Document:

Exhibit 10.19
REGISTRATION RIGHTS AGREEMENT
THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of August 5, 2022, is by and between Nomura Securities International, Inc., a New York corporation (the “Investor”), and Vertical Aerospace Ltd., a Cayman Islands exempted company with limited liability (the “Company”).
RECITALS
The Company and the Investor have entered into that certain Share Purchase Agreement, dated as of the date hereof (the “Purchase Agreement”), pursuant to which the Company may issue, from time to time, to the Investor up to $100,000,000 in aggregate gross purchase price of newly issued ordinary shares in the capital of the Company, par value $0.0001 per share (the “Ordinary Shares”).
Pursuant to the terms of, and in consideration for the Investor entering into, the Purchase Agreement, and to induce the Investor to execute and deliver the Purchase Agreement, the Company has agreed to provide the Investor with certain registration rights with respect to the Registrable Securities (as defined herein) as set forth herein.
AGREEMENT
NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements contained herein and in the Purchase Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, intending to be legally bound hereby, the Company and the Investor hereby agree as follows:
ARTICLE I
DEFINITIONS
1. Definitions. Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:
“Business Day” means any day other than Saturday, Sunday or any other day on which commercial banks in New York, New York are authorized or required by law to remain closed.
“Closing Date” shall mean the date of this Agreement.
“Commission” means the U.S. Securities and Exchange Commission or any successor entity.
“Effective Date” means the date that the applicable Registration Statement has been declared effective by the Commission.
“Effectiveness Deadline” means (i) with respect to the Initial Registration Statement required to be filed to pursuant to Section 2(a), the earlier of (A) the 90th calendar day after the Filing Deadline, if such Registration Statement is subject to review by the Commission, and (B) the 60th calendar day after the Filing Deadline, if the Company is notified (orally or in writing, whichever is earlier) by the Commission that such Registration Statement will not be reviewed and (ii) with respect to any New Registration Statements that may be required to be filed by the Company pursuant to this Agreement, the earlier of (A) the 90th calendar day following the date on which the Company was required to file such additional Registration Statement, if such Registration Statement is subject to review by the Commission, and (B) the 45th calendar day following the date on which the Company was required to file such New Registration Statement, if the Company is notified (orally or in writing, whichever is earlier) by the Commission that such Registration Statement will not be reviewed.
“Eligible Market” means The New York Stock Exchange, Inc., NYSE AMEX Equities, the NASDAQ Global Select Market, The NASDAQ Global Market or the NASDAQ Capital Market.
“Filing Deadline” means (i) with respect to the Initial Registration Statement required to be filed to pursuant to Section 2(a), the 30th Business Day after the due date in accordance with the Exchange Act (without reference to any extensions pursuant to Rule 12b-25) of the Company’s Annual Report on Form 20-F with respect to the year ended December 31, 2022 (or if such day is not a Business Day, the next following Business Day), and (ii) with respect to any New Registration Statements that may be required to be filed by the Company pursuant to this Agreement, the 30th Business Day following the sale of substantially all of the Registrable Securities included in the Initial Registration Statement or the most recent prior New Registration Statement, as applicable, or such other date as permitted by the Commission.

“Person” means any person or entity, whether a natural person, trustee, corporation, partnership, limited partnership, limited liability company, trust, unincorporated organization, business association, firm, joint venture, governmental agency or authority.
“Prospectus” means the prospectus in the form included in the Registration Statement at the applicable Effective Date of the Registration Statement, as supplemented from time to time by any Prospectus Supplement, including the documents incorporated by reference therein.
“Prospectus Supplement” means any prospectus supplement to the Prospectus filed with the Commission from time to time pursuant to Rule 424(b) under the Securities Act, including the documents incorporated by reference therein.
“register,” “registered,” and “registration” refer to a registration effected by preparing and filing one or more Registration Statements in compliance with the Securities Act and pursuant to Rule 415 and the declaration of effectiveness of such Registration Statement(s) by the Commission.
“Registrable Securities” means all of (i) the Shares and (ii) any share capital of the Company issued or issuable with respect to such Shares, including, without limitation, (1) as a result of any share subdivisions, share capitalizations, reorganizations, recapitalizations, exchange or similar event or otherwise and (2) share capital of the Company into which the Ordinary Shares are converted or exchanged and share capital of a successor entity into which the Ordinary Shares are converted or exchanged, in each case until such time as such securities cease to be Registrable Securities pursuant to Section 2(f).
“Registration Statement” means a registration statement or registration statements of the Company filed under the Securities Act covering the resale by the Investor of Registrable Securities, as such registration statement or registration statements may be amended and supplemented from time to time, including all documents filed as part thereof or incorporated by reference therein.
“Rule 144” means Rule 144 promulgated by the Commission under the Securities Act, as such rule may be amended from time to time, or any other similar or successor rule or regulation of the Commission that may at any time permit the Investor to sell securities of the Company to the public without registration.
“Rule 415” means Rule 415 promulgated by the Commission under the Securities Act, as such rule may be amended from time to time, or any other similar or successor rule or regulation of the Commission providing for offering securities on a delayed or continuous basis.
“Shares” shall mean the Ordinary Shares that may be purchased by the Investor under this Agreement pursuant to one or more VWAP Purchase Notices.
“Trading Day” shall mean any day on which the Trading Market or, if the Ordinary Shares are then listed on an Eligible Market, such Eligible Market is open for trading (regular way), including any day on which the Trading Market (or such Eligible Market, as applicable) is open for trading (regular way) for a period of time less than the customary time.
“Trading Market” means The New York Stock Exchange, Inc.
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ARTICLE II
REGISTRATIONS
2. Registration.
(a) Mandatory Registration. The Company shall prepare and, as soon as practicable, but in no event later than the Filing Deadline, file with the Commission an initial registration statement on Form F-1 (or any successor form) covering the resale by the Investor of the maximum number of Registrable Securities as shall be permitted to be included thereon in accordance with applicable Commission rules, regulations and interpretations so as to permit the resale of such Registrable Securities by the Investor under Rule 415 under the Securities Act at then prevailing market prices (and not fixed prices) (the “Initial Registration Statement”). The Initial Registration Statement shall contain the “Selling Securityholder” and “Plan of Distribution (Conflict of Interest)” sections in substantially the form attached hereto as Exhibit A. The Company shall use its commercially reasonable efforts to have the Initial Registration Statement declared effective by the Commission as soon as reasonably practicable following the filing thereof with the Commission.
(b) Legal Counsel. Subject to Section 5 hereof, the Investor shall have the right to select one legal counsel to review and oversee, solely on its behalf, each Registration Statement pursuant to this Section 2 (“Legal Counsel”), which shall be Winston & Strawn LLP, or such other counsel as thereafter designated by the Investor. Except as provided under Section 10.1(i) of the Purchase Agreement, the Company shall have no obligation to reimburse the Investor for any and all legal fees and expenses of the Legal Counsel incurred in connection with the transactions contemplated hereby.
(c) Sufficient Number of Shares Registered. If at any time all Registrable Securities are not covered by the Initial Registration Statement filed pursuant to Section 2(a) as a result of Section 2(e) or otherwise, the Company shall use its commercially reasonable efforts to file with the Commission one or more additional Registration Statements so as to cover all of the Registrable Securities not covered by such Initial Registration Statement, in each case, as soon as practicable (taking into account any position of the staff of the Commission (“Staff”) with respect to the date on which the Staff will permit such additional Registration Statement(s) to be filed with the Commission and the rules and regulations of the Commission) (each such additional Registration Statement, a “New Registration Statement”) but in no event later than the applicable Filing Deadline for such New Registration Statement. The Company shall use its commercially reasonable efforts to cause each such New Registration Statement to become effective as soon as reasonably practicable following the filing thereof with the Commission.
(d) No Inclusion of Other Securities. In no event shall the Company include any securities other than Registrable Securities on any Registration Statement pursuant to Section 2(a) or Section 2(c) without consulting the Investor and Legal Counsel prior to filing such Registration Statement with the Commission.
(e) Statutory Underwriter Status. The Investor acknowledges that it will be identified as an “underwriter” and a “selling securityholder” in each Registration Statement and in any Prospectus contained therein to the extent required by applicable law and to the extent the Prospectus is related to the resale of Registrable Securities.
(f) Offering. If the Staff or the Commission seeks to characterize any offering pursuant to a Registration Statement filed pursuant to this Agreement as constituting an offering of securities that does not permit such Registration Statement to become effective and be used for resales by the Investor on a delayed or continuous basis under Rule 415 at then-prevailing market prices (and not fixed prices), or if after the filing of any Registration Statement pursuant to Section 2(a) or Section 2(c), the Company is otherwise required by the Staff or the Commission to reduce the number of Registrable Securities included in such Registration Statement, then the Company shall reduce the number of Registrable Securities to be included in such Registration Statement (after consultation with the Investor and Legal Counsel as to the specific Registrable Securities to be removed therefrom) until such time as the Staff and the Commission shall so permit such Registration Statement to become effective and be used as aforesaid. Notwithstanding anything in this Agreement to the contrary, if after giving effect to the actions referred to in the immediately preceding sentence, the Staff or the Commission does not permit such Registration Statement to become effective and be used for resales by the Investor on a delayed or continuous basis under Rule 415 at then-prevailing market prices (and not fixed prices), the Company shall not request acceleration of the Effective Date of such Registration Statement, the Company shall promptly (but in no event later than 48 hours) request the withdrawal of such Registration Statement pursuant to Rule 477 under the Securities Act, and the Effectiveness Deadline shall automatically be deemed to have elapsed with respect to such Registration Statement at such time as the Staff or the Commission has made a final and non-appealable determination that the Commission will not permit such Registration Statement to be so utilized (unless prior to such time the Company has received assurances from the Staff or the Commission that a New Registration Statement filed by the Company with the Commission promptly thereafter may be so utilized). In the event of any reduction in Registrable Securities pursuant to this paragraph, the Company shall use its commercially reasonable efforts to file one or more New Registration Statements with the Commission in accordance with Section 2(c) until such time as all Registrable Securities have been included in Registration Statements that have been declared effective and the Prospectuses contained therein are available for use by the Investor. Notwithstanding any provision herein or in the Purchase Agreement to the contrary, the Company’s obligations to register Registrable Securities (and any related conditions to the Investor’s obligations) shall be qualified to the extent necessary to comport with any requirement of the Staff or the Commission.

(g) Any Registrable Security shall cease to be a “Registrable Security” at the earliest of the following: (i) when a Registration Statement covering such Registrable Security becomes or has been declared effective by the Commission and such Registrable Security has been sold or disposed of pursuant to such effective Registration Statement; (ii) when such Registrable Security is held by the Company or one of its Subsidiaries; and (iii) the date that is the first (1st) anniversary of the date of termination of the Purchase Agreement in accordance with Article VIII of the Purchase Agreement.
ARTICLE III
RELATED OBLIGATIONS
3. Related Obligations. The Company shall use its commercially reasonable efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition thereof, and, pursuant thereto, during the term of this Agreement, the Company shall have the following obligations:
(a) The Company shall promptly prepare and file with the Commission the Initial Registration Statement pursuant to Section 2(a) hereof and one or more New Registration Statements pursuant to Section 2(c) hereof with respect to the Registrable Securities, but in no event later than the applicable Filing Deadline therefor, and the Company shall use its commercially reasonable best efforts to cause each such Registration Statement to become effective as soon as practicable after such filing, but in no event later than the applicable Effectiveness Deadline therefor. Subject to Allowable Grace Periods, the Company shall use its reasonable best efforts keep each Registration Statement effective (and the Prospectus contained therein available for use) pursuant to Rule 415 for resales by the Investor on a continuous basis at then-prevailing market prices (and not fixed prices) at all times until the earlier of (i) the date on which the Investor shall have sold all of the Registrable Securities covered by such Registration Statement and (ii) the date of termination of the Purchase Agreement if as of such termination date the Investor holds no Registrable Securities (or, if applicable, the date on which such securities cease to be Registrable Securities after the date of termination of the Purchase Agreement) (the “Registration Period”). Notwithstanding anything to the contrary contained in this Agreement (but subject to the provisions of Section 3(p) hereof), the Company shall ensure that, when filed and at all times while effective, each Registration Statement (including, without limitation, all amendments and supplements thereto) and the Prospectus (including, without limitation, all amendments and supplements thereto) used in connection with such Registration Statement shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein (in the case of Prospectuses, in the light of the circumstances in which they were made) not misleading. The Company shall submit to the Commission, as soon as reasonably practicable after the date that the Company learns that no review of a particular Registration Statement will be made by the Staff or that the Staff has no further comments on a particular Registration Statement (as the case may be), a request for acceleration of effectiveness of such Registration Statement to a time and date as soon as reasonably practicable in accordance with Rule 461 under the Securities Act.
(b) Subject to Section 3(p) of this Agreement, the Company shall use its commercially reasonable efforts to prepare and file with the Commission such amendments (including, without limitation, post-effective amendments) and supplements to each Registration Statement and the Prospectus used in connection with each such Registration Statement, which Prospectus is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep each such Registration Statement effective (and the Prospectus contained therein current and available for use) at all times during the Registration Period for such Registration Statement, and, during such period, comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities of the Company required to be covered by such Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the Investor. Without limiting the generality of the foregoing, the Company covenants and agrees that (i) at or before 8:30 a.m. (New York City time) on the second (2nd) Trading Day immediately following the Effective Date of the Initial Registration Statement and any New Registration Statement (or any post-effective amendment thereto), the Company shall file with the Commission in accordance with Rule 424(b) under the Securities Act the final Prospectus to be used in connection with sales pursuant to such Registration Statement (or post-effective amendment thereto), and (ii) if the transactions contemplated by any VWAP Purchase are material to the Company (individually or collectively with all other prior VWAP Purchases, the consummation of which have not previously been reported in any Prospectus Supplement filed with the Commission under Rule 424(b) under the Securities Act or in any report, statement or other document filed by the Company with the Commission under the Exchange Act), or if otherwise required under the Securities Act (or the interpretations of the Commission thereof), in each case as reasonably determined by the Company and the Investor, then, at or before 8:30 a.m., New York City time, on the first (1st) Trading Day immediately following the VWAP Purchase Date, if a VWAP Purchase Notice was properly delivered to the Investor hereunder in connection with such VWAP Purchase, the Company shall file with the Commission a Prospectus Supplement pursuant to Rule 424(b) under the Securities Act with respect to the VWAP Purchase(s), the total VWAP Purchase Price for the Shares subject to such VWAP Purchase(s) (as applicable), the applicable VWAP Purchase Price(s) for such Shares and the net proceeds that are to be (and, if applicable, have been) received by the Company from the sale of such Shares. To the extent not previously disclosed in the Prospectus or a Prospectus Supplement, the Company shall disclose in its Reports on Form 6-K containing interim financial information of the Company and in its Annual Reports on Form 20-F the information described in the immediately preceding sentence relating to all VWAP Purchase(s) consummated during the relevant fiscal quarter and shall file such Reports on Form 6-K and Annual Reports on Form 20-F with the Commission within the applicable time period prescribed for such report under the Exchange Act. In the case of amendments and supplements to any Registration Statement on Form F-1 or Prospectus related thereto which are required to be filed pursuant to this Agreement (including, without limitation, pursuant to this Section 3(b)) by reason of the Company filing a report on Form 6-K or Form 20-F or any analogous report under the Exchange Act, the Company shall have incorporated such report by reference into such Registration Statement and Prospectus, if applicable, or shall file such amendments or supplements to the Registration Statement or Prospectus with the Commission on the same day on which the Exchange Act report is filed which created the requirement for the Company to amend or supplement such Registration Statement or Prospectus, for the purpose of including or incorporating such report into such Registration Statement and Prospectus. The Company consents to the use of the Prospectus (including, without limitation, any supplement thereto) included in each Registration Statement in accordance with the provisions of the Securities Act and with the securities or “Blue Sky” laws of the jurisdictions in which the Registrable Securities may be sold by the Investor, in connection with the resale of the Registrable Securities and for such period of time thereafter as such Prospectus (including, without limitation, any supplement thereto) (or in lieu thereof, the notice referred to in Rule 173(a) under the Securities Act) is required by the Securities Act to be delivered in connection with resales of Registrable Securities.

(c) The Company shall (A) permit Legal Counsel an opportunity to review and comment upon (i) each Registration Statement at least five (5) Business Days prior to its filing with the Commission and (ii) all amendments and supplements to each Registration Statement (including, without limitation, the Prospectus contained therein) (except for Annual Reports on Form 20-F, Reports on Form 6-K specifically relating to the Company’s interim financial results, and any similar or successor reports or Prospectus Supplements the contents of which is limited to that set forth in such reports) within a reasonable number of days prior to their filing with the Commission, and (B) shall reasonably consider any comments of the Investor and Legal Counsel on any such Registration Statement or amendment or supplement thereto or to any Prospectus contained therein. The Company shall promptly furnish to Legal Counsel, without charge, (i) electronic copies of any correspondence from the Commission or the Staff to the Company or its representatives relating to each Registration Statement (which correspondence shall be redacted to exclude any material, non-public information regarding the Company or any of its Subsidiaries), (ii) after the same is prepared and filed with the Commission, one (1) electronic copy of each Registration Statement and any amendment(s) and supplement(s) thereto, including, without limitation, financial statements and schedules, all documents incorporated therein by reference, if requested by the Investor, and all exhibits and (iii) upon the effectiveness of each Registration Statement, one (1) electronic copy of the Prospectus included in such Registration Statement and all amendments and supplements thereto; provided, however, the Company shall not be required to furnish any document (other than the Prospectus, which may be provided in .PDF format) to Legal Counsel to the extent such document is available on EDGAR at the time of Legal Counsel’s request.
(d) Without limiting any obligation of the Company under the Purchase Agreement, the Company shall promptly furnish to the Investor, without charge, (i) after the same is prepared and filed with the Commission, at least one (1) electronic copy of each Registration Statement and any amendment(s) and supplement(s) thereto, including, without limitation, financial statements and schedules, all documents incorporated therein by reference, if requested by the Investor, all exhibits thereto, (ii) upon the effectiveness of each Registration Statement, one (1) electronic copy of the Prospectus included in such Registration Statement and all amendments and supplements thereto and (iii) such other documents, including, without limitation, copies of any final Prospectus and any Prospectus Supplement thereto, as the Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by the Investor; provided, however, the Company shall not be required to furnish any document (other than the Prospectus, which may be provided in .PDF format) to the Investor to the extent such document is available on EDGAR.
(e) The Company shall take such action as is reasonably necessary to (i) register and qualify, unless an exemption from registration and qualification applies, the resale by the Investor of the Registrable Securities covered by a Registration Statement under such other securities or “Blue Sky” laws of all applicable jurisdictions in the United States, (ii) prepare and file in those jurisdictions, such amendments (including, without limitation, post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be reasonably necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(e), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify Legal Counsel and the Investor of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or “Blue Sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose.
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(f) The Company shall notify Legal Counsel and the Investor in writing of the happening of any event, as promptly as reasonably practicable after becoming aware of such event, as a result of which the Prospectus included in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided that in no event shall such notice contain any material, non-public information regarding the Company or any of its Subsidiaries), and, subject to Section 3(p), promptly prepare a supplement or amendment to such Registration Statement and such Prospectus contained therein to correct such untrue statement or omission and deliver one (1) electronic copy of such supplement or amendment to Legal Counsel and the Investor. The Company shall also promptly notify Legal Counsel and the Investor in writing (i) when a Prospectus or any Prospectus Supplement or post-effective amendment has been filed, when a Registration Statement or any post-effective amendment has become effective, and when the Company receives written notice from the Commission that a Registration Statement or any post-effective amendment will be reviewed by the Commission, (ii) of any request by the Commission for amendments or supplements to a Registration Statement or related Prospectus or related information, (iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be appropriate and (iv) of the receipt of any request by the Commission or any other federal or state governmental authority for any additional information relating to the Registration Statement or any amendment or supplement thereto or any related Prospectus. The Company shall respond as promptly as reasonably practicable to any comments received from the Commission with respect to a Registration Statement or any amendment thereto. Nothing in this Section 3(f) shall limit any obligation of the Company under the Purchase Agreement.
(g) The Company shall (i) use its commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration Statement or the use of any Prospectus contained therein, or the suspension of the qualification, or the loss of an exemption from qualification, of any of the Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible time and (ii) notify Legal Counsel and the Investor of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding.
(h) The Company shall hold in confidence and not make any disclosure of information concerning the Investor provided to the Company unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required to be disclosed in such Registration Statement pursuant to the Securities Act, (iii) the release of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction, or (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement or any other Transaction Document. The Company agrees that it shall, upon learning that disclosure of such information concerning the Investor is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to the Investor and allow the Investor, at the Investor’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information.
(i) Without limiting any obligation of the Company under the Purchase Agreement, the Company shall use its commercially reasonable efforts either to (1) cause all of the Registrable Securities covered by each Registration Statement to be listed on the Trading Market, or (2) secure designation and quotation of all of the Registrable Securities covered by each Registration Statement on another Eligible Market. The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section 3(i).
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(j) The Company shall cooperate with the Investor and, to the extent applicable, facilitate the timely preparation and issuance of Registrable Securities, as DWAC Shares, to be offered pursuant to a Registration Statement and enable such DWAC Shares to be in such denominations or amounts (as the case may be) as the Investor may reasonably request from time to time. Investor hereby agrees that it shall cooperate with the Company, its counsel and its transfer agent in connection with any issuances of DWAC Shares, and hereby represents, warrants and covenants to the Company that that it will resell such DWAC Shares only pursuant to the Registration Statement in which such DWAC Shares are included, in a manner described under the caption “Plan of Distribution (Conflict of Interest)” in such Registration Statement, and in a manner in compliance with all applicable U.S. federal and state securities laws, rules and regulations, including, without limitation, any applicable prospectus delivery requirements of the Securities Act. At the time such DWAC Shares are offered and sold pursuant to the Registration Statement, such DWAC Shares shall be free from all restrictive legends (except as otherwise required by this Agreement, the Purchase Agreement or applicable federal or state securities laws) and may be transmitted by the Company’s transfer agent to the Investor by crediting an account at DTC as directed in writing by the Investor.
(k) Upon the written request of the Investor, the Company shall, as soon as reasonably practicable after receipt of notice from the Investor and subject to Section 3(p) hereof, (i) incorporate in a Prospectus Supplement or post-effective amendment such information as the Investor reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii) make all required filings of such Prospectus Supplement or post-effective amendment after being notified of the matters to be incorporated in such Prospectus Supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement or Prospectus contained therein if reasonably requested by the Investor.
(l) The Company shall use its commercially reasonable efforts to cause the Registrable Securities covered by a Registration Statement to be registered with or approved by such other governmental agencies or authorities in the United States as may be necessary to consummate the disposition of such Registrable Securities.
(m) The Company shall make generally available to its securityholders (which may be satisfied by making such information available on EDGAR) as soon as practical, but not later than ninety (90) days after the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions of Rule 158 under the Securities Act) covering a twelve-month period beginning not later than the first day of the Company’s fiscal quarter next following the applicable Effective Date of each Registration Statement.
(n) The Company shall otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission in connection with any registration hereunder.
(o) Within one (1) Business Day after each Registration Statement which covers Registrable Securities is declared effective by the Commission, the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities (with copies to the Investor) confirmation that such Registration Statement has been declared effective by the Commission.
(p) Notwithstanding anything to the contrary contained herein (but subject to the last sentence of this Section 3(p)), at any time after the Effective Date of a particular Registration Statement, the Company may, upon written notice to Investor, suspend Investor’s use of any prospectus that is a part of any Registration Statement (in which event the Investor shall discontinue sales of the Registrable Securities pursuant to such Registration Statement contemplated by this Agreement, but shall settle any previously made sales of Registrable Securities) if the Company (x) is pursuing an acquisition, merger, tender offer, reorganization, disposition or other similar transaction and the Company determines in good faith that (A) the Company’s ability to pursue or consummate such a transaction would be materially adversely affected by any required disclosure of such transaction in such Registration Statement or other registration statement or (B) such transaction renders the Company unable to comply with Commission requirements, in each case under circumstances that would make it impractical or inadvisable to cause any Registration Statement (or such filings) to be used by Investor or to promptly amend or supplement any Registration Statement contemplated by this Agreement on a post effective basis, as applicable, or (y) has experienced some other material non-public event the disclosure of which at such time, in the good faith judgment of the Company, would materially adversely affect the Company (each, an “Allowable Grace Period”); provided, however, that in no event shall the Investor be suspended from selling Registrable Securities pursuant to any Registration Statement for a period that exceeds twenty (20) consecutive Trading Days or an aggregate of sixty (60) days in any three hundred and sixty-five (365)-day period; and provided, further, the Company shall not effect any such suspension during the three-Trading Day period following the VWAP Purchase Share Delivery Date for each VWAP Purchase. Upon disclosure of such information or the termination of the condition described above, the Company shall provide prompt notice, but in any event within one (1) Business Day of such disclosure or termination, to the Investor and shall promptly terminate any suspension of sales it has put into effect and shall take such other reasonable actions to permit registered sales of Registrable Securities as contemplated in this Agreement (including as set forth in the first sentence of Section 3(f) with respect to the information giving rise thereto unless such material, non-public information is no longer applicable). Notwithstanding anything to the contrary contained in this Section 3(p), the Company shall cause its transfer agent, following the register of members of the Company being updated to reflect the same, to deliver DWAC Shares to a transferee of the Investor in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which (i) the Company has made a sale to Investor and (ii) the Investor has entered into a contract for sale, and delivered a copy of the Prospectus included as part of the particular Registration Statement to the extent applicable, in each case prior to the Investor’s receipt of the notice of an Allowable Grace Period and for which the Investor has not yet settled.
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ARTICLE IV
OBLIGATIONS OF THE INVESTOR
4. Obligations of the Investor.
(a) At least five (5) Business Days prior to the first anticipated filing date of each Registration Statement (or such shorter period to which the parties agree), the Company shall notify the Investor in writing of the information the Company requires from the Investor with respect to such Registration Statement. It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with respect to the Registrable Securities of the Investor that the Investor shall furnish to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it, as shall be reasonably required to effect and maintain the effectiveness of the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request.
(b) The Investor, by its acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of each Registration Statement hereunder, unless the Investor has notified the Company in writing of the Investor’s election to exclude all of the Investor’s Registrable Securities from such Registration Statement.
(c) The Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3(p) or the first sentence of 3(f), the Investor shall as soon as is reasonably practicable (i) discontinue disposition of Registrable Securities pursuant to any Registration Statement(s) covering such Registrable Securities until the Investor’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section 3(p) or the first sentence of Section 3(f) or receipt of notice that no supplement or amendment is required and (ii) maintain the confidentiality of any information included in such notice delivered by the Company unless otherwise required by law or subpoena. Notwithstanding anything to the contrary in this Section 4(c), the Company shall cause its transfer agent to deliver DWAC Shares to a transferee of the Investor (and update the register of members of the Company to reflect the same) in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which the Investor has entered into a contract for sale prior to the Investor’s receipt of a notice from the Company of the happening of any event of the kind described in Section 3(p) or the first sentence of Section 3(f) and for which the Investor has not yet settled.
(d) The Investor covenants and agrees that it shall comply with the prospectus delivery and other requirements of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to a Registration Statement.
ARTICLE V
EXPENSES OF REGISTRATION
5. Expenses of Registration.
Except as provided in Section 10.1 of the Purchase Agreement, the Company shall have no obligation to reimburse the Investor for any expenses of the Investor incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3 hereof. All registration, listing and qualifications fees, printers and accounting fees, and fees and disbursements of counsel for the Company, shall be paid by the Company.
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​

ARTICLE VI
INDEMNIFICATION
6. Indemnification.
(a) In the event any Registrable Securities are included in any Registration Statement under this Agreement, to the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, each of its directors, officers, shareholders, members, partners, employees, agents, representatives (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding the lack of such title or any other title) and each Person, if any, who controls the Investor within the meaning of the Securities Act or the Exchange Act and each of the directors, officers, shareholders, members, partners, employees, agents, representatives (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding the lack of such title or any other title) of such controlling Persons (each, an “Investor Party” and collectively, the “Investor Parties”), against any losses, obligations, claims, damages, liabilities, contingencies, judgments, fines, penalties, charges, costs (including, without limitation, court costs, reasonable attorneys’ fees, costs of defense and investigation), amounts paid in settlement or expenses, joint or several, (collectively, “Claims”) reasonably incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the Commission, whether pending or threatened, whether or not an Investor Party is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities or other “Blue Sky” laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading or (ii) any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (as amended or supplemented) or in any Prospectus Supplement or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not misleading (the matters in the foregoing clauses (i) and (ii) being, collectively, “Violations”). Subject to Section 6(e), the Company shall reimburse the Investor Parties, promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim by an Investor Party arising out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company by such Investor Party for such Investor Party expressly for use in connection with the preparation of such Registration Statement, Prospectus or Prospectus Supplement or any such amendment thereof or supplement thereto (it being hereby acknowledged and agreed that the written information set forth on Exhibit A attached hereto is the only written information furnished to the Company by or on behalf of the Investor expressly for use in any Registration Statement, Prospectus or Prospectus Supplement); (ii) shall not be available to the Investor to the extent such Claim is based on a failure of the Investor to deliver or to cause to be delivered the Prospectus (as amended or supplemented) made available by the Company (to the extent applicable), including, without limitation, a corrected Prospectus, if such Prospectus (as amended or supplemented) or corrected Prospectus was timely made available by the Company pursuant to Section 3(d) and then only if, and to the extent that, following the receipt of the corrected Prospectus no grounds for such Claim would have existed; and (iii) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld or delayed. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Investor Party.
(b) In connection with any Registration Statement in which the Investor is participating, the Investor agrees to severally and not jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of its officers who signs the Registration Statement and each Person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act (each, a “Company Party”), against any Claim or Indemnified Damages to which any of them may become subject, under the Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case, to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information relating to the Investor furnished to the Company by the Investor expressly for use in connection with such Registration Statement, the Prospectus included therein or any Prospectus Supplement thereto (it being hereby acknowledged and agreed that the written information set forth on Exhibit B attached hereto is the only written information furnished to the Company by or on behalf of the Investor expressly for use in any Registration Statement, Prospectus or Prospectus Supplement); and, subject to Section 6(c) and the below provisos in this Section 6(b), the Investor shall reimburse a Company Party any legal or other expenses reasonably incurred by such Company Party in connection with investigating or defending any such Claim; provided, however, the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Investor, which consent shall not be unreasonably withheld or delayed; and provided, further that the Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the aggregate discount to the VWAP Purchase Price. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Company Party and shall survive the transfer of any of the Registrable Securities by the Investor pursuant to Section 9.
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(c) Promptly after receipt by an Investor Party or Company Party (as the case may be) under this Section 6 of notice of the commencement of any action or proceeding (including, without limitation, any governmental action or proceeding) involving a Claim, such Investor Party or Company Party (as the case may be) shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Investor Party or Company Party (as the case may be); provided, however, an Investor Party or Company Party (as the case may be) shall have the right to retain its own counsel with the fees and expenses of such counsel to be paid by the indemnifying party if: (i) the indemnifying party has agreed in writing to pay such fees and expenses; (ii) the indemnifying party shall have failed to promptly assume the defense of such Claim and to employ counsel reasonably satisfactory to such Investor Party or Company Party (as the case may be) in any such Claim; or (iii) the named parties to any such Claim (including, without limitation, any impleaded parties) include the Investor Party or Company Party (as the case may be) and the indemnifying party, and such Investor Party or Company Party (as the case may be) shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Investor Party or such Company Party and the indemnifying party, in which case, if such Investor Party or Company Party (as the case may be) notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying party, then the indemnifying party shall not have the right to assume the defense thereof on behalf of the indemnified party and such counsel shall be at the expense of the indemnifying party, provided further that in the case of clause (iii) above the indemnifying party shall not be responsible for the reasonable fees and expenses of more than one (1) separate legal counsel for all Investor Parties or Company Parties (as the case may be). The Investor Party or Company Party (as the case may be) shall reasonably cooperate with the indemnifying party in connection with any negotiation or defense of any such action or Claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Investor Party or Company Party (as the case may be) which relates to such action or Claim. The indemnifying party shall keep the Investor Party or Company Party (as the case may be) reasonably apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its prior written consent; provided, however, the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent of the Investor Party or Company Party (as the case may be), consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Investor Party or Company Party (as the case may be) of a release from all liability in respect to such Claim or litigation, and such settlement shall not include any admission as to fault on the part of the Company Party. For the avoidance of doubt, the immediately preceding sentence shall apply to Sections 6(a) and 6(b) hereof. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Investor Party or Company Party (as the case may be) with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Investor Party or Company Party (as the case may be) under this Section 6, except to the extent that the indemnifying party is materially and adversely prejudiced in its ability to defend such action.
(d) The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or Indemnified Damages are incurred; provided that any Person receiving any payment pursuant to this Section 6 shall promptly reimburse the Person making such payment for the amount of such payment to the extent a court of competent jurisdiction determines that such Person receiving such payment was not entitled to such payment.
(e) No Person involved in the sale of Registrable Securities who is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such sale shall be entitled to indemnification from any Person involved in such sale of Registrable Securities who is not guilty of fraudulent misrepresentation.
(f) The indemnity and contribution agreements contained herein shall be in addition to (i) any cause of action or similar right of the Company Party or Investor Party against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.
(g) No person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such sale shall be entitled to indemnification from any Person who was not guilty of such fraudulent misrepresentation.
​

ARTICLE VII
CONTRIBUTIONS
7. Contribution.
To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however: (i) no contribution shall be made under circumstances where the maker would not have been liable for indemnification under the fault standards set forth in Section 6 of this Agreement, (ii) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such sale shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (iii) contribution by any seller of Registrable Securities shall be limited in amount to the amount of net proceeds received by such seller from the applicable sale of such Registrable Securities pursuant to such Registration Statement. Notwithstanding the provisions of this Section 7, the Investor shall not be required to contribute, in the aggregate, any amount in excess of the aggregate discount to the VWAP Purchase Price subject to the Claim exceeds the amount of any damages that the Investor has otherwise been required to pay, or would otherwise be required to pay under Section 6(b), by reason of such untrue or alleged untrue statement or omission or alleged omission.
ARTICLE VIII
REPORTS UNDER THE EXCHANGE ACT
8. Reports Under the Exchange Act. With a view to making available to the Investor the benefits of Rule 144, the Company agrees to:
(a) use its commercially reasonable efforts to make and keep public information available, as those terms are understood and defined in Rule 144;
(b) use its commercially reasonable 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 so long as the Company remains subject to such requirements (it being understood that nothing herein shall limit any of the Company’s obligations under the Purchase Agreement) and the filing of such reports and other documents is required for the applicable provisions of Rule 144;
(c) furnish to the Investor, promptly upon request, (i) a written statement by the Company, if true, that it has complied with the reporting, submission and posting requirements of Rule 144 and the Exchange Act, (ii) a copy of the most recent annual report on Form 20-F or report on Form 6-K containing interim financial information of the Company and such other reports and documents so filed by the Company with the Commission if such reports are not publicly available via EDGAR, and (iii) such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule 144 without registration; and
(d) take such additional action as is reasonably requested by the Investor to enable the Investor to sell the Registrable Securities pursuant to Rule 144, including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions to the Company’s transfer agent without unreasonable delay as may be reasonably requested from time to time by the Investor and otherwise fully cooperate with Investor and Investor’s broker in their efforts to effect such sale of securities pursuant to Rule 144.
ARTICLE IX
ASSIGNMENT OF REGISTRATION RIGHTS
9. Assignment of Registration Rights.
Neither the Company nor the Investor shall assign this Agreement or any of their respective rights or obligations hereunder.
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ARTICLE X
AMENDMENT OR WAIVER
10. Amendment or Waiver.
No provision of this Agreement may be amended or waived by the parties from and after the date that is one (1) Trading Day immediately preceding the date of filing of the Initial Registration Statement with the Commission. Subject to the immediately preceding sentence, no provision of this Agreement may be (i) amended other than by a written instrument signed by both parties hereto or (ii) waived other than in a written instrument signed by the party against whom enforcement of such waiver is sought. Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof.
ARTICLE XI
MISCELLANEOUS
11. Miscellaneous.
(a) Solely for purposes of this Agreement, a Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from such record owner of such Registrable Securities.
(b) Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement shall be given in accordance with Section 10.4 of the Purchase Agreement.
(c) Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof. The Company and the Investor acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that either party shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement by the other party and to enforce specifically the terms and provisions hereof (without the necessity of showing economic loss and without any bond or other security being required), this being in addition to any other remedy to which either party may be entitled by law or equity.
(d) All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
(e) The Transaction Documents set forth the entire agreement and understanding of the parties solely with respect to the subject matter thereof and supersedes all prior and contemporaneous agreements, negotiations and understandings between the parties, both oral and written, solely with respect to such matters. There are no promises, undertakings, representations or warranties by either party relative to the subject matter hereof not expressly set forth in the Transaction Documents. Notwithstanding anything in this Agreement to the contrary and without implication that the contrary would otherwise be true, nothing contained in this Agreement shall limit, modify or affect in any manner whatsoever (i) the conditions precedent to a VWAP Purchase contained in Article VII of the Purchase Agreement or (ii) any of the Company’s obligations under the Purchase Agreement.
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(f) This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors. This Agreement is not for the benefit of, nor may any provision hereof be enforced by, any Person, other than the parties hereto, their respective successors and the Persons referred to in Sections 6 and 7 hereof.
(g) The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,” “include” and words of like import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,” “hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision in which they are found.
(h) This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile signature or signature delivered by e-mail in a “.pdf” format data file, including any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com, www.echosign.adobe.com, etc., shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original signature.
(i) Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.
(j) The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules of strict construction will be applied against any party.
ARTICLE XII
TERMINATION
12. Termination.
This Agreement shall terminate in its entirety upon the date on which the Investor shall have sold all the Registrable Securities; provided that the provisions of Sections 4, 6, 7, 9, 10 and 11 shall remain in full force and effect.
[Signature Pages Follow]
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IN WITNESS WHEREOF, Investor and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed as of the date first written above.
	

	

	

		COMPANY:

		VERTICAL AEROSPACE LTD.

		
		By:
	/s/ Vincent Casey

			Name: Vincent Casey

			Title:   Chief Financial Officer

			
		INVESTOR:

		NOMURA SECURITIES INTERNATIONAL, INC.

			
		By:
	/s/ Paul Robinson

			Name: Paul Robinson

			Title:   Managing Director

​
​
​

EXHIBIT A
SELLING SECURITYHOLDER
This prospectus relates to the possible resale from time to time by the Selling Securityholder of any or all of the Ordinary Shares that may be issued by us to the Selling Securityholder under the Purchase Agreement. For additional information regarding the issuance of Ordinary Shares covered by this prospectus, see the section titled “Committed Equity Financing” above. We are registering the Ordinary Shares pursuant to the provisions of the Registration Rights Agreement we entered into with the Selling Securityholder on August 5, 2022 in order to permit the Selling Securityholder to offer the shares for resale from time to time. Except for the transactions contemplated by the Purchase Agreement and the Registration Rights Agreement or as otherwise disclosed in this prospectus, Selling Securityholder has not had any material relationship with us within the past three years.
The table below presents information regarding the Selling Securityholder and the Ordinary Shares that it may offer from time to time under this prospectus. This table is prepared based on information supplied to us by the Selling Securityholder, and reflects holdings as of July 26, 2022. The number of shares in the column “Maximum Number of Ordinary Shares to be Offered Pursuant to this Prospectus” represents all of the Ordinary Shares that the Selling Securityholder may offer under this prospectus. The Selling Securityholder may sell some, all or none of its shares in this offering. We do not know how long the Selling Securityholder will hold the shares before selling them, and we currently have no agreements, arrangements or understandings with the Selling Securityholder regarding the sale of any of the shares.
Beneficial ownership is determined in accordance with Rule 13d-3(d) promulgated by the SEC under the Exchange Act, and includes Ordinary Shares with respect to which the Selling Securityholder has voting and investment power. The percentage of Ordinary Shares beneficially owned by the Selling Securityholder prior to the offering shown in the table below is based on an aggregate of 209,285,392 Ordinary Shares outstanding on July 26, 2022. Because the purchase price of the Ordinary Shares issuable under the Purchase Agreement is determined on the VWAP Purchase Date with respect to each VWAP Purchase, the number of shares that may actually be sold by the Company under the Purchase Agreement may be fewer than the number of shares being offered by this prospectus. The fourth column assumes the sale of all of the shares offered by the Selling Securityholder pursuant to this prospectus.
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	Number of Ordinary Shares
Owned Prior
to Offering
	​
	Maximum
Number of
Ordinary
Shares
to be
Offered
Pursuant
to
this
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	Number of Ordinary Shares
Owned After
Offering
	 

	Name of Selling Securityholder
	    
	Number(1)
	    
	Percent(2)
	    
	Prospectus
	    
	Number(3)
	    
	Percent(2)
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	Nomura Securities International, Inc.(4)
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	150,000
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	*
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	20,000,000
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	150,000
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	*
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	*
	Represents beneficial ownership of less than 1% of the outstanding Ordinary Shares.

	(1)
	In accordance with Rule 13d-3(d) under the Exchange Act, we have excluded from the number of shares beneficially owned prior to the offering all of the shares that Nomura may be required to purchase under the Purchase Agreement, because the issuance of such shares is solely at our discretion and is subject to conditions contained in the Purchase Agreement, the satisfaction of which are entirely outside of Nomura’s control, including the registration statement that includes this prospectus becoming and remaining effective. Furthermore, the VWAP Purchases of Ordinary Shares are subject to certain agreed upon maximum amount limitations set forth in the Purchase Agreement. Also, the Purchase Agreement prohibits us from issuing and selling any Ordinary Shares to Nomura to the extent such shares, when aggregated with all other Ordinary Shares then beneficially owned by Nomura, would cause Nomura’s beneficial ownership of our Ordinary Shares to exceed 4.99%.

	(2)
	Applicable percentage ownership is based on 209,285,392 of our Ordinary Shares outstanding as of July 26, 2022.

	(3)
	Assumes the sale of all shares being offered pursuant to this prospectus.

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	(4)
	Nomura is a wholly owned subsidiary of Nomura Holdings, Inc. (NYSE: NMR). Nomura Holdings, Inc. is the ultimate parent holding company of Nomura, which, in its capacity as a parent company, disclaims beneficial ownership of the Ordinary Shares except to the extent of its direct or indirect economic interest in Nomura. The address of Nomura Holdings, Inc. is 13-1, Nihonbashi 1-chome, Chuo-ku, Tokyo 103-8645, Japan. The business address of Nomura is 309 West 49th Street, New York, New York 10019. Nomura is a FINRA member. Nomura is expected to act as an executing broker for the sale of the Ordinary Shares registered hereunder. The receipt by Nomura of all the proceeds from sales of Ordinary Shares to the public results in a “conflict of interest” under FINRA Rule 5121. Accordingly, such sales will be conducted in compliance with FINRA Rule 5121. To the extent that the Ordinary Shares do not have a “bona fide public market,” as defined in FINRA Rule 5121, a qualified independent underwriter will participate in the preparation of, and exercise the usual standards of “due diligence” with respect to, the registration statement. Pursuant to FINRA Rule 5121, Nomura will not confirm sales of the Ordinary Shares to any account over which it exercises discretionary authority without the prior written approval of the customer.

PLAN OF DISTRIBUTION (CONFLICT OF INTEREST)
The Ordinary Shares offered by this prospectus are being offered by the Selling Securityholder, Nomura. The shares may be sold or distributed from time to time by the Selling Securityholder directly to one or more purchasers or through brokers, dealers, or underwriters who may act solely as agents at market prices prevailing at the time of sale, at prices related to the prevailing market prices, at negotiated prices, or at fixed prices, which may be changed. The sale of our Ordinary Shares offered by this prospectus could be effected in one or more of the following methods:
		·
	ordinary brokers’ transactions;

		·
	transactions involving cross or block trades;

		·
	through brokers, dealers, or underwriters who may act solely as agents;

		·
	“at the market” into an existing market for our Ordinary Shares;

		·
	in other ways not involving market makers or established business markets, including direct sales to purchasers or sales effected through agents;

		·
	in privately negotiated transactions; or

		·
	any combination of the foregoing.

In order to comply with the securities laws of certain states, if applicable, the shares may be sold only through registered or licensed brokers or dealers. In addition, in certain states, the shares may not be sold unless they have been registered or qualified for sale in the state or an exemption from the state’s registration or qualification requirement is available and complied with.
Nomura is an “underwriter” within the meaning of Section 2(a)(11) of the Securities Act.
Nomura has informed us that it intends to, on its own behalf, effectuate all resales, if any, of our Ordinary Shares that it may acquire from us pursuant to the Purchase Agreement. Nomura may also use one or more registered broker-dealers to effectuate resales, if any, of our Ordinary Shares that it may acquire from us pursuant to the Purchase Agreement; however, Nomura is under no obligation, and has not expressed any present intent, to do so. Such sales will be made at prices and at terms then prevailing or at prices related to the then current market price. Each such registered broker-dealer will be an underwriter within the meaning of Section 2(a)(11) of the Securities Act. Nomura has informed us that any such broker-dealer may receive commissions from Nomura and, if so, such commissions will not exceed customary brokerage commissions.
Brokers, dealers, underwriters or agents participating in the distribution of our Ordinary Shares offered by this prospectus may receive compensation in the form of commissions, discounts, or concessions from the purchasers, for whom the broker-dealers may act as agent, of the shares sold by the Selling Securityholder through this prospectus. The compensation paid to any such particular broker-dealer by any such purchasers of our Ordinary Shares sold by the Selling Securityholder may be less than or in excess of customary commissions. Neither we nor the Selling Securityholder can presently estimate the amount of compensation that any agent will receive from any purchasers of Ordinary Shares sold by the Selling Securityholder.
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We know of no existing arrangements between the Selling Securityholder or any other shareholder, broker, dealer, underwriter or agent relating to the sale or distribution of our Ordinary Shares offered by this prospectus.
We may from time to time file with the SEC one or more supplements to this prospectus or amendments to the registration statement of which this prospectus forms a part to amend, supplement or update information contained in this prospectus, including, if and when required under the Securities Act, to disclose certain information relating to a particular sale of shares offered by this prospectus by the Selling Securityholder, including the names of any brokers, dealers, underwriters or agents participating in the distribution of such shares by the Selling Securityholder, any compensation paid by the Selling Securityholder to any such brokers, dealers, underwriters or agents, and any other required information.
We will pay the expenses incident to the registration under the Securities Act of the offer and sale of our Ordinary Shares covered by this prospectus by the Selling Securityholder. In addition, we have agreed to reimburse Nomura up to $75,000 for the fees and disbursements of counsel in connection with the initial transactions contemplated by the Purchase Agreement and the Registration Rights Agreement.
We also have agreed to indemnify Nomura and certain other persons against certain liabilities in connection with the offering of our Ordinary Shares offered hereby, including liabilities arising under the Securities Act or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities. Nomura has agreed to indemnify us against liabilities under the Securities Act that may arise from certain written information furnished to us by Nomura specifically for use in this prospectus or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers, and controlling persons, we have been advised that in the opinion of the SEC this indemnification is against public policy as expressed in the Securities Act and is therefore, unenforceable.
We estimate that the total expenses for the offering will be approximately $[•]. Nomura has represented to us that at no time prior to the date of the Purchase Agreement has Nomura, or any entity managed or controlled by Nomura engaged in or effected, directly or indirectly, for its own principal account, any short sale (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of our Ordinary Shares or any hedging transaction that establishes a net short position with respect to our Ordinary Shares. Nomura has agreed that during the term of the Purchase Agreement, none of Nomura, nor any entity managed or controlled by Nomura will enter into or effect, directly or indirectly, any of the foregoing transactions for its own principal account or for the principal account of any other such entity.
We have advised the Selling Securityholder that it is required to comply with Regulation M promulgated under the Exchange Act. With certain exceptions, Regulation M precludes the Selling Securityholder, any affiliated purchasers, and any broker-dealer or other person who participates in the distribution from bidding for or purchasing, or attempting to induce any person to bid for or purchase any security which is the subject of the distribution until the entire distribution is complete. Regulation M also prohibits any bids or purchases made in order to stabilize the price of a security in connection with the distribution of that security. All of the foregoing may affect the marketability of the securities offered by this prospectus.
This offering will terminate on the date that all Ordinary Shares offered by this prospectus have been sold by the Selling Securityholder.
Our Ordinary Shares are currently listed on the New York Stock Exchange under the symbol “EVTL”.
Nomura and/or one or more of its affiliates has provided, currently provides and/or from time to time in the future may provide various investment banking and other financial services for us and/or one or more of our affiliates that are unrelated to the transactions contemplated by the Purchase Agreement and the offering of shares for resale by Nomura to which this prospectus relates, for which investment banking and other financial services they have received and may continue to receive customary fees, commissions and other compensation from us, aside from any discounts, fees and other compensation that Nomura has received and may receive in connection with the transactions contemplated by the Purchase Agreement, including discounts to current market prices of our Ordinary Shares reflected in the purchase prices payable by it for Ordinary Shares that we may require it to purchase from us from time to time under the Purchase Agreement.
​

Conflict of Interest
The Selling Securityholder is a FINRA member. The Selling Securityholder is expected to act as an executing broker for the sale of the Ordinary Shares pursuant to the Share Purchase Agreement. The receipt by the Selling Securityholder of all the proceeds from sales of Ordinary Shares to the public results in a “conflict of interest” under FINRA Rule 5121. Accordingly, such sales will be conducted in compliance with FINRA Rule 5121. To the extent that the Ordinary Shares do not have a “bona fide public market,” as defined in FINRA Rule 5121, a qualified independent underwriter will participate in the preparation of, and exercise the usual standards of “due diligence” with respect to, the registration statement. Pursuant to FINRA Rule 5121, Selling Securityholder will not confirm sales of the Ordinary Shares to any account over which it exercises discretionary authority without the prior written approval of the customer.
​

EXHIBIT B
BUSINESS ADDRESS & REGULATION SHO
The business address of Nomura Securities International, Inc. (“Nomura”) is 309 West 49th Street, New York, New York 10019. Nomura disclaims any beneficial ownership of the reported shares other than to the extent of any pecuniary interest it may have therein, directly or indirectly.
Nomura has represented to us that at no time prior to the date of the Purchase Agreement has Nomura or any entity managed or controlled by Nomura engaged in or effected, in any manner whatsoever, directly or indirectly, for its own principal account, any short sale (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of our ordinary shares or any hedging transaction, which establishes a net short position with respect to our ordinary shares. Nomura has agreed that during the term of the Purchase Agreement, neither Nomura, nor any entity managed or controlled by Nomura, will enter into or effect, directly or indirectly, any of the foregoing transactions for its own principal account or for the principal account of any other such entity.fubotv-2022employmentind

  US-DOCS\132933796.2  FUBOTV INC.  2022 EMPLOYMENT INDUCEMENT EQUITY INCENTIVE PLAN     1. Purposes of the Plan. The purposes of this Plan are:     • to attract and retain the best available personnel for positions of substantial responsibility,    • to provide additional incentive to Eligible Individuals, and    • to promote the success of the Company’s business.    The Plan permits the grant of Nonstatutory Stock Options, Stock Appreciation Rights, Restricted  Stock, Restricted Stock Units, Performance Units and Performance Shares.     2. Definitions. As used herein, the following definitions will apply:     (a)  “Administrator” means the Committee, unless the Board has assumed the authority for  administration of the Plan generally in accordance with Section 4 of the Plan.     (b) “Applicable Laws” means the legal and regulatory requirements relating to the  administration of equity-based awards, including but not limited to the related issuance of shares  of Common Stock, including but not limited to under U.S. federal and state corporate laws, U.S.  federal and state securities laws, the Code, any stock exchange or quotation system on which the  Common Stock is listed or quoted and the applicable laws of any non-U.S. country or jurisdiction  where Awards are, or will be, granted under the Plan.     (c) “Award” means, individually or collectively, a grant under the Plan of Options, Stock  Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units or Performance  Shares.     (d) “Award Agreement” means the written or electronic agreement setting forth the terms and  provisions applicable to each Award granted under the Plan. The Award Agreement is subject to  the terms and conditions of the Plan.     (e) “Board” means the Board of Directors of the Company.     (f) “Change in Control” means the occurrence of any of the following events:     (i) Change in Ownership of the Company. A change in the ownership of the  Company which occurs on the date that any one person, or more than one person  acting as a group (“Person”), acquires ownership of the stock of the Company that,  together with the stock held by such Person, constitutes more than fifty percent  (50%) of the total voting power of the stock of the Company; provided, however,  that for purposes of this subsection, the acquisition of additional stock by any one  Person, who is considered to own more than fifty percent (50%) of the total voting  power of the stock of the Company will not be considered a Change in Control.  Further, if the stockholders of the Company immediately before such change in  ownership continue to retain immediately after the change in ownership, in  substantially the same proportions as their ownership of shares of the Company’s  voting stock immediately prior to the change in ownership, direct or indirect  beneficial ownership of fifty percent (50%) or more of the total voting power of  

 

2    US-DOCS\132933796.2  the stock of the Company or of the ultimate parent entity of the Company, such  event shall not be considered a Change in Control under this subsection (i). For  this purpose, indirect beneficial ownership shall include, without limitation, an  interest resulting from ownership of the voting securities of one or more  corporations or other business entities which own the Company, as the case may  be, either directly or through one or more subsidiary corporations or other business  entities; or     (ii) Change in Effective Control of the Company. A change in the effective control of  the Company which occurs on the date that a majority of members of the Board is  replaced during any twelve (12) month period by Directors whose appointment or  election is not endorsed by a majority of the members of the Board prior to the date  of the appointment or election. For purposes of this subsection (ii), if any Person  is considered to be in effective control of the Company, the acquisition of  additional control of the Company by the same Person will not be considered a  Change in Control; or     (iii) Change in Ownership of a Substantial Portion of the Company’s Assets. A change  in the ownership of a substantial portion of the Company’s assets which occurs on  the date that any Person acquires (or has acquired during the twelve (12) month  period ending on the date of the most recent acquisition by such person or  persons) assets from the Company that have a total gross fair market value equal  to or more than fifty percent (50%) of the total gross fair market value of all of the  assets of the Company immediately prior to such acquisition or acquisitions;  provided, however, that for purposes of this subsection (iii), the following will not  constitute a change in the ownership of a substantial portion of the Company’s  assets: (A) a transfer to an entity that is controlled by the Company’s stockholders  immediately after the transfer, or (B) a transfer of assets by the Company to: (1) a  stockholder of the Company (immediately before the asset transfer) in exchange  for or with respect to the Company’s stock, (2) an entity, fifty percent (50%) or  more of the total value or voting power of which is owned, directly or indirectly,  by the Company, (3) a Person, that owns, directly or indirectly, fifty percent  (50%) or more of the total value or voting power of all the outstanding stock of the  Company, or (4) an entity, at least fifty percent (50%) of the total value or voting  power of which is owned, directly or indirectly, by a Person described in this  subsection (iii)(B)(3). For purposes of this subsection (iii), gross fair market value  means the value of the assets of the Company, or the value of the assets being  disposed of, determined without regard to any liabilities associated with such  assets.         For purposes of this Section 2(f), persons will be considered to be acting as a group  if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock,  or similar business transaction with the Company.     Notwithstanding the foregoing, a transaction will not be deemed a Change in  Control unless the transaction qualifies as a change in control event within the meaning of Code Section  409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations  and Internal Revenue Service guidance that has been promulgated or may be promulgated thereunder from  time to time.     

 

3    US-DOCS\132933796.2  Further and for the avoidance of doubt, a transaction will not constitute a Change  in Control if: (i) its sole purpose is to change the jurisdiction of the Company’s incorporation, or (ii) its sole  purpose is to create a holding company that will be owned in substantially the same proportions by the  persons who held the Company’s securities immediately before such transaction.     (g) “Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific  section of the Code or regulation thereunder shall include such section or regulation, any  valid regulation promulgated under such section, and any comparable provision of any  future legislation or regulation amending, supplementing or superseding such section or  regulation.     (h) “Committee” means the Compensation Committee of the Board comprised of two or more  Directors, each of whom is intended to qualify as an Outside Director and an Independent  Director.     (i) “Common Stock” means the common stock of the Company.     (j) “Company” means fuboTV Inc., a Florida corporation, or any successor thereto.     (k) “Consultant” means any natural person, including an advisor, engaged by the Company or  a Parent or Subsidiary to render bona fide services to such entity, provided the services  (i) are not in connection with the offer or sale of securities in a capital-raising transaction,  and (ii) do not directly promote or maintain a market for the Company’s securities, in each  case, within the meaning of Form S-8 promulgated under the Securities Act, and provided  further, that a Consultant will include only those persons to whom the issuance of Shares  may be registered under Form S-8 promulgated under the Securities Act.     (l) “Director” means a member of the Board.     (m) “Disability” means total and permanent disability as defined in Code Section 22(e)(3),  provided that the Administrator in its discretion may determine whether a permanent and  total disability exists in accordance with uniform and non-discriminatory standards adopted  by the Administrator from time to time.     (n) “Eligible Individual” means any prospective Employee who is commencing employment  with the Company or a Subsidiary, or is being rehired following a bona fide interruption  of employment by the Company or a Subsidiary, if he or she is granted an Award in  connection with his or her commencement of employment with the Company or a  Subsidiary and such grant is an inducement material to his or her entering into employment  with the Company or a Subsidiary (within the meaning of New York Stock Exchange Rule  303A.08 or any successor rule, if the Company’s securities are traded on the New York  Stock Exchange, and/or the applicable requirements of any other established stock  exchange on which the Company’s securities are traded, as applicable, as such rules and  requirements may be amended from time to time).  Notwithstanding the foregoing, if the  Company’s securities are traded on the Nasdaq Stock Market, an “Eligible Individual” shall  not include any prospective employee who has previously been an employee or director of  the Company or a Parent or Subsidiary unless following a bona fide period of non- employment by the Company or a Parent or Subsidiary. The Administrator may in its  discretion adopt procedures from time to time to ensure that a prospective Employee is  eligible to participate in the Plan prior to the granting of any Awards to such individual  under the Plan (including without limitation a requirement that each such prospective  

 

4    US-DOCS\132933796.2  Employee certify to the Company prior to the receipt of an Award under the Plan that he  or she has not been previously employed by the Company or a Parent or Subsidiary, or if  previously employed, has had a bona fide interruption of employment, and that the grant  of Awards under the Plan is an inducement material to his or her agreement to enter into  employment with the Company or a Subsidiary).    (o) “Employee” means any person employed by the Company or any Parent or Subsidiary of  the Company. Neither service as a Director nor payment of a director’s fee by the Company  will be sufficient to constitute “employment” by the Company.     (p) “Exchange Act” means the Securities Exchange Act of 1934, as amended.     (q) “Exchange Program” means a program under which (i) outstanding Awards are  surrendered or cancelled in exchange for awards of the same type (which may have higher  or lower exercise prices and different terms), awards of a different type, and/or cash, (ii)  Participants would have the opportunity to transfer any outstanding Awards to a financial  institution or other person or entity selected by the Administrator, and/or (iii) the exercise  price of an outstanding Award is reduced or increased. The Administrator will determine  the terms and conditions of any Exchange Program in its sole discretion.     (r) “Fair Market Value” means, as of any date, the value of Common Stock determined as  follows:     (i) If the Common Stock is listed on any established stock exchange or a national  market system (other than an over-the counter market, which will not be  considered an established stock exchange of national market system for the  purposes of this definition), including without limitation the New York Stock  Exchange, the Nasdaq Global Select Market, the Nasdaq Global Market or the  Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value will  be the closing sales price for such stock (or, if no closing sales price was reported  on that date, as applicable, on the last trading date such closing sales price was  reported) as quoted on such exchange or system on the day of determination, as  reported in The Wall Street Journal or such other source as the Administrator  deems reliable;     (ii) If the Common Stock is regularly quoted by a recognized securities dealer but  selling prices are not reported, the Fair Market Value of a Share will be the mean  between the high bid and low asked prices for the Common Stock on the day of  determination (or, if no bids and asks were reported on that date, as applicable, on  the last trading date such bids and asks were reported), as reported in The Wall  Street Journal or such other source as the Administrator deems reliable;     (iii) In the absence of an established market for the Common Stock, the Fair Market  Value will be determined in good faith by the Administrator.     (s) “Fiscal Year” means the fiscal year of the Company.     (t) “Independent Director” means a Director of the Company who is not an Employee and  who qualifies as “independent” within the meaning of New York Stock Exchange Rule  303A.02, or any successor rule, if the Company’s securities are traded on the New York  Stock Exchange, and/or the applicable requirements of any other established stock  

 

5    US-DOCS\132933796.2  exchange on which the Company’s securities are traded, as applicable, as such rules and  requirements may be amended from time to time.    (u) “Nonstatutory Stock Option” means an Option that by its terms does not qualify or is not  intended to qualify as an incentive stock option within the meaning of Code Section 422  and the regulations promulgated thereunder.     (v) “Officer” means a person who is an officer of the Company within the meaning of Section  16 of the Exchange Act and the rules and regulations promulgated thereunder.     (w) “Option” means a stock option granted pursuant to the Plan.     (x) “Outside Director” means a Director who is not an Employee.     (y) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in  Code Section 424(e).     (z) “Participant” means the holder of an outstanding Award.     (aa) “Performance Share” means an Award denominated in Shares which may be earned in  whole or in part upon attainment of performance goals or other vesting criteria as the  Administrator may determine pursuant to Section 10.     (bb)  “Performance Unit” means an Award which may be earned in whole or in part upon  attainment of performance goals or other vesting criteria as the Administrator may  determine and which may be settled for cash, Shares or other securities or a combination  of the foregoing pursuant to Section 10.     (cc) “Period of Restriction” means the period during which the transfer of Shares of Restricted  Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of  forfeiture. Such restrictions may be based on the passage of time, the achievement of target  levels of performance, or the occurrence of other events as determined by the  Administrator.     (dd) “Plan” means this 2022 Employment Inducement Equity Incentive Plan.     (ee) “Restricted Stock” means Shares issued pursuant to an Award of Restricted Stock under  Section 8 of the Plan, or issued pursuant to the early exercise of an Option.     (ff) “Restricted Stock Unit” means a bookkeeping entry representing an amount equal to the  Fair Market Value of one Share, granted pursuant to Section 9. Each Restricted Stock Unit  represents an unfunded and unsecured obligation of the Company.     (gg) “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in  effect when discretion is being exercised with respect to the Plan.     (hh) “Section 16(b)” means Section 16(b) of the Exchange Act.     (ii) “Securities Act” means the Securities Act of 1933, as amended.     (jj) “Service Provider” means an Employee, Director or Consultant.  

 

6    US-DOCS\132933796.2     (kk) “Share” means a share of the Common Stock, as adjusted in accordance with Section 15  of the Plan.     (ll) “Stock Appreciation Right” means an Award, granted alone or in connection with an  Option, that pursuant to Section 7 is designated as a Stock Appreciation Right.     (mm) “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as  defined in Code Section 424(f).     3. Stock Subject to the Plan.     (a) Stock Subject to the Plan. Subject to the provisions of Section 15 of the Plan, the maximum  aggregate number of Shares that may be subject to Awards and sold under the Plan is  3,250,000 Shares. The Shares may be authorized but unissued or treasury Shares.     (b) Lapsed Awards. If an Award expires or becomes unexercisable without having been  exercised in full, is surrendered pursuant to an Exchange Program, or, with respect to  Restricted Stock, Restricted Stock Units, Performance Units or Performance Shares, is  forfeited to or repurchased by the Company due to the failure to vest, the unpurchased  Shares (or for Awards other than Options or Stock Appreciation Rights the forfeited or  repurchased Shares) which were subject thereto will become available for future grant or  sale under the Plan (unless the Plan has terminated). With respect to Stock Appreciation  Rights, only Shares actually issued pursuant to a Stock Appreciation Right will cease to be  available under the Plan; all remaining Shares under Stock Appreciation Rights will remain  available for future grant or sale under the Plan (unless the Plan has terminated). Shares  that have actually been issued under the Plan under any Award will not be returned to the  Plan and will not become available for future distribution under the Plan; provided,  however, that if Shares issued pursuant to Awards of Restricted Stock, Restricted Stock  Units, Performance Shares or Performance Units are repurchased by the Company or are  forfeited to the Company due to the failure to vest, such Shares will become available for  future grant under the Plan. Shares used to pay the exercise price of an Award or to satisfy  the tax withholdings related to an Award will become available for future grant or sale  under the Plan. To the extent an Award under the Plan is paid out in cash rather than Shares,  such cash payment will not result in reducing the number of Shares available for issuance  under the Plan. Notwithstanding the provisions of this Section 3, no Shares shall again be  available for future grants of Awards under the Plan pursuant to this Section 3 to the extent  that such return of shares would cause the Plan to constitute a “formula plan” or constitute  a “material revision” of the Plan subject to stockholder approval under the then-applicable  rules of the New York Stock Exchange (or any other applicable exchange or quotation  system).        (c) Share Reserve. The Company, during the term of this Plan, will at all times reserve and  keep available such number of Shares as will be sufficient to satisfy the requirements of  the Plan.        

 

7    US-DOCS\132933796.2  4. Administration of the Plan.      (a) Procedure.     (i) Administrator. The Plan will be administered by the Committee, which Committee  will be constituted to satisfy Applicable Laws. The Board may abolish the  Committee or re-vest in itself any previously delegated authority at any time;  provided, however, that any action taken by the Board in connection with the  administration of the Plan shall not be deemed approved by the Board unless such  actions are approved by a majority of the Independent Directors. Awards under the  Plan will be approved by (a) the Committee comprised entirely of Independent  Directors or (b) a majority of the Company’s Independent Directors.     (ii) Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt  under Rule 16b-3, the transactions contemplated hereunder will be structured to  satisfy the requirements for exemption under Rule 16b-3.        (b) Powers of the Administrator. Subject to the provisions of the Plan the Administrator will  have the authority, in its discretion:     (i) to determine the Fair Market Value;     (ii) to select the Eligible Individuals to whom Awards may be granted hereunder;     (iii) to determine the number of Shares to be covered by each Award granted hereunder;     (iv) to approve forms of Award Agreements for use under the Plan;     (v) to determine the terms and conditions, not inconsistent with the terms of the Plan,  of any Award granted hereunder. Such terms and conditions include, but are not  limited to, the exercise price, the time or times when Awards may be exercised  (which may be based on performance criteria), any vesting acceleration or waiver  of forfeiture restrictions, and any restriction or limitation regarding any Award or  the Shares relating thereto, based in each case on such factors as the Administrator  will determine;     (vi) to institute and determine the terms and conditions of an Exchange Program,  without stockholder approval;     (vii) to construe and interpret the terms of the Plan and Awards granted pursuant to the  Plan;     (viii) to prescribe, amend and rescind rules and regulations relating to the Plan, including  rules and regulations relating to sub-plans established for the purpose of satisfying  applicable non-U.S. laws or for qualifying for favorable tax treatment under  applicable non-U.S. laws;     (ix) to modify or amend each Award (subject to Section 20(c) of the Plan), including  but not limited to the discretionary authority to extend the post-termination  

 

8    US-DOCS\132933796.2  exercisability period of Awards; provided, however, that in no case will an Option  or Stock Appreciation Right be extended beyond its original maximum term;     (x) to allow Participants to satisfy tax withholding obligations in a manner prescribed  in Section 15(d);     (xi) to authorize any person to execute on behalf of the Company any instrument  required to effect the grant of an Award previously granted by the Administrator;     (xii) to allow a Participant to defer the receipt of the payment of cash or the delivery of  Shares that otherwise would be due to such Participant under an Award;      (xiii) to make all other determinations deemed necessary or advisable for administering  the Plan; and    (xiv) to adopt procedures from time to time intended to ensure that an individual is an  Eligible Individual prior to the granting of any Awards to such individual under  the Plan (including without limitation a requirement, if any, that each such  individual certify to the Company prior to the receipt of an Award under the Plan  that he or she has not been previously employed by the Company or Parent or a  Subsidiary, or if previously employed, has had a bona fide period of non- employment, and that the grant of Awards under the Plan is an inducement material  to his or her agreement to enter into employment with the Company or a  Subsidiary).     (c) Effect of Administrator’s Decision. The Administrator’s decisions, determinations and  interpretations will be final and binding on all Participants and any other holders of Awards  and will be given the maximum deference permitted by Applicable Laws.     5. Eligibility. Restricted Stock, Restricted Stock Units, Performance Shares and Performance Units  may be granted to any Eligible Individuals. Nonstatutory Stock Options and Stock Appreciation Rights, to  the extent required for exemption under Section 409A, may be granted only to Eligible Individuals  rendering services to the Company or a Subsidiary (not a Parent).      6. Stock Options.     (a) Grant of Options. Subject to the terms and provisions of the Plan, the Administrator, at any  time and from time to time, may grant Options in such amounts as the Administrator, in its  sole discretion, will determine.     (b) Option Agreement. Each Award of an Option will be evidenced by an Award Agreement  that will specify the exercise price, the term of the Option, the number of Shares subject to  the Option, the exercise restrictions, if any, applicable to the Option, and such other terms  and conditions as the Administrator, in its sole discretion, will determine.     (c) Limitations. Each Option granted under the Plan will be a Nonstatutory Stock Option.      (d) Term of Option. The term of each Option will be stated in the Award Agreement and will  be no more than ten (10) years from the date of grant thereof.      (e) Option Exercise Price and Consideration.  

 

9    US-DOCS\132933796.2     (i) Exercise Price. The per Share exercise price for the Shares to be issued pursuant  to the exercise of an Option will be determined by the Administrator and shall be  no less than one hundred percent (100%) of the Fair Market Value per Share on  the date of grant (or the fair market value per Share as determined in accordance  with Treas. Reg. 1.409A-1(b)(5)(iv)(A)).       (ii) Waiting Period and Exercise Dates. At the time an Option is granted, the  Administrator will fix the period within which the Option may be exercised and  will determine any conditions that must be satisfied before the Option may be  exercised.     (iii) Form of Consideration. The Administrator will determine the acceptable form of  consideration for exercising an Option, including the method of payment. Such  consideration may consist entirely of: (1) cash; (2) check; (3) promissory note; to  the extent permitted by Applicable Laws; (4) other Shares, provided that such  Shares have a Fair Market Value on the date of surrender equal to the aggregate  exercise price of the Shares as to which such Option will be exercised and provided  further that accepting such Shares will not result in any adverse accounting  consequences to the Company, as the Administrator determines in its sole  discretion; (5) consideration received by the Company under a broker assisted (or  other) cashless exercise program (whether through a broker or otherwise)  implemented by the Company in connection with the Plan; (6) by net exercise; (7)  such other consideration and method of payment for the issuance of Shares to the  extent permitted by Applicable Laws; or (8) any combination of the foregoing  methods of payment. In making its determination as to the type of consideration to  accept, the Administrator will consider if acceptance of such consideration may be  reasonably expected to benefit the Company.     (f) Exercise of Option.     (i) Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder  will be exercisable according to the terms of the Plan and at such times and under  such conditions as determined by the Administrator and set forth in the Award  Agreement. An Option may not be exercised for a fraction of a Share.     An Option will be deemed exercised when the Company receives: (i) notice of  exercise (in such form as the Administrator may specify from time to time) from  the person entitled to exercise the Option, and (ii) full payment for the Shares with  respect to which the Option is exercised (together with applicable tax withholding).  Full payment may consist of any consideration and method of payment authorized  by the Administrator and permitted by the Award Agreement and the Plan. Shares  issued upon exercise of an Option will be issued in the name of the Participant or,  if requested by the Participant, in the name of the Participant and his or her spouse.  Until the Shares are issued (as evidenced by the appropriate entry on the books of  the Company or of a duly authorized transfer agent of the Company), no right to  vote or receive dividends or any other rights as a stockholder will exist with respect  to the Shares subject to an Option, notwithstanding the exercise of the Option. The  Company will issue (or cause to be issued) such Shares promptly after the Option  is exercised. No adjustment will be made for a dividend or other right for which  

 

10    US-DOCS\132933796.2  the record date is prior to the date the Shares are issued, except as provided in  Section 15 of the Plan.     Exercising an Option in any manner will decrease the number of Shares thereafter  available, both for purposes of the Plan and for sale under the Option, by the  number of Shares as to which the Option is exercised.     (ii) Termination of Relationship as a Service Provider. If a Participant ceases to be a  Service Provider, other than upon the Participant’s termination as the result of the  Participant’s death or Disability, the Participant may exercise his or her Option  within such period of time as is specified in the Award Agreement to the extent  that the Option is vested on the date of termination (but in no event later than the  expiration of the term of such Option as set forth in the Award Agreement). In the  absence of a specified time in the Award Agreement, the Option will remain  exercisable for three (3) months following the Participant’s termination. Unless  otherwise provided by the Administrator, if on the date of termination the  Participant is not vested as to his or her entire Option, the Shares covered by the  unvested portion of the Option will revert to the Plan. If after termination the  Participant does not exercise his or her Option within the time specified by the  Administrator, the Option will terminate, and the Shares covered by such Option  will revert to the Plan.     (iii) Disability of Participant. If a Participant ceases to be a Service Provider as a result  of the Participant’s Disability, the Participant may exercise his or her Option within  such period of time as is specified in the Award Agreement to the extent the Option  is vested on the date of termination (but in no event later than the expiration of the  term of such Option as set forth in the Award Agreement). In the absence of a  specified time in the Award Agreement, the Option will remain exercisable for  twelve (12) months following the Participant’s termination. Unless otherwise  provided by the Administrator, if on the date of termination the Participant is not  vested as to his or her entire Option, the Shares covered by the unvested portion of  the Option will revert to the Plan. If after termination the Participant does not  exercise his or her Option within the time specified herein, the Option will  terminate, and the Shares covered by such Option will revert to the Plan.     (iv) Death of Participant. If a Participant dies while a Service Provider, the Option may  be exercised following the Participant’s death within such period of time as is  specified in the Award Agreement to the extent that the Option is vested on the  date of death (but in no event may the option be exercised later than the expiration  of the term of such Option as set forth in the Award Agreement), by the  Participant’s designated beneficiary, provided such beneficiary has been  designated prior to Participant’s death in a form acceptable to the Administrator.  If no such beneficiary has been designated by the Participant, then such Option  may be exercised by the personal representative of the Participant’s estate or by  the person(s) to whom the Option is transferred pursuant to the Participant’s will  or in accordance with the laws of descent and distribution. In the absence of a  specified time in the Award Agreement, the Option will remain exercisable for  twelve (12) months following Participant’s death. Unless otherwise provided by  the Administrator, if at the time of death Participant is not vested as to his or her  entire Option, the Shares covered by the unvested portion of the Option will  immediately revert to the Plan. If the Option is not so exercised within the time  

 

11    US-DOCS\132933796.2  specified herein, the Option will terminate, and the Shares covered by such Option  will revert to the Plan.     7. Stock Appreciation Rights.     (a) Grant of Stock Appreciation Rights. Subject to the terms and conditions of the Plan, a Stock  Appreciation Right may be granted to Eligible Individuals at any time and from time to  time as will be determined by the Administrator, in its sole discretion.     (b) Number of Shares. The Administrator will have complete discretion to determine the  number of Shares subject to any Award of Stock Appreciation Rights.     (c) Exercise Price and Other Terms. The per Share exercise price for the Shares that will  determine the amount of the payment to be received upon exercise of a Stock Appreciation  Right as set forth in Section 7(f) will be determined by the Administrator and will be no  less than one hundred percent (100%) of the Fair Market Value per Share on the date of  grant. Otherwise, the Administrator, subject to the provisions of the Plan, will have  complete discretion to determine the terms and conditions of Stock Appreciation Rights  granted under the Plan.     (d) Stock Appreciation Right Agreement. Each Stock Appreciation Right grant will be  evidenced by an Award Agreement that will specify the exercise price, the term of the  Stock Appreciation Right, the conditions of exercise, and such other terms and conditions  as the Administrator, in its sole discretion, will determine.     (e) Expiration of Stock Appreciation Rights. A Stock Appreciation Right granted under the  Plan will expire upon the date determined by the Administrator, in its sole discretion, and  set forth in the Award Agreement. Notwithstanding the foregoing, the rules of Section 6(d)  relating to the maximum term and Section 6(f) relating to exercise also will apply to Stock  Appreciation Rights.     (f) Payment of Stock Appreciation Right Amount. Upon exercise of a Stock Appreciation  Right, a Participant will be entitled to receive payment from the Company in an amount  determined by multiplying:     (i) The difference between the Fair Market Value of a Share on the date of exercise  over the exercise price; times     (ii) The number of Shares with respect to which the Stock Appreciation Right is  exercised.     At the discretion of the Administrator, the payment upon Stock Appreciation Right exercise  may be in cash, in Shares of equivalent value, or in some combination thereof.     8. Restricted Stock.     (a) Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the  Administrator, at any time and from time to time, may grant Shares of Restricted Stock to  Eligible Individuals in such amounts as the Administrator, in its sole discretion, will  determine.     

 

12    US-DOCS\132933796.2  (b) Restricted Stock Agreement. Each Award of Restricted Stock will be evidenced by an  Award Agreement that will specify the Period of Restriction, the number of Shares granted,  and such other terms and conditions as the Administrator, in its sole discretion, will  determine. Unless the Administrator determines otherwise, the Company as escrow agent  will hold Shares of Restricted Stock until the restrictions on such Shares have lapsed.     (c) Transferability. Except as provided in this Section 8 or as the Administrator determines,  Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise  alienated or hypothecated until the end of the applicable Period of Restriction.     (d) Other Restrictions. The Administrator, in its sole discretion, may impose such other  restrictions on Shares of Restricted Stock as it may deem advisable or appropriate.     (e) Removal of Restrictions. Except as otherwise provided in this Section 8, Shares of  Restricted Stock covered by each Restricted Stock grant made under the Plan will be  released from escrow as soon as practicable after the last day of the Period of Restriction  or at such other time as the Administrator may determine. The Administrator, in its  discretion, may accelerate the time at which any restrictions will lapse or be removed.     (f) Voting Rights. During the Period of Restriction, Service Providers holding Shares of  Restricted Stock granted hereunder may exercise full voting rights with respect to those  Shares, unless the Administrator determines otherwise.     (g) Dividends and Other Distributions. During the Period of Restriction, Service Providers  holding Shares of Restricted Stock will be entitled to receive all dividends and other  distributions paid with respect to such Shares, unless the Administrator provides otherwise.  If any such dividends or distributions are paid in Shares, the Shares will be subject to the  same restrictions on transferability and forfeitability as the Shares of Restricted Stock with  respect to which they were paid.     (h) Return of Restricted Stock to Company. On the date set forth in the Award Agreement, the  Restricted Stock for which restrictions have not lapsed will revert to the Company and  again will become available for grant under the Plan.     9. Restricted Stock Units.     (a) Grant. Restricted Stock Units may be granted at any time and from time to time as  determined by the Administrator. After the Administrator determines that it will grant  Restricted Stock Units under the Plan, it will advise the Participant in an Award Agreement  of the terms, conditions, and restrictions related to the grant, including the number of  Restricted Stock Units.     (b) Vesting Criteria and Other Terms. The Administrator will set vesting criteria in its  discretion, which, depending on the extent to which the criteria are met, will determine the  number of Restricted Stock Units that will be paid out to the Participant. The Administrator  may set vesting criteria based upon the achievement of Company-wide, divisional, business  unit, or individual goals (including, but not limited to, continued employment or service),  applicable federal or state securities laws, or any other basis determined by the  Administrator in its discretion.     

 

13    US-DOCS\132933796.2  (c) Earning Restricted Stock Units. Upon meeting the applicable vesting criteria, the  Participant will be entitled to receive a payout as determined by the Administrator.  Notwithstanding the foregoing, at any time after the grant of Restricted Stock Units, the  Administrator, in its sole discretion, may reduce or waive any vesting criteria that must be  met to receive a payout.     (d) Form and Timing of Payment. Payment of earned Restricted Stock Units will be made as  soon as practicable after the date(s) determined by the Administrator and set forth in the  Award Agreement which shall establish exemption or comply with all requirements of  Code Section 409A. The Administrator, in its sole discretion, may settle earned Restricted  Stock Units in cash, Shares, or a combination of both.     (e) Cancellation. On the date set forth in the Award Agreement, all unearned Restricted Stock  Units will be forfeited to the Company.     10. Performance Units and Performance Shares.     (a) Grant of Performance Units/Shares. Performance Units and Performance Shares may be  granted to Eligible Individuals at any time and from time to time, as will be determined by  the Administrator, in its sole discretion. The Administrator will have complete discretion  in determining the number of Performance Units and Performance Shares granted to each  Participant.     (b) Value of Performance Units/Shares. Each Performance Unit will have an initial value that  is established by the Administrator on or before the date of grant. Each Performance Share  will have an initial value equal to the Fair Market Value of a Share on the date of grant.     (c) Performance Objectives and Other Terms. The Administrator will set performance  objectives or other vesting provisions (including, without limitation, continued status as a  Service Provider) in its discretion which, depending on the extent to which they are met,  will determine the number or value of Performance Units/Shares that will be paid out to  the Service Providers. The time period during which the performance objectives or other  vesting provisions must be met will be called the “Performance Period.” Each Award of  Performance Units/Shares will be evidenced by an Award Agreement that will specify the  Performance Period, and such other terms and conditions as the Administrator, in its sole  discretion, will determine. The Administrator may set performance objectives based upon  the achievement of Company-wide, divisional, business unit or individual goals (including,  but not limited to, continued employment or service), applicable federal or state securities  laws, or any other basis determined by the Administrator in its discretion.     (d) Earning of Performance Units/Shares. After the applicable Performance Period has ended,  the holder of Performance Units/Shares will be entitled to receive a payout of the number  of Performance Units/Shares earned by the Participant over the Performance Period, to be  determined as a function of the extent to which the corresponding performance objectives  or other vesting provisions have been achieved. After the grant of a Performance  Unit/Share, the Administrator, in its sole discretion, may reduce or waive any performance  objectives or other vesting provisions for such Performance Unit/Share.     (e) Form and Timing of Payment of Performance Units/Shares. Payment of earned  Performance Units/Shares will be made as soon as practicable after the expiration of the  applicable Performance Period or at such other time as may be specified in the Award  

 

14    US-DOCS\132933796.2  Agreement which shall establish exemption or comply with all requirements of Code  Section 409A. The Administrator, in its sole discretion, may pay earned Performance  Units/Shares in the form of cash, in Shares (which have an aggregate Fair Market Value  equal to the value of the earned Performance Units/Shares at the close of the applicable  Performance Period) or in a combination thereof.     (f) Cancellation of Performance Units/Shares. On the date set forth in the Award Agreement,  all unearned or unvested Performance Units/Shares will be forfeited to the Company, and  again will be available for grant under the Plan.     11. Actions Required Upon Grant of Award. Following the issuance of any Award under the Plan, the  Company shall, in accordance with the listing requirements of the applicable securities exchange,  (a) promptly issue a press release disclosing the material terms of the grant, including the  recipient(s) of the grant and the number of shares involved (and if the disclosure relates to an award  to executive officers, or if the award was individually negotiated, then the disclosure must include  the identity of the recipient), and (b) notify the applicable securities exchange of such grant no later  than the earlier to occur of (i) five calendar days after entering into the agreement to issue the  Award or (ii) the date of the public announcement of the Award.     12. Compliance With Code Section 409A. Awards will be designed and operated in such a manner that  they are either exempt from the application of, or comply with, the requirements of Code  Section 409A such that the grant, payment, settlement or deferral will not be subject to the  additional tax or interest applicable under Code Section 409A, except as otherwise determined in  the sole discretion of the Administrator. The Plan and each Award Agreement under the Plan is  intended to meet the requirements of Code Section 409A and will be construed and interpreted in  accordance with such intent, except as otherwise determined in the sole discretion of the  Administrator. To the extent that an Award or payment, or the settlement or deferral thereof, is  subject to Code Section 409A the Award will be granted, paid, settled or deferred in a manner that  will meet the requirements of Code Section 409A, such that the grant, payment, settlement or  deferral will not be subject to the additional tax or interest applicable under Code Section 409A. In  no event will the Company have any obligation under the terms of this Plan to reimburse a  Participant for any taxes or other costs that may be imposed on Participant as a result of Section  409A.     13. Leaves of Absence/Transfer Between Locations. Unless the Administrator provides otherwise,  vesting of Awards granted hereunder will be suspended during any unpaid leave of absence. A  Participant will not cease to be an Employee in the case of (i) any leave of absence approved by  the Company or (ii) transfers between locations of the Company or between the Company, its  Parent, or any Subsidiary.      14. Limited Transferability of Awards.  Unless determined otherwise by the Administrator, Awards  may not be sold, pledged, assigned, hypothecated, or otherwise transferred in any manner other  than by will or by the laws of descent and distribution, and may be exercised, during the lifetime  of the Participant, only by the Participant. If the Administrator makes an Award transferable, such  Award will contain such additional terms and conditions as the Administrator deems appropriate.     15. Adjustments; Dissolution or Liquidation; Merger or Change in Control.     (a) Adjustments. In the event that any dividend or other distribution (whether in the form of  cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock  split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or  

 

15    US-DOCS\132933796.2  exchange of Shares or other securities of the Company, or other change in the corporate  structure of the Company affecting the Shares occurs, the Administrator, in order to prevent  diminution or enlargement of the benefits or potential benefits intended to be made  available under the Plan, will adjust the number and class of shares of stock that may be  delivered under the Plan and/or the number, class, and price of shares of stock covered by  each outstanding Award, and the numerical Share limits of Section 3.     (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the  Company, the Administrator will notify each Participant as soon as practicable prior to the  effective date of such proposed transaction. To the extent it has not been previously  exercised, an Award will terminate immediately prior to the consummation of such  proposed action.     (c) Change in Control. In the event of a merger of the Company with or into another  corporation or other entity or a Change in Control, each outstanding Award will be treated  as the Administrator determines (subject to the provisions of the following paragraph)  without a Participant’s consent, including, without limitation, that (i) Awards will be  assumed, or substantially equivalent awards will be substituted, by the acquiring or  succeeding corporation (or an affiliate thereof) with appropriate adjustments as to the  number and kind of shares and prices; (ii) upon written notice to a Participant, that the  Participant’s Awards will terminate upon or immediately prior to the consummation of  such merger or Change in Control; (iii) outstanding Awards will vest and become  exercisable, realizable, or payable, or restrictions applicable to an Award will lapse, in  whole or in part prior to or upon consummation of such merger or Change in Control, and,  to the extent the Administrator determines, terminate upon or immediately prior to the  effectiveness of such merger or Change in Control; (iv) (A) the termination of an Award  in exchange for an amount of cash and/or property, if any, equal to the amount that would  have been attained upon the exercise of such Award or realization of the Participant’s rights  as of the date of the occurrence of the transaction (and, for the avoidance of doubt, if as of  the date of the occurrence of the transaction the Administrator determines in good faith that  no amount would have been attained upon the exercise of such Award or realization of the  Participant’s rights, then such Award may be terminated by the Company without  payment), or (B) the replacement of such Award with other rights or property selected by  the Administrator in its sole discretion; or (v) any combination of the foregoing. In taking  any of the actions permitted under this subsection 15(c), the Administrator will not be  obligated to treat all Awards, all Awards held by a Participant, or all Awards of the same  type, similarly.     In the event that the successor corporation does not assume or substitute for the Award (or  portion thereof), the Participant will fully vest in and have the right to exercise all of his or  her outstanding Options and Stock Appreciation Rights, including Shares as to which such  Awards would not otherwise be vested or exercisable, all restrictions on Restricted Stock  and Restricted Stock Units will lapse, and, with respect to Awards with performance-based  vesting, all performance goals or other vesting criteria will be deemed achieved at one  hundred percent (100%) of target levels and all other terms and conditions met, in all cases,  unless specifically provided otherwise under the applicable Award Agreement or other  written agreement between the Participant and the Company or any of its Subsidiaries or  Parents, as applicable. In addition, if an Option or Stock Appreciation Right is not assumed  or substituted in the event of a merger or Change in Control, the Administrator will notify  the Participant in writing or electronically that the Option or Stock Appreciation Right will  be exercisable for a period of time determined by the Administrator in its sole discretion,  

 

16    US-DOCS\132933796.2  and the Option or Stock Appreciation Right will terminate upon the expiration of such  period.     For the purposes of this subsection 15(c) and subsection 15(d), an Award will be  considered assumed if, following the merger or Change in Control, the Award confers the  right to purchase or receive, for each Share subject to the Award immediately prior to the  merger or Change in Control, the consideration (whether stock, cash, or other securities or  property) received in the merger or Change in Control by holders of Common Stock for  each Share held on the effective date of the transaction (and if holders were offered a choice  of consideration, the type of consideration chosen by the holders of a majority of the  outstanding Shares); provided, however, that if such consideration received in the merger  or Change in Control is not solely common stock of the successor corporation or its Parent,  the Administrator may, with the consent of the successor corporation, provide for the  consideration to be received upon the exercise of an Option or Stock Appreciation Right  or upon the payout of a Restricted Stock Unit, Performance Unit, or Performance Share,  for each Share subject to such Award, to be solely common stock of the successor  corporation or its Parent equal in fair market value to the per share consideration received  by holders of Common Stock in the merger or Change in Control.     Notwithstanding anything in this Section 15(c) to the contrary, an Award that vests, is  earned or paid-out upon the satisfaction of one or more performance goals will not be  considered assumed if the Company or its successor modifies any of such performance  goals without the Participant’s consent, in all cases, unless specifically provided otherwise  under the applicable Award Agreement or other written agreement between the Participant  and the Company or any of its Subsidiaries or Parents, as applicable; provided, however, a  modification to such performance goals only to reflect the successor corporation’s post- Change in Control corporate structure will not be deemed to invalidate an otherwise valid  Award assumption.     Notwithstanding anything in this Section 15(c) to the contrary, and unless otherwise  provided in an Award Agreement, if an Award that vests, is earned or paid-out under an  Award Agreement is subject to Code Section 409A and if the change in control definition  contained in the Award Agreement does not comply with the definition of “change of  control” for purposes of a distribution under Code Section 409A, then any payment of an  amount that is otherwise accelerated under this Section will be delayed until the earliest  time that such payment would be permissible under Code Section 409A without triggering  any penalties applicable under Code Section 409A.     16. Tax Withholding.     (a) Withholding Requirements. Prior to the delivery of any Shares or cash pursuant to an  Award (or exercise thereof) or such earlier time as any tax withholding obligation is due,  the Company will have the power and the right to deduct or withhold, or require a  Participant to remit to the Company, an amount sufficient to satisfy federal, state, local,  non-U.S. or other taxes (including the Participant’s FICA obligation) required to be  withheld with respect to such Award (or exercise thereof).     (b) Withholding Arrangements. The Administrator, in its sole discretion and pursuant to such  procedures as it may specify from time to time, may permit a Participant to satisfy such tax  withholding obligation, in whole or in part by such methods as the Administrator shall  determine, including, without limitation, (i) paying cash, (ii) electing to have the Company  

 

17    US-DOCS\132933796.2  withhold otherwise deliverable cash or Shares having a fair market value equal to the  minimum statutory amount required to be withheld or such greater amount as the  Administrator may determine if such amount would not have adverse accounting  consequences, as the Administrator determines in its sole discretion, (iii) delivering to the  Company already-owned Shares having a fair market value equal to the minimum statutory  amount required to be withheld or such greater amount as the Administrator may  determine, in each case, provided the delivery of such Shares will not result in any adverse  accounting consequences, as the Administrator determines in its sole  discretion, (iv) selling a sufficient number of Shares otherwise deliverable to the  Participant through such means as the Administrator may determine in its sole discretion  (whether through a broker or otherwise) equal to the amount required to be withheld, or (v)  any combination of the foregoing methods of payment. The amount of the withholding  requirement will be deemed to include any amount which the Administrator agrees may be  withheld at the time the election is made, not to exceed the amount determined by using  the maximum federal, state or local marginal income tax rates applicable to the Participant  with respect to the Award on the date that the amount of tax to be withheld is to be  determined or such greater amount as the Administrator may determine if such amount  would not have adverse accounting consequences, as the Administrator determines in its  sole discretion. The fair market value of the Shares to be withheld or delivered will be  determined as of the date that the taxes are required to be withheld.     17. No Effect on Employment or Service. Neither the Plan nor any Award will confer upon a  Participant any right with respect to continuing the Participant’s relationship as a Service Provider  with the Company or its Subsidiaries or Parents, as applicable, nor will they interfere in any way  with the Participant’s right or the right of the Company and its Subsidiaries or Parents, as applicable  to terminate such relationship at any time, with or without cause, to the extent permitted by  Applicable Laws.     18. Date of Grant. The date of grant of an Award will be, for all purposes, the date on which the  Administrator makes the determination granting such Award, or such other later date as is  determined by the Administrator. Notice of the determination will be provided to each Participant  within a reasonable time after the date of such grant.     19. Term of Plan. The Plan will become effective upon its adoption by the Board. It will continue in  effect until terminated by the Board.     20. Amendment and Termination of the Plan.     (a) Amendment and Termination. The Administrator may at any time amend, alter, suspend  or terminate the Plan.     (b) Stockholder Approval. The Company will obtain stockholder approval of any Plan  amendment to the extent necessary and desirable to comply with Applicable Laws.     (c) Effect of Amendment or Termination. No amendment, alteration, suspension or  termination of the Plan will impair the rights of any Participant, unless mutually agreed  otherwise between the Participant and the Administrator, which agreement must be in  writing and signed by the Participant and the Company. Termination of the Plan will not  affect the Administrator’s ability to exercise the powers granted to it hereunder with respect  to Awards granted under the Plan prior to the date of such termination.     

 

18    US-DOCS\132933796.2  21. Conditions Upon Issuance of Shares.     (a) Legal Compliance. Shares will not be issued pursuant to the exercise of an Award unless  the exercise of such Award and the issuance and delivery of such Shares will comply with  Applicable Laws and will be further subject to the approval of counsel for the Company  with respect to such compliance.     (b) Investment Representations. As a condition to the exercise of an Award, the Company may  require the person exercising such Award to represent and warrant at the time of any such  exercise that the Shares are being purchased only for investment and without any present  intention to sell or distribute such Shares if, in the opinion of counsel for the Company,  such a representation is required.     22. Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory  body having jurisdiction or to complete or comply with the requirements of any registration or other  qualification of the Shares under any state, federal or non-U.S. law or under the rules and  regulations of the Securities and Exchange Commission, the stock exchange on which Shares of  the same class are then listed, or any other governmental or regulatory body, which authority,  registration, qualification or rule compliance is deemed by the Company’s counsel to be necessary  or advisable for the issuance and sale of any Shares hereunder, will relieve the Company of any  liability in respect of the failure to issue or sell such Shares as to which such requisite authority,  registration, qualification or rule compliance will not have been obtained.     23. Stockholder Approval Not Required. It is expressly intended that approval of the Company’s  stockholders not be required as a condition of the effectiveness of the Plan, and the Plan’s  provisions shall be interpreted in a manner consistent with such intent for all purposes. Specifically,  (a) New York Stock Exchange Rule 303A.08 generally requires stockholder approval for equity- compensation plans adopted by companies whose securities are listed on the New York Stock  Exchange, and (b) Nasdaq Stock Market Rule 5635(c) generally requires stockholder approval for  stock option plans or other equity compensation arrangements adopted by companies whose  securities are listed on the Nasdaq Stock Market pursuant to which stock awards or stock may be  acquired by officers, directors, employees or consultants of such companies. New York Stock  Exchange Rule 303A.08 and Nasdaq Stock Market Rule 5635(c)(4) each provides an exemption in  certain circumstances for “employment inducement” awards (within the meaning of New York  Stock Exchange Rule 303A.08 and Nasdaq Stock Market Rule 5635(c)(4)). Notwithstanding  anything to the contrary herein, (w) if the Company’s securities are traded on the New York Stock  Exchange, then Awards under the Plan may only be made to employees who are being hired by the  Company or a Subsidiary, or being rehired following a bona fide period of interruption of  employment by the Company or a Subsidiary, and (x) if the Company’s securities are traded on the  Nasdaq Stock Market, then Awards under the Plan may only be made to employees who have not  previously been an employee or director of the Company or a Parent or Subsidiary, or following a  bona fide period of non-employment by the Company or a Parent or Subsidiary, in each case as an  inducement material to the employee’s entering into employment with the Company or a  Subsidiary. Awards under the Plan will be approved by (y) the Committee, which shall be  comprised solely of Independent Directors, or (z) a majority of the Company’s Independent  Directors. Accordingly, pursuant to New York Stock Exchange Rule 303A.08 and Nasdaq Stock  Market Rule 5635(c)(4), the issuance of Awards and the Shares issuable upon exercise or vesting  of such Awards pursuant to the Plan are not subject to the approval of the Company’s stockholders.        

 

19    US-DOCS\132933796.2  24. Forfeiture Events.     (a) All Awards under the Plan will be subject to recoupment under any clawback policy that  the Company is required to adopt pursuant to the listing standards of any national securities  exchange or association on which the Company’s securities are listed or as is otherwise  required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other  Applicable Laws. In addition, the Administrator may impose such other clawback,  recovery or recoupment provisions in an Award Agreement as the Administrator  determines necessary or appropriate, including but not limited to a reacquisition right  regarding previously acquired Shares or other cash or property. Unless this Section 24 is  specifically mentioned and waived in an Award Agreement or other document, no recovery  of compensation under a clawback policy or otherwise will be an event that triggers or  contributes to any right of a Participant to resign for “good reason” or “constructive  termination” (or similar term) under any agreement with the Company or a Subsidiary or  Parent of the Company.     (b) The Administrator may specify in an Award Agreement that the Participant’s rights,  payments, and benefits with respect to an Award will be subject to reduction, cancellation,  forfeiture, or recoupment upon the occurrence of specified events, in addition to any  otherwise applicable vesting or performance conditions of an Award. Such events may  include, but will not be limited to, termination of such Participant’s status as Service  Provider for cause or any specified action or inaction by a Participant, whether before or  after such termination of service, that would constitute cause for termination of such  Participant’s status as a Service Provider.

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