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Exhibit 10.1

TEXAS CAPITAL BANCSHARES, INC.
2022 LONG-TERM INCENTIVE PLAN
The Texas Capital Bancshares, Inc. 2022 Long-Term Incentive Plan (the “Plan”) was adopted by the Board of Directors of Texas Capital Bancshares, Inc., a Delaware corporation (the “Company”), on February 8, 2022 and the Company’s stockholders on April 19, 2022.  The Plan shall be effective as of April 26, 2022 (the “Effective Date”).  
ARTICLE I
PURPOSE
The purpose of the Plan is to attract and retain the services of key Employees, key Contractors, and Outside Directors of the Company and its Subsidiaries and to provide such persons with a proprietary interest in the Company through the granting of Incentive Stock Options, Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Awards, Dividend Equivalent Rights, and Other Awards, whether granted singly, or in combination, or in tandem, that will:
(a)    increase the interest of such persons in the Company’s welfare;
(b)    furnish an incentive to such persons to continue their services for the Company or its Subsidiaries; and
(c)    provide a means through which the Company may attract able persons as Employees, Contractors, and Outside Directors.
With respect to Reporting Participants, the Plan and all transactions under the Plan are intended to comply with all applicable conditions of Rule 16b-3 promulgated under the Exchange Act.  To the extent any provision of the Plan or action by the Committee fails to so comply, such provision or action shall be deemed null and void ab initio, to the extent permitted by law and deemed advisable by the Committee.
ARTICLE 2
DEFINITIONS
For the purpose of the Plan, unless the context requires otherwise, the following terms shall have the meanings indicated:
2.1    “Applicable Law” means all legal requirements relating to the administration of equity incentive plans and the issuance and distribution of shares of Common Stock, if any, under applicable corporate laws, applicable securities laws, the rules of any exchange or inter-dealer quotation system upon which the Company’s securities are listed or quoted, and any other applicable law, rule or restriction.
2.2    “Award” means the grant of any Incentive Stock Option, Nonqualified Stock Option, Restricted Stock, SAR, Restricted Stock Unit, Performance Award, Dividend Equivalent Right or Other Award, whether granted singly or in combination or in tandem (each individually referred to herein as an “Incentive”).
2.3    “Award Agreement” means a written agreement between a Participant and the Company which sets out the terms of the grant of an Award.
2.4    “Award Period” means the period set forth in the Award Agreement during which one or more Incentives granted under an Award may be exercised.
2.5    “Authorized Officer” is defined in Section 3.2(b) hereof.
2.6    “Board” means the board of directors of the Company.

2.7    “Cause”, with respect to a Participant’s Award, shall have the meaning set forth in the Participant’s employment agreement with the Company, or, if the employment agreement does not contain a definition of “cause” or the Participant has not entered into an employment agreement with the Company, “Cause” means any of the following acts by the Participant, as determined in good faith by the Company: (i) misappropriation of funds or property, fraud or dishonesty within the course of providing services to the Company which evidences a want of integrity or breach of trust; (ii) indictment for a misdemeanor that has caused or may be reasonably expected to cause material injury to the Company, any of its Subsidiaries, any of its affiliates or any of their interests, or indictment for a felony; (iii) any willful or negligent action, inaction, or inattention to duties of the Participant within the course of providing services to the Company that causes the Company material harm or damages (as determined in the sole and absolute discretion of the Company); (iv) misappropriation of any corporate opportunity or otherwise obtaining personal profit from any transaction which is adverse to the interests of the Company or to the benefits of which the Company is entitled; (v) inexcusable or repeated failure by the Participant to follow applicable Company policies and procedures; (vi) conduct of the Participant which is materially detrimental to the Company (as determined in the sole and absolute discretion of the Company); or (vii) any material violation of the terms of the Participant’s employment agreement (or, if Participant is a Contractor, of the Participant’s consulting or contractor agreement), if any.
2.8    “Change in Control” means any of the following, except as otherwise provided herein:
(a)    any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates) representing 51% or more of the combined voting power of the Company’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (i) of paragraph (c) below; or
    (b)    the following individuals cease for any reason to constitute a majority of the number of directors then serving:  individuals who, on the Effective Date of this Plan, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on the Effective Date of this Plan or whose appointment, election or nomination for election was previously so approved or recommended; or
    (c)    there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 51% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including the securities Beneficially Owned by such Person any securities acquired directly from the Company or its Affiliates other than in connection with the acquisition by the Company or its Affiliates of a business) representing 51% or more of the combined voting power of the Company’s then outstanding securities; or
    (d)    the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 51% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.

For purposes hereof:
“Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Exchange Act.
“Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.
“Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.
Notwithstanding the foregoing provisions of this Section 2.8, if an Award issued under the Plan is subject to Section 409A of the Code, then an event shall not constitute a Change in Control for purposes of such Award under the Plan unless such event also constitutes a change in the Company’s ownership, its effective control or the ownership of a substantial portion of its assets within the meaning of Section 409A of the Code.
2.9    “Claim” means any claim, liability or obligation of any nature, arising out of or relating to this Plan or an alleged breach of this Plan, or an Award Agreement.
2.10    “Code” means the United States Internal Revenue Code of 1986, as amended.
2.11    “Committee” means the Compensation and Human Capital Committee of the Board, unless the Board appoints or designates a different committee to administer the Plan in accordance with Article 3 of this Plan.
2.12    “Common Stock” means the common stock, par value $0.01 per share, which the Company is currently authorized to issue or may in the future be authorized to issue, or any securities into which or for which the common stock of the Company may be converted or exchanged, as the case may be, pursuant to the terms of this Plan.
2.13    “Company” means Texas Capital Bancshares, Inc., a Delaware corporation, and any successor entity.
2.14    “Contractor” means any natural person, who is not an Employee, rendering bona fide services to the Company or a Subsidiary, with compensation, pursuant to a written independent contractor agreement between such person (or any entity employing such person) and the Company or a Subsidiary, provided that such services are not rendered in connection with the offer or sale of securities in a capital raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities.
2.15    “Corporation” means any entity that (i) is defined as a corporation under Section 7701 of the Code and (ii) is the Company or is in an unbroken chain of corporations (other than the Company) beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing a majority of the total combined voting power of all classes of stock in one of the other corporations in the chain.  For purposes of clause (ii) hereof, an entity shall be treated as a “corporation” if it satisfies the definition of a corporation under Section 7701 of the Code.
2.16    “Date of Grant” means the effective date on which an Award is made to a Participant as set forth in the applicable Award Agreement.
2.17    “Dividend Equivalent Right” means the right of the holder thereof to receive credits based on the cash dividends that would have been paid on the shares of Common Stock specified in the Award if such shares were held by the Participant to whom the Award is made.
2.18    “Employee” means a common law employee (as defined in accordance with the Regulations and Revenue Rulings then applicable under Section 3401(c) of the Code) of the Company or any Subsidiary of the Company.
2.19    “Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

2.20    “Executive Officer” means an officer of the Company or a Subsidiary subject to Section 16 of the Exchange Act.
2.21    “Exercise Date” is defined in Section 8.3(b) hereof.
2.22    “Fair Market Value” means, as of a particular date, (a) if the shares of Common Stock are listed on any established national securities exchange, the closing sales price per share of Common Stock on the consolidated transaction reporting system for the principal securities exchange for the Common Stock on that date, or, if there shall have been no such sale so reported on that date, on the last preceding date on which such a sale was so reported; (b) if the shares of Common Stock are not so listed, but are quoted on an automated quotation system, the closing sales price per share of Common Stock reported on the automated quotation system on that date, or, if there shall have been no such sale so reported on that date, on the last preceding date on which such a sale was so reported; (c) if the Common Stock is not so listed or quoted, the mean between the closing bid and asked price on that date, or, if there are no quotations available for such date, on the last preceding date on which such quotations shall be available, as reported by the OTC Bulletin Board operated by the Financial Industry Regulation Authority, Inc. or the OTC Markets Group Inc., formerly known as Pink OTC Markets Inc.; or (d) if none of the above is applicable, such amount as may be determined by the Committee (acting on the advice of an Independent Third Party, should the Committee elect in its sole discretion to utilize an Independent Third Party for this purpose), in good faith, to be the fair market value per share of Common Stock.  The determination of Fair Market Value shall, where applicable, be in compliance with Section 409A of the Code.
2.23    “Good Reason”, with respect to a Participant’s Award, shall have the meaning set forth in the Participant’s employment agreement with the Company, or, if the employment agreement does not contain a definition of “good reason” or the Participant has not entered into an employment agreement with the Company, “Good Reason” means: (i) without his or her express written consent, the assignment of the Participant to a position constituting a material demotion, or loss of compensation or job duties by comparison to his or her position with the Company on the Date of Grant; provided, however, that changes, as opposed to a loss, in the Participant’s job duties or changes to reporting relationships, at the Board’s discretion, and without a material loss in the Participant’s compensation, will not constitute “Good Reason”; (ii) the change of the location where the Participant performs the majority of the Participant’s job duties on the Date of Grant of the Award (“Base Location”) to a location that is more than fifty (50) miles from the Base Location, without the Participant’s written consent; (iii) a reduction by the Company in the Participant’s base salary as in effect on the Date of Grant of the Award, unless the reduction is a proportionate reduction of the compensation of the Participant and all other senior officers of the Company as a part of a company-wide effort to enhance the Company’s financial condition; or (iv) after the occurrence of a Change in Control, a significant adverse change in the nature or scope of the authorities, powers, functions, responsibilities, or duties attached to the position(s) with the Company which the Participant held immediately before the Change in Control, or a material reduction in total compensation, including incentive compensation, stock-based compensation and benefits received from the Company compared to the total compensation and benefits to which the Participant was entitled immediately before the Change in Control.
2.24    “Immediate Family Members” is defined in Section 15.8 hereof.
2.25    “Incentive” is defined in Section 2.2 hereof.
2.26    “Incentive Stock Option” means an incentive stock option within the meaning of Section 422 of the Code, granted pursuant to this Plan.
2.27    “Independent Third Party” means an individual or entity independent of the Company having experience in providing investment banking or similar appraisal or valuation services and with expertise generally in the valuation of securities or other property for purposes of this Plan.  The Committee may utilize one or more Independent Third Parties.
2.28    “Nonqualified Stock Option” means a nonqualified stock option, granted pursuant to this Plan, which is not an Incentive Stock Option.

2.29    “Option Price” means the price which must be paid by a Participant upon exercise of a Stock Option to purchase a share of Common Stock.
2.30    “Other Award” means an Award issued pursuant to Section 6.9 hereof.
2.31    “Outside Director” means a director of the Company who is not an Employee or a Contractor.
2.32    “Participant” means an Employee or Contractor of the Company or a Subsidiary or an Outside Director to whom an Award is granted under this Plan.
2.33    “Performance Award” means an Award hereunder of cash, shares of Common Stock, units or rights based upon, payable in, or otherwise related to, Common Stock pursuant to Section 6.7 hereof.
2.34    “Performance Criteria” is defined in Section 6.10 hereof.
2.35    “Performance Goal” means any of the goals set forth in Section 6.10 hereof.
2.36    “Plan” means this Texas Capital Bancshares, Inc. 2022 Long-Term Incentive Plan, as amended from time to time.
2.37    “Reporting Participant” means a Participant who is subject to the reporting requirements of Section 16 of the Exchange Act.
2.38    “Restricted Stock” means shares of Common Stock issued or transferred to a Participant pursuant to Section 6.4 of this Plan which are subject to restrictions or limitations set forth in this Plan and in the related Award Agreement.
2.39    “Restricted Stock Units” means units awarded to Participants pursuant to Section 6.6 hereof, which are convertible into Common Stock at such time as such units are no longer subject to restrictions as established by the Committee.
2.40    “Restriction Period” is defined in Section 6.4(b)(i) hereof.
2.41    “SAR” or “Stock Appreciation Right” means the right to receive an amount, in cash and/or Common Stock, equal to the excess of the Fair Market Value of a specified number of shares of Common Stock as of the date the SAR is exercised (or, as provided in the Award Agreement, converted) over the SAR Price for such shares.
2.42    “SAR Price” means the exercise price or conversion price of each share of Common Stock covered by a SAR, determined on the Date of Grant of the SAR.
2.43    “Spread” is defined in Section 12.4(b) hereof.
2.44    “Stock Option” means a Nonqualified Stock Option or an Incentive Stock Option.
2.45    “Subsidiary” means (i) any corporation in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing a majority of the total combined voting power of all classes of stock in one of the other corporations in the chain, (ii) any limited partnership, if the Company or any corporation described in item (i) above owns a majority of the general partnership interest and a majority of the limited partnership interests entitled to vote on the removal and replacement of the general partner, and (iii) any partnership or limited liability company, if the partners or members thereof are composed only of the Company, any corporation listed in item (i) above or any limited partnership listed in item (ii) above.  “Subsidiaries” means more than one of any such corporations, limited partnerships, partnerships or limited liability companies.
2.46    “Termination of Service” occurs when a Participant who is (i) an Employee of the Company or any Subsidiary ceases to serve as an Employee of the Company and its Subsidiaries, for any reason; (ii) an Outside Director of the Company or a Subsidiary ceases to serve as a director of the Company and its Subsidiaries for any reason; or (iii) a Contractor of the Company or a Subsidiary ceases to serve as a Contractor of the Company and its Subsidiaries for any 

reason.  Except as may be necessary or desirable to comply with applicable federal or state law, a “Termination of Service” shall not be deemed to have occurred when a Participant who is an Employee becomes an Outside Director or Contractor or vice versa.  If, however, a Participant who is an Employee and who has an Incentive Stock Option ceases to be an Employee but does not suffer a Termination of Service, and if that Participant does not exercise the Incentive Stock Option within the time required under Section 422 of the Code upon ceasing to be an Employee, the Incentive Stock Option shall thereafter become a Nonqualified Stock Option.  Notwithstanding the foregoing provisions of this Section 2.51, in the event an Award issued under the Plan is subject to Section 409A of the Code, then, in lieu of the foregoing definition and to the extent necessary to comply with the requirements of Section 409A of the Code, the definition of “Termination of Service” for purposes of such Award shall be the definition of “separation from service” provided for under Section 409A of the Code and the regulations or other guidance issued thereunder.
2.47    “Total and Permanent Disability” means a Participant is qualified for long-term disability benefits under the Company’s or Subsidiary’s disability plan or insurance policy; or, if no such plan or policy is then in existence or if the Participant is not eligible to participate in such plan or policy, that the Participant, because of a physical or mental condition resulting from bodily injury, disease, or mental disorder, is unable to perform his or her duties of employment for a period of six (6) continuous months, as determined in good faith by the Committee, based upon medical reports or other evidence satisfactory to the Committee; provided that, with respect to any Incentive Stock Option, Total and Permanent Disability shall have the meaning given it under the rules governing Incentive Stock Options under the Code.  Notwithstanding the foregoing provisions of this Section 2.52, in the event an Award issued under the Plan is subject to Section 409A of the Code, then, in lieu of the foregoing definition and to the extent necessary to comply with the requirements of Section 409A of the Code, the definition of “Total and Permanent Disability” for purposes of such Award shall be the definition of “disability” provided for under Section 409A of the Code and the regulations or other guidance issued thereunder.
2.48    “Withheld Dividends” is defined in Section 6.4(b)(ii) hereof. 
ARTICLE 3
ADMINISTRATION
3.1    General Administration; Establishment of Committee.  Subject to the terms of this Article 3, the Plan shall be administered by the Committee.  The Committee shall consist of not fewer than two persons.  Any member of the Committee may be removed at any time, with or without cause, by resolution of the Board. Any vacancy occurring in the membership of the Committee may be filled by appointment by the Board.  At any time there is no Committee to administer the Plan, any references in this Plan to the Committee shall be deemed to refer to the Board.
Membership on the Committee shall be limited to those members of the Board who are “non-employee directors” as defined in Rule 16b-3 promulgated under the Exchange Act.  The Committee shall select one of its members to act as its Chairman.  A majority of the Committee shall constitute a quorum, and the act of a majority of the members of the Committee present at a meeting at which a quorum is present shall be the act of the Committee.
3.2    Designation of Participants and Awards.  
(a)    The Committee or the Board shall determine and designate from time to time the eligible persons to whom Awards will be granted and shall set forth in each related Award Agreement, where applicable, the Award Period, the Date of Grant, and such other terms, provisions, limitations, and performance requirements, as are approved by the Committee, but not inconsistent with the Plan.  The Committee shall determine whether an Award shall include one type of Incentive or two or more Incentives granted in combination or two or more Incentives granted in tandem (that is, a joint grant where exercise of one Incentive results in cancellation of all or a portion of the other Incentive).  
(b)    Notwithstanding Section 3.2(a), to the extent permitted by Applicable Law, the Board may, in its discretion and by a resolution adopted by the Board, authorize one or more officers of the Company (an “Authorized Officer”) to (i) designate one or more Employees other than Reporting Persons as eligible persons to whom Awards will be granted under the Plan and (ii) determine the number of shares of Common Stock that will be subject to such Awards; provided, however, that the resolution of the Board granting such authority shall (x) specify the total number of shares of Common Stock that may be made subject to the Awards, (y) set forth 

the price or prices (or a formula by which such price or prices may be determined) to be paid for the purchase of the Common Stock subject to such Awards, and (z) not authorize an officer to designate himself as a recipient of any Award.
3.3    Authority of the Committee.  The Committee, in its discretion, shall (i) interpret the Plan and Award Agreements, (ii) prescribe, amend, and rescind any rules and regulations, as necessary or appropriate for the administration of the Plan, (iii) establish performance goals for an Award and certify the extent of their achievement, and (iv) make such other determinations or certifications and take such other action as it deems necessary or advisable in the administration of the Plan.  Any interpretation, determination, or other action made or taken by the Committee shall be final, binding, and conclusive on all interested parties.  The Committee’s discretion set forth herein shall not be limited by any provision of the Plan, including any provision which by its terms is applicable notwithstanding any other provision of the Plan to the contrary.
The Committee may delegate to officers of the Company, pursuant to a written delegation, the authority to perform specified functions under the Plan.  Any actions taken by any officers of the Company pursuant to such written delegation of authority shall be deemed to have been taken by the Committee.
With respect to restrictions in the Plan that are based on the requirements of Rule 16b-3 promulgated under the Exchange Act, Section 422 of the Code, the rules of any exchange or inter-dealer quotation system upon which the Company’s securities are listed or quoted, or any other Applicable Law, to the extent that any such restrictions are no longer required by Applicable Law, the Committee shall have the sole discretion and authority to grant Awards that are not subject to such mandated restrictions and/or to waive any such mandated restrictions with respect to outstanding Awards.
ARTICLE 4
ELIGIBILITY
Any Employee (including an Employee who is also a director or an officer), Contractor or Outside Director of the Company whose judgment, initiative, and efforts contributed or may be expected to contribute to the successful performance of the Company is eligible to participate in the Plan; provided that only Employees of a Corporation shall be eligible to receive Incentive Stock Options.  The Committee, upon its own action, may grant, but shall not be required to grant, an Award to any Employee, Contractor or Outside Director.  Awards may be granted by the Committee at any time and from time to time to new Participants, or to then Participants, or to a greater or lesser number of Participants, and may include or exclude previous Participants, as the Committee shall determine.  Except as required by this Plan, Awards need not contain similar provisions.  The Committee’s determinations under the Plan (including without limitation determinations of which Employees, Contractors or Outside Directors, if any, are to receive Awards, the form, amount and timing of such Awards, the terms and provisions of such Awards and the agreements evidencing same) need not be uniform and may be made by it selectively among Participants who receive, or are eligible to receive, Awards under the Plan.
ARTICLE 5
SHARES SUBJECT TO PLAN
5.1    Number Available for Awards.  Subject to adjustment as provided in Articles 11 and 12, the maximum number of shares of Common Stock that may be delivered pursuant to Awards granted under the Plan is one million four hundred thousand (1,400,000) shares, less the net number of shares covering awards made pursuant the Company's 2015 Long-Term Incentive Plan between December 31, 2021 and the Effective Date (the “Shares Available”).  One hundred percent (100%) of the Shares Available may be delivered pursuant to Incentive Stock Options.  Shares to be issued may be made available from authorized but unissued Common Stock, Common Stock held by the Company in its treasury, or Common Stock purchased by the Company on the open market or otherwise.  During the term of this Plan, the Company will at all times reserve and keep available the number of shares of Common Stock that shall be sufficient to satisfy the requirements of this Plan.
5.2    Reuse of Shares.  To the extent that any Awards under this Plan shall be forfeited, shall expire or be canceled, in whole or in part, without the issuance of Shares, then the number of shares of Common Stock covered by the Awards so forfeited, expired, or canceled may again be awarded pursuant to the provisions of this Plan.  Awards that 

may be satisfied either by the issuance of shares of Common Stock or by cash or other consideration shall be counted against the maximum number of shares of Common Stock that may be issued under this Plan only during the period that the Award is outstanding or to the extent the Award is ultimately satisfied by the issuance of shares of Common Stock.  Shares of Common Stock otherwise deliverable pursuant to an Award that are withheld upon exercise or vesting of an Award for purposes of paying the exercise price or tax withholdings shall be treated as delivered to the Participant and shall be counted against the maximum number of shares of Common Stock that may be issued under this Plan.  Awards will not reduce the number of shares of Common Stock that may be issued pursuant to this Plan if the settlement of the Award will not require the issuance of shares of Common Stock, as, for example, a SAR that can be satisfied only by the payment of cash.  Notwithstanding any provisions of the Plan to the contrary, shares forfeited back to the Company, or shares canceled on account of termination, expiration or lapse of an Award shall again be available for grant of Incentive Stock Options under the Plan, but shall not increase the maximum number of shares described in Section 5.1 above as the maximum number of shares of Common Stock that may be delivered pursuant to Incentive Stock Options. 
ARTICLE 6
GRANT OF AWARDS
6.1    In General.
(a)    The grant of an Award shall be authorized by the Committee and shall be evidenced by an Award Agreement setting forth the Incentive or Incentives being granted, the total number of shares of Common Stock subject to the Incentive(s), the Option Price (if applicable), the Award Period, the Date of Grant, and such other terms, provisions, limitations, and performance objectives, as are approved by the Committee, but (i) not inconsistent with the Plan, and (ii) to the extent an Award issued under the Plan is subject to Section 409A of the Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or other guidance issued thereunder.  The Company shall execute an Award Agreement with a Participant after the Committee approves the issuance of an Award.  The grant of an Award to a Participant shall not be deemed either to entitle the Participant to, or to disqualify the Participant from, receipt of any other Award under the Plan.
(b)    If the Committee establishes a purchase price for an Award, the Participant must accept such Award within a period of thirty (30) days (or such shorter period as the Committee may specify) after the Date of Grant by executing the applicable Award Agreement and paying such purchase price.
(c)    Any Award under this Plan that is settled in whole or in part in cash on a deferred basis may provide for interest equivalents to be credited with respect to such cash payment. Interest equivalents may be compounded and shall be paid upon such terms and conditions as may be specified by the grant.
6.2    Option Price.  The Option Price for any share of Common Stock which may be purchased under a Nonqualified Stock Option for any share of Common Stock must be equal to or greater than the Fair Market Value of the share on the Date of Grant.  The Option Price for any share of Common Stock which may be purchased under an Incentive Stock Option must be at least equal to the Fair Market Value of the share on the Date of Grant; if an Incentive Stock Option is granted to an Employee who owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than  ten percent (10%) of the combined voting power of all classes of stock of the Company (or any parent or Subsidiary), the Option Price shall be at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock on the Date of Grant.  No dividends or Dividend Equivalent Rights may be paid or granted with respect to any Stock Option granted hereunder. 
6.3    Maximum ISO Grants.  The Committee may not grant Incentive Stock Options under the Plan to any Employee which would permit the aggregate Fair Market Value (determined on the Date of Grant) of the Common Stock with respect to which Incentive Stock Options (under this and any other plan of the Company and its Subsidiaries) are exercisable for the first time by such Employee during any calendar year to exceed $100,000.  To the extent any Stock Option granted under this Plan which is designated as an Incentive Stock Option exceeds this limit or otherwise fails to qualify as an Incentive Stock Option, such Stock Option (or any such portion thereof) shall be a Nonqualified Stock Option.  In such case, the Committee shall designate which stock will be treated as Incentive Stock Option stock by causing the issuance of a separate stock certificate and identifying such stock as Incentive Stock Option stock on the Company’s stock transfer records.

6.4    Restricted Stock.  If Restricted Stock is granted to or received by a Participant under an Award (including a Stock Option), the Committee shall set forth in the related Award Agreement: (i) the number of shares of Common Stock awarded, (ii) the price, if any, to be paid by the Participant for such Restricted Stock and the method of payment of the price, (iii) the time or times within which such Award may be subject to forfeiture, (iv) specified Performance Goals of the Company, a Subsidiary, any division thereof or any group of Employees of the Company, or other criteria, which the Committee determines must be met in order to remove any restrictions (including vesting) on such Award, and (v) all other terms, limitations, restrictions, and conditions of the Restricted Stock, which shall be consistent with this Plan, to the extent applicable.  The provisions of Restricted Stock need not be the same with respect to each Participant.
(a)    Legend on Shares.  The Company shall electronically register the Restricted Stock awarded to a Participant in the name of such Participant, which shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock, substantially as provided in Section 15.10 of the Plan.  No stock certificate or certificates shall be issued with respect to such shares of Common Stock, unless, following the expiration of the Restriction Period (as defined in Section 6.4(b)(i)) without forfeiture in respect of such shares of Common Stock, the Participant requests delivery of the certificate or certificates by submitting a written request to the Committee (or such party designated by the Company) requesting delivery of the certificates.  The Company shall deliver the certificates requested by the Participant to the Participant as soon as administratively practicable following the Company’s receipt of such request.
(b)    Restrictions and Conditions.  Shares of Restricted Stock shall be subject to the following restrictions and conditions:
(i)    Subject to the other provisions of this Plan and the terms of the particular Award Agreements, during such period as may be determined by the Committee commencing on the Date of Grant or the date of exercise of an Award (the “Restriction Period”), the Participant shall not be permitted to sell, transfer, pledge or assign shares of Restricted Stock. Except for these limitations and the limitations set forth in Section 7.2 below, the Committee may in its sole discretion, remove any or all of the restrictions on such Restricted Stock whenever it may determine that, by reason of changes in Applicable Laws or other changes in circumstances arising after the date of the Award, such action is appropriate.
(ii)    Except as provided in sub-paragraph (i) above or in the applicable Award Agreement, the Participant shall have, with respect to his or her Restricted Stock, all of the rights of a stockholder of the Company, including the right to vote the shares, and the right to receive any dividends thereon; provided that (A) any cash dividends and stock dividends with respect to the Restricted Stock shall be withheld by the Company for the Participant’s account without interest (together, “Withheld Dividends”); and (B) such Withheld Dividends attributable to any particular share of Restricted Stock (and earnings thereon, if applicable) shall be distributed to such Participant in cash or, at the discretion of the Committee, in shares of Common Stock having a Fair Market Value equal to the amount of such Withheld Dividends, if applicable, upon the release of restrictions on such share (i.e., upon vesting) and, if such share is forfeited, the Participant shall forfeit and have no right to such Withheld Dividends. In no event shall dividends be paid or distributed until the vesting restrictions of the underlying Restricted Stock lapse. Certificates for shares of Common Stock free of restriction under this Plan shall be delivered to the Participant promptly after, and only after, the Restriction Period shall expire without forfeiture in respect of such shares of Common Stock or after any other restrictions imposed on such shares of Common Stock by the applicable Award Agreement or other agreement have expired.  Certificates for the shares of Common Stock forfeited under the provisions of the Plan and the applicable Award Agreement shall be promptly returned to the Company by the forfeiting Participant.  Each Award Agreement shall require that each Participant, in connection with the issuance of a certificate for Restricted Stock, shall endorse such certificate in blank or execute a stock power in form satisfactory to the Company in blank and deliver such certificate and executed stock power to the Company.

(iii)    The Restriction Period of Restricted Stock shall commence on the Date of Grant or the date of exercise of an Award, as specified in the Award Agreement, and, subject to Article 12 of the Plan, unless otherwise established by the Committee in the Award Agreement setting forth the terms of the Restricted Stock, shall expire upon satisfaction of the conditions set forth in the Award Agreement; such conditions may provide for vesting based on such Performance Goals, as may be determined by the Committee in its sole discretion.
(iv)    Except as otherwise provided in the particular Award Agreement, upon Termination of Service for any reason during the Restriction Period, the nonvested shares of Restricted Stock and any Withheld Dividends shall be forfeited by the Participant.  In the event a Participant has paid any consideration to the Company for such forfeited Restricted Stock, the Committee shall specify in the Award Agreement that either (i) the Company shall be obligated to, or (ii) the Company may, in its sole discretion, elect to, pay to the Participant, as soon as practicable after the event causing forfeiture, in cash, an amount equal to the lesser of the total consideration paid by the Participant for such forfeited shares or the Fair Market Value of such forfeited shares as of the date of Termination of Service, as the Committee, in its sole discretion shall select. Upon any forfeiture, all rights of a Participant with respect to the forfeited shares of the Restricted Stock and any Withheld Dividends shall cease and terminate, without any further obligation on the part of the Company.
6.5    SARs.  The Committee may grant SARs to any Participant, either as a separate Award or in connection with a Stock Option.  SARs shall be subject to such terms and conditions as the Committee shall impose, provided that such terms and conditions are (i) not inconsistent with the Plan and (ii) to the extent a SAR issued under the Plan is subject to Section 409A of the Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or other guidance issued thereunder.  The grant of the SAR may provide that the holder may be paid for the value of the SAR either in cash or in shares of Common Stock, or a combination thereof.  In the event of the exercise of a SAR payable in shares of Common Stock, the holder of the SAR shall receive that number of whole shares of Common Stock having an aggregate Fair Market Value on the date of exercise equal to the value obtained by multiplying (i) the difference between the Fair Market Value of a share of Common Stock on the date of exercise over the SAR Price as set forth in such SAR (or other value specified in the Award Agreement granting the SAR), by (ii) the number of shares of Common Stock as to which the SAR is exercised, with a cash settlement to be made for any fractional shares of Common Stock.  The SAR Price for any share of Common Stock subject to a SAR may be equal to or greater than the Fair Market Value of the share on the Date of Grant.  The Committee, in its sole discretion, may place a ceiling on the amount payable upon exercise of a SAR, but any such limitation shall be specified at the time that the SAR is granted.  No dividends or Dividend Equivalent Rights may be paid or granted with respect to any Stock Appreciation Right granted hereunder.
6.6    Restricted Stock Units.  Restricted Stock Units may be awarded or sold to any Participant under such terms and conditions as shall be established by the Committee, provided, however, that such terms and conditions are (i) not inconsistent with the Plan, and (ii) to the extent a Restricted Stock Unit issued under the Plan is subject to Section 409A of the Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or other guidance issued thereunder.  The grant of a Restricted Stock Unit may provide that the holder may be paid for the value of the Restricted Stock Unit either in cash or in shares of Common Stock, or a combination thereof. Restricted Stock Units shall be subject to such restrictions as the Committee determines, including, without limitation, (a) a prohibition against sale, assignment, transfer, pledge, hypothecation or other encumbrance for a specified period; or (b) a requirement that the holder forfeit (or in the case of shares of Common Stock or units sold to the Participant, resell to the Company at cost) such shares or units in the event of Termination of Service during the period of restriction.  If the applicable Award Agreement provides that Restricted Stock Units are eligible for dividends or dividend equivalents, then in no event shall such dividend equivalents be paid or distributed until the vesting restrictions of the underlying Restricted Stock Units lapse.
6.7    Performance Awards.
(a)    The Committee may grant Performance Awards to one or more Participants.  The terms and conditions of Performance Awards shall be specified at the time of the grant and may include provisions establishing the performance period, the Performance Goals to be achieved during a performance period, and 

the maximum or minimum settlement values, provided that such terms and conditions are (i) not inconsistent with the Plan and (ii) to the extent a Performance Award issued under the Plan is subject to Section 409A of the Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or other guidance issued thereunder.  If the Performance Award is to be in shares of Common Stock, the Performance Awards may provide for the issuance of the shares of Common Stock at the time of the grant of the Performance Award or at the time of  the certification by the Committee that the Performance Goals for the performance period have been met; provided, however, if shares of Common Stock are issued at the time of the grant of the Performance Award and if, at the end of the performance period, the Performance Goals are not certified by the Committee to have been fully satisfied, then, notwithstanding any other provisions of this Plan to the contrary, the Common Stock shall be forfeited in accordance with the terms of the grant to the extent the Committee determines that the Performance Goals were not met.  The forfeiture of shares of Common Stock issued at the time of the grant of the Performance Award due to failure to achieve the established Performance Goals shall be separate from and in addition to any other restrictions provided for in this Plan that may be applicable to such shares of Common Stock.  Each Performance Award granted to one or more Participants shall have its own terms and conditions. If the applicable Award Agreement provides that Performance Award is eligible for dividends or dividend equivalents, then in no event shall such dividends or dividend equivalents be paid or distributed until the vesting restrictions of the underlying Performance Award lapse.
If the Committee determines, in its sole discretion, that the established performance measures or objectives are no longer suitable because of a change in the Company’s business, operations, corporate structure, or for other reasons that the Committee deemed satisfactory, the Committee may modify the performance measures or objectives and/or the performance period.
(b)    Performance Awards may be valued by reference to the Fair Market Value of a share of Common Stock or according to any formula or method deemed appropriate by the Committee, in its sole discretion, including, but not limited to, achievement of Performance Goals or other specific financial, production, sales or cost performance objectives that the Committee believes to be relevant to the Company’s business and/or remaining in the employ of the Company or a Subsidiary for a specified period of time.  Performance Awards may be paid in cash, shares of Common Stock, or other consideration, or any combination thereof.  If payable in shares of Common Stock, the consideration for the issuance of such shares may be the achievement of the performance objective established at the time of the grant of the Performance Award.  Performance Awards may be payable in a single payment or in installments and may be payable at a specified date or dates or upon attaining the performance objective.  The extent to which any applicable performance objective has been achieved shall be conclusively determined by the Committee.
 6.8    Dividend Equivalent Rights.  The Committee may grant a Dividend Equivalent Right to any Participant, either as a component of another Award or as a separate Award; provided, however, that no Dividend Equivalent Right may be paid or granted with respect to any Stock Option or SAR. The terms and conditions of the Dividend Equivalent Right shall be specified by the grant.  The Committee may provide that Dividend Equivalents (i) will be deemed to have been reinvested in additional Shares or otherwise reinvested (subject to Share availability under Section 5.1 hereof) and subject to the same vesting provisions as provided for the host Award, or (ii) will be credited by the Company to an account for the Participant and accumulated without interest until the date on which the host Award becomes vested, and, in either case, any Dividend Equivalents accrued with respect to forfeited Awards will be reconveyed to the Company without further consideration or any act or action by the Participant. In no event shall Dividend Equivalents be paid or distributed until the vesting restrictions of the underlying Award lapse.  
6.9    Other Awards.  The Committee may grant to any Participant other forms of Awards, based upon, payable in, or otherwise related to, in whole or in part, shares of Common Stock, if the Committee determines that such other form of Award is consistent with the purpose and restrictions of this Plan.  The terms and conditions of such other form of Award shall be specified by the grant.  Such Other Awards may be granted for no cash consideration, for such minimum consideration as may be required by Applicable Law, or for such other consideration as may be specified by the grant. If the applicable Award Agreement provides that such other form of Award is eligible for dividends or dividend  equivalents, then in no event shall such dividends or dividend equivalents be paid or distributed until the vesting restrictions of the underlying Award lapse.

6.10    Performance Goals.  Awards of Restricted Stock, Restricted Stock Units, Performance Award and Other Awards (whether relating to cash or shares of Common Stock) under the Plan may be made subject to the attainment of Performance Goals relating to one or more business criteria which, where applicable, may consist of one or more or any combination of the following criteria: tangible book value; tangible common equity; growth in interest income and expense; net interest margin; efficiency ratio; growth in non-interest income and non-interest expense and ratios to earnings assets; net revenue growth and ratio to earning assets; capital ratios; asset or liability interest rate sensitivity and gap; effective tax rate; deposit growth and composition; liquidity management; securities portfolio (value, yield, spread, maturity, or duration); earning asset growth and composition (loans, securities); non-interest income (including, fees, premiums and commissions, loans, wealth management, treasury management, insurance, funds management); overhead ratios, productivity ratios (including adjusted earnings/full-time equivalent (FTE), pre-tax income/FTE); return on assets; return on equity or stockholders’ equity; economic value of equity (EVE); internal controls; enterprise risk measures (including interest rate, loan concentrations, portfolio composition, credit quality, operational measures, compliance ratings, balance sheet, liquidity, insurance); cost; revenues; revenue ratios (per employee or per customer); ratio of debt to debt plus equity; net borrowing; debt ratings; profit before tax; cash return on capitalization; economic profit; earnings before interest and taxes; earnings before interest, taxes, depreciation and amortization; gross margin; earnings per share (whether on a pre-tax, after-tax, operational or other basis); earnings per share growth; operating income; net income; operating earnings; capital expenditures; expenses or expense levels; economic value added; ratio of operating earnings to capital spending or any other operating ratios; return on capital compared to cost of capital; return on invested capital; cash flow; net cash flow before financing activities; cost reductions; cost ratios (per employee or per customer); free cash flow; net profit; sales; net sales; net asset value per share; the accomplishment of mergers, acquisitions, dispositions, public offerings or similar extraordinary business transactions; sales growth; price of the Company’s Common Stock; market share; inventory levels, inventory turn or shrinkage; total return to stockholders; budget goals; customer growth; total market value; dividend payout; or dividend growth (“Performance Criteria”).  Any Performance Criteria may be used to measure the performance of the Company as a whole or any business unit of the Company and may be measured relative to a peer group or index.  Any Performance Criteria may include or exclude (i) extraordinary, unusual and/or non-recurring items of gain or loss, (ii) gains or losses on the disposition of a business, (iii) changes in tax or accounting regulations or laws, (iv) the effect of a merger or acquisition, as identified in the Company’s quarterly and annual earnings releases, or (v) other similar occurrences.  In all other respects, Performance Criteria shall be calculated in accordance with the Company’s financial statements, under generally accepted accounting principles, or under a methodology established by the Committee prior to the issuance of an Award which is consistently applied and identified in the audited financial statements, including footnotes, or the Compensation Discussion and Analysis section of the Company’s annual report.  
6.11    Tandem Awards.  The Committee may grant two or more Incentives in one Award in the form of a “tandem Award,” so that the right of the Participant to exercise one Incentive shall be canceled if, and to the extent, the other Incentive is exercised.  For example, if a Stock Option and a SAR are issued in a tandem Award, and the Participant exercises the SAR with respect to one hundred (100) shares of Common Stock, the right of the Participant to exercise the related Stock Option shall be canceled to the extent of one hundred (100) shares of Common Stock.
6.12    No Repricing of Stock Options or SARs. The Committee may not “reprice” any Stock Option or SAR without the prior approval of the Company’s shareholders.  For purposes of this Section 6.12, “reprice” means any of the following or any other action that has the same effect:  (i) amending a Stock Option or SAR to reduce its exercise price or base price, directly or indirectly, (ii) canceling a Stock Option or SAR at a time when its exercise price or base price exceeds the Fair Market Value of a share of Common Stock in exchange for cash or a Stock Option, SAR, award of Restricted Stock or other equity award, (iii) repurchasing a Stock Option or SAR for value (in cash or otherwise) from a Participant at a time when its exercise price or base price exceeds the Fair Market Value of a share of Common Stock, or (iii) taking any other action that is treated as a repricing under generally accepted accounting principles, provided that nothing in this Section 6.12 shall prevent the Committee from making adjustments pursuant to Article 11, from exchanging or cancelling Incentives pursuant to Article 12, or substituting Incentives in accordance with Article 14. 
6.13    Recoupment for Restatements.  Notwithstanding any other language in this Plan to the contrary, the Company may recoup all or any portion of any shares or cash paid to a Participant in connection with an Award, in the event of a restatement of the Company’s financial statements as set forth in the Company’s clawback policy, if any, approved by the Company’s Board from time to time.

6.14    Limit on Awards to Outside Directors. With respect to any one calendar year, the aggregate compensation that may be granted to any individual Outside Director, including all meeting fees, cash retainers and retainers granted in the form of Awards, shall not exceed $500,000; provided, however, that the Board may, in its sole discretion, make exceptions to such limit in extraordinary circumstances if it determines in its sole discretion that such exception is advisable.  For purposes of such limit, the value of Awards will be determined based on the aggregate Grant Date fair value of all awards issued to the Outside Director in such year (computed in accordance with applicable financial accounting rules).
ARTICLE 7
AWARD PERIOD; VESTING
7.1    Award Period.  Subject to the other provisions of this Plan, the Committee may, in its discretion, provide that an Incentive may not be exercised in whole or in part for any period or periods of time or beyond any date specified in the Award Agreement.  Except as provided in the Award Agreement, an Incentive may be exercised in whole or in part at any time during its term.  The Award Period for an Incentive shall be reduced or terminated upon Termination of Service.  No Incentive granted under the Plan may be exercised at any time after the end of its Award Period.  No portion of any Incentive may be exercised after the expiration of ten (10) years from its Date of Grant.  However, if an Employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than ten percent (10%) of the combined voting power of all classes of stock of the Company (or any parent or Subsidiary) and an Incentive Stock Option is granted to such Employee, the term of such Incentive Stock Option (to the extent required by the Code at the time of grant) shall be no more than five (5) years from the Date of Grant.
7.2    Vesting.  The Committee, in its sole discretion, shall establish the vesting terms applicable to an Incentive, provided that any such vesting terms shall not be inconsistent with the terms of the Plan, including, without limitation, this Section 7.2. Except with respect to a maximum of five percent (5%) of the Shares Available, any stock-based Incentives which vest on the basis of a Participant’s continued employment with or provision of service to the Company shall have a minimum vesting requirement of one (1) year and any stock-based Incentives which vest upon the attainment of performance goals shall provide for a Performance Period of at least one (1) year (subject to automatic acceleration of vesting only in the event of death or Total and Permanent Disability of the Participant). 
ARTICLE 8
EXERCISE OR CONVERSION OF INCENTIVE
8.1    In General.  A vested Incentive may be exercised or converted, during its Award Period, subject to limitations and restrictions set forth in the Award Agreement.
8.2    Securities Law and Exchange Restrictions.  In no event may an Incentive be exercised or shares of Common Stock issued pursuant to an Award if a necessary listing or quotation of the shares of Common Stock on a stock exchange or inter-dealer quotation system or any registration under state or federal securities laws required under the circumstances has not been accomplished.
8.3    Exercise of Stock Option.
(a)    In General.  If a Stock Option is exercisable prior to the time it is vested, the Common Stock obtained on the exercise of the Stock Option shall be Restricted Stock which is subject to the applicable provisions of the Plan and the Award Agreement.  If the Committee imposes conditions upon exercise, then subsequent to the Date of Grant, the Committee may, in its sole discretion, accelerate the date on which all or any portion of the Stock Option may be exercised.  No Stock Option may be exercised for a fractional share of Common Stock.  The granting of a Stock Option shall impose no obligation upon the Participant to exercise that Stock Option.
(b)    Notice and Payment.  Subject to such administrative regulations as the Committee may from time to time adopt, a Stock Option may be exercised by the delivery of written notice to the Committee setting forth the number of shares of Common Stock with respect to which the Stock Option is to be exercised and the date of exercise thereof (the “Exercise Date”) which shall be at least three (3) days after giving such notice unless an earlier time shall have been mutually agreed upon.  On the Exercise Date, the Participant shall deliver 

to the Company consideration with a value equal to the total Option Price of the shares to be purchased, payable as provided in the Award Agreement, which may provide for payment in any one or more of the following ways:  (a) cash or check, bank draft, or money order payable to the order of the Company, (b) Common Stock (including Restricted Stock) owned by the Participant on the Exercise Date, valued at its Fair Market Value on the Exercise Date, (c) by delivery (including by FAX) to the Company or its designated agent of an executed irrevocable option exercise form together with irrevocable instructions from the Participant to a broker or dealer, reasonably acceptable to the Company, to sell certain of the shares of Common Stock purchased upon exercise of the Stock Option or to pledge such shares as collateral for a loan and promptly deliver to the Company the amount of sale or loan proceeds necessary to pay such purchase price, and/or (d) in any other form of valid consideration that is acceptable to the Committee in its sole discretion.  In the event that shares of Restricted Stock are tendered as consideration for the exercise of a Stock Option, a number of shares of Common Stock issued upon the exercise of the Stock Option equal to the number of shares of Restricted Stock used as consideration therefor shall be subject to the same restrictions and provisions as the Restricted Stock so tendered.
Except as otherwise provided in Section 6.4 hereof (with respect to shares of Restricted Stock) or in the applicable Award Agreement, upon payment of all amounts due from the Participant, the Company shall cause the Common Stock then being purchased to be registered in the Participant’s name (or the person exercising the Participant’s Stock Option in the event of his or her death), but shall not issue certificates for the Common Stock unless the Participant or such other person requests delivery of the certificates for the Common Stock, in writing in accordance with the procedures established by the Committee.  The Company shall deliver certificates to the Participant (or the person exercising the Participant’s Stock Option in the event of his or her death) as soon as administratively practicable following the Company’s receipt of a written request from the Participant or such other person for delivery of the certificates.  Notwithstanding the forgoing, if the Participant has exercised an Incentive Stock Option, the Company may at its option retain physical possession of the certificate evidencing the shares acquired upon exercise until the expiration of the holding periods described in Section 422(a)(1) of the Code.  Any obligation of the Company to deliver shares of Common Stock shall, however, be subject to the condition that, if at any time the Committee shall determine in its discretion that the listing, registration, or qualification of the Stock Option or the Common Stock upon any securities exchange or inter-dealer quotation system or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary as a condition of, or in connection with, the Stock Option or the issuance or purchase of shares of Common Stock thereunder, the Stock Option may not be exercised in whole or in part unless such listing, registration, qualification, consent, or approval shall have been effected or obtained free of any conditions not reasonably acceptable to the Committee.
(c)    Failure to Pay.  Except as may otherwise be provided in an Award Agreement, if the Participant fails to pay for any of the Common Stock specified in such notice or fails to accept delivery thereof, that portion of the Participant’s Stock Option and right to purchase such Common Stock may be forfeited by the Participant.
8.4    SARs.  Subject to the conditions of this Section 8.4 and such administrative regulations as the Committee may from time to time adopt, a SAR may be exercised by the delivery (including by FAX) of written notice to the Committee setting forth the number of shares of Common Stock with respect to which the SAR is to be exercised and the Exercise Date thereof, which shall be at least three (3) days after giving such notice unless an earlier time shall have been mutually agreed upon.  Subject to the terms of the Award Agreement and only if permissible under Section 409A of the Code and the regulations or other guidance issued thereunder (or, if not so permissible, at such time as permitted by Section 409A of the Code and the regulations or other guidance issued thereunder), the Participant shall receive from the Company in exchange therefor in the discretion of the Committee, and subject to the terms of the Award Agreement:
(a)    cash in an amount equal to the excess (if any) of the Fair Market Value (as of the Exercise Date, or if provided in the Award Agreement, conversion, of the SAR) per share of Common Stock over the SAR Price per share specified in such SAR, multiplied by the total number of shares of Common Stock of the SAR being surrendered;

(b)    that number of shares of Common Stock having an aggregate Fair Market Value (as of the Exercise Date, or if provided in the Award Agreement, conversion, of the SAR) equal to the amount of cash otherwise payable to the Participant, with a cash settlement to be made for any fractional share interests; or
(c)    the Company may settle such obligation in part with shares of Common Stock and in part with cash.
The distribution of any cash or Common Stock pursuant to the foregoing sentence shall be made at such time as set forth in the Award Agreement. 
8.5    Disqualifying Disposition of Incentive Stock Option.  If shares of Common Stock acquired upon exercise of an Incentive Stock Option are disposed of by a Participant prior to the expiration of either two (2) years from the Date of Grant of such Stock Option or one (1) year from the transfer of shares of Common Stock to the Participant pursuant to the exercise of such Stock Option, or in any other disqualifying disposition within the meaning of Section 422 of the Code, such Participant shall notify the Company in writing of the date and terms of such disposition.  A disqualifying disposition by a Participant shall not affect the status of any other Stock Option granted under the Plan as an Incentive Stock Option within the meaning of Section 422 of the Code.
ARTICLE 9
AMENDMENT OR DISCONTINUANCE
Subject to the limitations set forth in this Article 9, the Board may at any time and from time to time, without the consent of the Participants, alter, amend, revise, suspend, or discontinue the Plan in whole or in part; provided, however, that no amendment for which stockholder approval is required either (i) by any securities exchange or inter-dealer quotation system on which the Common Stock is listed or traded or (ii) in order for the Plan and Incentives awarded under the Plan to continue to comply with Sections  421 and 422 of the Code, including any successors to such Sections, or other Applicable Law, shall be effective unless such amendment shall be approved by the requisite vote of the stockholders of the Company entitled to vote thereon.  Any such amendment shall, to the extent deemed necessary or advisable by the Committee, be applicable to any outstanding Incentives theretofore granted under the Plan, notwithstanding any contrary provisions contained in any Award Agreement.  In the event of any such amendment to the Plan, the holder of any Incentive outstanding under the Plan shall, upon request of the Committee and as a condition to the exercisability thereof, execute a conforming amendment in the form prescribed by the Committee to any Award Agreement relating thereto.  Notwithstanding anything contained in this Plan to the contrary, unless required by law, no action contemplated or permitted by this Article 9 shall adversely affect any rights of Participants or obligations of the Company to Participants with respect to any Incentive theretofore granted under the Plan without the consent of the affected Participant.
ARTICLE 10
TERM
The Plan shall be effective from the Effective Date.  Unless sooner terminated by action of the Board, the Plan will terminate on April 19, 2032, but Incentives granted before that date will continue to be effective in accordance with their terms and conditions. Notwithstanding the foregoing, no Incentive Stock Options may be granted more than ten (10) years after the Effective Date.
ARTICLE 11
CAPITAL ADJUSTMENTS
In the event that any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization, stock split, reverse stock split, rights offering, reorganization, merger, consolidation, split-up, spin-off, split-off, combination, subdivision, repurchase, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, or other similar corporate transaction or event affects the fair value of an Award, then the Committee shall adjust any or all of the following so that the fair value of the Award immediately after the transaction or event is equal to the fair value of the Award immediately prior to the transaction or event (i) the number of shares and type of Common Stock (or the securities or property) which thereafter may be made the subject of Awards, (ii) the number of shares and 

type of Common Stock (or other securities or property) subject to outstanding Awards, (iii) the Option Price of each outstanding Award, (iv) the amount, if any, the Company pays for forfeited shares of Common Stock in accordance with Section 6.4, and (v) the number of or SAR Price of shares of Common Stock then subject to outstanding SARs previously granted and unexercised under the Plan, to the end that the same proportion of the Company’s issued and outstanding shares of Common Stock in each instance shall remain subject to exercise at the same aggregate SAR Price; provided however, that the number of shares of Common Stock (or other securities or property) subject to any Award shall always be a whole number.  Notwithstanding the foregoing, no such adjustment shall be made or authorized to the extent that such adjustment would cause the Plan or any Stock Option to violate Section 422 of the Code or Section 409A of the Code.  Such adjustments shall be made in accordance with the rules of any securities exchange, stock market, or stock quotation system to which the Company is subject.
Upon the occurrence of any such adjustment, the Company shall provide notice to each affected Participant of its computation of such adjustment which shall be conclusive and shall be binding upon each such Participant.
ARTICLE 12
RECAPITALIZATION, MERGER AND CONSOLIDATION
12.1    No Effect on Company’s Authority.  The existence of this Plan and Incentives granted hereunder shall not affect in any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital structure and its business, or any Change in Control, or any merger or consolidation of the Company, or any issuance of bonds, debentures, preferred or preference stocks ranking prior to or otherwise affecting the Common Stock or the rights thereof (or any rights, options, or warrants to purchase same), or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.
12.2    Conversion of Incentives Where Company Survives.  Subject to any required action by the stockholders and except as otherwise provided by Section 12.4 hereof or as may be required to comply with Section 409A of the Code and the regulations or other guidance issued thereunder, if the Company shall be the surviving or resulting corporation in any merger, consolidation or share exchange, any Incentive granted hereunder shall pertain to and apply to the securities or rights (including cash, property, or assets) to which a holder of the number of shares of Common Stock subject to the Incentive would have been entitled.
12.3    Exchange or Cancellation of Incentives Where Company Does Not Survive.  Except as otherwise provided by Section 12.4 hereof or as may be required to comply with Section 409A of the Code and the regulations or other guidance issued thereunder, in the event of any Change in Control, merger, consolidation or share exchange pursuant to which the Company is not the surviving or resulting corporation, there shall be substituted for each share of Common Stock subject to the unexercised portions of outstanding Incentives, that number of shares of each class of stock or other securities or that amount of cash, property, or assets of the surviving, resulting or consolidated company which were distributed or distributable to the stockholders of the Company in respect to each share of Common Stock held by them, such outstanding Incentives to be thereafter exercisable for such stock, securities, cash, or property in accordance with their terms (a “Substituted Incentive”); provided, however, that the terms and conditions of such Substituted Incentive shall be approved by the Committee or the Board and provided further, that such Substituted Incentive shall provide that if within two years after the effective date of the transaction, a Participant’s employment is terminated without Cause or the Participant resigns for Good Reason, then (i) any time-based vesting or exercise restrictions on such Participant’s Substituted Incentives shall lapse; and (ii) the payout opportunities attainable under such Participant’s performance-based Substituted Incentives shall be deemed to have been earned as of the date of termination based upon the actual level of achievement of all relevant performance goals against target as of the date of such termination and there shall be prorata payout to such Participant within thirty (30) days following the date of termination of employment based upon the length of time within the performance period that has elapsed prior to the date of termination of employment. 
12.4    Cancellation of Incentives.  Notwithstanding the provisions of Sections 12.2 and 12.3 hereof, and except as may be required to comply with Section 409A of the Code and the regulations or other guidance issued thereunder, in the event the acquiror or the surviving or resulting corporation does not agree to assume the Incentives, all Incentives granted hereunder may be canceled by the Company, in its sole discretion, as of the effective date of any 

Change in Control, merger, consolidation or share exchange, or any issuance of bonds, debentures, preferred or preference stocks ranking prior to or otherwise affecting the Common Stock or the rights thereof (or any rights, options, or warrants to purchase same), or of any proposed sale of all or substantially all of the assets of the Company, or of any dissolution or liquidation of the Company, by either:
(a)    giving notice to each holder thereof or his or her personal representative of its intention to cancel those Incentives for which the issuance of shares of Common Stock involved payment by the Participant for such shares, and permitting the purchase during the thirty (30) day period next preceding such effective date of any or all of the shares of Common Stock subject to such outstanding Incentives, including in the Board’s discretion some or all of the shares as to which such Incentives would not otherwise be vested and exercisable; or
(b)    in the case of Incentives that are either (i) settled only in shares of Common Stock, or (ii) at the election of the Participant, settled in shares of Common Stock, paying the holder thereof an amount equal to a reasonable estimate of the difference between the net amount per share payable in such transaction or as a result of such transaction, and the price per share of such Incentive to be paid by the Participant (hereinafter the “Spread”), multiplied by the number of shares subject to the Incentive.  In cases where the shares constitute, or would after exercise, constitute Restricted Stock, the Company, in its discretion, may include some or all of those shares in the calculation of the amount payable hereunder.  In estimating the Spread, appropriate adjustments to give effect to the existence of the Incentives shall be made, such as deeming the Incentives to have been exercised, with the Company receiving the exercise price payable thereunder, and treating the shares receivable upon exercise of the Incentives as being outstanding in determining the net amount per share.  In cases where the proposed transaction consists of the acquisition of assets of the Company, the net amount per share shall be calculated on the basis of the net amount receivable with respect to shares of Common Stock upon a distribution and liquidation by the Company after giving effect to expenses and charges, including but not limited to taxes, payable by the Company before such liquidation could be completed.
An Award that by its terms would be fully vested or exercisable upon a Change in Control will be considered vested or exercisable for purposes of Section 12.4(a) hereof.  Notwithstanding the foregoing, with respect to Performance Awards, the Committee only may approve the acceleration of vesting and/or cash-out if (i) the amount payable or vested is linked to the achievement of the Performance Goals for such Performance Award as of the date of the Change in Control and/or (ii) the amount to be paid or vested under the Performance Award on the Change in Control is pro-rated based on the time elapsed in the applicable performance period between the Performance Award’s Date of Grant and the Change in Control.
ARTICLE 13
LIQUIDATION OR DISSOLUTION
Subject to Section 12.4 hereof, in case the Company shall, at any time while any Incentive under this Plan shall be in force and remain unexpired, (i) sell all or substantially all of its property, or (ii) dissolve, liquidate, or wind up its affairs, then each Participant shall be entitled to receive, in lieu of each share of Common Stock of the Company which such Participant would have been entitled to receive under the Incentive, the same kind and amount of any securities or assets as may be issuable, distributable, or payable upon any such sale, dissolution, liquidation, or winding up with respect to each share of Common Stock of the Company.  If the Company shall, at any time prior to the expiration of any Incentive, make any partial distribution of its assets, in the nature of a partial liquidation, whether payable in cash or in kind (but excluding the distribution of a cash dividend payable out of earned surplus and designated as such) and an adjustment is determined by the Committee to be appropriate to prevent the dilution of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, make such adjustment in accordance with the provisions of Article 11 hereof.
ARTICLE 14
INCENTIVES IN SUBSTITUTION FOR
INCENTIVES GRANTED BY OTHER ENTITIES
Incentives may be granted under the Plan from time to time in substitution for similar instruments held by employees, independent contractors or directors of a corporation, partnership, or limited liability company who become 

or are about to become Employees, Contractors or Outside Directors of the Company or any Subsidiary as a result of a merger or consolidation of the employing corporation with the Company, the acquisition by the Company of equity of the employing entity, or any other similar transaction pursuant to which the Company becomes the successor employer.  The terms and conditions of the substitute Incentives so granted may vary from the terms and conditions set forth in this Plan to such extent as the Committee at the time of grant may deem appropriate to conform, in whole or in part, to the provisions of the incentives in substitution for which they are granted.
ARTICLE 15
MISCELLANEOUS PROVISIONS
15.1    Investment Intent.  The Company may require that there be presented to and filed with it by any Participant under the Plan, such evidence as it may deem necessary to establish that the Incentives granted or the shares of Common Stock to be purchased or transferred are being acquired for investment and not with a view to their distribution.
15.2    No Right to Continued Employment.  Neither the Plan nor any Incentive granted under the Plan shall confer upon any Participant any right with respect to continuance of employment by the Company or any Subsidiary.
15.3    Indemnification of Board and Committee.  No member of the Board or the Committee, nor any officer or Employee of the Company acting on behalf of the Board or the Committee, shall be personally liable for any action, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Board and the Committee, each officer of the Company, and each Employee of the Company acting on behalf of the Board or the Committee shall, to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such action, determination, or interpretation to the fullest extent provided by law.  Except to the extent required by any unwaiveable requirement under Applicable Law, no member of the Board or the Committee (and no Subsidiary of the Company) shall have any duties or liabilities, including without limitation any fiduciary duties, to any Participant (or any Person claiming by and through any Participant) as a result of this Plan, any Award Agreement or any Claim arising hereunder and, to the fullest extent permitted under Applicable Law, each Participant (as consideration for receiving and accepting an Award Agreement) irrevocably waives and releases any right or opportunity such Participant might have to assert (or participate or cooperate in) any Claim against any member of the Board or the Committee and any Subsidiary of the Company arising out of this Plan.
15.4    Effect of the Plan.  Neither the adoption of this Plan nor any action of the Board or the Committee shall be deemed to give any person any right to be granted an Award or any other rights except as may be evidenced by an Award Agreement, or any amendment thereto, duly authorized by the Committee and executed on behalf of the Company, and then only to the extent and upon the terms and conditions expressly set forth therein.
15.5    Compliance With Other Laws and Regulations.  Notwithstanding anything contained herein to the contrary, the Company shall not be required to sell or issue shares of Common Stock under any Incentive if the issuance thereof would constitute a violation by the Participant or the Company of any provisions of any law or regulation of any governmental authority or any national securities exchange or inter-dealer quotation system or other forum in which shares of Common Stock are quoted or traded (including without limitation Section 16 of the Exchange Act); and, as a condition of any sale or issuance of shares of Common Stock under an Incentive, the Committee may require such agreements or undertakings, if any, as the Committee may deem necessary or advisable to assure compliance with any such law or regulation.  The Plan, the grant and exercise of Incentives hereunder, and the obligation of the Company to sell and deliver shares of Common Stock, shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any government or regulatory agency as may be required.
15.6    Foreign Participation.  To assure the viability of Awards granted to Participants employed in foreign countries, the Committee may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy or custom.  Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative versions of, this Plan as it determines is necessary or appropriate for such purposes.  Any such amendment, restatement or alternative versions that the Committee approves for purposes of using this Plan in a foreign country will not affect the terms of this Plan for any other country.

15.7    Tax Requirements.  The Company or, if applicable, any Subsidiary (for purposes of this Section 15.7, the term “Company” shall be deemed to include any applicable Subsidiary), shall have the right to deduct from all amounts paid in cash or other form in connection with the Plan, any Federal, state, local, or other taxes required by law to be withheld in connection with an Award granted under this Plan.  The Company may, in its sole discretion, also require the Participant receiving shares of Common Stock issued under the Plan to pay the Company the amount of any taxes that the Company is required to withhold in connection with the Participant’s income arising with respect to the Award.  Such payments shall be required to be made when requested by Company and may be required to be made prior to the delivery of any certificate representing shares of Common Stock.  Such payment may be made (i) by the delivery of cash to the Company in an amount that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding obligations of the Company; (ii) if the Company, in its sole discretion, so consents in writing, by the actual delivery by the exercising Participant to the Company of shares of Common Stock, which shares so delivered have an aggregate Fair Market Value that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding payment; (iii) unless otherwise determined by the Committee at the time the Award is granted or thereafter, by withholding from the Award a number of shares having an aggregate Fair Market Value on the date of withholding equal to the amount required to be withheld in accordance with applicable tax requirements (up to the maximum individual statutory rate in the applicable jurisdiction as may be permitted under then-current accounting principles to qualify for equity classification), in accordance with such procedures as the Committee establishes; or (iv) by any combination of (i), (ii), or (iii).  The Company may, in its sole discretion, withhold any such taxes from any other cash remuneration otherwise paid by the Company to the Participant.  The Committee may in the Award Agreement impose any additional tax requirements or provisions that the Committee deems necessary or desirable.
15.8    Assignability.  Incentive Stock Options may not be transferred, assigned, pledged, hypothecated or otherwise conveyed or encumbered other than by will or the laws of descent and distribution and may be exercised during the lifetime of the Participant only by the Participant or the Participant’s legally authorized representative, and each Award Agreement in respect of an Incentive Stock Option shall so provide.  The designation by a Participant of a beneficiary will not constitute a transfer of the Stock Option.  The Committee may waive or modify any limitation contained in the preceding sentences of this Section 15.8 that is not required for compliance with Section 422 of the Code.
Except as otherwise provided herein, Awards may not be transferred, assigned, pledged, hypothecated or otherwise conveyed or encumbered other than by will or the laws of descent and distribution.  Notwithstanding the foregoing, the Committee may, in its discretion, authorize all or a portion of a Nonqualified Stock Option or SAR to be granted to a Participant on terms which permit transfer by such Participant to (i) the spouse (or former spouse), children or grandchildren of the Participant (“Immediate Family Members”), (ii) a trust or trusts for the exclusive benefit of such Immediate Family Members, (iii) a partnership in which the only partners are (1) such Immediate Family Members and/or (2) entities which are controlled by Immediate Family Members, (iv) an entity exempt from federal income tax pursuant to Section 501(c)(3) of the Code or any successor provision, or (v) a split interest trust or pooled income fund described in Section 2522(c)(2) of the Code or any successor provision, provided that (x) there shall be no consideration for any such transfer, (y) the Award Agreement pursuant to which such Nonqualified Stock Option or SAR is granted must be approved by the Committee and must expressly provide for transferability in a manner consistent with this Section, and (z) subsequent transfers of transferred Nonqualified Stock Options or SARs shall be prohibited except those by will or the laws of descent and distribution.
Following any transfer, any such Award shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer, provided that for purposes of Articles 8, 9, 11, 13 and 15 hereof the term “Participant” shall be deemed to include the transferee.  The events of Termination of Service shall continue to be applied with respect to the original Participant, following which, with respect to any Award that is a Nonqualified Stock Option and SAR, the Award shall be exercisable or convertible by the transferee only to the extent and for the periods specified in the Award Agreement.  The Committee and the Company shall have no obligation to inform any transferee of an Award of any expiration, termination, lapse or acceleration of such Award.  The Company shall have no obligation to register with any federal or state securities commission or agency any Common Stock issuable or issued under an Award that has been transferred by a Participant under this Section 15.8.

15.9    Use of Proceeds.  Proceeds from the sale of shares of Common Stock pursuant to Incentives granted under this Plan shall constitute general funds of the Company.
15.10    Legend.  Each certificate representing shares of Restricted Stock issued to a Participant shall bear the following legend, or a similar legend deemed by the Company to constitute an appropriate notice of the provisions hereof (any such certificate not having such legend shall be surrendered upon demand by the Company and so endorsed):
On the face of the certificate:
“Transfer of this stock is restricted in accordance with conditions printed on the reverse of this certificate.”
On the reverse:
“The shares of stock evidenced by this certificate are subject to and transferable only in accordance with that certain Texas Capital Bancshares, Inc. 2022 Long-Term Incentive Plan, a copy of which is on file at the principal office of the Company.  No transfer or pledge of the shares evidenced hereby may be made except in accordance with and subject to the provisions of said Plan.  By acceptance of this certificate, any holder, transferee or pledgee hereof agrees to be bound by all of the provisions of said Plan.”
The following legend shall be inserted on a certificate evidencing Common Stock issued under the Plan if the shares were not issued in a transaction registered under the applicable federal and state securities laws:
“Shares of stock represented by this certificate have been acquired by the holder for investment and not for resale, transfer or distribution, have been issued pursuant to exemptions from the registration requirements of applicable state and federal securities laws, and may not be offered for sale, sold or transferred other than pursuant to effective registration under such laws, or in transactions otherwise in compliance with such laws, and upon evidence satisfactory to the Company of compliance with such laws, as to which the Company may rely upon an opinion of counsel satisfactory to the Company.”
15.11    Governing Law.  The Plan shall be governed by, construed, and enforced in accordance with the laws of the State of Delaware (excluding any conflict of laws, rule or principle of Delaware law that might refer the governance, construction, or interpretation of this Plan to the laws of another state).  A Participant’s sole remedy for any Claim shall be against the Company, and no Participant shall have any claim or right of any nature against any Subsidiary of the Company or any stockholder or existing or former director, officer or Employee of the Company or any Subsidiary of the Company.  Each Award Agreement shall require the Participant to release and covenant not to sue any Person other than the Company over any Claim.  The individuals and entities described above in this Section 15.11 (other than the Company) shall be third-party beneficiaries of this Plan for purposes of enforcing the terms of this Section 15.11.
A copy of this Plan shall be kept on file in the principal office of the Company in Dallas, Texas.
***************
IN WITNESS WHEREOF, the Company has caused this instrument to be executed as of April 19, 2022, by its President and Chief Executive Officer pursuant to prior action taken by the Board.
TEXAS CAPITAL BANCSHARES, INC.

By: /s/ Rob C. Holmes__________________________
Rob C. Holmes
President and Chief Executive OfficerExhibit 10.1

 

EXECUTION VERSION

 

INCREMENTAL ASSUMPTION AGREEMENT

 

THIS
INCREMENTAL ASSUMPTION AGREEMENT (this “Agreement”) dated and effective as of April 19, 2022 (the “Effective
Date”), is among ELANCO ANIMAL HEALTH INCORPORATED, an Indiana corporation (the “Company”), ELANCO US INC.,
a Delaware corporation (together with the Company, collectively, the “Borrowers” and each, individually, a “Borrower”),
THE SUBSIDIARY LOAN PARTIES party hereto, FARM CREDIT MID-AMERICA, PCA (“FCMA”) and each other person (if any)
party hereto as a 2022 Incremental Term Lender (collectively, the “2022 Incremental Term Lenders” and each, individually,
a “2022 Incremental Term Lender”) and GOLDMAN SACHS BANK USA (“Goldman
Sachs”), as term facility agent (in such capacity, the “Term Loan Administrative
Agent”).

 

Recitals:

 

A.            The
Borrowers, the lenders party thereto, the Term Loan Administrative Agent, Goldman Sachs Bank USA, as collateral agent and security trustee,
and JPMorgan Chase Bank, N.A., as revolving facility agent, have entered into that certain Credit Agreement dated as of August 1,
2020 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”). Capitalized
terms used and not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement.

 

B.            Pursuant
to Section 2.21 of the Credit Agreement, the Borrowers have requested an Incremental Term Facility in an aggregate principal
amount of $250,000,000.

 

C.            Subject
to the terms and conditions set forth below, each 2022 Incremental Term Lender is willing to provide commitments in respect of such Incremental
Term Facility, and each of the Term Loan Administrative Agent and each 2022 Incremental Term Lender have agreed to amend and supplement
the Credit Agreement as specifically set forth herein in connection therewith.

 

In furtherance of the foregoing,
the parties hereto agree as follows:

 

Section 1.       2022
Incremental Term Facility.

 

(a)            2022
Incremental Term Loan Commitments. Subject to the terms and conditions set forth herein, each 2022 Incremental Term Lender agrees
to make a single term loan denominated in Dollars (each such term loan, a “2022 Incremental Term Loan”) to the Borrowers
on the Funding Date (as defined below) in a principal amount not to exceed the commitment of such 2022 Incremental Term Lender as set
forth on Schedule 1 attached hereto (such commitment, with respect to each 2022 Incremental Term Lender, its “2022 Incremental
Term Loan Commitment”). Amounts of 2022 Incremental Term Loans borrowed hereunder that are repaid or prepaid may not be reborrowed.

 

    	 		 

     

    

 

(b)            Availability/Borrowing.
The borrowing of the 2022 Incremental Term Loans shall be funded in a single draw made on a Business Day occurring on or after the Effective
Date and on or prior to June 30, 2022 (such date, the “2022 Incremental Term Loan Commitment Termination Date”
and the date of such borrowing, the “Funding Date”) and shall be (i) subject to the occurrence of the Effective
Date and the satisfaction of each of the conditions set forth in Section 4.01 of the Credit Agreement and (ii) subject
to a Borrower notifying the Term Loan Administrative Agent of such request electronically (A) in the case of a SOFR Borrowing, not
later than 2:00 p.m., Local Time, three (3) U.S. Government Securities Business Days before the date of the proposed Borrowing or
(B) in the case of an ABR Borrowing, not later than 10:00 a.m. Local Time, on the Business Day of the proposed Borrowing. The
written Borrowing Request (which shall be substantially in the form of Exhibit D-1 to the Credit Agreement with appropriate
modifications to reflect the availability of Adjusted Term SOFR) shall specify the following information in compliance with Section 2.02
of the Credit Agreement: (1) the aggregate amount of such Borrowing, (2) the date of such Borrowing, which shall be a Business
Day, (3) whether such Borrowing is to be a Term SOFR Borrowing or an ABR Borrowing, (4) in the case of a Term SOFR Borrowing,
the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest
Period” and (5) the location and number of the applicable Borrower’s account to which funds are to be disbursed; provided
that (x) the parties hereto acknowledge and agree that the same Borrowing Minimum and Borrowing Multiple applicable to Eurocurrency
Loans shall also be applicable to SOFR Term Loans and each reference in the Credit Agreement to such terms shall be deemed to apply to
SOFR Term Loans and (y) that the Borrowers shall not be entitled to request any SOFR Borrowing that, if made, would result in more
than 10 Eurocurrency Borrowings and SOFR Borrowings, in the aggregate, outstanding under all Term Facilities at any time. If no election
as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing. If no Interest Period is specified with
respect to any requested Term SOFR Borrowing, then the Borrowers shall be deemed to have selected an Interest Period of one month’s
duration. Promptly following receipt of a Borrowing Request in accordance with this Section 1(b), the Term Loan Administrative
Agent shall advise each 2022 Incremental Term Lender of the details thereof and of the amount of such Incremental Term Lender’s
Loan to be made as part of the requested Borrowing. The 2022 Incremental Term Loan Commitment of each 2022 Incremental Term Lender will
terminate on the earlier of (i) 5:00 p.m. (Eastern time) on the 2022 Incremental Term Loan Commitment Termination Date and (ii) the
occurrence of the Funding Date after giving effect to the funding of the 2022 Incremental Term Loans to occur on such date. The provisions
of Section 2.06 of the Credit Agreement shall be applicable to the 2022 Incremental Term Loans with any reference therein
to Eurocurrency Loans also applying to SOFR Term Loans.

 

(c)            Repayment
of 2022 Incremental Term Loans. The Borrowers shall repay the 2022 Incremental Term Loans on the last day of each March, June, September and
December of each year (commencing on December 31, 2022) and on April 19, 2029 (the “2022 Incremental Term Loan
Maturity Date”) or, if any such date is not a Business Day, on the next preceding Business Day, in an aggregate principal amount
of such 2022 Incremental Term Loans equal to (i) in the case of quarterly payments due prior to the 2022 Incremental Term Loan Maturity
Date, an amount equal to 0.25% of the aggregate principal amount of the 2022 Incremental Term Loans outstanding immediately after the
Funding Date and (ii) in the case of such payment due on the 2022 Incremental Term Loan Maturity Date, an amount equal to the then
unpaid principal amount of such 2022 Incremental Term Loans outstanding.

 

(d)            Prepayment
of 2022 Incremental Term Loans. The 2022 Incremental Term Loans shall be subject to the voluntary and mandatory prepayment provisions
set forth in Sections 2.10 and 2.11 of the Credit Agreement and all prepayments thereof shall be made in accordance therewith
(and, subject to the terms thereof, shall participate on a pro rata basis with the other Term Loans with respect to mandatory prepayments),
except that references therein to Eurocurrency Loans shall be deemed to also apply to SOFR Term Loans.

 

    	 	2	 

     

    

 

(e)            Interest.

 

(i)            The
2022 Incremental Term Loans shall bear interest at the ABR plus the Applicable Margin or the applicable Adjusted Term SOFR for
the Interest Period in effect therefor plus the Applicable Margin, in each case as selected by the Borrowers in accordance with
the terms hereof or the Credit Agreement, as applicable. Any 2022 Incremental Term Loan that is an ABR Term Loan (as defined herein) shall
be deemed to be an ABR Term Loan as defined in the Credit Agreement and, except as otherwise provided in the definition of “ABR”
set forth in this Agreement, subject to, and paid in accordance with, the provisions of the Credit Agreement in respect thereto (including,
without limitation, Sections 2.13 through 2.17). The 2022 Incremental Term Loans comprising each SOFR Borrowing shall
bear interest at the applicable Adjusted Term SOFR for the Interest Period in effect for such Borrowing plus the Applicable Margin,
and such interest shall be deemed to be interest payable under Section 2.13 of the Credit Agreement and subject to, and paid
in accordance with, the provisions thereof (including, without limitation, subsections (c), (d) and (e) thereof), except that
(A) the reference to Interest Payment Date set forth in Section 2.13(d)(i) of the Credit Agreement shall be deemed
to include “Interest Payment Date” as defined herein and (B) in the event of any conversion of any SOFR Term Loan prior
to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion.
The applicable ABR, Adjusted Term SOFR or Term SOFR shall be determined by the Term Loan Administrative Agent, and such determination
shall be conclusive absent manifest error.

 

(ii)            The
provisions of Section 2.07 of the Credit Agreement shall be applicable to the 2022 Incremental Term Loans with any reference
therein to Eurocurrency Loans also applying to SOFR Term Loans and each written Interest Election Request in respect thereof shall be
substantially in the form of Exhibit E to the Credit Agreement with appropriate modifications to reflect the availability
of Adjusted Term SOFR.

 

(f)            Inability
to Determine Rates Subject to Section 1(k), if, prior to the first day of any Interest Period for any SOFR
Term Loan, (i) the Term Loan Administrative Agent determines (which determination shall be conclusive and binding absent
manifest error) that “ Adjusted Term SOFR” cannot be determined pursuant to the definition thereof, or (ii) the
Required Facility Lenders determine that for any reason in connection with any request for a SOFR Term Loan or a conversion thereto
or a continuation thereof that Adjusted Term SOFR for any requested Interest Period with respect to a proposed SOFR Term Loan does
not adequately and fairly reflect the cost to such Lenders of making and maintaining such Loan, and the Required Facility Lenders
have provided notice of such determination to the Term Loan Administrative Agent, then, in either event, the Term Loan
Administrative Agent will promptly so notify the Borrowers and each 2022 Incremental Term Lender. Upon notice thereof by the Term
Loan Administrative Agent to the Borrowers, any obligation of the 2022 Incremental Term Lenders to make SOFR Term Loans, and any
right of the Borrowers to continue SOFR Term Loans or to convert ABR Term Loans to SOFR Term Loans, shall be suspended (to the
extent of the affected SOFR Term Loans or affected Interest Periods) until the Term Loan Administrative Agent (with respect to
clause (ii), at the instruction of the Required Facility Lenders) revokes such notice. Upon receipt of such notice, (i) the
Borrowers may revoke any pending request for a borrowing of, conversion to or continuation of SOFR Term Loans (to the extent of the
affected SOFR Term Loans or affected Interest Periods) or, failing that, the Borrowers will be deemed to have converted any such
request into a request for a Borrowing of or conversion to ABR Term Loans in the amount specified therein and (ii) any
outstanding affected SOFR Term Loans will be deemed to have been converted into ABR Term Loans at the end of the applicable Interest
Period. Upon any such conversion, the Borrowers shall also pay accrued interest on the amount so converted, together with any
additional amounts required pursuant to Section 1(g). Subject to Section 1(k), if the Term Loan
Administrative Agent determines (which determination shall be conclusive and binding absent manifest error) that “Adjusted
Term SOFR” cannot be determined pursuant to the definition thereof on any given day, the interest rate on ABR Term Loans shall
be determined by the Term Loan Administrative Agent without reference to clause (c) of the definition of “ABR”
until the Term Loan Administrative Agent revokes such determination.

 

    	 	3	 

     

    

 

(g)            Compensation
for Losses. In the event of (i) the payment of any principal of any SOFR Term Loan other than on the last day of the Interest
Period applicable thereto (including as a result of an Event of Default), (ii) the conversion of any SOFR Term Loan other than on
the last day of the Interest Period applicable thereto (including as a result of an Event of Default), (iii) the failure to borrow
(other than due to the default of the relevant Lender), convert, continue or prepay any SOFR Term Loan on the date specified in any notice
delivered pursuant hereto, or (iv) the assignment of any SOFR Term Loan other than on the last day of the Interest Period applicable
thereto as a result of a request by the Borrowers pursuant to Section 1(j)(ii), then, in any such event, the Borrowers shall
compensate each 2022 Incremental Term Lender for any loss, cost and expense incurred by such 2022 Incremental Term Lender attributable
to such event, including any loss, cost or expense arising from the liquidation or redeployment of funds or from any fees payable (excluding
loss of margin or anticipated profits). A certificate of any 2022 Incremental Term Lender setting forth any amount or amounts that such
Lender is entitled to receive pursuant to this Section and the basis for determining such amount shall be delivered to the Borrowers
and shall be conclusive absent manifest error. The Borrowers shall pay such Lender the amount shown as due on any such certificate within
15 days after receipt thereof. All references in the Credit Agreement to Section 2.16 of the Credit Agreement shall be deemed
to include this Section 1(g) for purposes of addressing SOFR Term Loans, as appropriate.

  

(h)           Illegality.
 If any 2022 Incremental Term Lender reasonably determines that any Law has made it unlawful, or that any Governmental Authority
has asserted after the Effective Date that it is unlawful, for any 2022 Incremental Term Lender or its applicable Lending Office to make,
maintain or fund Loans whose interest is determined by reference to SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR,
or to determine or charge interest based upon SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR, or any Governmental
Authority has imposed material restrictions on the authority of such 2022 Incremental Term Lender to purchase or sell, or to take deposits
of Dollars in the applicable interbank market then, upon notice thereof by such Lender to the Borrowers (through the Term Loan Administrative
Agent) (an “Illegality Notice”), (i) any obligation of the 2022 Incremental Term Lenders to make SOFR Term Loans,
and any right of the Borrowers to continue SOFR Term Loans or to convert ABR Term Loans to SOFR Term Loans, shall be suspended, and (ii) if
such Illegality Notice asserts the illegality of such Lender making or maintaining ABR Term Loans, the interest rate on which is determined
by reference to the Adjusted Term SOFR component of ABR, the interest rate on such ABR Term Loans shall, if necessary to avoid such illegality,
be determined by the Term Loan Administrative Agent without reference to clause (c) of the definition of “ABR”, in each
case until each affected Lender notifies the Term Loan Administrative Agent and the Borrowers that the circumstances giving rise to such
determination no longer exist. Upon receipt of an Illegality Notice, (x) the Borrowers shall, if necessary to avoid such illegality,
upon demand from any 2022 Incremental Term Lender (with a copy to the Term Loan Administrative Agent), prepay or, if applicable, convert
all SOFR Term Loans to ABR Term Loans (the interest rate on which ABR Term Loans shall, if necessary to avoid such illegality, be determined
by the Term Loan Administrative Agent without reference to clause (c) of the definition of “ABR”), on the last day of
the Interest Period therefor, if all affected 2022 Incremental Term Lenders may lawfully continue to maintain such SOFR Term Loans to
such day, or immediately, if any 2022 Incremental Term Lender may not lawfully continue to maintain such SOFR Term Loans to such day,
and (y) if such Illegality Notice asserts the illegality of such Lender determining or charging interest rates based upon Adjusted
Term SOFR, the Administrative Agent shall during the period of such suspension compute ABR applicable to such Lender without reference
to the Adjusted Term SOFR component thereof, in each case until the Term Loan Administrative Agent is advised in writing by each affected
2022 Incremental Term Lender that it is no longer illegal for such Lender to determine or charge interest rates based upon SOFR, the
Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR. Upon any such prepayment or conversion, the Borrowers shall also pay accrued
interest on the amount so prepaid or converted, together with any additional amounts required pursuant to Section 1(g).

 

    	 	4	 

     

    

 

(i)            Increased
Costs.

 

(i)            Increased
Costs Generally. Without limiting any other provisions of the Loan Documents applicable to Loans generally (including, without limitation,
Section 2.15 of the Credit Agreement), if any Change in Law shall:

 

(A)            impose,
modify or deem applicable any reserve (including pursuant to regulations issued from time to time by the Federal Reserve Board for determining
the maximum reserve requirement (including any emergency, special, supplemental or other marginal reserve requirement) with respect to
eurocurrency funding (currently referred to as “Eurocurrency liabilities” in Regulation D)), special deposit, compulsory
loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated
in by, any 2022 Incremental Term Lender;

 

(B)            subject
any 2022 Incremental Term Lender to any Tax with respect to any 2022 Incremental Term Loan or Loan Document (other than (1) Taxes
indemnifiable under Section 2.17 of the Credit Agreement or (2) Excluded Taxes); or

 

(C)            impose
on any 2022 Incremental Term Lender any other condition, cost or expense (other than Taxes) affecting this Agreement or the Credit Agreement
or 2022 Incremental Term Loans made by such Lender;

 

and the result of any of the foregoing
shall be to increase the cost to such Lender of making, converting to, continuing or maintaining any 2022 Incremental Term Loan or of
maintaining its obligation to make any such 2022 Incremental Term Loan, or to increase the cost to such Lender, or to reduce the amount
of any sum received or receivable by such Lender hereunder (whether of principal, interest or any other amount) then, upon request of
such Lender, the Borrowers will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional
costs incurred or reduction suffered.

 

(ii)            Certificates
for Reimbursement. A certificate of a 2022 Incremental Term Lender setting forth the amount or amounts necessary to compensate such
Lender as specified in paragraph (i) of this Section and delivered to the Borrowers, shall be conclusive absent manifest
error. The Borrowers shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

 

(iii)            Delay
in Requests. Failure or delay on the part of any 2022 Incremental Term Lender to demand compensation pursuant to this Section shall
not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrowers shall not be required
to compensate a 2022 Incremental Term Lender pursuant to this Section for any increased costs incurred or reductions suffered more
than 180 days prior to the date that such Lender notifies the Borrowers of the Change in Law giving rise to such increased costs or reductions,
and of such Lender’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs
or reductions is retroactive, then the 180 day period referred to above shall be extended to include the period of retroactive effect
thereof).

 

(j)            Mitigation
Obligations; Replacement of Lenders.

 

(i)            Designation
of a Different Lending Office. If any 2022 Incremental Term Lender requests compensation under Section 1(i) or delivers
an Illegality Notice pursuant to Section 1(h), then such Lender shall (at the request of the Borrowers) use reasonable efforts
to designate a different Lending Office for funding or booking its 2022 Incremental Term Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the reasonable judgment of such Lender, such designation or assignment
(A) would eliminate or reduce amounts payable pursuant to Section 1(i) or mitigate the applicability of Section 1(h),
as applicable, in the future, and (B) would not subject such Lender to any material unreimbursed cost or expense and would not otherwise
be disadvantageous to such Lender in any material respect. The Borrowers hereby agree to pay all reasonable costs and expenses incurred
by any 2022 Incremental Term Lender in connection with any such designation or assignment.

 

    	 	5	 

     

    

 

(ii)            Replacement
of Lenders. If any 2022 Incremental Term Lender requests compensation under Section 1(i) or delivers an Illegality
Notice pursuant to Section 1(h) and such Lender has declined or is unable to designate a different Lending Office in
accordance with Section 1(j)(i) above, then the Borrowers may, at their sole expense and effort, upon notice to such
Lender and the Term Loan Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject
to the restrictions contained in, and consents required by, Section 9.04 of the Credit Agreement), all of its interests, rights
(other than its existing rights to payments pursuant to Section 1(g) or Section 1(i)) and obligations under
this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender,
if a Lender accepts such assignment); provided that:

 

(A)            such
Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder and under the other Loan Documents from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Borrowers (in the case of all other amounts);

 

(B)            in
the case of any such assignment resulting from a claim for compensation under Section 1(i) or payments required to be
made pursuant to Section 1(h), such assignment will result in a reduction in such compensation thereafter; and

 

(C)            such
assignment does not conflict with applicable law.

 

A 2022 Incremental
Term Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender
or otherwise, the circumstances entitling the Borrowers to require such assignment and delegation cease to apply.

 

(k)            Benchmark
Replacement Setting.

 

(i)            Benchmark
Replacement. Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition
Event, the Term Loan Administrative Agent and the Borrowers may amend this Agreement to replace the then-current Benchmark with a Benchmark
Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. (New York City time)
on the fifth (5th) Business Day after the Term Loan Administrative Agent has posted such proposed amendment to all affected
2022 Incremental Term Lenders and the Borrowers so long as the Term Loan Administrative Agent has not received, by such time, written
notice of objection to such amendment from 2022 Incremental Term Lenders comprising the Required Facility Lenders. No replacement of a
Benchmark with a Benchmark Replacement pursuant to this Section 1(k)(i) will occur prior to the applicable Benchmark
Transition Start Date.

 

(ii)            Benchmark
Replacement Conforming Changes. In connection with the use, administration, adoption or implementation of a Benchmark Replacement,
the Term Loan Administrative Agent will have the right, in consultation with the Borrower, to make Conforming Changes from time to time
and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes
will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

 

    	 	6	 

     

    

 

(iii)            Notices;
Standards for Decisions and Determinations. The Term Loan Administrative Agent will promptly notify the Borrowers and the 2022 Incremental
Term Lenders of (A) the implementation of any Benchmark Replacement and (B) the effectiveness of any Conforming Changes in connection
with the use, administration, adoption or implementation of a Benchmark Replacement. The Term Loan Administrative Agent will notify the
Borrowers of (x) the removal or reinstatement of any tenor of a Benchmark pursuant to Section 1(k)(iv) and (y) the
commencement of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Term Loan Administrative
Agent or, if applicable, any 2022 Incremental Term Lender (or group thereof) pursuant to this Section 1(k), including any
determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and
any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may
be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except,
in each case, as expressly required pursuant to this Section 1(k).

 

(iv)            Unavailability
of Tenor of Benchmark. Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection
with the implementation of a Benchmark Replacement), (A) if the then-current Benchmark is a term rate (including the Term SOFR Reference
Rate) and either (1) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate
from time to time as selected by the Term Loan Administrative Agent in its reasonable discretion or (2) the regulatory supervisor
for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such
Benchmark is not or will not be representative, then the Term Loan Administrative Agent may modify the definition of “Interest Period”
(or any similar or analogous definition) for any Benchmark settings at or after such time to remove such unavailable or non-representative
tenor and (B) if a tenor that was removed pursuant to clause (A) above either (1) is subsequently displayed on a screen
or information service for a Benchmark (including a Benchmark Replacement) or (2) is not, or is no longer, subject to an announcement
that it is not or will not be representative for a Benchmark (including a Benchmark Replacement), then the Term Loan Administrative Agent
may modify the definition of “Interest Period” (or any similar or analogous definition) for all Benchmark settings at or after
such time to reinstate such previously removed tenor.

 

(v)            Benchmark
Unavailability Period. Upon the Borrowers’ receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrowers
may revoke any pending request for a SOFR Borrowing of, conversion to or continuation of SOFR Term Loans to be made, converted or continued
during any Benchmark Unavailability Period and, failing that, the Borrowers will be deemed to have converted any such request into a request
for a Borrowing of or conversion to ABR Term Loans. During a Benchmark Unavailability Period or at any time that a tenor for the then-current
Benchmark is not an Available Tenor, the component of ABR based upon the then-current Benchmark or such tenor for such Benchmark, as applicable,
will not be used in any determination of ABR.

 

(l)            Use
of Proceeds. The proceeds of the 2022 Incremental Term Loan shall be used solely by the Borrowers to repay existing senior unsecured
notes of the Borrowers and/or outstanding amounts under the Revolving Facility.

 

    	 	7	 

     

    

 

(m)            2022
Incremental Term Facility. Each of the parties hereto acknowledges and agrees that (i) the 2022 Incremental Term Facility is
an “Incremental Term Facility” established as a separate and distinct “Class” and “Facility” of “Other
Term Loans” pursuant to Section 2.21 of the Credit Agreement, (ii) the 2022 Incremental Term Loan Commitments are
 “Incremental Term Loan Commitments” under the Credit Agreement, (iii) the 2022 Incremental Term Loans are “Incremental
Term Loans” under the Credit Agreement and, as a result thereof, are “Term Loans” and “Loans” under the
Credit Agreement (including, without limitation, for purposes of the definition of “Loan Obligations” and “Required
Prepayment Lenders”), (iv) each Borrowing (as defined herein) shall be deemed to be a “Borrowing” under the Credit
Agreement and, except as otherwise provided in the definition of “Borrowing” set forth in this Agreement or as expressly provided
herein, subject to the provisions of the Credit Agreement in respect thereto, (v) Adjusted Term SOFR (as defined herein) shall be
deemed to be a “Rate” under the Credit Agreement and, except as otherwise expressly provided herein, subject to the provisions
of the Credit Agreement in respect thereto, (vi) each Interest Period (as defined herein) shall be deemed to be an “Interest
Period” under the Credit Agreement and, except as otherwise expressly provided herein, subject to the provisions of the Credit Agreement
in respect thereto, (vii) the 2022 Incremental Term Loan Commitments, the 2022 Incremental Term Loans and all obligations in respect
thereof are secured by the Security Documents, are guaranteed by the Subsidiary Guarantee Agreement and rank pari passu in right of payment
and security with all of the other Obligations under the Credit Agreement, (viii) except as otherwise expressly provided herein,
are subject to the same terms as the other Term Loans under the Credit Agreement and (ix) this Agreement is an “Incremental
Assumption Agreement” under the Credit Agreement and, as a result thereof, a “Loan Document” under the Credit Agreement.
In addition, each of the parties hereto acknowledges and agrees that FCMA has acted as the sole lead arranger and sole bookrunner with
respect to the 2022 Incremental Term Facility and, as a result thereof, from and after the Effective Date, FCMA shall be an “Arranger”
under the Credit Agreement and entitled to the benefits that such designation provides under the Loan Documents (including, without limitation,
for purposes of Sections 8.11, 9.05 and 9.21 of the Credit Agreement).

 

(n)            Waivers;
Amendment. Pursuant to Section 9.08(e) of the Credit Agreement, each of the parties hereto acknowledges and agrees
that, notwithstanding anything in the Credit Agreement (including, without limitation, Section 9.08) to the contrary, (i) when
determining “Required Lenders” at any time prior to the funding of the 2022 Incremental Term Loans, the unused portion of
the 2022 Incremental Term Loan Commitments shall be included in such determination in the same manner as Available Unused Commitments
and (ii) neither Section 2 below nor any provision of this Agreement or the Credit Agreement relating to the funding
of the 2022 Incremental Term Loans may be waived, amended or modified except pursuant to an agreement or agreements in writing entered
into by the Borrowers, the Term Loan Administrative Agent and each of the 2022 Incremental Term Lenders.

 

(o)            Defined
Terms. As used in this Agreement, the following terms shall have the meanings specified below:

 

“ABR”
means, for any day, a fluctuating rate per annum equal to the highest of (a) the Federal Funds Effective Rate in effect for such
day plus 0.50%, (b) the Prime Rate in effect on such day and (c) Adjusted Term SOFR for a one-month tenor in effect on such
day plus 1.00 %. Any change in the ABR due to a change in the Prime Rate, the Federal Funds Rate or Adjusted Term SOFR shall
be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Rate or Adjusted Term SOFR, respectively.

 

“ABR Borrowing”
means, as to any Borrowing, the ABR Term Loans comprising such Borrowing.

 

“ABR Term
Loan” means any 2022 Incremental Term Loan bearing interest at a rate determined by reference to the ABR in accordance with
the provisions hereof.

 

    	 	8	 

     

    

 

“Adjusted
Term SOFR” means, for purposes of any calculation, the rate per annum equal to (a) Term SOFR for such calculation plus
(b) the Term SOFR Adjustment; provided that if Adjusted Term SOFR as so determined shall ever be less than the Floor, then
Adjusted Term SOFR shall be deemed to be the Floor.

 

“Applicable
Margin” means, with respect to the 2022 Incremental Term Loans, for any day, 1.75% per annum in the case of any SOFR Term Loan
and 0.75% per annum in the case of any ABR Term Loan.

 

“Available
Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if such
Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an
interest period pursuant to this Agreement or (y) otherwise, any payment period for interest calculated with reference to such Benchmark
(or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to
such Benchmark pursuant to this Agreement, in each case, as of such date and not including, for the avoidance of doubt, any tenor for
such Benchmark that is then-removed from the definition of “Interest Period” pursuant to Section 1(k)(iv).

 

“Benchmark”
means, initially, the Term SOFR Reference Rate; provided that if a Benchmark Transition Event has occurred with respect to the
Term SOFR Reference Rate or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the
extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 1(k)(i).

 

“Benchmark
Replacement” means, with respect to any Benchmark Transition Event, the sum of: (a) the alternate benchmark rate that has
been selected by the Term Loan Administrative Agent and the Borrowers giving due consideration to any evolving or then-prevailing market
convention for determining a benchmark rate as a replacement to the then-current Benchmark for Dollar-denominated syndicated credit facilities
at such time and (b) the related Benchmark Replacement Adjustment; provided that, if such Benchmark Replacement as so determined
would be less than the Floor, such Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other
Loan Documents.

 

“Benchmark
Replacement Adjustment” means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement,
the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or
zero) that has been selected by the Term Loan Administrative Agent and the Borrowers giving due consideration to any evolving or then-prevailing
market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement
of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

 

“Benchmark
Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark:

 

(a)            in
the case of clause (a) or (b) of the definition of “Benchmark Transition Event,” the later of (i) the date
of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark
(or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such
Benchmark (or such component thereof); or

 

    	 	9	 

     

    

 

(b)            in
the case of clause (c) of the definition of “Benchmark Transition Event,” the first date on which such Benchmark (or
the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator
of such Benchmark (or such component thereof) to be non-representative; provided that such non-representativeness will be determined
by reference to the most recent statement or publication referenced in such clause (c) and even if any Available Tenor of such Benchmark
(or such component thereof) continues to be provided on such date.

 

For the avoidance
of doubt, the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (a) or (b) with
respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available
Tenors of such Benchmark (or the published component used in the calculation thereof).

 

“Benchmark
Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:

 

(a)            a
public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used
in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark
(or such component thereof), permanently or indefinitely; provided that, at the time of such statement or publication, there is
no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

 

(b)            a
public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published
component used in the calculation thereof), the Federal Reserve Board, the Federal Reserve Bank of New York, an insolvency official with
jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator
for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator
for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease
to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely; provided that, at the
time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark
(or such component thereof); or

 

(c)            a
public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published
component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are not,
or as of a specified future date will not be, representative.

 

For the avoidance
of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statement
or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the
published component used in the calculation thereof).

 

“Benchmark
Transition Start Date” means, in the case of a Benchmark Transition Event, the earlier of (a) the applicable Benchmark
Replacement Date and (b) if such Benchmark Transition Event is a public statement or publication of information of a prospective
event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected
date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication).

 

    	 	10	 

     

    

 

“Benchmark
Unavailability Period” means, the period (if any) (a) beginning at the time that a Benchmark Replacement Date has occurred
if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document
in accordance with Section 1(k) and (b) ending at the time that a Benchmark Replacement has replaced the then-current
Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 1(k).

 

“Borrowing”
shall mean a group of 2022 Incremental Term Loans of a single Type, and made on a single date to any Borrower and, in the case of SOFR
Term Loans, as to which a single Interest Period is in effect.

 

“Conforming
Changes” means, with respect to either the use or administration of Term SOFR or the use, administration, adoption or
implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition
of “ABR,” the definition of “Business Day,” the definition of “U.S. Government Securities Business Day,”
the definition of “Interest Period” or any similar or analogous definition, timing and frequency of determining rates and
making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length
of lookback periods, the applicability of Section 1(g) and other technical, administrative or operational matters) that
the Term Loan Administrative Agent decides, in consultation with the Borrower, may be appropriate to reflect the adoption and implementation
of any such rate or to permit the use and administration thereof by the Term Loan Administrative Agent in a manner substantially consistent
with market practice (or, if the Term Loan Administrative Agent decides in its reasonable discretion that adoption of any portion of such
market practice is not administratively feasible or if the Term Loan Administrative Agent determines that no market practice for the administration
of any such rate exists, in such other manner of administration as the Term Loan Administrative Agent decides, in consultation with the
Borrower, is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

 

“Floor”
means a rate of interest equal to 0.00%.

 

“Interest
Payment Date” means, (a) as to any ABR Term Loan, the last Business Day of each March, June, September and December and
the Maturity Date and with respect to any SOFR Term Loan, (a) the last day of the Interest Period applicable to the Borrowing of
which such Loan is a part and (b) in the case of a SOFR Borrowing with an Interest Period of more than three months’ duration,
each day that would have been an Interest Payment Date had successive Interest Periods of three months’ duration been applicable
to such Borrowing.

 

“Interest
Period” means, as to any SOFR Borrowing, the period commencing on the date of such Borrowing or on the last day of the immediately
preceding Interest Period applicable to such Borrowing, as applicable, and ending on the numerically corresponding day (or, if there is
no numerically corresponding day, on the last day) in the calendar month that is 1, 3 or 6 months thereafter, as the Borrowers may elect;
provided, however, that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period
shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month,
in which case such Interest Period shall end on the next preceding Business Day, (ii) any Interest Period that commences on the last
Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such Interest Period, (iii) no Interest Period shall extend
beyond the applicable Maturity Date and (iv) no tenor that has been removed from this definition pursuant to Section 1(k)(iv) shall
be available for specification in the applicable Borrowing Request or Interest Election Request; provided further, that in connection
with the initial funding of the 2022 Incremental Term Loans, the Borrower may elect that the Interest Period applicable to such 2022 Incremental
Term Loans match the Interest Period then in effect for the 2021 Incremental Term Loans. For purposes hereof, the date of a Borrowing
initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or
continuation of such Borrowing. Interest shall accrue from and including the first day of an Interest Period to but excluding the last
day of such Interest Period.

 

    	 	11	 

     

    

 

“Required
Facility Lenders” means, at any time, 2022 Incremental Term Lenders having (a) 2022 Incremental Term Loans outstanding
and/or (b) unused 2022 Incremental Term Loan Commitments that, taken together, represent more than 50% of the sum of (1) all
2022 Incremental Term Loans outstanding and/or (2) the total unused 2022 Incremental Term Loan Commitments at such time; provided,
that the 2022 Incremental Term Loans and unused 2022 Incremental Term Loan Commitments of any Defaulting Lender shall be disregarded in
determining Required Facility Lenders at any time.

 

“SOFR”
means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

 

“SOFR Administrator”
means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

 

“SOFR Borrowing”
means, as to any Borrowing, the SOFR Term Loans comprising such Borrowing.

 

“SOFR Term
Loan” means any 2022 Incremental Term Loan bearing interest at a rate based on Adjusted Term SOFR in accordance with the terms
hereof, other than pursuant to clause (c) of the definition of “ABR”.

 

“Term SOFR”
means,

 

(a)            for
any calculation with respect to a SOFR Term Loan, the Term SOFR Reference Rate for a tenor comparable to the applicable Interest Period
on the day (such day, the “Periodic Term SOFR Determination Day”) that is two (2) U.S. Government Securities Business
Days prior to the first day of such Interest Period, as such rate is published by the Term SOFR Administrator; provided, however,
that if as of 5:00 p.m. (New York City time) on any Periodic Term SOFR Determination Day the Term SOFR Reference Rate for the applicable
tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate
has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the
first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term
SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government
Securities Business Days prior to such Periodic Term SOFR Determination Day, and

 

    	 	12	 

     

    

 

(b)            for
any calculation with respect to an ABR Term Loan on any day, the Term SOFR Reference Rate for a tenor of one month on the day (such day,
the “ABR Term SOFR Determination Day”) that is two (2) U.S. Government Securities Business Days prior to such
day, as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York
City time) on any ABR Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the
Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR
will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government
Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as
such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days
prior to such ABR SOFR Determination Day.

 

“Term SOFR
Adjustment” means, for any calculation with respect to an ABR Term Loan or a SOFR Term Loan, a percentage per annum as set forth
below for the applicable Type of such Loan and (if applicable) Interest Period therefor:

 

ABR Term Loans:

 

	 	0.10%	 

 

SOFR Term Loans:

 

	Interest Period	 	Percentage	 
	One month	 	 	0.10	%
	Three months	 	 	0.15	%
	Six months	 	 	0.25	%

 

“Term SOFR
Administrator” means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference
Rate selected by the Term Loan Administrative Agent in its reasonable discretion).

 

“Term SOFR
Reference Rate” means the forward-looking term rate based on SOFR.

 

“U.S. Government
Securities Business Day” means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities
Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for
purposes of trading in United States government securities.

 

The amendments to the Credit
Agreement are limited to the extent specifically set forth in this Section 1 and no other terms, covenants or provisions of
the Loan Documents are intended to be affected hereby.

 

Section 2.           Certain
Farm Credit Matters.

 

(a)            Waiver
of Borrower’s Rights Under Farm Credit Law.  Each Borrower acknowledges and agrees
that, to the extent the provisions of the Agricultural Credit Act of 1987, including, without limitation, 12 U.S.C. §§ 2199
through 2202e, and the implementing Farm Credit Administration regulations, 12 C.F.R. § 617.7000, et seq. (collectively, the “Farm
Credit Law”) apply to a Borrower or to the transactions contemplated by this Agreement, the Credit Agreement or the other Loan
Documents, each Borrower hereby irrevocably waives, relinquishes and agrees not to assert at any time any and all rights that such Borrower
may be afforded under the Farm Credit Law (“Borrower Rights”), including but not limited to all statutory or regulatory
rights of a borrower to disclosure of effective interest rates, differential interest rates, review of credit decisions, distressed loan
restructuring, and rights of first refusal. Each Borrower acknowledges and agrees that the waiver of Borrower Rights provided by this
Section 2(a) is knowingly and voluntarily made after each Borrower has consulted with legal counsel of its choice and
has been represented by counsel of its choice in connection with the negotiation of this Agreement and the waiver of Borrower Rights
set forth in this Section 2(a). Each Borrower acknowledges that its waiver of Borrower Rights set forth in this Section 2(a) is
based on its recognition that such waiver is material to induce the Agents and the Lenders to participate in the extensions of credit
contemplated by this Agreement, the Credit Agreement and the other Loan Documents and to provide extensions of credit to the Borrowers.
Nothing contained in this Section 2(a), nor the delivery to any Borrower of any summary of any rights under, or any notice
pursuant to, the Farm Credit Law shall be deemed to be, or be construed to indicate the determination or agreement by any Borrower, any
Agent or any Lender that the Farm Credit Law, or any rights thereunder, are or will be applicable to any Borrower or to the transactions
contemplated by this Agreement, the Credit Agreement and the other Loan Documents. It is the intent of each Borrower that the waiver
of Borrower Rights contained in this Section 2(a) complies with and meets all requirements of 12 C.F.R. § 617.7010(c).

 

    	 	13	 

     

    

 

(b)            Farm
Credit Equity and Eligibility.

 

(i)            So
long as a Farm Credit System Institution (as defined below) is a Lender under the Credit Agreement, each Borrower will acquire
equity in such Farm Credit System Institution in such amounts and at such times as such Farm Credit System Institution may require in
accordance with such Farm Credit System Institution’s Bylaws and Capital Plan (or their equivalent) (as each may be amended from
time to time), except that the maximum amount of equity that such Borrower shall be required pursuant to this sentence to purchase in
such Farm Credit System Institution in connection with the Loans made by such Farm Credit System Institution shall not exceed the maximum
amount required by the Bylaws and the Capital Plan (or the equivalent) on the Effective Date (or such other date that such Farm Credit
System Institution initially becomes a Lender, as applicable), and at all times maintain its eligibility to be a borrower of loans from
a Farm Credit System Institution. Each Borrower acknowledges receipt of documents from each Farm Credit System Institution that describe
the nature of such Borrower’s cash patronage, stock and other equities in such Farm Credit System Institution acquired in connection
with its patronage loan from such Farm Credit System Institution (the “Farm Credit Equities”) as well as capitalization
requirements, and agrees to be bound by the terms thereof. As used herein, “Farm Credit System Institution” means any
farm credit bank, any federal land bank association, agricultural credit association, federal land credit association, any production
credit association, the banks for cooperatives, and such other institutions as may be subject to regulation by the Farm Credit Administration,
including, without limitation, any federally-chartered Farm Credit System lending institution organized under the Farm Credit Act of 1971,
as the same may be amended or supplemented from time to time.

 

(ii)            Each
party hereto acknowledges and agrees that each Farm Credit System Institution’s Bylaws and capital plans (or their equivalent) (as
each may be amended from time to time) shall govern (A) the rights and obligations of the parties with respect to the Farm Credit
Equities and any patronage refunds or other distributions made on account thereof or on account of any Borrower’s patronage with
such Farm Credit System Institution, (B) any Borrower’s eligibility for patronage distributions from such Farm Credit System
Institution (in the form of Farm Credit Equities and cash) and (C) patronage distributions, if any, in the event of a sale of a participation
interest. Each Farm Credit System Institution reserves the right to assign or sell participations in all or any part of its Commitments
or outstanding Loans hereunder on a non-patronage basis.

 

    	 	14	 

     

    

 

(iii)            Each
party hereto further acknowledges and agrees that each Farm Credit System Institution has a statutory first lien pursuant to the Farm
Credit Act of 1971, as the same may be amended or supplemented from time to time, on all Farm Credit Equities that any Borrower may now
own or hereafter acquire, which statutory lien shall be for such Farm Credit System Institution’s sole and exclusive benefit.
The Farm Credit Equities shall not constitute security for the Obligations due to any other party hereto. Neither the Farm Credit Equities
nor any accrued patronage shall be offset against the Obligations except that, in the event of an Event of Default, a Farm Credit System
Institution may elect, solely at its discretion, to apply the cash portion of any patronage distribution or retirement of equity to amounts
owed to such Farm Credit System Institution under this Agreement, whether or not such amounts are currently due and payable. Each Borrower
acknowledges that any corresponding tax liability associated with such application is the sole responsibility of such Borrower. No Farm
Credit System Institution shall have any obligation to retire any Farm Credit Equities upon any Event of Default, Default or any other
default by any Borrower or any other Loan Party, or at any other time, either for application to the Obligations or otherwise.

 

Section 3.          Incremental
Term Lender Joinder. By its execution of this Agreement, each 2022 Incremental Term Lender hereby acknowledges, agrees
and confirms that, on and after the Effective Date:

 

(a)            it
will be deemed to be a party to the Credit Agreement as a “Lender” and an “Incremental Term Lender” for all purposes
of the Credit Agreement and the other Loan Documents, and shall have all of the obligations of, and shall be entitled to the benefits
of, a Lender and an Incremental Term Lender under the Credit Agreement, all with the same force and effect as if it had executed the Credit
Agreement;

 

(b)            it
has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 5.04
thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into
this Agreement and become a Lender and an Incremental Term Lender under the Credit Agreement;

 

(c)            it
will independently and without reliance upon any Agent or any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement;

 

(d)            it
appoints and authorizes the Term Loan Administrative Agent and Collateral Agent to take such action as agent on its behalf and to exercise
such powers under the Credit Agreement as are delegated to such Agent by the terms of the Credit Agreement, together with such powers
as are reasonably incidental thereto; and

 

(e)            it
will perform in accordance with their terms all the obligations which by the terms of the Credit Agreement are required to be performed
by it as a Lender.

 

Section 4.         Conditions
Precedent.  The effectiveness of this Agreement and the amendments and other agreements contemplated hereby is subject
to the satisfaction of each of the following conditions precedent:

 

(a)            Documentation.
The Term Loan Administrative Agent and the 2022 Incremental Term Lenders shall have received each of the following (each in form and substance
reasonably satisfactory to them):

 

(i)            this
Agreement, duly executed and delivered by the Borrowers, the Subsidiary Loan Parties, the Term Loan Administrative Agent and the 2022
Incremental Term Lenders;

 

    	 	15	 

     

    

 

(ii)            to
the extent requested by any 2022 Incremental Term Lender, a Note evidencing the 2022 Incremental Term Loans of such Incremental Term Lender,
duly executed and delivered by the Borrowers;

 

(iii)           a
certificate executed by a Responsible Officer of each Borrower dated as of the Effective Date and certifying as to the satisfaction of
the conditions set forth in Section 4(d) and (e) below;

 

(iv)            a
written opinion of Paul, Weiss, Rifkind, Wharton & Garrison LLP, as special New York and Delaware counsel for the Loan Parties,
and Faegre Drinker Biddle & Reath LLP, as special Indiana counsel for the Company and Elanco International, Inc., an Indiana
corporation, (A) dated the Effective Date, (B) addressed to each Issuing Bank, the Administrative Agents, the Collateral Agent
and the Lenders on the Effective Date and (C) covering such matters relating to this Agreement and the other Loan Documents as the
Term Loan Administrative Agent and the 2022 Incremental Term Lenders shall reasonably request;

 

(v)            a
certificate of the Secretary, Assistant Secretary, Director or similar officer of each Loan Party (other than each Australian Loan Party)
dated as of the Effective Date and certifying:

 

(A)            a
copy of the memorandum, certificate or articles of incorporation, certificate of limited partnership, certificate of formation or other
equivalent constituent and governing documents, including all amendments thereto, of such Loan Party, (1) in the case of a corporation,
certified (to the extent available in any non-U.S. jurisdiction) as of a recent date by the Secretary of State (or other similar official
or Governmental Authority in the case of any Loan Party organized outside the United States of America) of the jurisdiction of its organization,
or (2) otherwise certified by the Secretary, Assistant Secretary, Director or similar officer of such Loan Party or other person
duly authorized by the constituent documents of such Loan Party;

 

(B)            with
the exception of any English Loan Party, German Loan Party or a Swiss Loan Party, a certificate as to the good standing (to the extent
such concept or a similar concept exists under the laws of such jurisdiction) of such Loan Party as of a recent date from such Secretary
of State (or other similar official or Governmental Authority in the case of any Loan Party organized outside the United States of America);

 

(C)            that
attached thereto is a true and complete copy of the by-laws (or partnership agreement, limited liability company agreement, constitution
or other equivalent constituent and governing documents) (to the extent such concept or a similar concept exists under the laws of such
Loan Party’s jurisdiction of formation) of such Loan Party as in effect on the Effective Date and at all times since a date prior
to the date of the resolutions described in clause (D) below;

 

(D)            that
attached thereto is a true and complete copy of resolutions duly adopted by the Board of Directors (or equivalent governing body) of such
Loan Party (other than a German Loan Party unless required by law) (or its managing general partner or managing member), and, if required
by law or customary in the jurisdiction of incorporation of such Loan Party (including, without limitation, England, Germany and Switzerland),
the shareholders and other relevant corporate body, approving the 2022 Incremental Term Facility, authorizing the execution, delivery
and performance of this Agreement and the other Loan Documents to be executed by such Loan Party in connection with this Agreement and,
in the case of the Borrowers, the borrowings under the 2022 Incremental Term Facility, and that such resolutions have not been modified,
rescinded or amended and are in full force and effect on the Effective Date;

 

    	 	16	 

     

    

 

(E)            as
to the incumbency and specimen signature of each officer executing this Agreement or any other Loan Document or any other document delivered
in connection herewith on behalf of such Loan Party;

 

(F)            that
attached thereto is a true and complete copy of the companies register or commercial register, list of shareholders and the rules of
procedure of any corporate body of such Loan Party (in each case, to the extent such concept or a similar concept exists under the laws
of such Loan Party’s jurisdiction of formation and delivery of such document in a formalities certificate is customary in the relevant
jurisdiction) of such Loan Party as in effect as at the Effective Date; and

 

(G)            except
for any German Loan Party, confirming that, subject to the guarantee limitations set out in the Credit Agreement, borrowing or guaranteeing
or securing (as appropriate) the Commitments (including the 2022 Incremental Term Commitments) would not cause any borrowing, guarantee,
security or other similar limit binding on it to be exceeded;

 

(vi)            in
respect of each Australian Loan Party, (x) ASIC company extracts and Australian PPS Register searches in relation to such Australian
Loan Party and (y) a verification certificate dated as of the Effective Date and signed by a director of such Australian Loan Party,
(A) certifying the following items: (1) a copy of the constitution (or other equivalent constituent and governing documents)
of such Australian Loan Party, (2) a copy of a true, complete and up-to-date extract board resolutions (or equivalent) approving
the entry by such Australian Loan Party into this Agreement, (3) a copy of a true, complete and up-to-date shareholders’ resolutions
(or equivalent) approving the resolutions referred to under (2) (if required), (4) any power of attorney under which such Australian
Loan Party is signing this Agreement (if applicable) and (5) a true and complete specimen of signatures for each of the directors
or authorized signatories of such Australian Loan Party authorized by the extract board resolutions (or equivalent) referred to above
to execute this Agreement and otherwise be appointed for the purposes of this Agreement and other Loan Documents and (B) confirming
that: (1) such Australian Loan Party is solvent and (2) such Australian Loan Party is not prevented by Chapter 2E of the Australian
Corporations Act from entering into this Agreement; and

 

(vii)            (A) with
respect to each such Mortgaged Property located in the United States of America, the Flood Documentation as the Term Loan Administrative
Agent or FCMA may reasonably request and (B) except to the extent permitted to be delivered pursuant to Section 5(b) below,
such additional customary documents and filings (including amendments to the Mortgages and other Security Documents and title date-down
and modification endorsements) as the Term Loan Administrative Agent may reasonably request to assure that the 2022 Incremental Term Loans
are secured by the Collateral ratably with the then-existing Term Loans and Revolving Facility Loans.

 

(b)            Farm
Credit Equities. The Borrowers shall have made at least the minimum equity investment in FCMA as required by Section 2(b) above.

 

    	 	17	 

     

    

 

(c)            Fees
and Expenses. The Borrowers shall have paid (i) all fees due and payable on the Effective Date pursuant to that certain engagement
letter (the “Engagement Letter”) dated as of March 21, 2022 between FCMA and the Borrowers, (ii) all expenses
of FCMA required to be reimbursed in connection herewith pursuant to the Engagement Letter and (iii) all fees and expenses of the
Term Loan Administrative Agent required to be reimbursed in connection herewith pursuant to the Credit Agreement.

 

(d)            Representations
and Warranties. The representations and warranties set forth in the Loan Documents shall be true and correct in all material respects
as of the date hereof (except to the extent such representations and warranties are qualified by “materiality” or “Material
Adverse Effect,” in which case such representations and warranties shall be true and correct in all respects as of the date hereof),
in each case, with the same effect as though made on and as of the date hereof, except to the extent such representations and warranties
expressly relate to an earlier date (in which case such representations and warranties shall be true and correct in all material respects
as of such earlier date (except to the extent such representations and warranties are qualified by “materiality” or “Material
Adverse Effect,” in which case such representations and warranties shall be true and correct in all respects as of such earlier
date)).

 

(e)            No
Default or Event of Default. No Event of Default or Default shall have occurred and be continuing, nor will an Event of Default or
Default occur as a result of this Agreement or the incurrence of the Indebtedness contemplated hereby.

 

(f)            KYC,
USA PATRIOT Act, Etc. The Term Loan Administrative Agent and the 2022 Incremental Term Lenders shall have received all documentation
and other information required by Section 3.25 of the Credit Agreement no later than three (3) business days in advance
of the Effective Date, to the extent such information has been requested not less than ten (10) days prior to the Effective Date.
Upon the reasonable request of any 2022 Incremental Term Lender made at least ten (10) days prior to the Effective Date, the Borrowers
shall have provided to such 2022 Incremental Term Lender the documentation and other information so requested in connection with applicable
 “know your customer” and anti-money-laundering rules and regulations, including the USA PATRIOT Act, Beneficial Ownership
Certification and the Canada PCTFA, in each case at least three (3) business days prior to the Effective Date (including, without
limitation, a Beneficial Ownership Certification for any Borrower that qualifies as a “legal entity customer” under the Beneficial
Ownership Regulation).

 

    	 	18	 

     

    

 

Section 5.         Post-Closing
Obligations. Each relevant Loan Party shall deliver, or cause to be delivered, to the Term Loan Administrative Agent and
FCMA, each in form and substance reasonably satisfactory to them:

 

(a)            as
soon as reasonably practicable, but in no event later than thirty (30) days after the Effective Date (or such longer period as agreed
to by the Term Loan Administrative Agent and FCMA):

 

(i)            junior
ranking share pledge agreement(s) governed by German law over all the shares in Lohmann Animal Health GmbH, Bayer Animal Health GmbH,
Elanco Deutschland GmbH and KVP Pharma+Veterinär Produkte GmbH;

 

(ii)            junior
ranking account pledge agreement governed by German law over bank accounts by Elanco GmbH, Elanco Deutschland GmbH, Lohmann Animal Health
GmbH, Bayer Animal Health GmbH and KVP Pharma+Veterinär Produkte GmbH as pledgors;

 

(iii)            junior
ranking intellectual property pledge agreement governed by German law over intellectual property by Lohmann Animal Health GmbH and Bayer
Animal Health GmbH as pledgors;

 

(iv)            security
confirmation agreement(s) governed by German law in relation to the existing global assignment agreement by Elanco GmbH, Elanco Deutschland
GmbH, Lohmann Animal Health GmbH, Bayer Animal Health GmbH and KVP Pharma+Veterinär Produkte GmbH as assignors, the existing security
transfer agreement by Lohmann Animal Health GmbH, Bayer Animal Health GmbH and KVP Pharma+Veterinär Produkte GmbH as transferors
and the existing security purpose agreement in relation to land charges by Lohmann Animal Health GmbH and KVP Pharma+Veterinär Produkte
GmbH as chargors, each dated December 21, 2020;

 

(v)            a
security confirmation agreement governed by Swiss law to be entered into between Elanco International, Inc., Elanco Tiergesundheit
AG, Elanco Financing SA and Elanco Europe GmbH as Security Providers, and Goldman Sachs Bank USA as Collateral Agent, in respect of security
confirmation of, inter alia, the security interests granted under the existing Swiss Security Documents; and

 

(vi)            customary
legal opinions from Homburger AG, legal advisor to the Loan Parties, and from Walder Wyss AG, legal advisor to the Term Loan Administrative
Agent and the other Lenders, in each case, as to Swiss law, addressed to each Issuing Bank, the Administrative Agents, the Collateral
Agent and the Lenders and covering capacity and enforceability matters, respectively, which shall be in form and substance reasonably
satisfactory to the Term Loan Administrative Agent and FCMA; and

 

(b)            as
soon as reasonably practicable, but in no event later than ninety (90) days after the Effective Date (or such longer period as agreed
to by the Term Loan Administrative Agent and FCMA), such amendments to the Mortgages and title date-down and modification endorsements
as the Term Loan Administrative Agent and FCMA may reasonably request to assure that the 2022 Incremental Term Loans are secured by the
Collateral ratably with the then-existing Term Loans and Revolving Facility Loans.

 

    	 	19	 

     

    

 

Section 6.         Representations
and Warranties. In order to induce the Term Loan Administrative Agent and the 2022 Incremental Term Lenders to enter into
this Agreement, each Loan Party represents and warrants to the Term Loan Administrative Agent and each 2022 Incremental Term Lender as
follows:

 

(a)            The
representations and warranties set forth in the Loan Documents are true and correct in all material respects as of the date hereof (except
to the extent such representations and warranties are qualified by “materiality” or “Material Adverse Effect,”
in which case such representations and warranties are true and correct in all respects as of the date hereof), in each case, with the
same effect as though made on and as of the date hereof, except to the extent such representations and warranties expressly relate to
an earlier date (in which case such representations and warranties are true and correct in all material respects as of such earlier date
(except to the extent such representations and warranties are qualified by “materiality” or “Material Adverse Effect,”
in which case such representations and warranties are true and correct in all respects as of such earlier date)).

 

(b)            No
Event of Default or Default has occurred and is continuing, nor will an Event of Default or Default occur as a result of this Agreement
or the incurrence of the Indebtedness contemplated hereby.

 

(c)            This
Agreement has been duly authorized, executed and delivered by such Loan Party and constitutes a legal, valid and binding obligation of
such Loan Party enforceable against such Loan Party, in accordance with its terms, subject to (i) the effects of bankruptcy, insolvency,
moratorium, arrangement, reorganization, fraudulent conveyance or other similar laws affecting creditors’ rights generally, (ii) general
principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (iii) implied
covenants of good faith and fair dealing.

 

Section 7.         Miscellaneous.

 

(a)            Ratification
and Confirmation of Loan Documents. Each Loan Party hereby consents, acknowledges and agrees to the amendments and other agreements
set forth herein and hereby confirms and ratifies in all respects the Loan Documents to which such Loan Party is a party (including, without
limitation, the continuation of such Loan Party’s payment and performance obligations thereunder and the continuation and extension
of the liens and security interests granted by such Loan Party thereunder), in each case after giving effect to the amendments and other
agreements contemplated hereby. Other than as expressly provided for in this Agreement, the rights and obligations under the Credit Agreement
and each other Loan Document are not affected by the execution of this Agreement and the transactions contemplated by this Agreement and
the Credit Agreement and each other Loan Document to which any Loan Party is a party prior to the Effective Date continues in full force
and effect and continues to secure all amounts owing to any Lender, despite the execution of this Agreement or any other document, the
transactions contemplated by this Agreement and/or any other document. Nothing in this Agreement (i) affects the validity or enforceability
of any Loan Document; (ii) prejudices or adversely affects any right, power, authority, discretion or remedy arising under the Loan
Documents other than as expressly stated by the terms of this Agreement; and/or (iii) discharges, releases or otherwise affects any
liability or obligation arising under any Loan Document other than as expressly stated by this Agreement.

 

(b)            Fees
and Expenses. Without limiting the generality of Section 4(d) above or the Engagement Letter, the Borrowers shall
pay all reasonable out-of-pocket costs and expenses of the Term Loan Administrative Agent and FCMA in connection with the preparation,
negotiation, execution, and delivery of this Agreement and any other documents prepared in connection herewith, including, without limitation,
reasonable legal fees and expenses.

 

(c)            Headings.
Section and subsection headings in this Agreement are for convenience of reference only, are not part of this Agreement and are not
to affect the construction of, or to be taken into consideration in interpreting, this Agreement.

 

    	 	20	 

     

    

 

(d)            Governing
Law; Jurisdiction; Consent to Jurisdiction. THIS AGREEMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSES OF ACTION (WHETHER IN CONTRACT
OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY PRINCIPLE OF CONFLICTS OF LAW THAT COULD REQUIRE THE APPLICATION OF ANY OTHER LAW.
Section 9.15 of the Credit Agreement is hereby incorporated by reference with respect to each Loan Party as if set forth fully
herein, mutatis mutandis.

  

(e)            WAIVER
OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF
THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (I) CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 6(e).

 

(f)            Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall constitute an original but all of which, when taken together,
shall constitute but one contract, and shall become effective as provided in Section 4. Delivery of an executed signature
page of this Agreement by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart
hereof. Any signature to this Agreement may be delivered by facsimile, electronic mail (including pdf) or any electronic signature complying
with the U.S. federal ESIGN Act of 2000 or the New York Electronic Signature and Records Act or other transmission method and any counterpart
so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes to the fullest extent
permitted by applicable law. Each of the parties executing this Agreement through electronic means represents and warrants to the other
parties that it has the corporate capacity and authority to execute this Agreement through electronic means and there are no restrictions
for doing so in that party’s constitutive documents.

 

(g)            Entire
Agreement. This Agreement, the other Loan Documents and the Engagement Letter, constitute the entire contract between the parties
relative to the subject matter hereof. Any previous agreement among or representations from the parties or their Affiliates with respect
to the subject matter hereof is superseded by this Agreement and the other Loan Documents. Nothing in this Agreement or in the other Loan
Documents, expressed or implied, is intended to confer upon any party other than the parties hereto and thereto any rights, remedies,
obligations or liabilities under or by reason of this Agreement or the other Loan Documents.

 

(h)            Severability.
In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.
The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

    	 	21	 

     

    

 

(i)            Successors
and Assigns. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the permitted
successors and assigns of such party and all covenants, promises and agreements by or on behalf of any party hereto that are contained
in this Agreement shall bind and inure to the benefit of their respective permitted successors and assigns.

 

(j)            Direction
to Execute. Each 2022 Incremental Term Loan Lender authorizes and directs Goldman Sachs, as Term Loan Administrative Agent, to execute
this Agreement.

 

[Remainder of Page Intentionally Left Blank;
Signature Pages Follow]

 

    	 	22	 

     

    

 

 

The following parties have
caused this Agreement to be executed as of the date first written above.

 

	 	BORROWERS:
	 	 
	 	ELANCO ANIMAL HEALTH INCORPORATED

 

	 	By:	 /s/ David Pugh

	 	Name: 	David Pugh
	 	Title: 	Treasurer

 

	 	ELANCO US INC.

 

	 	By:	 /s/ David Pugh

	 	Name: 	David Pugh
	 	Title: 	Treasurer

 

	 	SUBSIDIARY LOAN PARTIES:
	 	 
	 	ELANCO INTERNATIONAL, INC.
	 	ELANCO MISSOURI INC.

 

	 	By:	 /s/ David Pugh

	 	Name: 	David Pugh
	 	Title: 	Treasurer

 

	 	LOHMANN ANIMAL HEALTH INTERNATIONAL, INC.

 

	 	By:	 /s/ David Pugh

	 	Name: 	David Pugh
	 	Title: 	Assistant Treasurer

 

	 	KINDRED BIOSCIENCES, INC. 
	 	CENTAUR BIOPHARMACEUTICAL SERVICES, INC. 
	 	KINDREDBIO EQUINE, INC.

 

	 	By:	 /s/ David Pugh

	 	Name: 	David Pugh
	 	Title: 	President and Treasurer

 

INCREMENTAL ASSUMPTION AGREEMENT 

Signature
Page

 

     

     

    

 

	 	ELANCO CANADA LIMITED

 

	 	By:	 /s/ Michelle McCotter 

	 	Name: 	Michelle McCotter 
	 	Title: 	Director

 

	 	ELANCO DEUTSCHLAND GMBH

 

	 	By:	/s/
    Liska Vehling

	 	Name: 	Liska Vehling
	 	Title: 	Managing Director

 

	 	ELANCO GMBH

 

	 	By:	/s/
Stefan Gebauer

	 	Name: 	Stefan Gebauer
	 	Title: 	Managing Director

 

	 	LOHMANN ANIMAL HEALTH GMBH

 

	 	By:	/s/
    Luise Gryschok

	 	Name: 	Luise Gryschok
	 	Title: 	General Manager

 

	 	BAYER ANIMAL HEALTH GMBH

 

	 	By:	/s/
    Liska Vehling

	 	Name: 	Liska Vehling
	 	Title: 	Managing Director

 

INCREMENTAL ASSUMPTION AGREEMENT 

Signature
Page

 

     

     

    

 

	 	 KVP PHARMA+VETERINÄR PRODUKTE GMBH

 

	 	By:	/s/ Frederic Rohmer

	 	Name: 	Frederic Rohmer
	 	Title: 	General Manager

 

	 	ELANCO EUROPE GMBH

 

	 	By:	/s/ Olivier Henri Georges Froelich

	 	Name: 	Olivier Henri Georges Froelich
	 	Title: 	Managing Officer and Chairman of the Management Board

 

	 	ELANCO TIERGESUNDHEIT AG

 

	 	By:	/s/ Olivier Henri Georges Froelich

	 	Name: 	Olivier Henri Georges Froelich
	 	Title: 	Chairman of the Board of Directors 

 

	 	ELANCO FINANCING SA

 

	 	By:	/s/ Olivier Henri Georges Froelich

	 	Name: 	Olivier Henri Georges Froelich
	 	Title: 	Member of the Board of Directors

 

	 	ELANCO UK AH LIMITED

 

	 	By:	/s/ Christopher Lewis

	 	Name: 	Christopher Lewis
	 	Title: 	Director

 

INCREMENTAL ASSUMPTION AGREEMENT 

Signature
Page

 

     

     

    

 

	
    Executed by Elanco Australia Holding Pty Limited
    in accordance with section 127 of the Corporations Act 2001 (Cth) by:

     

     
	 	

                                                                                 

                                                                                 

	/s/
Gert Hendrik Van Der Walt	 	/s/ Ahmad Zoabi
	 	 	 
	 	 	 
	
    Signature of director

     

     

    Gert Hendrik Van Der Walt

     

     
	 	
    Signature of director/secretary

     

     

    Ahmad Zoabi

	Name of director (print)	 	Name of director/secretary (print)

 

	
    Executed by Elanco Australasia Pty Ltd
in accordance with section 127 of the Corporations Act 2001 (Cth) by:

    

     

     
	 	

                                                                                 

                                                                                 

                                                                                 

                                                                                

	/s/
    Gert Hendrik Van Der Walt	 	/s/
Ahmad Zoabi
	 	 	 
	 	 	 
	
    Signature of director

     

     

    Gert Hendrik Van Der Walt

     

     
	 	
    Signature of director/secretary

     

     

    Ahmad Zoabi

	Name of director (print)	 	Name of director/secretary (print)

 

INCREMENTAL ASSUMPTION AGREEMENT 

Signature
Page

 

     

     

    

 

	 	GOLDMAN SACHS BANK USA, as Term Loan Administrative Agent

 

	 	By:	/s/ Douglas Tansey

	 	Name: 	Douglas Tansey
	 	Title: 	Authorized Signatory

 

INCREMENTAL ASSUMPTION AGREEMENT 

Signature
Page

     

     

    

 

	 	FARM CREDIT MID-AMERICA, PCA, as a 2022 Incremental Term
    Lender

 

	 	By:	/s/ Brian J. Klatt

	 	Name: 	 Brian J. Klatt
	 	Title: 	Regional Vice President

 

INCREMENTAL ASSUMPTION AGREEMENT 

Signature
Page

     

     

    

 

SCHEDULE 1

 

2022 Incremental Term Loan Commitments

 

	2022 Incremental Term Lender	 	2022 Incremental Term Loan Commitment	 
	Farm Credit Mid-America, PCA	 	$	250,000,000.00	 
	Total	 	$	250,000,000.00

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00343-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00343-of-00352.parquet"}]]