Document:

Exhibit 4.19

 

Execution Version

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement
(this “Agreement”), is made and entered into as of December 11, 2013, by and among Scorpio Bulkers Inc., a corporation
formed under the laws of the Republic of the Marshall Islands (the “Company”), and Galahad Securities Limited,
a limited liability company incorporated in the British Virgin Islands (the “Investor” and, together with any
permitted transferee or assignee under Section 15 of this Agreement, the “Investors”).

WHEREAS, the Company conducted
a private placement (the “Private Placement”) of its Common Shares (as defined below) in a transaction exempt
from the registration requirements of the Securities Act (as defined below), and the Investor purchased 10,863,500
Common Shares in the Private Placement pursuant to the Application Agreement dated October 31, 2013 (the “Application
Agreement”); and

WHEREAS, in connection with the
consummation of the transactions contemplated by the Application Agreement, the parties desire to enter into this Agreement in
order to grant certain registration rights to the Investors as set forth below.

NOW, THEREFORE, in consideration
of the foregoing and the mutual and dependent covenants hereinafter set forth, the parties agree as follows:

1.                 
Defined Terms. As used in this Agreement, the following terms shall have the following meanings:

“Affiliate” of
a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with, such Person. The term “control” (including the terms “controlled by” and
“under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

“Agreement” has
the meaning set forth in the preamble.

“Application Agreement” has
the meaning set forth in the recitals.

“Board” means
the board of directors of the Company.

“Commission” means
the Securities and Exchange Commission or any other federal agency administering the Securities Act and the Exchange Act at the
time.

    	 

    	 

    

“Common Shares” 
means the common shares, par value $0.01 per share, of the Company and any securities into which such Common Shares shall have
been changed, or any securities (including securities that may be issued by another Person) resulting from any reclassification,
recapitalization, reorganization, merger, exchange transaction or similar transactions with respect to such Common Shares.

“Company” has
the meaning set forth in the preamble.

“Company Shares”
means the Common Shares held by the Investor immediately following the closing of the Initial Public Offering.

“Exchange Act” means
the Securities Exchange Act of 1934, as amended, or any successor federal statute, and the rules and regulations thereunder, which
shall be in effect from time to time.

“Exchange Offer” means
an exchange offer pursuant to the Securities Act pursuant to which the Company shall offer to exchange the Common Shares issued
in the Private Placement for identical Common Shares registered under the Securities Act and qualified for listing on the New York
Stock Exchange or the Nasdaq Stock Market LLC.

“Filing
Date” means, with respect to the Shelf Registration Statement required pursuant to the first sentence of Section 2, the
30th day following the Company’s receipt of the Registration Request, provided, further, that if the Filing
Date falls on a Saturday, Sunday or other day that the Commission is closed for business, the Filing Date shall be extended to
the next Business Day on which the Commission is open for business.

“Full Cooperation”
means, in connection with any underwritten offering, where, in addition to the cooperation otherwise required by this Agreement,
(a) members of senior management of the Company (including the chief executive officer and chief financial officer) fully cooperate
with the underwriter(s) in connection therewith and make themselves available to participate in “road-show” and other
customary marketing activities in such locations (domestic and foreign) as recommended by the underwriter(s) (including one-on-one
meetings with prospective purchasers of the Registrable Securities) over a period not to exceed 48 hours and (b) the Company prepares
preliminary and final prospectuses (preliminary and final prospectus supplements in the case of an offering pursuant to the Shelf
Registration Statement) for use in connection therewith containing such additional information as reasonably requested by the underwriter(s)
(in addition to the minimum amount of information required by law, rule or regulation).

“Fully Marketed Underwritten
Offering” means an underwritten offering in which there is Full Cooperation.

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“Governmental Authority” means
any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government
or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental
authority (to the extent that the rules, regulations or orders of such organization or authority have the force of law), or any
arbitrator, court or tribunal of competent jurisdiction.

“Investors” has
the meaning set forth in the preamble.

“Initial Public Offering” means
a public offering pursuant to an effective registration statement under the Securities Act, of Common Shares of the Company qualified
for listing on the New York Stock Exchange or the Nasdaq Stock Market LLC.

“Person” means
an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization,
trust, association or other entity.

“Piggyback Registration” has
the meaning set forth in Section 4(a).

“Prospectus” means
the prospectus or prospectuses included (or deemed included) in any Registration Statement, as amended or supplemented by any prospectus
supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration
Statement and by all other amendments and supplements to the prospectus, including post-effective amendments and all material incorporated
by reference in such prospectus or prospectuses.

“Registrable Securities” means
any Company Shares and any securities that may be issued or distributed or be issuable or
distributable in respect of, or in substitution for, such Company Shares by way of conversion, exercise, dividend, stock split
or other distribution, merger, consolidation, exchange transaction, recapitalization or reclassification or similar transaction;
provided, however, that any such Registrable Securities shall cease to be Registrable Securities to the extent (i)
a Registration Statement covering such securities has been declared effective by the Commission and such securities have been disposed
of pursuant to such effective Registration Statement (it being understood that participation by the Investor in the Exchange
Offer shall not qualify as a “disposition” for purposes of this clause), (ii) such securities are sold under circumstances
in which all of the applicable conditions of Rule 144 (or any similar provisions then in force) under the Securities Act are met,
(iii) all such securities become eligible for resale without volume or manner-of-sale restrictions and without current public information
pursuant to Rule 144 and when all restriction legends, restricted designations and stop transfer or similar restrictions are removed
therefrom or (iv) such securities shall have ceased to be outstanding.

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“Registration Statement” means
any registration statement of the Company which covers any of the Registrable Securities pursuant to the provisions of this Agreement,
including the Prospectus, amendments and supplements to such Registration Statement, including post-effective amendments, all exhibits
and all materials incorporated by reference in such Registration Statement.

“Rule 144” means
Rule 144 promulgated under the Securities Act or any successor rule thereto or any complementary rule thereto.

“SEC
Guidance” means (i) any publicly available written or oral questions and answers, guidance, comments, requirements or
requests of the Commission staff and (ii) the Securities Act.

“Securities Act” means
the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations thereunder, which shall
be in effect from time to time.

“Selling Expenses” means
all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities, and
fees and disbursements of counsel for any holder of Registrable Securities, except for the reasonable fees and disbursements of
counsel for the holders of Registrable Securities required to be paid by the Company pursuant to Section 7.

“Short-Form Registrations” has
the meaning set forth in Section 3.

“underwritten registration
or underwritten offering” means an offering in which securities of the Company are sold to one or more underwriters
(as defined in Section 2(a)(11) of the Securities Act) for resale to the public.

2.                 
Shelf Registration.

(a)               
At any time after the earlier of the commencement of the Exchange Offer or the closing of the Initial Public Offering, the
Investors may request in writing (the “Registration Request”) registration under the Securities Act of all or
any portion of their Registrable Securities. On or prior to the Filing Date, the Company shall prepare and file with the Commission
a Shelf Registration Statement covering the resale of such number of Registrable Securities included in the Registration Request.
In addition, upon the written request of an Investor, the Company shall promptly prepare and file with the Commission a Shelf Registration
Statement covering the resale of all other Registrable Securities beneficially owned by such Investor; provided, that, notwithstanding
anything in this Agreement to the contrary, the Company shall not be obligated to prepare and file any such Shelf Registration
Statement covering such Registrable Securities (x) more than once per calendar quarter or (y) if the Registrable Securities to
be covered by such Shelf Registration Statement represent less than one percent (1%) of the then-outstanding Company Shares. The
Shelf Registration Statements described in this Section 2(a) shall relate to the offer and sale of the Registrable Securities
by the Investors thereof from time to time in accordance with the methods of distribution set forth in the applicable Shelf Registration
Statement (including any plan of distribution that the Investors may request from time to time, an initial form of which is attached
hereto as Exhibit A) and Rule 415 under the Securities Act, together with any Registration Statement to replace such Registration
Statement upon expiration thereof, if any (hereinafter the “Shelf Registration Statement”). Subject to the terms
of this Agreement, the Company shall use its reasonable best efforts to cause each such Shelf Registration Statement to be declared
effective under the Securities Act as promptly as possible after the filing thereof. The Company shall use its reasonable best
efforts to address any comments from the Commission regarding such Shelf Registration Statement and to advocate with the Commission
for the registration of all Registrable Securities in accordance with SEC Guidance. Notwithstanding the foregoing, if the Commission
prevents the Company from including any or all of the Registrable Securities on any Shelf Registration Statement due to limitations
on the use of Rule 415 of the Securities Act for the resale of the Registrable Securities by the Holders (a “Rule 415
Limitation”) or otherwise, such Shelf Registration Statement shall register the resale of a number of Company Shares
which is equal to the maximum number of shares as is permitted by the Commission, and, subject to the provisions of this Section
2, the Company shall continue to use its reasonable best efforts to register all remaining Registrable Securities as set forth
in this Section 2. In such event, the number of Registrable Shares to be registered for the Investors in the applicable
Shelf Registration Statement shall be reduced pro rata among all Investors. The Company shall continue to use its reasonable best
efforts to register all remaining Registrable Securities as promptly as practicable in accordance with the applicable rules, regulations
and SEC Guidance.

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(b)              
Suspension of Registration. If the Company shall furnish to the Investors a certificate signed by a senior executive
officer of the Company stating that the continued use of a Shelf Registration Statement filed pursuant to Section 2(a) would
require the Company to make an Adverse Disclosure, then the Company may suspend use of such Shelf Registration Statement (a “Shelf
Suspension”); provided, however, that the Company, unless otherwise approved in writing by the Investors,
shall not be permitted to exercise aggregate Shelf Suspensions more than four times, or for more than an aggregate of 90 days,
in each case, during any 12-month period; provided, further, that in the event of a Shelf Suspension, such Shelf
Suspension shall terminate at such earlier time as the Company would no longer be required to make any Adverse Disclosure. Each
Investor agrees that, upon delivery of any certificate by the Company set forth in the first sentence of this Section, such Investor
will forthwith discontinue disposition of Registrable Securities pursuant to the applicable Shelf Registration Statement until
the Company informs such Investor that the Shelf Suspension has been terminated.  Each Investor shall keep confidential
the fact that a Shelf Suspension is in effect, the certificate referred to above and its contents unless and until otherwise notified
by the Company, except (A) for disclosure to such Investor’s employees, agents and professional advisers who reasonably need
to know such information for purposes of assisting the Investor with respect to its investment in the Company Shares and agree
to keep it confidential, (B) for disclosures to the extent required in order to comply with reporting obligations to its limited
partners or other direct or indirect investors who have agreed to keep such information confidential, (C) if and to the extent
such matters are publicly disclosed by the Company or any of its Subsidiaries or any other Person that, to the actual knowledge
of such Investor, was not subject to an obligation or duty of confidentiality to the Company and its Subsidiaries, (D) as required
by law, rule or regulation and (E) for disclosure to any other Investor.  In the case of a Shelf Suspension, the Investors
agree to suspend use of the applicable Prospectus and any issuer free writing prospectus in connection with any sale or purchase
of, or offer to sell or purchase, Registrable Securities, upon delivery of the notice referred to above.  The Company
shall immediately notify the Investors upon the termination of any Shelf Suspension, amend or supplement the Prospectus and any
issuer free writing prospectus, if necessary, so it does not contain any untrue statement or omission and furnish to the Investors
such numbers of copies of the Prospectus and any issuer free writing prospectus as so amended or supplemented as the Investors
may reasonably request.  The Company agrees, if necessary, to supplement or make amendments to each Shelf Registration
Statement if required by the registration form used by the Company for the applicable Registration or by the instructions applicable
to such registration form or by the Securities Act or the rules or regulations promulgated thereunder, or as may reasonably be
requested by any Investor.

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(c)               
Shelf Take-Downs.

(i)                
An offering or sale of Registrable Securities pursuant to a Shelf Registration Statement (each, a “Shelf Take-Down”)
may be initiated only by an Investor (an “Initiating Shelf Take-Down Investor”).  

(ii)              
Subject to Section 2(a), if the Initiating Shelf Take-Down Investor elects by written request to the Company, a Shelf
Take-Down shall be in the form of an underwritten offering, the Company shall amend or supplement the applicable Shelf Registration
Statement for such purpose as soon as practicable. Such Initiating Shelf Take-Down Investor shall have the right to select the
managing underwriter or underwriters, subject to the Company’s consent which shall not be unreasonably withheld, to administer
such offering.

(d)              
The Investor shall be entitled to request an aggregate of four (4) Fully Marketed Underwritten Offerings pursuant to the
Shelf Registration Statement and/or a Short-Form Registration; provided, however, that the Investor shall be entitled
to request no more than two (2) Fully Marketed Underwritten Offerings pursuant to the Shelf Registration Statement or a Short-Form
Registration in any 12 month period that require involvement by management of the Company in roadshow or similar marketing activities
and in no event shall the Company be obligated to take any action to (i) effect more than one underwritten offering in any consecutive
90-day period or (ii) effect any underwritten shelf take-down unless the Investor initiating such take-down proposes to sell Registrable
Securities in an amount of at least 1% of the then outstanding Common Shares or 100% of the Registrable Securities. If the Investor
requests a Fully Marketed Underwritten Offering, the Company shall cause there to occur Full Cooperation in connection therewith.
An underwritten offering shall not count as one of the permitted Fully Marketed Underwritten Offerings if there is not Full Cooperation
in connection therewith. Except as provided in Section 2(d), there shall be no limitation on the number of takedowns off
the Shelf Registration Statement.

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3.                 
Short-Form Registration. At such time as the Company shall have qualified for the use of a Registration Statement
on Form F-3 or Form S-3, the Company shall use its best efforts to qualify and remain qualified to register securities under the
Securities Act pursuant to a Registration Statement on Form F-3, Form S-3 or any successor form thereto and each holder of Registrable
Securities shall have the right to request an unlimited number of registrations of all or any portion of its Registrable Securities
on Form F-3 or Form S-3 or any similar short-form registration (each a “Short-Form Registration”). Each request
for a Short-Form Registration shall specify the approximate number of Registrable Securities requested to be registered. Upon receipt
of any such request, the Company shall promptly (but in no event later than five (5) days following receipt thereof) deliver notice
of such request to all other holders of Registrable Securities who shall then have ten (10) days from the date such notice is given
to notify the Company in writing of their desire to be included in such registration. The Company shall cause a Registration Statement
on Form F-3 or Form S-3 (or any successor form) to be filed with the Commission within thirty (30) days after the date on which
the initial request is given and shall use its commercially reasonable best efforts to cause such Registration Statement to be
declared effective by the Commission as soon as practicable thereafter.

4.                 
Piggyback Registration.

(a)               
Whenever the Company proposes to register any Common Shares under the Securities Act (other than a registration effected
solely to implement an employee benefit plan or a transaction to which Rule 145 of the Securities Act is applicable, or a Registration
Statement on Forms F-4, S-4, S-8 or any successor form thereto or another form not available for registering the Registrable Securities
for sale to the public), whether for its own account or for the account of one or more stockholders of the Company and the form
of Registration Statement to be used may be used for any registration of Registrable Securities (a “Piggyback Registration”),
the Company shall give prompt written notice (in any event no later than fifteen (15) days prior to the filing of such Registration
Statement) to the holders of Registrable Securities of its intention to effect such a registration and, subject to Section 4(b)
and Section 4(c), shall include in such registration all Registrable Securities with respect to which the Company has received
written requests for inclusion from the holders of Registrable Securities within ten (10) days after the Company’s notice
has been given to each such holder. The Company may postpone or withdraw the filing or the effectiveness of a Piggyback Registration
at any time in its sole discretion.

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(b)              
If a Piggyback Registration is initiated as a primary underwritten offering on behalf of the Company where the primary use
of proceeds does not include the repurchase, redemption, subscription or retirement of 5% or more of the Common Shares then outstanding
(a “Stock Repurchase”) and the managing underwriter advises the Company and the holders of Registrable Securities
(if any holders of Registrable Securities have elected to include Registrable Securities in such Piggyback Registration) in writing
that in its opinion the number of Common Shares proposed to be included in such registration, including all Registrable Securities
and all other Common Shares proposed to be included in such underwritten offering, exceeds the number of Common Shares which can
be sold in such offering and/or that the number of Common Shares proposed to be included in any such registration would adversely
affect the price per Common Share to be sold in such offering, the Company shall include in such registration (i) first, the number
of Common Shares that the Company proposes to sell; (ii) second, the number of Common Shares requested to be included therein by
holders of Registrable Securities, allocated pro rata among such holders on the basis of the number of Registrable Securities owned
by each such holder or in such manner as they may otherwise agree; and (iii) third, the number of Common Shares requested to be
included therein by holders of Common Shares (other than holders of Registrable Securities), allocated among such holders in such
manner as they may agree.

(c)               
If a Piggyback Registration is initiated as an underwritten offering on behalf of a holder of Common Shares other than Registrable
Securities or on behalf of the Company where the use of proceeds includes a Stock Repurchase, and the managing underwriter advises
the Company in writing that in its opinion the number of Common Shares proposed to be included in such registration, including
all Registrable Securities and all other Common Shares proposed to be included in such underwritten offering, exceeds the number
of Common Shares which can be sold in such offering and/or that the number of Common Shares proposed to be included in any such
registration would adversely affect the price per Common Share to be sold in such offering, the Company shall include in such registration
(i) first, the number of Common Shares requested to be included therein by the holder(s) requesting such registration and by the
holders of Registrable Securities, allocated pro rata among such holders on the basis of the number of Common Shares (on a fully
diluted, as converted basis) and the number of Registrable Securities, as applicable, owned by all such holders or in such manner
as they may otherwise agree; and (ii) second, the number of Common Shares requested to be included therein by other holders of
Common Shares, allocated among such holders in such manner as they may agree.

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(d)              
If any Piggyback Registration is initiated as a primary underwritten offering on behalf of the Company, the Company shall
select the investment banking firm or firms to act as the managing underwriter or underwriters in connection with such offering.

5.                 
No Lock-up. The Company acknowledges and agrees that the Investor is not obligated hereunder or otherwise to enter
into a lock-up agreement restricting the transfer of Common Shares in connection with the Initial Public Offering.

6.                 
Registration Procedures. If and whenever the holders of Registrable Securities request that any Registrable Securities
be registered pursuant to the provisions of this Agreement, the Company shall use its commercially reasonable best efforts to effect
the registration and the sale of such Registrable Securities in accordance with the intended method of disposition thereof, and
pursuant thereto the Company shall as soon as reasonably practicable:

(a)               
subject to Section 2(a), prepare and file a Registration Statement with the Commission within thirty (30) days after
the date on which the Company receives the Registration Request and use its commercially reasonable best efforts to cause such
Registration Statement to become effective;

(b)              
except as provided herein, prepare and file with the Commission such amendments, post-effective amendments and supplements
to such Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement
continuously effective under the Securities Act until all Registrable Shares covered by such Registration Statement (i) have been
sold, thereunder or pursuant to Rule 144; (ii) become eligible for resale without volume or manner-of-sale restrictions and without
current public information pursuant to Rule 144 and when all restriction legends, restricted designations and stop transfer or
similar restrictions are removed therefrom; or (iii) shall have ceased to be outstanding;

(c)               
at such time as any Registrable Securities may be sold pursuant to Rule 144 in satisfaction of the conditions set forth
in Section 6(b)(ii), remove any restrictive legends or transfer restrictions with respect to such Registrable Securities;

(d)              
within a reasonable time before filing such Registration Statement, Prospectus or amendments or supplements thereto, furnish
to one counsel for the holders of Registrable Securities participating in such registration copies of such documents proposed to
be filed with the Commission, which documents shall be subject to the review, comment and reasonable approval of such counsel;

(e)               
notify each selling holder of Registrable Securities, promptly after the Company receives notice thereof, of the time when
such Registration Statement has been declared effective or a supplement to any Prospectus forming a part of such Registration Statement
has been filed;

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(f)               
furnish to each selling holder of Registrable Securities such number of copies of the Prospectus included in such Registration
Statement (including each preliminary Prospectus) and any supplement thereto (in each case including all exhibits and documents
incorporated by reference therein) and such other documents as such seller may reasonably request in order to facilitate the disposition
of the Registrable Securities owned by such seller;

(g)              
use its reasonable best efforts to register or qualify such Registrable Securities under such other securities or “blue
sky” laws of such jurisdictions as any selling holder reasonably requests and do any and all other acts and things which
may be reasonably necessary or advisable to enable such holders to consummate the disposition in such jurisdictions of the Registrable
Securities owned by such holders; provided, that the Company shall not be required to qualify generally to do business,
subject itself to general taxation or consent to general service of process in any jurisdiction where it would not otherwise be
required to do so but for this Section 6(g);

(h)              
notify each selling holder of such Registrable Securities, at any time when a Prospectus relating thereto is required to
be delivered under the Securities Act, of the happening of any event as a result of which the Prospectus included in such Registration
Statement contains an untrue statement of a material fact or omits any fact necessary to make the statements therein not misleading,
and, at the request of any such holder, the Company shall prepare a supplement or amendment to such Prospectus so that, as thereafter
delivered to the purchasers of such Registrable Securities, such Prospectus shall not contain an untrue statement of a material
fact or omit to state any fact necessary to make the statements therein not misleading;

(i)                
in connection with each Fully Marketed Underwritten Offering requested by the Investor under Section 2(a), cause
there to occur Full Cooperation and, in all other cases, enter into such customary agreements and take all such other customary
actions as the holders of such Registrable Securities or the managing underwriter of such offering reasonably request in order
to expedite or facilitate the disposition of such Registrable Securities, including, without limitation, signing an underwriting
agreement in customary form, providing customary legal opinions and causing auditors to delivery customary comfort letters, allowing
for Investor or underwriter due diligence and preparing any prospectus supplement if necessary;

(j)                
make available for inspection by any selling holder of Registrable Securities, any underwriter participating in any disposition
pursuant to such Registration Statement and any attorney, accountant or other agent retained by any such holder or underwriter
(collectively, the “Inspectors”), all financial and other records, pertinent corporate documents and properties
of the Company (collectively, the “Records”), and cause the Company’s officers, directors and employees
to supply all information reasonably requested by any such Inspector in connection with such Registration Statement and customary
in such a transaction;

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(k)              
provide a transfer agent and registrar (which may be the same entity) for all such Registrable Securities not later than
the effective date of such registration;

(l)                
use its commercially reasonable best efforts to cause such Registrable Securities to be listed on the New York Stock Exchange
or the Nasdaq Stock Market LLC;

(m)            
otherwise use its commercially reasonable best efforts to comply with all applicable rules and regulations of the Commission
and make available to its stockholders an earnings statement (in a form that satisfies the provisions of Section 11(a) of the Securities
Act and Rule 158 thereunder) no later than thirty (30) days after the end of the 12-month period beginning with the first day of
the Company’s first full fiscal quarter after the effective date of such Registration Statement, which earnings statement
shall cover said 12-month period, and which requirement will be deemed to be satisfied if the Company timely files complete and
accurate information on Forms 20-F and 6-K under the Exchange Act and otherwise complies with Rule 158 under the Securities Act;
and

(n)              
furnish to each selling holder of Registrable Securities and each underwriter, if any, with (i) a legal opinion of the Company’s
outside counsel, dated the effective date of such Registration Statement (and, if such registration includes an underwritten public
offering, dated the date of the closing under the underwriting agreement), in form and substance as is customarily given in opinions
of the Company’s counsel to underwriters in underwritten public offerings; and (ii) a “comfort” letter signed
by the Company’s independent certified public accountants in form and substance as is customarily given in accountants’
letters to underwriters in underwritten public offerings;

(o)              
without limiting Section 6(g) above, use its commercially reasonable best efforts to cause such Registrable Securities
to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the business
and operations of the Company to enable the holders of such Registrable Securities to consummate the disposition of such Registrable
Securities in accordance with their intended method of distribution thereof;

(p)              
notify the holders of Registrable Securities promptly of any request by the Commission for the amending or supplementing
of such Registration Statement or Prospectus or for additional information;

(q)              
advise the holders of Registrable Securities, promptly after it shall receive notice or obtain knowledge thereof, of the
issuance of any stop order by the Commission suspending the effectiveness of such Registration Statement or the initiation or threatening
of any proceeding for such purpose and promptly use its commercially reasonable best efforts to prevent the issuance of any stop
order or to obtain its withdrawal at the earliest possible moment if such stop order should be issued;

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(r)                
to the extent deemed to be an underwriter or a controlling person of the Company, to permit such holders of Registrable
Securities and any underwriter to participate in the preparation of such Registration Statement and to require the insertion therein
of language, furnished to the Company in writing, which in the reasonable judgment of such holder or underwriter and its counsel
should be included;

(s)               
otherwise use its commercially reasonable best efforts to take all other steps necessary to effect the registration of such
Registrable Securities contemplated hereby.

7.                 
Expenses. All expenses (other than Selling Expenses) incurred by the Company and the Investors in complying with
their obligations pursuant to this Agreement and in connection with the registration and disposition of Registrable Securities,
including, without limitation, all registration and filing fees, underwriting expenses (other than fees, commissions or discounts),
expenses of any audits incident to or required by any such registration, fees and expenses of complying with securities and “blue
sky” laws, printing expenses, fees and expenses of the Company’s counsel and accountants and fees and expenses of one
counsel for the holders of Registrable Securities participating in such registration, shall be paid by the Company. All Selling
Expenses relating to Registrable Securities registered pursuant to this Agreement shall be borne and paid by the holders of such
Registrable Securities, in proportion to the number of Registrable Securities registered for each such holder.

8.                 
Indemnification.

(a)               
The Company shall indemnify and hold harmless, to the fullest extent permitted by law, each holder of Registrable Securities,
such holder’s officers, directors, managers, members, partners, stockholders and Affiliates, each underwriter, broker or
any other Person acting on behalf of such holder of Registrable Securities and each other Person, if any, who controls any of the
foregoing Persons within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, against all losses,
claims, actions, damages, liabilities and expenses, joint or several, to which any of the foregoing Persons may become subject
under the Securities Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or
are based upon any untrue or alleged untrue statement of a material fact contained in any Registration Statement, Prospectus, preliminary
Prospectus, free writing prospectus (as defined in Rule 405 promulgated under the Securities Act) or any amendment thereof or supplement
thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements
therein not misleading, or any violation or alleged violation by the Company of the Securities Act or any other similar federal
or state securities laws or any rule or regulation promulgated thereunder applicable to the Company and relating to action or inaction
required of the Company in connection with any such registration, qualification or compliance; and shall reimburse such Persons
for any legal or other expenses reasonably incurred by any of them in connection with investigating or defending any such loss,
claim, action, damage or liability, except insofar as the same are caused by or contained in any information relating to such holder
furnished in writing to the Company by such holder expressly for use therein or by such holder’s failure to deliver a copy
of the Registration Statement, Prospectus, free writing prospectus (as defined in Rule 405 promulgated under the Securities Act)
or any amendments or supplements thereto (if the same was required by applicable law to be so delivered) after the Company has
made available or furnished such holder with a sufficient number of copies of the same prior to any written confirmation of the
sale of Registrable Securities.

    	12

    	 

    

(b)              
In connection with any registration in which a holder of Registrable Securities is participating, each such holder shall
furnish to the Company in writing such information and affidavits as the Company reasonably requests for use in connection with
any such Registration Statement or Prospectus and, to the extent permitted by law, shall indemnify and hold harmless, the Company,
each director of the Company, each officer of the Company who shall sign such Registration Statement, each underwriter, broker
or other Person acting on behalf of the holders of Registrable Securities and each Person who controls any of the foregoing Persons
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act against any losses, claims, actions, damages,
liabilities or expenses resulting from any untrue or alleged untrue statement of material fact contained in the Registration Statement,
Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 promulgated under the Securities Act) or any
amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein not misleading, but only to the extent that such untrue statement or omission related
to such holder and is contained in any information or affidavit so furnished in writing by such holder expressly for use in the
Registration Statement; provided, that the obligation to indemnify shall be several, not joint and several, for each holder
and shall be limited to the net proceeds (after underwriting fees, commissions or discounts) actually received by such holder from
the sale of Registrable Securities pursuant to such Registration Statement.

    	13

    	 

    

(c)               
Promptly after receipt by an indemnified party of notice of the commencement of any action involving a claim referred to
in this Section 8, such indemnified party shall, if a claim in respect thereof is made against an indemnifying party, give
written notice to the latter of the commencement of such action. The failure of any indemnified party to notify an indemnifying
party of any such action shall not (unless such failure shall have a material adverse effect on the indemnifying party) relieve
the indemnifying party from any liability in respect of such action that it may have to such indemnified party hereunder. In case
any such action is brought against an indemnified party, the indemnifying party shall be entitled to participate in and to assume
the defense of the claims in any such action that are subject or potentially subject to indemnification hereunder, jointly with
any other indemnifying party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such indemnified
party, and after written notice from the indemnifying party to such indemnified party of its election so to assume the defense
thereof, the indemnifying party shall not be responsible for any legal or other expenses subsequently incurred by the indemnified
party in connection with the defense thereof; provided, that if (i) any indemnified party shall have reasonably concluded
that there may be one or more legal or equitable defenses available to such indemnified party which are additional to or conflict
with those available to the indemnifying party, or that such claim or litigation involves or could have an effect upon matters
beyond the scope of the indemnity provided hereunder, or (ii) such action seeks an injunction or equitable relief against any indemnified
party or involves actual or alleged criminal activity, the indemnifying party shall not have the right to assume the defense of
such action on behalf of such indemnified party without such indemnified party’s prior written consent (but, without such
consent, shall have the right to participate therein with counsel of its choice) and such indemnifying party shall reimburse such
indemnified party and any Person controlling such indemnified party for that portion of the fees and expenses of any counsel retained
by the indemnified party which is reasonably related to the matters covered by the indemnity provided hereunder. If the indemnifying
party is not entitled to, or elects not to, assume the defense of a claim, it shall not be obligated to pay the fees and expenses
of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable
judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified
parties with respect to such claim. In such instance, the conflicting indemnified parties shall have a right to retain one separate
counsel, chosen by the holders of a majority of the Registrable Securities included in the registration, at the expense of the
indemnifying party.

(d)              
If the indemnification provided for hereunder is held by a court of competent jurisdiction to be unavailable to an indemnified
party with respect to any loss, claim, damage, liability or action referred to herein, then the indemnifying party, in lieu of
indemnifying such indemnified party hereunder, shall contribute to the amounts paid or payable by such indemnified party as a result
of such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative fault of the indemnifying
party on the one hand and of the indemnified party on the other in connection with the statements or omissions which resulted in
such loss, claim, damage, liability or action as well as any other relevant equitable considerations; provided, that the
maximum amount of liability in respect of such contribution shall be limited, in the case of each holder of Registrable Securities,
to an amount equal to the net proceeds (after underwriting fees, commissions or discounts) actually received by such holder from
the sale of Registrable Securities effected pursuant to such registration. The relative fault of the indemnifying party and of
the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of
a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying
party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such statement or omission. The parties agree that it would not be just and equitable if contribution pursuant hereto
were determined by pro rata allocation or by any other method or allocation which does not take account of the equitable considerations
referred to herein. No Person guilty or liable of fraudulent misrepresentation shall be entitled to contribution from any Person.

    	14

    	 

    

9.                 
Participation in Underwritten Registrations. No Person may participate in any registration hereunder which is underwritten
unless such Person (a) agrees to sell such Person’s securities on the basis provided in any underwriting arrangements approved
by the Person or Persons entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers
of attorney, indemnities, underwriting agreements and other documents required under the terms of such underwriting arrangements.

10.             
Rule 144 Compliance. With a view to making available to the holders of Registrable Securities the benefits of Rule
144 under the Securities Act and any other rule or regulation of the Commission that may at any time permit a holder to sell securities
of the Company to the public without registration or pursuant to a registration on Form F-3 or Form S-3 (or any successor form),
the Company shall:

(a)               
make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act,
at all times after the effective date of any Registration Statement;

(b)              
use commercially reasonable best efforts to file with the Commission in a timely manner all reports and other documents
required of the Company under the Securities Act and the Exchange Act, at any time after the Company has become subject to such
reporting requirements; and

(c)               
furnish to any holder so long as the holder owns Registrable Securities, promptly upon request, a written statement by the
Company as to its compliance with the reporting requirements of Rule 144 under the Securities Act and of the Securities Act and
the Exchange Act, a copy of the most recent annual or quarterly report of the Company, and such other reports and documents so
filed or furnished by the Company as such holder may reasonably request in connection with the sale of Registrable Securities without
registration.

11.             
Preservation of Rights. The Company shall not (a) grant any registration rights to third parties which are more favorable
than or inconsistent with the rights granted hereunder, or (b) enter into any agreement, take any action, or permit any change
to occur, with respect to its securities that violates or subordinates the rights expressly granted to the holders of Registrable
Securities in this Agreement.

    	15

    	 

    

12.             
Termination. This Agreement shall terminate and be of no further force or effect when there shall no longer be any
Registrable Securities outstanding; provided, that the provisions of Section 7 and Section 8 shall survive
any such termination.

13.             
Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in
writing and shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received
by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or
e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the
next Business Day if sent after normal business hours of the recipient or (d) on the third day after the date mailed, by certified
or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the
addresses indicated below (or at such other address for a party as shall be specified in a notice given in accordance with this
Section 13).

 

	If to the Company:	
        Scorpio Bulkers Inc.

        9, Boulevard Charles III

        MC 98000 Monaco

        Facsimile: 011 377 92 05 70 45

         

        Attention: General Counsel

        E-mail: legal@scorpiogroup.net

         

	with a copy to:	
        Seward & Kissel LLP

        One Battery Park Plaza

        New York, New York, 10004

        Facsimile: (212) 480-8421

         

        Attention: Edward S. Horton

        E-mail: Horton@sewkis.com

         

	If to the Investor:	
        Galahad Securities Limited

        c/o Level 3, Legatum Plaza

        Dubai International Financial Centre

        PO Box 506625

        Dubai

        UAE

        Facsimile: +971 4 317 5811

         

        Attention: Rob Vickers, SVP – Legal

        Email: rob.vickers@legatum.com

 

    	16

    	 

    

 

	with a copy to:	
        Skadden Arps, Slate, Meagher & Flom LLP

        4 Times Square

        New York, NY 10036

        Facsimile: (212) 735-2000

         

        Attention: Richard J. Grossman

        E-mail: Richard.Grossman@skadden.com

14.             
Entire Agreement. This Agreement, together with the Application Agreement and any related exhibits and schedules
thereto, constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained
herein, and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to such
subject matter. Notwithstanding the foregoing, in the event of any conflict between the terms and provisions of this Agreement
and those of the Application Agreement, the terms and conditions of this Agreement shall control.

15.             
Successors and Permitted Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and permitted assigns. Investors may not assign their rights hereunder without the prior
written consent of the Company, provided, that each Investor may assign its rights hereunder to any Person which is a purchaser
or transferee of Registrable Securities constituting 5% or more of the Common Shares outstanding on the date of the assignment,
or to any Affiliate of such Investor; provided, that (i) the Company is furnished a written notice of the name and address
of such transferee or assignee and the Registrable Securities with respect to which such registration rights are being assigned
and (ii) such purchaser or transferee shall, as a condition to the effectiveness of such assignment, be required to execute a counterpart
to this Agreement agreeing to be treated as an Investor whereupon such purchaser or transferee shall have the benefits of, and
shall be subject to the restrictions contained in, this Agreement as if such purchaser or transferee was originally included in
the definition of an Investor herein and had originally been a party hereto. If the Registrable Securities are converted into or
exchanged or substituted for other securities issued by any other Person, as a condition to the effectiveness of the merger, consolidation,
reclassification, share exchange or other transaction pursuant to which such conversion, exchange, substitution or other transaction
takes place, such other Person shall automatically become bound hereby with respect to such other securities constituting Registrable
Securities and, if requested by the Investor or a permitted transferee, shall further evidence such obligation by executing and
delivering to the Investor and such transferee a written agreement to such effect in form and substance satisfactory to the Investor.

    	17

    	 

    

16.             
Conversion or Exchange of Other Securities. If the Investor offers Registrable Securities pursuant to an underwritten
offering by forward sale or any options, rights, warrants or other securities issued by it or any other Person that are offered
with, convertible into or exercisable or exchangeable for any Registrable Securities, the Registrable Securities subject to such
forward sale or underlying such options, rights, warrants or other securities shall be eligible for registration pursuant to Sections
2, 3 and 4 of this Agreement.

17.             
No Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their respective successors
and permitted assigns and the indemnified parties referred to in Section 8 hereof and nothing herein, express or implied,
is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever,
under or by reason of this Agreement.

18.             
Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

19.             
Amendment, Modification and Waiver. Except as otherwise provided herein, the provisions of this Agreement may only
be amended, modified, supplemented or waived with the prior written consent of the Company and the holders of a majority of the
Registrable Securities. No waiver by any party or parties shall operate or be construed as a waiver in respect of any failure,
breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring
before or after that waiver. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any
right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.

20.             
Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction,
such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or
render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision
is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated
hereby be consummated as originally contemplated to the greatest extent possible.

21.             
Remedies. Each holder of Registrable Securities, in addition to being entitled to exercise all rights granted by
law, including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. The Company acknowledges
that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of
this Agreement and the Company hereby agrees to waive the defense in any action for specific performance that a remedy at law would
be adequate.

    	18

    	 

    

22.             
Governing Law; Submission to Jurisdiction. This Agreement shall be governed by and construed in accordance with the
internal laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the
State of New York or any other jurisdiction). Any legal suit, action or proceeding arising out of or based upon this Agreement
or the transactions contemplated hereby may be instituted in the federal courts of the United States or the courts of the State
of New York in each case located in the City and County of New York, Borough of Manhattan, and each party irrevocably submits to
the exclusive jurisdiction of such courts in any such suit, action or proceeding. Service of process, summons, notice or other
document by mail to such party’s address set forth herein shall be effective service of process for any suit, action or other
proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of
any suit, action or any proceeding in such courts and irrevocably waive and agree not to plead or claim in any such court that
any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

23.             
Waiver of Jury Trial. Each party acknowledges and agrees that any controversy which may arise under this Agreement
is likely to involve complicated and difficult issues and, therefore, each such party irrevocably and unconditionally waives any
right it may have to a trial by jury in respect of any legal action arising out of or relating to this Agreement or the transactions
contemplated hereby. Each party to this Agreement certifies and acknowledges that (a) no representative of any other party has
represented, expressly or otherwise, that such other party would not seek to enforce the foregoing waiver in the event of a legal
action, (b) such party has considered the implications of this waiver, (c) such party makes this waiver voluntarily, and (d) such
party has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this Section
23.

24.             
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but both
of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail
or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy
of this Agreement.

 

 

 

[SIGNATURE PAGE FOLLOWS]

 

    	19

    	 

    

IN WITNESS WHEREOF, the parties
hereto have executed this Registration Rights Agreement on the date first written above.

 

 

	 	
        SCORPIO BULKERS INC.

         

         

	 	
        By: /s/ Luca Forgione

        Name: Luca Forgione

        Title: General Counsel

 

 

 

 

	 	
        GALAHAD SECURITIES LIMITED

         

         

	 	
        By: /s/ Mark Stoleson

        Name: Mark Stoleson

        Title: Director

 

    	20

    	 

    

Exhibit A

 

PLAN OF DISTRIBUTION

 

The Company is registering the common
shares covered by this prospectus for the selling shareholder. As used in this prospectus, “selling shareholder” includes
the donees, transferees, pledgees or others who may later hold the selling shareholder’s interests. Pursuant to a registration
rights agreement, dated as of December 11, 2013, the Company agreed to register the common shares owned by the selling shareholder
and to indemnify the selling shareholder against certain liabilities related to the selling of the common shares, including liabilities
arising under the Securities Act. Under the registration rights agreement, the Company also agreed to pay the costs and fees of
registering the common shares; however, the selling shareholder will pay any brokerage commissions or underwriting discounts relating
to the sale of the common shares.

 

The selling shareholder may sell the
common shares being offered hereby in one or more of the following ways at various times:

 

	•	to underwriters for resale to the public or to institutional investors;
	 	 
	•	directly to institutional investors; or
		 
	•	through agents to the public or to institutional investors.

 

The selling shareholder may offer its
common shares in one or more offerings pursuant to one or more prospectus supplements, if required by applicable law, and any such
prospectus supplement will set forth the terms of the relevant offering to the extent required. To the extent the common shares
offered pursuant to a prospectus supplement remain unsold, the selling shareholder may offer those common shares on different terms
pursuant to another prospectus supplement.

 

The selling shareholder will act independently
of the Company in making decisions with respect to the timing, manner and size of each sale. The selling shareholder may sell the
common shares on the New York Stock Exchange or otherwise, at market prices prevailing at the time of sale, at prices related to
the prevailing market prices, or at negotiated prices. If underwriters are used in the sale, the common shares will be acquired
by the underwriters for their own account and may be resold at various times in one or more transactions, including negotiated
transactions, at a fixed public offering price or prices, which may be changed, at market prices prevailing at the time of sale,
at prices related to such prevailing market prices, or at negotiated prices. A distribution of the common shares by the selling
shareholder may also be effected through the issuance by the selling shareholder or others of derivative securities, including
without limitation, warrants, exchangeable securities, forward delivery contracts and the writing of options.

 

    	1

    	 

    

In addition, the selling shareholder
may sell some or all of the common shares covered by this prospectus through:

 

	 	•	a block trade in which a broker-dealer will attempt to sell as agent, but may position or resell a portion of the block, as principal, in order to facilitate the transaction;
	 	 	 
	 	•	purchases by a broker-dealer, as principal, and resale by the broker-dealer for its account;
	 	 	 
	 	•	ordinary brokerage transactions and transactions in which a broker solicits purchasers; or
	 	 	 
	 	•	privately negotiated transactions.

 

The selling shareholder may also enter
into hedging transactions. For example, the selling shareholder may:

 

	 	• 	enter into transactions with a broker-dealer or affiliate thereof in connection with which such broker-dealer or affiliate will engage in short sales of the common shares pursuant to this prospectus, in which case such broker-dealer or affiliate may use common shares received from the selling shareholder to close out its short positions;
	 	 	 
	 	• 	sell common shares short itself and redeliver such shares to close out its short positions;
	 	 	 
	 	• 	enter into option or other types of transactions that require the selling shareholder to deliver common shares to a broker-dealer or an affiliate thereof, who will then resell or transfer the common shares under this prospectus; or
	 	 	 
	 	• 	loan or pledge the common shares to a broker-dealer or an affiliate thereof, who may sell the loaned shares or, in an event of default in the case of a pledge, sell the pledged shares pursuant to this prospectus.

 

In addition, the selling shareholder
may enter into derivative or hedging transactions with third parties, or sell securities not covered by this prospectus to third
parties in privately negotiated transactions. In connection with such a transaction, the third parties may sell securities covered
by and pursuant to this prospectus and an applicable prospectus supplement. If so, the third party may use securities borrowed
from the selling shareholder or others to settle such sales and may use securities received from the selling shareholder to close
out any related short positions. The selling shareholder may also loan or pledge securities covered by this prospectus and an applicable
prospectus supplement to third parties, who may sell the loaned securities or, in an event of default in the case of a pledge,
sell the pledged securities pursuant to this prospectus and the applicable prospectus supplement.

 

    	2

    	 

    

The applicable prospectus supplement
will set forth the terms of the offering of the common shares covered by this prospectus, including:

 

	 	• 	the name or names of any underwriters, dealers or agents and the amounts of securities underwritten or purchased by each of them, if any; and
	 	 	 
	 	• 	the public offering price of the common shares and the proceeds to the selling shareholder and any discounts, commissions or concessions or other items constituting compensation allowed, reallowed or paid to underwriters, dealers or agents, if any.

 

Any public offering price and any discounts,
commissions, concessions or other items constituting compensation allowed or reallowed or paid to underwriters, dealers or agents
may be changed from time to time.

 

The selling shareholder may negotiate
and pay broker-dealers’ commissions, discounts or concessions for their services. Broker-dealers engaged by the selling shareholder
may allow other broker-dealers to participate in resales. The selling shareholder and any broker-dealers involved in the sale or
resale of the common shares may qualify as “underwriters” within the meaning of Section 2(a)(11) of the Securities
Act. In addition, the broker-dealers’ commissions, discounts or concessions may qualify as underwriters’ compensation
under the Securities Act. If the selling shareholder qualifies as an “underwriter,” it will be subject to the prospectus
delivery requirements of Section 5(b)(2) of the Securities Act.

 

In addition to selling its common shares
under this prospectus, the selling shareholder may:

 

	 	• 	agree to indemnify any broker-dealer or agent against certain liabilities related to the selling of the common shares, including liabilities arising under the Securities Act;
	 	 	 
	 	• 	transfer its common shares in other ways not involving market makers or established trading markets, including directly by gift, distribution, or other transfer;
	 	 	 
	 	• 	sell its common shares under Rule 144 of the Securities Act rather than under this prospectus, if the transaction meets the requirements of Rule 144; or
	 	 	 
	 	• 	sell its common shares by any other legally available means.

 

As
a result of requirements of the Financial Industry Regulatory Authority, or FINRA, formerly the National Association of Securities
Dealers, Inc., the maximum commission or discount to be received by any FINRA member or independent broker/dealer may not be greater
than eight percent (8%) of the gross proceeds received by any selling shareholder for the sale of any securities being registered
pursuant to Rule 415 promulgated by the Commission under the Securities Act.  If more than 5% of the net proceeds of
any offering of common shares made under this prospectus will be received by a FINRA member participating in the offering or affiliates
or associated persons of such a FINRA member, the offering will be conducted in accordance with FINRA Rule 5121.

 

    	3exh_101.htm

EXHIBIT 10.1

 

MERCADOLIBRE, INC. 2014 LONG TERM RETENTION PROGRAM

 

 

	
  

	
Effective as of January 1, 2014

 

  

  

  

TABLE OF CONTENTS

 

	
Article 1

	
Purpose

	
12

	
Article 2

	
Definitions

	
12

	
Article 3

	
Participation; Performance Goals and Award Opportunities

	
15

	
Article 4

	
Review of Participant’s Performance

	
16

	
Article 5

	
Payment of Awards

	
16

	
Article 6

	
Termination of Employment; Forfeitures

	
17

	
Article 7

	
Administrative Provisions

	
18

 

 

  

  

  

MERCADOLIBRE, INC. 2014 LONG TERM RETENTION PROGRAM

 

Article 1

 

Purpose

 

Section 1.1. The MercadoLibre, Inc. 2014 Long Term Retention Program (the “Plan”) is effective as of January 1, 2014.  The principal purpose of the Plan is to assist the Company in the retention of key employees that have valuable industry experience and developed competencies by rewarding Participants in relation to their individual results and their contributions to the organization, as well as overall Company goals and performance.

 

Article 2

 

Definitions

 

Section 2.1. When used in the Plan, the following terms shall have the meanings set forth below:

 

“Affiliate” means with respect to any Person, a Person that controls, is controlled by, or is under common control with such Person (it being understood, that a Person shall be deemed to “control” another Person, for purposes of this definition, if such Person directly or indirectly has the power to direct or cause the direction of the management and policies of such other Person, whether through holding ownership interests in such other Person, through agreements or otherwise, and that direct or indirect ownership of ten percent (10%) or more of the voting interests of another Person shall always be deemed to constitute “control”).

 

“Award” means a specified amount, calculated in accordance with Article 5, payable to a Participant under this Plan for services provided to the Company in 2014 (i) in the case of Award payments made before a Change in Control, in cash, Shares or any combination of cash and Shares as determined by the Award Committee from time to time in its sole discretion or (ii) in the case of Award payments made on or after a Change in Control, in the form of cash only.  Award payments hereunder shall be contingent on the attainment of one or more Performance Goals.  The timing of the payment of an Award, as well as the conditions of such payment, is subject to the Plan terms.  An Award may, but is not required to, be evidenced by a separate agreement executed by the Participant.  Subject to Article 7, an Award will be subject to such terms and conditions which the Award Committee determine are appropriate.

 

“Award Committee” means the Compensation Committee of the Board, or such other committee that the Board appoints to administer this Plan, which shall have general administrative authority concerning the Plan, and shall, subject to Article 7, have the sole and absolute authority and discretion to resolve any and all terms and conditions of any Awards and disputes concerning the Plan and any Awards hereunder.

 

“Board” means the board of directors of the Company.

 

“Cause” means “cause” or a similar term set forth in the Participant’s employment agreement with the Company or, if no such agreement is then in effect, shall mean (A) the Participant’s material disregard of his responsibilities, authorities, powers, functions or duties or failure to act, (B) repeated or material negligence or misconduct by the Participant in the performance of his duties, (C) appropriation (or attempted appropriation) of a business opportunity of the Company, including attempting to secure or securing any personal profit in connection with any transaction entered into on behalf of the Company, (D) the commission by the Participant of any act of fraud, theft or financial dishonesty with respect to the Company, or any felony or criminal act involving moral turpitude or dishonesty on the part of the Participant, 

  

12

  

(E) the Participant’s habitual drunkenness or excessive absenteeism not related to sickness, and/or (F) the material breach by the Participant of any provision of his employment agreement that is not cured by the Executive within thirty (30) days after written notice of breach has been delivered to the Participant by the Company, unless such breach is incapable of cure (in which case the Participant shall not be entitled to an opportunity to cure), in each case of clauses (A) through (F) above, as determined by the Board in good faith.

 

“Change in Control” shall mean a change in control of the Company which will be deemed to have occurred after the date hereof if:

 

(a) any “person” as such term is used in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, is or becomes the beneficial owner, as such term is defined in Rule 13d-3 under the Exchange Act, directly or indirectly, of securities of the Company representing at least 50% of the combined voting power or common shares of the Company; provided, however, that such term shall not include (A) the Company or any of its subsidiaries, (B) any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its affiliates, (C) an underwriter temporarily holding securities pursuant to an offering of such securities, (D) any corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of the Company’s common shares, or (E) any person or group as used in Rule 13d-1(b) under the Exchange Act;

 

(b) there is consummated a merger or consolidation of the Company or any of its direct or indirect subsidiaries with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) more than 50% of the combined voting power and common shares of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation; or

 

(c) there is completed a sale or disposition by the Company of all or substantially all of the Company’s assets (or any transaction having a similar effect, including a liquidation) other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, more than fifty percent (50%) of the combined voting power and common shares of which is owned by shareholders of the Company in substantially the same proportions as their ownership of the common shares of the Company immediately prior to such sale.

 

“Company” means MercadoLibre, Inc. and its consolidated subsidiaries, and MercadoLibre, Inc.’s successors or assigns.

 

“Covered Termination” means (i) a termination of a Participant’s employment by the Company without Cause and for a reason other than the Participant’s death or disability (as determined under Article 6(a)) or (ii) a Participant’s resignation from the Company with Good Reason.

 

“Eligible Employee” means an individual who is designated by the Award Committee as eligible for this Plan and who is employed by the Company as determined by the Award Committee.

 

“Good Reason” means (i) a material diminution in the Participant’s duties, functions and responsibilities to the Company without the Participant’s consent or the Company preventing the Participant from fulfilling or exercising the Participant’s materials duties, functions and responsibilities to the Company without the Participant’s consent; (ii) a material reduction in the Participant’s base salary or bonus opportunity or (iii) a requirement that the Participant relocate 

  

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the Participant’s employment more than fifty (50) miles from the location of the Participant’s principal office without the consent of the Participant. A Participant’s resignation shall not be a resignation with Good Reason unless the Participant gives the Company written notice (delivered within thirty (30) days after the Participant knows of the event, action, etc. that the Participant asserts constitutes Good Reason), the event, action, etc. that the Participant asserts constitutes Good Reason is not cured, to the reasonable satisfaction of the Participant, within thirty (30) days after such notice and the Participant resigns effective not later than thirty (30) days after the expiration of such cure period.

 

“Market Value” of a Share, as of any date, means (i) the average closing sale price of one Share as reported on a national stock exchange, including, but not limited to, the NASDAQ Global Market (a “National Stock Exchange”) during the 60-trading day period (or such shorter period as the Shares are so listed) ending on the last trading day immediately preceding such date; (ii) if the Shares are not listed for trading on a National Stock Exchange during any day in that 60-trading day period but are quoted on the Over-the-Counter-Bulletin Board (the "OTCBB"), the mean between the closing bid and closing asked prices for the Shares as quoted on the OTCBB during the 60-trading day period (or such shorter period as the Shares are so quoted) ending on the last trading day immediately preceding such date, (iii) if the Shares are not listed for trading on a National Stock Exchange or quoted on the OTCBB during any day in that 60-trading day period and the shares were last traded on a National Stock Exchange, the average closing sale price of one Share as reported on the National Stock Exchange during the 90-trading day period ending on the last day the Shares were listed for trading on such Exchange or (iv) if the Shares are not listed for trading on a National Stock Exchange or quoted on the OTCBB during any day in that 60-trading day period and the shares were last traded on the OTCBB, the mean between the closing bid and closing asked prices for the Shares as quoted on the OTCBB during the 90-trading day period ending on the last day the Shares were quoted on the OTCBB. For purposes of calculating benefits and valuing Shares on or after a Change in Control, the term “Market Value” means the amount determined under the preceding sentence determined as of the date on which the Change in Control occurs..

 

“MercadoLibre Business” means any activities directly or indirectly related to Online Transactional Platforms, Online Classified Advertisements and/or Payment Platforms.

 

“Minimum Eligibility Conditions” means the minimum conditions established by the Award Committee and approved by the Board that a Participant must meet in order to be eligible to receive payments under any Award hereunder.

 

“Online Classified Advertisements” means listings of goods, products or services on Internet sites, which listings (1) serve the same purpose as the listings appearing in the classifieds section of printed newspapers, (2) include direct contact information of the seller via telephone, e-mail or any offline method, which contact information is readily and continuously available to any visitor without restriction or special action required from the visitor, or provide for a method to contact the seller so that the seller may then respond providing direct contact information, and (3) are on Internet sites the operator or administrator of which does not (x) play any role in consummating the transaction to which the listing relates, or (y) provide any information (other than contact information) to the seller regarding the potential buyer or interested party, or otherwise serve as middle-man between a potential buyer and seller (other than for the limited purposes expressly set forth in this paragraph), or (z) charge any fee or commission for such transaction (including, without limitation, any fees for completion of transactions and/or fees based on number of users contacting another user) other than a listing fee, which is a fee for placing the listing on the website and is chargeable before or at the time such listing appears. Examples of Online Classifieds Advertisements include Craigslist.com, Kijiji.com, and olx.com.

 

“Online Transactional Platforms” means online transactional platforms or similar as determined by the Award Committee including, but not limited to, (a) any online platform 

  

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offering a wide variety of product lines and/or services, operating in a manner similar to Amazon.com or Submarino.com as of the date hereof and/or (b) online transactional marketplaces located on websites in which sellers and potential buyers transact for any kinds of goods and/or services, which goods and/or services are displayed on such website, and in which the sellers’ and potential buyers’ initial contact can only be made through such website (for purposes of initial contact, direct contact information of another user is not made available to users, in accordance with the terms of use of such website), such as eBay.com, MercadoLibre.com, DeRemate.com, etc. (and any such domain name with country suffixes).

 

“Participant” means an Eligible Employee who is designated as eligible to receive an Award for services provided in 2014.  The designation of an individual as a Participant under this Plan shall not provide the individual with any rights to any future participation for any subsequent long term retention plans that may be adopted by the Company in future years but, subject to the terms of the Plan, an individual shall remain a Participant for purposes of receiving a payment of Award until such individual ceases to be an Eligible Employee.

 

“Payments Platforms” means websites or platforms enabling the sending, receipt, holding and/or transfer of money from one user to another user through an account that is funded by, among other things, traditional payment methods and then used to transact with another user electronically, such as PayPal.com, MercadoPago.com, or Dineromail.com (and any such domain name with country suffixes).

 

“Performance Goals” means any goals, metrics or other performance measures established for a Participant for services provided in 2014, the attainment of which will result in an Award becoming payable to the Participant, subject to the terms of the Plan.  It is currently anticipated that Performance Goals generally will be based on, and support, both individual and Company goals and may also include goals established for the particular division, affiliate or country in which the Participant is located.

 

“Person” means and includes a natural person, a corporation, an association, a partnership, a limited liability company, a trust, a joint venture, an unincorporated organization or any other similar entity or a governmental or quasi-governmental body.

 

“Shares” means shares of Common Stock of the Company, $0.001 par value per share.

 

“Territory” means the United States of America and each country and territory in Latin America and the Caribbean, including, without limitation, Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Uruguay, and Venezuela.

 

Article 3

 

Participation; Performance Goals and Award Opportunities

 

Section 3.1. The amount of the Award for each Plan Participant and the Performance Goals applicable to such Award will be established by the Award Committee and communicated to each Plan Participant.  The amount of each Award may be different for each Participant or levels of Participants as determined by the Award Committee.

 

Section 3.2. The amount of each Award shall be enumerated as a specified amount, calculated in accordance with Article 5 hereof, of United States dollars, unless the Award Committee determines the amount of any such Award in a local currency.  The amount of each Award, to the extent it becomes payable, shall be paid (i) in the case of Award payments made before a Change in Control, in cash, Shares or any combination thereof (including, but not limited to, either all cash or all Shares) as the Award Committee may deem appropriate and desirable 

 

  

15

  

from time to time during the term of the Plan or (ii) in the case of Award payments made on or after a Change in Control, in the form of cash only. The number of Shares issuable under an Award, if any, shall equal the quotient of (a) divided by (b), where (a), the numerator, equals the U.S. dollar amount of the Award that is payable in Shares, and (b), the denominator, equals the Market Value of the Shares as of the close of business on the business day prior to the date the Award is payable in any such year. Any Shares issued hereunder as payment of all or a portion of the Award as of any date shall be issued from the Company’s 2009 Equity Compensation Plan, or any such amended or successor plan thereto.

 

Article 4

 

Review of Participant’s Performance

 

Section 4.1. Performance Goals will generally be set and determined for the 2014 calendar year by the Award Committee. The Award Committee, with input from the Company officer responsible for each Participant, will evaluate such Participant’s performance relative to the Performance Goals.

 

Article 5

 

Payment of Awards

 

Section 5.1. If a Participant does not satisfy the Minimum Eligibility Conditions, then the Award shall be forfeited, and shall not become payable to such Participant under this Plan.  If the Participant meets the Minimum Eligibility Conditions, the Award shall become payable to the Participant in accordance with and subject to the terms of this Article 5 and Article 6.

 

Section 5.2. Subject to the following paragraph and Article 6, only if the Participant is employed as an Eligible Employee on the date each portion of the Award is to be paid to such Participant, the Award shall be payable as follows:

 

(a) 8.33% of the Award shall be payable to the Participant on or about March 31 of each calendar year for a period of six years (with the first payment occurring on or about March 31, 2015); and

 

(b) the Participant shall receive on or about March 31 of each calendar year for a period of six years (with the first payment occurring on or about March 31, 2015), an Award payment equal in value to the product of (i) multiplied by (ii), where (i) equals 8.33% of the Award and (ii) equals the quotient of (a) divided by (b), where (a), the numerator, equals the Market Value as of the applicable payment date and (b), the denominator, equals $118.48 (the average closing price of the Company’s common stock on the NASDAQ Global Market during the final 60 trading days of 2013).

 

Section 5.3. This paragraph applies to each Participant who experiences a Covered Termination on or after a Change in Control.  In that event, and notwithstanding the preceding paragraph and the vesting and forfeiture provisions otherwise provided in the Plan or any other agreement entered into in connection with or pursuant to the Plan, a Participant described in the preceding sentence shall have a vested and nonforfeitable right to each Award payment scheduled to be paid after the date of the Covered Termination and the total of such Award payments shall be paid to the Participant in a single cash payment within fifteen (15) days after the date of the Covered Termination.

 

Section 5.4. Notwithstanding anything in the Plan or any other agreement entered into in connection with or pursuant to the Plan, if the provisions of the Deficit Reduction Act of 1984 (“ DEFRA “) or Section 280G of the Internal Revenue Code of 1986, as amended (“Code”) relating to “excess parachute payments” (as defined by the Code) shall be applicable to any payment of an Award under the Plan, then the total amount of such payment shall be reduced by the least amount necessary such that the provisions of DEFRA and Section 280G of the Code 

 

  

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relating to “excess parachute payments” shall no longer be applicable to any payment of an Award or any other compensation that is subject to Section 280G of the Code; provided , however , that the Company shall use its commercially reasonable efforts to obtain the requisite approvals so that the limiting provisions of DEFRA and Section 280G of the Code would not be applicable to such payment.

 

Article 6

 

Termination of Employment; Forfeitures

 

Section 6.1. Except as provided in Article 5 with respect to a Covered Termination on or after a Change in Control, participation in the Plan shall cease immediately upon a Participant’s retirement, resignation or termination of employment as an Eligible Employee for any reason (with or without Cause), or if determined by the Award Committee, upon the Participant’s death or disability.  Disability will be determined under the Company’s long term disability plan, if any, or upon receipt of a letter of determination or similar of the Participant’s complete disability by the applicable governmental authority under local applicable law, which complete disability entitles the Participant to disability payments under local law.

 

Section 6.2. In the event that:

 

(a) while the Participant is employed by the Company, he or she engages in, directly or indirectly, any other business or activity that could materially or adversely affect the Company’s business or his or her ability to perform his or her duties for the Company, including, but not limited to, any activities adversely affecting the MercadoLibre Business anywhere in the Territory;

 

(b) while the Participant is employed by the Company or during the one-year period following the termination of the Participant’s employment for any reason, he or she directly or indirectly, on his or her own behalf or on behalf of another Person or entity, hires or solicits for hire any employees of the Company or its Affiliates or in any manner attempts to influence or induce any employee of the Company or its Affiliates to leave their employment; or

 

(c) while the Participant is employed by the Company or during the one-year period following the termination of the Participant’s employment for any reason, he or she alone (or in association with any other Person) directly or indirectly, in any capacity, owns, operates, manages, controls, engages in, invests in, becomes employed by, acts as a consultant or advisor to, or provides services for, or otherwise assists any other Person in activities that are competitive with the MercadoLibre Business anywhere in the Territory,

 

he or she will automatically forfeit any and all benefits received under the Plan and any and all benefits which the Participant may otherwise be entitled to receive under the Plan.  If the Participant terminates employment with the Company for any reason (with or without Cause) and he or she alone (or in association with any other Person) takes any of the action set forth in subparagraph (1), (2) or (3) above, the Participant will be required to immediately, and in no event more than five days following the termination of the Participant’s employment, return all amounts which the Participant has received under the terms of the Plan (the “Recovery Amount”), and the Participant and the Company hereby agree to the following, notwithstanding any Plan provision to the contrary:

 

  

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(i)

	
that the Company may withhold all or a portion of the Recovery Amount from any salary, wages or other amounts due to the Participant from the Company; and

 

	 	
(ii)

	
in addition to the Recovery Amount, the Company may also recover any fees incurred by the Company in seeking to collect the Recovery Amount, including, but not limited to, the Company’s reasonable attorneys’ fees.

 

Notwithstanding the foregoing, ownership of less than five percent (5%) of the outstanding capital stock of any Person whose securities are registered under the Securities Exchange Act of 1934, as amended, in and of itself shall not be cause for automatic forfeiture under Section 6(b)(3), whether or not the subject Person is competitive with the Company.

 

Section 6.3. Except as provided in Article 5 with respect to a Covered Termination on or after a Change in Control, the portion of any Award under this Plan that has not been actually paid to the Participant prior to the date of such resignation or other termination of employment shall be forfeited, except that the Award Committee, in its discretion, may pay all or part of the amount that remains payable under an Award upon the disability or death of the Participant in accordance with such rules or procedures established by the Award Committee provided, however, that any amount of the Award payment that the Award Committee determines to pay shall be paid no later than March 15 of the year following the year that the Participant’s employment ends on account of disability or death.  Notwithstanding any provision of the Plan to the contrary, any Award paid to the Participant shall be subject to recovery by the Company in the event that the Participant is terminated for Cause and shall, to the extent permitted by law, be subject to recovery from any amounts owed by the Company to the Participant, including, but not limited to, offsetting any amounts owed under the Plan to the Company against any amounts otherwise owed to the Participant by the Company.

 

Section 6.4. If the Award Committee decides to pay all or part of an Award after the death of a Participant in accordance with this Section 6, the Participant may designate in writing one or more persons (“beneficiary”) to receive any unpaid portion of the Participant’s Award upon the death of the Participant.  By similar action, the Participant may designate a change of beneficiary at any time, which change shall be effective only upon receipt by the Award Committee of said notice.  The last such designation form filed with the Award Committee prior to the Participant’s death shall control.  The Award Committee may establish a form or other requirements for such designation.  If the Participant designates his spouse as a beneficiary, the divorce of Participant shall automatically revoke that designation of his spouse as beneficiary except to the extent otherwise provided in a subsequent beneficiary designation filed by the Participant with the Award Committee.  In the absence of a written designation, or in the event the Participant dies without a beneficiary surviving him, any amount which would otherwise be payable on account of his death shall be paid to the surviving spouse of the Participant or if none, to the Participant’s estate.  A beneficiary of a Participant shall have no interest or rights hereunder during the lifetime of the Participant.

 

Article 7

 

Administrative Provisions

 

A.           The Plan was approved by the Board on March 31, 2014 to be effective as of January 1, 2014 for all services provided by Participants in 2014.

 

B.           Unless the Board provides otherwise, the Plan shall be administered and interpreted by the Award Committee, which has been provided absolute authority hereunder to administer the Plan.  The Board and its members, the members of the Award Committee and any 

 

  

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other individual who may, from time to time, have been delegated responsibility with respect to the administration of this Plan (collectively, “Authorized Persons”), shall have the full authority, discretion and power necessary or desirable to administer and interpret this Plan, in accordance with the Plan terms. Benefits under the Plan shall be payable only if the Authorized Persons in their respective sole and absolute discretion determine that any such benefits are properly payable under the Plan. Without in any way limiting the foregoing, all Authorized Persons shall have complete authority, sole discretion and power to: (i) determine the Participants; (ii) determine the Performance Goals applicable to each Participant, as well as the relative weighting of each such Performance Goals to determine eligibility for payment of an Award hereunder; (iii) evaluate and determine the performance of Participants; (iv) determine the amount of the Award for each Participant; (v) interpret the provisions of this Plan and any other documentation used in connection with this Plan, including documentation specifying individual Participant Performance Goals, Award opportunities and the like; (vi) establish and interpret rules, regulations and procedures (written or by practice) for the administration of the Plan; and (vii) make all other determinations and take all other actions necessary or desirable for the administration or interpretation of this Plan. The express grant in the Plan of any specific power to Authorized Persons shall not be construed as limiting any power or authority of such Authorized Person. All actions, decisions and interpretations of the Authorized Persons shall be final, conclusive and binding on all parties. All expenses of administering the Plan shall be borne by the Company.

 

C.           Nothing in this Plan shall be deemed by implication, action or otherwise to constitute a contract of employment or otherwise to impose any limitation on any right of the Company to terminate a Participant’s employment at any time for any or no reason.

 

D.           A Participant shall have no right to anticipate, alienate, sell, transfer, assign, pledge or encumber any right to receive any Award made under the Plan, nor will any Participant have any lien on any assets of the Company by reason of any Award made under the Plan.

 

E.           The Company shall have the right to deduct or withhold, or require a Participant to remit to the Company, any taxes required by law to be withheld from Awards made under this Plan.

 

F.           The Plan may be amended, suspended or terminated at any time and from time to time, by action of the Board or the Award Committee, but in any event, the Plan will be terminated no later than upon the last date the Company pays all Participants any and all amounts that may due under the Plan and no amounts remain due and payable under the Plan to any person as determined by Award Committee.  The preceding sentence to the contrary notwithstanding, on and after a Change in Control, no amendment, suspension or termination of the Plan that adversely affects the rights of a Participant (or the beneficiary of a deceased Participant who has not received payment of an amount approved by the Award Committee under Article 6), shall be effective without the written consent of that Participant or beneficiary.

 

G.           The adoption of the Plan does not imply any commitment to continue to maintain the Plan, or any modified version of the Plan, or any other plan for incentive compensation for such Participant for any period of time.  Neither the adoption of this Plan, its operation, nor any documents describing or referring to this Plan (or any part thereof) shall confer upon any employee any right to continue in the employ of the Company or in any way affect any right and power of the Company to terminate the employment of any employee at any time without assigning a reason therefor.

 

H.           This Plan, insofar as it provides for Awards, shall be unfunded, and the Company shall not be required to segregate any assets that may at any time be represented by Awards under the Plan.  Any liability of the Company to any person with respect to any Awards under this Plan shall be based solely upon any contractual obligations which may be created pursuant to this Plan.  

 

  

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No such obligation of the Company shall be deemed to be secured by any pledge of, or other encumbrance on, any property of the Company.

 

I.           In order to be effective, any amendment of this Plan or any Award must be in writing and made by the Award Committee.  No oral statement, representation, written presentation or the like shall have the effect of amending or modifying this Plan or any Award, or otherwise have any binding effect on the Company, the Board, the Chief Executive, the Award Committee or any individual who has been delegated authority to administer this Plan.

 

J.           The Plan shall be construed in accordance with and governed by the substantive laws of the State of Delaware, without regard to principles of conflicts of law.

 

K.           In case any provision of the Plan shall be held illegal or void, such illegality or invalidity shall not affect the remaining provisions of this Plan, but shall be fully severable, and the Plan shall be construed and enforced as if said illegal or invalid provisions had never been inserted herein.

 

L.           Except for their own gross negligence or gross misconduct regarding the performance of the duties specifically assigned to them under, or their willful breach of the terms of this Plan, the Company (and its affiliates), Board and its members, the Award Committee and its members, and any other entity or individual administering any aspect of this Plan shall be held harmless by the Participants and their respective representatives, heirs, successors, and assigns, against liability or losses occurring by reason of any act or omission under the Plan.

 

M.           No Shares shall be issued, no certificate for Shares shall be delivered, and no payment shall be made under this Plan except in compliance with all applicable federal and state laws and regulations (including, without limitation, withholding tax requirements) and the rules of all stock exchanges on which the Company’s shares may be listed.  The Company shall have the right to rely on an opinion of its counsel as to such compliance.  Any share certificate issued to evidence the issuance of Shares under this Plan may bear such legends and statements as the Award Committee may deem advisable to assure compliance with federal and state laws and regulations.  No Shares shall be issued, no certificate for shares shall be delivered, and no payment shall be made under this Plan until the Company has obtained such consent or approval as the Award Committee may deem advisable from regulatory bodies having jurisdiction over such matters.

 

N.           Should the Company effect one or more stock dividends, stock splits, subdivisions or consolidations of Shares or other similar changes in capitalization, then the maximum number of Shares that may be issued under this Plan shall be proportionately adjusted and the terms of outstanding Awards shall be adjusted as the Award Committee shall determine to be equitably required.  Any determination made under this Article 7(N) by the Award Committee shall be final and conclusive.  The issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, for cash or property, or for labor or services, either upon direct sale or upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Company convertible into such shares or other securities, shall not affect, and no adjustment by reason thereof shall be made with respect to, Awards.

 

Executed on the 31st day of March, 2014 to be effective as of the 1st day of January, 2014.

 

	 	 
MercadoLibre, Inc.

	 	 	 
	 	By:	 

 

 

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