Document:

Exhibit 10.2

 

Virtuoso Acquisition Corp.

180 Post Road East, Suite 201

Westport, CT 06880

 

May 28, 2021

 

Wejo Group Limited

ABC Building 21-23 Quay Street

Manchester M3 4AE

 

Re: Sponsor Agreement

 

Ladies and Gentleman:

 

This letter (this “Sponsor Agreement”)
is being delivered to you in accordance with that certain Agreement and Plan of Merger (“Merger Agreement”), dated
as of the date hereof, by and among Virtuoso Acquisition, Corp., a Delaware corporation (“VOSO”), Wejo Group Limited,
a company incorporated under the Laws of Bermuda (the “Company”), Yellowstone Merger Sub, Inc., a Delaware corporation
and direct, wholly- owned subsidiary of the Company (“Merger Sub”), Wejo Bermuda Limited, an exempted company limited
by shares incorporated under the Laws of Bermuda (“Limited”), and Wejo Limited, a private limited company incorporated
under the Laws of England and Wales with company number 08813730 (“Wejo”), and hereby amends and restates in its entirety
that certain letter, dated January 21, 2021, from Virtuoso Sponsor LLC (the “Sponsor”) and each of the other persons
undersigned hereto, each of whom is a member of VOSO’s board of directors and/or management team (each, an “Insider”)
to VOSO (the “Prior Letter Agreement”). Certain capitalized terms used herein are defined in Section 11. Capitalized
terms used but not defined herein shall have the respective meanings given to them in the Merger Agreement.

 

The Sponsor is currently, and
as of the Closing will be, the record owner of all of the outstanding Founder Shares and outstanding Sponsor VOSO Warrants, with the Sponsor’s
ownership (and anticipated changes in ownership as a result of the VOSO Warrant Recapitalization) detailed on Schedule A hereto.

 

As described further in Section
25, Schedule A will be updated from time to time to reflect any Sponsor ownership changes following the date hereof.

 

     

     

    

 

In order to induce VOSO and
the Wejo Parties to enter into the Merger Agreement and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Sponsor and each of the Insiders (each , a “Sponsor Person”) hereby agrees, severally and not
jointly, with VOSO and the Wejo Parties as follows:

 

1.  Voting
Obligations. During the Interim Period, each Sponsor Person, in its capacity as a holder of Covered Shares, agrees irrevocably
and unconditionally that, at the Special Meeting, at any other meeting of the shareholders of VOSO or, following the Transactions,
the Company (whether annual or special and whether or not an adjourned or postponed meeting, however called and including any
adjournment or postponement thereof), in connection with any written consent of shareholders of VOSO or, following the Transactions,
the Company, and in connection with any similar vote or consent of the holders of Sponsor VOSO Warrants, in their capacities as
such, such Sponsor Person shall, and shall cause any other holder of record of any of such Sponsor Person’s Covered Shares
to:

 

(a)
when such meeting is held, appear at such meeting or otherwise cause the Sponsor Person’s Covered Shares to be counted as
present thereat for the purpose of establishing a quorum;

 

(b)
 vote (or duly and promptly execute and deliver an action by written consent), or cause to be voted at such meeting (or cause such
consent to be duly and promptly executed and delivered with respect to), all of such Sponsor Person’s Covered Shares owned as of
the record date for determining holders entitled to vote at such meeting (or the record date for determining holders entitled to provide
consent) in favor of the VOSO Stockholder Matters and any other matters necessary or advisable for consummation of the Transactions (including
the VOSO Warrant Recapitalization, to the extent it is put to a vote or a request for written consent); and

 

(c)
vote (or duly and promptly execute and deliver an action by written consent), or cause to be voted at such meeting (or cause such
consent to be duly and promptly executed and delivered with respect to), all of such Sponsor Person’s Covered Shares against any
Business Combination Proposal (as defined below) and any other action that is intended, or would reasonably be expected, to impede, interfere
with or delay or postpone the consummation of, or otherwise adversely affect, any of the Transactions or result in a breach of any representation,
warranty, covenant or other obligation or agreement of VOSO under the Merger Agreement or result in a breach of any representation, warranty,
covenant or other obligation or agreement of such Sponsor Person under this Sponsor Agreement.

 

The obligations of the Sponsor Persons in this
Section 1 shall apply whether or not the board of directors of VOSO (or, following the Transactions, the Company) or other governing
body or any committee, subcommittee or subgroup thereof recommends the VOSO Stockholder Matters or any other matters necessary or advisable
for consummation of the Transactions and whether or not such board or other governing body, committee, subcommittee or subgroup thereof
changes, withdraws, withholds, qualifies or modifies, or publicly proposes to change, withdraw, withhold, qualify or modify, the VOSO
Board Recommendation.

 

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2. Exclusivity.
During the Interim Period, each Sponsor Person shall not take, nor shall it permit any of its Affiliates or Representatives to take,
whether directly or indirectly, any action to (i) solicit, initiate, continue or engage in discussions or negotiations with, or enter
into any agreement with, or encourage, respond, provide information to or commence due diligence with respect to, any Person (other than
Wejo, its shareholders and/or any of their Affiliates or Representatives), concerning, relating to or which is intended or is reasonably
likely to give rise to or result in, any offer, inquiry, proposal or indication of interest, written or oral relating to any Business
Combination (a “Business Combination Proposal”) or (ii) approve, endorse or recommend, or make any public statement
approving, endorsing or recommending, any Business Combination Proposal, in each of clauses (i) and (ii), other than a Business Combination
Proposal with Wejo, its shareholders and their respective Affiliates and Representatives. Each Sponsor Person shall, and shall cause
its Affiliates and Representatives to, immediately cease any and all existing discussions or negotiations with any Person conducted prior
to the date hereof with respect to, or which is reasonably likely to give rise to or result in, a Business Combination Proposal, other
than with Wejo, its shareholders or their respective controlled Affiliates.

 

3.  Waiver of Certain Rights. Each Sponsor Person hereby irrevocably and unconditionally agrees:

 

(a)
not to (i) demand that VOSO redeem its Covered Shares in connection with the Transactions or (ii) otherwise participate in any
such redemption by tendering or submitting any of its Covered Shares for redemption; and

 

(b)
not to commence or participate in, and to take all actions necessary to opt out of any class in any class action with respect to,
any claim, derivative or otherwise, against VOSO, the Wejo Parties, any Affiliate of VOSO or the Wejo Parties or any designee of a Sponsor
Person or Wejo Party acting in its capacity as director, officer or manager or in any similar capacity or any of their respective successors
and assigns relating to the negotiation, execution or delivery of this Sponsor Agreement, the Merger Agreement or the consummation of
the Transactions.

 

4. Reasonable
Best Efforts; Regulatory Undertakings.

 

(a)
During the Interim Period, each Sponsor Person and Wejo shall, and Wejo shall cause each Wejo Person to, (i) use reasonable best
efforts to take, or cause to be taken, all actions to do, or cause to be done, all things reasonably necessary, proper or advisable to
consummate the Transactions on the terms and subject to the conditions set forth in the Merger Agreement, and (ii) not take any action
that would reasonably be expected to prevent or delay the satisfaction of any of the conditions to the Transactions set forth in Article
X of the Merger Agreement.

 

(b)
Without limiting the generality of subsection (a) above, each Sponsor Person and Wejo shall, and Wejo shall cause each Wejo Person
to, use reasonable best efforts to take, or cause to be taken, all action, and to do, or cause to be done as promptly as practicable,
all things reasonably necessary, proper and advisable to obtain any required consent, waiver, approval, authorization, qualification from
any Regulatory Consent Authorities in connection with the Transactions.

 

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(c)
Without limiting the generality of the foregoing, each Sponsor Person and Wejo shall, and Wejo shall cause each Wejo Person to,
use reasonable best efforts to provide or cause to be provided (including, with respect to filings pursuant to the HSR Act, by its “Ultimate
Parent Entities”, as that term is defined in the HSR Act) as promptly as reasonably practicable and advisable to any Governmental
Authority information and documents relating to such party as requested by such Governmental Authority or necessary, proper or advisable
to permit consummation of the Transactions, including filing any notification and report form and related material required under the
HSR Act and any other filing or notice that may be required with any other Governmental Authority as promptly as reasonably practicable
and advisable after the date hereof and thereafter to respond as promptly as reasonably practicable and advisable to any request for additional
information or documentary material relating to such party that may be made. Each Sponsor Person shall supply as promptly as practicable
any additional information and documentary material relating to such Sponsor Person that may be requested by any Governmental Authority,
and furnish such necessary information and reasonable assistance as may be requested in connection with the preparation of any required
applications, notices, registrations and requests as may be required or advisable to be filed with any Governmental Authority (including
providing financial information and certificates as well as personal information of senior management or control persons, and making individuals
with appropriate seniority and expertise available to participate in discussions or hearings).

 

In addition, each Sponsor Person and each Wejo
Person appointed or designated, or proposed to be appointed or designated, to the board of directors of the Company or any Subsidiary,
including pursuant to the terms of Section 9.10 of the Merger Agreement, shall use reasonable best efforts to comply and cooperate with
and satisfy all requests and requirements made by any Governmental Authority in connection with any such appointment, designation or proposed
service, including by furnishing all requested information, providing reasonable assistance in connection with the preparation of any
required applications, notices and registrations and requests and otherwise facilitating access to and being available with respect to
any discussions or hearings.

 

5. VOSO
Contribution.

 

(a)
In connection with the Closing and immediately prior to the VOSO Contribution (as defined below), the Sponsor will transfer the
Sponsor VOSO Warrants to VOSO in exchange for a number of shares of VOSO Class C Common Stock equal to the number of shares of VOSO Class
A Common Stock underlying such Sponsor VOSO Warrant(s) (the “Sponsor VOSO Warrant Transfer”).

 

(b)
Immediately prior to the Effective Time, the Sponsor shall contribute its shares of VOSO Class C Common Stock to Limited in exchange
for (i) an equivalent number of equity interests in Limited (“Limited Interest”) equal in value to the Sponsor VOSO
Warrant exchanged for such share of VOSO Class C Common Stock in the Sponsor VOSO Warrant Transfer, and (ii) the right of the Sponsor
to cause Limited to acquire such Limited Interest(s) in exchange for, at the option of Limited, the Cash Amount or the Exchanged Shares
(such right, the “Exchange Right”, and each such Limited Interest and Exchange Right, together, an “Exchangeable
Unit”) in the manner described in this Section 5 (the “VOSO Contribution”). Following the VOSO Contribution,
all of the VOSO Class C Common Stock will be owned by Limited and shall remain outstanding.

 

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(c)
VOSO hereby represents and warrants that all of the Sponsor VOSO Warrants are held in book-entry form and that the transfer books
for the Sponsor VOSO Warrants are maintained by Continental Stock Transfer & Trust Company (the “Warrant Agent”).
During the Interim Period, VOSO shall not, and shall cause the Warrant Agent not to, allow the Transfer of any Sponsor VOSO Warrants or
allow any of the Sponsor VOSO Warrants to be represented by a certificate or other instrument. Further, the Sponsor shall not request
the Transfer of any Sponsor VOSO Warrants or request for any of the Sponsor VOSO Warrants to be represented by a certificate or other
instrument.

 

(d)
VOSO, Limited and the Sponsor agree to reasonably cooperate with each other and their respective officers, employees, attorneys,
accountants and other agents, and, generally, do such other reasonable acts and things in good faith as may be reasonably necessary to
effectuate the intents and purposes of the Sponsor VOSO Warrant Transfer and the VOSO Limited Contribution, subject to the terms and conditions
hereof and in compliance with applicable Law, including taking reasonable action to facilitate the filing of any document or the taking
of reasonable action to assist the other parties hereto in complying with the terms hereof.

 

(e)
The Exchange Right shall not be exercisable by the Sponsor until a date that is after the one year anniversary of the date the
VOSO Limited Contribution is completed.

 

6.
Transfer Restrictions.

 

(a)
During the Interim Period, except as expressly contemplated by the VOSO Contribution, the Sponsor shall not Transfer the Sponsor’s
Covered Shares.

 

(b)
For the period beginning on the Closing until the earlier of (i) one (1) year thereafter, or (ii) if the VWAP of the Company Common
Shares equals or exceeds $12.00 per share (as adjusted for share splits, share capitalizations, reorganizations, recapitalizations and
the like) for any twenty (20) Trading Days within a period of thirty (30) consecutive Trading Days, 150 days thereafter (such applicable
period, the “Lock-Up Period”), each Sponsor Person shall not, and shall cause any other holder of record of any of
such Sponsor Person’s Covered Shares not to, Transfer any of such Sponsor Person’s Covered Shares. Notwithstanding the immediately
preceding sentence, post-Closing Transfers of Covered Shares that are held by any Sponsor Person or any of its Permitted Transferees (as
defined below) that have entered into a written agreement contemplated by the proviso in this subsection (b) are permitted (i) to the
Company’s officers or directors, any Affiliates or family members of any of the Company’s officers or directors, to Sponsor,
any members or partners of the Sponsor or their Affiliates, any Affiliates of the Sponsor, or any employees of such Affiliates; (ii) in
the case of an individual, by gift to a member of the individual’s immediate family or to a trust, the beneficiary of which is a
member of the individual’s immediate family, an Affiliate of such Person or to a charitable organization; (iii) in the case of an
individual, by virtue of Laws of descent and distribution upon death of the individual; (iv) in the case of an individual, pursuant to
a qualified domestic relations order; (v) by virtue of the Laws of the State of Delaware or the Sponsor’s limited liability company
agreement, as amended from time to time, upon dissolution of the Sponsor; or (vi) in the event of the Company’s completion of a
liquidation, merger, amalgamation, share exchange, reorganization or other similar transaction which results in the holders of all of
the Company Common Shares having the right to exchange their shares for cash, securities or other property subsequent to the completion
of VOSO’s initial Business Combination (including the entry into an agreement in connection with such liquidation, merger, amalgamation,
share exchange, reorganization or other similar transaction); provided, however, that each transferee contemplated by clauses
(i) through (vi) (each, a “Permitted Transferee”) must enter into a written agreement with the Company agreeing to
be bound by the restrictions in this Sponsor Agreement.

 

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(c)
Any Transfer in violation of the provisions of this Section 6 shall be null and void ab initio and of no force or effect.

 

7.
Exchange of Securities. The Sponsor agrees that each Founder Share will be exchanged on a one-for-one basis (and on the
same basis as each share of VOSO Class A Common Stock) into one Company Common Share pursuant to and in accordance with the Merger Agreement.
The Founder Shares and Exchangeable Units shall be 100% vested from and after the Closing and will not be subject to any vesting restrictions.

 

8.
Certain Securities Laws Representations and Warranties. Each Sponsor Person hereby represents and warrants as follows:

 

(a)
it has never been suspended or expelled from membership in any securities or commodities exchange or association or had a securities
or commodities license or registration denied, suspended or revoked;

 

(b)
in the case of Insiders only, its biographical information furnished to VOSO, if any (including any such information included in
the Prospectus), is true and accurate in all material respects and does not omit any material information with respect to such Insider’s
background;

 

(c)
its questionnaire furnished to VOSO, if any, is true and accurate in all material respects;

 

(d)
it is not subject to or a respondent in any legal action for any injunction, cease-and-desist order or order or stipulation to
desist or refrain from any act or practice relating to the offering of securities in any jurisdiction;

 

(e)
it has never been convicted of, or pleaded guilty to, any crime (i) involving any fraud, (ii) relating to any financial transaction
or handling of funds of another Person or (iii) pertaining to any dealings in any securities, and it is not currently a defendant in any
such criminal proceeding; and

 

(f)
no Person (other than the Sponsor Persons), directly or indirectly, (i) controls VOSO, through one or more intermediaries or otherwise,
(ii) Beneficially Owns any Covered Shares or (iii) has entered into an express or implied agreement with any Sponsor Person with respect
to the voting of the Covered Shares for purposes of Section 422 of FISMA and Regulation 15 of the Transparency (Directive 2004/109/EC)
Regulations 2007 (other than as provided herein).

 

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To the extent requested or required in order to
confirm or substantiate, or otherwise in connection with, the representation set forth in Section 8(f) above, including in connection
with a request from a Governmental Authority related thereto, the Sponsor Persons shall cause their respective Affiliates to comply with
the terms of Section 4(b).

 

9.
Certain Payments. No Sponsor Person, nor any Affiliate thereof, nor any director, officer or manager of (or person acting
in a similar capacity with respect to) VOSO, shall receive from VOSO, any finder’s fee, reimbursement, consulting fee, monies in
respect of any repayment of a loan or other compensation prior to, or in connection with any services rendered in order to effectuate
the consummation of, VOSO’s initial Business Combination (regardless of the type of transaction that it is), other than the following,
none of which will be made from the proceeds held in the Trust Account prior to the completion of the initial Business Combination and,
subject to the terms of the Merger Agreement and as disclosed in connection therewith, each of which shall, as of and in connection with
the Closing, be paid off in full and no further liabilities or obligations with respect thereof shall be due and owing by VOSO or the
Company or any of its Subsidiaries from and after the Closing: (i) reimbursement of funds advanced to VOSO by the Sponsor to cover offering-related
and organizational expenses; (ii) reimbursement for office space and administrative support services provided to VOSO by the Sponsor,
in the amount of $10,000 per month; (iii) reimbursement for any actual, documented, out-of-pocket expenses related to identifying, investigating
and completing the initial Business Combination; and (iv) repayment of non-interest bearing loans which may be made by the Sponsor or
an affiliate of the Sponsor or certain of VOSO’s officers and directors to finance transaction costs in connection with an intended
initial Business Combination. During the Interim Period, each Sponsor Person agrees not to enter into, modify or amend any Contract between
or among any Sponsor Person or any Affiliate thereof, on the one hand, and the Company or any of its Subsidiaries, on the other hand,
that would contradict, limit, restrict or impair any Person’s ability to perform or satisfy any obligation under this Sponsor Agreement
or the Merger Agreement.

 

10.
Service as Officer or Director. Each Sponsor Person has full right and power, without violating any agreement to which it
is bound (including, without limitation, any non-competition or non-solicitation agreement with any employer or former employer), to enter
into this Sponsor Agreement and, as applicable, to serve as an officer, director or manager of (or in a similar capacity with respect
to) VOSO.

 

11.
Definitions. As used herein, the following terms shall have the respective meanings set forth below:

 

(a)
“Beneficially Own” means (i) to exercise voting or dispositive authority over a relevant security, as determined
under Rule 13d-3 of the Exchange Act and/or (ii) to hold such security or voting power relating to such security for the purposes of Section
422 of the Financial Services and Markets Act 2000, and/or (iii) to hold such security or voting power relating to such security for the
purposes of Regulation 15 of the Transparency (Directive 2004/109/EC) Regulations 2007.

 

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(b)
 “Business Combination” has the meaning given to it in the Prior Letter Agreement.

 

(c)
“Cash Amount” in respect of an Exchangeable Unit, means a cash amount equal to (i) the average trading price
of a Company Common Share on the last Trading Day prior to the Exchange Date less (ii) the strike price of an Sponsor VOSO Warrant exchanged
for such share of VOSO Class C Common Stock.

 

(d)  “Covered
Shares” means all Founder Shares, all Sponsor VOSO Warrants, all shares of VOSO Common Stock and all other Company Common Shares
and Exchangeable Units (including Exchangeable Units received in the VOSO Contribution) and other shares of capital stock or equity securities
of VOSO (prior to the Merger) or the Wejo Parties (following the Merger), or securities convertible into, exercisable or exchangeable
for the same, of which any Sponsor Person owns as of the date hereof or acquires record or beneficial ownership after the date hereof,
including by purchase, as a result of a stock dividend, stock split, recapitalization, combination, reclassification, exchange or change
of such shares, or upon exercise or conversion of any securities.

 

(e)   “Exchange
Date” means the date when the Sponsor desires Limited to exchange the Exchangeable Units for the Cash Amount or the Exchanged
Shares pursuant to the exercise of the Exchange Right.

 

(f)   “Exchanged
Shares” in respect of an Exchangeable Unit, means a number of Company Common Shares, valued at the average trading price of
a Company Common Share on the last Trading Day prior to the Exchange Date, equal to the Cash Amount.

 

(g)   “Founder
Shares” means, as of the date hereof, the 5,750,000 shares of VOSO Common Stock that were purchased in a private placement prior
to the Public Offering.

 

(h)   “Prospectus”
has the meaning given to it in the Prior Letter Agreement.

 

(i)   “Public
Offering” has the meaning given to it in the Prior Letter Agreement.

 

(j)   “Transfer”
means the (i) sale of, offer to sell, contract or agreement to sell, hypothecate, pledge, hedge, grant of any option to purchase or otherwise
dispose of in any manner (including by merger, consolidation, division, operation of law or otherwise) or agreement to dispose of, directly
or indirectly, or establishment or increase of a put equivalent position or liquidation with respect to or decrease of a call equivalent
position within the meaning of Section 16 of the Exchange Act and the rules and regulations of the SEC promulgated thereunder with respect
to, any security (including, for the avoidance of doubt, through a Transfer of equity securities in a Person who owns such security),
(ii) entry into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership
of any security, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise, or (iii) public announcement
of any intention to effect any transaction specified in clause (i) or (ii).

 

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(k)   “VWAP”
means, for any security as of any date(s), the dollar volume-weighted average price for such security on the principal securities exchange
or securities market on which such security is then traded during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00
p.m., New York time, as reported by Bloomberg or, if no dollar volume-weighted average price is reported for such security by Bloomberg
for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security
as reported by OTC Markets Group Inc. If the VWAP cannot be calculated for such security on such date(s) on any of the foregoing bases,
the VWAP of such security on such date(s) shall be the fair market value per share on such date(s) as reasonably determined by the Company’s
board of directors.

 

(j)  “Wejo
Person” means Wejo, the Company, Limited, Merger Sub, and each of the directors and officers of Wejo.

 

12.
Entire Agreement; Amendment; No Reliance. This Sponsor Agreement and the other agreements referenced herein constitute the
entire agreement and understanding of the parties hereto in respect of the subject matter hereof and supersede all prior understandings,
agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter
hereof or the transactions contemplated hereby, including, without limitation, with respect to the Sponsor Persons, the Prior Letter Agreement.
This Sponsor Agreement may not be changed, amended, modified or waived (other than to correct a typographical error) as to any particular
provision, except by a written instrument executed by the parties hereto. Each of VOSO and the Sponsor Persons hereby acknowledges and
agrees, on behalf of itself, its Affiliates and its Representatives, that, in connection with its entry into this Sponsor Agreement and
(if applicable) the Merger Agreement and agreement to consummate the Transactions, none of the foregoing has relied on any representations
or warranties of any Wejo Party or otherwise except for those expressly set forth in the Merger Agreement.

 

13.
Assignment. No party hereto may, except as set forth herein, assign either this Sponsor Agreement or any of its rights,
interests, or obligations hereunder without the prior written consent of the other parties. Any purported assignment in violation of this
Section 13 shall be void and ineffectual and shall not operate to transfer or assign any interest or title to the purported assignee.
This Sponsor Agreement shall be binding on the parties hereto and their respective successors, heirs, personal representatives, assigns
and (in the case of the Sponsor Persons) Permitted Transferees.

 

14.
No Third-Party Beneficiaries. Nothing in this Sponsor Agreement shall be construed to confer upon, or give to, any Person
other than the parties hereto any right, remedy or claim under or by reason of this Sponsor Agreement or of any covenant, condition, stipulation,
promise or agreement hereof. All covenants, conditions, stipulations, promises and agreements contained in this Sponsor Agreement shall
be for the sole and exclusive benefit of the parties hereto, and their respective successors, heirs, personal representatives and assigns
and (in the case of the Sponsor Persons) Permitted Transferees.

 

15.
Captions; Counterparts. The captions in this Sponsor Agreement are for convenience only and shall not be considered a part
of or affect the construction or interpretation of any provision of this Sponsor Agreement. This Sponsor Agreement may be executed in
two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

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16.
Severability. This Sponsor Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision
hereof shall not affect the validity or enforceability of this Sponsor Agreement or of any other term or provision hereof. Furthermore,
in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this
Sponsor Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

 

17.
Governing Law; Jurisdiction; Waiver of Jury Trial. Sections 12.06 and 12.12 of the Merger Agreement are incorporated herein
by reference, mutatis mutandis.

 

18.
Notices. Any notice, consent or request to be given in connection with any of the terms or provisions of this Sponsor Agreement
shall be in writing and shall be sent or given in accordance with the terms of Section 12.02 of the Merger Agreement to the applicable
party as its principal place of business.

 

19.  Termination.
This Sponsor Agreement shall terminate on the earlier of (i) the valid termination of the Merger Agreement (in which case this Sponsor
Agreement shall be of no force or effect and shall revert to the Prior Letter Agreement) and (ii) the expiration of the Lock-Up Period;
provided, that no such termination (including one that results in a reversion to the Prior Letter Agreement under clause (i)) shall
relieve any party hereto from any liability resulting from its pre-termination breach of this Sponsor Agreement.

 

20.  Other
Representations and Warranties. Each Sponsor Person hereby represents and warrants (severally and not jointly as to itself only) to
VOSO and the Wejo Parties as follows: (a) if such Person is not an individual, it is duly organized, validly existing and in good standing
under the Laws of the jurisdiction in which it is incorporated, formed, organized or constituted, and the execution, delivery and performance
of this Sponsor Agreement and the consummation of the transactions contemplated hereby are within such Person’s corporate, limited
liability company or other organizational powers and have been duly authorized by all necessary corporate, limited liability company or
other organizational actions on the part of such Person; (b) if such Person is an individual, such Person has full legal capacity, right
and authority to execute and deliver this Sponsor Agreement and to perform its obligations hereunder; (c) this Sponsor Agreement has been
duly executed and delivered by such Person and, assuming due authorization, execution and delivery by the other parties to this Sponsor
Agreement, this Sponsor Agreement constitutes a legally valid and binding obligation of such Person, enforceable against such Person in
accordance with the terms hereof (except as enforceability may be limited by the Enforceability Exceptions); (d) the execution and delivery
of this Sponsor Agreement by such Person do not, and the performance by such Person of its obligations hereunder will not, (i) if such
Person is not an individual, conflict with or result in a violation of the organizational documents of such Person, or (ii) require any
consent or approval that has not been given or other action that has not been taken by any third party (including under any Contract binding
upon such Person or such Person’s Covered Shares), in each case, to the extent such consent, approval or other action would prevent,
enjoin or materially delay the performance by such Person of its obligations under this Sponsor Agreement; (e) there is no Action pending
or, to the knowledge of such Person, threatened against such Person before (or, in the case of a threatened Action, that would be before)
any arbitrator or any Governmental Authority, which in any manner challenges or seeks to prevent, enjoin or materially delay the performance
by such Person of its obligations under this Sponsor Agreement; (f) except as disclosed pursuant to Section 6.08 of the Merger Agreement,
no financial advisor, investment banker, broker, finder or other similar intermediary is entitled to any fee or commission from such Person,
VOSO or the Company (or any of their respective Subsidiaries), or any Affiliates of any of the foregoing Persons in connection with the
Merger Agreement or this Sponsor Agreement or any of the respective transactions contemplated thereby and hereby, in each case, based
upon any arrangement or agreement made by or, to the knowledge of such Person, on behalf of such Person, for which VOSO, the Company and
Wejo or any of their respective Affiliates would have any obligations or liabilities of any kind or nature; (g) such Person has had the
opportunity to read the Merger Agreement and this Sponsor Agreement and has had the opportunity to consult with its tax and legal advisors;
(h) such Person has not entered into, and will not enter into, any agreement that would restrict, limit or interfere with the performance
of such Person’s obligations hereunder; (i) such Person has good and valid title to all Covered Shares held by it, and there exist
no Liens or any other limitation or restriction (including, without limitation, any restriction on the right to vote, sell or otherwise
dispose of such securities (other than transfer restrictions under the Securities Act) affecting any such securities, other than pursuant
to (A) this Sponsor Agreement, (B) the VOSO Bylaws, (C) the VOSO Charter, (D) the Merger Agreement or (E) any applicable securities Laws;
and (x) the Founder Shares, Sponsor VOSO Warrants, and VOSO Class A Common Stock listed on Schedule A are the only equity securities
in VOSO or any of its Subsidiaries (including, without limitation, any equity securities convertible into, or which can be exercised or
exchanged for, equity securities of VOSO) owned of record or Beneficially Owned by the Sponsor as of the date hereof and as of the Closing
Date and the Sponsor has the sole power to dispose of (or sole power to cause the disposition of) and the sole power to vote (or sole
power to direct the voting of) such Founder Shares, Sponsor VOSO Warrants, and VOSO Class A Common Stock, and none of such Founder Shares,
Sponsor VOSO Warrants or VOSO Class A Common Stock is subject to any proxy, voting trust or other agreement or arrangement with respect
to the voting of such Founder Shares, Sponsor VOSO Warrants or VOSO Class A Common Stock, except as provided in this Sponsor Agreement.

 

    9

     

    

 

21.   Equitable
Adjustments. If, and as often as, there are any changes in VOSO, the Company Common Shares, the Exchangeable Units, the Founder Shares,
the Sponsor VOSO Warrants, VOSO Class A Common Stock, or the VOSO Class C Common Stock by way of stock split, stock dividend, combination
or reclassification, or through merger, consolidation, reorganization, recapitalization or business combination, or by any other means,
equitable adjustment shall be made to the provisions of this Sponsor Agreement as may be required so that the rights, privileges, duties
and obligations hereunder shall continue with respect to VOSO, the Company Common Shares, the Exchangeable Units, the Founder Shares,
the Sponsor VOSO Warrants, the VOSO Class A Common Stock, or the VOSO Class C Common Stock, each as so changed.

 

22.   Stop
Transfer Order; Legend. Each Sponsor Person hereby authorizes VOSO and the Company to maintain a copy of this Sponsor Agreement at
either the executive office or the registered office of the Company. In furtherance of this Sponsor Agreement, each Sponsor Person hereby
authorizes VOSO and the Company, promptly after the date hereof, to enter, or cause its transfer agent to enter, a stop transfer order
with respect to all of such Sponsor Person’s Covered Shares with respect to any Transfer not permitted hereunder and to include
the following legend on any certificates or other instruments representing such Sponsor Person’s Covered Shares: “THE SHARES
OF STOCK OR OTHER SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN VOTING AND TRANSFER RESTRICTIONS PURSUANT TO THAT
CERTAIN SPONSOR AGREEMENT, DATED AS OF MAY 28, 2021, BY AND AMONG VOSO, A DELAWARE CORPORATION, WEJO GROUP LIMITED, A COMPANY INCORPORATED
UNDER THE LAWS OF BERMUDA, YELLOWSTONE MERGER SUB, INC., A DELAWARE CORPORATION AND DIRECT, WHOLLY-OWNED SUBSIDIARY OF THE COMPANY, WEJO
BERMUDA LIMITED, AN EXEMPTED COMPANY LIMITED BY SHARES INCORPORATED UNDER THE LAWS OF BERMUDA, WEJO, A PRIVATE LIMITED COMPANY INCORPORATED
UNDER THE LAWS OF ENGLAND AND WALES WITH COMPANY NUMBER 08813730, AND THE OTHER SIGNATORIES THERETO. ANY TRANSFER OF SUCH SHARES OF STOCK
OR OTHER SECURITIES IN VIOLATION OF THE TERMS AND PROVISIONS OF SUCH SPONSOR AGREEMENT SHALL BE NULL AND VOID AB INITIO AND HAVE NO FORCE
OR EFFECT WHATSOEVER.”

 

23.   Specific
Performance. Each Sponsor Person and each Wejo Person acknowledges and agrees that irreparable damage for which monetary damages,
even if available, would not be an adequate remedy, would occur in the event that a Sponsor Person or Wejo Person does not perform its
obligations under the provisions of this Sponsor Agreement (including failing to take such actions as are required of them hereunder to
consummate this Sponsor Agreement) in accordance with its specified terms or otherwise breach such provisions. Each Sponsor Person and
each Wejo Person acknowledges and agrees that (i) each of VOSO and the Wejo Parties shall be entitled to an injunction, specific performance,
or other equitable relief, to prevent breaches of this Sponsor Agreement and to enforce specifically the terms and provisions hereof and
thereof, without proof of damages, prior to the valid termination of this Sponsor Agreement in accordance with this Section 23,
this being in addition to any other remedy to which they are entitled under this Sponsor Agreement or any Transaction Agreement, and (ii)
the right of specific enforcement is an integral part of the transactions contemplated by this Sponsor Agreement and without that right,
none of the parties hereto would have entered into this Sponsor Agreement. Each Sponsor Person and each Wejo Person agrees that it will
not oppose the granting of specific performance and other equitable relief on the basis that the other parties hereto have an adequate
remedy at Law or that an award of specific performance is not an appropriate remedy for any reason at Law or equity. Each Sponsor Person
and each Wejo Person acknowledges and agrees that any party seeking an injunction to prevent breaches of this Sponsor Agreement and to
enforce specifically the terms and provisions of this Sponsor Agreement in accordance with this Section 23 shall not be required
to provide any bond or other security in connection with any such injunction.

 

    10

     

    

 

24.
Interpretation. Section 1.02 (Construction) and Section 12.05 (Expenses) of the Merger Agreement are incorporated herein by reference,
mutatis mutandis. Wherever this Sponsor Agreement uses “it”, “its” or derivations thereof to refer to natural
person Sponsor Persons or Wejo Persons, such references shall be deemed references to “her”, “him” or “his”,
as applicable.

 

25.   Updates
to Schedule A; Admission of New Sponsor Persons. During the Interim Period, the Sponsor shall promptly notify the Company and Wejo
of any increase, decrease or other change in the number of Founder Shares, Sponsor VOSO Warrants, VOSO Class A Common Stock, or other
Covered Shares held by or on behalf of the Sponsor (for the avoidance of doubt, the Sponsor acknowledges and agrees that Section 6(a)
prohibits all Transfers of its Covered Shares during the Interim Period, except as expressly contemplated by the VOSO Warrant Recapitalization).
From and after the Closing, each Sponsor Person shall promptly notify the Company of any increase, decrease or other change in the number
of Founder Shares or other Covered Shares held by or on behalf of such Sponsor Person, including as a result of a Transfer in compliance
with this Sponsor Agreement. Promptly following each such notification, the Company shall update, or cause to be updated, Schedule
A to reflect the applicable changes as they relate to Founder Shares, Sponsor VOSO Warrants, VOSO Class A Common Stock (in the case
of an Interim Period change) or Company Common Shares and Exchangeable Units (in the case of a post-Closing change) and provide a copy
of such updated Schedule A to each of the parties hereto, and such updated Schedule A shall control for all purposes of
this Sponsor Agreement (unless and until it is later updated in accordance with this Section 25). Any update to Schedule A
in accordance with this Sponsor Agreement shall not be deemed an amendment to this Sponsor Agreement for purposes of Section 12.

 

26.   Termination
of Existing Registration Rights Agreement. Effective as of (but subject to the consummation of) the Closing, (a) that certain Registration
and Shareholder Rights Agreement, dated as of January 21, 2021, by and among VOSO, Sponsor and the other parties thereto is hereby terminated
and of no force or effect, and (b) none of the parties thereto shall have any rights or obligations thereunder.

 

27.   Additional
Agreements. The Sponsor hereby represents and warrants to VOSO and the Wejo Parties that (i) on or prior to the date hereof, it has
delivered to VOSO and Wejo a capitalization table showing all of the direct equity owners of the Sponsor (the “Sponsor Cap Table”),
and (ii) the Sponsor Cap Table is true, correct and complete in all respects as of the date hereof. Notwithstanding anything to the contrary
herein, following the date hereof, the Sponsor shall provide written notice to VOSO and Wejo promptly following any change in the Sponsor
Cap Table.

 

28.   Further
Assurances. Each of the parties hereto agrees to execute and deliver hereafter any further document, agreement or instrument of assignment,
transfer or conveyance as may be necessary or desirable to effectuate the purposes hereof and as may be reasonably requested in writing
by another party hereto.

 

[Signature Pages Follows]

 

    11

     

    

 

IN WITNESS WHEREOF, the parties
hereto have executed this Sponsor Agreement on the day and year first above written.

 

	 	VIRTUOSO ACQUISITION CORP.
	 	 	 
	 	By: 	/s/ Jeffrey Warshaw
	 	Name: 	Jeffrey Warshaw
	 	Title:	 Chief Executive Officer
	 	 	 
	 	WEJO GROUP LIMITED
	 	 	 
	 	By: 	/s/ John Maxwell
	 	Name:	John Maxwell
	 	Title:	 Director
	 	 	 
	 	VIRTUOSO SPONSOR LLC
	 	 	 
	 	By: 	/s/ Jeffrey Warshaw
	 	Name:	 Jeffrey Warshaw
	 	Title:	 Chief Executive Officer

 

[Signature Page to Sponsor Agreement]

 

    12

     

    

 

	 	INSIDERS
	 	 	 
	 	By: 	/s/ Jeffrey Warshaw
	 	Name: 	Jeffrey Warshaw
	 	 	 
	 	By: 	/s/ Mike Driscoll
	 	Name: 	Mike Driscoll
	 	 	 
	 	By: 	/s/ Sam Hendel
	 	Name: 	Sam Hendel
	 	 	 
	 	By: 	/s/ Alan Masarek
	 	Name: 	Alan Masarek
	 	 	 
	 	By: 	/s/ Peggy Koenig
	 	Name: 	Peggy Koenig

 

[Signature Page to Sponsor Agreement]

 

     

     

    

 

Schedule A

Ownership of Securities

 

	Sponsor	 	Founder Shares	 	 	Sponsor VOSO Warrants	 	 	VOSO Class A Common Stock	 	 	Exchangeable Units Received in the VOSO Contribution	 	 	VOSO Class C Common Stock	 	 	Other Covered Shares	 
	Virtuoso Sponsor LLC	 	 	5,750,000	 	 	 	6,600,000	 	 	 	— 	 	 	 	6,600,000	 	 	 	6,600,000	 	 	 	—ex_253579.htm

 

Exhibit 4.5

 

CKX LANDS, INC.

STOCK INCENTIVE PLAN

 

SECTION 1

GENERAL PROVISIONS

 

1.1          Purpose.  CKX Lands, Inc. hereby adopts this stock incentive plan (the “Plan”) to provide: (a) incentives to attract able persons to remain in or to enter the employ of the Company; (b) a means whereby Eligible Participants, upon whom the responsibilities of the successful administration, management, planning, and/or organization of the Company may rest, and whose present and potential contributions to the welfare of the Company are of importance, can acquire and maintain stock ownership, thereby strengthening their concern for the long-term welfare of the Company; and (c) Eligible Participants with additional incentive and reward opportunities designed to enhance the profitable growth of the Company over the long term by reinforcing the relationship between Eligible Participants’ rewards and stockholder gains.

 

1.2          Types of Awards.  Awards under the Plan may be made to Eligible Participants in the form of (a) Restricted Stock Units and (b) Performance Shares.

 

1.3          Effective Date.  The Plan, as amended and restated hereby, shall be effective on the date that it is approved by the Company’s stockholders at a duly called meeting of the stockholders and adopted by the Board at a duly called meeting of the Board following such stockholders’ meeting (the “Effective Date”).

 

1.4          Compliance with Applicable Agreements.  Notwithstanding anything else in this Plan or an Agreement to the contrary, the terms and conditions of any Award shall comply with any applicable employment or consulting agreement between the Company and a Participant, as it may be amended from time to time.

 

SECTION 2

DEFINITIONS

 

Except where the context otherwise indicates, the following definitions apply:

 

2.1          “Agreement” means the written agreement evidencing an Award granted to the Participant under the Plan.

 

2.2         “Applicable Law” means the laws, rules and regulations relating to the administration of stock option plans and other stock incentive plans under Louisiana law relating to corporations, applicable federal and state securities laws, the Code, any stock exchange or quotation system on which the Shares are listed or quoted, and the applicable laws, rules and regulations of any country or jurisdiction where Awards are granted under the Plan.

 

2.3          “Award” means an award granted to a Participant under the Plan that is a Restricted Stock Unit or a Performance Share, or a combination of these.

 

2.4         “Board” means the Board of Directors of the Company, or, to the extent of any authority delegated to a Committee pursuant to Section 3, the Committee.

 

2.5          “Change in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:

 

	 	
			(a)

				
			the acquisition (other than an acquisition from or by the Company or by a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control with the Company) by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than 50 percent of the then outstanding shares of common stock of the Company; or

			

 

1

 

 

	 	
			(b)

				
			the consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company or the consummation of the acquisition by the Company of assets of another corporation (each of the foregoing, a “Business Combination”), in each case, unless, following such Business Combination, the individuals and entities who were the beneficial owners, respectively, of the outstanding common stock of the Company immediately prior to such Business Combination beneficially own, directly or indirectly, more than fifty percent (50%) of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the corporation surviving or resulting from such Business Combination (or of a corporation which as a result of such transaction controls the Company or owns all or substantially all of the Company’s assets either directly or through one or more subsidiaries), in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the common stock of the Company; or

			

 

	 	
			(c)

				
			individuals who, as of the close of business on the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to such date whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

			

 

	 	
			(d)

				
			approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

			

 

2.6          “Code” means the Internal Revenue Code of 1986, as now in effect or as hereafter amended. All citations to sections of the Code are to such sections as they may from time to time be amended or renumbered.

 

2.7          “Committee” means such committee as may be appointed by the Board to administer this Plan pursuant to Section 3.

 

2.8          “Company” means CKX Lands, Inc., a Louisiana corporation, and its affiliates and subsidiaries, and their respective successors and assigns.

 

2.9        “Consultant” means any natural person, including an advisor or independent contractor (a) who is engaged to provide bona fide services to the Company, provided such services are not in connection with the offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities or (b) whom a Director or key employee determines to have provided, or may in the future provide, valuable services to the Company.

 

2.10        “Director” means any individual who is a member of the Board; provided, however, that any Director who is employed by the Company shall also be considered an employee for purposes of the Plan.

 

2.11        “Disability” shall have the meaning ascribed to such term in the applicable Agreement or if not therein defined, shall have such meaning as determined by the Board from time to time.

 

2.12        “Effective Date” shall have the meaning ascribed to such term in Section 1.3 hereof.

 

2.13      “Eligible Participant” means (a) the executive officers and other key employees (including employees who are also Directors) of the Company who occupy responsible managerial and professional positions, or (b) Consultants, who, in each case of (a) and (b), have the capability of making substantial contributions to the success of the Company.

 

2

 

 

2.14        “Exchange Act” means the Securities Exchange Act of 1934, as now in effect or as hereafter amended. All citations to sections of the Exchange Act or rules thereunder are to such sections or rules as they may from time to time be amended or renumbered.

 

2.15      “Fair Market Value” means, (a) if the common stock is not traded publicly, the fair market value as determined in good faith by the Board by the reasonable application of a reasonable valuation method and in accordance with Section 409A, including, but not limited to, (i) an independent valuation no more than 12 months old at the date of grant, (ii) a fair market valuation formula determined by the Board in good faith (which may take into consideration recent arms’ length transactions involving the sale or transfer of Shares), or (iii) a written report prepared by an experienced individual (who need not be independent) that takes into account all relevant factors, including control premiums or discounts for lack of marketability, all in compliance with the requirements of Section 409A; or, (b) if the common stock is traded publicly, (i) the closing sale price per Share on the date in question on the principal national securities exchange on which such Share is sold on such date, or, if no sale was reported on such date, the average of the closing bid and asked prices on the principal national securities exchange on which the Share is listed or admitted to trading; or, if such exchange is closed on such date, the last sales price reported for the Company’s Shares on the last preceding day on which the principal national exchange on which the such Share is sold was open, and if no sale of the Company’s Shares was reported on such preceding day, then the average of the closing bid and asked prices of the Share on such preceding day; or (ii) if the Share is not listed nor listed or admitted to trading on a national securities exchange, then the average of the closing bid and asked prices, as reported by The Wall Street Journal for the over-the-counter market, on such date.

 

2.16        “Insider” shall mean an individual who is, on the relevant date, subject to the reporting requirements of Section 16(a) of the Exchange Act.

 

2.17        “Participant” means an Eligible Participant to whom an Award has been granted.

 

2.18        “Permitted Transferee” means any member of the immediate family of the Participant (i.e., spouse, children, and grandchildren), any trust for the benefit of such family members or any partnership whose only partners are such family members.

 

2.19        “Performance Share” means an Award under Section 6 of the Plan that is valued by reference to a Share, which value may be paid to the Participant by delivery of such property as the Board shall determine, including without limitation, cash or Shares, or any combination thereof, upon achievement of such performance objectives during the relevant performance period as the Board shall establish at the time of such Award or thereafter.

 

2.20        “Plan” shall have the meaning ascribed to such term in Section 1.1 hereof, and as it may be further amended from time to time.

 

2.21        “Restricted Stock Unit” or “RSU” means a right granted under Section 5 of the Plan to receive a number of Shares or a cash payment for each such Share equal to the Fair Market Value of a Share on a specified date.

 

2.22        “Restriction Period” shall have the meaning ascribed thereto in the Agreement. 

 

2.23        “Share” means one share of common stock, no par value, of the Company, and as such Share may be adjusted pursuant to the provisions of Section 4.3 of the Plan.

 

SECTION 3

ADMINISTRATION

 

3.1          General.  This Plan shall be administered by the Board or by a committee of the Board consisting of two or more Directors meeting the independence requirements of the NYSE American stock exchange or such other stock exchange on which the Company’s common stock is then listed, each of whom qualifies as a “Non-Employee Director” within the meaning of Rule 16b-3 under the Exchange Act. 

 

3

 

 

3.2          Authority of the Board. 

 

	 	
			(a)

				
			The Board shall have the right to interpret, construe and administer the Plan and Awards granted pursuant to the Plan, to select the Eligible Participants who are to receive an Award from time to time, and to act in all matters pertaining to the granting of an Award and the contents of the Agreement evidencing the Award, including without limitation the determination of the number of Restricted Stock Units and/or Performance Shares subject to an Award and the form, terms, conditions and duration of each Award, and any amendment thereof consistent with the provisions of the Plan. The Board may adopt, amend and rescind such rules, regulations and procedures for the administration of this Plan as it deems appropriate.

			

 

	 	
			(b)

				
			Subject to Section 11 of the Plan, the Board may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Agreement in the manner and to the extent it shall deem desirable to carry it into effect.

			

 

	 	
			(c)

				
			If the Company shall assume outstanding employee benefit awards or the right or obligation to make future such awards in connection with the acquisition of another corporation or business entity, the Board may, in its discretion, make such adjustments in the terms of Awards under the Plan as it shall deem appropriate.

			

 

	 	
			(d)

				
			The Board shall be entitled to make such rules, regulations and determinations as it deems appropriate under the Plan in respect of any leave of absence taken by a Participant. Without limiting the generality of the foregoing, the Board shall be entitled to determine (i) whether or not any such leave of absence shall constitute a termination of employment within the meaning of the Plan or a “separation from service” within the meaning of Section 409A(a)(2) of the Code, and (ii) the impact, if any, of any such leave of absence on Awards under the Plan theretofore made to any Participant who takes a leave of absence.

			

 

	 	
			(e)

				
			All acts, determinations and decisions of the Board made or taken pursuant to grants of authority under the Plan or with respect to any questions arising in connection with the administration and interpretation of the Plan, including the severability of any and all of the provisions thereof, shall be in the Board’s sole discretion and shall be conclusive, final and binding upon all parties, including the Company, its stockholders, Participants, Eligible Participants and their estates, beneficiaries and successors.

			

 

3.3          Delegation of Authority.  The Board may, at any time and from time to time, delegate to one or more persons or Committees any or all of its authority under Section 3.2, to the full extent permitted by Applicable Law.

 

3.4        Award Agreements.  Each Award granted under the Plan shall be evidenced by a written Agreement. Each Agreement shall be subject to and incorporate, by reference or otherwise, the applicable terms and conditions of the Plan and any other terms and conditions, not inconsistent with the Plan, as may be imposed by the Board, including without limitation provisions related to the consequences of termination of employment. A copy of such document shall be provided to the Participant and the Board may, but need not, require that the Participant sign a copy of the Agreement.

 

3.5          Indemnification.  In addition to such other rights of indemnification as they may have as Directors or as members of the Committee, the members of the Board or Committee shall be indemnified by the Company against reasonable expenses, including attorney’s fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan or any Award granted thereunder, and against all amounts paid by them in settlement thereof, provided such settlement is approved by legal counsel selected by the Company, or paid by them in satisfaction of a judgment or settlement in any such action, suit or proceeding, except as to matters as to which the Board or Committee member has been grossly negligent or engaged in willful misconduct in the performance of his duties; provided, that within sixty (60) days after institution of any such action, suit or proceeding, the member shall in writing offer the Company the opportunity, at its own expense, to handle and defend the same.

 

4

 

 

SECTION 4

SHARES SUBJECT TO THE PLAN

 

4.1          Number of Shares. 

 

	 	
			(a)

				
			Subject to adjustment as provided in (b) below and in Section 4.3, the aggregate number of Shares which are available for issuance pursuant to all Awards under the Plan is 357,000 Shares. Not more than 76,755 of the Shares issued under the Plan may be granted in the form of Restricted Stock Units and not more than 280,245 of the Shares issued under the Plan may be granted in the form of Performance Shares. Such Shares shall be made available from Shares currently authorized but unissued or to the extent permitted by Applicable Law, from Shares acquired by the Company for the purposes set forth herein.

			

 

	 	
			(b)

				
			The following rules shall apply for purposes of the determination of the number of Shares available for grant under the Plan:

			

 

	 	
			(i)

				
			Shares issued and withheld by the Company to satisfy the Participant’s tax withholding obligation with respect to any Award shall be counted as used.

			

 

	 	
			(ii)

				
			Shares subject to an Award shall not be counted as used unless and until they are actually issued and delivered to a Participant. Therefore, Shares reserved for issuance with respect to Awards that expire or are forfeited or canceled prior to issuance or are settled without the delivery of Shares, or with respect to which the performance terms are not met, shall again be available for issuance pursuant to another Award under the Plan. Also, if for any reason any Shares subject to an Award under the Plan are issued but are reacquired by the Company, for reasons including, but not limited to, a forfeiture or repurchase of an Award (“Returned Shares”), such Returned Shares shall again be available for issuance pursuant to another Award under the Plan.

			

 

	 	
			(iii)

				
			The Board shall reserve one Share for each Restricted Stock Unit awarded that may be settled in Shares. The Board shall reserve Shares to allow for issuance of the maximum number of Shares that may be awarded under an Agreement with respect to Performance Shares. Any such Awards that may not be settled in Shares shall not require a reserve.

			

 

4.2          Individual Limits.  For each Award under the Plan, the number of Performance Shares awarded to a Participant shall equal approximately 78.5% of the Award, and the number of Restricted Stock Units awarded to a Participant shall equal approximately 21.5% of the Award.

 

4.3          Adjustment of Shares.  If any change in corporate capitalization, such as a stock split, reverse stock split, stock dividend, or any corporate transaction such as a recapitalization, reorganization, reclassification, combination, exchange, merger or consolidation or separation, including a spin-off, of the Company or sale or other disposition by the Company of all or a portion of its assets, any other change in the Company’s corporate structure, or any distribution to stockholders (other than a cash dividend) results in the outstanding Shares, or any securities exchanged therefor or received in their place, being exchanged for a different number or class of shares or other securities of the Company, or for shares of stock or other securities of any other corporation; or new, different or additional shares or other securities of the Company or of any other corporation being received by the holders of outstanding Shares; then appropriate adjustments shall be made by the Board at its discretion, in an equitable manner consistent with the circumstances, including, but not limited to, the following:

 

	 	
			(a)

				
			the limitations on the aggregate number of Shares that may be awarded as set forth in Section 4.1;

			

 

5

 

 

	 	
			(b)

				
			the limitations on the allocation of the number of Restricted Stock Units and Performance Shares that may be awarded to any one single Participant as set forth in Section 4.2.

			

 

	 	
			(c)

				
			the number and class of Shares that may be subject to an Award, and which have not been issued or transferred under an outstanding Award; and

			

 

	 	
			(d)

				
			the terms, conditions or restrictions of any Award and Agreement, including the price payable for the acquisition of Shares;

			

 

provided that the Board gives each Participant an opportunity to take appropriate action with respect to outstanding Awards if the Board’s action would limit the Participant’s rights.

 

The existence of the Plan and the Awards made hereunder shall not affect in any way the right or power of the Board or stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the structure or capitalization of the Company or its business, any merger or consolidation of the Company, including a Business Combination or a Change in Control, any issuance of debt or equity securities having any priority or preference with respect to or affecting the Shares or the rights thereof, the dissolution or liquidation of the Company, or any sale, lease, exchange or other disposition of all or any part of their assets or business or any other corporate act or proceeding.

 

SECTION 5

RESTRICTED STOCK UNITS

 

5.1          Restricted Stock Units.  Awards of Restricted Stock Units may be made to Eligible Participants in accordance with the following terms and conditions:

 

	 	
			(a)

				
			The Board shall determine the number of RSUs to grant to a Participant, the Restriction Period and other terms and conditions of the Award not inconsistent with this Plan, including whether the Award will be paid in cash, Shares or a combination of the two and the time when the Award will be payable (i.e., at vesting, termination of employment, Change in Control, or another date).

			

 

	 	
			(b)

				
			Unless the Agreement provides otherwise, RSUs shall not be sold, transferred or otherwise disposed of and shall not be pledged or otherwise hypothecated.

			

 

	 	
			(c)

				
			Restrictions upon RSUs awarded hereunder shall lapse at such time or times and on such terms and conditions as the Board may provide in the Agreement.

			

 

	 	
			(d)

				
			The Agreement shall set forth the terms and conditions that shall apply upon the termination of the Participant’s employment with or services to the Company (including a forfeiture of RSUs for which the restrictions have not lapsed upon Participant’s ceasing to be employed) as the Board may, in its discretion, determine at the time the Award is granted.

			

 

	 	
			(e)

				
			An Award of Restricted Stock Units may provide the holder thereof with dividends or dividend equivalents, payable in cash or in additional Restricted Stock Units (or a combination thereof), as determined by the Board, on a current or deferred basis. Except as otherwise provided in the Participant’s Agreement, a Participant shall be entitled to receive any dividends declared subsequent to the vesting of Restricted Stock Units with respect to the Shares subject to the vested portion of the RSUs that have not yet been distributed to the Participant. In addition, unless otherwise provided in the Participant’s Agreement, a Participant shall be entitled to exercise full voting rights with respect to vested RSUs.

			

 

6

 

 

SECTION 6

PERFORMANCE SHARES

 

6.1          Grant of Performance Shares.  Performance Shares may be granted to Eligible Participants in such amounts and upon such terms as are consistent with this Plan, and at any time and from time to time, as shall be determined by the Board.

 

6.2          Performance Share Agreement.  In the applicable Agreement, the Board shall set the Performance Measures in its discretion which, depending on the extent to which they are met, will determine the number of Performance Shares that will be paid out to the Participant.  For purposes of this Section 6, the time period during which the Performance Measures must be met shall be called a “Performance Period.”

 

6.3          Earning of Performance Shares.  Subject to the terms of this Plan and the applicable Agreement, the holder of Performance Shares shall be entitled to receive a payout of the number of Performance Shares earned by the Participant during the Performance Period, to be determined as a function of the extent to which the corresponding Performance Measures have been achieved. 

 

6.4         Form and Timing of Payment of Performance Shares.  Subject to the terms of this Plan and the applicable Agreement, the Board may pay earned Performance Shares in the form of cash or in Shares (or in a combination thereof) that has an aggregate Fair Market Value equal to the value of the earned Performance Shares at the time of vesting.  Such Shares may be issued subject to any restrictions deemed appropriate by the Board.  The determination of the Board with respect to the form and timing of payout of such Awards shall be set forth in the Agreement pertaining to the grant of the Award.

 

Except as otherwise provided in the Participant’s Agreement, a Participant shall be entitled to receive any dividends declared subsequent to the vesting of Performance Shares with respect to earned Performance Shares that have not yet been distributed to the Participant.  In addition, unless otherwise provided in the Participant’s Agreement, a Participant shall be entitled to exercise full voting rights with respect to earned Performance Shares.

 

6.5          Nontransferability.  Except as otherwise provided in a Participant’s Agreement, Performance Shares may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated by a Participant, other than by will or by the laws of descent and distribution of the state in which the Participant resided on the date of his death.  Further, except as otherwise provided in a Participant’s Agreement, a Participant’s rights under the Award shall be exercisable during the Participant’s lifetime only by the Participant or the Participant’s guardian or legal representative.

 

SECTION 7

PERFORMANCE MEASURES

 

The performance measure(s) to be used for purposes of determining the degree of vesting and payout of Performance Share Awards (the “Performance Measures”) shall be chosen from among the following: earnings, earnings per share, consolidated pre-tax earnings, net earnings, operating income, EBIT (earnings before interest and taxes), EBITDA (earnings before interest, taxes, depreciation and amortization), gross margin, revenues, revenue growth, market value added, economic value added, return on equity, return on investment, return on assets, return on net assets, return on capital employed, return on sales, total stockholder return, profit, economic profit, capitalized economic profit, after-tax profit, pre-tax profit, cash flow measures, cash flow return, sales, sales volume, inventory turnover ratio, stock price, cost, and/or unit cost, or any function of any of the foregoing factors.  For any Performance Period, the targeted level or levels of performance with respect to chosen Performance Measures may be established on an absolute basis or relative to a group of peer companies selected by the Board, relative to internal goals or relative to levels attained in prior years.

 

The Board shall be authorized to make adjustments in performance-based criteria or in the terms and conditions of other Awards in recognition of unusual or nonrecurring events affecting the Company or its financial statements or changes in Applicable Law or accounting principles.  The Board shall also have the discretion to adjust the determinations of the degree of attainment of the pre-established Performance Measures.

 

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If Applicable Law permits Board discretion to alter or establish other governing Performance Measures without obtaining stockholder approval of such changes, the Board shall have sole discretion to make such changes without obtaining stockholder approval.

 

SECTION 8

BENEFICIARY DESIGNATION

 

Each Participant under the Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under the Plan is to be paid in case of his death before he receives any or all of such benefit.  Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Board, and will be effective only when filed by the Participant in writing with the Board during the Participant’s lifetime.  In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate.

 

SECTION 9

DEFERRALS

 

To the extent set forth in the Agreement evidencing an Award, the Board may permit or require a Participant to defer under this Plan or to a separate deferred compensation arrangement of the Company such Participant’s receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant by virtue of the conversion or vesting of Restricted Stock Units or the satisfaction of any requirements or goals with respect to Performance Shares.  If any such deferral election is required or permitted, the Board shall, in its sole discretion, establish rules and procedures for such payment deferrals.

 

Notwithstanding anything in this Plan or any Agreement to the contrary, however, with respect to all compensation deferred under this Plan or any Agreement within the meaning of Section 409A(a)(1)(A) of the Code, whether by action of the Board or by the election of the Participant, this Plan incorporates and makes applicable to such deferred compensation the requirements of paragraphs (2), (3) and (4) of Section 409A(a) of the Code.  If changes are made to Section 409A of the Code or regulations are promulgated thereunder, in either case to permit greater flexibility with respect to any Awards under the Plan that constitute deferred compensation, the Board may, subject to the requirements of Section 11, make any adjustments it deems appropriate.

 

SECTION 10

WITHHOLDING

 

10.1        Tax Withholding.  The Company shall have the power and the right to deduct or withhold from any cash or property payable to a Participant under the Plan, or require a Participant to remit to the Company, an amount sufficient to satisfy Federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan.

 

10.2        Share Withholding.  With the consent of the Board, with respect to withholding required upon any taxable event arising from the Company’s obligation to issue or transfer Shares to a Participant under the Plan, the Participant may satisfy the withholding requirement by having the Company withhold Shares having a Fair Market Value on the date the withholding obligation is incurred equal to the amount of tax required to be withheld with respect to the transaction.  All such elections shall be subject to any restrictions or limitations that the Board, in its sole discretion, deems appropriate.

 

SECTION 11

AMENDMENT AND TERMINATION

 

11.1        Amendment of Plan.  The Board may at any time terminate or from time to time amend the Plan in whole or in part, but no such action shall adversely affect any rights or obligations with respect to any Awards previously granted under the Plan, unless the affected Participants consent in writing.  To the extent required by Applicable Law, no amendment shall be effective unless approved by the stockholders of the Company at an annual or special meeting.

 

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11.2        Amendment of Award Agreement.  The Board may, at any time, without further action by the stockholders and without consent of or receiving further consideration from the affected Participants, amend outstanding Awards and Agreements in response to, or to comply with changes in, Applicable Law.  To the extent not inconsistent with the terms of the Plan, the Board may, at any time, amend an outstanding Agreement in a manner that is not unfavorable to the Participant without the consent of such Participant.  The Board may amend Awards and Agreements otherwise with the written consent of the Participant.

 

11.3        Termination of Plan.  No Awards shall be granted under the Plan later than ten (10) years after the Effective Date; provided, however, that the Plan and all Awards made under the Plan prior to such date shall remain in effect until such Awards have been satisfied or terminated in accordance with the Plan and the terms of such Awards.

 

11.4        Adjustments Upon Change in Control and Other Events.  Subject to compliance with the applicable requirements of paragraphs (2), (3) and (4) of Section 409A(a) of the Code in the case of any Award that constitutes compensation deferred under the Plan within the meaning of Section 409A(a)(1) of the Code, the Board may provide in the Agreement for any Award for automatic accelerated vesting, lapse of any restrictions and any other rights upon the occurrence of a Change in Control of the Company or upon the occurrence of other events as specified in the Agreement, which rights may or may not be conditioned on a successor corporation’s failure to assume the Award or issue an equivalent award.

 

SECTION 12

MISCELLANEOUS PROVISIONS

 

12.1        Restrictions on Shares.  All Shares delivered under the Plan shall be subject to such stop-transfer orders and other restrictions as the Board may deem advisable under Applicable Law, and the Board may cause a legend or legends to be placed on any such Shares to make appropriate reference to such restrictions. In making such determination, the Board may rely upon an opinion of counsel for the Company.

 

12.2        Rights of a Stockholder.  Except as provided otherwise in the Plan or in an Agreement, no Participant awarded a Restricted Stock Unit or Performance Share shall have any right as a stockholder with respect to any Shares covered by such Award prior to the date of issuance to him or her of such Shares.

 

12.3        No Implied Rights.  Nothing in the Plan or any Award granted under the Plan shall confer upon any Participant any right to continue in the service of the Company or interfere in any way with the right of the Company (except as it may otherwise be limited by a written agreement between the Company and the Participant) to terminate the Participant’s employment or other service relationship for any reason at any time. Unless agreed by the Board, no Award granted under the Plan shall be deemed salary or compensation for the purpose of computing benefits under any employee benefit plan, severance program, or other arrangement of the Company for the benefit of its employees. No Participant shall have any claim to an Award until it is actually granted under the Plan. To the extent that any person acquires a right to receive payments from the Company under the Plan, such right shall, except as otherwise provided by the Board, be no greater than the right of an unsecured general creditor of the Company.

 

12.4        Non-Uniform Determinations.  The Board’s determinations under the Plan (including without limitation determinations of the Eligible Participants to receive Awards, the form, amount and timing of such Awards, the terms and provisions of such Awards and the Agreements evidencing Awards) need not be uniform and may be made by it selectively among Participants and Eligible Participants, whether or not such persons are similarly situated.

 

12.5        Compliance with Laws. 

 

	 	
			(a)

				
			The Plan and the grant of Awards shall be subject to all Applicable Law and to such approvals by any United States government or regulatory agency as may be required. Any provision herein relating to compliance with Rule 16b-3 under the Exchange Act shall not be applicable with respect to participation in the Plan by Participants who are not Insiders.

			

 

	 	
			(b)

				
			Notwithstanding any other provision of the Plan, the Company shall have no liability to deliver any Shares under the Plan or make any other distribution of the benefits under the Plan unless such delivery or distribution would comply with all Applicable Laws (including without limitation the requirements of the Securities Act of 1933).

			

 

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			(c)

				
			Each Award under the Plan shall be subject to the requirement that, if at any time the Board shall determine that (i) the listing, registration or qualification of the Shares subject or related thereto upon any securities exchange or under any Applicable Law or (ii) the consent or approval of any government regulatory body or (iii) an agreement by the grantee of an Award with respect to the disposition of Shares, is necessary or desirable as a condition of, or in connection with, the granting of such Award or the issue or purchase of Shares thereunder, such Award may not be consummated in whole or in part unless such listing, registration, qualification, consent, approval or agreement shall have been effected or obtained free of any conditions not acceptable to the Board.

			

 

	 	
			(d)

				
			As a condition to the issuance or transfer of any Shares pursuant to any Award, the Board may require the Participant to represent and warrant at the time of such issuance or transfer that the Shares are being acquired only for investment and without any current intention to sell or distribute such Shares, if, in the opinion of counsel for the Company, such a representation is advisable.

			

 

12.6        Successors.  The terms of the Plan shall be binding upon the Company, and its successors and assigns.

 

12.7        Tax Elections.  Each Participant agrees to give the Board prompt written notice of any election made by such Participant under Code Section 83(b) or any similar provision thereof.

 

12.8        Legal Construction. 

 

	 	
			(a)

				
			Severability. If any provision of this Plan or an Agreement is or becomes or is deemed invalid, illegal or unenforceable in any jurisdiction, or would disqualify the Plan or any Agreement under any law with respect to which the Plan is intended to qualify, such provision shall be construed or deemed amended to conform to Applicable Law or, if it cannot be construed or deemed amended without, in the determination of the Board, materially altering the intent of the Plan or the Agreement, it shall be stricken and the remainder of the Plan or the Agreement shall remain in full force and effect.

			

 

	 	
			(b)

				
			Compliance with Section 409A of the Code. All Awards granted under the Plan are intended to be either exempt from the requirements of Section 409A of the Code or, if not exempt, to satisfy the requirements of Section 409A (including the Treasury Department guidance and regulations issued thereunder), and the Plan shall be administered, construed and interpreted in accordance with such intent. If the Board determines that an Award, Agreement, payment, transaction or any other action or arrangement contemplated by the provision of this Plan would, if undertaken, cause a Participant to become subject to any additional taxes or other penalties under Section 409A, then unless the Board specifically provides otherwise, such Award, Agreement, payment, transaction or other action or arrangement shall not be given effect to the extent that it causes such result and the related provision of the Plan or Agreement will be deemed modified or, if necessary, suspended in order to comply with the requirements of Section 409A of the Code to the extent determined appropriate by the Board, in each case without the consent of or notice to the Participant. In any case, a Participant will be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on a Participant in connection with Awards (including any taxes and penalties under Section 409A) and the Company will have no obligation to indemnify or otherwise hold a Participant harmless from any or all of such taxes or penalties.

			
	 	 	 
	 	 	In addition, notwithstanding any other provision of the Plan or an Agreement to the contrary, the Company will not pay or accelerate the payment of any amount that constitutes “deferred compensation” within the meaning of Section 409A in violation of Section 409A. To the extent any amount of “deferred compensation” would otherwise vest and become payable upon a Change in Control or upon a Disability, as set forth herein or in an Agreement, any such Award may vest but payment shall not be accelerated unless the Change in Control also satisfies the definition of “change in the ownership” “change in the effective control” and/or “change in the ownership of a substantial portion of the assets” of the Company as those terms are defined in Treasury Regulations Section 1.409A-3(i)(5) (or such other regulation or guidance issued under Section 409A) or the Disability also satisfies the definition of “disability” as that term is defined in Treasury Regulations Section 1.409A-3(i)(4) (or such other regulation or guidance issued under Section 409A).

 

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	 	 	Any amount that constitutes “deferred compensation” within the meaning of Section 409A and is payable under the Plan or an Agreement solely by reason of a Participant’s termination of employment shall be payable only if the Participant has experienced a “separation from service” within the meaning of Section 409A (or the regulations or guidance issued under Section 409A), provided that if the Participant is a “specified employee” within the meaning of Section 409A at the time of such separation from service, as determined by the Board in accordance with Section 409A, no payments shall be made before the six (6) month anniversary of the Participant’s separation from service, at which time all payments that would otherwise have been made during such six (6) month period shall be paid to the Participant in a lump sum.
	 	 	 
	 	
			(c)

				
			Gender and Number. Where the context admits, words in any gender shall include the other gender, words in the singular shall include the plural and words in the plural shall include the singular.

			

 

	 	
			(d)

				
			Governing Law. To the extent not preempted by federal law, the Plan and all Agreements hereunder shall be construed in accordance with and governed by the laws of the State of Louisiana.

			

 

12.9        Plan Year.  The Plan Year shall be a calendar year.

 

IN WITNESS WHEREOF, this Plan is executed as of this the [___] day of [__________], 2021.

 

	
			 

				
			CKX LANDS, INC.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			 

				
			 

			
	
			 

				
			Name:

				
			 

				
			 

			
	
			 

				
			Title:

				
			 

				
			 

			

                                                        

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