engaged in any conduct agreed to be avoided pursuant to the Post-Employment Restriction Agreement; or 
(ii)During the Participant’s employment with the Company or any of its Subsidiaries, the Participant knowingly participated in misconduct that causes a misstatement of the financial statements of the Company or any of its Subsidiaries or misconduct which represents a material violation of any code of ethics of the Company applicable to the Participant or of the Code of Conduct or similar program of the Company; or
(iii)During the Participant’s employment with the Company or any of its Subsidiaries, the Participant was aware of and failed to report, as required by any code of ethics of the Company applicable to the Participant or by the Code of Conduct or similar program of the Company, misconduct that causes a misstatement of the financial statements of the Company or any of its Subsidiaries or misconduct which represents a material violation of any code of ethics of the Company applicable to the Participant or of the Code of Conduct or similar program of the Company; or

4

(iv)Such suspension or termination is permitted or required by any written clawback or recoupment policies that the Company, with the approval of the Board, may adopt, either prior to or following the Grant Date, and determine should apply to this Agreement, including any policy adopted to conform to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and rules promulgated thereunder by the Securities and Exchange Commission. 
(d)If, at any time after the RSUs have vested or have been settled, in whole or in part, the Company reasonably determines that any of the actions or inactions contemplated under Sections 7(c)(i) through 7(c)(iii) have occurred, then any gain (without regard to tax effects) realized by the Participant from such vesting shall be paid by the Participant to the Company. The Participant consents to the deduction from any amounts the Company or any of its Subsidiaries owes to the Participant to the extent of the amounts the Participant owes the Company under this Section 7(d), provided, that no such deduction shall be made to the extent it would result in additional taxes under Section 409A of the Code. 
8.Miscellaneous.
(a)Issuance of Shares.  Upon any vesting of the RSUs, and subject to the payment of any Tax-Related Items (as defined under Section 8(d) below), the Company shall deliver the Shares in book entry form at the times specified in Section 3 above.  The Shares acquired shall be registered in the name of the Participant, the Participant’s transferee, or if the Participant so requests, in writing at the time of vesting, jointly in the name of the Participant and another person with rights of survivorship. If the Participant dies, the Shares acquired shall be registered in the name of the person entitled to receive the Shares in accordance with the Plan. 
(b)Rights as Shareholder.  RSUs are not actual Shares, but rather, represent a right to receive Shares according to the terms and conditions set forth herein and the terms of the Plan.  Accordingly, the issuance of an RSU shall not entitle the Participant to any of the rights or benefits generally accorded to stockholders unless and until a Share is actually issued under Section 8(a) hereof. 
(c)Adjustments to Award.  
(i)In the event that the Company engages in a transaction such that any dividend or other distribution (whether in the form of cash, Shares, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company or other similar corporate transaction or event affects the Shares covered by the RSUs, in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under this Agreement, the terms of this RSU award (including, without limitation, the number and kind of Shares subject to this RSU award) shall be adjusted as set forth in Section 4(c) of the Plan. 
(ii)Upon a Change in Control, the Committee may, in its sole discretion, adjust the terms of this RSU award (including, without limitation, the number and kind of Shares subject to this RSU award) by taking any of the actions permitted under this Agreement and in accordance with Section 4(c) of the Plan.
(d)Responsibility for Taxes.  
(i)Regardless of any action the Company or the Participant’s employer (the “Employer”) takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related items related to the Participant’s participation in the Plan and legally applicable to the Participant (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains the Participant’s responsibility and may exceed the amount actually withheld by the Company or the Employer.  The Participant further acknowledges that the Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the RSUs, including, but not limited to, the grant, vesting or settlement of the RSUs, the issuance of Shares upon settlement of the RSUs, the subsequent sale of Shares acquired pursuant to such issuance and the receipt of any dividends and/or any Dividend Equivalents; and (2) do 

5

not commit to and are under no obligation to structure the terms of the grant or any aspect of the RSUs to reduce or eliminate the Participant’s liability for Tax-Related Items or achieve any particular tax result.  Further, if the Participant has become subject to tax in more than one jurisdiction, the Participant acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.
(ii)In this regard, the Participant authorizes the Company or its agent to satisfy the obligations with regard to all Tax-Related Items by withholding in Shares to be issued upon vesting/settlement of the RSUs.  In the event that such withholding in Shares is problematic under applicable tax or securities law or has materially adverse accounting consequences, by the Participant’s acceptance of the RSUs, the Participant authorizes and directs the Company and/or its agent to sell on the Participant’s behalf a whole number of Shares from those Shares issued to the Participant at vesting/settlement of the RSUs as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy the obligation for Tax-Related Items.
(iii)To avoid negative accounting treatment, the Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates, including maximum withholding rates, in which case the Participant will receive a refund of any over-withheld amount in cash and will have no entitlement to the equivalent in Shares.  If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, the Participant is deemed to have been issued the full number of Shares subject to the vested RSUs, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items due as a result of any aspect of the Participant’s participation in the Plan.
(iv)Finally, the Participant shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of the Participant’s participation in the Plan that cannot be satisfied by the means previously described.  The Company may refuse to issue or deliver the Shares or the proceeds of the sale of Shares if the Participant fails to comply with the Participant’s obligations in connection with the Tax-Related Items.
(e)Interpretations. This Agreement is subject in all respects to the terms of the Plan. A copy of the Plan is available upon the Participant’s request. Terms used herein which are defined in the Plan shall have the respective meanings given to such terms in the Plan, unless otherwise defined herein. In the event that any provision of this Agreement is inconsistent with the terms of the Plan, the terms of the Plan shall govern. Any question of administration or interpretation arising under this Agreement shall be determined by the Committee, and such determination shall be final, conclusive and binding upon all parties in interest.
(f)Nature of Grant.  In accepting the grant, the Participant acknowledges, understands and agrees that:
(i)the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time;
(ii)the grant of the RSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of restricted stock units, or benefits in lieu of restricted stock units, even if restricted stock units have been granted repeatedly in the past;
(iii)all decisions with respect to future RSU grants, if any, will be at the sole discretion of the Company;
(iv)the Participant’s participation in the Plan shall not create a right to further employment with the Employer and shall not interfere with the ability of the Employer to terminate the Participant’s employment or service relationship (if any) at any time;
(v)the Participant is voluntarily participating in the Plan;
(vi)the RSUs and the Shares subject to the RSUs are not intended to replace any pension rights or compensation;

6

(vii)unless otherwise agreed with the Company, the RSUs and the Shares subject to the RSUs, and the income and value of same, are not granted as consideration for, or in connection with, the service the Participant may provide as a director of a Subsidiary of the Company;
(viii)the RSUs and the Shares subject to the RSUs, and the income and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments;
(ix)the future value of the underlying Shares is unknown and cannot be predicted with certainty;
(x)no claim or entitlement to compensation or damages shall arise from forfeiture of the RSUs resulting from the Participant’s termination of continuous employment by the Company or the Employer (for any reason whatsoever and whether or not later found to be invalid or in breach of the Participant’s employment or service agreement, if any, or of any employment law in the country where the Participant resides and/or is employed, even if otherwise applicable to the Participant’s employment benefits from the Employer), and in consideration of the grant of the RSUs to which the Participant is otherwise not entitled, the Participant irrevocably agrees never to institute any claim against the Company or the Employer, waives his or her ability, if any, to bring any such claim, and releases the Company and the Employer from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, the Participant shall be deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claims; and
(xi)the following provisions apply only to the Participants providing services outside the United States, as determined by the Company:
(A)    the RSUs and the Shares subject to the RSUs are an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company or the Employer, and which is outside the scope of the Participant’s employment or service contract, if any;
(B)    the RSUs and the Shares subject to the RSUs are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company, the Employer or any Subsidiary; and
(C)    the RSU grant and the Participant’s participation in the Plan will not be interpreted to form an employment or service contract or relationship with the Company or any Subsidiary.
(g)No Advice Regarding Grant.  The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of the underlying Shares.  The Participant is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.
(h)Data Privacy.  
(i)The Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of the Participant’s personal data as described in this Agreement and any other RSU grant materials by and among, as applicable, the Employer, the Company and its Subsidiaries for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan.

7

(ii)The Participant understands that the Company and the Employer may hold certain personal information about the Participant, including, but not limited to, the Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number (e.g., resident registration number), salary, nationality, job title, any shares of stock or directorships held in the Company, details of all RSUs or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in the Participant’s favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan.
(iii)The Participant understands that Data will be transferred to E*Trade Financial Services, or such other stock plan service provider as may be selected by the Company in the future or other stock plan service provider that is selected by the Participant to the extent permitted by the Company in its sole discretion, in each case, that is assisting the Company with the implementation, administration and management of the Plan.  The Participant understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have different data privacy laws and protections than the Participant’s country.  If the Participant resides outside the United States, the Participant understands that he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative.  The Participant authorizes the Company, E*Trade Financial Services and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing his or her participation in the Plan.  The Participant understands that Data will be held only as long as is necessary to implement, administer and manage Participant’s participation in the Plan.  If the Participant resides outside the United States, the Participant understands that he or she may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative.  Further, the Participant understands that he or she is providing the consents herein on a purely voluntary basis.  If the Participant does not consent or if the Participant later seeks to revoke his or her consent, his or her status as an employee and career with the Employer will not be adversely affected; the only consequence of refusing or withdrawing his or her consent is that the Company would not be able to grant RSUs or other equity awards or administer or maintain such Awards.  Therefore, the Participant understands that refusing or withdrawing his or her consent may affect the Participant’s ability to participate in the Plan.  For more information on the consequences of the Participant’s refusal to consent or withdrawal of consent, the Participant understands that he or she may contact his or her local human resources representative.
(i)Reservation of Shares.  The Company shall at all times during the term of the RSU award reserve and keep available such number of Shares as will be sufficient to satisfy the requirements of this Agreement.
(j)Securities Matters. The Company shall not be required to deliver any Shares until the requirements of any securities or other laws, rules or regulations (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied.
(k)Assignment. Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable by the Participant.
(l)Successors and Assigns; No Third Party Beneficiaries. This Agreement shall inure to the benefit of and be binding upon the Company and the Participant and their respective heirs, successors, legal representatives and permitted assigns.  Nothing in this Agreement, expressed or implied, is intended to confer on any Person other than the Company and the Participant, and their respective heirs, successors, legal representatives and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

8

(m)Headings. Headings are given to the sections and subsections of this Agreement solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of this Agreement or any provision hereof.
(n)Governing Law; Arbitration. The internal law, and not the law of conflicts, of the State of Texas will govern all questions concerning the validity, construction and effect of this Agreement.  Any controversy, dispute or claim arising under or in connection with this Agreement (including, without limitation, the existence, validity, interpretation or breach hereof and any claim based on contract, tort or statute) shall be resolved by a binding arbitration, to be held in Dallas, Texas pursuant to the U.S. Federal Arbitration Act and in accordance with the then-prevailing National Rules of Resolution of Employment Disputes of the American Arbitration Association (the “AAA”).  The AAA shall select a sole arbitrator.  Each party shall bear its own expenses incurred in connection with arbitration and the fees and expenses of the arbitrator shall be shared equally by the parties involved in the dispute and advanced by them from time to time as required.  It is the mutual intention and desire of the parties that the arbitrator be chosen as expeditiously as possible following the submission of the dispute to arbitration.  Once such arbitrator is chosen, and except as may otherwise be agreed in writing by the parties involved in such dispute or as ordered by the arbitrator upon substantial justification shown, the hearing for the dispute will be held within sixty (60) days of submission of the dispute to arbitration.  The arbitrator shall render his or her final award within sixty (60) days, subject to extension by the arbitrator upon substantial justification shown of extraordinary circumstances, following conclusion of the hearing and any required post-hearing briefing or other proceedings ordered by the arbitrator.  Any discovery in connection with arbitration hereunder shall be limited to information directly relevant to the controversy or claim in arbitration.  The arbitrator will state the factual and legal basis for the award.  The decision of the arbitrator in any such proceeding will be final and binding and not subject to judicial review and final judgment may be entered upon such an award in any court of competent jurisdiction, but entry of such judgment will not be required to make such award effective.  Any action against any party hereto ancillary to arbitration, including any action for provisional or conservatory measures or action to enforce an arbitration award or any judgment entered by any court in respect thereof may be brought in any federal or state court of competent jurisdiction located within the State of Texas, and the parties hereto hereby irrevocably submit to the non-exclusive jurisdiction of any federal or state court located within the State of Texas over any such action.  The parties hereby irrevocably waive, to the fullest extent permitted by applicable law, any objection which they may now or hereafter have to the laying of venue of any such action brought in such court or any defense of inconvenient forum for the maintenance of such action.  Each of the parties hereto agrees that a judgment in any such action may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.
(o)Notices. The Participant should send all written notices regarding this Agreement or the Plan to the Company at the following address:
MoneyGram International, Inc. 
EVP, General Counsel & Secretary 
2828 North Harwood Street, 15th Floor
Dallas, TX  75201
(p)Amendments. The Company may amend this Agreement at any time; provided that, subject to Section 8(c) above, this Section 8(p) and Section 7 of the Plan, no such amendment, alteration, suspension, discontinuation or termination shall be made without the Participant’s consent, if such action would materially diminish any of the Participant’s rights under this Agreement.  The Company reserves the right to impose other requirements on the RSUs and the Shares acquired upon vesting of the RSUs, to the extent the Company determines it is necessary or advisable under the laws of the country in which the Participant resides pertaining to the issuance or sale of Shares or to facilitate the administration of the Plan.

9

(q)Entire Agreement. This Agreement, including the Appendix, and the Plan and the other agreements referred to herein and therein and any schedules, exhibits and other documents referred to herein and therein constitute the entire agreement and understanding among the parties hereto in respect of the subject matter hereof and thereof and supersede all prior and contemporaneous arrangements, agreements and understandings, both oral and written, whether in term sheets, presentations or otherwise, among the parties hereto, or between any of them, with respect to the subject matter hereof and thereof.
(r)Severability. If any provision of this Agreement is invalid, illegal, or incapable of being enforced by any law, all other provisions of this Agreement shall remain in full force and effect so long as the economic and legal substance of the transactions contemplated hereby are not affected in any manner materially adverse to any party. If any provision of this Agreement is held to be invalid, illegal, or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible.
(s)Participant Undertaking. The Participant agrees to take such additional action and execute such additional documents the Company may deem necessary or advisable to carry out or effect one or more of the obligations or restrictions imposed either on the Participant or upon this RSU award pursuant to the provisions of this Agreement.
(t)Counterparts. For the convenience of the parties and to facilitate execution, this Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same document.
(u)Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.
(v)Language.  If the Participant has received this Agreement, or any other document related to the RSU award and/or the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.
(w)Appendix.  The RSU award shall be subject to any special provisions set forth in the Appendix for the Participant’s country of residence, if any.  If the Participant relocates to one of the countries included in the Appendix during the life of the RSU award, the special provisions for such country shall apply to the Participant, to the extent the Company determines that the application of such provisions is necessary or advisable under the laws of the country in which the Participant resides pertaining to the issuance or sale of Shares or to facilitate the administration of the Plan.  The Appendix constitutes part of this Agreement.
(x)Waiver.  The Participant acknowledges that a waiver by the Company of any provision of this Agreement or of a breach by the Participant shall not operate or be construed as a waiver of any other provision of this Agreement or of any subsequent breach by the Participant.
(y)Insider Trading Restrictions/Market Abuse Laws.  Depending upon his or her country of residence, the Participant may be subject to insider trading restrictions and/or market abuse laws, which may affect the Participant’s ability to acquire or sell Shares or rights to Shares (e.g., RSUs) under the Plan during such times as the Participant is considered to have “inside information” regarding the Company (as defined by the laws in the Participant’s country).  Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy.  The Participant is responsible for complying with any applicable restrictions and is advised to speak with his or her personal legal advisor on this matter.
(z)Foreign Asset/Account Reporting Requirements and Exchange Controls.  The Participant’s country may have certain foreign asset and/or account reporting requirements and exchange controls which may affect the Participant’s ability to acquire or hold Shares under the Plan or cash received from 

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participating in the Plan (including from any dividends or Dividend Equivalents received or sale proceeds arising from the sale of Shares) in a brokerage or bank account outside the Participant’s country.  The Participant may be required to report such accounts, assets or transactions to the tax or other authorities in the Participant’s country.  The Participant also may be required to repatriate sale proceeds or other funds received as a result of the Participant’s participation in the Plan to the Participant’s country through a designated bank or broker and/or within a certain time after receipt.  The Participant acknowledges that it is the Participant's responsibility to be compliant with such regulations, and the Participant should consult his or her personal legal advisor for any details.  
(aa)No Trust or Fund Created.  Neither the Plan nor the Agreement shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Subsidiary and the Participant or any other person.
(ab)Section 409A Provisions.  The payment of Shares under this Agreement is intended to be exempt from the application of Section 409A of the Code by reason of the short-term deferral exemption set forth in Treasury Regulation §1.409A-1(b)(4).  Notwithstanding anything in the Plan or this Agreement to the contrary, to the extent that any amount or benefit hereunder that constitutes “deferred compensation” to the Participant under Section 409A is otherwise payable or distributable to the Participant under the Plan or this Agreement solely by reason of the occurrence of a Change in Control or due to the Participant’s Disability or separation from service, such amount or benefit will not be payable or distributable to the Participant by reason of such circumstance unless the Committee determines in good faith that (i) the circumstances giving rise to such Change in Control, Disability or separation from service meet the definition of a change in ownership or control, disability, or separation from service, as the case may be, in Section 409A(a)(2)(A) of the Code and applicable final regulations, or (ii) the payment or distribution of such amount or benefit would be exempt from the application of Section 409A by reason of the short-term deferral exemption or otherwise (including, but not limited to, a payment made pursuant to an involuntary separation arrangement that is exempt from Section 409A under the “short-term deferral” exception).  Any payment or distribution that constitutes deferred compensation subject to Code Section 409A and that otherwise would be made to a Participant who is a specified employee as defined in Section 409A(a)(2)(B) of the Code on account of separation from service instead shall be made on the earlier of the date that is six months and one day after the date of the specified employee’s separation from service and the specified employee’s death.
IN WITNESS WHEREOF, the Company and the Participant have executed this Agreement as of the date set forth in the first paragraph.
	
	
	MONEYGRAM INTERNATIONAL, INC

	By:______________________

	PARTICIPANT

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