Document:

EX-10.1

 Exhibit 10.1 

EXECUTION COPY 
 STIPULATION
AND AGREEMENT 
 OF SETTLEMENT AND RELEASE 

This Stipulation and Agreement of Settlement and Release (the “Agreement”) is entered into this 6th day of October, 2017, by and
between Wells Fargo Bank, National Association, solely in its capacity as indenture trustee (“Wells Fargo” or the “Trustee”), Wolverine Flagship Fund Trading Limited, 1992 MSF International Ltd (formerly known as Highbridge
International LLC), and 1992 Tactical Credit Master Fund, L.P. (formerly known as Highbridge Tactical Credit & Convertibles Master Fund, L.P.) (the “Holder Plaintiffs”, and together with Wells Fargo, “Plaintiffs”); and
Merrimack Pharmaceuticals, Inc. (“Merrimack” or the “Company”). Plaintiffs and Merrimack together shall be referred to as the “Parties” and individually as a “Party.” 

WHEREAS, in July 2013, Merrimack announced an offering of $125,000,000 principal amount of 4.50% Convertible Senior Notes due 2020 (the
“Notes”); 
 WHEREAS, the Notes are subject to the terms of an Indenture dated as of July 17, 2013 and executed by Merrimack
and Wells Fargo, as trustee (the “Base Indenture”), as amended and modified by a First Supplemental Indenture dated as of July 17, 2013 and executed by Merrimack and Wells Fargo (the “Supplemental Indenture,” and
collectively with the Base Indenture, the “Indentures”); 
 WHEREAS, Wolverine Flagship Fund Trading Limited holds $9,998,000 of
the Notes for approximately 16.4% of the principal amount of the Notes outstanding as of the date of execution of the Agreement; 
 WHEREAS,
1992 MSF International Ltd holds $19,600,000 of the Notes for approximately 32.2% of the principal amount of the Notes outstanding as of the date of execution of the Agreement; 

WHEREAS, 1992 Tactical Credit Master Fund, L.P. holds $6,162,000 of the Notes for approximately 10.1% of the principal amount of the Notes
outstanding as of the date of execution of the Agreement; 
 WHEREAS, as of the date of execution of the Agreement, the Holder Plaintiffs
collectively own or control in the aggregate 58.7% of the aggregate principal amount of Notes outstanding; 
 WHEREAS, on February 10,
2017, the Trustee, at the direction of the Holder Plaintiffs, sent a letter to the Company, (i) asserting that, among other things, consummation of the Transaction would constitute a Fundamental Change under the Indentures, (ii) seeking
confirmation from the Company that it would issue a Fundamental Change Issuer Notice and otherwise comply with Article 15 of the Supplemental Indenture in connection therewith and otherwise comply with Article 11 of the Supplemental Indenture, and
(iii) putting the Company on notice of the actions that might be taken if the Company failed to take the foregoing actions; 
 WHEREAS,
on February 17, 2017, the Company responded to the Trustee’s February 10, 2017 letter and informed the Trustee that it disagreed with the Trustee’s contentions; 

 WHEREAS, on April 3, 2017, pursuant to an asset purchase and sale agreement between Ipsen
S.A. and Merrimack (the “Transaction”), Ipsen S.A. agreed to purchase certain assets of the Company for $575 million in cash, plus up to $450 million in potential future payments; 

WHEREAS, on or about March 15, 2017, Plaintiffs filed an action in the Delaware Court of Chancery, styled as Wells Fargo Bank, N.A.,
et al. v. Merrimack Pharmaceuticals, Inc., C.A. No. 2017-0199-JTL (the “Action”); 

WHEREAS, as of the date of the Agreement, the operative complaint in the Action was the Second Amended Verified Complaint, which sought, among
other things, an order requiring Merrimack to specifically perform under the Indentures, repurchase the Notes timely “put” to Merrimack in connection with the Transaction, and comply with the successor obligation provisions of the
Indentures requiring Ipsen S.A. to assume the Notes obligations; 
 WHEREAS, on or about March 15, 2017, Plaintiffs filed a Motion for
a Preliminary Injunction; 
 WHEREAS, on March 24, 2017, the Parties entered into a Stipulation and [Proposed] Order Regarding
Withdrawal Of Plaintiffs’ Motion For Preliminary Injunction and Escrow Agreement (“Escrow Order”); 
 WHEREAS, on
March 27, 2017, the Court granted the Escrow Order, and the Parties then entered an Escrow Agreement; 
 WHEREAS, pursuant to Paragraph
2 of the Escrow Agreement: 
 “No part of the $60 million, including any interest thereon, shall be released from escrow without a
joint, written instruction from all of the parties in this action to the escrow agent, which shall be provided to the escrow agent upon entry of a judgment by the Court following a trial of this action (a ‘Judgment’), or upon entry of a
settlement agreement between the parties in this action (a ‘Settlement’). Upon receipt of such instruction, the escrow agent shall release the $60 million, including any interest thereon, from escrow as the first dollars that are used
to satisfy a Judgment or a Settlement, in accordance with, and pursuant to, the Indenture[s] . . . . 
 The parties in this action shall
promptly execute documentation governing this escrow account and governing the release of funds from escrow pursuant to a Judgment or to a Settlement in a form that is reasonably acceptable to [Plaintiffs.]” 

WHEREAS, the Parties desire to resolve the Action and all disputes between them related to the Action on the terms set forth herein without
admitting any liability, fault, error, omission or other ground of fault or liability; 
 WHEREAS, the Parties have concluded that, because
of the complexity, inherent delay and substantial expense of litigating the issues associated with the Action and any appeals therefrom, it is in their respective best interests to resolve their disputes and related matters concerning the Action on
the terms set forth in the Agreement; and 

  
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 WHEREAS, the Holder Plaintiffs have directed the Trustee to execute and implement the Agreement
as provided for under the Indentures; 
 NOW THEREFORE, in consideration of the promises and representations contained herein and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows: 

1.    Notice of the Settlement. Within one (1) business day after the execution of the Agreement, the
Parties will jointly notify the Delaware Court of Chancery that the Parties have executed the Agreement. 

2.    Release of Escrow Funds. Pursuant to Paragraph 2 of the Escrow Agreement, within one (1) business
day after the execution of the Agreement, the Parties shall provide written instruction (the “Resolution Notice”) to Wilmington Trust, National Association (the “Escrow Holder”) to release the $60 million, including any
interest thereon (the “Escrow Funds”), from the interest-bearing escrow account to Merrimack. Upon receipt of the Resolution Notice, the Escrow Holder shall release the $60 million, including any interest thereon, to Merrimack. 

3.    Payment. Within one (1) business day after the Parties receive written notice of the release of
the Escrow Funds by the Escrow Holder to Merrimack, Merrimack shall pay or cause to be paid in cash to the trust account of Arent Fox LLP by wire transfer in accordance with the written wire instructions annexed hereto as Exhibit A
$361,223.74 in full satisfaction of Arent Fox LLP and the Trustee’s fees and expenses to date (the “AF Payment”). After the AF Payment is made, and within two (2) business days after the Parties receive written notice of the
release of the Escrow Funds by the Escrow Holder to Merrimack, Merrimack shall pay or cause to be paid in cash to each of the Holder Plaintiffs the sum of (a) $0.90 per each $1.00 of their Notes plus (b) accrued and unpaid interest on their
Notes through October 2, 2017, as set forth in the chart below (the “Settlement Payments”), and upon receipt thereof the Holder Plaintiffs shall surrender their Notes to Merrimack. The Settlement Payments shall be calculated as
follows: 
  

																	
	 Plaintiff
	  	Par Value of
Existing Notes	 	  	Settlement
Payment of
Principal	 	  	Accrued
and Unpaid
Interest	 	  	Total
Payment	 
	 Wolverine
	  	$	9,998,000.00	 	  	$	8,998,200.00	 	  	$	96,230.75	 	  	$	9,094,430.75	 
	 1992 MSF International
	  	$	19,600,000.00	 	  	$	17,640,000.00	 	  	$	188,650.00	 	  	$	17,828,650.00	 
	 1992 Tactical Credit Master Fund
	  	$	6,162,000.00	 	  	$	5,545,800.00	 	  	$	59,309.25	 	  	$	5,605,109.25	 
	 TOTAL
	  	$	35,760,000.00	 	  	$	32,184,000.00	 	  	$	344,190.00	 	  	$	32,528,190.00	 

  
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 After the AF Payment is made, and within two (2) business days after the Parties receive
written notice of the release of the Escrow Funds by the Escrow Holder to Merrimack, Merrimack shall also pay or cause to be paid in cash to the trust account of Friedman Kaplan Seiler & Adelman LLP by wire transfer in accordance with the
written wire instructions annexed hereto as Exhibit B $3,388,776.26 in full satisfaction of the fees and expenses of Plaintiffs and their professionals other than Arent Fox LLP and the Trustee (the “Fee Payment”). 

The Settlement Payments shall be paid by wire transfer in accordance with the written wire instructions annexed hereto as
Exhibit C (the instructions for 1992 MSF International and 1992 Tactical Credit Master Fund) and Exhibit D (the instructions for Wolverine). 

Pursuant to the Convertible Notes Offer described in paragraph 6 of the Agreement, promptly upon the expiration of the Convertible Notes
Offer, Merrimack shall also pay or cause to be paid in cash, by wire transfer to each of the Non-Plaintiff Noteholders (as defined in paragraph 6 of the Agreement) that participate in the Convertible Notes
Offer, in accordance with the written wire instructions these holders provide, the sum of (a) $0.90 per each $1.00 of their Notes that they surrender plus (b) accrued and unpaid interest on their Notes that they surrender through the date of
redemption (the “Participation Payments”). 
 Merrimack covenants and agrees that it shall apply the Escrow Funds released by the
Escrow Holder to the payment in full of (i) the AF Payment, (ii) the Settlement Payments, (iii) the Fee Payment, and (iv) the Participation Payments, prior to using any such funds to satisfy any other obligations. Merrimack
further agrees that it shall not seek to disgorge the Settlement Payments, the AF Payment, or the Fee Payment from Plaintiffs or Plaintiffs’ counsel, irrespective of the outcome of the Convertible Notes Offer. 

The Holder Plaintiffs represent that the Notes subject to the Agreement are the only Notes that the Holder Plaintiffs beneficially own. From
the date of the Agreement until the closing of the Convertible Notes Offer, the Holder Plaintiffs shall not, and shall cause their subsidiaries and any other entities managed by the same entity that manages any Holder Plaintiff not to, purchase or
otherwise acquire, or offer to purchase or otherwise acquire, any of the issued and outstanding Notes not presently owned by the Holder Plaintiffs, and the Holder Plaintiffs, their subsidiaries and any other entities managed by the same entity that
manages any Holder Plaintiff shall not authorize, commit, resolve or agree to purchase or otherwise acquire, or participate in any negotiations or discussions with any other third party regarding, the purchase or other acquisition of the issued and
outstanding Notes not presently owned by the Holder Plaintiffs. 
 4.    Fees. In respect of the AF
Payment and the Fee Payment, the Parties agree that Merrimack shall not make and shall not be obligated to make any other payment of fees or expenses with respect to the Action, including attorneys’ fees and expenses, and shall have no
responsibility or liability with respect to any fee or expense allocation among Plaintiffs’ attorneys or other professionals. Merrimack agrees to make the AF Payment to reimburse the Trustee and the Trustee’s counsel Arent Fox LLP for
reasonable fees and expenses in connection with the Action. In addition, Merrimack shall pay or cause to be paid to the trust account of Arent Fox LLP by wire transfer in accordance with the written wire instructions annexed hereto

  
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as Exhibit A $10,000.00 in full satisfaction of Arent Fox LLP and the Trustee’s fees and expenses in connection with the Convertible Notes Offer described in paragraph 6 of the
Agreement, which fees and expenses shall be paid within one (1) business day after the Parties receive written notice of the release of the Escrow Funds by the Escrow Holder to Merrimack. 

5.    Settlement and Dismissal of Pending Litigation. Within one (1) business day after Merrimack makes
the last of the AF Payment, the Settlement Payments, and the Fee Payment, the Parties shall sign and file a stipulation of dismissal with respect to the Holder Plaintiffs (the “Dismissal”), substantially in the form attached hereto as
Exhibit E. Plaintiffs and Merrimack shall execute and file such other papers as may be necessary to effectuate dismissal of the Action with prejudice in respect of the claims of the Holder Plaintiffs. 

Within one (1) business day after Merrimack makes the last of the Participation Payments, the Parties shall sign and file a stipulation
of dismissal without prejudice (the “Trustee Dismissal”), substantially in the form attached hereto as Exhibit F. Plaintiffs and Merrimack shall execute and file such other papers as may be necessary to effectuate dismissal of
the Action without prejudice in respect of the claims of the Trustee. 
 6.    Company Offer for Remaining
Convertible Notes. With respect to holders of the Notes other than the Holder Plaintiffs (“Non-Plaintiff Noteholders”), the Parties agree as follows: 

(i) Within one (1) business day after the Parties notify the Delaware Court of Chancery of the Agreement as described in paragraph 1 of
the Agreement, Merrimack will file a report on Form 8-K disclosing the Agreement (the “8-K”). The 8-K will include,
among other things, a disclosure substantially in the form described below: 
 “In connection with the entry of the Settlement, the
Company has agreed that the Company will offer to acquire the remaining $25,033,000.00 aggregate principal amount of the Notes (the “Remaining Notes”) for cash at a price of $0.90 per each $1.00 of Remaining Notes, plus accrued and unpaid
interest through the date of redemption (the “Convertible Notes Offer”).” 
 (ii) In accordance with its duties and
obligations as set forth in the Indentures, the Trustee shall provide notice of the Agreement to the Non-Plaintiff Noteholders as provided under the Indentures, and may include the language as described in
paragraph 6(i) of the Agreement concerning the Convertible Notes Offer. 
 (iii) The Company covenants and represents to the Trustee that
(a) it will make the Convertible Notes Offer, and use commercially reasonable efforts to commence the Convertible Notes Offer as soon as reasonably practicable following the filing of the 8-K,
(b) such Convertible Notes Offer will be conducted in compliance with applicable United States securities laws in all material respects, and (c) it has, and will have, at the expiration of the Convertible Notes Offer, sufficient cash,
marketable securities and other sources of immediately available funds, including any Escrow Funds released by the Escrow Holder to be applied for such purpose in accordance with paragraph 3 of the Agreement, necessary to pay the cash consideration
required to be paid in respect of Notes validly tendered and accepted pursuant to 

  
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the Convertible Notes Offer, and will purchase any and all such Notes validly tendered and accepted. For the avoidance of doubt, the Escrow Funds shall not be used for any purposes other than as
allowed under the Agreement, until such time as the Company purchases all Notes validly tendered and accepted pursuant to the Convertible Notes Offer. 

(iv) Non-Plaintiff Noteholders who do not participate in the Convertible Notes Offer shall retain any
and all rights under the Indentures in connection with their ownership of Notes, including the claims alleged in the Action. 

7.    Full Release. Upon the “Effective Date,” defined in paragraph 8 of the Agreement, the Holder
Plaintiffs, their subsidiaries and any other entities managed by the Holder Plaintiffs or for which the Holder Plaintiffs serve as general partner, and the Holder Plaintiffs’ past or present officers, directors, partners, members, employees,
agents, or any other representatives of any of these persons or entities (the “Holder Releasing Parties”), shall be deemed to have, fully, finally, and forever each released and forever discharged Merrimack, any other entities managed by
Merrimack (or any of its affiliates) or for which Merrimack serves as general partner, and each of their respective current and former parent companies, subsidiaries, members, affiliates, predecessors, successors, investment managers, heirs and
assigns and any of their past or present officers, directors, employees, attorneys, members, shareholders, partners, principals and agents (collectively, the “Holder Releasees”) of and from any and all actions, causes of action, demands,
rights, suits, debts, dues, charges, fees, costs, liabilities, complaints, claims, obligations, promises, agreements, controversies, damages, and expenses of any nature whatsoever, whether in law or in equity or otherwise, whether arising under
contract, tort, statute or any other legal theory or basis of any nature whatsoever, which the Holder Plaintiffs or any of them, ever had, now have or may have had against the Holder Releasees or any of them, whether known or unknown, suspected or
unsuspected, claimed or concealed, contingent or non-contingent, asserted or not asserted, arising out of or relating to the Action, the Indentures, the Notes, or the Transaction. 

Upon the “Effective Date,” defined in paragraph 8 of the Agreement, (a) Merrimack, (b) its parents, subsidiaries, and
affiliates, and (c) its past or present officers, directors, partners, members, employees, agents, shareholders, or any other representatives of any of these persons or entities (collectively, the “Merrimack Releasing Parties”), shall
be deemed to have, fully, finally, and forever each released and forever discharged the Holder Plaintiffs, their subsidiaries and any other entities managed by or which manage the Holder Plaintiffs, and each of their respective current and former
members, predecessors, successors, investment managers, heirs and assigns and any of their past or present officers, directors, employees, attorneys, members, shareholders, partners, principals and agents (collectively, the “Merrimack Holder
Releasees”) of and from any and all actions, causes of action, demands, rights, suits, debts, dues, charges, fees, costs, liabilities, complaints, claims, obligations, promises, agreements, controversies, damages, and expenses of any nature
whatsoever, whether in law or in equity or otherwise, whether arising under contract, tort, statute or any other legal theory or basis of any nature whatsoever, which the Merrimack Releasing Parties, or any of them, ever had, now have or may have
had against the Merrimack Holder Releasees or any of them, whether known or unknown, suspected or unsuspected, claimed or concealed, contingent or non-contingent, asserted or not asserted, arising out of or
relating to the Action, the Indentures, the Notes, or the Transaction. 

  
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 Upon the “Effective Date,” defined in paragraph 8 of the Agreement, the Merrimack
Releasing Parties shall be deemed to have, fully, finally, and forever each released and forever discharged the Trustee and its current and former members, predecessors, successors, investment managers, heirs and assigns and any of their past or
present officers, directors, employees, attorneys, members, shareholders, partners, principals and agents (collectively, the “Merrimack Trustee Releasees”) of and from any and all actions, causes of action, demands, rights, suits, debts,
dues, charges, fees, costs, liabilities, complaints, claims, obligations, promises, agreements, controversies, damages, and expenses of any nature whatsoever, whether in law or in equity or otherwise, whether arising under contract, tort, statute or
any other legal theory or basis of any nature whatsoever, which the Merrimack Releasing Parties, or any of them, ever had, now have or may have had against the Merrimack Trustee Releasees or any of them, whether known or unknown, suspected or
unsuspected, claimed or concealed, contingent or non-contingent, asserted or not asserted, arising out of or relating to the Action and the subject matter of the Action, through the date of this Agreement.

 The Parties acknowledge that they may hereafter discover facts in addition to or different from those that they now know or believe to be
true with respect to the subject matter of the releases contained herein and the covenants contained herein, but that it is their intention that such facts shall have no effect on such releases or covenants; in furtherance of such intention, they
acknowledge that the releases and covenants contained herein shall be and remain in effect notwithstanding the subsequent discovery or existence of any such additional or different facts. Moreover, the Parties acknowledge that they have considered
the possibility that they may not now fully know the number and magnitude of all claims that they have released hereby but agree nonetheless to assume that risk and desire to release such unknown claims to the extent they concern, refer or relate to
the claims and counterclaims that were or could have been brought in the Action.  

8.    Conditions of Settlement. The “Effective Date” of the Agreement shall be conditioned on the
occurrence of all of the following events: 
 (i)    The Parties notifying the Delaware Court of Chancery of the
Agreement, as described in paragraph 1 of the Agreement; 
 (ii)    The Escrow Holder releasing the Escrow Funds to
Merrimack, as described in paragraph 2 of the Agreement; 
 (iii)     (A) Merrimack making the AF Payment; then
(B) Merrimack making the Settlement Payments, and upon receipt thereof the Holder Plaintiffs surrendering to Merrimack their Notes, and Merrimack making the Fee Payment; and then (C) promptly upon the expiration of the Convertible Notes
Offer, Merrimack making the Participation Payments to the Non-Plaintiff Noteholders that participate in the Convertible Notes Offer in respect of those Notes that they shall surrender, as described in
paragraph 3 of the Agreement; 
 (iv)    The Parties signing and filing the Dismissal and the Trustee Dismissal with the
Delaware Court of Chancery, as described in paragraph 5 of the Agreement; and 

  
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 (v)     The Delaware Court of Chancery entering a dismissal of the Action on
its docket. 
 9.    No Admission of Wrongdoing. The Parties agree and expressly state that the execution
of the Agreement is done solely for the purposes of compromise of disputed claims and that neither the repurchase of the Notes described in the Agreement nor the dismissal of the Action is to be construed as an admission of liability, wrongdoing,
fault, judgment, or concession, or as evidence with respect thereto by any person. 
 10.    Non-Disparagement. The Parties agree that none of them will make any public statements to any third parties which harm the business reputation of any other Party to the Agreement. This paragraph shall not
apply to any statement made: (i) to enforce any of the terms of the Agreement; (ii) as may be required by applicable law, regulation, court order, subpoena or similar legal process; (iii) in testimony in any proceeding before any
governmental entity, agency or authority, including but not limited to the United States Congress, and including but not limited to deposition testimony; (iv) pursuant to any investigation, proceeding or information request by a government
agency or authority, including but not limited to any taxing, licensing or other regulatory authority; (v) in defense of claims brought against that person by a third party, including but not limited to a defense of proportionate liability
under the Private Securities Litigation Reform Act; or (vi) of matters otherwise covered by this paragraph once such matters have otherwise become public in nature, as long as no Party to the Agreement directly or indirectly caused such matters
to become public in violation of the Agreement. 
 11.    Return or Disposal of Discovery Materials. With
respect to the disposition of materials produced by the Parties during the course of discovery in the Action, the Parties agree as follows: 

(i) Within ten (10) business days after the Court’s entry of the Dismissal and the Trustee Dismissal, each Party shall return to the
Producing Party or destroy (and certify to the Producing Party the return and/or destruction of) all Discovery Materials and all copies of such materials, including, without limitation, all Confidential Discovery Materials and Highly Confidential
Materials received from the Producing Party. “Producing Party,” “Discovery Material,” “Confidential Discovery Material,” and “Highly Confidential Discovery Material” shall have the meanings set forth in the
Stipulation and [Proposed] Order Governing The Production And Exchange Of Confidential And Highly Confidential Information granted with modifications on April 12, 2017. Discovery Materials required to be returned or destroyed pursuant to this
paragraph shall be referred to herein as the “Disposed Materials.” 
 (ii) The Parties’ obligations to return or destroy
Discovery Materials shall include all materials and copies provided to any expert, consultant or other third party. 
 (iii) Notwithstanding
any provisions of the Agreement, the Parties agree that their respective outside counsel shall have the right to archive and retain for a period of ten (10) years one (1) hard copy and one (1) electronic copy of the following files
regardless of whether they contain Discovery Materials received from outside counsel for the opposing Party: correspondence files (excluding any document productions, whether in hard copy or in electronic form, included as enclosures or attachments
to correspondence from outside counsel for the 

  
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opposing Party); pleading files; written discovery requests and written responses served in the Action (excluding any document productions, whether in hard copy or in electronic form by an
opposing Party) (collectively, the “Retained Discovery Materials”); provided, however Plaintiffs’ outside counsel may not retain any Discovery Materials or other writings, in whatever form, medium or embodiment, that contain any
information produced by Merrimack in the Action. 
 (iv) With respect to (i), all “Disposed Materials” (pending their return
and/or destruction pursuant to this paragraph), and (ii) all “Retained Discovery Materials,” the Parties shall not use such materials for any purpose or disclose or provide such materials to any person, except to the extent required
by an order of a court having jurisdiction or under subpoena from a court of law or an appropriate government agency (in which event, the Party receiving any such subpoena or order shall give written notice to the other Party three (3) business
days prior to responding). 
 12.    Best Efforts. The Parties and their attorneys agree to cooperate
fully with one another and to use their best efforts to effect, take, or cause to be taken all actions, and to do, or cause to be done, all things reasonably necessary, proper, or advisable under applicable laws, regulations, and agreements to
consummate and make effective, as promptly as practicable, the Agreement (including, but not limited to, using their best efforts to resolve any objections raised to the Agreement) and the transactions described in the Agreement, the release of the
Escrow Funds by the Escrow Agent and the filing of the Dismissal and the Trustee Dismissal substantially in the forms annexed hereto as Exhibit E and Exhibit F, respectively. 

13.    Further Assurances. The Parties and each of them covenant and agree that they will execute such other
and further instruments and documents, and take such other and further actions, as are or may become reasonably necessary or appropriate to effectuate and carry out the intention and purpose of the Agreement and the transactions described in the
Agreement. In the event of the failure or refusal of any Party to execute such other or further instrument or document or take such other action as called for under this paragraph, the Agreement shall be deemed to stand in the place of such document
and shall have the same effect as such document, deed, instrument or conveyance would have had if properly executed, acknowledged and delivered. Notwithstanding the foregoing, the Trustee shall not be required or obligated to take any action in
violation or derogation of the Indentures or not otherwise authorized under the Indentures. 
 14.    Entire
Agreement. The Agreement, including all exhibits hereto, contains the entire understanding and agreement by and between Plaintiffs and Merrimack concerning the settlement of all claims relating in any way to the Action. All exhibits to the
Agreement are material and integral parts hereof and are fully incorporated herein by this reference. The Agreement constitutes the final and complete agreement of Plaintiffs and Merrimack and supersedes all prior negotiations, promises, covenants,
agreements or representations concerning any matters directly, indirectly or collaterally related to the subject matter of the Agreement. Plaintiffs and Merrimack intend that the Agreement shall constitute an integration of all prior settlement
negotiations between them. Furthermore, Plaintiffs and Merrimack expressly acknowledge that no promise, assurance, representation, inducement or agreement not expressly stated herein has been made to it in connection with the negotiation or

  
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execution of the Agreement, and each of Plaintiffs and Merrimack expressly warrants that, other than the statements expressly contained herein, it has not relied on any promise, assurance,
representation, inducement or agreement in deciding to enter into the Agreement. 
 15.    Adequacy of
Consideration. The Parties agree that the consideration given for the Agreement is adequate, that the Agreement is the product of arm’s length negotiations between the Parties, and that each Party negotiated the Agreement through
counsel. 
 16.    Notice. All notices, requests, claims, demands and other communications hereunder shall
be in writing and shall be marked for the attention of the individuals identified below (or such other person as a Party shall by notice designate) and shall be delivered (and shall be deemed to have been duly given if so given) by hand delivery,
facsimile, or mail (registered or certified, postage prepaid, return receipt requested) to the respective Parties as follows: 
 Scott M.
Berman, Esq. 
 Philippe Adler, Esq. 

FRIEDMAN KAPLAN 

SEILER & ADELMAN LLP 
 7
Times Square 
 New York, NY 10036-6516 

Attorneys for Plaintiffs 

Andrew I. Silfen, Esq. 
 ARENT FOX
LLP 
 1675 Broadway 
 New York,
NY 10019-5820 
 silfen.andrew@arentfox.com 

Attorneys for Plaintiff Wells Fargo 

Anthony W. Clark, Esq. 
 Joseph O.
Larkin, Esq. 
 Matthew P. Majarian, Esq. 

Skadden, Arps, Slate, Meagher & Flom LLP 

One Rodney Square 
 P.O. Box 636

 Wilmington, Delaware 19899-0636 

anthony.clark@skadden.com 

joseph.larkin@skadden.com 

matthew.majarian@skadden.com 

Attorneys for Merrimack Pharmaceuticals, Inc. 

17.    Authority. Each Party represents that it is authorized to enter into the Agreement and to grant the
rights granted by it in the Agreement, and that it has not assigned any claim or cause of action that was or could have been brought in the Action or in any court. Each Party further represents that, to the extent any
non-party consents are required for the performance of any of its obligations under the Agreement, it has or shall obtain such consents. 

  
 10 

 18.    Counterparts. The Agreement may be executed in any
number of counterparts and by fax or PDF e-mail, each of which when so executed and delivered shall be deemed an original but all of which together shall constitute the same instrument and Agreement. 

19.    Successors and Assigns. The Agreement shall be binding upon and inure to the benefit of the Parties
and their respective insurers, predecessors-in-interest, successors-in-interest, parents,
subsidiaries, divisions or affiliated corporations, and past or present directors, officers, trustees, shareholders, employees, members, partners, associates, agents, attorneys, representatives, executors, administrators, assigns, principals,
partners, co-venturers and all persons acting through, under or in concert with them; provided, however, that no Party may assign any of his or its rights or delegate any of his or its duties under the
Agreement without the prior written consent of the other Parties or, as described in the Agreement, by such assign being or becoming a Party. 

20.    Waiver and Amendment. Any waiver by any Party of a breach of any provision of the Agreement shall not
operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of the Agreement. The failure of a Party to insist upon strict adherence to any term of the Agreement on one or more occasions
shall not be considered a waiver or deprive that Party of the right thereafter to insist upon strict adherence to that term or any other term of the Agreement. The Agreement may be amended only by a written document signed by all Parties. 

21.    Severability. If, after the date hereof, any provision of the Agreement is held to be illegal,
invalid or unenforceable under present or future laws, each such provision shall be fully severable and will not affect the legality of the entire agreement or any other terms in the Agreement. In lieu thereof, there shall be added a provision as
similar in terms to each such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable. 

22.    Construction. The Agreement has been negotiated at arm’s length and each Party to the Agreement
has been represented by legal counsel. Accordingly, the rule of law or legal decisions that would require the interpretation of any ambiguities in the Agreement against the Party drafting it is not applicable and is therefore waived. 

23.    Default, Breach, Specific Performance. The Parties acknowledge and agree that irreparable injury to
the other Parties would occur in the event any of the provisions of the Agreement were not performed in accordance with their specific terms or were otherwise breached, and that money damages for such injury would be an inadequate remedy for any
breach of the Agreement. It is accordingly agreed that any Party shall be entitled to specific enforcement of, and injunctive relief to prevent any violation of, the terms of the Agreement. The remedy of specific performance shall be in addition to,
and in no way shall preclude, any possible remedies at law. In the event the Company breaches, violates, or defaults on its obligations and agreements under the Agreement or if the Effective Date does not occur within ninety (90) days of the
execution of the Agreement, the Action shall be restored to the calendar. 

  
 11 

 
Without limiting the provisions of the Indentures, if the Trustee brings an action against the Company based upon a default, breach, or violation of the Agreement, or otherwise takes steps or
actions to enforce the Agreement as a result of a breach, violation, or default of the Agreement by the Company, the Trustee shall be entitled to payment of all reasonable expenses, costs, and charges, including attorneys’ and professional fees
and expenses, and the Company shall promptly pay such expenses, costs, and charges. For the avoidance of doubt, the Trustee shall not be entitled to enforce the Agreement on behalf of any Holder Plaintiff, and shall not be entitled to payment of
expenses, costs, or charges, including attorneys’ and professional fees and expenses, incurred by or on behalf of any Holder Plaintiff. 

24.    Headings. The paragraph headings contained in the Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of the Agreement. 
 25.    Survival of
Representations. All representations, warranties and agreements made in the Agreement shall survive indefinitely. 

26.    Choice of Law. The Agreement and the respective rights and obligations of the Parties in respect of
the Agreement shall be governed by, and shall be determined under, the laws of the State of Delaware without regard to that state’s choice of law principles. 

27.    Indentures Remain in Full Force and Effect. The Agreement shall not alter, impair, or affect the
Indentures, and all terms, conditions, and provisions of the Indentures remain in full force and effect. Nothing contained in the Agreement shall limit or restrict the Trustee’s powers and rights under the Indentures or otherwise affect its
ability or the ability of holders of the Notes to enforce the terms of the Indentures. 
 28.    Mandatory Forum
Clause. Any action involving the Agreement shall be brought and maintained solely in a court of the State of Delaware or a federal court sitting in the State of Delaware. The Parties: (i) irrevocably and unconditionally consent and
submit to the in personam jurisdiction of such courts in any such action; (ii) consent to service of process by registered mail made upon such Party and/or such Party’s agent; and (iii) waive any objection to venue in any such
Delaware court and a claim that any such Delaware court is an inconvenient forum. 
 [SIGNATURE PAGE FOLLOWS] 

  
 12 

 WELLS FARGO BANK, NATIONAL ASSOCIATION, IN ITS CAPACITY AS INDENTURE TRUSTEE UNDER THE INDENTURES 

 

							
	 By:
	 	 /s/ James R. Lewis
	 		  	 Date: October 6, 2017

	 Name:
	 	James R. Lewis	 		  	
	 Title:
	 	Vice President	 		  	
				
	 By:
	 	 /s/ Andrew I. Silfen
	 		  	
		 	Andrew I. Silfen	 		  	

 ARENT FOX LLP 
 1675 Broadway 

New York, NY 10019-5820 
 Tel:    (212) 484-3900 
 Fax:   (212) 484-3990 

Email: silfen.andrew@arentfox.com 
 Attorneys for Plaintiff
Wells Fargo Bank, National Association, in its capacity as Indenture Trustee under the Indentures 
 WOLVERINE FLAGSHIP FUND TRADING LIMITED 

 

							
	By:	 	 /s/ Kenneth L. Nadel
	 		  	 Date: October 6, 2017

	Name:	 	Kenneth L. Nadel	 		  	
	Title:	 	Authorized Signatory	 		  	

 1992 MSF INTERNATIONAL LTD 
 By:
Highbridge Capital Management, LLC, as trading manager and not in its individual capacity 
  

							
	By:	 	 /s/ Jason Hempel
	 		  	 Date: October 6, 2017

	Name:	 	Jason Hempel	 		  	
	Title:	 	Managing Director	 		  	

  
 13 

 1992 TACTICAL CREDIT MASTER FUND, L.P. 

By: Highbridge Capital Management, LLC, as trading manager and not in its individual capacity 

 

							
	By:	 	 /s/ Jason Hempel
	 		  	 Date: October 6, 2017

	Name:	 	 Jason Hempel
	 		  	
	Title:	 	 Managing Director
	 		  	
				
	By:	 	 /s/ Scott M. Berman
	 		  	
	Scott M. Berman	 		  	

 Philippe Adler 
 FRIEDMAN KAPLAN

 SEILER & ADELMAN LLP 
 7 Times Square 

New York, NY 10036-6516 
 Attorneys for Plaintiffs 

MERRIMACK PHARMACEUTICALS, INC. 
  

							
	By	 	 /s/ Jeffrey A. Munsie
	 		  	 Date: October 6, 2017

	Name:	 	Jeffrey A. Munsie	 		  	
	Title:	 	General Counsel, Head of Corporate Operations, and Secretary	 		  	
				
	By	 	 /s/ Joseph O. Larkin
	 		  	
	Anthony W. Clark	 		  	
	Joseph O. Larkin	 		  	

 Matthew P. Majarian 
 Skadden,
Arps, Slate, Meagher & Flom LLP 
 One Rodney Square 

P.O. Box 636 
 Wilmington, DE 19899-0636 

Attorneys for Merrimack Pharmaceuticals, Inc. 

  
 14 

 EXHIBIT A 

 WIRE INSTRUCTIONS: 

ARENT FOX LLP 
 Bank: 

ABA #: 
 SWIFT: 

Acct:      
 Acct. #

Reference: 

 EXHIBIT B 

 WIRE INSTRUCTIONS: 

FRIEDMAN KAPLAN SEILER & ADELMAN LLP 

Bank: 
 ABA #: 

SWIFT: 
 Acct:      

Acct. #
 Additional Instructions: 

 EXHIBIT C 

 WIRE INSTRUCTIONS: 

1992 MSF INTERNATIONAL AND 1992 TACTICAL CREDIT MASTER FUND 

Bank: 
 ABA #: 

SWIFT: 
 Acct:      

Acct. #

 EXHIBIT D 

 WIRE INSTRUCTIONS: 

WOLVERINE FLAGSHIP FUND TRADING LIMITED 

Bank: 
 ABA #: 

SWIFT: 

1st Beneficiary Acct.:      

1st Beneficiary Acct. # 

2nd Beneficiary Acct.:      

2nd Beneficiary Acct. # 

 EXHIBIT E 

 IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE 

 

							
	 WELLS FARGO BANK, NATIONAL ASSOCIATION, as Indenture Trustee for Merrimack Pharmaceuticals, Inc. 4.50% Convertible Senior Notes due 2020,
WOLVERINE FLAGSHIP FUND TRADING LIMITED, 1992 MSF INTERNATIONAL LTD., and 1992 TACTICAL CREDIT MASTER FUND, L.P.
  

Plaintiffs,
  

v.
  

MERRIMACK PHARMACEUTICALS, INC.,
  

Defendant.
	  	 
 
 

 

 

 

 

 

 

 

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	  	 C.A. No. 2017-0199-JTL

 

 STIPULATION AND [PROPOSED] ORDER OF DISMISSAL 

PURSUANT TO COURT OF CHANCERY RULE 41 

WHEREAS, Plaintiffs and Merrimack Pharmaceuticals, Inc. entered into a Stipulation and Agreement of Settlement and Release (the
“Agreement”); and 
 WHEREAS, as part of the Agreement, (i) Plaintiffs Wolverine Flagship Fund Trading Limited, 1992 MSF
International Ltd. and 1992 Tactical Credit Master Fund, L.P. (collectively, the “Noteholders”) agreed to dismiss this action with prejudice and (ii) Plaintiff Wells Fargo Bank, National Association (the “Trustee”) agreed to
dismiss this action without prejudice after Merrimack has paid all holders of Merrimack 4.50% Convertible Senior Notes due 2020 (the “Notes”) that choose to participate in Merrimack’s offering to acquire the Notes, pursuant to the
terms of that offering. 

 NOW, THEREFORE, IT IS HEREBY STIPULATED, AGREED, AND ORDERED this     th day
of October, 2017, pursuant to Court of Chancery Rule 41(a)(1)(ii) and the terms of the Agreement, and subject to the Court’s approval, that the Action, including all claims and defenses asserted herein, is dismissed with prejudice with respect
to the Noteholders only. 
  

			
	 /s/ John P.
DiTomo                                

John P. DiTomo (#4850)
 Glenn R. McGillivray (#6057)

MORRIS, NICHOLS, ARSHT & TUNNELL LLP
 1201 North Market
Street
 Wilmington, DE 19801
 (302) 658-9200
 Attorneys for Plaintiffs
  

OF COUNSEL:
  

Scott M. Berman
 Philippe Adler

FRIEDMAN KAPLAN 
SEILER & ADELMAN LLP
 7 Times
Square
 New York, NY 10036-6516

    Attorneys for Plaintiffs
	  	 /s/ Anthony W.
Clark                                

Anthony W. Clark (#2051)
 Joseph O. Larkin (#4883)

Matthew P. Majarian (#5696)
Skadden, Arps, Slate, Meagher & Flom LLP
One Rodney Square

P.O. Box 636
 Wilmington, DE 19899-0636
Attorneys for
Merrimack Pharmaceuticals, Inc.
  
 OF COUNSEL:

 
 Christopher G. Clark

SKADDEN, ARPS, SLATE,
     MEAGHER &
FLOM LLP
 500 Boylston Street
Boston, Massachusetts 02116
(617) 573-4800

	
	 Andrew I. Silfen
 ARENT FOX LLP

1675 Broadway
 New York, NY 10019-5820

Tel:    (212) 484-3900
Fax:   (212)
484-3990
 Email: silfen.andrew@arentfox.com

 
 Jackson D. Toof

ARENT FOX LLP
 1717 K Street, N.W.

Washington, D.C. 2000636
 Tel:    (202) 857-6000
 Fax:   (202) 857-6395

Email: toof.jackson@arentfox.com

    Attorneys for Plaintiff Wells Fargo

    Bank, National Association, solely

    in its capacity as Indenture

    Trustee under the Indenture

 SO ORDERED this      day of October, 2017. 

 

                    
                                         
    
 Vice Chancellor J. Travis Laster 

 EXHIBIT F 

 IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE 

 

							
	 WELLS FARGO BANK, NATIONAL ASSOCIATION, as Indenture Trustee for Merrimack Pharmaceuticals, Inc. 4.50% Convertible Senior Notes due 2020,
WOLVERINE FLAGSHIP FUND TRADING LIMITED, 1992 MSF INTERNATIONAL LTD., and 1992 TACTICAL CREDIT MASTER FUND, L.P.
  

Plaintiffs,
  

v.
  

MERRIMACK PHARMACEUTICALS, INC.,
  

Defendant.
	  	 
 
 

 

 

 

 

 

 

 

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	  	 C.A. No. 2017-0199-JTL

 

 STIPULATION AND [PROPOSED] ORDER OF DISMISSAL 

PURSUANT TO COURT OF CHANCERY RULE 41 

WHEREAS, Plaintiffs and Merrimack Pharmaceuticals, Inc. entered into a Stipulation and Agreement of Settlement and Release (the
“Agreement”); 
 WHEREAS, as part of the Agreement, (i) Plaintiffs Wolverine Flagship Fund Trading Limited, 1992 MSF
International Ltd. and 1992 Tactical Credit Master Fund, L.P. (collectively, the “Noteholders”) agreed to dismiss this action with prejudice with respect to the Noteholders, and (ii) Plaintiff Wells Fargo Bank, National Association
(the “Trustee”) agreed to dismiss this action without prejudice after Merrimack has paid all holders of Merrimack 4.50% Convertible Senior Notes due 2020 (the “Notes”) that choose to participate in Merrimack’s offering to
acquire the Notes, pursuant to the terms of that offering; and 

 WHEREAS, on October     , 2017, the Court entered the dismissal with
prejudice of the Action with respect to the Noteholders. 
 NOW, THEREFORE, IT IS HEREBY STIPULATED, AGREED, AND ORDERED this
    th day of October, 2017, pursuant to Court of Chancery Rule 41(a)(1)(ii) and the terms of the Agreement, and subject to the Court’s approval, that the Action, including all claims and defenses asserted herein, is
dismissed without prejudice with respect to the Trustee. 
  

			
	 /s/ John P.
DiTomo                            

John P. DiTomo (#4850)
 Glenn R. McGillivray (#6057)

MORRIS, NICHOLS, ARSHT & TUNNELL LLP
 1201 North Market
Street
 Wilmington, DE 19801
 (302) 658-9200
 Attorneys for Plaintiffs
  

OF COUNSEL:
  

Scott M. Berman
 Philippe Adler

FRIEDMAN KAPLAN 
SEILER & ADELMAN LLP
 7 Times
Square
 New York, NY 10036-6516

    Attorneys for Plaintiffs
	  	 /s/ Anthony W.
Clark                            

Anthony W. Clark (#2051)
 Joseph O. Larkin (#4883)

Matthew P. Majarian (#5696)
Skadden, Arps, Slate, Meagher & Flom LLP
One Rodney Square

P.O. Box 636
 Wilmington, DE 19899-0636
Attorneys for
Merrimack Pharmaceuticals, Inc.
  
 OF COUNSEL:

 
 Christopher G. Clark

SKADDEN, ARPS, SLATE,
     MEAGHER &
FLOM LLP
 500 Boylston Street
Boston, Massachusetts 02116
(617) 573-4800

	
	 Andrew I. Silfen
 ARENT FOX LLP

1675 Broadway
 New York, NY 10019-5820

Tel:    (212) 484-3900
Fax:   (212)
484-3990
 Email: silfen.andrew@arentfox.com

 
 Jackson D. Toof

ARENT FOX LLP
 1717 K Street, N.W.

Washington, D.C. 2000636
 Tel:    (202) 857-6000
 Fax:   (202) 857-6395

Email: toof.jackson@arentfox.com

    Attorneys for Plaintiff Wells Fargo

    Bank, National Association, solely

    in its capacity as Indenture

    Trustee under the Indenture

 SO ORDERED this      day of October, 2017. 

 

                    
                                         
        
 Vice Chancellor J. Travis LasterExhibit 10.1

 

 

INDIA GLOBALIZATION CAPITAL, INC.

 

2018 OMNIBUS INCENTIVE PLAN

 

Effective as of April 1, 2018

 

 

 

TABLE OF CONTENTS

 

	
ARTICLE 1.

	
ESTABLISHMENT, PURPOSE, AND DURATION

	
1

	
ARTICLE 2.

	
DEFINITIONS

	
1

	
ARTICLE 3.

	
ADMINISTRATION

	
6

	
ARTICLE 4.

	
SHARES SUBJECT TO THE PLAN

	
8

	
ARTICLE 5.

	
ELIGIBILITY AND PARTICIPATION

	
10

	
ARTICLE 6.

	
STOCK OPTIONS

	
10

	
ARTICLE 7.

	
STOCK APPRECIATION RIGHTS

	
13

	
ARTICLE 8.

	
RESTRICTED STOCK AND RESTRICTED STOCK UNITS

	
15

	
ARTICLE 9.

	
PERFORMANCE UNITS/PERFORMANCE SHARES

	
17

	
ARTICLE 10.

	
CASH-BASED AWARDS AND OTHER STOCK-BASED AWARDS

	
19

	
ARTICLE 11.

	
PERFORMANCE MEASURES

	
20

	
ARTICLE 12.

	
DIVIDEND EQUIVALENTS

	
22

	
ARTICLE 13.

	
BENEFICIARY DESIGNATION

	
22

	
ARTICLE 14.

	
RIGHTS OF PARTICIPANTS

	
22

	
ARTICLE 15.

	
CHANGE IN CONTROL

	
23

	
ARTICLE 16.

	
CANCELLATION OF AWARDS

	
24

	
ARTICLE 17.

	
AMENDMENT, MODIFICATION AND TERMINATION

	
25

	
ARTICLE 18.

	
WITHHOLDING

	
25

	
ARTICLE 19.

	
INDEMNIFICATION

	
26

	
ARTICLE 20.

	
SUCCESSORS

	
26

	
ARTICLE 21.

	
GENERAL PROVISIONS

	
27

 

 

i

INDIA GLOBALIZATION CAPITAL, INC.

 

2018 OMNIBUS INCENTIVE PLAN

 

ARTICLE 1.  ESTABLISHMENT, PURPOSE, AND DURATION

 

1.1 Establishment of the Plan.  India Globalization Capital, Inc. (the “Company”), hereby establishes a stock option and incentive award plan known as the “India Globalization Capital, Inc. 2018 Omnibus Incentive Plan” (the “Plan”), effective as of the date of approval by the shareholders.  The Plan permits the grant of Incentive Stock Options, Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, Other Stock-Based Awards and Cash-Based Awards.

 

1.2 Purpose of the Plan.  The purpose of the Plan is to secure for the Company and its shareholders the benefits of the incentive inherent in stock ownership in the Company by key employees, directors, consultants and other persons who perform services for the Company and its Parent, Subsidiaries and Affiliates (the “Participants”), who are responsible for its future growth and continued success.  The Plan promotes the success and enhances the value of the Company by linking the personal interests of Participants to those of the Company’s shareholders, and by providing Participants with an incentive for outstanding performance.  The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract and retain the services of Participants upon whose judgment, interest and special effort the successful conduct of its operation largely depends.

 

1.3 Duration of the Plan.  The Plan shall remain in effect, subject to the right of the Board of Directors to amend or terminate the Plan at any time pursuant to Article 17, for a duration of ten (10) years from the Plan’s effective date.  After this Plan is terminated, no Awards may be granted but Awards previously granted shall remain outstanding in accordance with their applicable terms and conditions and this Plan’s terms and conditions.

 

ARTICLE 2.  DEFINITIONS

 

Whenever used in the Plan, the following terms shall have the meanings set forth below:

 

	
(a)  

	
“Affiliate” shall mean any corporation or other entity (including, but not limited to, a partnership or limited liability company) that is affiliated with the Company through stock or equity ownership such that it controls or is controlled by, or is under common control with, the Company.

 

	
(b)  

	
“Agreement” means an agreement entered into by each Participant and the Company, setting forth the terms and provisions applicable to Awards granted to Participants under this Plan.

 

	
(c)  

	
“Award” means, individually or collectively, a grant under this Plan of Incentive Stock Options, Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, Other Stock-Based Awards and Cash-Based Awards.

 

 

1

 

 

	
(d)  

	
“Beneficial Owner” or “Beneficial Ownership” shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act.

 

	
(e)  

	
“Board” or “Board of Directors” means the Board of Directors of the Company.

 

	
(f)  

	
“Cause” means (i) the same definition for “cause” set forth in any employment agreement between the Participant and the Company, Subsidiary and/or Affiliate in effect when the event(s) occur, or, (ii) in the absence of such an employment agreement, the Participant’s conduct that is (A) the Participant’s engaging in any act or omission in the capacity of his or her employment with the Company, Subsidiary and/or Affiliate constituting dishonesty, theft, fraud, embezzlement, moral turpitude or other wrongdoing or malfeasance; or, (B) the Participant’s conviction of a felony under federal or state law; or, (C) the Participant’s engaging in any act or omission constituting gross misuse of his or her authorities, gross or continual dereliction of his or her duties to the Company, Subsidiary and/or Affiliate, or that is materially injurious or embarrassing to any such entity’s business, operations or reputation; or, (D) the Participant breaching the noncompetition, nonsolicitation, or confidentiality provisions of any written agreement with the Company, Subsidiary and/or Affiliate prohibiting such conduct.  Solely for purposes of this Plan, the Plan Administrator may use the designation of “Cause,” or without “Cause,” determined by the Company (or any subsidiary that is the “employer” of the Participant) or the Plan Administrator may make an independent designation of “Cause” with respect to employment termination in accordance with the terms of this Plan.  The designation of the Plan Administrator with respect to “Cause” under this Plan shall not be used for any other purpose and shall not be used against either the Company or any Participant.

 

	
(g)  

	
“Change in Control” has meaning set forth in Article 15 of this Plan.

 

	
(h)  

	
“Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor act thereto.

 

	
(i)  

	
“Committee” means the Compensation Committee of the Board of Directors appointed by the Board to administer the Plan with respect to grants of Awards, as specified in Article 3, and to perform the functions set forth therein; or in the absence of such appointment, the Board itself.

 

	
(j)  

	
“Common Stock” means the common stock of the Company.

 

	
(k)  

	
“Company” means India Globalization Capital, Inc., a Maryland corporation, or any successor thereto as provided in Article 20.

 

	
(l)  

	
“Covered Employee” means any key Employee who is or may become a “Covered Employee,” as defined in Code Section 162(m), and who is designated, either as an individual Employee or class of Employees, by the Committee within the shorter of: (i) ninety (90) days after the beginning of the Performance Period, or (ii) twenty-five percent (25%) of the Performance Period has elapsed, as a “Covered Employee” under this Plan for such applicable Performance Period.

 

 

2

 

 

	
(m)  

	
“Detrimental Activity” means the violation of any agreement between the Company, Subsidiary and/or Affiliate and the Participant pertaining to (a) the disclosure of confidential information or trade secrets of any such entity, (b) the solicitation of employees, customers, suppliers, licensees, licensors or contractors of any such entity, or (c) the performance of competitive services with respect to the business of the Company, Subsidiary and/or Affiliate; provided, that the Committee may provide in the Agreement that only certain of the restrictions provided above apply for purposes of the Agreement.

 

	
(n)  

	
“Director” means any individual who is a member of the Board of Directors of the Company or any Parent, Subsidiary, or Affiliate and who is not an Employee.

 

	
(o)  

	
“Disability” shall have the meaning ascribed in such term in the Company’s long-term disability plan covering the Participant, or in the absence of such plan, a meaning consistent with Code Section 22(e)(3), unless otherwise specified in an employment agreement between the Company, Subsidiary and/or Affiliate and a Participant.  The existence of Disability shall be determined by the Committee in good faith.  To the extent an Award constitutes “deferred compensation” subject to Code Section 409A and provides for payment upon disability, the Agreement shall define “disability” pursuant to Treasury Regulation Section 1.409A-3(i)(4).

 

	
(p)  

	
“Employee” means any employee of the Company or any Parent, Subsidiary, or Affiliate.

 

	
(q)  

	
“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto.

 

	
(r)  

	
“Fair Market Value” shall be determined as follows:

 

	
(i)  

	
If, on the relevant date, the Shares are traded on a national or regional securities exchange or on The New York Stock Exchange (Market) (“NYSE AMERICAN”) and closing sale prices for the Shares are customarily quoted, on the basis of the closing sale price on the principal securities exchange on which the Shares may then be traded or, if there is no such sale on the relevant date, then on the immediately preceding day on which a sale was reported;

 

	
(ii)  

	
If, on the relevant date, the Shares are not listed on any securities exchange or traded on NYSE AMERICAN, but nevertheless are publicly traded and reported on NYSE AMERICAN without closing sale prices for the Shares being customarily quoted, on the basis of the mean between the closing bid and asked quotations in such other over-the-counter market as reported by NYSE AMERICAN; but, if there are no bid and asked quotations in the over-the-counter market as reported by NYSE AMERICAN on that date, then the mean between the closing bid and asked quotations in the over-the-counter market as reported by NYSE AMERICAN on the immediately preceding day such bid and asked prices were quoted; and

 

	
(iii)  

	
If, on the relevant date, the Shares are not publicly traded as described in (i) or (ii), on the basis of the good faith determination of the Committee.

 

 

3

 

 

	
(s)  

	
“Grant Price” means the price established when the Committee approves the grant of a SAR pursuant to Article 7, used to determine whether there is any payment due upon exercise of the SAR.

 

	
(t)  

	
“Incentive Stock Option” or “ISO” means an option to purchase Shares granted under Article 6 to an Employee which is designated as an Incentive Stock Option and is intended to meet the requirements of Section 422 of the Code, or any successor provision.

 

	
(u)  

	
“Insider” shall mean an individual who is, on the relevant date, an officer or a director, or a ten percent (10%) Beneficial Owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act or any successor provision, as “officer” and “director” are defined under Section 16 of the Exchange Act.

 

	
(v)  

	
“Nonqualified Stock Option” or “NQSO” means an option to purchase Shares granted under Article 6, and which is not intended to meet the requirements of Code Section 422 or which fails to meet such requirements.

 

	
(w)  

	
“Non-Tandem SAR” means a SAR that is granted independently of any Option, as described in Article 7.

 

	
(x)  

	
“Option” means an Incentive Stock Option or a Nonqualified Stock Option, as described in Article 6.

 

	
(y)  

	
“Option Price” means the price at which a Share may be purchased by a Participant pursuant to an Option, as determined by the Committee.

 

	
(z)  

	
“Other Stock-Based Award” means an equity-based or equity-related Award not otherwise described by the terms of this Plan, granted pursuant to Article 10.

 

	
(aa)  

	
“Parent” means a “parent corporation,” whether now or hereafter existing as defined in Code Section 424(e).

 

	
(bb)  

	
“Participant” means an Employee, a Director, consultant or other person who performs services for the Company or a Parent, Subsidiary, or Affiliate of the Company, who has been granted an Award under the Plan which is outstanding.

 

	
(cc)  

	
“Performance-Based Compensation” means compensation under an Award that is intended to satisfy the requirements of Code Section 162(m) for certain performance-based compensation paid to Covered Employees.  Notwithstanding the foregoing, nothing in this Plan shall be construed to mean that an Award which does not satisfy the requirements for performance-based compensation under Code Section 162(m) does not constitute performance-based compensation for other purposes, including Code Section 409A.

 

 

4

 

 

	
(dd)  

	
“Performance-Based Exception” means the exception for Performance-Based Compensation from the tax deductibility limitations of Code Section 162(m).

 

	
(ee)  

	
“Performance Measures” means measures as described in Article 11 on which the performance goals are based and which are approved by the Company’s shareholders pursuant to this Plan in order to qualify Awards as Performance-Based Compensation.

 

	
(ff)  

	
“Performance Period” means the period of time during which the performance goals must be met in order to determine the degree of payout and/or vesting with respect to an Award.

 

	
(gg)  

	
“Performance Share” means an Award under Article 9 and subject to the terms of this Plan, denominated in fully paid Shares, the value of which at the time it is payable is determined as a function of the extent to which corresponding performance criteria or Performance Measure(s), as applicable, have been achieved.

 

	
(hh)  

	
“Performance Unit” means an Award under Article 9 and subject to the terms of this Plan, denominated in units, the value of which at the time it is payable is determined as a function of the extent to which corresponding performance criteria or Performance Measure(s), as applicable, have been achieved.

 

	
(ii)  

	
“Period of Restriction” means the period when Restricted Stock or Restricted Stock Units are subject to a substantial risk of forfeiture (based on the passage of time, the achievement of performance goals, or the occurrence of other events as determined by the Committee, in its discretion).

 

	
(jj)  

	
“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof.

 

	
(kk)  

	
“Plan” means this India Globalization Capital, Inc. 2018 Omnibus Incentive Plan, including any amendments thereto.

 

	
(ll)  

	
“Plan Year” means the Company’s fiscal year.

 

	
(mm)  

	
“Restricted Stock” means an Award of Common Stock granted in accordance with the terms of Article 8 and the other provisions of the Plan, and which is nontransferable and subject to a substantial risk of forfeiture.  Shares of Common Stock shall cease to be Restricted Stock when, in accordance with the terms hereof and the applicable Agreement, they become transferable and free of substantial risk of forfeiture.

 

 

5

 

 

	
(nn)  

	
“Restricted Stock Unit” means an Award to a Participant pursuant to Article 8, except that no Shares are actually awarded to the Participant on the Grant Date.

 

	
(oo)  

	
“Shares” means the shares of Common Stock of the Company (including any new, additional or different stock or securities resulting from the changes described in Section 4.2).

 

	
(pp)  

	
“Stock Appreciation Right” or “SAR” means an Award, designated as a SAR, pursuant to the terms of Article 7 herein.

 

	
(qq)  

	
“Subsidiary” means (i) in the case of an ISO, any company during any period in which it is a “subsidiary corporation” (as that term is defined in Code Section 424(f)), and (ii) in the case of all other Awards, in addition to a “subsidiary corporation” as defined above, a partnership, limited liability company, joint venture or other entity in which the Company as fifty percent (50%) or more of the voting power or equity interests.

 

	
(rr)  

	
“Tandem SAR” means a SAR that is granted in connection with a related Option pursuant to Article 7, the exercise of which shall require forfeiture of the right to purchase a Share under the related Option (and when a Share is purchased under the Option, the Tandem SAR shall similarly be forfeited).

 

	
(ss)  

	
“Third-Party Service Provider” means any consultant, agent, advisor, or independent contractor who renders services to the Company, any Parent, any Subsidiary, or an Affiliate that: (i) are not in connection with the offer or sale of the Company’s securities in a capital raising transaction; and (ii) do not directly or indirectly promote or maintain a market for the Company’s securities.

 

ARTICLE 3.  ADMINISTRATION

 

3.1 The Committee.  The Plan shall be administered by the Committee.  The Committee shall consist of not less than two (2) Directors who are both non-employee directors, within the meaning of Rule 16b-3 of the Exchange Act, and “outside directors,” as defined in Treasury Regulation Section 1.162-27; provided, however, that if at any time any member of the Committee is not an outside director, as so defined, the Committee may establish a subcommittee, consisting of all members who are outside directors, for all purposes of any Award to a Covered Employee, unless the Committee determines that such an Award is not intended to qualify for the Performance-Based Exception.

 

 

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3.2 Authority of the Committee.  The Committee shall have full and exclusive discretionary power to construe and interpret the terms and the intent of this Plan and any Agreement or instrument entered into under the Plan or document ancillary to or in connection with this Plan, to determine eligibility for Awards and to adopt such rules, regulations, forms, instruments, and guidelines for administering this Plan.  Such authority shall include, but not be limited to, selecting Award recipients, establishing all terms and conditions (including the terms and conditions set forth in Agreements), granting Awards as an alternative to or as the form of payment for grants or rights earned or due under compensation plans or arrangements of the Company, construing any provision of the Plan or any Agreement, and, subject to Article 17, adopting modifications and amendments to this Plan or any Agreement, including without limitation, accelerating the vesting of any Award or extending the post-termination exercise period of an Award (subject to the limitations of Code Section 409A), or any other modifications or amendments that are necessary to comply with the law of the countries and other jurisdictions in which the Company, its Affiliates and/or its Subsidiaries operate.  The Committee may employ attorneys, consultants, accountants, agents, and other individuals, any of whom may be an Employee, and the Committee, the Company, and its officers and Directors shall be entitled to rely upon the advice, opinions, or valuations of any such individuals.  All expenses of administering this Plan shall be borne by the Company.  For any Award and Participant subject to the Worker Economic Opportunity Act (“Act”) because the Participant is a “non-exempt” employee for purposes of the Fair Labor Standards Act of 1938 (“FLSA”), the Committee shall establish the terms and conditions intended to comply with the Act or the Committee shall determine that an Award shall be made without regard to the Act.

 

Notwithstanding the foregoing, members of the Board or the Committee who are either eligible for Awards or have been granted Awards may vote on any and all matters, including matters affecting the administration of the Plan or the grant of Awards pursuant to the Plan.  However, no such member shall act upon the granting of a specific Award to himself or herself, but any such member may be counted in determining the existence of a quorum at any meeting of the Board or the Committee during which action is taken with respect to the granting of an Award to him or her.

 

3.3 Delegation.  The Committee may delegate to one or more of its members or to one or more officers of the Company, and/or its Subsidiaries and Affiliates or to one or more agents or advisors such administrative duties or powers as it may deem advisable, and the Committee or any individuals to whom it has delegated duties or powers as aforesaid may employ one or more individuals to render advice with respect to any responsibility the Committee or such individuals may have under this Plan.  The Committee may, by resolution, authorize one or more officers of the Company to do the following on the same basis as can the Committee: (a) designate Employees or Third-Party Service Providers to be recipients of Awards; and/or (b) determine the size of any such Awards; provided, however, (i) the Committee shall not delegate such responsibilities to any such officer for Awards granted to an Employee who is considered an Insider; (ii) the resolution providing such authorization sets forth the total number of Awards such officer(s) may grant; and (iii) the officer(s) shall report periodically to the Committee regarding the nature and scope of the Awards granted pursuant to the authority delegated.

 

3.4 Decisions Binding.  All determinations and decisions made by the Committee pursuant to the provision of the Plan and all related orders and resolutions of the Board shall be final, conclusive and binding on all Persons, including the Company, the shareholders, Participants and their estates and beneficiaries.

 

3.5 Employees in Foreign Countries.  The Committee shall have the authority to adopt such modifications, procedures, appendices and sub plans as may be necessary or desirable to comply with provisions of the laws of foreign countries in which the Company or any Subsidiary may operate to assure the viability of the benefits from Awards granted to Employees employed in such countries and to meet the objectives of the Plan.

 

 

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ARTICLE 4.  SHARES SUBJECT TO THE PLAN

 

4.1 Number of Shares.  Subject to adjustment as provided in Section 4.2, the total number of Shares available for grant of Awards under the Plan shall be increased on April 1 of each year, starting and including April 1, 2018, by a number of shares equal to fifteen percent (15%) of the number of Shares outstanding on such date less 28,272,667 shares; provided, however, that any such increase shall be made only to the extent that the Company has sufficient authorized and unreserved stock for such purpose.  Such increase shall be made each April 1, regardless of the number of shares of Stock remaining available for issuance under the Plan on such date.  The Shares may, in the discretion of the Company, be either authorized but unissued Shares or Shares held as treasury shares, including Shares purchased by the Company, whether on the market or otherwise.

 

4.2 Share Usage.  The Shares available for issuance under this Plan may be authorized and unissued Shares, treasury Shares or Shares available on the open market.  For purposes of determining the number of Shares available for grants subject to Awards, the following shall apply:

 

	
(a)  

	
The grant of an Award shall reduce the Shares available for grant under the Plan by the number of Shares subject to the Award.

 

	
(b)  

	
While an Award is outstanding, Shares subject to the Award shall be counted against the authorized pool of Shares, regardless of vested status.

 

	
(c)  

	
Any Shares related to Awards which terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such Shares, are settled in cash in lieu of Shares, or are exchanged with the Committee’s permission, prior to the issuance of Shares, for Awards not involving Shares, shall be available again for grant under this Plan.

 

	
(d)  

	
If the Option Price of any Option granted under this Plan is satisfied by tendering Shares to the Company (by either actual delivery or by attestation and subject to Section 6.7), or if a SAR is exercised, only the number of Shares issued, net of the Shares tendered, if any, will be delivered for purposes of determining the maximum number of Shares available for delivery under this Plan.

 

4.3 Annual Award Limits.  Unless and until the Committee determines that an Award to a Covered Employee shall not be designed to qualify as Performance-Based Compensation, the following limits (each an “Annual Award Limit” and, collectively, “Annual Award Limits”) shall apply to grants of such Awards under this Plan:

 

	
(a)  

	
Options.  The maximum aggregate number of Shares subject to Options granted in any one Plan Year to any one Participant shall be three million (3,000,000) as adjusted pursuant to Sections 4.4 and/or 17.2.

 

	
(b)  

	
SARs.  The maximum number of Shares subject to Stock Appreciation Rights granted in any one Plan Year to any one Participant shall be three million (3,000,000), as adjusted pursuant to Sections 4.4 and/or 17.2.

 

 

8

 

 

	
(c)  

	
Restricted Stock Units or Restricted Stock.  The maximum aggregate grant with respect to Awards of Restricted Stock Units or Restricted Stock that a Participant may receive in any one Plan Year shall be three million (3,000,000) Shares, as adjusted pursuant to Sections 4.4 and/or 17.2, or equal to the value of three million (3,000,000) Shares, as adjusted pursuant to Sections 4.4 and/or 17.2.

 

	
(d)  

	
Performance Units or Performance Shares.  The maximum aggregate Award of Performance Units or Performance Shares that a Participant may receive in any one Plan Year shall be three million (3,000,000) Shares, as adjusted pursuant to Sections 4.4 and/or 17.2, or equal to the value of three million (3,000,000) Shares, as adjusted pursuant to Sections 4.4 and/or 17.2, determined as of the date of vesting or payout, as applicable.

 

	
(e)  

	
Cash-Based Awards.  The maximum aggregate amount awarded or credited with respect to Cash-Based Awards to any one Participant in any one Plan Year may not exceed the greater of the value of eighteen million dollars ($18,000,000) or three million (3,000,000) Shares, as adjusted pursuant to Sections 4.4 and/or 17.2, determined as of the date of vesting or payout, as applicable.

 

	
(f)  

	
Other Stock-Based Awards.  The maximum aggregate grant with respect to Other Stock-Based Awards pursuant to Section 10.2  in any one Plan Year to any one Participant shall be three million (3,000,000) Shares, as adjusted pursuant to Sections 4.4 and/or 17.2.

 

4.4 Adjustments in Authorized Shares.  In the event of any corporate event or transaction (including, but not limited to, a change in the authorized number of Shares of the Company or the capitalization of the Company) such as an amalgamation, a merger, consolidation, reorganization, recapitalization, separation, partial or complete liquidation, stock dividend, stock split, reverse stock split, split up, spin-off, division, consolidation or other distribution of stock or property of the Company, combination of Shares, exchange of Shares, dividend in kind, or other like change in capital structure, number of issued Shares or distribution (other than normal cash dividends) to shareholders of the Company, or any similar corporate event or transaction, the number and kind of Shares that may be issued under this Plan or under particular forms of Awards, the number and kind of Shares subject to outstanding Awards, the Option Price or Grant Price applicable to outstanding Awards, the Annual Award Limits, and other value determinations applicable to outstanding Awards shall be adjusted to prevent dilution or enlargement of Participants’ rights under this Plan, shall substitute or adjust, as applicable, the number of such Shares.

 

The Committee, in its sole discretion, may also make appropriate adjustments in the terms of any Awards under this Plan to reflect, or related to, such changes or distributions and to modify any other terms of outstanding Awards, including modifications of performance goals and changes in the length of Performance Periods.  The determination of the Committee as to such adjustment, if any, shall be conclusive and binding on Participants under this Plan.

 

 

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Subject to the provisions of Article 17 and notwithstanding anything else herein to the contrary, without affecting the number of Shares reserved or available hereunder, the Committee may authorize the issuance or assumption of benefits under this Plan in connection with any amalgamation, merger, consolidation, acquisition of property or stock, or reorganization upon such terms and conditions as it may deem appropriate (including, but not limited to, a conversion of equity awards into Awards under this Plan in a manner consistent with paragraph 53 of FASB Interpretation No. 44 or subsequent accounting guidance), subject to compliance with the rules under Code Sections 422 and 424, as and where applicable.  The Committee shall provide to Participants reasonable written notice (which may include, without limit, notice by electronic means) within a reasonable time of any such determinations it makes.

 

ARTICLE 5.  ELIGIBILITY AND PARTICIPATION

 

5.1 Eligibility.  Any Director, Employee, or Third-Party Service Provider to the Company or any Parent, Subsidiary, or Affiliate shall be eligible to receive an Award under the Plan.  In determining the individuals to whom such an Award shall be granted and the number of Shares which may be granted pursuant to that Award, the Committee may take into account the duties of the respective individual, his or her present and potential contributions to the success of the Company or a Parent, Subsidiary, or Affiliate, and such other factors as the Committee shall deem relevant in connection with accomplishing the purposes of the Plan.

 

5.2 Leaves of Absence. Notwithstanding any other provision of the Plan to the contrary, for purposes of determining Awards granted hereunder, a Participant shall not be deemed to have incurred a termination of employment if such Participant is placed on military or sick leave or such other leave of absence which is considered as continuing intact the employment relationship with the Company, any Parent, any Subsidiary, or any Affiliate.  In such a case, the employment relationship shall be deemed to continue until the date when a Participant’s right to reemployment shall no longer be guaranteed either by law or contract.

 

5.3 Transfer of Service.  Notwithstanding any other provision of the Plan to the contrary, for purposes of determining Awards granted hereunder, a Participant shall not be deemed to have incurred a termination of employment if the Participant’s status as an Employee, Director, or Third-Party Service Provider terminates and the Participant is then, or immediately thereafter becomes, an eligible individual due to another status or relationship with the Company, any Parent, any Subsidiary, or any Affiliate.

 

ARTICLE 6.  STOCK OPTIONS

 

6.1 Grant of Options.  Subject to the terms and provisions of the Plan, Options may be granted to Employees, Directors and/or Third-Party Service Providers at any time and from time to time as shall be determined by the Committee.  The Committee shall have sole discretion in determining the number of Shares subject to Options granted to each Participant.  No Participant may be granted ISOs (under the Plan and all other incentive stock option plans of the Company and any Parent or Subsidiary) which are first exercisable in any calendar year for Common Stock having an aggregate Fair Market Value (determined as of the date an Option is granted) that exceeds One Hundred Thousand Dollars ($100,000).  The preceding annual limit shall not apply to NQSOs.  The Committee may grant a Participant ISOs, NQSOs or a combination thereof, and may vary such Awards among Participants; provided that only an Employee may be granted ISOs. The maximum aggregate number of shares of Stock subject to ISOs issued under the Plan shall not exceed ten million (10,000,000) shares.

 

 

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6.2 Agreement.  Each Option grant shall be evidenced by an Agreement that shall specify the Option Price, the duration of the Option, the number of Shares to which the Option pertains and such other provisions as the Committee shall determine.  The Option Agreement shall further specify whether the Award is intended to be an ISO or an NQSO.  Any portion of an Option that is not designated as an ISO or otherwise fails or is not qualified as an ISO (even if designated as an ISO) shall be a NQSO.  The Committee may provide in the Option Agreement for transfer restrictions, repurchase rights, vesting requirements and other limitations on the Shares to be issued pursuant to the exercise of an Option.

 

6.3 Option Price.  The Option Price for each grant of an Option under this Plan shall be determined by the Committee in its sole discretion and shall be specified in the Agreement; provided, however, the Option Price must be at least equal to one hundred percent (100%) of the Fair Market Value of a Share on the date the Option is granted.  In no event, however, shall any Participant who owns (within the meaning of Section 424(d) of the Code) stock of the Company possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company, any Parent, any Subsidiary, or any Affiliate be eligible to receive an ISO at an Option Price less than one hundred ten percent (110%) of the Fair Market Value of a share on the date the ISO is granted.  The Option Price for any Option may be greater than the Fair Market Value of a Share on the date the Option is granted.

 

6.4 Duration of Options.  Each Option shall expire at such time as the Board shall determine at the time of grant; provided, however, that no Option shall be exercisable later than the tenth (10th) anniversary date of its grant; provided, further, however, that any ISO granted to any Participant who at such time owns (within the meaning of Section 424(d) of the Code) stock of the Company possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company, shall not be exercisable later than the fifth (5th) anniversary date of its grant.

 

6.5 Termination of Options.  Each Option granted under the Plan to any Optionee shall expire no later than ninety (90) days from the date the Optionee terminates employment or services with the Company, unless earlier terminated pursuant to Section 6.4.  However, the Committee may provide in each Participant’s Agreement the extent to which the Participant shall have the right to exercise the Option following termination of the Participant’s employment or services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be, subject to Sections 5.2 and 5.3.  The Committee shall determine any such provisions in its sole discretion, which provisions need not be uniform among all Options issued pursuant to this Article 6, and may reflect distinctions based on, among other things, the reasons for termination, or reasons relating to breach or threatened breach of restrictive covenants to which the Participant is subject, if any.

 

6.6 Exercise of Options.  Options granted under the Plan shall be exercisable at such times and be subject to such restrictions and conditions as set forth in each Agreement, including conditions related to the employment of or provision of services by the Participant with the Company or any Parent, Subsidiary or other entity, which need not be the same for each grant or for each Participant.  Each Option shall be exercisable for such number of Shares and at such time or times, including periodic installments, as set forth in each Agreement at the time of the grant.  Each Agreement may establish a minimum number of Shares (e.g., 100) for which an Option may be exercised at a particular time and may provide for an automatic accelerated vesting and other rights upon the occurrence of certain events as specified in the Agreement.  In addition, in order to exercise any ISOs granted under this Article 6, the Participant must be an Employee of the Company, any Subsidiary, or any Affiliate from the Grant Date until at least three months before the date the ISO is exercised.  Except as otherwise provided in the Agreement and Article 15, the right to purchase Shares that is exercisable in periodic installments shall be cumulative so that when the right to purchase any Shares has accrued, such Shares or any part thereof may be purchased at any time thereafter until the expiration or termination of the Option.

 

 

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6.7 Payment.  Options shall be exercised by the delivery of a written notice of exercise to the Company or an agent designated by the Company in a form specified or accepted by the Committee, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares.  The Option Price upon exercise of any Option shall be payable to the Company in full under any of the following methods as determined by the Committee, in its discretion:  (a) in cash, (b) cash equivalent approved by the Committee, (c) if approved by the Committee, by tendering previously acquired Shares (or delivering a certification of ownership of such Shares) having an aggregate Fair Market Value at the time of exercise equal to the total Option Price, provided that the Company may refuse any such tender if the Committee, in its sole discretion, determines that such tender will cause adverse consequences under federal securities laws or applicable accounting standards, (d) by a cashless (broker-assisted) exercise as permitted under Federal Reserve Board’s Regulation T, subject to applicable securities law restrictions; or (e) by a combination of (a), (b), (c), and/or (d); or (f) any other method approved or accepted by the Committee in its sole discretion.

 

Subject to any governing rules or regulations, as soon as practicable after receipt of a written notification of exercise and full payment of an Option, the Company shall deliver to the Participant evidence of book entry Shares, or upon the Participant’s request, Share certificates in an appropriate amount based upon the number of Shares purchased under the Option(s), and may place appropriate legends on the certificates representing such Shares.

 

Unless otherwise determined by the Committee, all payments under all methods indicated above shall be paid in United States dollars.

 

6.8 Restrictions on Share Transferability.  The Committee may impose such restrictions on any Shares acquired pursuant to the exercise of an Option granted under this Article 6 as it may deem advisable, including, without limitation, minimum holding period requirements, restrictions under applicable federal securities laws, under the requirements of any stock exchange or market upon which such Shares are then listed and/or traded, or under any blue sky or state securities laws applicable to such Shares.

 

6.9 Limited Transferability.  If permitted in the Agreement, a Participant may transfer an Option granted hereunder, including but not limited to transfers to members of his or her Immediate Family (as defined below), to one or more trusts for the benefit of such Immediate Family members, or to one or more partnerships where such Immediate Family members are the only partners, if (a) the Participant does not receive any consideration in any form whatsoever for such transfer, (b) such transfer is permitted under applicable tax laws, and (c) if the Participant is an Insider, such transfer is permitted under Rule 16b-3 of the Exchange Act, or its successor provisions as in effect from time to time.  Any Option so transferred shall continue to be subject to the same terms and conditions in the hands of the transferee as were applicable to said Option immediately prior to the transfer thereof.  Any reference in any such Agreement to the employment by or performance of services for the Company by the Participant shall continue to refer to the employment of, or performance by, the transferring Participant.  For purposes hereof, “Immediate Family” shall mean the Participant and the Participant’s spouse, children and grandchildren and any other member of the Participant’s family approved by the Committee.  Any Option that is granted pursuant to any Agreement that did not initially expressly allow the transfer of said Option and that has not been amended to expressly permit such transfer, shall not be transferable by the Participant other than by will or by the laws of descent and distribution and such Option thus shall be exercisable in the Participant’s lifetime only by the Participant.

 

 

12

 

 

6.10 Notification of Disqualifying Disposition.  If any Participant shall make any disposition of Shares issued pursuant to the exercise of an ISO under the circumstances described in Code Section 421(b) (relating to certain disqualifying dispositions), such Participant shall notify the Company of such disposition within ten (10) calendar days thereof.

 

ARTICLE 7.  STOCK APPRECIATION RIGHTS

 

7.1 Grant of SARs.  Subject to the terms and conditions of this Plan (including, if applicable, any Appendix), SARs may be granted to Employees, Directors and/or Third-Party Service Providers at any time and from time to time as shall be determined by the Committee.  The Committee may grant Non-Tandem SARs, Tandem SARs, or any combination of these forms of SARs.

 

Subject to the terms and conditions of this Plan, the Committee shall have complete discretion in determining the number of SARs granted to each Participant and, consistent with the provisions of this Plan, in determining the terms and conditions pertaining to such SARs.

 

The Grant Price for each grant of a SAR shall be determined by the Committee and shall be specified in the Agreement.  Notwithstanding the foregoing, the Grant Price of a Non-Tandem SAR on the Grant Date shall be at least equal to one hundred percent (100%) of the FMV of the Shares as determined on the Grant Date.  The Grant Price of a Tandem SAR on the Grant Date shall equal the Option Price of the related Option.

 

7.2 SAR Agreement.  Each SAR Award shall be evidenced by an Agreement that shall specify the Grant Price, the term of the SAR, and such other provisions as the Committee shall determine.

 

7.3 Term of SAR.  The term of a SAR granted under this Plan shall be determined by the Committee, in its sole discretion, and except as determined otherwise by the Committee and specified in the SAR Agreement, no SAR shall be exercisable later than the tenth (10th) anniversary of the Grant Date.  Notwithstanding the foregoing, for SARs granted to Participants outside the United States, the Committee has the authority to grant SARs that have a term greater than ten (10) years.

 

 

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7.4 Exercise of Tandem SARS.  Tandem SARs may be exercised for all or part of the Shares subject to the related Option upon the surrender of the right to exercise the equivalent portion of the related Option.  A Tandem SAR may be exercised only with respect to the Shares for which its related Option is then exercisable.  Notwithstanding the foregoing, with respect to a Tandem SAR granted in connection with an ISO: (i) the Tandem SAR shall expire no later than the expiration of the underlying ISO; (ii) the value of the payout with respect to the Tandem SAR may be for no more than one hundred percent (100%) of the difference between the Option Price of the underlying ISO and the Fair Market Value of the Shares subject to the underlying ISO at the time the Tandem SAR is exercised; and (iii) the Tandem SAR may be exercised only when the Fair Market Value of the Shares covered by the ISO exceeds the Option Price of the ISO.

 

7.5 Exercise of Non-Tandem SARs.  SARs may be exercised upon whatever terms and conditions the Committee, in its sole discretion, imposes.

 

7.6 Settlement of SARs.  Upon the exercise of a SAR, a Participant shall be entitled to receive payment from the Company in an amount determined by multiplying:

 

	
(a)  

	
The excess of the Fair Market Value of a Share on the date of exercise over the Grant Price; by

 

	
(b)  

	
The number of Shares with respect to which the SAR is exercised.

 

At the discretion of the Committee, the payment upon SAR exercise may be in cash, fully paid Shares, or any combination thereof, or in any other manner approved by the Committee in its sole discretion.  The Committee’s determination regarding the form of SAR payout shall be set forth in the Agreement pertaining to the grant of the SAR.

 

7.7 Termination of Employment, Service as a Director or Third-Party Service Provider.  Each Agreement shall set forth the extent to which the Participant shall have the right to exercise the SAR following termination of the Participant’s employment with or services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be, subject to Sections 5.2 and 5.3.  Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Agreement entered into with Participants, need not be uniform among all SARs issued pursuant to this Plan, and may reflect distinctions based on, among other things, the reasons for termination, or reasons relating to breach or threatened breach of restrictive covenants to which the Participant is subject, if any.

 

7.8 Other Restrictions.  The Committee shall impose such other conditions and/or restrictions on any Shares received upon exercise of a SAR granted pursuant to this Plan as it may deem advisable or desirable.  These restrictions may include, but shall not be limited to, a requirement that the Participant hold the Shares received upon exercise of a SAR for a specified period of time.

 

 

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ARTICLE 8.  RESTRICTED STOCK AND RESTRICTED STOCK UNITS

 

8.1 Grant of Restricted Stock/Restricted Stock Units.  Subject to the terms and provisions of this Plan, the Committee may from time to time in its discretion grant Restricted Stock and/or Restricted Stock Units to Employees, Directors and/or Third-Party Service Providers in such amounts as the Committee shall determine.

 

8.2 Restricted Stock/Restricted Stock Unit Agreement.  Each grant of Restricted Stock or Restricted Stock Units shall be evidenced by an Agreement that shall specify the Period(s) of Restriction, the number of Shares of Restricted Stock or the number of Restricted Stock Units granted, and such other provisions as the Committee shall determine.  To the extent a Restricted Stock Unit Award constitutes “deferred compensation” within the meaning of Code Section 409A, the Committee shall establish Agreement terms and provisions which comply with Code Section 409A and regulations thereunder.

 

8.3 Other Restrictions.  At the time a grant of Restricted Stock and/or Restricted Stock Units is made, the Committee shall impose such other conditions and/or restrictions on any Shares of Restricted Stock or Restricted Stock Units granted pursuant to this Plan as it may deem advisable including, without limitation, a requirement that Participants pay a stipulated purchase price for each Share of Restricted Stock (which price shall not be less than par value of such Share) or each Restricted Stock Unit, restrictions based upon the achievement of specific performance goals, time-based restrictions on vesting following the attainment of the performance goals, time-based restrictions, and/or restrictions under Applicable Laws or under the requirements of any stock exchange or market upon which such Shares are listed or traded, or holding requirements or sale restrictions placed on the Shares by the Company upon vesting of such Restricted Stock or Restricted Stock Units.

 

Upon a grant of Restricted Stock, a stock certificate (or certificates) representing the number of Shares of Restricted Stock granted to the Participant shall be registered in the Participant’s name and, to the extent deemed appropriate by the Committee, may either be (i) held in custody by the Company or a bank selected by the Committee for the Participant’s account, or (ii) retained by the Company in the Company’s possession until such time as all condition and/or restrictions applicable to such Shares have been satisfied or lapse.

 

8.4 Certificate Legend.  In addition to any legends placed on certificates pursuant to Section 8.3, each certificate representing Shares of Restricted Stock granted pursuant to this Plan may bear a legend such as the following or as otherwise determined by the Committee in its sole discretion:

 

The sale or transfer of the common shares of India Globalization Capital, Inc. represented by this certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer as set forth in the India Globalization Capital, Inc. Omnibus Incentive Plan, and in the associated Agreement.  A copy of this Plan and such Agreement will be provided by India Globalization Capital, Inc., without charge, within ten (10) business days after receipt of a written request therefore.

 

 

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8.5 Rights of Holder; Limitations Thereon.  A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder.  Upon a grant of Restricted Stock and following registration of the Restricted Stock Shares in the Participant’s name, the Participant shall have the rights and privileges of a shareholder as to such Restricted Stock, including the right to receive dividends, if and when declared, and to vote such Restricted Stock, except that the right to receive cash dividends shall be the right to receive such dividends either in cash currently or by payment in Restricted Stock, as the Board shall determine, and except further that, the following restrictions shall apply:

 

	
(a)  

	
The Participant shall not be entitled to delivery of a certificate until the expiration or termination of the Period of Restriction for the Shares represented by such certificate and the satisfaction of any and all other conditions prescribed in the Agreement or by the Committee or Board;

 

	
(b)  

	
None of the Shares of Restricted Stock may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the Period of Restriction and until the satisfaction of any and all other conditions prescribed in the Agreement or by the Committee or Board (including satisfaction of any applicable tax withholding obligations); and

 

	
(c)  

	
All of the Shares of Restricted Stock that have not vested shall be forfeited and all rights of the Participant to such Shares of Restricted Stock shall terminate without further obligation on the part of the Company, unless the Participant has remained an employee of (or Director of or active Third-Party Service Provider providing services to) the Company or any of its Subsidiaries, until the expiration or termination of the Period of Restriction and the satisfaction of any and all other conditions prescribed in the Agreement or by the Committee or Board applicable to such Shares of Restricted Stock.  Upon the forfeiture of any Shares of Restricted Stock, such forfeited Shares shall be transferred to the Company without further action by the Participant and shall, in accordance with Section 4.2, again be available for grant under the Plan.  If the Participant paid any amount for the Shares of Restricted Stock that are forfeited, the Company shall pay the Participant the lesser of the Fair Market Value of the Shares on the date they are forfeited or the amount paid by the Participant.

 

With respect to any Shares received as a result of adjustments under Section 4.2 hereof and any Shares received with respect to cash dividends declared on Restricted Stock, the Participant shall have the same rights and privileges, and be subject to the same restrictions, as are set forth in this Article 8.

 

8.6 Lapse of Restrictions.  Except as otherwise provided in this Article 8, Shares of Restricted Stock covered by each Restricted Stock Award shall become freely transferable by the Participant after all conditions and restrictions applicable to such Shares have been satisfied or lapse (including satisfaction of any applicable tax withholding obligations as set out in Article 14).  Restricted Stock Units shall be paid in cash, Shares or a combination of cash and Shares as the Committee, in its sole discretion shall determine.

 

 

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Notwithstanding any provision in the Plan or any Agreement to the contrary, to the extent an Award (i) constitutes “deferred compensation” within the meaning of Code Section 409A, (ii) is not exempt from the application of Code Section 409A and (iii) is payable to a specified employee (as determined in accordance with Code Section 409A(a)(2)(B) and applicable regulations) due to separation from service (as such term is defined under Code Section 409A), payment shall be delayed for a minimum of six (6) months from the date of separation from service.

 

8.7 Termination of Employment, Service as a Director or Third-Party Service Provider.  Each Agreement shall set forth the extent to which the restrictions placed on Restricted Stock and/or Restricted Stock Units shall lapse following termination of the Participant’s employment with or services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be, subject to Sections 5.2 and 5.3  Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Agreement entered into with each Participant, need not be uniform among all Shares of Restricted Stock or Restricted Stock Units issued pursuant to this Plan, and may reflect distinctions based on, among other things, the reasons for termination, or reasons relating to breach or threatened breach of restrictive covenants to which the Participant is subject, if any.

 

8.8 Nonassignability.  Unless otherwise provided in the Agreement, no grant of, nor any right or interest of a Participant in or to, any Restricted Stock, or in any instrument evidencing any grant of Restricted Stock under the Plan, may be assigned, encumbered or transferred except, in the event of the death of a Participant, by will or the laws of descent and distribution.

 

8.9 Section 83(b) Election.  The Committee may provide in an Agreement that the Award of Restricted Stock is conditioned upon the Participant making or refraining from making an election with respect to the Award under Code Section 83(b).  If a Participant makes an election pursuant to Code Section 83(b) concerning a Restricted Stock Award, the Participant shall be required to file promptly a copy of such election with the Company.

 

ARTICLE 9.  PERFORMANCE UNITS/PERFORMANCE SHARES

 

9.1 Grant of Performance Units/Performance Shares.  Subject to the terms and provisions of this Plan, the Committee, at any time and from time to time, may grant Performance Units and/or Performance Shares to Employees, Directors and/or Third-Party Service Providers in such amounts and upon such terms as the Committee shall determine.

 

9.2 Performance Unit/Performance Shares Agreement.  Each Performance Unit and/or Performance Share grant shall be evidenced by an Agreement that shall specify the number of Performance Shares or the number of Performance Units granted, the applicable Performance Period, and such other terms and provisions as the Committee shall determine.  To the extent an Award constitutes “deferred compensation” within the meaning of Code Section 409A, the Committee shall establish Agreement terms and provisions which comply with Code Section 409A and regulations thereunder.

 

 

17

 

 

9.3 Value of Performance Units/Performance Shares.  Each Performance Unit shall have an initial value that is established by the Committee at the time of grant.  Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the Grant Date.  The Committee shall set performance goals in its discretion which, depending on the extent to which they are met, will determine the value and/or number of Performance Units/Performance Shares that will be paid out to the Participant.

 

9.4 Earning of Performance Units/Performance Shares.  Subject to the terms of this Plan, after the applicable Performance Period has ended, the holder of Performance Units/Performance Shares shall be entitled to receive payout on the value and number of Performance Units/Performance Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance goals have been achieved.

 

9.5 Form and Timing of Payment of Performance Units/Performance Shares.  Payment of earned Performance Units/Performance Shares shall be as determined by the Committee and as evidenced in the Agreement.  Subject to the terms of this Plan, the Committee, in its sole discretion, may pay earned Performance Units/Performance Shares in the form of cash or in fully paid Shares (or in a combination thereof) equal to the value of the earned Performance Units/Performance Shares at the close of the applicable Performance Period, or as soon as practicable after the end of the Performance Period.  Any Shares may be granted subject to any restrictions deemed appropriate by the Committee.  The determination of the Committee with respect to the form of payout of such Awards shall be set forth in the Agreement pertaining to the grant of the Award.

 

Notwithstanding any provision in the Plan or any Agreement to the contrary, to the extent an Award (i) constitutes “deferred compensation” within the meaning of Code Section 409A, (ii) is not exempt from the application of Code Section 409A and (iii) is payable to a specified employee (as determined in accordance with Code Section 409A(a)(2)(B) and applicable regulations) due to separation from service (as such term is defined under Code Section 409A), payment shall be delayed for a minimum of six (6) months from the date of separation from service.

 

9.6 Termination of Employment, Service as a Director or Third-Party Service Provider.  Each Agreement shall set forth the extent to which the Participant shall have the right to receive payment for any Performance Units and/or Performance Shares following termination of the Participant’s employment with or services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be, subject to Sections 5.2 and 5.3.  Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Agreement entered into with each Participant, need not be uniform among all Awards of Performance Units or Performance Shares issued pursuant to this Plan, and may reflect distinctions based on, among other things, the reasons for termination, or reasons relating to the breach or threatened breach of restrictive covenants to which the Participant is subject, if any.

 

 

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ARTICLE 10.  CASH-BASED AWARDS AND OTHER STOCK-BASED AWARDS

 

10.1 Grant of Cash-Based Awards.  Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Cash-Based Awards to Employees, Directors and/or Third-Party Service Providers in such amounts and upon such terms as the Committee may determine.

 

10.2 Other Stock-Based Awards.  The Committee may grant other types of equity-based or equity-related Awards not otherwise described by the terms of this Plan (including the grant or offer for sale of unrestricted Shares) in such amounts and subject to such terms and conditions, as the Committee shall determine.  Such Awards may involve the transfer of actual fully paid Shares to Participants, or payment in cash or otherwise of amounts based on the value of Shares and may include, without limitation, Awards designed to comply with or take advantage of the applicable local laws of jurisdictions other than the United States.

 

10.3 Cash-Based or Other Stock-Based Award Agreement.  Each Cash-Based Award or Other Stock-Based Award grant shall be evidenced by an Agreement that shall specify the amount of the Cash-Based Award or Other Stock-Based Award granted and such other terms and provisions as the Committee shall determine; provided that no Agreement shall provide for the issuance of Shares except on a fully paid basis.  To the extent an Award constitutes “deferred compensation” within the meaning of Code Section 409A, the Committee shall establish Agreement terms and provisions which comply with Code Section 409A and regulations thereunder.

 

10.4 Value of Cash-Based and Other Stock-Based Awards.  Each Cash-Based Award shall specify a payment amount or payment range as determined by the Committee.  Each Other Stock-Based Award shall be expressed in terms of Shares or units based on Shares, as determined by the Committee.  The Committee may establish performance goals in its discretion.  If the Committee exercises its discretion to establish performance goals, the number and/or value of Cash-Based Awards or Other Stock-Based Awards that will be paid out to the Participant will depend on the extent to which the performance goals are met, and provided the cash or services received by the Company in exchange for Shares shall have a value not less than the aggregate par value of any Shares issued as part of such Other Stock-Based Award.

 

10.5 Payment of Cash-Based Awards and Other Stock-Based Awards.  Payment, if any, with respect to a Cash-Based Award or an Other Stock-Based Award shall be made in accordance with the terms of the Award, in cash or fully paid Shares as the Committee determines.  Notwithstanding any provision in the Plan or any Agreement to the contrary, to the extent an Award (i) constitutes “deferred compensation” within the meaning of Code Section 409A, (ii) is not exempt from the application of Code Section 409A and (iii) is payable to a specified employee (as determined in accordance with Code Section 409A(a)(2)(B) and applicable regulations) due to separation from service (as such term is defined under Code Section 409A), payment shall be delayed for a minimum of six (6) months from the date of separation from service.

 

10.6 Termination of Employment, Service as a Director or Third-Party Service Provider.  The Committee shall determine the extent to which the Participant shall have the right to receive Cash-Based Awards or Other Stock-Based Awards following termination of the Participant’s employment with or provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be, subject to Sections 5.2 and 5.3.  Such provisions shall be determined in the sole discretion of the Committee, such provisions may be included in an agreement entered into with each Participant, but need not be uniform among all Awards of Cash-Based Awards or Other Stock-Based Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination, or reasons relating to the breach or threatened breach of restrictive covenants to which the Participant is subject, if any.

 

 

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ARTICLE 11.  PERFORMANCE MEASURES

 

11.1 Performance Measures.  The performance goals upon which the payment or vesting of an Award to a Covered Employee that is intended to qualify as Performance-Based Compensation shall be limited to the following Performance Measures:

 

	
(a)  

	
Net earnings or net income (before or after taxes);

	
(b)  

	
Earnings per share (basic or fully diluted);

	
(c)  

	
Net sales or revenue growth;

	
(d)  

	
Net operating profit;

	
(e)  

	
Return measures (including, but not limited to, return on assets, capital, invested capital, equity, sales, or revenue);

	
(f)  

	
Cash flow (including, but not limited to, operating cash flow, free cash flow, cash flow return on equity, and cash flow return on investment);

	
(g)  

	
Earnings before or after taxes, interest, depreciation, and/or amortization;

	
(h)  

	
Gross or operating margins;

	
(i)  

	
Productivity ratios;

	
(j)  

	
Share price (including, but not limited to, growth measures and total shareholder return);

	
(k)  

	
Expense targets;

	
(l)  

	
Leverage targets (including, but not limited to, absolute amount of consolidated debt, EBITDA/consolidated debt ratios and/or debt to equity ratios);

	
(m)  

	
Credit rating targets;

	
(n)  

	
Margins;

	
(o)  

	
Operating efficiency;

	
(p)  

	
Market share;

	
(q)  

	
Developing new products and lines of revenue;

	
(r)  

	
Reducing operating expenses;

	
(s)  

	
Developing new markets;

	
(t)  

	
Meeting completion schedules;

	
(u)  

	
Developing and managing relationships with regulatory and other governmental agencies;

	
(v)  

	
Managing cash;

	
(w)  

	
Managing claims against the Company, including litigation; and

	
(x)  

	
Identifying and completing strategic acquisitions

 

 

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Any Performance Measure(s) may be used to measure the performance of the Company, any Subsidiary, or an Affiliate as a whole or any business unit of the Company, any Subsidiary, or an Affiliate or any combination thereof, as the Committee may deem appropriate, or any of the above Performance Measures as compared to the performance of a group of comparator companies, or published or special index that the Committee, in its sole discretion, deems appropriate, or the Committee may select Performance Measure (j) above as compared to various stock market indices.  The Committee also has the authority to provide for accelerated vesting of any Award based on the achievement of performance goals pursuant to the Performance Measures specified in this Article 11.

 

Notwithstanding the foregoing, for each Award designed to qualify for the Performance-Based Exception, the Committee shall establish and set forth in the Award the applicable performance goals for that Award no later than the latest date that the Committee may establish such goals without jeopardizing the ability of the Award to qualify for the Performance-Based Exception and the Committee shall be satisfied that the attainment of such Performance Measure(s) shall represent value to the Company in an amount not less than the par value of any related Performance Shares.

 

11.2 Evaluation of Performance.  Subject to Section 11.3, the Committee may provide in any such Award that any evaluation of performance may include or exclude any of the following events that occurs during a Performance Period: (a) asset write-downs and other asset revaluations, (b) litigation or claim judgments or settlements, (c) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results, (d) any reorganization and restructuring programs, (e) extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30 and/or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to shareholders for the applicable year, (f) acquisitions or divestitures, (g) foreign exchange gains and losses, and (h) changes in material liability estimates.  To the extent such inclusions or exclusions affect Awards to Covered Employees, they shall be prescribed in a form that meets the requirements of Code Section 162(m) for deductibility.

 

11.3 Adjustment of Performance-Based Compensation.  The degree of payout and/or vesting of Awards designed to qualify for the Performance-Based Exception shall be determined based upon the written certification of the Committee as to the extent to which the performance goals and any other material terms and conditions precedent to such payment and/or vesting have been satisfied.  The Committee shall have the sole discretion to adjust the determinations of the value and degree of attainment of the pre-established performance goals; provided, however, that the performance goals applicable to Awards which are designed to qualify for the Performance-Based Exception, and which are held by Covered Employees, may not be adjusted so as to increase the payment under the Award (the Committee shall retain the sole discretion to adjust such performance goals upward, or to otherwise reduce the amount of the payment and/or vesting of the Award relative to the pre-established performance goals).

 

11.4 Committee Discretion.  In the event that applicable tax and/or securities laws change to permit Committee discretion to alter the governing Performance Measures without obtaining shareholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining shareholder approval.  In addition, in the event that the Committee determines that it is advisable to grant Awards that shall not qualify as Performance-Based Compensation, the Committee may make such grants without satisfying the requirements of Code Section 162(m) and base vesting on Performance Measures other than those set forth in Section 11.1.

 

 

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ARTICLE 12.  DIVIDEND EQUIVALENTS

 

Any Employees, Directors and/or Third-Party Service Providers selected by the Committee may be granted dividend equivalents based on the dividends declared on Shares that are subject to any Award, to be credited as of dividend payment dates, during the period between the date the Award is granted and the date the Award is exercised, vests or expires, as determined by the Committee.  Such dividend equivalents shall be converted to cash or additional Shares by such formula and at such time and subject to such limitations as may be determined by the Committee.

 

Notwithstanding the foregoing, if the grant of an Award to a Covered Employee is designed to comply with the requirements of the Performance-Based Exception, the Committee may apply any restrictions it deems appropriate to the payment of dividends declared with respect to such Award, such that the dividends and/or the Award maintain eligibility for the Performance-Based Exception.  With respect to Restricted Stock and/or Restricted Stock Units, in the event that any dividend constitutes a derivative security or an equity security pursuant to the rules under Section 16 of the Exchange Act, such dividend shall be subject to a vesting period equal to the remaining vesting period of the Shares of Restricted Stock and/or Restricted Stock Unit with respect to which the dividend is paid.

 

ARTICLE 13.  BENEFICIARY DESIGNATION

 

To the extent applicable, each Participant under the Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under the Plan is to be paid in case of his or her death before he or she receives any or all of such benefit.  Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Committee and shall be effective only when filed by the Participant, in writing, with the Committee or its delegate during the Participant’s lifetime.  In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate.  If required, the spouse of a married Participant domiciled in a community property jurisdiction shall join in any designation of a beneficiary or beneficiaries other than spouse.

 

ARTICLE 14.  RIGHTS OF PARTICIPANTS

 

14.1 Employment or Other Services.  Nothing in the Plan shall interfere with or limit in any way the right of the Company or a Parent, Subsidiary, or Affiliate to terminate any Participant’s employment by, or performance of services for, the Company or any Parent, Subsidiary, or Affiliate at any time, nor confer upon any Participant any right to continue in the employ or service of the Company or a Parent, Subsidiary, or Affiliate.  For purposes of the Plan, transfer of employment of a Participant between the Company and any one of its Affiliates (or between Affiliates) shall not be deemed a termination of employment.  Further, neither an Award nor any benefits arising under this Plan shall constitute an employment contract or other service contract with the Company, its Affiliates, and/or its Subsidiaries and, accordingly, subject to Articles 3 and 17, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Committee without giving rise to any liability on the part of the Company, its Affiliates, and/or its Subsidiaries.

 

 

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14.2 Participation.  No Employee shall have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future Award.

 

14.3 Rights as a Shareholder.  Except as otherwise provided herein, a Participant shall have none of the rights of a shareholder with respect to Shares covered by any Award until the Participant becomes the registered holder of such Shares.

 

ARTICLE 15.  CHANGE IN CONTROL AND OTHER REORGANIZATIONS

15.1 Adjustments to Awards Upon a Change in Control.  Upon a Change in Control (defined below), merger or other reorganization event, the Committee or Board may, in their sole discretion, take any one or more of the following actions pursuant to our Plan, as to some or all-outstanding Awards::

 

	
(a)  

	
provide that all outstanding Options shall be assumed or substituted by the successor corporation;

 

	
(b)  

	
in the event of a Change in Control or merger pursuant to which holders of the Company’s common stock will receive a cash payment for each share surrendered in the merger, make or provide for a cash payment to the Participants equal to the difference between the merger price times the number of shares of the Company’s common stock subject to such outstanding Options, and the aggregate Option Price of all such outstanding Options, in exchange for the termination of such Options;

 

	
(c)  

	
upon written notice to a Participant, (i) provide that the Participant’s unexercised Options or Awards will terminate immediately prior to the consummation of such transaction unless exercised by the Participant; or (ii) terminate all unexercised outstanding Options immediately prior to the consummation of such transaction unless exercised by the Participant;

 

	
(d)  

	
provide that all or any outstanding Options shall become exercisable in full immediately prior to such event; and

 

	
(e)  

	
provide that outstanding Awards shall be assumed or substituted by the successor corporation, become realizable or deliverable, or restrictions applicable to an Award will lapse, in whole or in part, prior to or upon the Change in Control, merger or other reorganization event, as the case may be.

 

 

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15.2 Definition.  For purposes of the Plan, a “Change in Control” means (i) the same definition for “Change in Control” set forth in any employment agreement between the Participant and the Company, Subsidiary and/or Affiliate in effect when the event(s) occur, or, (ii) in the absence of such an employment agreement, the occurrence of any of the following events:

 

	
(a)  

	
The closing of the sale of all or substantially all of Company’s assets as an entirety to any person or related group of persons other than an existing holder or existing holders of Company’s equity;

 

	
(b)  

	
The merger or consolidation of Company with or into another entity or the merger or consolidation of another entity with or into Company, in either case with the effect that immediately after such transaction the equity holders of Company immediately prior to such transaction hold less than a majority in interest of the total voting power of the outstanding voting interests of the entity surviving such merger or consolidation; or

 

	
(c)  

	
The closing of a transaction pursuant to which beneficial ownership of more than fifty percent (50%) of Company’s outstanding voting equity is transferred to any person or related group of persons other than an existing holder or existing holders of Company’s equity.

 

15.3 Provisions in Agreement.  Unless the Committee provides otherwise in an Award, the vesting of an Award shall accelerate 100% upon a Change in Control.  Notwithstanding the foregoing, to the extent an Award constitutes “deferred compensation” subject to Code Section 409A and provides for payment (in addition to vesting) upon a change in control, the Agreement shall define “change in control” pursuant to Treasury Regulation Section 1.409A-3(i)(5).

 

ARTICLE 16.  CANCELLATION OF AWARDS

 

16.1 Limitation or Cancellation of Award.  The Committee may provide in the Agreement that if a Participant engages in any Detrimental Activity, the Committee may, notwithstanding any other provision in this Plan to the contrary, cancel, rescind, suspend, withhold or otherwise restrict or limit any unexpired, unexercised or unpaid Award as of the first date the Participant engages in the Detrimental Activity, unless sooner terminated by operation of another term of this Plan or any other agreement.  Without limiting the generality of the foregoing, the Agreement may also provide that if the Participant exercises an Award hereunder at any time during the period beginning six months prior to the date the Participant first engages in Detrimental Activity and ending six months after the date the Participant ceases to engage in any Detrimental Activity, the Participant shall be required to pay to the Company the excess of the Fair Market Value of the Shares subject to the Award exercised over the total exercise price paid for such Shares.

 

16.2 Severability.  Should any provision of this Article 16 be held to be invalid or illegal, such illegality shall not invalidate the whole of this Article 16, but, rather, the Plan shall be construed as if it did not contain the illegal part or narrowed to permit its enforcement, and the rights and obligations of the parties shall be construed and enforced accordingly.

 

 

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ARTICLE 17.  AMENDMENT, MODIFICATION AND TERMINATION

 

17.1 Amendment, Modification and Termination.  The Committee may, at any time and from time to time, alter, amend, suspend or terminate the Plan and any Agreement in whole or in part; provided, that, unless approved by the holders of a majority of the total numbers of Shares of the Company represented and voted at a meeting at which a quorum is present, no amendment shall be made to the Plan if such amendment would (a) materially modify the eligibility requirements provided in Article 5; (b) increase the total number of Shares (except as provided in Section 4.2) which may be granted under the Plan; (c) extend the term of the Plan; (d) reprice, replace or regrant through cancellation Options or SARs issued under this Plan or lower the Option Price of a previously granted Option or the Grant Price of a previously granted SAR; or (e) amend the Plan in any other manner which the Committee, in its discretion, determines should become effective only if approved by the shareholders even if such shareholder approval is not expressly required by the Plan or by law.

 

17.2 Adjustment of Awards Upon Occurrence of Certain Unusual or Nonrecurring Events.  The Committee may make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 4.4 hereof) affecting the Company or the financial statements of the Company or of changes in Applicable Laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent unintended dilution or enlargement of the benefits or potential benefits intended to be made available under this Plan.  The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under this Plan.

 

17.3 Awards Previously Granted.  No termination, amendment or modification of the Plan shall adversely affect in any material way any Award previously granted under the Plan without the written consent of the Participant holding such Award.  The Committee shall, with the written consent of the Participant holding such Award, have the authority to cancel Awards outstanding.

 

17.4 Amendment to Conform to Law.  Notwithstanding any other provision of this Plan to the contrary, the Board may amend the Plan or an Agreement, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or an Agreement to any present or future law relating to plans of this or similar nature (including, but not limited to, Code Section 409A), and to the administrative regulations and rulings promulgated thereunder.  By accepting an Award under this Plan, each Participant agrees to any amendment made pursuant to this Section 17.4 to any Award granted under the Plan without further consideration or action.

 

ARTICLE 18.  WITHHOLDING

 

18.1 Tax Withholding.  The Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal (including the Participant’s FICA obligation), state and local taxes, domestic or foreign, required by law to be withheld with respect to any taxable event arising in connection with an Award under this Plan.

 

 

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18.2 Stock-Settled Awards.  Each Participant shall make such arrangements as the Committee may require, within a reasonable time prior to the date on which any portion of an Award settled in Shares is scheduled to vest, for the payment of all withholding tax obligations through (i) giving instructions to a broker for the sale on the open market of a sufficient number of Shares to pay the withholding tax in a manner that satisfies all applicable laws, (ii) depositing with the Company an amount of funds equal to the estimated withholding tax liability, (iii) withholding Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax which could be imposed on the transaction, or (iv) such other method as the Committee in its discretion may approve, including a combination of (i), (ii) and (iii).  If a Participant fails to make such arrangements, or if by reason of any action or inaction of the Participant the Company fails to receive a sufficient amount to satisfy the withholding tax obligation, then, anything else contained in this Plan or any Award to the contrary notwithstanding, the Shares that would otherwise have vested on such date shall be withheld, as determined by the Committee, regardless of the Participant’s status as an Employee, Director or Third-Party Service Provider; provided, that the Committee, in its sole discretion, may permit a Participant to cure any failure to provide funds to meeting the withholding tax obligation (including any penalties or interest thereon), if the Committee determines that the failure was due to factors beyond the Participant’s control.  Any method elected by an Insider shall additionally comply with all legal requirements applicable to such Share transactions by such Participants.

 

ARTICLE 19.  INDEMNIFICATION

 

Each person who is or shall have been a member of the Committee, or the Board, shall be indemnified and held harmless by the Company against and from any loss, cost, liability or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf.  The foregoing right of indemnification shall be in addition to any other rights of indemnification to which such persons may be entitled under the Company’s Articles of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company have to indemnify them or hold them harmless.

 

ARTICLE 20.  SUCCESSORS

 

All obligations of the Company under the Plan, with respect to Awards granted hereunder, shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation or otherwise, of all or substantially all of the business and/or assets of the Company.

 

 

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ARTICLE 21.  GENERAL PROVISIONS

 

21.1 Gender and Number.  Except where otherwise indicted by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural.

 

21.2 Severability.  If any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 

21.3 Requirements of Law.  The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

 

21.4 Regulatory Approvals and Listing.  The Company shall not be required to issue or deliver evidence of title for Shares under the Plan prior to (a) obtaining any approval from any governmental agency which the Company shall, in its discretion, determine to be necessary or advisable, (b) the admission of such shares to listing on any national securities exchange or NASDAQ on which the Company’s Shares may be listed, and (c) the completion of any registration or other qualification of such Shares under any state, federal or foreign law or ruling or regulation of any governmental body which the Company shall, in its sole discretion, determine to be necessary or advisable.

 

Notwithstanding any other provision set forth in the Plan, if required by the then-current Section 16 of the Exchange Act, any “derivative security” or “equity security” offered pursuant to the Plan to any Insider may not be sold or transferred for at least six (6) months after the date of grant of such Award.  The terms “equity security” and “derivative security” shall have the meanings ascribed to them in the then-current Rule 16(a) under the Exchange Act.

 

21.5 Investment Representation.  The Committee may require any individual receiving Shares pursuant to an Award under this Plan to represent and warrant in writing that the individual is acquiring the Shares for investment and without any present intention to sell or distribute such Shares.

 

21.6 Employees Based Outside of the United States.  Notwithstanding any provision of this Plan to the contrary, in order to comply with the laws in other countries in which the Company, its Affiliates, and/or its Subsidiaries operate or have Employees, Directors, or Third-Party Service Providers, the Committee, in its sole discretion, shall have the power and authority to:

 

	
(a)  

	
Determine which Affiliates and Subsidiaries shall be covered by this Plan;

 

	
(b)  

	
Determine which Employees, Directors, and/or Third-Party Service Providers outside the United States are eligible to participate in this Plan;

 

	
(c)  

	
Modify the terms and conditions of any Award granted to Employees and/or Third-Party Service Providers outside the United States to comply with applicable foreign laws;

 

 

27

 

 

	
(d)  

	
Establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable.  Any subplans and modifications to Plan terms and procedures established under this Section 21.6 by the Committee shall be attached to this Plan document as appendices; and

 

	
(e)  

	
Take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local government regulatory exemptions or approvals.

 

Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate applicable law.

 

21.7 Uncertificated Shares.  To the extent that this Plan provides for issuance of certificates to reflect the transfer of Shares, the transfer of such Shares may be effected on a noncertificated basis, to the extent not prohibited by applicable laws.

 

21.8 Unfunded Plan.  Participants shall have no right, title, or interest whatsoever in or to any investments that the Company, and/or its Subsidiaries, and/or its Affiliates may make to aid it in meeting its obligations under this Plan.  Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary, legal representative, or any other individual.  To the extent that any individual acquires a right to receive payments from the Company, its Subsidiaries, and/or its Affiliates under this Plan, such right shall be no greater than the right of an unsecured general creditor of the Company, any Subsidiary, or an Affiliate, as the case may be.  All payments to be made hereunder shall be paid from the general funds of the Company, any Subsidiary, or an Affiliate, as the case may be and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts except as expressly set forth in this Plan.

 

21.9 No Fractional Shares.  No fractional Shares shall be issued or delivered pursuant to this Plan or any Award.  The Committee shall determine whether cash, Awards, or other property shall be issued or paid in lieu of fractional Shares or whether such fractional Shares or any rights thereto shall be forfeited or otherwise eliminated.

 

21.10 Retirement and Welfare Plans.  Neither Awards made under this Plan nor Shares or cash paid pursuant to such Awards may be included as “compensation” for purposes of computing the benefits payable to any Participant under the Company’s, any Subsidiary’s, or an Affiliate’s retirement plans (both qualified and non-qualified) or welfare benefit plans unless such other plan expressly provides that such compensation shall be taken into account in computing a Participant’s benefit.

 

21.11 Deferred Compensation.  If any Award granted under the Plan is considered deferred compensation as defined under Code Section 409A, and if this Plan or the terms of an Award fail to meet the requirements of Code Section 409A with respect to such Award, then such Award shall remain in effect and be subject to taxation in accordance with Section 409A.  In this circumstance, the Committee may accelerate distribution or settlement of an Award in accordance with Code Section 409A.  The Company shall have no liability for any tax imposed on a Participant under Section 409A, and if any tax is imposed on a Participant, the Participant shall have no recourse against the Company for payment of any such tax.  Notwithstanding the foregoing, if any modification of an Award causes the Award to be deferred compensation under Code Section 409A, the Committee may rescind such modification in accordance with Code Section 409A.

 

 

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21.12 Nonexclusivity of this Plan.  The adoption of this Plan shall not be construed as creating any limitations on the power of the Board or Committee to adopt such other compensation arrangements as it may deem desirable for any Participant.

 

21.13 No Constraint on Corporate Action.  The adoption of this Plan shall not be construed as creating any limitations on the power of the Board or Committee to adopt such other compensation arrangements as it may deem desirable for any Participant.

 

21.14 Securities Law Compliance.  With respect to Insiders, transactions under this Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the Exchange Act.  To the extent any provisions of the Plan or action by the Committee fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Committee.

 

21.15 Governing Law.  To the extent not preempted by Federal law, the Plan, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the State of Maryland.

 

*   *   *   *

AS APPROVED BY THE BOARD OF DIRECTORS OF INDIA GLOBALIZATION CAPITAL, INC. EFFECTIVE AS OF MARCH  2, 2017.

INDIA GLOBALIZATION CAPITAL, INC.

By: /s/Ram Mukunda                                                                                                          

Its: President                                             

 

 

 

 

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