Document:

ex10-1.htm

Exhibit 10.1

 

 

VERTEX ENERGY, INC.

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is entered into this 1st day of October 2015, to be effective as of the Effective Date as defined below between Vertex Energy, Inc., a Nevada corporation (the “Company”), and John Strickland (“Executive”) (each of the Company and Executive are referred to herein as a “Party”, and collectively referred to herein as the “Parties”).  This Agreement replaces and supersedes in its entirety that prior Executive Employment Agreement entered into between the Company and Executive on or around July 27, 2012 (the “Prior Agreement”), which shall be considered terminated and of no force or effect as of the Effective Date.

 

W I T N E S S E T H:

            WHEREAS, the Company desires to obtain the services of the Executive, and the Executive desires to be employed by the Company upon the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, in consideration of the premises, the agreements herein contained and other good and valuable consideration, receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as of the Effective Date as follows:

 

ARTICLE I.

EMPLOYMENT; TERM; DUTIES

1.1.           Employment. Pursuant to the terms and conditions hereinafter set forth, the Company hereby employs Executive, and Executive hereby accepts such employment, as the Chief Operating Officer (“COO”) of the Company for a period beginning on the Effective Date and ending on December 31, 2018 (the “Initial Term”); provided that this Agreement shall automatically extend for additional one (1) year periods after the Initial Term (each an “Automatic Renewal Term”) in the event that neither Party provides the other written notice of their intent not to automatically extend the term of this Agreement at least sixty (60) days prior to the end of the Initial Term or any Automatic Renewal Term, as applicable (each a “Non-Renewal Notice”).

1.2.           Duties and Responsibilities. Executive, as COO, shall perform such administrative, managerial and executive duties for the Company (i) as are prescribed by applicable job specifications for the Chief Operating Officer of a public company the size and nature of the Company, (ii) as may be prescribed by the Bylaws of the Company, (iii) as are customarily vested in and incidental to such position, and (iv) as may be assigned to him from time to time by the Board of Directors of the Company (the “Board”).

1.3.           Non-Competition. For $10 and other good and valuable consideration which Executive acknowledges the receipt and sufficiency of, Executive agrees to (a) devote substantially all of Executive’s business time, energy and efforts to the business of the Company (except as specifically provided for in Section 1.4 below), (b) to use Executive’s best efforts and abilities faithfully and diligently to promote the business interests of the Company and (c) to comply with the other terms and conditions of this Section 1.3. For so long as Executive is employed hereunder, and for a period of twelve (12) months thereafter (the “Non-Compete Period”), Executive (whether by himself, through his employers or employees or agents or otherwise, and whether on his own behalf or on behalf of any other Person) shall not, directly or indirectly, either as an employee, employer, consultant, agent, investor, principal, partner, stockholder (except as the holder of less than 1% of the issued and outstanding stock of a publicly held corporation), own, manage, operate, control, be employed by, act as an officer, director, agent or consultant for, or be in any other way connected with or provide services or products to or for, any Person in the business of manufacturing, selling, creating, renting, aggregating, trading, distributing, marketing, producing, undertaking, developing, supplying, or otherwise dealing with or in Restricted Services or Restricted Products in the Restricted Area (the “Post-Employment Non-Competition Requirement”).

 

 

 

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1.3.1           For purposes of this Section 1.3, the following terms shall have the following meanings:

 

(i)           “Person” means any individual, corporation, partnership, joint venture, limited liability company, trust, unincorporated organization or governmental entity.

 

(ii)           “Restricted Area” means (A) any State (in the United States); and/or (B) any other geographic area (Providence, if such Restricted Area is in Canada, or country, if such Restricted Area is in a country other than the United States or Canada), in which the Company or any of its Subsidiaries provides Restricted Services or Restricted Products, directly or indirectly, during the twelve months preceding the Termination Date of Executive’s employment hereunder.

 

(iii)           “Restricted Products” means used motor oil, petroleum by-products, vacuum gas oil, aggregated feedstock and re-refined oil products, gasoline blendstock, pygas and fuel oil cutterstock, oil filters, engine coolant and/or other hydrocarbons and any other product, that the Company or any of its Subsidiaries has provided or is researching, developing, manufacturing, distributing, refining, re-refining, aggregating, purchasing, selling and/or providing at any time during the two years immediately preceding the Termination Date, or which the Executive obtained any trade secret or other Confidential/Trade Secret Information (as defined in Section 4.2, below) about at any time during the two years immediately preceding the Termination Date as a result of his employment with the Company, consulting services provided to the Company, or which he became aware of as a result of his position as a director of the Company.

 

(iv)           “Restricted Services” means the collection, trading, purchasing, processing, storing, aggregation, transportation, manufacture, distribution, recycling, storage, refinement, re-refinement and sale of Restricted Products, dismantling, demolition, decommission and marine salvage services and any other services that the Company or any of its Subsidiaries has provided or is researching, developing, performing and/or providing at any time during the two years immediately preceding the Termination Date, or which Executive obtained any trade secret or other Confidential/Trade Secret Information (as defined in Section 4.2, below) about at any time during the two years immediately preceding the Termination Date as a result of his employment with the Company, consulting services provided to the Company, or which he became aware of as a result of his position as a director of the Company.

(v)           “Subsidiary” or “Subsidiaries” means any or all Persons of which the Company owns directly or indirectly through another Person, a nominee arrangement or otherwise (a) at least 20% of the outstanding capital stock (or other shares of beneficial interest) entitled to vote generally or otherwise have the power to elect a majority of the board of directors or similar governing body or the legal power to direct the business or policies of such Person or (b) at least 20% of the economic interests of such Person.

 

1.4.           Other Activities. Subject to the foregoing prohibition and provided such services or investments do not violate any applicable law, regulation or order, or interfere in any way with the faithful and diligent performance by Executive of the services to the Company otherwise required or contemplated by this Agreement, the Company expressly acknowledges that Executive may:

1.4.1           make and manage personal business investments of Executive’s choice without consulting the Board;

1.4.2           serve in any capacity with any non-profit civic, educational or charitable organization; and

1.4.3           undertake any other actions, business transactions, agreements and undertakings which the Executive has received approval of the Related Party Transaction Committee (as defined below) to enter into and/or undertake, provided that

1.4.4           Executive undertake only such actions or services that do not interfere with the Executive’s obligations hereunder.

 

 

 

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1.5.           The Company’s “Related Party Transaction Committee,” composed of at least two (2) independent directors (as determined by the rules and regulations of the NASDAQ Capital Market, or the principal exchange or market on which the Company’s securities then trade), shall be available to Executive to review any potential conflicts of interest between Executive, the Company and any other entity or individual which may be affiliated with Executive.

1.6.           Covenants of Executive.

1.6.1           Best Efforts. Executive shall devote his best efforts to the business and affairs of the Company. Executive shall perform his duties, responsibilities and functions to the Company hereunder to the best of his abilities in a diligent, trustworthy, professional and efficient manner and shall comply, in all material respects, with all rules and regulations of the Company (and special instructions of the Board, if any) and all other rules, regulations, guides, handbooks, procedures and policies applicable to the Company and its business in connection with his duties hereunder, including all United States federal and state securities laws applicable to the Company.

1.6.2           Records. Executive shall use his best efforts and skills to truthfully, accurately, and promptly prepare, maintain, and preserve all records and reports that the Company may, from time to time, request or require, fully account for all money, records, equipment, materials, or other property belonging to the Company of which he may have custody, and promptly pay and deliver the same whenever he may be directed to do so by the Board.

1.6.3           Compliance. Executive shall use his best efforts to maintain the Company’s compliance with all rules and regulations of the Securities and Exchange Commission (“SEC”), and reporting requirements for publicly traded companies under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Executive shall at all times comply, and cause the Company to comply, with the then-current good corporate governance standards and practices as prescribed by the SEC, any exchange on which the Company’s capital stock or other securities may be traded and any other applicable governmental entity, agency or organization.

1.6.4           Exchange Act Filing Requirements. The Executive agrees and acknowledges that due to the Executive’s status as a Section 16(a) “officer” of the Company (as described in Rule 16a-1(f) of the Exchange Act), he has an obligation to file various beneficial ownership reports and forms with the Securities and Exchange Commission, including Form’s 3, 4 and 5 (where applicable) and that such obligation is solely the Executive’s regardless of whether the Company assists the Executive in filing such forms or not.  The Executive agrees to use his best efforts to timely and adequately file all required beneficial ownership reports and forms required under the Exchange Act.

1.7.           Effective Date. The “Effective Date” of this Agreement shall be October 1, 2015.

 

1.8.           At Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement. A required condition to the Company’s acceptance of this Agreement is the entry by the Executive into the At Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement in the form of Exhibit A attached hereto.

 

 

 

 

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ARTICLE II.

COMPENSATION AND OTHER BENEFITS

2.1.           Base Salary. So long as this Agreement remains in effect, for all services rendered by Executive hereunder and all covenants and conditions undertaken by the Parties pursuant to this Agreement, the Company shall pay, and Executive shall accept, as compensation, an annual base salary (“Base Salary”) of $225,000. The Base Salary shall be payable in regular installments in accordance with the normal payroll practices of the Company, in effect from time to time, but in any event no less frequently than on a monthly basis. For so long as Executive is employed hereunder, beginning on December 31, 2015, and on each December 31st thereafter, the Base Salary may be increased as determined by the Compensation Committee of the Board (the “Compensation Committee”), in its sole and absolute discretion. Such increase in salary shall be documented in the Company’s records, but shall not require the Parties enter into a new or amended form of this Agreement.  The Base Salary shall increase to up to $260,000 (as determined by the Compensation Committee during the fourth quarter of fiscal 2016) in the event certain Company and Executive performance goals are met by the Company and the Executive and at the same time, the Compensation Committee shall authorize a one-time bonus of between $150,000 and $250,000 to Executive assuming such pre-established performance goals have been met (the “One-Time Bonus”).

2.2.           Discretionary Cash Bonus. Executive shall be eligible for a yearly discretionary cash bonus (a “Cash Bonus”) equal to an amount as determined by the Compensation Committee of the Board of Directors (the “Committee”) and based on the condition of the Company’s business and results of operations, the Committee’s evaluation of Executive’s individual performance for the relevant period, and the satisfaction of goals that may be established by the Committee. Each Cash Bonus shall be paid in the Committee’s discretion, provided that the minimum targeted yearly Cash Bonus shall be in an amount equal to not less than $75,000 per year.

2.3.           Performance Standards. The Executive and the Company agree that the Executive’s discretionary Cash Bonus, One-Time Bonus and equity-based compensation will be based on the Executive’s and the Company’s achievement of performance goals that may be established by the Committee after discussion with the Executive and his supervisors (if any). Until or unless the Company and the Committee establish performance goals, the Executive’s discretionary Cash Bonus, One-Time Bonus and equity based compensation will be wholly discretionary.

2.4.           Business Expenses. So long as this Agreement is in effect, the Company shall reimburse Executive for all reasonable, out-of-pocket business expenses incurred in the performance of his duties hereunder consistent with the Company’s policies and procedures, in effect from time to time, with respect to travel, entertainment, communications, technology/equipment and other business expenses customarily reimbursed to senior executives of the Company in connection with the performance of their duties on behalf of the Company.

2.5.           Vacation. Executive will be entitled to 20 days of paid time-off (“PTO”) per year. PTO days shall accrue beginning on the 1st of January for each year during the term of this Agreement. Unused PTO days shall expire on December 31 of each year and shall not roll over into the next year. Other than the use of PTO days for illness or personal emergencies, PTO days must be pre-approved by the Company.

2.6.           Other Benefits. Executive shall be entitled to participate in the Company’s employee stock option plan, life, health, accident, disability insurance plans, pension plans and retirement plans, in effect from time to time (including, without limitation, any incentive program or discretionary bonus program of the Company which may be implemented in the future by the Board), to the extent and on such terms and conditions as the Company customarily makes such plans available to its senior executives.

2.7.           Withholding. The Company may deduct from any compensation payable to Executive (including payments made pursuant to this ARTICLE II or in connection with the termination of employment pursuant to ARTICLE III of this Agreement) amounts sufficient to cover Executive’s share of applicable federal, state and/or local income tax withholding, social security payments, state disability and other insurance premiums and payments.

 

 

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2.8.           Car Allowance. The Company shall provide the Executive an automobile allowance of $650 per month during the term of Executive’s employment hereunder.

ARTICLE III.

TERMINATION OF EMPLOYMENT

3.1.           Termination of Employment. Executive’s employment pursuant to this Agreement shall terminate on the earliest to occur of the following:

3.1.1           upon the death of Executive;

3.1.2           upon the delivery to Executive of written notice of termination by the Company if Executive shall suffer a physical or mental disability which renders Executive, in the reasonable judgment of the Committee, unable to perform his duties and obligations under this Agreement for either 90 consecutive days or 180 days in any 12-month period;

3.1.3           upon the expiration of the Initial Term, unless a notice of termination pursuant to Section 1.1 is not given by either Party, in which case upon the expiration of the first Automatic Renewal Term that such a notice of termination is given with respect to either Party (if any);

 

3.1.4           upon delivery to the Company of written notice of termination by Executive for any reason other than for Good Reason;

3.1.5           upon delivery to Executive of written notice of termination by the Company for Cause;

3.1.6           upon delivery of written notice of termination from Executive to the Company for Good Reason, provided, however, prior to any such termination by Executive pursuant to this Section 3.1.6, Executive shall have advised the Company in writing within fifteen (15) days of the occurrence of any circumstances that would constitute Good Reason, and the Company has not cured such circumstances within 15 days following receipt of Executive’s written notice, with the exception of only five (5) days written notice in the event the Company reduces Executive’s salary without Executive’s consent or fails to pay Executive any compensation due him; or

3.1.7           upon delivery to Executive of written notice of termination by the Company without Cause.

3.2.           Termination in Connection with a Change of Control. In the event that Executive’s employment is terminated for any reason (not including, however, a termination by the Company for Cause (Section 3.1.5) or a termination as a result of the Executive’s death (Section 3.1.1) or disability (Section 3.1.2)(and for clarity, which shall include termination by Executive for Good Reason (Section 3.1.6)))(a “Change of Control Termination”) during the twelve month period following a Change of Control (as defined in Section 3.3) or in anticipation of a Change of Control, the Company shall pay Executive, within 60 days following the later of (i) the date of such Change of Control Termination; and (ii) the date of such Change of Control, a cash severance payment in a lump sum in an amount equal to 3.0 times the sum of (a) the current annual Base Salary of the Executive; and (b) the amount of the most recent Cash Bonus paid to the Executive pursuant to Section 2.2 of this Agreement less applicable withholding (the “Change of Control Payment”), which amount shall be payable within 60 days of the later of (i) the date of such Change of Control Termination; and (ii) the date of such Change of Control. If Executive’s employment ends due to a Change of Control Termination within six (6) months prior to a Change of Control, it will be deemed to be “in anticipation of a Change of Control” for purposes of this paragraph. In addition, in the event of a Change of Control, all of Executive’s equity-based compensation shall immediately vest regardless of whether the Executive is retained by the Company or successor following the Change of Control and any outstanding stock options held by the Executive shall be able to be exercised by the Executive until the earlier of (A) one (1) year from the date of termination and (B) the latest date upon which such stock options would have expired by their original terms under any circumstances, provided that if Executive’s employment ends in anticipation of a Change of Control and such equity-based compensation awards or stock options have previously expired pursuant to their terms, the Company shall pay the Executive a lump sum payment, payable on the same date as the Change of Control Payment, equal to the black scholes value of the expired and unexercised equity compensation awards and stock options held by the Executive on the date of termination, based on the value of such awards had they been exercisable through the end of their stated term and had not previously expired.

 

 

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3.3.           Certain Definitions. For purposes of this Agreement, the following terms shall have the following meanings:

3.3.1           “Cause” shall mean, in the context of a basis for termination by the Company of Executive’s employment with the Company, that:

(i)           Executive materially breaches any obligation, duty, covenant or agreement under this Agreement, which breach is not cured or corrected within thirty (30) days of written notice thereof from the Company (except for breaches of Section 1.3 and ARTICLE IV of this Agreement, which cannot be cured and for which the Company need not give any opportunity to cure); or

(ii)           Executive commits any act of misappropriation of funds or embezzlement; or

(iii)           Executive commits any act of fraud; or

(iv)           Executive is indicted of, or pleads guilty or nolo contendere with respect to, theft, fraud, a crime involving moral turpitude, or a felony under federal or applicable state law.

3.3.2           “Change of Control” shall mean the happening of any of the following:

 

(i)           Any “Person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act is or becomes the “Beneficial Owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the total voting power represented by the Company’s then outstanding voting securities without the approval of not fewer than two-thirds of the Board of Directors of the Company voting on such matter, unless the Board of Directors specifically designates such acquisition to be a change of control;

 

(ii)           A merger or consolidation of the Company whether or not approved by the Board of Directors of the Company, other than a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted or into voting securities of the surviving entity) at least 50% of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the shareholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; or

 

(iii)           As a result of the election of members to the Board of Directors, a majority of the Board of Directors consists of persons who are not members of the Board of Directors as of the Effective Date (including Executive as a member of the Board of Directors as of the Effective Date), except in the event that such slate of directors is proposed by the Committee.

 

(iv)           Notwithstanding the foregoing, if the definition of “Change of Control” in the Company’s Stock Incentive Plans or Equity Compensation Plans (each as amended from time to time) is more favorable to the Executive, then such definition shall be controlling for purposes of this Agreement.

 

 

 

 

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3.3.3           “Good Reason” shall mean, in the context of a basis for termination by Executive of his employment with the Company (a) without Executive’s consent, his position or duties are modified by the Company to such an extent that his duties are no longer consistent with the position of COO of the Company, (b) there has been a material breach by the Company of a material term of this Agreement or Employee reasonably believes that the Company is violating any law which would have a material adverse effect on the Company’s operations and such violation continues uncured following thirty (30) days after such breach and after notice thereof has been provided to the Company by the Executive, or (c) Executive’s compensation as set forth hereunder is reduced without Executive’s consent, or the Company fails to pay to Executive any compensation due to him hereunder upon five (5) days written notice from Executive informing the Company of such failure.

 

3.3.4           “Termination Date” shall mean the date on which Executive’s employment with the Company hereunder is terminated.

3.4.           Effect of Termination. In the event that Executive’s employment hereunder is terminated in accordance with the provisions of this Agreement, Executive shall be entitled to the following:

3.4.1           If Executive’s employment is terminated pursuant to Sections 3.1.1 (death), Section 3.1.2 (disability), Section 3.1.3 (the end of the Initial Term if either Party has timely delivered a Non-Renewal Notice as provided in Section 1.1 or the end of any Automatic Renewal Term pursuant to which either Party has timely delivered a Non-Renewal Notice as provided in Section 1.1), Section 3.1.4 (without Good Reason by the Executive), or Section 3.1.5 (by the Company for Cause), Executive shall be entitled to salary accrued through the Termination Date and no other benefits other than as required under the terms of employee benefit plans in which Executive was participating as of the Termination Date.  Additionally, any unvested stock options or equity compensation held by Executive shall immediately terminate and be forfeited (unless otherwise provided in the applicable award) and any previously vested stock options (or if applicable equity compensation) shall be subject to terms and conditions set forth in the applicable Stock Incentive Plan or Equity Compensation Plan, or award agreement, as such may describe the rights and obligations upon termination of employment of Executive.

3.4.2           If Executive’s employment is terminated by Executive pursuant to Section 3.1.6 (Good Reason), or pursuant to Section 3.1.7 (without Cause by the Company), (a) Executive shall be entitled to continue to receive the salary at the rate in effect upon the Termination Date of employment for twelve (12) months following the Termination Date, payable in accordance with the Company’s normal payroll practices and policies, as if Executive’s employment had not terminated; (b) Executive shall be entitled to the pro rata amount of any Cash Bonus and One-Time Bonus which would be payable to Executive had he remained employed for an additional twelve (12) months following the Termination Date; and (c) provided Executive elects to receive continued health insurance coverage through COBRA, the Company will pay Executive’s monthly COBRA contributions for health insurance coverage, as may be amended from time to time (less an amount equal to the premium contribution paid by active Company employees, if any) for twelve months (12) following the Termination Date; provided, however, that if at any time Executive is covered by a substantially similar level of health insurance through subsequent employment or otherwise, the Company’s health benefit obligations shall immediately cease, and the Company shall have no further obligation to make COBRA contributions on Executive’s behalf. Additionally, unvested benefits (whether equity or cash benefits and bonuses (subject to this Section 3.4.2 in connection with the Cash Bonus and One-Time Bonus (i.e., the pro rata amount of any such bonus))) will vest immediately upon such termination and any outstanding stock options previously granted to the Executive will vest immediately upon such termination and shall be exercisable by the Executive until the earlier of (A) one (1) year from the date of termination and (B) the latest date upon which such stock options would have expired by their original terms under any circumstances. Executive shall be entitled to no other post-employment benefits except as provided for under this Section 3.4.2 and for benefits payable under applicable benefit plans in which Executive is entitled to participate pursuant to Section 2.6 hereof through the Termination Date, subject to and in accordance with the terms of such plans.

 

 

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3.4.3           As a condition to Executive’s right to receive any benefits pursuant to Section 3.4.2 of this Agreement, (A) Executive must execute and deliver to the Company a written release in form and substance satisfactory to the Company, of any and all claims against the Company and all directors and officers of the Company with respect to all matters arising out of Executive’s employment hereunder, or the termination thereof (other than claims for entitlements under the terms of this Agreement or plans or programs of the Company in which Executive has accrued a benefit); and (B) Executive must not breach any of his covenants and agreements under Section 1.3 and ARTICLE IV of this Agreement, which shall continue following the Termination Date.

 

3.4.4           In the event of termination of Executive’s employment pursuant to Section 3.1.5 (by the Company for Cause), and subject to applicable law and regulations, the Company shall be entitled to offset against any payments due Executive the loss and damage, if any, which shall have been suffered by the Company as a result of the acts or omissions of Executive giving rise to termination. The foregoing shall not be construed to limit any cause of action, claim or other rights, which the Company may have against Executive in connection with such acts or omissions.

3.4.5           Upon termination of Executive’s employment hereunder, or on demand by the Company during the term of this Agreement, Executive will immediately deliver to the Company, and will not keep in his possession, recreate or deliver to anyone else, any and all Company property, as well as all devices and equipment belonging to the Company (including computers, handheld electronic devices, telephone equipment, and other electronic devices), Company credit cards, records, data, notes, notebooks, reports, files, proposals, lists, correspondence, specifications, drawings blueprints, sketches, materials, photographs, charts, all documents and property, and reproductions of any of the aforementioned items that were developed by Executive pursuant to his employment with the Company, obtained by Executive in connection with his employment with the Company, or otherwise belonging to the Company, its successors or assigns, including, without limitation, those records maintained pursuant to this Agreement.

3.4.6           Executive also agrees to keep the Company advised of his home and business address for a period of three (3) years after termination of Executive’s employment hereunder, so that the Company can contact Executive regarding his continuing obligations provided by this Agreement. In the event that Executive’s employment hereunder is terminated, Executive agrees to grant consent to notification by the Company to Executive’s new employer about his obligations under this Agreement.

3.4.7           Consulting. During the sixty day period following any termination of this Agreement pursuant to Section 3.1.3, Section 3.1.4, Section 3.1.6, or Section 3.1.7, Executive shall be available, subject to his other reasonable commitments or obligations made or incurred in mitigation of the termination of his employment, by telephone, email or fax, as a consultant to the Company, without further compensation, to consult with its officers and directors regarding projects and/or tasks as defined by the Board.

ARTICLE IV.

INVENTIONS; CONFIDENTIAL/TRADE SECRET INFORMATION

AND RESTRICTIVE COVENANTS

 

4.1.           Inventions. All processes, technologies and inventions relating to the business of the Company (collectively, “Inventions”), including new contributions, improvements, ideas, discoveries, trademarks and trade names, conceived, developed, invented, made or found by Executive, alone or with others, during his employment by the Company, whether or not patentable and whether or not conceived, developed, invented, made or found on the Company’s time or with the use of the Company’s facilities or materials, shall be the property of the Company and shall be promptly and fully disclosed by Executive to the Company. Executive shall perform all necessary acts (including, without limitation, executing and delivering any confirmatory assignments, documents or instruments requested by the Company) to assign or otherwise to vest title to any such Inventions in the Company and to enable the Company, at its sole expense, to secure and maintain domestic and/or foreign patents or any other rights for such Inventions.

 

 

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4.2.           Confidential/Trade Secret Information/Non-Disclosure.

4.2.1           Confidential/Trade Secret Information Defined. During the course of Executive’s employment, Executive will have access to various Confidential/Trade Secret Information of the Company and information developed for the Company. For purposes of this Agreement, the term “Confidential/Trade Secret Information” is information that is not generally known to the public and, as a result, is of economic benefit to the Company in the conduct of its business, and the business of the Company’s subsidiaries. Executive and the Company agree that the term “Confidential/Trade Secret Information” includes but is not limited to all information developed or obtained by the Company, including its affiliates, and predecessors, and comprising the following items, whether or not such items have been reduced to tangible form (e.g., physical writing, computer hard drive, disk, tape, e-mail, etc.): all methods, techniques, processes, ideas, research and development, product designs, engineering designs, plans, models, production plans, business plans, add-on features, trade names, service marks, slogans, forms, pricing structures, menus, business forms, marketing programs and plans, layouts and designs, financial structures, operational methods and tactics, cost information, the identity of and/or contractual arrangements with suppliers and/or vendors, accounting procedures, and any document, record or other information of the Company relating to the above. Confidential/Trade Secret Information includes not only information directly belonging to the Company which existed before the date of this Agreement, but also information developed by Executive for the Company, including its subsidiaries, affiliates and predecessors, during the term of Executive’s employment with the Company. Confidential/Trade Secret Information does not include any information which (a) was in the lawful and unrestricted possession of Executive prior to its disclosure to Executive by the Company, its subsidiaries, affiliates or predecessors, (b) is or becomes generally available to the public by lawful acts other than those of Executive after receiving it, or (c) has been received lawfully and in good faith by Executive from a third party who is not and has never been an executive of the Company, its subsidiaries, affiliates or predecessors, and who did not derive it from the Company, its subsidiaries, affiliates or predecessors.

4.2.2           Restriction on Use of Confidential/Trade Secret Information. Executive agrees that his use of Confidential/Trade Secret Information is subject to the following restrictions for an indefinite period of time so long as the Confidential/Trade Secret Information has not become generally known to the public:

(i)           Non-Disclosure. Executive agrees that he will not publish or disclose, or allow to be published or disclosed, Confidential/Trade Secret Information to any person without the prior written authorization of the Company unless pursuant to or in connection with Executive’s job duties to the Company under this Agreement; and

 

 

(ii)         Non-Removal/Surrender. Executive agrees that he will not remove any Confidential/Trade Secret Information from the offices of the Company or the premises of any facility in which the Company is performing services, except pursuant to his duties under this Agreement. Executive further agrees that he shall surrender to the Company all documents and materials in his possession or control which contain Confidential/Trade Secret Information and which are the property of the Company upon the termination of his employment with the Company, and that he shall not thereafter retain any copies of any such materials.

4.2.3           Prohibition Against Unfair Competition/ Non-Solicitation of Customers. Executive agrees that at no time after his employment with the Company will he engage in competition with the Company while making any use of the Confidential/Trade Secret Information, or otherwise exploit or make use of the Confidential/Trade Secret Information. Executive agrees that during the twelve-month period following the Termination Date, he will not directly or indirectly accept or solicit, in any capacity, the business of any customer of the Company with whom Executive worked or otherwise had access to the Confidential/Trade Secret Information pertaining to the Company’s business with such customer during the last year of Executive’s employment with the Company, or solicit, directly or indirectly, or encourage any of the Company’s customers or suppliers to terminate their business relationship with the Company, or otherwise interfere with such business relationships.

 

 

 

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4.3.           Non-Solicitation of Employees. Executive agrees that during the twelve-month period following the Termination Date, he shall not, directly or indirectly, solicit or otherwise encourage any employees of the Company to leave the employ of the Company, or solicit, directly or indirectly, any of the Company’s employees for employment.

4.4.           Non-Solicitation During Employment. During his employment with the Company, Executive shall not: (a) interfere with the Company’s business relationship with its customers or suppliers, (b) solicit, directly or indirectly, or otherwise encourage any of the Company’s customers or suppliers to terminate their business relationship with the Company, or (c) solicit, directly or indirectly, or otherwise encourage any employees of the Company to leave the employ of the Company, or solicit any of the Company’s employees for employment.

4.5.           Conflict of Interest. During Executive’s employment with the Company, Executive must not engage in any work, paid or unpaid, that creates an actual conflict of interest with the Company. If the Company or the Executive have any question as to the actual or apparent potential for a conflict of interest, either shall raise the issue formally to the other, and if appropriate and necessary the issue shall be put to the Related Party Transaction Committee of the Company for consideration and approval or non-approval, which approval or non-approval the Executive agrees shall be binding on the Executive.

4.6.           Breach of Provisions. If Executive materially breaches any of the provisions of this ARTICLE IV, or in the event that any such breach is threatened by Executive, in addition to and without limiting or waiving any other remedies available to the Company at law or in equity, the Company shall be entitled to immediate injunctive relief in any court, domestic or foreign, having the capacity to grant such relief, to restrain any such breach or threatened breach and to enforce the provisions of this ARTICLE IV.

 

4.7.           Reasonable Restrictions. The Parties acknowledge that the foregoing restrictions, as well as the duration and the territorial scope thereof as set forth in this ARTICLE IV, are under all of the circumstances reasonable and necessary for the protection of the Company and its business.

 

4.8.           Specific Performance. Executive acknowledges and agrees that the Company’s remedies at law for a breach or threatened breach of any of the provisions of Section 1.3, Section 4.2, Section 4.3 or Section 4.4 hereof would be inadequate and, in recognition of this fact, Executive agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company, without posting any bond, shall be entitled to obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy which may then be available.

ARTICLE V.

INDEMNIFICATION

 

 

5.1.           The Company agrees to indemnify Executive and hold Executive harmless from and against any and all losses, claims, damages, liabilities and costs (and all actions in respect thereof and any legal or other expenses in giving testimony or furnishing documents in response to a subpoena or otherwise), including, without limitation, the costs of investigating, preparing or defending any such action or claim, whether or not in connection with litigation in which Executive is a party, as and when incurred, directly or indirectly caused by, relating to, based upon or arising out of any work performed by Executive in connection with this Agreement to the full extent permitted by the Nevada Revised Statutes, and by the Articles of Incorporation and Bylaws of the Company, as may be amended from time to time, and pursuant to any indemnification agreement between Executive and the Company.

5.2.           The indemnification provision of this ARTICLE V shall be in addition to any liability which the Company may otherwise have to Executive.

 

 

 

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5.3.           If any action, proceeding or investigation is commenced as to which Executive proposes to demand such indemnification, Executive shall notify the Company with reasonable promptness. Executive shall have the right to retain counsel of Executive’s own choice to represent Executive and the Company shall pay all reasonable fees and expenses of such counsel; and such counsel shall, to the fullest extent consistent with such counsel’s professional responsibilities, cooperate with the Company and any counsel designated by the Company. The Company shall be liable for any settlement of any claim against Executive made with the Company’s written consent, which consent shall not be unreasonably withheld or delayed, to the fullest extent permitted by the Nevada Revised Statutes and the Articles of Incorporation and Bylaws of the Company, as may be amended from time to time.

 

 

ARTICLE VI.

ARBITRATION

 

6.1.           Scope. To the fullest extent permitted by law, Executive and the Company agree to the binding arbitration of any and all controversies, claims or disputes between them arising out of or in any way related to this Agreement, the employment relationship between the Company and Executive and any disputes upon termination of employment, including but not limited to breach of contract, tort, discrimination, harassment, wrongful termination, demotion, discipline, failure to accommodate, family and medical leave, compensation or benefits claims, constitutional claims; and any claims for violation of any local, state or federal law, statute, regulation or ordinance or common law. For the purpose of this agreement to arbitrate, references to “Company” include all subsidiaries or related entities and their respective executives, supervisors, officers, directors, agents, pension or benefit plans, pension or benefit plan sponsors, fiduciaries, administrators, affiliates and all successors and assigns of any of them, and this agreement to arbitrate shall apply to them to the extent Executive’s claims arise out of or relate to their actions on behalf of the Company.

6.2.           Arbitration Procedure. To commence any such arbitration proceeding, the Party commencing the arbitration must provide the other Party with written notice of any and all claims forming the basis of such right in sufficient detail to inform the other Party of the substance of such claims. In no event shall this notice for arbitration be made after the date when institution of legal or equitable proceedings based on such claims would be barred by the applicable statute of limitations. The arbitration will be conducted in Houston, Texas, by a single neutral arbitrator and in accordance with the then-current rules for resolution of employment disputes of the American Arbitration Association (“AAA”). The Arbitrator is to be selected by the mutual agreement of the Parties. If the Parties cannot agree, the Superior Court will select the arbitrator. The Parties are entitled to representation by an attorney or other representative of their choosing. The arbitrator shall have the power to enter any award that could be entered by a judge of the trial court of the State of Texas, and only such power, and shall follow the law. The award shall be binding and the Parties agree to abide by and perform any award rendered by the arbitrator. The arbitrator shall issue the award in writing and therein state the essential findings and conclusions on which the award is based. Judgment on the award may be entered in any court having jurisdiction thereof. The losing Party in the arbitration hearing shall bear the costs of the arbitration filing and hearing fees and the cost of the arbitrator.

ARTICLE VII.

MISCELLANEOUS

7.1.           Binding Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective legal representatives, heirs, successors and assigns. Executive may not assign any of his rights or obligations under this Agreement. The Company may assign its rights and obligations under this Agreement to any successor entity.

 

 

 

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7.2.           Notices. Any notice provided for herein shall be in writing and shall be deemed to have been given or made (a) when personally delivered or (b) when sent by telecopier and confirmed within 48 hours by letter mailed or delivered to the Party to be notified at its or his address set forth herein; or three (3) days after being sent by registered or certified mail, return receipt requested (or by equivalent currier with delivery documentation such as FEDEX or UPS) to the address of the other Party set forth or to such other address as may be specified by notice given in accordance with this Section 7.2: 

	
If to the Company:

	
Vertex Energy, Inc.

1331 Gemini, Suite 250

Houston, Texas 77058

Telephone: (866) 660-8156

Attention: Secretary

 

	
If to the Executive:

	
John Strickland

(Address and contact information on file) 

7.3.           Severability. If any provision of this Agreement, or portion thereof, shall be held invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall attach only to such provision or portion thereof, and shall not in any manner affect or render invalid or unenforceable any other provision of this Agreement or portion thereof, and this Agreement shall be carried out as if any such invalid or unenforceable provision or portion thereof were not contained herein. In addition, any such invalid or unenforceable provision or portion thereof shall be deemed, without further action on the part of the Parties hereto, modified, amended or limited to the extent necessary to render the same valid and enforceable.

7.4.           Waiver. No waiver by a Party of a breach or default hereunder by the other Party shall be considered valid, unless expressed in a writing signed by such first Party, and no such waiver shall be deemed a waiver of any subsequent breach or default of the same or any other nature.

7.5.           Entire Agreement. This Agreement sets forth the entire agreement between the Parties with respect to the subject matter hereof, and supersedes any and all prior agreements between the Company and Executive, whether written or oral, relating to any or all matters covered by and contained or otherwise dealt with in this Agreement. This Agreement does not constitute a commitment of the Company with regard to Executive’s employment, express or implied, other than to the extent expressly provided for herein.

7.6.           Amendment. No modification, change or amendment of this Agreement or any of its provisions shall be valid, unless in a writing signed by the Parties and approved by the Compensation Committee.

7.7.           Authority. The Parties each represent and warrant that it/he has the power, authority and right to enter into this Agreement and to carry out and perform the terms, covenants and conditions hereof.

7.8.           Attorneys’ Fees. If either Party hereto commences an arbitration or other action against the other Party to enforce any of the terms hereof or because of the breach by such other Party of any of the terms hereof, the prevailing Party shall be entitled, in addition to any other relief granted, to all actual out-of-pocket costs and expenses incurred by such prevailing Party in connection with such action, including, without limitation, all reasonable attorneys’ fees, and a right to such costs and expenses shall be deemed to have accrued upon the commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.

7.9.           Construction. When used in this Agreement, unless a contrary intention appears: (i) a term has the meaning assigned to it; (ii) “or” is not exclusive; (iii) “including” means including without limitation; (iv) words in the singular include the plural and words in the plural include the singular, and words importing the masculine gender include the feminine and neuter genders; (v) any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; (vi) the words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision hereof; (vii) references contained herein to Article, Section, Schedule and Exhibit, as applicable, are references to Articles, Sections, Schedules and Exhibits in this Agreement unless otherwise specified; (viii) references to “writing” include printing, typing, lithography and other means of reproducing words in a visible form, including, but not limited to email; (ix) references to “dollars”, “Dollars” or “$” in this Agreement shall mean United States dollars; (x) reference to a particular statute, regulation or Law means such statute, regulation or Law as amended or otherwise modified from time to time; (xi) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein); (xii) unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each mean “to but excluding”; (xiii) references to “days” shall mean calendar days; and (xiv) the paragraph headings contained in this Agreement are for convenience only, and shall in no manner be construed as part of this Agreement.

 

 

 

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7.10.           Governing Law. This Agreement, and all of the rights and obligations of the Parties in connection with the employment relationship established hereby, shall be governed by and construed in accordance with the substantive laws of the State of Texas without giving effect to principles relating to conflicts of law.

7.11.           Survival. The termination of Executive’s employment with the Company pursuant to the provisions of this Agreement shall not affect Executive’s obligations to the Company hereunder which by the nature thereof are intended to survive any such termination, including, without limitation, Executive’s obligations under Section 1.3 and ARTICLE IV of this Agreement.

 

7.12.           Section 280G Safe Harbor Cap. In the event it shall be determined that any payment or distribution or any part thereof of any type to or for the benefit of Executive whether pursuant to the Agreement or any other agreement between Executive and the Company, or any person or entity that acquires ownership or effective control the Company or ownership of a substantial portion of the Company’s assets (within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (the “Code”)) whether paid or payable or distributed or distributable pursuant to the terms of the Agreement or any other agreement, (the “Total Payments”), is or will be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Total Payments shall be reduced to the maximum amount that could be paid to Executive without giving rise to the Excise Tax (the “Safe Harbor Cap”), if the net after-tax payment to Executive after reducing Executive’s Total Payments to the Safe Harbor Cap is greater than the net after-tax (including the Excise Tax) payment to Executive without such reduction. The reduction of the amounts payable hereunder, if applicable, shall be made by reducing first the payment made pursuant to the Agreement and then to any other agreement that triggers such Excise Tax, unless an alternative method of reduction is elected by Executive. All mathematical determinations, and all determinations as to whether any of the Total Payments are “parachute payments” (within the meaning of Section 280G of the Code), that are required to be made under ARTICLE III, including determinations as to whether the Total Payments to Executive shall be reduced to the Safe Harbor Cap and the assumptions to be utilized in arriving at such determinations, shall be made by a nationally recognized accounting firm selected by the Company (the “Accounting Firm”). If the Accounting Firm determines that the Total Payments to Executive shall be reduced to the Safe Harbor Cap (the “Cutback Payment”) and it is established pursuant to a final determination of a court or an Internal Revenue Service (the “IRS”) proceeding which has been finally and conclusively resolved, that the Cutback Payment is in excess of the limitations provided in this Section 7.12 (hereinafter referred to as an “Excess Payment”), such Excess Payment shall be deemed for all purposes to be an overpayment to Executive made on the date such Executive received the Excess Payment and Executive shall repay the Excess Payment to the Company on demand; provided, however, if Executive shall be required to pay an Excise Tax by reason of receiving such Excess Payment (regardless of the obligation to repay the Company), Executive shall not be required to repay the Excess Payment (if Executive has already repaid such amount, the Company shall refund the amount to the Executive), and the Company shall pay Executive an amount equal to the difference between the Total Payments and the Safe Harbor Cap (provided that such amount has previously been repaid by the Executive or not previously paid by the Company).

 

 

 

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7.13.           Section 409A and 457A Compliance. To the extent applicable, this Agreement is intended to meet the requirements of Section 409A and 457A of the Code, and shall be interpreted and construed consistent with that intent. For purposes of this Agreement, each payment under this Agreement shall be considered a “separate payment” and not as part of a series of payments for purposes of Section 409A.

7.14.           Clawback. Notwithstanding any provision in this Agreement to the contrary, any portion of the payments and benefits provided under this Agreement, as well as any other payments and benefits which the Executive receives pursuant to a Company plan or other arrangement, shall be subject to a clawback to the extent necessary to comply with the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act or any Securities and Exchange Commission rule.

7.15.           Legal Counsel. Executive acknowledges and warrants that (A) he has been advised that Executive’s interests may be different from the Company’s interests, (B) he has been afforded a reasonable opportunity to review this Agreement, to understand its terms and to discuss it with an attorney and/or financial advisor of his choice and (C) he knowingly and voluntarily entered into this Agreement. The Company and Executive shall each bear their own costs and expenses in connection with the negotiation and execution of this Agreement.

7.16.           Counterparts, Effect of Facsimile, Emailed and Photocopied Signatures. This Agreement and any signed agreement or instrument entered into in connection with this Agreement, and any amendments hereto or thereto, may be executed in one or more counterparts, all of which shall constitute one and the same instrument. Any such counterpart, to the extent delivered by means of a facsimile machine or by .pdf, .tif, .gif, .peg or similar attachment to electronic mail (any such delivery, an “Electronic Delivery”) shall be treated in all manners and respects as an original executed counterpart and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of any Party, each other Party shall re execute the original form of this Agreement and deliver such form to all other Parties. No Party shall raise the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such Party forever waives any such defense, except to the extent such defense relates to lack of authenticity.

[Remainder of page left intentionally blank. Signature page follows]

 

 

 

 

 

 

 

 

 

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This Agreement contains provisions requiring binding arbitration of disputes. By signing this Agreement, Executive acknowledges that he (i) has read and understood the entire Agreement; (ii) has received a copy of it (iii) has had the opportunity to ask questions and consult counsel or other advisors about its terms; and (iv) agrees to be bound by it.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written.

 

	
“COMPANY”

	
 

VERTEX ENERGY, INC.

a Nevada corporation

 

By: /s/ Benjamin P. Cowart

Name: Benjamin P. Cowart

Title: Chief Executive Officer

 

 

 

	
“EXECUTIVE”

	
 

/s/ John Strickland

John Strickland

 

 

 

	  	  

 

 

 

 

 

 

 

 

 

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AT-WILL EMPLOYMENT, CONFIDENTIAL INFORMATION,

INVENTION ASSIGNMENT

AND ARBITRATION AGREEMENT

 

As a condition of my employment with Vertex Energy, Inc., a Nevada corporation, and/or any of its subsidiaries, affiliates, partners, successors or assigns (together the “Company”), and in consideration of my employment with the Company, ten dollars ($10) and other good and valuable consideration, which I confirm receipt and sufficiency of, and my receipt of the compensation now and hereafter paid to me by the Company, I (the “Employee”) agree to the following:

 

1.           At-Will Employment.

 

I understand and acknowledge that, notwithstanding the terms of any employment agreement or understanding between myself and the Company, my employment with the Company constitutes “at-will” employment. I also understand that any representation to the contrary is unauthorized and not valid unless obtained in writing and signed by an authorized corporate representative of the Company. I acknowledge that this employment relationship may be terminated at any time, with or without good cause or for any or no cause, at the option either of the Company or myself, with or without notice, pursuant to where applicable, the terms and provisions of any employment agreement or understanding between myself and the Company.

 

2.           Confidential Information.

 

A.           Company Information. I agree at all times during the term of my employment and thereafter, to hold in strictest confidence, and not to use, except for the benefit of the Company, or to disclose to any person, firm or corporation without written authorization of the Board of Directors of the Company, any Confidential Information of the Company, except under a non-disclosure agreement duly authorized and executed by the Company. I understand that “Confidential Information” means any non-public information that relates to the actual or anticipated business or research and development of the Company, technical data, trade secrets or know-how, including, but not limited to, research, product plans or other information regarding the Company’s products or services and markets therefor, customer lists and customers (including, but not limited to, customers of the Company on whom I called or with whom I became acquainted during the term of my employment), software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances or other business information. I further understand that Confidential Information does not include any of the foregoing items which have become publicly known and made generally available through no wrongful act of mine or of others who were under confidentiality obligations as to the item or items involved or improvements or new versions thereof.

 

B.           Former Employer Information. I agree that I will not, during my employment with the Company, improperly use or disclose any proprietary information or trade secrets of any former or concurrent employer or other person or entity and that I will not bring onto the premises of the Company any unpublished document or proprietary information belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity.

 

C.           Third Party Information. I recognize that the Company has received and in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. I agree to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out my work for the Company consistent with the Company’s agreement with such third party.

 

3.           Inventions.

 

A.           Inventions Retained and Licensed. I have attached hereto, as Exhibit A, a list describing all inventions, original works of authorship, developments, improvements, and trade secrets which were made by me prior to my employment with the Company (collectively referred to as “Prior Inventions”), which belong to me, which relate to the Company’s proposed business, products or research and development, and which are not assigned to the Company hereunder; or, if no such list is attached, I represent that there are no such Prior Inventions. If in the course of my employment with the Company, I incorporate into a Company product, process or service a Prior Invention owned by me or in which I have an interest, I hereby grant to the Company a nonexclusive, royalty-free, fully paid-up, irrevocable, perpetual, worldwide license to make, have made, modify, use and sell such Prior Invention as part of or in connection with such product, process or service, and to practice any method related thereto.

 

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B.           Assignment of Inventions. I agree that I will promptly make full written disclosure to the Company, will hold in trust for the sole right and benefit of the Company, and hereby assign to the Company, or its designee, all my right, title, and interest in and to any and all inventions, original works of authorship, developments, concepts, improvements, designs, discoveries, ideas, trademarks or trade secrets, whether or not patentable or registrable under copyright or similar laws, which I may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during the entire period of time I am in the employ of the Company (whether before or after the execution of this Agreement) (collectively referred to as “Inventions”). I further acknowledge that all original works of authorship which are made by me (solely or jointly with others) within the scope of and during the period of my employment with the Company (whether before or after the execution of this Agreement) and which are protectible by copyright are “works made for hire,” as that term is defined in the United States Copyright Act. Employee understands that this means that the Company will have the right to undertake any of the actions set forth in section 106 of the United States Copyright Act (17 U.S.C. § 106) with respect to such copyrightable works prepared by Employee within the scope of Employee’s employment. Employee understands that this includes, without limitation, the right to sell, license, use, reproduce and have reproduced, create derivative works of, distribute, display, transmit and otherwise commercially exploit such copyrightable works by all means without further compensating the Employee. I understand and agree that the decision whether or not to commercialize or market any invention developed by me solely or jointly with others is within the Company’s sole discretion and for the Company’s sole benefit and that no royalty will be due to me as a result of the Company’s efforts to commercialize or market any such invention.

 

C.           Assignment of Other Rights. In addition to the foregoing assignment of Inventions to the Company, Employee hereby irrevocably transfers and assigns to the Company: (i) all worldwide patents, patent applications, copyrights, mask works, trade secrets and other intellectual property rights in any Assigned Inventions; and (ii) any and all “Moral Rights” (as defined below) that Employee may have in or with respect to any Inventions. Employee also hereby forever waives and agrees never to assert any and all Moral Rights Employee may have in or with respect to any Inventions, even after termination of Employee’s work on behalf of the Company. “Moral Rights” means any rights to claim authorship of any Inventions, to object to or prevent the modification of any Inventions, or to withdraw from circulation or control the publication or distribution of any Inventions, and any similar right, existing under judicial or statutory law of any country in the world, or under any treaty, regardless of whether or not such right is denominated or generally referred to as a “moral right”.

 

D.           Inventions Assigned to the United States. I agree to assign to the United States government all my right, title, and interest in and to any and all Inventions whenever such full title is required to be in the United States by a contract between the Company and the United States or any of its agencies.

 

E.           Maintenance of Records. I agree to keep and maintain adequate and current written records of all Inventions made by me (solely or jointly with others) during the term of my employment with the Company. The records will be in the form of notes, sketches, drawings, and any other format that may be specified by the Company. The records will be available to and remain the sole property of the Company at all times.

 

F.           Patent and Copyright Registrations. I agree to assist the Company, or its designee, at the Company’s expense, in every proper way to secure the Company’s rights in the Inventions and any copyrights, patents, mask work rights or other intellectual property rights relating thereto in any and all countries, including the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments which the Company shall deem necessary in order to apply for and obtain such rights and in order to assign and convey to the Company, its successors, assigns, and nominees the sole and exclusive rights, title and interest in and to such Inventions, and any copyrights, patents, mask work rights or other intellectual property rights relating thereto. I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such instrument or papers shall continue after the termination of this Agreement. If the Company is unable because of my mental or physical incapacity or for any other reason to secure my signature to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering Inventions or original works of authorship assigned to the Company as above, then I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent or copyright registrations thereon with the same legal force and effect as if executed by me.

 

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4.           Conflicting Employment. I agree that, during the term of my employment with the Company, I will not engage in any other employment, occupation or consulting directly related to the business in which the Company is now involved or becomes involved during the term of my employment, nor will I engage in any other activities that conflict with my obligations to the Company.

 

5.           Returning Company Documents. I agree that, at the time of leaving the employ of the Company, I will deliver to the Company (and will not keep in my possession, recreate or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other documents or property, or reproductions of any aforementioned items developed by me pursuant to my employment with the Company or otherwise belonging to the Company, its successors or assigns, including, without limitation, those records maintained pursuant to Section 3.E. In the event of the termination of my employment, I agree to sign and deliver the “Termination Certification” attached hereto as Exhibit B.

 

6.           Notification of New Employer. In the event that I leave the employ of the Company, I hereby grant consent to notification by the Company to my new employer about my rights and obligations under this Agreement.

 

7.           Solicitation of Employees. I agree that for a period of twelve (12) months immediately following the termination of my relationship with the Company for any reason, whether with or without cause, I will not either directly or indirectly solicit, induce, recruit or encourage any of the Company’s employees to leave their employment or the Company’s customers to remove or reduce their business with the Company, or take away such employees or customers, or attempt to solicit, induce, recruit, encourage or take away employees or customers of the Company, either for myself or for any other person or entity.

 

8.           Conflict of Interest Guidelines. I agree to diligently adhere to the Conflict of Interest Guidelines attached as Exhibit C hereto.

 

9.           Representations. I agree to execute any proper oath or verify any proper document required to carry out the terms of this Agreement. I represent that my performance of all the terms of this Agreement will not breach any agreement to keep in confidence proprietary information acquired by me in confidence or in trust prior to my employment by the Company. I hereby represent and warrant that I have not entered into, and I will not enter into, any oral or written agreement in conflict herewith.

 

10.         Arbitration and Equitable Relief.

 

A.           Arbitration. In consideration of my employment with the Company, its promise to arbitrate all employment-related disputes and my receipt of the compensation, pay raises and other benefits paid to me by the Company, at present and in the future, I agree that any and all controversies, claims, or disputes with anyone (including the Company and any employee, officer, director, stockholder or benefit plan of the Company in their capacity as such or otherwise) arising out of, relating to, or resulting from my employment with the Company or the termination of my employment with the Company, including any breach of this Agreement, will be subject to binding arbitration, to the fullest extent permitted by law. Disputes which I agree to arbitrate, and thereby agree to waive any right to a trial by jury, include any statutory claims under state or federal law, including, but not limited to, claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, claims of harassment, discrimination or wrongful termination and any statutory claims. I further understand that this agreement to arbitrate also applies to any disputes that the Company may have with me.

 

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B.           Procedure. I agree that any arbitration will be administered by the American Arbitration Association (“AAA”) and that the neutral arbitrator will be selected in a manner consistent with its national rules for the resolution of employment disputes. I agree that the arbitrator will have the power to decide any motions brought by any party to the arbitration, including motions for summary judgment and/or adjudication and motions to dismiss and demurrers, prior to any arbitration hearing. I also agree that the arbitrator will have the power to award any remedies, including attorneys’ fees and costs, available under applicable law. I understand the Company will pay for any administrative or hearing fees charged by the arbitrator or AAA except that I will pay the first $200.00 of any filing fees associated with any arbitration I initiate. I agree that the arbitrator will administer and conduct any arbitration in a manner consistent with AAA’s national rules, to the extent that the AAA’s national rules for the resolution of employment disputes do not conflict with applicable law. I agree that the decision of the arbitrator will be in writing. Any procedure for remedying disputes as set forth in any employment agreement or understanding between myself and the Company shall supersede and take precedence over the Procedure set forth in this Section 10.B.

 

C.           Remedy. Except as provided by law and this Agreement (or provided for in any employment agreement or understanding between myself and the Company), arbitration will be the sole, exclusive and final remedy for any dispute between me and the Company. Accordingly, except as provided for by law and this Agreement, neither I nor the Company will be permitted to pursue court action regarding claims that are subject to arbitration. Notwithstanding, the arbitrator will not have the authority to disregard or refuse to enforce any lawful Company policy, and the arbitrator will not order or require the Company to adopt a policy not otherwise required by law which the Company has not adopted.

 

D.           Availability of Injunctive Relief. In addition to any right under applicable law that the Company or I may have to petition a court of competent jurisdiction for provisional relief, I agree that any party may also petition the arbitrator for provisional injunctive relief where either party alleges or claims a violation of the employment, confidential information, invention assignment agreement between me and the Company or any other agreement regarding trade secrets, confidential information, or non-solicitation. I understand that any breach or threatened breach of such an agreement will cause irreparable injury and that money damages will not provide an adequate remedy therefor and both parties hereby consent to the issuance of an injunction. In the event either party seeks injunctive relief, the prevailing party will be entitled to recover reasonable costs and attorneys’ fees.

 

E.           Administrative Relief. I understand that this Agreement does not prohibit me from pursuing an administrative claim with a local, state or federal administrative body. This Agreement does, however, preclude me from pursuing court action regarding any such claim.

 

F.           Voluntary Nature of Agreement. I acknowledge and agree that I am executing this Agreement voluntarily and without any duress or undue influence by the Company or anyone else. I further acknowledge and agree that I have carefully read this Agreement and that I have asked any questions needed for me to understand the terms, consequences and binding effect of this Agreement and fully understand it, including that I AM WAIVING MY RIGHT TO A JURY TRIAL. Finally, I agree that I have been provided an opportunity to seek the advice of an attorney of my choice before signing this Agreement.

 

11.           General Provisions.

 

A.           Governing Law, Consent to Personal Jurisdiction. This Agreement will be governed by the laws of the State of Texas. I hereby expressly consent to the personal jurisdiction of the state and federal courts located in Texas for any lawsuit filed there against me by the Company arising from or relating to this Agreement.

 

AT-WILL EMPLOYMENT, CONFIDENTIAL INFORMATION, INVENTION ASSIGNMENT, AND ARBITRATION AGREEMENT

  

Page 4 of 5

  

B.           Entire Agreement. This Agreement, along with my offer letter of employment (if any), employment agreement or understanding, sets forth the entire agreement and understanding between the Company and me relating to the subject matter herein and supersedes all prior discussions or representations between us including, but not limited to, any representations made during my interview(s) or relocation negotiations, whether written or oral. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing signed by an authorized officer of the Company (other than me) and me. Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement. This Agreement prevails and supersedes in the event there is any inconsistency between this Agreement and any other offer letter, unless the offer letter expressly provides otherwise. The terms of this Agreement shall supersede and amend, effective as of the date hereof, any prior At Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement entered into by the Employee in favor of the Company, provided that such prior At Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement shall continue to bind the Employee and be enforceable by the Company against the Employee for all actions, events, occurrences and other matters between the date hereof through the date of this Agreement below. The terms of any employment agreement or understanding between myself and the Company shall prevails and supersede, where and to the extent applicable, in the event there is any inconsistency between this Agreement and such employment agreement or understanding, unless the employment agreement or understanding expressly provides otherwise.

 

C.           Severability. If one or more of the provisions in this Agreement are deemed void by law, then the remaining provisions will continue in full force and effect.

 

D.           Successors and Assigns. This Agreement will be binding upon my heirs, executors, administrators and other legal representatives and will be for the benefit of the Company, its successors, and its assigns.

 

 

	
Date: 10/17/15

	
/s/ John Strickland

Signature

 

	
  

	
John Strickland

	
  

	
Name of Employee (typed or printed)

 

AT-WILL EMPLOYMENT, CONFIDENTIAL INFORMATION, INVENTION ASSIGNMENT, AND ARBITRATION AGREEMENT

  

Page 5 of 5

  

EXHIBIT A

 

LIST OF PRIOR INVENTIONS

 

AND ORIGINAL WORKS OF AUTHORSHIP

 

	

 

Title

	

 

Date

	

 

Identifying Number

or Brief Description

	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  

________No inventions or improvements

 

 

________Additional Sheets Attached

 

 

Signature of Employee: _________________________                                                                                               

 

Print Name of Employee: John Strickland

 

Date: _______________________________                                                                                             

 

 

 

  

  

  

EXHIBIT B

 

TERMINATION CERTIFICATION

 

This is to certify that I do not have in my possession, nor have I failed to return, any devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other documents or property, or reproductions of any aforementioned items belonging to Vertex Energy, Inc., a Nevada corporation, and/or its subsidiaries, affiliates, partners, predecessors, successors or assigns (together, the “Company”).

 

I further certify that I have complied with all the terms of the Company’s At-Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement signed by me, including the reporting of any inventions and original works of authorship (as defined therein), conceived or made by me (solely or jointly with others) covered by that agreement.

 

I further agree that, in compliance with the At-Will Employment, Confidential Information, Invention Assignment, and Arbitration Agreement, I will preserve as confidential all trade secrets, confidential knowledge, data or other proprietary information relating to products, processes, know-how, designs, formulas, developmental or experimental work, computer programs, data bases, other original works of authorship, customer lists, business plans, financial information or other subject matter pertaining to any business of the Company or any of its employees, clients, consultants or licensees.

 

I agree that for a period of twelve (12) months immediately following the termination of my relationship with the Company for any reason, whether with or without cause, I shall not either directly or indirectly solicit, induce, recruit or encourage any of the Company’s employees to leave their employment or customers to remove or reduce their business with, or take away such employees or customers, or attempt to solicit, induce, recruit, encourage or take away employees or customers of the Company, either for myself or for any other person or entity.

 

 

 

	
Date: _____________________

	
___________________________

(Employee’s Signature)

 

 

	
  

	
John Strickland

	
  

	
(Type/Print Employee’s Name)

 

  

  

  

EXHIBIT C

 

CONFLICT OF INTEREST GUIDELINES

 

It is the policy of Vertex Energy, Inc., a Nevada corporation (the “Company”) to conduct its affairs in strict compliance with the letter and spirit of the law and to adhere to the highest principles of business ethics. Accordingly, all officers, employees and independent contractors must avoid activities which are in conflict, or give the appearance of being in conflict, with these principles and with the interests of the Company. The following are potentially compromising situations which must be avoided. Any exceptions must be reported to an authorized officer of the Company (other than me) and written approval for continuation must be obtained.

 

1.           Revealing confidential information to outsiders or misusing confidential information. Unauthorized divulging of information is a violation of this policy whether or not for personal gain and whether or not harm to the Company is intended. (The At-Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement elaborates on this principle and is binding).

 

2.           Accepting or offering substantial gifts, excessive entertainment, favors or payments which may be deemed to constitute undue influence or otherwise be improper or embarrassing to the Company.

 

3.           Participating in civic or professional organizations that might involve divulging confidential information of the Company.

 

4.           Initiating or approving personnel actions affecting reward or punishment of employees or applicants where there is a family relationship or is or appears to be a personal or social involvement.

 

5.           Initiating or approving any form of personal or social harassment of employees.

 

6.           Investing or holding outside directorship in suppliers, customers, or competing companies, including financial speculations, where such investment or directorship might influence in any manner a decision or course of action of the Company.

 

7.           Borrowing from or lending to employees, customers or suppliers.

 

8.           Acquiring real estate of interest to the Company.

 

9.           Improperly using or disclosing to the Company any proprietary information or trade secrets of any former or concurrent employer or other person or entity with whom obligations of confidentiality exist.

 

10.           Unlawfully discussing prices, costs, customers, sales or markets with competing companies or their employees.

 

11.           Making any unlawful agreement with distributors with respect to prices.

 

12.           Improperly using or authorizing the use of any inventions which are the subject of patent claims of any other person or entity.

 

13.           Engaging in any conduct which is not in the best interest of the Company.

 

Each officer, employee and independent contractor must take every necessary action to ensure compliance with these guidelines and to bring problem areas to the attention of higher management for review. Violations of this conflict of interest policy may result in discharge without warning.EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 
 SHARE
PURCHASE AGREEMENT 
 BY AND BETWEEN 

OPRAH WINFREY 
 AND

 WEIGHT WATCHERS INTERNATIONAL, INC. 

DATED AS OF OCTOBER 18, 2015 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
		
	Article I DEFINITIONS	  	 	1	  
	 Section 1.1.
	 	 Defined Terms
	  	 	1	  
		
	Article II ISSUANCE OF THE PURCHASED SHARES	  	 	6	  
	 Section 2.1.
	 	 Share Purchase
	  	 	6	  
	 Section 2.2.
	 	 Closing
	  	 	7	  
	 Section 2.3.
	 	 Transactions to be Effected At or Prior to the Closing
	  	 	7	  
		
	Article III REPRESENTATIONS AND WARRANTIES	  	 	8	  
	 Section 3.1.
	 	 Representations and Warranties of the Company
	  	 	8	  
	 Section 3.2.
	 	 Representations and Warranties of OW
	  	 	10	  
		
	Article IV BOARD NOMINATION RIGHTS	  	 	11	  
	 Section 4.1.
	 	 Director Designee
	  	 	11	  
	 Section 4.2.
	 	 Obligations of the Company
	  	 	12	  
	 Section 4.3.
	 	 Eligibility of Director Designee
	  	 	12	  
	 Section 4.4.
	 	 Resignation
	  	 	13	  
	 Section 4.5.
	 	 Termination
	  	 	13	  
	 Section 4.6.
	 	 Director Designee’s Remedies
	  	 	13	  
		
	Article V RESTRICTIONS ON TRANSFER	  	 	14	  
	 Section 5.1.
	 	 Restrictions on Transfer
	  	 	14	  
	 Section 5.2.
	 	 Remedy for Prohibited Transfer
	  	 	15	  
	 Section 5.3.
	 	 Share Adjustments
	  	 	15	  
		
	Article VI REGISTRATION RIGHTS	  	 	16	  
	 Section 6.1.
	 	 Demand Registration
	  	 	16	  
	 Section 6.2.
	 	 Piggyback Registrations
	  	 	16	  
	 Section 6.3.
	 	 Priority on Registrations
	  	 	17	  
	 Section 6.4.
	 	 Termination, Effectiveness, Postponement and Suspension of Registration
	  	 	18	  
	 Section 6.5.
	 	 Expenses of Registration
	  	 	19	  
	 Section 6.6.
	 	 Obligations of the Company
	  	 	20	  
	 Section 6.7.
	 	 Delay of Registration; Furnishing Information
	  	 	23	  
	 Section 6.8.
	 	 Indemnification
	  	 	23	  
	 Section 6.9.
	 	 “Market Stand-Off” Agreement
	  	 	26	  
	 Section 6.10.
	 	 Agreement to Furnish Information
	  	 	26	  
	 Section 6.11.
	 	 Termination
	  	 	27	  
		
	Article VII RIGHT OF FIRST OFFER AND RIGHT OF FIRST REFUSAL	  	 	27	  
	 Section 7.1.
	 	 Right of First Offer for 144 Sales
	  	 	27	  
	 Section 7.2.
	 	 Right of First Refusal
	  	 	28	  
		
	Article VIII MISCELLANEOUS	  	 	29	  
	 Section 8.1.
	 	 Notices
	  	 	29	  

  
 i 

							
	 Section 8.2.
	 	 Further Assurances
	  	 	30	  
	 Section 8.3.
	 	 Amendments and Waivers
	  	 	30	  
	 Section 8.4.
	 	 Fees and Expenses
	  	 	30	  
	 Section 8.5.
	 	 Successors and Assigns
	  	 	30	  
	 Section 8.6.
	 	 Termination
	  	 	31	  
	 Section 8.7.
	 	 Governing Law
	  	 	31	  
	 Section 8.8.
	 	 Entire Agreement
	  	 	31	  
	 Section 8.9.
	 	 Effect of Headings
	  	 	32	  
	 Section 8.10.
	 	 Severability
	  	 	32	  
	 Section 8.11.
	 	 Counterparts; Third Party Beneficiaries
	  	 	32	  
	 Section 8.12.
	 	 Specific Performance
	  	 	32	  

  

			
	Exhibit A	 	Form of Joinder Agreement

  
 ii 

 INDEX OF DEFINED TERMS 

 

					
	 	  	Page	 
		
	 Agreement
	  	 	1	  
	 Artal
	  	 	1	  
	 Closing
	  	 	7	  
	 Closing Date
	  	 	7	  
	 Common Stock
	  	 	1	  
	 Company
	  	 	1	  
	 Custody Agreement and Power of Attorney
	  	 	17	  
	 Demand Right
	  	 	16	  
	 Director Designee
	  	 	11	  
	 End Date
	  	 	31	  
	 Enforceability Exceptions
	  	 	8	  
	 family member
	  	 	2	  
	 Final Determination
	  	 	13	  
	 Governmental Entity
	  	 	9	  
	 Holder Violation
	  	 	24	  
	 Indemnified Party
	  	 	24	  
	 Indemnifying Party
	  	 	25	  
	 Material Adverse Effect
	  	 	8	  
	 Non-Company Indemnified Parties
	  	 	23	  
	 Observer
	  	 	11	  
	 Other Piggyback Holders
	  	 	16	  
	 Permitted Estate Vehicles
	  	 	3	  
	 Preferred Stock
	  	 	8	  
	 Purchase Price
	  	 	7	  
	 Purchased Shares
	  	 	1	  
	 Registrable Securities
	  	 	16	  
	 ROFO Purchase Notice
	  	 	27	  
	 ROFO Sale Notice
	  	 	27	  
	 ROFO Sale Price
	  	 	27	  
	 ROFO Transfer Period
	  	 	28	  
	 ROFR Purchase Notice
	  	 	28	  
	 ROFR Sale Documentation
	  	 	28	  
	 ROFR Sale Notice
	  	 	28	  
	 ROFR Sale Price
	  	 	28	  
	 ROFR Shares
	  	 	28	  
	 ROFR Transfer Period
	  	 	29	  
	 Schedule 14C Information Statement
	  	 	9	  
	 SEC Reports
	  	 	9	  
	 Share Purchase
	  	 	7	  
	 Shareholder Consent
	  	 	7	  
	 Shares
	  	 	14	  
	 Suspension Period
	  	 	19	  
	 Underwriting Agreement
	  	 	17	  
	 Violation
	  	 	23	  

  
 iii 

 SHARE PURCHASE AGREEMENT 

SHARE PURCHASE AGREEMENT, dated as of October 18, 2015 (as amended, supplemented or otherwise modified from time to time, this
“Agreement”), by and between Oprah Winfrey, an individual having a mailing address at c/o Harpo, Inc. 1041 North Formosa Avenue, West Hollywood, CA 90046 (“OW”), and Weight Watchers International,
Inc., a Virginia corporation (the “Company”). 
 W I T N E S S E T H: 

WHEREAS, the Company desires to issue and sell, and OW desires to purchase, 6,362,103 shares (the “Purchased Shares”)
of the Company’s common stock, no par value per share (the “Common Stock”), on the terms set forth herein; and 

WHEREAS, substantially concurrently with the execution and delivery of this Agreement, the Company and OW shall execute and deliver the Option
Agreement (as defined below) and the Company and OW shall execute and deliver the Strategic Collaboration Agreement (as defined below), and the Company shall on the date hereof issue the Granted Options to OW pursuant to the Option Agreement; and

 WHEREAS, substantially concurrently with the execution and delivery of this Agreement, Artal Luxembourg S.A., a Luxembourg Societe
Anonyme (“Artal”), and OW shall execute and deliver the Voting Agreement (as defined below). 
 NOW THEREFORE, in
consideration of the foregoing and the mutual representations, warranties, covenants and agreements herein contained, and intending to be legally bound hereby, the parties hereto agree as follows: 

ARTICLE I 
 DEFINITIONS

 Section 1.1. Defined Terms. 

(a) “144 Sale” means (i) a Transfer of Shares (including in any broker assisted cashless exercise) pursuant to
Rule 144 under the Securities Act and (ii) for purposes of Article VII only, any Transfer of Shares pursuant to a Resale Shelf Registration Statement. 

(b) “Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or
under direct or indirect common control with such specified Person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common
control with”), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise. 

  
 1 

 (c) “Articles” means the Company’s Amended and Restated Articles of
Incorporation, as amended, as in effect as of the date hereof. 
 (d) “Board of Directors” means the Board of
Directors of the Company. 
 (e) “Bylaws” means the Amended and Restated Bylaws of the Company, as in effect as of
the date hereof. 
 (f) “Change in Control” means the occurrence of any of the following: 

(1) the sale, lease or transfer, in one or a series of related transactions, of all or substantially all of the assets of the Company to any
Person other than a Permitted Holder; or 
 (2) at any time, the Company becomes aware of (by way of a report or any other filing pursuant to
Section 13(d) of the Exchange Act, proxy, vote, written notice or otherwise) the acquisition by any Person or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision), other
than the Permitted Holders, in a single transaction or in a related series of transactions, by way of merger, consolidation or other business combination or purchase of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act,
or any successor provision) of 50% or more of the total voting power of the Voting Stock of the Company. 
 (g) “Charitable
Organization” means The Oprah Winfrey Charitable Foundation or any successor thereto that is an organization described in paragraphs (1) through (5) of Section 170(c) or Section 501(c)(3) of the Internal Revenue Code
of 1986, as amended. 
 (h) “Eligible Registration Statement” means any registration statement (other than
(i) a registration statement on Form S-4 or Form S-8 or any similar or successor form or (ii) with respect to any corporate reorganization or transaction under Rule 145 of the Securities Act or other business combination or acquisition
transaction, any registration statement related to the issuance or resale of securities issued in such a transaction) filed by the Company under the Securities Act in connection with any primary or secondary offering of Common Stock for the account
of the Company and/or any shareholder of the Company, whether or not through the exercise of any registration rights. 
 (i)
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (j) “Family Member”
means, with respect to any natural person, (i) any child, stepchild, grandchild or more remote issue, parent, stepparent, grandparent, spouse, domestic partner, sibling, child of sibling, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, sister-in-law, cousin and adoptive relationships (each, a “family member”) or estate of such family member or (ii) any foundation, trust, family limited partnership, family limited
liability company or other entity created and used for estate planning purposes, so long as any such foundation, trust, family limited partnership, family limited liability company or other entity is controlled by, for the benefit of, or owned by
such natural person or one or more persons described in clause (i) (such entities referred to in this clause (ii), the “Permitted Estate Vehicles”). 

  
 2 

 (k) “GAAP” means U.S. generally accepted accounting principles. 

(l) “Granted Options” means the options granted pursuant to the Option Agreement pursuant to which 3,513,468 shares of
Common Stock are issuable upon the exercise thereof. 
 (m) “Holder” means any Person owning of record Common Stock
or options exercisable for, with or without consideration, any Common Stock. 
 (n) “Investors” means
(i) Artal, (ii) Oprah Winfrey and her Family Members and (iii) the Charitable Organization. 
 (o)
“Law” means any domestic or foreign, U.S. Federal, state, municipality or local law, statute, ordinance, code, rule, or regulation or common law. 

(p) “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of
any kind in respect of such asset, including any agreement to give any of the foregoing. 
 (q) “Lock-Up Securities”
means (i) any Common Stock or Preferred Stock of the Company, (ii) any security convertible into or exercisable or exchangeable for, with or without consideration, any Common Stock or Preferred Stock of the Company (including any option to
purchase such a security), (iii) any security carrying any option, warrant or right to subscribe to or purchase any Common Stock or Preferred Stock of the Company or other security referred to in clause (ii), or (iv) any such option,
warrant or right. 
 (r) “Option Agreement” means the Weight Watchers International, Inc. Consultant Term Sheet for
Consultant Stock Option Awards, including the Terms and Conditions relating thereto, dated the date hereof, pursuant to which the Granted Options are granted to OW by the Company. 

(s) “Order” means any decree, order, judgment, writ, award, injunction, rule or consent of or by a Governmental
Entity. 
 (t) “OW Group” means OW and each and every OW Transferee. Unless the Company is otherwise notified in
writing by OW, OW shall at all times serve as the designated representative to act on behalf of the OW Group for purposes of this Agreement and shall have the sole power and authority to bind the OW Group with respect to all provisions of this
Agreement; provided, however, that if OW ceases to serve as the designated representative of the OW Group, then OW (or her designated legal representative in the case of her death or permanent disability) shall have the power to designate a new
designated representative of the OW Group, which designee (and any successor thereafter designated and appointed) shall have the sole power and authority to bind the OW Group with respect to all provisions of this Agreement. The Company shall be
entitled to rely on all actions taken by OW or such designee on behalf of the OW Group. 

  
 3 

 (u) “OW Transferee” means each and every direct and indirect transferee
of OW (including transferees of Shares from any member of the OW Group so long as such Shares were originally held by OW) pursuant to a Permitted Transfer (excluding clause (iv) of the definition of “Permitted Transfer”). 

(v) “Permitted Amount” means the number of shares of Purchased Shares that is the product of (x) the Permitted
Percentage and (y) the number of Purchased Shares purchased pursuant to this Agreement, subject to adjustments pursuant to Section 5.3. 

(w) “Permitted Holders” means each of (i) the Investors and their respective Affiliates and members of management
of the Company and (ii) any group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act or any successor provision) of which any of the foregoing are members; provided that in the case of such group, without
giving effect to such group, Persons specified in clause (i) must collectively beneficially own a majority of the total voting power of the Voting Stock of the Company beneficially owned by such group. 

(x) “Permitted Option Percentage” means (i) from the date of this Agreement to but excluding the first
anniversary of this Agreement, 0%, (ii) from the first anniversary of this Agreement to but excluding the second anniversary of this Agreement, 20%, (iii) from the second anniversary of this Agreement to but excluding the third anniversary
of this Agreement, 40%, (iii) from the third anniversary of this Agreement to but excluding the fourth anniversary of this Agreement, 60%, (iv) from the fourth anniversary of this Agreement to but excluding the fifth anniversary of this
Agreement, 80% and (v) from and after the fifth anniversary of this Agreement, 100%; provided, however, that the foregoing is subject to acceleration pursuant to Section 4.6 or upon a Change in Control as set forth in Section 5.1(b).

 (y) “Permitted Percentage” means (i) from the date of this Agreement to but excluding the second anniversary
of this Agreement, 0%, (ii) from the second anniversary of this Agreement to but excluding the third anniversary of this Agreement, 15%, (iii) from the third anniversary of this Agreement to but excluding the fourth anniversary of this
Agreement, 30%, (iv) from the fourth anniversary of this Agreement to but excluding the fifth anniversary of this Agreement, 60% and (v) from and after the fifth anniversary of this Agreement, 100%; provided, however, that the foregoing is
subject to acceleration pursuant to Section 4.6 or upon a Change in Control as set forth in Section 5.1(b). 
 (z)
“Permitted Transfer” means (i) any Transfer to one or more entities that are, directly or indirectly, wholly owned by OW, (ii) prior to the death of OW, the Transfer of up to 30% of the Purchased Shares to a
Permitted Estate Vehicle or a Charitable Organization, (iii) upon the death of OW, the Transfer of all or any portion of the Shares to OW’s estate, executors, administrators, testamentary trustees, legatees or beneficiaries, any Family
Member or the Charitable Organization and (iv) any Transfer made following a Change in Control or made pursuant to a Change of Control that constitutes a sale of the Company as a whole; provided, with respect to each of clauses (i),
(ii) and (iii), so long as the transferee (other than a transferee that already is party to this Agreement) agrees to be subject to the terms of this Agreement (subject to any limitation on the assignment of rights by such Person to the
transferee in connection with such Transfer) by executing and delivering a joinder agreement, substantially in the form of Exhibit A hereto. 

  
 4 

 (aa) “Person” means an individual, partnership, corporation, limited
liability company, unincorporated organization, trust, joint venture, government agency, or other entity. 
 (bb)
“Prospectus” means the prospectus included in the Eligible Registration Statement, including any form of prospectus or any preliminary prospectus, as amended or supplemented by any prospectus supplement and by all other
amendments or supplements to such prospectus, including all post-effective amendments and all material, if any, incorporated by reference or deemed to be incorporated by reference into such prospectus. 

(cc) “Registrable Securities” means all Purchased Shares and shares of Common Stock issuable pursuant to the Granted
Options and any securities into which Common Stock may be converted or exchanged pursuant to any merger, consolidation, sale of all or any part of the Company’s assets, corporate conversion or other extraordinary transaction of the Company held
by the OW Group, other than any Common Stock or securities into which Common Stock may be converted or exchanged that (i) have been sold by the OW Group to the public either pursuant to a registration statement or Rule 144 or another exemption
from the registration requirements of the Securities Act, (ii) except in connection with a Demand Request by the OW Group for a registration pursuant to a Resale Shelf Registration Statement, in the hands of the OW Group is eligible to be
resold pursuant to Rule 144 without any volume limitation or (iii) shall have ceased to be outstanding; provided, that when determining the amount of Registrable Securities, only the Permitted Percentage of the Purchased Shares and the
Permitted Option Percentage of the shares of Common Stock issuable pursuant to the Granted Options shall be included in such calculation. 

(dd) “Registration Expenses” means all expenses incurred by the Company in complying with Sections 6.1, 6.2 and 6.6
hereof, including, without limitation, (i) all SEC and other registration and filing fees (including, without limitation, fees and expenses with respect to (A) filings required to be made with the Financial Industry Regulatory Authority
and (B) securities or Blue Sky laws, including, without limitation, any fees and disbursements of counsel for the underwriters in connection with any filing and application made to or with (and clearance by) the Financial Industry Regulatory
Authority and any Blue Sky qualifications of the Registrable Securities pursuant to Section 6.6(d)), (ii) preparation, printing, messenger and delivery expenses, (iii) fees and disbursements of counsel for the Company, (iv) fees
and disbursements of independent certified public accountants and any other persons, including special experts retained by the Company, (v) expenses related to any special audits incident to or required by any such registration, in each case,
whether or not any Eligible Registration Statement is filed or becomes effective, (vi) all fees and expenses related to the listing of the Registrable Securities on any securities exchange, (vii) all internal expenses of the Company,
including the compensation of officers and employees of the Company and the fees and expenses in connection with any annual audit and (viii) the fees and expenses of one counsel for the OW Group in connection with the review of any registration
statement, not to exceed $10,000 for each registration. For the avoidance of doubt, any stamp, transfer or similar taxes or duties payable by the OW Group in connection with any registration, sale or distribution of Registrable Securities shall be
borne by the OW Group and not by the Company. 
 (ee) “Resale Shelf Registration Statement” means a
“shelf” registration statement on Form S-3 pursuant to Rule 415 under the Securities Act; provided that any sales of 

  
 5 

 
securities thereunder will not (i) require a prospectus supplement, (ii) require any additional cooperation from the Company (except as set forth in Section 6.4(b)) or
(iii) be made pursuant to an underwritten offering. 
 (ff) “SEC” or “Commission” means
the Securities and Exchange Commission. 
 (gg) “Securities Act” means the Securities Act of 1933, as amended. 

(hh) “Significant Block” means five percent (5%) or more of the Company’s issued and
outstanding Common Stock. 
 (ii) “Strategic Collaboration Agreement” means the Strategic Collaboration Agreement,
dated as of the date hereof, by and between OW and the Company. 
 (jj) “Subsidiary” means, any Person of which at
least a majority of the securities or ownership interests having by their terms ordinary voting power to elect a majority of the board of directors or other Persons performing similar functions is directly or indirectly owned or controlled by the
Company or by one or more of its Subsidiaries. 
 (kk) “Threshold Block” means one percent
(1%) or more of the Company’s issued and outstanding Common Stock. 
 (ll) “Transaction Documents” means,
collectively, this Agreement, the Option Agreement, the Strategic Collaboration Agreement and the Voting Agreement. 
 (mm)
“Transfer” means any sale, assignment, encumbrance, hypothecation, pledge, conveyance in trust, gift, transfer by request, devise or descent, entry into any swap or other agreement that transfers, in whole or in part, any of
the economic consequences of ownership (whether to be settled by delivery of the Purchased Shares, in cash or otherwise) or other transfer or disposition of any kind, including, but not limited to, transfers to receivers, levying creditors, trustees
or receivers in bankruptcy proceedings or general assignees for the benefit of creditors whether voluntary or by operation of law, directly or indirectly, of any Purchased Shares. 

(oo) “Voting Agreement” means the Voting Agreement, dated as of the date hereof, by and between Artal and OW. 

(pp) “Voting Stock” of the Company as of any date means the shares of capital stock of the Company that is at the time
entitled to vote in the election of the Board of Directors of the Company. 
 ARTICLE II 

ISSUANCE OF THE PURCHASED SHARES 

Section 2.1. Share Purchase. Upon the terms and subject to the conditions set forth in this Agreement, OW hereby offers to
purchase, and the Company hereby accepts such 

  
 6 

 
offer to purchase and agrees to issue and sell to OW, the Purchased Shares (the “Share Purchase”), in consideration of the payment by OW to the Company of cash by wire
transfer in the amount of $43,198,679.37 (the “Purchase Price”)). 
 Section 2.2. Closing. The closing
of the Share Purchase (the “Closing”) shall take place at the offices of Simpson Thacher & Bartlett LLP, 425 Lexington Avenue, New York, New York 10017, as promptly as practicable on or after the date hereof. The
date on which the Closing occurs is referred to as the “Closing Date”. 
 Section 2.3. Transactions to be
Effected At or Prior to the Closing. At or prior to the Closing, the transactions below shall take place in the following order, on the same day (except to the extent such day is not a business day, the transactions set forth in clauses
(f) through (h) below shall take place as promptly as practicable on or after the date hereof, but in no event later than the End Date (as defined below)): 

(a) The Company shall have provided OW with a copy of the resolutions duly adopted by the Board of Directors, (i) increasing the size of
the Board of Directors to ten, (ii) appointing OW as a director of the Company to fill the newly-created directorship resulting from such increase, such appointment to be effective immediately after, and only upon, the Closing and
(iii) approving the grant by the Company to OW of the right to appoint an Observer as set forth in Section 4.1, such grant to be effective immediately after, and only upon, the Closing. 

(b) The Company shall have provided OW with a copy of the written consent evidencing the approval by the holders of a majority of the
outstanding shares of Common Stock of the Company of the issuance of the Granted Options (the “Shareholder Consent”), which approval shall be effective in accordance with the terms thereof. 

(c) The Company and OW shall execute and deliver this Agreement. 

(d) The Company and OW shall execute and deliver the Strategic Collaboration Agreement and, in consideration of OW entering into the Strategic
Collaboration Agreement and the performance of her obligations therein, the Company shall issue the Granted Options to OW pursuant to the Option Agreement. Each of the Strategic Collaboration Agreement and the Option Agreement is effective as of the
date hereof in accordance with the terms of such agreement. 
 (e) Artal and OW shall execute and deliver the Voting Agreement. 

(f) The Company shall receive the approval of The New York Stock Exchange with respect to the supplemental listing of the Purchased Shares and
the reservation for issuance on The New York Stock Exchange of the shares issuable upon exercise of the Granted Options. 
 (g) OW (or its
designees) shall deliver to the Company payment by wire transfer of immediately available funds, to one or more bank accounts designated in writing by the Company, in an aggregate amount in cash equal to the Purchase Price and, substantially
concurrently therewith, the Company shall issue to OW the Purchased Shares in electronic book-entry form. 
 (h) The Company shall deliver
to OW the irrevocable letter of instructions addressed to the Company’s transfer agent, relating to the issuance of the Purchased Shares. 

  
 7 

 ARTICLE III  

REPRESENTATIONS AND WARRANTIES 

Section 3.1. Representations and Warranties of the Company. The Company represents and warrants to OW as of the date hereof and as
of the Closing Date that: 
 (a) Existence and Power. The Company is a corporation duly organized, validly existing and in good
standing under the laws of the Commonwealth of Virginia. The Company has all power and authority, corporate and otherwise, and all governmental licenses, franchises, permits, authorizations, consents and approvals required to own and operate its
properties and assets and to carry on the business as presently conducted and as proposed to be conducted, except as would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the business, results of
operations or financial condition of the Company and its subsidiaries, taken as a whole (a “Material Adverse Effect”). 

(b) Capitalization. The authorized capital stock of the Company consists of (i) 1,000,000,000 shares of Common Stock and
(ii) 250,000,000 shares of preferred stock, no par value per share (the “Preferred Stock”), of which (A) 1,000,000 shares are designated as “Series A Preferred Stock” and (B) 10,000,000 shares are
designated as “Series B Junior Participating Preferred Stock”. As of October 18, 2015, there were 57,258,919 shares of Common Stock issued and outstanding and no shares of Preferred Stock outstanding. As of the date of this Agreement,
no shares of Common Stock or Preferred Stock were reserved for issuance, except for an aggregate of 3,134,860 shares of Common Stock reserved for issuance upon the exercise of outstanding stock options and the settlement of restricted stock units
issued under the Company’s equity incentive plans and stock incentive plans. All of the issued and outstanding shares of Common Stock have been duly authorized and validly issued and are fully paid, nonassessable and free of preemptive rights.

 (c) Authority; Approvals. The Company has full corporate power and authority to execute and deliver each of the Transaction
Documents to which it is a party and to consummate the transactions contemplated thereby. The execution and delivery of each of the Transaction Documents to which it is a party and the consummation by the Company of the transactions contemplated
thereby have been duly and validly approved by all necessary corporate action of the Company, and no other corporate and no shareholder proceedings on the part of the Company are necessary to approve such Transaction Documents or to consummate the
transactions contemplated thereby. Each of the Transaction Documents to which it is a party has been duly and validly executed and delivered by the Company and (assuming due execution and delivery by OW) constitutes a valid and binding obligation of
the Company, enforceable against the Company in accordance with its terms, except as enforcement may be limited by general principles of equity whether applied in a court of law or a court of equity and by bankruptcy, insolvency and similar laws
affecting creditors’ rights and remedies generally (collectively, the “Enforceability Exceptions”). 

  
 8 

 (d) Non-Contravention. The execution, delivery and performance of the Transaction
Documents to which it is a party, and the consummation by the Company of the transactions contemplated hereby and thereby, does not and will not (i) contravene or conflict with the Articles and Bylaws, (ii) contravene or conflict with or
constitute a violation of any provision of any Law or Order binding upon the Company, (iii) constitute a default under or breach of (with or without the giving of notice or the passage of time or both) or violate or give rise to any right of
termination, cancellation or acceleration of any contract or other instrument or obligations binding upon the Company or by which any shares of the Common Stock or Preferred Stock or any of the Company’s assets is or may be bound or
(iv) result in the creation or imposition of any Lien on any of the shares of Common Stock or Preferred Stock or any of the Company’s assets, except, in each of clauses (ii), (iii) and (iv), as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. 
 (e) Consents and Approvals. Assuming the accuracy of the
representations of OW as set forth in this Agreement, as of the Closing Date, no consents or approvals of, or filings or registrations with, any federal, state or local court, governmental, legislative, judicial, administrative or regulatory
authority, agency, commission, body or other governmental entity or self-regulatory organization (each, a “Governmental Entity”) or of or with any other third party by or on behalf of the Company or any of its Subsidiaries
are necessary for the execution and delivery by the Company of any Transaction Document to which it is a party and the consummation by the Company of the transactions contemplated thereby, except for (A) the filing of an information statement
on Schedule 14C (the “Schedule 14C Information Statement”) relating to the Shareholder Consent with the Securities and Exchange Commission and the furnishing thereof to the holders of Common Stock that did not execute the
Shareholder Consent but were entitled to vote on the date the Shareholder Consent was delivered to the Company in accordance with the Exchange Act, (B) those already obtained or made and (C) any securities or “blue sky” filings
of any state. 
 (f) Valid Issuance of Purchased Shares. When the Purchased Shares are issued and delivered to OW against receipt of
the consideration therefor, such shares will be validly issued, fully paid, non-assessable and free of preemptive rights and will be delivered to OW free and clear of all Liens. Except for the transactions contemplated in the Transaction Documents
and the grant of certain restricted stock awards pursuant to the Term Sheet for Consultant Restricted Stock Awards, dated as of the date hereof, the issuance and delivery of the Purchased Shares does and will not cause the vesting of any securities
of the Company to accelerate, or trigger or create in any Person the right to acquire, purchase, exercise, exchange or convert any securities of the Company into Common Stock. 

(g) SEC Filings; Financial Statements. All forms, reports, schedules, statements and documents required to be filed with the SEC by the
Company (the “SEC Reports”) since the beginning of the Company’s most recent fiscal year were prepared in accordance and complied as of their respective filing dates, in all material respects, with the requirements of
the Securities Act and Exchange Act and the rules promulgated thereunder and did not at the time they were filed (or if amended or superseded by a later filing prior to the date hereof, then on the date of such later filing) contain any untrue
statement of material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. Except as

  
 9 

 
otherwise disclosed in an SEC Report, each of the audited and unaudited consolidated financial statements (including, in each case, any related notes and schedules thereto) contained in the SEC
Reports (or if amended or superseded by a later filing prior to the date hereof, then on the date of such later filing) (i) complied in all material respects with applicable accounting requirements and the published regulations of the SEC with
respect thereto, (ii) were prepared in accordance with GAAP (except, in the case of unaudited financial statements, to the extent otherwise permitted by the rules and regulations of the SEC) applied on a consistent basis throughout the periods
involved (except as may be indicated therein or as described in the notes thereto) and (iii) fairly present in all material respects the financial position of the Company as of the respective dates thereof and the consolidated results of
operations and cash flows for the periods indicated (subject in the case of unaudited financial statements to normal year-end adjustments and to any other adjustments described therein, including the notes thereto). 

Section 3.2. Representations and Warranties of OW. 

OW hereby represents and warrants to the Company as of the date hereof and as of the Closing Date that: 

(a) Authorization; Approvals. OW has full power and authority to execute and deliver each of the Transaction Documents and to
consummate the transactions contemplated thereby. Each of the Transaction Documents has been executed and delivered by OW and (assuming due authorization, execution and delivery by the Company) constitutes a valid and binding obligation of OW,
enforceable against OW in accordance with its terms, subject to Enforceability Exceptions. 
 (b) Non-Contravention. The execution,
delivery and performance of the Transaction Documents and the consummation by OW of the transactions contemplated hereby and thereby, does not and will not (i) contravene or conflict with or constitute a violation of any provision of any Law or
Order binding upon OW or (ii) constitute a default under or breach of (with or without the giving of notice or the passage of time or both) or violate any contract or other instrument or obligations binding upon OW, except, in each of clauses
(i) and (ii), as would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of OW to perform, and the performance by OW of, her obligations under the Transaction Documents. 

(c) Consents and Approvals. No consents or approvals of, or filings or registrations with, any Governmental Entity or of or with any
other third party by or on behalf of OW is necessary for the execution and delivery by OW of the Transaction Documents and the consummation by OW of the transactions contemplated thereby. 

(d) Ownership of the Company; Control of the Charitable Organization. Except for the transactions contemplated in the Transaction
Documents, none of OW or any of her Affiliates holds or has any rights to acquire, whether directly or indirectly, any Common Stock or any other voting or equity securities of the Company, or any securities convertible into, exchangeable for or
exercisable for Common Stock or any other voting or equity securities of the Company. The Charitable Organization is controlled by OW. 

  
 10 

 (e) Accredited Investor; Experience. OW is an “accredited investor” (as defined
in Rule 501 under the Securities Act) and is capable of evaluating the merits and risks of her investment in the Company and has the capacity to protect her own interests. 

(f) Acquisition for Own Account. OW is acquiring the Purchased Shares for her own account for investment purposes, and not with a view
to, or for the sale in connection with, any distribution thereof in violation of the Securities Act, and the rules and regulations of the SEC promulgated thereunder, or that would require the issuance of the Purchased Shares pursuant to this
Agreement to be registered under the Securities Act. 
 (g) No Reliance. OW has relied upon the representations and warranties set
forth herein and her own investigations and diligence, including a review of the Company’s annual, quarterly and current reports and other documents filed with or furnished to the SEC, and not upon any other information provided by or on behalf
of the Company in making the decision to purchase the Purchased Shares. OW understands and acknowledges that neither the Company nor any of the Company’s representatives, agents or attorneys is making or has made at any time any warranties or
representations of any kind or character, express or implied, with respect to any matter or the Common Stock, except as expressly set forth herein. 

ARTICLE IV 
 BOARD
NOMINATION RIGHTS 
 Section 4.1. Director Designee. The OW Group shall have the right to (i) designate OW or, in the
event of the death or permanent disability of OW, another individual that is reasonably acceptable to the Company to be a director of the Company (OW or her designee in such capacity, the “Director Designee”), and the Company shall
cause the Director Designee to be nominated as a director of the Company unless and until such Director Designee is unwilling or unable to serve as a director, and (ii) so long as OW is the Director Designee, designate an individual that is
reasonably acceptable to the Company (the “Observer”) to attend meetings of the Board of Directors and receive copies of all documents distributed to the members of the Board of Directors in their capacity as directors in connection
with any such meetings; provided that (x) the Observer sign a confidentiality agreement to avoid any breach of confidentiality obligations and (y) if an issue is to be discussed or otherwise arises at a meeting of the Board of Directors,
which, in the reasonable judgment of the Board of Directors cannot be discussed in the presence of the Observer in order to avoid any breach of fiduciary duties of any director or preserve attorney-client privilege, then such issue may be discussed
without the Observer being present and may be deleted from any materials being distributed in connection with any meeting at which such issues are to be discussed. The OW Group may not assign or transfer its board observer rights referred to in
clause (ii) above without the consent of the Company and in such case, only to the extent the transferee is bound by customary conditions to be mutually agreed, including without limitation the transferee’s compliance with the requirements
set forth herein. It is understood and agreed that in the event that a vacancy is created at any time as a result of (i) the death or permanent disability of any Director Designee or (ii) the retirement, resignation or removal (with or without
cause) of any Director Designee other than OW, then the OW Group shall have the right to designate a replacement director (who shall be reasonably acceptable to the Company and shall satisfy the eligibility requirements in Section 4.3) to fill
such vacancy. 

  
 11 

 Section 4.2. Obligations of the Company. 

(a) Board Size; Election Upon Closing. On or prior to the date of this Agreement, the Company shall have taken all necessary actions
within its control to (x) increase the number of directors of the Company to ten (10) (until and unless thereafter changed in accordance with applicable laws of the Commonwealth of Virginia, the Articles and the Bylaws) and
(y) appoint OW as a Class II director of the Company (with a term expiring in 2018, but subject to the election by the shareholders of the Company at the Company’s regular annual meeting in 2016, as required under the laws of the
Commonwealth of Virginia), such appointment to be effective immediately after, and only upon, the Closing. 
 (b) Nomination. Except
as otherwise prohibited by applicable Law or the Company’s articles of incorporation or bylaws then in effect, the Company shall cause the Director Designee to be (x) nominated for election to the Board of Directors and included in the
Board of Director’s slate of nominees recommended to the shareholders of the Company for each election of directors, and recommend to the shareholders of the Company that the Director Designee be elected to the Board of Directors (to the extent
that directors of the Director Designee’s class are to be elected at such meeting for so long as the Board of Directors is classified but in any event including the first shareholder meeting following the Closing Date at which directors are
elected) or (y) included in the proxy statement (if any) prepared by management of the Company in connection with soliciting proxies for every meeting of the shareholders of the Company called with respect to the election of members of the
Board of Directors (to the extent that directors of the Director Designee’s class are to be elected at such meeting for so long as the Board of Directors is classified but in any event including the first shareholder meeting at which directors
are elected following the Closing Date), and at every adjournment or postponement thereof, and on every action or approval by written consent of the shareholders of the Company or the Board of Directors with respect to the election of members of the
Board of Directors (to the extent that directors of the Director Designee’s class are to be elected at such meeting or pursuant to such written consent for so long as the Board of Directors is classified but in any event including the first
shareholder meeting at which directors are elected following the Closing Date). Except as otherwise required by applicable Law, the Company shall not take any action to cause the removal without cause of the Director Designee, unless it is directed
to do so by the OW Group. 
 Section 4.3. Eligibility of Director Designee. Notwithstanding the other provisions of this Article
IV, the Company shall not be obligated to cause to be nominated for election to the Board of Directors (or to be included in the Board of Directors’ slate of nominees to the Company’s shareholders or any proxy statement prepared by
management of the Company in connection with soliciting proxies for meetings of the shareholders of the Company called with respect to the election of members of the Board of Directors) or recommend to the Company’s shareholders the election of
the Director Designee in the event that (i) the Board of Directors makes a Final Determination, in good faith, after receiving advice from a reputable outside legal counsel, that such action would constitute a breach of its fiduciary duties (or
otherwise violate applicable Law), (ii) the Company makes a Final Determination after receiving advice from a reputable outside legal counsel that the Director Designee would not be qualified under any applicable Law to serve as a director of
the Company, (iii) the Director Designee has been involved in any of the events enumerated in Item 2(d) or (e) of Schedule 13D under the 

  
 12 

 
Exchange Act, (iv) the Director Designee is currently the target of an investigation by any governmental authority or agency relating to felonious criminal activity or is subject to any
order, decree, or judgment of any court or agency prohibiting service as a director of any public company or providing investment or financial advisory services or (v) the Director Designee has declared or otherwise indicated (whether publicly
or to the Company or the Board of Directors) that she or he is unwilling or unable to serve as a director or otherwise takes actions inconsistent with her or his election. “Final Determination” means a majority of the Board
of Directors (excluding the Director Designee) has determined that an event contemplated by clause (i) or (ii) of the preceding sentence has occurred, after the Director Designee (A) has been provided with prompt notice of any meeting
of the Board of Directors, a committee thereof, or inquiry related to the Company’s potential enforcement of this Section 4.3, and all documents and information relating thereto, (B) has been afforded a reasonable time to consult with
legal counsel and (C) has had the opportunity to present a case to the Board of Directors. If any event described in clause (i) through (v) of the second preceding sentence occurs, (x) if the Director Designee is OW, then the OW
Group shall forfeit her rights under this Agreement to designate the Director Designee as a member of the Board of Director and shall not have any right to a replacement designee and (y) if the Director Designee is an individual other than OW,
then the OW Group shall designate a replacement designee who shall be reasonably acceptable to the Company and shall satisfy the eligibility requirements set forth in this Section 4.3 and such replacement designee shall thereafter constitute a
“Director Designee” under this Agreement. The Company shall promptly notify the OW Group in writing of any objection to the Director Designee in advance of the date on which proxy materials are mailed by the Company in connection with such
election of directors. 
 Section 4.4. Resignation. If the OW Group Transfers Common Stock such that OW’s rights and
obligations set forth in this Article IV are terminated pursuant to Section 4.5, at the request of the Company, the Director Designee shall offer to resign as a director effective as of the Company’s next annual meeting of shareholders.

 Section 4.5. Termination. The rights and obligations of the OW Group and the Company (including, without limitation, the
right of the OW Group to appoint the Director Designee and the obligation of the Company to cause the Director Designee to be nominated for election to the Board of Directors) set forth in this Article IV shall (i) only be effective immediately
after, and only upon, the Closing (except that Section 4.2(a) shall be effective upon the due execution and delivery of this Agreement by the parties hereto) and (ii) terminate on the date the OW Group owns less than 3% of the issued and
outstanding Common Stock and, from such date of termination, OW (or her designee in the event of her death or permanent disability, and any replacement designee thereof) shall no longer be deemed to be a “Director Designee”. 

Section 4.6. Director Designee’s Remedies. Subject to Section 4.3, if OW as the Director Designee is not elected to the
Board of Directors (other than as a result of such Director Designee’s noncompliance with, or inability to satisfy the director eligibility requirements set forth in, this Article), or the Company does not take all necessary action to nominate
and recommend such Director Designee in accordance with this Article: (i) the Permitted Percentage and Permitted Option Percentage shall be 100%, (ii) neither the restrictions on transfer set forth in Article V, nor the Company’s
right of first offer and right of first refusal set forth in Article VII, shall apply to the Purchased Shares or shares of Common Stock issued or 

  
 13 

 
issuable upon exercise of the Granted Options (collectively, the “Shares”) and (iii) OW Group’s obligations under Section 6.9 shall terminate. The rights and
remedies of the OW Group set forth in this Section 4.6 are in addition to any rights or remedies provided by law or equity. 

ARTICLE V 
 RESTRICTIONS
ON TRANSFER 
 Section 5.1. Restrictions on Transfer. 

(a) The OW Group agrees not to make any Transfer of all or any portion of the Purchased Shares, except that the OW Group shall be permitted to
(i) make Permitted Transfers and (ii) Transfer a number of Purchased Shares not to exceed, in the aggregate, the Permitted Amount. Any Transfer described in clause (ii) shall be subject to the Company’s right of first offer or
right of first refusal as set forth in Article VII. 
 (b) Notwithstanding anything herein to the contrary, upon a Change in Control, the
Permitted Percentage and Permitted Option Percentage shall be deemed to be 100%. 
 (c) Notwithstanding anything to the contrary in this
Agreement, the OW Group agrees that it will not effect any Transfer of Purchased Shares unless such Transfer is made pursuant to an effective registration statement under the Securities Act or pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act and, in either case, in compliance with all applicable state securities laws and all applicable securities laws of any other jurisdiction. The Company agrees, and the OW Group
understands and consents, that the Company will not take any action to cause or permit the Transfer of any Purchased Shares to be made on its books (or on any register of securities maintained on its behalf) unless the Transfer is permitted by and
has been made in accordance with the terms of this Agreement and all applicable securities laws. The OW Group agrees that in connection with any Transfer of Purchased Shares that is not made pursuant to a registration statement, the Company may, in
its sole discretion, request an opinion, certifications and other information in form and substance reasonably satisfactory to the Company and from counsel reasonably satisfactory to the Company stating that such transaction is exempt from
registration under the Securities Act. 
 (d) The Purchased Shares shall be stamped or otherwise imprinted with legends substantially
similar to the following (in addition to any legend required under applicable state securities laws) or if held in electronic form, shall be held in an account by the Company’s stock transfer agent subject to restrictions on Transfer
substantially consistent with the following legend, which shall be furnished in accordance with applicable Law: 
 THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED EXCEPT (A) PURSUANT TO AN EFFECTIVE
REGISTRATION 

  
 14 

 
STATEMENT UNDER THE ACT COVERING ANY SUCH TRANSACTION OR (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER, SUBJECT TO THE COMPANY’S RIGHT TO RECEIVE AN OPINION OF COUNSEL,
CERTIFICATIONS AND OTHER INFORMATION IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY AND FROM COUNSEL REASONABLY SATISFACTORY TO THE COMPANY STATING THAT SUCH TRANSACTION IS EXEMPT FROM SUCH REGISTRATION REQUIREMENTS. 

THE SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A
CERTAIN SHARE PURCHASE AGREEMENT DATED AS OF OCTOBER 18, 2015, AMONG THE SHAREHOLDER AND THE COMPANY (AS THE SAME MAY BE AMENDED AND IN EFFECT FROM TIME TO TIME). NO SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF SUCH SHARE PURCHASE AGREEMENT. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY. 

(e) The OW Group acknowledges and agrees that any Transfer of the limited liability company interests, partnership interests, shares or other
similar equity interests in any member of the OW Group or a parent entity of such member will be deemed to constitute a Transfer of Purchased Shares, and any proposed Transfer of all or any portion of any such interests in any member of the OW Group
or a parent entity of such member shall be subject to compliance with the terms of this Agreement as such terms apply to the OW Group. 

Section 5.2. Remedy for Prohibited Transfer. In the event that any member of the OW Group Transfers any Purchased Shares in
contravention of Section 5.1, such Transfer shall be null and void, and the Company agrees it will not take any action to effect such a Transfer nor will it treat any alleged transferee as the holder of such Purchased Shares. 

Section 5.3. Share Adjustments. Solely in determining the Permitted Amount, the number of Purchased Shares shall be
proportionately adjusted to reflect any stock dividend, stock split, reverse stock split, stock combination, recapitalization or the like that occurs after the date hereof. 

  
 15 

 ARTICLE VI 

REGISTRATION RIGHTS 

Section 6.1. Demand Registration. 

(a) If the Company shall receive a written request (a “Demand Request”) from the OW Group that the Company file a
registration statement under the Securities Act covering the registration of all or a portion of the Registrable Securities owned by the OW Group, then the Company shall, subject to the limitations of this Section 6.1, effect, as expeditiously
as reasonably possible, the registration under the Securities Act of all Registrable Securities in accordance with the intended method of distribution thereof that the OW Group requests to be registered, subject to the provisions of
Section 6.1(c). The OW Group shall have the right to make two (2) Demand Requests on or after the earlier to occur of the following: (i) the date that is the third anniversary of the date of this Agreement; and (ii) the date that
OW as the Director Designee is not elected to the Board of Directors (other than as a result of such Director Designee’s noncompliance with, or inability to satisfy the director eligibility requirements set forth in, Article IV);
provided, that the OW Group shall not make more than one Demand Request within any six-month period. 
 (b) If the OW Group intends
to distribute the Registrable Securities covered by its request by means of an underwritten public offering, it shall so advise the Company as a part of their request made pursuant to this Section 6.1. The OW Group shall have the right to
select the investment bank or banks and managers to administer any offering made in connection with a Demand Request, including the lead managing underwriter; provided that such investment banks or managers shall be reasonably acceptable to the
Company; provided, further, that if the OW Group declines to exercise such right, the Company shall select the investment bank or banks and managers to administer the offering, but the OW Group shall continue to have such right pursuant to this
Section 6.1(b) in any subsequent underwritten public offering. 
 (c) Notwithstanding anything herein to the contrary, the Company
shall not be obligated to (i) effect a registration pursuant to Section 6.1 unless the Registrable Securities requested to be registered by the OW Group, together with all other shares of Common Stock requested to be registered by any
other holder of piggyback registration rights (each, an “Other Piggyback Holder”) pursuant to any agreement containing similar registration rights as those contained in this Article VI (such other shares, the
“Other Registrable Securities”), are reasonably expected to result in aggregate gross cash proceeds in excess of (x) in the case of a Resale Shelf Registration Statement, ten (10) million dollars ($10,000,000) and
(y) in the case of any other form of registration statement, thirty (30) million dollars ($30,000,000) or (ii) prepare, file, effect or maintain a shelf registration statement on Form S-3 (or any successor to Form S-3) or any similar
shelf registration statement (other than a Resale Shelf Registration Statement) under the Securities Act for the purposes of compliance with any Demand Right pursuant to this Section 6.1. 

Section 6.2. Piggyback Registrations. 

(a) From and after the second anniversary of the date of this Agreement, the Company shall notify the OW Group (unless the OW Group has
demanded such registration pursuant to Section 6.1) in writing at least five (5) business days prior to the initial public filing of any Eligible Registration Statement. Such notice from the Company shall state the intended method of
distribution of the Registrable Securities included in such Eligible Registration Statement. The Company shall afford the OW Group the opportunity to include Registrable Securities in such Eligible Registration Statement so long as it agrees to sell
its Registrable 

  
 16 

 
Securities pursuant to the same method of distribution. If the OW Group desires to include Registrable Securities held by it in any such Eligible Registration Statement, it shall, within two
(2) business days after the above-described notice from the Company, so notify the Company in writing. Any such notice from the OW Group shall (i) specify the amount of Registrable Securities that the OW Group would like to include in such
Eligible Registration Statement and (ii) include the agreement of the OW Group to participate in any related underwritten offering on the same terms as the other participating Holders. Upon such written notice from the OW Group, the Company
will use its best efforts to effect the registration under the Securities Act of all Registrable Securities which the OW Group has requested to be registered. If the OW Group decides not to or is unable to include all of its Registrable Securities
in any Eligible Registration Statement filed by the Company, the OW Group shall nevertheless continue to have the right to include Registrable Securities in any subsequent Eligible Registration Statement as may be filed by the Company, all upon the
terms and conditions set forth herein. Prior to the effectiveness of the applicable Eligible Registration Statement, the OW Group may withdraw from such Eligible Registration Statement any of the Registrable Securities at any time upon written
notice to the Company. 
 (b) Underwriting. If the Eligible Registration Statement under which the Company gives notice under this
Section 6.2 is for an underwritten offering, the Company shall so advise the OW Group. In such event, the right of the OW Group to be included in an Eligible Registration Statement pursuant to this Section 6.2 shall be conditioned upon the
OW Group’s participation in such underwriting by executing and delivering a custody agreement and power of attorney in form and substance reasonably satisfactory to the Company with respect to such Registrable Securities (the
“Custody Agreement and Power of Attorney”), which Custody Agreement and Power of Attorney shall permit the OW Group to, prior to the effectiveness of such Eligible Registration Statement, withdraw any of the Registrable
Securities at any time from such Eligible Registration Statement upon written notice to the Company and the custodian. The Custody Agreement and Power of Attorney will provide, among other things, that (i) the OW Group will, to the extent
applicable, deliver to and deposit in custody with the custodian and attorney-in-fact named therein one or more certificates representing such Registrable Securities, accompanied by duly executed stock powers in blank, and irrevocably appoint said
custodian and attorney-in-fact with full power and authority to act under the Custody Agreement and Power of Attorney on the OW Group’s behalf with respect to the matters specified therein, including, but not limited to, the entry into an
underwriting agreement (the “Underwriting Agreement”“) in customary form with the underwriter(s) and such other documents and agreements reasonably required in connection with such registration or offering and
(ii) the OW Group will perform its obligations under such Underwriting Agreement and any other agreement entered into in connection with such registration and/or offering. The OW Group also agrees to execute such other documents and agreements
as the Company may reasonably request to effect the provisions of this Section 6.2 and any transactions contemplated hereby. 

Section 6.3. Priority on Registrations. Notwithstanding any other provision of this Article VI, if the lead managing underwriter
or underwriters advise, in the case of a requested registration pursuant to Section 6.1, the OW Group or, in all other cases, the Company that marketing factors (including, but not limited to, an adverse effect on the per share offering price)
require a limitation of the number of shares to be included in an underwritten offering (including Registrable Securities), then the OW Group or the Company, as the case may be, shall 

  
 17 

 
so advise all holders of Registrable Securities and all Other Piggyback Holders who have requested to participate in such offering, that (i) if the requested registration is pursuant to
Section 6.1, the number of shares that may be included in the underwriting shall be allocated first to the OW Group for its own account, and second to the Company (to the extent it is selling shares of Common Stock in such offering) and the
Other Piggyback Holders who have duly requested shares to be included therein on a pro rata basis based on the number of shares proposed to be sold by the Company and the number of Other Registrable Securities requested to be included by such Other
Piggyback Holders, and (ii) if the requested registration is not pursuant to Section 6.1, the number of shares that may be included in the underwriting shall be allocated first to the Company for its own account (to the extent such
registration was initiated by the Company) or to such Holder of Other Registrable Securities who demanded such registration pursuant to demand rights similar to those set forth in this Agreement, and second to the Company (to the extent such
registration was not initiated by the Company), the OW Group and the Other Piggyback Holders who have duly requested shares to be included therein on a pro rata basis based on the number of shares proposed to be sold by the Company (to the extent
such registration was not initiated by the Company), the number of Registrable Securities requested to be included by the OW Group and the number of Other Registrable Securities requested to be included by all such Other Piggyback Holders. For any
Other Piggyback Holder which is a partnership, limited liability company or corporation, the partners, members or shareholders, as applicable, of such Other Piggyback Holder and the estates and Family Members of any such partners, members and
shareholders and any trusts for the benefit of any of the foregoing Person(s) shall be deemed to be a single “Other Piggyback Holder,” and any pro rata reduction with respect to such “Other Piggyback Holder” pursuant to this
Section 6.3 shall be based upon the aggregate amount of shares carrying registration rights owned by all Persons deemed to constitute such “Other Piggyback Holder” (as defined in this sentence). 

Section 6.4. Termination, Effectiveness, Postponement and Suspension of Registration. 

(a) Right to Terminate Registration. If the OW Group determines for any reason not to proceed with any proposed registration requested
pursuant to Section 6.1, the OW Group shall promptly notify the Company in writing. Upon receipt of such notice, the Company shall withdraw or terminate such registration whether or not any Other Piggyback Holder has elected to include any
Other Registrable Securities in such registration. In addition, the Company shall have the right to withdraw or terminate any proposed registration initiated by it and a Holder of Other Registrable Securities shall have the right to withdraw or
terminate any proposed registration initiated by it, whether or not the OW Group or any Other Piggyback Holder has elected to include Registrable Securities or Other Registrable Securities, as the case may be, in such registration. The Company shall
promptly give notice of the withdrawal or termination of any registration to the OW Group, to the extent the OW Group has elected to participate in such registration. The Registration Expenses of any such withdrawn or terminated registration shall
be borne by the Company in accordance with Section 6.5. 
 (b) Effectiveness of the Registration Statement. The Company shall
maintain the effectiveness of the Eligible Registration Statement until the earlier of (i) the date on which all Registrable Securities included in such Eligible Registration Statement have actually been sold and (ii) the date that is
(x) 180 days (in respect of a Resale Shelf Registration Statement) or (y) 90 days (in respect of any Eligible Registration Statement other than a Resale Shelf Registration Statement) from the effective date of such Eligible Registration
Statement. 

  
 18 

 (c) Postponement or Suspension of Registration. If the filing, initial effectiveness or
continued use of an Eligible Registration Statement in respect of a registration pursuant to this Agreement at any time would require the Company to make a public disclosure of material non-public information, (1) which disclosure in the good
faith judgment of the Board of Directors (after consultation with external legal counsel) (x) would be required to be made in any registration statement so that such registration statement would not contain a material misstatement or omission,
(y) would not be required by applicable Law to be made at such time but for the filing, effectiveness or continued use of such Eligible Registration Statement and (z) would reasonably be expected to have a material adverse effect on the
Company or its business or on the Company’s ability to effect a material proposed acquisition, disposition, financing, business opportunity, reorganization, recapitalization or similar transaction or (2) during a customary
“blackout” period of the Company, then the Company may, upon giving prompt written notice of such determination to the OW Group, delay the filing or initial effectiveness of, or suspend the use of, such Eligible Registration Statement;
provided, that the Company shall not be permitted to do so pursuant to clause (1) above (x) more than two times during any twelve (12) month period or (y) for a period exceeding thirty (30) days on any one occasion (unless a
longer period is consented to by the OW Group) (the “Suspension Period”). In the event the Company exercises its rights under the preceding sentence, the OW Group agrees to suspend, promptly upon its receipt of the notice
referred to above, its use of any prospectus relating to such registration in connection with any sale or offer to sell Registrable Securities. If so requested by the Company, the OW Group shall use its reasonable best efforts to deliver to the
Company (at the Company’s expense) all copies, other than permanent file copies then in the OW Group’s possession, of the prospectus relating to such Registrable Securities at the time of receipt of such notice. The Company agrees that, in
the event it exercises its rights under this Section 6.4(c), it shall (i) promptly notify the OW Group of the termination or expiration of any Suspension Period, (ii) within thirty (30) days after delivery of the notice referred
to above (unless a longer period is consented to by the OW Group), resume the process of filing or request for effectiveness, or update the suspended registration statement, as the case may be, as may be necessary to permit the OW Group to offer and
sell its Registrable Securities in accordance with applicable Law and (iii) if an Eligible Registration Statement that was already effective had been suspended as result of the exercise of such rights by the Company, promptly notify the OW
Group after the termination or expiration of any Suspension Period of the applicable time period during which the Eligible Registration Statement is to remain effective, which shall be extended by a period of time equal to the duration of the
Suspension Period. 
 Section 6.5. Expenses of Registration. Except as specifically provided herein, all Registration Expenses
incurred in connection with any registration under Sections 6.1 and 6.2 shall be borne by the Company. All underwriting fees and selling commissions relating to the distribution of the Registrable Securities and all taxes, if any, on the transfer
and sale, respectively, of the Registrable Securities being sold that are incurred in connection with any registrations hereunder shall be borne by the OW Group. For the avoidance of doubt, all underwriting fees, selling commissions and taxes
incurred in connection with any registration hereunder relating to securities sold by the Company shall be borne by the Company. 

  
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 Section 6.6. Obligations of the Company. If and whenever the Company is required to
effect the registration of any Registrable Securities under the Securities Act as provided in Sections 6.1 and 6.2 (to the extent the OW Group has requested to include Registrable Securities in an Eligible Registration Statement pursuant to clause
(a) of such Section 6.1 or 6.2, as the case may be), the Company shall effect such registration to permit the sale of such Registrable Securities in accordance with the intended method or methods of distribution thereof, and pursuant
thereto the Company shall cooperate in the sale of the securities and shall, as expeditiously as reasonably possible: 
 (a) Prepare and
file with the SEC an Eligible Registration Statement on such form as shall be available for the sale of the Registrable Securities by the OW Group in accordance with the intended method of distribution thereof and the provisions of this Article VI,
and use its reasonable best efforts to cause each such Eligible Registration Statement to become effective and remain effective as provided herein; provided, however, that before filing any Eligible Registration Statement or Prospectus or any
amendments or supplements thereto (not including documents that would be incorporated or deemed to be incorporated therein by reference), the Company shall afford the OW Group, its counsel and the managing underwriter, if any, an opportunity to
review copies of all such documents proposed to be filed. The Company shall not file any Eligible Registration Statement or Prospectus or any amendments or supplements thereto in respect of which the OW Group has a right to review prior to the
filing of such document, if the OW Group, its counsel or the managing underwriter, if any, shall reasonably object, in writing, on a timely basis. 

(b) Prepare and file with the SEC such amendments and post-effective amendments to each Eligible Registration Statement as may be necessary to
keep such Eligible Registration Statement continuously effective for the effectiveness period; and comply with the provisions of the Securities Act, the Exchange Act and the rules and regulations of the SEC promulgated thereunder applicable to it
with respect to the disposition of all securities covered by such Eligible Registration Statement as so amended or in such Prospectus as so supplemented. 

(c) Notify the OW Group, its counsel and the managing underwriter, if any, promptly (but in any event within 10 business days), and confirm
such notice in writing, (i) when a Prospectus or any prospectus supplement or post-effective amendment has been filed, and, with respect to an Eligible Registration Statement or any post-effective amendment, when the same has become effective
(including in such notice a written statement that the OW Group may, upon request, obtain, without charge, one conformed copy of such Eligible Registration Statement or post-effective amendment including financial statements and schedules, all
documents incorporated or deemed to be incorporated by reference and all exhibits), (ii) of the issuance by the SEC of any stop order suspending the effectiveness of a Eligible Registration Statement or of any order preventing or suspending the
use of any preliminary prospectus or the initiation of any proceedings for that purpose, (iii) if at any time when a prospectus is required by the Securities Act to be delivered in connection with sales of the Eligible Registrable Securities
the representations and warranties of the Company contained in any agreement (including any underwriting agreement) contemplated by Section 6.6(k) below cease to be true and correct in all material respects, (iv) of the receipt by the
Company of any notification with respect to the suspension of the qualification or exemption from qualification of an Eligible Registration 

  
 20 

 
Statement or any of the Registrable Securities for offer or sale in any jurisdiction, or the initiation or threatening of any proceeding for such purpose, (v) of the happening of any event
that makes any statement made in such Eligible Registration Statement or related Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in
such Eligible Registration Statement, Prospectus or documents so that, in the case of such Eligible Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading, and that in the case of the Prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading, and (vi) of the Company’s reasonable determination that a post-effective amendment to an Eligible Registration Statement would be appropriate.

 (d) Use its reasonable best efforts to prevent the issuance of any order suspending the effectiveness of an Eligible Registration
Statement or of any order preventing or suspending the use of a Prospectus or suspending the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, and, if any such order is issued, to
obtain the withdrawal of any such order at the earliest possible moment. 
 (e) If requested by the managing underwriter, if any, or the OW
Group, (i) promptly incorporate in a post-effective amendment such information as the managing underwriter, if any, or the OW Group reasonably requests to be included therein to comply with applicable Law, (ii) make all required filings of
such post-effective amendment as soon as practicable after the Company has received notification of the matters to be incorporated in such post-effective amendment, and (iii) supplement or make amendments to such Eligible Registration
Statement; provided, however, that the Company shall not be required to take any actions under this Section 6.6(e) that are not, in the opinion of counsel for the Company, in compliance with applicable Law. 

(f) Furnish to the OW Group and each managing underwriter, if any, without charge, one conformed copy of the Eligible Registration Statement
or Statements and each post-effective amendment thereto, including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference and all exhibits. 

(g) Deliver to the OW Group, its counsel and the underwriters, if any, without charge, as many copies of the Prospectus or Prospectuses
(including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request; and, the Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by the OW Group and the
underwriters, if any, in connection with the offering and sale of the Registrable Securities covered by such Prospectus and an amendment or supplement thereto. 

(h) Prior to any public offering of Registrable Securities, to use its reasonable best efforts to register or qualify, and cooperate with the
OW Group, the underwriters, if any, the sales agent and their respective counsel in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the
securities or “blue sky” laws of such jurisdictions within the United States as the 

  
 21 

 
OW Group or the managing underwriter, if any, reasonably request in writing; use its reasonable best efforts to keep each such registration or qualification (or exemption therefrom) effective
during the period during which the related Eligible Registration Statement is required to be kept effective and use its reasonable best efforts to do any and all other acts or things necessary or advisable to enable the disposition in such
jurisdictions of the Registrable Securities covered by the applicable Eligible Registration Statement; provided, however, that the Company will not be required to (A) qualify generally to do business in any jurisdiction where it is not then so
qualified or (B) take any action that would subject it to general service of process or taxation in any such jurisdiction where it is not then so subject. 

(i) Upon the occurrence of any event contemplated by clause (v) or (vi) of Section 6.6(c) above, as promptly as practicable
prepare a supplement or post-effective amendment to the Eligible Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, or file any other required document so
that, as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder, such Prospectus will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading. 
 (j) Enter into an underwriting
agreement in form, scope and substance as is customary in underwritten offerings and take all such other actions as are reasonably requested by the managing underwriter in order to expedite or facilitate the registration or the disposition of such
Registrable Securities, and in such connection, (i) make such representations and warranties to the underwriters, with respect to the business of the Company and its subsidiaries, and the Eligible Registration Statement, Prospectus and
documents, if any, incorporated or deemed to be incorporated by reference therein, in each case, in form, substance and scope no less favorable to the Company, taken as a whole, than the underwriting agreement entered into by the Company in March
2006 with respect to the issuance and sale of certain shares of the Common Stock; (ii) obtain opinions of counsel to the Company and updates thereof (which counsel and opinions shall be reasonably satisfactory (in form, scope and substance) to
the managing underwriter), addressed to the underwriters covering the matters customarily covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by the underwriters; and (iii) obtain
“cold comfort” letters and updates thereof from the independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired
by the Company for which financial statements and financial data are, or are required to be, included in the Eligible Registration Statement), addressed to each of the underwriters, such letters to be in customary form and covering matters of the
type customarily covered in “cold comfort” letters in connection with underwritten offerings. The above shall be done at each closing under such underwriting agreement, or as and to the extent required thereunder. 

(k) Use its reasonable best efforts to cause all Registrable Securities covered by such Eligible Registration Statement to be listed on each
securities exchange on which the Common Stock of the Company is then listed. 
 (l) Comply with all applicable rules and regulations of the
SEC and make generally available to its security-holders earnings statements satisfying the provisions of Section 11(a) 

  
 22 

 
of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act) no later than 45 days after the end of any 12-month period (or 90 days after the end of
any 12-month period if such period is a fiscal year) (i) commencing at the end of any fiscal quarter in which Registrable Securities are sold to underwriters in a firm commitment or best efforts underwritten offering and (ii) if not sold
to underwriters in such an offering, commencing on the first day of the first fiscal quarter of the Company after the effectiveness date of an Eligible Registration Statement, which statements shall cover said 12-month periods. 

Section 6.7. Delay of Registration; Furnishing Information. It shall be a condition precedent to the obligations of the Company to
take any action pursuant to Section 6.1 or 6.2 that the OW Group shall furnish to the Company such information regarding itself, the Registrable Securities held by it and the intended method of distribution of such securities as required by
Section 6.10 or as otherwise reasonably requested by the Company. 
 Section 6.8. Indemnification. In the event any
Registrable Securities are included in an Eligible Registration Statement under Section 6.1 or 6.2: 
 (a) To the fullest extent
permitted by law, the Company will indemnify and hold harmless OW, the OW Group, the partners, members, directors and officers of any member of the OW Group, any underwriter (as defined in the Securities Act), the directors and officers of such
underwriter, and each person, if any, who controls any member of the OW Group or such underwriter within the meaning of the Securities Act or the Exchange Act (collectively, the “Non-Company Indemnified Parties”), against any
losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or suits, actions or
proceedings in respect thereof) and reasonable documented expenses that arise out of or are based upon any of the following statements, omissions or violations by the Company: (i) any untrue statement or alleged untrue statement of a material
fact contained in such Eligible Registration Statement or incorporated by reference therein, including any preliminary prospectus, final prospectus or summary prospectus contained therein or any amendments or supplements thereto or any document
incorporated by reference therein, or any other such disclosure document (including reports and other documents filed under the Exchange Act and any document incorporated by reference therein) or related document or report, (ii) any omission or
alleged omission to state therein a material fact required to be stated therein (in the case of an Eligible Registration Statement only), or necessary to make the statements therein not misleading, in the case of a prospectus, in the light of the
circumstances when they were made, or (iii) any violation or alleged violation by the Company or any of its subsidiaries of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the
Securities Act, the Exchange Act or any federal, state, foreign or common law, rule or regulation in connection with the offering covered by such Eligible Registration Statement (collectively, a “Violation”); and the Company
will reimburse each such Non-Company Indemnified Party for any reasonable legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability, suit, action or proceeding;
provided, however, that the indemnity agreement contained in this Section 6.8(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, suit, action or proceeding if such settlement is effected without the
consent of the Company, which consent shall not be unreasonably withheld, delayed or conditioned, nor shall the Company be 

  
 23 

 
liable in any such case for any such loss, claim, damage, liability, suit, action or proceeding to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and
in conformity with written information furnished expressly for use in connection with such Eligible Registration Statement by such Non-Company Indemnified Party. 

(b) To the fullest extent permitted by law, the OW Group will, jointly and severally, indemnify and hold harmless the Company, each of its
directors, officers, employees, agents, representatives, and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act, any underwriter (as defined in the Securities Act), the directors and officers
of such underwriter, and each person, if any, who controls such underwriter within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages or liabilities (joint or several) to which the Company or any such
director, officer, employee, agent, representative, controlling person or underwriter may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or suits,
actions or proceedings in respect thereof) and reasonable documented expenses that arise out of or are based upon any of the following statements, omissions or violations: (i) any untrue statement or alleged untrue statement of a material fact
contained in such Eligible Registration Statement or incorporated by reference therein, including any preliminary prospectus, final prospectus or summary prospectus contained therein or any amendments or supplements thereto or any document
incorporated by reference therein, or any other such disclosure document (including reports and other documents filed under the Exchange Act and any document incorporated by reference therein) or related document or report, (ii) any omission or
alleged omission to state therein a material fact required to be stated therein (in the case of an Eligible Registration Statement only), or necessary to make the statements therein not misleading, in the case of a prospectus, in the light of the
circumstances when they were made, or (iii) any violation or alleged violation by the Company or any of its subsidiaries of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the
Securities Act, the Exchange Act or any federal, state, foreign or common law, rule or regulation in connection with the offering covered by such Eligible Registration Statement (collectively, a “Holder Violation”), in each
case to the extent (and only to the extent) that such Holder Violation occurs in reliance upon and in conformity with written information furnished by the OW Group expressly for use in connection with such Eligible Registration Statement; and the OW
Group will reimburse any legal or other expenses reasonably incurred by the Company or any such director, officer, employee, agent, representative, controlling person or underwriter in connection with investigating or defending any such loss, claim,
damage, liability, suit, action or proceeding if it is judicially determined that there was such a Holder Violation; provided, however, that the indemnity agreement contained in this Section 6.8(b) shall not apply to amounts paid in settlement
of any such loss, claim, damage, liability, suit, action or proceeding if such settlement is effected without the consent of the OW Group, which consent shall not be unreasonably withheld, delayed or conditioned; provided, further, that in no event
shall any indemnity under this Section 6.8(b) exceed the net proceeds from the offering received by the OW Group upon the sale of the Registrable Securities giving rise to such indemnification obligation. 

(c) Promptly after receipt by an indemnified party under paragraph (a) or (b) of this Section 6.8 (an “Indemnified
Party”) of written notice of the commencement of any claim, damage, suit, action or proceeding (including any governmental or regulatory 

  
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investigation) being brought or asserted against it, such Indemnified Party will, if a claim in respect thereof is to be made against any indemnifying party under paragraph (a) or
(b) of this Section 6.8 (an “Indemnifying Party”), deliver to the Indemnifying Party a written notice of the commencement thereof; provided, that the failure of the Indemnified Party to deliver written notice to the
Indemnifying Party shall not relieve it from any liability it may have under paragraph (a) or (b) of this Section 6.8 except to the extent such failure has materially prejudiced the Indemnifying Party’s ability to defend such
action (through the forfeiture of substantive rights or defenses). The Indemnifying Party shall have the right to participate in, and, to the extent the Indemnifying Party so desires, jointly with any other Indemnifying Party who has received a
similar notice, to assume the defense thereof with counsel reasonably satisfactory to the Indemnified Party to represent the Indemnified Party in such proceeding and shall pay the fees and expenses of such counsel relating to such proceeding, and
after notice from the Indemnifying Party to the Indemnified Party of its election so to assume the defense thereof, the Indemnifying Party shall not, except as specified below, be liable to such Indemnified Party under paragraph (a) or
(b) above, as the case may be, for any legal expenses of other counsel. In any such proceeding, an Indemnified Party shall have the right to retain its own counsel, with the fees and expenses to be paid by the Indemnified Party; provided the
Indemnifying Party will pay the reasonable fees and expenses of such counsel if (i) the Indemnifying Party and the Indemnified Party shall have so mutually agreed; (ii) the Indemnifying Party has failed within a reasonable time to retain
counsel reasonably satisfactory to the Indemnified Party; (iii) the Indemnified Party shall have reasonably concluded, based on the advice of counsel, that there may be legal defenses available to it that are different from or in addition to
those available to the Indemnifying Party; or (iv) the named parties in any such proceeding (including any impleaded parties) include both the Indemnifying Party and the Indemnified Party and representation of both parties by the same counsel
would be inappropriate due to actual or potential differing interest between them. It is understood and agreed that the Indemnifying Party shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for
the fees and expenses of more than one separate firm (in addition to any local counsel that is required to effectively defend against any such proceeding) for all Indemnified Parties, and that all such fees and expenses shall be paid or reimbursed
promptly. The Indemnifying Party shall not be liable for any settlement of any proceeding effected without its written consent (which shall not be unreasonably withheld, delayed or conditioned), but if settled with such consent or if there be a
final judgment for the plaintiff, the Indemnifying Party agrees to indemnify each Indemnified Party from and against any loss or liability by reason of such settlement or judgment. No Indemnifying Party shall, without the written consent of the
Indemnified Party (which shall not be unreasonably withheld, delayed or conditioned), effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Party is or could have been a party and indemnification could
have been sought hereunder by such Indemnified Party, unless such settlement (x) includes an unconditional release of such Indemnified Party, in form and substance reasonably satisfactory to such Indemnified Party, from all liability on claims
that are the subject matter of such proceeding and (y) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Party. 

(d) If the indemnification provided for in this Section 6.8 is held by a court of competent jurisdiction to be unavailable to an
Indemnified Party with respect to any losses, claims, damages or liabilities referred to herein, the Indemnifying Party, in lieu of indemnifying such Indemnified Party thereunder, shall to the extent permitted by applicable Law contribute to

  
 25 

 
the amount paid or payable by such Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative fault of the Indemnifying
Party on the one hand and of the Indemnified Party on the other in connection with the actions that resulted in such loss, claim, damage or liability, as well as any other relevant equitable considerations. The relative fault of the Indemnifying
Party and of the Indemnified Party shall be determined by a court of law by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied
by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; provided, that in no event shall any contribution by a
Holder hereunder exceed the net proceeds from the offering made under such Eligible Registration Statement received by such Holder. 
 (e)
The parties hereto agree that it would not be just and equitable if contribution pursuant to Section 6.8(d) were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations
referred to in the immediately preceding paragraph. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. 
 (f) The obligations of the Company and the OW Group under this Section 6.8 shall survive completion of
any offering of Registrable Securities in an Eligible Registration Statement and the termination of this Agreement. 
 (g) The obligations
of the parties under this Section 6.8 will be in addition to any liability, without duplication, which any party may otherwise have to any other party. 

Section 6.9. “Market Stand-Off” Agreement. The OW Group hereby agrees that the OW Group shall not Transfer, make any
short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale or other Transfer, any Lock-Up Security held by the OW Group (other than those included in the
registration) for a period specified by the representative(s) of the underwriters of Registrable Securities or any other securities sold in any offering in respect of which the OW Group received notice from the Company in accordance with
Section 6.2, such period not to exceed one hundred and eighty (180) days following the effective date of a registration statement of the Company filed under the Securities Act. The Company may impose stop transfer instructions with respect
to any Lock-Up Security subject to the foregoing restriction until the end of said one hundred and eighty (180) day or shorter period. 

Section 6.10. Agreement to Furnish Information. The OW Group agrees to execute and deliver such other agreements as may be
reasonably requested by the Company or the representative(s) of the underwriter(s) that are consistent with the OW Group’s obligations under Section 6.9 or that are necessary to give further effect thereto. In addition, if requested by the
Company or such representative(s), the OW Group shall provide, to the extent the OW Group has elected to include Registrable Securities in an Eligible Registration Statement, within one (1) business day of such request, such information
relating to itself, the Registrable Securities held by it and the registration and the intended method of distribution of the Registrable Securities as 

  
 26 

 
may be reasonably requested by the Company or such representative(s) in connection with the completion of any public offering of Common Stock pursuant to such Eligible Registration Statement. The
underwriters of Registrable Securities are intended third party beneficiaries of Sections 6.9 and 6.10 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. 

Section 6.11. Termination. The rights and obligations of the OW Group set forth in this Article VI (other than those set forth in
Section 6.8) shall terminate on the earlier of the date (i) that the OW Group owns less than 3% of the issued and outstanding Common Stock or (ii) solely with respect to Section 6.9, upon the OW Group enforcing its rights under
Section 4.6. 
 ARTICLE VII 

RIGHT OF FIRST OFFER AND RIGHT OF FIRST REFUSAL 

Section 7.1. Right of First Offer for 144 Sales. 

(a) Subject to the restrictions set forth in Section 5.1 of this Agreement and Section 5.3 of the Option Agreement, in the event any
member of the OW Group proposes to Transfer (other than a Permitted Transfer) a Threshold Block, in a transaction or series of related transactions, of Shares in a 144 Sale, the OW Group shall furnish to the Company a written notice of such proposed
Transfer (a “ROFO Sale Notice”) at least 48 hours prior to the opening of trading on The New York Stock Exchange (or such other primary stock exchange upon which the Common Stock is listed) on the business day that the OW
Group proposes to begin to effect such 144 Sale. 
 (b) The ROFO Sale Notice shall include: 

(i) (A) the number of Shares proposed to be sold (the “ROFO Shares”), (B) the per share purchase
price in cash at which the OW Group is prepared to Transfer such ROFO Shares (the “ROFO Sale Price”) and (C) the date the OW Group proposes to begin to effect such 144 Sale; and 

(ii) an offer to sell to the Company and/or a designee of the Company all or a portion of the ROFO Shares at the ROFO Sale
Price. 
 (c) If the Company wishes to purchase (and/or cause a designee to purchase) all or a portion of the ROFO Shares at the ROFO Sale
Price, the Company shall deliver a notice (a “ROFO Purchase Notice”) to the OW Group no later 8:00 a.m. New York time on the business day that the OW Group proposes to effect such 144 Sale specifying the number of ROFO Shares
it wishes to purchase (and/or cause a designee to purchase) from the OW Group. The closing of the purchase of such ROFO Shares by the Company and/or any such designee shall take place no later than five (5) business days after delivery of the
ROFO Purchase Notice, with payment for such ROFO Shares being made concurrently with such purchase to the OW Group’s account designated in the ROFO Sale Notice. If the Company does not timely deliver a ROFO Purchase Notice it shall be deemed to
have waived all of its rights with respect to the offer contained in the ROFO Sale Notice. 

  
 27 

 (d) In the event that the number of ROFO Shares offered to be purchased in the ROFO Purchase
Notice is less than the number of ROFO Shares set forth in the Sale Notice (or the Company does not timely deliver a ROFO Purchase Notice), the OW Group may sell the ROFO Shares that are not subject to any such ROFO Purchase Notice during the five
(5) day business day period beginning on the date in the ROFO Sale Notice on which the OW Group proposed to begin to effect such 144 Sale (the “ROFO Transfer Period”); provided that no such ROFO Share may be sold for
less than the ROFO Sale Price. 
 (e) If by the expiration of the ROFO Transfer Period, the OW Group has not completed the Transfer of any
ROFO Shares at the ROFO Sales Price or a higher price, in order for the OW Group to Transfer such ROFO Shares (or any other Shares) it shall be necessary for a new ROFO Sale Notice or ROFR Sale Notice to be delivered, and the terms and provisions of
this Article VII to be again complied with. The OW Group shall not deliver more than one ROFO Sale Notice or ROFR Sale Notice in any thirty (30) day period. 

Section 7.2. Right of First Refusal. 

(a) Subject to the restrictions set forth in Section 5.1 of this Agreement and Section 5.3 of the Option Agreement, in the event any
member of the OW Group proposes to Transfer (other than a Permitted Transfer) (i) a Threshold Block, in a transaction or series of related transactions, to a Person whom the Company reasonably determines is a direct or indirect competitor of
the Company or (ii) a Significant Block, in a transaction or series of related transactions, to any Person (in each case, regardless of whether such Transfer will constitute a 144 Sale), the OW Group shall furnish to the Company a written
notice of such proposed Transfer (a “ROFR Sale Notice”) at least (5) business days prior to the business day that the OW Group proposes to effect such Transfer. 

(b) The ROFR Sale Notice shall include: 

(i) (A) the identity of the proposed transferee, (B) the purchase agreement and other documentation for the proposed
Transfer (the “ROFR Sale Documentation”), (C) the number of Shares proposed to be sold (the “ROFR Shares”), (D) the per share purchase price in cash at which the OW Group is prepared to
Transfer such ROFR Shares (the “ROFR Sale Price”) and (E) the date the OW Group proposes to effect such Transfer; and 

(ii) an offer to sell to the Company and/or a designee of the Company all of the ROFR Shares at the ROFR Sale Price. 

(c) If the Company wishes to purchase (and/or cause a designee to purchase) all of the ROFR Shares at the ROFR Sale Price, the Company shall
deliver a notice (a “ROFR Purchase Notice”) to the OW Group within three (3) business day after receipt of the ROFR Sale Notice. The closing of the purchase of such ROFR Shares by the Company and/or any such designee
shall take place no later than the later of (i) the purchase date set forth in the ROFR Sale Documentation and (ii) five (5) business days after delivery of the ROFR Purchase Notice, with payment for such ROFR Shares being made
concurrently with such purchase to the OW Group’s account designated in the ROFR Sale Notice. If the Company does not timely deliver a ROFR Purchase Notice it shall be deemed to have waived all of its rights with respect to the offer contained
in the ROFR Sale Notice. 

  
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 (d) In the event that Company does not timely delivery a ROFR Purchase Notice, the OW Group may
sell the ROFR Shares to the proposed transferee identified in the ROFR Sale Notice at the ROFR Sale Price and on the other terms and conditions set forth in the ROFR Sale Documentation no later than three (3) business days following the date
the OW Group proposed to effect such Transfer in the ROFR Sale Notice (the “ROFR Transfer Period”). 
 (e) If by the
expiration of the ROFR Transfer Period, the OW Group has not completed the Transfer of the ROFR Shares, in order for the OW Group to Transfer such ROFR Shares (or any other Shares) it shall be necessary for a new ROFO Sale Notice or ROFR Sale Notice
to be delivered, and the terms and provisions of this Article VII to be again complied with. The OW Group shall not deliver more than one ROFR Sale Notice or ROFO Sale Notice in any thirty (30) day period. 

ARTICLE VIII 

MISCELLANEOUS 

Section 8.1. Notices. All notices and other communications hereunder shall be in writing and shall be deemed given if delivered
personally, telecopied (upon telephonic confirmation of receipt), on the first business day following the date of dispatch if delivered by a recognized next day courier service, or on the third business day following the date of mailing if delivered
by registered or certified mail, return receipt requested, postage prepaid. All notices hereunder shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing by the party to receive such notice: 

(a) if to the Company to: 

Weight Watchers International, Inc. 

675 Avenue of the Americas, 6th Floor 

New York, New York 10010 

Facsimile:  212-589-2858 

Attention:  General Counsel and Secretary 

with a copy (which shall not constitute notice) to: 

Simpson Thacher & Bartlett LLP 

425 Lexington Avenue 
 New York,
New York 10017 
 Facsimile:  (212) 455-2502 

Attention:  Robert Spatt 

                  Kenneth B. Wallach 

  
 29 

 (b) If to the OW Group to: 

Oprah Winfrey 
 c/o Harpo, Inc.

 1041 North Formosa Avenue 

West Hollywood, CA 90046 

Facsimile: (310) 861-1819 

with a copy (which shall not constitute notice) to: 

Loeb & Loeb LLP 
 345
Park Avenue 
 New York, New York 10154 

Attn:    Marc Chamlin, Esq. and Lloyd L. Rothenberg, Esq. 

Facsimile: (212) 656-1076 

Section 8.2. Further Assurances. Each party hereto shall do and perform or cause to be done and performed all further acts and
shall execute and deliver all other agreements, certificates, instruments and documents as any other party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby. 
 Section 8.3. Amendments and Waivers. Any provision of this Agreement may be amended or
waived if, but only if, such amendment or waiver is in writing and is duly executed and delivered by the Company and the OW Group. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any
rights or remedies provided by law. The execution of a joinder agreement to this Agreement by a Charitable Organization or a Family Member shall not constitute an amendment to this Agreement requiring the consent of any party hereto. 

Section 8.4. Fees and Expenses. Each party hereto shall pay all of its own fees and expenses (including attorneys’ fees)
incurred in connection with this Agreement and the transactions contemplated hereby. 
 Section 8.5. Successors and Assigns. The
provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, provided, that, unless in connection with Permitted Transfers, neither party may assign, delegate
or otherwise transfer any of its rights or obligations under this Agreement to any person without the express written consent of the other party hereto and any such assignment or other transfer shall be null and void; provided,
further, that no such assignment shall relieve the assigning party of its obligations hereunder if such assignee does not perform such obligations. Prior to the receipt by the Company of adequate written notice of the Permitted Transfer of
any Purchased Shares in accordance with the provisions of this Agreement and specifying the full name and address of the transferee, the Company may deem and treat the person listed as the holder of such shares in its records as the absolute owner
and holder of such shares for all purposes, including the payment of dividends. 

  
 30 

 Section 8.6. Termination. This Agreement shall terminate in the event that the
Closing does not occur on or prior to November 18, 2015 (the “End Date”). 
 Section 8.7. Governing
Law. 
 (a) This Agreement shall be governed and construed in accordance with the laws of the State of New York applicable to contracts
made and wholly performed within such state, except for matters directly within the purview of Virginia Stock Corporation Act, which shall be governed by the Virginia Stock Corporation Act. Each of the OW Group and the Company hereby irrevocably and
unconditionally consents to submit to the exclusive jurisdiction and venue of the United States District Court for the Southern District of New York and in the courts hearing appeals therefrom unless no basis for federal jurisdiction exists, in
which event each party hereto irrevocably consents to the exclusive jurisdiction and venue of the Supreme Court of the State of New York, New York County, and the courts hearing appeals therefrom, for any action, suit or proceeding arising out of or
relating to this Agreement and the transactions contemplated hereby. Each of the OW Group and the Company hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any such
action, suit or proceeding, any claim that it is not personally subject to the jurisdiction of the aforesaid courts for any reason, other than the failure to serve process in accordance with this Section 8.7, that it or its property is exempt
or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise), and
to the fullest extent permitted by applicable Law, that the action, suit or proceeding in any such court is brought in an inconvenient forum, that the venue of such action, suit or proceeding is improper, or that this Agreement, or the subject
matter hereof, may not be enforced in or by such courts and further irrevocably waives, to the fullest extent permitted by applicable Law, the benefit of any defense that would hinder, fetter or delay the levy, execution or collection of any amount
to which the party is entitled pursuant to the final judgment of any court having jurisdiction. Each of the OW Group and the Company irrevocably and unconditionally waives, to the fullest extent permitted by applicable Law, any and all rights to
trial by jury in connection with any action, suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. 

(b) Each of the OW Group and the Company expressly acknowledges that the foregoing waivers are intended to be irrevocable under the laws of
the State of New York, the Commonwealth of Virginia and of the United States of America; provided, that consent by the OW Group and the Company to jurisdiction and service contained in this Section 8.7 is solely for the purpose referred to in
this Section 8.7 and shall not be deemed to be a general submission to said courts or in the State of New York other than for such purpose. 

Section 8.8. Entire Agreement. This Agreement and the other Transaction Documents constitute the entire agreement between the
parties with respect to the subject matter of this Agreement and supersedes all prior agreements and understandings (other than the non-disclosure agreement entered into between Harpo, Inc. and the Company which shall survive and shall not be
superseded), both oral and written, between the parties and/or their Affiliates with respect to the subject matter of this Agreement. 

  
 31 

 Section 8.9. Effect of Headings. The Article and Section headings herein are for
convenience only and shall not affect the construction hereof. 
 Section 8.10. Severability. If one or more provisions of this
Agreement are held to be unenforceable under applicable Law, such provision shall be deemed to be excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforced in
accordance with its terms to the maximum extent permitted by law. 
 Section 8.11. Counterparts; Third Party Beneficiaries. This
Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures were upon the same instrument. Facsimile and electronic (.PDF) signatures shall be sufficient to execute this
Agreement. Except for Section 6.13 with respect to the underwriters of Registrable Securities, no provision of this Agreement shall confer upon any person other than the parties hereto any rights or remedies hereunder. 

Section 8.12. Specific Performance. The parties agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms. It is accordingly agreed that the parties shall be entitled to seek specific performance of the terms hereof, this being in addition to any other remedies to which they
are entitled at law or equity. 
 [Remainder of this page intentionally left blank] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as of the date
first written above. 
  

					
	OPRAH WINFREY
	
	 /s/ Oprah Winfrey

	Oprah Winfrey
	
	WEIGHT WATCHERS INTERNATIONAL, INC.
		
	By:	 	 /s/ James R. Chambers

		 	Name:	 	James R. Chambers
		 	Title:	 	Chief Executive Officer

 EXHIBIT A 

FORM OF JOINDER AGREEMENT 

This JOINDER AGREEMENT (this “Joinder Agreement”) is executed pursuant to the terms of the Share Purchase Agreement,
dated as of October 18, 2015, by and between Oprah Winfrey, an individual having a mailing address at c/o Harpo, Inc. 1041 North Formosa Avenue, West Hollywood, CA 90046 (“OW”), and Weight Watchers International, Inc., a
Virginia corporation (the “Company”), a copy of which is attached hereto and is incorporated herein by reference (the “Share Purchase Agreement”), by the undersigned (the “OW
Transferee”). Capitalized terms used but not defined herein have the meanings set forth in the Share Purchase Agreement. By execution and delivery of this Joinder Agreement, the OW Transferee agrees as follows: 

SECTION 1. Acknowledgment. The OW Transferee acknowledges that it has acquired Purchased Shares from a member of the OW Group pursuant
to a Permitted Transfer. 
 SECTION 2. Agreement. The OW Transferee (a) agrees that the Purchased Shares it owns shall be bound
by and subject to the terms of the Share Purchase Agreement to the same extent as if such OW Transferee were a member of the OW Group, (b) hereby adopts the Share Purchase Agreement with the same force and effect as if it were originally a
member of the OW Group and (c) shall constitute a member of the “OW Group” under the Share Purchase Agreement. 
 SECTION 3.
Notice. Any notice required to be provided by the Share Purchase Agreement shall be given to OW Transferee at the address of OW Group listed in the Share Purchase Agreement. 

SECTION 4. Governing Law. This Joinder Agreement and the rights of the parties hereto shall be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and to be performed therein. 

			
	
	Executed and dated this      day of            .
	
	OW Transferee:
	
	[INSERT NAME]
		
	By:	 	  

		 	[Title]
	
	Acknowledged and Agreed to by
	
	WEIGHT WATCHERS INTERNATIONAL, INC.
		
	By:	 	  

		 	[Title]

  
 35

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