Document:

Saime Purchase Agreement

 Exhibit 10.12 
  

  
 SECURITIES SALE AGREEMENT 
 FINANCIERE ACE S.A.S. 
  

  
 4 May 2005 
  
 

 
  
 

 

			
	 1. DEFINITIONS
	  	6
		
	 2. SALE AND PURCHASE
	  	9
		
	 3. TRANSFER PRICE
	  	10
		
	 4. CONDITIONS PRECEDENT - TERMINATION
	  	10
		
	 5. COMPLETION
	  	11
		
	 6. REPRESENTATIONS AND WARRANTIES OF THE SELLERS
	  	13
		
	 7. MANAGEMENT OF THE GROUP BETWEEN THE DATE OF THIS AGREEMENT AND THE DATE OF COMPLETION
	  	13
		
	 8. REPRESENTATIONS OF THE PURCHASER
	  	14
		
	 9. REDUCTION OF THE PURCHASE PRICE
	  	14
		
	 10. RESTRICTIVE COVENANT
	  	19
		
	 11. NOTICES
	  	20
		
	 12. CLOSING OF THE 2005 ACCOUNTS
	  	20
		
	 13. POWER OF ATTORNEY
	  	20
		
	 14. MISCELLANEOUS
	  	21

  

 2 

 BETWEEN THE UNDERSIGNED: 
  

	1.	Barclays Private Equity FCPR A, Barclays Private Equity FCPR B, and Barclays Private Equity FCPR C 2004, three French fonds communs de placement á
risques, represented by their management company, Barclays Private Equity France SA (“BPEF”), a société anonyme with a directorate and a supervisory board incorporated under the laws of
France, with a share capital of 24,000,000 Euro, having its registered office at 73, avenue des Champs Elysées - 75008 Paris, registered with the commercial and companies registry under the number 379 716 699 RCS Paris, itself represented by
Mr. Laurent Chauvois, duly empowered for this purpose, 

  

	2.	Capvent, a société civile à capital variable incorporated under the laws of France, having its registered office at 21, boulevard de la
Madeleine – 75001 Paris, registered with the commercial and companies registry under the number 433 969 870 RCS Paris, itself represented by Mrs. Sophie Rouland, duly empowered for this purpose, 

  

	3.	Barclays PVLP Partner Limited, a company incorporated under English laws, having its registered office at 54, Lombard Street – Londres EC3P 3AH, acting as General
Partner of Barclays Private Equity PVLP Limited Partnership, represented by Mr. Laurent Chauvois, duly empowered for this purpose, (“PVLP”) 

  

	4.	Paralièle Ventures Nominees n° 2 Ltd, a company incorporated under English laws, having its registered office at 49 Saint James’s Street, Londres SW1A 1JT,
represented by Mr. Laurent Chauvois, duly empowered for this purpose, (“PVN”) 

  

	5.	Euromezzanine 4 FCPR, a French fonds commun de placement à risques, represented by its management company, Euromezzanine Conseil, a
société anonyme with a directorate and a supervisory board incorporated under the laws of France, with a share capital of 500,000 Euro, having its registered office at 11, rue Royale – 75008 Paris, registered with the
commercial and companies registry under the number 423 762 814 RCS Paris, itself represented by Mr. François-Carré, duly empowered for this purpose, 

  

	6.	Benelux Mezzanine, a limited company incorporated under the laws of Luxembourg, with a capital of 100,000 Euro, having its registered office at 22, Parc
d’activités Syrdall – L- 5365 Munsbach, Luxembourg, registered with the commercial and companies registry under the number B97335, by Mr. François Carré, duly empowered for this purpose, 

  

	7.	CM-CIC Mezzanine, a société par actions simplifiée, with a directorate and a supervisory board incorporated under the laws of France, with a
capital of 3,029,570 Euro, having its registered office at 4, rue Gaillon - 75002 Paris, registered with the commercial and companies registry under the number 452 714 124 RCS Paris, represented by Mr. Guillaume Rico, duly empowered for this
purpose, 

  
 The parties 1. to 7. are hereinafter collectively
referred to as the “Financial Sellers” and individually as a “Financial Seller” and shall each act individually and not jointly – individuellement et non solidairement. 
  

	8.	Mr Antoine Heral, born on 4 May 1964, in Boulogne Billancourt (92100), of French citizenship and residing at 9, rue Brémontier – 75017 Paris, and Mrs Corinne
Heral, born on 30 January 1964, in Villers Semeuse (08000), of French citizenship and residing at 9, rue Brémontier – 75017 Paris, represented by Mr Antoine Heral, 

  

 3 

	9.	Mr Philippe Chalvignac, born on 21 June 1953, in Saint Dizier (52100), of French citizenship and residing at 37, Domaine du Bois de la Garenne – 77760 Acnères la
Föret, and and Mrs Bernadette Chalvignac, born on 12 October 1953, in Saint Dizier (52100), of French citizenship and residing at 37, Domaine du Bois de la Garenne – 77760 Achères la Föret, represented by Mr Philippe
Chalvignac, 

  

	10.	Mr Jean Le Roux, born on 24 April 1963, in Versailles (78000), of French citizenship and residing at 17, rue du Four, Chaux – 78310 Coignières,

  

	11.	Mr Patrick Dehour, born on 22 April 1966, in Douai (59500), of French citizenship and residing at 9, rue doré ‘Résidence les Nymphéas’ Bat 9.1
appt. 36, 77000 MELUN, represented by Mr Antoine Heral, 

  

	12.	Mr Jean-Hubert Pougnet, born on 20 February 1965, in Paris (75), of French citizenship and residing at 6 rue Jean Moulin, 94300 Vincennes, 

  

	13.	Mr Christian Bera, born on 1st October
1964, in Rodez (12000), of French citizenship and residing at 9, allée de la Chardonnière – 91280 Saint Pierre du Peray, represented by Mr Antoine Heral, 

  

	14.	Mr André Bardon, born on 29 December 1956, in Corbeil Essonnes (91100), of French citizenship and residing at 2, rue Petit Rué – 91410 Dourdan, represented
by Mr Antoine Heral, 

  

	15.	Mr David Creusot, born on 10 January 1970, in Epinal (88000), of French citizenship and residing at 31, avenue des iris – 91600 Savigny sur Orge,

  

	16.	Mr Dieter Paulik, born on 31 January 1959 in Mettmann, of German citizenship and residing at Emmastraße 43, Bremen, Federal Republic of Germany, represented by Mr
Antoine Heral, 

  

	17.	Mrs Petra Richters, born on 11 September 1956, in Wedel, of German citizenship and residing at Am Herzogenkamp 30, Bremen, Federal Republic of Germany, represented by Mr
Antoine Heral, 

  

	18.	Mr Günter Gromotka, born on 2 July 1958, in Bremen, of German citizenship and residing at Schukampsweg 81, Bremen, Federal Republic of Germany, represented by Mr Antoine
Heral, 

  

	19.	Mr Matthias Ehmann, born on 30 September 1966, of German citizenship and residing at Ringstraße 35 Nordenham, Federal Republic of Germany, represented by Mr Antoine
Heral, 

  
 The parties 8. to 19. are hereinafter collectively
referred to as the “Minority Sellers” and individually as a “Minority Seller”, and shall act individually and not jointly- conjointement et non solidairement. 
  
 The parties 16. to 19. are hereinafter collectively referred to as the “German
Sellers” and individually as a “German Seller”, and shall act individually and not jointly- conjointement et non solidairement. 
  

The parties 1. to 19. are hereinafter collectively referred to as the “Sellers” and individually as a “Seller”, and shall act
individually and not jointly (conjointement et non solidairement). 
  
 ON THE FIRST PART 
  

 4 

 AND 
  

	20.	ResMed, a limited liability company incorporated under the laws of France, with a share-capital of €6,000,000, having its registered office, 2 rue Maurice Audibert,
69800 Saint Priest, registered with the Commercial and Companies Registry under the number 407 775 170 RCS Lyon, itself duly represented by its President, Mr. Alain Perseguers. 

  
 ResMed may substitute or add a company within the ResMed Group to
participate as a purchaser in the transaction, provided that details thereof are transmitted to the Financial Sellers’ Representative at least five (5) Business Days prior to the Date of Completion. 
  
 (hereinafter referred to as the “Purchaser”), 
  
 ON THE SECOND PART 
  
 (the parties of the first part and of the second part are hereinafter collectively referred
to as the “Parties” and individually as a “Party”), 
  
 RECITALS: 
  

	A.	The Sellers together will own at the Date of Completion (i) 3,037,973 ordinary shares (the “Shares”), (ii) 4,852,027 shares with warrants attached (actions
à bons de souscription d’actions ordinaires) (the “ABSA”), (iii) the 14,925,000 Convertible Bonds, (iv) the 50 Junior Mezzanine Bonds with Warrants J attached and (v) the 50 Senior Mezzanine Bonds with Warrants S
attached (together referred as the “Securities”), issued by FINANCIERE ACE SAS, a French socété par actions simplifiée with a share capital of 7,890,000 Euro, whose registered office is at 73,
avenue des Champs Elysées – 76008 Paris, registered with the commercial and companies registry under the number 451 683 536 RCS Paris (the “Company”). The Shares, the ABSA, the Warrants J, the Warrants S and the
Convertible Bonds represent 100% of the securities (valeurs mobilieres) issued by the Company and giving access immediately or in the future to the share capital of the Company and are allocated among the Sellers as described under
Schedule A. 

  

	B.	On the Date of Completion, the Company shall own directly and/or indirectly shareholdings in companies (hereinafter referred to as the “Subsidiaries”), a list of
which, together with the allocation of their respective share capital, is annexed in Schedule B. The Subsidiaries and the Company shall hereinafter be referred to as the “Group”. 

  

	C.	The Sellers gave access to the Purchaser to certain documentation and information. Information on the Group was also made available to the Purchaser in a data room organised in SJ
Berwin office, from 29 March to 31 March 2005, during the due diligence investigations conducted by the Purchaser and through a management presentation held on March 18, 2005 and interviews carried on with the management on the following subjects:
Intellectual property, quality, tax and finance. 

  

	D.	Following the management presentation, the interviews and the examination of the said documents, the Purchaser agreed to purchase the Securities and the Sellers agreed to sell them
under the terms and conditions provided below. 

  

 5 

 IT IS HEREBY AGREED AS FOLLOWS: 
  

	1.	DEFINITIONS 

  
 In this Agreement: 
  

			
	 “ABSA”
	  	has the meaning which is attributed to it paragraph A of the Recitals;
		
	 “Accounting Principles”
	  	means with respect to each of the Companies, the accounting principles and methods generally accepted in the country of incorporation of such Companies, as consistently applied by such
Companies for the preparation of the Accounts and as attached in Schedule C;
		
	 “Accounts”
	  	means the 30 June 2004 Accounts and the 31 December 2004 Accounts;
		
	 “Agent”
	  	means the CIC bank acting as the recipient for the Transfer of Price and any other wire transfer to be made under this agreement for the Sellers and for the Purchaser;
		
	 “Agreement”
	  	refers to this agreement, its Schedules and Exhibits;
		
	 “Business Day(s)”
	  	means a day not being a Saturday on which banks are open for general banking business in France;
		
	 “Clause”
	  	means each clause of the Agreement;
		
	 “Companies”
	  	means Financière ACE SAS, Biosciences SAS, OCA Beteiligung AG, SAIME SA, SCI PDG and Premium Medical SARL;
		
	 “Company”
	  	has the meaning which is attributed to it in paragraph A of the Recitals;
		
	 “Completion”
	  	means the completion of the Sale in accordance with the provisions of the Agreement;
		
	 “Consent and Approvals”
	  	means any notice, report or other filing required to be made, or any consent, registration, approval, permit or authorisation required to be obtained from any Governmental
Entity;
		
	 “Convertible Bonds”
	  	means the 14,295,000 convertible bonds issued by the Company following its extraordinary shareholder’s meeting dated 29 June 2004 having each a par value of 1 Euro;
		
	 “Date of Completion”
	  	19 May 2005;

  

 6 

			
	“EBIT 2005”	  	means the addition of (i) the consolidated earnings (résultat d’exploitation consolidé) of the Companies (but without taking into account OCA Beteiligung GmbH) for the
period 1 July 2004 to 30 June 2005 and (ii) the pro forma earnings (résuilatat d’exploitation) of Take Air Medical GmbH for the period 1 July 2004 to 30 June 2005 increased by an amount of 181,356 Euro. The EBIT 2005 will be
determined pursuant to Clause 12;
		
	“EBIT Surplus”	  	means the excess between the EBIT 2005 and 11,000,000 (eleven million) Euro;
		
	“Encumbrance(s)”	  	means any pledge, privilège (lien), mortgage, or other security interest;
		
	“Exhibit”	  	means an exhibit to Schedule 6;
		
	“Financial Seller(s)”	  	has the meaning which is attributed to it in the heading of the Agreement;
		
	“Financial Sellers’ Representative”	  	means Barclays Private Equity France, a société anonyme with a share capital of 24,000,000 Euro, having its registered office at 73, avenue des Champs Elysées –
75008 Paris, identified to the commercial and companies registry under the number 379 716 699 RCS Paris, whose functions are described in Clause 13.1;
		
	“German Sellers”	  	has the meaning which is attributed to it in the heading of the Agreement;
		
	“Governmental Authorisation”	  	means any licence, certificate of authority, permit, order, consent, approval, registration or authorisation or qualification granted by any Governmental Entity;
		
	“Governmental Entity”	  	means any public international, multinational or transnational organisation or any national, state, municipal or local governmental, legislative, administrative or other authority, ministry,
department, agency, office, organisation or stock exchange having jurisdiction over the Sellers or the Purchaser or the Companies or their respective properties or assets;
		
	“Group”	  	has the meaning which is attributed to it in the heading of the Agreement;
		
	“Junior Mezzanine Bonds”	  	means the 50 bonds with attached warrants issued by the Company following its extraordinary shareholder’s meeting dated 29 June 2004 for a par value of 100,000 (one hundred thousand) Euros,
each bond having 12,438 warrants J1, 8,409 warrants J2 and 25,870 warrants J3 attached;

  

 7 

			
	“Law(s)”	  	means any law, statute, regulation, rule, ordinance, decree, principle of civil, administrative or common law, government or administrative instruction and any treaty;
		
	“Minority Seller(s)”	  	has the meaning which is attributed to it in the heading of the Agreement;
		
	“Minority Sellers’ Representative”	  	means Mr. Antoine Heral whose functions are described in Clause 13.1;
		
	“Order”	  	means any governmental or non-governmental permit or licence or any judgment, injunction, order, rulings or other restriction of any court or Governmental Entity or tribunal;
		
	“Party” or “Parties”	  	has the meaning which is attributed to it in the heading of the Agreement;
		
	“Purchaser”	  	has the meaning which is attributed to it in the headings of the Agreement;
		
	“Reduction of Price”	  	has the meaning which is attributed to in Clause 9.1 of the Agreement,
		
	“Repayment of the Bonds Debenture”	  	has the meaning which is attributed to it in Clause 3.3.1 of the Agreement;
		
	“Sale”	  	has the meaning which is attributed to in Clause 2.1 of the Agreement;
		
	“Schedule”	  	means a schedule to the Agreement;
		
	“Securities”	  	has the meaning which is attributed to it in paragraph A of the Recitals;
		
	“Seller” or “Sellers”	  	has the meaning which is attributed to it in the heading of the Agreement;
		
	“Sellers’ Representatives”	  	means the Financial Sellers’ Representative together with the Minority Sellers’ Representative, pursuant to the terms of Clause 13.1;
		
	“Senior Mezzanine Bonds”	  	means the 50 bonds with attached warrants issued by the Company following its extraordinary shareholder’s meeting dated 29 June 2004, each bond having 3,507 warrants S1, 2,372 warrants S2
and 7,296 warrants S3 attached;
		
	“Shares”	  	has the meaning which is attributed to it in paragraph A of the Recitals;
		
	“Subsidiaries”	  	has the meaning which is attributed to it in paragraph B of the Recitals;

  

 8 

			
	“Tax” and “Taxes” and “Taxation”	  	shall include without limitation all income, transfer, withholding, value added, sales, use, wage, payroll, employment and real and personal property taxes and social security, unemployment and
other social contribution of my nature whatsoever; taxes measured by or imposed on capital or turnover; levies, imposts, duties, customs duties, licenses, and registration fees; other taxes imposed by any state, municipal, local or other
governmental authority or agency (hereafter “French Taxation authorities”), including assessments in the nature of taxes and including, without limitation, interest, penalties, fines, assessments and deficiencies relating to any tax or
taxes.
		
	30 June 2004 Accounts	  	means the audited consolidated financial statements of Biosciences SAS, SAME as at 30 June 2004 attached as Schedule C
		
	31 December 2004 Accounts	  	means the non-audited financial statements of the Company, Biosciences SAS, SAIME S.A., Premium Medical SARL and SCI PDG on a corporate (non consolidated) basis as at 31 December 2004, attached
as Schedule C
		
	“Transfer Price”	  	means the price to be paid by the Purchaser for the Transferred Securities as defined in Clause 3.1;
		
	“Transferred Securities”	  	has the meaning which is attributed to it in Clause 2.1 of the Agreement;
		
	“Warranties”	  	means the representations made and the warranties granted by the Sellers and set forth in Schedule 6;
		
	“Warrants J”	  	means the 12,438 warrants J1, 8,409 warrants J2 and 25,870 warrants J3;
		
	“Warrants S”	  	means the 3,507 warrants S1, 2,372 warrants S2 and 7,296 warrants S3.

  

	2.	SALE AND PURCHASE 

  

	2.1	Under the terms and conditions provided below, the Sellers hereby agree to sell to the Purchaser, and the Purchaser hereby agrees to buy from the Sellers, the 3,037,973 Shares, the
4,852,027 ABSA, the 2,335,850 Warrants J and the 658,750 Warrants S (collectively referred to as the “Transferred Securities”), allocated as described in Schedule 2.1 (the “Sale”). The Sale shall become
effective on the Date of Completion, subject to due fulfilment of the provisions contained in Clause 5.3. 

  

	2.2	The Transferred Securities shall be transferred with all rights to dividends attached and free from any Encumbrances or third party rights. 

  

 9 

	3.	TRANSFER PRICE 

  

	3.1	Amount of the Transfer Price 

  
 The price of the Transferred Securities (the “Transfer Price”) shall be equal to a global fixed and definitive amount of forty million
eighty five thousand two hundred (40,085,200) Euro. 
  

	3.2	Allocation and payment of the Transfer Price 

  

	 	3.2.1 	On the Date of Completion, the Purchaser shall pay the Transfer Price by wire transfer in favour of the Sellers into the Agent bank accounts, which details are attached in
Schedule 3.2.1. and shall be notified by the Sellers to the Purchaser at least five (5) Business Days before the Date of Completion. 

  

	 	3.2.2 	The allocation of the Transfer Price among the Transferred Securities and among the Sellers shall be made by the Agent according to the allocation set out in Schedule 3.2.2.

  

	 	3.2.3 	The Sellers agree that the execution of the wire transfer on the Agent’s account to pay the Transfer Price shall discharge the Purchaser of its obligations.

  

	3.3	Repayment of the Bonds Debenture and of the Company’s financial Indebtedness 

  

	 	3.3.1 	Upon Completion, all the Convertible Bonds, the Junior Mezzanine Bonds and the Senior Mezzanine Bonds shall be repaid by the Company, together with the accrued interests, for a
global amount (including interests and all other costs related thereto) equal to twenty-six million sixty-three thousand two hundred and twenty Euros and fifty-nine cents (26,063,220,59 Euro) (the “Repayment of the Bonds
Debentures”), allocated as described in Schedule 3.3.1, it being specified that the Purchaser shall cause the Company to carry out the Repayment of the Bonds Debentures. 

  

	 	3.3.2 	The Company’s financial indebtedness (including capitalised or accrued interest thereon), as defined in Schedule 3.3.1 (which includes the 900,000 Euro payable to the
German Sellers, as explained in the last paragraph of Clause 9.1 below), will be repaid on the Date of Completion (“the Company’s Financial Indebtedness”). 

  

	4.	CONDITIONS PRECEDENT - TERMINATION 

  
 The obligations of the Purchaser hereunder, are subject to each of the following conditions being satisfied on or prior to Completion (or, when
applicable, waived prior to Completion): 
  

	4.1	Conditions to obligations of Purchaser: 

  

	 	4.1.1 	The due performance in all respects of each of the material covenants and agreements of the Sellers to be performed on or prior to the Date of Completion; 

 

 10 

	 	4.1.2 	The acquisition by SAIME S.A. of the shares held by Mrs. Mireille Lagard in Premium Medical S.A.R.L for a maximum purchase price of fifty thousand (50,000) Euro; and

  

	 	4.1.3 	The absence of occurrence of a natural catastrophy or a flood or a fire causing the destruction of all or a significant part of the manufacturing sites of SAIME S.A. and Premum
Medical Sarl located respectively in Savigny-le-Temple and Lieusaint. 

  

	4.2	Termination 

  
 In the event of any of the conditions stipulated in Clauses 4.1.1 to 4.1.3 above is not fulfilled by the Date of Completion, the Purchaser may terminate
this Agreement on such Date of Completion, in which case this Agreement shall become null and void. In such a case, the Purchaser shall deliver within eight (8) Business Days all of the documents and other material received from the Sellers relating
to the transactions contemplated by this Agreement (or any other agreement referred to herein), whether obtained before or after the execution of this Agreement. 
  

	5.	COMPLETION 

  

	5.1	Date of Completion 

  
 Unless the Parties agree otherwise in writing, the Completion will take place on 19 May 2005 (the “Date of Completion”), in accordance with the
provisions of Clause 5.3. 
  

	5.2	Location of the Completion 

  
 The Completion will take place in the premises of SJ Berwin – 64 avenue Kléber – 75116 Paris, at the Date of Completion, unless the
Parties agree otherwise in writing. 
  

	5.3	Delivery of documents 

  

	 	5.3.1 	On the Date of Completion, the Sellers will deliver to the Purchaser: 

  

	 	(i)	The share transfer forms for the Transferred Securities duly executed by the Sellers in favour of the Purchaser or its nominees, as well as the share transfer forms for the shares
of the Subsidiaries not owned by the majority shareholder of any of the Subsidiaries; 

  

	 	(ii)	The updated share transfer register of the Group and the shareholders’ accounts thereof; 

  

	 	(iii)	The unconditional letters of resignation of the directors and/or the managing director of the Company and the Subsidiaries, whose names appear in Schedule 5.3.1(iii);

  

	 	(iv)	 A certified copy of the minutes of the meetings of the management bodies (organes sociaux) of the Group convening the shareholders, partners, representatives
of the employees and statutory auditors (commissaires aux comptes) of the Group at their general meeting at the Date of Completion in order to (a) take cognisance of the resignations aimed at (iii) of the 

  

 11 

	 	 
present Clause 5.3.1 and (b) appoint new directors or managing director whose names will be communicated by the Purchaser at the latest five (5) days before
the Date of Completion; 

  

	 	(v)	A certificate signed by all the Sellers’ Representatives confirming, in accordance with Clause 6 hereof, that the Representations and Warranties contained in Schedule 6
remain true and accurate as at the Date of Completion; 

  

	 	(vi)	A certified copy of the minutes of the supervisory board of the Company and of the relevant corporate bodies of the Subsidiaries approving the Purchaser and/or its nominees as new
shareholders of the Company; 

  

	 	(vii)	A termination agreement signed by all parties to the shareholders’ agreement and to all related agreements dated 29 June 2004, as amended, stating that such agreement and the
related agreements have been terminated in advance and that the Parties to the shareholders’ agreement and to the related agreements have waived all rights they may have had in relation to the Sale of the Securities and a waiver by the relevant
Sellers of any sum alleged due under Clause 3.3; 

  

	 	(viii)	The updated Minute books of the Group (Registre des Proces-verbaux); 

  

	 	(ix)	A transfer agreement in six original copies for the share held by Mr. Antoine Heral in SCI P.D.G. (347 623 027 RCS Melun); 

  

	 	(x)	A transfer agreement in six original copies providing for the sale to SAIME S.A. of the balance of the shares in Premium Medical S.A.R.L.(383 610 524 RCS Melun) owned by Mrs.
Mireille Lagard; 

  

	 	(xi)	A duly executed employment agreement between the Purchaser and Mr. Antoine Héral, as well as an amended employment agreement between SAIME S.A. and Philippe Chalvignac
(salary increase of at least 300 euro by month, car leasing up to 15,000 euro per year); 

  

	 	(xii)	From one to three duly executed bank(s) guarantee(s) (caution bancaire solidaire) organised by the Minority Sellers and delivered by a first-ranking bank for a global amount
of one million (1,000,000) Euro, pursuant to Clause 9.10; and 

  

	 	(xiii)	A waiver letter written by the Agent confirming that all the requirements set out in Clause 3.3. have been duly executed on the Completion Date and that all corresponding
Encumbrances have been discharged. 

  

	 	5.3.2	On the Date of Completion, the Purchaser: 

  

	 	(i)	shall pay the Transfer Price for the Transferred Securities in accordance with Clause 3.2; and 

  

	 	(ii)	shall cause the Company to proceed with the Repayment of the Bonds Debentures and of the Company’s Financial Indebtness in accordance with Clause 3.3. 

 

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	6.	REPRESENTATIONS AND WARRANTIES OF THE SELLERS 

  
 The Sellers make the representations and warranties set forth in Schedule 6 in favour of the Purchaser at the date of this Agreement and will
repeat them on the Date of Completion (see Clause 5.3.1 (v) above). Each of the Warranties is true and accurate (except that Warranties made as of a specified date need only be true and correct at such date) and is not misleading. 
  

	7.	MANAGEMENT OF THE GROUP BETWEEN THE DATE OF THIS AGREEMENT AND THE DATE OF COMPLETION 

  

	7.1	The Sellers represent and warrant that between the date of this Agreement and the Date of Completion, without prejudice to what is set out in Schedule 7.1(a):

  

	 	(i)	no dividend or interim dividend will be voted or distributed by the Group and the Group will not purchase or write-down any of his shares or other securities;

  

	 	(ii)	the Group will be managed pursuant to the same rules and under the same conditions as in the past (en bon père de famille) and no acquisition or sale of assets will be
completed other than in the ordinary course of business; 

  

	 	(iii)	the Group will not sell, transfer or relinquish any assets, except in the context of their normal day-to-day operations consistent with past practices, and will take all reasonable
measures to maintain and protect their immovable assets (actifs immobilisés); 

  

	 	(iv)	the Group will not agree any amendment to the main agreements entered into with clients, suppliers and other business relations, and will not substantially amend the terms of the
main existing obligations; 

  

	 	(v)	no significant changes will be made to the salary policy, individual or collective salary increases, benefits in kind, bonuses or other advantages of any nature whatsoever granted
to the employees of the Group, except in the context of his day-to-day management consistent with his past practice; 

  

	 	(vi)	the Group will not pay any exceptional remuneration to their corporate officers; 

  

	 	(vii)	the Group will not engage in any investment outside the investment plan; and 

  

	 	(viii)	The Group will manage its cash pursuant to his usual practice without accelerating the collection of receivables or deferring the payment of the debt owed by suppliers, outside the
ordinary course of business. 

  

	7.2	The Sellers will inform the Purchaser about the resignation and/or the dismissal of employees having an annual remuneration exceeding 40,000 Euro. 

  

 13 

	8.	REPRESENTATIONS OF THE PURCHASER 

  
 The Purchaser represents and warrants that: 
  

	8.1	it has all of the powers and authorisations necessary for the purpose of entering into this Agreement and the individual signatories in its name and on its behalf are duly
authorised to act on behalf of the Purchaser; 

  

	8.2	no authorisations or Governmental Authorisation from any Governmental Entity (inter alia, French, European or American governmental authorities), including any authorisation
relating to foreign investment in France, is necessary for the purpose of entering into this Agreement; 

  

	8.3	the execution of this Agreement by the Purchaser does not constitute a breach of (i) any contractual obligation, (ii) any court or arbitral decision or (iii) any decision from a
public body or authority; 

  

	8.4	the execution of this Agreement by the Purchaser will represent a valid and enforceable obligation on the Purchaser in accordance with its terms; and 

  

	8.5	it has access to sufficient funds in order to complete the Sale. 

  

	9.	REDUCTION OF THE PURCHASE PRICE 

  

	9.1	Reduction of Price 

  

	9.1.1	Each of the Sellers acting individually and not jointly (conjointement et non solidairement), undertakes to indemnify the Purchaser by way of reduction in the Transfer Price
(the “Reduction of Price”) for 100% of the amount of any loss, including reasonable legal fees and expenses, suffered or incurred by the Purchaser or the Group and resulting directly from a breach of the Warranties set out in
Schedule 6-A, or as a result of the breach of any of its covenants in the Agreement, insofar as the said loss stems from a fact or event prior to the Date of Completion (the “Loss”), and only in accordance with the allocation
set forth in Clause 9.2 below. 

  

	9.1.2	Each of the Minority Sellers acting individually and not jointly (conjointement et non solidairement), undertakes to indemnify the Purchaser by way of reduction in the
Transfer Price (the “Reduction of Price”) for 100% of the amount of any loss, including reasonable legal fees and expenses, suffered or incurred by the Purchaser or the Group and resulting directly from a breach of the Warranties
set out in Schedule 6-B, or as a result of the breach of any of its covenants in the Agreement, insofar as the said loss stems from a fact or event prior to the Date of Completion (the “Loss”), and only in accordance with the
allocation set forth in Clause 9.2 below. 

  
 However, the Purchaser acknowledges that the Sellers do not represent nor give any warranty whatsoever (and consequently, shall not be deemed to pay to the Purchaser any Reduction of Price) for any Loss relating to Take Air Medical GmbH
(except as regards the representations made under paragraph 15 of Schedule 6), provided that the Group can still benefit from the representations and warranties given by the former owners of Take Air Medical GmbH, it being confirmed by the
Sellers that these representation and warranties do not provide for any change of control clause. 
  

 14 

 The German Sellers also agree that the Sale constitutes an indirect change of control of SAIME S.A., thus
triggering the change of control clause set forth in the abovementioned purchase agreement of 18 February 2005 and causing SAIME to pay to the German Sellers, on the Date of Completion, an amount of nine hundred thousand (900,000) Euro as per
article 1.3.4 of said purchase agreement of 18 February 2005. 
  

	9.2	Allocation 

  

	 	9.2.1	  The Financial Sellers and the Minority Sellers, each acting individually and not jointly (conjointement et non solidairement) shall compensate the Purchaser for the
Loss derived from of a breach of the Warranties made by the Sellers in Part A of Schedule 6 to the Purchaser
according to the allocation set out in Schedule 9.2.1. 

  

	 	9.2.2	  The Minority Sellers acting individually and not jointly (conjointement et non solidairement) shall compensate the Purchaser for the Loss derived from a breach
of the Warranties made by the Minority Sellers in Part B of Schedule 6 to the Purchaser. The Minority Sellers will allocate between themselves the payment made to the Purchaser according to the allocation set out in Schedule 9.2.2. For
the avoidance of doubt, the Financials Sellers shall not be liable for any Reduction of Price for a breach of the warranties made by the Minority Sellers in Part B of Schedule 6. 

  

	9.3	Time Limits 

  
 Any claim for indemnification made pursuant to Clause 9.1 (a “Claim”) shall be made by notice in writing to the Sellers concerned, within
the following time limits; 
  

	 	•	 	Claims relating to taxation (except “stamp duty” up to the 31 december 2008), social security, customs or pertaining to the criminal liability of the Companies may
be made up to three months after the expiry of relevant statute of limitation. 

  

	 	•	 	Any other Claims are to be made within a period of two (2) years as from the Date of Completion. 

  

	9.4	Calculation 

  

	 	9.4.1 	The Reduction of Price owed under the terms of this clause shall be calculated by taking into account: 

  

	 	(i)	the amount of the immediate tax savings made by the Company or the Group, tax savings meaning the reduction in the corporation tax liability of the Company of the Group in respect
of the financial year during which any Loss for which a Claim has been made under the terms hereof is incurred; 

  

	 	(ii)	any indemnification paid under the insurance policies received by the Group (or, if higher, the indemnification that the Group would have received if the Company had maintained the
same insurance coverage as the date hereof) as damages for which a Claim has been made under the terms hereof; 

  

	 	(iii)	the reversal of any provision registered in the Accounts insofar such reversal of provision effectively represents a decrease in liability; 

  

 15 

	 	(iv)	any indemnification net of Tax received for a receivable previously considered to be irrecoverable in whole or in part; 

  

	 	9.4.2 	No Reduction of Price shall be due by the Sellers in case of a breach of the Warranties insofar as such a breach is the result of a tax provision which came into force after the
date hereof and has a retrospective effect. 

  

	 	9.4.3 	No Reduction of Price shall be due with respect to any reassessment made by the French Taxation authorities, the sole consequence of which is to shift a deductible or a taxable
element from one fiscal year to another of from the Company or the Subsidiaries, provided, that with respect to any such reassessment, the Sellers shall nevertheless be liable to the extent of any late payment penalties or interest.

  

	 	9.4.4 	If a Claim is based on deferred liabilities, no indemnification shall be due as long as the said liabilities are not due and paid. 

  

	 	9.4.5 	No indemnification shall be due by the Sellers insofar as the Loss on which the indemnification is based is exclusively ascribable to an act or an omission from the Purchaser and/or
one of the Group after the Date of Completion, or a change in the Accounting Principles after the said date. 

  

	 	9.4.6 	As a general matter, the Purchaser and the Group shall use their best efforts to mitigate the amount of the Losses. 

  

	 	9.4.7 	For the purpose of calculating the amount of any Loss, only the Loss actually sustained by the Purchaser or the Group shall be taken into account, to the exclusion of any price,
earnings or similar multiplier or valuation factor. 

  

	9.5	Limitation of the Reduction of Price 

  

	 	9.5.1 	No Reduction of Price shall be due with respect to any individual Claim (or series of related Claims having the same cause or origin) for an amount of less than 10,000 € (ten
thousands Euro), it being agreed that the amount of any Claims below such de minimis amount shall not be taken into account for the purposes of the threshold set forth in Clause 9.5.2. 

  

	 	9.5.2 	No Reduction of Price shall be due by the Sellers until the aggregate amount of Reduction of Price owed by them exceeds (after all deductions pursuant to this Clause 9) 100,000
€ (one hundred thousands Euro), increased by the amount of the EBIT Surplus in the event such EBIT Surplus arises (the “Threshold”), and when this overall Threshold is exceeded, the Reduction of Price shall then become due for
the full aggregate, amounts as from the first euro. 

  

	 	9.5.3 	The total Reduction of Price which may be due by each of the Sellers to the Purchaser or the Group shall not exceed ten percent (10%) of the Transfer Price effectively paid to each
Seller, such amounts being set forth in Schedule 3.2.2.

  

	9.6	Procedure and Payment 

  

	 	9.6.1 	Implementation of the Procedure 

  

	 	(a)	 The Purchaser shall make a Claim against the Sellers concerned (i.e. either Financial Sellers and Minority Sellers or only Minority Sellers) as 

  

 16 

	 	 
soon as (and in any event no later than twenty (20) Business Days after) it becomes aware of any event, fact or circumstance which could result in
indemnification under this Clause 9, provided, however, that in the event the circumstances so require (e.g., emergency proceeding, etc.) the Claim shall be sent in due time to permit the Sellers to participate in the defence of
such Claim. 

  
 Failure by the Purchaser to
comply with the notice period applicable shall have no consequences to the extent that such failure has not caused the Losses for which the Sellers are obliged to pay to be greater than they would have been, had the Purchaser given timely notice.

  
 Any such Claim shall be validly effected if notified to the
Sellers’ Representative for the Sellers, to the Financial Sellers Representative for the Financial Sellers and to the Minority Sellers’ Representative for the Minority Sellers. 
  

	 	(b)	Each Claim shall state the amount of Reduction of Price Amount sought from the Sellers, shall state the specific grounds therefor and shall include all evidence necessary to
demonstrate the soundness thereof. 

  

	 	(c)	The Sellers, or their counsel, shall be granted reasonable access to relevant books and other documents and to the personnel and the premises of the Group concerning the Claim, and
such books and documents shall be made available at the registered office of the Group or any other place mutually agreed upon, subject to reasonable notice, and for a reasonable period. The Sellers shall have the right to make copies of such books
and documents. 

  

	 	9.6.2 	Disputed Claims 

  
 In the event that a Claim is disputed by the Sellers (in whole or in part): 
  

	 	(a)	the Purchaser and the Sellers shall endeavour to reach agreement in respect of the disputed items pertaining to such Claim within thirty (30) Business Days after the date on
which the corresponding Claim notice was received by the Sellers; or 

  

	 	(b)	in the absence of such agreement within the period referred to in the immediately preceding Clause, either Party may refer the matter to the tribunal provided for in Clause 14.2.,
being specified that if the Claim is not a third party claim (as specified in Clause 9.6.3 below), the Purchaser or the Group did not refer the matter within six (6) months to the tribunal, the Claim shall be deemed to be definitely abandoned and
the related Reduction of Price claimed lost for the Purchaser or the Group. 

  

	 	9.6.3 	Third Party Claims 

  

	 	(a)	 In the event that, at any time after Completion (but prior to expiration of the time period referred to in Clause 9.3 above), a Claim is made by the Purchaser on
the basis of a third party claim (which includes claims from the French Taxation authorities) against any of the Group and/or the Purchaser (including any notification of a tax or social security audit) the Sellers shall have the right, at their
option, to assume sole control of, at their own expense, the defence of such third party claim and in particular 

  

 17 

	 	 
appoint counsel in charge of such defence (in which case such counsel shall have sole power to direct and control such defence).

  

	 	(b)	The Purchaser shall, and shall procure that the Group shall, cooperate with such counsel and provide all reasonable assistance to enable it to assess the third party claim in
question, In particular, the Purchaser shall, and shall procure that the Group shall, send it a copy of all relevant correspondence and documents and provide it promptly with all information reasonably requested by it in relation to such third party
claim. 

  

	 	(c)	The Purchaser shall ensure that, in the defence of such third party claim, the Group shall present any arguments, take any actions, instigate, continue or cease any arbitration or
court proceedings, or reach any settlement and take any other such action as reasonably requested by the Sellers or the counsel appointed by them. 

  

	 	(d)	In any event (irrespective of whether the Sellers have appointed counsel to defend such third party claim), the Purchaser shall ensure that the Companies do not settle, admit
liability or withdraw any claim without the prior written consent of the Sellers (which consent shall not be unreasonably withheld). 

  

	9.7	Payment Obligation 

  
 The Claim shall be payable at the earliest occurrence of one of the following events; 
  

	 	(a)	mutual agreement between the Sellers and the Purchaser on the existence and amount of a Claim; or 

  

	 	(b)	the handing down of a judgment or other jurisdictional decision (which is not subject to appeal or for which the period of appeal has expired) passed against the Sellers if they
disagreed with the Purchaser on the existence and/or amount of a Claim; or 

  

	 	(c)	without prejudice to the other provisions of this Clause 9.7, the completion of a final settlement resolving the third party claim. 

  
 such payment date being the “Indemnification Date”,

  
 On the occurrence of the Indemnification Date, the Purchaser
shall send a formal notice (mise en demeure) to the Sellers Representative to pay the Reduction of Price. The Sellers shall then have ten (10) days from reception of the notice to pay the Reduction of Price the Purchaser, such
Reduction of Price bearing interest at an annually compounded interest rate of five (5) % from the expiry of the ten (10) day period from reception of such notice. 
  

	9.8	Limitations 

  

	 	9.8.1 	Effective Loss 

  
 A Loss shall only be indemnifiable by the Sellers to the extent (and only to the extent) such Loss has effectively been sustained or suffered by the
Purchaser or any of the Group. In particular, if a Claim is based upon a liability which is contingent only, no indemnification shall be due unless and until such loss is sustained or suffered. 
  

 18 

	 	9.8.2	 Opportunity to cure 

  
 In the event that any event, fact or circumstance giving rise to a Claim is curable, in whole or in part, the Purchaser shall give, or cause the Group to
give, the Sellers a reasonable opportunity to cure the same. 
  

	9.9	It is expressly agreed between the Sellers and the Purchaser that, with the exception of restructuring measures within the ResMed Group, the Sellers’ undertaking under Clause 9
shall be automatically terminated in the event of a change of control, direct or indirect, of either (i) the Company or (ii) the Purchaser (within the meaning of article L.233-3 of the French Commercial Code) at any time after the Date of Completion
and the Sellers shall be released from their obligation to compensate any Loss excepted any Loss relating to any pending Claim on the date of such change of control. 

  

	9.10	As a partial guarantee for their obligations under this Clause 9, the Minority Sellers shall deliver from one (to three) bank(s) guarantee(s) (cautionnement solidaire) to the
Purchaser on the Date of Completion issued by a first-ranking bank for a global amount of one million (1,000,000) Euro until 31 December 2007, by which date the bank(s) guarantee(s) shall terminate save for pending Claims notified pursuant to this
Clause 9 prior to said date. 

  
 The bank(s)
guarantee(s) shall be allocated among the Minority Sellers as specified in Schedule 9.2.2: 
  
 The bank(s) guarantee(s) shall provide that the Purchaser will be entitled to call upon such guarantee following the occurrence of one of the events
mentioned in Clause 9 of this Agreement. 
  
 Each of the Minority
Sellers will be entitled to substitute to its share of the bank(s) guarantee(s) a pledge over Resmed Inc. shares which such Minority Seller would have purchased after the date of this Agreement, but only to the extent that the amount of the
substituted guarantee be at least equivalent to the value of the initial guarantee at the time of the pledge. 
  

	10.	RESTRICTIVE COVENANT 

  
 The Minority Sellers undertake that they shall not (and shall procure that the Sellers’ affiliates will not), either alone or in conjunction with or
on behalf of any other person, for a period of two (2) full and consecutive years after Completion, in France, do any of the following: 
  

	 	10.1.1	 be directly or indirectly engaged or otherwise interested in any form or manner whatsoever in carrying on a business which competes with the business activities of any of the
Group (other than as an employee of the Purchaser or of a company controlling, or controlled by, the Purchaser) as such activities are carried out at the Date of Completion, i.e. the conception, manufacturing and marketing of respiratory machines to
be used as a homecare device or in hospital; 

  

	 	10.1.2	 solicit the custom of any client to whom any of the Group has sold (or proposed to sell) competing goods or services in the course of its business activities, in order to
propose similar goods or services; or 

  

 19 

	 	10.1.3	 directly or indirectly solicit or entice an employee away from the employment of any of the Group. 

  
 It is specifically agreed that this undertaking will automatically cease to apply to a Minority Seller who has been
dismissed without cause (licenciement sans cause réelle et sérieuse) or been laid off ( licenciement économique) from the Group within the two-year period defined above. 
  

	11.	NOTICES 

  
 The notices and communications provided for herein shall be sent to the Parties at the following addresses: 
  

	 	(i)	for the Purchaser: to the address which appears at the head of the Agreement, c/o ResMed Inc. attention: General Counsel, with a copy to Herbert Smith, 20 rue Quentin Bauchart,
75008 Paris; 

  

	 	(ii)	for the Sellers: in accordance with Clause 13 of the Agreement, to the Financial Sellers’ and the Minority Sellers’ Representatives at the address specified in Clause 1,
with a copy to SJ Berwin, 64 avenue Kléber, 75116 Paris and White & Case, 11 boulevard de la Madeleine 75008 Paris. 

  
 Any notice or communication must be delivered by hand against a receipt dated and signed by the recipient or sent by registered letter with
acknowledgement of receipt and shall be deemed to have been received on the date stamped by the recipient on the receipt if it is delivered by hand or the date of first presentation if it is sent by registered letter. 
  

	12.	CLOSING OF THE 2005 ACCOUNTS 

  
 Solely in order to determine and establish the EBIT Surplus, the Purchaser shall draw up the consolidated accounts of the Group on a pro forma basis as at
30 June 2005. 
  
 These accounts shall be drawn up using the same
principles and methods as those used since the creation of the Group and shall respect the Accounting Principles as consistently applied in the past by the Group, namely in drawing up the Accounts of the Group as of 30 June 2004. 
  

	13.	POWER OF ATTORNEY 

  

	13.1	The Financial Sellers appoint Barclays Private Equity France SA (the “Financial Sellers’ Representative”), and the Minority Sellers appoint Mr. Antoine Heral
(the “Minority Sellers’ Representative”), as their respective agent in order to act in their name and on their behalf for the purposes of the Agreement and to negotiate, receive and sign all documents to this effect and to
negotiate and sign all amendments to the Agreement, and more generally to execute or receive all notifications for the purposes of the Agreement. 

  

	13.2	Except in case of gross negligence (faute lourde) or wilful misconduct (faute intentionnelle), the Sellers shall have no legal recourse against the
Sellers’ Representatives in respect of the performance of their duties. 

  

 20 

	14.	MISCELLANEOUS 

  

	14.1	Severability 

  
 The nullity of any one of the provisions hereof, for any reason whatsoever, shall not affect the validity of the other provisions of the Agreement, the
Parties undertaking in such a case to consult with each other in order to substitute the void provision with a provision of equivalent effect. 
  

	14.2	Applicable law and jurisdiction 

  
 The Agreement shall be governed by French law and any dispute relating thereto shall fall within the exclusive jurisdiction of the competent Tribunal
de Commerce. 
  

	14.3	Confidentiality 

  
 The Parties undertake to consult each other prior to the circulation of any press release or announcement concerning the transactions referred to herein.

  

	14.4	Taxes, charges and registration costs 

  
 The taxes, charges and registration duty resulting from the Agreement, shall be borne by the Purchaser. 
  
 Each Party shall bear the expenses, fees and other costs of its own advisors
and counsels, except as otherwise provided for in the Agreement. 
  

	14.5	Entire agreement 

  
 The Agreement constitutes the complete and sole agreement of the Parties. The Agreement also entails the cancellation of any document which may have
applied between the Parties prior to the date hereof. 
  

	14.6	Number of copies 

  
 The Parties expressly agree to limit the number of originals of the Agreement and its Schedules to five (5), these originals being kept as follows:

  

	 	•	 	One (1) for BPEF on behalf of (i) the three FCPR Barclays Private Equity A, B and C 2004, (ii) Capvent, (iii) PVLP and (iv) PVN; 

  

	 	•	 	One (1) for Euromezzanine 4 FCPR on behalf of (i) itself and (ii) Benelux Mezzanine; 

  

	 	•	 	One (1) for CM-CIC Mezzanine; 

  

	 	•	 	One (1) for Monsieur Antoine Heral (acting for himself and the Minority Sellers, such Minority Sellers waiving their right to article 1325 of the French Civil Code); and

  

	 	•	 	One (1) for the Purchaser. 

  
 Executed in Paris, 
  
 On 4 May 2005 
  

 21 

	 	•	 	Barclays Private Equity FCPR A, 

	 	•	 	Barclays Private Equity FCPR B, 

	 	•	 	Barclays Private Equity FCPR C,  

  
 All acting by Barclays Private Equity France SAS 
  

	 	•	 	Barclays Private Equity PVLP Limited Partnership 

 Acting by Barclays PVLP Partner Limited 
  

	 	•	 	Parallel Ventures Nominees N°2 Ltd 

  
 All such Parties hereby represented by Mr Laurent Chauvois 
  

	
	
	 /s/ Laurent Chauvois

  

									
	CAPVENT	 	 	 	 
				
	By:	 	 Mrs. Sophie Rouland
	 	 	 	 /s/ Sophie Rouland

  

									
	 Mr. Antoine Héral
  
 Acting for himself
 as well as in the name and on behalf of:
  
 •      Mrs. Corinne Héral
 •      Mr. Patrick Dehour
 •      Mr. Christian Bera
 •      Mr. André Bardon
 •      Mr. Dieter Paulik
 •      Mrs. Petra Richters
 •      Mr. Günter Gromotka
 •      Mr. Matthias Ehmann
	 	 	 	 /s/ Antoine Héral

	 	 	 

  

									
	 Mr. Philippe Chavignac
  
 Acting for himself
 as well as in the
name and on behalf of Mrs. Bernadette Chavilgnac
	 	 	 	 /s/ Philippe Chavignac

	 	 	 

  

									
	Mr. Jean-Hubert Pougnet	 	 	 	 /s/ Jean-Hubert Pougnet

  

									
	Mr. Jean Le Roux	 	 	 	 /s/ Jean Le Roux

  

									
	Mr. David Creusot	 	 	 	 /s/ David Creusot

  

 22 

	 	•	 	Euromezzanine 4 FCPR 

 Acting
by Euromezzanine Conseil SAS 
  

	 	•	 	Benelux Mezzanine 

  
 All such Parties hereby represented by Mr. François Carré 
  

	
	
	 /s/ François Carré

  

									
	CM-CIC Mezzanine	 	 	 	 
				
	By:	 	 Mr. Guillaume Rico
	 	 	 	 /s/ Guillaume Rico

  

									
	RESMED SAS	 	 	 	 
				
	By:	 	 Mr. Alain Perseguers
	 	 	 	 /s/ Alain Perseguers

  

 23 

 SECURITIES SALE AGREEMENT 
  
 FINANCIERE ACE S.A.S 
  
 SCHEDULES 

 INDEX 
  

					
	 SCHEDULES

	  	 NAME

	  	INDEX

	SCHEDULE A	  	ALLOCATION OF THE SECURITIES OF THE COMPANY	  	1.
			
	SCHEDULE B	  	LIST OF THE SUBSIDIARIES AND THEIR RESPECTIVE SHARE CAPITAL	  	2.
			
	SCHEDULE C	  	ACCOUNTING PRINCIPLES AND ACCOUNTS	  	3.
			
	SCHEDULE 2.1	  	ALLOCATION OF TRANSFERRED SECURITIES	  	4.
			
	SCHEDULE 3.2.1	  	DETAILS OF THE AGENT BANK ACCOUNTS	  	5.
			
	SCHEDULE 3.2.2	  	ALLOCATION OF THE TRANSFER PRICE TO BE PAID BY THE PURCHASER	  	6.
			
	SCHEDULE 3.3.1	  	REPAYMENT OF THE BONDS DEBENTURES AND OF COMPANY FINANCIAL INDEBTEDNESS	  	7.
			
	SCHEDULE 5.3.1(iii)	  	NAMES OF THE DIRECTORS OF THE COMPANY AND THE SUBSIDIARIES RESIGNING	  	8.
			
	SCHEDULE 6	  	REPRESENTATIONS AND WARRANTIES	  	9.
			
	SCHEDULE 7.1 (a)	  	MANAGEMENT OF THE GROUP BETWEEN THE DATE OF THIS AGREEMENT AND THE DATE OF COMPLETION	  	10.
			
	SCHEDULE 9.2.1	  	ALLOCATION AMONG THE SELLERS	  	11.
			
	SCHEDULE 9.2.2	  	ALLOCATION AMONG THE MINORITY SELLERS	  	12.Stock Incentive Plan

 Exhibit 10.33 
  
 CONTANGO OIL & GAS COMPANY 
  
 1999 STOCK INCENTIVE PLAN 
  
 1. PURPOSE 
  
 The purpose of the Contango Oil & Gas Company. 1999 Stock Incentive Plan (the “Plan”) is to further the interests of Contango Oil & Gas
Company (the “Company”) by strengthening the desire of Employees to continue their employment with the Company and by securing other benefits for the Company through stock options and restricted stock awards to be granted hereunder.
Options granted under the Plan are either options intending to qualify as “incentive stock options” within the meaning of Section 422 of the Code or non-qualified stock options. 
  
 2. DEFINITIONS 
  
 Whenever used herein the following terms shall have the following meanings, respectively: 
  
 (a) “Act” shall mean the Securities Act of 1933, as amended. 
  
 (b) “Board” shall mean the Board of Directors of the Company.

  
 (c) “Code” shall mean the Internal Revenue Code of
1986, as amended. 
  
 (d) “Committee” shall mean the
committee which shall be selected and designated by the Board as the “Compensation Committee” and which shall consist solely of non-employee directors, or if no committee has been appointed, reference to “Committee” shall be
deemed to refer to the Board. 
  
 (e) “Common Stock”
shall mean the Company’s Common Stock as described in the Company’s Articles of Incorporation. 
  
 (f) “Company” shall mean Contango Oil & Gas, Inc., a Nevada corporation. 
  
 (g) “Employee” shall mean in connection with Non-Qualified Options, the Company’s Non-Qualified Stock Option
Agreement and Restricted Stock Awards (i) any director, officer, actual employee or independent contractor of the Company or any Subsidiary or Parent of the Company, (ii) any individual in an effort to induce said individual to become and remain an
employee or independent contractor of the Company, or (iii) any other individual or entity the Committee may deem appropriate to receive a Non-Qualified Option (so long as the 

  

 -1- 

 
grant of the Non-Qualified Option furthers a specific Company purpose and the Committee deems it in the best interests of the Company to grant the
Non-Qualified Option to said individual or entity). In connection with Incentive Options and the Company’s Incentive Stock Option Agreement, the term “Employee” shall include only actual employees of the Company or of any Subsidiary
or Parent of the Company. 
  
 (h) “Fair Market Value Per
Share” of the Common Stock shall mean, if the Common Stock is publicly traded, the mean between the highest and lowest quoted selling prices of the Common Stock on the date of the grant of the Option or, if not available, the mean between the
bona fide bid and asked prices of the Common Stock on the date of the grant of the Option or RSA. In any situation not covered above or if there were no sales on the date of the grant of an Option or RSA, the Fair Market Value Per Share shall be
determined by the Committee in accordance with Section 20.2031-2 of the Federal Estate Tax Regulations. Notwithstanding the foregoing, if the Option or RSA is granted in connection with a public offering of the Company’s Common Stock, the Fair
Market Value Per Share shall be at the price at which the Common Stock is sold in such public offering. 
  
 (i) “Incentive Option” shall mean an Option granted under the Plan which is designated as and is intended to qualify as an incentive stock
option within the meaning of Section 422 of the Code. 
  
 (j)
“Non-Qualified Option” shall mean an Option granted under the Plan which is designated as a non-qualified stock option and which does not qualify as an incentive stock option within the meaning of Section 422 of the Code. 
  
 (k) “Option” shall mean an Incentive Option, as defined in Section
2(i) hereof, or a Non-Qualified Option, as defined in Section 2(k) hereof. 
  
 (l) “Optionee” shall mean any Employee who has been granted an Incentive Option to purchase shares of Common Stock under the Plan and shall mean any person (including an Employee) who has been granted a
Non-Qualified Option under the Plan. 
  
 (m) “Parent”
shall have the meaning set forth in Section 424(e) of the Code. 
  
 (n) “Participant” means any individual to whom an RSA has been granted by the Committee under this Plan. 
  
 (o) “Permanent Disability” shall mean termination of employment with the Company or with the consent of the Company by reason of permanent and
total disability within the meaning of Section 22(e)(3) of the Code. 
  
 (p) “Plan” shall mean this 1999 Stock Incentive Plan. 
  

 -2- 

 (q) “Public Offering” shall mean a firm commitment underwritten public offering pursuant to an
effective registration statement under the Act covering the offer and sale of the Common Stock. 
  
 (r) “Restricted Stock Award” means any form of grant of Restricted Stock under the Plan. 
  
 (s) “Restricted Stock” means shares of Common Stock issued pursuant
to an RSA which are subject to forfeiture provisions or such other conditions as may be determined by the Committee and specified in the Restricted Stock Award Agreement. 
  
 (t) “Restricted Stock Award Agreement” means a written agreement setting forth the terms of an RSA. 
  
 (u) “RSA” means a Restricted Stock Award. 
  
 (v) “Subsidiary” shall have the meaning set forth in Section 424(f)
of the Code. 
  
 3. ADMINISTRATION 
  
 (a) The Plan shall be administered either (i) by the Board, or (ii) in the
discretion of the Board, by the Committee appointed by the Board. The Board may from time to time appoint members of the Committee in substitution for or in addition to members previously appointed and may fill vacancies. 
  
 (b) Any action of the Committee with respect to the administration of the
Plan shall be taken by majority vote or by written consent of a majority of its members. 
  
 (c) Subject to the provisions of the Plan, the Committee or the Board shall have the authority to construe and interpret the Plan, to define the terms used therein, to determine the time or times an Option or RSA may
be issued or exercised and the number of shares which may be exercised at any one time, to prescribe, amend and rescind rules and regulations relating to the Plan, to approve and determine the duration of leaves of absence which may be granted to
participants without constituting a termination of their employment for purposes of the Plan, and to make all other determinations necessary or advisable for the administration of the Plan. All determinations and interpretations made by the
Committee shall be conclusive and binding on all Employees and on their guardians, legal representatives and beneficiaries. 
  
 (d) The Company will indemnify and hold harmless the members of the Board and the Committee from and against any and all liabilities, costs and expenses
incurred by such persons as a result of any act, or omission to act, in connection with the performance of such persons’ duties, responsibilities and obligations under the Plan, other than such liabilities, costs and expenses as may result from
the negligence, gross negligence, bad faith, willful misconduct and/or criminal acts of such person. 
  

 -3- 

 (e) The Company will provide financial information to the Optionees and Participants on the same basis as
the Company provides such information to holders of Common Stock, which in any event shall include dissemination of the Company’s financial statements at least annually. 
  
 4. NUMBER OF SHARES SUBJECT TO PLAN 
  
 The shares to be offered under the Plan shall initially consist of up to five million (5,000,000) shares of Common Stock,
subject to adjustment from time to time by the Committee. If any Option granted hereunder shall expire or terminate for any reason without having been exercised in full, the unpurchased shares subject thereto shall again be available for purposes of
this Plan. If any shares which are attributable to RSAs, expire or are otherwise terminated, cancelled, surrendered or forfeited, during a calendar year, such shares shall again be available for purposes of this Plan. 
  
 5. ELIGIBILITY AND PARTICIPATION 
  
 (a) The Committee shall determine the Employees to whom Options or RSAs
shall be granted, the time or times at which such Options or RSAs shall be granted and the number of shares to be subject to each Option or RSA. An Employee who has been granted an Option or RSA may, if he is otherwise eligible, be granted an
additional Option or Options or RSA or RSAs if the Committee shall so determine. An Employee may be granted Incentive Options or Non-Qualified Options or both under the Plan; provided, however, that the grant of Incentive Options and Non-Qualified
Options to an Employee shall be the grant of separate Options and each Incentive Option and each Non-Qualified Option shall be specifically designated as such. 
  

(b) In no event shall an Employee be granted in any calendar year, under the Plan and all other plans of the Company and any Subsidiary or Parent of
the Company, Incentive Options that are first exercisable during any one calendar year for stock with an aggregate fair market value (determined as of the time the option was granted) in excess of One Hundred Thousand Dollars ($100,000). 

 
 6. RESTRICTED STOCK AWARDS 
  
 The Committee may grant RSAs to such directors, officers, actual employees
or independent contractors of the Company of any Subsidiary of Parent of the Company, in such amounts and subject to such terms and conditions as the Committee may determine in its sole discretion, including such restrictions on transferability and
other restrictions as the Committee may impose, which restrictions may lapse separately or in combination at such times, under such circumstances, in such installments, or otherwise, as the Committee shall determine. 
  

 -4- 

 Restricted Stock granted under the Plan shall be evidenced by certificates registered in the name of the
Participant and bearing an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock. The Company may retain physical possession of any such certificates, and the Company may require a Participant
awarded Restricted Stock to deliver a stock power to the Company, endorsed in blank, relating to the Restricted Stock for so long as the Restricted Stock is subject to a risk of forfeiture. 
  
 Unless otherwise determined by the Committee at the time of an Award, the
holder of an RSA shall have the right to vote the restricted shares and to receive dividends thereon, unless and until such shares are forfeited. 
  
 In the event all or any of the shares subject to an RSA are forfeited due to failure to meet or comply with restrictions imposed by the Committee at the
time of grant prior to the lapse of any or all such restrictions, the Company shall repay to the Participant (or the Participant’s estate) any cash amount paid by the Participant for such forfeited shares. 
  
 7. PURCHASE PRICE OF OPTIONS 
  
 The purchase price of each share covered by the Plan shall be determined by
the Committee subject to the following: 
  
 (a) The purchase
price of each share covered by each Incentive Option shall not be less than one hundred percent (100%) of the Fair Market Value Per Share of the Common Stock of the Company on the date the Incentive Option is granted; provided, however, that if at
the time an Incentive Option is granted the Optionee owns or would be considered to own by reason of Section 424(d) of the Code more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Subsidiary
or Parent of the Company, the purchase price of the shares covered by such Incentive Option shall not be less than one hundred ten percent (110%) of the Fair Market Value Per Share of the Common Stock on the date the Incentive Option is granted.

  
 (b) The purchase price of each share covered by each
Non-Qualified Option shall not be less than eighty-five percent (85%) of the Fair Market Value Per Share of the Common Stock of the Company on the date the Non-Qualified Option is granted. 
  
 8. DURATION OF OPTIONS 
  
 The expiration date of each Option and all rights thereunder shall be
determined by the Committee at the time of the grant of the Option and as shall be permissible under the terms of the Plan; provided, however, in no event shall an Option be exercisable after the expiration of ten (10) years from the date on which
the Option is granted, and the Option shall be subject to earlier termination as provided herein; provided, however, that if at the time an Incentive Option is granted the Optionee owns or would be considered to own by reason of Section 424(d) of
the 

  

 -5- 

 
Code more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Subsidiary or Parent of the Company, such
Incentive Option shall expire five (5) years from the date the Incentive Option is granted unless the Committee selects an earlier date. 
  
 9. EXERCISE OF OPTIONS 
  
 Except as otherwise determined by the Committee, an Option shall be exercisable at a rate of twenty percent (20%) per year over five (5) years from the
date of grant of such Options, unless the Committee determines otherwise. 
  
 An Optionee may purchase less than the total number of shares for which the Option is exercisable, provided that a partial exercise of an Option may not be for less than one hundred (100) shares, unless the exercise
is during the final year of the Option, and shall not include any fractional shares. As a condition to the exercise, in whole or in part, of any Option, the Committee may in its sole discretion require the Optionee to pay, in addition to the
purchase price of the shares covered by the Option, an amount equal to any federal, state and local taxes that the Committee has determined are required to be paid in connection with the exercise of such Option in order to enable the Company to
claim a deduction or otherwise. Furthermore, if any Optionee disposes of any shares of stock acquired by exercise of an Incentive Option prior to the expiration of either of the holding periods specified in Section 422(a)(1) of the Code, the
Optionee shall pay to the Company, or the Company shall have the right to withhold from any payments to be made to the Optionee, an amount equal to any federal, state and local taxes the Committee has determined are required to be paid in connection
with the exercise of such Option, in order to enable the Company to claim a deduction or otherwise. 
  
 10. METHOD OF EXERCISE OF OPTIONS 
  
 (a) To the extent that the right to purchase shares has accrued, Options may be exercised from time to time by giving written notice to the Company stating the number of shares with respect to which the Option is
being exercised, accompanied by payment in full, by cash or by certified or cashier’s check payable to the order of the Company or the equivalent thereof acceptable to the Company, of the purchase price for the number of shares being purchased
and, if applicable, any federal, state or local taxes required to be paid in accordance with the provisions of Section 8 hereof. The Company shall issue a separate certificate or certificates with respect to each Option exercised by an Optionee.

  
 (b) In the Committee’s discretion, payment of the
purchase price for the shares with respect to which the Option is being exercised may be made in whole or in part with shares of Common Stock of the Company. If payment is made with shares of Common Stock, the Optionee, or other person entitled to
exercise the Option, shall deliver to the Company certificates representing the number of shares of Common Stock in payment for the shares being purchased, duly endorsed for transfer to the Company. If requested by the Committee, prior to 

  

 -6- 

 
the acceptance of such certificates in payment for such shares, the Optionee, or any other person entitled to exercise the Option, shall supply the Committee
with a representation and warranty in writing that he has good and marketable title to the shares represented by the certificate(s), free and clear of all liens and encumbrances. The value of the shares of Common Stock tendered in payment for the
shares being purchased shall be their Fair Market Value Per Share on the date of the Optionee’s exercise. 
  
 (c) Notwithstanding the foregoing, the Company shall have the right to postpone the time of delivery of the shares for such period as may be required for
it to comply, with reasonable diligence, with any applicable listing requirements of any national securities exchange or any federal, state or local law. If an Optionee, or other person entitled to exercise an Option, fails to accept delivery of or
fails to pay for all or any portion of the shares requested in the notice of exercise, upon tender of delivery thereof, the Committee shall have the right to terminate his Option with respect to such shares. 
  
 (d) The Company may make loans to Optionees as the Committee, in its
discretion, may determine in connection with the exercise of outstanding Options granted under the Plan. Such loans shall (i) be evidenced by promissory notes entered into by the holders in favor of the Company; (ii) be subject to the terms and
conditions set forth in this subsection (d) and such other terms and conditions, not inconsistent with the Plan, as the Committee shall determine; and (iii) bear interest at such rate as the Committee shall determine. In no event may the principal
amount of any such loan exceed the purchase price of the shares covered by the Option, or portion thereof, purchased by the Optionee. The initial term of the loan, the schedule of payments of principal and interest under the loan, the extent to
which the loan is to be with or without recourse against the holder with respect to principal and applicable interest and the conditions upon which the loan will become payable in the event of the holder’s termination of employment shall be
determined by the Committee; provided, however, that the term of the loan, including extensions, shall not exceed ten (10) years. Unless the Committee determines otherwise, when a loan shall have been made, shares having a Fair Market Value
at least equal to the principal amount of the loan shall be pledged by the holder to the Company as security for payment of the unpaid balance of the loan and such pledge shall be evidenced by a security agreement, the terms of which shall be
determined by the Committee, in it discretion; provided, however, that each loan shall comply with all applicable laws, regulations and rules of the Board of Governors of the Federal Reserve System and any other governmental agency
having jurisdiction. 
  
 11. NON-TRANSFERABILITY OF OPTIONS

  
 No Option or RSA granted under the Plan shall be
assignable or transferable by the Optionee, either voluntarily or by operation of law, otherwise than by will or the laws of descent and distribution, and shall be exercisable during his lifetime only by the Optionee. Shares subject to RSAs shall be
delivered or made only to the holder of the RSA or such holder’s duly appointed legal representative. 
  

 -7- 

 12. CONTINUANCE OF EMPLOYMENT 
  
 Nothing contained in the Plan or in any Option or RSA granted under the Plan shall confer upon any Optionee or Participant
any rights with respect to the continuation of his employment by the Company or interfere in any way with the right of the Company at any time to terminate such employment or to increase or decrease the compensation of the Optionee or Participant
from the rate in existence at the time of the grant of an Option or RSA. 
  
 13. TERMINATION OF EMPLOYMENT OTHER THAN BY DEATH OR PERMANENT DISABILITY 
  
 Except as the Committee may determine otherwise with respect to any Non-Qualified Options granted hereunder: If an Optionee ceases to be an Employee for
any reason other than his death or Permanent Disability, any Options granted to him under the Plan shall terminate three (3) months from the date on which such Optionee terminates his employment (whether voluntarily or involuntarily) unless such
Optionee has been rehired by the Company and is an Employee on such date. During such three (3) month period, an Optionee may exercise any Option granted to him but only to the extent such Option was exercisable on the date of termination of his
employment and provided that such Option has not expired or otherwise terminated as provided herein. The decision as to whether a termination for a reason other than death or Permanent Disability has occurred shall be made by the Committee, whose
decision shall be final and conclusive. A leave of absence approved in writing by the Committee shall not be deemed a termination of employment for purposes of this Section, but no Option may be exercised during any such leave of absence, except
during the first three (3) months thereof. 
  
 14. DEATH OR PERMANENT
DISABILITY OF OPTIONEE OR PARTICIPANT 
  
 Except as the
Committee may determine otherwise with respect to any Non-Qualified Options granted hereunder: If an Optionee shall die at a time when he is employed by the Company or if the Optionee shall cease to be an Employee by reason of Permanent Disability,
any Options granted to him under this Plan shall terminate one year after the date of his death or termination of employment due to Permanent Disability unless by its terms it shall expire before such date or otherwise terminate as provided herein,
and shall only be exercisable to the extent that it would have been exercisable on the date of his death or his retirement due to Permanent Disability. In the case of death, the Option may be exercised by the person or persons to whom the
Optionee’s rights under the Option shall pass by will or by the laws of descent and distribution. The decision as to whether a termination by reason of Permanent Disability has occurred shall be made by the Committee, whose decision shall be
final and conclusive. 
  
 Each Participant shall file and maintain
with the Company a written designation of one or more persons as the beneficiary or beneficiaries who shall be entitled to receive the award, if any, of Restricted Stock payable under the Plan upon the Participant’s death. If no such
designation is in effect at the time of a Participant’s death, or if no designated beneficiary survives the Participant or if such designation conflicts with the law, the Participant’s estate shall be entitled to receive the RSA, if any,
payable under the Plan upon the Participant’s death. 
  

 -8- 

 15. STOCK PURCHASE NOT FOR DISTRIBUTION 
  
 Each Optionee or Participant shall, by accepting the grant of an Option or
RSA under the Plan, represent and agree, for himself and his transferees by will or the laws of descent and distribution, that all shares of stock purchased upon exercise of the Option or grant of the RSA will be received and held without a view to
distribution except as may be permitted by the Act, and the rules and regulations promulgated thereunder. After each notice of exercise of any portion of an Option or grant of an RSA, if requested by the Committee, the person entitled to exercise
the Option or granted the RSA must agree in writing that the shares of stock are being acquired in good faith without a view to distribution except as may be permitted by the Act and the rules and regulations promulgated thereunder. 
  
 16. PRIVILEGES OF STOCK OWNERSHIP 
  
 No person entitled to exercise any Option granted under the Plan shall have
any of the rights or privileges of a shareholder of the Company with respect to any shares of Common Stock issuable upon exercise of such Option until such person has become the holder of record of such shares. No adjustment shall be made for
dividends or distributions of rights in respect of such shares if the record date is prior to the date on which such person becomes the holder of record, except as provided in Section 17 hereof. 
  
 17. ADJUSTMENTS 
  
 The Committee shall have the full authority, in its sole discretion, to
specify any rules, procedures, adjustments or matters with respect to the Plan or any Options or RSAs issued under the Plan in connection with any reorganization, merger, reverse merger, recapitalization, reclassification, stock split, reverse
split, combination of shares, sale of all or substantially all of the assets of the Company, sale of the Company or other corporate event or transaction, including, without limitation, modifying any applicable vesting provisions, adjusting the
amount of outstanding Options and/or RSAs, and/or terminating the Plan. The Committee shall not be obligated to take any action, but any determination by the Committee, and the extent thereof, shall be final, binding and conclusive. No fractional
shares of stock shall be issued under the Plan or in connection with any such adjustment. 
  
 18. AMENDMENT AND TERMINATION OF PLAN 
  
 (a) The Board may from time to time, with respect to any shares at the time not subject to Options or RSAs, suspend or terminate the Plan or amend or revise the terms of the Plan; provided that any amendment to the
Plan shall be approved by a majority of the shareholders of the Company if the amendment would (i) materially increase the benefits 
  

 -9- 

 
accruing to participants under the Plan; (ii) increase the number of shares of Common Stock which may be issued under the Plan, except as permitted under the
provisions of Section 16 hereof; or (iii) materially modify the requirements as to eligibility for participation in the Plan. 
  
 (b) No amendment, suspension or termination of the Plan shall, without the consent of the Optionee or Participant, alter or impair any rights or
obligations under any Option or RSA theretofore granted to such Optionee or Participant under the Plan. 
  
 (c) The terms and conditions of any Option granted to an Optionee, or RSA granted to a Participant, under the Plan may be modified or amended only by a
written agreement executed by the Optionee or Participant and the Company; provided, however, that if any amendment or modification of an Incentive Option would constitute a “modification, extension or renewal” within the meaning of
Section 424(h) of the Code, such amendment shall be null and void unless the amendment contains an acknowledgment by the parties substantially in the following form: “The parties hereto recognize and agree that this amendment constitutes a
modification, renewal or extension, within the meaning of Section 424(h) of the Code, of the option originally granted             .” 
  
 19. EFFECTIVE DATE OF PLAN 
  
 This Plan shall become effective upon adoption by the Board and approval by
the Company’s shareholders; provided, however, that prior to approval of the Plan by the Company’s shareholders, but after adoption by the Board, RSAs and Options may be granted under the Plan subject to obtaining such shareholders’
approval. Notwithstanding the foregoing, such shareholders’ approval must occur no later than twelve (12) months after the date of adoption of the Plan by the Board. 
  
 20. TERM OF PLAN 
  
 No Option or RSA shall be granted pursuant to the Plan after ten (10) years from the earlier of the date of adoption of the Plan by the Board or the date
of approval of the Plan by the Company’s shareholders. 
  
 21.
RIGHT TO REPURCHASE AND RIGHT OF FIRST REFUSAL. 
  
 Except as the Committee may determine otherwise, if an Optionee or Participant shall cease to be an Employee other than due to retirement with the consent of the Company, the Company shall have the right to (i) repurchase all or any portion
of the shares purchased by an Optionee upon the exercise of the Optionee’s Option, or delivered to a Participant pursuant to a RSA, at the Fair Market Value of the shares as of the date of termination of employment or, to the extent required to
satisfy applicable legal requirements, the original purchase price, if higher, as well as any shares issuable upon exercise of any unexercised Options which the Optionee has the right to exercise at the time the Optionee ceases to be an employee at
the Fair Market Value 

  

 -10- 

 
of the shares less the purchase price payable upon exercise of such Options, and (ii) to purchase the unvested portion of the shares as of the date of
termination of employment at the cost, if any, paid by the Employee for purchase of the Options. Any shares or Options repurchased by the Company hereunder shall again be available for issuance under the Plan. The Committee shall determine in each
case whether the Optionee or Participant shall have ceased to be an Employee due to retirement with the consent of the Company. Any such determination of the Committee shall be final and conclusive. 
  
 The Company shall have the right of first refusal, exercisable in connection
with any proposed sale, hypothecation or other disposition of the shares purchased by an Optionee pursuant to an Option or delivered to a Participant pursuant to an RSA. In the event the holder of such shares desires to accept a bona fide
third-party offer for any or all of such shares, the shares shall first be offered to the Company upon the same terms and conditions as are set forth in the bona fide offer. 
  
 Each Option or RSA may provide, at the Committee’s discretion, that the rights granted by this section shall lapse and
cease to have effect upon any of the following: (1) the first date on which the Common Stock is held of record by more than five hundred (500) persons, (2) determination by the Board that a public market exists for the outstanding shares of Common
Stock or (3) the consummation of an Initial Public Offering. 
  
 22.
MARKET STAND-OFF. 
  
 In connection with an Initial
Public Offering or any subsequent underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the Act, an Optionee or Participant shall agree not to sell, make any short sale of,
loan, hypothecate, pledge, grant any option for the repurchase of, or otherwise dispose or transfer for value or otherwise agree to engage in any of the foregoing transactions with respect to any shares under the Plan without the prior written
consent of the Company or its underwriters, for such period of time from and after the effective date of such registration statement as may be requested by the Company or such underwriters, provided, however, that in no event shall such period
exceed one hundred eighty (180) days. 
  
 23. OPTION OR RSA
AGREEMENTS 
  
 Options and RSAs under the Plan shall be
evidenced by an agreement as shall be approved by the Committee that sets forth the terms, conditions and limitations of an Option or RSA. The Committee may amend agreements theretofore entered into, either prospectively or retroactively, including,
but not limited to, the acceleration of vesting of an Option or RSA and the extension of time to exercise an Option or RSA, except that, no such amendment shall affect the Option or RSA in a materially adverse manner without the consent of the
Optionee or Participant. 
  

 -11- 

 24. LEGENDS. 
  
 All certificates for shares delivered under the Plan shall be subject to such stop transfer orders and other restrictions as
the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Common Stock is then listed and any applicable federal or state securities laws, or as
may otherwise be appropriate to administer the Plan, and the Committee may cause a legend or legends to be placed on such certificates to evidence such restrictions. 
  
 25. GOVERNING LAW. 
  
 The Plan shall be governed and construed in accordance with the laws of the State of Nevada and the Code. 
  

 -12-

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