Document:

Form of Trust Preferred Securities Guarantee Agreement

 Exhibit 4.16 
  
 GUARANTEE AGREEMENT 
  
 Between 
  
 Radian Group Inc. 
 (as Guarantor) 
  
 And 
  
 Wilmington Trust Company 
 (as Guarantee Trustee) 
  
 dated as of
                     

 TABLE OF CONTENTS* 
  

									
	 	 	 	 	 	 	 	  	Page

	ARTICLE 1	 	DEFINITIONS	  	1
	 	 	SECTION 1.1	 	 	 	Definitions	  	1
	ARTICLE 2	 	TRUST INDENTURE ACT	  	4
	 	 	SECTION 2.1	 	 	 	Trust Indenture Act; Application	  	4
	 	 	SECTION 2.2	 	 	 	List of Holders	  	4
	 	 	SECTION 2.3	 	 	 	Reports by the Guarantee Trustee	  	5
	 	 	SECTION 2.4	 	 	 	Periodic Reports to Guarantee Trustee	  	5
	 	 	SECTION 2.5	 	 	 	Evidence of Compliance with Conditions Precedent	  	5
	 	 	SECTION 2.6	 	 	 	Events of Default; Waiver	  	5
	 	 	SECTION 2.7	 	 	 	Event of Default; Notice	  	6
	 	 	SECTION 2.8	 	 	 	Conflicting Interests	  	6
	ARTICLE 3	 	POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE	  	6
	 	 	SECTION 3.1	 	 	 	Powers and Duties of the Guarantee Trustee	  	6
	 	 	SECTION 3.2	 	 	 	Certain Rights of Guarantee Trustee	  	8
	 	 	SECTION 3.3	 	 	 	Not Responsible for Recitals or Issuance of Guarantee	  	9
	ARTICLE 4	 	GUARANTEE TRUSTEE	  	9
	 	 	SECTION 4.1	 	 	 	Guarantee Trustee; Eligibility	  	9
	 	 	SECTION 4.2	 	 	 	Appointment, Removal and Resignation of the Guarantee Trustee	  	10
	ARTICLE 5	 	GUARANTEE	  	11
	 	 	SECTION 5.1	 	 	 	Guarantee	  	11
	 	 	SECTION 5.2	 	 	 	Waiver of Notice and Demand	  	11
	 	 	SECTION 5.3	 	 	 	Obligations Not Affected	  	11
	 	 	SECTION 5.4	 	 	 	Rights of Holders	  	12

	*	This Table of Contents does not constitute part of the Guarantee Agreement and shall not affect the interpretation of any of its terms or provisions. 

  

 i 

 Table of Contents 
 (continued) 
  

									
	 	 	SECTION 5.5	 	 	 	Guarantee of Payment	  	12
	 	 	SECTION 5.6	 	 	 	Subrogation	  	13
	 	 	SECTION 5.7	 	 	 	Independent Obligations	  	13
	ARTICLE 6	 	RANKING	  	13
	 	 	SECTION 6.1	 	 	 	Subordination	  	13
	 	 	SECTION 6.2	 	 	 	Pari Passu Guarantees	  	13
	ARTICLE 7	 	TERMINATION	  	13
	 	 	SECTION 7.1	 	 	 	Termination	  	13
	ARTICLE 8	 	INDEMNIFICATION	  	14
	 	 	SECTION 8.1	 	 	 	Exculpation	  	14
	 	 	SECTION 8.2	 	 	 	Indemnification	  	14
	 	 	SECTION 8.3	 	 	 	Expenses	  	15
	ARTICLE 9	 	MISCELLANEOUS	  	15
	 	 	SECTION 9.1	 	 	 	Successors and Assigns	  	15
	 	 	SECTION 9.2	 	 	 	Amendments	  	15
	 	 	SECTION 9.3	 	 	 	Notices	  	16
	 	 	SECTION 9.4	 	 	 	Benefit	  	17
	 	 	SECTION 9.5	 	 	 	Interpretation	  	17
	 	 	SECTION 9.6	 	 	 	Governing Law	  	17
	 	 	SECTION 9.7	 	 	 	Counterparts	  	17

  

 ii 

 GUARANTEE AGREEMENT 
  
 This GUARANTEE AGREEMENT (“Guarantee Agreement”), dated as of
            , is executed and delivered by Radian Group Inc., a Delaware corporation (the “Guarantor”), and Wilmington Trust Company, as trustee (the “Guarantee
Trustee”), for the benefit of the Holders (as defined herein) from time to time of the Preferred Securities (as defined herein) of Radian Group Capital Trust     , a Delaware statutory trust (the “Issuer”).

  
 WHEREAS, pursuant to an Amended and Restated Trust Agreement
(the “Trust Agreement”), dated as of              among the Trustees named therein, the Guarantor, as Depositor, and the Holders from time to time of undivided beneficial
interests in the assets of the Issuer, the Issuer is issuing          aggregate liquidation amount of its     % Preferred Securities, ( liquidation amount
$     per preferred security) (the “Preferred Securities”) representing preferred undivided beneficial interests in the assets of the Issuer and having the terms set forth in the Trust Agreement; 
  
 WHEREAS, the Preferred Securities will be issued by the Issuer and the
proceeds thereof, together with the proceeds from the issuance of the Issuer’s Common Securities (as defined below), will be used to purchase the Debentures (as defined in the Trust Agreement) of the Guarantor which will be deposited with
Wilmington Trust Company, as Property Trustee under the Trust Agreement, as trust assets; 
  
 WHEREAS, as incentive for the Holders to purchase Preferred Securities, the Guarantor desires irrevocably and unconditionally to agree, to the extent set forth herein, to pay to the Holders of the Preferred Securities
the Guarantee Payments (as defined herein) and to make certain other payments on the terms and conditions set forth herein; and 
  
 NOW, THEREFORE, in consideration of the purchase by each Holder of Preferred Securities, which purchase the Guarantor hereby agrees shall benefit the
Guarantor, the Guarantor executes and delivers this Guarantee Agreement for the benefit of the Holders from time to time of the Preferred Securities. 
  
 ARTICLE 1 
  
 DEFINITIONS 
  
 SECTION 1.1 Definitions. 
  
 As used in this
Guarantee Agreement, the terms set forth below shall have the meanings ascribed to them below. Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Trust Agreement as in effect on the date
hereof. 
  
 “Affiliate” of any specified Person means
any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person, provided, however, that an Affiliate of the Guarantor shall not be deemed to include the
Issuer. For the purposes of this definition, “control” when used with respect to any specified 
  

 Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Business Day” means any day other than a Saturday or Sunday or a day on which banking institutions in New York,
New York or Wilmington, Delaware are authorized by law, regulation or executive order to remain closed. 
  
 “Common Securities” means the securities representing common beneficial interests in the assets of the Issuer. 
  
 “Debt” means, with respect to any Person: (i) the principal of, and
any premium, if any, and interest on, indebtedness of any such Person for money borrowed and indebtedness evidenced by notes, debentures, bonds or other similar instruments for the payment of which that such Person is responsible or liable; (ii) all
Capital Lease Obligations (as defined in the Indenture) of such Person; (iii) all obligations of such Person issued or assumed as the deferred purchase price of property, all conditional sale obligations and all obligations under any title retention
agreement (but excluding trade accounts payable arising in the ordinary course of business and deferred purchase price due and payable within 90 days); (iv) all obligations of such Person for the reimbursement of any obligor on any letter of credit,
banker’s acceptance or similar credit transaction, other than obligations with respect to letters of credit securing obligations entered into in the ordinary course of business; (v) all Hedging Obligations of such Person; (vi) all obligations
of the type referred to above of other Persons and all dividends of other Persons for which (and to the extent that) such Person is responsible or liable as obligor, guarantor or otherwise; (vii) all obligations of the type referred to above of
other Persons to the extent secured by any Lien on any property or asset of that Person; and (viii) any amendments, modifications, refundings, renewals or extensions of any indebtedness or obligation described above. 
  
 “Event of Default” means a default by the Guarantor on any of its
payment or other obligations under this Guarantee Agreement; provided, however, that, except with respect to a default in payment of any Guarantee Payments, the Guarantor shall have received notice of default and shall not have cured
such default within 60 days after receipt of such notice. 
  
 “Guarantee Payments” means the following payments or distributions, without duplication, with respect to the Preferred Securities, to the extent not paid or made by or on behalf of the Issuer: (i) any accrued and unpaid
Distributions (as defined in the Trust Agreement) required to be paid on the Preferred Securities, to the extent the Issuer shall have funds on hand available therefor, (ii) the redemption price, including all accrued and unpaid Distributions
to the date of redemption (the “Redemption Price”), with respect to the Preferred Securities called for redemption by the Issuer to the extent the Issuer shall have funds on hand available therefor, and (iii) upon a voluntary or
involuntary termination, winding-up or liquidation of the Issuer, unless the Preferred Securities are redeemed or Debentures are distributed to the Holders, the lesser of (a) the aggregate of the liquidation amount of
$[    ] per Preferred Security plus all accrued and unpaid Distributions on the Preferred Securities to the date of payment to the extent the Issuer shall have funds on hand legally and immediately 
  

 2 

 available to make such payment and (b) the amount of assets of the Issuer remaining available for distribution to
Holders in liquidation of the Issuer (in either case, the “Liquidation Distribution”). 
  
 “Guarantee Trustee” means Wilmington Trust Company until a Successor Guarantee Trustee has been appointed and has accepted such appointment
pursuant to the terms of this Guarantee Agreement and thereafter means each such Successor Guarantee Trustee. 
  
 “Hedging Obligations” means, with respect to any Person, the obligations of such Person under (i) interest rate swap agreements, interest rate
cap agreements and interest rate collar agreements and (ii) other similar agreements or arrangements designed to protect such Person against fluctuations in interest rates. 
  
 “Holder” means any holder, as registered on the books and records of the Issuer, of any Preferred Securities;
provided, however, that in determining whether the holders of the requisite percentage of Preferred Securities have given any request, notice, consent or waiver hereunder, “Holder” shall not include the Guarantor, the
Guarantee Trustee or any Affiliate of the Guarantor or the Guarantee Trustee. 
  
 “Indemnified Person” means the Guarantee Trustee, and any Affiliate, officer, director, shareholder, member, partner, employee, representative, nominee, custodian or agent thereof. 
  
 “Indenture” means the Subordinated Indenture dated as of
            , between the Guarantor and
                            , as Trustee, as supplemented or amended from time to time. 
  
 “List of Holders” has the meaning specified in Section 2.2(a).

  
 “Majority in liquidation amount of the Preferred
Securities” means, except as provided by the Trust Indenture Act, a vote by the Holder(s), voting separately as a class, of more than 50% of the liquidation amount of all then outstanding Preferred Securities issued by the Issuer. 

 
 “Officer” means, with respect to any Person, the Chairman of the
Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, Vice Chairman of the Board, the Treasurer, any Assistant Treasurer, the Controller, the Secretary, any Assistant Secretary, any Vice
President or any Assistant Vice President of such Person. 
  
 “Officers’ Certificate” means, with respect to any Person, a certificate signed by two Officers of such Person, and delivered to the Guarantee Trustee. Any Officers’ Certificate delivered with respect to compliance with
a condition or covenant provided for in this Guarantee Agreement shall include: 
  
 (a) a statement that each Officer signing the Officers’ Certificate has read the covenant or condition and the definitions relating thereto; 
  
 (b) a brief statement of the nature and scope of the examination or investigation undertaken by each Officer in rendering
the Officers’ Certificate; 
  

 3 

 (c) a statement that each such Officer has made such examination or investigation as, in such
Officer’s opinion, is necessary to enable such Officer to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
  
 (d) a statement as to whether, in the opinion of each such Officer, such condition or covenant has been complied with.

  
 “Person” means a legal person, including any
individual, corporation, estate, partnership, joint venture, association, joint stock company, limited liability company, trust, unincorporated association, or government or any agency or political subdivision thereof, or any other entity of
whatever nature. 
  
 “Responsible Officer” means, with
respect to the Guarantee Trustee, any Senior Vice President, any Vice President, any Assistant Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, any Senior Trust Officer, Trust Officer or Assistant Trust
Officer or any other officer of the Corporate Trust Trustee Administration of the Guarantee Trustee customarily performing functions similar to those performed by any of the above designated officers, and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred because of that officer’s knowledge of and familiarity with the particular subject. 
  
 “Senior Debt” has the same meaning given to that term in the Indenture. 
  
 “Successor Guarantee Trustee” means a successor Guarantee Trustee
possessing the qualifications to act as Guarantee Trustee under Section 4.1. 
  
 “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended. 
  
 ARTICLE 2 
  
 TRUST INDENTURE ACT 
  
 SECTION 2.1 Trust
Indenture Act; Application. 
  
 (a) This Guarantee Agreement
is subject to the provisions of the Trust Indenture Act that are required to be part of this Guarantee Agreement and shall, to the extent applicable, be governed by such provisions. 
  
 (b) If and to the extent that any provision of this Guarantee Agreement limits, qualifies or conflicts with the duties
imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall control. 
  
 SECTION 2.2 List of Holders. 
  
 (a) The Guarantee Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses
of all Holders (“List of Holders”) and shall otherwise comply with Section 312(a) of the Trust Indenture Act. If the 
  

 4 

 Guarantee Trustee is not the registrar, the Guarantor shall furnish to the Guarantee Trustee at least seven Business Days
before each Interest Payment Date (as such term is defined in the Indenture) and at such other times as the Guarantee Trustee may reasonably request in writing a List of Holders as of such date as the Guarantee Trustee may reasonably require, in
each case to the extent such information is not identical to a previously supplied List of Holders or has not otherwise been received by the Guarantee Trustee in its capacity as such. The Guarantee Trustee may destroy any prior List of Holders
previously given to it upon receipt of a new List of Holders. 
  
 (b) The Guarantee Trustee shall comply with its obligations under Sections 311(a), 311(b) and 312(b) of the Trust Indenture Act. 
  
 SECTION 2.3 Reports by the Guarantee Trustee. 
  
 On or before      of each year, commencing              the
Guarantee Trustee shall provide to the Holders such reports as are required by Section 313 of the Trust Indenture Act, if any, in the form and in the manner provided by Section 313 of the Trust Indenture Act. The Guarantee Trustee shall also comply
with the other requirements of Section 313 of the Trust Indenture Act. 
  
 SECTION 2.4 Periodic Reports to Guarantee Trustee. 
  
 The Guarantor shall provide to the Guarantee Trustee, the Securities and Exchange Commission and the Holders such documents, reports and information, if any, as required by Section 314 of the Trust Indenture Act and the compliance
certificate required by Section 314(a)(4) of the Trust Indenture Act in the form, in the manner and at the times required by Section 314 of the Trust Indenture Act. 
  
 SECTION 2.5 Evidence of Compliance with Conditions Precedent. 
  
 The Guarantor shall provide to the Guarantee Trustee such evidence of
compliance with such conditions precedent, if any, provided for in this Guarantee Agreement that relate to any of the matters set forth in Section 314(c) of the Trust Indenture Act. Any certificate or opinion required to be given by an officer
pursuant to Section 314(c)(1) of the Trust Indenture Act may be given in the form of an Officers’ Certificate. 
  
 SECTION 2.6 Events of Default; Waiver. 
  
 The Holders of a Majority in liquidation amount of the Preferred Securities may, by vote, on behalf of all of the Holders, waive any past Event of Default
and its consequences. Upon such waiver, any such Event of Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Guarantee Agreement, but no such waiver shall extend to
any subsequent or other default or Event of Default or impair any right consequent therefrom. 
  

 5 

 SECTION 2.7 Event of Default; Notice. 
  
 (a) The Guarantee Trustee shall, within 90 days after the occurrence of an
Event of Default, transmit to the Holders notices of such Event of Default (if the occurrence is known to the Guarantee Trustee), unless such default has been cured before the giving of such notice; provided, that, except in the case of a default in
the payment of a Guarantee Payment, the Guarantee Trustee shall be protected in withholding such notice if and so long as the Board of Directors, the executive committee or any other committee of directors and/or Responsible Officers of the
Guarantee Trustee in good faith determines that the withholding of such notice is in the interests of the Holders. 
  
 (b) The Guarantee Trustee shall only be deemed to have knowledge of any Event of Default if the Guarantee Trustee shall have received written notice, or a
Responsible Officer charged with the administration of the Trust Agreement shall have obtained actual knowledge, of such Event of Default. 
  
 SECTION 2.8 Conflicting Interests. 
  
 The Trust Agreement shall be deemed to be specifically described in this Guarantee Agreement for the purposes of clause (i) of the first proviso contained
in Section 310(b) of the Trust Indenture Act. 
  
 ARTICLE 3

  
 POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

  
 SECTION 3.1 Powers and Duties of the Guarantee
Trustee. 
  
 (a) This Guarantee Agreement shall be held by
the Guarantee Trustee for the benefit of the Holders, and the Guarantee Trustee shall not transfer this Guarantee Agreement to any Person except a Holder exercising his or her rights pursuant to Section 5.4(v) or to a Successor Guarantee Trustee on
acceptance by such Successor Guarantee Trustee of its appointment to act as Successor Guarantee Trustee. The right, title and interest of the Guarantee Trustee shall automatically vest in any Successor Guarantee Trustee upon acceptance by such
Successor Guarantee Trustee of its appointment hereunder, and such vesting and cessation of title shall be effective whether or not conveyancing documents have been executed and delivered pursuant to the appointment of such Successor Guarantee
Trustee. 
  
 (b) If an Event of Default of which the Guarantee
Trustee has knowledge as provided in Section 2.7(b) has occurred and is continuing, the Guarantee Trustee shall enforce this Guarantee Agreement for the benefit of the Holders. 
  
 (c) The Guarantee Trustee, before the occurrence of any Event of Default and after the curing or waiving of all Events of
Default that may have occurred, shall undertake to perform only such duties as are specifically set forth in this Guarantee Agreement, and no implied covenants shall be read into this Guarantee Agreement against the Guarantee Trustee. If an Event of
Default has occurred (that has not been cured or waived pursuant to Section 2.6) of which the Guarantee Trustee has knowledge as provided in Section 2.7(b), the Guarantee Trustee shall exercise such of the rights and powers vested in it by this
Guarantee Agreement, and use the same degree of care and skill in its exercise thereof, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs. 
  

 6 

 (d) No provision of this Guarantee Agreement shall be construed to relieve the Guarantee Trustee from
liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that: 
  
 (i) before the occurrence of any Event of Default and after the curing or waiving of all such Events of Default that may have occurred: 
  
 (A) the duties and obligations of the Guarantee Trustee shall be determined
solely by the express provisions of this Guarantee Agreement, and the Guarantee Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Guarantee Agreement; and 
  
 (B) in the absence of bad faith on the part of the Guarantee Trustee, the
Guarantee Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Guarantee Trustee and conforming to the requirements of this
Guarantee Agreement; but in the case of any such certificates or opinions that by any provision hereof or of the Trust Indenture Act are specifically required to be furnished to the Guarantee Trustee, the Guarantee Trustee shall be under a duty to
examine the same to determine whether or not they conform to the requirements of this Guarantee Agreement; 
  
 (ii) the Guarantee Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer of the Guarantee Trustee, unless it
shall be proved that the Guarantee Trustee was negligent in ascertaining the pertinent facts upon which such judgment was made; 
  
 (iii) the Guarantee Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the
direction of the Holders of not less than a Majority in liquidation amount of the Preferred Securities relating to the time, method and place of conducting any proceeding for any remedy available to the Guarantee Trustee, or exercising any trust or
power conferred upon the Guarantee Trustee under this Guarantee Agreement; and 
  
 (iv) no provision of this Guarantee Agreement shall require the Guarantee Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the
exercise of any of its rights or powers, if the Guarantee Trustee shall have reasonable grounds for believing that the repayment of such funds or liability is not reasonably assured to it under the terms of this Guarantee Agreement or adequate
indemnity against such risk or liability is not reasonably assured to it. 
  

 7 

 SECTION 3.2 Certain Rights of Guarantee Trustee. 
  
 (a) Subject to the provisions of Section 3.1: 
  
 (i) the Guarantee Trustee conclusively may rely, and shall be fully
protected in acting or refraining from acting upon, any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed, sent or presented by the proper party or parties; 
  
 (ii) any direction or act of the Guarantor contemplated by this Guarantee Agreement shall be sufficiently evidenced by an Officers’ Certificate
unless otherwise prescribed herein; 
  
 (iii) whenever in the
administration of this Guarantee Agreement the Guarantee Trustee shall deem it desirable that a matter be proved or established before taking, suffering or omitting to take any action hereunder, the Guarantee Trustee (unless other evidence is herein
specifically prescribed) may, in the absence of bad faith on its part, request and rely upon an Officers’ Certificate which, upon receipt of such request from the Guarantee Trustee, shall be promptly delivered by the Guarantor; 
  
 (iv) the Guarantee Trustee shall have no duty to see to any recording,
filing or registration of any instrument (or any rerecording, refiling or registration thereof); 
  
 (v) the Guarantee Trustee may consult with legal counsel, and the written advice or opinion of such legal counsel with respect to legal matters shall be
full and complete authorization and protection in respect of any action taken, suffered or omitted to be taken by it hereunder in good faith and in accordance with such advice or opinion; such legal counsel may be legal counsel to the Guarantor or
any of its Affiliates and may be one of its employees; the Guarantee Trustee shall have the right at any time to seek instructions concerning the administration of this Guarantee Agreement from any court of competent jurisdiction; 
  
 (vi) the Guarantee Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Guarantee Agreement at the request or direction of any Holder, unless such Holder shall have provided to the Guarantee Trustee such adequate security and indemnity as would satisfy a reasonable person in the
position of the Guarantee Trustee, against the costs, expenses (including attorneys’ fees and expenses and the expenses of the Guarantee Trust’s agents, nominees or custodians) and liabilities that might be incurred by it in complying with
such request or direction, including such reasonable advances as may be requested by the Guarantee Trustee; provided, that nothing contained in this Section 3.2(a)(vi) shall be taken to relieve the Guarantee Trustee, upon the occurrence of an Event
of Default, of its obligation to exercise the rights and powers vested in it by this Guarantee Agreement; 
  
 (vii) the Guarantee Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Guarantee Trustee, in its discretion, may make such further inquiry or investigation
into such facts or matters as it may see fit; 
  
 (viii) the
Guarantee Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through its agents, nominees, custodians or attorneys, and the Guarantee Trustee shall not be responsible for any misconduct
or negligence on the part of any such agent or attorney appointed with due care by it hereunder; 
  

 8 

 (ix) any action by the Guarantee Trustee or its agents hereunder shall bind the Holders of the Preferred
Securities, and the signature of the Guarantee Trustee or its agents alone shall be sufficient and effective to perform any such action. No third party shall be required to inquire as to the authority of the Guarantee Trustee to so act or as to its
compliance with any of the terms and provisions of this Guarantee Agreement, both of which shall be conclusively evidenced by the Guarantee Trustee or its agent taking such action; and 
  
 (x) whenever in the administration of this Guarantee Agreement the Guarantee Trustee shall deem it desirable to receive
instructions with respect to enforcing any remedy or right or taking any other action hereunder, the Guarantee Trustee (A) may request instructions from the Holders of a Majority in liquidation amount of the Preferred Securities, (B)
may refrain from enforcing such remedy or right or taking such other action until such instructions are received, and (C) shall be protected in conclusively relying on or acting in accordance with such instructions. 
  
 (b) No provision of this Guarantee Agreement shall be deemed to impose any
duty or obligation on the Guarantee Trustee to perform any act or acts or exercise any right, power, duty or obligation conferred or imposed on it in any jurisdiction in which it shall be illegal, or in which the Guarantee Trustee shall be
unqualified or incompetent in accordance with applicable law, to perform any such act or acts or to exercise any such right, power, duty or obligation. No permissive power or authority available to the Guarantee Trustee shall be construed to be a
duty to act in accordance with such power or authority. 
  
 SECTION 3.3 Not Responsible for Recitals or Issuance of Guarantee. 
  
 The recitals contained in this Guarantee Agreement shall be taken as the statements of the Guarantor, and the Guarantee Trustee does not assume any responsibility for their correctness. The Guarantee Trustee makes no
representation as to the validity or sufficiency of this Guarantee Agreement. 
  
 ARTICLE 4 
  
 GUARANTEE
TRUSTEE 
  
 SECTION 4.1 Guarantee Trustee; Eligibility.

  
 (a) There shall at all times be a Guarantee Trustee which
shall: 
  
 (i) not be an Affiliate of the Guarantor; and

  
 (ii) be a corporation organized and doing business under the
laws of the United States of America or any State or Territory thereof or of the District of Columbia, or a corporation or Person permitted by the Securities and Exchange Commission to act as an institutional trustee under the Trust Indenture Act,
authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least 500 million U.S. dollars 
  

 9 

 ($500,000,000), and subject to supervision or examination by Federal, State, Territory or District of Columbia authority.
If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the supervising or examining authority referred to above, then, for the purposes of this Section 4.1(a)(ii) and to the extent permitted
by the Trust Indenture Act, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. 
  
 (b) If at any time the Guarantee Trustee shall cease to be eligible to so act
under Section 4.1(a), the Guarantee Trustee shall immediately resign in the manner and with the effect set out in Section 4.2(c). 
  
 (c) If the Guarantee Trustee has or shall acquire any “conflicting interest” within the meaning of Section 310(b) of the Trust Indenture Act,
the Guarantee Trustee and Guarantor shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act. 
  
 SECTION 4.2 Appointment, Removal and Resignation of the Guarantee Trustee. 
  
 (a) Subject to Section 4.2(b), the Guarantee Trustee may be appointed or removed without cause at any time by the Guarantor
(except during an Event of Default, in which case the Guarantee Trustee may only be removed by a Majority in liquidation amount of the Preferred Securities). 
  
 (b) The Guarantee Trustee shall not be removed until a Successor Guarantee Trustee has been appointed and has accepted such appointment by written
instrument executed by such Successor Guarantee Trustee and delivered to the Guarantor. 
  
 (c) The Guarantee Trustee appointed hereunder shall hold office until a Successor Guarantee Trustee shall have been appointed or until its removal or resignation. The Guarantee Trustee may resign from office (without
the need for prior or subsequent accounting) by an instrument in writing executed by the Guarantee Trustee and delivered to the Guarantor, which resignation shall not take effect until a Successor Guarantee Trustee has been appointed and has
accepted such appointment by instrument in writing executed by such Successor Guarantee Trustee and delivered to the Guarantor and the resigning Guarantee Trustee, whereupon the resigning Guarantee Trustee shall be released and discharged of the
trusts and other duties imposed on such trustee in connection herewith. 
  
 (d) If no Successor Guarantee Trustee shall have been appointed and accepted appointment as provided in this Section 4.2 within 60 days after delivery of an instrument of resignation or removal, the resigning or removed Guarantee Trustee
may petition, at the expense of the Guarantor, any court of competent jurisdiction for appointment of a Successor Guarantee Trustee. Such court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a Successor
Guarantee Trustee. 
  
 (e) No Guarantee Trustee shall be liable
for the acts or omissions to act of any Successor Guarantee Trustee. 
  

 10 

 (f) Upon termination of this Guarantee Agreement or removal or resignation of the Guarantee Trustee
pursuant to this Section 4.2, the Guarantor shall pay to the Guarantee Trustee all amounts accrued and owing to such Guarantee Trustee to the date of such termination, removal or resignation. 
  
 ARTICLE 5 
  
 GUARANTEE 
  
 SECTION 5.1 Guarantee. 
  
 The Guarantor irrevocably and unconditionally agrees to pay in full to the
Holders the Guarantee Payments (without duplication of amounts theretofore paid by or on behalf of the Issuer or upon distribution of Debentures to Holders in exchange for all of the Preferred Securities as provided in the Trust Agreement), as and
when due, regardless of any defense, right of set-off or counterclaim that the Issuer may have or assert. The Guarantor’s obligation to make a Guarantee Payment may be satisfied by direct payment of the required amounts by the Guarantor to the
Holders or by causing the Issuer to pay such amounts to the Holders. 
  
 SECTION 5.2 Waiver of Notice and Demand. 
  
 The
Guarantor hereby waives notice of acceptance of the Guarantee Agreement and of any liability to which it applies or may apply, presentment, demand for payment, any right to require a proceeding first against the Guarantee Trustee, Issuer or any
other Person before proceeding against the Guarantor, protest, notice of nonpayment, notice of dishonor, notice of redemption and all other notices and demands. 
  

SECTION 5.3 Obligations Not Affected. 
  
 The obligations, covenants, agreements and duties of the Guarantor under this Guarantee Agreement shall in no way be affected or impaired by reason of the
happening from time to time of any of the following: 
  
 (a) the
release or waiver, by operation of law or otherwise, of the performance or observance by the Issuer of any express or implied agreement, covenant, term or condition relating to the Preferred Securities to be performed or observed by the Issuer;

  
 (b) the extension of time for the payment by the Issuer of all
or any portion of the Distributions, Redemption Price, Liquidation Distribution or any other sums payable under the terms of the Preferred Securities or the extension of time for the performance of any other obligation under, arising out of, or in
connection with, the Preferred Securities (other than an extension of time for payment of Distributions, Redemption Price, Liquidation Distribution or other sum payable that results from the extension of any interest payment period on the Debentures
as so provided in the Indenture); 
  
 (c) any failure, omission,
delay or lack of diligence on the part of the Holders to enforce, assert or exercise any right, privilege, power or remedy conferred on the Holders pursuant to the terms of the Preferred Securities, or any action on the part of the Issuer granting
indulgence or extension of any kind; 
  

 11 

 (d) the voluntary or involuntary liquidation, dissolution, sale of any collateral, receivership,
insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition or readjustment of debt of, or other similar proceedings affecting, the Issuer or any of the assets of the Issuer; 
  
 (e) any invalidity of, or defect or deficiency in, the Preferred Securities;

  
 (f) the settlement or compromise of any obligation guaranteed
hereby or hereby incurred; or 
  
 (g) to the extent permitted by
law, any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a guarantor, it being the intent of this Section 5.3 that the obligations of the Guarantor hereunder shall be absolute and
unconditional under any and all circumstances. 
  
 There shall be
no obligation of the Holders to give notice to, or obtain the consent of, the Guarantor with respect to the happening of any of the foregoing. 
  
 SECTION 5.4 Rights of Holders. 
  
 The Guarantor expressly acknowledges that: (i) this Guarantee Agreement will be deposited with the Guarantee Trustee to be held for the benefit of
the Holders; (ii) the Guarantee Trustee has the right to enforce this Guarantee Agreement on behalf of the Holders; (iii) the Holders of a Majority in liquidation amount of the Preferred Securities have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the Guarantee Trustee in respect of this Guarantee Agreement or to direct the exercise of any trust or power conferred upon the Guarantee Trustee under this Guarantee
Agreement; (iv) any Holder may institute a legal proceeding directly against the Guarantor to enforce the Holder’s rights under this Guarantee Agreement, without first instituting a legal proceeding against, or requesting or directing
that action be taken by, the Guarantee Trustee, the Issuer or any other Person; (v) if the Guarantee Trustee fails to enforce its rights under this Guarantee Agreement, any Holder may directly institute a legal proceeding against the Guarantor to
enforce the Guarantee Trustee’s rights under this Guarantee Agreement, without first instituting a legal proceeding against the Issuer, the Guarantee Trustee or any other person or entity; and (vi) the Holders have those rights set forth in
Section 316(b) of the Trust Indenture Act. 
  
 SECTION 5.5
Guarantee of Payment. 
  
 This Guarantee Agreement creates
a guarantee of payment and not of collection. This Guarantee Agreement will not be discharged except by payment of the Guarantee Payments in full (without duplication of amounts theretofore paid by the Issuer or upon distribution of Debentures to
Holders in exchange for all of the Preferred Securities as provided in the Trust Agreement). 
  

 12 

 SECTION 5.6 Subrogation. 
  
 The Guarantor shall be subrogated to all (if any) rights of the Holders against the Issuer in respect of any amounts paid to
the Holders by the Guarantor under this Guarantee Agreement; provided, however, that the Guarantor shall not (except to the extent required by mandatory provisions of law) be entitled to enforce or exercise any right that it may
acquire by way of subrogation or any indemnity, reimbursement or other agreement, in all cases as a result of payment under this Guarantee Agreement, if, at the time of any such payment, any amounts are due and unpaid under this Guarantee Agreement.
If any amount shall be paid to the Guarantor in violation of the preceding sentence, the Guarantor agrees to hold such amount in trust for the Holders and to pay over such amount to the Holders. 
  
 SECTION 5.7 Independent Obligations. 
  
 The Guarantor acknowledges that its obligations hereunder are independent of
the obligations of the Issuer with respect to the Preferred Securities and that the Guarantor shall be liable as principal and as debtor hereunder to make Guarantee Payments pursuant to the terms of this Guarantee Agreement notwithstanding the
occurrence of any event referred to in subsections (a) through (g), inclusive, of Section 5.3 hereof. 
  
 ARTICLE 6 
  
 RANKING 
  
 SECTION 6.1 Subordination.

  
 This Guarantee Agreement will constitute an unsecured
obligation of the Guarantor and will rank subordinate and junior in right of payment to all Senior Debt of the Guarantor. 
  
 SECTION 6.2 Pari Passu Guarantees. 
  
 This Guarantee Agreement shall rank pari passu with any similar Guarantees issued by the Guarantor on behalf of the holders of Preferred Securities issued
by Radian Group Capital Trust     , and other securities which are similar to Preferred Securities that are guaranteed by the Guarantor pursuant to an instrument that ranks pari passu with this Guarantee Agreement.

  
 ARTICLE 7 
  
 TERMINATION 
  
 SECTION 7.1 Termination. 
  
 This Guarantee Agreement shall terminate and be of no further force and
effect upon (i) full payment of the Redemption Price of all Preferred Securities, (ii) the distribution of Debentures to the Holders in exchange for all of the Preferred Securities or (iii) full payment of 
  

 13 

 the amounts payable in accordance with the Trust Agreement upon liquidation of the Issuer. Notwithstanding the foregoing,
this Guarantee Agreement will continue to be effective or will be reinstated, as the case may be, if at any time any Holder must restore payment of any sums paid with respect to Preferred Securities or this Guarantee Agreement. 
  
 ARTICLE 8 
  
 INDEMNIFICATION 
  
 SECTION 8.1 Exculpation. 
  
 (a) No Indemnified Person shall be liable, responsible or accountable in
damages or otherwise to the Guarantor or any Holder or beneficial owner of Preferred Securities for any loss, damage or claim incurred by reason of any act or omission performed or omitted by such Indemnified Person in good faith in accordance with
this Guarantee Agreement and in a manner that such Indemnified Person reasonably believed to be within the scope of the authority conferred on such Indemnified Person by this Guarantee Agreement or by law, except that an Indemnified Person shall be
liable for any such loss, damage or claim incurred by reason of such Indemnified Person’s negligence or willful misconduct with respect to such acts or omissions. 
  
 (b) An Indemnified Person shall be fully protected in relying in good faith upon the records of the Guarantor and upon such
information, opinions, reports or statements presented to the Guarantor by any Person as to matters the Indemnified Person reasonably believes are within such other Person’s professional or expert competence and who has been selected with
reasonable care by or on behalf of the Guarantor, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, profits, losses, or any other facts pertinent to the existence and amount of assets from
which distributions to Holders might properly be paid. 
  
 SECTION
8.2 Indemnification. 
  
 (a) To the fullest extent
permitted by applicable law, the Guarantor shall indemnify and hold harmless each Indemnified Person from and against any loss, damage or claim incurred by such Indemnified Person by reason of any act or omission performed or omitted by such
Indemnified Person in good faith in accordance with this Guarantee Agreement and in a manner such Indemnified Person reasonably believed to be within the scope of authority conferred on such Indemnified Person by this Guarantee Agreement, except
that no Indemnified Person shall be entitled to be indemnified in respect of any loss, damage or claim incurred by such Indemnified Person by reason of such Indemnified Person’s negligence or willful misconduct with respect to such acts or
omissions. 
  
 (b) To the fullest extent permitted by applicable
law, reasonable expenses (including legal fees) incurred by an Indemnified Person in defending any claim, demand, action, suit or proceeding shall, from time to time, be advanced by the Guarantor before the final disposition of such claim, demand,
action, suit or proceeding upon receipt by the Guarantor of an undertaking by or on behalf of the Indemnified Person to repay such amount if it shall be determined that the Indemnified Person is not entitled to be indemnified as authorized in
Section 8.2(a). 
  

 14 

 (c) The obligation to indemnify as set forth in this Section 8.2 shall survive the termination of this
Guarantee Agreement. 
  
 SECTION 8.3 Expenses. 

 
 The Guarantor agrees to pay to the Guarantee Trustee compensation for its
services as shall be mutually agreed upon by the Guarantor and the Guarantee Trustee. The Guarantor shall reimburse the Guarantee Trustee upon request for all reasonable out-of-pocket expenses incurred by it, including the reasonable compensation
and expenses of the Guarantee Trustee’s agents and counsel, except any expense as may be attributable to the negligence of the Guarantee Trustee. 
  
 ARTICLE 9 
  
 MISCELLANEOUS 
  
 SECTION 9.1 Successors and Assigns. 
  
 All guarantees and agreements contained in this Guarantee Agreement shall bind the successors, assigns, receivers, trustees and representatives of the Guarantor and shall inure to the benefit of the Holders of the
Preferred Securities then outstanding. Except in connection with a consolidation, merger, conveyance, transfer or sale or lease involving the Guarantor that is permitted under the Indenture and pursuant to which the assignee agrees in writing to
perform the Guarantor’s obligations hereunder, the Guarantor shall not assign its obligations hereunder. 
  
 SECTION 9.2 Amendments. 
  
 Except with respect to any changes that do not adversely affect the rights of the Holders in any material respect (in which case no consent of the Holders
will be required), this Guarantee Agreement may only be amended with the prior approval of the Holders of not less than a Majority in liquidation amount of the Preferred Securities. The provisions of Article 6 of the Trust Agreement concerning
meetings of the Holders shall apply to the giving of such approval. No amendment hereof that affects materially and adversely the Guarantee Trustee’s rights, duties or immunities hereunder shall be effective unless such amendment is executed by
the Guarantee Trustee in its reasonable discretion. 
  

 15 

 SECTION 9.3 Notices. 
  
 Any notice, request or other communication required or permitted to be given to the Guarantor, Issuer or Guarantee Trustee
hereunder shall be in writing, duly signed by the party giving such notice, and delivered in person, telecopied, mailed by first class mail (registered or certified, return receipt requested) or overnight air courier guaranteeing next day delivery
as follows: 
  
 (a) if given to the Guarantor, to the address set
forth below or such other address as the Guarantor may give notice of to the Guarantee Trustee and Holders: 
  
 Radian Group Inc. 
 1601 Market Street 
 Philadelphia, PA 19103 
 Facsimile No.: (215)              
 Attention: General Counsel 
  
 (b) if given to the Issuer, in care of the Guarantee Trustee, to the Issuer’s (and the Guarantee Trustee’s) address set forth below or such
other address as the Guarantee Trustee on behalf of the Issuer may give notice of to the Holders: 
  
 Radian Group Capital Trust      
 c/o Radian Group Inc. 
 1601 Market Street 
 Philadelphia, PA 19103 
 Facsimile No.: (215)              
 Attention: General Counsel 
  
 (c) if given to the Guarantee Trustee, to the Guarantee Trustee’s address set forth below or such other address as the Guarantee Trustee may give
notice of to the Guarantor and the Holders: 
  
 Wilmington Trust Company 
 Rodney Square North 
 1100 North Market Street 
 Wilmington, Delaware 19890-1600 
  
 All notices and communications (other than those sent to Holders) shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if
mailed; when receipt is acknowledged or confirmed, if telecopied; and the next Business Day after timely delivery to the courier, if sent by overnight courier guaranteeing next day delivery. 
  
 Any notice or communication to a Holder shall be mailed by first class mail
or by overnight carrier guaranteeing next day delivery to the address set forth on the books and records of the Issuer and shall be deemed to have been duly given: five Business Days after being deposited in the mail, postage prepaid, if mailed; and
the next Business Day after timely delivery to the courier, if sent by overnight courier guaranteeing next day delivery. 
  
 If a notice or communication is sent in the manner provided above within the time prescribed, it is duly given, whether or not the addressee receives it.

  

 16 

 SECTION 9.4 Benefit. 
  
 This Guarantee Agreement is solely for the benefit of the Holders and, subject to Section 3.1(a), is not separately
transferable from the Preferred Securities. 
  
 SECTION 9.5
Interpretation. 
  
 In this Guarantee Agreement, unless
the context otherwise requires: 
  
 (a) capitalized terms used in
this Guarantee Agreement but not defined in the preamble hereto have the respective meanings assigned to them in Section 1.1; 
  
 (b) a term defined anywhere in this Guarantee Agreement has the same meaning throughout; 
  
 (c) all references to “the Guarantee Agreement” or “this Guarantee Agreement” are to this Guarantee
Agreement as modified, supplemented or amended from time to time; 
  
 (d) all references in this Guarantee Agreement to Articles and Sections are to Articles and Sections of this Guarantee Agreement unless otherwise specified; 
  
 (e) a term defined in the Trust Indenture Act has the same meaning when used in this Guarantee Agreement unless otherwise
defined in this Guarantee Agreement or unless the context otherwise requires; 
  
 (f) a reference to the singular includes the plural and vice versa; and 
  
 (g) the masculine, feminine or neuter genders used herein shall include the masculine, feminine and neuter genders. 
  
 SECTION 9.6 GOVERNING LAW. 
  
 THIS GUARANTEE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA WITHOUT REGARD TO THE CONFLICT OF LAW PRINCIPLES THEREOF. 
  
 SECTION 9.7 Counterparts. 
  
 This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument. 
  

 17 

 THIS GUARANTEE AGREEMENT is executed as of the day and year first above written. 
  

			
	 Radian Group Inc.,
 as Guarantor

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	 Wilmington Trust Company, as Guarantee Trustee

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 18 

 CROSS-REFERENCE TABLE* 
  

			
	 Section of
 Trust Indenture Act
 of 1939, as amended

	  	 Section of
 Guarantee
 Agreement

	 310(a)
	  	4.1(a)
	 310(b)
	  	2.8, 4.1(c)
	 310(c)
	  	Inapplicable
	 311(a)
	  	2.2(b)
	 311(b)
	  	2.2(b)
	 311(c)
	  	Inapplicable
	 312(a)
	  	2.2(a)
	 312(b)
	  	2.2(b)
	 313
	  	2.3
	 314(a)
	  	2.4
	 314(b)
	  	Inapplicable
	 314(c)
	  	2.5
	 314(d)
	  	Inapplicable
	 314(e)
	  	1.1,2.5,3.2
	 314(f)
	  	2.1,3.2
	 315(a)
	  	3.1(d)
	 315(b)
	  	2.7
	 315(c)
	  	3.1
	 315(d)
	  	3.1(d)
	 315(e)
	  	Inapplicable
	 316(a)
	  	1.1, 2.6, 5.4(iii)
	 316(b)
	  	5.4
	 316(c)
	  	Inapplicable
	 317(a)
	  	5.4
	 317(b)
	  	Inapplicable
	 318(a)
	  	2.1(b)
	 318(b)
	  	2.1
	 318(c)
	  	2.1(a)

	*	This Cross-Reference Table does not constitute part of the Guarantee Agreement and shall not affect the interpretation of any of its terms or provisions. 

 

 iAmended and Restated Orthovita, Inc. 1997 Equity Compensation  Plan

 Exhibit 10.1 
  
  
 ORTHOVITA, INC. 
 1997 EQUITY COMPENSATION PLAN 
  
 As Amended and Restated through May 4, 2004 
  
  
 The purpose of the Orthovita, Inc. 1997 Equity Compensation Plan (the “Plan”) is to provide (i) designated key employees of Orthovita, Inc. (the
“Company”) and its subsidiaries, (ii) consultants who perform valuable services for the Company or its subsidiaries and (iii) non-employee members of the Board of Directors of the Company (the “Board”) with the opportunity to
receive grants of incentive stock options, nonqualified stock options, stock appreciation rights and restricted stock. The Company believes that the Plan will cause the participants to contribute materially to the growth of the Company, thereby
benefitting the Company’s shareholders, and will align the economic interests of the participants with those of the shareholders. 
  
 1.     Administration 
  
 (a)     The Plan shall be administered and interpreted by the Board or by a committee consisting of two or more persons appointed by
the Board. However, the Board must approve all grants made to members of the Board who are not employees of the Company. Except as provided in the preceding sentence, if the Company has a public offering of Company stock as described in Section
19(b) (“Public Offering”), the Plan shall be administered by a committee appointed by the Board, which may consist of “outside directors” as defined under section 162(m) of the Internal Revenue Code of 1986, as amended (the
“Code”) and related Treasury regulations, and “non-employee directors” as defined in Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and references in the Plan to the
“Board,” as they relate to administration of the Plan, shall be deemed to refer to the committee. 
  
 (b)     The Board shall have the sole authority to (i) determine the individuals to whom grants shall be made under the Plan, (ii)
determine the type, size and terms of the grants to be made to each such individual, (iii) determine the time when the grants will be made and the duration of any applicable exercise or restriction period, including the criteria for vesting and the
acceleration of vesting, (iv) establish the terms of any non-compete provisions applicable to grants and the terms of any applicable shareholder’s agreement, and (v) deal with any other matters arising under the Plan. 
  
 (c)     The Board shall have full power and authority to
administer and interpret the Plan, to make factual determinations and to adopt or amend such rules, regulations, agreements and instruments for implementing the Plan and for the conduct of its business as it deems necessary or advisable, in its sole
discretion. The Board’s interpretations of the Plan and all determinations made by the Board pursuant to the powers vested in it hereunder shall be conclusive and binding on all persons having any interest in the Plan or in any awards granted
hereunder. All powers of the Board shall be executed in its sole discretion, in the best interest of the Company and in keeping with the objectives of the Plan and need not be uniform as to similarly situated individuals. 
  
 (d)     Delegation of Authority. Notwithstanding
the foregoing, the Board may delegate to the Chief Executive Officer, in his capacity as a Board member of the Company, the authority 

 to make grants under the Plan, which grants shall not exceed 50,000 option shares to any person per year, to employees of
the Company and its subsidiaries who are not subject to the restrictions of section 16(b) of the Exchange Act and who are not expected to be subject to the limitations of section 162(m) of the Code. The grant of authority under this subsection 1(d)
shall be subject to such conditions and limitations as may be determined by the Board. 
  
 2.     Grants 
  
 Awards under the Plan shall consist of grants of Incentive Stock Options and Nonqualified Stock Options as described in Section 5 (Incentive Stock Options and Nonqualified Stock Options are collectively referred to as
“Options”), restricted stock as described in Section 6 (“Restricted Stock”) and stock appreciation rights as described in Section 7 (“SARs”) (hereinafter collectively referred to as “Grants”). All Grants shall
be subject to the terms and conditions set forth herein and to those other terms and conditions consistent with this Plan as the Board deems appropriate and as are specified in writing by the Board to the individual in a grant instrument (the
“Grant Instrument”) or in an amendment to the Grant Instrument. The Board shall approve the form and provisions of each Grant Instrument. Grants under a particular Section of the Plan need not be uniform as among the grantees. 

 
 3.     Shares Subject to the Plan 

 
 (a)     Subject to the adjustment specified below, the
aggregate number of shares of common stock of the Company (“Company Stock”) that may be issued under the Plan is 7,350,000 shares. After the effective date of a Public Offering, the maximum aggregate number of shares of Company Stock that
shall be subject to Grants made under the Plan to any individual during any calendar year shall be 500,000 shares. The shares may be authorized but unissued shares of Company Stock or reacquired shares of Company Stock, including shares purchased by
the Company on the open market for purposes of the Plan. If and to the extent Options or SARs granted under the Plan terminate, expire, or are canceled, forfeited, exchanged or surrendered without having been exercised, or if any shares of
Restricted Stock are forfeited, the shares subject to such Grants shall again be available for purposes of the Plan. 
  
 (b)     If there is any change in the number or kind of shares of Company Stock outstanding (i) by reason of a stock dividend,
spinoff, recapitalization, stock split, or combination or exchange of shares, (ii) by reason of a merger, reorganization or consolidation in which the Company is the surviving corporation, (iii) by reason of a reclassification or change in par
value, or (iv) by reason of any other extraordinary or unusual event affecting the outstanding Company Stock as a class without the Company’s receipt of consideration, or if the value of outstanding shares of Company Stock is substantially
reduced as a result of a spinoff or the Company’s payment of an extraordinary dividend or distribution, the maximum number of shares of Company Stock available for Grants, the maximum number of shares of Company Stock that any individual
participating in the Plan may be granted in any year, the number of shares covered by outstanding Grants, the kind of shares issued under the Plan, and the price per share or the applicable market value of such Grants may be proportionately adjusted
by the Board to reflect any increase or decrease in the number or kind of issued shares of Company Stock to preclude the enlargement or dilution of rights and benefits under such Grants; provided, 
  

 2 

 however, that any fractional shares resulting from such adjustment shall be eliminated. The adjustments determined by the
Board shall be final, binding and conclusive. 
  
 4.     Eligibility for Participation 
  
 (a)     All key employees of the Company and its subsidiaries (“Employees”), including Employees who are officers or members of the Board, shall be eligible to participate in the Plan.
Any consultants who perform valuable services to the Company or any of its subsidiaries (“Consultants”) and members of the Board who are not Employees (“Non-Employee Directors”) shall be eligible to participate in the Plan, but
shall not be eligible to receive Incentive Stock Options. Consultants who perform services to the Company or any of its subsidiaries shall be eligible to participate in the Plan if the Consultants render bona fide services and such services are not
in connection with the offer or sale of securities in a capital-raising transaction. 
  
 (b)     The Board shall select the Employees, Consultants and Non-Employee Directors to receive Grants and shall determine the number of shares of Company Stock subject to a particular Grant in
such manner as the Board determines. Employees, Consultants and Non-Employee Directors who receive Grants under this Plan shall hereinafter be referred to as “Grantees”. If a committee is appointed to administer the Plan, the Board shall
nevertheless approve all Grants to Non-Employee Directors. 
  
 (c)
    Nothing contained in this Plan shall be construed to (i) limit the right of the Board to make Grants under this Plan in connection with the acquisition, by purchase, lease, merger, consolidation or otherwise, of the business
or assets of any corporation, firm or association, including options granted to employees thereof who become Employees of the Company, or for other proper corporate purpose, or (ii) limit the right of the Company to grant stock options or make other
awards outside of this Plan. 
  
 5.    
Stock Options 
  
 (a)     Number of
Shares. The Board shall determine the number of shares of Company Stock that will be subject to each Grant of Options to Employees, Consultants and Non-Employee Directors. 
  
 (b)     Type of Option and Price. 
  
 (i)     The Board may grant Options intended to qualify as “incentive stock options” within
the meaning of section 422 of the Code (“Incentive Stock Options”) or options that are not intended so to qualify (“Nonqualified Stock Options”) or any combination of Incentive Stock Options and Nonqualified Stock Options, all in
accordance with the terms and conditions set forth herein. 
  
 (ii)     The purchase price (the “Exercise Price”) of Company Stock subject to an Option shall be determined by the Board and may be equal to, greater than, or less than the Fair Market Value (as defined below)
of a share of Company Stock on the date the Option is granted; provided, however, that (x) the Exercise Price of an Incentive Stock Option shall be equal to, or greater than, the Fair Market Value of a share of Company Stock on the date the
Incentive Stock 
  
  

 3 

 Option is granted and (y) an Incentive Stock Option may not be granted to an Employee who, at the time of grant, owns
stock possessing more than 10 percent of the total combined voting power of all classes of stock of the Company or any parent or subsidiary of the Company, unless the Exercise Price per share is not less than 110% of the Fair Market Value of Company
Stock on the date of grant. 
  
 (iii)     If
the Company Stock is traded in a public market, then the Fair Market Value per share shall be determined as follows: (x) if the principal trading market for the Company Stock is a national securities exchange or the National Market segment of the
Nasdaq Stock Market, the last reported sale price thereof on the relevant date or (if there were no trades on that date) the latest preceding date upon which a sale was reported, or (y) if the Company Stock is not principally traded on such exchange
or market, the mean between the last reported “bid” and “asked” prices of Company Stock on the relevant date, as reported on Nasdaq or, if not so reported, as reported by the National Daily Quotation Bureau, Inc. or as reported
in a customary financial reporting service, as applicable and as the Board determines. If the Company Stock is not traded in a public market or subject to reported transactions or “bid” or “asked” quotations as set forth above,
the Fair Market Value per share shall be as determined by the Board. 
  
 (c)     Option Term. The Board shall determine the term of each Option, which shall not exceed ten years from the date of grant. However, an Incentive Stock Option may not be granted to an Employee who, at the
time of grant, owns stock possessing more than 10 percent of the total combined voting power of all classes of stock of the Company or any parent or subsidiary of the Company, unless the Option term does not exceed five years from the date of grant.

  
 (d)     Exercisability of Options.
Options shall become exercisable in accordance with the terms and conditions determined by the Board and specified in the Grant Instrument. The Board may accelerate the exercisability of any or all outstanding Options at any time for any reason.

  
 (e)     Termination of Employment,
Disability or Death. 
  
 (i)     Except as
provided below, an Option may only be exercised while the Grantee is employed by the Company as an Employee, Consultant or member of the Board. In the event that a Grantee ceases to be employed by the Company for any reason other than a
“disability”, death, or “termination for cause”, any Option which is otherwise exercisable by the Grantee shall terminate unless exercised within 90 days of the date on which the Grantee ceases to be employed by the Company (or
within such other period of time as may be specified in the Grant Instrument), but in any event no later than the date of expiration of the Option term. Any of the Grantee’s Options that are not otherwise exercisable as of the date on which the
Grantee ceases to be employed by the Company shall terminate as of such date. 
  
 (ii)     In the event the Grantee ceases to be employed by the Company on account of a “termination for cause” by the Company, any Option held by the Grantee shall terminate as of the
date the Grantee ceases to be employed by the Company. 
  

 4 

 (iii)     In the event the Grantee ceases to be employed by the Company because the
Grantee is “disabled”, any Option which is otherwise exercisable by the Grantee shall terminate unless exercised within one year after the date on which the Grantee ceases to be employed by the Company (or within such other period of time
as may be specified in the Grant Instrument), but in any event no later than the date of expiration of the Option term. Any of the Grantee’s Options which are not otherwise exercisable as of the date on which the Grantee ceases to be employed
by the Company shall terminate as of such date. 
  
 (iv)
    If the Grantee dies while employed by the Company or within 90 days after the date on which the Grantee ceases to be employed on account of a termination of employment specified in Section 5(e)(i) above (or within such other
period of time as may be specified in the Grant Instrument), any Option that is otherwise exercisable by the Grantee shall terminate unless exercised within one year after the date on which the Grantee ceases to be employed by the Company (or within
such other period of time as may be specified in the Grant Instrument), but in any event no later than the date of expiration of the Option term. Any of the Grantee’s Options that are not otherwise exercisable as of the date on which the
Grantee ceases to be employed by the Company shall terminate as of such date. 
  
 (v)     For purposes of this Section 5(e) and Sections 6 and 7: 
  
 (A) The term “Company” shall mean the Company and its subsidiaries. 
  
 (B) “Employed by the Company” shall mean employment
as an Employee, Consultant or member of the Board (so that, for purposes of exercising Options and SARs and satisfying conditions with respect to Restricted Stock, a Grantee shall not be considered to have terminated employment until the Grantee
ceases to be an Employee, Consultant and member of the Board), unless the Board determines otherwise in the Grant Instrument. 
  
 (C) “Disability” shall mean a Grantee’s becoming disabled within the meaning of section 22(e)(3) of the Code. 

 
 (D) “Termination for cause” shall mean, except
to the extent otherwise provided in a Grantee’s Grant Instrument, a finding by the Board, after full consideration of the facts presented on behalf of both the Company and the Grantee, that the Grantee has breached his or her employment or
service contract with the Company, or has been engaged in disloyalty to the Company, including, without limitation, fraud, embezzlement, theft, commission of a felony or proven dishonesty in the course of his or her employment or service, or has
disclosed trade secrets or confidential information of the Company to persons not entitled to receive such information. In the event a Grantee’s employment is terminated for cause, in addition to the immediate termination of all Grants, the
Grantee shall automatically forfeit all Option shares for any exercised portion of an Option for which the Company has not yet delivered the share certificates, upon refund by the Company of the Exercise Price paid by the Grantee for such shares.

  

 5 

 (f)     Exercise of Options. 
  
 (i)     The Grantee shall pay the Exercise Price for an
Option as specified in the Grant Instrument (w) in cash, (x) with the approval of the Board, by delivering shares of Company Stock owned by the Grantee (including Company Stock acquired in connection with the exercise of an Option, subject to such
restrictions as the Board deems appropriate) and having a Fair Market Value on the date of exercise equal to the Exercise Price, (y) through a broker-assisted exercise as described below, or (z) through any combination of the foregoing. The Grantee
shall pay the Exercise Price and the amount of any withholding tax due (pursuant to Section 8) promptly, but in no event later than the date of delivery of the shares. Shares of Company Stock shall not be issued upon exercise of an Option until the
Exercise Price is fully paid and any required withholding is made. 
  
 (ii) A Grantee may exercise an Option by delivering to the Company a notice of exercise, in accordance with procedures permitted by Regulation T of the Federal Reserve Board, instructing the Company to deliver shares of Company Stock due
upon the exercise of the Option to any registered broker or dealer designated by the Board in lieu of delivery to the Grantee. Such instructions shall designate the account into which the shares are to be deposited. 
  
 (g)     Limit on Incentive Stock Options. Each
Incentive Stock Option shall provide that, if the aggregate Fair Market Value of the stock on the date of the grant with respect to which Incentive Stock Options are exercisable for the first time by a Grantee during any calendar year, under the
Plan or any other stock option plan of the Company or a parent or subsidiary, exceeds $100,000, then the option, as to the excess, shall be treated as a Nonqualified Stock Option. An Incentive Stock Option shall not be granted to any person who is
not an Employee of the Company or a parent or subsidiary (within the meaning of section 424(f) of the Code). 
  
 6.     Restricted Stock Grants 
  
 The Board may issue shares of Company Stock to an Employee, Consultant or Non-Employee Director under a Grant of Restricted Stock, upon such terms as the
Board deems appropriate. The following provisions are applicable to Restricted Stock: 
  
 (a)     General Requirements. Shares of Company Stock issued pursuant to Restricted Stock Grants may be issued for consideration or for no consideration, as determined by the Board. The
Board shall establish conditions under which restrictions on shares of Restricted Stock shall lapse over a period of time or according to such other criteria as the Board deems appropriate. The period of time during which the Restricted Stock will
remain subject to restrictions will be designated in the Grant Instrument as the “Restriction Period”. 
  
 (b)     Number of Shares. The Board shall determine the number of shares of Company Stock to be issued pursuant to a Restricted
Stock Grant and the restrictions applicable to such shares. 
  
 (c)     Requirement of Employment. If the Grantee ceases to be employed by the Company (as defined in Section 5(e)) during a period designated in the Grant Instrument as the Restriction Period, or if other
specified conditions are not met, the Restricted Stock Grant shall 
  

 6 

 terminate as to all shares covered by the Grant as to which the restrictions have not lapsed, and those shares of Company
Stock must be immediately returned to the Company. The Board may, however, provide for complete or partial exceptions to this requirement as it deems appropriate. 
  
 (d)     Restrictions on Transfer and Legend on Stock Certificate. During the Restriction Period,
a Grantee may not sell, assign, transfer, pledge or otherwise dispose of the shares of Restricted Stock except to a Successor Grantee under Section 9(a). Each certificate for a share of Restricted Stock shall contain a legend giving appropriate
notice of the restrictions in the Grant. The Grantee shall be entitled to have the legend removed from the stock certificate covering the shares when all restrictions on such shares have lapsed. The Board may determine that the Company will not
issue certificates for shares of Restricted Stock until all restrictions on such shares have lapsed, or that the Company will retain possession of certificates for shares of Restricted Stock until all restrictions on such shares have lapsed.

  
 (e)     Right to Vote and to Receive
Dividends. Unless the Board determines otherwise, during the Restriction Period, the Grantee shall have the right to vote shares of Restricted Stock and to receive any dividends or other distributions paid on such shares, subject to any
restrictions deemed appropriate by the Board. 
  
 (f)     Lapse of Restrictions. All restrictions imposed on Restricted Stock shall lapse upon the expiration of the applicable Restriction Period and the satisfaction of all conditions imposed by the Board. The
Board may determine, as to any or all Restricted Stock Grants, that the restrictions shall lapse without regard to any Restriction Period. 
  
 7.     Stock Appreciation Rights 
  
 (a)     General Requirements. The Board may grant SARs to an Employee, Consultant or Non-Employee Director separately or in
tandem with any Option (for all or a portion of the applicable Option). Tandem SARs may be granted either at the time the Option is granted or at any time thereafter while the Option remains outstanding; provided, however, that, in the case of an
Incentive Stock Option, SARs may be granted only at the time of the Grant of the Incentive Stock Option. The Board shall establish the base amount of the SAR at the time the SAR is granted. Unless the Board determines otherwise, the base amount of
each SAR shall be equal to the per share Exercise Price of the related Option or, if there is no related Option, the Fair Market Value of a share of Company Stock as of the date of Grant of the SAR. 
  
 (b)     Tandem SARs. In the case of tandem SARs,
the number of SARs granted to a Grantee that shall be exercisable during a specified period shall not exceed the number of shares of Company Stock that the Grantee may purchase upon the exercise of the related Option during such period. Upon the
exercise of an Option, the SARs relating to the Company Stock covered by such Option shall terminate. Upon the exercise of SARs, the related Option shall terminate to the extent of an equal number of shares of Company Stock. 
  
 (c)     Exercisability. An SAR shall be
exercisable during the period specified by the Board in the Grant Instrument and shall be subject to such vesting and other restrictions as may be specified in the Grant Instrument. The Board may accelerate the exercisability of any or all
outstanding SARs at any time for any reason. SARs may only be exercised while the Grantee is 
  
  

 7 

 employed by the Company or during the applicable period after termination of employment as described in Section 5(e). A
tandem SAR shall be exercisable only during the period when the Option to which it is related is also exercisable. 
  
 (d)     Value of SARs. When a Grantee exercises SARs, the Grantee shall receive in settlement of such SARs an amount equal to
the value of the stock appreciation for the number of SARs exercised, payable in cash, Company Stock or a combination thereof. The stock appreciation for an SAR is the amount by which the Fair Market Value of the underlying Company Stock on the date
of exercise of the SAR exceeds the base amount of the SAR as described in Subsection (a). 
  
 (e)     Form of Payment. The Board shall determine whether the appreciation in an SAR shall be paid in the form of cash, shares of Company Stock, or a combination of the two, in such
proportion as the Board deems appropriate. For purposes of calculating the number of shares of Company Stock to be received, shares of Company Stock shall be valued at their Fair Market Value on the date of exercise of the SAR. If shares of Company
Stock are to be received upon exercise of an SAR, cash shall be delivered in lieu of any fractional share. 
  
 8.     Withholding of Taxes 
  
 (a)     All Grants under the Plan shall be subject to applicable federal (including FICA), state and local tax withholding
requirements. The Company shall have the right to deduct from all Grants paid in cash, or from other wages paid to the Grantee, any federal, state or local taxes required by law to be withheld with respect to such Grants. In the case of Options and
other Grants paid in Company Stock, the Company may require the Grantee or other person receiving such shares to pay to the Company the amount of any such taxes that the Company is required to withhold with respect to such Grants, or the Company may
deduct from other wages paid by the Company the amount of any withholding taxes due with respect to such Grants. 
  
 (b)     If the Grant Instrument (or an amendment) so provides, a Grantee may elect to satisfy the Company’s income tax
withholding obligation with respect to an Option, SAR or Restricted Stock by having shares withheld up to an amount that does not exceed the Grantee’s minimum applicable withholding tax rate for federal (including FICA), state and local tax
liabilities. The election must be in a form and manner prescribed by the Board and may be subject to the prior approval of the Board. 
  
 9.     Transferability of Grants 
  
 (a)     Only the Grantee may exercise rights under a Grant during the Grantee’s lifetime. The Grantee may not transfer those
rights except by will or by the laws of descent and distribution or, with respect to Grants other than Incentive Stock Options, if permitted in any specific case by the Board pursuant to a domestic relations order (as defined under the Code or Title
I of the Employee Retirement Income Security Act of 1974, as amended, or the regulations thereunder). When a Grantee dies, the representative or other person entitled to succeed to the rights of the Grantee (“Successor Grantee”) may
exercise such rights. A Successor Grantee must furnish proof satisfactory to the Company of his or her right to receive the Grant under the Grantee’s will or under the applicable laws of descent and distribution. 
  

 8 

 (b)     Notwithstanding the foregoing, the Board may provide, in a Grant Instrument,
that a Grantee may transfer Nonqualified Stock Options to family members or other persons or entities according to such terms as the Board may determine, provided that the Grantee receives no consideration for the transfer of an Option and the
transferred Option continues to be subject to the same terms and conditions as were applicable to the Option immediately before the transfer. 
  
 10.     Change of Control of the Company 
  
 As used herein, a “Change of Control” shall be deemed to have occurred if: 
  
 (a)     Any “person” (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act) (other than a person who is a shareholder of the Company as of the effective date of this Plan) becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing more than 50% of the voting power of the then outstanding securities of the Company; or 
  
 (b)     The shareholders of the Company approve (or, if shareholder approval is not required, the Board approves) an agreement
providing for (i) the merger or consolidation of the Company with another corporation where the shareholders of the Company, immediately prior to the merger or consolidation, will not beneficially own, immediately after the merger or consolidation,
shares entitling such shareholders to more than 50% of all votes to which all shareholders of the surviving corporation would be entitled in the election of directors (without consideration of the rights of any class of stock to elect directors by a
separate class vote), or where the members of the Board, immediately prior to the merger or consolidation, would not, immediately after the merger or consolidation, constitute a majority of the board of directors of the surviving corporation, (ii)
the sale or other disposition of all or substantially all of the assets of the Company, or (iii) a liquidation, dissolution or statutory exchange of the Company. 
  
 11.     Consequences of a Change of Control 
  
 (a)     Upon a Change of Control, unless the Board
determines otherwise, (i) the Company shall provide each Grantee who holds outstanding Grants written notice of such Change of Control, (ii) all outstanding Options and SARs shall automatically accelerate and become fully exercisable and (iii) the
restrictions and conditions on all outstanding Restricted Stock shall immediately lapse. 
  
 (b)     Unless the Board determines otherwise, upon a Change of Control where the Company is not the surviving corporation (or survives only as a subsidiary of another corporation), all outstanding
Grants shall be assumed by, or replaced with comparable options, rights or stock by, the surviving corporation. 
  
 (c)     Notwithstanding the foregoing, subject to subsection (d) below, in the event of a Change of Control, the Board may take one or
both of the following actions: the Board may (i) require that Grantees surrender their outstanding Options and SARs in exchange for a payment by the Company, in cash or Company Stock as determined by the Board, in an amount equal to the amount by
which the then Fair Market Value of the shares of Company Stock subject to the 
  
  

 9 

 Grantee’s outstanding Options and SARs exceeds the Exercise Price of the Options or the base amount of the SARs, as
applicable, or (ii) after giving Grantees an opportunity to exercise their outstanding Options and SARs, terminate any or all unexercised Options and SARs at such time as the Board deems appropriate. Such surrender or termination shall take place as
of the date of the Change of Control or such other date as the Board may specify. 
  
 (d)     Notwithstanding anything in the Plan to the contrary, in the event of a Change of Control, the Board shall not have the right to take actions described in the Plan (including without
limitation actions described in Subsection (c) above) that would make the Change of Control ineligible for pooling of interests accounting treatment or that would make the Change of Control ineligible for desired tax treatment if, in the absence of
such right, the Change of Control would qualify for such treatment and the Company intends to use such treatment with respect to the Change of Control. 
  
 12.     Requirements for Issuance of Shares 
  
 (a)     The Board may require that a Grantee execute a shareholder’s agreement, with such terms as
the Board deems appropriate, with respect to any Company Stock distributed pursuant to this Plan. 
  
 (b)     No Company Stock shall be issued or transferred in connection with any Grant hereunder unless and until all legal requirements
applicable to the issuance or transfer of such Company Stock have been complied with to the satisfaction of the Board. The Board shall have the right to condition any Grant made to any Grantee hereunder on such Grantee’s undertaking in writing
to comply with such restrictions on his or her subsequent disposition of such shares of Company Stock as the Board shall deem necessary or advisable as a result of any applicable law, regulation or official interpretation thereof and certificates
representing such shares may be legended to reflect any such restrictions. Certificates representing shares of Company Stock issued under the Plan will be subject to such stop-transfer orders and other restrictions as may be applicable under such
laws, regulations and other obligations of the Company, including any requirement that a legend or legends be placed thereon. 
  
 13.     Amendment and Termination of the Plan 
  
 (a)     Amendment. The Board may amend or terminate the Plan at any time; provided, however, that
any amendment that increases the aggregate number of shares of Company Stock that may be issued under the Plan (other than by operation of Section 3(b)) shall be subject to approval by the shareholders of the Company, and provided, further, that,
after the effective date of a Public Offering, the Board shall not amend the Plan without shareholder approval if such approval is required by Section 162(m) of the Code. 
  
 (b)     Termination of Plan. The Plan shall terminate on the day immediately preceding the tenth
anniversary of its effective date, unless the Plan is terminated earlier by the Board or unless it is extended by the Board with the approval of the shareholders. 
  
 (c)     Termination and Amendment of Outstanding Grants. A termination or amendment of the Plan
that occurs after a Grant is made shall not materially impair the rights of 
  

 10 

 a Grantee unless the Grantee consents or unless the Board acts under Section 19(b). The termination of the Plan shall not
impair the power and authority of the Board with respect to an outstanding Grant. Whether or not the Plan has terminated, an outstanding Grant may be terminated or amended under Section 19(b) or may be amended by agreement of the Company and the
Grantee consistent with the Plan. 
  
 (d)    
Governing Document. The Plan shall be the controlling document. No other statements, representations, explanatory materials or examples, oral or written, may amend the Plan in any manner. The Plan shall be binding upon and enforceable against
the Company and its successors and assigns. 
  
 14.     Funding of the Plan 
  
 This Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or to make any other segregation of assets to assure the payment of any Grants under this Plan. In no event shall interest be paid or
accrued on any Grant, including unpaid installments of Grants. 
  
 15.     Rights of Participants 
  
 Nothing in this Plan shall entitle any Employee, Consultant, Non-Employee Director or other person to any claim or right to be granted a Grant under this Plan. Neither this Plan nor any action taken hereunder shall be construed as giving
any individual any rights to be retained by or in the employ of the Company or any other employment rights. 
  
 16.     No Fractional Shares 
  
 No fractional shares of Company Stock shall be issued or delivered pursuant to the Plan or any Grant. The Board shall determine whether cash, other awards
or other property shall be issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated. 
  
 17.     Headings 
  
 Section headings are for reference only. In the event of a conflict between a title and the content of a Section, the
content of the Section shall control. 
  
 18.     Effective Date of the Plan. 
  
 (a)     Subject to the approval of the Company’s shareholders, this Plan shall be effective as of January 21, 1997. The amended and restated Plan is effective as of May 4, 2004. 
  
 (b)     The provisions of the Plan that are applicable
after a Public Offering of Company stock shall be effective, if at all, upon the initial registration of the Company stock under Section 12(g) of the Exchange Act, and shall remain effective thereafter for so long as such stock is so registered.

  
  

 11 

 19.     Miscellaneous 
  
 (a)     Substitute Grants. The Board may make a
Grant to an employee of another corporation who becomes an Employee by reason of a corporate merger, consolidation, acquisition of stock or property, reorganization or liquidation involving the Company or any of its subsidiaries in substitution for
a stock option or restricted stock grant made by such corporation. The terms and conditions of the substitute grant may vary from the terms and conditions required by the Plan and from those of the substituted stock incentives. The Board shall
prescribe the provisions of the substitute grants. 
  
 (b)     Compliance with Law. The Plan, the exercise of Options and SARs and the obligations of the Company to issue or transfer shares of Company Stock under Grants shall be subject to all applicable laws and to
approvals by any governmental or regulatory agency as may be required. With respect to persons subject to Section 16 of the Exchange Act, after a Public Offering, it is the intent of the Company that the Plan and all transactions under the Plan
comply with all applicable provisions of Rule 16b-3 or its successors under such Act. The Board may revoke any Grant if it is contrary to law or modify a Grant to bring it into compliance with any valid and mandatory government regulation. The Board
may also adopt rules regarding the withholding of taxes on payments to Grantees. The Board may, in its sole discretion, agree to limit its authority under this Section. 
  
 (c)     Ownership of Stock. A Grantee or Successor Grantee shall have no rights as a shareholder
with respect to any shares of Company Stock covered by a Grant until the shares are issued or transferred to the Grantee or Successor Grantee on the stock transfer records of the Company. 
  
 (d)     Governing Law. The validity, construction, interpretation and effect of the Plan and
Grant Instruments issued under the Plan shall exclusively be governed by and determined in accordance with the law of the Commonwealth of Pennsylvania. 
  
  

 12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}]]